Joel Greenblatt’s High-Impact Reductions

The recent portfolio of "Magic Formula" Joel Greenblatt, Gotham Capital, lists 881stocks, 181 of them new, with a total value of $3.07 billion, and a quarter-over-quarter turnover of 35%. His portfolio is weighted with industrials at 24.1%, consumer cyclical at 21.2% and technology at 18.6%. The stocks bought by Joel Greenblatt in the past 12 months have an average return of 22.76%. Here are the major decreases made by Joel Greenblatt in the third quarter of 2013, starting with his highest-impact reduction of GameStop, the world's largest multichannel video game retailer, reporting an 18.8% increase in global sales for the third quarter.

GameStop reported financial results for the third quarter of 2013 with global sales of $2.11 billion, up from $1.77 billion in the same quarter of 2012. Net earnings of $68.6 million, marked a 45.3% increase over the third quarter of 2012. Consolidated comparable store sales increased by 20.5%. In third quarter, the company's new software sales increased by 43.1%. Hardware sales were up 15.3%. Earnings of $0.58 per diluted share increased by 52.6% over the same quarter a year ago at $0.38.

GameStop Corp. (GME): Reduced

Impact to Portfolio: -0.63%

Current Shares: 123,179

Up 86% over 12 months, GameStop Corp. has a market cap of $5.83 billion; shares trade with a P/B ratio of 2.70. The dividend yield is 2.16%.

GameStop has 6,488 company-operated stores in 15 countries worldwide and an online store.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 73.89%, selling 348,547 shares at an average price of $47.81, for a gain of 4.3%.

The current share price is $49.88 with a change from average up 4%.

Over a five-year trading history, Greenblatt averaged a gain of 112% on 833,429 shares bought at an average price of $23.58 per share. He gained 29% selling 710,250 shares at an average price of $38.57 per share.

Check out the third quarter guru trades and recent insider sells! .

Tracking share price, revenue and net income:

[ Enlarge Image ]

SPDR S&P 500 ETF (SPY): Reduced

Impact to Portfolio: -0.61%

Current Shares: 177,321

Up 28% over 12 months, SPY has a market cap of $136.49 billion. The dividend yield is 2.00%.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 33.7%, selling 90,121 shares at an average price of $167.45 per share, for a gain of 8%.

The current share price is $180.81 with a change from average up 8%.

Over 10 quarters of trading, Greenblatt averaged a gain of 28% on 902,626 shares bought at an average price of $140.74 per share. He gained 24% selling 725,305 shares at an average price of $145.94 per share.

Numerous puts and calls were made on SPY in the third quarter. Check out the third quarter guru action. There was no insider activity found.

Tracking share price, revenue and net income:

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Tempur Sealy International Inc. (TPX): Reduced

Impact to Portfolio: -0.52%

Current Shares: 18,262

Up 87% over 12 months, Tempur Sealy International Inc. has a market cap of $2.96 billion; shares trade with a P/E ratio of 40.60. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 93.73%, selling 272,893 shares at an average price of $41.52 per share, for a gain of 18%.

The current share price is $49.00 with a change from average up 18%.

In eight quarters of mixed results, Greenblatt gained 7% on 437,858 shares bought at an average price of $45.92 per share. He also gained 18% on 419,596 shares sold at an average price of $41.63 per share.

Check out the six gurus holding TPX as of the third quarter and recent insider selling.

Tracking share price, revenue and net income:

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Wells Fargo & Co. (WFC): Reduced

Impact to Portfolio: -0.49%

Current Shares: 130,050

Up 35% over 12 months, Wells Fargo & Co. has a market cap of $233.67 billion; shares trade with a P/E ratio of 11.60. The dividend yield is 2.59%.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 82.66%, selling 619,992 shares at an average price of $42.69, for a gain of 3.9%.

The current share price is $44.36 with a change from average up 4%.

In six gaining quarters, Greenblatt gained 14% on 750,042 shares bought at an average price of $38.92 per share. He also gained 4% on 619,992 shares sold at an average price of $42.69 per share.

Check out the numerous gurus trading and insiders selling WFC.

Tracking share price, revenue and net income:

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Inventor of magic formula investing and founder of the New York Securities Auction Corporation (NYSAC), Joel Greenblatt is a gifted author as well as the founder and managing partner of Gotham Capital.

Here's Joel Greenblatt's complete portfolio.

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Less pain at gas pump could pump up stocks

NEW YORK -- Is less pain at the gas pump bullish for stocks? The answer is yes, according to Bespoke Investment Group.

The national average price for a gallon of gas is at its lowest since February 2011 after declining more than 11% from $3.594 to $3.186 since the start of September, Bespoke says. The rolling 100-day gas-price decline is nearly 12%, marking the fifth time that's happened in the bull market that began in March 2009.

Lower gas prices, of course, leave consumers with more disposable income to spend on other things.

GAS PRICES: Pump price drops below $3 in 11 states

TUESDAY MARKETS: Stocks end mostly down

The good news: Gas price drops of 10% or more have proved bullish for stocks in the past, Bespoke's data show. In every one of the four prior periods when gasoline suffered a double-digit percentage drop, the Standard & Poor's 500 stock index was higher one, three and six months later.

"While one would expect stocks to do well when gas prices decline, the consistency of positive returns was surprising," says Paul Hickey, co-founder of Bespoke.

Stock market returns during periods of falling gas prices were also bigger than the average returns during the current bull market. The average one-month return following 10% drops in gas prices was 3.7%, vs. 1.5% for the entire bull market, Bespoke data show. Similarly, average three-month gains were 9.6%, nearly six percentage points better. The six-month average gain when prices were falling was 11.5%.

Follow Adam Shell on Twitter: @adamshell.

Market Ready For Fed, Not Quite Ready For Syria

The market is ready for Fed tapering, but not ready for surprises coming down the pike from the ongoing strife in Syria.

"The market has Fed tapering priced in and barring any unforeseen circumstances, when the Fed does ease up on its asset purchases there should be very little impact on the markets," says Marc Tommasi, managing director at Manning & Napier Manning & Napier in Rochester, NY.

California hedge fund manager Joel Smolen at Axion Capital told me in an email last week that he is less worried about the Fed, and more worried about Syria.

According to a survey of close to 800 global investors conducted by Barclays Barclays Capital, 64% of respondents believe tapering will start this week and almost all of them expect it to occur before the end of the year.

More than 50% of investors expect little reaction in the Treasury markets if tapering
starts this week, suggesting that it is largely priced in.

Investors now perceive the removal of Fed stimulus will start earlier. 45% expect the Fed to finish their openended QE3 program in the second quarter of 2014, while most respondents in their June survey thought it would happen in the fourth quarter of next year or even later.

Investors have also brought forward their expectation for the first Fed hike. However, only 25% see a hike in March 2015 or
earlier. This contrasts with rates markets' pricing a 50% chance of a first hike in the target fed funds rate in December 2014. Respondents have also upgraded their modal expectation for 10 year Treasury yields to 3-3.25% from 2-2.25% in March.  In the first, almost all investors believed Treausry yields on the 10 year would be below 2.5% by end-2013 and almost
none do now.

Syria is clearly the biggest unknown in the global market at the moment. The good thing is that investors are starting to believe they have a handle on it.

"As long as we stay on the diplomatic path, the dollar should strengthen. But I think the Syria crisis is settling down," said Vlad Signorelli, head of global research of boutique investment firm Brettonwoods Research.

Last Monday, Charlie Rose interviewed Bashar Assad.  Then, Assad said that at least 15% of the opposition to his government is Al Qaeda or coming from Al Qaeda like groups. Rose brushed that off, saying it was just a small percentage and that the rest were legit. What viewers would be loathe to forget however is that it just took 19 guys from Al Qaeda to blow up the World Trade Center 12 years ago, Signorelli pointed out.

Assad insinuated he was not responsible for a chemical weapons attack in August that led Washington to beat the war drums.

The bad: President Bashar al-Assad of Syria . Despite civil unrest for nearly two years, the Syrian strong man is still standing. (Photo credit: Wikipedia)

The market has largely been discounting Syria since, thanks largely to the Aug. 29 decistion by the British government to oppose a military solution, and a very public plan made by Vladimir Putin to go after Assad's chemical weapons cache before firing missiles into the country.

"I would be short oil at this point," said Signorelli.

For now, the biggest threat from Syria is President Barack Obama giving up on the Putin Plan. He said he was ready for action "in case the diplomatic plan fails".  Until then, it is unlikely that the  U.S. will launch strikes. But if diplomacy does fail, as has been the recent case of U.S. imbroglios in the Middle East, then gold and oil prices would spike up and markets would sell off. Emerging markets would be particularly hard hit as investors tend to sell riskiest assets first.

According to Barclays, when asked what the biggest risk to global equities was over the next three months, 35% said the Fed surprisingly increasing interest rates.

In second place is Syria, with 20% saying the market is not ready for a worsening civil war, especially if it leads to military intervention or spills across borders into Israel.

 

Thanks to political unrest in Syria, the ancient city of Damascus is now the least livable city, according to The Economist Intelligence Unit.

Ten Least Livable Cities

Can Apple Really Hit a $777 Analyst Price Target and New All-Time Highs?

Apple Inc. (NASDAQ: AAPL) was the beneficiary of what has become a very rare analyst upgrade for the case to buy Apple shares. The stock was initiated by Cantor Fitzgerald in new analyst coverage with a price target of $777 for the stock. Before you get too excited here, the analyst call is from Brian White who was formerly with Topeka Capital. It is an extremely bullish call, but from an analyst who was always bullish on Apple before.

Be advised that the analyst previously had a price target north of $1,000 for Apple during and after the boom, but earlier in 2013 White lowered his target down to an odd $888 target because Apple’s stock price had fallen so much.

White called the company’s fiscal 2014 a year for liftoff. The thesis is that the years of innovation will start to payoff over the coming year after a very competitive year in looking backwards. New products are expected, included the formerly much talked about AppleTV and an iWatch as well as refreshes of the iPhone and iPad models.

Apple shares rose 2% to $498.69 based upon this upgrade and with an up-day in the stock market. What is interesting is that this implies upside north of 55% for new investors. It also implies gains that would be about 10% higher than that former 52-week high and all-time high of $705.07.

This analyst call has a bit of irony or paradox to it. We consider it a regurgitated call. If this is the same analyst who was rating it before, a mere company moniker change does not necessarily mean it is a new call. Outside of that, we also cannot help but call this analyst upgrade price target out for being lower than before even if it is much higher than now.

We have no real problem with analyst calls due to changes in firms. It happens. That being said, getting back above that former all-time high over $700 is not likely going to be an easy task. The consensus price target is down at $527.17 as of Wednesday and the highest price target is $825 for Apple.

We think it is worth noting that Apple is back to be being the most valuable company by market capitalization worth some $453 billion now. For Apple to rise as much as Brian White hopes it can, Apple would be worth just over $700 billion minus the impact of any share buybacks retiring shares. The translation is that it is magically creating another $250 billion in market capitalization, and much of that has to come from real investors putting serious capital to work in Apple alone.

Raymond James, Janney Nab More Wirehouse Reps

St. Petersburg, Fla.-based Raymond James (RJF) says it continues to recruit successful advisors from Morgan Stanley (MS), Merrill Lynch (ML) and a number of other firms, building on its momentum in technology and its integration of Morgan Keegan.

“We see continued very-strong interest across the full spectrum of affiliated options, including our employee, RIA and independent options, said Tash Elwyn (left), president of Raymond James & Associates-Private Client Group, in an interview with AdvisorOne.

At the same time, Philadelphia-based Janney Montgomery Scott has been adding to its ranks by recruiting a number of wirehouse reps. The firm said Tuesday that ex-Morgan Stanley advisors Alfred DeRenzis and Scott Ford  joined its new branch in Westminster, Md.

DeRenzis and Ford have a total of nearly $160 million in client assets. Prior to Morgan Stanley, the team worked with Citigroup and earlier with Legg Mason.

The ability of these firms to attract these veteran reps, experts say, may stem in part from their non-Wall Street character, which can be especially inviting to reps who were previously with broker-dealers in the Midwest or Southeast. A number of wirehouse reps, meanwhile, have swelled Raymond James' ranks in a few recent big-firm exits.

On Monday, for instance, a team of advisors led by Scott A. Schuster formed Dashboard Wealth Advisors, an independent firm affiliated with Raymond James Financial Services in Oak Brook, Ill. The team came to Raymond James from Morgan Stanley, where they managed more than $240 million in client assets and had annual fees and commissions of $1.9 million.

“We wanted a firm where we could continue to expand and develop our holistic process of financial planning … with a service-first focus that offers cutting-edge technology, so when we discovered that Raymond James provided all of those things … it was a slam-dunk,” said Scott Schuster, who moved to Morgan Stanley from A.G. Edwards in 2007, in a statement.

And on Wednesday, Raymond James said that Claire Friedrichs joined its traditional employee channel in Mandeville, La., from Merrill Lynch, where she managed some $80 million in client assets and produced $850,000 in annual fees and commissions through April, when she switched firms.

Motivation for Movement

As for what’s driving movement out of the wirehouses, “There’s no big trouble or scandal right now, so we’re really in a stalemate here,” ” recruiter Rick Peterson explained, in an interview.

“The [recruiting] deals are the same as they’ve been in the past three or four years,” explained Peterson, who sees today's attrition and recruiting levels at the wirehouses as a "zero-sum game."

Elwyn (right), however, sees things differently. “Despite the extremes of market highs and lows, what’s consistent is that many competitors – at the wirehouse and regional firms – continue to create pain points for their advisors,” he said.

 “Those pain points can vary from macro, firm-oriented issues to micro, branch-level issues like branch manager turnover, the ratio of financial advisors to service associates and the like,” Elwyn noted.

“There’s a pairing of the pain points that exist at competitor firms and Raymond James’ culture, values and other factors that attract advisors to us,” he said, “such as our reputation, industry-leading technology and 101 quarters of profitability.”

Elwyn says Raymond James expects its recruiting of wirehouse and other reps to remain strong, regardless of market conditions.

 

Sirius XM Has Never Been This Valuable

Sirius XM Radio (NASDAQ: SIRI  ) hit a fresh five-year high today.

That isn't really much of a surprise. Sirius XM pleased investors earlier this week by announcing that it wrapped up the second quarter with 715,000 net new subscribers. There are now more than 25 million subscribers for the satellite radio service.

Sirius completed its merger with XM in the summer of 2008, making this the highest price since the formation of the satellite radio monopoly.

The stock's ascent to its highest market cap -- ever -- comes during the same week that finds streaming radio bellwether Pandora (NYSE: P  ) taking a hit after posting a surprisingly large sequential monthly decline in listener hours and radio market share.

Despite the urge for investors to pit Sirius XM against Pandora, both companies have been able to grow in recent years. Pandora may be growing faster, but Sirius XM is the consistently profitable one with a huge base of paying customers.

Are we at a point where the two non-terrestrial radio bellwethers are diverging?

Sirius XM should continue to prosper. Auto sales remain strong, and every year finds older cars without satellite receivers replaced by vehicles that have Sirius or XM players. The improving employment scene means more commuters on the road, and the buoyant economy makes it easier to stick to the monthly pricing plans.

Pandora would seem to be a beneficiary of the same trends, especially now that it has deals in place with most automakers to stream the popular app through car speakers for drivers with Bluetooth connectivity. However, Wall Street pressure to monetize freeloaders at a time when tech giants are slapping on their swim trunks to dive into this pool, offer more uncertainties for Pandora investors in the near future than Sirius XM shareholders face.

Sirius XM has become the face of premium radio, and now, it's taking over the ears.

Satellite radio won't be the only beneficiary of an improving economy
With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

How Long Can BlackBerry Piggyback on Google?

One of the shortcuts that BlackBerry (NASDAQ: BBRY  ) has been using to grow its app count for years has been ported Google (NASDAQ: GOOG  ) Android apps. It all started when the company announced that it would support ported Android apps on its PlayBook in 2011.

By embracing Android apps within BlackBerry's platform, the company could make it easier for developers to bring their content over with minimal effort. The new BlackBerry 10 platform currently includes an Android emulator, but the underlying Android version is 2.3 Gingerbread, which was originally released in 2010. That means that even ported Android apps are dated and don't have full access to any of the new features that Google has added in the past few years.

In February, BlackBerry said it would be upgrading its Android runtime to Android 4.1 Jelly Bean, and subsequently decided to go all the way up to the current 4.2.2 Jelly Bean. The company has now released the first software developer kit, or SDK, that includes support for Android 4.2.2 Jelly Bean and is encouraging developers to start testing their apps on the platform.

The update will add a slew of new features to the emulator, including things like hardware acceleration, among others. This is the first real tangible step toward getting Jelly Bean apps on BlackBerry 10, and could help boost BlackBerry's app count further, albeit with ported apps.

BlackBerry's Android strategy is a risky bet. Embracing Android too deeply runs the risk of the entire platform becoming little more than a wrapper for Android apps, but the move serves as a stepping stone for developers. They can quickly port their apps to test the waters, and if all goes swimmingly, they can then spend additional time and resources to go native for better performance. The company's BlackBerry World app store is now up to 120,000 total apps, including native and ported titles.

To BlackBerry's credit, the company is making progress with getting more native content. BlackBerry would prefer all apps to be native, but that's not entirely within its control. Only if a sufficient fraction of apps become native could BlackBerry even consider ditching Android support. How long can BlackBerry piggyback on Google?

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Fears Exposed in Newest Wohler's Report

Motley Fool analyst Blake Bos shares insights from the latest Wohler Report on the state of the 3-D printing industry.  The current market shares of 3D Systems (NYSE: DDD  ) , Stratasys (NASDAQ: SSYS  ) , and The ExOne Company (NASDAQ: XONE  ) are discussed in the video below.

Blake explains why the rate of growth of the overall $2.2 billion 3-D printer market in 2012 is a key metric.  Growth forecasts are provided to help investors understand and monitor stock valuations moving forward.

Lastly, Blake reveals the biggest misconception regarding 3-D printer sales figures to help investors focus on the market segments that will have the greatest impact on future earnings.

As Blake mentions in the video, despite years of earnings growth 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell the stock today. To start reading, simply click here now for instant access.

United Utilities Group Makes a Splash

LONDON -- Shares in United Utilities  (LSE: UU  ) climbed 1% in early trade to reach 789 pence, as the company announced decent full-year figures for the year ended March 31, 2013.

Having seen its share price rise earlier in the week in anticipation of these results, Britain's biggest listed water company reported underlying operating profit increased by £13 million year on year, to £607 million, while revenue increased by £72 million to £1.64 billion.

The water management company is currently sitting on a five-year high and is on track to meet outperformance targets, which will benefit both customers and shareholders, according the firm.

It plans to reinvest around £200 million of capex outperformance for the "benefit of customers and the environment", while operational improvement saw United Utilities meet water and wastewater asset serviceability standards, outperform its regulatory leakage target and improve its quantitative SIM score with regulator Ofwat by 34%.

CEO Steve Mogford said:

Customer satisfaction with our service continues to improve, underpinned by strong operational and environmental performance.

We accelerated our capital investment program and invested £787 million in the year, taking the total investment in our network, since the start of the regulatory period in 2010, to just over £2 billion, providing an important contribution to the North West economy. We are delivering a smoother and more effective program and we expect to invest around a further £800 million in 2013/14.

Despite basic earnings per share falling from 45.7 pence in 2012 to 41.4 pence, the final dividend of 22.88 pence was maintained, giving a total dividend of 34.32 pence that represents a yield of 4.3%.

But if you're looking for an even better yield in a company that could prosper if the economy turns for the worse, as well as deliver a healthy gain if sentiment suddenly improved, then you need to read our brand-new special report! "The Motley Fool's Top Income Stock For 2013" features a company on a safe 5% yield, is completely free, and will be sent to your inbox immediately! Just click here now to find out more...

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Which are best cities for electric vehicles?

Which cities are Meccas for electric cars?

They're pretty much where you'd expect find them, with a few surprises.

One of the larger companies in public charging, ChargePoint, has looked at which cities have the most electric cars and most public charging stations per capita. The combination makes them a great place to have an electric car. There are more people like you and more places to charge up in a hurry.

"This map represents which cities – residents and businesses – have adopted EV culture and invested in the charging infrastructure,: says Pasquale Romano, CEO of ChargePoint. He says his company is seeing "a push and some friendly competition between cities to become the most EV friendly."

No surprise that the San Francisco area leads the nation in making electric vehicles the norm. But Austin; Detroit and Washington, D.C., also make the list.

In sheer numbers, Los Angeles has the most EV drivers at over 17,000 without per capita considers taken into accout. They they are, San Francisco Bay has the most cars and charging stations per capita.

Here's the list of the best:

1. San Francisco Bay Area, CA

2. Seattle, WA

3. San Diego, CA

4. Austin, TX

5. Honolulu, HI

6. Los Angeles, CA

7. Portland, OR

8. Detroit, MI

9. Washington, DC

10. Boston, MA

Why Nomura Upgraded Amgen

Shares of Amgen (AMGN) shot higher yesterday following its solid earnings report–and its financials were solid enough for Nomura’s M. Ian Somaiya to upgrade its shares to Buy from Neutral. He explains why:

Reuters

Our upgrade is based on our view that Amgen has significantly improved its longer-term outlook following additional cost-cutting measures which should support a nearly 15 point improvement in operating margins by 2018E and drive double-digit EPS growth. However, the key to our upgrade is the ability of the company's biosimilar portfolio to offset erosion of its base business, enabling its pipeline to drive growth beyond 2018.

Somaiya also calls Amgen, which trades at 17.5 times forward earnings, “too cheap to ignore.” Shares of Amgen have gained 0.8% to $158.51 at 3:25 p.m. today

David Muir to replace Diane Sawyer on "World News"

  Diane Sawyer out as ABC World News anchor NEW YORK (CNNMoney) Diane Sawyer will step down from ABC's flagship nightly newscast, "World News," in August, ABC said Wednesday.

David Muir, the weekend "World News" anchor, will replace her starting September 2.

The announcement ends months of speculation about a transition at ABC's anchor desk.

In a first-of-its-kind arrangement, Muir will not be the main anchor for big breaking news stories or elections -- that spot will go to "Good Morning America" co-host George Stephanopoulos, who will have the title "chief anchor."

Sawyer took over the "World News" chair in 2009, becoming the first woman to solo-anchor the famed newscast.

Inside ABC, Muir has been seen as her heir apparent for some time. That impression was cemented earlier this year when Stephanopoulos renewed his contract at "GMA" with no mention of a "World News" role.

"After wonderful years at 'World News' I decided it is time to move to a new full time role at ABC News," Sawyer said in a statement.

Last week, with Sawyer away, Muir anchored "World News" for the full week.

The appointment of Muir, 40, to succeed Sawyer, 68, also represents a generational change for a television time slot sometimes stubbornly resistant to change.

"I can't wait to continue bringing more of my specials to prime time and appearing on all ABC News broadcasts, as well," Sawyer said. "And to my friends and colleagues George and David -- congratulations. I look forward to exciting work together and great times ahead."

Tesla reports net loss of $50 million in Q1

Tesla Motors said on Wednesday after the market close that it lost $50 million, or 40 cents a share, in the first quarter on a non-adjusted basis.

Tesla also said that using non-GAAP information that excludes some items, such as stock-based compensation and non-cash interest expense, it earned $17 million, or 12 cents a share on an adjusted basis, beating analysts' estimates of 6 cents a share.

Tesla shares closed down $5.93, or 2.9%, at $201.35 in regular trading before the report and were down $14.84, or 7.4%, at $186.51 in after-hours trading following the report.

Adjusted revenue was $713 million for the quarter, up 27% from $621 million a year ago. The company says it generated $61 million in cash flow during the quarter.

Tesla said it made 7,535 of its Model S sedans during the quarter, beating its own projection of 7,400. And it estimated it would build "8,500 to 9,000" in the second quarter and deliver 7,500. It has estimated that Model S deliveries will total 35,000 this year.

The added production was important because Tesla has indicated it has had trouble filling orders for its cars in Europe, and it just began sales last month in China.

"We plan to expand in China as fast as possible because we believe the country could be one of our largest markets," said Tesla CEO Elon Musk in a note to investors announcing the earnings. He said Shanghai shortly will get its first "supercharger station" — the free high-speed recharging stations that Tesla is placing on key highway corridors in the U.S.

3 Stocks Under $10 Moving Higher

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

>>5 Hated Earnings Stocks You Should Love

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

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

>>5 Rocket Stocks to Buy for May Gains

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Gastar Exploration

Gastar Exploration (GST), an independent energy company, is engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the U.S. This stock closed up 5.4% to $6.62 in Tuesday's trading session.

Tuesday's Range: $6.30-$6.82

52-Week Range: $2.17-$7.13

Tuesday's Volume: 1.26 million

Three-Month Average Volume: 1.01 million

From a technical perspective, GST spiked sharply higher here right above its 50-day moving average of $6.15 with above-average volume. This move is quickly pushing shares of GST within range of triggering a major breakout trade. That trade will hit if GST manages to take out some near-term overhead resistance levels at $6.85 to its 52-week high at $7.13 with high volume.

Traders should now look for long-biased trades in GST as long as it's trending above its 50-day at $6.15 or above more near-term support at $5.93 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.01 million shares. If that breakout hits soon, then GST will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $8 to $9.

Fortuna Silver Mines

Fortuna Silver Mines (FSM) explores for, extracts and processes silver and gold properties in Latin America. This stock closed up 6.9% to $5.15 in Tuesday's trading session.

Tuesday's Range: $3.91-$4.15

52-Week Range: $2.56-$4.79

Tuesday's Volume: 206,000

Three-Month Average Volume: 279,558

From a technical perspective, FSM spiked sharply higher here back above its 50-day moving average of $4.06 with decent upside volume. This move pushed shares of FSM into breakout territory, since the stock took out some near-term overhead resistance at $4.08. Market players should now look for a continuation move higher in the short-term if FSM manages to take out Tuesday's intraday high of $4.15 with strong volume.

Traders should now look for long-biased trades in FSM as long as it's trending above Tuesday's low of $3.91 or above its 200-day at $3.72 and then once it sustains a move or close above Tuesday's intraday high of $4.15 with volume that hits near or above 279,558 shares. If that move starts soon, then FSM will set up to re-test or possibly take out its 52-week high at $4.79.

BioDelivery Sciences International

BioDelivery Sciences International (BDSI), a specialty pharmaceutical company, develops and commercializes therapeutics in the areas of pain management and oncology supportive care. This stock closed up 4.2% to $8.85 in Tuesday's trading session.

Tuesday's Range: $8.46-$8.95

52-Week Range: $3.86-$10.20

Tuesday's Volume: 429,000

Three-Month Average Volume: 570,250

From a technical perspective, BDSI spiked sharply higher here right off its 50-day moving average of $8.57 with decent upside volume. This move briefly pushed shares of BDSI into breakout territory, since the stock flirted with some near-term overhead resistance levels at $8.84 to $8.87. Shares of BDSI tagged an intraday high of $8.95, before the stock closed at $8.85. Market players should now look for a continuation move to the upside in the short-term if BDSI manage to take out Tuesday's high of $8.95 with strong upside volume flows.

Traders should now look for long-biased trades in BDSI as long as it's trending above Tuesday's low of $8.45 or above some more near-term support at $8.12 and then once it sustains a move or close above $8.95 with volume that hits near or above 570,250 shares. If that move gets started soon, then BDSI will set up to re-test or possibly take out its next major overhead resistance levels $9.50 to its 52-week high at $10.20.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Poised for Breakouts

>>5 Car Stocks to Trade for Gains in May

>>3 Stocks Spiking on Big Volume

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Chesapeake’s Troubles Make It a Stock to Stay Away From

Chesapeake Energy (CHK), America's second-largest natural gas producer, has struggled with its numbers as the natural gas market had had a tough time of late. Chesapeake incurred a net loss of $159 million in the last reported quarter. It was, however, able to increase its revenue by 28% to $4.54 billion.

Tough Times

Nevertheless, the dynamics of the natural gas industry do not look very impressive. Therefore, this will affect the company's performance in the long run and lead to disappointment. Moreover, Chesapeake's daily production declined 3% in the last quarter as a result of reduction in well connections. Chesapeake has also terminated drilling rig contracts recently as it incurred heavy expenses due to severe weather conditions and other macroeconomic headwinds such as growing demand of shale gas that is affecting natural gas pricing, eventually leading to further loss of its market share.

Chesapeake is concentrating on various aspects of its business to get rid of these tough situations and has definite and concrete strategies to raise its cash through sale of assets that will assist the company to decrease its expenditure and boost its income. In addition, Chesapeake is planning to spin off the oil field service division and raise about $4.4 billion. Chesapeake is also focusing on discovering and developing natural gas and oil assets onshore in the U.S. through these spin-off strategies. This could perhaps turn the company to profitability in the long run.

Selling Assets

In addition, Chesapeake has also declared the sale of up to 437 natural gas units and related assets as natural gas pricing remains unfavorable due to rising demand of shale gas. The evolution of horizontal drilling and hydraulic fracturing over the past few years has allowed companies to tap shale gas at cheaper rates. This, on the contrary, has led to increased production of natural gas in the U.S., well above the growth in consumption that has affected its price ultimately.

However, Chesapeake has recently noticed significant increase in prices of natural gas abroad due to accelerated export demand. Hence, the company expects much better financial and operational performance in the current fiscal 2014. Further, exports are expected to play a key role in lifting natural gas prices in the U.S. despite surging supply from shale gas resources.

In addition to this, electricity demand is also expected to grow in the future, a positive sign for the company that will certainly help natural gas price to shoot up, because of the fact that natural gas has much lower carbon intensity compared to coal. This provides the company an attractive alternative fuel for new power generation plants because of relatively low capital costs and favorable heat rates. But, analysts expect the momentum in reduction of natural gas prices will continue in the future as well. Even Chesapeake feels the same pressure on the natural gas pricing that is supposed to decline in the future, therefore Chesapeake is focusing on asset sales to maintain profitability, or else it would be in dire straits.

But the company can take heart from the fact that natural gas is expected to remain the fastest growing global energy source until 2013, growing at a rate of 1.9%, regardless of current pricing. However, the shore-term prediction does not look promising as natural gas prices have declined in the past six to seven years.

Conclusion

Overall, the present scenario for Chesapeake is very complex. As a result, investors would be better off if they don't invest in the stock.

Currently 2.50/512345 Rating: 2.5/5 (2 votes)

Voters:

Subscribe via Email Subscribe RSS Comments Vgm - 11 hours ago

Your view contrasts with that of Longleaf, as discussed in their latest Quarterly Report from last week. But I'd agree the current price level is not attractive entry point:

"Energy company Chesapeake retreated 5% in the quarter following a strong 2013. Short-term questions about production levels, the mix between gas and liquids, and additional asset sales pressured the stock. Our appraisal, however, grew slightly due to successful cost reductions. CEO Doug Lawler has made substantial progress since taking the helm last year, and we believe his capital discipline and operational effectiveness will reward shareholders."

(I am long CHK and optimistic for its 3-5 year future)

Please leave your comment:
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Retail Arbitrage: Buy Low from Local Stores, Sell High Online

Emily Rose Bennett/Zuma Press/Alamy What would you do if you saw money just lying in the aisle of your local mall store or big-box retailer? And not a few coins or a dollar bill, but fives, tens or even some twenties? Would you take the time to bend down and pick them up -- or would you just continue shopping? A silly question, but thanks to technology and a little work, people around the country are finding money at their favorite stores using something called retail arbitrage. Don't let the Wall Street term "arbitrage" scare you: All it means is taking advantage of a price difference between two markets. With retail arbitrage, you buy items that are on sale for less at your local store than they're selling for online, and then resell them on the Web for a profit. And your partner is Amazon.com, the world's largest online retailer. The Lesson of Zoomer Let's look at a real-life example and how a retail arbitrager can take advantage of it. This past Christmas, my daughter really wanted a robot dog called Zoomer. Week after week, she talked about how cool the toy was, and never missed a chance to call me in to watch the ad for it on TV. I assumed that there would be plenty of these toys at my local store and waited until the week before Christmas to start shopping. To my horror, there were no Zoomers. Apparently, I was the last to learn that Zoomer was one of the hottest items of the holiday season. I checked every store I could in Southern California, where I live, but all were sold out, in their actual stores and their online marketplaces, and they weren't expecting more to be available until after the first of the year Panic set in. How could I face my daughter Zoomerless on Christmas morning, all because I had been a lazy dad? Fortunately, my wife came to the rescue. On a hunch, she called her sister who lives in Houston, who found one at a local Target and mailed it to us in the nick of time. If I had been in that Houston Target and had seen that Zoomer, I could have bought it and listed it for sale on Amazon for three times the list price -- as a number of sellers did during then -- and it would have sold, making me a profit of $200. An Amazon Account, a Phone and Some Research But inefficiencies in supply and distribution don't just happen during holiday seasons -- they happen with all the time, with thousands of different products, and you can capitalize on them. All it takes is a free Amazon sellers account, a mobile phone, and a keen eye and understanding of what is in demand on its marketplace. Once you find an item you think is a good candidate for arbitrage, you can type its SKU number into Amazon's site on your mobile device and you will see a real-time listing of the item's price, its sales rank, and how many of them are currently for sale on the site. If the item is a good seller, and there is enough profit between what you can purchase it for and what it is selling on Amazon.com (AMZN) for (less packing and shipping), then you can arbitrage it. Fulfillment by Amazon allows you to purchase an item and send it to Amazon -- using its highly discounted rates -- where it will store it for a small fee and take over shipping, customer service and returns. FBA allows those who want to make a living from retail arbitrage to purchase as much inventory as they want and not have to worry about storage, fulfillment or any of the other hassle that go along with owning a small business. So next time you walk down the shopping aisle, drive by a garage sale or see a sign advertising a closeout sale in your neighborhood, remember, if you were using retail arbitrage, you might be able to turn those opportunities into cold, hard cash.

Robo report: Traditional advisers may be biggest market for online investment services

Younger investors could spend billions of dollars for financial advice online, according to a new report, but the biggest consumers of these services may be traditional firms looking to expand.

A recent report by the consulting firm Aite Group found that if the investors between 20 and 49 who say they would pay for low-cost online advice did so today, firms in that space could realize a total of $2 to $4 billion in annual revenue. Firms that provide more active investment management services or help advisers digitize their offerings could see several billion dollars more in revenue.

The report, which looked at 18 of the dozens of online advice platforms, cautioned that a massive shift in behavior would have to oc