Potential M&A Targets for Repsol

Madrid based oil and gas company Repsol (OTH:REPYY), which was badly hit by the nationalization of Argentina's YPF (YPF), will try to diversify itself through investing in a more stable energy-rich country: the U.S. Despite the initial negative reaction of the market toward Repsol's decision, I am convinced this is, indeed, a good decision. As for now, Repsol is very concentrated into unstable regions such as Morocco, Sierra Leone and Libya, and getting some exposure to safer regions can hardly be considered a poor strategy.

According to the Wall Street Journal, "Repsol is willing to spend between $5 billion and $10 billion on North American Exploration & Production (E&P) assets." The newspaper also points at Whiting Petroleum (WLL) and Kodiak Oil & Gas (KOG) as possible targets.

Exploratory Success at Good Price

Whiting, held by Scott Black and George Soros, has been growing production fast. In million barrels of oil equivalent (MBOE) terms, production will grow by 12% year over year in 2013, and it's expected to grow by another 13% in 2014. Of course, high capital expenditures (at $2.5 billion this year) are burning cash fast, but growth prospects are huge. The company, which owns 88,000 acres in the Niobrara area in and 570,000 acres in the Bakken area, has now proved and developed reserves of just 190.3 million barrels of oil equivalent (MMBOE), 14% gas, but has more than 318 MMBOE extra potential reserves.

With net debt at a very manageable level (1 time EBITDA) and trading at just 4 times EBITDA, I think Whiting is a great target for Repsol or any other bigger company trying to get into a high potential American E&P company. Its $6.5 billion market capitalization and its oil (versus gas) profile makes it even a better prospect for Repsol.

A Highly Leveraged Play
Kodiak, held by Ron Baron and John Paulson, is considerably smaller than Whiting and, in every possible way, much more leveraged. The company has proved reserves of 57 MMBOE (16% gas), and 253 MM! BOE extra probable reserves. As you can imagine from the previous figure, the company has a huge upside potential if probable reserves become proven ones. That said, the company has leveraged itself, expecting most of those probable reserves to come into production sometime in the future. Kodiak has a net debt to EBITDA ratio of 3 times. Of course, management has good reasons to feel positive about the company's trends. Production increased 267% year over year in 2012, and it's expected to grow by another 110% in 2013.

Its high production growth, high debt and high capex profile makes Kodiak an extremely leveraged play. Nevertheless, it could be a wonderful growth asset to own for a much bigger company like Repsol: Kodiak's market capitalization is just below $3 billion against Repsol's is $32 billion. Trading at 2013 6.6 times EBITDA and 2014 4.2 times EBITDA, Kodiak could be a good long, thinking of it as an M&A target for Repsol or any other bigger oil and gas player.

Bottom Line

Both Whiting and Kodiak fall under the description of what Repsol is said to be looking for in the U.S. That said, both companies are different. While Whiting is a much more conservative play, Kodiak offers huge growth potential at the cost of high leverage. Naturally, no one knows whether Repsol will or will not finally acquire an E&P company in the U.S., but it's clear to me that both of these mid-capitalization companies are potential M&A targets in an industry that is consolidating itself.

Can Phillips Stock Move Higher?

With shares of Phillips (NYSE:PHG) trading around $32, is PHG 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

Phillips is a Netherlands-based provider of healthcare, lighting, and consumer lifestyle businesses worldwide. The company operates within the following main business sectors: Healthcare, Consumer Lifestyle, Lighting, and Group Management and Services. The Healthcare sector offers both personal care and professional products, such as computer tomography equipment, radiography equipment and refurbished systems, among others. The Consumer Lifestyle sector offers a range of sound, vision, and household products such as television, headphones, and digital cameras, among others. The Lighting sector offers lighting products such as professional lamps, ballasts, luminaires, and more. The Group Management & Services sector provides the operating sectors with support through shared service centers.

Philips shares have fallen as the Dutch electronic and healthcare company's forecasts fell short of expectations. The company said it plans to buy back $2 billion worth of its own shares and will grow sales between 4 and 6 percent through 2016, according to the Wall Street Journal. Philips has been restructuring, cutting jobs and expenses, and focusing on its main products like hospital scanners and LED lights. Some criticized Chief Executive Frans van Houten, saying he could have made more optimistic predictions, but he responded that the targets are “balanced, responsible, and we're also able to deal with some contingencies.”

T = Technicals on the Stock Chart Are Strong

Phillips stock has struggled to make significant progress in the last several years. The stock has been trading sideways for most of the last several months as it establishes a value range. 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, Phillips is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Phillips Options	35.39%	96%	95%

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

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

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Phillips’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Phillips 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)	233.40%	-18.18%	-132.11%	114.60%
Revenue Growth (Y-O-Y)	6.36%	-4.63%	9.11%	8.35%
Earnings Reaction	2.21%	-5.02%	3.45%	6.63%

Phillips has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have been upbeat about Phillips’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Phillips stock done relative to its peers, General Electric (NYSE:GE), Siemens (NYSE:SI), OSI Systems (NASDAQ:OSIS), and sector?

	Phillips	General Electric	Siemens	OSI Systems	Sector
Year-to-Date Return	23.10%	16.34%	8.03%	16.30%	14.61%

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

Conclusion

Phillips engages in the  healthcare, lighting, and consumer lifestyle businesses around the world. The company is being scrutinized because forecasts are falling short of expectations. The stock has struggled in recent years and is current trading sideways as it plans for its next move. Over the last four quarters, earnings have been mixed while revenues have been rising, which has maintained investors’ upbeat outlook about the company. Relative to its peers and sector, Phillips has been a year-to-date performance leader. WAIT AND SEE what Phillips does this coming quarter.

Big Mac Investor Impact

McDonald's is currently testing out a new Dollar Menu with price increases, which will not only have significant repercussions for individual franchisees, but investors with McDonald's stock in their portfolios as well, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

It looks like McDonald's (MCD) is facing a big price/cost squeeze. The latest evidence is the chain's test of a new Dollar Menu that would include items selling for as much as $5.00 and simmering discontent among franchisees who say that that company is increasing the fees that it charges them, in an effort to bolster the parent company's bottom line.

It's hard for any company to raise prices in the current non-inflationary environment. But it's especially hard right now for operators of fast food restaurants, given the intense price competition in a very crowded marketplace. McDonald's sales growth in recent quarters has been driven by the success of its Dollar Menu, so raising prices in that segment are a big deal for the company. In addition, pushback from franchisees who say they can't afford to refurbish their stores, given higher charges from McDonald's hits at one of McDonald's key advantages in its market—it's ability to refresh stores more frequently than competitors. A McDonald's refresh at $600,000 on average, according to the company, costs substantially more than a remodel at Burger King (BKW) at $300,000 or Wendy's (WEN) at $375,000 for the least expensive version. McDonald's restaurants average $2.5 million in annual sales.

I don't think those trends are fatal in the long run, but they do present significant short-term headwinds for the stock. I'm looking to raise some more cash, in case a volatile September and October creates some bargains—and longer term to put to work in emerging markets, if I can see something that looks like a bottom. So I'm selling McDonald's out of my Jubak's Picks portfolio. As of the close on September 6, I had a 7.1% gain on these shares since I added them to that portfolio in May, 2012. The company will pay its most recent quarterly dividend—the stock shows a current yield of 3.2%—on September 17 to shareholders of record on September 3.

The new Dollar Menu—to be called the Dollar Menu and More—has been under test in five US markets. One test includes $1, $2, and $5 items; the other has $1, $1.79, and $4.99 offerings. Isn't this just a price increase? Absolutely. But McDonald's has run into the brute force rules of economics. Yes, the Dollar Menu increases traffic at its restaurants, but the prices on that menu mean that extra traffic doesn't generate much in the way of margins. That's especially true for franchisees that pay fees to McDonald's rather than collecting them. That arrangement lets McDonald's make money, even if franchise owners are seeing their margins cut to the bone and beyond. According to notes that Bloomberg saw from a meeting of franchisees, some franchisees are paying as much as 12% of store revenue in rent. That's an increase from a historical rate near 8.5%. Revenue to McDonald's from franchised stores, which includes rent and royalties, increased an average of 8% annually over the past five years, according to Bloomberg. Total revenue at the company grew by an average annual 4%.

McDonald's and its franchisees have been through this battle before. In the mid-1990s, for example, franchisees protested that the company was opening too many restaurants near existing franchise operations and cannibalizing their sales. In response, McDonald's slowed its rate of domestic expansion.

I expect that the company will work through these latest difficulties on the cost and franchise fronts. I just think it's going to take a while, and during that time, I expect that I can find better opportunities.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund did own shares of McDonald's as of the end of June. For a complete list of the fund's holdings as of the end of June see the fund's portfolio here.

4 Stocks Rising on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks With Big Insider Buying

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Toxic Stocks You Should Sell

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

SurModics

SurModics (SRDX) is a provider of drug delivery and surface modification technologies to the healthcare industry. This stock closed up 6.8% at $24.19 in Wednesday's trading session.

Wednesday's Volume: 263,000

Three-Month Average Volume: 71,045

Volume % Change: 287%

>>5 Bargain Bin Stocks to Buy This Fall

From a technical perspective, SRDX soared higher here back above its 200-day moving average of $23.59 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $19.73 to its intraday high of $24.95. During that move, shares of SRDX have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in SRDX as long as it's trending above its 200-day at $23.59 or above more support at $22 and then once it sustains a move or close above Wednesday's high of $24.95 with volume that hits near or above 71,045 shares. If we get that move soon, then SRDX will set up to re-test or possibly take out its next major overhead resistance levels at $27 to its 52-week high at $27.98.

New Oriental Education & Technology Group

New Oriental Education & Technology Group (EDU) is a provider of private educational services in China. This stock closed up 4.7% at $24.64 in Wednesday's trading session.

Wednesday's Volume: 2.98 million

Three-Month Average Volume: 1.14 million

Volume % Change: 163%

>>5 Stocks Set to Soar on Bullish Earnings

From a technical perspective, EDU ripped sharply higher here right above some near-term support at $23.06 with above-average volume. This move pushed shares of EDU into breakout and new 52-week-high territory, since the stock took out some near-term overhead resistance at $24.50.

Traders should now look for long-biased trades in EDU as long as it's trending above $23 or above its 50-day at $22.40 and then once it sustains a move or close above Wednesday's high $24.74 with volume that's near or above 1.14 million shares. If we get that move soon, then EDU will set up to re-test or possibly take out its next major overhead resistance levels at $28 to $30.

Home Inns & Hotels Management

Home Inns & Hotels Management (HMIN) develops, leases, operates, franchises and manages economy hotels in China. This stock closed up 4.8% at $34.07 in Wednesday's trading session.

Wednesday's Volume: 731,000

Three-Month Average Volume: 218,547

Volume % Change: 207%

>>5 Rocket Stocks to Buy for September Gains

From a technical perspective, HMIN spiked sharply higher here right above some near-term support at $32.19 and above its 50-day moving average at $31.50 with above-average volume. This stock recently pulled back from its 52-week high at $36.74 to right above its 50-day at $31.50. This bounce right above its 50-day is now pushing shares of HMIN within range of triggering a near-term breakout trade. That trade will hit if HMIN manages to take out some near-term overhead resistance at $34.83 with high volume.

Traders should now look for long-biased trades in HMIN as long as it's trending above $32 or its 50-day at $31.50 and then once it sustains a move or close above $34.83 with volume that's near or above 218,547 shares. If we get that move soon, then HMIN will set up to re-test or possibly take out its 52-week high at $36.74. Any high-volume move above that level will then give HMIN a chance to tag its next major overhead resistance levels at $40 to $42.

Wolverine World Wide

Wolverine World Wide (WWW) designs, manufactures and markets quality casual footwear and apparel, performance outdoor and athletic footwear and apparel, children's footwear, industrial work boots and apparel and uniform shoes and boots. This stock closed up 1.3% at $57.09 in Wednesday's trading session.

Wednesday's Volume: 570,000

Three-Month Average Volume: 404,058

Volume % Change: 65%

>>5 Stocks Ready to Break Out

From a technical perspective, WWW spiked modestly higher here back above its 50-day moving average of $56.97 with above-average volume. This stock recently formed a double bottom at $55.33 to $55.07. Following that bottom, shares of WWW have now started to uptrend a bit and move within range of triggering a near-term breakout trade. That trade will hit if WWW manages to take out some near-term overhead resistance levels at $58 to $58.31 with high volume.

Traders should now look for long-biased trades in WWW as long as it's trending above $56 or above $55.07 and then once it sustains a move or close above those breakout levels with volume that's near or above 404,058 shares. If we get that move soon, then WWW will set up to re-test or possibly take out its 52-week high at $60.35. Any high-volume move above that level will then give WWW a chance to tag $65.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>How to Win With The Twitter IPO

>>4 Stocks Under $10 Making Big Moves

>>5 Big Trades to Take as the Fed Hits the Gas

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.

Ten Companies Expected to Double Revenues in the Next Few Years

If you have analyzed the myriad earnings reports over the summer of 2013, the trend that you will notice is a lack of revenue growth from most major companies. Many have continued to grow earnings because of cost containment and share buybacks, but the problems in Europe have caused slower spending and growth in Asia and in emerging markets. That is the bad news. The good news is that some public companies would still be considered as extreme growth stocks. In fact, some companies are still doubling their revenues.

24/7 Wall St. has evaluated many existing public companies to identify ones with high growth rates. With 2013 now in the second half, we wanted to look at a group of public companies that are expected to double their sales in the next few years. Our main focus is for companies expected to double sales by the end of 2016 from the end of 2012, but a couple may take until 2017 or so. Doubling sales at a time of slow economic expansion is very impressive whether it takes three and a half years or four and a half years.

In order to not have the deck stacked with small tiny companies that most people have never heard of, we tried to avoid repetitive industries. There almost always seems to be some small turnaround company or some smaller companies in biotech and software that are growing rapidly. We wanted to broaden the search for companies expected to double their revenues.

In some cases you will see that the company has itself projected that it plans to double its sales. In other cases, it is the group of analysts covering each company that are forecasting sales to double. Some of these public companies will double as soon as 2014, while others will not realize their doubling in sales until 2015 or 2016.

We would also warn that this rapid growth can come at an expensive price. We have shown a 52-week trading range on each public stock, and we have given a forward price-to-earnings (P/E) ratio for the fiscal year ahead so that you can see how Wall Street is valuing the stock based on current share prices.

The 24/7 Wall St. list of public companies expected to double sales in the next few years includes the following: Kona Grill Inc. (NASDAQ: KONA), LinkedIn Corp. (NYSE: LNKD), Noodles & Co. (NASDAQ: NDLS), Onyx Pharmaceuticals Inc. (NASDAQ: ONXX), Michael Kors Holdings Ltd. (NYSE: KORS), Questcor Pharmaceuticals Inc. (NASDAQ: QCOR), Tesla Motors Inc. (NASDAQ: TSLA), Under Armour Inc. (NYSE: UA), Workday Inc. (NYSE: WDAY) and Yelp Inc. (NYSE: YELP). Facebook Inc. (NASDAQ: FB) might as well be considered a runner-up here, but it was a direct competitor of LinkedIn in the selections.

We looked at past sales growth, expected or stated sales growth expectations ahead, where the stocks have traded and what their market capitalization rates are now, and we even gave a forward earnings projection to see how much you have to pay up for such strong growth. A detailed analysis of each company follows.

Kona Grill Inc. (NASDAQ: KONA) is the smallest growth chain by far of the companies we analyzed. Frankly, this may be tied to a doubling off of a smaller base since its market cap is a mere $100 million. At $12.35, its stock has a 52-week range of $7.80 to $13.90. Sales in 2012 were $96 million, and the 2013 growth might not indicate a doubling. It said at the start of August with earnings that its second-quarter restaurant sales increased 3.2% to $25.8 million and its same-store sales increased 2.5%. Berke Bakay, president and CEO, said, “The sales growth is a testament to the strength of our brand. … Our vision over the next five years is to double our sales, which translates to an approximately 15% compounded annual growth rate.” Kona trades at roughly 25 times expected 2013 earnings expectations.

LinkedIn Corp. (NYSE: LNKD) is the social network for professionals, and now the company wants to swoop its expansion down to the student level. This may come with a risk. It trades at $230.79 in a 52-week range is $94.75 to $244.00, and its market cap is almost $26 billion. The company already has doubled sales more than once and is expected to keep doing so. Revenue was $972 million in 2012, versus $522 million in 2011 and up from $243 million in 2010. It is widely expected that sales will double again by the end of 2015. Thomson Reuters has a consensus revenue target of $1.51 billion for 2013, and that is expected to be $2.14 billion for fiscal year 2014. In short, LinkedIn’s sales doubling should happen shortly before the end of 2014. Facebook would also be in this social media doubling camp as well, but LinkedIn actually is expected to grow faster than Facebook, according to analysts. LinkedIn is valued at a whopping 105 times expected 2014 earnings, versus a valuation of about 40 times expected 2014 earnings from Facebook.

Next Banking Crisis an 'Easy Call': Mayo

NEW YORK (TheStreet) -- A sudden, sharp rise in interest rates will drive the next banking crisis, according to CLSA analyst Mike Mayo, who says the issue is an "easy call."

During a panel discussion after receiving the Daniel J. Forrestal III Leadership Award for Professional Ethics and Standards of Investment Practice from the CFA Institute, Mayo dismissed a question about efforts by regulators to improve mortgage underwriting standards.

"That's not the next problem. Let me interrupt. Mortgages are going to be fine," he said. "Number one on my list is going to be interest rate risk at these large institutions. We haven't had a big interest rate shock since 1994. So if I pick one risk in the next five to 10 years I have to come back to this room it's going to be interest rate risk. We should reallocate a lot of examiners from the mortgage area to the interest rate risk area. It's an easy call."

Mayo cited JPMorgan Chase's (JPM) more than $6 billion in trading losses on credit derivatives during 2012 -- many of them tied to a former trader named Bruno Iksil who became known as the "London Whale" -- as an early harbinger of the potential problems that may arise from a sharp rise in interest rates.

"I do think it was simply a canary in the coalmine: JPMorgan's whale. The way it came about is unique to JPMorgan but as far as having excess deposits which are invested and having a mismatch -- that's the canary in the coalmine. It's not even a tough call. You know we're going to have an interest rate spike at some point -- we don't know when -- and when that happens, that's when we're going to see damage," Mayo said.

Another problem area Mayo foresees is commercial lending.

"Some of your traditional banks... are making overly aggressive commercial loans right now," he says, adding the problem is something "we're hearing from all the banks."

-- Written by Dan Freed in New York.

Follow @dan_freed

iPhone 5c Pre-Orders Go Live

Update from 8:29 A.M. to include additional pre-sales information.

NEW YORK (TheStreet) -- Apple's (AAPL) iPhone 5c is now available for pre-order, as the tech giant looks to ramp up sales of its largest revenue driver ahead of the upcoming holiday season. However, people who want Apple's high-end phone, the iPhone 5s, will have to wait.

When making the announcement earlier this week that the 5c would be available for pre-order starting Friday, Apple conspicuously "forgot" to mention when the 5s would be available for pre-order. The iPhone 5s will be available at 12:01 a.m. Sept. 20th for pre-order, but customers will more than lilkely have to line up at Apple Stores and the stores from Apple's carriers, including AT&T (T), Verizon (VZ), Sprint (S) and T-Mobile USA (TMUS). Apple's approach to limiting pre-orders for the 5s ensures there will be exceptionally long lines, as customer demand for the phone is said to be high.

The iPhone 5s has a host of new features to separate it from Apple's previous offerings. Sporting a fingerprint authentication -- TouchID -- on the home button, the 5s also runs a 64-bit A7 CPU, the first 64-bit chip inside a smartphone. Apple also unveiled the M7 co-processor, a chip used to track motion data. The phone comes in silver, graphite and gold, marking the first time Apple has offered the iPhone in colors other than white and black. In contrast, the 5c runs Apple's A6 processor, announced last year as part of the iPhone 5. It will come in five colors (white, pink, yellow, blue and green), and will come in 16 GB and 32 GB models. The 5c starts at $99 on AT&T, Verizon, and Sprint. T-Mobile users can purchase the phone unlocked, which starts at $549 for the 16 GB model. The yellow version of the 5c has already sold out at Sprint on the pre-order, with the carrier's Web site saying it'll do its "best to get it to you by 9/20; but because of high demand, some phones will ship in up to 2 weeks." Apple shares were lower in trading Friday, off 1% to $468.05. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia

Hot Medical Companies To Watch In Right Now

The United States is the fattest country in the world -- and I'm not talking about our wallets, folks! According to the Centers for Disease Control and Prevention, a disheartening 35.7% of the population is considered obese. That's considerably higher than the next closest countries, Mexico, New Zealand, and Australia, which have obesity rates ranging between 25% and 30%.

A huge, but largely preventable, problem
The sad part about obesity is that it's preventable more often than not. Medical costs associated with obesity were estimated by the CDC in 2008 at $147 billion annually, with obese people, on average, registering a cost premium of $1,429 as compared to someone of average weight. Obesity also brings on higher risks of hypertension, heart disease, stroke, Type 2 diabetes, and certain types of cancers.

Hot Medical Companies To Watch In Right Now: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

Hot Medical Companies To Watch In Right Now: Myriad Genetics Inc (MYGN.O)

Myriad Genetics, Inc. (Myriad) is a molecular diagnostic company. The Company is focused on developing and marketing predictive medicine, personalized medicine and prognostic medicine tests. It performs all of its molecular diagnostic testing and analysis in its own reference laboratories. These technologies include the cornerstone technologies of biomarker discovery, high-throughput deoxyribo nucleuc acid (DNA) sequencing, ribo nucleic acid (RNA) expression and multiplex protein analysis. The Company uses this information to guide the development of new molecular diagnostic tests that are designed to assess an individual's risk for developing disease later in life (predictive medicine), identify a patient's likelihood of responding to drug therapy and guide a patient's dosing to ensure optimal treatment (personalized medicine), or assess a patient's risk of disease progression and disease recurrence (prognostic medicine).

As of June 30, 2012, the Company h ad launched nine commercial molecular diagnostic tests. The Company markets these tests through its own approximate 385-person sales force in the United States. The Company also markets its BRACAnalysis, COLARIS, and COLARIS AP tests through its own European sales force and have entered into marketing collaborations with other organizations in selected Latin American, European and Asian countries. The Company also generates revenue by providing companion diagnostic services to the pharmaceutical, and biotechnology industries and medical research institutions utilizing its multiplexed immunoassay technology.

Molecular Diagnostic Tests

The Company's molecular diagnostic tests are designed to analyze genes, their mutations, expression levels and proteins to assess an individual's risk for developing disease later in life, determine a patient's likelihood of responding to a particular drug, assess a patient's risk of disease progression and disease recu rrence and measure a patient's exposure to drug therapy to! e! nsure optimal dosing and reduced drug toxicity. The Company's BRACAnalysis test is a analysis of the BRCA1 and BRCA2 genes for assessing a woman's risk of developing hereditary breast and ovarian cancer. BRACAnalysis accounted for 81.7% of the Company's total revenue during the fiscal year ended June 30, 2012. Its The Company's COLARIS test is an analysis of the MLH1, MSH2, MSH6 and PMS2 genes for assessing a person's risk of developing colorectal cancer or uterine cancer.

The Company's COLARIS AP test detects mutations in the APC and MYH genes, which cause a colon polyp-forming syndrome known as Familial Adenomatous Polyposis (FAP), a more common variation of the syndrome known as attenuated FAP, and the MYH-associated polyposis signature (MAP). The Company's MELARIS test analyzes mutations in the p16 gene to determine genetic susceptibility to malignant melanoma. The Company's OnDose test is a nanoparticle immunoassay that is designed to assist oncologists in optimizing 5-FU (fluorouracil) anti-cancer drug therapy in colon cancer patients on an individualized basis. The Company's PANEXIA test is a comprehensive analysis of the PALB2 and BRCA2 genes for assessing a person's risk of developing pancreatic cancer later in life. The Company's PREZEON test is an immunohistochemistry test that analyzes the PTEN gene and assesses loss of PTEN function in many cancer types.

The Company's Prolaris test is a 46-gene molecular diagnostic assay that assesses whether a patient is likely to have a slow growing, indolent form of prostate cancer that can be safely monitored through active surveillance, or a more aggressive form of the disease that would warrant aggressive intervention, such as a radical prostatectomy or radiation therapy. The Company's TheraGuide 5-FU test analyzes mutations in the DPYD gene and variations in the TYMS gene to assess patient risk of toxicity to 5-FU (fluorouracil) anti-cancer drug therapy.

< p>Companion Diagnostic Services and Other Revenue

! Throug! h Myriad RBM Inc., the Company provides biomarker discovery and companion diagnostic services to the pharmaceutical, biotechnology, and medical researches industries utilizing its multiplexed immunoassay technology. The Company's technology enables the Company to screen large sets of clinical samples from both diseased and non-diseased populations against the Company's menu of biomarkers. The Company's companion diagnostic services consist of Multi-Analyte Profile (MAP), Multiplexed Immunoassay Kits and TruCulture.

The Company has compiled a library of over 550 individual human and rodent immunoassays for use in its multi-analyte profile (MAP) testing services. The Company has also developed RodentMAP, a panel for use in pre-clinical animal studies and OncologyMAP, which measures cancer-related proteins to assists researchers accelerate the pace of discovery, validation and translation of cancer biomarkers for early detection, patient stratification and therapeu tic monitoring. The Company has developed multiplexed immunoassay kits that enable its customers to leverage its technology services with their in-house capabilities. The Company's internally developed multiplexed immunoassay kits include all of the components necessary for a customer to perform a test on their own Luminex instrument. TruCulture is a simple, self-contained whole blood culture that can be deployed to clinical sites around the world for acquiring cell culture data without specialized facilities or training.

Top Insurance Stocks To Buy Right Now: Hemispherx Biopharma Inc (HEB)

Hemispherx Biopharma, Inc. (Hemispherx) is a specialty pharmaceutical company engaged in the clinical development of new drugs therapies based on natural immune system enhancing technologies for the treatment of viral and immune based chronic disorders. Hemispherx focuses on two core pharmaceutical technology platforms Ampligen and Alferon N Injection.The commercial focus for Ampligen includes application as a treatment for Chronic Fatigue Syndrome (CFS) and as an influenza vaccine enhancer (adjuvant) for both therapeutic and preventative vaccine development. Alferon N Injection is a United States Food and Drug Administration (FDA) approved product with an indication for refractory or recurring genital warts. Alferon LDO (Low Dose Oral) is a formulation under development targeting influenza. It has three subsidiaries BioPro Corp., BioAegean Corp., and Core BioTech Corp. The Company's foreign subsidiary is Hemispherx Biopharma Europe N.V./S.A.

Ampligen

Ampligen is an experimental drug, which is undergoing clinical development for the treatment of Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS). Over 1,000 patients have participated in the Ampligen clinical trials representing the administration of more than 90,000 doses of this drug. The Company is also engaged in ongoing, experimental studies assessing the efficacy of Ampligen against influenza viruses.

Alferon N Injection

Alferon N Injection is the registered trademark for the Company's injectable formulation of natural alpha interferon. Interferons are a group of proteins produced and secreted by cells to combat diseases. The Company's natural alpha interferon is produced from human white blood cells. Alferon N Injection [Interferon alfa-n3 (human leukocyte derived)] is a highly purified, natural-source, glycosylated, multi-species alpha interferon product.

Alferon LDO (Low Dose Oral)

Alferon LDO [Low Dose Oral Interferon Alfa-n3 (Human Leukocyte Derived)]! is an experimental low-dose, oral liquid formulation of Natural Alpha Interferon and like Alferon N Injection should not cause antibody formation, which is a problem with recombinant interferon. It is an experimental immunotherapeutic that works by stimulating an immune cascade response in the cells of the mouth and throat, enabling it to bolster systemic immune response through the entire body by absorption through the oral mucosa.

The Company competes with Pfizer, GlaxoSmithKline, Merck, AstraZeneca, Baxter International, Fletcher/CSI, AVANT Immunotherapeutics, AVI BioPharma and Genta.

Hot Medical Companies To Watch In Right Now: StemCells Inc (STEM.W)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal hum an neural stem cells. Its HuCNS-SC cells can be directly tr! a! nsplanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenanc e and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of tr ue, germline competent rat embryonic stem cells without! the ! ad! dition ! of cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Hot Medical Companies To Watch In Right Now: Spectrum Pharmaceuticals Inc.(SPPI)

Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. The company engages in acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. It markets Zevalin, a prescribed form of cancer therapy, radioimmunotherapy; and Fusilev, a novel folate analog formulation and the pharmacologically active isomer of the racemic compound, calcium leucovorin. The company?s drugs in late stage development include Apaziquone, an anti-cancer agent; and Belinostat, a histone deacytelase inhibitor. Its drugs in development also include Ozarelix a luteinizing hormone releasing hormone antagonist, which is in Phase II clinical stage; SPI-1620, a peptide agonist of endothelin B receptors, which is in Phase I clinical stage; and RenaZorb, a lanthanum-based nanoparticle phosphate binding agent, which is in preclinical stage. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is based in Henderson, Nevada.

Hot Medical Companies To Watch In Right Now: StemCells Inc (STEM)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Hot Medical Companies To Watch In Right Now: Hanger Orthopedic Group Inc.(HGR)

Hanger Orthopedic Group, Inc. engages in the ownership and operation of orthotic and prosthetic (O&P) patient care centers in the United States. The company provides orthotic and prosthetic patient care services. Its orthotics business include the design, fabrication, fitting, and maintenance of a range of standard and custom-made braces and other devices that provide external support to patients suffering from musculoskeletal disorders, such as ailments of the back, extremities or joints, and injuries from sports or other activities. The company?s prosthetics business comprise designing, fabricating, fitting, and maintaining custom-made artificial limbs for patients, who are without limbs as a result of traumatic injuries, vascular diseases, diabetes, cancer, or congenital disorders. It also distributes branded and private label O&P devices, as well as develops programs to manage various aspects of O&P patient care for insurance companies. In addition, the company manufac tures and distributes therapeutic footwear for diabetic patients in the podiatric market, as well as develops and provides specialized rehabilitation technologies and integrated clinical programs to rehabilitation providers. As of June 30, 2011, it operated approximately 675 patient-care centers in 45 states and the District of Columbia. The company, formerly known as Sequel Corporation, was founded in 1861 and is headquartered in Austin, Texas.

Hot Medical Companies To Watch In Right Now: Algeta ASA (ALGETA)

Algeta ASA is a Norway-based biotechnology company engaged in the development of targeted cancer therapies based on its alpha-pharmaceutical platform. The Company�� principal product is Alpharadin for the treatment of bone metastases resulting from castration-resistant prostate cancer. The Company�� pipeline also includes Alpharadin for the treatment of bone metastases resulting from breast cancer, a combination of Alpharadin with Taxotere for the treatment of bone metastases resulting from prostate cancer and Thorium-227 showing various cancer indications. The Company develops Alpharadin in a development and marketing cooperation with Bayer Schering Pharma. Algeta ASA is active through the two wholly owned subsidiaries, Algeta Innovations AS and Algeta UK Limited. On April 12, 2012, the Company announced that it estabilished a subsidiary active in the United States, Algeta US.

Google Exec Flees to China Phone Maker Xiaomi

Little-known Chinese smartphone maker Xiaomi has just scored a major coup. The sixth largest smartphone maker has just announced that it has hired Google Inc. (NASDAQ: GOOG) Android vice president Hugo Barra to be its vice-president of Xiaomi Global. Until today, Xiaomi did not have a global division.

We noted last Friday that Xiaomi's sales in China topped those of Apple Inc. (NASDAQ: AAPL) and that the privately held company's market cap surpassed that of BlackBerry Ltd. (NASDAQ: BBRY). The company sells Android-based phones for as little as $80 in China, and if it succeeds in its international aspirations, Xiaomi could threaten the Apple-Samsung hegemony in the global market.

There isn't an industry analyst breathing who does not believe that the low-end smartphone market is going to experience explosive growth going forward while high-end phone makers' growth will slow down. Even in developed markets a low-cost smartphone will find plenty of takers as consumers come to view smartphones as commodity items in much the same fashion as PCs and laptops.

A Chinese research firm noted earlier in August that Xiaomi's Mi 2S smartphone was the most popular phone in China, selling more units than Samsung's Galaxy 4. The Mi 2S sells for less than $300 compared with a list price of around $600 for the Galaxy 4.

While it is too early to declare that there is a new sheriff in town, Xiaomi has made a lot of the right moves so far, and its hiring of the Google executive responsible for Android is certainly another one.

'Mr. BRIC' to emerging markets: Stop "bitching and moaning"

Jim O'Neill is also known as 'Mr. BRIC' after predicting in 2001 that Brazil, Russia, India and China would be global economic powerhouses.

LONDON (CNNMoney)

Economics guru Jim O'Neill -- who coined the popular "BRIC" acronym -- said officials in emerging markets should quit "bitching and moaning" and start taking more responsibility for themselves.

O'Neill, a former chairman at Goldman Sachs (GS, Fortune 500) Asset Management, rose to fame after proclaiming in 2001 that Brazil, Russia, India and China were emerging investment magnets that would drive global markets for a decade. The financial crisis notwithstanding, he was broadly correct.

But now, some emerging markets are struggling as they contend with plunging currencies, rattled stock markets, increasing borrowing costs and the threat of slower economic growth. Their current woes are being blamed on the U.S. Federal Reserve, which is planning to cut back on stimulus measures that had been flooding global markets with cash. With talk of the stimulus being scaled back, the money is drying up.

O'Neill is taking a tough love approach with the BRICs.

"I don't think it's really right for them to just constantly blame the Fed," O'Neill told CNN, as emerging market leaders this week called on developed economies to be careful about how they scale back their stimulus programs. "It's up to them to grow the role of their own currencies, and to take more responsibility within the G20 rather than just bitching and moaning about the Fed all the time."

O'Neill said the BRICs should collaborate more effectively in order to take control of their currencies, economies and monetary policies.

"If they want to have some kind of influence, they need to start doing sensible things together," he said. "One thing they could do is ... actually agree to coordinate their own monetary and exchange rate policies when they need to. I think it's a smart thing to do."

That could involve intervening in currency markets if necessary.

"If I were a foreign exchange trader trying to short the Indian rupee -- and I knew there was the chance the Chinese might buy rupees the following day -- I might think twice," he said.

On Thursday, the original BRICs -- Brazil, Russia, India, China -- plus newcomer South Africa pledged to create a $100 billion fund designed to provide member countries with an emergency cushion of cash during times of crisis.

O'Neill called the fund an "encouraging, interesting development."

 

Coke finally flows into Myanmar

But not all emerging markets are struggling. The economies that rely heavily on foreign capital, including India, Indonesia, Turkey and Brazil, have suffered the worst.

China, the largest emerging market by far, is protected by its huge foreign currency reserves and current account surplus.

There's Only One Thing About Syria That Matters to Americans

Let's talk about Syria and how what's happening there is affecting the markets.

I see oil rising to two-year highs. I see gold rising to three-month highs. Let's see, what else is being affected? Oh, that would be nothing.

And today we find out that, with a touch of some levers somewhere, U.S. GDP growth wasn't really 1.7% in the second quarter, it was really 2.5%.

Let's talk about the GDP growth revision and how that's affecting the markets.

I see oil coming off its Syria-inspired spike and gold giving up some recent gains. Let's see, what else is being affected? Oh, that would be nothing. Well, maybe bonds just a bit.

Let's talk about the U.S. government - the government of the most powerful nation on earth - and how its incompetence and interference and manipulation are affecting the markets.

Right this way...

I've seen bonds rise and yields collapse, and now some backing-up on both fronts. I've seen stocks rise because bonds rose and interest rates collapsed. I've seen the headline unemployment number fall because a lot of people are being hired part-time and a heck of a lot more people have given up looking for careers, jobs, or hamburger-flipping gigs.

I've seen a lot of banks pay a lot of money... where does all that money go, anyway?... in fines levied for civil "crimes" they never say they are guilty of, because it's a pay-to-play game and the House is always collecting from the suckers in the grand casino.

What does it all mean? It means that manipulation is a zero-sum game. Stuff is taken from some people and given to others. It doesn't have to be that way. If only the free markets were allowed to be free, one plus one wouldn't equal one, it would equal two or three or...

Let's talk about Syria, or Iraq, for that matter, or Iran, or Saudi Arabia, heck, let's talk about all of them and how they're affecting markets.

They're only affecting markets and the rest of the world because they are in the Middle East. But the Middle East would be neither here nor there, just some place in the middle, if it wasn't for oil.

The conflicts in the Middle East are mostly based on religion, mostly the same religion. Most of the conflicts are about how to follow Islam, which from Arabic translates to "submission." Al Qaeda, which translated means "The Way," is a movement by a bunch of radical Islamists to force their version of Islam, their meaning of submission, on everybody else's version of Islam. And when Westerners took sides with the governments of the other Islamists who controlled their people, which most Westerners don't care about as long as the oil is flowing, The Way became a war against Westerners.

But here's the thing. If the United States was self-sufficient in oil and energy production, which it always could have been, the Middle East would be some place in the middle of that giant continent and only important because we have an ally smack dab on the precipice of the Middle East. But I'm not going there.

The U.S. government likes to meddle in other people's business when our supposed business interests are at stake. But those interests are increasingly the interests of the oil companies and the war machinery that's the business of defense contractors.

So, while markets aren't doing a whole lot, just waiting in limbo to see if the U.S. fires some Tomahawks or cruise missiles at some safe-houses or storage dumps or runways, we might want to ask our government what they are going to do in Syria after they pockmark it.

Are they going to do there what they did in Afghanistan after they armed the Mujahideen with Stinger missiles to oust the Soviets and then abandon them to the Taliban and their rivals promising The Way? Are they going to do what they did in Iraq and hold back the forces of civil war long enough to claim victory over the evil Saddam Hussein, whom the U.S. backed when they wanted Saddam to fight a border war with Iran for 20 years and watch a million men die? Or are they going to do what they did to Egypt and support a Hosni Mubarak with aircraft and money and then abandon him when a popular and democratically elected Muslim Brotherhood regime worked its way into power, only to stand by and watch the military claw back the reins over their people?

The markets want to know. They're waiting to see how this will affect oil and gold and stocks and the perpetuation of interference and war and wasted American lives.

Let Syria be. There's no proof that Assad used chemical weapons any more than there was proof Saddam had WMDs. There's evidence that someone used chemical weapons, but it could have been the opposition. Or some interested party who will benefit by regime change could have unloaded the chemicals. Think about it, have we seen any pictures of opposition combatants dead and dying from the supposed chemical attacks? If Assad used them, why would he use them on civilian non-combatants, the women and children we see on our T.V. sets? All I'm saying is, why are we rushing into a situation we can't control any more than we could control Afghanistan, or Pakistan, or Iraq, or Iran?

That brings me to managing GDP growth. By the same hand that purports to know how to resolve religious and civil conflicts halfway around the world, are we to believe that hand can successfully manage the free will and entrepreneurship of the American people?

I hate bad government, and that's what we've got, a bad government. This government can't manage the economy any more than it can manage strife in the Middle East. It ceded economic control to the Fed, which it hides behind when things go wrong. This government interferes to make our economy constipated and 1,000 times worse when it should be on a self-correcting path.

I'm sick and tired of America's natural potential being sold up the river by our government to banks and oil companies and warmongers for their profit and patronage.

We have to free ourselves of this bad government, which acts like a Venus flytrap.

We have to free our free markets and let the forces of creative destruction clear out unproductive and insolvent institutions, like the big banks that keep getting propped up time and time again, even after they bring the nation to its knees with their fraudulent schemes.

We have to free ourselves of the oligarchs that make the economy a zero-sum game by taking from the population what is hard earned by hardworking people.

That's what's affecting the markets...

Shah

Thursday Closing Bell: Markets Close Up After Jobless, GDP Data

August 29, 2013: U.S. markets opened lower Thursday morning on a better than expected report on new jobless benefits claims and a higher-than-expected second reading on second quarter GDP growth. Traders must be getting a jump on the long weekend because trading volume has been very light today. Today's report on natural gas inventories pushed prices up about 0.7% by the end of the day.

European, Asian, and Latin American markets all closed mostly higher today.

Friday's calendar includes a speech by St. Louis Fed President James Bullard plus the following data releases and events:

8:30 a.m. – Personal income and outlays 9:00 a.m. – Chicago PMI 9:55 a.m. – Thomson Reuters/University of Michigan consumer sentiment 3:00 p.m. – Farm prices

We also posted a story on our market winners for the long Labor Day weekend.

Here are the closing bell levels for Thursday:

S&P500 1,638.16 (+3.20; +0.20%) DJIA 14,840.87 (+16.36; +0.11%) NASDAQ 3,620.30 (+26.95; +75%) 10YR TNOTE 2.762% (+0.0625%) Gold $1,412.90 (-5.90; -0.4%) Euro/Dollar: 1.3243 (-0.0096; -0.72%)

Big earnings movers: Campbell Soup Co. (NYSE: CPB) is down 3.2% at $43.30. Corinthian Colleges Inc. (NASDAQ: COCO) is down 10.3% at $2.34. JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is down 6.9% at $7.40.

Stocks on the move: Vodafone Group PLC (NASDAQ: VOD) is up 8.1% at $31.80 on reports of discussions with Verizon Communications Inc. (NYSE: VZ) that would result in the sale of Vodafone's 45% stake in Verizon Wireless to the controlling shareholder. Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) is up 10.8% at $1.54 after Wednesday's launch of its online casino games that will soon be available to state residents to play for real money.

In all, 26 stocks put up new 52-week highs today, while 30 stocks posted new lows.

Can GlaxoSmithKline Get Past This Hiccup and Head Higher?

With shares of GlaxoSmithKline (NYSE:GSK) trading around $51, is the stock 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

GlaxoSmithKline is global health care group engaged in the creation and discovery, development, manufacture, and marketing of pharmaceutical products, including vaccines, over-the-counter medicines, and health-related consumer products. GlaxoSmithKline's principal pharmaceutical products include medicines in these areas: respiratory, antivirals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines, and HIV. The company operates in three primary areas of business: pharmaceuticals, vaccines, and consumer health care. Through its areas of business, GlaxoSmithKline is able to positively affect the lives of many consumers around the world that require their medications.

T = Technicals on the Stock Chart are Mixed

GlaxoSmithKline stock has been coasting higher over the past several years. The stock is now pulling back a bit after breaking higher earlier this year. 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, GlaxoSmithKline is trading between its key averages, which signals neutral price action in the near term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
GlaxoSmithKline Options	19.21%	30%	27%

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

	Put IV Skew	Call IV Skew
July Options	Flat	Average
August Options	Flat	Average

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

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 GlaxoSmithKline’s stock. What do the last four quarterly earnings and year-over-year revenue growth figures for GlaxoSmithKline look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-28.21%	-26.92%	-15.12%	12.86%
Revenue Growth (Y-O-Y)	-7.20%	-1.91%	-6.99%	-6.76%
Earnings Reaction	0.01%	0.73%	-0.99%	-1.21%

GlaxoSmithKline has seen decreasing earnings and revenue figures over the past four quarters. From these numbers, the markets have had mixed feelings about GlaxoSmithKline’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has GlaxoSmithKline stock done relative to its peers, Merck (NYSE:MRK), Novartis (NYSE:NVS), Pfizer (NYSE:PFE), and sector?

	GlaxoSmithKline	Merck	Novartis	Pfizer	Sector
Year-to-Date Return	18.29%	16.29%	12.26%	12.36%	14.81%

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

Conclusion

GlaxoSmithKline is involved in the discovery and development of pharmaceutical drugs that tackle many known health care problems. The stock has been steadily trading higher but is now pulling back a bit as gains are being digested. Over the past four quarters, investors in the company have had mixed feelings about earnings announcements since earnings and revenue figures have declined. Relative to its peers and sector, GlaxoSmithKline has been a year-to-date performance leader. WAIT AND SEE what GlaxoSmithKline does in coming quarters.

Ibovespa Approaches Bull Market as Commodity Producers Rally

The Ibovespa approached a bull market as a plunge in the currency and signs of an economic rebound in China, Brazil's biggest export market, fueled a rally in commodity exporters including Vale SA and Gerdau SA.

The gauge touched 54,112.60 in Sao Paulo trading, rising 20 percent from its July 3 low of 45,044.03. Vale, the heaviest-weighted stock on the benchmark, climbed 25 percent during the period. Eike Batista's OGX Petroleo & Gas Participacoes SA and state-run oil producer Petroleo Brasileiro SA also were among the biggest contributors to the index's gain.

The real has dropped 7.1 percent in the past three months, the most among 16 major currencies tracked by Bloomberg, lifting exporters as it drives up the local-currency receipts on their overseas sales. The Standard & Poor's GSCI index of 24 raw materials has increased 5.5 percent in the same period as manufacturing strengthened and imports increased in China.

"Lately we've seen China starting to stabilize, which helps to inject a little positive sentiment back into the Brazilian market," Sean Lynch, the Omaha, Nebraska-based global investment strategist for Wells Fargo Private Bank, said in a phone interview. His firm oversees about $170 billion.

The Ibovespa (IBOV) led gains among the world's 20 biggest equity benchmarks today, rising 2.6 percent to 53,702.95 at 2:33 p.m. local time with 49 of the 73 member stocks trading higher.

Brazil's main stock index is the first among the biggest emerging markets to approach a bull market this year. Russia's Micex (INDEXCF) entered a bull market Sept. 14, 2012, and has since lost 7.3 percent. India's Sensex (SENSEX) is down 0.8 percent this year after entering a bull market in 2012. China's Shanghai Composite (SHCOMP) entered a bear market June 25 and has since gained 9.2 percent.

Slowing Inflation

Seven of nine raw-material companies on the Ibovespa reported earnings that exceeded forecasts for the three months ended in June, according to data compiled by Bloomberg. It was the first time that a majority of them beat estimates since the second quarter of last year.

Signs that inflation is slowing have also helped to lure investors to Brazilian equities, Lynch said. Data today from the Rio de Janeiro-based national statistics agency showed that consumer prices as measured by the IPCA increased 6.09 percent in August from a year before after rising 6.27 percent in July.

OGX, Ibovespa's third-heaviest weighted stock, rose the most on the benchmark today, climbing 22 percent to 50 centavos after calling Batista to buy $100 million of new shares and saying it may request additional disbursals on a $1 billion put option based on cash needs. The shares have climbed 28 percent since the Ibovespa's bear market low, reducing this year's slump to 88 percent.

Ibovespa Change

OGX's turmoil and its influence over the Ibovespa's performance spurred BM&FBovespa SA to consider changing the benchmark's methodology and exclude any companies whose shares trade for less than 1 real. While Batista's oil producer is among the five smallest companies on the Ibovespa, it remains as one of the heaviest-weighted stocks on the index, since trading volume is one of the main criteria to rank the measure's members.

The Ibovespa entered a bull market in January as optimism about the economic outlook for Brazil pushed consumer stocks higher, and sank back into a bear market in June as growth disappointed and inflation topped the upper limit of the government's target.

Rossi Residencial SA (RSID3) climbed 2.1 percent today to 2.98 reais, leading homebuilders higher, as traders pared bets for higher borrowing costs in Brazil following the inflation report. The BM&FBovespa Real Estate Index added 0.5 percent.

Brazil Growth

The Ibovespa, which is still down 12 percent this year, may continue to rise as signs that economic expansion is accelerating in Brazil add momentum to the advance spurred by growth elsewhere in the world, said Luis Gustavo Pereira, the head strategist at Futura Corretora brokerage.

"The external outlook has been the main driver behind the Ibovespa gains in the past months, but economic data in Brazil have also been better," Pereira said in a phone interview from Sao Paulo.

Gross domestic product increased 1.5 percent in the second quarter from the previous three-month period, the national statistics agency said on Aug. 30. Economists surveyed by Bloomberg had forecast an expansion of 0.9 percent.

Best Performing Companies To Invest In Right Now

Period ended June 30, 2013: For the first half of 2013, the Matthews Japan Fund gained 21.19%, outperforming its benchmark, the MSCI Japan Index, which returned 16.64%. For the quarter ended June 30, the Fund returned 5.99% while its benchmark returned 4.42%.

The quarter was a roller coaster ride for Japan investors, marked by strong gains until mid-quarter followed by a sharp correction toward the latter half of the period. The quarter began with the Bank of Japan (BOJ) announcing a larger-than-expected quantitative easing measure that propelled Japan's equity markets to five-year highs. Overseas investors were the primary drivers of the rally, pouring roughly US$46 billion into Japanese equities during the quarter. The yen also weakened considerably against the dollar, breaking above 100 yen against the U.S. dollar mark for the first time since April 2009. This bull market turned rather abruptly after comments from the U.S. Federal Reserve regarding a possible exit from its quantitative easing measures that prompted widespread profit-taking activity. However, despite the sharp correction, the market managed to eke out a modest gain at the end of the second quarter as volatility gradually subsided.

Best Performing Companies To Invest In Right Now: tw telecom inc.(TWTC)

tw telecom inc. engages in the provision of managed network services in the United States. The company offers data networking, converged, Internet protocol based virtual private network (IP VPN), and Internet access services. The company?s data services include switched native local area network (NLAN), point-to-point elite NLAN, E-Line, extended NLAN, regional ethernet, and IP VPN and managed IP VPN services; and converged and integrated services. It also provides high capacity Internet service with bandwidth speeds ranging from 1.5 Mbps to 10 Gbps to access the Internet and other external networks; and managed services comprising enhanced management services, managed security services, collocation services, and distributed denial of service mitigation. In addition, the company offers network access services for voice, data, image, and video transmission, such as private line, special access, transport arrangements, and metropolitan and regional connectivity; and voice s ervices that provide customers with local and long distance calling capabilities consisting of access trunk, long distance, local toll, local telephone, business access line, and IP trunk services. Further, it offers intercarrier services, such as switched access and local traffic termination services. As of December 31, 2011, the company?s fiber network spanned approximately 27,000 route miles connecting to 15,438 buildings. Its customers include enterprise organizations in the distribution, health care, finance, service, and manufacturing industries; state, local, and federal government entities; system integrators; and communication service providers, such as incumbent local exchange carriers, competitive local exchange carriers, wireless communications, and cable companies. The company was formerly known as Time Warner Telecom Inc. and changed its name to tw telecom inc. in March 2008. tw telecom inc. was founded in 1993 and is headquartered in Littleton, Colorado.

Best Performing Companies To Invest In Right Now: Intl Samuel Exploration Corp (ISS.V)

International Samuel Exploration Corp. engages in the acquisition, exploration, and development of resource properties in Canada. It primarily explores for copper, gold, base metal, and diamond properties. The company holds a 50% interest in the Reed Lake base metal project located in Manitoba; and has an option to acquire a 100% interest in the 256 hectare Rasp copper-gold property located north of Thompson, Manitoba. Its property portfolio also includes the Niv property and the Omega property located in British Columbia. In addition, the company, through its joint venture agreement with Diamonds North Resources Ltd., holds an interest in the Ualliq diamond project in Nunavut. The company was formerly known as TranDirect Holdings Inc. The company is based in Vancouver, Canada.

Hot Low Price Stocks To Invest In Right Now: Alturas Minerals Corp (ALT.V)

Alturas Minerals Corp. engages in the exploration and development of mineral properties in Peru and Chile. The company�s principal properties include the Chapi Chapi-Utupara copper-gold project located in the Apurimac copper-gold belt in southern Peru; the Sombrero copper-gold project situated in south-central Peru; the Huajoto gold-silver-zinc-rare earths property located in central Peru; and the La Corina copper-gold project situated in La Corina district, Chile. Alturas Minerals Corp. is headquartered in Toronto, Canada.

Best Performing Companies To Invest In Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Goodwin]

  The shares closed at $88.19, down $1.1, or 1.23%, on the day. Its market capitalization is $77.08 billion. About the company: Siemens AG manufactures a wide range of industrial and consumer products. The Company builds locomotives, traffic control systems, automotive electronics, and engineers electrical power plants. Siemens also provides public and private communications networks, computers, building control systems, medical equipment, and electrical components. The Company operates worldwide.

Best Performing Companies To Invest In Right Now: Chl(CHL.MI)

CHL S.p.A. operates as an e-commerce company in Italy. It offers various computer, audio-video, photography, telephony products, software books, and fitness products. The company, through its subsidiary, FRAEL S.p.A., also engages in the assembly and sale of personal computers, and technological hardware and software components. CHL S.p.A. was founded in 1993 and is headquartered in Florence, Italy.

SEC Rewards Whistleblowers Who Halted Sham Hedge Fund

Showing further signs that the Securities and Exchange Commission’s whistleblower program is working, the SEC announced Friday that three whistleblowers have been awarded more than $25,000 combined for tips and information they provided to help the agency and Justice Department stop a sham hedge fund.

The $25,000 is the first installment of anticipated payments to the whistleblowers as additional assets are collected from the purported hedge fund manager, the SEC said. The whistleblowers are expected to ultimately receive a total of approximately $125,000.

The SEC issued an order earlier this summer rewarding each of the three whistleblowers with 5% of the money that the SEC ultimately collects from its enforcement action against Locust Offshore Management and its CEO, Andrey Hicks.

“In cases where there are related criminal proceedings in which money is collected by another regulator, a provision in the whistleblower rules allows whistleblowers to then additionally apply for an award based off the other regulator’s collections in what qualifies as a 'related action,’” the SEC said in a statement. The commission subsequently approved 5% payouts to each whistleblower for money collected in the related criminal action.

Hicks pleaded guilty on Dec. 12, to five counts of wire fraud and consented to the forfeiture of his interest in property previously seized by the Justice Department. He was sentenced to 40 months in prison.

Approximately $170,000 has been administratively forfeited in the criminal proceeding, money that is deemed collected for purposes of issuing whistleblower awards, the SEC says.

Therefore, the SEC says that the three whistleblowers will now receive $8,505 each. Additional payments can be made to these whistleblowers upon forfeiture of the additional assets that have been seized. The aggregate value of assets seized from Hicks is estimated to be approximately $845,000, and the whistleblowers are expected to ultimately receive 15% of this amount for a combined total of approximately $125,000.

Whistleblowers’ names are confidential under the SEC’s whistleblower program. The order states that two of the whistleblowers provided information that prompted the SEC to open an investigation and stop the scheme before more investors were harmed. The third whistleblower identified key witnesses and confirmed information the other two whistleblowers provided.

The SEC’s whistleblower program is authorized under the law to reward individuals who offer high-quality, original information that leads to an SEC enforcement action in which more than $1 million in sanctions is ordered.

More information about the whistleblower program and how to report a tip is available at http://www.sec.gov/whistleblower.

Confusing Overconfidence With Laziness

There's little doubt that the average investor would be better off buying passive exchange-traded funds than individual stocks. Studies have shown that most people trade stocks too frequently and, even more precariously, have an unfortunate knack for buying high and selling low.

At the same time, it's also clear that few investors would throw in the towel, so to speak, and admit this is true in their particular case. Are they lying? Not necessarily. Instead, they're just overconfident in their own abilities.

The origins of overconfidence
If you're a regular reader of The Motley Fool, then you've probably come across this idea before. In the middle of last month, my colleague Morgan Housel identified overconfidence as an investor's greatest enemy. "The average investor painfully lags an index fund [yet] thinks he's Warren Buffett," Morgan quipped.

There are multiple explanations for this belief. In the first case, the idea that past events seem orderly and predictable with the benefit of hindsight leads us to believe that future events can be confidently foretold as well. In the second case, overconfidence protects our egos from being bruised by the reality that many of us aren't, in fact, any good at picking stocks.

But scariest of all, most investors have no idea how they're doing in the first place. One analysis found that the average investor overestimates his or her returns by more than 11 percentage points per year. And an annual study by Franklin Templeton Investments has consistently found that, with the exception of 2012, more than half of the 1,000 investors surveyed each year didn't know whether the S&P 500 (SNPINDEX: ^GSPC  ) was up or down over the previous calendar year.

But while all of these explanations are insightful, there's at least one that's eluded recognition: laziness. As Daniel Kahneman discussed in Thinking, Fast and Slow: "[M]any people are overconfident, prone to place too much faith in their intuitions. They apparently find cognitive effort at least mildly unpleasant and avoid it as much as possible."

Laziness and stock-picking
Identifying stocks that will outperform the market is far from easy -- and this is assuming that it's even possible to do so in the first place. It takes conscious and consistent mental effort. And it's physically draining. "The evidence is persuasive," Kahneman writes, that "activities that impose high demands on [one's analytical thought process] require self-control, and the exertion of self-control is depleting and unpleasant."

The problem is that most people aren't professional investors. They have day jobs. They're doctors, lawyers, engineers, entrepreneurs, you name it. As a result, the demands of their professions consume their energy, leaving little for the strenuous type of security analysis recommended by the likes of Benjamin Graham.

It doesn't help, moreover, that most people are instinctively lazy. "[I]f there are several ways of achieving the same goal, people will eventually gravitate to the least demanding course of action," Kahneman observed. "Laziness is built deep into our nature."

But herein lies the catch. While most investors are either too drained or too lazy to perform proper stock analysis, very few are willing to admit it. To bridge the gap between these otherwise dissonant realities, in turn, they rely on artificially bolstered self-confidence.

According to the authors of Mistakes Were Made (but not by me), "people will bend over backward to reduce dissonance in a way that is favorable to them and their team. The specific ways vary, but our efforts at self-justification are all designed to serve our need to feel good about what we have done, what we believe, and who we are."

Investors' worst enemy: laziness
At the end of the day, there's nothing wrong with being a lazy investor. Life happens. You have plenty of other things to spend your energy on than calculating a specific company's free cash flow. Yet it's important to recognize this for what it is, and, critically, not to subconsciously compensate with overconfidence.

Plenty of investment products are specifically designed to reward lazy investors -- think passive exchange-traded funds such as the SPDR S&P 500 (NYSEMKT: SPY  ) or its higher-yielding counterpart, the SPDR S&P Dividend (NYSEMKT: SDY  ) . Alternatively, absent blind luck, few individual stocks will do the same.

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notability of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.