IPO Week in Review: 500.com, Vince Hot; LNG, Android, Diagnostics Not

Out of nine initial public offerings (IPOs) tentatively scheduled for the week ending November 22nd, five actually took place. Here's a look at how they performed on the first day of trading.

Liquefied natural gas (LNG) shipper, Navigator Holdings Ltd. (NASDAQ: NVGS) began trading on Thursday. The company sold 12 million shares at an IPO price of $19, the high end of its expected range of $17 to $19. The company also increase the number of shares on offer from 11.3 million. The shipping company raised about $156 million of which about $73 million will be used to pay for new ships and the rest is tabbed for general corporate purposes. Shares closed at $19.97 on Thursday and $20.06 on Friday.

Contemporary clothing maker Apparel Holding Corp. changed its name to Vince Holding Corp. (NYSE: VNCE) immediately before its Friday IPO on Friday. The company sold 10 million shares at $20 a share, above the expected range of $17 to $19. Vince Holding makes high-end apparel under several brand names that are sold in department stores like Bloomingdale's and Neiman Marcus. The stock opened at $29.50 and closed at $28.66, about 43% above the IPO price.

U.K.-based Oxford Immunotec Global PLC (NASDAQ: OXFD) offered 5.4 million shares at $12, below the expected range of $13 to $15 a share on Friday. The company is a commercial-stage diagnostic test firm. Shares began trading at $14 and closed the day at $15.88.

Sungy Mobile Ltd. (NASDAQ: GOMO) priced its IPO at $11.22, near the top of the $9.50-$11.50 range, and the stock opened for trading at $14.11. The China-based company offers a management tool for Android-based smartphones. Shares traded at a peak of around $16 before closing their first trading day at $13.35.

The week's biggest winner was 500.com Ltd. (NYSE: WBAI), another firm based in China, and this one is a service provider for online sports lotteries in the Middle Kingdom. The company priced about 5.8 million shares at $13, and the shares began trading at $20.68 and closed the day at $20.01.

According to The Wall Street Journal there are three secondary offerings on tap for next week, but no IPOs. The largest of these, Sprouts Farmers Markets Inc. (NASDAQ: SFM), was supposed to price on Thursday, but that was delayed until Monday likely due to the weak earnings report from The Fresh Market Inc. (NASDAQ: TFM) earlier last week. Sprouts is planning to sell 25.9 million shares. Shares closed at $37.86 on Friday, which would indicate a capital raise of around $975 million.

Coming Boomer Bust of Advisors and Clients Spotlighted at FSI Conference

“This is a business built by and for baby boomers, but that won’t last long.”

In his presentation to broker-dealer executives at the Financial Services Institute’s OneVoice conference in Washington, Mark Tibergien spoke those words midway through his speech, making explicit what was an underlying theme at the broker-dealer advocacy group’s annual conference.

In a conference that celebrated FSI’s “Decade of Success,” there was some looking back at where the independent broker-dealer business has come from, but there was much more focus on the future. Among the issues: where is the next generation of advisors to come from? Will IBDs’ business model allow for attracting and retaining younger advisors? Will regulatory and market pressures allow BD reps to serve younger clients who may not yet possess wealth? How can you build a business for future success when so many of your advisors and their clients are in or nearing — or should be planning — retirement?

Not new questions, and Tibergien for one has been warning the industry for years of a looming advisor shortage as the existing advisor force ages while boomers near or enter retirement. To be sure, some independent BDs have not only attempted to answer those questions for some time, with some succeeding in lowering the average age of their rep forces while others have embraced new forms of marketing communications to attract younger clients, such as social media.

With tongue only partly in cheek, Tibergien chided the BD executives for pursuing a strategy of “serving the dead and dying,” suggesting that if BDs are focusing on succession planning they should stop and focus instead on developing those reps who are growing their practices. That’s Pershing Advisor Solutions’ target clientele in the RIA space, but these are broker-dealers, right? Their reps are different from RIAs, but maybe not so much, Tibergien suggested in his speech.

So why aren’t younger people flocking to become advisors? After all, as Tibergien likes to say, it’s a business where you “profoundly impact the lives of other people. It’s financially rewarding. It’s intellectually stimulating.Throw in walks on the beach and it’s a pretty good personals ad.” Jokes aside, Tibergien said he had learned, partly from his own 25-year-old reverse mentor at Pershing, that younger people think advisors are too much like salespeople and that they associate everybody in financial services with the “worst excesses of Wall Street.”

To counteract that perception, Tibergien suggested an industrywide approach was necessary, including recruiting on campuses like the accounting and legal professions do. He also criticized the internecine sniping between “Wall Street”” and “Main Street” firms, between broker-dealers and RIAs, failing to recognize that “any time we jump in the puddle, mud will splash on everybody” in financial services. In a separate interview during OneVoice, Sanjiv Mirchandani, who runs Fidelity’s National Financial clearing arm, agreed that “this can’t be a business where only baby boomer advisors serve boomer clients,” then cited some broker-dealers that have had success, such as Cambridge Investment Research, whose president, Amy Webber, reported in another session that more than 18% of Cambridge’s reps are under 40. Cambridge has made a concerted effort to recruit and retain younger advisors—and to mold Cambridge’s service offerings to younger clients—partly through the efforts of its New Century Council, an advisory board at Cambridge at which under-40s comprise the majority.

Solving the next-generation problem of advisors and clients may well be one of those areas where larger BDs have an advantage. As one broker-dealer executive said in an interview: “To do that, you need scale.” Or, perhaps, an industrywide effort.

Gen Y Develops a Depression-Era Mentality

By Hal M. Bundrick

NEW YORK (MainStreet) Gen Y gets it. All this time, maligned Millennials have been taking it on the chin, stereotyped as "lazy" and "entitled" and the truth seems to be quite the opposite. A new UBS report flatly claims that young adults aged 21 to 36 are "the most fiscally conservative generation since the Great Depression."

The report says Millennials believe "saving" was the best financial advice they had received and the generation is largely skeptical about long-term investing and market chasing. UBS says this "Depression Era mentality" has molded young-adult investors into extremely conservative strategies, with an average portfolio comprised of 52% cash, compared to a 23% liquidity allocation for older investors.

Only 12% of Millennials said they would invest "found money" in the market, and just 28% see long-term investing as a pathway to success. Most are focused on meeting their goals, instead of a specific market return. "Millennials seem to be permanently-scarred by the 2008 financial crisis," says Emily Pachuta of UBS Wealth Management Americas. "They have a Depression Era mindset largely because they experienced market volatility and job security issues very early in their careers, or watched their parents experience them, and it has had a significant impact on their attitudes and behaviors." "Scarred" or simply wiser from experience? Perhaps the shift from a borrow-and-spend paradigm to a live-within-your-means mentality is the result of a maturing generation. The research shatters even more Gen Y stereotypes. A large majority of respondents said the road to success requires hard work (69%), saving and living frugally (45%), and a good education (37%). Millennials are defining financial freedom as the single most important factor of success (48%) and pin a specific number to that goal: a household income of $220,000. "Conventional wisdom has categorized Millennials as 'entitled' and 'lazy,' because they have more than their parents and grandparents did, but this study counters that hypothesis," says Pachuta. "Having witnessed both the technology boom and the collapse of global markets, it has made Millennials concerned, but resilient, and optimistic for the future. They're conservative, similar to the WWII generation coming out of the Great Depression, not resting on their laurels, but rather working hard for their wealth and success, making sacrifices, because they believe their goals are achievable." A majority of both Millennials (57%) and Gen X (56%) investors believe that they have already achieved financial stability, or will in the future. But most older generations (59% of Baby Boomers and 54% of Swing/WWII-era investors) believe their adult children need more help to succeed than they did at their age. --Written by Hal M. Bundrick for MainStreet

Not Every Office Lets Fans Fly Their Team Colors

NEW YORK (TheStreet) -- Football season is the perfect time for game-watching parties, tailgating and wearing your team colors with pride, but fans would be wise to leave heated rivalries -- and inappropriate team attire -- out of the office.

Although most employees know the difference between a friendly challenge and more spiteful competitiveness, the emotions of football season can heat things up, especially when coworkers are wearing team apparel with pride, says Lori Kleiman, human resource expert and founder of Lori Kleiman HR.

"If someone came into a Chicago office in a Green Bay Packers jersey they might get a comment or two, but hopefully everyone would laugh about it -- it all goes back to the culture of the organization," Kleiman says. "In offices where everyone is rooting for a different team, it comes down to having respect in the workplace."

At many offices nationwide, rivalries are taken in stride, and that's as it should be, says Taki Skouras, CEO of Alpharetta, Ga.-based cellphone accessory company Cellairis. "Our office is full of sports enthusiasts, so naturally the office becomes a little more intense during the fall," Skouras says. "We love it! Everyone wants to show pride for their favorite teams, and who could blame them? Our office is very tight knit, so everyone knows to take the jabs in stride. It allows for a fun, competitive atmosphere." It's true that fights in the workplace are rare, and seldom do they start over a sports rivalry or the team colors someone is wearing, Kleiman says. The bigger issue employers tend to worry about is lack of productivity. "Most HR directors don't mind their people wearing game-day apparel, but most of them are not cool with everyone standing around discussing the latest on their office pool or rehashing last week's game," she says. "In other words, if you want to wear your team colors to show support that's one thing, but if you want to spend three hours talking about every play, it's entirely another." Unfortunately, if managers and HR notice that "football Fridays" result in productivity taking a dive, the entire company is likely to lose the privilege. Also see: How to Handle the Fashion Offender in the Workplace>> "It only takes a couple of employees to take things to an extreme level, and then HR is forced to restrict the practice," she says. Of course, if employees are interfacing with clients, it's a whole different story, says Claire Bissot, a senior professional in human resources at consultant CBIZ, where she's human resources business development manager.

"Today, fans can range from fair-weather to those that 'bleed' their team colors," Bissot says. "Just like the involvement in certain associations and groups can help build immediate trust and rapport with a client, picking the wrong team can lead to distrust, aversion and lost business."

In today's workplace, Bissot says it is a dangerous game to try to determine the level of passion and commitment of a fan.

"Ultimately, it is simply not worth the risk. Employees should look for clues like any logos in a client's office or use general conversation about sports to find out more before ever bringing their team, or sports in general, into the picture."

On the flip side, John Greene, president of CSB Training and chief operating officer of Collaborative Consulting, says that once you know your clients well, supporting the right team -- or having a friendly rivalry -- could earn you a few football season brownie points. Also see: How to Keep the Work Party From Getting Too Crazy>> "I would never worry about offending a client by rooting for your own team," Greene says. "If the client is sports-oriented they will understand. In fact, I have seen it work in our favor by creating a fun and healthy rivalry when you're playing the client's team in a big game. It helps build relationships." Unfortunately, most team apparel isn't exactly professional. While it's possible to find items such as logo ties for men or jewelry and purses for women, largely fans gravitate to T-shirts, tank tops, flip-flops and other items that are a no-go for many workplaces no matter the occasion. "I would never recommend wearing anything more casual than the dress code, that's where you can definitely send a negative message," Greene says. "On this one, following the rules makes sense. While an occasional slip-up won't seriously hurt you, constantly ignoring the dress code will."

To show some spirit without being shown the door, Bissot says employees should get creative.

"By getting creative, anyone can use their apparel to support their team without the risk of offending someone, appearing unprofessional or causing a disruption," she says. "Coordinate a professional outfit that shows your pride by wearing your team colors -- like women adding an accent scarf or men coordinating with a team-colored tie -- but leave the jerseys and logoed apparel at home."

No matter who you're rooting for this fall, Kleiman says the most important thing is knowing company culture and what your managers expect. If you're new at a company and your employee handbook didn't address the topic adequately, hang back a few weeks and see what your co-workers and bosses wear.

"When considering whether or not to wear team apparel at work, employees should always remember to dress for the job they want, not the job they have," Bissot says.

This Awesome New Web Site Might Help Save Radio

NEW YORK (TheStreet) -- As I explained this past week at TheStreet, the broadcast radio guys remain in denial. By some crazy stretch of their deluded imaginations, they don't consider Pandora (P) (and, presumably, its Internet radio brethren) a threat.

That's nothing but pure poppycock.

However, contrary to what my writing on the space might lead you to believe, I, more than most, want broadcast radio to succeed. If it gets -- or even just puts a clue on loan -- it might have a fighting chance to coexist, even successfully, alongside Internet radio for a long time.

I want radio, as we knew it, to succeed because I grew up on it and in it. I love the medium. I worked in radio as a teenager. It was my first career before ditching it in the year 2000 for other, mostly greener pastures. That's part of the reason why, for me, it's sad to see the industry sit on its butt, responding to Internet radio with little more than a cheap knockoff like Clear Channel's iHeart Radio. iHeart Radio admits defeat at the hands of Pandora, Spotify and others as much as it promotes terrestrial radio itself. It effectively tells the user -- Here, you can access our stations, but you'll probably think they suck so you can create your own personalized station. One that, by the way, won't be as good as pure play Internet radio because we're reacting to what they have crafted, not forging our own righteous path. Anyhow, thanks to GIGAOM for writing about serial entrepreneur Michael Robertson's just-launched venture. It's, as described by GIGAOM, a "radio search engine" that "turns tens of thousands of radio stations into an easily searchable music jukebox." It helps you find what you're looking for, as one of its main functions, on actual broadcast radio. It doesn't succumb to the notion that Internet radio is just better. Even if that's not the message iHeart and others are trying to send, it is, for all intents and purposes, what they're saying. Here's how the interface looks, by default, from my perch in the Los Angeles area:

And here's how it looks when you search for something specific. In this case, I asked the Radio Search Engine to find "Fifteen" by Taylor Swift:

It's that simple. Search for a song or a program and the Radio Search Engine spits out all the places -- Internet and broadcast radio streaming online -- where you can find what you're looking for, along with recommendations for other things you might like. Simple, but brilliant. And clearly beyond the limited capacities of so many of the cats in broadcast radio who refuse to admit they're losing. It's even cooler for a radio geek like me, who spent the days and nights of his childhood struggling to sample stations from across the country. Streaming changed that. And this search engine takes things to an entirely new, dynamic and way more convenient level. You can play with the Radio Search Engine yourself HERE. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.

Stock quotes in this article: P 

Can Southwest Airlines Continue to Meet Its High Expectations?

With shares of Southwest Airlines (NYSE:LUV) trading around $21, is LUV 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

Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States. Consumers and companies across the nation are now looking to travel at an increasing rates, and since air travel is quicker and is becoming less expensive, it is becoming a common transportation method for many. As costs decrease and flights become more efficient, look for business and retail customers to fly at rising rates. Southwest Airlines stands to see soaring profits as consumers and businesses look to travel more than ever.

Southwest Airlines on Thursday reported its fourth-quarter and full-year 2013 results. Gary C. Kelly, president and CEO, said in a press release: “We are happy to report full year 2013 net income of $805 million, and fourth-quarter 2013 net income of $236 million, both excluding special items. We are extremely proud of these record results and the tremendous progress made on our strategic initiatives, which produced substantial returns and contributed significantly to our superb 2013 financial performance. Our full-year 2013 total operating revenues were a record $17.7 billion, and our cost performance was excellent. We generated strong free cash flow of $1 billion in 2013, allowing us to return $611 million to our shareholders, through share repurchases and dividend payments, and reduce debt and capital lease obligations by $313 million. Our pre-tax return on invested capital, excluding special items, for full-year 2013 was 13.1 percent, nearly double the prior year’s performance. I want to thank the outstanding people of Southwest and AirTran. They deserve all the credit for producing these strong results, which earned them a $228 million contribution to the profit-sharing plan for the year 2013, up 88.4 percent, or $107 million, compared to the prior year.”

T = Technicals on the Stock Chart Are Strong

Southwest Airlines stock has been exploding to the upside in the past couple of years. The stock is currently trading near highs for the year and looks poised to continue. 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, Southwest Airlines is trading above its rising key averages, which signals 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 Southwest Airlines options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Southwest Airlines options	26.96%	80%	78%

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
February Options	Flat	Average
March Options	Flat	Average

As of Thursday, there is 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 Southwest Airlines’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Southwest Airlines look like and more importantly, how did the markets like these numbers?

	2013 Q4	2013 Q3	2013 Q2	2013 Q1
Earnings Growth (Y-O-Y)	6.11%	161.54%	-19.85%	-17.97%
Revenue Growth (Y-O-Y)	1.45%	5.48%	0.86%	11.27%
Earnings Reaction	-3.63%*	3.71%	-0.14%	0%

*As of this writing.

Southwest Airlines has seen mixed earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been pleased with Southwest Airlines’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Southwest Airlines stock done relative to its peers, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL), JetBlue Airways (NASDAQ:JBLU), and sector?

	Southwest Airlines	Delta Air Lines	American Airlines	JetBlue Airways	Sector
Year-to-Date Return	11.31%	17.69%	23.45%	7.49%	15.98%

Southwest Airlines has been an average relative performer, year to date.

Conclusion

Southwest Airlines provides air travel services to consumers and companies across the nation. The company recently reported quarter four earnings that left investors pleased. The stock has been moving higher in recent years and is now trading near highs. Over the last four quarters, earnings have been mixed while revenues have been increasing. Relative to its peers and sector, Southwest Airlines has been an average year-to-date performer. Look for Southwest Airlines to continue to OUTPERFORM.

5 Health Care Stocks to Trade for Gains

BALTIMORE (Stockpickr) -- Health care stocks have been good for your portfolio's health in recent months -- and they're likely to stay that way as we dig deeper into 2014.

>>5 Stocks Set to Soar on Bullish Earnings

From a technical standpoint, the health care sector has been one of the best-performing collections of stocks since before the start of the summer, even besting the S&P 500's impressive rally in 2013. So with a somewhat lackluster New Year catching investors' attention in January, it makes sense to keep buying what works.

That doesn't mean it's smart to buy any health care names right now, but the stocks showing technical strength in this market should continue to stomp the big indices. Today, we'll take a closer technical look at five of them.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

>>5 Rocket Stocks for a Short Trading Week

Without further ado, let's take a look at five technical setups worth trading now.

GlaxoSmithKline

At first glance, it may seem like shares of GlaxoSmithKline (GSK) haven't done much in the last six months. In that time, GSK has climbed all of 5.12%, while the S&P has trudged nearly 9% higher. But while GSK has fallen short of the mark lately, that's only because it's been forming a long-term bullish price setup.

Now, with a breakout this week, we're looking at a good time to be a buyer in GlaxoSmithKline.

>>4 Big Stocks to Trade (or Not)

GSK spent most of those last six months forming an ascending triangle pattern, a bullish price setup formed by horizontal resistance above shares at $53 and uptrending support to the downside. Basically, as GSK bounced in between those two technically important price levels, it was getting squeezed closer and closer to a breakout above $53. That breakout got confirmed in yesterday's price session, which makes now a good time to be a buyer.

While relative strength had been trending lower for a while now, the breakout shook the RS line out of its slump. That bodes well for continued outperformance in GSK going forward. From a statistical standpoint, relative strength uptrends typically precede outperformance on a three- to 10-month time horizon.

Sirona Dental Systems

We're seeing the exact same setup in shares of dental equipment maker Sirona Dental Systems (SIRO) right now, but with two key differences: First, the SIRO pattern is even longer-term than the one in GSK, and second, it hasn't broken out yet.

>>5 Active Trades for a Quiet Month

The breakout level to watch in SIRO is $73; a move through that level is the signal that it's time to be a buyer in this mid-cap dental stock. The longer-term price setup in shares comes with equally longer-term upside implications when a breakout does happen in shares.

Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That $73 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

When the breakout happens, I'd recommend keeping a protective stop on the other side of the 200-day moving average.

Novartis




You don't have to be an expert technical analyst to figure out what's going on in shares of Novartis (NVS). This price setup is about as simple as it gets. Right now, Novartis is forming an uptrending channel, a bullish price setup that's formed by a pair of parallel support and resistance levels that NVS has been bouncing between all the way up. When it comes to price channels, up is good and down is bad -- it's as simple as that.

>>5 Stocks Ready to Break Out

So Novartis looks very good right now.

It pays to be disciplined when you buy NVS. Shares are currently in the middle of the channel, but the optimal time to buy comes as close to trendline support as possible; in short, you want to "buy the bounce." That may require some waiting, but it's worth it for the extra high probability trade.

Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring Novartis can actually still catch a bid along that line.

The Ensign Group

Small-cap skilled nursing and rehab facility operator The Ensign Group (ENSG) is another uptrending channel to watch this week -- but it's even more timely than Novartis, as it's testing a potential bounce off of trendling support right now. Just like with NVS, the signal to buy comes on the first white bar off of support. We could see that as early as tomorrow.

>>5 Stocks Under $10 Set to Soar

The 50-day moving average has been a stellar proxy for support all the way up in ENSG. That makes it a logical spot to keep a protective stop below. If that stop gets triggered, the uptrend will be broken, and you won't want to own shares anymore anyway.

ENSG is another name that's showing off a positive trend in relative strength right now. With the S&P in corrective mode this month, relative strength remains the single most important indicator you can have in your technical toolbox in 2014; just make sure you wait for the bounce in price (not relative strength) before clicking "buy."

Aetna

Last up is $26 billion health benefits company Aetna (AET). Aetna had been forming an inverse head and shoulders pattern for the last few months, and shares broke out above the neckline at $69 at the start of January. Even if you missed the breakout in AET, though, a throwback is giving traders a second chance at a low-risk entry in this stock.

A throwback happens when a stock moves back down to test newfound support at its former breakout level -- in this case at $69. And while throwbacks look ominous, they're actually constructive for stock prices because they re-verify the stock's ability to catch a bid at support. Now looks like a good time to build a position in AET -- just keep a tight stop.

Momentum, measured by 14-day RSI, adds some extra confidence to the buying opportunity in AET. Despite the retracement, RSI remains in a solid uptrend right now. The classic minimum measuring objective on Aetna's price pattern puts a target at $88.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Sin Stocks to Play Defense in 2014

>>Should You Invest in the Government's Favorite Stocks?

>>3 Stocks Under $10 in Breakout Territory

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

5 Stocks Under $10 Set to Soar

DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including Astex Pharmaceuticals (ASTX), which skyrocketed higher by 23.7%; Hanwha Solarone (HSOL), which soared higher by 16.3%; JA Solar (JASO), which ripped higher by 15.9%; and Amtech Systems (ASYS), which trended up by 15.6%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently spiked sharply higher was solar player ReneSola (SOL), which I highlighted in Aug. 22's "5 Stocks Under $10 Set to Soar" at around $4.30 per share. I mentioned in that piece that shares of SOL had been uptrending very strong for the last four months and change, soaring higher from its low of $1.25 to $4.85 a share. This stock had recently pulled back off that $4.85 high to $3.52 a share. Shares of SOL were just starting to bounce off that $3.52 low and were quickly moving within range of triggering a breakout trade above some near-term overhead resistance levels at $4.25 to $4.50 a share and then above its 52-week high at $4.85 a share.

Guess what happened? Shares of SOL stared to flirt with that breakout during the next few trading sessions after the stock hit $4.73 a share. Then on Aug. 30, shares of SOL cleared all of those key resistance levels with massive upside volume. As I write this, SOL has hit an intraday high of $5.90 a share, which represents a big gain of 35% since the stock was trading at $4.30 a share. That's a massive run in a very short timeframe for anyone who played this breakout setup. Shares of SOL could still easily hit $7 to $8 a share in the coming months, since the uptrend for the stock is still intact and volume flows remain bullish.

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to trade higher from current levels.

LDK Solar

One under-$10 name that's starting to move within range of triggering a near-term breakout trade is LDK Solar (LDK), a vertically integrated manufacturer of PV products for polysilicon, wafers, cells, modules, systems, power projects and solutions. This stock is off to a decent start in 2013, with shares up 13.1%.

If you take a look at the chart for LDK Solar, you'll notice that this stock has been trending range bound and consolidating for the last month and change, with shares moving between $1.42 on the downside and $2 a share on the upside. Shares of LDK have just started to trend back above its 50-day moving average at $1.55 a share with decent upside volume flows. That move is quickly pushing shares of LDK within range of triggering a near-term breakout trade above a key downtrend line that has acted as resistance for a few months.

Traders should now look for long-biased trades in LDK if it manages to break out above some near-term overhead resistance levels at $1.78 to $1.83 a share and then once it clears more resistance at $2 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.97 million shares. If that breakout triggers soon, then LDK will set up to re-test or possibly take out its next major overhead resistance levels at $2.17 to its 52-week high at $2.32 a share. Any high-volume move above $2.32 to $2.36 will then give LDK a chance to tag $3 to $3.50 a share.

Traders can look to buy LDK off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at its 200-day moving average of $1.46 or at $1.42 a share. One can also buy LDK off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Nordic American Tankers

Another shipping player that's starting to trend within range of triggering a near-term breakout trade is Nordic American Tankers (NAT), an international tanker company that owns approximately 20 modern double-hull Suezmax tankers, including four newbuilding vessels. This stock is off to a slow start in 2013, with shares off by 7.7%.

If you take a look at the chart for Nordic American Tankers, you'll notice that this stock has been downtrending badly for the last month and change, with shares dropping from its high of $10.31 to its recent low of $7.65 a share. During that downtrend, shares of NAT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NAT have just started to bounce higher off that $7.65 low and it's quickly moving within range of triggering a near-term breakout trade. This bounce could be signaling that the downside volatility for NAT is over at least in the near-term.

Market players should now look for long-biased trades in NAT if it manages to break out above its 50-day moving average at $8.50 and then once it takes out its 200-day moving average at $8.63 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 1.01 million shares. If that breakout triggers soon, then NAT will set up to re-test or possibly take out its next major overhead resistance levels at $9.89 to $10.31 a share.

Traders can look to buy NAT off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.65 a share. One can also buy NAT off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Merrimack Pharmaceuticals

One under-$10 biopharmaceuticals player that's just starting to trigger a breakout trade is Merrimack Pharmaceuticals (MACK), which focuses on discovering, developing and preparing to commercialize medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. This stock has been hit hard by the bears so far in 2013, with shares off by 38%.

If you take a look at the chart for Merrimack Pharmaceuticals, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging from its high of 7.09 to its recent low of $3.26 a share. During that move, shares of MACK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of MACK have just formed a double bottom chart pattern at $3.26 to $3.32 a share and it's now starting to break out above some near-term overhead resistance at $3.64 a share. This move could be signaling a trend change for MACK as the stock starts to move higher off oversold conditions.

Traders should now look for long-biased trades in MACK if it manages to break out above some near-term overhead resistance at $3.64 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.87 million shares. If that breakout triggers soon, then MACK will set up to re-test or possibly take out its next major overhead resistance level at its 50-day moving average of $4.75 a share. Any high-volume move above that level and above more resistance at $5.06 will then give MACK a chance to tag its 200-day moving average at $5.71 a share.

Traders can look to buy MACK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.32 or at $3.26 a share. One can also buy MACK off strength once it clears $3.64 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Forest Oil

Another under-$10 name in the energy space that's starting to move within range of triggering a big breakout trade is Forest Oil (FST), which is engaged in the acquisition, exploration, development, and production of natural gas and liquids in North America. This stock has been under selling pressure so far in 2013, with shares off by 16%.

If you take a look at the chart for Forest Oil, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low o $3.77 to its recent high of $5.73 a share. During that move, shares of FST have been consistently making higher lows and higher highs, which is bullish technical price action. This stock has now started to spike back above its 200-day moving average of $5.52 a share and it's quickly moving within range of triggering a big breakout trade.

Market players should now look for long-biased trades in FST if it manages to break out above some near-term overhead resistance at $5.73 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 3.77 million shares. If that breakout triggers soon, then FST will set up to re-test or possibly take out its next major overhead resistance levels at $6.52 to $7.40 a share.

Traders can look to buy FST off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $5.32 a share or below its 50-day at $5.01 a share. One can also buy FST off strength once it clears $5.73 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

L&L Energy

One final under-$10 coal player that looks ready to trigger a major breakout trade is L&L Energy (LLEN), which, through its subsidiaries, engages in the production, processing and sale of coal in the People's Republic of China. This stock is off to a hot start so far in 2013, with shares up 34%.

If you take a look at the chart for the L&L Energy, you'll notice that this stock has been downtrending badly for the last four months, with shares falling from its high of $4.94 a share to its recent low of $2.13 a share. During that downtrend, shares of LLEN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of LLEN have now started to rebound off that $2.13 low and it's quickly moving within range of triggering a major breakout trade. If this rebound holds, then it could mean the downside volatility for LLEN is over in the short-term.

Traders should now look for long-biased trades in LLEN if it manages to break out above its 200-day moving average at $2.59 to its 50-day moving average at $3.02 a share and then once it takes out more resistance at $3.10 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 646,402 shares. If that breakout triggers soon, then LLEN will set up to re-test or possibly take out its next major overhead resistance levels at $3.83 to $4 a share. Any high-volume move above those levels will then put its next major overhead resistance levels at $4.40 to its 52-week high at $4.94 a share into range for shares of LLEN.

Traders can look to buy LLEN off weakness to anticipate that breakout and simply use a stop that sits right that recent low of $2.13 a share. One can also buy LLEN off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Top 5 Stocks To Watch For 2014

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business development company TCP Capital (NASDAQ: TCPC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at TCP and see what CAPS investors are saying about the stock right now.

TCP facts

Market Cap

$344.1 million

Trailing-12-Month Revenue

$57.0 million

Management

Chairman / CEO Howard Levkowitz
President / COO Rajneesh Vig

Dividend Yield

8.8%

Top 5 Stocks To Watch For 2014: Coastal Constacts Inc (COA.TO)

Coastal Contacts Inc. operates as an online direct-to-consumer retailer of contact lenses, glasses, sunglasses, contact lens solutions, and vision care accessories in North America, Europe, and the Asia Pacific region. The company sells its products through proprietary Websites, including Coastal.com, ClearlyContacts.ca, ClearlyContacts.com.au, ClearlyContacts.co.nz, LensWay.se, LensWay.fi, LensWay.nl, LensWay.no, LensWay.co.uk, ContactSan.com, and LensWay.com.br, as well as through telephone and e-mail The company was founded in 2000 and is headquartered in Vancouver, Canada.

Top 5 Stocks To Watch For 2014: Woodward Inc.(WWD)

Woodward, Inc. designs, manufactures, and services energy control and optimization solutions for the aerospace and energy markets worldwide. Its Aerospace segment offers pumps, valves, fuel nozzles, metering units, cockpit controls, actuators, motors, and sensors for the management of fuel, air, combustion, and motion systems in commercial, business, and military aircraft, as well as weapons and defense systems. This segment also provides aftermarket repair, overhaul, and other services to commercial airlines, turbine original equipment manufacturer (OEM) repair facilities, military depots, third party repair shops, and end users. It sells its products to OEMs and tier-one prime contractors; and through aftermarket sales of components as provisioning spares or replacements. The company?s Energy segment designs, produces, and services systems and products for the management of fuel, air, fluids, gases, electricity, and motion. Its products include power converters, actuato rs, valves, pumps, injectors, solenoids, ignition systems, governors, electronics, and devices that measure, communicate, and protect low and medium voltage electrical distribution systems for use in industrial gas turbines, aero-derivative turbines, reciprocating engines, electrical grids, wind turbines, and compressors. This segment sells its products OEMs and tier-one prime contractors, through aftermarket sales or replacements; provides other related services to OEM customers, as well as directly to end users or distributors. Woodward, Inc was founded in 1870 and is headquartered in Fort Collins, Colorado.

Advisors' Opinion:

• [By Seth Jayson]

  Woodward (Nasdaq: WWD  ) reported earnings on April 22. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q2), Woodward missed estimates on revenues and beat slightly on earnings per share.

Top 10 Companies To Invest In 2014: AmTrust Financial Services Inc (AFSI.O)

Amtrust Financial Services, Inc., incorporated on November 7, 1990, is a holding company. The Company is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. The Company operates in four business segments: small commercial business, specialty program and personal lines reinsurance. The Company transacts business through 11 insurance company subsidiaries: Technology Insurance Company, Inc. (TIC), Rochdale Insurance Company (RIC), Wesco Insurance Company (WIC), Associated Industries Insurance Company, Inc. (AIIC), Milwaukee Casualty Insurance Company (MCIC), Security National Insurance Company (SNIC), AmTrust Insurance Company of Kansas, Inc. (AICK) and AmTrust Lloyd�� Insurance Company of Texas (ALIC). In January 2013, the Company acquired First Nonprofit Companies, Inc. In February 2013, the Company's subsidiary acquired Car Care Plan (Holdings) Limited (CCPH) from Ally Insurance Holdings, Inc.

Sma ll Commercial Business

Small Commercial Business segment provides workers��compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores, physicians and other professional offices, and commercial package and other property and casualty insurance products to small businesses. The Company is authorized to write its Small Commercial Business products in all 50 states. The Company distributes its policies through a network of over 8,100 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Commercial package products provide a range of insurance to small businesses, including commercial property, general liability, inland marine, automobile, workers��compensation, and umbrella coverage.

The Company maintains Small Commercial Business property and casualty claims operations in several of its domestic offices and the commercial package claims opera tion is separated into four processing units: casualty, pr! op! erty, cost-containment/recovery and a fast-track physical damage unit. As of December 31, 2012, its Small Commercial Business property and casualty claims were approximately 61% automobile and 13% property and inland marine with the remaining 26% involving general liability and umbrella losses.

Specialty Risk and Extended Warranty

The Company��Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods in the United States and Europe, and certain niche property, casualty and specialty liability risks in the United States and Europe, including general liability, employers��liability and professional and medical liability. specialty risk business primarily covers, such as legal expenses in the event of unsuccessful litigation; property damage for resid ential properties; home emergency repairs caused by incidents affecting systems, such as plumbing, wiring or central heating; latent defects that materialize on real property after building or completion; payment protection to insureds if they become unable to meet financial obligations under finance contracts; guaranteed asset protection (GAP) to cover the difference between an insurer�� settlement and the asset value in the event of a total loss, and general liability, employers��liability, public liability, negligence of advisors and liability of health care providers and medical facilities.

The Company's extended warranty business covers selected consumer and commercial goods and other risks, including personal computers; consumer electronics, such as televisions and home theater components; consumer appliances, such as refrigerators and washing machines; automobiles (excluding liability coverage); furniture, and heavy equipment. The Company also serve a s a third party administrator to provide claims handli! ng and! c! all cen! ter services to the consumer products and automotive industries in the United States and Canada. It underwrites the specialty risk coverage on a coverage plan-level basis, which involves substantial data collection and actuarial analysis, as well as analysis of applicable laws governing policy coverage language and exclusions.

Specialty Program

The Company�� Specialty Program segment provides workers��compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous group of small and middle market companies. The type of risk covered by this segment is similar to the type of risk in Small Commercial Business but also covers, to a small extent, certain higher risk businesses. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment primarily include industries, such as retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2012, the Company underwrote 77 programs through 44 independent wholesale and managing general agents. Workers��compensation insurance consists approximately 33% of this business during the year ended December 31, 2012.

Personal Lines Reinsurance

The Company�� Personal Lines Reinsurance Segment has a 20% participation in the Personal Lines Quota Share, by which it receive 10% of the net premiums of the personal lines business. The Personal Lines Quota Share provides that the reinsurers, severally, in accordance with their participation percentages, will receive 50% of the net premium of the GMACI Insurers and assume 50% of the related net losses.

Top 5 Stocks To Watch For 2014: Touchdown Capital Inc(TDW.V)

Touchdown Resources Inc., an exploration stage company, engages in acquiring, exploring, and developing mineral prospects in Canada. It primarily explores for molybdenum, gold, and base metals. The company holds interests in the Sphinx and Jodi properties consisting of 15,400 hectares located west of Kimberly, British Columbia; McFarlane Lake Property comprising 3 mineral claims that consist of 22 units covering 352 hectares located in Broder Township, Ontario; and the Caribou property comprising 15 mineral claims located in the Caribou Mining Division of British Columbia. It also holds options to acquire a 80% interest in the Argyle gold project located west of Kirkland Lake, northern Ontario; a 100% in the Whitney property located in the central portion of Whitney township; and a 100% interests in 4 mineral claims located in Porcupine Mining Division, Ontario. The company was formerly known as Touchdown Capital Inc. and changed its name to Touchdown Resources Inc. in Mar ch 2010. Touchdown Resources Inc. was incorporated in 2005 and is headquartered in Vancouver, Canada.

Top 5 Stocks To Watch For 2014: Fortress Minerals Corp. (FST.V)

Fortress Minerals Corp. operates as a mineral exploration company. It focuses on evaluating strategic alternatives in the natural resource sector. The company was formerly known as Fortress IT Corp. and changed its name to Fortress Minerals Corp. in June 2004. Fortress Minerals Corp. is headquartered in Vancouver, Canada.

Top 5 Blue Chip Companies To Own For 2014

Back on April 2nd, esteemed Seeking Alpha contributor Hawkinvest penned a piece wherein he posited there were five reasons why General Electric (GE) shares could have potentially significant downside risks from current levels. His reasons are as follows: 1) GE's relative underperformance over the past month or so 2) GE's decline during the financial crisis means it is not worthy of the "blue chip" moniker it covets 3) GE's dependence upon a booming global economy 4) GE's debt load 5) GE's payout ratio. Now, I won't go through his points in depth as you can read them for yourself but I've captured the essence of his arguments above. I intend to use this article to express my variant view on the author's theses and to counter them with bullish arguments.

Before I begin, I'd like to mention that I have a tremendous amount of respect for Hawkinvest and his work; I don't intend to be harsh or overly critical here, I just wanted to bring a differing viewpoint to the discussion.

Top 5 Blue Chip Companies To Own For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  IBM is a global technology company that provides essential products and services to companies and consumers worldwide. The company�announced plans to create a new unit dedicated to Watson. The stock has been struggling over the last couple of years and is currently trading sideways. Over the last four quarters, earnings have been rising while revenues have been declining, which has left investors optimistic about IBM�� earnings announcements. Relative to its peers and sector, IBM has been a relative year-to-date performance leader. WAIT AND SEE what IBM does this coming quarter.

• [By Daniel Sparks and Rex Moore]

  In the following video, Fool contributor Daniel Sparks explains to Motley Fool analyst Rex Moore that whether Apple is a buy ultimately depends on the strength of Apple's competitive advantage. There's no doubt the company is cheap; a look at valuations for Microsoft (NASDAQ: MSFT  ) , IBM (NYSE: IBM  ) , and Google (NASDAQ: GOOG  ) compared with Apple makes that obvious. Even so, is Apple doomed to increasing competition? Or has it carved out its own lasting niche?

• [By GuruFocus]

  International Business Machines Corp (IBM) Reached the 52-Week Low of $184.48

  The prices of International Business Machines Corp (IBM) shares have declined to close to the 52-week low of $184.48, which is 16.1% off the 52-week high of $215.9. International Business Machines Corp is owned by 32 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Eighteen reduced their positions.

Top 5 Blue Chip Companies To Own For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Claudia Assis]

  Shares of Chevron Corp. (CVX) �were also among the worst hit on Thursday, off 1.9%. The two other major oil and gas companies fared better, with shares of Exxon Mobil Corp. (XOM) �down 0.8% and shares of ConocoPhillips (COP) �off 1.1%.

Hot Safest Stocks To Watch Right Now: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Rupert Hargreaves]

  After a�record�first half, tobacco stocks are now starting to pull back as the high-yield sector of the market is sold-off. During the first six and a half months of the year, Altria (NYSE: MO  ) matched the S&P 500 with gains of 17.5%, while�Reynolds American (NYSE: RAI  ) �climbed 24% and Philip Morris International (NYSE: PM  ) �advanced�7.3%, all excluding dividends (the S&P 500 gained 18% over the same period). However, since the recent sell-off began, all three companies have wiped out most of their gains so far this year.��

• [By GuruFocus]

  Philip Morris International Inc. (PM) Reached the 52-Week Low of $83.79
  
  The prices of Philip Morris International Inc. (PM) shares have declined to close to the 52-week low of $83.79, which is 15.1% off the 52-week high of $96.73. Philip Morris International Inc. is owned by 31 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Nine reduced their positions.

Top 5 Blue Chip Companies To Own For 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Anders Bylund]

  Israel-based mapping service Waze found a new home in Mountain View, Ca. The rumor mill provided plenty of speculation around Waze, tapping both Apple (NASDAQ: AAPL  ) and Facebook (NASDAQ: FB  ) as potential buyers. For whatever reason, Apple didn't get a replacement for its Apple Maps debacle, and Facebook still doesn't have an in-house mapping service of any kind. So off to Google (NASDAQ: GOOG  ) Waze goes.

Top 5 Blue Chip Companies To Own For 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By Dan Caplinger]

  Moreover, it's starting to appear that Clorox has weathered a tough part of its business cycle. Throughout the industry, Procter & Gamble (NYSE: PG  ) , Colgate-Palmolive (NYSE: CL  ) , and Clorox all had to deal with rising costs for the inputs they needed to make their respective products. The companies responded by implementing price-cutting measures and passing on part of their higher costs to their customers. For its part, Clorox was able to expand its gross margins by a full percentage point, with a worse-than-normal flu season contributing to sales. Now that input-cost inflation is easing, P&G and Clorox expect to see better profitability, with growth starting to approach the faster rates that Colgate has enjoyed.

Q2 Expectations Low, Guidance Key - Ahead of Wall Street

Tuesday, July 9, 2013

This is Mark Vickery, covering for Sheraz Mian while he records an early-morning interview.

Even though we've "unofficially" entered Q2 earnings season with Alcoa's (AA) top-line beat reported after the bell Monday, we're ramping-up to the busy time like an avenue in Chicago. Aside from earnings reports from Yum! Brands (YUM), JPMorgan (JPM) and Wells Fargo (WFC) in the latter half of the week, there is but a small handful of companies posting quarterly results otherwise.

Things pick up next week with many financials following JPMorgan and Wells Fargo this week. And because the financial industry is expected to be the biggest performer in Q2, we'll likely get a fairly articulate view of how the second quarter is coming along within the next two weeks or so… just not right now.

That said, expectations for Q2 are almost laughably low at the moment. With forecasts having come down drastically in the past three months from around 3.6% to 0.4% now, the question is not whether the quarter will outperform expectations -- at least, we all should certainly hope it won't be -- but by how much. The past two quarters, Q412 and Q113, posted actuals of 2+% -- a perfect definition of the "muddle-through" economy pretty much everyone agrees we're enduring. See here for the excellent synopsis by Zacks Director of Research Sheraz Mian:

Will Earnings Growth Bottom in Q2?

So with no particularly extreme headwinds over the past quarter, one might reasonably expect we will find ourselves back in the 2+% range once the dust settles on the quarter (and we can all go on vacation).

But even more interestingly, if you look at the graph in the link above, you'll see projected earnings literally skyrocket for Q3 and Q4 -- to 5.1% and 11.7%, respectively. And although these are year-over-year comparisons, they are anything but easy hurdles; the second half of 2012 was stronger than the first half, too. In fact, as Sheraz Mian points out, "[T]he level of t! otal earnings expected in 2013 Q3 and Q4 represent new all-time high quarterly records."

Clearly, this puts a premium not directly on Q2 earnings (they're going to be pretty crappy) but on company guidance for Q3 and the fiscal year. We might expect things to ratchet down from 11.7% earnings in the fourth quarter -- 11.7%! -- but unless the earth crumbles beneath the feet of about every industry, we can feel secure things will be looking up in the second half. Certainly we should not ignore particularly bad guidance from anyone in the next few weeks, but barring any major catastrophe we should be enjoying new record highs in the next couple+ quarters.

Mark Vickery
Senior Editor

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Top Companies To Watch In Right Now

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

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

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

Top Companies To Watch In Right Now: TigerLogic Corporation(TIGR)

TigerLogic Corporation engages in the design, development, sale, and support of software infrastructure, Internet search enhancement tools, and a social media content aggregation platform in North America, the United Kingdom, France, and Germany. The company offers Yolink, a search enhancement technology; and TigerLogic XDMS, an enterprise native XML database management server with data and document centric capabilities. It also provides multi-dimensional databases consisting of D3 data base management system that runs on various operating systems and allows application programmers to create new business solution software; mvEnterprise and mvBase, the multi-dimensional database solutions; and TigerLogic dashboard, which allows Pick UDM developers to create Web-based graphical displays of multi-value data. In addition, the company offers rapid application development tools that support the full life cycle of software application development and are used for rapid prototypin g, development, and deployment of graphical user interface client/server and Web applications. Further, it provides Postano, a real-time social media content aggregation platform, which allows users to collect content from various social media sources and display that content on Web pages hosted by the company or others. Additionally, the company offers technical support, consulting, continuing maintenance, customer support, professional, and training services. It serves independent software vendors and software developers, and corporate information technology departments. TigerLogic Corporation sells its products through OEMs, system integrators, specialized vertical application software developers, and consulting organizations, as well as directly to end user organizations and through its Web sites. The company was formerly known as Raining Data Corporation and changed its name to TigerLogic Corporation in April 2008. TigerLogic Corporation was founded in 1987 and is based in Irvine, California.

Top Companies To Watch In Right Now: Deswell Industries Inc.(DSWL)

Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.

Hot Financial Stocks To Watch For 2014: Emmis Communications Corporation (EMMS)

Emmis Communications Corporation, a diversified media company, engages in radio broadcasting and magazine publishing operations primarily in the United States. It also owns and operates national radio networks in Slovakia and Bulgaria. The company publishes various city and regional magazines, which include Texas Monthly, Los Angeles, Atlanta, Indianapolis Monthly, Cincinnati, Orange Coast, Country Sampler, and related magazines. In addition, it is involved in various businesses, such as Website design and development, digital sales consulting, and operating a news information radio network in Indiana. Further, the company leases its studio and office space. As of April 26, 2012, it owned 18 FM and 2 AM radio stations in New York, Los Angeles, St. Louis, Austin, Indianapolis, and Terre Haute. Emmis Communications Corporation was founded in 1981 and is based in Indianapolis, Indiana.

Advisors' Opinion:

• [By Laura Brodbeck]

  Thursday

  Earnings Expected From: Lindsay Corporation (NYSE: LNN), Emmis Communications Corporation (NASDAQ: EMMS), API Technologies Corp. (NASDAQ: ATNY) Economic Releases Expected: Australian unemployment rate, Japanese consumer confidence, French industrial output, Italian industrial output, Bank of England interest rate decision, US initial and continuing jobless claims

  Friday

• [By Monica Gerson]

  Emmis Communications (NASDAQ: EMMS) is expected to report its Q2 earnings.

  AngioDynamics (NASDAQ: ANGO) is projected to post its Q1 earnings at $0.03 per share on revenue of $82.54 million.

Top Companies To Watch In Right Now: Canberra Investment Corporation Ltd(CNB.AX)

CIC Australia Limited engages in the acquisition, subdivision, development, construction, and sale of real estate properties, primarily residential projects in Australia. It undertakes projects in Canberra, South Australia, the Northern Territory, Western Australia, and on the New South Wales south coast. The company was formerly known as Canberra Investment Corporation Limited and changed its name to CIC Australia Limited in February 2010. CIC Australia Limited was founded in 1986 and is headquartered in Canberra, Australia.

Top Companies To Watch In Right Now: Cinedigm Digital Cinema Corp(CIDM)

Cinedigm Digital Cinema Corp. provides technology solutions, financial advice and guidance, and software services to content owners and distributors, and movie exhibitors in the United States. The company engages in the ownership and licensing of digital systems to theatrical exhibitors; and provides monitoring, billing, collection, verification, and other management services to the company?s Phase I Deployment and Phase II Deployment, as well as to exhibitors, who purchase their own equipment. It also develops and licenses software to the theatrical distribution and exhibition industries; and provides applications service provider service, and software enhancements and consulting services. In addition, the company distributes movie features, trailers, and other alternative content to movie theaters and other venues with digital cinema equipment through satellite, hard drives, and broadband; and provides non-theatrical satellite based distribution of content into various out of home networks and other channels. Further, it provides content marketing and distribution services to alternative and theatrical content owners, and theatrical exhibitors, as well as offers in-theatre advertising services. The company was formerly known as Access Integrated Technologies, Inc. and changed its name to Cinedigm Digital Cinema Corp. in October 2009. Cinedigm Digital Cinema Corp. was founded in 2000 and is headquartered in Morristown, New Jersey.

Top Companies To Watch In Right Now: Extra Space Storage Inc (EXR)

Extra Space Storage, Inc. operates as a real estate investment trust (REIT) in the United States. It engages in property management and development activities that include acquiring, managing, developing, and selling, as well as the rental of self-storage facilities. As of December 31, 2006, Extra Space Storage owned interests in 567 properties located in 32 states and Washington, D.C., as well as managed 74 properties owned by franchisees or third parties. As a REIT, the company would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1977 and is based in Salt Lake City, Utah.

Advisors' Opinion:

• [By Rich Duprey]

  Real estate investment trust�Extra Space Storage (NYSE: EXR  ) announced yesterday its third-quarter dividend of $0.40 per share, the same rate it paid last quarter after raising the payout 60%, from $0.25 per share.

• [By Shauna O'Brien]

  On Tuesday, Goldman Sachs announced that it has removed Extra Space Storage, Inc. (EXR) from its Conviction Buy List.

  The firm has maintained a “Buy” rating on EXR, and has lowered the company’s price target from $51 to $50. This price target suggests a 12% upside from the stock’s current price of $43.94.

  Analyst Andrew Rosivach commented: “We think the stock is inexpensive on forward 2018E AFFO, but the higher 2014E multiple may require the stock to consolidate.”

  Extra Space Storage shares were down 21 cents, or 0.47%, during Tuesday morning trading. The stock is up 21% YTD.

Top Companies To Watch In Right Now: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Top Companies To Watch In Right Now: NCI Building Systems Inc. (NCS)

NCI Building Systems, Inc. engages in the manufacture and marketing of metal products primarily for the nonresidential construction industry in North America. The company�s Metal Coil Coating segment involved in cleaning, treating, and painting various flat rolled metal coil materials, as well as in slitting and/or embossing the metal, before the steel is fabricated for use by various construction and industrial users. It also cleans, treats, and coats hot-rolled and light gauge metal coils for third parties for various applications, such as construction products, heating and air conditioning systems, water heaters, lighting fixtures, ceiling grids, office furniture, appliances, and other products; and provides toll coating services and painted metal package. This segment serves manufacturers of engineered building systems and metal components, as well as steel mills, metal service centers, and painted coil distributors. NCI Building Systems, Inc.�s Metal Components segm ent designs, engineers, manufactures, and markets metal components, including metal roof and wall systems, metal partitions, metal trims, doors, and other related accessories for construction, repair and retrofit, architectural, and engineered building system applications. It sells metal components directly to regional manufacturers, contractors, subcontractors, distributors, lumberyards, co-operative buying groups, and other customers. This segment also manufactures roll-up doors; and sells interior and exterior walk doors for use in self storage industry, and metal and other buildings. The company�s Engineered Building Systems segment offers engineered building systems and self-storage building systems for commercial, industrial, agricultural, governmental, and community markets. This segment sells its products to builders, general contractors, developers, private label companies, and end users through an in-house sales force. The company was founded in 1984 and is headqu artered in Houston, Texas.

Advisors' Opinion:

• [By John Udovich]

  Small cap building materials stock NCI Building Systems Inc (NYSE: NCS) fell yesterday after announcing a share offering plus its investors have (so-far) missed out on any ��ecovery��in construction���meaning it might be time to take a closer look at the stock along with potential performance benchmarks like the PowerShares Dynamic Building & Construction ETF (NYSEARCA: PKB) and the First Trust ISE Global Engineering and Construction Index Fund ETF (NYSEARCA: FLM)���both of which have had decent returns in recent years.

Callable CDs: Check The Fine Print

If you're looking for bigger yields with limited risk, callable certificates of deposit (CD) might be right for you. They promise higher returns than regular CDs and are FDIC insured. However, you should be aware of a few things in the fine print before you turn your money over to the bank or brokerage firm. Otherwise, you could end up disappointed.

Just like a regular CD, a callable CD is a certificate of deposit that pays a fixed interest rate over its lifetime. The feature that differentiates a callable CD from a traditional CD is that the issuer owns a call option on the CD and can redeem, or "call," your CD from you for the full amount before it matures. In this article, we will provide you with some important terms to watch for in the fine print of your callable CDs should you decide to invest.

Important Terms
Callable CDs are similar in many ways to callable bonds.

Callable Date
This is the date on which the issuer can call your certificate of deposit. Let's say, for example, that the call date is six months. This means that six months after you buy the CD, the bank can decide whether it wants to take back your CD and return your money with interest. Every six months after the call date, the bank will have that same option again. We'll get to why the bank would want to call back the certificate shortly.

Maturity Date
The maturity date represents how long the issuer can keep your money. The farther the maturity date is in the future, the higher the interest rate you should expect to receive. Make sure you don't confuse maturity date with the call date. For instance, a two-year callable CD does not necessarily mature in two years. The "two years" refers to the time period you have before the bank can call the CD away from you. The actual amount of time you must commit your money could be much longer. It's common to find callable CDs with maturities in the range of 15 to 20 years.

To Call, or Not to Call
A change in prevailing interest rates is the main ! reason the bank or brokerage firm will recall your CD on the callable date. Basically, the bank will ask itself if it's getting the best deal possible based on the current interest rate environment.

Interest Rates Decline
If interest rates fall, the issuer might be able to borrow money for less than it's paying you. This means the bank will likely call back the CD and force you to find a new vehicle to invest your money in.

Example - Callable CD When Rates Decline Suppose you have a $10,000 one-year callable CD that pays 5% with a five-year maturity. As the one-year call date approaches, prevailing interest rates drop to 4%. The bank has therefore dropped its rates too, and is only paying 4% on its newly issued one-year callable CDs. "Why should I pay you 5%, when I can borrow the same $10,000 for 4%?" your banker is going to ask. "Here's your principal back plus any interest we owe you. Thank you very much for your business."

The good news is that you got a higher CD rate for one year. But what do you do with the $10,000 now? You've run into the problem of reinvestment risk.

Perhaps you were counting on the $500 per year interest ($10,000 x 5% = $500) to help pay for your annual vacation. Now you're stuck with just $400 ($10,000 x 4% = $400) if you buy another one-year callable CD. Your other choice is to try to find a place to put your money that pays 5% such as by purchasing a corporate bond - but that might involve more risk than you wanted for this $10,000.

Interest Rates Rise
If prevailing interest rates increase, your bank probably won't call your CD. Why would it? It would cost more to borrow elsewhere.

Example - Callable CD When Rates Rise Let's look at your $10,000 one-year callable CD again. It's paying you 5%. This time, assume that prevailing rates have jumped to 6% by the time the callable date hits. You'll continue to get your $500 per year, even though newly issued callable CDs earn more. But what if you'd like to get your money out and reinvest at the new, higher rates? "Sorry," your banker says. "Only we can decide if you'll get your money early."

Unlike the bank, you can't call the CD and get your principal back - at least not without penalties called early surrender charges. As a result, you're stuck with the lower rate. If rates continue to climb while you own the callable CD, the bank will probably keep your money until the CD matures.

What to Watch For
Who's Selling
Anyone can be a deposit broker to sell CDs. There are no licensing or certification requirements. This means you should always check with your state's securities regulator to see whether your broker or your broker's company has any history of complaints or fraud.

Early Withdrawal
If you want to get your money before the maturity date, there is a possibility you'll run into surrender charges. These fees cover the maintenance costs of the CD and are put in place to discourage you from trying to withdraw your money early. You won't always have to pay these fees; if you have held the certificate for a long enough time period, these fees will often be waived.

Check the Issuer
Each bank or thrift institution depositor is limited to $100,000 in FDIC insurance. There is a potential problem if your broker invests your CD money with an institution where you have other FDIC-insured accounts. If the total is more than $100,000, you run the risk of exceeding your FDIC coverage.

Wrap-up: Callable or Non-Callable?
With all of the extra hassle they involve, why would you bother to purchase a callable CD rather than a non-callable one? Ultimately, callable CDs shift the interest-rate risk to you, the investor. Because you're taking on this risk, you'll tend to receive a higher return than you'd find with a traditional CD with a similar maturity date.

Before you invest, you should compare the rates of the two products. Then, think about which direction you think interest rates are headed in the future. If you have concerns about reinvestment risk and prefer simplicity, callable CDs probably aren't for you.

Use this checklis! t when you are shopping for callable CDs to help you keep track of the important information.

Callable CD Checklist

	Traditional CD	Callable CD #1	Callable CD #2
Callable Date	N/A
Maturity Date
Seller Background
Surrender Fee
Issuer
Interest Rate

Baidu Beats on Revenue, Matches Expectations on EPS

Baidu (Nasdaq: BIDU  ) reported earnings on July 24. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share contracted slightly.

Margins contracted across the board.

Revenue details
Baidu tallied revenue of $1.23 billion. The 16 analysts polled by S&P Capital IQ hoped for a top line of $1.20 billion on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $858.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.22. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. GAAP EPS of $1.22 for Q2 were 1.6% lower than the prior-year quarter's $1.24 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 65.1%, much worse than the prior-year quarter. Operating margin was 38.4%, much worse than the prior-year quarter. Net margin was 35.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $1.35.

Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $4.96.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,765 members out of 5,368 rating the stock outperform, and 603 members rating it underperform. Among 1,131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,032 give Baidu a green thumbs-up, and 99 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baidu is hold, with an average price target of $106.19.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Baidu on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add Baidu to My Watchlist.