XOM – 3 Stocks That Will Profit From Deepwater Drilling

Carl Icahn – and investors – this week won a big battle with Transocean (RIG), the world leader in offshore and harsh environment drilling, when Transocean agreed to boost its dividend to $3 a share. Even more important, Transocean agreed to spin off an MLP in 2014 through an IPO, giving shareholders a double victory and another channel for income.

End of story, right? No, behind the news is a big takeaway for investors: there's a big boom coming in offshore drilling . The prospects are enormous for the entire group of deep-water drillers and service companies.

The investment opportunities abound but the clues are in the behind-the-scenes machinations in places like Brazil, Mexico and Russia.

Profits ahead

Offshore drilling has been slowed by nationalism and national incompetence in these countries, but political pressures are pushing these recalcitrant nations into working to boost offshore oil production. The combined opportunity, offshore, from Brazil, Mexico and Russia is more than 100 billion barrels of oil. That means big profits ahead for off-shore drillers.

Investors should take note of these key developments:

Brazil has just auctioned off extraction rights to a deep-water find off the coast  that could contain between 8 billion and 12 billion barrels of oil, making it the largest oil discovery in 40 years. Brazil granted permission to oil companies to begin the process of extracting oil and gas in very deep formations in a place called the Libra formation. It is going to be a very difficult place to drill. The water has a depth of 6,500 feet and the oil reservoir itself is another 5,000 feet below the ocean floor. Due to conditions set by the government, only four major oil companies, none based in the U.S., bid on the opportunity. It would be the largest field opened in the western hemisphere since a Mexican field opened 37 years ago. This auction should translate in the coming months and years into contracts for experienced off shore, deep-water drillers and, more importantly, put enormous pressure on rig construction and rig leasing prices. This can only be a great thing for the entire group deep-water drillers, the repository of the knowledge and experience required to access these fields. In Mexico, where oil production is nationalized, the Cantarell field is an aging oilfield off the coast of the Yucatan peninsula. Pemex, its owner, has seen output drop 80% over the decade due to lack of technical expertise to slow the decline, but that is about to change. Some 29 billion barrels of oil could now be recovered there using advanced offshore techniques for deep-water environments, according to Citi Research. The problem in getting to this oil, to date, has been the Mexican constitution, which bars giving up oil rights to non-Mexican companies. Legislation proposed by President Enrique Nieto, expected to pass in 2014, would open up drilling to foreign companies . This means great short-term prospects for companies such as RIG and Seadrill (SDRL); work on enhanced oil production offshore would probably begin immediately. Russia will supposedly begin production offshore in the Arctic later this year and Russian oil companies have signed with large majors such as ExxonMobil (XOM) and Eni of Italy to develop these fields, although this will take a decade or more. Given rapid declines in production in Siberian oil fields and Saudi Arabia passing Russia as the world's No. 2 oil producer, there are no political issues in Russia inhibiting exploitation of these offshore fields.

The question for investors is how soon, how much for the drillers?

Offshore drilling in harsh environments begins slowly — you have to drill in an exploratory fashion before you begin to drill in earnest. That requires some work by companies such as RIG and SDRL. The approval in Mexico next year of foreign company involvement in enhanced oil recovery in existing fields is one short-term opportunity. That said, even the early stages of exploration and enhanced oil recovery will put pressure on offshore rig prices — and that is the real benefit for investors.

Growing demand for deepwater rigs

Here is how it typically works. A field is discovered and there is a go-ahead to drill, first to find the best sites and then to begin real production. As this filters back to capital spending, companies build offshore rigs — leasing them out and procuring commitment before they commit capital. This puts pressure on available resources, including capital, this pressure makes itself felt in prices and lease rates for rigs. Margins and profits expand.

Please note that the discussion here is for ultra-deep water (Brazil), deep water (Mexico) and harsh environment (Russia) drilling.

For investors who want a piece of this developing trend, Transocean and Seadrill are two of the bigger players in this arena. Other offshore drillers/rig operators are Noble (NE) and Ensco (ESV). Companies that provide services to offshore drillers and benefit from increases in exploration and drilling activity are Gulfmark Offshore (GLF), Hornbeck (HOS), Seacor (CKH) and Tidewater (TDW).

 Article author Michael Shulman does not own shares in any of the companies mentioned in this article.

 

The 5 Dumbest Things on Wall Street This Week: JPM, LULU and more

5. Lulu's Lulu

Sorry or not Chip, you are still a blockhead.

Lululemon (LULU) founder Chip Wilson apologized last Friday for asinine remarks he made about women's bodies during a Bloomberg TV interview. We'd like to say "publicly" apologize, nevertheless, that does not seem to be the case as Wilson directed his groveling at his employees rather than his customers and, more importantly, the world's entire female population.

"I'm sad, I'm really sad, I'm sad for the repercussions of my actions, I'm sad for the people of Lululemon who I care so much about, that have really had to face the brunt of my actions," said Wilson in a video posted on YouTube. "For all of you that have made Lululemon what it is today, I ask you to stay in a conversation that is above the fray." "Above the fray"? Have you flipped Wilson? You created this cockeyed controversy when you told Trish Regan that your company's yoga pants "don't work" for some women's figures. And now your workers are being dragged deeper in and your stock -- down almost 10% this year -- deeper under because of your half-assed apology. Honestly Chip, have you already forgotten last March's recall of Lulu's overly sheer pants? That's right, the one that cost your company nearly $70 million in sales and likely led to the unexpected June departure of Lulu's former CEO Christine Day? Talk about sheer madness! The real "fray" Lululemon should be worried about, as opposed to this nonsense, is the fraying that's going on with its pants. Pilling complaints are piling up and its hurting sales. "It's really about the rubbing through the thighs, how much pressure is there over a period of time and how much they use it," said Wilson. No, it's really about a big-mouthed moron repeatedly rubbing people the wrong way.

4. More Reserve, Less Fed

Is it just us, or is everybody else starting to miss the relative quiet of Alan Greenspan's Federal Reserve?

No, we're not commenting on Greenspan's policies as the nation's top banker. Those who wish to praise his handling of America's money supply during his nearly two decade tenure, please feel free. And those clamoring to condemn his deregulatory propensities, be our guest as well.

Once again, how you feel about the "Maestro's" music -- economic and otherwise -- is entirely up to you. That said, it is getting harder and harder for us not to wax nostalgic about the days when the Fed's conductor didn't just set the tone, but kept his band members from unexpectedly popping off into dizzying solos. Sans metaphor, Greenspan may have babbled unintelligibly during his Congressional hearings, nevertheless, at least he kept his charges from doing the same to every media outlet in sight. Greenspan successor Ben Bernanke's push toward transparency is great and all, yet all this volatility sparked by every last Fed member's every last hiccup has reached unbearable levels. Case in point, Richard Fisher, the Dallas Fed President with his own mug on the set of Squawk Box, said Tuesday, "We've changed and impacted the markets because of our intervention and I understand there's sensitivity, but markets should also bear in mind that this program cannot go on forever." Here's an idea Richard, if you believe your actions are causing dangerous fluctuations in stocks, then stop talking. If you have something to say, then bring it up with your current boss Bernanke or his probable successor Janet Yellen. All your chattering is only forcing traders to increase their dependency on people like yourself. And Fisher's not the only regional Fed President churning stocks with each and every CNBC appearance. It's also James Bullard out in St. Louis and a few more who should probably be nameless, yet aren't. (Minneapolis Fed President Narayana Kocherlakota! Now there's a name we need not know.) Consider last Monday's headline on TheStreet: "Fed's Bullard Boosts Stocks." Let's be serious folks. The name "Bullard" should not be making waves in the stock market. Not even ripples. Buffett yes. Bullard no. Yeah, we know these Fed big-wigs have a right to speak when and wherever they want. Still, if Wall Street traders now care more about each Fed member's feelings than the latest batch of corporate earnings then it's time for these bureaucrat bankers to cut back on the rubber chicken circuit. Don't worry. We'll still hear their unbridled opinions when the Fed's minutes are released, so we'll know what's on their mind. It just won't be reflected in the VIX, aka the market's fear index, every day. One more point about shutting up before we do so ourselves. What brought the topic of Fed-speak (literally) to our very dumb minds was a Monday WSJ piece by Andrew Huszar, a Rutgers professor and former Wall Streeter, who self-professedly managed the Federal Reserve's multi-multi-billion dollar bond purchase program. Huszar kicks off his op-ed by saying, "I can only say: I'm sorry, America." He then goes on to apologize for his role in turning the Fed's "bond-buying experiment" known as quantitative easing into "the greatest backdoor Wall Street bailout of all time." Why this self-serving schmuck is apologizing to "America" then passing the buck (actually $1.25 trillion bucks) to Bernanke is beyond us. It's almost as ridiculous as Fisher or Bullard or one of the other puffed-up Fed-heads talking to "the market" as if he were Marc Antony talking to his friends, Romans and countrymen. How about this for your next soliloquy Huszar? "I come to bury Bernanke, not to praise him." Look. We can all rest assured that if Bernanke's bond-buying experiment doesn't work out then we'll get a rash of similar opinion pieces as every last person involved with the program scrambles for cover. Plausible deniability is the name of the game in Washington, just as profits are the modus operandi on Wall Street. In the meantime, we can all reminisce about the time when the only member of Greenspan's entourage that spoke publicly was his briefcase.

3. Farewell Fantex

We here at the Dumbest lab have seen IPOs postponed for all kinds of outlandish reasons, yet never due to a season-ending back surgery before.

Until now that is.

Fantex, which filed with the SEC last month to raise $10.6 million in an initial public offering, scrapped its plan to sell shares at $10 apiece Tuesday after Houston Texans running back Arian Foster revealed his back injuries were too great for him to return to the playing field. Foster pledged 20% of his total earnings to Fantex in exchange for a chunk of the IPO proceeds, making him the first ever professional athlete to go public. Foster is eligible to make as much as $23.5 million through the 2016 season on top of sponsorship deals with Under Armour (UA) and Kroger (KR). "We continue to support Arian and his brand, and we wish him well in his recovery," said Fantex CEO Buck French in a statement. "We will continue to work with him through his recovery and intend to continue with this offering at an appropriate time in the future based on an assessment of these events." Frankly French, we're sorry about Foster's injury derailing your IPO, but this whole scheme never did cut the mustard. As TheStreet's Antoine Gara pointed out in a column last month, investors were less buying into the now-sidelined Foster as opposed to the money-losing Fantex. "Holders of shares of Fantex Series Arian Foster will not have an ownership interest in our Arian Foster Brand, or any of our affiliated entities. Rather, investors in our Fantex Series Arian Foster will be our common stockholders," said the company in its S-1 filing. In other words, the idea that football fans would be investing in their favorite player based on his yardage potential was pure fantasy. The real scheme was to buy shares in a brokerage called Fantex that signs up players like Foster and 49ers tight end Vernon Davis and offers them liquidity. Davis, by the way, went down with a concussion in San Fran's loss last Sunday to the Carolina Panthers. He was Fantex's next big catch after Foster. Hopefully Davis recovers from his injury and is soon cleared to play. As for Fantex, well, anybody buying shares in that IPO if it ever comes back around ought to follow Vernon's lead and have his head examined.

2. J&J's Strange Journey

Somebody get us a Tylenol. Our brains are hurting from trying to figure out how Johnson & Johnson's (JNJ) stock keeps going up when the company keeps screwing up and paying up.

J&J, which sold $70.5 billion worth of products in the past year, will pay over $4 billion to resolve thousands of lawsuits over its recalled hip implants, according to a slew of media reports Wednesday. The settlement, which will be the largest ever for a U.S. medical device-maker and formally announced next week, will put to rest more than 7,500 lawsuits against J&J's DePuy unit. The company will reportedly pay an average of $300,000 to patients who claimed their hip implants were defective.

The $4 billion payout comes on top of the nearly $1 billion J&J has spent on medical costs and informing patients and surgeons about the recall. It is also the second multibillion-dollar agreement this month for Johnny John. The world's largest drug company announced last week that it will pay $2.2 billion to resolve criminal and civil probes into its marketing of the anti-psychotic drug Risperdal. Not that $6.2 billion worth of settlement dollars heading out the door is harming the stock too much. Shares of the company, up 32% so far this year, barely budged on Wednesday's news. Who knows why investors are acting so blase about all the billions J&J is ponying up for its bad behavior? Perhaps all the fines that have accrued during the past few years have rendered them dumb . . . sorry, we meant numb. This summer, for example, J&J paid $23 million to settle a class action lawsuit alleging it failed to disclose manufacturing violations, as in dirty plants, leading to the biggest recall of over-the-counter children's medicine in U.S. history. And back in 2011, J&J agreed to pay $70 million to settle claims that it bribed doctors in three European countries, and made kickbacks to Iraq to illegally obtain business under former leader Saddam Hussein. Here's an idea! Maybe the stock is reacting so well because all these problems occurred during the tenure of CEO William Weldon, who retired last year and was replaced in the corner office by Alex Gorsky in April 2012. Now that these issues are finally behind the Band-Aid-selling behemoth, stockholders can at long last look to the future with a sense of optimism. We just wonder if Weldon plans to return any of the $143.5 million in retirement pay he received considering all the money his company is being forced to give back. Actually, forget it. That's just going to give us an even bigger headache.

1. JP 'Moron' Chase

"Bad idea! Back to the drawing board."

No, those weren't our words describing what happened to JPMorgan Chase's (JPM) failed attempt at a public Twitter (TWTR) question-and-answer session. Spokesman Brian Marchiony emailed those statements out Wednesday after the event with bank executive Jimmy Lee, which was scheduled for Thursday afternoon, was cancelled due to a flood of insulting tweets.

To which we here at the Dumbest lab say: Thanks, Brian for doing our job for us! We may have been a bit harsher, yet you certainly captured our sentiment. That said, we still wonder why the seemingly intelligent people running America's biggest bank would even consider such a stupid move. How on God's green earth, or even his colorless Cyber-space, could somebody with a college degree, or even a kindergarten diploma, believe that opening up an event like this to the public would not end badly? Here are a smattering of the bountiful tweets belittling the bank, which is now negotiating a multi-billion dollar settlement with the government over its bad behavior during the mortgage bubble: "Between u & me...Name one area of the financial markets you are not manipulating." "Does Jimmy Lee really cheat at golf?" "How do you decide who to foreclose on? Darts or a computer program?" "What's your favorite type of whale?" "What's the best way to get blood stains out of a clown suit?" You get the idea. To which we say: Thanks also to all you tweeters out there for doing our job for us! -- Written by Gregg Greenberg in New York Follow @5gsonthestreet

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

The Planets Are Lining Up For Galena Biopharma (GALE)

It may look like little more than a choppy mess with just a quick glance at Galena Biopharma Inc. (NASDAQ:GALE). But, the more you study the chart - and the company - the more you realize there's enough long-term potential from the company's pipeline to keep spurring GALE in a generally-upward direction. In fact, the bulls look like they're on the verge of taking Galena Biopharma out of second gear and putting it into third. As such, it may not be a bad bet at this point.

Don't sweat it if you haven't heard of GALE - most people haven't. It's a $249 million biotech outfit that isn't actually driving any revenue yet (more on that in a moment). As veteran biotechnology traders can attest, however, that's hardly necessary. At the root of most speculative biotech gains are the mere promise of a new drug, and if there's one thing Galena Biopharma has plenty of in the pipeline, its promise.

One of the most compelling therapies in the works for Galena is NeuVax as a treatment for NP breast cancer. That trial is now in Phase 3, and represents the company's "next big hot button." NeuVax isn't just for breast cancer, though. GALE is also in Phase 2 trials with NeuVax plus Herceptin as a treatment for breast cancer, is in Phase 2 trials using the drug as a treatment for a different type of breast cancer, and the drug is even being tried as a therapy for prostate cancer; that trial is a Phase 1 test right now.

It can be a little unsettling for investors to know a company's nearly-entire pipeline is the same basic compound; if it doesn't work for one cancer, odds are good it won't work for others. Galena Biopharma Inc. isn't off-base with NeuVax, however. It's the real deal, and though it may not be approved for every indication it's being tested for, we've seen enough efficacy to offer hope for GALE investors. In the primary breast cancer trial, for instance, at 24 months, NeuVax patients were disease-free versus 86.8% of patients not taking the drug. At 60 months, 89.7% of NeuVax patients were disease-free versus 79.6% of patients in the control group.

Thing is, GALE isn't a "right here, right now" idea on the potential of NeuVax alone... there's a bit of an opportunistic angle here, fueled by a combination of timing and a technical catalysts (that may be tied together anyway).

As for the catalyst, while at Galena Biopharma may not have anything on the market and driving revenue yet, what's easy to miss about the company is that it has an approved drug it plans to begin marketing this year.

It's Abstral, for pain management in cancer patients. You've not heard much about it because it was approved a couple of years ago when a different company developed it and got the drug approved; Galena only decided recently to begin making it and selling it after buying the rights to it in the middle of this year.

Meanwhile, it was recently approved for use in Japan, so it may be over the proverbial hump in terms of getting enough revenue size and scale to make it with Galena's while. With much of this news staying off the radar, however, GALE is still something of an undiscovered opportunity. That condition is changing rapidly, however, if the shape of the GALE chart is any indication.

There's no denying GALE has been rallying nicely - even if modestly - since early 2012. But, the buying effort may be about to explode if shares can just get over the horizontal hurdle around $2.50 (which may be a possibility today). The convergence of the rising support line and a horizontal ceiling is putting a serious squeeze on the stock, and it looks like the bulls are drawing a tougher line in the sand than the bears are. We're also seeing more bullish volume than bearish volume here, so once the wedge pattern really starts to crumble, the flow should be an upward one. Indeed, some would argue that it already is. However, you see it, there's no denying that the news as well as the stock's momentum are starting to work together for the good of shareholders. This thing could get explosive real soon.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter.

India gears up for first asset-backed property bonds

The bonds would open a new source of capital for a commercial property sector weighed down by USD 22 billion of bank debt and sluggish rentals, and come on the heels of new rules allowing developers to raise money through real estate investment trusts (REITs).

Property and infrastructure lender IDFC < IDFC .NS>is at the most advanced stage, with plans to sell at least 3 billion rupees in a debt security backed by lease rentals from an IT park in Noida, outside Delhi, and a special economic zone in Pune, said people involved in the discussions.

IDFC declined to comment.

DLF, India's biggest listed developer, is in talks to raise up to 10 billion rupees in a bond backed by lease rentals from two malls by the end of this year, the people said.

The developer has in the past talked about raising funds through such a vehicle. Developer K. Raheja Corp is also pursuing an asset-backed deal, but is proceeding slowly, Neel Raheja, group president, told Reuters.

Credit Suisse and JP Morgan are among banks tapping property companies and investors to gauge their interest in the structure, the people said. Both banks declined to comment.

"Bankers have pitched deals for IDFC and DLF to us. We are assessing the risk of the product and waiting for the rating," said a senior fund manager who declined to be named because the talks were not public. He said IDFC was likely to issue the first such bond, within a month.

MORE LRD THAN CMBS

While the bond structure is loosely referred to in India as a commercial mortgage-backed security (CMBS), it differs from a CMBS in the United States or Europe, under which lenders securitise mortgages on commercial property.

Rather, DLF and IDFC's proposed bonds would be similar to so-called lease-rental discounting (LRD), sold in a bond. Rental income is used to pay the interest to the bond investor, while the principal is repaid at maturity, the people said. In an LRD, the principal is amortised over the life of the debt.

Both DLF and IDFC are considering bonds with 5-year maturities and an option to extend the borrowing to 7 years. The debt would be issued by a special purpose vehicle that owns the underlying property and would carry a credit rating independent of the developer.

DLF's executive director of finance, Saurabh Chawla, confirmed the developer is looking at such a debt structure for its offices and shopping malls, but gave few details.

"We are exploring the possibility," he said. "There are many such programs that we have which we hope to complete over the next 6-9 months."

DLF earns more than 20 billion rupees in rent every year, Chawla said. The company has also been selling non-core assets to reduce its debt.

YOUNG DEBT MARKETS

Indian property developers, typically family-run, usually rely on bank loans and selling equity to fund their operations.

India's corporate bond market has traditionally lacked the depth and liquidity to serve as a major funding source for all but the highest-rated companies.

More exotic bond products, meanwhile, have failed to take off because of low investor appetite and regulatory restrictions that prevent many investors such as pension funds from buying riskier assets.

The search for new ways to raise funds comes after Indian developers gorged on cheap bank loans during a property boom in 2006-07, which was ended by the global financial crisis as well as high domestic inflation and interest rates.

Demand for commercial property in India has also weakened in some cities as corporate tenants rein in costs by consolidating operations, according to a report this month by CBRE.

IDFC is considering an asset-backed security that yields 10.75 percent to 11 percent, said those close to the discussions, below the roughly 12-13 percent interest on a loan for a similar duration.

Property-backed bonds carry risk, as issuers can default if lease payments are disrupted. Defaults on mortgage-backed assets were a key contributor to the 2008 global financial crisis.

The Indian market for property-backed bonds is likely to develop slowly. "The tap may finally open, but not in strong force," said Sandeep Singh, director of structured finance at Fitch Ratings in Mumbai.

Raheja said his company is considering doing a deal in the next 3-6 months. "Before we do it we want to make sure it goes right and therefore we are not rushing into it," he said.

Alan Greenspan Admits His Economic Model for 2008 Omitted "Fear" and "Euphoria"

Those powerful "animal spirits" John Maynard Keynes first wrote about — the impact of powerful human emotions like "fear" and "euphoria" — have more to do with the sharp upward and downward  direction of stock and bond prices than Alan Greenspan ever recognized during his estimable career as prognosticator for 315 million Americans.  Five years after the financial system almost went down the former Fed chieftain says his major error was in not adding a factor for "fear" and "euphoria" into his prognostication. That's why he was wrong, not as he divulged  in a Congressional hearing that he had misplaced confidence in our largest financial institutions being prudent with their shareholders capital. What a dreamer!

In his compelling and hugely enlightening new book, "The Map and the Territory: Risk, Human Nature, and the Future of Forecasting," former Fed chairman Alan Greenspan writes "I have come around to the view that there is something more systematic about the way people behave irrationally, especially during period of extreme economic stress, than I had previously contemplated." Regulation of the banks Greenspan says should be  simply a function of "large generic equity capital requirements as reserve against losses that will happen." He isn't facing up to the  leverage used by the banks of nearly $30 of debt for each $1.00 of equity capital in 2008. He isn't facing up to his role in quashing regulation of derivatives and his refusal to raise margin requirements, the curse of staying a libertarian as to the financial behemoths.

Today, Greenspan admits, we can make use of  "fear" and "euphoria" to predict "emerging asset bubbles in equities, commodities, and exchange rates — and even to anticipate the economic consequences of their ultimate collapse and recovery." All I've got to say is that at the ripe old age of 87, it's about time, Alan. He now admits that any "fully detail model" of the economy must factor in the dynamics of "fear" and " euphoria" as well as interest rates, corporate earnings and price-earnings yields. Easy enough to  say, maybe next to impossible to do. 10,000 mea culpas for you Alan.

It appears from this book, published this week, that Greenspan is blaming intense " fear" following intense "euphoria" for the wipe-out of $50 trillion in value globally during 2008- 2009, rather than  the vacuum in oversight of Wall Street   in  accordance with his long-held antipathy for tight regulation of financial institutions. He was dead wrong to be certain  the masters of the universe  would act prudently in order to protect the value of their franchise and shareholder capital. No mea culpa on this score in "The Map and the Territory" as far as I could see.

No matter. This exposition of a lifetime as a practicing economist is full of insights and lessons for financiers, security analysts, business students and public policy makers, especially Presidents, congressmen, central bankers and the FDIC, SEC, CFTC, FHLB. It should be required reading for some of the insights into the way markets perform.

Is RadioShack a Buy Post-Earnings?

With shares of RadioShack (NYSE:RSH) trading around $2, is RSH 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

RadioShack engages in the retail sale of consumer electronics goods and services through its store chain. The company operates in two segments, U.S. RadioShack company-operated stores and Target Mobile centers. It offers postpaid and prepaid wireless handsets, tablet devices, home entertainment, wireless, computer, and music accessories, as well as general purpose and special purpose power products. RadioShacks all supplies laptop computers, personal computing products, digital music players, residential telephones, global positioning system devices, cameras, digital televisions, and other consumer electronics products.

RadioShack reported earnings results for the third quarter ended September 30, 2013, including total net sales and operating revenues of $805 million and net loss of $112 million. Joseph C. Magnacca, chief executive officer, said, “We are moving forward quickly and as planned with our turnaround efforts. As we have said, we expect our work to take several quarters and during that time our results will vary quarter to quarter as we make strategic changes to improve our long-term financial performance. This quarter reflects our strategic decision to accelerate the improvements to the product assortment in our stores by removing duplicate and unproductive inventory. The lower inventory valuations for these products and projected disposal costs resulted in an expected increase to our cost of products sold this quarter.”

T = Technicals on the Stock Chart Are Mixed

RadioShack stock has not done very well in recent years. The stock has seen lower highs and lower lows and looks poised to continue this path. 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, RadioShack is trading below its key averages, which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Radioshack Options	105.13%	63%	61%

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
November Options	Steep	Average
December Options	Steep	Average

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

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

E = Earnings Are Decreasing Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-136.17%	-152.38%	-437.50%	-634.57%
Revenue Growth (Y-O-Y)	-10.31%	-0.48%	-7.04%	-6.47%
Earnings Reaction	-20.46%*	-5.11%	0.95%	0.32%

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

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has RadioShack stock done relative to its peers, Best Buy (NYSE:BBY), Wal-Mart (NYSE:WMT), Aaron’s (NYSE:AAN), and sector?

	RadioShack	Best Buy	Wal-Mart	Aaron’s	Sector
Year-to-Date Return	32.08%	264.50%	11.75%	1.77%	15.19%

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

Conclusion

RadioShack offers a variety of consumer electronics and services to a growing population. A recent earnings release has investors sour about the company. The stock has declined in recent years and is currently trading near the lower-end of its yearly range. Over the last four quarters, earnings and revenues have been decreasing which has left investors disappointed with the company. Relative to its peers and sector, RadioShack has been a year-to-date performance leader. WAIT AND SEE what RadioShack does this quarter.

Top Biotech Companies To Invest In Right Now

There's never a dull week on Wall Street. Let's go over some of the news that will shape the week to come.

Monday
The market kicks off with Herbalife (NYSE: HLF  ) reporting quarterly results on Monday. Is the nutritional products company a pyramid scheme as Bill Ackman suggests? Is it a bargain as Carl Icahn implies by recently taking a sizable stake? We may not get any definitive answers on Monday, but at least we'll get a financial snapshot for the bulls and bears to update their arguments.

Tuesday
Cytokinetics (NASDAQ: CYTK  ) checks in on Tuesday. The biotech company's lead candidate is a cardiac muscle contractility program that Cytokinetics is trying to get approved for the potential treatment of heart failure. Investors see red ink here, but analysts do see the quarterly deficit narrowing this time around.

Wednesday
JDS Uniphase (NASDAQ: JDSU  ) reports on Wednesday. The optical-networking bellwether is likely to disappoint bulls and bears this time around. Wall Street sees JDS Uniphase merely matching last year's quarterly profit of $0.11 a share.

Top Biotech Companies To Invest In Right Now: EntreMed Inc (ENMD.PH)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. E NMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Top Biotech Companies To Invest In Right Now: Exelixis Inc.(EXEL)

Exelixis, Inc., a biotechnology company, develops small molecule therapies for the treatment of cancer. It focuses on developing Cabozantinib, an inhibitor of tumor growth, metastasis, and angiogenesis that target MET, VEGFR2, and RET, which are key kinases involved in the development and progression of various cancers. The cabozantinib is in Phase III clinical trial for the treatment for medullary thyroid cancer. The company also engages in various clinical programs for cabozantinib focused on the treatment of metastatic castration-resistant prostate cancer, ovarian cancer, breast cancer, renal cell carcinoma, non-small cell lung cancer, hepatocellular cancer, and melanoma. In addition, Exelixis, Inc. involves in developing a portfolio of other novel compounds to address serious unmet medical needs through collaborations with various pharmaceutical and biotechnology companies, including Bristol-Myers Squibb Company, sanofi-aventis, Genentech, Inc., Boehringer Ingelheim Gm bH, and GlaxoSmithKline and Daiichi Sankyo Company Limited. Its products under development through collaborations include XL475, XL281, XL139, and XL413 inhibitors; ROR antagonists; therapies targeted against LXR, a nuclear hormone receptor implicated in various cardiovascular and metabolic disorders; XL147, XL765, and isoform-selective PI3K inhibitors; XL518, a small-molecule inhibitor of MEK; sphingosine-1-phosphate type 1 receptor; XL880 inhibitor; and therapies targeted against the mineralocorticoid receptor, a nuclear hormone receptor implicated in various cardiovascular and metabolic diseases. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.

Advisors' Opinion:

• [By Sean Williams]

  High-risk, high-reward suggestions
  There's an undeniably large dollar amount being pledged to cancer research, but, even if a drug gains approval, that's no guarantee that the biotech or pharmaceutical company behind that drug will be a success. Some of the biggest gains (and losses) come from taking a leap of faith based on clinical data, or the approval of one or two drugs or devices within a pipeline. After that, it's all up to the drug or devices' effectiveness, its pricing, and the success of the marketing teams promoting the drug or device. Here are a few high-risk, high-reward names you should be keeping your eye on.

  Exelixis (NASDAQ: EXEL  ) : In November Exelixis had its first drug, known as Cometriq, approved by the Food and Drug Administration to treat metastatic medullary thyroid cancer. Although the market for this disease is pretty small -- somewhere between 500 and 700 people in the U.S. -- the near-tripling in progression-free survival, or PFS, in trials would indicate to me a strong likelihood that it could translate to success in other cancer types. In mid-stage prostate cancer trials, for instance, Cometriq was found to be particularly effective in dealing with bone metastases as a second or third-line treatment. We won't get any additional data until next year on Cometriq, but positive data on the prostate cancer front could be enough to double its share price if the PFS, compared to the placebo, is notably strong. ImmunoGen (NASDAQ: IMGN  ) : In February, Roche�and ImmunoGen received approval for Kadcyla as a secondary treatment for HER2-positive breast cancer. This is ImmunoGen's first drug approval, and it gives the company a chance to showcase what I feel is one of the future pathways of fighting cancer -- its targeted-antibody payload, or TAP, technology. ImmunoGen's TAP technology works by attaching a toxin -- in this case Roche's Herceptin -- to an antibody, and teaching that antibody to release the to
• [By Sean Williams]

  Where investment dollars are headed
  Thyroid cancer is treated in nearly every case with a full or partial thyroid removal since the majority of thyroid cancers aren't aggressive. However, in those rare cases where surgery isn't an option or the disease has metastasized to other parts of the body, there are two drugs approved by the Food and Drug Administration to choose from.

  Caprelsa: AstraZeneca's (NYSE: AZN  ) Caprelsa was approved to treat unresectable, locally advanced, or metastatic medullary thyroid cancer in April 2011. In trials, AstraZeneca's pill increased progression-free survival over the placebo and delivered an overall response rate of 44%, compared with just 1% for the placebo -- although it should be noted that all responses were partial. However, Caprelsa also comes with a laundry list of side effects that range from something as simple as rash, nausea, and hypertension, to having resulted in death from respiratory arrest and cardiac failure with arrhythmia.� Cometriq: Exelixis' (NASDAQ: EXEL  ) Cometriq was approved last November to treat progressive metastatic medullary thyroid cancer. The capsules work by inhibiting multiple tyrosine kinases, which are crucial to blood vessel growth in solid and metastasizing tumors. In late-stage trials, patients receiving Cometriq demonstrated an astounding 11.2 months of progression-free survival compared with just four months for the placebo. Further, the objective response rate was 27% in the Cometriq arm and a goose egg for the placebo arm. Similar to AstraZeneca's Caprelsa, severe adverse reactions tended to increase for Cometriq users relative to the placebo.

  Just as we've witnessed with every previous cancer in this series, not every drug trial proves successful. Pfizer's (NYSE: PFE  ) Sutent, for instance, is a very successful treatment for kidney cancer, gastrointestinal stromal tumors, and pancreatic endocrine tumors, but it didn't fare as wel

Top 10 Financial Stocks For 2014: RXi Pharmaceuticals Corp (RXII)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidiary Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Top Biotech Companies To Invest In Right Now: Fuse Science Inc (DROP.PK)

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

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

The Company

Top Biotech Companies To Invest In Right Now: Galectin Therapeutics Inc (GALT)

Galectin Therapeutics Inc., formerly Pro-Pharmaceuticals, Inc., incorporated on January 26, 2001, is a development-stage company. The Company is engaged in drug development to create therapies for cancer and fibrotic disease. As of December 31, 2011, the Company has two compounds in development, one is to be used in cancer therapy and the other intended to be used in the treatment of liver fibrosis and fatty liver disease. These two compounds are produced from different natural starting materials, both possessing the property, which lends itself to binding to and inhibiting galectin proteins. GM-CT-01, the Company's product candidate for cancer therapy, is a linear polysaccharide polymer consisted of mannose and galactose that has a defined chemical structure and is derived from a plant source. GR-MD-02, the Company's product for treatment of liver fibrosis and fatty liver disease with inflammation and fibrosis, is a polysaccharide polymer possessing both linear and globular structures, which also is derived from a plant source.

GM-CT-01 has in development for the therapy of colorectal cancer and is in a Phase I/II clinical trial as a combination therapy with a tumor vaccine in patients with advanced melanoma. Based on the completed Phase I and partially completed Phase II clinical trials, the Company is exploring two additional potential indicia for the use of GM-CT-01 in combination with cancer chemotherapy. There are two additional pathways for the development of GM-CT-01 for use in treatment of cancer. GM-CT-01 was found to be generally safe when studied in a Phase I clinical trial in end-stage cancer patients with multiple tumor types alone and in combination with 5-Fluorouracil (5-FU), which is an Food and Drug Administration (FDA)-approved chemotherapy used for treatment of various types of cancer.

Advisors' Opinion:

• [By Roberto Pedone]

   

  Galectin Therapeutics (GALT) offers drug research and development to create new therapies for fibrotic disease and cancer. This stock closed up 9.6% to $12.06 in Monday's trading session.

   

  Monday's Volume: 674,000
  
  Three-Month Average Volume: 222,171
  
  Volume % Change: 149%

   

  Shares of GALT jumped higher on Monday after Ascendiant initiated coverage on the stock with a buy recommendation.

   

   

  From a technical perspective, GALT spiked sharply higher here with strong upside volume. This stock has been uptrending for the last three months, with shares ripping higher from its low of $3.95 to its recent high of $13.21. During that move, shares of GALT have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GALT within range of triggering a near-term breakout trade. That trade will hit if GALT manages to take out Monday's high of $12.44 and then once it clears its 52-week high at $13.21 with high volume.

   

  Traders should now look for long-biased trades in GALT as long as it's trending above some near-term support levels at $11 or at $10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 222,171 shares. If that breakout hits soon, then GALT will set up to enter new 52-week-high territory above $13.21, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.

   

Top Biotech Companies To Invest In Right Now: Johnson & Johnson(JNJ)

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Johnson & Johnson (JNJ) are trading up 0.4% at $90.18 at 1:38 p.m. today after the healthcare giant reported better-than-forecast earnings.

  Associated Press

  Reuters has the details on Johnson & Johnson’s numbers:

  Excluding special items, J&J earned $1.36 per share. Analysts on average, had expected $1.32 per share, according to Thomson Reuters I/B/E/S. The company took special charges of about $900 million in the quarter, related largely to legal expenses and merger-related costs…

  Global drug revenue jumped almost 10 percent to $7.04 billion…But sales of the company’s medical devices were hurt by patients’ continuing reluctance to undergo elective surgeries and other procedures in a weak economy. Division sales fell 2 percent to $6.93 billion.

  Color S&P Capital IQ’s Herman Saftlas impressed. He writes:

  We were impressed by pharmaceutical sales growth of 9.9%, driven by newer drugs such as Invega, Simponi, Stelara, and Velade. However, consumer sales rose only 0.8%, and device sales fell 2.0%. Looking to 2014, we see strong momentum in drugs, with growth in emerging markets and the return of OTC products helping consumer sales, and new products and Synthes synergies benefiting devices.

  Leerink Swann’s Danielle Antalffy and Robert Marcus call J&J’s report a “clean” beat. They write:

  JNJ’s EPS beat was clean, helped by sales outperformance and better-than-expected gross margins as the company continues to deliver positive operating leverage. Overall, JNJ continues to ride the back of strong Pharma performance as recent product launches continue to exceed expectations. And while below-consensus MD&D sales could perpetuate concerns that broader MedTech utilization trends remain weak, strong Surgical sales could actually signal potentially
  positive volume trends overall. While JNJ suffers several “weak”

• [By Jeremy Bowman]

  Elsewhere on the Dow, Johnson & Johnson (NYSE: JNJ  ) also reported earnings, finishing unchanged as a result. The health-care giant said adjusted earnings per share came in at $1.48, well ahead of expectations of $1.39, and it also beat revenue estimates as sales increased 8.5% to $17.88 billion, topping projections at $17.72 billion. The increase in sales and income was primarily driven by its $19.7 billion acquisition a year ago of Synthes, a surgical equipment maker. Despite beating estimates, shares fell back after a strong start, as the company expects slower growth in the second half of the year, where it's facing increasing competition for medical equipment and prescription drugs.

Top Biotech Companies To Invest In Right Now: Celsion Corporation(CLSN)

Celsion Corporation, an oncology drug development company, develops and commercializes targeted chemotherapeutic oncology drugs based on its proprietary heat-activated liposomal technology. The company is developing its lead product, ThermoDox that is in Phase III clinical trial for primary liver cancer; and in phase II clinical trial for treatment of recurrent chest wall breast cancer. It has a license agreement with Yakult Honsha to commercialize and market ThermoDox for the Japanese market. The company also has a license agreement with Duke University under which it received exclusive rights to commercialize and use Duke's thermo-liposome technology. In addition, Celsion Corporation has a joint research agreement with Royal Phillips Electronics to evaluate the combination of Phillips' high intensity focused ultrasound with its ThermoDox to determine the potential of this combination to treat a range of cancers. The company was founded in 1982 and is based in Columbia, M aryland.

Advisors' Opinion:

• [By EquityOptionsGuru]

  The Prolieve Thermodilatation System was actually developed by the current management of Medifocus while employed at Celsion Corporation (NASDAQ:CLSN). The system was also jointly developed with Boston Scientific (NYSE:BSX) before being acquired by Medifocus in July 2012. Prolieve has already received FDA approval, is currently generating revenue, and is the only in office alternative to drug therapy. The system essentially uses microwave energy to treat Benign Prostatic Hyperplasia (BPH), which is a non-cancerous enlargement of the prostate gland that typically affects men over the age of 50. The Prolieve device works by compressing and heating prostatic tissue that may be blocking the flow of urine. This particular treatment option offers patients several benefits including the following:

• [By Paul Ausick]

  Stocks on the Move: NQ Mobile Inc. (NYSE: NQ) is up 26% at $11.09 as the company fights back against a short-seller report. Celsion Corp. (NASDAQ: CLSN) is up 339.3% at $5.14 following a reverse 1:4.5 stock split. Micron Technology Inc. (NASDAQ: MU) is up 4.7% at $17.50.

Top Biotech Companies To Invest In Right Now: (DYMTF)

Dynamotive Energy Systems Corporation engages in the development and commercialization of energy solutions for biomass-to-liquid fuel conversion based on its fast pyrolysis technology. The company?s fast pyrolysis technology uses biomass or biomass waste feedstock to produce BioOil as a fuel and char. BioOil is a renewable fuel, which could be replaced with natural gas, diesel, and other fossil fuels to produce power, mechanical energy, and heat in industrial boilers, fuel gas turbines, and fuel reciprocating engines. The company has a strategic alliance with Tecna S.A. of Argentina to develop commercial energy systems based on Dynamotive?s pyrolysis technology in Latin America and other markets on a non-exclusive basis. It has operations in Canada, the United States, Argentina, and the United Kingdom. The company was formerly known as Dynamotive Technologies Corporation and changed its name to Dynamotive Energy Systems Corporation in June 2001. The company was founded i n 1991 and is headquartered in Richmond, Canada.

Will Robert Karr Be Lit in the Coming Years? I Bet It Will Be with LED Light

The tech industry is the second largest exporting industry in the U.S. But in the recent time, low-cost substitutes have shifted production to others countries like China or Taiwan. The industry is capital-intensive and requires investments to advance in technology and reduce manufacturing costs. Also, it is a concentrated industry, with the top 50 companies holding more than 70% of total market share.

Having said that let's take a look at Karr´s last trade and try to explain to investors the reasons of this investment opportunity.

On Nov. 21, Robert Karr bought Veeco Instruments Inc. (VECO), a company that designs, manufactures and markets equipment to make light emitting diodes (LEDs), solar panels, hard-disk drives and other devices.

The company operates through the LED & Solar segment (70% of 2012 revenues) which designs and manufactures metal organic chemical vapor deposition ("MOCVD") and molecular beam epitaxy ("MBE") systems and components sold to manufacturers of LEDs, wireless components, power semiconductors, and concentrator photovoltaics, as well as to R&D applications. The other segment is Data Storage (30% of 2012 revenues) which designs and manufactures systems used to create thin film magnetic heads ("TFMH"s) that read and write data on hard disk drives.

A Growth Driver

The main growth driver in the next years will be the general lighting market. Thousands of additional MOCVD tools will be required over the next few years as LEDs become widely adopted for much larger market application, offsetting the possible decline in the consumer electronics niche (television, notebooks). Also, the firm focuses on cost reduction in the LED technology through larger wafers, automation and dedicated equipment.

60% Market Share

The growth in the data storage business was pretty good; and the firm now is the leading supplier of manufacturing equipment. Two risks to consider are the brutally competition it faces and secondly, as this business is tied to wor! ldwide storage demand growth a decrease in the future could impact the segment´s profitability.

Valuation

In terms of valuation, its price-to-book ratio of 1.46 indicates a discount versus the industry average of 1.6 and the price-to-sales ratio of 3.4 is above the industry average of 1.42. VECO's debt-to-equity ratio is really very low and is below that of the industry average, implying that there has been very successful management of debt levels.

Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. It stood at 3.8% and is higher than 54% of the companies in the industry. We can appreciate the evolution in the next chart. It is very important to understand this metric before investing in a high-growing company.

[ Enlarge Image ]

Final Comment

For a long-term perspective, I would advise fundamental investors to consider adding Veeco to their portfolios as it has a solid financial position with extraordinary good debt levels and a good stock price appreciation during the past year makes me feel confident for more upside potential.

Hedge fund guru Jim Simons has invested in it as well. Should you too?

Disclosure: Victor Selva holds no position in any stocks mentioned.

Currently 3.50/512345 Rating: 3.5/5 (4 votes)

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RSS Feed Monday, November 25, 2013 Yahoo hires Katie Couric as 'global anchor'   Will Katie Couric hire help save Yahoo? NEW YORK (CNNMoney) Yahoo has added yet another media star to its ranks: Katie Couric will join Yahoo early next year as its "global anchor." CEO Marissa Mayer confirmed Couric's hiring in a Tumblr post on Monday. The post didn't go into great detail about what Couric's role will entail, but she will be "the face of Yahoo News and [shoot] features for our homepage," Mayer wrote. Yahoo recently purchased Tumblr for $1.1 billion. The Yahoo (YHOO, Fortune 500) deal appears to end the news role that Couric held at ABC News -- but she will continue to host her ABC daytime talk show, "Katie," which debuted in September 2012 and was renewed for a second season at the beginning of this year. The Hollywood Reporter posted an article on Friday saying Couric would host "a newsmaker interview program" to air on Yahoo's homepage. Tech blog AllThingsD first reported that Couric would be named "global news anchor." Couric brings a ton of star power to Yahoo, as Mayer appears to be on a quest for big-name media talent. Related story: Marissa Mayer hasn't saved Yahoo yet Just last month, Yahoo announced it had poached longtime New York Times tech columnist David Pogue to head up its own consumer-tech coverage. Yahoo also recently hired former New York Times editor Megan Liberman to become the Yahoo News editor-in-chief, and New York Times Magazine's political correspondent Matt Bai as Yahoo News' national political columnist.   Marissa: My 3 biggest decisions In addition to th! e recent media bent, Mayer has also focused on video as a major pillar of Yahoo's content. A homepage news show from Couric would certainly fit into that philosophy. S&P Capital IQ analyst Scott Kessler said in a note to clients Monday that he thinks it makes sense for Yahoo to hire established media personalities like Couric in order to grab more traffic and attract advertisers. But, Kessler noted, details about specific coverage plans for Couric remain scant -- as well as how much cash Yahoo had to shell out to get her. Couric has worked as an anchor, host or news correspondent at most of the major broadcasters: Comcast (CMCSA, Fortune 500)-owned NBC, CBS (CBS, Fortune 500) and Walt Disney's (DIS, Fortune 500) ABC. While at CBS, she became the first woman to be the solo anchor of an evening news program. The jump from ABC News to Yahoo isn't a giant leap for Couric: The two companies inked a news partnership back in 2011, and Couric's web show "Katie's Take" appears on both companies' sites. - CNN's Rachel Wells contributed reporting. The Best Cities to Flip a House Home flips, an important measure of housing market activity, declined 35% in the third quarter of 2013. Flipping a house — which involves buying, renovating and then reselling it — peaked in popularity in the fourth quarter of 2012, when more than 67,000 homes were flipped. As of the third quarter of this year, nearly 33,000 homes were flipped. While the market is down overall, investors in some areas are still seeing returns well above the national average of $55,000. The average gross profit on a home flipped in San Jose was more than $166,000, the highest in the country. Based on figures provided by RealtyTrac, an online housing data provider, 24/7 Wall St. examined the 10 markets where flipping a home produced the largest gross profit in the third quarter. Click here to see the best cities to flip a house The number of flips also has dropped in the best markets. Compared to the same quarter last year, home flips across the United States declined by 13%. Just two top markets, Oxnard-Thousand Oaks-Ventura, Calif., and Seattle-Tacoma-Bellevue, Wash., had year-over-year increases in home flip activity. "Fllippers are not just running rampant, they're backing off when the opportunity closes in terms of finding those distressed properties and converting them to quality homes," explained Daren Blomquist, vice president at RealtyTrac. Several factors were forcing home flippers out of the market, including a lack of distressed inventory, added competition from large institutional investors, as well as rising home prices and interest rates. All but two of the most profitable markets for home flipping last quarter were in California. "Coastal California is one of the most desirable markets in the country," said Bloomquist. This high demand is one of the reasons people were able to flip homes successfully in these markets. In most of the top cities for home flipping, buyers paid among the nation's highest prices for distressed properties. The average price paid for a distressed property nationwide was $219,412. In half of the top markets for home flipping, buying a distressed home to flip cost, on average, more than $400,000. Of course, these expensive markets produce even larger returns. "Flippers are able to make a bigger gross profit per flip in these markets with much higher price points," Blomquist said. The average gross profit on a flip in eight of the 10 markets was at least $100,000. Based on figures provided by RealtyTrac, 24/7 Wall St. examined the 10 housing markets where flipping a house produced the highest gross profit in the third quarter of 2013. A flip is defined by RealtyTrac as a sale of a single-family home purchased up to six months earlier. Markets with less than 50 flips were excluded. These are the best cities in which to flip a house. Iran nuclear deal puts pressure on oil prices Oil prices traded sharply lower Monday after a weekend breakthrough over Iran's nuclear program put the commodity back in the spotlight. Benchmark U.S. crude for January delivery was recently down 1.3% at $93.60 in electronic trading on the New York Mercantile Exchange. Brent crude oil prices, a separate gauge, declined 2% to around $108.82 a barrel. Iran on Sunday reached an agreement with the U.S., Britain, France, Russia, China and Germany to limit enrichment of uranium to 5%, far below the level needed for nuclear weapons. Iran got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for an enduring deal. The nuclear deal has potentially made it more likely that the sanctions choking Iranian oil exports will eventually be lifted. The nation's oil exports are currently capped at about 1 million barrels a day, according to Bloomberg. If Iranian oil returns to international markets, the additional supply is likely to make crude less expensive. IRAN DEAL: Nuke deal leaves Iranian capability, Arab fears intact Still, the major pre-market indexes on Wall Street saw modest gains on Monday. Dow Jones industrial average index futures rose 0.4%, Standard & Poor's 500 index futures added 0.3% and Nasdaq index futures moved higher by around 0.4% ahead of Monday's opening bell. Wall Street in recent days continued to be lifted by the Federal Reserve's super easy monetary policy, signs of gradual improvement in the U.S. economy and rising company profits. On Friday, S&P 500 rose 0.5% to 1,804.76. The Dow gained 0.3% to 16,064.77. The Nasdaq composite jumped 0.6% to 3,991.65. "Perhaps the Iran nuclear deal, effectively setting limits to Iran's nuclear program, has added to the buoyant risk mood," said Stan Shamu, market strategist at IG in Melbourne, Australia. FRIDAY: S&P 500 closes above 1800 for first time In Asia, Japan's Nikkei 225 stoc! k average rose 1.5% to 15,619.13 and Hong Kong's Hang Seng added 0.1% to 23,684.45. European shares advanced. Britain's FTSE 100 index rose 0.4% and Germany's DAX index added 0.7%. Gold prices declined over 1% as investors reflected on the deal that would see Iran curb its nuclear activities. Contributing: Associated Press Sunday, November 24, 2013 Can General Motors Drive Your Portfolio Higher? With shares of General Motors (NYSE:GM) trading around $35, is GM 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 General Motors designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun, and Wuling brand names. It sells cars and trucks to dealers for consumer retail sales as well as to fleet customers in daily rental car companies, commercial fleet customers, leasing companies, and governments. General Motors is set to open a new $200 million plant in Arlington, Texas, designed to help the company cut logistics costs, The Wall Street Journal reports. The new metal stamping plant will reduce shipping costs by $40 million, as it's located right next to a General Motors assembly plant. Company CEO Dan Akerson is trying to increase General Motors's North American margins from 8 percent to 10 percent as the company seeks to stay ahead of rivals. T = Technicals on the Stock Chart Are Strong General Motors stock has made positive progress in the past couple of years. The stock is currently trading below highs for the year but looks to be getting ready for a push higher. 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, General Motors is trading between its key averages. which signals neutral price action in the near term. Source: Thinkorswim Taking a look at the implied volatility and implied volatility skew levels of General Motors options may help determine if investors are bullish, neutral, or bearish. Implied Volatility (IV) 30-Day IV Percentile 90-Day IV Percentile General Motors Options 32.28% 83% 81% What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts as compared to the last 30 and 90 trading days. Put IV Skew Call IV Skew October Options Flat Average November Options Flat Average As of Monday, 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. 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 General Motors’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for General Motors look like and, more importantly, how did the markets like these numbers? 2013 Q2 2013 Q1 2012 Q4 2012 Q3 Earnings Growth (Y-O-Y) -16.67% -3.33% 6.49% -13.59% Revenue Growth (Y-O-Y) 3.88% -2.32% 3.47% 2.33% Earnings Reaction -1.10% 3.01% 0.03% 0.70% General Motors has seen decreasing earnings and rising revenue figures over the last four quarters. From these numbers, the markets have mostly been upbeat about General Motors’s recent earnings announcements. P = Weak Relative Performance Versus Peers and Sector How has General Motors stock done relative to its peers – Ford (NYSE:F), Toyota (NYSE:TM), Tesla (NASDAQ:TSLA) — and sector? General Motors Ford Toyota Tesla Sector Year-to-Date Return 22.58% 32.59% 40.28% 435.80% 31.68% General Motors has been a weak relative performer, year-to-date. Conclusion General Motors continues to change its business as it looks to entice companies and consumers with its new and improved vehicles. The company is set to open a new plant in Texas in an effort to help the company cut logistics costs. The stock has done well in recent years and is now trading slightly below highs for the year. Over the last four quarters, earnings have been decreasing while revenues have been rising, which has led to upbeat investors. Relative to its peers and sector, General Motors has been a weak year-to-date performer. Look for General Motors to continue to improve and OUTPERFORM. Saturday, November 23, 2013 The Benefits of Tactical Rotation in Any Market: Braver’s D’Amico How far we’ve come. The plethora of new products and strategies to help with portfolio management is something at which to marvel. Yet the confusion that accompanies many, and how, exactly, they’re best deployed, it a constant struggle for the advisory industry. “A big issue is the way investment solutions have changed and evolved over the past 10, 15 and 20 years, and how it helps investors today, especially with interest rates as they are,” says Dave D’Amico. Twenty years ago, it was pretty simple, notes the president and chief market strategist of Boston-based Braver Capital Management . “As someone entered retirement, you’d take them down the risk curve by incorporating more fixed income investments. At the time, Treasuries not only had the safety they were known for, but were also offering 6% and 7% yields.” Today, however, you have all these new alternative investments and tactical strategies in addition to traditional equities, fixed income and cash, D’Amico adds. Although interest rate risk is rising, fixed income investing is still relatively safe if one holds to maturity; however he emphasizes that yields will no longer support clients in retirement, and have advisors wondering what to do. So what, exactly, should they do? “Alternative investments and tactical strategies can deliver hedge-fund-like returns with risk that approximates fixed income but they can also provide a competitive total return as markets advance,” he argues. “Many of these alternative asset classes come with a standard deviation equal or less than fixed income, but they get the returns.” Of course, definitions vary as to what alternative investments really are. D’Amico and his team, which manages $750 million in assets, stay away from managed futures and similar products because “they can get messy, especially in rising markets.” “We keep it clean, and have a number of tactical rotation strategies that strategically move to cash when appropriate,” he says. In this way, investors get the upside participation and downside protection so many crave. “One common allocation is to have roughly 33% of our portfolio in equities, 33% in fixed income and 33% in tactical rotation strategies, with tactical rotation on the rise.” Like many, he concludes that modern portfolio theory isn’t dead, but it has to evolve. “You can’t stay fully invested with today’s volatility; it’s just too dangerous.” --- Check out this year's Think Retirement Income Conference in Boston on Oct. 10 and 11. For more information and a list of speakers, please visit www.thinkretirementincome.com.    Friday, November 22, 2013 Best Medical Companies To Invest In 2014 The so-called fundamentals, frankly, don't really matter for Entest BioMedical Inc. (OTCMKTS:ENTB) or Gevo, Inc. (NASDAQ:GEVO). Oh, both GEVO and ENTB are generating sales, but both are consistently taking losses. That's ok though, as for both companies right now, profits aren't really the point - it's the pipeline that matters. Then again, though both Gevo, Inc. and Entest BioMedical Inc. are on the same proverbial expectations-boat doesn't mean neither are trade-worthy. As a matter of fact, both are quite trade-worthy explicitly because they are nothing more than trading instruments, being pushed around by speculation and psychology, which is - amazingly enough - sometimes easier to handicap than actual "value". Thing is, though both ENTB and GEVO are dropping big hints as to the budding direction of their bigger undertow, these two stocks are most definitely not pointed in the same direction. Best Medical Companies To Invest In 2014: Universal Biosensors Inc (UBI) Universal Biosensors, Inc. (Universal Biosensors) is an early-stage specialist medical diagnostics company focused on the research, development and manufacture of in vitro diagnostic test devices for consumer and professional point-of-care use. The Company uses its electrochemical cell technology platform to develop tests for a number of different markets. The Company�� principal activities are research and development, commercial manufacture of approved medical or testing devices and the provision of services including contract research work. The Company operates primarily in Australia. The Company uses its electrochemical cell technology platform to develop tests for a number of different markets. The Company has rights to a portfolio comprising patent applications owned by its wholly owned subsidiary, Universal Biosensors Pty Ltd, and a number of patents and patent applications licensed to the Company by LifeScan, Inc., an affiliate of Johnson & Johnson Company. Best Medical Companies To Invest In 2014: Uroplasty Inc (UPI) Uroplasty, Inc., incorporated in January 1992, is a medical device company that develops, manufactures and markets products for the treatment of voiding dysfunctions. The Company�� primary focus is on two products: the Urgent PC Neuromodulation system and Macroplastique Implants. The Urgent PC system is a United States Food and Drug Administration (FDA)-approved minimally invasive, office-based neuromodulation therapy for the treatment of overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency, and urge incontinence; and Macroplastique Implants a urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency (ISD). Outside of the United States, the Company�� Urgent PC is also approved for treatment of fecal incontinence, and Macroplastique is also approved for treatment of male stress incontinence and vesicoureteral reflux. Urgent PC Neuromodulation System Using a small-gauge needle electrode inserted above the ankle, the Urgent PC System delivers electrical impulses to the tibial nerve that travel to the sacral nerve plexus, a control center for pelvic floor and bladder function. Components of the Urgent PC system include a hair-width needle electrode, a lead set, and an external, handheld, battery-powered stimulator. For each 30-minute, office-based therapy session, the physician or other qualified healthcare provider inserts the needle electrode in the patient�� lower leg and connects the electrode to the stimulator. Typically, a patient undergoes 12 consecutive weekly treatment sessions, with follow-up maintenance treatments as required to sustain the therapeutic effect. The Company has received regulatory clearances for sale of the Urgent PC system in the United States, Canada and Europe. It also has launched its second generation Urgent PC system. Macroplastique Macroplastique is designed to restore the patient�� urinary contine! nce immediately following treatment. Macroplastique is a soft-textured, permanent implant injected, under endoscopic visualization, around the urethra distal to the bladder neck. It is a composition of heat vulcanized, solid, soft, irregularly shaped polydimethylsiloxane (solid silicone elastomer) implants suspended in a biocompatible excretable carrier gel. Macroplastique does not degrade, is not absorbed into surrounding tissues and does not migrate from the implant site. The Company has sold Macroplastique for several urological indications in over 40 countries outside the United States. Other Uroplasty Products The Company markets outside of the United States minimally invasive products to address fecal incontinence. Its PTQ Implants offer minimally invasive, soft-textured permanent implant for treatment of fecal incontinence. The PTQ Implants are implanted circumferentially into the submucosa of the anal canal, creating a bulking and supportive effect similar to that of Macroplastique injection for the treatment of stress urinary incontinence. The PTQ is Conformite Europeenne (CE) marked and is sold outside the United States in various international markets. The Urgent PC is also CE marked and sold outside of the United States for the treatment of fecal incontinence. In addition to urological applications, the Company markets its tissue bulking material outside the United States for otolaryngology vocal cord rehabilitation applications under the trade name VOX Implants. In the Netherlands and the United Kingdom only, the Company distributes certain wound care products in accordance with a distributor agreement. The Company competes with Pfizer Inc., Johnson and Johnson, Novartis, Allergan, GlaxoSmithKline, Carbon Medical Technologies, BioForm, Inc., Q-Med AB and Contura. Best Low Price Stocks To Buy Right Now: Antares Pharma Inc (ATRS) Antares Pharma, Inc. (Antares) is a pharma company that focuses on self-injection pharmaceutical products and technologies and topical gel-based products. The Company�� subcutaneous and intramuscular injection technology platforms include Vibex disposable pressure-assisted auto injectors, Vision reusable needle-free injectors, and disposable multi-use pen injectors. In the injector area, it has licensed its reusable needle-free injection device for use with human growth hormone (hGH) to Teva, Ferring Pharmaceuticals BV (Ferring) and JCR Pharmaceuticals Co., Ltd. (JCR), with Teva and Ferring being its two primary customers. The Company has also licensed both disposable auto and pen injection devices to Teva for use in certain fields and territories and is engaged in product development activities for Teva utilizing these devices. In the gel-based area, it received Food and Drug Administration (FDA) approval in December 2011 for its oxybutynin gel 3% product, Anturol, for the treatment of overactive bladder. Antares also has a licensing agreement with Watson Watson Pharmaceuticals, Inc. (Watson) under which Watson will commercialize its topical oxybutynin gel 3% product in the United States and Canada. Its gel portfolio also includes Elestrin (estradiol gel) in the United States for the treatment of moderate-to-severe vasomotor symptoms associated with menopause. Antares has designed disposable, pressure assisted auto injector devices to address acute medical needs, such as allergic reactions, migraine headaches, acute pain, emesis and other daily therapies. Pressure Assisted Injection Devices The Company�� Pressure Assisted Injection Devices consists of three products: reusable needle-free injectors, disposable pressure assisted auto injectors and disposable pen injectors. Reusable needle-free injectors deliver precise medication doses through high-speed, pressurized liquid penetration of the skin without a needle. The injector employs a disposable pl! astic needle-free syringe, which offers liquid medication delivery through an opening that is approximately half the diameter of a standard, 30-gauge needle. Disposable pressure assisted auto injectors is a technology of controlled pressure delivery of drugs into the body utilizing a spring power source. The Vibex is designed to provide fast subcutaneous or intramuscular injections of up to 0.5ml with minimal discomfort and improved convenience in conjunction with the enhanced safety of a shielded needle. Disposable pen injectors are needle-based devices designed to deliver multiple injections from multi-dose drug cartridges. The devices contain mechanisms that specify the dose to be delivered by defining the amount of movement by the stopper in the cartridge with each device actuation. The Vision/Tjet has been sold for use in more than 30 countries to deliver either insulin or hGH. The product features a reusable, spring-based power source and disposable needle-free syringe, which acts as the pathway for the injectable drug through the skin and allows for viewing of the medication dose prior to injection. The product is also reusable, with each device designed to last for approximately 3,000 injections (or approximately two years) while the needle-free syringe, when used with insulin or hGH, is disposable after approximately one week when used by a single patient for injecting from multi-dose vials. The Vision/Tjet administers injectables by using a spring to push the active ingredient in solution or suspension through a micro-fine opening in the needle-free syringe. The opening is approximately half the diameter of a 30-gauge needle. The Vision/Tjet is primarily used in the United States, Europe, Asia and Japan. Antares has designed disposable, pressure assisted auto injector devices to address acute medical needs, such as allergic reactions, migraine headaches, acute pain, emesis and other daily therapies. Its Vibex disposable product combines a low-energy, spr! ing-based! power source with a hidden needle, which delivers up to 0.5ml of the needed drug solution subcutaneously or intramuscularly. Antares is also developing a Vibex MTX auto injector for delivery of methotrexate for treatment of rheumatoid arthritis. The Company�� multi use, disposable pen injector complements its portfolio of single-use pressure assisted auto injector devices. The disposable pen injector device is designed to deliver drugs by injection through needles from multi- dose cartridges. The disposable pen is in the stage of development where devices are being used in clinical evaluations. Transdermal Products The Company�� ATD system penetrates the skin to deliver a variety of treatments. The gels consist of a hydro-alcoholic base, including a combination of permeation enhancers. Products being developed/ commercialized include Anturol, Elestrin and Nestragel. Elestrin is a transdermal estradiol gel for the treatment of moderate-to-severe vasomotor symptoms associated with menopause. Its other injectable drugs that are presently self-administered and may be suitable for injection with its systems include therapies for the prevention of blood clots and treatments for multiple sclerosis, migraine headaches, inflammatory diseases, impotence, infertility, acquired immune deficiency symdrome (AIDS) and hepatitis. The Company competes with Ypsomed AG, SHL Group AB, OwenMumford Ltd., West Pharmaceuticals, Becton Dickinson, Haselmeir GmbH, Elcam Medical, Vetter Pharma, Bioject Medical Technologies Inc., The Medical House PLC, Watson, Abbott, Eli Lilly, Auxillium, Inc., Endo Pharmaceuticals, Teva, Mylan, Roxane, Bedford Labs, APP Pharmaceuticals, Hospira, Pfizer, GSK/Astellas, Warner Chilcott and Allergan. Advisors' Opinion: [By Luke Jacobi] Antares Pharma (NASDAQ: ATRS) added 6.65 percent to close at $4.33 following the announcement that an FDA decision is expected on its drug on October 14. Equities Best Medical Companies To Invest In 2014: Applied Nanotech Holdings Inc (APNT) Applied Nanotech Holdings, Inc., incorporated on May 22, 1989, is engaged in nanotechnology research and development business. The Company's nanotechnology research involves performing contract research and development services for others to develop products and materials for new applications, and then leveraging this research by applying it to other similar applications in other industries. The Company also develops intellectual property (IP) around its products and technologies. The Company develops five technology platforms: nanosensor technology; nanocomposites, based on carbon nanotube composites; thermal management materials; nanoelectronics applications, and electron emission activities, primarily in the display area. The Company's electron emission IP is divided into display activities and non-display activities. Applied Nanotech Holdings, Inc. is the parent company. Applied Nanotech, Inc. (ANI) is a subsidiary of ANHI. During the year ended December 31, 2012, the Company formed EZDiagnostix, Inc., (EZDX). Sensors The Company develops sensors based on ion mobility sensor technology and differential mobility spectroscopy. The Company is involved in projects to develop Mercaptan and Methane sensors for uses in the natural gas industry. The Company is also applying this technology to other applications, including agricultural pathology, wound care, and breath analysis. The Company develops hydrogen sensor for use in the measurement of hydrogen in power transformer products. The Company develops carbon monoxide sensor that can last for 10,000 hours on a single battery. The Company's carbon nanotube technology is for use in biosensors. Sensors based on carbon nanotubes or other nanomaterials can be used to detect chemical, organic, or biological warfare agents, as well as explosives, hydrogen, ammonia and numerous other chemicals. Nanocomposites The Company is in the advanced stages of development of nanomaterials using carbon nanotube (CNT) and! other composites. Epoxies are used in industries with worldwide markets, with applications, including adhesives, paints, coatings, and composites. In addition to epoxy resins, the Company develops other types of resins, including polyesters and vinyl esters. Vinyl esters are used in a variety of industrial applications, including storage tanks, piping, and construction. The Company develops a process for coating nylon pellets with CNTs to improves electrical conductivity. Nylon 6 with improved electrical conductivity can be used for its anti-static qualities, electrostatic discharge, and electromagnetic/RF shielding. Thermal Management The Company markets thermal management material called CarbAl. CarbAl provides a passive thermal management solution for temperature control issues that plague electronics manufacturers. CarbAl is a carbon based metal nanocomposite comprised of 80% carbonaceous matrix and a dispersed metal component of 20% aluminum. The Company also develops a simplified version of CarbAl based on graphite. Conductive Inks The Company develops aluminum and silver inks and pastes that is ideal for use in the production of solar cells. The Company also develops aluminum paste that can be used in current solar cell production. The Company competes with Zyvex Performance Materials, GSI Creos, Amroy Europe, Ltd., DuPont and Ferro Advisors' Opinion: [By Anuchit Nguyen] India�� S&P BSE Sensex rose, holding at a three-year high, amid better-than-estimated corporate earnings. Engineering company Larsen & Toubro Ltd. (LT) rallied to a three-month high and Asian Paints Ltd. (APNT) surged about 6 percent after reporting profit that beat forecasts. Best Medical Companies To Invest In 2014: Telik Inc (TELK) Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells. Clinical Product Development TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. ' The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration. TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne. Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma. Preclinical Drug Product Development The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected. The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth. Best Medical Companies To Invest In 2014: Zynex Inc (ZYXI) Zynex, Inc. operates under three primary business segments: Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions. Zynex Medical engineers, manufactures, markets and sells its design of electrotherapy medical devices used for pain management and rehabilitation. Zynex Medical�� product lines are cleared by the United States Food and Drug Administration (FDA) and sold worldwide. Zynex NeuroDiagnostics, sells the Company's NeuroMove device designed to help stroke and spinal cord injury patients and is seeking opportunities into markets for electromyogram (EMG), electroencephalogram (EEG), sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. As of January 30, 2012, Zynex Monitoring Solutions was in the development-stage and was established to develop and market medical devices for non-invasive cardiac monitoring. In February 2012, the Company announced the creation of a European wholly owned subsidiary in Denmark. In June 2012, the Company acquired ZYNEX.com Internet domain. The Company�� products include TruWave TENS, ValuTENS II, IF8100 Interferential Current, E-Wave Muscle Stimulator, NeuroMove NM900, PGS-123 Pulsed-Galvanic Stimulator, NuTrac Pelvator, Knapp Knee Brace and ValuTENS III. TruWave TENS is used for management and symptomatic relief of chronic intractable pain, post-traumatic and post-surgical Pain. ValuTENS II is used for the indications of chronic and acute pain symptoms and post-operative pain. IF8100 Interferential Current is used for symptomatic relief of chronic intractable pain, post-traumatic and post-surgical pain. E-Wave Muscle Stimulator is used for muscle re-education, prevention or retardation of disuse atrophy, increasing local blood circulation, maintaining or increasing range of motion and relaxation of muscle spasms. NeuroMove NM900 is used for stroke rehab by muscle re-education, relaxation of muscle spasms, prevention of retardation of disuse atrophy, increase local blo! od circulation, muscle re-education and maintaining range of motion. PGS-123 Pulsed-Galvanic Stimulator is used for muscle re-education, prevention of retardation of disuse atrophy, increase local blood circulation, maintain or increase range of motion and relaxation of muscle spasms. NuTrac Pelvator - Pelvic Floor Stimulator provides electrical stimulation and neuromuscular re-education for the purpose of rehabilitation of weak pelvic floor muscles for the treatment of stress, urge and mix urinary incontinence in women. ValuTENS III is used for chronic and acute pain symptoms and post-operative pain. Knapp Knee Brace is used for the indications of MCL and LCL Sprains, pre and post-op care of meniscus injuries, mild to moderate ACL and PCL Sprains and general knee instability. Best Medical Companies To Invest In 2014: Quintiles Transnational Holdings Inc (Q) Quintiles Transnational Holdings Inc. is a provider of biopharmaceutical development services and commercial outsourcing services. The Company operates in two segments: Product Development and Integrated Healthcare Services. The Company�� Product Development segment operates as a contract research organization (CRO) focused primarily on Phase II-IV clinical trials and associated laboratory and analytical activities. The Company�� Integrated Healthcare Services segment is a global commercial pharmaceutical sales and service organizations and Integrated Healthcare Services provides a range of services, including commercial services, such as providing contract pharmaceutical sales forces in geographic markets, as well as healthcare business services for the healthcare sector, such as outcome-based and payer and provider services. In August 2012, it acquired Expression Analysis, Inc. Product Development Product Development provides services and that allow biopharmaceutical companies to outsource the clinical development process from first in man trials to post-launch monitoring. The Company�� service offering provides the support and functional necessary at each stage of development, as well as the systems and analytical capabilities. Product Development consists of clinical solutions and services and consulting. Clinical solutions and services provides services necessary to develop biopharmaceutical products, including project management and clinical monitoring functions for conducting multi-site trials (generally Phase II-IV) (core clinical) and clinical trial support services that improve clinical trial decision making and include global laboratories, data management, biostatistical, safety and pharmacovigilance, and early clinical development trials, and strategic planning and design services that improve decisions and performance. Consulting provides strategy and management consulting services based on life science and advanced analytics, as well as regulatory and comp! liance consulting services. The Company competes with Covance, Inc., Pharmaceutical Product Development, Inc., PAREXEL International Corporation, ICON plc, inVentiv Health, Inc. (inVentive), INC Research and PRA International. Integrated Healthcare Services Integrated Healthcare Services provides the healthcare industry with both geographic presence and commercial capabilities. The Company�� commercialization services are designed to accelerate the commercial of biopharmaceutical and other health-related products. Service offerings include commercial services (sales representatives, strategy, marketing communications and other areas related to commercialization), outcome research (drug therapy analysis, real-world research and evidence-based medicine, including research studies to prove a drug�� value) and payer and provider services comparative and cost-effectiveness research capabilities, clinical management analytics, decision support services, medication adherence and health outcome optimization services, and Web-based systems for measuring quality improvement. The Company competes with inVentiv, PDI, Inc., Publicis Selling Solutions, United Drug plc, EPS Corporation and CMIC HOLDINGS Co., Ltd. Best Medical Companies To Invest In 2014: Non-Invasive Monitoring Systems Inc (NIMU) Non-Invasive Monitoring Systems, Inc. (NIMS), incorporated on July 16, 1980, along with its subsidiaries, is engaged in the research, development, manufacturing and marketing of a line of motorized, non-invasive, whole body, periodic acceleration platforms, which are intended as aids to increase local circulation and temporary relief of minor aches and pains, produce local muscle relaxation and reduce morning stiffness. The Company�� products are derivatives of its original acceleration platform, the AT-101, and are for use in homes, wellness centers and clinics. NIMS is focused on developing and marketing its Exer-Rest line of acceleration therapeutic platforms based upon whole body periodic acceleration (WBPA) technology. The Exer-Rest line of acceleration therapeutic platforms includes the Exer-Rest AT, AT3800 and AT4700 models. In addition, it receives royalty revenue from the sales of non-invasive diagnostic monitoring devices and related software. Whole Body Periodic Acceleration (WBPA) Therapeutic Devices The AT-101 is a device that moves a platform repetitively in a head-to-foot motion at a rapid pace. In January 2005, the Company ceased manufacturing the AT-101. The Exer-Rest AT therapeutic vibrator is based upon the design and concept of the AT-101 therapeutic vibrator, but has the dimensions and appearance of a commercial extra long twin bed. The Exer-Rest AT was manufactured by QTM Incorporated (QTM). The wired hand held controller provides digital values of speed, travel and time rather than analog values of speed and arbitrary force values as in the AT-101. the Company discontinued manufacturing of the Exer-Rest AT in July 2009. The Exer-Rest SL and Exer-Rest TL, which were manufactured by Sing Lin Technology Co., Ltd. (Sing Lin), are next generation versions of the Exer-Rest AT and advance the acceleration therapeutic platform technology. LifeShirt The LifeShirt is a wearable physiological computer that incorporates transducers, ele! ctrodes and sensors into a sleeveless garment. Pulse oximetry is an optional add-on. These sensors transmit vital and physiological signs to a miniaturized, battery-powered, electronic module which saves the raw waveforms and digital data to the compact flash memory of a Personal Digital Assistant (PDA) attached to the LifeShirt. Users of the LifeShirt can enter symptoms (with intensity), mood and medication information directly into the PDA for integration with the physiologic information collected by the LifeShirt garment. Such data are then transmitted from the flash memory to a data collection center that transforms the data into minute-by-minute median trends of over 30 physical and emotional signs of health and disease. In addition, the monitored patient can enter symptoms with intensity, mood, and medication directly into the PDA for integration with the physiologic information collected with the LifeShirt garment. As of July 31, 2009, LifeShirt was not marketed. The LifeShirt was sold by VivoMetrics, but has not been marketed since VivoMetrics ceased operations in July 2009. The Company competes with Power Plate of North America, Vibraflex and CERAGEM International, Inc. 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