Why Triumph Group's Earnings May Not Be So Hot

The Dangerous Denial of Millennials

Millennials, or those born between 1982 and the early 2000s, don't have a lot going for them. They're buried in student debt. A lot of them are unemployed. Raises have been unheard of and job security is a dream.

But one thing millennials have going for them is time.

Most millennials aren't going to retire for another 30 years, at a minimum. Some have half a century or more ahead of them to save. The muscle that compound interest has over these periods is staggering.

So this finding, from a recent Wells Fargo survey, made me cringe: "Half of millennials (49%) say they are confident in their own abilities to earn and save money for their financial future, and more than a quarter (27%) say 'time is on my side for my savings/investments to grow.'"

Only 27% say time is on their side? Even though about half say they'll be able to save for their future?

That's astounding.

Earlier this year, Standard Life asked a group of retirees what their biggest financial regrets were. The No. 1 complaint: "I wish I had saved for retirement earlier."

I won't bore you with statistics on how much you'll benefit from beginning to save in your 20s instead of your 30s. It's huge, and I think most people know it. They get the math.

What I think most millennials are skeptical of is the idea that they'll earn a decent rate of return on their investments. After all, compounding doesn't work if you aren't earning anything. And the last decade has crushed people's return expectations. As economist Russ Roberts put it to me, it's hard to teach your kids about compound interest when they earn half a cent a year on their savings account.

Sure enough, Wells reports: "More than half of millennials (52%) say they are 'not very confident' or 'not at all confident' in the stock market as a place to invest for retirement."

But you know exactly what's going on here: Millennials are taking the performance of the stock market over the last decade and extrapolating it over the next three, four, or five decades.

Which is as irrational as it is predictable. I dug into the historical data to see how the S&P 500 (SNPINDEX: ^GSPC  ) has performed over every 25-year period from 1900 to 1987. Measured on a monthly basis, there are 1,053 of these periods. Here's what I found:

The worst return over all 25-year periods is a gain of 153%. The average (mean) return over all 25-year periods is gain of 1,240%. The median return over all 25-year periods is a gain of 959%.

The worst you did was more than double your money. And this period includes the Great Depression, two world wars, and the interest rate spike of the 1970s.

The fact that we put so much focus on short-term volatility in a market where long-term returns have been so astounding is a giant disservice to investors -- especially to those who have time on their side.

Make the most of the time you have
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Emerging-Market Stocks Decline as Brazil Slumps on S&P

Emerging-market stocks capped the longest weekly slide in a year as Brazilian shares slumped to a 20-month low after the nation's credit outlook was cut by Standard & Poor's. Turkish (XU100) equities trimmed this week's plunge.

Brazil's Ibovespa fell to the lowest level since October 2011, extending a decline from this year's peak to 18 percent, as Petroleo Brasileiro SA drove commodity shares down. Samsung Electronics (005930) Co., the world's largest smartphone maker, tumbled 6.2 percent in Seoul as JPMorgan Chase & Co. cut its profit estimates. Turkish stocks rallied on speculation the worst weekly retreat since 2011 was overdone. Poland's zloty strengthened the most in almost a year versus the euro.

The MSCI Emerging Markets Index lost 0.4 percent to 980.64, extending its weekly drop to 2.8 percent. The gauge fell a fourth week. S&P lowered the outlook on Brazil's BBB rating, which is in line with Mexico's and Russia's, citing concern over sluggish economic growth. Stocks briefly pared losses as data showed employment in America rose more than forecast.

"The emerging markets growth model is coming into question," Burt White, chief investment officer who helps oversee $247 billion at LPL Financial in Boston, said in a phone interview. "What the market is looking at in Brazil is the fact that growth is probably continuing to be not as robust as people thought." The U.S. jobs report was "not too hot, not too cold. It was just what we needed," he said.

Technology shares led losses in a measure of developing-nation stocks among 10 groups, slumping 2 percent. The broad gauge extended this year's drop to 7.1 percent, compared with an 9.8 percent jump in the MSCI World Index.

Emerging ETF

The iShares MSCI Emerging Markets Index exchange-traded fund slid 0.5 percent to $40.69. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, fell 2.1 percent to 24.32.

Brazil's Ibovespa (IBOV) slumped 2.4 percent, extending this week's decline to 3.5 percent. The measure has slumped 15 percent this year amid concern accelerating inflation may curb the economic recovery and the government's interventionist policies will hurt corporate profits. Petrobras, as Petroleo Brasileiro is known, fell 3.2 percent.

Russian shares capped the biggest advance in three weeks led by OAO Mechel, which climbed from a four-year low, as oil rallied for the fourth time in five days. The ruble-based Micex Index added 2.1 percent, the most since May 17.

Turkey's Shares

The Borsa Istanbul Stock Exchange National 100 Index climbed from a six-month low. Prime Minister Recep Tayyip Erdogan said he was ready to listen to the demands of anti-government protesters. The lira strengthened for the first time in three days and bonds gained. Lenders Turkiye Garanti Bankasi AS (GARAN) and Akbank T.A.S. added at least 3.2 percent.

The zloty strengthened from a one-year low reached yesterday as Poland's central bank sold foreign currencies on the market. The rand pared its first weekly gain in five on bets investors in South Africa's renewable-energy program are hedging the costs of importing machinery.

South Korea's benchmark Kospi Index posted the biggest loss in almost a year. Samsung Electronics, the country's most valuable company fell the most since August 2012. The won completed its first weekly gain in five amid a surging yen.

The Shanghai Composite Index fell 1.4 percent as economists forecast data tomorrow will show export growth slowed. The Hang Seng China Enterprises Index dropped an eighth day. China's financial markets will be shut from June 10 to June 12 for the Dragon Boat Festival. The Jakarta Composite index capped the steepest drop in a year. Indian shares fell for a second day as the rupee's drop to a one-year low spurred concerns overseas funds will pare holdings of local shares.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries slid 10 basis points to 309 basis points, according to JPMorgan Chase & Co.'s EMBI Global Diversified Index.

5 of Last Week's Biggest Losers

There's never a shortage of losers in the stock market. Let's take a closer look at five of this past week's biggest sinkers.

Company

June 28

Weekly Loss

BlackBerry  (NASDAQ: BBRY  )	$10.45	24%
Barnes & Noble  (NYSE: BKS  )	$15.96	16%
Kandi Technologies  (NASDAQ: KNDI  )	$5.71	15%
Diana Containerships  (NASDAQ: DCIX  )	$4.32	12%
Applied Micro  (NASDAQ: AMCC  )	$8.80	10%

Source: Barron's.

Let's start with BlackBerry. The smartphone pioneer tumbled on Friday after posting a quarterly loss. Analysts were holding out for a modest profit. 

It gets worse. BlackBerry moved just 100,000 PlayBooks during the quarter, making it unlikely to ever gain traction in the tablet market. BlackBerry also revealed that it shipped just 2.7 million smartphones running its updated BB 10 mobile operating system, a move that indicates it also isn't gaining enough traction in its flagship market.

Barnes & Noble is another company struggling to move tablets. The bookseller will discontinue the Nook Color tablet. Barnes & Noble will continue to sell the Nook e-reader, but clearly the transition from book superstore to consumer electronics has been rocky.

Kandi Technologies kicked off the week defending itself against a recent bearish article. Then the Chinese maker of electric vehicles diluted investors by executing a private placement with two institutional investors in a deal to raise $26.3 million in financing. 

Diana Containerships is shedding some of its cargo. Wells Fargo is downgrading the shipper from "outperform" to "market perform." Wells Fargo is also lowering its price target range to between $5 and $6. It was previously as high as $9.

Finally, we have Applied Micro taking a hit after its CFO announced his retirement. The market doesn't like when bean counters go away for any reason. Even an upbeat Raymond James analyst note -- suggesting that investors look beyond Applied Micro's CFO leaving -- failed to reverse the slide.

Ready for a bounce
If you owned some of these losers, how about following the smart money into winners?

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Are Mortgage REITs Bribing Investors to Stay?

The recent gyrations in the mortgage REIT sector have knocked down even big players like Annaly Capital (NYSE: NLY  ) and American Capital Mortgage (NASDAQ: AGNC  ) , leaving them bruised and battered as investors flee the once-lucrative trusts for something a little less volatile. Annaly has just been downgraded to Underperform by Sterne Agee, and American Capital Mortgage's Gary Kain was forced to admit that his agency-only trust will experience another drop in book value for the second quarter, after saying earlier that book value was rebounding.

Fighting back
The mREITs aren't taking this new reality lying down. Several trusts have recently declared dividends that are unchanged from the previous payout period, despite the recent bloodbath. Is this just a desperate bid to hang onto investors, or do these companies have confidence that this storm will pass, leaving them no worse for wear?

In a show of bravado, several mREITs have declared dividends within the past week, with nary a decrease in sight. Capstead Mortgage (NYSE: CMO  ) just announced the continuation of its $0.31 per share quarterly dividend, which was upped from $0.30 just this past March. CYS Investments (NYSE: CYS  ) revealed its intention to raise its own quarterly payout to $0.34 from $0.32 per share earlier this week, and Armour Residential (NYSE: ARR  ) has joined in, keeping its monthly $0.07 per share dividend firmly in place, even into the third quarter.

All these positive vibrations seem to be doing the trick, lifting the sector out of the doldrums, at least momentarily. But, mREITs want more than just a temporary reprieve, and managers have been using public relations opportunities to talk up their businesses and allay investor fears.

Agency-only mREITs especially vulnerable
All mortgage REITs have taken it on the chin lately, but agency players like American Capital Agency and Armour Residential have been stung especially hard. In a recent article in the Financial Times, Armour co-CEO Scott Ulm notes that many investors don't have a firm grasp of how the industry works. He points out that, despite the upheaval in the sector of late, new opportunities for investment are presenting themselves, as prices drop and mortgage bonds become more of a bargain.

Likewise, American Capital Agency CIO Gary Kain spoke to investors at the Morgan Stanley Financials Conference this week, radiating a positive attitude about the mortgage-backed securities market, even in the face of a QE3 tapering or exit.

Noting that a slow exit would still likely entail another $350 to $450 billion of MBS purchases on the part of the Federal Reserve, Kain also pointed out that MBS issuance is steadily declining, as well. In addition, wider spreads, lower MBS pricing and higher yields will probably prompt banks and funds to jump back into the game, entities that Kain feels have backed off over the past few months in the face of a daunting Fed presence in the MBS market.

How has all this pushing back by mREITs been working out? Pretty well, it seems. The sector is lit up nice and green so far today, and I think all of the positivity has had the desired effect. The big question is, of course: Can they keep it up?

There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!

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More Expert Advice from The Motley Fool

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Why IMAX Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX (NYSE: IMAX  ) has earned a respected four-star ranking.

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

IMAX facts

Headquarters (founded)	Mississauga, Canada (1967)
Market Cap	$1.6 billion
Industry	Movies and entertainment
Trailing-12-Month Revenue	$277.5 million
Management	CEO Richard Gelfond (since 2009) CFO Joseph Sparacio (since 2007)
Return on Equity (average, past 3 years)	30%
Cash/Debt	$15.2 million/$18.0 million
Competitors	AMC Entertainment RealD Regal Entertainment

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,692 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.   

Just last month, one of those bulls, TMFInnovator, succinctly summed up the bull case for our community:

- Great brand recognition, which is redefining the way that movies are watched. This allows theaters to charge higher prices for IMAX showings.
-Those higher prices are shared with IMAX through Revenue-sharing agreements. They signed deals with 25 new theaters in Q1 alone, with a large part of their expansion coming internationally (China, Indonesia). This business model provides much higher margins to IMAX than simply installing the equipment.
-Backlog of 283 theater systems. There is still plenty of demand for the IMAX experience.

This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table. And why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!

Top Solar Stocks To Invest In 2014

First Solar (NASDAQ: FSLR  ) didn't knock anyone's socks off with first-quarter earnings and today investors are punishing the stock. Revenue of $755.2 million was ahead of the $725 million estimate from Wall Street but $0.69 per share in earnings was below the $0.75 estimate and investors sold in bulk this morning.

To be fair, First Solar did reiterate 2013 guidance it gave in April�so the thesis hasn't changed overnight. At the time, it didn't give quarterly guidance so analysts just got the timing of earnings wrong. I don't think the miss is worth the 10% drop we're seeing in the stock today, but I also thought the euphoria after guidance in April was overdone as well.

A look into the numbers
There are three things I want to highlight from last night's earnings report. First, backlog dropped another 100 MW during the quarter from 2.6 GW to 2.5 GW. Since First Solar is a systems driven business this is key and doesn't give investors confidence in future earnings. Management did say it has another 5.5 GW of projects in development but they're not booked and backlog is shrinking every quarter, not a good sign for a company that counts on systems.

Top Solar Stocks To Invest In 2014: Mencast Holdings Ltd. (5NF.SI)

Mencast Holdings Ltd, an investment holding company, engages in the manufacture, supply, refurbishment, and reconditioning of sterngear equipment. The company's product portfolio comprises propellers, propeller shafts, stern rollers, rudders and rudder stocks, kort nozzles, and marine bearings and bronze sleeves. It also provides various services that include grinding, pitch checking, polishing, static and dynamic balancing, and final inspection; re-pitching of propellers; blue-fitting of keyless propellers, rudder pintle, and rudder stock; casting of replacement tips for damaged propellers; inspection of propellers and analysis of performance; shaft measurement for concentricity, bending, and re sleeving of tail shafts; welding services comprising dredging bucket repair, rudder stock repair, stainless cladding, and roller sheave; general machining services consisting of turning, milling, boring and shaping; and machining of marine bearings. In addition, Mencast Holdings e ngages in the manufacture of marine parts and equipment; and construction and repair of engines, boilers, and machinery. It offers its products and services to the marine and offshore oil and gas industries in Singapore, Malaysia, Brunei, China, Indonesia, the Philippines, Hong Kong, India, Sri Lanka, Maldives, Australia, Europe, the Middle East, and the United States. The company was founded in 1981 and is based in Singapore.

Top Solar Stocks To Invest In 2014: Yangarra Resources Ltd (YGR.V)

Yangarra Resources Ltd., a junior oil and gas company, engages in the exploration, development, and production of resource properties in Western Canada. It has interests in oil and gas properties located in Central Alberta, Medicine Hat, Jaslan, and Viking areas in Alberta. The company also owns approximately 107,536 gross acres of undeveloped land. Yangarra Resources Ltd. is headquartered in Calgary, Canada.

Top Supermarket Stocks To Watch Right Now: Ameris Bancorp(ABCB)

Ameris Bancorp operates as the bank holding company for the Ameris Bank, which provides a range of banking products and services to retail and commercial customers in Georgia, Alabama, Florida, and South Carolina. The company engages in generating deposits and originating loans. Its deposit products and services primarily include commercial and retail checking accounts, regular interest-bearing savings accounts, money market accounts, individual retirement accounts, certificates of deposit, and time deposits. The company?s loan portfolio comprises commercial real estate loans for acquisition, development, or construction of commercial properties; residential real estate mortgage loans; and agricultural financing for crop production, and the purchase of farm-related equipment or farmland, as well as the operations of dairies, poultry producers, livestock, and timber growers. Its loan portfolio also includes commercial and industrial loans to manufacturers, wholesalers and retailers of goods, service companies, and other industries for the acquisition, expansion, and working capital purposes; and consumer loans, such as motor vehicle, home improvement, home equity, and student and signature loans, as well as small personal credit lines. As of March 31, 2011, Ameris Bancorp operated 59 domestic banking offices. The company was founded in 1971 and is headquartered in Moultrie, Georgia.

The Best $500 Billion the United States Has Ever Spent

On this day in economic and business history ...

The Interstate Highway System was created on June 29, 1956, when President Dwight Eisenhower signed the Federal Aid Highway Act into law. Few laws on the books in the United States have the same profound day-to-day impact on the lives of everyone in the country. To understand why, let's take a look at what U.S. was like before the Interstate Highway System, and what it became later as highways connected the nation.

Eisenhower's long-standing interest in an efficient road network had early roots. As a young lieutenant colonel, Ike took part in a transcontinental military convoy from Washington, D.C., to San Francisco. It took the convoy two months to cross the country, averaging less than 60 miles per day. Nine of the convoy's trucks were destroyed by poor road conditions. America's first major road-building project, the Federal-Aid Road Highway Act -- the Interstate Highway's immediate predecessor -- had just been completed, but its $500,000 expenditure (equal to less than $7 million today) had only paved another 13 miles of the nation's roadways. Not much of a project, really.

Source: Blanche Espy Chenoweth Papers via University of Houston, taken 1915.

During the Roaring '20s, the automobile caught on in a big way, but even at the end of this period of great prosperity there were fewer than 400,000 miles of paved road, and it still took two weeks to drive across the country going all out. Only half of America's roads were paved after the close of World War II, and shortly before Eisenhower took office the nation had 1.7 million miles of surfaced roads. That isn't the same thing as a paved road -- putting gravel on top of dirt would qualify as "surfacing" it. However, the nation was making progress. President Harry Truman had enacted a $25 million interstate highway funding project in 1952, which made some improvements to (or built anew) about 6,400 miles of existing roadway by the time Eisenhower's term began. At this point, only a quarter of American roadways were thought capable of handling the growth of traffic that might occur by the 1970s.

Eisenhower resumed his push for a highway megaproject after handling the drawdown of the Korean War and pushed his goal through by pledging that federal funds would account for 90% of the costs -- to be paid with bond issues and recouped from gas taxes. The act's $33.5 billion outlay, equal to about $290 billion today, would be put toward building 41,000 miles of roads to link nearly every city in the country with a population of more than 50,000 people. As Secretary of Commerce Sinclair Weeks allocated the first $1.1 billion in funds to the states, he called it "the greatest public-works program in the history of the world." The results of that program (and its ultimate cost) make it difficult to argue with Weeks' claim.

Source: Ed Schipul via Flickr.

By 1960, more than 10,000 miles of the interstate highway system had been completed. That year, there were 2.3 million miles of unpaved roads across the United States, but only 1.2 million miles of paved roads. By then, America's suburban sprawl had already begun -- from 1950 to 1960, the U.S. saw the first decline in the percentage of people living in city centers (from 32.8% to 32.3%), but its percentage of suburban dwellers grew from 23.3% to 30.9% of the population. The United States had 74 million registered vehicles on the roads in 1960, an increase of 20 million over the previous decade.

The original program was completed in 35 years, but it was extended in later years to cover more than 47,000 miles. At the 50th anniversary of its creation, the interstate highway system's total cost was estimated at $425 billion (nearly $500 billion today), but the American Highway Users Alliance estimates that this project has produced more than $6 in economic benefit for every $1 of construction expense. By that point, the ratio of paved and unpaved roads had flipped, and the United States had 2.7 million miles of paved road, compared with 1.32 million miles of unpaved roads. The growth of the interstate highway system thus resulted in the addition of approximately 1.5 million miles of other paved roads to the national infrastructure. Driving across all of these new paved roads would be equal to more than three round trips to the moon and back.

There were 240 million registered vehicles in the U.S. after five decades of interstate highway construction. Suburban populations, which now make up more than half of the entire national population, have grown by more than 100 million people since the interstate highway system began. This national suburbanization has had enormous effects on the American economy.

Source: User Minesweeper on Wikipedia Commons.

In 1960, seven of the 10 largest American companies (by revenue) were either automakers or oil producers. The largest pure consumer-goods company, Kraft (NASDAQ: KRFT  ) , made only 15% as much revenue as the largest company, General Motors (NYSE: GM  ) . The list of leading companies reads like a web of automotive interconnections: automakers, parts suppliers, steelmakers, tire manufacturers, oil refiners, and paint and plastics makers. Not one of the 100 largest companies in America was a retailer.

Five decades later, things were a bit different. Three oil producers and one automaker still placed among the top 10 American companies. Now, however, GM doesn't lead the pack: Wal-Mart (NYSE: WMT  ) sits at the top, earning more than $100 billion more in annual revenue than the largest oil company. Insurers and financial companies had come into their own to finance and protect America's widely dispersed consumer culture -- five of the top 25 American companies are part of the finance industry. Wal-Mart also had plenty of company, as 14 of America's 100 largest companies were retailers -- including one online-only retailer, a concept that would be impossible without a vast network of paved roads for delivery services.

Real (adjusted for inflation) GDP per capita more than doubled in the U.S. from 1960 to 2010. The country also enjoyed a period of strong stock market growth to go with its economic boom. Despite enduring a couple of rather terrible recessions, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) gained 5.7% a year from 1960 to 2010. The Dow, like the national economy, also underwent some rather notable changes to reflect America's changing balance of corporate power. Wal-Mart is, of course, part of the index now, along with Home Depot (NYSE: HD  ) , which has become the bellwether of America's suburban housing health. Two insurers and three financial companies have also earned a place on the Dow, replacing the three automakers and two steelmakers that were once among the index's most closely watched components in 1960.

You might very well be reading this article at a suburban home, office, or shopping center somewhere in America. If so, Dwight Eisenhower's foresight deserves some credit for the infrastructure that made it possible.

The U.S. government has piled on more than $10 trillion of new debt since 2000, and very little of that amount has gone toward building the sort of grand infrastructure projects we might need to secure a new future. Annual deficits topped $1 trillion after the financial crisis, and millions of Americans have asked: What the heck is going on? The Motley Fool's new free report "Everything You Need to Know About the National Debt" will walk you through with step-by-step explanations about government spending, where tax revenue is coming from, the future of spending, and what a $16 trillion debt means for our future. Click here to read the full report!

An Unobvious Play on Rising Ethanol RIN Prices

What a crazy year this has been for ethanol producers and the refiners responsible for blending it into gasoline. After barely hovering above zero for much of the past few years, ethanol renewable identification numbers, or RINs, shot up to $1.00 per gallon in mid-February before pulling back to half of that in March. Even Valero (NYSE: VLO  ) , a major refiner and ethanol producer, had sharp words criticizing the volatility. What the heck happened?

RINs are created with each lot of biofuels produced and act as a way for the industry to track production. They are normally sold with the corresponding amount of biofuels, but can be sold on secondary markets without a physical volume to back it up. Speculation by third parties and fear of running into the 10% ethanol blend wall in 2013 and 2014 caused prices to spike. The volatility may continue for the medium term, but investors may be able to find solace in the country's leading biodiesel producer Renewable Energy Group (NASDAQ: REGI  ) . Fool contributor Maxx Chatsko explains why in the following video.

If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For FREE access to this special report, simply click here now.

With Apple Back Near Lows, Should You Buy?

It had appeared that Apple (NASDAQ: AAPL  ) had bottomed out in April after hitting $385 just days before earnings. When the company reported its most recent figures, it took time for investors to digest the new information since Apple made a shockingly large increase to its capital return program and also said it would be partially be funding it with debt.

Shares rallied as high as $465 over the following weeks, a gain of 21% from those lows, as investors seemingly began to appreciate the $50 billion in additional planned share repurchases that Apple would be making through 2015.

However, Apple has now given up nearly all of those gains since then and traded below $389 this morning -- just a few dollars away from tapping a fresh 52-week low.

With shares revisiting those lows, let's revisit Apple's dirt-cheap valuation.

Apple's earnings multiple is now back into single-digit territory, trading at just 9.3 times earnings. For reference, the broader S&P 500 is currently trading at 18.6 times earnings. Backing out the $154 per share in net cash on the books brings that figure down to 5.7 times earnings ex-cash.

Speaking of Apple's immense cash position: the growing money mountain is a key reason why Google (NASDAQ: GOOG  ) just surpassed Apple in enterprise value. If we include other metrics like enterprise value-to-EBITDA and price-to-free-cash-flow, Apple looks even cheaper relative to the search giant.

Company

EV/EBITDA (TTM)

P/E (TTM)

P/FCF (TTM)

Apple	6.1	9.3	9.5
Google	14.8	26.1	22.9

Sources: Yahoo! Finance and Reuters. TTM = trailing 12 months.

However, there's something to be said about the growth deceleration that Apple is facing. Last quarter, Google's revenue growth of 31% outpaced Apple's 11% gain up top.

It turns out that Apple's primary hardware rival Samsung also trades at cheap multiples. The South Korean conglomerate is currently trading at eight times earnings and 9.9 times free cash flow. It seems that the investor pessimism is more about the high-end smartphone market that's becoming saturated, while the low-end to mid-range segments are where the growth is now coming from. Google is able to escape this pessimism in part because smartphones aren't its core business.

But with rock-bottom prices, investors are effectively ignoring the possibility of Apple entering new product categories and market segments. Even though Apple's smartphone business is maturing, the company is getting much less respect than other mature tech giants. On a P/E basis, Microsoft is nearly twice as expensive as Apple, despite Windows 8's cold reception.

Apple still has "game changers" up its sleeve. When it decides to launch into these new markets, investors will regret not giving the Mac maker more respect.

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

Why the Chevy Spark Is a Surprise Hit for GM

Coach Names New Executive Creative Director

Luxury accessory retailer Coach (NYSE: COH  ) has appointed Stuart Vevers as its new executive creative director, responsible for leading all creative aspects of the Coach brand, including women's and men's design, brand imagery, and store environments, the company announced this week.

Vevers had held the role of creative director at online boutique Loewe since 2008, and served in the same position for English fashion retailer Mulberry from 2005 to 2008. Vevers will report to Victor Luis, Coach's president and chief commercial officer, and he succeeds Coach's former creative director, Reed Krakoff, who has left the company in order to focus more closely on his namesake brand.

Luis was quoted as saying Vevers' previous experience working for a number of high-end retailers will "enable him to draw upon Coach's rich history to create innovative product and brand imagery, elevating the customer experience and creating a fuller expression of the brand."

link

Hot Japanese Companies To Watch In Right Now

WARSAW, Poland (AP) -- Boeing (NYSE: BA  ) will offer compensation to Poland's national airline for the months-long grounding of its 787 planes, a Polish government official said Monday.

The world's fleet of 50 Boeing 787s was grounded in January after batteries smoldered on two planes owned by two Japanese airlines. Two of the grounded planes were owned by Poland's LOT airline. They have all resumed flying since Boeing fitted all 787s with redesigned batteries.

Deputy Treasury Minister Rafal Baniak said that the grounding of LOT's planes, which lasted until June, had cost more than 100 million zlotys ($ 30 million) in lost business alone. Among other costs, LOT had to extend the lease on its 767s to carry out scheduled flights.

Talking to Radio PiN, Baniak would not estimate the total cost of the grounding, but said Boeing promised to make a compensation offer in July.

Hot Japanese Companies To Watch In Right Now: Seven Group Holdings Limited(SVW.AX)

Seven Group Holdings Limited, through its subsidiaries, engages in the media and broadcasting, newspaper and magazine publishing, heavy equipment sales and service, equipment hire, and online businesses in Australia and China. The company operates as a Caterpillar dealer, which provides heavy equipment sales and support services to customers in Western Australia, New South Wales, and the Australian Capital Territory. It is also involved in the manufacture, assembly, sale, and support of lighting, power generation, and dewatering equipment; and rental of equipment, as well as distribution of Perkins engines. In addition, it engages in the operations of broadband, telephony, and other listed investments and properties. The company was formerly known as Seven Network Limited and changed its name to Seven Group Holdings Limited in April 2010, as a result of merger with WesTrac Holdings Pty Limited. Seven Group Holdings Limited is headquartered in Pyrmont, Australia.

Hot Japanese Companies To Watch In Right Now: Sinclair Broadcast Group Inc.(SBGI)

Sinclair Broadcast Group, Inc., a television broadcasting company, owns or provides certain programming, operating, or sales services to television stations in the United States. The company broadcasts free over-the-air programming, such as network provided programs, news produced locally, local sporting events, programming from program service arrangements, and syndicated entertainment programs. It owns or provides programming and operating services pursuant to local marketing agreements, or provides sales services pursuant to outsourcing agreements to 58 television stations in 35 markets. The company was founded in 1952 and is based in Hunt Valley, Maryland.

Advisors' Opinion:

• [By Jeff Reeves]

  Sinclair Broadcast Group (NASDAQ: SBGI) is a television station owner that serves 35 markets across the United States.

  Current Yield: 4.8% (48 cents a share annually)

  Dividend History: After cutting its dividend of 20 cents a share in 2009, Sinclair reinstated its dividend in February at 12 cents. That’s down from pre-recession levels, but much better than the zero cents it was paying a year ago.

  Dividend Outlook: According to Bloomberg, Sinclair Broadcasting has a three-year expected dividend growth rate of 8.3%.

  Recent Performance: Thanks in large part to a pop after its dividend announcement, SGBI shares are up over 22% so far in 2011. But Sinclair was going strong before that, too, tallying gains of 40% in across the past 12 months.

  Strong Outlook for Shares: Fiscal 2010 revenue topped pre-recession levels, and after a few shortfalls in the depths of the recession Sinclair has seen five straight quarterly profits. Advertisers are starting to return to the airwaves once more, and that means Sinclair could have momentum on its side now that it is back in favor with dividend investors.

Top Retail Companies For 2014: Axmin Inc. (AXM.V)

AXMIN Inc. engages in the exploration and development of mineral properties primarily in central and west Africa. It primarily explores for gold, copper, nickel, and cobalt ores. The company�s principal asset includes the Passendro gold project comprising 2 exploration licenses covering approximately 1,240 square kilometers located in the northwest trending Archaean Bambari-Bandas granite-greenstone belt. It also holds interests in exploration projects located in the Central African Republic, Mozambique, and Senegal. AXMIN Inc. is headquartered in Toronto, Canada.

Hot Japanese Companies To Watch In Right Now: Comstock Homebuilding Companies Inc.(CHCI)

Comstock Homebuilding Companies, Inc. operates as a real estate development company in the United States. The company builds single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums, and residential and commercial mixed-use developments. It serves first-time, early move-up, and secondary move-up buyers located primarily in Washington, D.C. The company also provides a range of construction management and general contracting services in aspects, such as strategic planning, land development, entitlement, property management, sales and marketing, workout and turnaround strategies, and general construction to other property owners. As of December 31, 2010, it built and delivered approximately 5,200 homes. The company was formerly known as Comstock Companies, Inc. and changed its name to Comstock Homebuilding Companies, Inc. in June 2004. Comstock Homebuilding Companies, Inc. was founded in 1985 and is headquartered in Reston, Virginia.

Hot Japanese Companies To Watch In Right Now: Armarda Group Limited (5EK.SI)

Armarda Group Limited, an investment holding company, provides information technology (IT) professional services to the banking and financial services industry in the People�s Republic of China, Singapore, and Hong Kong. Its IT consulting services business provides IT strategy review and formulation, IT infrastructure architecture, and technology integration. The company�s consulting service includes core banking system construction and technical consulting, project management, test management, banking business work flow transformation consulting, overall consulting of banking system planning, and banking project of process management and business application. Its Application Service business involves in the planning and implementation of banking financial system, which is based on Oracle EBS Financial solution; banking management accounting system based on Oracle OFSA solution; banking plan and budget management system based on Oracle EPB solution; banking auditing syst em based on CaseWare IDEA solution; and human resource management system. In addition, the company involves in the trading of IT equipment and RFID chips. The company was founded in 2001 and is headquartered in Singapore, Singapore.

Hot Japanese Companies To Watch In Right Now: The Management Network Group Inc.(TMNG)

The Management Network Group, Inc., a management consulting company, provides professional services to the converging communications, media and entertainment industries, and the capital formation firms in the United States, the United Kingdom, and western Europe. It offers strategy and business case development services comprising business case development, data and content strategies, marketing spending optimization, service and brand diversification, enterprise and small business strategies, technology commercialization, and operational strategies; and knowledge management solutions to solve problems associated with knowledge creation and distribution, sharing and leveraging existing knowledge, tools, and processes. The company also provides a suite of revenue assurance assessment tools, including Ascertain, a revenue management and data integrity toolset that offers evaluation of processes, metrics, and control points. In addition, it provides program management service s; and integrated business and operational processes, supporting technology systems, and Web-centric interfaces in various BSS/OSS applications, as well as offers corporate investment services, such as evaluation of management teams and business plans, identification of strengths and weakness of the company, and analyses of the company?s financial models, systems, products, and operational and business processes. Further, the company provides technical consultancy and software development services for the communications industry, including defining requirements; data analysis; selecting and implementing mediation; provisioning, billing, and inter-operator billing products; interfacing products within a legacy environment; migrating products; data and customers; and planning, managing, and completing systems and software testing, as well as offers marketing services. The Management Network Group, Inc. was founded in 1990 and is headquartered in Overland Park, Kansas.

Should You Add Momenta to Your Portfolio?

Shares of biotech innovator Momenta Pharmaceuticals (NASDAQ: MNTA  ) entered into a nosedive in early June, but quickly recovered after analysts at UBS AG upgraded the stock from "neutral" to "buy." I don't put any faith in analyst projections -- and neither should you -- but I do see value in the company's technology. Momenta has developed a platform for analyzing and characterizing complex molecules that could significantly reduce R&D costs and development times of drugs in the pipeline. If you're an investor looking for a biotech company with boatloads of potential, you may be wondering about adding Momenta to your portfolio. Fool contributor Maxx Chatsko breaks down that decision for investors in the following video.

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Did Rackspace Really Need a New Sales Executive?

Rackspace Hosting (NYSE: RAX  ) made an unexpected move last week when it hired Todd Cione to fill the newly created position of sales chief for the Americas.

It's not that Rackspace couldn't use a shot of adrenaline in the sales arm. The cloud computing leader's sales have lagged behind Street expectations in each of the last two quarters, leading to small but painful misses on the bottom line as well. As a direct result, the stock has missed out on this year's fantastic general market rally, losing about half its value year to date.

And there's nothing wrong with the talent Rackspace placed into this new position. Cione comes with 15 years of experience from highly responsible positions at Microsoft (NASDAQ: MSFT  ) , most recently as chief operating officer of Redmond's Asia/Pacific operations. It's a big-name hire that should result in crisper execution across Rackspace's pan-American sales operations.

But Fool contributor Anders Bylund might have expected this move from a different part of his personal portfolio, namely big data manipulator TIBCO Software (NASDAQ: TIBX  ) . In the video below, Anders explains why the Rackspace announcement took him by surprise -- even if it's probably the right thing to do.

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Is This Billion-Dollar Diabetes Drug Class Doomed?

GM Avoids Inventory Problem With New Silverado

General Motors Headquarters. Photo courtesy of GM.

There's been a lot of hype for General Motors (NYSE: GM  ) and its 2014 Chevy Silverado. No, it won't dazzle you with a flashy new appearance, but don't judge a book by its cover because this truck is vastly improved from its old design – which was seven years old and way overdue for a redesign. This is, hands down, GM's most important launch since its bankruptcy and ensuing bailout, and this truck alone is estimated to bring in the majority of GM's bottom-line profits.

During vehicle launches there are a couple factors that will make or break its success – inventory and recalls. With recent inventory numbers released, it looks like GM has corrected its high inventory between the new and old Silverado models. Here are the details and why it matters.

High stakes game
It is so important for GM to launch as flawlessly as possible because rival Ford's (NYSE: F  ) highly anticipated 2015 F-150 is due out next year. This gives GM a small window of opportunity for its marketing campaign to lure in consumers that remain on the fence about purchasing. GM also looks to be in the perfectly timed position to take advantage of a surging full-size truck segment.

The surging full-size truck segment is no fluke either, nor does it look to be slowing down. Sales have increased at a much more rapid rate than the rest of the industry due to a couple of factors. While the overall age of vehicles on the road is 11 years – a record high – trucks on the road are even older at 13 years. Pent-up demand is being unleashed in the full-size segment, especially as we witness a gradual rebound in housing construction, as well as the continuing energy boom in America. Some analysts are even saying that the popularity of the pickup is back: Improved fuel efficiency is drawing some consumers that don't need to haul anything or use the truck for work back into the showroom.

Everything is primed for GM to steal some market share during its small window of opportunity before the launch of Ford's next-generation F-150, but it could shoot itself in the foot with mismanaged inventory levels.

Information from Automotive News DataCenter.

You can see why investors were worried in April as inventory spiked much higher than competitors' inventory levels. GM has since lowered its inventories and should see another decline next month that will narrow the inventory gap between its competitors. I noted months ago that if GM failed to lower its Silverado inventory, it would begin hurting quickly. Having excess inventory would cause GM to raise its incentives significantly to move its older 2013 models to make room for the new ones, giving bargain shoppers a reason to avoid purchasing a 2014 model. This potential problem was amplified when GM announced that it wouldn't be raising the price of its new and improved 2014 model by even a single dollar.

Reuters reports that CEO Dan Akerson said:

We're in the midst of a huge truck launch right now. We've produced tens of thousands of these new trucks. Initial cut is it's probably our best launch ever. ... I won't tell you that we're going to be flawless, but that's what we're going to strive for.

Bottom line
Of course I'll take a biased statement from Akerson with a grain of salt, but thus far the Silverado launch does appear to be happening smoothly on the inventory side. It is yet to be seen how the new Silverado fares on the quality and recall side of the equation, but if it can pull it off smoothly it will be a huge win for GM and its investors. The pressure will then be on Ford to make sure that its 2015 F-150, which looks to be impressive, has a nearly flawless launch to make up lost ground. Things are heating up between crosstown rivals in the all-important full-size segment; investors would be wise to keep an eye on future developments.

Full-size pickups bring in majority of Ford and GM's profits, but another factor will determine which auto investment will bring huge returns. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free – just click here for instant access.

Here's 1 Reason Simpson Manufacturing Looks Weak

Margins matter. The more Simpson Manufacturing (NYSE: SSD  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Simpson Manufacturing's competitive position could be.

Here's the current margin snapshot for Simpson Manufacturing over the trailing 12 months: Gross margin is 43.3%, while operating margin is 10.0% and net margin is 6.1%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where Simpson Manufacturing has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter (LFQ). You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.

Here's the margin picture for Simpson Manufacturing over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

Here's how the stats break down:

Over the past five years, gross margin peaked at 44.9% and averaged 41.6%. Operating margin peaked at 14.4% and averaged 11.5%. Net margin peaked at 8.4% and averaged 6.0%. TTM gross margin is 43.3%, 170 basis points better than the five-year average. TTM operating margin is 10.0%, 150 basis points worse than the five-year average. TTM net margin is 6.1%, 10 basis points better than the five-year average.

With recent TTM operating margins below historical averages, Simpson Manufacturing has some work to do.

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Add Simpson Manufacturing to My Watchlist.

Hot Blue Chip Stocks To Watch For 2014

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) cranked higher again today, buoyed by the Federal Reserve's comments on its stimulus program and from a strong earnings report by Home Depot (NYSE: HD  ) . The blue chips finished up 0.3%, or 52 points.

Regarding the Fed, investors were warmed by remarks from New York Fed President William Dudley, who said that he wasn't sure whether the Fed would dial down or increase its $85 billion bond-buying program in the coming months due to economic uncertainty. The comments seem to fly against recent murmurs from a number of Fed members that the time to scale back the quantitative was fast approaching. Earlier in the day, James Bullard, the Fed president in St. Louis, said the European Central Bank would do well to follow the Fed's lead and implement a similar stimulus program. The Fed will remain in the spotlight tomorrow as Ben Bernanke speaks before and Congress's Joint Economic Committee, and in the afternoon, the minutes from its latest policy meeting will be released.

Hot Blue Chip Stocks To Watch For 2014: Carrols Restaurant Group Inc.(TAST)

Carrols Restaurant Group, Inc., through its subsidiary, Carrols Corporation, owns and operates quick-casual and quick-service restaurants. It operates restaurants under the Burger King, Pollo Tropical, and Taco Cabana names. As of January 1, 2012, the company owned and operated 547 restaurants, including 298 Burger King, 91 Pollo Tropical and 158 Taco Cabana restaurants in 17 states in the United States. It also franchised 36 restaurants in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, and Venezuela, as well as in college campuses in Florida. The company was formerly known as Carrols Holdings Corporation and changed its name to Carrols Restaurant Group, Inc. in November 2006. Carrols Restaurant Group, Inc. was founded in 1960 and is headquartered in Syracuse, New York.

Hot Blue Chip Stocks To Watch For 2014: Jkx Oil & Gas Plc(JKX.L)

JKX Oil & Gas plc, through its subsidiaries, engages in the exploration, development, and production of oil and gas reserves. It holds interest in Ignatovskoye, Molchanovskoye, Novo-Nikolaevskoye, Rudenkovskoye, Elizavetovskoye, Zaplavskoye, and Chervonoyarske East fields in the Poltava region of Ukraine; and development licenses in Koshekhablskoye gas field that comprises 34.7 sq. km located in Russia. The company also owns interests in B Golitza and B1 Golitza onshore exploration permits covering 3,355sq.km in eastern Bulgaria; in Hernad, Hajdunanas, Nyirseg, Turkeve, and Veszto licenses in Hungary; in West Georgia offshore in Georgia; and 3 exploration licenses in the Carpathian Fold Belt in Slovakia. In addition, it involves in finance and holding; and land leasing activities. JKX Oil & Gas plc is based in London, the United Kingdom.

Top Internet Stocks To Buy For 2014: Sino Grandness Food Ind Gp Ltd (JS5.SI)

Sino Grandness Food Industry Group Limited, an investment holding company, engages in the production and sale of canned vegetables and fruits primarily in Europe, the United States, and the People�s Republic of China. The company offers canned asparagus, canned long beans, canned mushrooms, sweet corn, artichoke, and bamboo shoots; and fruits, such as lychees, pineapples, peaches, apricots, and mandarin oranges. It also provides bottled juices, including mixed-fruit and vegetable-fruit juices. The company sells its products through distributors and retailers. Sino Grandness Food Industry Group Limited was founded in 1997 and is headquartered in Shenzhen, the People�s Republic of China.

It's Official: Bank of America Has the Worst Reputation in the Banking Industry

People hate Bank of America (NYSE: BAC  ) . And they do so with a vehemence typically reserved only for enemies of state.

Over the weekend, we published a surprisingly popular article about recent testimony from former employees of the bank -- I strongly encourage you to check it out and, if nothing else, browse through the comment section. The testimony alleged, among other things, that Bank of America systematically delayed and unjustly denied mortgage modifications under the 2009 Home Affordable Modification Program. As a result, thousands, if not tens of thousands, of people unnecessarily suffered the indignity of losing their homes to foreclosure.

Why would Bank of America do this? According to one of the former employees, "[supervisors] regularly told us that the more we delayed the HAMP modification process, the more fees Bank of America would collect." So there you have it. If you unjustly lost your home to foreclosure courtesy of the nation's second largest bank by assets, at least you can sleep easy knowing that it made money off your misery. Exorbitant executive salaries don't pay themselves, you know.

Hyperbole aside, given this type of behavior, it's no surprise that Bank of America isn't held in very high esteem by either its customers or the public at large. But just how much is its reputation suffering? According to a recent survey by American Banker, it has the worst reputation of every bank that the publication examined.

The following table reveals a partial list of the results. The second and third columns contain the "reputation scores" of the institutions, which are "based on answers to survey questions measuring trust, admiration and respect, good feeling and overall esteem for specific brands."

While this list contains scores for only 10 of the 30 institutions examined, I trust you can get a sense for how things panned out for Bank of America. And to be clear, it was also the worst-performing bank of the entire bunch, not just the 10 above. Not only did it score the worst in terms of its own customers, but its reputation among non-customers was leaps and bounds below the next-worst performer, Citigroup (NYSE: C  ) , which had a non-customer reputation score of 42.38 compared to Bank of America's 35.09.

One consolation here is that all of the too-big-to-fail banks settled at the bottom of the list. Wells Fargo (NYSE: WFC  ) , in particular, was held in only slightly better regard by its own clientele, with a second-worst customer score of 55.75. And JPMorgan Chase (NYSE: JPM  ) , while better, still found itself in the bottom third, with a markedly higher customer score, but one of the worst in the group in terms of how non-customers perceive it.

Regardless, the point here is that this is a problem for Bank of America. And I don't mean that it's a feel-good problem. Yes, it'd be nice for every company to treat the world and their customers in a friendlier manner, but let's be real: That just isn't going to happen. In this case, however, the overwhelming quantity of disdain heaped upon Bank of America is almost certainly having a substantive impact on its performance. And this is why it's time for the bank to get its act together.

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Twin Disc Elects a New CEO

Environmental Groups Lose Their Cool Over Coal

When natural gas prices dipped to multi-year lows in 2012 the future of coal appeared to be in doubt. Although it has remained the nation's top fuel source, it was being squeezed out of the grid at an increasing rate -- falling from 49% in 2007 to 42% in 2011. That change and flooding in Australian mines pushed exports from 5% of production to 10% of production. Environmental groups have cheered the move (even though exported coal is simply burned elsewhere on the globe), but it didn't last long.   

The Sierra Club and the Natural Resources Defense Council have a new reason to despise coal. The two environmental groups became infuriated after an audit revealed that the Bureau of Land Management was shorted by coal companies during land lease auctions. The amount may surprise you. Besides, coal still has an important role to play in American energy. Fool.com contributor Maxx Chatsko explains the folly of this complaint and why coal investors have nothing to fear.

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Top 5 Up And Coming Stocks To Watch For 2014

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of EnerNOC (NASDAQ: ENOC  ) dropped as much as 20% today after the stock was downgraded by an analyst.

So what: Credit Suisse was the culprit today, downgrading the stock from outperform to neutral. For a bit of perspective, the stock was upgraded by Pacific Crest, downgraded by Zacks, and had its price target increased from $17 to $18.50 by JPMorgan all in the month of May. �

Now what: If you need a reason why we at The Motley Fool don't take analyst upgrades and downgrades very seriously, then EnerNOC's price action today is exhibit No. 1. Is the company really worth nearly $100 million less today than it was yesterday? Not to a long-term investor, so I don't think today's move changes the investment thesis, and if you're bullish (which I'm not) this should be viewed as a discount more than a reason to panic today.

Interested in more info on EnerNOC? Add it to your watchlist by clicking here.

Top 5 Up And Coming Stocks To Watch For 2014: MFA Financial Inc (MFA)

MFA Financial, Inc., incorporated on July 24, 1997, is engaged in the business of investing, on a leveraged basis, in residential Agency mortgage-backed securities (MBS) and Non-Agency MBS. Its business objective is to generate net income for distribution to its stockholders resulting from the difference between the interest and other income it earn on its investments and the interest expense it pays on the borrowings, which it uses to finance its leveraged investments and its operating costs. Its operating policies require that at least 50% of its investment portfolio consist of ARM-MBS, which are either Agency MBS or rated in two rating categories by at least one of rating agency, such as Moody�� Investors Services, Inc., Standard & Poor�� Corporation (S&P) or Fitch, Inc. The remainder of its assets may consist of direct or indirect investments in other types of MBS and residential mortgage loans; other mortgage and real estate-related debt and equity; and other yield instruments.

The mortgages collateralizing the Company�� MBS portfolio are Hybrids, ARMs and 15-year fixed-rate mortgages. The Hybrids collateralizing its MBS typically have fixed-rate periods ranging from three to 10 years. Interest rates on the mortgage loans collateralizing its ARM-MBS reset based on specific index rates, which include London Interbank Offered Rate (LIBOR) or the one-year constant maturity treasury (CMT) rate. The mortgages collateralizing its ARM-MBS have interim and lifetime caps on interest rate adjustments. The Company�� Non-Agency MBS have been at discounts to face/par value.

Top 5 Up And Coming Stocks To Watch For 2014: Tiong Woon Corp Holding Ltd (T06.SI)

Tiong Woon Corporation Holding Ltd, an investment holding company, engages in the provision of infrastructure services for the oil and gas, petrochemical, power, and construction industries in Asia and internationally. The company engages in selling and hiring out of cranes, including hydraulic cranes, crawler cranes, rough terrain cranes, lorry cranes, and tower cranes; offers logistics planning and management services; and leases heavy haulage equipment comprising prime movers, low-beds, self-propelled modular trailers, trailers, and tow trucks for the transportation of heavy process equipment, which include modules and structures, as well as provides integrated project engineering services, including heavy lifting, heavy haulage in land, and marine and mechanical equipment installation services. It also offers wharfing and stevedoring services; freight forwarding services; ship building and repair, and ship up-slipping/launching services; refurbishment and upgrading of marine vessels and oil rigs; and process and industrial plant engineering services, as well as engages in the construction of offshore jackets, platforms, subsea manifolds, and pipeline tie-in spools; and construction of topsides modules for FPSO and FSO conversion. In addition, it provides mechanical and infrastructure engineering services and structural works; and trades new and used equipment, such as crawler cranes, mobile cranes, tower cranes, and hydraulic boring rigs, as well as provides spare parts and after sales service. As of June 30, 2012, the company operated approximately 376 cranes and 208 pieces of haulage equipment; and 24 vessels comprising 10 tugboats and 14 barges. Tiong Woon Corporation Holding Ltd was founded in 1978 and is based in Singapore.

Top 5 Healthcare Equipment Stocks To Buy For 2014: Valley National Bancorp(VLY)

Valley National Bancorp operates as the bank holding company for Valley National Bank that provides various commercial, retail, trust, and investment services. The company?s deposit products include savings accounts, negotiable order of withdrawal accounts, money market accounts, time deposits, certificates of deposit, and non-interest-bearing accounts. Its loan portfolio comprises floating and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans; and consumer loans, such as residential mortgage, automobile, home equity, and credit card loans, as well as lines of credit. The company also provides fixed rate investments, trading securities, and federal funds; and international banking services, such as standby letters of credit, documentary letters of credit, and related products, as well as ancillary services. In addition, it offers asset management advisory services that comprise investment services to ind ividuals and small to medium sized businesses; trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration primarily to individuals; brokerage services; and title insurance agency and asset-based lending support services. Further, the company provides property and casualty, life, and health insurance; financing for general aviation aircraft, and servicing for existing commercial equipment leases; health care equipment and other commercial equipment leases; and owns real estate related investments. Valley National Bancorp also offers automated teller machines, telephone and Internet banking, overdraft facilities, drive-in and night deposit services, and safe deposit facilities. As of December 30, 2011, it operated 211 branches in 147 communities serving 16 counties throughout northern and central New Jersey, Manhattan, and Long Island. The company was founded in 1927 and is headquartered in Wayne, New Jersey.

Top 5 Up And Coming Stocks To Watch For 2014: Meritus Minerals Ltd (MER.V)

Meritus Minerals Limited engages in the acquisition, exploration, and development of mineral resource properties in Australia and Mongolia. It primarily focuses on the exploration of gold, copper, zinc, and base-metals. The company�s principal property includes the Gutain Davaa gold project consisting of 2 exploration licenses covering 3,928 hectares located in Mongolia. Meritus Minerals Limited was incorporated in 2005 and is headquartered in Vancouver, Canada.

Top 5 Up And Coming Stocks To Watch For 2014: Aehr Test Systems(AEHR)

Aehr Test Systems designs, engineers, and manufactures test and burn-in equipment for use in the semiconductor industry. The company primarily offers the advanced burn-in and test systems for performing tests during burn-in on logic and memory packaged ICs; the FOX full wafer contact parallel test and burn-in systems for making contact with pads of a wafer simultaneously to enable full wafer parallel test and burn-in; the MAX burn-in systems for burn-in and functionally testing of devices, such as digital signal processors, microprocessors, microcontrollers, and systems-on-a-chip; WaferPak cartridges for use in testing wafers in FOX systems; the DiePak carriers, a reusable, temporary package that enables IC manufacturers to perform final test and burn-in of bare die; and test fixtures, which hold the devices undergoing test or burn-in and electrically connect the devices under test to the system electronics. It also offers customer service and support programs, including s ystem installation, system repair, applications engineering support, spare parts inventories, customer training, and documentation. The company markets and sells its products through a network of distributors and sales representatives to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers, and burn-in and test service companies. It has operations in the United States, Asia, and Europe. The company was founded in 1977 and is headquartered in Fremont, California.

Why a "Monsters U" Hit Is Bad News for Activision Blizzard

Chart: How Many Homes Does PulteGroup Sell?

Sometimes the most important data is the hardest to come by. In this case, I'm referring to historic sales figures from PulteGroup (NYSE: PHM  ) , the nation's second largest homebuilder by units sold. As I noted last week with respect to D.R. Horton's sales volume, while this is the single most accurate reflection of a homebuilder's performance, not to mention the overall housing market, a comprehensive data set containing the figures is nowhere to be found.

This is why I decided to share the chart below. While researching the health of the broader economy, I dug through the quarterly filings of the largest homebuilders. In doing so, I was trying to figure out how well the housing market has recovered. And, at least from the perspective of PulteGroup, it appears that the answer is: not very well. 

Source: Quarterly filings.

There are two reasons investors should care about this. First, if you own shares of PulteGroup, it goes without saying that the more homes it sells, the higher its stock will climb. And second, because PulteGroup is a dominant player in the housing market, its success and/or failure is somewhat indicative of both that industry and the economy more generally. As my colleague Morgan Housel has previously observed, "there hasn't been a strong economy without a strong housing market in modern history." 

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Wall Street Set to Plunge on China News

U.S. stock markets are primed for big losses today following declines in both Asia and Europe. As of 7:15 a.m. EDT, futures for the Dow Jones Industrial Average (DJINDICES: ^DJI  ) suggest that the index will fall 0.86% at the open, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.95% lower.

The Shanghai Composite dropped an incredible 5.3% today as high interbank rates made investors fear a liquidity crunch in the world's second-largest economy. Goldman Sachs also lowered its growth expectations for China from 7.8% to 7.4% in 2013 and from 8.4% to 7.7% in 2014. China has been one of the few economies growing more than a nominal amount over the past five years, so slower growth would have a negative impact on economies worldwide. 

Europe is feeling the pressure from China, and all European stock markets are down 1% or more as of 8:10 a.m. EDT. But not everything in the market is so bearish today.

Companies are still looking for ways to expand, and there are a few acquisitions that should give investors a little hope. Vodafone (NASDAQ: VOD  ) agreed to buy Kabel Deutschland, Germany's largest cable operator, for $10.1 billion in an effort to expand in one of Europe's only healthy economies. Vodafone will expand its TV and fixed-line business and add them to the wireless services it already offers in the country.  

Tenet Healthcare (NYSE: THC  ) has agreed to pay $1.63 billion for Vanguard Health Systems (NYSE: VHS  ) , a 70% premium to Vanguard's close on Friday. The deal will diversify Tenet's offerings in acute care and specialty hospitals and give it a wider geographic reach as well. Tenet is up 8.4% in premarket trading, while Vanguard has skyrocketed 64%. 

Foolish bottom line
It doesn't look like a strong start to the week on Wall Street, and investors should be concerned about slowing growth in China. It's been one of the bright spots in the global economy, and slower growth will put pressure on the U.S. and Europe to pick up the slack or risk another recession.

Long-term investors should keep in mind that the day-to-day fluctuations on Wall Street don't impact the fundamental value of great companies, and a huge gain can come at any time. Vanguard's 70% premium is a prime example of that.

If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

The Fed Is Not On Drugs, But Almost Everybody Else Is

Three weeks ago, the Dow Jones Industrial Average broke above 15,400 and many investors had 16,000 in their sights. The S&P 500 almost hit 1,670 with investors hoping to see 1,700 very soon. Then Ben Bernanke opened his mouth and everyone ran for the exists. Yet there was nothing that Bernanke said that we did not already know. He merely stated the obvious.

Unless you believe in fairy tales, you must have known that the Fed would eventually tighten. Before it could tighten, it would have to end quantitative easing (QE). And before it could end QE, it would have to taper. So what Bernanke said should not have caught anyone by surprise, yet investors reacted to his comments by selling everything. They sold bonds. They sold stocks. They even sold gold. So far this month, the yield on the 10-year Treasury note is up 36 basis points, the Dow is down 2.1%, the S&P is down 2.3%, and gold is down 8.7%.

Many investors are now focused more on what interest rates are doing than on what stock prices are doing. The yield on the closely-watched 10-year Treasury has climbed to 2.52%. I know this is a huge move from the 1.66% level it was at on May 1, but from the way some people are reacting, you would think the world is coming to an end. It's hard to believe they can get so excited about a yield this low. To put things in perspective, the 10-year Treasury was yielding close to 15% in 1982. Somehow, we survived.

Clearly, QE must end before we can get back to normal. Having the Fed purchase $85 billion worth of debt securities every month is not normal. Having a zero percent fed funds rate is not normal. Having a stock market that rallies every month for seven months in a row is not normal. Extremely low levels of volatility are not normal either. Ever since the financial crisis, the government has tried to eliminate risk from the markets. That is not normal. Investing is a risky activity and not everybody can make money all of the time. Until we allow people to lose money again, w! e will not be anywhere near normal.

There are those who have argued that the huge rally in stocks over the past several years was fully justified. They point to earnings growth, reasonable p/e multiples, and a strengthening economy. I don't buy this argument. On the contrary, I am convinced that the rally in stocks was largely of the Fed's making. I think the extent of this week's sell-off in reaction to Bernanke's comments makes that abundantly clear.

This does not necessarily mean, however, that the sell-off will continue. After all, the Fed is not yet ending QE. In fact, the Fed is not even close to ending QE. At the very most, the Fed might begin to taper QE later this year. But if things don't go according to plan, the Fed might actually take QE up a notch.

Perhaps we would all be better off if the Fed did not try to be so transparent. In the old days, few investors paid much attention to the Fed's actions. The Fed did not hold press conferences and the media did not scrutinize FOMC press releases or question Fed officials at length about monetary policy. However, these days, investors worldwide drop what they are doing at exactly 2 pm EST on every "Fed Day" to find out how the Fed's latest decision might impact their portfolios.

Given the recent gyrations in the markets, I decided to take a longer-term view. Unfortunately, I came up with four items that I think can threaten the long-term viability of the U.S. economy. Sorry to end this on a sour note:

Disparity in Wealth and Income. We've often heard that the rich are getting richer and the poor are getting poorer. The first part is true; the second part is not. While the poor are not getting poorer, they certainly are not getting richer either. Neither is the middle class. Even the merely wealthy are falling behind the very rich. While I oppose efforts to redress this problem by raising taxes on the rich, I do worry that the rising gaps in wealth and income could cause social unrest and severe economic disr! uptions. ! If we really want a healthy and vibrant economy, we have to figure out a way to make sure everyone is able to climb up the economic ladder.

Education. The U.S. is famous for its outstanding colleges and universities. U.S. colleges regularly dominate the global listings of best universities. Unfortunately, our secondary schools do not fare as well. Public school systems in many parts of the country are failing to provide the basic skills students need to succeed in life, let alone in college. In some cases, it even seems that the schools' primary mission is to provide a secure source of employment for teachers and administrators rather than an outstanding education for students. Perhaps this explains why U.S. universities have so many foreign-born and educated students, especially in graduate programs in the sciences, maths, and engineering.

Drug Dependence and Addiction. Apparently, physicians spend an inordinate amount of time writing prescriptions. A recent study from the Mayo Clinic concluded that about 70 percent of Americans are on at least one prescription medication. Approximately 13 percent rely on opioids to relieve pain and 13% are on antidepressants. Other than making an obvious case for buying pharmaceutical stocks, it isn't clear why such a large number of people require so many drugs. I'm beginning to wonder why the remaining 30% of Americans are not being medicated at all. Perhaps they haven't paid a visit to a doctor recently. Illegal drug use is also rampant. The owner of a foundry in middle America told me a few years ago that he wanted to hire more workers, but was having trouble finding people who could pass the drug test. I simply don't see how the employment situation can improve and the economy can thrive when so many working age adults are so drug dependent. In part, this may also explain why so many businesses are determined to automate. Robots don't get hangovers and they don't require rehab.

Debt. The financial crisis has prompted corporations and individuals! to clean! up their balance sheets. Unfortunately, the same cannot be said for the federal and local governments. If you include unfunded liabilities, such as social security, medicare, and pension funds, the national debt burden is astronomical and beyond the understanding of most reasonable people. Our collective debts are so large and growing so rapidly, that it is impossible to dig ourselves out of this hole without a complete change in attitude about entitlements and the role of government. That is not something I see happening anytime soon.

Source: The Fed Is Not On Drugs, But Almost Everybody Else Is

Dow May Jump as Investors Wait for Fed

LONDON -- Stock index futures as of 6:30 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open up by 114 points, or 0.76%, while the S&P 500 (SNPINDEX: ^GSPC  ) is expected to open flat. It's been four weeks since May 22, when Federal Reserve Chairman Ben Bernanke said that stimulus measures might be tapered if employment data showed sustained improvement, but despite the volatility we've seen during that period, the Dow closed last night 11 points higher than its May 22 close.

Most European markets edged lower this morning ahead of the conclusion of today's Federal Reserve policy meeting. At 7:20 a.m. EDT, the FTSE 100 was down 0.48%, France's CAC 40 was down 0.66%, and the German DAX was down 0.17%. In Japan, the Nikkei 225 and the TOPIX both closed 1.8% higher earlier today, making them the top performers in the Asia-Pacific region.

Yesterday's inflation data was the last possible input for today's FOMC decision on monetary policy, which is due at 2 p.m. EDT. This will be followed at 2:30 p.m. EDT by Bernanke's press conference, at which he is likely to comment further on the Fed's outlook on the economy and his view on the future of the Fed's stimulus programs. Chairman Bernanke's words will be closely scrutinized, and the Dow and S&P 500 are likely to be fairly volatile during and immediately after Bernanke's comments.

Although the Fed is likely to overshadow any corporate news today, one set of quarterly results may be worth focusing on. Package delivery giant FedEx is generally considered to be a good economic indicator; when the global economy is good, parcel volumes rise, and when things are tough, they fall. This morning the company reported fourth-quarter earnings of $2.13 per share (excluding items), beating analysts' expectations of $1.95 per share and the prior-year quarter's EPS of $1.99. FedEx stock closed 1.1% higher yesterday and is up 1.3% in premarket trading this morning.

One other stock that may be actively traded this morning is Adobe Systems, which is up by 6.4% in premarket trading this morning after the firm's quarterly results beat expectations last night.

Finally, let's not forget that the Dow's daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, "The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions." If you, like Buffett, are convinced of the long-term power of the Dow, you should read "5 Stocks To Retire On." Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

Can NVIDIA's Shield Kick-Start Android Gaming?

The following video is from The Motley Fool's weekly Tech Review, in which host Chris Hill talks all things tech with Fool analysts Eric Bleeker and Lyons George.

NVIDIA (NASDAQ: NVDA  ) will be releasing its Shield mobile gaming console, which will be a platform for Android-based games, at a $300 price point. Is this going to be a product that will be attractive to consumers? Is there enough content available in terms of Android games geared toward a gamepad to make this an interesting device? In this segment, Lyons and Eric discuss the many challenges NVIDIA's new device will face to find a place in the market, and why this may be way too far out of the company's core competency to succeed.

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

The relevant video segment can be found between 10:54 and 15:26.

For the full video of this edition of the weekly Tech Review, click here.

Hot Computer Hardware Companies To Buy For 2014

Northrop Grumman (NYSE: NOC  ) won a pair of Pentagon contracts Tuesday, both benefiting the U.S. Navy, and both relating to the Navy's E-2D Advanced Hawkeye airborne early warning aircraft.

The smaller of the two awards, not to exceed $7.5 million in value, is a delivery order under a previously awarded Basic Ordering Agreement calling upon Northrop to repair 43 line items on the Advanced Hawkeye System used on the E-2D aircraft.�Northrop is to complete these repairs by June 3, 2015.

The larger award by a factor of two, for $17.1 million, modifies a different previously awarded contract, this one for the advanced acquisition of product, fleet, and engineering support needed to begin full rate production of Lot 1 E-2D Advanced Hawkeyes. This contract should be completed by June 2014.

Hot Computer Hardware Companies To Buy For 2014: China Advanced Construction Materials Group Inc.(CADC)

China Advanced Construction Materials Group, Inc., through its subsidiaries, produces and supplies ready mix concrete materials for the commercial, residential, and infrastructure developments primarily in the People?s Republic of China. The company offers common industry mixtures, such as ready-mix concrete blends, controlled low-strength materials, high-strength concrete products with customized fibers, and soil cement products. It also provides industry leading mixtures, including compound admixture concrete, lightweight aggregate concrete, thermostat concrete, and C100 concrete products. The company was founded in 2007 and is based in New York, New York.

Hot Computer Hardware Companies To Buy For 2014: Suburban Propane Partners L.P.(SPH)

Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, fuel oil, and refined fuels. Its Propane segment is involved in the distribution of propane to residential, commercial, industrial and agricultural customers, as well as in the wholesale distribution to industrial end users. This segment offers propane primarily for space heating, water heating, cooking, and clothes drying in the residential and commercial markets; for use as a motor fuel in internal combustion engines to power over-the-road vehicles, forklifts, and stationary engines, as well as to fire furnaces and as a cutting gas to the industrial customers; and for tobacco curing, crop drying, poultry brooding, and weed control in the agricultural markets. The company?s Fuel Oil and Refined Fuels segment engages in the retail distribution of fuel oil, diesel, kerosene, and gasoline to residential and commercial customers primarily for use as a sourc e of heat in homes and buildings. Its Natural Gas and Electricity segment markets natural gas and electricity to residential and small commercial customers in the deregulated energy markets of New York and Pennsylvania. The company also sells, installs, and services of a range of home comfort equipment, including whole-house heating products, air cleaners, humidifiers, hearth products, and space heaters; and sells and installs natural gas and propane gas grills, fireplaces, and related accessories and supplies through retail stores. As of September 24, 2011, it served approximately 750,000 residential, commercial, industrial, and agricultural customers primarily in the east and west coast regions of the United States, including Alaska, as well as operated 2 retail stores in the northwest and northeast regions in the United States. Suburban Energy Services Group LLC serves as a general partner of Suburban Propane Partners, L.P. The company was founded in 1945 and is based in Whippany, New Jersey.

Top 5 Dividend Companies To Buy Right Now: ROB(ROB.AX)

Robe Australia Limited does not have significant operations. Previously, it was engaged in the provision of client investment advisory, stock broking and associated financial, corporate advisory, and fund and wealth management services. The company was formerly known as Tolhurst Group Limited and changed its name to Robe Australia Limited in April 2009. The company was incorporated in 1920 and is based in Melbourne, Australia.

Hot Computer Hardware Companies To Buy For 2014: AptarGroup Inc. (ATR)

AptarGroup, Inc. engages in the design, development, manufacture, and sale of consumer product dispensing systems in North America, Europe, Asia, and South America. The company operates in three segments: Beauty + Home, Pharma, and Food + Beverage. The Beauty + Home segment primarily sells pumps, closures, aerosol valves, and accessories to the personal care and household markets, as well as pumps and decorative components to the fragrance/cosmetic market; and fragrance/cosmetic and personal care fine mist spray pumps, personal care lotion pumps, and continuous spray aerosol valves. The Pharma segment provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments in pharmaceutical market. The Food + Beverage segment offers dispensing and non-dispensing closures, spray pumps, and aerosol valves to the food and beverage markets. AptarGroup, Inc. sells its products through sales force, independent representatives, and distributors. The c ompany was founded in 1992 and is headquartered in Crystal Lake, Illinois.

Top 5 Internet Stocks For 2014

Unless you are a Winklevoss twin or are still trying to hide your Internet credit card purchases from your wife, chances are you have already decided that Bitcoins are largely irrelevant to your life and aren't much use except as a talking point for a nerdy, 20-something's tumblr. The Web-based currency has littered mainstream news throughout 2013 -- from "what exactly is a Bitcoin?" to "Largest Bitcoin exchange already proving to be a giant failure." But it may be this most recent event that has the largest implications for the anonymous, government-defying Super Mario coins.

"You just don't get it"
If your first thoughts upon reading my opening paragraph are that I am naive and probably had to have this article transcribed by someone literate, then I suppose time will tell. But for those who are also skeptical -- i.e., nearly everyone who isn't directly involved in funding the Bitcoin revolution -- let's examine the latest reason that this is a giant pile of e-nonsense.

Top 5 Internet Stocks For 2014: eBay Inc.(EBAY)

eBay Inc. provides online platforms, services, and tools to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. Its Marketplaces segment operates ecommerce platform eBay.com; vertical shopping sites, such as StubHub, Fashion, Motors, and Half.com; and classifieds Websites, including Den Bl�Avis, BilBasen, Gumtree, Kijiji, LoQUo, Marktplaats.nl, mobile.de, Alamaula, Rent.com, eBay Anuncios, eBay Kleinanzeigen, and eBay Annunci, as well as provides advertising services. The company?s Payments segment offers payment and settlement services for consumers and merchants on and off eBay Websites and other merchant Websites. This segment operates PayPal, which enables individuals and businesses to send and receive payments online and through mobile devices; Bill Me Later that enables the United States merchants to offer, the United States consumers to obtain, credit at the point of sale for ecommerce and mobile tra nsactions; Zong, which allows users with mobile phones to purchase digital goods and have the transactions charged to their phone bill; and BillSAFE that enables customers pay for purchases upon receipt of an invoice. Its GSI segment offers an ecommerce services suite for enterprise clients that operate in general merchandise categories, including apparel, sporting goods, toys and baby, health and beauty, and home; and marketing services comprising full-service digital agency, enterprise email marketing, mobile advertising, affiliate marketing, advertisement retargeting, and in-depth analytics services. The company also offers X.commerce platform that provides software developers access to the company?s applications programming interfaces to develop functionality for various merchants; and Magento Connect, which allows developers to market and sell add-on functionality and solutions to merchants that use a Magento storefront. eBay Inc. was founded in 1995 and is headquarter ed in San Jose, California.

Advisors' Opinion:

• [By Jeanine Poggi]

  eBay's biggest story continues to be its PayPal business.

  The payments business pushed eBay's fourth-quarter earnings ahead of expectations. During the quarter the e-commerce company earned $559 million, or 42 cents a share, compared with $1.36 billion, or 1.02 a share in the year-ago period. Excluding costs related to the sale of its Skype business, eBay actually earned 52 cents a share. Revenue climbed 5% to $2.5 billion. Analysts were calling for a profit of 47 cents a share on revenue of $2.48 billion.

  This marks the 18th consecutive quarter eBay surpassed EPS estimates.

• [By Ryan Peckyno]

  The next stock that article highlighted was eBay – a stock that was up some 60% at the end of 2012.  According to J.P. Morgan’s Anmuth, growth in eBay’s core business “could accelerate over the next couple quarters as eBay continues to benefit from strong user growth, increased inventory from large retailers, mobile, and improved site design.”  Ok, I’ll buy that.  But again I have the same issue: his target price is only 5% above the stock’s current price.  Sure, I love eBay’s business model and long term growth potential, but price matters and at over $50 a share eBay doesn’t look all that attractive, particularly given that earnings are down.

Top 5 Internet Stocks For 2014: IAC/InterActiveCorp (IACI)

IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company�s Search segment develops, markets, and distributes various downloadable toolbars; provides search, reference, and content services through its destination search and other Websites, including Ask.com and Dictionary.com; and aggregates and integrates local advertising and content for distribution to publishers on Web and mobile platforms, as well as markets and distributes mobile applications through which it provides search and additional services. Its Match segment offers subscription-based and advertiser-supported online personals services through its Websites comprising Match.com, Chemistry.com, OurTime.com, BlackPeopleMeet.com, and OkCupid.com, as well as through mobile applications and Meetic-branded Websites. The company�s ServiceMagic segment offers Market Match service that matches consumers with service professionals; Exact Match service, which enables con sumers to review service professional profiles and select the service professional that meets their specific needs; and 1800Contractor.com, an online directory of service professionals. This segment also offers Website design and hosting services. Its Media and Other segment operates CollegeHumor.com, an online entertainment Website that targets young males; Vimeo, a Website on which users can upload, share, and view video; and Pronto.com, a comparison search engine. This segment also engages in the creation of video content for various distribution platforms; and operates as an Internet retailer of footwear and related apparel and accessories, as well as focuses on multimedia business. The company was formerly known as InterActiveCorp and changed its name to IAC/InterActiveCorp in July 2004. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Lisa Springer]

  IAC/InteractiveCorp. (NASDAQ: IACI) is perhaps the forgotten Internet company. This $4 billion Web property gets very little love and respect from Wall St. because it is such a smaller competitor and it is considered a hodge-podge of Web properties. It has media, shopping and the Ask.com search engine, and that search is said to be the glue that keeps it together. Its Ask.com is still one of the largest search engines running, at number four in most rankings, but it is incredibly small when compared to Google and even compared to Microsoft along with Yahoo! Its own efforts to become a content destination have been met with a mixed reception, and the stock chart shows no real read either way at the start of 2013. What is amazing is that the company has grown without many investors paying attention.

  IAC/InteractiveCorp shares trade at $46.00, and its 52-week range is $40.87 to $55.57. Analysts have a consensus value of just over $60.00, for an implied upside of close to 30%, and IAC trades at only about 12-times earnings. Is this a Web value stock in the making?

10 Best Blue Chip Stocks To Buy Right Now: Google Inc.(GOOG)

Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google?s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers And roid, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.

Advisors' Opinion:

• [By McWillams]

  This stock has been going up higher and higher for at least the last 10 years.  They don’t seem to be letting up.  On the fundamental side, their market share is growing as well as the market itself.  They are starting to get into the social networking space as well with the recent release of Google+.  The thing you want to watch for is their operational costs.  It’s been rising very quickly due mostly to hiring costs.  I don’t foresee that stabilizing at any point.  Just make sure the earnings are growing faster than rising costs.

• [By Kevin M. O'Brien]

  Google (GOOG) will surpass $725.00/share. Google has a lot of trouble over the last few years maintaining its all-time highs. I do not think this will be the case in 2012. The stock is really starting to show strength of late and I do believe this carries over into next year.

Top 5 Internet Stocks For 2014: Symantec Corporation(SYMC)

Symantec Corporation provides security, storage, and systems management solutions internationally. The company?s Consumer segment delivers Internet security, PC tune-up, and online backup solutions and services to individual users and home offices. Its Security and Compliance segment provides solutions for endpoint security and management, compliance, messaging management, data loss prevention, encryption, and authentication services to large, medium, and small-sized businesses, as well as offers solutions through its software-as-a-service (SaaS) security offerings. This segment?s products enable customers to secure, provision, and remotely manage their laptops, PCs, mobile devices, and servers. The company?s Storage and Server Management segment provides storage and server management, backup, archiving, and data protection solutions across heterogeneous storage and server platforms, as well as solutions delivered through its SaaS offerings to large, medium, and small-s ized businesses. Symantec?s Services segment offers implementation services and solutions, including consulting, business critical services, education, and managed security services. The company also provides various enterprise support offerings, such as annual maintenance support contracts, including content, upgrades, and technical support. It sells its products through its eCommerce platform, as well as through distributors, direct marketers, Internet-based resellers, system builders, ISPs, and retail locations worldwide. Symantec markets and sells its products through distributors, retailers, direct marketers, Internet-based resellers, original equipment manufacturers, system builders, and Internet service providers; and its e-commerce channels, as well as direct sales force, value-added and large account resellers, and system integrators. The company was founded in 1982 and is headquartered in Mountain View, California.

Advisors' Opinion:

• [By Jonas Elmerraji]

   Symantec (SYMC) is having a better year in 2012. Shares of the $13 billion computer security firm have rallied around 18% year-to-date, besting the broad market's performance by a slight margin. Much of Symantec's performance came in the late Summer, when the stock gapped up and started moving higher extremely quickly.

  But that straight-up trajectory wasn't sustainable, so shares have spent the last couple of months consolidating sideways in a price channel. Sideways consolidation isn't a bad thing -- it just means that investors are trying to catch their breath after a big volatile run. With resistance coming in at $19.25, buyers have a pretty well defined signal that the rest is over for SYMC and another rally leg is beginning. I wouldn't recommend buying until then.

  Remember, these setups all come down to supply and demand from buyers and sellers. After the huge push higher at the end of the summer, sellers started coming in at $19.25 -- it was a price where sellers were more eager to sell and take gains than buyers were to keep buying. That's why the breakout above $19.25 is a buy signal; a breakout indicates that buyers have gained enough strength to absorb all of the excess supply above $19.25.

  Without that upside barrier, this stock should be able to keep running higher…

Top 5 Internet Stocks For 2014: Internap Network Services Corporation(INAP)

Internap Network Services Corporation provides information technology (IT) infrastructure services. The company operates through two segments, Data Center Services and IP Services. The Data Center Services segment provides colocation services, which include physical space for hosting customers? IT infrastructure network and other equipment, as well as offers associated services, such as redundant power and network connectivity, environmental controls, and security. This segment also offers managed hosting services that enable its customers to own and manage the software applications and content, as well as provides and maintains the hardware, operating system, collocation, and bandwidth. The IP services segment provides patented performance Internet protocol (IP) service; XIP acceleration-as-a-service solution; and flow control platform, a premise-based intelligent routing hardware product for customers, who run their own multiple network architectures, known as multi-homi ng. In addition, this segment offers content delivery network services that enable its customers to stream and distribute media and content, such as video, audio software, and applications to audiences through points of presence, as well as offers capacity-on-demand services to handle events and unanticipated traffic spikes. Internap Network Services Corporation provides its services and products through 76 IP service points, which include 20 CDN POPs and 1 standalone CDN POP, as well as through 37 data centers across North America, Europe, and the Asia-Pacific region. It serves the entertainment and media, financial services, business services, software, hosting and information technology infrastructure, and telecommunications industries. The company was founded in 1996 and is based in Atlanta, Georgia.

Advisors' Opinion:

• [By Harding]

  Internap Network Services Corporation is an Internet solutions and data Center Company providing a suite of network optimization and delivery services and products that manage deliver and distribute applications. Its EPS forecast for the current year is 0.12 and next year is 0.21. According to consensus estimates, its topline is expected to grow 2.85% current year and 9.34% next year. It is trading at a forward P/E of 34.33. Out of eight analysts covering the company, three are positive and have buy recommendations and five have hold ratings.