Eleven Overhyped Products That Failed

Were you excited about the arrival of New Coke? Do you still have some old LaserDiscs stashed in the back of your closet?

These products that failed also happened to be among the most overhyped in history.

That's the sort of thing that keeps CEOs awake at night, because overhyped products that fail also tend to be public relations nightmares.

Predicting a failed product is not as easy as it might seem, however, since products can fail for a lot of reasons.

It could be that no one wants it, or that an unexpected fatal flaw arises, or that it's just not that good.

Each of these 11 products that flopped has a cautionary tale to tell...

11 Overhyped Products That Failed

Overhyped Products That Failed No. 1: New Coke. Perhaps the most amazing product blunder of all time, The Coca-Cola Co. (NYSE: KO) launched New Coke in 1985 in response to market share losses to rival PepsiCo, Inc. (NYSE: PEP). Incredibly, the company replaced its flagship product with the new formula rather than simply adding a new beverage to the product line. Public outrage ensued, and Coca-Cola was forced to bring back the "Classic" drink just 79 days later.

Overhyped Products That Failed No. 2: The Zune. Five years after Apple Inc. (Nasdaq: AAPL) reinvented the portable music player with the iPod, Microsoft Corp. (Nasdaq: MSFT) came out with its copycat Zune player, hoping to get a piece of the action. The problem was that while the Zune was more or less as good as the iPod, it was a Johnny-come-lately product trying to crack a market that the iPod totally dominated. The iPhone and iPod Touch debuted within a year, further dooming the Zune. Microsoft was forced to give up on the product altogether in 2011.

You really have to wonder what the top executives at these companies were thinking when they gave these products the thumbs up...

Overhyped Products That Failed No. 3: The XFL. Seeing an opportunity that wasn't there, World Wrestling Entertainment, Inc. (NYSE: WWE) and NBC Universal (NYSE: CMCSA) teamed up in 2001 to create the short-lived XFL. And by short-lived, we mean one season. A reaction to the rule-heavy NFL, the XFL featured teams with violent names like the "Hitmen" and far fewer penalties. It also featured a lot of lousy players, and ratings tanked after the first week.

Overhyped Products That Failed No. 4: Newton. The period of time at Apple when Steve Jobs was in exile featured several miscues. But none was bigger than the Newton personal digital assistant. Today it looks laughably obsolete, but it was an impressive achievement back in 1993. Apple's mistake was to oversell the handwriting recognition feature, which was quite buggy. That failing ended up defining Newton, even though the handwriting recognition improved greatly over the life of the product. Jobs killed Newton upon his return in 1998, but perfected the concept a few years later with the iPhone.

Overhyped Products That Failed No. 5: The Edsel. Along with New Coke, Ford Motor Co.'s (NYSE: F) Edsel is a legend among product failures. Ford invested heavily in the auto's development, but the car, introduced in 1957 with much fanfare, failed to deliver on any level. Customers were unimpressed with the styling, and the pricing positioned the Edsel confusingly between existing Ford and Mercury models. Sales were abysmal, and Ford discontinued the car in 1960.

Overhyped Products That Failed No. 6: Windows Vista. Despite its dominance of the PC operating system market, Microsoft has had a rocky history with updates. Vista arrived five years after the popular Windows XP, and soon had users crying foul. It was buggy and slow, and its emphasis on improved security had the side effect of disabling a lot of older hardware and software. Many people who bought and installed Vista hated it so much they downgraded back to XP. Fortunately for Microsoft, Windows 7, released in 2009, got a much better reception.

Overhyped Products That Failed No. 7: Olestra. Discovered by researchers at The Procter & Gamble Co. (NYSE: PG) in 1968, the fat substitute Olestra was approved by the Food and Drug Administration in 1996 for use in snack foods. Two years later Frito-Lay launched its "WOW" line of chips, with a marketing campaign boasting of a fat-free chip. There was just one problem: Olestra does not get along particularly well with the human digestive system. Wrote Fast Company: "Sadly, the result was similar to that of a laxative - stomach cramps and diarrhea prevailed." Comedians pounced, as did the media, and sales plummeted. WOW chips were pulled from store shelves, but Olestra survived. After some tweaking in the lab, it lives on as Olean in several of Frito-Lay's "Light" versions of its chips.

Overhyped Products That Failed No. 8: Google Glass. Some might say it's too early to declare Google Inc.'s (Nasdaq: GOOG, GOOGL) best-known wearable tech product as a failure, but it's hard to see Google Glass recovering from the backlash it got when it debuted. Not only are people reluctant to wear the product because of how nerdy it makes them look, but anxiety over the device's camera has led to harassment of several Glass wearers. Apart from its questionable fashion sense, Google has never made it clear why anyone should shell out $1,500 for this thing.

Overhyped Products That Failed No. 9: Smokeless Cigarettes. Concern over the health hazards from cigarette smoking led R.J. Reynolds (NYSE: RAI) to invest $325 million in the1980s to create a breakthrough product - a smokeless cigarette dubbed "Premier." Instead of burning the tobacco, it simply heated it. That got rid of 70% of the carbon monoxide and all of the tar, but with one unfortunate consequence: Premier tasted awful and "smelled like burning garbage," according to Advertising Age. Within four months of its debut in 1989, Premier was history.

Overhyped Products That Failed No. 10: LaserDiscs. Before DVDs and Blu-Ray there were LaserDisks, a digital format for video as big as an old vinyl LP. They launched in 1978, just two years after the venerable VCR, but offered much better quality. But LaserDiscs were also a lot more expensive, and the movie studios released fewer films in the format than for VHS. On top of all that, there was no way for users to record their own. By the late 1990s, the format was fading, to be killed off for good by the arrival of DVDs.

Overhyped Products That Failed No. 11: Arch Deluxe Burger.

When you think of McDonald's Corp. (NYSE: MCD), you think of an upscale clientele, right? Hmmm... maybe not. But that was the demographic the fast food giant targeted with its Arch Deluxe burger in 1996. And McDonald's spent a staggering $100 million to promote it. Unfortunately, it was expensive and, at 610 calories, not very healthy. But the worst sin was that it wasn't all that tasty. McDonald's gradually phased out the ill-conceived burger.

Follow me on Twitter @DavidGZeiler.

UP NEXT: While Apple has had its miscues over the years, it has managed to live up to the hype more often than not. Case in point: The iPhone 6. After months of hype, the latest iPhone sold a record-breaking 10 million units in is first weekend. But this success story is only just getting started...

The Most Important Part of a Happy Retirement

We all have different goals as we plan for retirement. Many would say having enough money to live comfortably, travel, and enjoy life to its fullest is their main focus. Some would say that being able to move to a "retirement paradise" like a condo on the beach is what they're aiming for.

Source: Ed Yourdon via Flickr.

However, research has shown that one factor contributes more to happiness (or misery) in retirement than financial security or warm weather: your health. Without good health, you can't enjoy your retirement as much as you'd like, and health problems can easily become a serious drain on even a large retirement nest egg.

What retirees are saying
According to a recent survey by Merrill Lynch, 81% of retirees say that having good health is the most important part of a happy retirement. It's considered even more important than being financially secure or being close with family and friends.

Your physical health can make or break your retirement and can even force you to retire before you're ready. Early retirement is normally considered a sign of financial success, but health problems are the No. 1 reason for retiring early, according to 37% of those who retired before they had planned. Losing one's job later in life came in second at 27% of early retirees, and having sufficient financial resources came in third at just 24%.

Plan to make your health a top priority after you retire
Baby boomers, who make up a majority of current retirees, are already taking a much more proactive role in their health than previous generations. Because of this, nearly 80% of this group believes they will be healthy and active at the age of 75.

For instance, 79% of Baby Boomers actively research health information on their own, as compared with just 18% of the previous generation. A lot of this can be attributed to how easily information can be found nowadays, but there are other indicators of their active role as well. For example, more than twice as many question their doctor's orders, and nearly half view their doctors as "partners" in their healthcare, rather than irrefutable experts whose word should never be questioned.

Invest in your health now
By far the best investment you can make right now is to do everything in your power to give yourself the best chances of a long, healthy retirement.

The same Merrill Lynch survey referred to above found that healthcare expenses are the No. 1 financial worry among retirees. Healthcare costs can be unpredictable, and they can easily eat into your retirement savings. Unexpected healthcare costs are the No. 1 cause of early retirement in America.

The best thing to do is to invest in your health before you retire by developing healthy habits and taking advantage of your healthcare options. See your doctor regularly, as catching a problem (like high cholesterol) early can make all the difference in the world. Sure, medical care can be expensive, but look at it as an investment rather than a burden.

Also, learn about Medicare in advance, including the potential out-of-pocket costs for you. One scary statistic is that only 19% of current Medicare recipients feel like they have a strong understanding of what costs are covered. Understanding Medicare takes some homework on your part. The Centers for Medicare and Medicaid has a good reference to get you started on this.

After all, what's the point of saving and investing for your retirement if you won't enjoy the fruits of your labor for decades to come?

How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

10 Ways to Put Your Retired iPhone to Work

Alamy With about 10 million new iPhone 6s ordered in the initial days on the market, a whole lot of old iPhones are destined for the scrap heap. Sure, you could sell, donate or recycle your old iPhone, but you probably won't. And there are better things to do with it. One creative example: At the Missouri University of Science and Technology, a biology class is making old iPhones into microscopes. Using less than $10 worth of supplies, the old phones are mounted onto a lens and can magnify an object to 175 times its size. Even an old phone with a cracked screen can be repurposed, says Josh Smith, editor of GottaBeMobile.com. "You're only really limited by your imagination," Smith says. Here are 10 smart -- and cheap -- uses for old iPhones. Clock Set your old phone on a dock or a stand and use a clock app. With Standard Time ($3.99), you will have a timepiece unlike any other. With this app, your clock is a non-stop time lapse video of construction workers switching out pieces of lumber to shape the actual time. "It's mesmerizing," says Shawn Roberts, 47, an Oakland, California, marketing executive. You can also set up flexible alarms and get the phone to play soothing white noise as you go to sleep. Set it close enough to the bed, and it can be a sleep tracker, too, with an app like SleepBot (free). Music For Your Car Take your music library on the road. Some cars come equipped with docking ports for iPhones and have dashboard screens so you can navigate your musical options hands-free. Or you can just use the cigarette lighter for power. Remote Control Televisions, speakers and other devices now have apps that allow users to make their iPhones into sleek remotes. Carm Lyman, 42, of Napa, California, converted his iPhone 4 into a remote for his household sound system after his iPhone 5 arrived. Lyman can control the audio levels and activate speakers in various parts of his home as well as access different music services. Surveillance System Apps can convert an old iPhone that has access to WiFi into a surveillance camera and motion detector. Presence, which is a free app, provides a live stream from the area you want to monitor. You can set it up to record video clips when it detects motion, too. If you buy a robotic viewing stand for about $100, you can move the camera 360 degrees rather than stick with a stationary view. Cookbook No need to go through recipe books or hunt around for other devices when you have a kitchen iPhone. Download a cookbook app, such as My Recipe Book (99 cents) or Big Oven (free), and just leave the device on the kitchen counter. It takes up almost no space and will hold far more recipes than any book. Extra Storage Need a place to store old photos and music or other files? Turn your old phone into a storage drive using a free app like USB & Wi-Fi Flash Drive. Voice Recorder Why buy a digital voice recorder when you have a retired iPhone? Using any of several free apps, including Voice Recorder and Voice Record Pro, you will have a designated memo recorder or a device to record interviews and speeches. Document Scanner Genius Scan and Doc Scan are two apps that will turn an iPhone into a handy portable scanner that you can use for work, school reports, genealogical research, or recording receipts. And they won't cost you a penny. For $20 and up, you can buy a stand that makes your iPhone into a stationary scanner. Baby Monitor Sure, you can spend $100 or more on a baby monitor, or you can just set your old iPhone up to watch streaming video of your baby as well as hear and even talk to him or her. Cloud Baby Monitor ($3.99) also allows parents to receive the signal on a wireless network or on Wi-Fi so they don't have to be within a certain number of feet of the monitor. Vehicle Tracker Whether you need to find your car if it is stolen, record where you have traveled, or spy on your teenage driver, the built-in GPS in your phone can be used as a tracking device. An app like InstaMapper ($2.99) lets you watch the vehicle in real-time and have a record of it. Of course, you may end up taking the simple path of letting a child use your old iPhone as an iPod Touch. Keep in mind that the phone can still dial 911, even if it does not have cellular service, Smith said. You can also use your old phone as a back-up in case your new model suffers irreparable harm. That said, the battery of a phone that sits in a drawer unused could drain to the point where it is no longer viable.

The Finer Points Of Hedging… Or Not

Barry Ritholtz asks the right question—Why hedge?–in the wake of last week's announcement that California Public Employees' Retirement System (Calpers), the elephant in the room in the world of pension funds, is ending its decade-long experiment with hedge funds. The allure of these products in the wider world has been driven primarily by the hope that the funds will deliver outsized returns relative to the usual suspects. But smart investors like Calpers have also been drawn to the risk-management aspects of these hedge funds—i.e., low correlations with conventional portfolios of stocks and bonds. After the financial crisis of 2008, the focus on owning stuff that acted differently in times of elevated market stress while offering relatively high expected returns through time required no explanation. But a funny thing happened on the way to nirvana—the results fell short of the sales literature.

[Related -The Sixty Percent Alibaba Play No One Is Talking About]

The news that Calpers has pulled the plug on its small hedge fund allocation inspires a fresh look at the rising popularity of managing short-term market risks. The key issue for many investors is deciding how to integrate tactical aspects of risk management with the long-term needs of earning a respectable risk premium. Ritholtz zeroes in on the issue, asking the burning question that Calpers seems to have asked and answered with last week's announcement:

[Related -Bulls Leverage Hopeful News to Launch a Tepid Breakout Attempt]

Why does a group with investment horizons of two, three and even four decades, need to worry about hedging short-term investment risk? Consider the investor pool for the typical pension fund: Police, government workers, teachers, firefighters, school personnel, many of whom are in their 20s, 30s and 40s. The investment horizon is a key issue in deciding what sort of risks you are willing to take. The overriding question for this group of investors is how much volatility their portfolio can withstand.

The answer was found in Calpers's decision. When all was said and done, these beneficiaries simply didn't need a hedge.

Every investor with an investment horizon measured in years rather than days should be thinking about such topics. The critical decision boils down to this: How much short-term tactical risk management is appropriate so that it enhances rather degrades the capacity to generate positive long-term returns? Going to extremes is almost never a good idea, but that's what some folks may end up doing in the rush to fight the last war and develop hedges for 2008-type events.

In the pre-2008 era of buy-and-hold strategies, the notion that short-term tactical risk management could be valuable was too often dismissed as market-timing voodoo. It certainly could be, but not always. On the other side of 2008, the focus has swung to the opposite extreme. You can't swing a stick these days without someone promoting a new risk-hedging process and promising a smoother experience in the next crisis. But a simple principle applies for thinking about this subject: short-term risk management techniques aren't appropriate as a core holding. That doesn't mean you shouldn't have a short-term risk management overlay, but the tail shouldn't be wagging the dog.

The solution, of course, is to develop a healthy mix of the tactical and strategic. Easier said than done, but thinking about this nexus is essential. You might start by recognizing that in the long run it's really, really hard to add value over Mr. Market's asset allocation. Owning the major asset classes in something approximating market-value weights will likely outperform most strategies that try to deliver superior risk-adjusted results over, say, a decade or more. The problem is that most of us don't have the discipline to sit tight and suffer short-term drawdowns of 25% to 50%.

Adding a risk-management overlay to a portfolio of risky assets makes sense, and it could be something as simple as routine rebalancing. In any case, there are no one-size-fits-all solutions. As always, cost is a factor too. And depending on how you proceed, don't overlook the possibility that the solution that looks good in the short run could create trouble in the long run in terms of falling short of required results. The devil is very much in the details in the delicate art of hedging risk.

The good news is that there's no shortage of productive techniques for identifying and managing short-term risks—monitoring volatility or looking for so-called regime shifts that alert us that bull markets may be sliding over to the dark side, for instance. Meantime, there's a strong case for keeping an eye on the mother of all known risk factors—the business cycle.

Ultimately, the sky's the limit for hedging risk. Accordingly, the decision about whether to add a tactical risk-management process (or not), and how to proceed falls under the heading of customizing the portfolio design to match the investor's objectives, risk tolerance, etc. What you define as prudent and necessary may strike me as absurd. Nonetheless, the question must be asked and answered in a thoughtful way: Why hedge?

The answers will vary, and widely so, which is part of the reason why portfolio results are all over the map in the grand scheme of investing. Where to start? With the default solution, if only as a reference point. The average investor with an infinite time horizon should hold Mr. Market's asset allocation. For the rest of us, we need to develop a customized risk-management process that tweaks Mr. Market's strategy for our own purposes.

Yes, that's old news, but one that's forever new. As last week's decision by Calpers reminds, wisdom in matters of enlightened risk management has a tendency to be cyclical rather than cumulative.

General Motors Might Miss Its Margin Target…and It Doesn’t Matter

The folks at JPMorgan aren’t sure General Motors can meet its margin targets–they’re just not sure it matters. Analyst Ryan Brinkman and team explain why the “see attractively deep value” in shares of General Motors:

Getty Images

[For General Motors, we] forecast 2016 EPS of $5.20, well above Bloomberg consensus of $4.82, on volume gains across most regions and a focus on structural costs in North America (we expect North America structural cost opportunity to be a focus of the firm's upcoming analyst day October 1). Our forecast presumes a 2016 North America EBIT margin of 8.8%, +40 bps y/y vs. 8.4% in 2015, which is itself -60 bps vs. an ex-safety recall 9.0% in 2014 that benefits from strong product cadence.

Said differently, we are above consensus without giving much credence to GM’s 10% mid-decade North American EBIT margin goal, suggesting potential additional upside to the extent GM can deliver in this area. Our newly established December 2015 price target of $51 compares to our earlier $50 December 2014 price target. We have conservatively lowered our target multiple to 4.0x from 4.5x, to necessitate less multiple expansion (when we moved to 4.5x, GM was trading closer to 4.0x). We recognize that even our lowered target multiple represents substantial improvement vs. the 2.6x at which we estimate GM is currently trading; however, we feel it is conservatively in keeping with the automaker's historical range of EBITDA despite structural improvement in profitability and a substantially healthier balance sheet. In an upside scenario in which GM can accomplish 10% GMNA EBIT margins or can convincingly demonstrate that it is on a path toward such margins, we feel the stock could be re-rated still higher, potentially even beyond 4.5x.

As a result, Brinkman prefers General Motors to Ford Motor (F) and Tesla Motors (TSLA). He explains why:

We prefer General Motors to Ford (and GM and Ford to Tesla), on lower valuation and stronger near-term profit trend: Ford trades toward the high end of its range of historical valuation (although not above it, like suppliers), while GM trades at a discount. And yet we expect GM to experience strong truck-led profits for the next several quarters as Ford does not, given lost production as it transitions to produce a new aluminum version, even in the event of flawless execution.

Shares of General Motors have fallen 1.4% to $33.45 at 3: 48 a.m., while Ford Motor has dropped 1.5% to $16.40 and Tesla Motors has declined 3.3% to $250.67.

 

Why small investors can't dump Big Oil

  Thousands rally for climate change action NEW YORK (CNNMoney) The crusade against climate change has intensified in recent days as protesters take to the streets and wealthy investors like the Rockefellers vow to ditch fossil fuels.

But for most of us, "dirty energy" will continue to hold a prominent place in our portfolios, regardless of where we stand on the issue.

Here's why:

The unrelenting reign of Big Oil: It's not called Big Oil for nothing. With a market value of over $400 billion, Exxon Mobil (XOM)is the second largest company in the world. Chevron (CVX), ConocoPhillips (COP), and Occidental Petroleum (OXY) aren't too far behind. And all them are listed in the S&P 500, the popular index of America's largest companies.

Many mutual funds and exchange traded funds (ETFs) mimic the S&P 500 by buying all the stocks in it or else use the index as a benchmark. That means anyone who has an American stock fund in their retirement portfolio probably owns some Big Oil.

Wall Street's job is to make money, and as long as the major energy players are generating profits, capital will continue to flow to them.

Furthermore, the increased pressure on dirty energy comes at a time when the industry is enjoying an unprecedented boom in domestic production. Phil Flynn, an energy analyst with the Price Futures Group, thinks that those looking to shed their oil and gas investments are missing the big picture.

"I don't think oil and gas are going away anytime soon, and nor should they," he said. "There's not a viable alternative that can grow the economy and lift people out of poverty."

There are alternative energy companies, but they're risky: While rich investors like the Rockefellers often employ dedicated teams of finance pros to evaluate potential clean energy investments, the rest of us are left to fend for ourselves in a sector that can be rocky.

Take Tesla (TSLA), for example. It's a favorite among "momentum traders" who play the ups and downs of stocks as well as green energy enthusiasts. The stock has skyrocketed in recent years, but it's had a bumpy ride. Consider that the stock is down 8% this month alone as investors fret about its high valuation and ability to be more than the niche automaker to the rich.

Critics also charge that the company relies heavi! ly on tax breaks to do business.

Fuel cell stocks were all the rage earlier this year when Plug Power (PLUG)announced it got an order from Wal-Mart (WMT) to help power forklifts in some of its distribution center. Plug Power and FuelCell Energy (FCEL)have both skyrocketed this year, but are down 30% and 20%, respectively, this month. Both companies regularly report quarterly losses.

First Solar (FSLR), the darling of the solar panel industry, is up 23% this year, but it's gotten socked 5% this week.

In short, there are opportunities to make real money in renewable energy, but many of the publicly traded stocks available to ordinary investors are highly speculative. It's the early days for many of these companies.

So what should you do?: Those determined to eliminate or reduce fossil fuel companies from their investments can do it, but it is difficult.

From an investment perspective, the advice is typically to start small and diversify as much as possible. Buying a basket of green energy holdings, for example, through a mutual fund or ETF is often better than betting on just one or two stocks.

Examples of popular clean energy exchange traded funds include the iShares Global Clean Energy and Powershares Cleantech ETFS, which follow dozens of green tech firms across a broad range of sectors including utilities, air and water purification, and information technology.

But to have zero fossil fuel investments in a retirement or other investment portfolio may mean sacrificing returns or paying higher fees, at least for awhile.

5 Stocks Poised for Big Breakouts

DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players who can ultimately push the stock significantly higher.

Read More: Warren Buffett's Top 10 Dividend Stocks




One example of a successful breakout trade I flagged recently was technology player MobileIron (MOBL), which I featured in Aug. 22's "5 Breakout Stocks Under $10 Set to Soar" at around $9.14 per share. I mentioned in that piece that shares of MobileIron recently formed a double bottom chart pattern at $8.20 to $8.30 a share. Following that bottom, shares of MOBL were starting to trend higher and move within range of triggering a big breakout trade above some key near-term overhead resistance at $9.60 a share.

Guess what happened? Shares of MobileIron triggered that breakout a few treading sessions later with strong upside volume flows. Volume on Aug. 25 registered 1.49 million shares, which is well above its three-month average action of 696,350 shares. Shares of MOBL continued to tend higher following that breakout, with this stock recently tagging a new all-time high of $12.96 a share. That represents a monster gain of right around 40% in just a few trading sessions for anyone who bought shares of MOBL around the time of my article. As you can see, when breakouts trigger with volume the gains can be large once a stock catches momentum and trends higher.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

Read More: 5 Breakout Stocks Under $10 Set to Soar

Staples

One specialty retail player that's starting to move within range of triggering a big breakout trade is Staples (SPLS), which operates office products superstores. This stock has been under some selling pressure so far in 2014, with shares off by 14%.

If you take a look at the chart for Staples, you'll notice that this stock recently formed a double bottom chart pattern at $10.70 to $10.82 a share. Following that bottom, shares of SPLS have started to uptrend with the stock moving back above its 50-day moving average. That uptrend has now quickly pushing shares of SPLS within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in SPLS if it manages to break out above some near-term overhead resistance at $11.83 a share to its gap-down-day from May at $12.14 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 9.31 million shares. If that breakout triggers soon, then SPLS will set up to re-fill some of its previous gap-down-day zone from May that started just above $13.20 a share.

Traders can look to buy SPLS off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $11.21 a share. One can also buy SPLS off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Read More: 5 Toxic Stocks You Need to Sell Now

Facebook

A technology player that's starting to trend within range of triggering a big breakout trade is Facebook (FB), which operates as a social networking company worldwide. This stock has been on fire so far in 2014, with shares up sharply by 36%.

If you take a glance at the chart for Facebook, you'll see that this stock has been uptrending a bit for the last month, with shares moving higher from its low of $71.55 to its recent high of $75.99 a share. During that uptrend, shares of FB have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FB within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in FB if it manages to break out above some key near-term overhead resistance at $75.99 to its all-time high of $76.74 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 38.88 million shares. If that breakout develops soon, then FB will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $85 to $90 a share, or even north of $95 a share.

Traders can look to buy FB off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support at $72 a share or around its 50-day moving average of $70.74 a share. One could also buy FB off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Read More: 3 Tech Stocks on Traders' Radars

Arrowhead Research

A biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Arrowhead Research (ARWR), which develops targeted RNAi therapeutics in the U.S. This stock is off to a very strong start so far in 2014, with shares up sharply by 34%.

If you take a glance at the chart for Arrowhead Research, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of $10.62 to its recent high of $15.63 a share. During that uptrend, shares of ARWR have been consistently making higher lows and higher highs, which is bullish technical price action. That strong move has now started to push shares of ARWR within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in ARWR if it manages to break out above some key overhead resistance levels at $15.63 to $15.73 a share with high volume. Watch for a sustained move or close above those levels with volume that hits near or above its three-month average action 2.90 million shares. If that breakout materializes soon, then ARWR will set up to re-test or possibly take out its next major overhead resistance levels at $18.87 to around $20 a share. Any high-volume move above those levels will then give ARWR a chance to tag its next major overhead resistance level at around $24 a share.

Traders can look to buy ARWR off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $12.90 a share. One can also buy ARWR off strength once it starts to move above those breakout levels share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Read More: 5 Dividend Stocks Ready to Pay You More

Infoblox

Another technology player that's starting to trend within range of triggering a major breakout trade is Infoblox (BLOX), which develops, markets, and sells automated network control solutions worldwide. This stock has been destroyed by the bears so far in 2014, with shares of huge by 59%.

If you take a glance at the chart for Infoblox, you'll see that this stock spiked sharply higher on last Friday right above its 50-day moving average of $12.47 a share with decent upside volume flows. This sharp move to the upside is quickly pushing shares of BLOX within range of triggering a major breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in BLOX if it manages to break out above some key overhead resistance levels at $13.47 to $13.98 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 1.46 million shares. If that breakout gets underway soon, then BLOX will set up to re-fill some of its previous gap-down-day zone from May that started just above $20 a share.

Traders can look to buy BLOX off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $12.47 a share or around more support at $12 a share. One can also buy BLOX off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Read More: 10 Stocks George Soros Is Buying

Recon Technology

My final breakout trading prospect is energy player Recon Technology (RCON), which provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People's Republic of China. This stock has been moving very strong to the upside so far in 2014, with shares up large by 51%.

If you look at the chart for Recon Technology, you'll notice that this stock has been uptrending a bit over the last month, with shares moving higher from is low of $3.46 to its recent high of $5 a share. During that move, shares of RCON have been making mostly higher lows and higher highs, which is bullish technical price action. This action has now pushed shares of RCON back above both its 50-day and 200-day moving averages, which is bullish. Shares of RCON are now quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in RCON if it manages to break out above some key near-term overhead resistance levels at $5 to $5.05 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 98,703 shares. If that breakout materializes soon, then RCON will set up to re-test or possibly take out its next major overhead resistance levels at $5.62 to around $6.50 a share, or even $7 a share.

Traders can look to buy RCON off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.16 a share or near some more support at $3.75 a share. One can also buy RCON off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

Read More: 10 Stocks Carl Icahn Loves in 2014

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Must-See Charts: 5 Big Trades for S&P 2,000

>>3 Biotech Stocks Under $10 in Breakout Territory

>>4 Big Stocks to Trade (or Not)

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Has Apple Lost Its 'Cool'? Some Consumers Say, 'Yes'

Krisztian Bocsi/Bloomberg via Getty Images SAN FRANCISCO -- Holly Riggle, a 29-year-old white-collar worker from Ohio, is just the kind of everyday customer Apple (AAPL) would love to have for its new iPhone 6, which launches Friday. But Riggle is sticking to her Android smartphone, calling Apple less "original" than it was under former chief executive Steve Jobs. She's one of the 16 percent of respondents in a Reuters/Ipsos poll who said Apple had become somewhat or much less cool in the last two years. By comparison, some 11 percent of respondents said that Android had lost some sheen in the same time frame. In a similar poll a year ago, 14.3 percent of 1,379 people surveyed thought Apple had lost its cool image between 2011 and 2012. While still a juggernaut, with analysts expecting sales of around 9 million iPhone 6s in its launch weekend, Apple may be losing some of its shine, according to the poll. More Americans feel that Apple has lost its "coolness" quotient than has the Android brand, according to the poll, conducted Sept. 8-13. When questioned on how they perceive five popular technology brands -- Apple, Android, Microsoft (MSFT), Dell and Hewlett-Packard (HPQ) -- respondents gave the highest coolness factor rating to the Android brand, which includes devices such as Samsung and others that run on Google's (GOOG) mobile operating software.

[I]t's not surprising that Apple doesn't have the same cachet and coolness that it once did.

About 50 percent said that in the last one to two years, the Android brand had grown cooler, compared with 48 percent who voted for Apple. Although the poll is based on a limited sample, it reflects how Android products, which tend to be less expensive, have caused Apple to shed some of its buzz. "Especially when you have competitors who are doing a lot of innovative things themselves and great advertising, it's not surprising that Apple doesn't have the same cachet and coolness that it once did," said Kevin Lane Keller, a branding expert and professor at Dartmouth's Tuck School of Business. The smartphone wars have become a lot like politics, with battling Democrats and Republicans, said Rob Janoff, the designer of the Apple logo and an independent branding and design expert based in Chicago. "You can't carry that magic forever," Janoff said, but that does not mean consumers should dismiss mature brands. "I think people have to accept that companies that are out there, they age." Last year when it launched its previous version of the iPhone, Apple sold 9 million iPhone 5Ss and 5Cs in the first three days in stores. But drawing a comparison with the iPhone 6 is tricky as sales are based on availability, and Apple hasn't shared comparable details. Long Wait Also, this time the iPhone isn't launching in China on Friday, unlike last time, Shannon Cross, an analyst with Cross Research, explained. Many customers will need to wait until next month for their new iPhones after Apple logged a record 4 million first-day pre-orders, double the number for the iPhone 5 two years ago. Errand-service TaskRabbit said more than 500 people in the United States and London have hired individuals at $25 an hour to stand in line at Apple stores to grab the new iPhone, up 43 percent from requests during the iPhone 5 launch two year ago. Apple's iPhone is "easily broken and expensive to fix," said Jim Jackson, a 55-year old from Phoenixville, Pennsylvania, who participated in the survey. "Apple is following Samsung at this point in terms of design," Jackson added. "A couple of years ago they were making fun of Samsung because Samsung grew big and now they've gone big," he said, referring to the 4.7-inch iPhone 6 and 5.5-inch iPhone 6-Plus that will hit store shelves on Friday. That was the only area where Riggle saw innovation at Apple. "The only new idea they've come up with is that they're adjusting the size of their products," she said.

Stocks Slip From Highs as Market Attempts to Explode the Fed Code

Stocks finished only slightly higher today after jumping following the Fed announcement this afternoon.

AP

The S&P 500 gained 0.1% to 2,001.57, while the Dow Jones Industrial Average rose 0.2% to 17,156.85. The Nasdaq Composite advanced 0.2% to 4,562.19 and the small-company Russell 2000 finished up 0.3% at 1,153.89.

Why the reversal? Maybe it was the fact that the Federal Reserve wasn’t as dovish as equity investors first thought. Nomura’s Jens Nordvig, for one, notes that “under the surface, the Fed is getting more hawkish.” He explains why:

Interest rate projections for 2015 and 2016 shifted up notably. And the new rate projections for 2017 were also showing high numbers, not far from the 'terminal rate'. In addition, Yellen stressed many times in the press conference that the Fed's view is data dependent. Moreover, she pushed back explicitly on the notion that 'considerable time' is a calendar commitment. Hence, even with an unchanged statement, the net result is weaker forward guidance, and hence the move higher in rates on the day.

Allianz’s Steve Malin thinks the focus on whether the Fed is hawkish or dovish misses the point. Instead, it should be on certainty versus uncertainty, he says. The Fed “needs really strong evidence that it’s time to move.” That means evidence that inflation is anchored at or above 2% and that the job market is further along in its recovery, of course, but also that the financial system is equipped to handle higher rates and that the Fed has the tools it needs to raise rates and make them stick. The Fed took a big step towards the latter with its second press release of the day, in which it laid out how it would tighten monetary policy when the time comes.  Says Malin: “I would say they made progress.”

3 Big Tech Stocks on Traders' Radars

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.


Read More: Warren Buffett's Top 10 Dividend Stocks



From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.


Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

Without further ado, here's a look at today's stocks.

Read More: 10 Stocks George Soros Is Buying

Hewlett-Packard

Nearest Resistance: N/A

Nearest Support: $36

Catalyst: Q3 Earnings

Hewlett-Packard (HPQ) added onto the progress it's made in the first half of the year, rallying more than 5.35% yesterday following the firm's third-quarter earnings numbers. Excluding one-time items, H-P earned 89 cents per share for the quarter, and grew revenues for the first time in close to three years, signaling that the arduous process of turning the ship around may be showing some results.

H-P has been a "buy the dips" stock all year long, bouncing its way higher off of the 50-day moving average like clockwork this year. Yesterday's big bounce higher may be a larger run than any of its previous single-day rallies, but the breakout above prior resistance at $36 makes now a great opportunity to latch onto the buying. If you decide to jump in here, I'd recommend keeping a protective stop on the other side of the 50-day moving average.

Intel

Nearest Resistance: N/A

Nearest Support: $33

Catalyst: Technical Setup

Intel (INTC) is another tech name that's rallying hard on big volume this week. Shares added another 1.88% onto their performance on Thursday thanks to a bullish technical setup in shares. Intel has been going straight up since February, transitioning from an uptrend to a parabolic move higher in the second quarter of the year. Today's breakout to new highs is sending an important momentum signal to buyers.

New highs are significant from an investor psychology standpoint because they mean that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to buy here, keep a tight stop in place.

58.com

Nearest Resistance: $57.50

Nearest Support: $45

Catalyst: Q2 Earnings

Chinese online marketplace 58.com (WUBA) sold off by 7.6% on big volume yesterday, swatted down following the firm's second quarter earnings numbers. While revenues came in above expectations at $64.6 million, forecasts for the third quarter were lower than Wall Street was hoping for. Next quarter, the firm expects to earn between $66 million and $68 million, while analysts were forecasting sales to hit $74.7 million three months from now.

Technically speaking, WUBA is down, but it's not out yet. The stock drop yesterday didn't violate WUBA's long-term support line, and shares continue to bounce their way higher in an ascending triangle pattern. If shares can catch a bid above resistance at $57.50, this speculative name is a buy.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Stocks Insiders Love Right Now

>>Must-See Charts: Still Time to Buy These 5 Stocks

>>5 Stocks Set to Soar on Bullish Earnings

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Follow Jonas on Twitter @JonasElmerraji

Does Deere Look Attractive To the Stockholders?

The agro equipment giant, Deere & Co. (DE), is going through the toughest of times as crop prices are at all-time lows, and this has been taking a toll on equipment purchases at its home turf. Also the company has been witnessing continued decline in top and bottom lines for the previous few quarters. Soon after the USDA confirmed the mounting pressure on commodity prices early this year, Deere's management opted to take a cautious stand in terms of their forward sales guidance for the fiscal year. Under such a scenario, shareholders are tensed on whether they should be holding the stock for a long-term. Let's take a closer look at Deere's financial playbook to get to the final answer.

Stock price and earnings indicator

Deere has been facing its own set of problems lately in the past four months and has fallen approximately 12% since this May. The stock is roughly flat over the past twelve months. Just a few months ago, Deere's stock price was at the peak and the shares had reached $95 in May. Also from the chart below it can be estimated that Deere has a strong support at around $80 and faces strong resistance at around $91 to $92.

Soon after the company reported two consecutive disappointing quarter earnings, and with analysts forecasting lower top and bottom line for the pursuant quarters – the stock has just slid downwards since May.

The short term outlook of the company might not look inspiring. Sales hit $35 billion last year and are expected to be down by 6% to $32.8 billion this year. Also, as the crop prices are expected to remain low till next year, sales for Deere are estimated to drop to $30.7 billion by fiscal 2015. Last year the earnings stood at $9.09 per share, whereas analysts predict that this year Deere's earnings would hover around $8.37 per share and for the next fiscal year it's projected to be close to $6.83. This means that earnings are likely to exhibit a 25% decline in two years. The major factors contributing to such a dramatic decrease in earnings are the ugly revenue numbers which are on down trends due to lowered demand for Deere's farm equipment.

Despite the decline in EPS expected in each of the next two years, analysts still predict that Deere will grow its earnings by an annual rate of 4.5% over the coming five years. So, although Deere is not much of a growth story at this point of time, investors with a long-term view can anticipate modest earnings growth down the road.

Dividend payout remains firm

Though Deere posted really disappointing numbers in the past two quarters, it also announced an 18% increase in dividends in May this year. As depicted in the chart above, dividend payout has been set as one of the company's top priorities since 2010 when it revised the dividend policy to add to an investor's smile.

While earnings are expected to drop year on year for Deere, analysts are hoping to see a dividend payout of 35% in 2015 from the company perspective. The regular dividend payout policy of the company creates a significant margin of security for the worried investors and allows for potential for further dividend increase in the near future. Deere is also on track to return an additional $2 billion to investors in the form of share buyback in 2014.

Also to be noted is the ability of t

This E&P Firm Is Attractive Enough

In this article, let's take a look at Cabot Oil & Gas Corporation (COG), a $14.21 billion market cap company, which is an independent oil and gas company engaged in development, exploration and production in North America

Huge Assets

The company´s operations are primarily focused in the Marcellus Shale in Pennsylvania, the Eagle Ford in south Texas and in Oklahoma. The company's asset base is now among the most diverse of the small oil and gas firms.

At the end of last year, the company had reserves of 5.5 trillion cubic feet of equivalent, with net production of 1,130 million cubic feet of equivalent per day. Natural gas represented 96% of production and 97% of reserves.

The firm controls a highly productive, low-cost drilling inventory targeting the dry gas Marcellus shale in Pennsylvania.

The Marcellus Shale

It is the star of the firm, because it is the largest operating area and represents its largest growth and capital investment area, with approximately 200,000 net acres in the dry gas window of the play.

Last year, the production had an increase of 70.3%, from 209.3 Bcfe to 356.5 Bcfe. This number represents about 86% of total production. Further, the gas company invested $815.8 million here and drilled 94.5 net horizontal wells.

Eagle Ford Shale

The company holds more than 60,000 net acres in this oil window at relatively low cost. Last year, production of net liquids and natural gas has increased and represents approximately 3% of full-year production. Further, the firm invested $261.5 million s.

Estimated One-Year Price

According to Yahoo! Finance, the estimated one-year target share price is $42.33, so if you buy shares at current market price ($34.05), your return from price appreciation would be 24.3%. In addition, you have to consider any cash flow received by the asset. So for holding the stock one year, you'll be paid a dividend of 2 cents per share each quarter, totalizing $0.08 at the end of the year. If we divide this number by current price per share, we obtain the dividend yield, which is the other component of the return on an investment for a stock, and in this case is 0.23%. So the total expected return for investing in Cabot is 24.53%, which we believe is an attractive stock return.

Revenues, Margins and Profitability

Looking at profitability, revenue growth by 18.57% led earnings per share increased in the most recent quarter compared to the same quarter a year ago ($0.28 vs $0.21). During the past fiscal year, the company increased its bottom line. It earned $0.67 versus $0.31 in the prior year. This year, Wall Street expects an improvement in earnings ($1.15 versus $0.67).

Finally, let´s compare the best measure of performance for a firm's management: the return on equity. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry.

Ticker	Company	ROE (%)
COG	Cabot	12.69
ECA	Encana Corp.	4.59
CPG	Crescent Point Energy Corp.	1.70
CXO	Concho Resources Inc.	6.68
EQT	EQT Corp.	9.68
	Industry Median	-1.00

The company has a current ROE of 12.69% which is higher than the industry median and the ones exhibit by Encana (ECA), Crescent Point Energy (CPG), Concho Resources (CXO) and EQT (EQT). In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment. It is very important to understand this metric before investing and it is important to look at the trend in ROE over time.

Relative Valuation

In terms of valuation, the stock sells at a trailing P/E of 37.8x, trading at a discount compared to the average of the industry. To use another metric, its price-to-book ratio of 5.8x indicates a premium versus the industry average of 1.86x while the price-to-sales ratio of 7.2x is above the industry average of 4.2x.

As we can see in the next chart, the stock price has an upward trend in the five-year period. If you had invested $10.000 five years ago, today you could have $35.458, which represents a 28.8% compound annual growth rate (CAGR).

Final Comment

With a good asset quality, Cabot is well positioned among the E&P firms, with good number of available drilling locations, reasonable per-unit production costs and not excessive prices.

The Marcellus assets continued to have good productivity and we think this trend will continue. The U.S. natural gas industry could remain under pressure but we think Cabot has good drivers for growth. The Marcellus will reach 90% of Cabot's production in the near future. Moreover, the PE relative valuation and the return on equity that significantly exceeds the industry average and make me feel bullish on this stock.

Hedge fund gurus like Leon Cooperman (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio), John Burbank (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Ron Baron (Trades, Portfolio) and John Keeley (Trades, Portfolio) added this stock to their portfolios in the second quarter of 2014.

Disclosure: Omar Venerio holds no position in any stocks mentioned

Also check out: Jean-Marie Eveillard Undervalued Stocks Jean-Marie Eveillard Top Growth Companies Jean-Marie Eveillard High Yield stocks, and Stocks that Jean-Marie Eveillard keeps buying John Burbank Undervalued Stocks John Burbank Top Growth Companies John Burbank High Yield stocks, and Stocks that John Burbank k

How Coca-Cola Built Up Its Business Way Beyond Soda

www.minutemaid.com As demonstrated by its recent purchase/asset-swap deal with energy drink company Monster Beverage (MNST), Coca-Cola (KO) is more than just a slinger of soda. The company draws billions of dollars in revenue from a other liquids, including Dasani water and Powerade sports drinks. That's par for the course in the sugary beverage industry. Coke's eternal rival PepsiCo (PEP) does a brisk business selling drinks that aren't soda, such as the Starbucks (SBUX) ready-made concoctions it offers in partnership with the coffee giant. PepsiCo, in fact, draws most of its revenue from food products. These include notable brands such as Doritos and Quaker Oats. Diversification is key in this business; there's only so much cola the world is willing to drink. With that in mind, here's a look at a trio of influential asset buys Coke made outside of its signature fizzy product line that have molded it into the behemoth we all know and love and will continue to shape the company. Minute Maid (1960) The history of Coca-Cola as a brand and company can be broken down roughly into three eras -- the soda fountain era (beginning when Coke was first served in 1886 to 1898), the bottle era (from 1899 to 1959), and what we can call the diversification era (from 1960 to the present). The latter began when Coke made its first non-soda buy that year. Through a stock swap it acquired the now-familiar line of orange juice products, notable for being the first such juice available in frozen concentrate form (making it available year-round no matter a customer's location). From then on, Coca-Cola became a company selling more than only carbonated beverages. This was a smart move -- these days, the firm boasts 11 non-soda brands that each take in more than $1 billion in revenue. They're Minute Maid (U.S.), Del Valle (South and Central America), Georgia (Japan), Aquarius (Japan), Powerade (U.S.), BonAqua (Hong Kong), Sokenbicha (Japan), Dasani (U.S.), Vitamin Water (U.S), Simply Orange (U.S.) and Minute Maid Pulpy (China). Columbia Pictures (1982) The early 1980s marked a brief era when Coke ventured far out of the beverage business to diversify. The target asset was Columbia Pictures, a storied Hollywood movie studio. Coke made an overwhelming bid for the company of $750 million, and just like that, it was in the film business. The results were mixed. The studio had success with several releases (like the enduringly popular underdog story "The Karate Kid"), but also unloaded the comedy "Ishtar" on the world. The expensive, poorly reviewed film became one of the most notorious bombs in Hollywood history. In spite of Columbia's wins (which also included TV hits thanks to Embassy Communications, a small-screen production outfit it bought in 1985), it couldn't escape the hit to its finances and reputation incurred by the $40 million loss from "Ishtar." It was time for Coke to return to fundamentals, and in 1989 it sold the bulked-up Columbia to a much more entertainment-oriented company, Japanese electronics giant Sony (SNE), for a fizzy $3.4 billion. Keurig Green Mountain (2014) Sometimes it's better to take an anchor stake -- and reach production, distribution and marketing deals with a target company -- rather than buy it outright. That seems to be the ambition for Coke with the Monster Beverage deal, as well as the arrangement it reached this past February with Keurig Green Mountain (GMCR). For $1.25 billion, Coke took a 10 percent stake in Keurig (later raised to 16 percent), maker of the K-Cup beverage pod brewing system. The two also signed a 10-year agreement to mutually develop Coke-branded offerings for the latter's Keurig Cold at-home drink-making device. Cold is a clear attempt by Keurig to grab some do-it-yourself-soft-drink market share from SodaStream (SODA), which has seen its sales grow robustly over the past few years. There's money to be made in this market, so Coke and Keurig are making a lunge for it. Expanding by Degrees Might this be the future for Coke: purchases of minority stakes and co-development deals? The company's acquisitions have historically been full-on buys rather than strategic purchases. The Monster Beverage and Keurig deals indicate a more cautious approach for the soda maker, as befits its stature as a conservative enterprise investors can rely on for profits and dividend income. Time will tell if this style of expansion will sweeten Coke's results or not. More from Eric Volkman
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