Longtime Progressive CEO Peter Lewis dies

MAYFIELD VILLAGE, Ohio (AP) — Peter Lewis, who shepherded Progressive from a small-time operation to one of the largest auto insurers in the country and later became the billionaire backer of marijuana legalization, died Saturday. He was 80.

Philanthropic adviser Jennifer Frutchy said Lewis died at his home in Coconut Grove, Fla.

Progressive President and CEO Glenn Renwick said the company owes its growth and its culture of openness to Lewis. He said Lewis' caring and honesty are "bedrock" values of the company.

"The history of Progressive is very much the history that Peter Lewis laid down," Renwick said. A willingness to take risks and constantly learn and grow are principles that can be traced to Lewis, he added.

"He really was a special person, there's no doubt about that," Renwick said.

Lewis became chief executive officer of Progressive in 1965, built from the company his father co-founded in 1937. Lewis held the leadership post for 35 years, during which Progressive — and Lewis' fortune — steadily grew. In 2006, Forbes calculated his net worth at $1.4 billion.

Lewis turned his wealth into support for a number of progressive causes, including strong support for marijuana law reform that began after he used it following a leg amputation. Lewis helped bankroll marijuana-related causes in Ohio, Washington and Massachusetts.

In a 2011 interview with Forbes magazine, Lewis said he first tried marijuana at age 39. He said he found it to be "better than scotch" and later relied on it for pain management.

"I don't believe that laws against things that people do regularly, like safe and responsible use of marijuana, make any sense," he told Forbes. "Everything that has been done to enforce these laws has had a negative effect, with no results."

Lewis also spent time as a trustee of the Guggenheim Museum and stepped down in 2005, saying he saying disagreed with the institution's focus on international expansion. He had been a leading benefactor of t! he museum, donating tens of millions of dollars.

For a time Lewis largely stopped giving to local Cleveland-area concerns, saying there was little cooperation among civic leaders or public development. Last year, however, he donated $5 million to the Cleveland Institute of Art, the Plain Dealer reported. At the time, he said he made the donation because a development plan that impressed him in 2004 had met his expectations.

Lewis also gave generously to his alma mater, Princeton University. He donated more than $220 million to the school, where he also served as a trustee.

Volkswagen: Union vote won’t affect U.S. plans

NASHVILLE, Tennessee (AP) — Volkswagen, the world's third-largest automaker, is shocking Southern union foes by engaging in talks with the United Auto Workers about creating a German-style "works council" at its Chattanooga, Tenn., plant.

A top Volkswagen labor official said Thursday that a pending decision about union representation for workers at the automaker's lone U.S. plant will have no bearing on whether the company will decide to add the production of another SUV vehicle there or make it in Mexico.

Southern politicians say they fear a successful UAW organization of the Volkswagen plant would hurt the region's ability to attract future investment and that it could lead to the spread of organized labor to other foreign car makers.

But labor leaders like Bernd Osterloh, head of the Volkswagen's global works councils and a member of the company's supervisory board, stress that the Chattanooga plant is the only major Volkswagen facility around the globe that does not have formal worker representation.

Osterloh visited the plant Thursday and later met with Republican Gov. Bill Haslam in Nashville. In his only U.S. interview, Osterloh told The Associated Press that while the company's dedication to "co-determination" supports the creation of works councils at all its plants, market forces will decide whether the Chattanooga plant is expanded.

"Those two things have nothing to do with each other," Osterloh said during the interview, which was conducted in German. "The decision about a vehicle will always be made along economic and employment policy lines. It has absolutely nothing to do with the whole topic about whether there is a union there or not."

Labor representatives, who make up half of the Wolfsburg, Germany-based automaker's supervisory board, have pressured VW management to enter discussions about union representation at the Chattanooga plant because U.S. law requires that any works council be created through an established union.

In Germany, wages a! re bargained through the union, while works councils negotiate plant-specific matters such as job security and working conditions for all employees.

"It's important to note that the issue for us is works councils, not unions," Osterloh said. "And your law says if I want to transfer authority to a works council, I need to work with a union."

The UAW has said it has collected signatures from a majority of workers at the plant, meaning Volkswagen could recognize the union without a formal vote.

Opponents of the UAW, including Haslam and U.S. Sen. Bob Corker, R-Tenn., have called for a secret ballot.

Osterloh said he takes no position on whether the company should automatically recognize the union, and that it's up to management to decide whether to require a vote.

"Volkswagen is led by its board, and not by politicians," he said. "The board will certainly make the right decision."

Corker, a former Chattanooga mayor, has been among the most vocal critics of unionization efforts at the plant. He has urged Volkswagen to abandon talks with the UAW, suggesting the company would become a "laughingstock" if it welcomed the union into the plant.

Osterloh shrugged off Corker's comments, and stressed that it's up to the workers at the plant to decide whether to be organized and by whom.

"Volkswagen considers its corporate culture of works councils a competitive advantage," he said.

International ETFs May Be More Profitable

NEW YORK (ETF Expert) -- The S&P 500 has not experienced a 10% correction since Oct. 3, 2011. That's a heck of run without a reality check.

Yet, according to the researchers at Bespoke Investment Group, 515 trading sessions without a serious selloff is not unprecedented. The S&P 500 rocketed ahead throughout the 1990s (10/90-10/97) as well as in the 2000s (3/03-10/07) bull without a 10% price cut. The conclusion that many analysts are drawing from the data is that there is little reason to sweat the absence of a sanity-restoring setback.

Is there a problem with documenting occasions when markets pressed forward for multiple years without a hitch? Absolutely. For one thing, we're ignoring the number of occasions when markets did the opposite; that is, since 1928, the S&P 500 sold off by 10% in an overwhelming majority of years. Indeed, it is quite unusual for a 1990s- or 2000s-style campaign. Secondly, both of those campaigns ended with irrational exuberance giving way to -50% life-altering buzz cuts.

This is not to suggest that stocks will fail to grind higher in the intermediate term. They probably will. Ultra-slow employment gains coupled with U.S. political dysfunction ensure that the U.S. Federal Reserve will keep pumping greenbacks into the world's financial system. And let's face it, keeping yields low is the key to the revival of risk-on investing. That said, should investors embrace history when the data are technical (i.e., number of trading days without a 10% correction), but ignore history when the data are fundamental? For example, European stocks typically trade at similar price-to-earnings ratios as U.S. counterparts. Right now, though, SPDR Europe STOXX 50 (FEZ) is roughly 15% "cheaper" than SPDR S&P 500 (SPY); Vanguard All World (VEU) trades at an approximate 20% discount to SPY. There are other "fun facts" from the fundamental file as well. Between 1940 and 1995, the S&P 500's price-to-revenue ratio did not surpass 1.5. The P/S ratio for the S&P 500 today stands at 1.6. Worse yet, sales growth at U.S. corporations in the benchmark averaged a meager 3% in the previous four quarters. In the current environment where we have weak revenue growth -- in a historical framework where price-to-sales ratios are rarely this elevated -- perhaps it is more sensible to to consider international stock ETFs with lower P/S ratios.

Using a recent screen at Morningstar, here are 5 international ETFs with lower P/Es and lower P/S ratios than the S&P 500 SPDR Trust (SPY):

Value In Looking Abroad?
					P/E		P/S
SPDR S&P China (GXC)					10.4		1.1
First Trust Canada AlphaDEX (FCAN)					11.2		1.0
iShares Belgium (EWK)					11.7		0.8
Global X Norway 30 (NORW)					11.9		1.3
iShares Israel (EIS)					12.6		0.8

The world's second-largest economy may have a number of structural issues. Nevertheless, consumption by China's middle class is rising and the country's expansion remains on track. SPDR S&P China (GXC) is a reasonable way to tap into the growth.

Belgium may also be a bargain. The iShares Belgium Fund (EWK) bounced off its 200-day trendline in June and hasn't looked back since. Granted, EWK is likely to travel in the same general direction as other foreign stocks in the region. Still, the relative affordability combined with recent one-month and three-month momentum may make EWK particularly profitable. You can select a diversified approach to adding international exposure through funds such as VEU and/or iShares MSCI EAFE Small Cap (SCZ). Conversely, you can choose individual countries through single country funds like GXC and/or EWK. Regardless, you must be steadfast in your commitment to downside protection. Utilize a method for minimizing downside risk (e.g., stop-limit loss orders, hedges, trend analysis, etc.) and stick to it. Follow @etfexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site. Gary Gordon reads: Real Clear Markets Jeff Miller indexuniverse Charles Kirk On Twitter, Gary Gordon follows: Jonathan Hoenig Doug Kass Hard Assets Investor

Investors Fret Over Apple Pre-Order Figures (AAPL)

Just as investors had anxiously awaited the new iPhone devices from Apple (AAPL), so too are they waiting on the important iPhone 5c pre-order figures.

Typically, Apple releases its pre-order results once a device actually goes on sale; the iPhone 5S debuts on Friday and is not available for pre-order. Investors are more fixated on the iPhone 5C and its pre-order figures, as the device looks to break the tech firm into a key emerging market. Until the numbers for the 5C are released, the market sits on eggshells, as does Apple’s stock.

Shares of Apple have been sliding since the new iPhones were announced, but with the recent China Mobile deal, revenues could see a nice increase as the company’s overall reach takes a big leap forward.

Apple shares were down $14.78, or 3.28%, at Monday’s close. The stock is down over 15% this year.

Politics Aside for This Bank, if That's Possible

Politicians and bandwagons seem to go hand in hand with red tape, however, despite all the obstructions, Peter Stephens, of The Motley Fool UK still has high hopes for this bank.

It always fascinates me how politicians seem to jump on bandwagons. Indeed, the Parliamentary Commission on Banking Standards recently commented that it is "important for all the options for Royal Bank of Scotland's (LN:RBS) (US:RBS) future structure to be examined as a matter of urgency."

This seems to indicate that the Commission is seeking a break-up of RBS between a good RBS and a bad RBS so as to create two different entities. This idea is backed by a whole host of MPs, former Bank of England Governor, Lord King, and former Chancellor, Lord Lawson. Indeed, it seems to be a bandwagon worth jumping on, so it would be of little surprise to see other MPs follow suit and tie their respective flags to this particular mast.

Of course, the debate surrounding whether RBS should be split up or not is, for me, something of a red herring. This is because the Royal Bank of Scotland is already well into the process of splitting itself into a good and a bad bank; however, it is just not labeling itself as such.

The two areas are, according to RBS, core and non-core, with the core part of the bank representing the bits it wants to keep as part of what it hopes will be a thriving RBS. The non-core assets, meanwhile, are those that it either wants to sell because they require too much capital for too little return, or else it is being forced to sell them (as in the case of the sale of English branches).

So, the debate in Westminster Village is, in my view, rather disingenuous to Stephen Hester, RBS's current CEO, because he has worked hard to create a good bank and dispose of the bits that arguably made RBS a bad bank.

This strategy is starting to show signs of real progress, with RBS forecast to record earnings per share of around 30p in 2014. This puts shares on a forward price-to-earnings (P/E) ratio of just ten, which compares very favorably to the FTSE 100 on 14.8 and to the wider banking sector on 16.1.

Furthermore, although only a small proportion of such earnings are forecast to be paid out as dividends, I believe this is a prudent position for the bank to adopt. Using the capital to further shore up the balance sheet seems to be more sensible than returning cash to shareholders, at least until RBS becomes a really good bank.

Peter owns shares in RBS.

Read more from The Motley Fool UK here...

The High Cost of Doing Business

In the following video, Fool contributor Matt Thalman discusses how the cost of doing business in certain industries can really cut a company's profits down to just a few percent of its total revenue. A company like Alcoa (NYSE: AA  ) or United States Steel (NYSE: X  ) are two great examples of organizations that are at the mercy of an industry-wide commodity pricing system, which has reduced profit margins to nearly nothing over the past few years.

With low margins, the likelihood that a company can make it through another tough economic climate is very unlikely. So, as an investor, focusing on companies that have pricing power and strong double-digit profit margins will help ensure that the next recession doesn't send your portfolio into the dumps.

Tax increases that took effect at the beginning of 2013 affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes, and potentially even lower your tax bill. In our brand-new special report, "How You Can Fight Back Against Higher Taxes," the Motley Fool's tax experts run through what to watch out for in doing your tax planning this year. With its concrete advice on how to cut taxes for decades to come, you won't want to miss out. Click here to get your copy today -- it's absolutely free.

The Birth of Two Legendary Banks

On this day in economic and business history...

Before it became the banking capital of the world, London first had to establish its banks. That process began on July 5, 1672, when Richard Hoare set up the goldsmithing business that would become C. Hoare & Co., the oldest continuously operating bank in the United Kingdom. The Hoare bank was the vanguard in a wave of 17th-century English goldsmith banking operations, and today it's the only surviving major and privately owned bank in the city. It was guided by 11 generations of Hoares until hiring its first non-family CEO in 2009, and the Hoare family continues to be majority owner, which makes C. Hoare & Co. one of the oldest family-owned and -operated firms in the world, as well as one of the oldest banks.

A neutral banking powerhouse
Credit Suisse (NYSE: CS  ) was founded by Swiss leading light Alfred Escher (no relation to the artist) on July 5, 1856. Credit Suisse offers the following details on its origins:

The original purpose of the new bank was to finance the expansion of the railroad network (e.g. the Nordostbahn/North-East Railway) as well as further industrialization in Switzerland. The founding of the company was a huge success: Initial stock was issued with a value of three million francs, but within just three days the total value of subscriptions amounted to 218 million francs.

The bank under Escher was a major financier of Swiss railway expansion -- which was to be expected of a bank led by Switzerland's chief proponent (and major owner) of private railroads. It also went on to play a pivotal role in developing other Swiss industries, and it would have a hand in modernizing the Swiss currency. Credit Suisse was an early internationalist: Its first foreign office opened in New York City in 1870. This global expansion also helped drive the growth of Credit Suisse's burgeoning insurance operations.

By the 20th century Credit Suisse had begun to expand from its financier role to become more of a retail bank. Switzerland, while not immune to the Great Depression, survived the two wars that bookended the Depression thanks to a well-known national neutrality policy. As a result, Credit Suisse became both a major financier of postwar reconstruction and a national headache when Holocaust survivors later filed a class-action lawsuit over problems retrieving their dead relatives' assets. Credit Suisse began to expand aggressively during the 1990s with moves including the acquisition of New York investment bank First Boston. Credit Suisse is now one of the world's largest banks, with more than $1 trillion in total assets.

Ronald gets a promotion
McDonald's (NYSE: MCD) joined the New York Stock Exchange on July 5, 1966. The burger chain was a recent entrant to public markets, as its IPO had taken place only 14 months earlier. In that short time, the company's hot stock had already doubled and been split once as a result. By the end of the decade, shareholders would enjoy two more splits and a special stock-issue dividend. By the time McDonald's joined the Dow Jones Industrial Average (INDEX: ^DJI) 19 years after graduating to the Big Board, a single share worth $32.25 in 1966 had grown into 27 shares worth $1,800.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

Why Was My Credit Card Declined? 4 Common Reasons

One of the most embarrassing financial moments any of us will encounter is having our credit card declined. And somehow, this always seems to happen at the most inopportune moments. Like when you're at the grocery store and a long line of customers is waiting for you to get out of the way, or when you're out on a big date and the waitress has to come back to the table and announce that you have not, in fact, been able to pay for your date's meal. Mortifying!

While having your credit card declined is certainly uncomfortable in a social sense, what's more unsettling is when you're not sure of the reason behind the merchant's rejection of your card. Many of us use our credit cards as our primary tool for making day-to-day purchases, so getting locked out of being able to buy gas or groceries is certainly enough to give the plastic-dependent among us a fright.

There's no one explanation for why credit cards get declined -- in fact, there are many. But if your card has been refused and you're not sure why, it's probably for one of these four common reasons.

1. You've made a "suspicious" purchase
Credit card companies have become savvy at recognizing fraudulent purchases made with your card; often, they're able to detect a nefarious charge before you can. However, the net that they cast to catch credit criminals is very wide -- sometimes too wide. Occasionally, your credit card company will mistakenly label a legitimate charge (one that you've made) as fraudulent purchase and will temporarily stop your ability to use the card. Of course, they think they're stopping a thief, but in reality you're bearing the brunt of their overzealousness.

Not to worry, though: This misunderstanding is usually cleared up with a phone call to the credit card company to verify that your card has not, in fact, been compromised.

2. You've reached your credit limit
One of the most straightforward reasons your credit card could have been declined is that you've reached the credit limit your card issuer set on the card and the company simply won't let you borrow any more money until you've made a payment. Maxing out your credit card impedes your ability to make purchases, but it's also bad news for your credit score. In general, it's best not to exceed 30% of the available credit you've been issued on each card, so if your credit card is maxed out, you've well exceeded that guideline.

To be able to use your card again -- and keep your credit score from plummeting -- you'll need to make a hefty payment to it, pronto.

3. Your card has been blocked by a hotel or rental-car company
If neither of those scenarios can be blamed for getting declined, think about the places you've used your card recently. If you've paid for a hotel stay or a rental car with your card, either of those businesses could be the culprit.

Hotels and rental car companies frequently issue "holds" on a customer's credit card when the imprint of the card is initially taken. This is to ensure that the customer will have enough available credit to pay for the car rental or hotel room when the final charges are placed. So if you've recently stayed in a hotel or rented a car, call your credit card company and see if a lingering hold is the reason your credit card stuck in payment purgatory.

4. Your card has been exposed to a potential threat
Again, credit card companies have become very adept at picking up on potential identity theft, so if there's a possibility that your card could have been exposed to a threat, your card might be rendered temporarily unusable. If you've purchased something online at a site that wasn't secure or used your card in a store that may have been the subject of a credit card skimming scheme, your credit card company will make every effort to keep your card from being used for unauthorized purchases -- including shutting the card down.

If your card has been declined and you're completely stumped as to why, be sure to get in touch with your credit card company -- there's a good chance the company is trying to protect you from a scam.

There are lots of potential reasons your credit card could have been declined, so be sure to do some investigating right away. Check your credit limit and give your credit card company a call; you'll probably turn up the answer -- and be able to take appropriate action -- faster than you think!

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>5 Stocks Poised for Breakouts

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

>>5 Rocket Stocks Ready for Blastoff

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Lindsay

My first earnings short-squeeze trade idea is water management and road infrastructure products and services provider Lindsay (LNN), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Lindsay to report revenue of $155.68 million on earnings of 91 cents per share.

The current short interest as a percentage of the float Lindsay is extremely high at 21.3%. That means that out of the 12.56 million shares in the tradable float, 2.67 million shares are sold short by the bears. This is a huge short interest on a stock with a low tradable float. Any bullish earnings news could easily set off a monster short-squeeze for shares of LNN post-earnings.

>>5 Stocks Spiking on Big Volume

From a technical perspective, LNN is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been downtrending badly for the last month, with shares plunging lower from its high of $90 to its recent low of $78.75 a share. During that move, shares of LNN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of LNN have started to bounce off that $78.75 low and it's starting to move within range of triggering a near-term breakout trade post-earnings.

If you're bullish on LNN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 200-day moving average at $81.71 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 133,886 shares. If that breakout hits, then LNN will set up to re-test or possibly take out is next major overhead resistance levels at $84 to $87 a share. Any high-volume move above $87 will then give LNN a chance to tag $90 a share.

I would simply avoid LNN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day at $78.89 a share and below some near-term support at $78.75 a share with high volume. If we get that move, then LNN will set up to re-test or possibly take out its next major support levels at $73 to $70 a share.

Safeway

Another potential earnings short-squeeze play is food and drug retailer Safeway (SWY), which is set to release its numbers on Thursday before the market open. Wall Street analysts, on average, expect Safeway to report revenue of $8.52 billion on earnings of 16 cents per share.

Just recently, Jefferies initiated shares of Safeway with a hold rating and a price target of $32 per share.

>>3 Huge Stocks on Traders' Radars

The current short interest as a percentage of the float for Safeway is very high at 19.8%. That means that out of the 236.01 million shares in the tradable float, 47.13 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.8%, or by about 1.27 million shares. If the bears are caught pressing their bets into a bullish quarter, then shares of SWY could soar sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, SWY is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months, with shares pushing higher from its low of $22.19 to its recent high of $32.72 a share. During that move, shares of SWY have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SWY within range of triggering a near-term breakout trade post-earnings.

If you're in the bull camp on SWY, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $32 a share and then once it takes out its 52-week high at $32.72 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 5.11 million shares. If that breakout triggers, then SWY will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $40 to $42 a share.

I would simply avoid SWY or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $30 a share with high volume. If we get that move, then SWY will set up to re-fill some or its entire previous gap up zone from September that started at $28 a share. If that gap gets filled to the downside, then SWY could easily tag its 50-day at $27.75 a share.

Bank of the Ozarks

One potential earnings short-squeeze candidate is banking player Bank of the Ozarks (OZRK), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Bank of the Ozarks to report revenue of $69.57 million on earnings of 60 cents per share.

>>5 Cash-Hoarders to Triple Your Gains

The current short interest as a percentage of the float for Bank of the Ozarks is pretty high at 9.7%. That means that out of the 31.18 million shares in the tradable float, 3.16 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low float. Any bullish earnings news could easily spark a sharp short-covering rally for shares of OZRK post-earnings.

From a technical perspective, OZRK is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $45.05 on the downside and $48.94 on the upside. Any high-volume move above the upper-end of that range could trigger a solid breakout trade for shares of OZRK post-earnings.

If you're bullish on OZRK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average of $47.38 a share and then once it takes out its 52-week high at $48.94 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 125,254 shares. If that breakout triggers, then OZRK will set up enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60 a share.

I would avoid OZRK or look for short-biased trades if after earnings it fails to trigger that move and then drops back below some key near-term support levels at $46 to $45.05 a share with high volume. If we get that move, then OZRK will set up to re-test or possibly take out its next major support levels at $43 to its 200-day at $42.44 a share.

Micron Technology

Another earnings short-squeeze prospect is global manufacturer and marketer of semiconductor devices Micron Technology (MU), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Micron Technology to report revenue of $2.70 billion on earnings of 24 cents per share.

Just recently, Citigroup raised its price target on shares of Micron to $30 per share from $19 per share, citing higher DRAM price assumptions, and reiterated its buy rating on the stock.

>>4 Tech Stocks Rising on Unusual Volume

The current short interest as a percentage of the float for Micron Technology is pretty high at 10.9%. That means that out of the 1.03 billion shares in the tradable float, 111.99 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.5%, or by about 4.86 million shares. If the bears are caught pressing their bets into a strong quarter, then shares of MU could explode higher post-earnings as the bears jump to cover some of their short positions.

From a technical perspective, MU is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $9.07 to its recent high of $18.85 a share. During that uptrend, shares of MU have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MU within range of triggering a near-term breakout trade post-earnings.

If you're bullish on MU, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $18.85 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 43.01 million shares. If that breakout triggers, then MU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $23 to $25 a share.

I would simply avoid MU or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $17 a share with high volume. If we get that move, then MU will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $15.36 a share to $13 a share.

E2open

My final earnings short-squeeze idea is cloud-based, on-demand software solutions provider E2open (EOPN), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect E2open to report revenue of $17.23 million on a loss of 15 cents per share.

>>4 Tech Stocks Under $10 to Watch

The current short interest as a percentage of the float for E2open is very high at 14.6%. That means that out of the 10.50 million shares in the tradable float, 1.91 million shares are sold short by the bears. This is a large short interest on a stock with a very low tradable float. If the bulls get the earnings news they're looking for, then shares of EOPN could skyrocket higher post-earnings as the bears rush to cover some of their short positions.

From a technical perspective, EOPN is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $12.27 to its recent high of $25.86 a share. During that move, shares of EOPN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EOPN within range of triggering a near-term breakout trade post-earnings.

If you're in the bull camp on EOPN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $22.62 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 112,043 shares. If that breakout triggers, then EOPN will set up to re-test or possibly take out its all-time high at $25.86 a share. If that level gets taken out with volume, then EOPN could hit $30 or higher post-earnings.

I would avoid EOPN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $21.17 a share with high volume. If we get that move, then EOPN will set up to re-test or possibly take out its next major support levels at $19 to its 200-day at $18.43 a share. Any high-volume move below its 200-day could then out $17 to $16 into range for shares of EOPN.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Set to Soar

>>4 Hot Stocks to Trade (or Not)

>>5 Big Trades to Take Now

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.

5-year lows: Hecla Mining Co, Comstock Resources Inc, Permian Basin Royalty Trust, and Volcano Corp.

According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: Hecla Mining Co, Comstock Resources Inc, Permian Basin Royalty Trust, and Volcano Corp.Hecla Mining Co (HL) Reached $2.18The prices of Hecla Mining Co (HL) shares have declined to $2.18, which is only 3.2% above the 5-year low of $2.11. It is now 81.7% off the 5-year high of $11.56. Hecla Mining Co is owned by 4 Gurus we are tracking. Among them, 3 have added to their positions during the past quarter. 3 reduced their positions. Hecla Mining Company, a Delaware corporation was establsihed in 1891. Hecla Mining Co has a market cap of $761.916 million; its shares were traded at around $2.18 with and P/S ratio of 1.63. The dividend yield of Hecla Mining Co stocks is 0.46%.Hecla Mining Co. reported revenues of $117.5 million and net loss of $14.4 million for its 2014 second quarter financial results. GuruFocus Guru Arnold Van Den Berg (Trades, Portfolio) kept his position in Hecla Mining Co unchanged. He owns 3,909,257 shares. Arnold Scheider sold out his holdings of HL.Sr. Vice President & CFO James A Sabala sold 200,000 shares of HL stock in August. VP - Corporate Development Don Poirier and Director Anthony P Taylor sold 64,099 shares of HL stock in July and August.Comstock Resources Inc (CRK) Reached $11.84The prices of Comstock Resources Inc (CRK) shares have declined to $11.84, which is only 9.6% above the 5-year low of $10.70. It is now 76.0% off the 5-year high of $44.52. Comstock Resources Inc is owned by 4 Gurus we are tracking. Among them, 1 have added to their positions during the past quarter. 3 reduced their positions. Comstock Resources, Inc. is a Nevada corporation. It is an energy company which acquires, explores, develops and produces oil and natural gas in the United States. Comstock Resources Inc has a market cap of $566.669 million; its shares were traded at around $11.84 with and P/S ratio of 1.07. The dividend yield of Comstock Resources Inc stocks is 4.22%. Comstock Resources Inc had ! an annual average earnings growth of 6.70% over the past 5 years.Comstock Resources Inc. announced its 2014 second quarter results with revenues of $155.7 million and net income of $1.9 million.GuruFocus Guru NWQ Managers (Trades, Portfolio) kept its position in CRK unchanged and owns 1,354,120 shares while HOTCHKIS & WILEY reduced its position in the Company and owns 1,495,939 shares.President & CFO Roland O Burns bought 250 shares of CRK stock on 08/11/2014 at the average price of 25.45. VP of Reservoir Engineering Russell W Romoser and COO Mark A Williams sold 24,820 shares of CRK stock in May and August.Permian Basin Royalty Trust (PBT) Reached $11.96The prices of Permian Basin Royalty Trust (PBT) shares have declined to $11.96, which is only 6.0% above the 5-year low of $11.24. It is now 52.7% off the 5-year high of $23.74. Permian Basin Royalty Trust is owned by 2 Gurus we are tracking. Among them, 1 have added to their positions during the past quarter. 1 reduced their positions. Permian Basin Royalty Trust is a Texas Corporation. Permian Basin Royalty Trust has a market cap of $557.441 million; its shares were traded at around $11.96 with a P/E ratio of 11.40 and P/S ratio of 11.18. The dividend yield of Permian Basin Royalty Trust stocks is 8.89%.GuruFocus Guru Joel Greenblatt (Trades, Portfolio) reduced his position in Permian Basin Royalty Trust and owns 25,516 shares.Volcano Corp (VOLC) Reached $10.12The prices of Volcano Corp (VOLC) shares have declined to $10.12, which is only 2.3% above the 5-year low of $9.89. It is now 70.8% off the 5-year high of $33.90. Volcano Corp is owned by 2 Gurus we are tracking. Among them, 1 have added to their positions during the past quarter. 0 reduced their positions. Volcano Corporation designs, develops, manufactures and commercializes a suite of intravascular ultrasound (IVUS) and functional measurement (FM) products that enhance the diagnosis and treatment of vascular and structural heart disease. Volcano Corp has a market cap of $520.780 milli! on; its s! hares were traded at around $10.12 with and P/S ratio of 1.35.Volcano Corp. announced its 2014 second quarter results. The Company reported revenues of $102.6 million and net income of $282 thousand.EVP, Human Resources Heather S Ace sold 2,211 shares of VOLC stock on 06/12/2014 at the average price of 18.24.Go here for the complete list of 5-year lows.Also check out: Arnold Van Den Berg Undervalued Stocks Arnold Van Den Berg Top Growth Companies Arnold Van Den Berg High Yield stocks, and Stocks that Arnold Van Den Berg keeps buying Joel Greenblatt Undervalued Stocks Joel Greenblatt Top Growth Companies Joel Greenblatt High Yield stocks, and Stocks that Joel Greenblatt keeps buying

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2 Things AT&T Dividend Investors Need to Know

When it comes to dividend investing, AT&T (NYSE: T  ) is on many income investors' radars. And that makes sense: With a dividend yield of 5.2%, the stock nearly doubles the 10-year Treasury with its payouts. AT&T's stock has historically been a high-yielding investment. However, investors today find a vastly different company than the one they used to know.

AT&T started as a subsidiary of Bell Telephone -- named for legendary founder Alexander Graham Bell -- before buying out Bell in late 1899. The company operated as a monopoly for close to a century, until the U.S. government broke up the company in 1984 by requiring the company to spin off its regional subsidiaries into Regional Bell Operating Companies -- then termed "Baby Bells."

The product has also changed. What was initially a wireline operation has become mostly a wireless business. The company has ventured into other business lines -- with the DIRECTV  (NASDAQ: DTV  )  acquisition, AT&T is looking to become a larger presence in pay TV.

Here are two things about AT&T dividend investors need to know.

Own shares? We're about to water you down
The company is using shares to finance the bolt-on buyout of DIRECTV, and it appears this will involve diluting existing stockholders to the tune of nearly 900 million shares (as opposed to Verizon's recent use of debt to acquire full stake in its wireless business).

In addition, on a price-to-free cash flow basis, the company being acquired is actually more expensive than AT&T -- 23 times versus 17.15 over the prior 12 months. Investors would like to see lower numbers here because the company is paying for free cash flow that could go toward dividends, share repurchases, or debt. However, many companies reduce those costs by eliminating redundancy through so-called "synergies."

With that being said, more shares and lower cash flow could make it harder for the company to continue to raise its dividend. By growing the payout from $0.41 per share each quarter in 2009 to $0.46 in 2014, the company has provided solid but not flashy dividend growth of 2.3% per year.

Wireless is performing well, but wireline is withering
Among talk of the wireless wars and scrappy competition courtesy of T-Mobile CEO John Legere, so far AT&T has performed rather well in wireless. Wireless is the biggest part of AT&T's total operating income (60%), as well as the highest-growing segment (mainly through increased data fees). Wireless operating revenue has increased 5.1% per year since 2011.

However, increases there are being weighed on by wireline decreases. Total revenue in that division has actually fallen in the last two years as more households go mobile only. In the company's last fiscal year, the wireline business lost 13.4% in segment income on a year-over-year basis. The drop of $971 million counteracted the $1.3 billion increase in the wireless segment.

There is a silver lining in this, however. As wireless continues to form a larger part of segment income, the slow-growth, low-margin wireline business will matter less to investors. Right now, the wireless segment provides nearly three times as much income as wireline -- $17.8 billion versus $6.2 billion. The addition of DIRECTV would help offset the struggling wireline business as well.

Final thoughts
For dividend investors, AT&T is sort of a paradox. On one hand, the current dividend yield is outstanding. However, the last five years have seen many other companies be more generous with dividend increases. In addition, the purchase of DIRECTV has the potential to make it harder for the company to increase payouts in the future. The issue for income investors is current high payout versus dividend growth. AT&T fits the bill for the former more than the latter.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here.

Gap shares slide on unexpected June sales drop

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SAN FRANCISCO (MarketWatch) — Gap Inc. shares declined in the extended session Thursday after the apparel retailer turned in a surprise drop in June same-store sales.

/quotes/zigman/227242/delayed/quotes/nls/gps GPS 40.97, -0.45, -1.09% Gap 12-month stock price

Gap (DE:GAP) shares fell 1.5% to $40.37 on moderate volume after the retailer reported a decline of 2% in June same-store sales. Analysts surveyed by Thomson Reuters had forecast an increase of 0.7%.

Comparable global Gap and banana Republic sales in June both declined 7%, while global Old Navy comparable sale rose 7%.

PriceSmart Inc. (PSMT)  shares declined 4% to $82.80 on moderate volume after the warehouse club reported third-quarter earnings of 70 cents a share on revenue of $615 million. Analysts surveyed by FactSet had forecast earnings of 69 cents a share on revenue of $621.9 million.

Joe's Jeans Inc. (JOEZ)  shares surged 12% to $1.15 on moderate volume after the apparel maker posted a second-quarter profit when analysts were expecting a loss. The company reported earnings of 1 cent a share on revenue of $48.2 million. Analysts estimated a loss of 3 cents a share on revenue of $49 million.

Marc Crossman, Joe's chief executive, said the recent acquisition of rival Hudson Jeans is resulting in cost benefits for the combined companies.

"Furthermore, we expect our core results, excluding these cost savings, to pick up in the back half of the year, as we are already seeing improvement in our same store sales comps at our company owned retail stores," Crossman said in a statement.

/quotes/zigman/80387/delayed/quotes/nls/rcii RCII 29.06, -0.47, -1.59% Rent-A-Center 12-month stock price

Rent-A-Center Inc. (RCII)  shares dropped 9.3% to $26.35 on moderate volume after the company forecast second-quarter results below the Wall Street estimates, noting that "[m]acro-economic pressures continue to burden our financially constrained customers."

The company estimates adjusted second-quarter earnings of 36 cents to 38 cents on revenue of about $773 million. Analysts expect earnings of 48 cents a share on revenue of $783.9 million.

Shares of private mortgage insurers fell after Radian Group Inc. (RDN)  called new proposed capital requirements "onerous" but said it didn't feel it would have to raise outside capital. Shares of Radian declined 3.8% to $14 on moderate volume, while shares of MGIC Investment Corp. (MTG)  fell 5.4% to $8.74 on moderate volume.

Shares of Arotech Corp. (ARTX)  declined 5.6% to $3.55 after the defense and security products maker announced a secondary offering of its shares to pay off debt and other corporate expenses.

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Barnes & Noble: Winning the Hachette-Amazon Book Battle

By now we’re all aware of the battle raging between Amazon.com (AMZN) and Hachette over the pricing of eBooks. While the consumer is certainly the loser as the two big corporations go head to head, there’s likely a winner from the battle royale as well–Barnes & Noble (BKS).

Associated Press

Maxim’s John Tinker and Kevin Rippey explain why Amazon.com’s standoff with Hachette Books is good news for Barnes & Noble:

Amazon’s standoff with suppliers is an opportunity for Barnes & Noble. Currently, Amazon.com is not accepting orders for titles from Hachette authors, including J.K. Rowling and Michael Connelly, following continued disputes on e-book pricing. In addition, they are not accepting preorders for key Warner Bros. (TWX – $68.92 – NR) titles, such as The Lego Movie, in a separate supplier dispute. The standoffs highlight Barnes & Noble’s value to publishers, as it remains the only alternative book outlet to Amazon.com, and is critical in both the sale and marketing of their books. It is worth noting that, this week, Hilary Clinton staged the launch of her book tour at Barnes & Noble’s Union Square store, although the former first lady and potential presidential candidate did not draw as many fans as the Jonas Brothers' or Justin Beiber’s book signing appearances!

And there’s more to the bull case for Barnes & Noble than Amazon’s shenanigans,  Earlier this month, Barnes & Noble reached a deal with Samsung to produce the Nook tablet, which should reduce losses in that area of the business–and allow Barnes to consider a spinoff of its college business.

Shares of Barnes & Noble have gained 0.6% to $20.17 at 12:16 p.m., while Amazon.com has dropped 1.9% to $328.90.

Test Drive: 2015 Honda Fit fits many needs

Honda's Fit small car was a bull's eye from the start in 2006. And it aged very gracefully.

We drove one in 2012 for a Cars.com/USA TODAY/MotorWeek comparison, and it swept the field despite its age. Good endorsement of the "get it right and leave it alone" approach.

Still, Test Drive is delighted to report that the completely redesigned car is a better Fit.

It's an inch shorter, but has a longer wheelbase, is marginally wider and the unusual center-mounted, underfloor gas tank is reshaped for a better fit. The rear suspension was modified to intrude less into the back seat area.

The 2015 Fit, Honda says, has a remarkable 4.8 inches more rear legroom — about 39 inches, or nearly as much as most cars' front seats. And the back seat now slides further, so you can open more cargo space and still leave enough legroom.

The rear cushions continue to fold up against the backrest to present a tall, open hauling space for that big-screen TV. The seats fold down conventionally, too. And, in so-called "refresh" mode, you can leave the back seat up and fold down everything else to create a chaise lounge for a nap.

Fit does all that and drives nicely. Important because it is, after all, a car.

Steering stays centered nicely, without fussing from the driver, but reacts quickly and smoothly when turned. Steering feel and function are magic arts. Some get it very wrong. Fit gets it right.

The suspension might seem a bit stiff. We found it closer to sporty than to harsh, and not unexpected in a small car. Cornering and stability were agreeable.

We tried the six-speed manual around Manhattan. It shifted smoothly and required little effort; livable in the city.

We spent the rest of the test time in a CVT automatic transmission model in Northern Virginia. We generally loathe CVT gearboxes, but Fit's is acceptable.

It has steering-wheel paddle shifters to let you move through set gear ratios if you wish. And in CVT mode, it drops the engine speed a lot whe! n you let up a little on the gas, as if it were a normal automatic up-shifting. Stomp the gas and it instantly grabs a lower ratio in a way that feels like a conventional downshift.

But floor it from a stop and you still get that slipping-clutch feel and sound until the car speed "catches up" to the CVT setting.

Reasonable people often disagree on matters of taste, but to our eye, the new Fit looks nicer. Less distinctive, but the silhouette's smoother.

The infotainment/connectivity system is wanting and baffling. And that's being generous. A special combo cable with HDMI to feed graphics from your iPhone to the car's 7-inch display screen didn't provide album covers, maps or much of anything.

More messing around might decode the operation. But decoding shouldn't be required. It should be as easy to link and use a phone as it is to start the car.

For those who crave more involvement, we suggest an "Absurd" mode that requires you to dig around all day in illogical, baffling layers of electronic menus.

Fit is aimed at young buyers. We bet a car's a commodity to many and that infotainment is a priority. Once they see how great the electronics suite works in, say, a Chevy Sonic, it could be hard to get them back to the Honda store.

It's heartbreaking for a great little car, which the Fit truly is, to lack a sweet suite of electronics to close the deal.

WHAT STANDS OUT

Space: How do they get so much room in there?

Mileage: Exceeds expectations.

Infotainment: Awkward, not intuitive.

2015 HONDA FIT

What? Redesign of front-drive, four-door subcompact hatchback with more space, power and gas mileage.

When? On sale since April 14.

Where? Made in Mexico.

How much? Base LX with manual transmission is $16,315, including $790 shipping. That's up $100 from 2014; Honda says it has $1,000 more equipment. Top-end EX-L (leather) with navigation is $21,590.

How many? Honda ho! pes for a! 33% boost to at least 70,000 a year.

How big? An inch or two bigger all around than Chevrolet Sonic, a chief rival, but much roomier inside. Weighs 2,513 to 2,642 lbs. Passenger space, 93.8 cubic feet (except base LX, 95.7 cu. ft.). Cargo space, 16.6 cu. ft. behind rear seat, 52.7 cu. ft. seat folded forward.

Turning circle diameter, 35.1 feet.

What makes it go? 1.5-liter gasoline four-cylinder rated 130 horsepower at 6,500 rpm (vs. 117 hp for previous Fit), 114 pounds-feet of torque at 4,600 (vs. 106 lbs.-ft. previously); six-speed manual or continuously variable-ratio automatic transmission (CVT).

How thirsty? Manual transmission models rated 29 mpg in the city, 37 mpg highway, 32 mpg combined city/highway. Base LX with CVT, 33/41/36. Other CVT models, 32/38/35.

CVT test car: 31.7 mpg (3.15 gallons per 100 miles) in suburban driving, 33.8 mpg (2.96 gal/100 mi) in mix of city, highway, suburbs.

Burns regular, holds 10.6 gal.

Overall: A great little car.

Do Americans trust the stock market?

The Federal Reserve has taken dramatic steps in recent years to stabilize banks and force investors into riskier assets. This so-called "wealth effect" is an idea that a sustainable economic recovery will form as higher asset prices cause more people to feel confident and spend money. The strategy has worked to some degree in the short-term, but nearly three in four Americans are still cautious on the stock market.

Despite a five-year bull market and record low interest rates, 73% of Americans across all age groups and income levels say they are not more inclined to invest in stocks, according to a new survey from Bankrate. That figure is relatively unchanged from 76% in April 2012 and April 2013. Only 22% say they are more inclined to invest in stocks. In fact, just 34% of those with salaries of at least $75,000 say they were more inclined to invest in stocks these days.

"Americans may be avoiding the buy-high, sell-low habit seen in previous market cycles, but only because they're not buying at all," said Greg McBride, Bankrate's chief financial analyst, in a press release. "An overly conservative investment stance compounds the problem that so many Americans have of not saving enough for longer-range goals like retirement."

Other recent reports also indicate that cash is king for many investors. According to BlackRock, the world's largest money manager, investors all of income levels in the United States held 48% of investable assets in cash. Only 18% of assets were held in stocks, and 7% in bonds. Stocks were most widely held in Hong Kong and Taiwan, two countries that also enjoy high overall rates of household savings. The survey polled more than 17,000 investors, including 4,000 Americans.

It's easy to understand why Americans are wary of stocks. The stock market has suffered two breathtaking crashes over the past decade. Between January 2000 and July 2002, the S&P 500 dropped from 1,500 to 815. During the Great Recession, the index plummeted from 1,525 to 800. With the ! help of the Federal Reserve and its accommodative monetary policy, stocks have recovered losses and even made new all-time highs, but many investors still don't trust the market and would rather save their money.

A new survey from Gallup reveals that 62% of Americans enjoy saving more than spending, representing one of the widest gaps since Gallup started keeping track in 2001. The views changed little across standard demographic segments of the nation, such as race, education and political party.

MORE: 3 depressing charts about your taxes

MORE: 3 charts the little guy needs to see about investing

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Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

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The Baristas Coffee Ball is Rolling (SBUX, BCCI)

It's certainly no Starbucks Corporation (NASDAQ:SBUX), but that doesn't mean Baristas Coffee Co. (OTCMKTS:BCCI) isn't a compelling trading opportunity. Indeed, BCCI could be entering a high-growth phase that makes SBUX look ill in comparison. Just don't stay married to it for too long, as the best thing Baristas Coffee has going for it is its shtick... a shtick that Starbucks would likely never employ.

If the name seems vaguely familiar, it may be because yours truly took a look at BCCI back on March 15th of last year when the stock and the company's story started to make waves. And make no mistake - the underlying story is the kind that makes waves. See, while the baristas (the people who brew the coffee) at Starbucks are great coffee-makers, the baristas at Baristas Coffee stand are... scantily, provocatively-dressed young females.

Needless to say, the presentation draws a crowd. It may draw a crowd that Starbucks Corporation isn't necessarily trying to attract, but it still draws a crowd. And, that crowd is getting bigger.

Although the OTC-listed stock isn't a reporting company, there's more than enough circumstantial evidence that the company is growing. The most important of that evidence has materialized just within the past couple of months.

One of those nuggets of evidence is Baristas Coffee Co. being featured by Bloomberg as the "under the radar" pick of the week, and maybe even the year, in early March. Later in the same month, BCCI was named one of Inc. Magazine's "Most Exciting Franchises of 2014". Between the two media sources, the company was injected with a certain amount of credibility that it just never had up until then. It's still no Starbucks, but it was a big leap forward for the budding company.

Yes, it was that media attention that pushed the stock into rally mode, though in retrospect it's not as if the company - or the stock - had nothing else going for it. It just couldn't garner the kind of attention it needed to sustain the kind of interest it needed to keep the stock going. With that task now taken care of, it looks as if there's little else to hold the stock back... at least as long as the publicity ball keeps rolling. And, if BCCI is like most other companies, now that the media ball is rolling it's not apt to slow for a while. Nothing draws a crowd like a crowd.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

U.S. stocks in worst sell-off in a month

NEW YORK (MarketWatch) — The U.S. stock market finished Monday sharply lower amid a global push into safe havens as political tensions in Ukraine and Russia over the Crimean peninsula escalated.

News of an armed invasion over the weekend overshadowed several better-than-expected economic reports in the U.S. The losses in the blue-chips and large-caps were the worst in a month when investors were worried about China and Turkey.

The S&P 500 index (SPX)  finished the day 14.02 points, or 0.8%, lower at 1,845.43, after closing at a record on Friday.

The Dow Jones Industrial Average (DJIA)  was down as much as 250 points at session lows, but ended the day 153.68 points, or 0.9%, lower at 16,168.03.

Reuters Russian forces are massing at the Crimea border crossing.

The Nasdaq Composite (COMP)  lost 30.82 points, or 0.7%, to 4,277.30.

As escalating military tensions in Ukraine dominated news on Monday, better-than-expected economic reports did little to provide relief from broad-based selling.

"The most surprising thing is how little anyone can do about Russia's behavior in Crimea," said John Rutlege, chief investment strategist at Safanad.

"This is the time to tighten the risk and stay away from emerging markets," he added.

Nicholas Colas, chief market strategist at ConvergEx Group, a global brokerage company based in New York described jittery markets as being back to 'old normal', with a lot more volatility than we grew accustomed to during the past year.

The implied volatility on the S&P 500 as measured by the CBOE Vix index jumped 14% to 16, last seen on Feb. 3, when markets sold off on fears over Turkey and China.

In economic news, consumers boosted spending in January, but a good chunk of the money went to pay higher utility bills during an unusually cold winter, according to government data released Monday.

TRADING STRATEGIES: MARCH
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The final reading of Markit's U.S. purchasing managers index accelerated in February, the economic information firm said Monday. The final reading for February was the highest level in almost four years. The report shows that output and new business picked up sharply.

U.S. manufacturers expanded at a faster pace in February and business would have been even better if not for severe winter weather, according to a survey of executives.

Lorillard, Inc (LO)  share jumped 9.3% on news reports in the Financial Times that Reynolds is exploring a possible deal with its smaller rival. Shares in Reynolds (RAI)   rallied 4.8%.