7 Articles ETF Investors Must Read: 8/2

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Wall Street was in for yet another round of lackluster trading and mixed earnings and economic reports this week, while investors braced themselves for Federal Reserve's policy-setting committee statement on Wednesday. In economic news, pending home sales declined 0.4% in June, while the S&P/Case-Shiller 20-City home-price index rose 12.2% in May on the year versus the 12.4% uptick analysts were expecting. The Conference Board reported its consumer-confidence index falling to 80.3 in July, slightly below analyst expectations of 81.5. Meanwhile, U.S. GDP came in above expectations, rising 1.7% in the second quarter, though the overall pace of growth remained lackluster . 

Below, we highlight seven insightful articles circulating around the financial space this week:

Is the market headed for a correction? Not quite yet, but soon (Pretzel Logic's Market Charts and Analysis)12 must read quotes from Gerald Loeb (StockTwits 50)Russian potash firm breaks up one of the world's largest marketing cartels (agrimoney.com)Is now the time to buy municipal bonds? (Financial Sense)Europe's economy is still worse off than it was in 2009 (Quartz)A closer look at PE ratios around the globe (Musings on Markets)Commodities are breaking down (TheArmoTrader)Follow me on Twitter @DPylypczak.

Disclosure: No positions at time of writing.

Should You Consider Eaton at These Prices?

With shares of Eaton (NYSE:ETN) trading around $68, is the stock an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Eaton operates as a diversified power management company worldwide. It provides electrical products, systems, and services for power quality, distribution, and control; power transmission, lighting, and wiring products; hydraulics components, systems, and services for industrial and mobile equipment; aerospace fuel, hydraulics, and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy, and safety. The company operates through Electrical Americas, Electrical Rest of World, Cooper, Hydraulics, Aerospace, Truck, and Automotive segments. Its products are used in a wide range of growing industries worldwide that will fuel demand for the company. Look for Eaton to continue to profit as international companies and consumers grow at impressive rates.

T = Technicals on the Stock Chart are Strong

Eaton stock has seen a powerful move higher over the last few years. In fact, the stock is now trading at all-time high prices and sees no significant signs of slowing just yet. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Eaton is trading above its rising key averages, which signals neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

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	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Eaton Options	24.01%	30%	29%

What does this mean? This means that investors or traders are buying a small amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
June Options	Flat	Average
July Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-13.19%	-56.53%	-4.67%	15.46%
Revenue Growth (Y-O-Y)	34.09%	7.44%	-4.20%	-0.54%
Earnings Reaction	2.77%	4.93%	5.01%	3.88%

Eaton has seen mixed earnings and revenue figures over the last four quarters. From these figures, the markets have been upbeat about Eaton’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Eaton stock done relative to its peers, ITT (NYSE:ITT), Johnson Controls (NYSE:JCI), Parker Hannifin (NYSE:PH), and the sector?

	Eaton	ITT	Johnson Controls	Parker Hannifin	Sector
Year-to-Date Return	26.75%	30.31%	24.10%	15.57%	19.34%

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

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Conclusion

Eaton provides essential power management products and services to a wide variety of companies and industries around the world. The stock has seen a powerful run in recent years that has taken it to all-time high prices. Over the last four quarters, the company has seen mixed earnings and revenue numbers, regardless, investors have remained upbeat. Relative to its peers and sector, Eaton has been a year-to-date performance leader. Look for Eaton to continue to OUTPERFORM.

Ford's Second-Quarter Earnings Beat Estimates

Ford's global headquarters in Dearborn, Mich. Ford reported a strong second-quarter profit on Wednesday. Photo credit: Ford Motor.

Ford (NYSE: F  ) reported net income of $1.2 billion for the second quarter before the bell on Wednesday.

That reflects a pre-tax profit of $2.6 billion, or $0.45 a share, an increase of $0.15 a share over the year-ago quarter. It was also well ahead of the consensus Wall Street estimate of $0.37 a share.

It's a very good result that was driven by strong earnings in North America and improvements in all three of Ford's overseas units -- improvements that led Ford management to raise its full-year guidance.

A look at the key numbers
The best way to understand the state of Ford's global business is to look at the results for each of its regional business units in turn. Here's how things broke down in the second quarter of 2013.

One note: The numbers given below don't take taxes into account. That's because tax situations can vary from quarter to quarter, so we use pre-tax numbers to get the best basis for comparison with past (and future) quarterly reports.

North America continues to be the "engine" of Ford's global business, as CEO Alan Mulally often says. Ford earned $2.3 billion in North America in the second quarter, a $319 million increase from a year ago. The story here is simple and good: strong sales, market share gains, discipline around spending on incentives, and an industrywide boom in sales of full-size pickup trucks, a segment that Ford leads (and that generates major profits for the company). Ford's operating margin in North America was 10.4% in the second quarter, down a bit from last quarter (as expected) but still exceptionally strong. South America posted a $146 million profit, a $141 million improvement over the year-ago result. Unfavorable exchange rates and fierce competition continue to challenge Ford in this region, but the company showed improvements in sales, a gain in market share, and some improvement in pricing, meaning that it was able to reduce its discounts. Its operating margin in the region was 5%, a big improvement over recent results. Europe posted a loss of $348 million, a big hit but nonetheless one that represents some improvement: It's $56 million better than a year ago and $114 million better than the loss posted last quarter. Industrywide auto sales in Europe are at 20-year lows, but Ford is making steady improvements as it continues work on a comprehensive turnaround plan announced last fall. Among other changes, Ford is in the process of closing three factories in Europe, and took a charge of $419 million in the quarter for charges related to those closing. Asia-Pacific/Africa reported its best-ever quarterly result, a $177 million profit that represents a $243 million improvement over the year-ago result. This region has been running near breakeven recently because of the massive investments that Ford is making to expand in China and India, where it has several new factories under construction, and profits are expected to grow significantly in a couple of years after those investments are completed. The profit here is a result of Ford's huge recent sales growth, especially in China, where sales were up more than 40% in the first half of the year. Ford Credit is the company's in-house financing arm, and it made $454 million in the second quarter, up a bit from $438 million a year ago. Profits here ebb and flow with the rhythm of the company's leasing business. This was a good result, as expected.

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Ford says that its outlook is improving
Ford management raised its full-year guidance for Europe. The company now expects full-year 2013 losses in Europe to be about $1.8 billion, or roughly in line with last year's losses. It had previously said that it expected losses to total about $2 billion for the full year.

Ford's "automotive liquidity" -- that's its total cash on hand (not counting cash related to its financing arm) plus its available credit lines -- totaled $37.1 billion at the end of the quarter, up $2.6 billion from a year ago. That includes a $2 billion increase in Ford's cash hoard, which is up to $25.7 billion. Debt stands at a manageable $15.8 billion.

Long story short, this was another good quarter for Ford. Continued strength in North America plus genuine signs of improvement in all three of its overseas units add up to a good ongoing story, one that should give the stock a boost in the days to come.

Ford's growth in China has been impressive, but with four new factories still under constructio,n it's arguably just beginning. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," says that Ford is one of two global auto giants poised to reap even bigger gains as China's auto boom continues to unfold. You can read this report right now for free -- just click here for instant access.

GM creates giant pay package for CEO Mary Barra

General Motors CEO Mary Barra can earn about $14.4 million for 2014 if the company meets certain goals, as the company restructured executive pay after the government sold its last shares of the company.

Barra's compensation for 2014 is about 59% higher than the $9.1 million former CEO Dan Akerson received for 2013, when the U.S. Treasury Department oversaw pay for the company's top executives.

Barra received $5.2 million in 2013 while she was senior vice president of global product development, according to GM's annual proxy statement released today.

The automaker's new president, Dan Ammann, is also getting a raise, to about $6.8 million,or 29% higher than the $5.3 million he earned as chief financial officer.

New CFO Chuck Stevens could will get 2014 total targeted compensation of $4 million.

The company set its annual stocholders meeting for June 10 at the Renaissance Center in Detroit, where shareholders will get a chance to vote on the automaker's compensation plan. Directors can refuse to follow shareholders' recommendation on compensation.

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The automaker said its top executives' actual compensation is tied to their individual performance and the company's overall financial performance, including global market share, pre-tax profits and quality metrics. That means actual compensation figures could be lower or higher depending on GM's outlook.

The board of directors has nominated outgoing UAW GM Vice President Joe Ashton to be a director as the representative of the UAW retiree health care trust.

Outgoing Vice Chairman Steve Girsky will remain on the board. GM previously said that directors David Bonderman, Cynthia Telles and Robert Krebs are leaving.

For 2013 Girsky received compensation of $6.4 million, up from $5.4 million in 2012. Ammann's compensation in 2013 was up f! rom $4.8 million in 2012. The company said GM Europe President Karl-Thomas Neumann's compensation in 2013 was $5.8 million.

New CFO Chuck Stevens could will get 2014 total targeted compensation of $4 million.

The company set its annual stocholders meeting for June 10 at the Renaissance Center in Detroit, where shareholders will get a chance to vote on the automaker's compensation plan. Directors can refuse to follow shareholders' recommendation on compensation.

The automaker said its top executives' actual compensation is tied to their individual performance and the company's overall financial performance, including global market share, pre-tax profits and quality metrics. That means actual compensation figures could be lower or higher depending on GM's outlook.

The board of directors has nominated outgoing UAW GM Vice President Joe Ashton to be a director as the representative of the UAW retiree health care trust.

Outgoing Vice Chairman Steve Girsky will remain on the board. GM previously said that directors David Bonderman, Cynthia Telles and Robert Krebs are leaving.

For 2013 Girsky received compensation of $6.4 million, up from $5.4 million in 2012. Ammann's compensation in 2013 was up from $4.8 million in 2012. The company said GM Europe President Karl-Thomas Neumann's compensation in 2013 was $5.8 million.

Pump Prices Are Rising Quickly: Counterattack Now

Since the early 1970s, most major oil deals have been transacted in "petrodollars."

But that system has become increasingly challenged in recent years.

The conflict in Ukraine right now has only served to exacerbate things.

As America leads the charge to impose Western sanctions on Russia, it's a plan that's not only backfiring, but leading to opportunities for those who understand the consequences...

The Waning Petrodollar

After Nixon infamously closed the gold window in 1971, something needed to be done to retain the U.S. dollar's status as world reserve currency.

So Kissinger and Nixon hatched the petrodollar system, whereby the United States would provide political and security support to Saudi Arabia's royal family.

In exchange, all oil deals would have to be transacted exclusively in dollars, so the House of Saud would buy lots of Treasuries with their greenbacks and influence other OPEC members to follow suit.

In effect, this guaranteed a constant and elevated (though artificial) demand for U.S. dollars worldwide.

But this fabricated demand is waning as trading nations question the need for a petrodollar, and even the U.S. dollar as a reserve currency.

The Impact of Playing Russian Roulette

Since Russia's recent seizure of Crimea, the West has imposed a number of sanctions on Russians from Putin's inner circle, such as asset freezes and travel bans.

In late March, both Visa and MasterCard temporarily suspended service with seven Russian banks without warning, since their controlling shareholders were being sanctioned.

That prompted Putin to say Russia should create its own national card payment system, much like China and Japan did years ago.

Then roughly a week later, JPMorgan blocked a payment from a Russian embassy in Kazakhstan to an affiliate of a U.S.-sanctioned bank, Sogaz Insurance Group. It was for a measly $5,000, but that was enough to make sparks fly.

An infuriated Russian foreign ministry called the decision "illegal and absurd." The next day, JPMorgan agreed to process the payment.

Inevitably, these tactics have left Russia with a bad taste, and increasingly exploring its options.

Russia's Reading China's Playbook

Feeling uncomfortably vulnerable from these and other aggressive financial sanctions, Russia has begun looking to its Southern neighbor, China, for alternative trade routes.

Already Rosneft, Russia's largest oil company, has recently inked a number of large oil contracts for export to China, and apparently a "mega-deal" is nearing completion with Indian firms.

What's notable here is that, in both cases, not a single U.S. dollar will change hands.

But Russia's circumventing the petrodollar won't end there.

Since January Iran has been discussing the possibility of a barter deal, with Rosneft taking up to 500,000 barrels/day of Iranian oil to sell into world markets. In return, Russia would provide Iran with a number of Russian goods that it needs.

This kind of trade deal is being explored due to sanctions against Iran over its nuclear program. It could be worth an extra $1.5 billion per month for Tehran, once again outside the petrodollar.

Back in January, I told you how China was sidestepping the U.S. dollar. In The Golden Yuan Is Coming - Here's How to Play It, I spoke of how China has been establishing currency swaps with other countries to settle trade. They now have as many as 25 such swap agreements in place with various nations, estimated to be worth nearly $1 trillion.

Meanwhile Igor Sechin, CEO of Rosneft, has been named chairman of the Saint Petersburg Commodity Exchange, which is focused on commodity trading. Sechin told the World Energy Congress in October, referring to the natural gas markets, that "it was advisable to create an international exchange for the participating countries, where transactions could be registered with the use of regional currencies." Very similar indeed to China's approach.

So where does all of this leave us?

What bearing will the migration away from the dollar in terms of a reserve currency and petrodollar usage impact you as a citizen and investor? How It Should Play Out... And How to Beat It

The tectonic shift away from the petrodollar portends a weaker greenback in the future.

And since oil - arguably the most important actively traded commodity on the planet - is priced in U.S. dollars (for now), it's easy to see world oil prices continue their steady climb higher.

The downside is that it will likely cost you more at the gas pump. The United States is producing a lot more oil, but the prospects of exporting it will support high prices. Still, this doesn't have to be a losing proposition.

Subscribers to Real Asset Returns have already benefitted from holding two mega-cap integrated oil companies. One has returned nearly 19% in two years, and the other nearly 70% over four years.

One way to fight back is by betting on higher oil prices. Consider the Energy Select Sector SPDR ETF (NSYE: XLE), which holds some of the biggest players in this sector, including major oil producers, shale producers, and exploration services companies.

It's up 14% in the past year, but still trades at a reasonable P/E of 14 while yielding a 1.79% dividend.

The key takeaway here is that the petrodollar is on its way down, and eventually out.

That pressure is going to lead to higher prices for oil in U.S. dollars.

And higher prices at the pump, which is all the more reason to hit back hard with a bolstered portfolio...

Dark Pools Face New U.S. Disclosure Requirements From Finra

Securities regulators approved a plan to require U.S. off-exchange markets such as dark pools to boost disclosure about the transactions they handle.

The board of the Financial Industry Regulatory Authority, the private-sector overseer of U.S. brokerages, will propose rules to the government that would compel alternative trading systems to disclose the amount of volume they handle for each stock, according to a statement yesterday. Trading systems will also be assigned unique identification codes so it will be easier to track where each transaction takes place.

"This will allow Finra to monitor the trading that occurs in each ATS much more particularly and be able to identify if any abusive trading appears to occur," Finra Chief Executive Officer Richard G. Ketchum said in a video posted with the announcement. This is a "real positive step from a market integrity standpoint," he said.

The action, which Ketchum previewed in May, comes after U.S. exchanges have seen their share of American equity trading dwindle, prompting them to request regulators to consider curbing transactions off public markets. About a third of U.S. volume this year has taken place off exchanges, according to data compiled by Bloomberg.

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Estimates of trading in dark pools are published monthly by research firm Tabb Group LLC and institutional broker Rosenblatt Securities Inc. In April, Credit Suisse Group AG, operator of the largest U.S. dark pool, said it would stop providing data to Tabb and Rosenblatt.

Ketchum said in the video yesterday that Finra may eventually start using data sent from dark pools and other off-exchange markets to publicly report how much trading takes place on each.

Myriad Genetics Sues Again After Supreme Court Ruling

Myriad Genetics (NASDAQ: MYGN  ) , almost one month after a landmark ruling in the U.S. Supreme Court both undermined and supported the company's claim of patents for the BRCA1 and BRCA2 genes, has filed suit against a company it says has infringed on those patents.

The BRCA genes are used to test for increased risk of breast cancer.

In its ruling of June 13, the Supreme Court unanimously found that Myriad could not hold a patent on naturally occurring human genes but could patent what's known as synthetic DNA, DNA that has been changed in the laboratory to alter its natural state.

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Today, Myriad filed a lawsuit in the United States District Court for the District of Utah against diagnostic testing company Ambry Genetics. Myriad alleges that Ambry infringed on Myriad's synthetic DNA and methods of use in regard to the BRCA1 and BRCA2 genes.

Myriad is seeking a preliminary injunction to stop Ambry from selling products that use Myriad's patents. Myriad is also seeking treble damages for any profits lost if found that Ambry willfully infringed on the patents.

Medicare vs. private insurance: Which costs less

NEW YORK (CNNMoney) Wonder why some doctors grumble when a Medicare patient walks in the door? It's likely because the government program typically pays only 80% of what private insurers do.

Medicare has the bad rap of being a big, bloated government program, but it's not because it's overpaying doctors.

CNNMoney analyzed the "allowed charges" for five common procedures, using data provided the Centers for Medicare and Medicaid Services and Truven Health Analytics, a research firm.

The differences can be stark. Private insurers allow an average of $1,226 for low-back disc surgery, while Medicare will only permit $654, for instance.

And the gap can grow wider depending on where the patient is. In New York, insurers allow $1,352 for a gall bladder removal, compared to $580 for Medicare.

Some services are more comparable. For office visits by established patients, for instance, Medicare will allow 92% of what insurers do.

Overall, Medicare's allowed charges are roughly 80% of the charges allowed by private insurers - about the same as they have been since 1999.

  Obamacare in a Texas insurance desert

Sometimes, however, the government does reimburse health care providers more. In Florida, for instance, a doctor doing a colonoscopy in his office will receive $395 for a Medicare patient, but only $342 for one covered by private insurance.

How does Medicare get away with paying less?

"Medicare doesn't negotiate rates. It sets them," said Stuart Guterman, vice president at The Commonwealth Fund, an independent health policy research group.

And doctors might be okay getting less per procedure because Medicare patients tend to need a lot of care. As a result, the total bill can add up. Nearly 4,000 doctors were paid more than $1 million from Medicare, according to data released this month.

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Private insurers, meanwhile, can'! t cut rates that deeply or they risk a revolt by doctors, who may opt to leave the carrier.

"When you want to market your health plan, you want to say all the great doctors are in your network," said Anne Fischer, director of Truven's Center for Healthcare Analytics.

This balancing act became evident when the Obamacare exchanges launched in October. In order to keep premiums low, insurers offered plans with more limited access to doctors and hospitals. Many health care providers complained that insurers' rates for exchange plans were too low, so they opted not to participate.

Why, then, is Medicare considered bloated?

It's more about use than prices, with the government under more pressure to pay for whatever services the doctor prescribes or the patient wants, Guterman said.

Insurers, meanwhile, have more tools to limit potentially unnecessary procedures. These include pre-authorization requirements to determine whether a treatment plan is medically justified.

"Medicare spending goes up because people use it more," he said.

Amazon Publishing Signs Fan Fiction Agreements With Comic Book Publisher, Authors

Amazon (NASDAQ: AMZN  ) Publishing has expanded again. This week the company announced it has secured licenses for its new publishing platform, Kindle Worlds, with comic book publisher Valiant Entertainment and four best-selling authors: Hugh Howey, Barry Eisler, Blake Crouch and Neal Stephenson.

Under the license terms, any writer will be allowed to create and sell fan fiction from Valiant's comic book library, including Bloodshot, X-O Manowar, and Shadowman. Writers can also earn royalties creating works based on Hugh Howey's Silo Saga, Barry Eisler's John Rain novels, and Blake Crouch's Wayward Pines Series. 

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Writers will be able to sell their fan fiction through Amazon Kindle Worlds, which launched last month. Under the terms, authors will be paid a standard royalty rate of 35% of profits for works of at least 10,000 words. 

While the company has yet to release any of these works yet, it plans to soon. By the end of the month, the Kindle Worlds Store will open with more than 50 works. At the same time, Amazon will launch a self-service submission platform to speed up the fan fiction creation process.

link

How to Outrun the "Dynamic Dunderheads" of Washington

From the Editor: You're receiving special access to Private Briefing today because Bill has found a must-see chart we want to share with everyone, given what's happening (or not happening) in D.C. He also reminds his readers to invest in the American firm "flying" above all this nonsense. The story begins in Bill's living room, of all places, back in 1966...

When the Batman TV series debuted in 1966, my family was no different than most other American households - and quickly grew to like the campy-but-cool action/comedy.

My folks bought me toy Batmobiles - including one that pulled the "Bat Boat" on a trailer. And my Dad - always looking for ways to spend time with his son (something that continues to this day) - brought home model kits of the crime-fighting duo's sleek black hotrod, and even an exciting looking "Batplane."

And the program episodes themselves - with their tongue-in-cheek humor and "special guest villains" - were an absolute hoot. The cliff-hanger structure used in many of the episodes is something I remember to this day: I would watch, enrapt, as the "Dynamic Duo" of Batman and Robin fell into the clutches of such evildoers as The Riddler, Catwoman, and The Joker, who would capitalize on their temporary advantage to taunt the "caped crusaders."

One particular scene has always stayed with me. In it, The Joker (actor Cesar Romero), is slipping away from his pursuers. He turns one last time, faces the two heroes, and with a hearty laugh challenges them to "Catch me if you can, Dynamic Dunderheads!"

I thought of this scene again yesterday - and with good reason. As investors we're trying to make our escape from a ballooning mess that could take down the U.S. economy. But in this "scene," you and I are the "good guys."

And Congress and the Obama administration are the "Dynamic Dunderheads."

Fortunately, there are ways for you to escape the onrushing crash whose violence will be magnified by America's burgeoning debt load and lack of financial discipline, by Washington's inability to focus on the issues that really matter - and by the unforeseen "X-Factors" that will continue to jump from the shadows in the months and years to come.

And here's the best escape to get clear of Washington's "Dynamic Dunderheads"...

Most Dividend Payers Will Outperform. But This First One Will Soar...

We've all seen the statistics that extoll the virtues of the dividend payers - for instance, that from 1980 to 2005, Standard & Poor's 500 Index dividend payers outperformed their non-dividend-paying counterparts by more than 2.6 percentage points a year (an outperformance that, over a long period, translates into major additional gains in a portfolio).

And there's lots of research that underscores the fact that dividend payers gain more than the market averages in bull markets and lose a lot less in bear markets.

But a chart (see below) depicting some recent research by Morningstar Inc. really caught my eye: It very nicely illustrates that dividend stocks will deliver this "outperformance" over the course of multiple bull-and-bear markets. From 2000 to 2012, a 12-year run that combined two bear markets and two recoveries, dividend payers outperformed the S&P 500 by 6% (7.7% vs. 1.7%).

Now we just had to pick the right stocks.

And we've targeted three that we believe will create a nice long-term payoff - meaning you'll escape the evil clutches of the "Dynamic Dunderheads" who live inside the Beltway.

Let's take a look.

Opportunity No. 1
Flying First Class

We'll start with The Boeing Co. (NYSE: BA), a longtime favorite of ours that's up 90% (96% including dividends) since we first recommended it two years ago. It's also up 57% since Jan. 18 - when we told subscribers to ignore the whole "Dreamliner battery" media frenzy and buy the stock while it was trading down. Boeing recently hit a record high of $120.38, but this is a great company with powerful global trends acting as a tailwind, and is a stock we believe you'll want to own for the long run.

This is a company that I've followed for years and know well - which is why it was one of the first stocks we recommended after launching Private Briefing. It clearly had some issues to work through, but has tackled most of them.

And Boeing's own projections show us the aerospace firm is pushing its throttles "to the stops" as it heads for the stratosphere.

In Boeing's latest annual forecast - a highly read document the company updates each year - the Chicago-based venture says there will be $4.8 trillion worth of passenger-jet sales over the next 20 years. That represents a 20% increase over the prediction that Boeing made just two years ago.

Boeing sees a need for 35,280 new passenger jets between now and 2032 - 41% of which will replace older, less-fuel-efficient jets. The rest are new airplanes that global carriers need to expand their fleets as worldwide travel continues to grow.

That tells us that there will continue to be a big-and-growing market for the commercial jets that Boeing builds. In the jumbo market, there are right now only two players - Boeing and rival Airbus NV. (Although Mainland China has announced its intent to get into the jumbo market, that won't be an easy move to make. And even if it succeeds in building a jumbo jet, it may have trouble finding buyers outside its own market.)

In a recent story about dividend-paying stocks, Barron's screened for companies that were "modest" payers, but that could likely be counted on for above-average payout growth.

It came up with three stocks - one of which was Boeing.

The experts that I work with here at Money Map Press are some of the best "thinkers" that I've ever dealt with. And by that I mean they're original thinkers. So while we make a special point about not following Wall Street's lead, we love to see it when the sell-siders follow ours. And that's what we've been seeing with Boeing, which has benefitted from a lot of ratings upgrades and target-price increases in July, August, and September.

Late last month, for instance, Sterne Agee analyst Peter Arment told clients in a research note that he sees a big upside for Boeing. Arment boosted his target price by $44 a share - all the way up to $164.

According to Arment, the Boeing story is all about free-cash-flow (FCF) generation. Arment now sees higher deliveries "resulting in very favorable FCF during 2014-2018." His $164 target price is based on a reasonable valuation multiple of 12 times 2015 cash flow.

But here's the real grabber: The company has $410 billion in order "backlog" - a number that's nearly five times Boeing's market cap. That gives investors a whole lot of "visibility" (predictability) when it comes to projecting company revenue.

Boeing has "5,000 aircraft in backlog and unmatched visibility," Arment said - ending his research note by stating that the stock is a "must-own."

Arment's target price is 38% higher than Boeing's recent market price.

Although the yield is only 1.65%, Boeing has boosted the dividend twice since we recommended the stock. Combine that with the strong fundamentals and big upside and you have yourself the makings of a hefty long-term winner.

Arment says Boeing is a "must own" - and we couldn't agree more.

Opportunity No. 2
An Exclusive Club

Every "analyst" or guru has a favorite company or two that they've made a point of following for years - even decades. For me, one of those companies is Boeing. But for resident tech guru Michael Robinson, that company...

Full Story: To access Bill's latest Private Briefing in its entirety, log in to your members-only dashboard. Not a member? Get all three companies Bill recommended Wednesday - plus daily access to $28,000 worth of our best investing ideas - for $7.99 a month. You're joining just in time, thanks to Bernanke's "deal with devil...

Top 10 Regional Bank Companies To Watch For 2014

Top 10 Regional Bank Companies To Watch For 2014: Jones Soda Co.(JSDA)

Jones Soda Co., together with its subsidiaries, develops, produces, markets, distributes, and licenses premium beverages primarily in the United States and Canada. The company provides Jones Soda, a carbonated soft drink; Jones Zilch, a zero calories product in black cherry, pomegranate, and vanilla bean flavors; WhoopAss Energy Drink, an energy supplement drink; and WhoopAss Zero Energy Drink, an energy supplement drink with zero sugar. It also offers various products, including soda with customized labels, wearables, candy, and other items online. The company sells and distributes its products through its network of independent distributors and national retail accounts. Jones Soda Co. was founded in 1986 and is based in Seattle, Washington.

Advisors' Opinion:

• [By John Udovich]

  Monster Beverage Corp (NASDAQ: MNST), a mid cap marketer and distributor of energy drinks and alternative beverages, has been a monster of a performer since the end of the financial crisis as the stock is up around 308% over the past five years, but could new or overlooked players like small cap beverage stocks Jones Soda Co (OTCMKTS: JSDA), Celsius Holdings, Inc (OTCMKTS: CELH) and Konared Corp (OTCBB: KRED) repeat that performance? A look strictly at the long term performance of all three small caps might have you thinking otherwise. After all, none of these small cap beverage stocks are profitable while the beverage industry can be a long hard expensive slog just to increase market share by one or two points when you are competing for shelf space with industry giants like Pepsi and Coke. But past performance is just that – the past and only part of the story as there is much more to consider about these small cap beverage stocks which could also make them potential acquisition targets by larger beverage play! ers seeking to expand their product line up with innovative products:

source from Top Stocks Blog:http://www.topstocksblog.com/top-10-regional-bank-companies-to-watch-for-2014.html

John Mauldin's Outside the Box - Dare to Be Great II

Dare to Be Great II

John Mauldin

April 16, 2014

I can't tell you how many thousands of hours I have spent, over the years, thinking about, reading about, and talking about how to be a consistently successful investor; but I can tell you this: I'm still working at it. And once in a while – less frequently as the years pass, it seems – I come across investment advice that strikes me as fundamentally strong, innovative, and worth assimilating.

I feel that way about today's Outside the Box. It's a client memo sent last week by Howard Marks (Trades, Portfolio), founder and chairman of Oaktree Capital Management. He calls it "Dare to Be Great II," since it's a follow-up to the famous memo by that name he wrote in 2006.

The first thing we need if we're to become superior investors, says Howard, is an explicit investing creed. What do we believe in? What principles will underpin our process? He suggests that we ask ourselves questions like the following – and be willing and able to come to agreement on them with our colleagues.

Is the efficient market hypothesis relevant? Do efficient markets exist? Is it possible to "beat the market"? Which markets? To what extent? Will you emphasize risk control or return maximization as the primary route to success (or do you think it's possible to achieve both simultaneously)? Will you put your faith in macro forecasts and adjust your portfolio based on what they say? How do you think about risk? Is it volatility or the probability of permanent loss? Can it be predicted and quantified a priori? What's the best way to manage it? How reliably do you believe a disciplined process will produce the desired results? That is, how do you view the question of determinism versus randomness? Most importantly for the purposes of this memo, how will you define success, and what risks will you take to achieve it? In short, in trying to be right, are you willing to bear the inescapable risk of being wrong?

Now that's what I call a worthwhile list of questions.

If we're going to dare to be great, Howard asserts, we have to dare to be different.

Speaking of which, one of my personal heroines is Ayaan Hirsi Ali. Her courage in confronting the oppression of women at the risk of her own life is inspiring. In person she is a quiet, reserved, formidable force of nature. This last week she suffered an unjust, cowardly affront to her courage and her work dedicated to helping those who can't help themselves.

Brandeis University decided to offer Ayaan an honorary doctorate for her efforts on behalf of women in Muslim societies. When the decision was announced, a group of students, faculty members, and the usual politically correct pressure groups campaigned to have the university withdraw the honor. Brandeis president Frederick Lawrence quickly capitulated. Not even bothering to sign his own notice, he offered that Ayaan's story is "compelling," whatever that means. But, he added, "That said, we cannot overlook certain of her past statements that are inconsistent with Brandeis University's core values. For all concerned, we regret that we were not aware of the statements earlier."

That is simply Academic Bullshit. First of all, no one requested or forced Brandeis to offer the degree in the first place; it was their own clear choice. Secondly, after two best-selling books and hundreds of public appearances, Ayaan has made her views well-known. That she has criticized certain aspects of Islamic culture is no secret. For the Brandeis administration to say that they were unaware of her views stretches one's sense of credulity beyond the limit. In Texas we would simply call it a lie.

I would be interested in the views of those who opposed her. Precisely which of the practices she condemns would they like to see maintained? Female genital mutilation, honor killings, forced marriage, or Sharia law? Perhaps treating women as property is deemed appropriate by some people.

The simple fact is, there is a portion of the academic community that is so politically correct that they are socially useless. In the name of being tolerant they tolerate acts so despicable as to be worthy of shunning. They have the discernment of a fruitfly. And that is probably an insult to fruitfly-kind.

Even more interesting is that just a few years ago Brandeis awarded an honorary degree to playwright Tony Kushner, who had been quoted as saying, "The biggest supporters of Israel are the most repulsive members of the Jewish community." At the time the Brandeis president justified the award saying, "Just as Brandeis does not inquire into the political opinions and beliefs of faculty or staff before appointing them, or students before offering admission, so too the University does not select honorary degree recipients on the basis of their political beliefs or opinions." So which is it, President Lawrence? Or is it just that women cannot hold strong beliefs?

If I were Brandeis graduate, I would be profoundly embarrassed. But a good way to voice your displeasure might be to write a check to Ayaan's foundation at http://theahafoundation.org/, send a copy of it to President Lawrence, and say that until he personally apologizes for his cowardly behavior and ungentlemanly conduct in disparaging the character of a person so courageous as Ayaan Hirsi Ali, no more checks to Brandeis will be forthcoming. This whole distasteful event is especially galling when you realize that Brandeis was founded as a nonsectarian Jewish coeducational institution to counter oppression and a lack of tolerance.

The rest of my readers may also want to click on the link and make donations. There are tens of thousands of young girls around the world who face severe oppression that is justified in the name of culture and religion. Someone has to stand up and say no more. Ayaan does that, and perhaps we should stand with her. Think of your daughters and granddaughters and decide what kind of world you want them to grow up in.

I am back in Dallas and enjoying being home and next to my gym. I was not in the gym enough in South Africa, and I can feel it. I'm going to have to get better at scheduling workout time when I'm on the road. Have yourself a great week, and really sit and think through some of the questions that Howard Marks (Trades, Portfolio) challenges us with. They are at the heart of the investing portion of our lives. Without clear answers to them, we are wandering aimlessly and can expect unsatisfying results.

Continue reading here.

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Coke Climbs As Q1 Results Surpassed Low Expectations

Shares of Coca-Cola (KO) were climbing more than 3% Tuesday, as lackluster expectations were enough to turn an in-line quarter into a great one for many investors.

Coke reported first quarter adjusted earnings of 44 cents a share, in line with analysts' expectations. Revenue fell 4.2% year-over-year to $10.58 billion, just squeaking past the consensus $10.55 billion.

However, there were bright spots in the quarter: The in-line results came despite foreign exchange headwinds as a result of the strong dollar, and overall volumes rose 2%, ahead of expectations and juiced by growth in fast-growing emerging markets.

On the conference call, management said that it doesn't anticipate currency headwinds to be as severe going forward, and the company's full year plan remains intact.

Citigroup's Wendy Nicholson reiterated a Buy rating and $44 price target on the stock following the report: "KO faced its toughest YoY volume comp of the year in 1Q (to +4% in 1Q13), which had led most folks to expect 0%-1% overall volume growth in 1Q14. We are encouraged that despite a confluence of headwinds – incl. one less selling day, the shift in timing of Easter, the new soda tax in Mexico, unrest in Russia, and robust health & wellness concerns pressuring the CSDs business globally – KO managed to deliver 2 pts of global volume growth. And, while this growth was driven entirely by the stills business, we are pleased that the margin drag from the negative mix shift did not prevent KO from posting 7% organic growth in op income. All in, we consider this to be a better-than-expected start to the year, and we hope this momentum continues, especially in light of easier volume comps to come."

Main rival PepsiCo (PEP) was also trading up at recent check; it reports earnings on Thursday.

Taubman Keeps Dividend Steady

Shopping-mall operator Taubman Centers  (NYSE: TCO  )  announced yesterday its second-quarter dividend of $0.50 per share, the same rate it paid last quarter after raising the payout 8%, from $0.4625 per share.

The board of directors said the quarterly dividend is payable on June 28 to the holders of record at the close of business on June 14. Taubman has paid a dividend every year since 1998, and it has steadily increased over that time period.

The board also declared quarterly dividends on two series of cumulative preferred shares, as follows:

$0.40625 per share on the 6.5% Series J, for the period April 1 through June 30 $0.46007 per share on the 6.25% Series K, for the period March 15 through June 30

Top Defensive Companies To Buy Right Now

The preferred dividends will be payable on June 28 to shareholders of record on June 14.

The regular dividend payment equates to a $2.00-per-share annual dividend, yielding 2.4% based on the closing price of Taubman Centers' stock on May 29.

TCO Dividend data by YCharts

Seadrill: ‘In a Bit of a Pickle,’ Credit Suisse Says

Shares of Seadrill (SDRL) have tumbled after Credit Suisse cut its rating on the offshore driller, noting that the company is “in a bit of a pickle.”

Bloomberg

Credit Suisse analyst Gregory Lewis and team explain why they downgraded Seadrill:

We are downgrading [Seadrill] to Neutral (from Outperform) and lowering our target price to $30 (from $40). [Seadrill] has a lot of wood to chop in terms of contracting newbuild rigs, paying for newbuild rigs and managing hefty debt repayments all under a backdrop of softening floater dayrates. [Seadrill] got a bit greedy, having misjudged the market, and now has 5 newbuild drillships, 2 newbuild semis and 8 newbuild jackups, all without contracts. It is our understanding the company is actively marketing some of its newbuild rigs for potential resale – which is never a good thing.

While [Seadrill] will continue to lean on [Seadrill Partners (SDLP)] and potentially [Ship Finance International (SFL)] to meet its funding requirements, a lot has to break right for [Seadrill] to meet these funding requirements.

Shares of Seadrill have dropped 2.7% to $32.99 at 2:33 p.m. today, while Seadrill Partners has dipped 0.3% to $28.94 and Ship Finance International has fallen 2% to $16.86. Transocean (RIG), which has adopted something of a Seadrill model, has fallen 2.7% to $39.51.

5 Machinery Stocks to Sell Now

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The ratings of five machinery stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

TriMas Corporation () is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. TriMas manufactures trailer products, recreational accessories, packaging systems, energy products and industrial specialty products for the commercial, manufacturing, and consumer markets. TRS also rates an F in Portfolio Grader’s specific subcategory of Earnings Surprise. The stock price has fallen 6% over the past month, worse than the 1.3% decrease the Nasdaq has seen over the same period of time. .

Top Warren Buffett Companies To Invest In Right Now

Stanley Black & Decker, Inc.’s () rating weakens this week, dropping to a D versus last week’s C. Stanley Black & Decker is a worldwide supplier of tools and engineered solutions for professional, industrial, construction and do-it-yourself use. The stock has a trailing PE Ratio of 25.40. .

Valmont Industries, Inc. () earns an F (“strong sell”) this week, moving down from last week’s grade of D (“sell”). Valmont Industries manufactures fabricated metal products and mechanized irrigation systems. As of April 11, 2014, 11.8% of outstanding Valmont Industries, Inc. shares were held short. .

Kaydon Corporation () gets weaker ratings this week as last week’s D drops to an F. Kaydon designs, manufactures, and sells custom-engineered products for a variety of industries, including aerospace, defense, and industrial. The stock receives F’s in Earnings Growth, Earnings Momentum, Cash Flow and Margin Growth. The stock’s trailing PE Ratio is 37.20. .

Slipping from a D to an F rating, Hurco Companies, Inc. () takes a hit this week. Hurco Companies designs and produces interactive computer controls, software, and computerized machine systems for the worldwide metal cutting and metal forming industry. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Walmart to Make Organic Foods More Affordable in Deal with Wild Oats

NEW YORK (TheStreet) -- Walmart (WMT) said on Thursday it reached a deal with organic foods brand Wild Oats to sell the company's products at more affordable prices.

VIDEO TRANSCRIPT:

Walmart is trying to make eating healthy easier for Americans -- by making it more affordable.

The retailer said on Thursday that's reached a deal with organic foods brand Wild Oats to sell the company's products at lower prices.  Walmart said prices of Wild Oats products will be at the same level as typical grocery items and at least 25% below the price point of national organic food brands.  Walmart said 91% of its shoppers would consider buying organic products if they were affordable, according to the retailer's own research.

WATCH: More videos from Brittany Umar on TheStreet TV Wild Oats products will be available beginning this month in about 2,000 Walmart stores and will also be sold via Walmart's Web site in the coming months.  The retailer expects the products to eventually hit all of the more than 4,000 Wal-Mart stores in the U.S. that carry groceries. At last check, shares of Walmart were slipping about 0.5% to $77.60. In New York, I'm Brittany Umar for TheStreet. -- Written by Brittany Umar in New York. Follow @brittanyumar

Stock quotes in this article: WMT 

Alcoa Beats Earnings, Gains in After-Hours

Shares of Alcoa (AA) have gained after the aluminum company announced better-than-forecast earnings.

Bloomberg

Alcoa said it earned 9 cents a share, besting forecasts for 5 cents, on revenue of $5.5 billion, a slight miss on the Street consensus of $5.55 million. Alcoa expects the demand for aluminum to grow by 7%, it said in a press release.

Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer, was pleased with the results:

We hit record downstream profitability, nearly tripled results in the midstream, and strengthened our upstream business for the 10th quarter in a row…Our transformation is accelerating – we're powering growth in our value-add businesses and aggressively reshaping our commodity business.

Shares of Alcoa have gained 1.2% to $12.68 in after-hours trading at 4:11 p.m.

Could Apple Possibly Be Worth Just $240?

So far this week, Apple (NASDAQ: AAPL  ) has been under pressure and lagged the broader market. One contributing factor to the weakness has been David Trainer of New Constructs, who has made headlines over the past couple of days by proclaiming that Apple is worth just $240. That's over $200 less than what shares closed at yesterday, implying an additional 45% downside.

Could such a price be possible?

The one and only
Trainer's bearish thesis hinges upon a single metric: return on invested capital, or ROIC. Apple has historically enjoyed an incredibly high ROIC that has declined recently and Trainer thinks that trend is here to stay, citing the loss of Steve Jobs and assumption that the company has no revolutionary products up its sleeve.

He compares Apple's ROIC to industry peers and arrives at different price targets based on different levels of ROIC. At a 75% ROIC, which is slightly above Microsoft (NASDAQ: MSFT  ) , Apple is worth just $295, in Trainer's view. He expects Apple's ROIC to decline to 50% eventually, which pegs the company at $240. According to his estimates, Apple's current price implies a 124% ROIC, which Trainer considers unsustainable.

Trainer was interviewed on Money Life and CNBC discussing his model, and also posted a detailed breakdown (link opens PDF) on his blog.

Party like it's 2009
Apple now has over $154 per share in net cash just sitting on the books, which implies that Trainer values the rest of the business at just $86. His estimates would put Apple's market cap at $225 billion, and its enterprise value at just $80 billion. In comparison, Microsoft's current market cap is $281 billion, and the software giant has an enterprise value of $220 billion.

However, any valuation of any stock that relies entirely on one single metric is inherently flawed and incomplete. Investors should utilize a wide range of quantitative metrics -- combined with qualitative assessments of the fundamental business -- to formulate an overall view.

Digging deeper into Trainer's model (linked above), he's effectively assuming that Apple's net operating profit after tax, or NOPAT, will suddenly plunge to fiscal 2009 levels of around $8 billion, which is what would happen if you abruptly slash its ROIC to 52%. For comparison, I estimate Apple's NOPAT last quarter alone at $9.3 billion, with $38.7 billion over the past 12 months. This is how his estimate compares to Apple's actual figures.

Source: SEC filings and author's calculations. Fiscal quarters shown. TTM = trailing-12-months.

Trainer broadly proclaims that Apple is "destined to be just another consumer electronics company," which somehow implies that Apple's business will implode overnight. His estimates effectively ignore the iPad altogether, which was released after 2009 and remains young. Trainer also assumes that Apple will become free cash flow negative to the tune of $3.6 billion, compared to the $44 billion in positive free cash flow that Apple's generated over the past four quarters.

To be fair, if Apple's fundamentals did self-destruct at the tweaking of a spreadsheet cell, then a $240 price target could be warranted. In reality, companies don't tend to see operating profits plunge by 80% at the drop of a hat, and investors would gradually observe any potential deterioration as it occurs over many quarters.

By the same rationale, I can apply some tweaks of my own, except I'll play bull to Trainer's bear. By my estimates, if Apple were to sell a bazillion iPhones tomorrow, it would be worth a millionty dollars per share today. 

The good news is that Apple's business doesn't rely on Trainer's spreadsheet.

There's a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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More Expert Advice from The Motley Fool

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Why Is GM's Loaner Car Policy for Recalls a Secret?

Mark Wilson/Getty ImagesGeneral Motors CEO Mary Barra It's easy to understand why someone who owns a General Motors car with a faulty ignition switch might not want to drive it until the defective part can be replaced. That's why the GM (GM) told its dealers to give their customers a loaner if they asked for one. During her appearances on Capitol Hill this week, CEO Mary Barra told Congress that the company has "empowered our dealers to take extraordinary measures" to assist its customers. And she specifically mentioned the free loaner policy. "If people do not want to drive a recalled vehicle before it is repaired, dealers can provide them with a loaner or rental car -- free of charge," she testified. So how do people find out about this? That information wasn't included in the recall notice and isn't posted on the GM website. Lawyers for GM owners in California filed a motion on Tuesday asking a U.S. District Court judge to order the automaker to immediately notify customers about the loaner program. They say this notification is required by California's Secret Warranty law, which prohibits a vehicle manufacturer from quietly starting an "adjustment program" without telling everyone who is eligible to participate. In legal papers, a San Francisco law firm, Girard Gibbs, told the court:

...drivers are typically only offered rental cars if they call and specifically request them -- a relatively rare occurrence since many drivers do not know about the policy. If callers do not specifically request a rental car, GM and its dealerships do not mention the program. As a result, many drivers are left to choose between bearing long-term alternative transportation costs or continuing to drive unsafe vehicles.

Attorney Eric Gibbs believes GM is trying, once again, to save money. Because the program is not clearly spelled out, the response a customer gets varies from dealer to dealer, he told CNBC. "Some people who call the dealer are getting the loaner cars. Some are told they'll receive a loaner car, but only for the time their vehicle is in the shop for repairs. Others are told that there aren't loaner cars available," Gibbs said. GM didn't comment on the litigation, but James Cain, GM's senior manager of sales and executive communications, told CNBC that about 13,000 people across the country are now in loaner cars. More than a dozen federal lawsuits have been filed on behalf of those who bought the recalled vehicles with defective ignition switches. A Seattle law firm, Hagens Berman, plans to file a motion on Friday that would ask the judge in California to extend this notification requirement to all states with secret warranty laws: Connecticut, Maryland, Virginia and Wisconsin. "How do they expect people to know about this loaner program if they don't tell them about it?" asked attorney Steve Berman. "This is a pattern with GM. They didn't tell owners about the defects and they're not telling them about this loaner program." "We have communicated this through press releases, in speeches and sworn congressional testimony, we have discussed it in press conferences and with news media at all major broadcast and cable networks, all national newspapers and scores of regional papers, radio stations and TV stations," Cain said in an email. "In addition, we share the information freely through our [call center], at dealerships and more."

Mid-Afternoon Market Update: Markets Drop, Lead Lower by NASDAQ Momentum Names

Related BZSUM Mid-Day Market Update: NASDAQ Tumbles 1.8%; SYNNEX Shares Gain After Upbeat Results Mid-Morning Market Update: Markets Mixed; CarMax Results Miss Estimates

Toward the end of trading Friday, the Dow traded down 0.82 percent to 16,435.78 while the NASDAQ declined 2.37 percent to 4,137.45. The S&P also fell, dropping 1.09 percent to 1,868.55.

Leading and Lagging Sectors
Utilities sector gained 1.12 percent, with Companhia Paranaense de Energia (NYSE: ELP) moving up 4.3 percent to gain the top spot. Among leading sector stocks, gains came from Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS), CPFL Energia SA (NYSE: CPL) and Companhia Energética de Minas Gerais SA (NYSE: CIG).

Technology sector was the leading decliner in the US market today. Top losers in the sector included Constant Contact (NASDAQ: CTCT), off 8.1 percent, and Ku6 Media Co (NASDAQ: KUTV), down 9.1 percent.

Top Headline
CarMax (NYSE: KMX) reported weaker-than-expected fiscal fourth-quarter results and increased its share-buyback plan by $1 billion. CarMax's quarterly profit fell to $99.2 million, or $0.44 per share, versus a year-ago profit of $107.2 million, or $0.46 per share. Its revenue climbed 8.8% to $3.08 billion. However, analysts were expecting earnings of $0.53 per share on revenue of $3.12 billion.

Equities Trading UP
SYNNEX (NYSE: SNX) shares shot up 22.86 percent to $76.69 after the company reported better-than-expected fiscal first-quarter results and issued a strong forecast for the fiscal second quarter. For the current quarter, Synnex expected earnings of $1.34 to $1.38 per share on revenue of $3.1 billion to $3.2 billion.

Shares of Mylan (NASDAQ: MYL) got a boost, shooting up 2.49 percent to $51.10 on reports of interest in Sweden's Meda.

IMS Health Holdings (NYSE: IMS) shares were also up, gaining 17.40 percent to $23.45 in their debut on the NYSE.

Equities Trading DOWN
Shares of Halozyme Therapeutics (NASDAQ: HALO) were down 25.40 percent to $8.65 after the company announced the temporary halt of Phase 2 trial enrollment.

Kandi Technologies (NASDAQ: KNDI) was also down, falling 10.36 percent to $14.10 after the company's shares took the drop in the NASDAQ particularly harshly on Friday's session.

E*TRADE Financial (NASDAQ: ETFC) was down, falling 8.32 percent to $20.34. E*TRADE has replaced the talking baby with Kevin Spacey, according to Bloomberg.

Commodities
In commodity news, oil traded up 0.80 percent to $101.09, while gold traded up 1.44 percent to $1,302.80.

Silver traded up 0.51 percent Friday to $19.95, while copper fell 0.30 percent to $3.01.

Eurozone
European shares were higher today.

The Spanish Ibex Index rose 0.88 percent, while Italy's FTSE MIB Index climbed 0.83 percent.

Meanwhile, the German DAX surged 0.70 percent and the French CAC 40 jumped 0.79 percent while U.K. shares gained 0.59 percent.

Top 10 Prefered Companies To Invest In 2014

Economics
The US economy added 192,000 jobs in March, while the unemployment rate remained steady at 6.7%. However, economists were estimating an addition of 200,000 nonfarm jobs in the month.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Intraday Update Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Congress Prepares To Give GE A Big Tax Break Google Stock Split Should Have Icahn Fuming! Bullish Comments from FBR Not Helping Facebook Shares Stratasys and 3D Systems Each Announce Acquisitions Here's The State Many Are Betting Will Get Tesla's Gigafactory Signs A Bitcoin Tidal Wave Is Forming To Disrupt Business Related Articles (CIG + BZSUM) Mid-Day Market Update: NASDAQ Tumbles 1.8%; SYNNEX Shares Gain After Upbeat Results Updated Research Report on CEMIG - Analyst Blog Mid-Morning Market Update: Markets Mixed; CarMax Results Miss Estimates

You'll Like These Answers to Questions About Green Automotive (GACR, TSLA, KNDI)

On Tuesday of this week, yours truly pointed out that based on 2013's final numbers, Green Automotive Co. (OTCMKTS:GACR) - while not yet a threat to names like Kandi Technologies Group Inc. (NASDAQ:KNDI) or Tesla Motors Inc. (NASDAQ:TSLA) - was coming into its own as an electric vehicle company, and whittling away its uncertainty as an investment. Though a perfectly-clear vision of the future wasn't included in the press release detailing last year's results for GACR, the company did say it would be offering guidance for 2014 later this week. Well, today's the day. And, while KNDI and TSLA still don't have anything to worry about in their immediate future, let's just say Green Automotive still have a lot to look forward to in their foreseeable future.

First things first. The answer to the $64,000 question is, $13.8 million. That's what GACR expects to see on the top line when it finalizes 2014's results in early 2015. The other key number that the market is wondering is, zero. That's how much Green Automotive expects to lose next year on an operational basis.

That's a huge leap, as one can presume that even just modest growth in 2015 means the company is headed for an operating profit within a couple of years. Not bad for a relatively young EV company. The aforementioned Tesla Motors is about 1500 times bigger (in terms of market cap) and it's only been profitable in one quarter - the first quarter of 2013. like Kandi Technologies Group has been relatively consistent on the profit front, but it's not quite a head-to-head competitor with Green Automotive Co.

With all of that being said, it should be underscored that buses are driving the lion's share of current and future growth for this company.

We noted in Tuesday's look at GACR that the company ended 2013 making electric shuttle buses at about a pace of 2 per week, up from none as of March of last year. At roughly $100,000 apiece, this translated into potential annual revenue of about $10 million per year... and that's on top of the sales that its other divisions would be able to drive in 2014.

Well, now the company believes it will be able to scale up production to a pace of 4 buses per week. That's theoretically enough to generate $20 million in revenue per year (though it won't reach that pace until mid-year, so let's call it a ceiling of $15 million for 2014). Nice, but again, that's not even counting the revenue from its other divisions... Liberty E-care, and Goin' Green, plus a newly-acquired refurbished parts business. Also not mentioned anywhere along the way is any new business or new revenue that might stem from the company's involvement in the European consortium behind the EPSILON electric vehicle program, that is endeavoring to deign and build a small, passenger vehicle for eventual commercialization... although Green Automotive's involvement in EPSILON may not bear financial fruit for a while.

Still, the math doesn't add up. Considering the bus-making subsidiary Newport Coachworks is still working on an order of 432 electric buses placed by Don Brown Bus Sales near the middle of last year, the company's bus division alone is not only poised to stay busy for years, but alone should drive more than the projected revenue for 2014. What gives? Most likely the company is looking to over-promise and then over-deliver... not that investors are going to complain. 

Whatever the case, interested investors can find all the details and color on 2014 (which includes a wrap up of the recent acquisitions) at the company's website, and specifically, this morning's investor update. It's worth a read for anyone with an interest in the EV world, as this little company could be nipping at the heels of Tesla and Kandi sooner than most might realize. How so? The corporate update explained is was planning retail operations in the United States, and added it believed it would be exporting electric buses to the eastern-Asian market by the end of the year. Green Automotive Co. is really coming into its own now.

For more on Green Automotive Co., visit the SCN research page here, or review the SCN research report here. For deeper details on GACR and its EV opportunities, this report from Wall Street Research takes a much closer look.

Morningstar Acquires ByAllAccounts for $28M

Morningstar announced Tuesday that it had acquired ByAllAccounts, a data aggregator that serves financial advisors, for $28 million.

ByAllAccounts has a network of more than 2,100 clients including independent advisors, asset managers, wealth managers and family offices, trust companies and broker-dealers. The company also works with 4,300 custodians and 40 platform and service providers.

More than $730 billion in assets move through ByAllAccounts’ aggregation engine every day. The system uses patented artificial intelligence technology to collect account data that can be viewed on almost any platform, according to Morningstar.

“ByAllAccounts is a trusted name with a reputation for high-quality and sophisticated aggregation technology that eliminates manual data entry and mitigates human error,” Joe Mansueto, chairman and CEO of Morningstar, said in a statement. “We expect this acquisition to enhance many of Morningstar’s key solutions across our core customer groups, particularly bolstering our offerings that support an advisor’s workflow.”

Mansueto said Morningstar will continue to develop ByAllAccounts’ third-party distribution relationships. He noted that advisors are under more pressure to provide a full picture of a client’s wealth.

"The ability to efficiently provide a holistic view of an investor’s total financial portfolio is now a requirement for wealth managers — not a ‘nice to have’ capability,” he said.

James Carney, president and CEO of ByAllAccounts and an occasional blogger for ThinkAdvisor, will continue to lead the company of about 60 employees.

“Morningstar has extensive reach within the wealth management community,” Carney said in a statement. “Becoming part of Morningstar will broaden our distribution and give us access to its breadth of capabilities, including its vast investment data expertise. As investment vehicles become increasingly global in nature, Morningstar’s international operations will also allow us to respond to the growing need for data aggregation outside the United States.”

Hot Performing Stocks To Watch Right Now

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Blogs by James Carney on ThinkAdvisor:

Southwest Securities sold as part of merger

After a dormant couple of months, broker-dealer mergers and acquisitions came to life Tuesday when Hilltop Holdings Inc. and SWS Group Inc., the parent company of Southwest Securities Inc., said that they have entered into a definitive merger agreement.

SWS shareholders will receive cash and Hilltop stock worth $7.88 a SWS share. Hilltop, which owns a bank mortgage lender and another financial services firm, First Southwest Co., already controls 24% of SWS common stock.

In January, Hilltop offered to acquire for $7 a share the remaining outstanding shares of SWS that it didn't control. Investors are therefore seeing a 12.6% premium over Hilltop's original offer.

Shares of SWS were trading at $7.85 a share Tuesday afternoon, up 38 cents, or 5%, after the merger announcement. For the year, SWS shares are up $1.77, or 29%.

“This transaction creates the leading Texas-based broker-dealer and provides PlainsCapital Bank access to a significant source of additional core deposits,” Hilltop chairman Gerald J. Ford said in a statement. “The merger will bolster our market share and scale for many business lines within our broker-dealer, as well as our deposit market share in Dallas/Fort Worth.”

Southwest Securities Inc. has 150 broker-dealer and registered investment adviser clearing and custody clients. It also has 167 employee registered representatives, mostly in Texas and Oklahoma.

SWS Financial Services Inc. is the independent contractor arm of the company, with 297 registered reps.

The merger is expected to be completed prior to the end of the year, the two companies said in a statement.

Although activity has been quiet of late, M&A activity for independent broker-dealers started this year with a bang. On consecutive days in January, nontraded-REIT czar Nicholas Schorsch said that he was buying Cetera Financial Group for $1.15 billion and J.P Turner & Co. for $27 million.