FMC Technologies' $500M Order From PBR - Analyst Blog

Maker of oil drilling equipment, FMC Technologies Inc. (FTI), entered into a subsea equipment deal with Brazil's state-run energy giant, Petroleo Brasileiro S.A. or Petrobras (PBR). The estimated value of the contract is roughly $500 million.

Per the contract, FMC Technologies will supply 49 subsea trees, tooling, and related subsea controls for the development of pre-salt fields, based off the coast of Brazil. The company has planned to design and manufacture the tools at its Brazilian facilities.

FMC Technologies added that, this deal represents the second order from Petrobras after the two companies signed a four-year subsea tools supply agreement on Mar 29, 2012. The first order involved the delivery of 78 subsea trees and was valued at $900 million. The total order comprises 130 subsea trees, subsea multiplex controls and associated tools and equipment, which is expected to fetch FMC Technologies approximately $1.5 billion in revenues.

FMC Technologies has long-standing business ties with Petrobras and has supported many of the latter's operational achievements over the last 30 years.

FMC Technologies is well positioned in the subsea systems market. It is the company's largest and fastest-growing business, accounting for about two-thirds of revenues. FMC Technologies has received numerous attractive subsea contracts in the recent past from energy majors like Royal Dutch Shell plc (RDS.A) and Total SA (TOT).

Moreover, FMC Technologies' strong backlog, which now stands at more than $5.0 billion, not only reflects steady demand from its customers but also offers long-term earnings and cash flow visibility. This enables the company to navigate uncertainty better than many of its peers.

Houston, Texas-based FMC Technologies currently retains a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next 1 to 3 months.

Aetna Partners with Swiss Life - Analyst Blog

In an effort to expand its international business, U.S. health insurer Aetna Inc. (AET) has formed a partnership with Swiss Life, Headquartered in Zurich, Swiss Life is a leading life and pension insurer.

Via the partnership, Aetna will offer its international and domestic health care benefits and services to Swiss Life's multinational customers.

The service will be effective from Sep 1. Aetna will offer its services in the U.S. via Swiss Life Network. It is a network which has 60 insurance companies and business partners operating in 70 countries around the world. Through Swiss Life Network, the company offers international and local employee benefit packages.

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Aetna and Swiss Life are making all efforts possible to better serve their customers. In this view they will also tailor their services to suit the needs of their customers.

Both the companies, Swiss Life as well as Aetna, are a great fit for each other with their niche presence in their domestic market that is Europe and U.S respectively.

Swiss Life is also optimistic about expanding the services from Aetna going forward. It intends to make use of Aetna's health management analytics, technology and wellness solutions.

The partnership also benefits Aetna's WorldTraveler - a short-term international health coverage meant for business travelers. Now Swiss Life will offer the product to its customers worldwide.

Aetna is aggressively expanding its international business by entering into new regions as well as developing new products and services. Its international business is expected to be a solid contributor to the company's growth over the long term.

Aetna carries a Zacks Rank #2 (Buy). Another stock Molina ! Healthcare Inc. (MOH) with Zacks Rank#1 (Strong Buy) and UnitedHealth group Inc. (UNH) and WellPoint Inc. (WLP) with Zacks Rank#2 (Buy) is worth considering.

The Best Way To Profit From The Trillion-Dollar ...

I have a friend who suffers from a peculiar phobia. It's so bad that her fear keeps her from driving many places.

She will drive a hundred miles in the wrong direction to avoid coming face to face with the cause of her fear, a cause that many drivers face on a daily basis. Her fear can be hard on her social life, because she's unwilling to drive to many activities outside her neighborhood.

Believe it or not, my friend has a high-powered corporate job and is very successful, despite her unusual phobia. For a long time, I saw her fear as irrational, but after doing some research for this article, I am starting to understand it, irrational as it may seem to me.

Not only does my friend's fear make some sense, it has led to my discovery of a trillion-dollar investment opportunity.

My friend's fear is known as gephyrophobia -- the fear of bridges. My friend -- who has no fear of flying or other irrational worries -- is deathly afraid of driving across any bridge because of the possibility it may collapse.

Before researching this article, I was under the impression that bridges never collapse. Boy, was I wrong! According to Barry LePatner, author of "Too Big To Fall," there have been 600 bridge failures in the United States since 1989.

	Kevin Rofidal via Wikipedia Commons
	The I-35W Mississippi River bridge after its collapse on Aug! . 1, 2007.

There are about 18,000 "fracture-critical" bridges -- those with characteristics that make them especially susceptible to collapse -- in the U.S. that were built between the 1950s and the late '70s as part of the interstate highway system. In addition, there are more than 66,000 structurally deficient bridges and nearly 85,000 functionally obsolete bridges in the U.S. and Puerto Rico.

These numbers not only told me that my friend's fear has some basis in fact, they alerted me to the sorry state of the infrastructure of the United States. Infrastructure refers to bridges, roads, and other physical structures required for the smooth functioning of society. Consulting group McKinsey Global Institute estimates that the United States has a 1% shortfall in infrastructure spending compared with its GDP.

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One percent may not sound like much, but it works out to $160 billion per year. McKinsey estimated the cost of a five-year project to rebuild U.S. infrastructure at about $1 trillion.

President Barack Obama has a plan to deal with the U.S. infrastructure problem. This plan consists of a set of proposals to generate money for the massive construction projects by using tax breaks and loans to stimulate private investment.

While we are still a long way from addressing all the infrastructure issues, Obama has made some progress. The most recent annual infrastructure report card from the American Society of Civil Engineers recently upgraded U.S. infrastructure from a D to a D-plus. The organization gave credit to Obama's plan to increase private investment for the improvement.

One of the smartest ways in which investors can profit from the rebuilding of America is wit! h infrast! ructure mutual funds. The most important thing to know is that although these funds are increasing their assets, they haven't caught on yet with the investing public.

According to Morningstar, the 12 mutual funds with infrastructure as their focus have attracted just over $1 billion this year through April 30. Compared this amount with just under $750 million in all of 2012 and over $365 million in 2011, you can clearly see the dramatic capital inflow increase.

It's just not the United States that needs infrastructure improvement. My favorite investment in the infrastructure arena is the DWS RREEF Global Infrastructure Fund (Nasdaq: TOLSX). This fund requires a minimum investment of $2,500 and ranks as low risk, high return relative to its category. As you can see from this Morningstar chart, TOLSX has outperformed the benchmarks since 2009.

The fund boasts over $2 billion in assets invested in about 43% U.S. based infrastructure stocks and around 55% in non U.S. based infrastructure stocks. I like this mix as the fund stands to continue to benefit from the Obama-sparked infrastructure improvement projects in the U.S., while internationally hedged against potential U.S. political and economic issues. The fund's top holdings:

TOLSX has returned over 7% this year. Its best quarter to date was a stellar 17%-plus return during the third quarter of 2010.

Risks to Consider: This fund is considered low-risk, so the primary risk factor is stock market fluctuations. In addition, concentration in the infrastructure sector may cause losses due to global economic slowdowns and political risks. The fund also has a turnover rate of more than 170%. This active trading poses the risk of higher fees and costs passed along to the investor.

Action to Take --&! gt; As yo! u can see on the chart, the price has fallen into my value buy zone. I like this fund right now with a 12-month price target of $15.

How equity linked savings scheme is a key savings tool

In turbulent times, to make tax savings and investments work for you, you need to adopt the approach where tax-saving is an investment first and a tax-saver later for many. The investment that should make most sense is in an equity-linked savings scheme (ELSS).

These are mutual fund schemes which invest a minimum 65 percent in equity and are notified to avail tax benefits under Section 80C up to Rs 1 lakh in a financial year. These mutual funds have a 3-year lock-in, which is the least among the available investment instruments that qualify for tax savings.

Investments up to Rs 1 lakh are eligible for deduction from your total income. i.e you can save up to 30,900 in taxes by investing 1 lakh in ELSS .The new  direct tax code (DTC) provides for tax exemption of long-term capital gains from equity funds. Hence, gains from all investments made in ELSS even after DTC becomes effective will also be tax free.

The best way to invest in ELSS is through systematic investment plan (SIP).  The best way is to spread your ELSS investment through the entire financial year - through 12 systematic investments which helps   take advantage of fluctuations in the stock market. 

Each SIP installments is treated as a separate investment and the installments must complete three years of holding for it to be redeemed. Redemption is on a first-in first-out basis since the units allotted first will be redeemed first.

Like any equity scheme, ELSS offers both dividend and growth options. The growth option is preferable for long-term wealth accumulation, as any incremental amount will get reinvested and compounded. Those in need of cash or pensioners can opt for the regular payouts or the dividend option.

Choosing an ELSS is fairly easy, similar to choosing a diversified mutual fund, but here's how NOT to choose an ELSS. 

• Avoid funds that have less than three years of track record.

• Avoid funds that have an asset base of less than Rs.300 Crore. You can get this figure in the fund fact-sheet (available for download at the fund's site)

• Rank all ELSS in decreasing order of five -year returns. Choose one of the top three. we checked out ELSS performance during market crashes. There were two such crashes in the last five years.

• Many ELSS funds lost much more value than the indices both in 2008 and 2011.   That is why anyone who made a lump sum investment in 2008 and didn't follow it up with the regular investment  /SIP's  you are definitely sitting on losses and this is what has happened to most of the investors,

This is the best guide you have - far better than agents peddling their vested interests and half-cooked analysis as 'Research'. Don't get just lured by the returns chart which you mutual distributor exhibits to you; as remember there's more to a mutual scheme than just returns. Look for the consistency in the performance instead, with relevance to risk and returns, portfolio turnover ratio expense ratio and the portfolio of ELSS mutual funds

The author is the CEO of Bombay Capital Services.

Congress Will Punt Student Loan Rate Fix to CFPB: Washington Analysis

With only days left for lawmakers to prevent rates on some new federal student loans from doubling, Washington insiders say Congress will punt the private student loan issue to the Consumer Financial Protection Bureau.

Analysts at Washington Analysis said Monday that they believed “Congress will not move forward with legislation aimed at private student loans.” Rather, “we expect the CFPB will eventually develop private student loan servicing standards.”

During a hearing held Tuesday by the Senate Banking Committee called “Private Student Loans: Regulatory Perspectives,” Chairman Tim Johnson, D-S.D., offered some scary statistics about the state of student loan debt: It “now stands at over $1 trillion and is second only to mortgage debt as the largest form of debt in the country,” balances “have almost tripled since 2004,” and “an alarming one-third of borrowers are delinquent on their loans.”

Sen. Jack Reed, D-R.I., said that if Congress fails to act, interest rates will double July 1 on federal Stafford loans—jumping from 3.4% to 6.8%.

Eleanor Blayney, consumer advocate for the CFP Board, told AdvisorOne that because Congress has yet to reach an agreement, "it becomes more likely that rates will double on subsidized federal loans."

Rohit Chopra, student loan ombudsman for the CFPB, who testified before the committee, responded to Reed’s comment that the change in the Stafford student loan rates—if they doubled—would “only impact future borrowers, not those currently trying to refinance and pay back those loans.” He said that while “some would guess that change would be a slight tail wind to private loan origination, I don’t expect it to be a huge one.”

As revealed during testimony at the hearing, recent studies report that about 39 million borrowers have a student loan, with an average balance of about $25,000.

Of this total student loan debt, the CFPB has estimated the size of the private student loan market to be about $150 billion as of year-end 2011, representing about 15% of student loans outstanding, compared with 85% for the federal student loan market.

Johnson noted that nearly 1 million borrowers are in default on their private student loans. “While federal loans offer flexible relief during periods of hardship, most private student lenders do not offer the same options for struggling graduates,” he said.

Sen. Michael Crapo, R-Idaho, agreed, adding that one concern he often hears “is that banks do not offer enough borrower relief options,” such as refinancing of private student loans.

Todd Vermilyea, Senior Associate Director for the Division of Banking Supervision and Regulation at the Federal Reserve and Doreen Eberley, director of Risk Management Supervision at the Federal Deposit Insurance Corp., who both testified before the committee, offered to work with committee members to fill the refinancing gap.

It’s “unclear why there is not an active refinance market for student debt,” Eberley said. “We’d be interested in working with you on that.”

Added Vermilyea: “Regulatory policy would allow for it.”  

---

Check out 4 Tips for Paying Down Student Debt on AdvisorOne.

Top Portfolio Products: First Trust Launches Managed-Futures ETF

New products introduced recently include a new managed futures ETF from First Trust, an MLP and energy infrastructure ETF from Global X, and a new limited-duration high income fund from Pacific Life.

In addition, DMS Funds introduced the DMS Poland Index Fund, and the Behringer Harvard Multifamily REIT I is becoming self-managed.

Here are the latest developments of interest to advisors:

1) First Trust Launches Managed-Futures Strategy Actively Managed ETF

First Trust Advisors announced the launch a new actively managed ETF on Aug. 2.

The First Trust Morningstar Managed Futures Strategy Fund (FMF) is an actively managed ETF that seeks to provide investors with positive returns as its investment objective. The investment team has the flexibility to manage the contract selection to seek to exceed the performance of the fund’s benchmark, the Morningstar Diversified Futures Index. The index currently contains 34 different futures positions consisting of 19 commodities, nine equity indexes and six currencies.

The fund provides exposure, through a wholly owned Cayman Islands subsidiary, to commodities, currencies and equities through a long, short or flat futures strategy, and seeks to achieve positive returns that are not directly correlated to broad market equity or fixed income returns. John Gambla and Rob Guttschow serve as senior portfolio managers, and will primarily be responsible for daily investment decisions under the direction of an investment committee that includes six other individuals with extensive investment experience.

2) Global X Launches MLP & Energy Infrastructure ETF

Global X Funds announced Wednesday that it had launched the Global X MLP & Energy Infrastructure ETF (MLPX), whch seeks to provide results that track the price and yield performance, before fees and expenses, of the Solactive MLP & Energy Infrastructure Index. The index is designed to be a MLP benchmark index for midstream energy infrastructure master limited partnerships (MLPs) and corporations, and consisted of 35 holdings as of Aug. 1. The fund expects to pay quarterly income distributions.

MLPX offers exposure to the Solactive MLP Composite Index, which is designed to give investors a means of tracking the overall performance of the U.S. MLP asset class. MLPA consists of 30 MLPs engaged in the transportation, storage, processing, refining, marketing, exploration, production and mining of natural resources. Due to its structure as a regulated investment company, MLPX is not subject to corporate taxes, yet still provides access to the MLP sector. It also requires only 1099 tax filings from investors, not K-1s. Its management fee is 0.45%.

3) Pacific Life Funds Launches PL Limited-Duration High Income Fund

Pacific Life Funds has launched the PL Limited Duration High Income Fund (PLLDX), which invests primarily in high-yield corporate bonds and floating-rate loans.

The portfolio management team is able to allocate between bonds and loans, if the opportunity is available in the markets. The overall portfolio is expected to maintain a zero- to three-year duration, resulting in lower sensitivity to interest rate movements. PLLDX’s floating-rate loan holdings are intended to help lower overall portfolio volatility.

Deere Posts Mixed Retail Sales in May - Analyst Blog

Shares of agricultural, forestry and construction equipment manufacturer Deere & Company (DE) fell 1.2% after it announced mixed retail sales for May.

Sales Performance

In the agriculture and turf segment, Deere's U.S. and Canada utility tractor sales growth were flat in May, compared to the industry wide sales growth of 4%. Deere's inventory was reported to be lower than the industry wide inventory of utility tractors, which stood at 49% of the previous 12 months sales.

However, sales of row crop tractor outperformed the industry growth rate of 27% during the month. The industry inventory of row crop tractors were 33% of previous 12 months sales and Deere's inventory of row crop tractors was lower than the industry inventory. Sales of four-wheel drive tractor sales decreased in double digits in May, in stark contrast to the 8% growth witnessed across the industry during the month. Deere's inventory for the four-wheel drive tractor was in line with the industry inventory at 23% of the previous 12 months sales.

Combine sales fared better, pitted against 18% growth in the industry. Deere's inventory for the combines was slightly lower than the industry inventory at 20% of the previous 12 months sales. Retail sales of selected turf and utility equipment were up in double digits. In Europe, retail sales of tractors were up in low double digits, while combine sales went down by double digit. Coming to the Construction and forestry segment, sales went up in single digits.

Compared with the company's performance in April, sales for utility tractor remained the same while row crop tractors fared better. Sales for four-wheel drive contracted by double digits in May as compared with low double-digits decline in April. In Europe, tractor sales were up in low double digits as against single-digit contraction in April. Combine sales contracted in double digits versus flat sales in April.

Peer's Performance

Deere's performance was better t! han that of Caterpillar Inc. (CAT). Sales growth for the construction and mining equipment continued to be in the red with a decline of 7% in May, the sixth consecutive month of decline.

Earnings and Expectations

Deere reported record second quarter 2013 earnings of $2.76 per share, up 6% year over year. Quarterly sales also increased 9% to $10.9 billion. Both were ahead of the respective Zacks Consensus Estimates. The Agriculture & Turf segment sales increased 12% to $8.69 billion, attributable to higher shipment volumes and improved price realization, partially offset by a negative currency translation. Construction & Forestry experienced a 6% year-over-year decline in sales to $1.57 billion, due to lower shipment volumes.

Deere expects equipment sales to grow around 3% in the third quarter of fiscal 2013 and 5% for the full year. Segment-wise, Deere expects worldwide sales of Agriculture and Turf equipment to grow 7% in fiscal 2013. Higher commodity prices and strong farm incomes are expected to boost demand for farm machinery during the year. Furthermore, Deere's sales are expected to benefit from global expansion and new lines of advanced equipment.

Construction & Forestry equipment are expected to decline 5% in 2013, driven by cool, wet weather conditions in North America, flat sales in world forestry markets and reflecting a cautious outlook for the U.S. economic growth. Weakness in the European markets will continue to affect the forestry markets.

Conclusion

Deere will benefit from recovery in construction sector and strength in Brazil. However, continued weakness in the European markets, additional import duty imposed in Russia, Kazakhstan and Belarus, margin headwinds that include higher production costs associated with interim Tier 4 as well as global growth expenses remain concerns.

Deere currently retains a Zacks Rank #3 (Hold). Other stocks in the same industry that are worth a look include Kubota Corporation (KUB), which ! retains a! Zacks Rank #1 (Strong Buy), and Lindsay Corporation (LNN), which carries a short-term Zacks Rank #2 (Buy).

EU Nod for Pfizer's Prevenar Label Expansion - Analyst Blog

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Pfizer Inc. (PFE) recently announced that it has received EU approval for an expanded indication for its pneumococcal conjugate vaccine, Prevenar 13. With this approval, Prevenar 13 can now be used for the active immunization of adults 18 to 49 years of age for the prevention of invasive disease caused by vaccine-type Streptococcus pneumoniae (S. pneumoniae).

Prevenar 13 was earlier approved in the EU for use in infants, young children and adolescents (6 weeks to 17 years old) and adults ≥50 years of age. However, with the new expanded label, Prevenar 13 can now be used in the EU for all patient populations starting from infancy.

We note that EU approval for use in children 6 to 17 years of age was received earlier this year. Prevenar 13 is approved and marketed in several countries including the US where it is known as Prevnar 13.

The US label includes approval for use in infants, young children and adolescents children (6 weeks through 17 years of age) and adults 50 years of age and above. Prevnar 13 is also approved in children (6 weeks through 5 years) for the prevention of otitis media caused by 7 of the 13 strains.

Pfizer reported Prevnar/Prevenar 13 sales of $3.7 billion in 2012, up 2%. Pfizer is currently conducting the Community-Acquired Pneumonia Immunization Trial in Adults (CAPiTA) in people ≥ 65 years of age.

The study has been designed to evaluate whether Prevnar 13 is effective in preventing the first episode of community-acquired pneumonia caused by the serotypes contained in the vaccine. Pfizer expects this event-driven study to complete in the second half of 2013.

Pfizer currently carries a Zacks Rank #3 (Hold). Pfizer recently lowered its earnings and revenue outlook for 2013 following the divestment of its stake in its former animal health business, Zoetis, Inc. (ZTS).

Companies that curre! ntly look well-positioned include Jazz Pharmaceuticals (JAZZ) and Santarus, Inc. (SNTS). While Jazz is a Zacks Rank #1 (Strong Buy) stock, Santarus carries a Zacks Rank #2 (Buy).

10 Best Casino Stocks To Invest In Right Now

Las Vegas is back, and it's just in time for some of the companies relying on a recovery. In May, the Las Vegas Strip saw gaming revenue climb 6.4%, to $505 million, and for the last year, revenue is up 4.3%, to $6.33 billion.�

This is in stark contrast to regional gaming, where casinos across the country are seeing revenue declines because of fierce competition. But Las Vegas plays a different game, drawing customers in for the party, and getting them to gamble while they're there. It's also more expensive to increase supply on the Las Vegas Strip, which has helped keep supply level since the financial crisis.

The next step
The top end of the market has been doing well over the past two years, and Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) have been the beneficiaries. Las Vegas Sands's Las Vegas�revenue was up 7% in the first quarter, while Wynn's�was up 6.6%. But MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) haven't seen the same success in the lower end of the market.

10 Best Casino Stocks To Invest In Right Now: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Jeanine Poggi]

  Wynn Resorts'(WYNN) run up of more than 55% this year has caused Wall Street to question its valuation.

  Currently, eight analysts have a buy rating on Wynn, 16 say hold, two rate it underperform rating and one says to sell the stock.

  "With little on the growth horizon in the intermediate term, new competition from Cotai coming in 2011 and 2012 ... and the unclear timing of a true recovery in Las Vegas, we see few catalysts not yet priced-in to pull valuation higher than current levels," Bain wrote in a note following its third-quarter earnings report.

  During the quarter, Wynn lost $33.5 million, or 27 cents a share, compared with a profit of $34.2 million, or 28 cents, in the year-ago period. The loss was attributed to charges related to servicing its debt. On an adjusted basis, Wynn actually earned 39 cents, matching Wall Street's outlook.

  Total Revenue grew to $1 billion from $773.1 million, better than the $990.8 million analysts predicted.

  In Macau, Wynn reported a 50% surge in revenue to $671.4 million, while EBITDA was $198 million, up 54.5% from $128.2 million in the third quarter of 2009. Earlier in the year the company opened its $600 million Wynn Encore Macau, which added 414 rooms to the market.

  Looking ahead, Wynn expects to break ground on its Cotai development in early 2011. The $2 billion to $3 billion project is slated to open in 2015, and management said it would provide additional details following its fourth-quarter earnings report.

  In Las Vegas, CEO Steve Wynn says the Strip is on the road to recovery. "I believe we have seen the bottom in Las Vegas," he said during the company's third-quarter conference call. "I don't know how fast it is going to get better but it isn't going to get any worse."

  Las Vegas revenue inched up 3.1% to $334.5 million during the three-month period, and EBITDA grew 9.3% to $76.5 million.

  Wynn also issued a cash dividend of $8 a share payable on Dec. 7 to sharehold! ers of record on Nov. 23.

10 Best Casino Stocks To Invest In Right Now: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Jeanine Poggi]

  Pinnacle Entertainment(PNK) was the great transition story of 2010, with shares spiking about 45% this year.

  The regional casino operator's most impressive story has been in its gross margins, as management, under the leadership of new CEO Anthony Sanfilippo, is in the process of increasing the company's operating efficiencies and prudently allocating capital. Analysts believe Pinnacle is in the early stages of this process, and will continue to drive revenue growth.

  In its third quarter, Pinnacle reported a surprise profit of 10 cents a share on an adjusted basis, better than consensus estimates of a loss of 7 cents. Revenue grew 15% to $287.8 million, while property-level margins reached 23.4%, also ahead of forecasts.

  Last month, Pinnacle purchased Cincinnati's River Downs Racetrack for $45 million. The deal includes 155 acres, 35 of which are still undeveloped. The transaction is expected to close by the end of the first quarter of 2011.

  This deal could generate significant returns in the event that Ohio decides to legalize video lottery terminals at racetracks, Santarelli said.

  Pinnacle is also in the process of looking for a buyer of its oceanfront land in Atlantic City, where it originally intended to build a $1.5 billion casino, before squelching plans. The casino operator bought the land in 2006 for $270 million from groups affiliated with Carl Icahn and later added another piece of land for $70 million.

  While the land's currently value is $38 million, Pinnacle insists it will not sell it on the cheap, holding out for the best deal.

  Pinnacle currently has $228 million in cash and $375 million of availability under its revolver.

Top Value Stocks To Invest In 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

10 Best Casino Stocks To Invest In Right Now: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Hawkinvest]

  MGM Resorts International (MGM) is one of the world's largest hotel and casino companies, based in Las Vegas. Since December, MGM shares have been trading in a range of about $9, to almost $15 per share. The stock is now at the upper limit of the recent trading range which means that the risk of holding or buying this stock right now, could be elevated. MGM shares have rallied with the markets but appear extended and vulnerable to a sell-off. The company has a heavy debt load and it has been reporting losses. The balance sheet has about $13.45 billion in debt and only about $1.97 billion in cash. MGM could be impacted by higher oil prices because many consumers could cut back on spending if they go to Las Vegas, and some might decide not to go at all, and instead opt for a "staycation." With MGM facing challenges and the shares near recent highs, it could make sen se to sell now and buy on dips later this year.

  Here are some key points for MGM:

  Current share price: $14.18

  The 52 week range is $7.40 to $16.05

  Earnings estimates for 2011: a loss of 53 cents per share

  Earnings estimates for 2012: a loss of 39 cents per share

  Annual dividend: none

10 Best Casino Stocks To Invest In Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Hesler]

  Boyd Gaming(BYD) posted a bigger-than-expected drop in its second-quarter earnings, citing weak performance in Las Vegas, the Midwest and the South.

  During the quarter, the casino operator earned $3.4 million, or 4 cents a share, a 73% plunge from $12.8 million, or 15 cents, in the year-ago period. Adjusted earnings came in at 5 cents a share, significantly lower than the 10 cents Wall Street predicted for Boyd.

  Boyd's revenue fell 6% to $578.4 million, also short of the consensus of $588 million.

  "The lingering effects of the recession have left consumers unusually sensitive to shifts in the economy, and they now react more quickly to economic data and other developments, such as fluctuations in the stock market," said CEO Keith Smith, in a statement. "Although conditions remain uncertain, we believe long-term stabilizing trends are still in place, and that year-over-year growth is achievable by the end of 2010."

  In the Las Vegas locals market, the rate of decline in earnings before interest, taxes, depreciation and amortization rose to 16.2% from 10.8%, J.P. Morgan analyst Joseph Greff wrote in a note. Boyd previously reported a 9.9% decline for its Borgata property in Atlantic City. Revenue came in at $186.9 million, a 2.4% decrease from the year-ago period.

  "We think second-quarter results are less important than the coming operating results in the second-half of 2010, when the Atlantic City market faces increased regional competitive pressures from tables in Pennsylvania and West Virginia and the first Philadelphia casino opens this summer," J.P. Morgan analyst Joseph Greff wrote in a note.

  Greff reaffirmed his underweight rating on Boyd, given increasing competition in Atlantic City, a weak recovery in the Las Vegas locals market and stagnant regional gaming trends.

  While there is no doubt the Atlantic City gaming market remains one of the most depressed, Borgata continues to dominate the market and gain share. Atlant! ic City saw gaming revenues plunge 11.1% in June to $286.8 million. Boyd co-owns Borgata with MGM Resorts, which is currently in the process of divesting its 50% stake.

10 Best Casino Stocks To Invest In Right Now: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Quickel]

  Penn National Gaming(PENN) squeaked past its guidance through improved cost controls, and investors praised its efforts.

  But expectations were low, and its upbeat outlook shouldn't be viewed as a message that regional markets are recovering. "Going forward, we project soft regional gaming revenue results over the next three to six months, as we do not expect to see a significant increase in consumer spending patterns given the uncertain economic environment," J.P. Morgan analyst Joseph Greff wrote in a note.

  Penn National raised its full-year earnings guidance to $1.18 from $1.13 a share, and up its revenue outlook by $26 million to $2.44 billion from $2.41 billion.

  During the second quarter, the company earned $9.2 million, or 9 cents a share, compared with $28.5 million, or 27 cents, in the year-ago period. Excluding items, Penn actually earned 29 cents a share, a penny higher than estimates.

  Revenue rose 3% to $598.3 million, higher than the $597.1 million Wall Street projected. The upside was driven by both better revenues and margins and was generally broad-based across many properties, especially larger venues in Charlestown, Lawrenceburg and Grantville, Pa.

  Penn National rolled out table games in West Virginia and Pennsylvania during the quarter, which should be a growth catalyst moving forward. The company also plans to open a slot facility in Maryland on Sept. 30 and expects its Toldeo, Ohio, location to open in the first-half of 2012. Its Columbus project is slated to open in the second-half of 2012.

  The company repurchased 409,000 shares during the quarter. "[This] sends a message to investors on the value of its equity, but perhaps indicating the lack of near-term acquisition opportunities," J.P. Morgan analyst Joseph Greff wrote in a note.

Best Medical Stocks To Watch Right Now

Edward Owens has managed Vanguard�� Health Care Fund (VGHCX) since its inception in 1984. He earned his MBA from Harvard Business School and has been an investment manager for over 30 years. Vanguard�� Health Care Fund contains foreign and domestic stocks in various aspects of the health care industry, including pharmaceutical firms, medical supply companies and research firms. Because the fund is so narrow in scope, returns often swing widely from year to year. It ranks a ��,��the highest on Vanguard�� risk scale, which they describe as ��ore risk, more reward.��Owens has delivered an average annual performance of 16.3% since inception, and 11.45% for full-year 2011.

Owens noted in his fourth-quarter letter that he ��ill continue to strive to identify early the drugs and devices with the best chances of changing medicine, as well as the service companies that are best positioned to capture opportunities along the health care chain.��h3>Best Medical Stocks To Watch Right Now: Fuse Science Inc (DROP)

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

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

The Company�� products consist of EnerJel, PowerFuse and ElectroFuse. Ene! rJel is a topical product leveraging some of its technology, which is designed to address muscle fatigue and soreness, before, during and after physical activity. The product contains a natural anti-inflammatory and energy source which is directly applied to the problem area. PowerFuse contains natural ingredients, causes no sugar crash with zero calories and less than half the caffeine of an eight ounce cup of premium coffee. It is available in a great tasting Berry Blast Flavor. ElectroFuse contains natural ingredients, causes no sugar crash with zero calories, is easily portable and is available in a great tasting Salty-Sweet flavor.

Best Medical Stocks To Watch Right Now: DENTSPLY International Inc.(XRAY)

DENTSPLY International Inc. designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. The company?s dental consumable products include dental sundries, such as dental anesthetics, prophylaxis pastes, dental sealants, impression materials, restorative materials, tooth whiteners, and topical fluoride; and small equipment, including high and low speed handpieces, intraoral curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers used in dental offices for the treatment of patients. Its dental laboratory products comprise dental prosthetics, including artificial teeth, precious metal dental alloys, dental ceramics, and crown and bridge materials, as well as equipment, such as computer aided machining ceramic systems and porcelain furnaces used in the preparation of dental appliances by dental laboratories. The company?s dental specialty products consist of endodonti c instruments and materials, implants and related products, bone grafting materials, 3D digital implantology, and orthodontic appliances and accessories. Its customers include dentists, dental hygienists, dental assistants, dental laboratories, and dental schools. The company distributes its dental products directly to dental laboratories and dental professionals, as well as through distributors, dealers, and importers. DENTSPLY International Inc. was founded in 1983 and is headquartered in York, Pennsylvania.

Advisors' Opinion:

• [By Newsy Stocks]

  DENTSPLY International Inc. (Nasdaq: XRAY) designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. The company has a total market capitalization of $4.8 billion and in the last 1-year the stock has given a return of 11.8 percent. The company has a dividend yield of 0.59 percent, and has a price of profit of 16. The stock is trading at a P/E of 17.46, higher than the industry’s average P/E of 15.81. The PEG ratio of the stock is 1.65 years, higher than industry’s PEG of 1.15 years. The average 5 years historical earnings growth is 7.50 percent and is expected to grow at 11.20 percent for the next 5 years. Its quarterly revenue growth is estimated at 6.83 percent. The stock has a P/B value of 2.30x percent. Analyst at Barrington Research has given it an outperform rating on $42.75 price target. Based on the price target the stock is trading at a dis count of 21.73 percent. XRAY was up 1.98 percent to $34.01 a share.

10 Best Canadian Stocks To Own Right Now: Galena Biopharma Inc (GALE.PH)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Preven tion of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovari an and endometrial adenocarcinomas. Folate binding protein! h! as very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that ! targ! ets! conne! ctive tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Best Medical Stocks To Watch Right Now: Organovo Holdings Inc (ONVO)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The Company has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an automate! d device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Advisors' Opinion:

• [By Roberto Pedone]

  Organovo (ONVO) is a three-dimensional biology company focused on delivering breakthrough bioprinting technology and creating tissue on demand for research and medical applications. This stock closed up 8.5% to $5.21 in Thursday's trading session.

  52-Week Range: $1.78-$8.50
  
  Thursday's Volume: 2.88 million
  
  Three-Month Average Volume: 1.78 million

  From a technical perspective, ONVO ripped higher here back above its 50-day moving average of $4.88 with heavy upside volume. This stock has been downtrending badly for the last month, with shares plunging lower from its high of $8.50 to its recent low of $4.43. During that downtrend, shares of ONVO have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ONVO might be ready to see its downside volatility stop and reverse its downtrend and enter a new uptrend. The probability for that reverse in trend is supported by the high volume on Thursday.

  Traders should now look for long-biased trades in ONVO as long as it's trending above its recent low at $4.33 and then once it sustains a move or close above $5.21 to $5.64 with volume that hits near or above 1.78 shares. If we get that move soon, then ONVO will set up to re-test or possibly take out its next major overhead resistance levels at $6.65 to $7.50.

Best Medical Stocks To Watch Right Now: Organovo Holdings Inc (ONVO.PK)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The C ompany has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an aut! om! ated device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Best Medical Stocks To Watch Right Now: StemCells Inc (STEM)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Dollar Could Put in for a Natural Rebound or Explosive Rally

Dollar Could Put in for a Natural Rebound or Explosive Rally

Fundamental Forecast for US Dollar: Bullish

A range of Fed officials stay out of the way of the September Taper timetable US Treasury auctions show a slow rebound in foreign interest, but total demand weakening A strong showing in US service sector activity and trade reinforces growth, Taper outlook

Over the past week, the Dow Jones FXCM Dollar Index (ticker = USDollar) suffered its worst weekly decline since December 2011 and its longest string of daily losses since December 2010. Taken without context, that is a strong bearish sign. However, when we consider the fundamental and technical backdrop; this situation looks like a launching point for a dollar rally. The question is whether it will be a mild, natural correction or an explosive rally with genuine trend generation. That outcome will be determined by the progress found on the market’s primary fundamental concerns: the market’s appetite for risk and speculation surrounding the Fed’s ‘Taper’.

To understand where the dollar will move heading forward, we have to establish the conditions under which it has arrived at its current position. The slide through this past week was extraordinary for both its consistency and intensity. Yet, the slide evolved without the burden of the benchmark currency’s primary fundamental themes. Looking for evidence of a rebound in risk appetite; the speculative-favorite S&P 500 meandered – trading on the lowest non-holiday volume since the September 2011 terrorist attack – while other measures of sentiment similarly floundered. As for Taper premiums, both sp! eeches by Fed officials’ speeches and data on the economic docket reinforced the probability of a September move by the central bank.

Top 10 Financial Companies For 2014

Without conviction, the kind of move that we have seen this past week would more appropriately be labeled a ‘natural correction’. Though, traders know that such moves are temporary in nature without a strong shift in conviction and participation to change the underlying current. A simple look at market momentum, we find both the 100 and 200-day simple moving averages are below spot and rising steadily. So long as the systemic conditions behind the capital markets and investor sentiment don’t change, a return to trend for the greenback grows more likely with each day. Yet, the force of that transition depends on the accelerants available to facilitate it.

The first thing we have to notice, is that the economic docket does not carry the kind of event risk that we would expect to definitively wipe out risk trends nor verify the September time frame for the Fed’s first reduction in its stimulus program. It is difficult to determine what known event risk short of the next FOMC rate decision (on September 18th) can carry enough influence to upset the current equilibrium. This past week, remarkably strong numbers for US trade and service-sector activity reinforced the more dubious – but positive – 2Q GDP and employment figures from the previous week. Furthermore, the Fed speeches from the period – particularly extreme dove Charles Evans – were clearly shaped to avoid contradicting expectations of a September start for the stimulus wind down. Yet, despite this combination, confidence in stimulus-backed speculative-position held fast.

In the week ahead, we have another round of contributory data to the stimulus debate as well as central bank talks on tap; but t! hese list! ings don’t seem to be any more convincing than what we have recently priced in. On Tuesday, non-voting Atlanta Fed President Dennis Lockhart (a hawk on QE) will speak on the economy, while voter St. Louis Fed President James Bullard (a QE dove) is set to speak on monetary policy on Wednesday and the economy Thursday. For data, retail sales, the consumer price index and University of Michigan consumer sentiment survey are all notable.

If this list of indicators and speeches can’t generate an explicit shift in risk trends, the natural ebb and flow will guide the dollar. Given the hefty move by the benchmark currency this past week despite the lack of drive, a rebound is likely. Yet, its potency and follow through will be questionable. Alternatively, should there be an innate shift in sentiment, the greenback can quickly return to its role as the market’s preferred reserve currency – for better or worse – and pitch into a serious trend.

Looking at the backdrop for capital markets beyond S&P 500’s record highs, conditions looks highly suspect. This past week, volume on the S&P 500 was the lowest seen on a non-holiday period since the markets were closed after the September 2001 terrorist attacks in New York – an extension of a steady trend. Leverage used at the NYSE has moved to record highs. Exposure to exceptionally risky assets has grown. Retail interest in riskier assets has ramped up while ‘professional’ exposure has fled at the fastest pace in years. Meanwhile, volatility indicators show extreme complacency while rates of return are near record lows… - JK

Written by: John Kicklighter, Chief Strategist

Sign up for John’s email distribution list, here.

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Will Halliburton Discover Rising Prices?

With shares of Halliburton (NYSE:HAL) trading around $45, is HAL 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

Halliburton provides a range of services and products for the exploration, development, and production of oil and natural gas. The company operates in two segments: Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, including stimulation services and sand control services, as well as cementing services comprising the bonding of the well, well casing, and casing equipment. The Drilling and Evaluation segment offers drill bits and services; as well as coring equipment and services; wireline and perforating services; and testing services comprising acquisition and analysis of reservoir information and optimization solutions.

On Monday morning, Halliburton delivered earnings and revenue figures that beat Wall Street's expectations. The revenue beat is seen as a positive sign to shareholders who seek to see high growth out of the company. As consumers and business demand for energy continues to rise, companies like Halliburton are well-positioned to provide products and services well into the future.

T = Technicals on the Stock Chart are Strong

Halliburton stock has seen a consistent uptrend over the last few months. The stock is now trading near highs for the year and is looking to continue this trend. The stock has made new all-time highs just about every year and looks to be headed there this year as well. 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, Halliburton is trading above its rising key averages which signal 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 Halliburton options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Halliburton Options	24.84%	0%	0%

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

	Put IV Skew	Call IV Skew
August Options	Flat	Average
September 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 very minimal 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 Halliburton’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Halliburton look like and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	-8.75%	24.72%	-26.87%	-12.16%
Revenue Growth (Y-O-Y)	1.15%	1.54%	3.20%	8.60%
Earnings Reaction	-1.64%	5.58%	5.05%	3.15%

Halliburton has seen decreasing earnings and increasing revenue figures over most of the last four quarters. From these numbers, the markets have had mixed feelings about Halliburton’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Halliburton stock done relative to its peers, Schlumberger (NYSE:SLB), Apache (NYSE:APA), Baker Hughes (NYSE:BHI), and sector?

	Halliburton	Schlumberger	Apache	Baker Hughes	Sector
Year-to-Date Return	29.81%	20.93%	6.84%	16.29%	18.73%

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

Conclusion

Halliburton is a bellwether in the energy space that provides essential oil and gas products and services worldwide. A recent earnings beat has investors in the company wanting more. The stock has seen a steady rise over the last several months. Over the last four quarters, investors have had mixed feelings about earnings reports as earnings have been decreasing while revenue figures have been increasing. Relative to its peers and sector, Halliburton has been a year-to-date performance leader. Look for Halliburton to continue to OUTPERFORM.

Will Facebook Continue to See Rising Prices?

With shares of Facebook (NASDAQ:FB) trading around $36, is FB 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

Facebook is engaged in building social products in order to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about. Developers can use the Facebook platform to build applications and websites that integrate with Facebook to reach its global network of users, and to build personalized and social products. Advertisers can engage with more than 900 million monthly active users on Facebook, or subsets of its users, based on information they have chosen to share.

Social networking has been a powerful movement and tool in recent years, and has had a major influence in the way many companies and consumers operate daily. The company's mobile app has reached a record 100 million users, while the simple app is most heavily used in emerging markets. Facebook reported earnings last Wednesday afternoon that surprised analysts, with strong profits from mobile ads. Facebook's ad revenue from mobile was close to nothing a year ago, but in the second quarter, mobile ads made up 41 percent of the site's total ad revenue of $1.6 billion. Chief Executive Officer Mark Zuckerberg predicted, "Soon we'll have more revenue on mobile than desktop."

T = Technicals on the Stock Chart are Strong

Facebook stock was stagnant over the last several months. The stock recently reported earnings that impressed investors, and is trading at highs for the year. Analyzing the price trend and its strength can be done using key simple moving averages.

What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Facebook 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 Facebook options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Facebook Options	36.50%	16%	13%

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

	Put IV Skew	Call IV Skew
August Options	Flat	Average
September Options	Flat	Average

As of today, there is average demand from call buyers or sellers, and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal 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 what that means for Facebook’s stock.

E = Earnings Are Increasing 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 Facebook’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Facebook look like, and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	58.33%	0.00%	-89.46%	-120.00%
Revenue Growth (Y-O-Y)	53.13%	37.81%	40.14%	32.29%
Earnings Reaction	29.61%	5.61%	-0.83%	19.12%

Facebook has seen rising earnings and revenue figures over the last four quarters. From these numbers, it seems the markets have been very happy about Facebook’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Facebook stock done relative to its peers, Microsoft  (NASDAQ:MSFT), Google  (NASDAQ:GOOG), LinkedIn (NASDAQ:LNKD), and sector?

	Facebook	Microsoft	Google	LinkedIn	Sector
Year-to-Date Return	36.21%	18.65%	25.15%	77.67%	22.82%

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

Conclusion

Facebook aims to provide a very valuable social networking experience to its users, developers, and advertisers. A recent earnings release has investors in the company extremely excited about the company, and has the stock trading at highs for the year. Over the last four quarters, investors have been very happy with the company, as earnings and revenue figures have been rising. Relative to its peers and sector, Facebook has been a year-to-date performance leader. Look for Facebook to continue to OUTPERFORM.

How Banks Set Interest Rates On Your Loans

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On the face of it, figuring out how a bank makes money is a pretty straightforward affair. A bank earns a spread on the money it lends out from the money it takes in as a deposit. The net interest margin (NIM), which most banks report quarterly, represents this spread, which is simply the difference between what it earns on loans versus what it pays out as interest on deposits. This, of course, gets much more complicated given the dizzying array of credit products and interest rates used to determine the rate eventually charged for loans. Below is an overview of how a bank determines the interest rate for consumers and business loans.

It All Starts with Interest Rate Policy
Banks are generally free to determine the interest rate they will pay for deposits and charge for loans, but they must take the competition into account, as well as the market levels for numerous interest rates and Fed policies. The United States Federal Reserve influences interest rates by setting certain rates, stipulating bank reserve requirements, and buying and selling "risk-free" (a term used to indicate that these are among the safest bonds in existence) U.S. Treasury and agency securities to impact the deposits that banks hold at the Fed. This is referred to as monetary policy and is intended to influence economic activity as well as the health and safety of the overall banking system. Most market-based countries employ a similar type of monetary policy in their economies.

A primary vehicle the U.S. Fed uses to influence monetary policy is setting the Federal funds rate, which is simply the rate at which banks trade balances (borrow and lend) with the Fed. Many other interest rates, including the prime rate, which is a rate that banks use for the ideal customer with a solid credit rating and payment history, are based off Fed rates such as the Fed funds. Other considerations that banks may take into account are expectations for inflation levels, the demand and velocity for money throughout the United States and internationally, stock market levels and other factors discussed below.

Market-based Factors
Returning again to the NIM, banks look to maximize it by determining the steepness in yield curves. The yield curve basically shows in a graphical format the difference between short-term and long-term interest rates. Generally, a bank looks to borrow, or pay short-term rates to depositors, and lend, through making loans, at the longer-term part of the yield curve. If a bank can do this successfully, it will make money and please shareholders. An inverted yield curve, which means that interest rates on the left, or short-term spectrum, are higher than long-term rates, makes it quite difficult for a bank to lend profitably. Fortunately, inverted yield curves occur infrequently and generally don't last very long.

One academic study, appropriately entitled "How Do Banks Set Interest Rates," estimates that banks base the rates they charge on economic factors including the level and growth in Gross Domestic Product (GDP) and inflation. It also cites interest rate volatility, or the ups and downs in market rates, as an important factor banks look at. These factors all impact the demand for loans, which can help push rates higher or lower. When demand is low, such as during an economic recession, banks can increase deposit rates to encourage customers to lend, or lower loan rates to incentivize customers to take on debt.

Local market considerations are also important. Smaller markets may have higher rates due to less competition, as well as the fact that loan markets are less liquid and have lower overall loan volume.

Client Inputs
As mentioned above, a bank's prime rate, which is again the rate that banks charge to their most credit-worthy customers, is the ideal rate they charge and assumes a very high likelihood of the loan being paid back in full and on time. But as any consumer knows who has tried to take out a loan, a number of other factors come into play. For instance, how much a customer borrows, what his or her credit rating is, and the overall relationship with the bank (e.g. the number of products the client uses, how long he or she has been a customer, what credit score he or she has) all come into play.

The amount of money put down as a down payment, be it none, 5%, 10% or 20%, is also important. Studies have demonstrated that when a customer puts down a large initial down payment, he or she has sufficient "skin in the game" to not walk away from a loan during tough times. The fact that consumers put little money down (and even had loans with negative amortization schedules, meaning the loan balance increased over time) to buy homes during the Housing Bubble is seen as a huge factor in helping fan the flames of the Credit Crisis and ensuing The Great Recession.

Collateral, or putting one's other assets (home, car, other real estate) into the loan terms, also influences skin in the game. The loan duration, or how long to maturity, is also important. With a longer duration comes a higher risk that the loan will not be repaid. This is generally why long-term rates are higher than short-term ones. Banks also look at the overall capacity for customers to take on debt. For instance, the debt service ratio attempts to fit this discussion into one convenient formula that a bank uses to set the interest rate it will charge for a loan, or that it is able to pay on a deposit.

A Summary of Different Interest Rates
We covered the Fed funds rate, prime rate and related interest rates above. There are many other types of interest rates and loan products. When it comes to setting loan rates, certain loans, such as residential home mortgage loans, may not be based on the prime rate but rather trade off the Treasury Bill rate (a short-term U.S. government rate), the London Interbank Offered Rate (LIBOR) and longer-term U.S. Treasury bonds. As rates on these market rates rise, so do the rates that banks charge. Other loans and rates include government-backed loans such as mortgage-backed securities (MBS), student loans and small business loans (SBA), the last of which are partially backed by the government. When the government has your back, loan rates tend to be lower and are used as the basis for other loans made to consumers and businesses. Of course, this can lead to reckless lending and moral hazards when borrowers assume the government will bail them out when a loan goes bad.

Takeaway for Consumers
Banks use an array of factors to set interest rates. The truth is, they are looking to maximize profits, through the NIM, for their shareholders. On the flip side, consumers and businesses are most interested in how to get the lowest rate possible. A common sense approach would be to turn the above discussion on its head, or look at the opposite factors from what a bank might be looking for. The easiest factors stem from client inputs, such as ensuring the highest credit score possible, putting up collateral for a loan or a large down payment, and using many services (checking, savings, brokerage, mortgage) from the same bank to get a discount. Also, borrowing during a down economy or when uncertainty is high (about factors such as inflation and a volatile interest rate environment) could be a good time to borrow - a time when a bank may be best motivated to make a deal or give you the best rate possible. Finally, a loan or rate with government backing can also help you put the odds in your favor of securing the lowest loan rate possible.