5 Best Heal Care Stocks To Own For 2014

LOS ANGELES (MarketWatch) -- Australian stocks rallied in early Monday trade, with the S&P/ASX 200 (AU:XJO) adding 0.9% to 5,433.50 to hit another five-year high after Wall Street booked gains Friday. Miners were a strong spot, with Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) up 2.3%, BHP Billiton Ltd. (AU:BHP) (BHP) gaining 0.9%, Evolution Mining Ltd. (AU:EVN) (CAHPF) ahead by 2.6%, and Rio Tinto Ltd. (AU:RIO) (RIO) rising 1.1% after selling its interest in eastern Australia's Clermont coal mine for about $1 billion. Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) improved by 1.4%, the best performer among the major banks, after an Australian Financial Review reported David Gonski, executive chairman of the Australian government's Future Fund, was being sought to run the lender.

5 Best Heal Care Stocks To Own For 2014: BioSpecifics Technologies Corp(BSTC)

Biospecifics Technologies Corp., a biopharmaceutical company, involves in the development of an injectable collagenase for various indications. It has a development and license agreement with Auxilium Pharmaceuticals, Inc. for injectable collagenase for clinical indications in Dupuytren?s contracture, Peyronie?s disease, and frozen shoulder. Biospecifics Technologies Corp. also focuses on the development of collagenase for various other clinical indications, including human and canine lipoma and cellulite. The company develops and commercializes XIAFLEX, which is used for the treatment of adult Dupuytren?s contracture. Biospecifics Technologies Corp. was founded in 1957 and is headquartered in Lynbrook, New York.

5 Best Heal Care Stocks To Own For 2014: McGrath RentCorp(MGRC)

McGrath RentCorp, a diversified business to business rental company, engages in the rental and sale of relocatable modular buildings, electronic test equipment, and liquid and solid containment tanks and boxes primarily in the United States and Canada. It operates in four segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. The Mobile Modular segment rents modular buildings designed for use as classrooms, temporary offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, child care facilities, and office space; and portable storage containers. The TRS-RenTelco segment rents and sells general purpose electronic test equipment, including oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment for aerospace, defense, electronics, industrial, research, and semiconductor industries. This segment also provides communications test equipment comprising network and trans mission test equipment for various fiber, copper, and wireless networks to manufacturers of communications equipment and products, electrical and communications installation contractors, field technicians, and service providers. The Adler Tanks segment rents tanks and boxes, such as fixed axle steel tanks, vacuum containers, dewatering boxes, and roll-off and trash boxes for various containment solutions to store hazardous and non-hazardous liquids and solids used in oil and gas exploration and field services, refinery, chemical and industrial plant maintenance, environmental remediation and field services, infrastructure building construction, marine, pipeline construction and maintenance, tank terminals, wastewater treatment, and waste management and landfill service applications. The Enviroplex segment manufactures and sells portable classrooms to public school districts and other educational institutions in California. McGrath RentCorp was founded in 1979 and is based in Livermore, California.

Top 5 Canadian Stocks To Invest In Right Now: COMMERCEFIRST BANCORP INC(CMFB)

CommerceFirst Bancorp, Inc. operates as the holding company for CommerceFirst Bank that provides financial services to individuals and corporate customers located primarily in Anne Arundel County, Howard County, and Prince George?s County, Maryland. It accepts various deposit products that include business and personal checking accounts, NOW accounts, premium savings accounts, and tiered money market accounts, as well as certificates of deposit. The company also provides commercial loans for business purposes, including working capital, equipment purchases, real estate, lines of credit, and government contract financing; asset based lending and accounts receivable financing; real estate loans for business and investment purposes; commercial lines of credit; and merchant credit card services offered through an outside vendor, as well as services for business accounts that include remote deposit and Internet banking services. CommerceFirst operates five banking offices in A nne Arundel, Howard, and Prince George?s counties in central Maryland. The company was founded in 1999 and is headquartered in Annapolis, Maryland.

5 Best Heal Care Stocks To Own For 2014: Autoliv Inc (ALV)

Autoliv, Inc. (Autoliv) is a holding company. Autoliv is the supplier of automotive safety systems, with a range of product offerings, including modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, safety electronics, whiplash protection systems and child seats, as well as night vision systems, radar and other active safety systems. Autoliv has two main operating segments: airbags/seatbelt (including restraint electronics) products and active safety electronics products. In March 2010, the Company acquired Visteon Corporation's radar system business. In April 2010, the Company acquired Delphi's Occupant Protection Systems (OPS) operations in Korea and China. In addition, in April 2010, Autoliv Inc.'s Automotive Holding AS increased its stake in Norma AS from 51% to 93.74%. Additionally, Skandinaviska Enskilda Banken AB and ING Luxembourg SA sold their 6.67% and 10% stake, respectively, held in Norma AS. In October 2010, the Company acquired 51% interest in Bejing Delpi Automotive Safety Products. In November 2011, the Company acquired the airbag cushion cut&sew assets from Milliken. In June 2012, the Company sold its subsidiary Autoliv Mekan AB to Verktygs Allians i Hassleholm AB.

Autoliv has approximately 80 wholly or partially owned or leased production facilities located in 28 countries, consisting of both component factories and assembly factories. The Company�� component factories manufacture inflators, initiators, textile cushions, webbing materials, electronics, pressed steel parts, springs and overmoulded steel parts used in seatbelt and airbag assembly, seat subsystems, steering wheels and its active safety and night vision systems, and its other safety electronic systems. During the year ended December 31, 2010, Autoliv�� revenues were approximately 67% of airbags and associated products and approximately 33% of seatbelts and associated products. The Company�� markets are in Europe, North A! merica, Asia-Pacific and Japan. Its customers include the car manufacturers.

During 2010, the products manufactured by Autoliv�� consolidated subsidiaries consisted of approximately 121 million complete seatbelt systems (of which approximately 49 million were fitted with pretensioners), approximately 57 million side-impact airbags (including curtain airbags), approximately 28 million frontal airbag modules, approximately 12 million steering wheels, approximately 11 million electronic units (airbag control), approximately 0.4 million active safety systems and 0.1 million night vision systems. Autoliv owns two principal subsidiaries, AAB and Autoliv ASP, Inc. (ASP). Its AAB and ASP are developers, manufacturers and suppliers to the automotive industry of automotive safety systems. AAB and ASP�� products include seatbelts, frontal and side-impact airbags, steering wheels and seat sub-systems, as well as components for such systems.

Advisors' Opinion:

• [By Rich Duprey]

  In a bid to be more competitive, auto airbag manufacturer Autoliv (NYSE: ALV  ) announced yesterday that it will invest $50 million to build a new textile center in China that�will consist of a weaving plant, an airbag cushion plant, and a development center for airbag cushions and textiles.

5 Best Heal Care Stocks To Own For 2014: (CAPA)

Capital Art, Inc., an intellectual property management and exploitation company, engages in the acquisition, edition, marketing, and management of iconic photographic images from museum-quality limited editions to mass-market reproductions in the United States. It primarily sells and distributes classic and contemporary, limited edition photographic images, and reproductions. The company sells its product lines in the editorial, art and commercial photography markets through its wholesale, retail, and dealer/representation networks. It licenses and distributes its collections primarily to media owners and publishers, galleries, museums, auction houses, education networks, interior decorators, gift stores and multiple retailers, hotels, restaurants, and Internet sites. Capital Art, Inc. is based in Culver City, California.

CEO Closeup: Go big, says Towers Watson’s Haley

John Haley decided to take up running in the mid-2000s. Within months, he was a triathlete, who convinced his college-aged daughter to run, bike and swim in races with him.

"If you're going to do something, go big," he says.

It's an approach the CEO of Towers Watson has applied to his stewardship of the human resources consulting firm. When he took the reins of what was then the The Wyatt Co. in 1999, it was a privately-held company with a market value of about $120 million. Today, after a few acquisitions and a merger with consulting firm Towers Perrin in 2010, it's a publicly-traded consulting powerhouse with a market capitalization of about $8.1 billion.

CEO CLOSEUP: Jay Stein's personal Stein Mart touch

While Extend Health was in the middle of going public last year, Towers Watson acquired it, creating Towers Watson Exchange Solutions, which is poised to soar with its focus on private insurance exchanges. These exchanges allow big companies to largely get out of the business of insuring their employees by giving them money to buy insurance on their own exchanges, which are similar but entirely separate from the new federal and state insurance exchanges required under the Affordable Care Act.

"I'd have to say he's highly competitive," says O'Boyle. "He doesn't do anything halfway."

The company's stock has risen 113% to $114.17 over the past 12 months. Earnings were up 23% to $319 million for the fiscal year ended in June.

It's all business as usual for a man who got into insurance as a lark while trying to raise money to ride his motorcycle to New Orleans after college. The plan was to be a math professor, but he wound up at Prudential insurance, where he spent a few years as a life and health insurance actuary, before joining the company he'd stay at for the next 36 years ... and counting. Those who know him well say he has a gift for motivating people using personality in a field known for anything but.

"He's an atypical actuary," says Michael O'Boyle! , a longtime colleague of Haley's who is now the company treasurer. "He's brilliant and highly numerate, but is just as comfortable talking about the World Series as he is an actuarial formula."

CEO CLOSEUP: What almost getting fired taught Redfin CEO Glenn Kelman

While sports -- from college hockey to Major League Baseball -- may be a personal passion, employee benefits and retention are what have propelled him professionally. And in the years since he's gone from actuary to the corner office, benefits are something that's become far more important to employees when they're job hunting, even as many employers chip away at them.

"There's an interesting thing that happened with the global financial crisis -- there was a shift of employees to be more concerned with their security" than with their actual salary, Haley says. "As we think about attraction and retention, benefits play more of a role."

And affordable health care is not only topping news feeds these days, it's also at the top of many people's benefits wish lists. So it stands to reason that Towers Watson's health care consulting business is the company's growth engine. Benefits — including pensions and health care — makes up about 55% of Towers Watson's consulting work. The company also works for pension plans and insurance companies on risk and actuarial calculations and with companies of all types on talent recruitment and retention.

"If you're an employer who wants to be an employer of choice, it's important that you know how your benefits packages stack up according to what other organizations are doing," says Nevin Adams, education director at the Employee Benefit Research Institute. "Somebody who can tell you what's going on...and tip you off to some things that have not taken hold in your industry holds a lot of value to an employer."

Haley, who says he's not a "micromanager by any means," likes to "tell people where we want to head and how we want to get there." He travels the globe talking to th! e company! 's now-14,000 employees telling them what's going on in the market and what the company's values are.

When the company's consultants are brought in to work on a client's benefits, Towers Watson helps set the prices that employers will charge for different options and handle the enrollment and other administrative details. While some employers have to cut back benefits based on "what their financial realities are," the company helps them make the tough choices, he says. But that's a painful choice.

"We actually love benefits," says Haley. 'That's what we're helping employers deliver."

CEO CLOSEUP: Sabre's Sam Gilliland personalizes travel

Haley says he expects close to 10% of the employees in the U.S. with health coverage will be covered by a private exchange in the next five years. Companies including Walgreen's, Sears and IBM -- a Towers Watson client -- have recently announced plans to move employees to private exchanges.

"It's the single most exciting opportunity that I've seen in my lifetime," says Haley. "It's going to fundamentally change the way health care is delivered in the United States."

As he watches the glitch-ridden roll out of the state and federal insurance exchanges, Haley says he's determined to make employees' experiences with private exchanges "absolutely excellent."

That's Dad for you, Erin Haley says. While she was spending a semester abroad in Australia in 2006, her father proposed they each train to compete in a triathlon that summer and keep each other apprised of their progress. It was, she says, a way for the two novice runners to keep in touch and motivate each other.

"He's super goal oriented," says Erin Haley. "Make a plan and execute against it. That's pretty much his style."

When she was planning her 2011 wedding, her father didn't just want to take dance lessons, he wanted to make plans about "what we were going to do" while dancing to Daddy's Little Girl.

"And everything worked according to plan," says Erin H! aley.

Is Lennar A Buy Here?

With shares of Lennar (NYSE:LEN) trading around $35, is the stock an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze it with the relevant sections of our Cheat Sheet investing framework:

T = Trends for a Stock’s Movement

Lennar is a home builder and a provider of financial services as well as an investor and manager of funds that invest in real estate assets. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land directly and through unconsolidated entities in which it has investments. Lennar operates in several segments: homebuilding east, homebuilding central, homebuilding west, homebuilding Southeast Florida, homebuilding Houston, financial services, and Rialto. The homebuilder industry has seen rising demand in the past couple of years that has driven profits much higher for these companies. Look for a homebuilder recovery to continue, and companies such as Lennar to increase profits.

T = Technicals on the Stock Chart are Mixed

Lennar stock has seen an explosive move toward higher prices in recent years. The stock is now pulling back and digesting gains experienced during its latest run, so it may need some time. Analyzing the price trend and its strength can be done using key simple moving averages: 50-day (pink), 100-day (blue), and 200-day (yellow). As seen in the daily price chart below (source: Thinkorswim), Lennar is trading below its rising key averages, which signals neutral to bullish price action in the near-term.

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Lennar Options	43.69%	70%	68%

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

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

As of Wednesday, 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 significant amount of call and put option contracts, and are leaning neutral to bullish over the next two months.

E = Earnings Are Improving Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. The last four quarterly earnings announcement reactions also help gauge investor sentiment on Lennar’s stock. What do the these quarterly earnings and year-over-year revenue growth figures for Lennar 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)	-70.39%	225.00%	259.30%	263.60%
Revenue Growth (Y-O-Y)	53.31%	36.57%	41.70%	34.09%
Earnings Reaction	0.68%	4.78%	-0.82%	-1.46%

Lennar has seen improving earnings and rising revenue figures during the past four quarters. From these numbers, the markets have been pleased with Lennar’s recent earnings announcements.

P = Poor Relative Performance Versus Peers and Sector

How has Lennar stock done relative to its peers – KB Home (NYSE:KBH), DR Horton (NYSE:DHI), PulteGroup (NYSE:PHM) — and sector?

	Lennar	KB Home	DR Horton	PulteGroup	Sector
Year-to-Date Return	-7.63%	24.05%	4.15%	4.30%	9.29%

Lennar has been a relatively poor performer, year-to-date.

Conclusion

Lennar is a homebuilder that is experiencing consistent growth after the 2008 housing bubble burst. The stock has been on a powerful run higher but is now pulling back and digesting gains from its recent move. In the past four quarters, investors have been pleased; earnings have been improving and revenue figures have been rising. Relative to its peers and sector, Lennar has been a poor year-to-date performer. WAIT AND SEE what Lennar does this coming quarter.

Best Medical Companies To Own In Right Now

When looking for the best dividend stocks, it's usually best to not chase the highest dividend. Looking for quality dividend stocks with decent yields is usually a better recipe for large overall returns. Capital appreciation combined with a dividend can produce outsized returns.

Here are my top two picks for big pharma dividend stocks.

An oldie, but goodie
Technically,�Johnson & Johnson (NYSE: JNJ  ) isn't a pure pharma since it also sells medical devices and consumer health products, but it's that diversity that makes it such a stable dividend stock.

The company has a history of raising its dividend for more than half a decade. In April, Johnson & Johnson announced an 8.2% increase of its dividend, the 51st�consecutive increase.

AbbVie (NYSE: ABT  ) is the only pure pharma in the Dividend Aristocrats club, which requires 25 consecutive years of dividend increases. The six-month-old company is in the index because it spun out of Abbott Labs (NYSE: ABT  ) , which was in the index before the split. Even Abbott technically cut its dividend because it lost a substantial amount of its cash flow from AbbVie's drug. Still, I think the S&P let them stay in the index�simply because there are so few health care companies in the Dividend Aristocrats.

Best Medical Companies To Own In Right Now: Amarantus Bioscience Holdings Inc (AMBS)

Amarantus BioScience Holdings, Inc., formerly Amarantus BioSciences, Inc., incorporated on March 22, 2013, is focuses on developing intellectual property and proprietary technology in order to develop drug candidates and diagnostic blood tests to diagnose and treat human diseases. The Company owns the intellectual property rights to a therapeutic protein known as Mesencephalic-Astrocyte-derived Neurotrophic Factor (MANF), owns the intellectual property rights to biomarkers related to oncology and neurodegeneration named BC-SeraPro and NuroPro respectively, has a license to an Alzheimer�� disease blood test named LymPro, and owns a number of proprietary cell lines called PhenoGuard. MANF was the first therapeutic protein discovered from a PhenoGuard Cell Line. In December 2012, the Company acquired neurodegenerative diagnostic portfolio from Power3 Medical Products. On March 22, 2013, the Company was merged with into Amarantus Bioscience Inc.

The Company also owns an inventory of 88 cell lines that Amarantus refers to as PhenoGuard Cell Lines. MANF is a protein that corrects protein misfolding. The Company�� MANF product development effort is centered on a therapy for Parkinson�� disease.

Advisors' Opinion:

• [By Bryan Murphy]

  Two weeks ago I penned some bullish thoughts on Amarantus BioScience, Inc. (OTC:AMBS). In simplest terms, I liked the way the stock had spent some time in consolidation mode, and looked like was testing the upper boundary of that zone - I figured a breakout from AMBS was imminent. So I waited... and waited.... and waited. Nothing. A week and a half later, I let the stock fall off my mental radar. As it turns out, I should have been a little more patient. Amarantus BioScience finally did the deed yesterday, and is following through today.

• [By Bryan Murphy]

  I've taken bullish swings on - and been wrong to do so - Amarantus BioScience, Inc. (OTC:AMBS) before. My most recent bullish call on the budding biotech name was in April... a rally that fizzled shortly after I said it was just getting started. Somehow though, I find myself coming back to AMBS as a breakout candidate. This time, however, it's for a slightly different reason.

Best Medical Companies To Own In Right Now: RXi Pharmaceuticals Corp (RXII)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidiary Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Hot Warren Buffett Companies For 2014: EntreMed Inc (ENMD)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. ENMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Best Medical Companies To Own In Right Now: Bio-Reference Laboratories Inc.(BRLI)

Bio-Reference Laboratories, Inc. provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases primarily in the greater New York metropolitan area. It offers various chemical diagnostic tests, including blood and urine analysis, blood chemistry, hematology services, serology, radio-immuno analysis, toxicology, pap smears, tissue pathology, and other tissue analysis. The company also operates a clinical knowledge management service unit, which uses customer data from laboratory results, pharmaceutical data, claims data, and other data sources to provide administrative and clinical decision support systems. In addition, it operates a Web-based connectivity portal solution for laboratories and physicians to provide laboratory ordering and results to physician customers. The company provides its services directly to physicians, geneticists, hospitals, clinics, and correctional and other health facilities. Bio-Refe rence Laboratories, Inc. was founded in 1981 and is headquartered in Elmwood Park, New Jersey.

Advisors' Opinion:

• [By Geoff Gannon]

  But if you can definitely hold a company through a tough market that lasts a few years ��then you can look for a wonderful business to buy and hold at any time. In any market. I found some lovely businesses around the time of the 2000 market peak. They just weren�� big caps, dot coms, etc. They were smaller more mundane businesses. In at least one case ��Bio-Reference Labs (BRLI) ��I made some money (it seemed like a scary big amount at the time) holding the stock for about 2 years but I would��e made a whole lot more if I had just held that one stock through till today. And even now BRLI seems a fine stock to keep holding. So, you see I could��e saved myself a lot of trouble by holding something for more than 10 years. And it wouldn�� have hurt my performance at all. In fact, BRLI has beaten the market by a lot for a very long time. And, yes, the price I paid for BRLI happens to be the most I ever paid for a stock relative to its record earnings. So, I paid a very high price ��for a value investor like me ��for a stock that promptly went on to return around 20% a year for the next 10 years and is now back at almost the exact same P/E ratio where I first bought it.

• [By GuruFocus]

  An example here is Bio Reference Lab (BRLI). This is a company with a simple business, strong balance sheet and the Predictability Rank of 5-Star. At the price of $19, BRLI was in the top of the Buffett-Munger Screener. But the stock price quickly dropped to below $12 in November 2011. At that point, the company announced a share buyback. The CEO, CFO and COO also bought shares in December at $14 a share. Since then the stock price has doubled.

• [By Geoff Gannon] strong>DreamWorks (DWA)

  Read these reports. Look for something that might have interested me. Why would Geoff look at DNB, Chuck E. Cheese, etc.? What got him interested in the stock? Do I see the same thing?

  Whenever possible, also read the quarterly earnings call transcripts. You can listen to them too. But it�� easier if you read them and listen to them.

  Just listening is a bad idea.

  Whenever I can get a transcript of anything ��even Warren Buffett�� appearance on CNBC ��I��l keep a copy of the transcript even when I have a copy of the video (or audio). You can refer back to a transcript easily. You can highlight. You can take notes.

  Taking Notes

  Now, you are doing those things when reading an annual report, right?

  You never just sit down and read an annual report. You always sit down with a pen, a highlighter, a pad of paper, and a calculator. Use the margins of a 10-K ��or your pad of paper ��to jot down notes. Ask questions. Do calculations.

  If you ever see a 10-K after I��e read it ��it�� not very white anymore. There�� lots of stuff written in the margins. Mostly it�� questions I was asking myself. But it�� also calculations of numbers the company does not provide.

  Numbers to Know

  So, for example, in a bank�� 10-K I always write down:

  路 Deposits per share

  路 Deposits per branch

  路 Cost of deposits

  路 Texas Ratio

  You can actually look up the Texas Ratio of any bank here. And some banks calculate and report cost of deposits the way I like to think about it. But, it�� not common for banks to report deposits per branch ��although small banks will sometimes mention (perhaps in the shareholder letter) what their biggest branch has in deposits. Others may mention how quickly new branches achieved a deposit milestone.

  Those are the kinds of numbers I write in the margins of a bank�� 10-K. There will be questions like: ��hy is e

Best Medical Companies To Own In Right Now: Curis Inc.(CRIS)

Curis, Inc., a drug discovery and development company, focuses on the research and development of cancer therapeutics. The company, under collaboration with Genentech, Inc., is conducting a pivotal Phase II clinical trial on its lead molecule, GDC-0449 in advanced basal cell carcinoma patients, as well as various Phase II clinical trials in first-line metastatic colorectal cancer and advanced ovarian cancer patients. It is also evaluating CUDC-101, a small molecule that is in a Phase I clinical testing and is designed to target histone deacetylase, epidermal growth factor receptor, and epidermal growth factor receptor 2. In addition, Curis has a development candidate, Debio 0932, which is a Heat Shock Protein 90 or Hsp90 inhibitor. The company holds a license agreement with Debiopharm related to its Hsp90 technologies. Further, it involves in preclinical testing for the development of candidates from its targeted cancer programs. The company was founded in 2000 and is base d in Lexington, Massachusetts.

Best Medical Companies To Own In Right Now: Prima BioMed Ltd (PBMD)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates. Advisors' Opinion:

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) shares dipped 38.59% to touch a new 52-week low of $1.44 after the company reported top-line analysis of CVac Phase 2 trial.

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) dropped 38.17% to $1.45 after the company reported top-line analysis of CVac Phase 2 trial.

  Tower Group International (NASDAQ: TWGP) plummeted 24.31% to $10.49. Tower Group announced its plans to release its Q2 results during the week of October 7, 2013. FBR Capital downgraded the stock from Outperform to Market Perform.

Best Medical Companies To Own In Right Now: Galena Biopharma Inc (GALE)

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 Prevention 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: ovarian and endometrial adenocarcinomas. Folate binding protein has ! 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 targets! connecti! ve 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.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the move: Galena Biopharma Inc. (NASDAQ: GALE) is down 15.4% at $1.93 after pricing a secondary offering of 17.5 million units at $2.00. Safeway Inc. (NYSE: SWY) is up 6.1% at $28.21, after an analyst�� upgrade which sent shares to a new 52-week high of $28.88 earlier. Avanir Pharmaceuticals Inc. (NASDAQ: AVNR) is down 18.2% at $4.08.

• [By Sean Williams]

  The waiting game
  The tables are clearly stacked against small biotech companies developing cancer drugs. History has shown that few (if any) have successfully had the Food and Drug Administration approve a late-stage cancer drug. While mid-stage trials of Galena Biopharma's (NASDAQ: GALE  ) HER2-targeting breast cancer vaccine have been promising thus far, the chances of an approval seem a long way off.

Best Medical Companies To Own In Right Now: Hemispherx Biopharma Inc (HEB)

Hemispherx Biopharma, Inc. (Hemispherx) is a specialty pharmaceutical company engaged in the clinical development of new drugs therapies based on natural immune system enhancing technologies for the treatment of viral and immune based chronic disorders. Hemispherx focuses on two core pharmaceutical technology platforms Ampligen and Alferon N Injection.The commercial focus for Ampligen includes application as a treatment for Chronic Fatigue Syndrome (CFS) and as an influenza vaccine enhancer (adjuvant) for both therapeutic and preventative vaccine development. Alferon N Injection is a United States Food and Drug Administration (FDA) approved product with an indication for refractory or recurring genital warts. Alferon LDO (Low Dose Oral) is a formulation under development targeting influenza. It has three subsidiaries BioPro Corp., BioAegean Corp., and Core BioTech Corp. The Company's foreign subsidiary is Hemispherx Biopharma Europe N.V./S.A.

Ampligen

Ampligen is an experimental drug, which is undergoing clinical development for the treatment of Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS). Over 1,000 patients have participated in the Ampligen clinical trials representing the administration of more than 90,000 doses of this drug. The Company is also engaged in ongoing, experimental studies assessing the efficacy of Ampligen against influenza viruses.

Alferon N Injection

Alferon N Injection is the registered trademark for the Company's injectable formulation of natural alpha interferon. Interferons are a group of proteins produced and secreted by cells to combat diseases. The Company's natural alpha interferon is produced from human white blood cells. Alferon N Injection [Interferon alfa-n3 (human leukocyte derived)] is a highly purified, natural-source, glycosylated, multi-species alpha interferon product.

Alferon LDO (Low Dose Oral)

Alferon LDO [Low Dose Oral Interferon Alfa-n3 (Human Leukocyte Derived)]! is an experimental low-dose, oral liquid formulation of Natural Alpha Interferon and like Alferon N Injection should not cause antibody formation, which is a problem with recombinant interferon. It is an experimental immunotherapeutic that works by stimulating an immune cascade response in the cells of the mouth and throat, enabling it to bolster systemic immune response through the entire body by absorption through the oral mucosa.

The Company competes with Pfizer, GlaxoSmithKline, Merck, AstraZeneca, Baxter International, Fletcher/CSI, AVANT Immunotherapeutics, AVI BioPharma and Genta.

Top 5 Warren Buffett Stocks To Own Right Now

No one makes the right decisions every time or even every year. Not even the best of the fund managers like Bill Miller, the brilliant manager of Legg Mason Value Trust, who outperformed  the S&P for 15 straight years, but lagged well behind last year. Even Warren Buffett, probably the smartest investor of our time, could have pocketed billions by selling Coca-Cola when it was in the 80s and instead rode it down to the 40s.

After  35 years of making good and bad decisions, setting goals and then abandoning them, buying good-quality stocks but also chasing performance, almost giving up after two  grinding bear markets at the end of the road I��e realized  that the  best investment advise will at best be boring .

Lesson 1: Diversify. Buying just a few shares of four stocks cost more in commissions than had I put all my money in one stock. But had I bought just one, it might well have been the wrong one. As it turned out, five years later, one of those stocks had gained just 9% while another one had nearly doubled.

Top 5 Warren Buffett Stocks To Own Right Now: Star Pharmaceutical Limited (X64.SI)

STAR Pharmaceutical Limited engages in the manufacture and sale of western and traditional Chinese medicine-formulated prescription drugs. The company primarily offers antibiotics, cerebrovascular drugs, cardiovascular drugs, and other specialized drugs in various dosages and administration forms ranging from powder injections, lyophilized powder injections, and liquid injections to tablets, capsules, and granules. It sells its products through a network of approximately 398 distributors to hospitals, clinics, and pharmacies in the People�s Republic of China. The company was founded in 1993 and is based in Haikou City, the People�s Republic of China. STAR Pharmaceutical Limited is a subsidiary of DB NOMINEES (S) PTE LTD.

Top 5 Warren Buffett Stocks To Own Right Now: Serenic Corporation (SER.V)

Serenic Corporation, through its subsidiaries, develops, markets, and supports integrated financial management and human capital management solutions for non-profit organizations and government agencies in North America and internationally. Its solution suite includes Serenic Navigator, a core financial accounting for nonprofits; Serenic Navigator Online, a software as a service accounting; Serenic AwardVision for grant management; Serenic BudgetVision for budget management; Serenic CommunityCare for consumer services and workshops; Serenic DonorVision, a fundraising and donor management solution; Serenic MinistryView, a mission and outreach program management solution; Serenic HCM, a human capital management, payroll, and human resource management software solution; and Serenic Portals, a Web-based data access. The company also develops human resources and payroll products for Microsoft Dynamics NAV users; and markets and sells these products directly to the Microsoft Dyn amics NAV dealer network in North America. Serenic Corporation is based in Edmonton, Canada.

Top Companies To Buy For 2014: Alterra Capital Holdings Ltd(ALTE)

Alterra Capital Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products to corporations, public entities, and property and casualty insurers in North America, Europe, and internationally. It offers professional liability products, which include errors and omissions insurance, employment practices liability insurance, and directors and officers insurance; excess liability products, such as excess umbrella liability insurance, excess product liability insurance, excess medical malpractice insurance, and excess product recall insurance; and property insurance, as well as provides airline, general aviation, and aerospace insurance. The company also offers reinsurance products consisting of agriculture, auto, aviation, credit/surety, general casualty, marine and energy, medical malpractice, professional liability, property, whole account, and workers? compensation reinsurance. In addition, it offers general liability, inland mari ne, and ocean marine insurance; accident and health insurance and reinsurance, financial institutions insurance, and surety reinsurance; and employers? and public liability insurance, and medical malpractice insurance, as well as life and annuity reinsurance. The company was formerly known as Max Capital Group Ltd. and changed its name to Alterra Capital Holdings Limited in May 2010. Alterra Capital Holdings Limited was founded in 1999 and is headquartered in Hamilton, Bermuda.

Advisors' Opinion:

• [By Steve Symington]

  About that whale...
  If that weren't enough, Markel also announced this morning it has officially completed its $3 billion acquisition of Alterra (NASDAQ: ALTE  ) , which, as I noted back in February, was a radical departure from Markel's typically smaller buyout targets. While it will undoubtedly take some time to fully integrate Alterra's operations, management expressed excitement for Alterra's ability to help Markel expand its global footprint in the insurance and reinsurance market.

Top 5 Warren Buffett Stocks To Own Right Now: Latin American Minerals Inc.(LAT.V)

Latin American Minerals Inc engages in the discovery, acquisition, and development mineral properties in Latin America. The company?s properties include the Paso Yobai gold property covering approximately 15,615 hectares; the Itapoty diamond property covering approximately covering 5,000 hectares; and the Chiriguelo Niobium/Rare Earth Project covering approximately 25,500 hectares located in Paraguay. It also holds interest in the Tendal lead-zinc-copper-silver project covering an aggregate of approximately 36,500 hectares located in Argentina. Latin American Minerals Inc was incorporated in 2003 and is based in Toronto, Canada.

Top 5 Warren Buffett Stocks To Own Right Now: Nike Inc.(NKE)

NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessory products for men, women, and children worldwide. The company offers products in the categories of running, training, basketball, soccer, sport-inspired casual shoes, and kids? shoes. It also markets footwear designed for baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreational uses. In addition, Nike sells sports apparel and accessories, sports-inspired lifestyle apparel, athletic bags, and accessory items; and markets apparel with licensed college, professional team, and league logos. Further, the company sells performance equipment, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and other equipment designed for sports activities under the brand na me of NIKE; and various plastic products to other manufacturers. It offers products under the trademarks of Cole Haan, Converse, Chuck Taylor, All Star, One Star, Star Chevron, Jack Purcell, Hurley, and Umbro. The company sells its products through retail accounts, its own retail stores and Internet sales, independent distributors, and licensees. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  Nike provides athletes and beginners alike with athletic and fitness footwear, apparel, and related products. The company recently reported earnings that has sat well with investors. The stock is currently consolidating near all-time high prices and looks poised to head higher. Over the last four quarters, investors in the company have been upbeat as earnings have been improving while revenue figures have been rising. Relative to its very strong peers and sector, Nike has been an average year-to-date performer. Look for Nike to OUTPERFORM.

Facebook Launches Hashtags

Following rumors last month, Facebook (NASDAQ: FB  ) announced today that it is adopting hashtags.

Facebook says the move is an effort to promote more public conversations on the social network, after hashtags have become increasingly popular on Twitter. The symbol will be used to facilitate larger discussions, following in the footsteps of other social media sites like Twitter, Pinterest, and Facebook's own Instagram.

The adoption is effective today, and users will now be able to search for specific hashtags within Facebook to see what others are saying, as well as click on hashtags that originate on other services like Instagram. Users will also be able to compose posts directly within the hashtag feed as well as within search results. Facebook says it will be rolling out more features including trending hashtags.

Top 10 High Tech Stocks To Watch For 2014

Facebook notes that users will be able to control the audience of posts via privacy controls, including posts that incorporate hashtags. Hashtags have become an important aspect of real-time marketing.

link

Google is winning online ad war by going mobile

SAN FRANCISCO – Google is losing the battle against falling ad prices, but still winning the online advertising war.

In its earnings report Thursday, the company revealed the decline of a key pricing metric has once again accelerated, as its cost-per-click fell 8% from a year earlier.

The reason is a surge in mobile ads, which cost less per unit and have lower click rates than those served onto desktop computers.

Google CEO Larry Page said almost 40% of the traffic on the company's YouTube video site now comes from mobile device users, up from just 6% two years ago.

Yet the search giant more than made up for lower prices with higher volume, as its number of paid clicks climbed 26% year-over-year. That was higher than the 21% jump reported by rival Yahoo earlier this week.

The net result was a 19% jump in quarterly revenue (or 12% including its lagging Motorola handset unit) and a 36% surge in net income.

Google's ad numbers suggest that changes the company has made to how it sells advertising have merely slowed -- not stopped -- the downward pricing pressure caused by a surge in mobile ad traffic.

Close Google watchers will remember that the impact of mobile ads on Google's business first revealed itself 15 months ago, during its quarterly earnings report in July 2012.

That's when the company reported its cost-per-click dropped 16% from a year earlier, alarming Wall Street and prompting a short-term drop in its stock price.

In response, Google made changes to how it deals with professional online ad buyers, essentially stripping them of the ability to target ads at either desktop, tablet or smartphone users.

Instead, the company's technology now determines where and when to place text and video ads onto those different platforms, based on where Google thinks is best.

John Shinal, technology columnist for USA TODAY.(Photo: USA TODAY)

Thanks to the new method, which Google has dubbed "enhanced campaigns," the company earlier this year had slowed the annual rate of decline in its cost-per-click to 4%.

Yet the decline has accelerated during the last two quarters, and for the period ended in September prices were falling at twice that rate.

The reason is mobile.

Google's algorithms can't change the fact that most mobile device users think cheap-looking text ads that pop up on smartphones or tablets are more annoying than enticing.

Annoying ads aren't clicked on as frequently as relevant ones, which is one reason mobile ads are so cheap per unit.

The click-through rate for ads served on Android-powered tablets fell to 2.3% in the third quarter, from 3.2% a year earlier, according to a report released this week my market researcher The Search Agency.

For smartphone users, the rate dropped to 3.1% from 3.9%.

Sheer volume is another reason for the decline. The number of these ads is exploding as more consumers make the switch from desktop computers to mobile devices.

That same report from The Search Agency showed that one-third of the clicks on Google search ads in the U.S. now come from mobile users.

No wonder mobile ad revenue skyrocketed 145% during the first half of this year to $3 billion, compared to the same period in 2012, according to the latest report from the Interactive Advertising Bureau, a trade group.

That's eight times faster growth than the overall online ad market.

Those findings were echoed in the data from The Search Agency, which found that click volume on tablets in the U.S. surged 63% during the third quarter and tablet advertising spending, 68%.

The surge came even though the cost-per-click for all ads displayed on tablets in the U.S. fell 10.4% in the third quarter, compar! ed to a y! ear earlier, as the report said.

Clearly, there's money to be made in mobile ads, and Google – no surprise – is capturing a large chunk of it, even as the average unit price of its search ads continues to fall.

China not impressed by U.S. debt deal

The Congressional vote to avoid a debt default did not win positive reviews from China.

NEW YORK (CNNMoney) America's largest overseas creditor wasn't exactly blown away by the deal Congress struck to avoid a potential default.

"[P]oliticians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system," government-run Chinese news agency Xinhau Thursday.

Wednesday's vote, the commentary said, "was no more than prolonging the fuse of the U.S. debt bomb one inch longer."

And a Chinese credit rating agency Dagong downgraded the United States, saying the deal did little to change the outlook for the country's financial condition.

5 Best Growth Stocks To Buy Right Now

It lowered its view of the U.S. debt rating from A to A- and kept it on negative credit outlook, which means further downgrades are possible.

"The government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future," the firm wrote in a note.

The firm's ratings are not widely followed outside of China, which owned $1.3 trillion in Treasuries as of July. That's almost a quarter of debt held overseas.

  4 reasons the deal is not so great

The criticism of the U.S. debt and political crisis by China has been building for some time.

A week ago Chinese Vice Finance Minister Zhu Guangyao said that a solution had to be found quickly to "ensure the safety of Chinese investments" and provide stability for economies around the globe.

And another commentary from Xinhau earlier this week said the "pernicious impasse" in Washington warrants a move to a "de-Americanized world."

Budget Battles Boost Generics

We’re now into day 15 of the US government shutdown, as House Republicans stubbornly try to defund Obamacare. No matter what sort of deal is eventually struck, health care costs aren’t likely to come down any time soon. And that’s good news for generic drug makers.

Dr. Reddy’s Laboratories (NYSE: RDY) is one of the biggest players in generic drugs, offering more than 200 off-brand medications in the areas of cardiovascular disease, pain management and oncology, among others. In fact, this India-based company has become one of the largest makers of generics in the world, helping to drive more than 20 percent annual compounded earnings growth at the company over the past decade.

Drug spending is a major cost center for the government, with more than $325 billion worth of pharmaceuticals purchased last year. Less expensive but just as effective generic medications accounted for nearly 84 percent of those prescriptions, as physicians try to treat lifestyle-related diseases without breaking the bank.

In the emerging markets, health care spending is experiencing a similar explosion, as incomes have grown and standards of living improve. It is estimated that there are now at least 350 million people suffering from diabetes around the world, as obesity becomes a growing concern in virtually every region.

According to data from the International Diabetes Foundation, India and China are running neck and neck for the most sufferers of diabetes. They’re followed by the US, which falls into third place with an estimated 30 million diabetes patients alone, to say nothing of other lifestyle related illnesses such as heart disease.

As life expectancies continue to lengthen both in the US and abroad, other age-related ailments such as dementia will also become a growing concern.

That’s why pharmaceuticals account for the lion’s share of growing health c! are spending, with drug sales expected to reach USD550 billion annually by 2020. The only way both national governments and patients can cope with those rising costs is to continue relying on less expensive but just as effective generic drugs.

Generic drugs are typically equivalent to a branded original in terms of efficacy, but often cost less than a third than the original. As a result, emerging market consumers who typically pay for medications out of their own pockets are increasingly opting for generic drugs while in the US, insurance companies are steering consumers in that direction.

While Dr. Reddy’s products are becoming increasingly popular in the US, where it offers generic versions of drugs such as Plavix and Lipitor, the bulk of its sales are in emerging markets.

The company benefits from the fact that, thanks to its home location of India, it can manufacture its products at an extremely low cost. Its gross margin typically runs in excess of 50 percent, as drug utilization rates continue to increase even as overall spending may be in decline.

The company also invests heavily in research and development, spending between 6 percent and 7 percent of its annual revenues on developing generic versions of popular drugs while also coming up with novel products of its own. It is increasingly working in areas where there is little existing competition to introduce new drugs, an advantage that will drive the company’s long-term profitability.

The company is now pushing its geographic reach, working to grow its presence in fast growing markets such as China by expanding its sales force and working with local regulators to help smooth the approval process.

With the recent budget battle in the US reflecting growing concerns over rising health care costs, companies such as Dr. Reddy’s will continue to grow earnings at an above-average pace. That’s a major reason why Dr. Reddy’s, which has more than doubled its earnings over the past ! three yea! rs, has outperformed major indexes over the past the year, even as consumer staple and health care stocks have increasingly become laggards in the market.

The New Dynamics Of Gold Demand

In this article, I examine the dynamics in the non-monetary demand from Asia and the monetary demand from central banks holdings as they have played a significant role in the gold bull market since 2000.

Monetary demand from Central Banks

Exhibit 1: Central bank holdings of ounces of gold (Millions)

(click to enlarge)

Source: World Gold Council

As seen in Exhibit 1, the world's central banks have been net sellers in the late 1990s, depressing gold prices (GLD). Then, they have become net buyers from 2008, supporting gold and dragging gold miners (GDX) with them. But more recently, demand from central banks has been moderated in 2013. According to the latest World Gold Council Gold Demand Trends report, which covers the period April-June 2013, even though central banks have now been net purchasers of gold for 10 consecutive years, net central bank purchases totaled 71 tonnes, 57% down on what was a record-breaking quarter a year ago. Consequently, the slowing pace of demand from central banks could continue mainly because increasing volatility in gold prices, weakness in emerging market currencies and declining rate of growth in FX reserves among some banks.

Top 5 Financial Stocks To Own Right Now

Non-Monetary demand from Asia

As India and China are the largest buyers of gold, physical demand (PHYS) out of Asia has been moderated in the recent weeks for different reasons.

In India, gold demand has been affected by a sharp decline in the rupee (making gold prices for Indian higher) and the extreme actions taken by the government to curb gold imports. As a reminder, here is the timeline of India's gold tax since 2012:

Exhibit 2: Timeline of India's gold tax

Source: Sharps Pixley

As seen below, in August, India continued to strengthen restrictions on gold imports by prohibiting imports of gold coins, medallions and Dore without license. Moreover, loans against gold jewelry and coins provided by rural banks are now forbidden. India raised its import duty on gold bars for the third time in 8 months to 10%.

More recently in September, the government further raised the import duty on gold jewelry from 10% to 15%.

As the government seems to be ready to do "whatever it takes" to curb its negative balance and to constrain the free-fall in the rupee, gold demand out of India is likely to remain subdued.

In China, even though gold demand remains robust, gross gold imports from Hong Kong have cooled since 2Q. They fell from 113.2 metric tons in July to 110.2 metric tonnes in August as investors became cautious after the rapid increase in prices. Moreover, premiums in Hong Kong for gold bars have declined from $5 an ounce in 2Q to $2 an ounce, reflecting a lack of activity. Finally, investors need to understand that China is a potential macro-risk to the global economy and even though China was able to post annual double-digit growth in the last years, growth is likely to slow for the next couple of years. As a result, gold demand could decline as GDP slows.

In sum, the buying of gold from central banks since 2008 and the strong physical demand from India and China could play a less significant role than it used to be in the previous decade.

Source: The New Dynamics Of Gold Demand

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

GM Prices Cadillac ELR Too High

GM (NYSE: GM) has priced the new Cadillac ELR electric luxury car far too high for it to sell well. The primary reason is not that it has a sticker above that of the wildly well-regarded Tesla (NASDAQ: TSLA), with which it will compete.  Cadillac does not have enough of a quality brand image to justify the ELR price.

This is Cadillac’s calculation of the ELR’s sticker:

Designed for a new generation of technology-driven luxury buyers, the 2014 ELR has a starting price of $75,995, including a $995 destination charge but excluding tax, title, license and dealer fees. Upon IRS certification of an anticipated federal tax credit, purchasers may be eligible for a tax credit from $0 to $7,500 depending on individual tax liability.  Net pricing after tax credits could be as low as $68,495, including $995 destination.

In the new J.D. Power 2013 U.S. Initial Quality Study, Cadillac ranked well down the list, behind, among others Porsche, Lexus, Infiniti, Mercedes, and Audi. The challenge of  creating a premium image for a non-premium brand makes the ability to get a high price almost impossible, at least in any volume. And, by the other  J.D. Power measurement, the 2013 U.S. Vehicle Dependability Study, does even worse, falling behind budget brands Suzuki and Mazda.

Another nationally regarded measurement of auto product quality is the American Customer Satisfaction Index. While Cadillac does slightly better than the industry average, it still falls behind Mercedes, Lexus, and even Subaru. And, the Cadillac rating fell from 2012 to 2013.

It is impossible to imagine what series of decisions Cadillac management made to price the ELR at a level which will make its success nearly as impossible. However, Cadillac executives have made poor decisions for decades, which is why it has fallen so hopelessly behind foreign competition, and, more recently, has to contest with Tesla as well

In the announcement of the ELR release, Bob Ferguson, senior vice president Global Cadillac said

"The ELR is a unique blend of dramatic design with electric vehicle technology capable of total range in excess of 300 miles. ELR is also unique in that it will be offered nationwide within a luxury customer experience, with proven benefits and care extending from the shopping process all the way through the ownership experience."

Consumers are not impressed with the Cadillac “ownership experience” now. The ELR won’t change that

Are These Clues From Ceres the Real Deal? (CERE)

Despite the fact that markets are right around breakeven levels for Wednesday, there are relatively few stocks that are up today, and even fewer that are up on strong volume. For the NYSE, 54% of its listed equities are in the red this morning, and 58% of the total volume seen so far has been bearish volume. That's what makes Ceres Inc. (NASDAQ:CERE) so interesting early Wednesday. As one of the few tickers that's not only up, but up on higher volume, CERE is a standout worth a closer look. And, that closer look reveals something even more compelling about the way things are coming together for this small cap stock.

With a market cap of just less than $40 million right now, Ceres Inc. doesn't turn a lot of heads ... at least not yet. But, this agricultural science outfit has at least caught the attention of enough of the market's right players to keep some traders on the hook. Case in point: TheStreet.com's Roberto Pedone suggested CERE was a breakout candidate a few days ago [sometimes the suggestion of a possibility is as good as a flat-out 'buy' recommendation], and then as Forbes pointed out yesterday, the average analyst's target price for Ceres is a little more than three times its current price. Between the two, the tone and mood surrounding the stock has been decidedly bullish.

There's nothing as compelling right now, however, as the shape of the stock's chart.

CERE hasn't been a particularly strong name of late. In fact, it's never been a strong stock, falling from a peak of $15.59 in early 2012 shortly after it began trading on the NASDAQ to a low of $1.10 in August of this year. It was an enormous case of bad luck, issuing stock at what ended up being the beginning of a feeble-to-begin-with biomass/feedstock agricultural buzz, though unfairly high expectations from investors may have helped contribute to the stock's demise.

As they say though, nothing lasts forever. That includes weakness. Indeed, Ceres shares look like they're about to be stronger than they've ever been before. How so? For starters, a bowl-shaped reversal that began back in late August. This is the first time since late last year CERE has made a string of higher lows and a string of higher highs at a sustainable pace. The sheer organization of the effort speaks volumes about how traders are really starting to warm up to the stock. More than that, however, it's clear that the stock is finding support at its key moving average lines while working on the budding rally. That was the missing ingredient with past rally efforts. Finally, though still a little erratic, the volume basically grows on the upswing, and the volume fades on the pullbacks. This tells us the overall environment is a net-bullish one. Today's bullish pushoff from the 50-day moving average line (purple) is something of a clincher.

It's too soon to call Ceres Inc. a long-term buy, but based on what we've seen of late, it's certainly a pretty good short-term bet.

If you'd like to get more trading ideas and insights like this one, sign up for the free SmallCap Network daily e-newsletter. It's full of stock picks, market calls, and more.

2015 Cadillac Escalade reaches higher

The once-unthinkable big Cadillac SUV has become indispensable.

Caddy unveils the 2015 Escalade in New York this evening, promising that it'll be in showrooms the first half next year. The General Motors luxury brand isn't providing price or fuel-economy information yet.

Escalade's spring launch gives GM's mechanically similar mainstream models, Chevrolet Tahoe and Suburban and GMC Yukon and Denali SUVs, a few months head start in the market. It's considered unlikely those would swipe any Escalade sales.

The styling is supposed to convey a bold, premium vehicle that's highly advanced even though its chassis is derived from GM's redesigned, 2014 full-size pickup trucks.

That body-on-frame construction -- instead of the more common, car-like unibody used by crossover SUVs -- remains common among big SUVs, though nearly is extinct among midsize and smaller models.

The interior, leathered and high-teched, is supposed to underline the first impression the outside conveys.

Cadillac says the 2015 provides more leg and head room than the predecessor. It will continue to be available in standard (think Tahoe) and long-wheelbase (think Suburban) sizes.

The brand points to the "new 6.2-liter V-8 engine that is more powerful and more efficient than previous models." It's rated 420 horsepower and 460 pounds-feet of torque, up nearly 5% in hp and 10% in torque.

Jack Nerad, executive market analyst for Kelley Blue Book, says the new Escalade "leaves no doubt that the brand is staying on its course of providing a big, bold SUV to its luxury customers with no excuses. The vehicle is more powerful than ever, yet offers better fuel economy, and it is filled with electronic driver aids that sho! uld improve its already impressive safety record."

Escalade's important for its profits and its image. Big SUVs, because they're derived from pickups, cost less to build than other models but can be sold at high prices. Escalade's also an icon for some segments of pop culture, which helps steer the Cadillac brand away from the "fogey" label.

Mercedes-Benz models own 44.4% of luxury SUV sales this year, Autodata says. The two version of Escalade, standard size and long-wheelbase version called ESV, account for 12.3% of luxury SUV sales.

That there is an Escalade at all is remarkable.

In the 1990s, as the SUV craze was accelerating, the man then running GM's North American operations, dismissed the idea of a big Caddy SUV as out of character for the brand's refined image. "There'll never be" such a machine, Ron Zarella said then.

Asked later, after the first, 1999 Escalade was a reality, why the about-face, he was candid: "Frankly, there was just too much money on the table" that GM was missing by not having a big luxury SUV.

Now, Cadillac says, Escalade is "the brand's signature SUV."

And Zarella became another example of why, as the admonition goes, one should "never say never."

Expect Caddy to emphasize:

•The segment's only front-center side airbag. It's meant to protect the driver and front passenger from slamming into one another in a side crash. It's a way to provide more protection to the person furthest from the crash impact.

•Newly standard heated and cooled front seats and heating becoming standard on second-row bucket seats.

•Newly standard Magnetic Ride Control, a fast-reacting suspension system that helps tailor the chassis response to the road conditions and driving demands.

•Cut-and-sewn and wrapped interior trim, something that's all the rage among uplevel brands. The dashboard is covered with leather or fabric, instead of presenting a plastic finish made to look classy. The cut-sewn method has visible stitchin! g where p! ieces join at edges. That's supposed to be a mark of authentic luxury. Replica, faux stitched panels already are springing up in economy cars, though, so the feature's bona fides might not last long.

•CUE becomes standard. It's the electronic command center, using an 8-inch center screen. The screen features "capacitive touch technology" and recognizes gestures. That means you can tap and swipe across it as you would a smartphone, Kindle or iPad.

It can respond even before you touch the screen, using proximity sensors to "activate common options and controls as the user's hand approaches," Cadillac says.

Part of the setup that's handy but sometimes overlooked: All types of favorites can be stored on the same pushbuttons used for radio station presets. There are dozens of buttons, displayed a few at a time. Button 1 might be XM Satellite Radio's Deep Tracks channel, while button 2 might be the navigation route to an important but infrequent destination, button 3, your boss' work phone, and so forth.

Production of the 2015 Escalade begins next spring at Arlington, Texas, in the same factory that builds Tahoe, Suburban, Yukon and Denali. It will be available with rear-wheel or four-wheel drive.

In addition to the standard, full-size model, Escalade continues offering the Suburban-size ESV. It will have a 14-in. longer wheelbase and be about 20 inches longer overall that the full-size Escalade.

The Party's Over for Cyclical Stocks

Regardless of how or when the crisis in Washington ends, MoneyShow's Howard R. Gold believes it's become the right time to ease-up on stocks in the sensitive sectors.

No matter how the government shutdown and debt-ceiling debate are resolved—and they will be—the US economy is likely to plod along.

The 2008-2009 recession ended nearly four and a half years ago, but job growth remains anemic, while personal income has stagnated.

The Federal Reserve's expansive monetary policy—buying $85 billion worth of bonds each month—hasn't helped much. So, even if Fed chair-designate Janet Yellen is confirmed, it's unlikely more of the same easy money policy will produce better results.

Read Howard's analysis of why QE3 was a sign of failure on MoneyShow.com.

Those harsh realities, along with comments by a leading CEO at a conference I attended last week, have led me to conclude that it's time to lighten up on cyclical stocks, the economically sensitive sectors that have been such stalwart performers in a bull market now well into its fifth year.

The CEO was Terry Lundgren of Macy's (M), the nation's second largest department store chain, with 850 outlets throughout the US and 90% of the company's revenues coming from those Macy's stores, which serve middle-class Americans. (High-end retailer Bloomingdale's accounts for 10% of sales.)

"What's turned against us is what's turned against retail," he told journalists attending a conference of the Society of American Business Editors & Writers (SABEW) in New York.

"The consumer wasn't spending in the second quarter. The higher income consumer has bounced back. That mid-tier consumer is under stress."

"There's just not enough job creation going on," he concluded.

Lundgren's sober assessment is reflected in Macy's stock performance: It's off 15% from its all-time high above $50, which it hit in July. That followed an astonishing bull market rally of 865% from the lows, just above $5, in the depths of the financial crisis.

Macy's isn't alone. Apparel retailers Urban Outfitters (URBN) and The Gap (GPS) both have had sharp corrections after, respectively, tripling and more than quadrupling from their lows. Teen retailers Abercrombie & Fitch (ANF), Aeropostale (ARO) and American Eagle Outfitters (AEO) have had their clocks cleaned as even teenagers—the canaries in the coal mine of discretionary spending—have tightened their purse strings.

"I see a weak consumer," said analyst Rick Snyder of Maxim Group, who downgraded Macy's stock in August to Hold from Buy. He sees softness in every metric the retail industry tracks—mall traffic, comparable store sales, what have you. "That data has all been weak," he told me.

Asked if he was anticipating a second wind for retailers, he replied, "I don't think so. I think this is going to be a fairly poor holiday season." And he added, "I don't see anything coming next year that's going to turn that around."

The only retail stocks he likes now are high-end emporia like Saks (SKS), which has agreed to a buyout from Hudson's Bay, and off-price retailer Ross Stores (ROST), whose stock has risen 700% from its lows.

NEXT: Big runs for homebuilders

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5 Best Insurance Stocks To Invest In Right Now

Life insurance provider�MetLife� (NYSE: MET  ) �yesterday�declared second-quarter dividends�on its Series A and Series B classes of its preferred shares, payable on�June 17 to stockholders of record on May 31.

For its floating rate Series A non-cumulative preferred stock, which trades on the NYSE under the symbol METPrA, MetLife will pay�a dividend of $0.2555555�per share.�For its 6.50% Series B non-cumulative preferred stock, which trades on the NYSE under the symbol METPrB, MetLife will pay�a dividend of $0.4062500�per share.

Based on the first-quarter dividend of $0.275 for each share of common stock, which was announced in April, the dividend for non-preferred shares annualizes to $1.10 per share. That yields 2.6% at MetLife's most recent closing price on May 15.

5 Best Insurance Stocks To Invest In Right Now: Fairfax Financial Holdings Ltd (FRFHF.PK)

Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited.

Advisors' Opinion:

• [By Alex Jordon]

  There's talk that Prem Watsa, head of Fairfax Financial Holdings (FRFHF.PK), could possibly be involved in a privatization bid for the company. Consider:

• [By Infinity Group]

  With 515 million shares outstanding, this equates to 33% of all shares being shorted. It should also be noted that Prem Watsa's Fairfax Financial Holdings (FRFHF.PK) is holding 51.8 million BlackBerry shares. Prem Watsa stated at the annual FairFax shareholders meeting that Fairfax is holding a long position with BlackBerry and anticipates shareholder value increasing over the next 2-3 years. The cost basis for FairFax financial holdings is approximately $17 per BlackBerry share.

5 Best Insurance Stocks To Invest In Right Now: Sun Life Financial Inc.(SLF)

Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Amanda Alix]

  Insurance companies have created an entire industry based upon risk, and except for AIG (NYSE: AIG  ) during the financial crisis, it has worked out pretty well. So, it's not a stretch to imagine a large life insurer like Canada's Sun Life Financial (NYSE: SLF  ) assuming the pension liability for the Canadian Wheat Board's defined benefit plan in a recent $147 million deal, the first such accord in Canada's history.

• [By Tim Brugger]

  Initially, the deal Sun Life Financial (NYSE: SLF  ) struck in December to sell its U.S. annuity portfolio and some life insurance products for $1.35 billion to Delaware Life Holdings, a Guggenheim Partners-owned company, was scheduled to be completed by Q2 of 2013.

Top 5 Growth Companies To Own In Right Now: ING Groep NV (ING)

ING Groep N.V. (ING), incorporated in 1991, is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In February 2011, the Company divested its real estate investment operation ING Real Estate Investment Management (ING REIM) to CB Richard Ellis Group Inc. In June 2011, the Company sold Clarion Partners. In July 2011, ING announced the completion of the sale of Clarion Real Estate Securities. During the year ended December 31, 2011, the Company divested its interests in ING Car Lease and ING IM Philippines. In February 2012, Capital One Financial Corp. acquired ING Direct business in the United States from the Company.

In June 2011, ING had completed the sale of its interest in China�� Pacific Antai Life Insurance Company Ltd. In June 2011, ING announced the completion of the sale of real estate investment manager of its United States operations, Clarion Partners, to Clarion Partners management in partnership with Lightyear Capital LLC. In October 2011, ING announced that it had completed the sale of REIM�� Asian and European operations to CBRE Group Inc. In December 2011 ING completed the sale of its Latin American pensions, life insurance and investment management operations.

Retail Netherlands

Retail Banking reaches its individual customers through Internet banking, telephone, call centers, mailings and branches. Using direct marketing methods, it is a provider of current account services an! d payments systems to provide other financial services, such as savings accounts, mortgage loans, consumer loans, credit card services, investment and insurance products. Mortgages are offered through a tied agents sale force and direct and intermediary channels. ING Bank Netherlands operates through a branch network of approximately 280 branches. It offers a range of commercial banking activities and also life and non-life insurance products. It also sells mortgages through the intermediary channel.

Retail Belgium

ING Belgium provides banking, insurance (life, non-life) and asset management products and services to meet the needs of individuals, families, companies and institutions through a network of local head offices, 773 branches and direct banking channels (automated branches, home banking services and call centers). ING Belgium also operates a second network, Record Bank, which provides a range of banking products through independent banking agents and credit products through a multitude of channels (agents, brokers, vendors).

ING Direct

ING Direct offers a range of financial products, such as savings, mortgages, retail investment products, payment accounts and consumer lending products. It operates in Canada, Spain, Australia, France, Italy, Germany, Austria and the United Kingdom. In June 2011, ING Group announced the sale of ING Direct USA to Capital One Financial Corporation.

Retail Central Europe

Retail Central Europe has a presence in Poland, and Romania and Turkey. ING in Poland is an Internet bank. During 2011, ING Bank Turkey launched the Orange account, the variable savings product. ING in Turkey also launched a mobile phone banking application. ING Bank Romania carried out its Internet banking site, Home��ank. In September 2011, a mobile version of the Home��ank Website was introduced.

Retail Asia

Retail Banking has a presence in Asian markets of India, China and Thailand. As o! f Decembe! r 31, 2011, the Company had 44% interest in ING Vysya and 30% interest in TMB Bank in Thailand. Bank of Beijing (BoB), in which ING has the largest single interest (16.07%) is a commercial bank in China. ING provides principally risk management and retail banking to BoB.

Commercial Banking

ING Commercial Banking supports the banking needs of its corporate and institutional clients to invest both retail and commercial bank customer deposits. It is a commercial bank in its home markets in the Benelux, as well as in Germany, Central and Eastern Europe. In addition to the banking services of lending, payments and cash management and treasury, it also provides solutions in other areas, including specialized and trade finance, derivatives, corporate finance, debt and equity capital markets, leasing, factoring and supply chain finance. Payments and Cash Management (PCM) and General Lending are its some of the product lines. Structured Finance (SF) is a specialist commercial lending business, providing loans to support capital intensive investments and working capital. It is managed in three groups: the Energy, Transport and Infrastructure Group; the Specialized Financing Group; and International Trade and Export Finance. Leasing and Factoring (L&F) provides financial and operating leasing services for a range of equipment, as well as receivables financing and other factoring solutions for commercial banking clients. The Financial Markets (FM) is the global business unit that manages ING�� financial markets trading and non-trading activities. FM is managed along three business lines: ALCO manages the interest rates exposures arising from the traditional banking activities, Strategic Trading Platform incorporates the primary proprietary risk taking units, and Clients and Products is the primary customer trading facilitation business line.

Real Estate

During 2011, Real Estate Finance (REF) maintained its credit portfolio. Real Estate Development (ING RED) and! Real Est! ate Investment Management (ING REIM) has a controlled wind down of activities.

Insurance Benelux

Duirng 2011, Nationale-Nederlanden introduced bank pension savings products and annuities. ING Life Belgium introduced a new Universal Life product. Nationale-Nederlanden also received a license from the Dutch Central Bank to launch a defined contribution DC company pension product PPI in Europe. NN Services introduced a processing and information technology system (business process management layer) for several legacy lines of retail Life businesses. NN Services IT manages all the closed book business of Nationale-Nederlanden. ING�� life insurance products in the Benelux consist of a range of traditional, unit-linked and variable annuity policies written for both individual and group customers. ING is also a provider of (re-insured) company pension plans in the Netherlands.

NG Benelux��non-life products, mainly in the Netherlands, include coverage for both individual and commercial/group clients for fire, motor, disability, transport and third party liability. Nationale-Nederlanden has also a central product manufacturing service for property and casualty insurance, which has developed products for ING Bank in Belgium and ING Bank in the Netherlands. ING offers a range of disability insurance products and complementary services for employers and self-employed professionals (such as dentists and general practitioners).

Insurance Central and Rest of Europe

Insurance Central and Rest of Europe has life insurance companies in Hungary, Poland, the Czech and Slovak Republics, Romania, Bulgaria, Greece, Spain and Turkey. It has pension funds in Poland, Hungary, the Czech and Slovak Republics, Bulgaria, Romania and in Turkey. ING offers a range of individual endowment, unit linked, term and whole life insurance policies designed to meet specific customer needs. It also has employee benefits products, as well as pension funds, that manage individu! al retire! ment accounts for individuals. The latter comprise both mandatory and voluntary retirement savings.

Insurance United States (Excluding US Closed Block Va)

ING Insurance US offers retirement services (primarily defined contribution plans), life insurance, fixed annuities, employee benefits, mutual funds, and broker-dealer services in the United States. ING Insurance US operates four businesses: Retirement Plans, Individual Retirement, Individual Life and Employee Benefits. ING Insurance US�� Retirement Plans business is a contribution providers, which offers a range of retirement solutions to all sizes and types of employers, including businesses for-profit ranging from start-ups to large corporations, public and private school systems, higher education institutions, state and local governments, hospitals and healthcare facilities, and not-for-profit organizations. ING Insurance US�� Retirement Plans business is a provider of defined contribution (DC) retirement plans in the United States based on assets under management and administration.

Insurance US Closed Block Va

ING US Closed Block VA consists of variable annuities issued in the United States that are primarily owned by individuals and were designed to address the demand for tax-advantaged savings, retirement planning, and wealth-protection. These annuity contracts were sold in the United States, primarily through independent third party distributors, including wirehouses and securities firms, independent planners and agents and banks.

Insurance Asia/Pacific

ING Insurance Asia/Pacific (IAP) is a provider of life insurance products and services. It is a life insurer in the region, with nine life operations in eight markets. IAP has ip operations in Japan and South Korea, operates a nt business in Malaysia, and is well in China, Hong Kong, Macau, India and Thailand. In April 2011, IAP, together with Public Bank Berhad and Public Islamic Bank Berhad, launched a joint ! venture i! n Malaysia, ING PUBLIC Takaful Ehsan Berhad, which will develop Takaful insurance products. In June 2011, IAP completed the sale of its 50% interest in Pacific-Antai Life Insurance Company Limited (PALIC).

The business units of IAP offer select types of life insurance, wealth management, and retail products and services. These include annuities, endowment, disability/morbidity insurance, unit linked/universal life, whole e, participating life, group life, accident and health, term life and employee benefits. In Hong Kong non-life insurance products (including medical, motor, fire, marine, personal accident and general liability) are also offered.

Insurance Latin America

ING completed the sale of its pensions, life insurance and investment management operations on December 29, 2011. These operations were in Chile, Colombia, Mexico, Peru and Uruguay.

ING Investment Management

ING IM is an investment manager of ING Group with activities in Europe, the Americas, Asia-Pacific and the Middle East. In October 2011, ING IM sold ING IM Australia. ING IM provides a range of actively-managed strategies, investment vehicles and advisory services in all major asset classes and investment styles. It delivers a range of investment strategies and services to ING�� global network of businesses and third-party clients.

Advisors' Opinion:

• [By Jon C. Ogg]

  ING Groep N.V. (NYSE: ING) was raised to Overweight from Equal Weight at Morgan Stanley.

  Pandora Media Inc. (NYSE: P) was downgraded to Market Perform from Outperform at Raymond James, based on valuation after the stock went over $21 recently. Stifel Nicolaus also downgraded shares to Hold from Buy. These calls are after earnings, and the stock is down about 6% so far on Friday.

• [By Vaughan Scully, ,]

  Three of the fund's top 10 holdings��NG Groep (ING), BNP Paribas (Paris:BNP) (US:BNPQY), and Credit Suisse Group (CS)��re European financials that came into the fund beginning in early 2012, when the team began to sense the pessimism regarding the European banking sector was too extreme.

5 Best Insurance Stocks To Invest In Right Now: MGIC Investment Corp (MTG)

MGIC Investment Corporation (MGIC), incorporated June 21, 1984, is a holding company and through wholly owned subsidiaries is a private mortgage insurer in the United States. As of December 31, 2012, its principal mortgage insurance subsidiaries, Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Indemnity Corporation (MIC), were each licensed in all 50 states of the United States, the District of Columbia and Puerto Rico. During the year ending December 31, 2012, the Company wrote new insurance in each of those jurisdictions in MGIC and/or MIC. The Company capitalized MIC to write new insurance in certain jurisdictions where MGIC no longer meets, and is unable to obtain a waiver of, those jurisdictions��minimum capital requirements. Private mortgage insurance covers losses from homeowner defaults on residential mortgage loans, reducing and, in some instances, eliminating the loss to the insured institution if the homeowner defaults.

Mortgage Insurance

Primary insurance provides mortgage default protection on individual loans and covers unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure. Primary insurance is written on first mortgage loans secured by owner occupied single-family homes, which are one-to-four family homes and condominiums. Primary insurance is also written on first liens secured by non-owner occupied single-family homes, which are referred to in the home mortgage lending industry as investor loans, and on vacation or second homes. Primary coverage can be used on any type of residential mortgage loan instrument approved by the mortgage insurer.

When a borrower refinances a mortgage loan insured by the Company by paying it off in full with the proceeds of a new mortgage that is also insured by it, the insurance on that existing mortgage is cancelled, and insurance on the new mortgage is considered to be new primary insurance written. Therefore, continuation of its coverage fr! om a refinanced loan to a new loan results in both a cancellation of insurance and new insurance written. When a lender and borrower modify a loan rather than replace it with a new one, or enter into a new loan pursuant to a loan modification program, its insurance continues without being cancelled assuming that the Company consent to the modification or new loan.

The borrower�� mortgage loan instrument requires the borrower to pay the mortgage insurance premium. There are several payment plans available to the borrower, or lender, as the case may be. Under the monthly premium plan, the borrower or lender pays it a monthly premium payment to provide only one month of coverage. Under the annual premium plan, an annual premium is paid to it in advance, and it earns and recognizes the premium over the next 12 months of coverage, with annual renewal premiums paid in advance thereafter and earned over the subsequent 12 months of coverage. Under the single premium plan, the borrower or lender pays it a single payment covering a specified term exceeding twelve months.

Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan, which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. In general, the loans insured by it in Wall Street bulk transactions consisted of loans with reduced underwriting documentation; cash out! refinanc! es, which exceed the standard underwriting requirements of the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively GSEs); A- loans; subprime loans, and jumbo loans.

Other Products and Services

The Company has participated in risk sharing arrangements with the GSEs and captive mortgage reinsurance arrangements with subsidiaries of certain mortgage lenders, which reinsure a portion of the risk on loans originated or serviced by the lenders, which have MGIC primary insurance. It provides information regarding captive mortgage reinsurance arrangements to the New York Department of Insurance (known as the New York Department of Financial Services), the Minnesota Department of Commerce and the Department of Housing and Urban Development, (HUD). It performs contract underwriting services for lenders, in which it judges whether the data relating to the borrower and the loan contained in the lender�� mortgage loan application file comply with the lender�� loan underwriting guidelines. It also provides an interface to submit data to the automated underwriting systems of the GSEs, which independently judge the data. These services are provided for loans, which require private mortgage insurance, as well as for loans that do not require private mortgage insurance. It provides mortgage services for the mortgage finance industry, such as portfolio retention and secondary marketing of mortgages.

The Company competes with Federal Housing Administration, Veterans Administration, PMI Mortgage Insurance Company, Genworth Mortgage Insurance Corporation, United Guaranty Residential Insurance Company, Radian Guaranty Inc., CMG Mortgage Insurance Company, and Essent Guaranty, Inc.

Advisors' Opinion:

• [By Dan Caplinger]

  MGIC Investment (NYSE: MTG  ) will release its quarterly report next Tuesday, but investors haven't waited for that report to send the stock to two-year highs. As the housing market has improved, the mortgage-insurance company's prospects have followed suit, but the slow recovery in MGIC earnings are now vulnerable to a potential drop in premium revenue if rising interest rates hurt new mortgage activity.

• [By Sean Williams]

  What: Shares of MGIC Investment (NYSE: MTG  ) , a mortgage insurance company to lenders and government-sponsored entities, jumped as much as 15% after handily topping Wall Street's earnings estimates in the second-quarter.

• [By Dan Caplinger]

  Genworth's results are consistent with the gains that its mortgage-insurance peers have experienced. Both Radian Group (NYSE: RDN  ) and MGIC Investment (NYSE: MTG  ) have posted impressive gains that have attracted the attention of hedge-fund investors seeking to capitalize on the strengthening housing market. Yet in the long run, the question that faces the entire industry is whether lenders will even want to make mortgage loans with inadequate down payments that require mortgage insurance in the first place. Some would argue that tighter lending standards would make mortgage insurance unnecessary, while others note that lenders might choose to demand insurance beyond the current standards of roughly 20% to 25% home equity that have historically triggered the contractual need for purchase-money insurance in mortgage contracts.

5 Best Insurance Stocks To Invest In Right Now: AmTrust Financial Services Inc (AFSI)

Amtrust Financial Services, Inc., incorporated on November 7, 1990, is a holding company. The Company is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. The Company operates in four business segments: small commercial business, specialty program and personal lines reinsurance. The Company transacts business through 11 insurance company subsidiaries: Technology Insurance Company, Inc. (TIC), Rochdale Insurance Company (RIC), Wesco Insurance Company (WIC), Associated Industries Insurance Company, Inc. (AIIC), Milwaukee Casualty Insurance Company (MCIC), Security National Insurance Company (SNIC), AmTrust Insurance Company of Kansas, Inc. (AICK) and AmTrust Lloyd�� Insurance Company of Texas (ALIC). In January 2013, the Company acquired First Nonprofit Companies, Inc. In February 2013, the Company's subsidiary acquired Car Care Plan (Holdings) Limited (CCPH) from Ally Insurance Holdings, Inc.

Small Commercial Business

Small Commercial Business segment provides workers��compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores, physicians and other professional offices, and commercial package and other property and casualty insurance products to small businesses. The Company is authorized to write its Small Commercial Business products in all 50 states. The Company distributes its policies through a network of over 8,100 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Commercial package products provide a range of insurance to small businesses, including commercial property, general liability, inland marine, automobile, workers��compensation, and umbrella coverage.

The Company maintains Small Commercial Business property and casualty claims operations in several of its domestic offices and the commercial package claims operation is separated into four processing units: casualty, propert! y, cost-containment/recovery and a fast-track physical damage unit. As of December 31, 2012, its Small Commercial Business property and casualty claims were approximately 61% automobile and 13% property and inland marine with the remaining 26% involving general liability and umbrella losses.

Specialty Risk and Extended Warranty

The Company��Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods in the United States and Europe, and certain niche property, casualty and specialty liability risks in the United States and Europe, including general liability, employers��liability and professional and medical liability. specialty risk business primarily covers, such as legal expenses in the event of unsuccessful litigation; property damage for residential properties; home emergency repairs caused by incidents affecting systems, such as plumbing, wiring or central heating; latent defects that materialize on real property after building or completion; payment protection to insureds if they become unable to meet financial obligations under finance contracts; guaranteed asset protection (GAP) to cover the difference between an insurer�� settlement and the asset value in the event of a total loss, and general liability, employers��liability, public liability, negligence of advisors and liability of health care providers and medical facilities.

The Company's extended warranty business covers selected consumer and commercial goods and other risks, including personal computers; consumer electronics, such as televisions and home theater components; consumer appliances, such as refrigerators and washing machines; automobiles (excluding liability coverage); furniture, and heavy equipment. The Company also serve as a third party administrator to provide claims handling and ca! ll center! services to the consumer products and automotive industries in the United States and Canada. It underwrites the specialty risk coverage on a coverage plan-level basis, which involves substantial data collection and actuarial analysis, as well as analysis of applicable laws governing policy coverage language and exclusions.

Specialty Program

The Company�� Specialty Program segment provides workers��compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous group of small and middle market companies. The type of risk covered by this segment is similar to the type of risk in Small Commercial Business but also covers, to a small extent, certain higher risk businesses. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment primarily include industries, such as retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2012, the Company underwrote 77 programs through 44 independent wholesale and managing general agents. Workers��compensation insurance consists approximately 33% of this business during the year ended December 31, 2012.

Personal Lines Reinsurance

The Company�� Personal Lines Reinsurance Segment has a 20% participation in the Personal Lines Quota Share, by which it receive 10% of the net premiums of the personal lines business. The Personal Lines Quota Share provides that the reinsurers, severally, in accordance with their participation percentages, will receive 50% of the net premium of the GMACI Insurers and assume 50% of the related net losses.