Where Will Yum! Brands Go Next?

With shares of Yum! Brands (NYSE:YUM) trading around $70, is YUM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Yum! Brands is a quick service restaurant company based on number of system units, with approximately 37,000 units in more than 120 countries and territories. The company, through its three concepts of KFC, Pizza Hut and Taco Bell, develops, operates, franchises and licenses a worldwide system of restaurants, which prepare, package and sell a menu of priced food items. As convenience foods continue to rise in popularity worldwide, Yum! Brands is able to provide the food items highly demanded by consumers worldwide. Through its segments, Yum! Brands will continue to supply its world audience with quick and tasty items for many years.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

T = Technicals on the Stock Chart are Strong

Yum! Brands stock has seen a consistent uptrend extending back to the early 2000s. The stock has made new all-time highs just about every year and looks to be headed there this year as well. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Yum! Brands is trading above its rising key averages which signal neutral to bullish price action in the near-term.

Top 5 Dividend Stocks To Own For 2014

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Yum! Brands Options	20.26%	6%	5%

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

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

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-7.89%	-2.67%	25%	6.15%
Revenue Growth (Y-O-Y)	4.89%	1.02%	9.01%	12.5%
Earnings Reaction	7.01%	-2.9%	7.49%	0.47%

Yum! Brands has seen increasing earnings and revenue figures over most of the last four quarters. From these figures, the markets have been upbeat about Yum! Brands’s recent earnings announcements.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

P = Poor Relative Performance Versus Peers and Sector

How has Yum! Brands stock done relative to its peers, McDonald’s (NYSE:MCD), Wendy’s (NASDAQ:WEN), Jack In The Box (NASDAQ:JACK), and sector?

	Yum! Brands	McDonald’s	Wendy’s	Jack In The Box	Sector
Year-to-Date Return	1.25%	13.46%	20.34%	20.45%	11.88%

Yum! Brands has been a relative performance leader, year-to-date.

Conclusion

Yum! Brands provides essential food items to consumers in various countries around the world. The stock has made a significant run higher over the last several years but has been consolidating slightly below all-time highs for the last few months. Earnings and revenue figures have been showing a steady increase over the last several quarters which has kept investors happy. Relative to its peers and sector, Yum! Brands has trailed in year-to-date performance. WAIT AND SEE what Yum! Brands does this coming quarter.

Why Motorola Solutions Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Motorola Solutions (NYSE: MSI  ) plunged today by as much as 10% after the company reported earnings and provided lackluster guidance.

So what: Revenue in the second quarter totaled $2.1 billion, and adjusted earnings per share were $1.12. That bottom-line result was ahead of the $1.04 consensus estimate, but didn't make up for a gloomy forecast, as the enterprise business continues to be challenging.

Now what: The government sector is holding up well, but the same can't be said for the enterprise business, which saw organic sales (excluding the Psion acquisition) fall 12% last quarter. Next quarter's revenue should be flat to down 3% relative to the year-ago quarter, and adjusted earnings per share are expected to be in the range of $0.97 to $1.02. Investors were expecting the company to post $1.25 per share in adjusted profit.

Interested in more info on Motorola Solutions? Add it to your watchlist by clicking here.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Mario Gabelli’s Three Real Time Buys

As reported by GuruFocus Real Time Picks, Mario Gabelli reported three of his real time buys occurring over the past couple of weeks. The guru bought into one new company and increased his position in two others.

L.S. Starrett Company (SCX)

Last week Gabelli increased his holdings in L.S. Starrett Company where he upped his stake 31.9%. The guru purchased a total of 81,142 shares at an average price of $11.13 per share. Since then the price per share has increased about 1%.

Gabelli now holds on to 335,500 shares of L.S. Starrett, representing 4.93% of the company's shares outstanding. Gabelli is now the second largest guru shareholder to Chuck Royce.

Gabelli's historical holding history:

[ Enlarge Image ]

L.S. Starrett is engaged in the business of manufacturing over 5,000 different products for industrial, professional and consumer markets. The company's products include precision tools, electronic gages, gage blocks, optical and vision measuring equipment, custom engineered granite solutions, tape measures, levels, chalk products, etc.

L.S. Starrett's historical revenue and net income:

[ Enlarge Image ]

The analysis on L.S. Starrett reports that the company has issued $22.51 million of debt over the past three years, its revenue has been in decline over the past year and its price is at a 1-year high.

The company upped their dividend in June, bringing the company's dividend yield up to 3.50%.

[ Enlarge Image ]

L.S. Starrett has a market cap of $77.7 million. Its shares are currently trading at around $11.25 with a P/S ratio of 0.30 and a P/B ratio of 0.60. The company had an annual average earnings growth of 32.30% over the past five years.

Strattec Security (STRT)

Last week Mario Gabelli incre! ased his position in Strattec Security. The guru increased his position 4.82% by adding a total of 13,136 shares to his holdings. He bought these shares at an average price of $43.15, and since then the price per share has increased approximately 5%.

Gabelli now holds on to 285,647 shares, representing 8.58%of the company's shares outstanding.

Gabelli's historical holding history:

[ Enlarge Image ]

Strattec Security Corporation designs, develops, manufactures and markets mechanical locks, electro-mechanical locks, latches and related security/access control products for major North American and global automotive manufacturers.

Strattec Security's historical revenue and net income:

[ Enlarge Image ]

The analysis on Strattec reports that the revenue has slowed over the past year, their interest coverage is comfortable and their price is nearing a 5-year high. Also over the past three years, Strattec has issued $2.25 million of debt.

The company recently released its first quarter fiscal 2014 results which reported:

· Net sales of $79.6 million, up from $70.8 million last year.
· Net income was $3.211 million, compared to $2.67 million in the prior year.
· Diluted EPS of $0.91, up from $0.78.
· Gross profit margin was 18.2%, compared to 19.4% last year.

10 Best Canadian Stocks To Watch For 2014

Strattec Security designs locking systems for Chrysler Group, General Motors, Ford Motor, Tier 1, OEM customers and Hyundai/Kia.

Strattec also recently declared a dividend of $0.11 per share. This dividend is payable on Dec. 27 to shareholders of the record as of Dec. 13, 2013. This dividend represents a 10% increase from its previous quarterly distribution.

The Peter Lynch Chart sugge! sts that ! the company is slightly overvalued:

[ Enlarge Image ]

Strattec Security Corp has a market cap of $150.3 million. Its shares are currently trading at around $43.50 with a P/E ratio of 15.80 and a P/S ratio of 0.50.

Edgen Group (EDG)

Gabelli made his first buy into Egden last week, buying 339,154 shares. The guru bought these shares at $12 per share. He holds 0.78% of the company's shares outstanding, and his new buy makes him the only guru shareholder with a stake in Edgen Group

Edgen Group Inc is a global distributor of specialty products to energy sector, including steel pipe, valves, quenched & tempered & high yield heavy plate, and related components.

Edgen Group's historical revenue and net income:

[ Enlarge Image ]

The analysis on Edgen reports that the company's revenue has been in decline over the past three years, the price is at a 2-year high of $12 per share and the company's inventory has been consistently building up.

On Oct. 22, several major law firms announced that they would be examining claims regarding breaches of fiduciary duty by the Board of Edgen in connection with their sale of the company to Sumitomo Corporation. The firms believe that there was a potential breach of fiduciary duties in connection to the sale of their company to the Japanese-based company. The cash deal was valued at $520 million, and under the proposed transaction Edgen shareholders will get $12 per share, but many believe that the price should be set at $15 per share.

Edgen Group has a market cap of $519.8 million. Its shares are trading at around $12 with a P/E ratio of 44.20 and a P/S ratio of 0.10.

Check out more of Mario Gabelli's real time picks here.

Try a free 7-day premium membership trial to see the most updated GuruFocus Real Time Picks.
Related links:Mario Gabelli's real ! time pick! sTry a free 7-day premium membership trial to see the most updated GuruFocus Real Time Picks

Japan stocks slip on rising yen, earnings caution

LOS ANGELES (MarketWatch) -- With the yen holding on to its gains and investors cautious as earnings season kicks off, Japanese stocks slid lower Friday after closing the previous day with some late-session gains. The Nikkei Stock Average (JP:NIK) fell 0.9% to 14,358.28, with the Topix down 0.8%, as the dollar bought 97.36 yen, little changed from 24 hours earlier. The relatively strong yen weighed on some names with high global exposure, as Sharp Corp. (JP:6753) (SHCAF) lost 1%, Pioneer Corp. (JP:6773) (PNCOF) dropped 1.6%, and Bridgestone Corp. (JP:5108) (BRDCF) fell 1.2%. An outlook cut from Canon Inc. (JP:7751) (CAJ) helped send its shares down 1%, while rival Nikon Corp. (JP:7731) (NINOF) lost 1.8%, though Olympus Corp. (JP:7733) (OCPNF) gained 1%. Telecoms were weak, with Softbank Corp. (JP:9984) (SFTBF) falling 2.5%, KDDI Corp. (JP:9433) (KDDIF) down 1.7%, and NTT DoCoMo Inc. (JP:9437) (NTDMF) off 1.1% as a Nikkei business daily report said it would post a mild rise in operating profit for the previous quarter. Among the top gainers, Hitachi Construction Macheriny Co. (JP:6305) (HTCMF) rallied 3.4% on a separate Nikkei report that the company will post a first-half operating profit well above the consensus estimate, while Mitsubishi Motors Corp. (JP:7211) (MMTOF) climbed 4.2% after hiking its fiscal-year profit outlook by 40%. The market appeared to show little reaction to consumer inflation data out just ahead of the open, which printed in line with expectations.

Top Small Cap Stocks To Invest In 2014

Read the full story:
Asian shares mostly lower; techs struggle in Seoul

Coppock Curve: Caution Sign?

Top 10 Penny Stocks For 2014

With the DJIA above 15,000, it might seem that stocks have clear sailing ahead. And indeed, that might be the case. However, we suspect this isn't the time to lose sight of which deck the lifeboats are located on, advises Jim Stack in InvesTech Market Analyst.

There are some dark clouds developing over this stock market that raise caution flags in our longer-term outlook. So, rather than jumping on the DJIA 20,000 bandwagon, we present this negative evidence for the sole purpose of keeping our feet objectively planted on firm ground.

One such caution flag is The Coppock Guide or Curve, which was originally developed over 50 years ago by Edwin S. Coppock. It's been described as a barometer of the market's emotional state, methodically tracking the ebb and flow of equity markets from one extreme to another.

By calculation, the Coppock Guide is the 10-month weighted moving total of a 14-month rate of change, plus an 11-month rate of change of a market index. In simpler terms, it's really just a momentum oscillator.

Because of this, it reverses direction when the momentum or rate of change in the market reaches a peak or a trough.

The historical value of the Coppock Guide lies in signaling or confirming low risk buying opportunities that emerge once a bear market bottom is in place (black dotted lines on graph below).

And since market bottoms are usually sudden, or spiked reversals, the Coppock Guide works amazingly well—as it did immediately after the bottom in 2009.

Once the Coppock Guide drops to '0' or below, a mere 1-point upturn can usually be treated as an excellent buying opportunity. And often, the more negative the Coppock Guide is when it turns upward, the more impressive the profits ahead.

The only four false signals under this guideline were in 1938, 1941, 1947, and November, 2001.

The Coppock Guide has never been noted for timely sell signals. The reason is that market tops are usually slow, rounding formations in which momentum (and the Coppock) peak up to a year or more ahead of the market. Except, that is, in a few cases...

In the late 1960s, a technician named Don Hahn observed another phenomenon about the Coppock Guide. When a double-top occurs without the Coppock falling to '0', it identifies a bull market, where corrections haven't driven out nervous investors or cleansed excesses from the market.

When those psychological excesses are not washed out, the nervousness can continue to build and extremes can multiply...with the result that the next downturn can become severe, as everyone heads for the exits.

So there is a critical historical aspect to double-tops: They can result in nasty bears! Double-tops have occurred only seven times in 93 years—with five of them accompanying the start of the most notorious bear markets of the 20th century: 1929, 1969, 1973, 2000, and 2007.

The severity of those resulting bear markets reveals why the double-top in the Coppock Guide has been nicknamed a "Killer Wave." The average decline (excluding the -86% loss in 1929) was almost -42%!

Over the past few months, the Coppock Guide has been developing a second peak (yellow shading), raising the odds that when the next bear market does strike, it could be more devastating than many anticipate.

However, since the Coppock is still in an upward trajectory, it's not pointing toward an imminent bear market today. Yet this does suggest that we should be extra vigilant and avoid taking excessive risk in this aging bull market.

Subscribe to InvesTech Market Analyst here…

More from MoneyShow.com:

Bearish CrossCurrents

Rising Rates? Beware of Big Banks

Compelling Case for Energy

Amazon.com, Inc. (AMZN) Q3 Earnings Preview: What To Expect?

Online retail giant Amazon.com, Inc. (NASDAQ: AMZN) will report its third quarter financial results on Oct.24 and hold a conference call on the same day at 2:00 p.m. PT/5:00 p.m. ET to discuss the operating performance.

Wall Street expects Amazon to report a loss of 9 cents a share, according to analysts polled by Thomson Reuters. In the same period last year, the company reported a loss of 60 cents a share.

Amazon's results have managed to top Street view only once in the past four quarters while missing them by a wide margin on three occasions. Analysts are more pessimistic on Amazon's earnings in the last three months, when the consensus estimate was a profit of 10 cents.

Quarterly revenue is expected to rise 21.4 percent to $16.77 billion from $13.81 billion in the same quarter last year. Amazon sees third quarter net sales between $15.45 billion and $17.15 billion, or to grow between 12 and 24 percent over the third quarter of 2012. The market could look at the contributions of North America and International markets.

Amazon is sacrificing near-term profitability to drive long-term growth as it is investing heavily in Kindle tablets, TV content, Video library and AWS. These heavy investments are weighing on gross margins resulting in losses. Amazon expects third-quarter operating loss to be between $440 million and $65 million, compared to $28 million in the third quarter of 2012.

The company recently began shipping of its third generation of Kindle Fire tablets dubbed the Kindle Fire HDX, which could be available for as low as $229. The company also announced the Kindle Fire HD for $139.

During the quarter, Amazon introduced Kindle MatchBook, a new benefit that gives customers the option to buy—for $2.99, $1.99, $0.99, or free—the Kindle edition of print books they have purchased new from Amazon. It also unveiled Kindle Paperwhite—the 6th generation of Kindle eReader.

The Kindle shipping timing difference versus last year, with both the 7" &! ; 8.9" versions pushed into the fourth quarter this year, could be mildly supportive to margins, at the expense of revenue growth.

"We would note that the low cost approach (Jeff Bezos meetings with the press) taken to introducing the new Kindle line would suggest a conservative approach to spending, potentially indicative of operating income pressures," UBS analyst Eric Sheridan said in a note to clients.

Meanwhile, increased fee revenues from 3P sellers should be supportive of gross margin expansion as Amazon raised 3P seller fees about 6 percent in the first quarter.

Investors could watch paid unit growth trends, which have been weakening as it has decelerated in each of the previous five quarters. That said, comps are approximately 400bps easier this quarter relative to last. This statistic has become of increasing importance given Amazon's increasing 3P mix and its impact on both reported revenue growth and gross profit margins.

Best Gold Companies To Buy Right Now

"For Q3 2013, we estimate paid units grew slightly above the 29% growth seen in Q2 2013. The comparison continues to ease as we move into Q4 (32% paid unit growth posted in Q4 2012)," Sheridan noted.

There is potential for this number to reaccelerate given the combination of Amazon's recent Kindle store launches (China, Brazil, Mexico), 3P business launch in India, Amazon Fresh launch in Los Angeles, and the aforementioned easier compare.

A few additional items that may be brought up on the call or mentioned in some form include early progress related to the company's global expansion of the Kindle Appstore; early traction with 3P sellers in India; update around China strategy (Kindle, partnerships).

For the second quarter ended June 30, 2013, the Seattle, Washington-based company reported a net loss of $7 million or 2 cents a share, compared to net income of $7 million or 1 cent a share for the year-ag! o quarter! . Net sales for the second quarter rose 22 percent to $15.70 billion.

Amazon has traded in a mixed manner following its last two third quarter earnings announcements, increasing 7 percent and declining 13 percent, respectively. That said, over a five year span, the average price change post third quarter results is a 5 percent gain.

Shares of AMZN have gained 8 percent since the last quarterly report and have climbed 41 percent in the last year. They have traded between $218.18 and $331.89 during the past 52-weeks.

Holiday present: $3.15 a gallon gas by Christmas

Gasoline prices are likely to continue sliding for the rest of the year and could fall to $3.15 a gallon by Christmas, the lowest national holiday season average since 2010.

That's about 20 cents a gallon lower than current prices, now averaging $3.36 a gallon.

Crude oil prices fell below $100 a barrel Monday for the first time since July, settling at about $99. The 1.8% drop came on word of a fresh Energy Information Administration report on higher-than-expected domestic supplies.

Separately, the Organization of Petroleum Exporting Countries (OPEC) said there could be a drop in energy demand if the global economy weakens.

"With crude falling below $100, this opens the door for the declines to pick up steam,'' says Patrick DeHaan, senior oil analyst for gasbuddy.com

With ample supplies, lower seasonal demand, refineries producing cheaper winter-grade gas, and tensions in the Middle East continuing to ebb, motorists are likely to find their cheapest gas in three years, says DeHaan. Those same motorists were paying about 32 cents a gallon more last year.

Gasoline prices averaged $3.23 a gallon in 2012, $3.24 a gallon in 2011 and $3.03 in 2010, DeHaan says.

Bargain hunters in several states are already enjoying sub-$3 gasoline. In Missouri, where gas prices average the nation's lowest at $3.07 a gallon, it's selling as low as $2.66 a gallon at some warehouse club outlet.

AAA spokesman Michael Green notes that sub-$3 a gallon gas is available in about 24 states, and overall, the cheapest gas prices nationwide since January.

"Lower prices are a real tangible benefit for most people, who need to drive to live their lives,'' Green says. "This means more savings for people and more money in their pockets."

Follow Strauss on twitter @gbstrauss

Australia stocks rise to fresh post-crisis highs

LOS ANGELES (MarketWatch) -- Australian stocks rose in early Monday trading, helped by Wall Street's gains Friday, with the S&P/ASX 200 (AU:XJO) climbing 0.8% to 5,362.40 after closing the previous session at its highest level since before the start of the 2008 financial crisis. Miners were broadly improving, as Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) rose 1.3%, BHP Billiton Ltd. (AU:BHP) (BHP) added 0.9% ahead of its quarterly production report Tuesday, and Newcrest Mining Ltd. (AU:NCM) (NCMGF) also climbed 0.9% despite a loss for gold at the end of last week. Financials saw gains as well, with many analysts now tipping the U.S. Federal Reserve to maintain its current level of easing through the end of the year. Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) advanced 1.1%, while Westpac Banking Corp. (AU:WBC) (WEBNF) and Macquarie Group Ltd. (AU:MQG) (MCQEF) rose 1.2% each. On the downside, shares of Qantas Airways Ltd. (AU:QAN) (QUBSF) fell 4.2% after the company warned of rough business conditions on Friday.

Boeing: Single-Aisle Aircraft Will Be Most in Demand

Although Boeing's (NYSE: BA  ) widebody 787 Dreamliner has commanded much media attention lately, it's going to be single-aisle aircraft like the 737 and the company's future 737 MAX that will comprise the bulk of demand for airplanes over the next 20 years.

Unveiling its Current Market Outlook in Paris today, Boeing said it estimates there will be a global need for 35,280 new airplanes during the next two decades as both passenger traffic and cargo traffic grow 5% annually. The company values those planes at $4.8 trillion and forecasts the world fleet to double over the next two decades.

Boeing VP of Marketing for Commercial Aircraft Randy Tinseth was quoted as saying: "This forecast gives us confidence as we increase our production rates and invest in new products like the 777X and 787-10X. Airlines are demanding more efficiency and that is exactly what we'll be giving them."

Boeing anticipates 70% of the demand will fall into the single-aisle market while widebodies like the 747-8, 777, and even its 787 Dreamliner will comprise 24% of the need. Regional jets will make up the balance. The growth of low-cost carriers and airlines from emerging markets will push this movement.

Most of the demand will come from the Asia-Pacific region, Boeing predicts, with China being among the biggest customers, or 36%, for the planes. Another 21% will come from Europe and North America will account for 20.5% of the total.

Boeing projects that 14,350 of these new airplanes needed over the next two decades (nearly 41% of the total new deliveries) will replace older, less-efficient airplanes, while the remainder will be for fleet growth.

Click here to watch a video of Fool analyst Blake Bos talking about the investing takeaway from Beoing's latest global forecast.

link

Stocks To Watch For October 18, 2013

Some of the stocks that may grab investor focus today are:

Wall Street expects General Electric Company (NYSE: GE) to report its Q3 earnings at $0.35 per share on revenue of $35.96 billion. General Electric shares fell 0.12% to $24.65 in after-hours trading.

Google (NASDAQ: GOOG) reported upbeat third-quarter results. Google shares jumped 8.18% to $961.48 in the after-hours trading session.

Analysts are expecting Morgan Stanley (NYSE: MS) to have earned $0.40 per share on revenue of $7.70 billion in the third quarter. Morgan Stanley shares gained 1.14% to $29.26 in after-hours trading.

Intuitive Surgical (NASDAQ: ISRG) posted a 14% drop in its Q3 net income. Its revenue fell 7% year-over-year. Intuitive Surgical shares tumbled 7.77% to $368.13 in the after-hours trading session.

Analysts expect Honeywell International (NYSE: HON) to report its Q3 earnings at $1.24 per share on revenue of $9.92 billion. Honeywell shares rose 1.45% to $88.00 in after-hours trading.

Posted-In: Stocks To WatchEarnings News Pre-Market Outlook Markets Trading Ideas

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular UPDATE: SolarCity Confirms Pricing of 3.4M Share Offering at $46.54/Share Trouble Brewing Under the Hood For The S&P 500? UPDATE: J.P. Morgan Upgrades AMR Corporation on Likelihood of US Airways Merger Earnings Scheduled For October 17, 2013 iPhone 5C Selling Out From One Carrier (AAPL) Google Up 5% After Topping Estimates (GOOG) Related Articles (GOOG + GE) Stocks To Watch For October 18, 2013 Google Up 5% After Topping Estimates (GOOG) Consumer Reports Shows Droid and Samsung Are Loved More Than New iPhones UPDATE: BGC Partners Raises PT on Google Ahead of September Quarter Results Market Primer: Thursday, October 17: US Debt Deal Kicks The Can Earnings Scheduled For October 17, 2013 View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
Traders & Investors Summit Register for this FREE Event! Hosted by Marketfy

Top 10 Cheap Stocks For 2014

NEW YORK (TheStreet) -- CHANGE IN RATINGS

Advisory Board (ABCO) was intitiated with a buy rating at Bank of America/Merrill Lynch. $67 price target. Company can deliver solid growth and deserves a premium valuation.

Aetna (AET) was upgraded at Bank of America/Merrill Lynch to buy from neutral. Valuation call, based on a $79 price target, BofA/Merrill said.

Axiall (AXLL) was downgraded at BofA/Merrill to neutral from buy. $45 price target. Company lacks near-term catalysts, BofA/Merrill said. Brady (BRC) was downgraded at Robert Baird to neutral from outperform. $33 price target. WPS segment will likely grow faster than expected, Robert Baird said. [Read: August Retail Sales Disappoint] Dominion Resources (D) was upgraded at J.P. Morgan to overweight from neutral. $68 price target. Midstream growth and the formation of an MLP next year will unlock value from the existing assets, J.P. Morgan said. Finish Line (FINL) was upgraded at Piper Jaffray to neutral from underweight. $21 price target. Comps are easing and the Macy's initiative will likely be positive, Piper Jaffray said. Intel (INTC) was upgraded at Jefferies to buy from hold. $30 price target. Focusing its manufacturing leadership to make MPUs that are lower power, higher performance and cheaper, Jefferies said. NTELOS (NTLS) was downgraded to hold at TheStreet Ratings. [Read: iPhone 5c Pre-Orders Go Live] Pinnacle West Capital (PNW) was upgraded to neutral from sell at Citigroup. A key overhang related to the deregulation of the retail electric market in Arizona was removed, said Citigroup. Price target is $57. QEP Resources (QEP) was downgraded at Deutsche Bank to hold. $34 price target. Valuation call, as the stock has outperformed its peers by 28% year to date, Deutsche Bank said. Teva Pharmaceuticals (TEVA) was downgraded at J.P. Morgan to neutral from overweight. $43 price target. Recovery is likely to be a gradual one with need to rebuild pipeline in the face of an eroding Copaxone franchise, J.P. Morgan said. Under Armour (UA) was downgraded at DA Davidson to neutral from buy. $85 price target. Valuation call, as the stock is up 65% year-to-date, DA Davidson said. Urban Outfitters (UA) was initiated with a buy rating at Sterne Agee. $45 price target. Bar has been reset and the company offers a compelling growth story, Sterne Agee said.

Top 10 Cheap Stocks For 2014: Uranium Resources Inc.(URRE)

Uranium Resources, Inc. engages in the acquisition, exploration, development, and mining of uranium properties, using the in situ recovery or solution mining process. It owns developed and undeveloped uranium properties in South Texas; and undeveloped uranium properties in New Mexico. The company?s primary customers include utilities who utilize nuclear power to generate electricity. Uranium Resources, Inc. was founded in 1977 and is based in Lewisville, Texas.

Advisors' Opinion:

• [By John Udovich]

  Since the start of the week, small cap nuclear fuel stock USEC Inc (NYSE: USU) more than doubled for investors, something that has not happened for investors in uranium stocks like Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc. (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ). To recap: USEC Inc closed at the $6 level on Friday, but then it surged to the $15 level on Monday only to open at the $10 level on Tuesday when it ultimately closed at $12.46. So what in the world is going on with USEC Inc and is it time to revisit nuclear fuel and uranium stocks?

Top 10 Cheap Stocks For 2014: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Popular (NASDAQ: BPOP) shares tumbled 5.54 percent to $27.48 after Morgan Stanley downgraded the stock from Equal-weight to Underweight.

  Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

5 Best China Stocks For 2014: Horizon Lines Inc.(HRZ)

Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.

Top 10 Cheap Stocks For 2014: LifePoint Hospitals Inc.(LPNT)

LifePoint Hospitals Inc., through its subsidiaries, operates general acute care hospitals in non-urban communities in the United States. The company?s hospitals provide a range of medical and surgical services comprising general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services, and pediatric services, as well as specialized services, such as open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. Its hospitals also offer outpatient services, including one-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. As of December 31, 2009, LifePoint Hospitals owned or leased 47 hospitals with a total of 5,552 licensed beds in 17 states. The company was founded in 1997 and is headquartered in Brentwood, Tennessee. Lifepoint Hospitals Inc. (NasdaqNM:LPNT) operates independently of HCA Inc. as of May 11, 1999.

Advisors' Opinion:

• [By Keith Speights]

  The fun wasn't just limited to the big three hospital operators. Lifepoint Hospitals (NASDAQ: LPNT  ) stock jumped 5% on the CMS news, reflecting a $109 million market cap expansion. Likewise, Vanguard Health Systems (NYSE: VHS  ) shares climbed 5%, bumping its market cap up by�$55 million.

Top 10 Cheap Stocks For 2014: Wendy's/Arby's Group Inc.(WEN)

The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.

Advisors' Opinion:

• [By Chad Fraser]

  Nearly four years later, the call has paid off nicely, with Tim’s shares rising 104.0% since that article was released. The company has also paid a dividend since it was spun off by Wendy’s (NYSE: WEN) in 2006 and has raised its payout every year since 2008. It currently yields 1.76%.

• [By Tamara Rutter]

  Breakfast is big business for fast-food chains. However, as Wendy's (NASDAQ: WEN  ) recently emphasized, it's a tough business as well. It raised the white flag recently, saying it would reduce the number of locations offering breakfast to between 300 and 400, down from about 850, according to Bloomberg.

• [By Andrew Marder]

  Welcome to the world of Wendy's (NASDAQ: WEN  ) . The burger chain announced preliminary second-quarter results earlier this week, and investors ate them up. The stock has risen 30% in 2013, handily beating out the S&P 500. The company is sitting on about three times as much long-term debt as it has cash, and sales are sluggish. So what gives?

Top 10 Cheap Stocks For 2014: Cowen Group Inc.(COWN)

Cowen Group, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. It manages separate client focused portfolio through its subsidiaries. Through its subsidiaries, the firm invests in equity and fixed income markets. It also invests in alternative investments markets through its subsidiaries. Cowen Group, Inc. was founded in 1994 and is based in New York, New York with additional offices in Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Dallas, Texas, and San Francisco, California.

Top 10 Cheap Stocks For 2014: Whole Foods Market Inc.(WFM)

Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.

Advisors' Opinion:

• [By Mani]

  Whole Foods Market, Inc. (NYSE:WFM) shares are set for multiple expansion due to its potential opportunity to gain share as it is a best-in-class retailer with limited credible competition and it continues to narrow the price gap through targeted price investments.

Top 10 Cheap Stocks For 2014: USG Corporation(USG)

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.

Advisors' Opinion:

• [By Seth Jayson]

  USG (NYSE: USG  ) reported earnings on April 24. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share.

• [By Eric Volkman]

  She also serves as chairman of the United States Steel and Carnegie Pension Fund, and on that organization's investment committee. Outside of U.S. Steel, she sits on the board of directors of USG (NYSE: USG  ) and the Pennsylvania Business Council, among other entities.

Top 10 Cheap Stocks For 2014: Freeport-McMoran Copper & Gold Inc.(FCX)

Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:

• [By Matt DiLallo]

  Goldcorp isn't alone in cutting its capital budget amid falling metal prices. Freeport-McMoRan (NYSE: FCX  ) , for example, is slashing $1.9 billion from its capital budget over the next two years so that it can maintain balance sheet flexibility in light of falling copper and gold prices. It's the same story at Teck Resources (NYSE: TCK  ) , which is also reducing its capital expenditures over the next two years. Teck is cutting $150 million out of its original $2 billion capex budget. Meanwhile, the company is targeting to keep its sustaining capex to $500 million next year. These moves are to better align these companies with current market conditions, as well as to improve cash flow and strengthen balance sheets.

• [By Chandan Dubey]

  I am increasingly finding myself at a loss to describe what I feel after reading the proxy of Freeport-McMoran Copper & Gold (FCX).

  I started getting interested in the stock in October 2011 when the stock price dropped precipitously to $28.85. The immediate reason was Indonesian labor strike at Grasberg. There were violent fights between unionized and un-unionized workers and the mine had to be closed at the expense of loss in production. Coupled with a jittery market the stock dropped to a level not seen since Jul 2010.

• [By Matt DiLallo]

  It's been a challenging year for Freeport-McMoRan (NYSE: FCX  ) . The company faced a number of obstacles to its now-closed acquisitions of Plains Exploration & Production and McMoRan Exploration Company. The good news, at least if you were in favor of these transactions, is that the deals are now closed and it can move forward.

Top 10 Cheap Stocks For 2014: AeroVironment Inc.(AVAV)

AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.

Advisors' Opinion:

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, unmanned aerial vehicle specialist AeroVironment (NASDAQ: AVAV  ) has earned a coveted five-star ranking.

• [By Rich Smith]

  Shares of unmanned aerial vehicle specialist-cum-battery fast-charger equipment maker AeroVironment (NASDAQ: AVAV  ) surged in early Wednesday trading, helped by kind words from a new investor that's just taken a substantial stake in the company.

Rieder: Keeping the pundits honest

If ever anything called for close scrutiny, it's those high-decibel, often inflammatory assertions that are so prevalent in the cable TV pundit wars or over the angry airwaves of talk radio.

Outrageous claims masked as facts are a staple in our deeply divided political culture, offered up not just by politicians but also by talking heads, bloggers and columnists. And all too often, there's no one to check them out and call them out.

Until now.

In early November, PolitiFact, which evaluates the claims of pols for a living, will launch PunditFact. Its mission is to assess the validity of the pundits' pronouncements. And that's a very welcome development.

The advent of the fact-checking movement has been a real plus for democracy. With so much misinformation cavalierly and cynically tossed around, it's really important to investigate in an objective, non-partisan way and help voters separate the facts from the nonsense.

FactCheck.org, an initiative of the Annenberg Public Policy Center at the University of Pennsylvania, pioneered the practice when it was founded in 2003. While FactCheck and PolitiFact are the major players in the field, many other news outlets have embraced vetting politicians' claims rather than settling for the dispiriting he-said, she-said approach to reporting.

RIEDER: Why fact-checking politicians' claims is vital

Neil Brown, editor of the Tampa Bay Times, which launched PolitiFact in 2007, says he's "really pumped up" about the new venture.

Pundits "fling stuff left and right," he says. "Ever since we started, we knew there was a gap in our coverage.," After all, most voters get their political information not directly from candidates and officeholders but filtered through the media.

But there was that nagging question of resources. Owned by the nonprofit Poynter Institute, which describes itself as is "a school dedicated to teaching and inspiring journalists and media leaders," the Tampa Bay Times is one of the nation's top reg! ional dailies. But it has hardly been immune to the financial challenges that have engulfed all newspapers as they confront the digital era.

So when he saw in 2012 that the Ford Foundation, in an unusual move, was giving money to for-profit newspapers The Washington Post and the Los Angeles Times, Brown pounced.

PunditFact, which will have its own website (punditfact.com), is funded by $625,000 in grants over two years from Ford and from the Democracy Fund. It received seed money from craigconnects, a philanthropic venture by craigslist founder Craig Newmark.

"Creating broad and nuanced media coverage of complex social issues is all the more difficult when the facts are often disregarded or ignored," Jonathan Barzilay, director of the Freedom of Expression Unit at the Ford Foundation, said in a statement. "PunditFact is poised to play a critical part in reaffirming the role of facts in our civic dialogue."

Brown emphasizes that he's cool with pundits expressing their opinions or even voicing their hunches. That's their game. But when they state things as a matter of fact, they are fair game for scrutiny.

Like its older sibling, PolitiFact, PunditFact will subject the pundits' facts and "facts" to the truth-o-meter, which awards grades including "true," "mostly true," "half true," "mostly false," "false" and the dreaded "pants on fire."

PunditFact will be led by Aaron Sharockman, who has been the Times' deputy government and politics editor, and will have two other staffers. A 10-year Times veteran, Sharockman believes that Punditworld is ripe for exploration

In a telephone interview, his enthusiasm about his new mission crackled over the phone line. "Everyone needs to be fact-checked ," he says. "On talk radio, on cable, on blogs, there's so much they say, and so little accountability."

Many pundits, he points out, gain fame and fortune by making extreme, inflammatory statements. Nuance and shades of gray are not highly valued on many, if not most, cable ! and talk ! radio outposts. Says Sharockman, "They take rhetorical flourishes right past rhetorical flourishes to misleading statements,."

Given the vast amount of terrain it will be patrolling, PunditFact won't be able to police everything. Brown says the focus will be on declarations that are "outrageous, provocative." Sharockman says one point of emphasis will be the Sunday morning shows such as Meet the Press and Face the Nation, since they so often make news.

But while they love the mission, Brown and Sharockman know well that it's fraught with peril. When you are critiquing other media outlets, you better be right. Otherwise, be prepared for a barrage of blowback. And Sharockman is anticipating plenty of return fire.

"The pundits we are checking have big microphones, too," he says. That raises the stakes for the pundit-watchers.

In fact, PolitiFact has received its most withering criticism from a pundit, Rachel Maddow of MSNBC. Maddow was so incensed by a couple of PolitiFact's conclusions that she declared it "shockingly, shockingly bad" and ordered it to close up shop and go away. (While Maddow may have gone too far in calling for the death penalty, her criticism in the cases she cited was on target.)

Given the intense glare of attention PunditFact will face, Sharockman says it's vital that it be totally transparent, laying out in great detail all of the information on which it bases its verdicts.

But despite the potential pitfalls, the PunditFact leadership is energized by the huge upside.

"From a consumer standpoint," says Brown, "if we do this right, this can't miss."

VW's Secret Profit Weapon Gains Again

Auto sales are down in Europe, but sales of Audi's A3 have been strong. The company rolled out this new sedan version to European buyers last month. Photo credit: Audi.

Last year, Volkswagen  (NASDAQOTH: VLKAY  ) was the world's most profitable automaker, even though it was outsold by both General Motors  (NYSE: GM  ) and Toyota  (NYSE: TM  ) . How'd that happen? Simple: Volkswagen has turned its luxury-car brand, Audi, into a huge source of profits.

Audi has continued to rack up big gains this year. As Fool contributor John Rosevear explains, Audi's recent sales gains have been surprisingly strong -- and those gains could mean big profits for VW in the coming quarter.

Great stocks now to build your future
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Nike targets $36 billion in sales by fiscal 2017

NEW YORK (AP) — Nike's key growth areas include China, women's sports and e-commerce, and the athletic gear maker plans to have $36 billion annually in revenue by fiscal 2017.

The company outlined its growth objectives at its first investor meeting in two years at its Beaverton, Ore., headquarters on Wednesday. Nike has been on a growth spurt in North America lately, with strength in its basketball business and the Nike brand, but it has been dealing with a slowdown in growth in China.

Still, CEO Mark Parker said Wednesday that China remains a key area of focus.

"China is in reset mode, but we're really focused on the great position we have there," he said in an interview with The Associated Press. "It remains one of our biggest growth areas.

The company expects revenue, which totaled $25.31 billion in fiscal 2013, to grow 19% to $30 billion by fiscal 2015, the high end of company guidance of $28 billion to $30 billion, and to rise to $36 billion by fiscal 2017.

Other areas include Nike's women's business, which is growing faster than men's. It also plans to grow its children's business and its e-commerce sales, which the company hopes to will increase to $2 billion by 2017 from $540 million this year. It plans to connect its online offerings like Nike+ and Nike Training Club more closely to its e-commerce operations.

Top 10 Cheap Stocks To Invest In 2014

In the basketball arena, basketball socks are a popular trend, and Nike's basketball socks business now totals $100 million.

Shares rose 61 cents, or 0.9%, to end at $70.89 Wednesday, closer to the high end of the stock's 52-week range of $44.83 to $75.25.

PIMCO’s Gross: Will Yellen ‘Shape History?’

Janet Yellen, considered the frontrunner to replace Ben Bernanke as head of the Federal Reserve after Larry Summers withdrew from the process in mid-September, was officially nominated by President Barack Obama on Wednesday.

The economist, who’s been vice chairwoman of the Fed since 2010, must still win Senate approval. She led the central bank's Communications Committee, which moved to hold regular news conferences under her direction and could add further transparency.

What are some market gurus saying and thinking about her leadership?

“Now that she’s made history how will she shape history?" PIMCO co-CIO Bill Gross tweeted. "More dovish than Bernanke but runnin’ outta ammo. Depends on [forward] guidance.”

Gross has been suggesting that investors focus on short-term Treasuries rather than longer-maturity bonds. As of late September, he’s trimmed the duration of holdings in the PIMCO Total Return Fund to 4.42 years from 5.06.

Gross spoke on Bloomberg Television on Tuesday and explained, “Anything that is anchored to the policy rate, and the policy rate being something that probably is going to be 25 basis points for at least the next several years, anything that’s anchored to that will do well and had done well.

“Perhaps 10- and 30-year Treasuries, which are subject to inflation and reflation, which is basically what this policy of Janet Yellen’s is going to attempt to do, those particular maturities are probably negatively affected,” Gross said.

The Senate Banking Committee could hold hearings on Yellen's nomination after the debt ceiling deadline, Oct. 17.

Historian Niall Ferguson, speaking to CNBC earlier this week, said that Yellen was “theoretically on the same page as Bernanke, but covertly, she would really like to have a nominal GDP target — a new level of policy innovation on the monetary side."

"On the fiscal side, we have these unsustainable levels of private and public debt … How do you stabilize the long-term fiscal position and prevent debt accumulation from continuing?" Ferguson said.

Options at Yellen’s disposal are limited. "There is, I believe, a desperate improvisation going on inside the Fed as [quantitative easing] entered the period of diminishing returns. To the point, [that’s led to] the idea of sacrificing something somewhat effective, the forward guidance, at the altar of QE to maintain it, with no taper at all."

Looking down the road to a future adjustment in interest rates, say in 2016or 2017, the transition “will be very sudden and sharp,” the Harvard professor said, “one of the sharpest adjustments in short rates we've ever encountered.

Her Holdings

Yellen’s portfolio, according to The Street, included more than $10 million of investments in Vanguard and Fidelity funds as of 2011, such as shares of the Vanguard Extended Market Index (VEXAX), which tracks mid-cap and small stocks.

On the active side, she has shares of the Fidelity Diversified International Fund (FDIVX) and Fidelity Investment Grade Bond (FBNDX). In her taxable account, she has large holdings in the Vanguard Tax-Managed Growth & Income (VTGLX).

---

Check out Niall Ferguson: 4 Reasons America Is Falling Apart on ThinkAdvisor.

Furloughed? Try moonlighting

Stefanie Manns is on furlough, thanks to the federal shutdown, who is moonlighting by developing her personal business.

WASHINGTON (CNNMoney) As the federal shutdown drags on, some workers who depend on a steady government paycheck are moonlighting.

During his furlough last week, Mike Ferrigno from Ashaway, Rhode Island, picked up extra shifts fueling airplanes at the local airport.

"We know we're going to get paid, we just don't know when," said Ferrigno, who has been maintaining buildings for sailors, as a civilian defense worker for 28 years.

It's impossible to know how many of the tens of thousands of workers on furlough have taken up a second job.

Moonlighting while working for the government is allowed. But it can be tricky. The White House budget office says second jobs must abide by "ethical conduct" rules, meaning the extra job can't conflict with their federal jobs.

The office suggests that employees considering second jobs should first run it by ethics officials in their agency.

The problem now is that most ethics officials are also on furlough, said Max Stier, president of the Partnership for Public Service, a trade group that supports federal employees.

"You would normally go to your agency ethics officer, ... (who is now) sitting at home and not able to answer questions," Stier said.

For Ferrigno, it was easy picking up the extra work, because ethics officials had already cleared his second job. He had been working weekends for years fueling planes for Dooney Aviation, which operates planes in the local Westerly airport. He picks up an extra $200 at his second job.

Top Performing Stocks To Invest In Right Now

His furlough started with the government shutdown on Oct. 1, when the government stopped issuing paychecks. All federal employees are expected to be paid once the shutdown ends. The House voted to give furloughed workers also full back pay and President Obama is expected to sign off on it.

Ferrigno's week day moonlighting came to an end on Monday, when he was called back to work, along with all defense employees.

But some other furloughed workers are trying to make the most of their forced time off.

Unlike Ferrigno, Stefanie Manns of Upper Marlboro, Marylan! d, doesn't expect to get a paycheck for her furlough. That's because she works for a federal contractor doing technical writing for a government agency.

So Manns is trying to build up her side business Words by Stef, where she helps write business and marketing plans for event planners and personal stylists.

Manns says her company has seven clients and brings in an extra few thousand dollars a year. But she hasn't been able to build it as much as she'd like because of time constraints.

Since the shutdown, she's used the opportunity to network, and go for coffee and breakfast meetings with potential clients.

And while she'd prefer to return to work for the federal government, Manns said her furlough gave her a "great opportunity to connect with other women entrepreneurs."

5 Trades to Take for October Gains

BALTIMORE (Stockpickr) -- The drama surrounding the government shutdown held a gun to Wall Street's head to start the week. Well, kinda, sorta.

Stocks actually held their ground pretty well in spite of yesterday's headlines. And the sky isn't falling today either.

In fact, looking back on a historical basis since 1976, research from Bank of America Merrill Lynch's Equity and Quant Strategy group shows that markets tend to perform well in the wake of a government shutdown threats on Capitol Hill. The timing is pretty good too: "New month, new market" has been stocks' mantra all year long. So investors should brace themselves for more of the same now that October trading kicked off at the opening bell this morning.

To take full advantage of a change in trend, we're taking a technical look at five stock trades worth trading this week.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

So, without further ado, let's take a look at five technical setups worth trading now.

Atlas Pipeline Partners

Up first is natgas pipeline stock Atlas Pipeline Partners (APL). Natural gas spot prices have sported some pretty lackluster performance so far in 2013, tumbling mid-single digits year-to-date, but not APL. APL has managed to claw its way nearly 22% higher since the calendar flipped over to January, and it's positioned for even better performance for the rest of the year.

APL is currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance above shares at $39.25 and uptrending support to the downside. Basically, as APL gets bounced in between those two technical levels, it's getting squeezed closer and closer to a breakout above resistance. When that happens, traders have their buy signal.

Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Ascending triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That resistance level at $290 is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above $290 so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

Wait for $290 to get taken out before you buy.

Boston Scientific

You don't have to be an expert technical analyst to figure out what's going on in shares of Boston Scientific (BSX). Shares of the $16 billion medical device maker have been bouncing higher in a textbook uptrend for the better part of the year. Now, with shares coming down to test support, we're coming up on a big buying opportunity for this stock.

BSX has been stuck in a tight range in between parallel uptrend lines, levels that provide a high-probability range for shares. While there's really no bad time to buy a stock that's in an uptrend, the ideal time to jump in comes on a bounce off of trendline support. Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong).

The 50-day moving average has been a stellar proxy for support on the way up -- it's where I'd put a protective stop in this name.

Dover

Dover (DOV) is another stock that's in a solid uptrend this fall. Like BSX, the manufacturing conglomerate has been trending higher since the start of the summer – beating the S&P 500 on a relative strength basis all the way up.

And just like BSX, the ideal time to buy comes on a bounce off of trendline support.

DOV pushed higher off of support in yesterday's session, catching a bid before it got down to the 50-day moving average. At this point, Dover's bounce is still a little tentative. While buyers did step in and bid shares up, yesterday's price action left things close to the support line. So while now might be a good time to build a starter position in DOV, I'd recommend waiting for a more confirmed more off of support before putting cash on this trade.

Top 10 Small Cap Stocks For 2014

If you decide to jump in here, keep a tight protective stop in place.

DirecTV

Last up is satellite television operator DirecTV (DTV). While DTV has more or less matched the market so far this year, shares of the TV provider are starting to look a little "toppy" now. Here's how to trade it.

DirecTV is forming the late stages of a head and shoulder top, a reversal setup that indicates exhaustion among buyers. The head and shoulders is formed by two swing highs that top out around the same level (the shoulders), separated by a bigger peak called the head; the sell signal comes on the breakdown below the pattern's "neckline" level, which is right above $56 at the moment for DTV.

The head and shoulder pattern is well know because it works: a recent academic study conducted by the Federal Reserve Board of New York found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits [that] would have been both statistically and economically significant." If you decide to short this stock on a move below $56, it makes sense to keep a stop above $64.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Breaking Bad economy: How Walt made $80 million

The $80 million profit Walt turned by selling meth for just one year is a very realistic sum for a true-life drug kingpin.

NEW YORK (CNNMoney) Walter White may be fictional. But the $80 million profit he turned by selling meth in less than a year is a very realistic sum for a true-life drug kingpin.

It's not until the last season of Breaking Bad that viewers learn just how much cash their favorite meth-making anti-hero has accumulated by cooking crank. The $80 million is a staggering sum for less than a year's worth of work.

But experts say that pallet full of cash portrayed in the show is realistic, given the economics of the meth trade.

"The show has a lot of reality to it," said Ralph Weisheit, a professor of criminal justice at Illinois State and an author of the book, "Methamphetamine: It's History, Pharmacology and Treatment." "It clearly employs consultants who know a lot of about the business," he added.

The story of a quiet high school chemistry teacher who built a crystal methamphetamine empire will air its series finale on Sunday, amid strong ratings for AMC Networks (AMCX) and even stronger buzz.

Walt's fortune is built on the premise that he's selling his meth at the modest price of about $60 a gram. That's spelled out in the fifth season episode "Hazard Pay," when Walt and his partners sell a 50 pound batch of their high quality blue meth for $1,379,560, after the commission that goes to street dealers.

According to Weisheit, $60 a gram "is not at all unreasonable, especially for meth of a very high quality."

"The price of meth varies wildly from one part of the country to another, and from one time a year to another, depending on supplies," he added. "It can go from $50 a gram to $150 a gram. It makes oil prices look stable."

It's a long way from $6! 0 for a gram of meth to the seven, 55-gallon drums of cash Walt has holding $80 million. But the volumes of meth on the show are enough to produce that mountain of cash. And the demand for the product is strong enough that Walt could move that much meth in less than a year, especially given his empire's expansion into eastern Europe this season.

Walt was able to make such a large volume of meth because he and his partners stole 1,000 gallons of the industrial chemical methylamine from a train. After the heist, Walt's partners want to sell the chemical for $15,000 a gallon, instead of cooking it up into meth and selling it.

On the black market, that's a reasonable price for the chemical, says Weisheit.

But Walt argues that if he cooks the methylamine, he and his partners can make far more money - somewhere between $300 million and $370 million. Using the retail price of $60 a gram, that means they'd have to sell between 11,000 and 13,500 pounds of meth.

And as it turns out, the 1,000 gallons of methylamine they stole would produce anywhere from 10,000 to 13,000 pounds of very pure meth, according to Steve Preisler, a chemist who wrote the book "Secrets of Methamphetamine Manufacturer" while serving time in prison on meth charges.

Walt cooks almost 400 gallons of the methylamine before deciding to quit the business. He agrees to pay another drug dealer a 35% cut of his sales in return for handling the distribution.

That would net Walt between $78 million to $96 million in profit, or enough to fill those seven 55-gallon drums with cash.

More precise numbers = more trust from clients

Clients may have more confidence in financial advisers who use precise numbers, rather than those who round them up or down, new research from the University of California, Los Angeles, suggests.

People who use more specific numbers — such as citing a 6.4% return instead of a 6% return — are judged to be more reliable sources and are more likely to be tapped by others for advice, according to a recent study by Danny Oppenheimer, associate professor of marketing and psychology at UCLA.

“For advisers, if you give more precise estimates, people will think you are more confident in your decisions and may be more inclined to trust you,” Mr. Oppenheimer said.

Most previous research on what conveys confidence has focused on physical cues, such as the eye contact of the presenter, their posture and whether they make nervous gestures. This research suggests that specificity with numbers as a confidence booster works even when the information is delivered through written forms of communication.

“So much more communication is happening today in ways that people don't have normal cues,” Mr. Oppenheimer said, noting the increased importance of e-mail and social media in business.

In the first part of the study, 187 undergraduates were asked to read 10 questions and estimate the confidence level of the person who had answered each one. The answers all involved numbers but some offered precise measures, such as “2,611 miles,” while others gave imprecise answers like “2,600 miles.”

Participants judged those who answered with more significant digits to be more confident, Mr. Oppenheimer said.

In the second part of the study, 163 people were paid to participate in a Price is Right-style game where they had to guess the price of different items. They were given audience suggestions like “$60” or $63” and had to choose which audience members would advise them in subsequent rounds.

Researchers found that participants preferred advice from those who gave more precise estimates, said the study, which was co-authored by UCLA's Ashley Angulo and Princeton University's Alexandra Jerez-Fernandez.

Applications for the research include “which politician to vote for, which stock broker to take on as financial advisers, and which doctor to trust with diagnosis,” the authors wrote.

However, one key is to be accurate, Mr. Oppenheimer advised.

Some legal psychological research suggests that when someone makes a statement with a lot of confidence but get it wrong, people are more skeptical of the person in the future, he said, noting that such theories have not been investigated in the context of! investments.

“And of course, it's easier to be wrong, the more specific you are,” Mr. Oppenheimer said.

Wednesday's Top News Headlines

Here are today's top news headlines from Fool.com. Check back throughout the day as this list is updated, and follow us on Twitter at TMFBreaking.

Standard & Poor's Lowers Credit Outlook for JPMorgan Chase

Travelzoo Plans to Shake Out Small Shareholders

JetBlue May Traffic Jumps 9.4%

AuRico Gold Initiates Drip Program

AuRico Gold Executive Chairman Resigns for Health Reasons

Lead Director of Cliffs Natural Resources Resigns

ECB Official Defends Bond Purchase Plan

Abbott Launches Japanese Stent Trial

U.S. Chief Executives More Optimistic About Hiring

FDA Approves 2 St. Jude Heart Devices

TJX Companies Shareholders Elect New Member to Board of Directors

Northrop Grumman Gets New Chief Executive in Australia

Mindray Medical Appoints New Co-CEO

GE Moves Its CFO to Lead GE Capital

Oil Rises to $96, Reverses 2 Days of Losses

Facebook Opens 100% Hydroelectric-Powered Data Center in Sweden

PetSmart Names Non-Executive Chairman of the Board

Indian Company to Buy Cooper Tire for $2.5 Billion

Sirius Tops 10,000 Used-Car Partners

Walgreen to Pay $80 Million to Settle Federal Allegations Over Painkiller Distribution

Dunkin' Brands Expanding in Texas

Ruby Tuesday Gets a New Concept President

Crude Oil and Gasoline Inventories Rise

U.S. May Deficit Hits $139 Billion

Record Crop Forecast Sends Corn Prices Lower

3D Systems Buying Phenix Systems

Behind the Ethanol Scandal

NEW YORK (TheStreet) -- Something about this decade's economic assumptions has never made sense to me.

The idea that you can anticipate a high and rising price for fuel, regardless of demand, never made sense to me.

What I was taught in economics class was that demand encouraged supply, and at some point the two would balance.

That's what seems to be happening. Shale oil, shale gas, and new strikes around the world are dramatically increasing gas supplies and proven reserves, to the point where one-third of natural gas being pumped in North Dakota's Bakken is being flared, burned away, $100 million in gas a month. [Read: Ex-JPMorgan Traders Could Face 20 Years in Prison ] North Dakota's Department of Mineral Resources explained this happens only when the oil flow from a well is being tested. Or, if a producer determines it "is not economically feasible" to connect the gas in a well to a pipeline, they may "seek relief" from paying taxes and royalties on it. If something is not "economically feasible," doesn't that mean the market has cleared at a price below the cost to bring on production? At its current price of $3.67/MCF, according to the latest report on Investing.com, it's still not economically feasible. Prices below production costs have long been the problem with ethanol. The Renewable Fuel Standard was created to bridge this gap, enabling production. The idea that traders may be exploiting this program is separate from the question of supply and demand. You wanted supply and you got it. Genetic engineering is coming to the rescue of fuel prices. A bumper corn harvest, driven by genetically engineered seeds, is driving ethanol prices below those for unblended gasoline. This pressure is going to increase next year. [Read: Stop Blaming Lehman and Banks, Congress Created the Collapse] Ethanol Producer writes that cellulosic alcohol projects, which don't require food crops as fuel, are starting to come on-stream. Science & Enterprise writes that non-fuel crops like castor beans, genetically engineered to be used as fuel, are also heading to market. Venture-funded start-ups like Midori Renewables are preparing new catalysts that get even more fuel sugar from existing feedstocks. So the only recourse left to oil advocates is to attack the the Renewable Fuel Standard that created all this abundance. Take away the bridge, chop off ethanol supplies at the source, and the price pressure on refiners and oil producers may abate.

Issues that appear political are often just economic, and that's the case here. Ethanol, with government aid, is now putting downward pressure on gasoline prices, and the producers of that fuel are howling about unfair competition.

But take away the market pressure of ethanol, do away with the Renewable Fuel Standard, flare enough gas in enough fields, and the market clears at the higher prices fossil fuel producers have built into their own economic models. [Read: Our 401(k)s Show We're Not Taking Investor Confidence Seriously ]

The lesson should be clear. The economic assumptions of this decade are wrong. There is a limit to how high natural gas and gasoline prices can rise before the market bites back. Now that this has happened, producers are squealing like stuck pigs.

Is the answer to give the old-line producers the political power they need to drive new supplies from the market so that they can keep raising costs and prices? Or is it to see that squealing as a victory and increase the pressure, forcing a permanent re-examination of the fuel industries' cost structures? The answer to that one, I think, is obvious. The war against oil is being won, and now is the time to go in for the kill. At the time of publication, the author owned no ethanol stocks. Follow @DanaBlankenhorn This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Dana Blankenhorn has been a business journalist since 1978, and a tech reporter since 1982. His specialty has been getting to the future ahead of the crowd, then leaving before success arrived. That meant covering the Internet in 1985, e-commerce in 1994, the Internet of Things in 2005, open source in 2005 and, since 2010, renewable energy. He has written for every medium from newspapers and magazines to Web sites, from books to blogs. He still seeks tomorrow from his Craftsman home in Atlanta.

Fallout From a Government Shutdown

What will happen to my Medicare and Social Security benefits if the government shuts down?

SEE ALSO: 10 Things You Must Know About Social Security

Social Security retirement and disability benefits won't be affected. Those benefits are paid by trust funds that are not funded annually by Congress. Medicare claims processing and benefits will also continue uninterrupted, at least for the short term. And applications for Social Security benefits will still be processed.

But Social Security earnings corrections and benefits verifications will be temporarily discontinued during a shutdown. And the government will not be able to issue original or replacement Social Security or Medicare cards. The Social Security Office of Disability and Adjudicative Review will continue hearing and deciding cases, but service will be limited, and it will not be able to schedule new cases during a shutdown.

A shutdown won't derail military and veterans' health benefits. Tricare military health benefits and Veterans Administration benefits will still be processed, and VA medical centers will continue to operate. Veterans compensation, pension and education benefits could be affected, however, if a shutdown were to last beyond late October. The VA National Call Center will continue operating, although the VA's national phone numbers for consumer affairs, billing issues and a few other services will be temporarily suspended. The Board of Veterans Appeals will not issue any decisions on claims appeals. (The Veterans Administration has a helpful Field Guide to Government Shutdown with details about what VA services will and will not be available.)

Ironically -- because funding for the new health care law is the primary issue behind congressional squabbling -- a shutdown would not delay the October 1 start date for enrollment in the health insurance marketplaces. That's because the marketplaces use funds not affected by the annual budget (see Get Ready for Obamacare).

Top 5 Dividend Companies To Invest In Right Now

And don't plan to visit any national parks during a shutdown; they'll all be closed. Guests staying in National Park Service hotels and campgrounds will be given 48 hours to leave the parks.

Got a question? Ask Kim at askkim@kiplinger.com.