War's Influence On Wall Street

The world of business has always been a harsh, survival-of-the-fittest environment. Like any realm in which there is competition and the threat of losses, the investing world is rife with conflict. So it is not surprising to see so many military terms creeping into the vocabulary of everyday investors or TV analysts. Take a look at the war-related terms that have invaded the corporate ranks.

Scorched Earth
In 1812, Czar Alexander Romanov decimated the French army that Napoleon led against Russia - even though the French had superior numbers, tactics, quality of soldiers, munitions and everything else you'd put on your guaranteed-victory checklist. So how did one of the greatest military minds of all time lose in such a horrendous fashion? The simple answer is the Czar's scorched-earth policy: as the Russian army retreated, they burned every shelter, animal and plant that would catch fire, effectively leaving the French army without any "found" supplies to sustain them through a Russian winter. Napoleon's previous campaigns relied heavily on the spoils of war to replenish the troops, so he was utterly unprepared for an adversary who would rather destroy his own kingdom than let another take it.

Scorched earth continues to be a terrifying strategy for aggressors to face. In business mergers and acquisitions, not every takeover is welcome. In order to scare off a hostile firm, the target firm will liquidate all its desirable assets and acquire liabilities. However, this approach can prove to be a suicide pill because, even if it is successful, the company must try to reassemble itself or go down in the flames of a self-inflicted fire.

Blitzkrieg Tender Offer
In the first two years of the World War II, Nazi Germany crushed its opponents all over Europe by means of the Blitzkrieg or "lightning war" strategy, a set of tightly focused military maneuvers of overwhelming force. Striking with tanks, artillery and planes in one area, the Nazis defeated France's supposedly impenetrable Maginot Line, which was still accustomed to the traditional front-based warfare.

The Blitzkrieg strategy used in corporate takeovers is a slight departure from the German warfare of the 1940s. A Blitzkrieg tender offer is an overwhelmingly attractive offer a takeover firm makes to a target firm. The offer is designed to be so attractive that objections are few or non-existent, allowing an extremely quick completion of the takeover. This tender offer's allusion to the World War II is based only upon the speed of the conquest; there was nothing alluring or attractive about the Nazis' Blitzkrieg.

Dawn Raid
When organized warfare and the military were considered "gentlemen's affairs", a declaration of war, a location and a time would be issued to the adversary. Raids and guerilla warfare were the arenas of savages and rebels, not the tactics of a self-respecting army. However, the American Civil War, the two World Wars, the Vietnam War and the improvement of weaponry obliterated the old code of warfare, and made it commonplace to attack at any time - including dawn, when sleep is still thick in the enemy's eyes. Because at day break the level of preparedness is lower, the dawn raid maximized enemy casualties and so became a standard military practice. This logic has carried over to the corporate sector.

A dawn raid in the investing world occurs when a firm (or investor) purchases a large portion of shares in a target firm at the opening of the market. A stock broker for the hostile firm helps the firm build up a substantial stake (and maybe a controlling interest) in the unsuspecting target. The hostile firm significantly lowers its takeover costs by already holding a big chunk of its prey. Because the process is initiated through a brokerage and at the market opening, the target firm doesn't figure out what's going on until it's too late. Even though only 15% of a firm's stock can be captured in a dawn raid, this percentage is often enough for a controlling interest. (When an individual investor decides to do this, he or she is referred to as a raider.)

A dawn raid is sneakier and more effective than a formal bid in most cases, but it may lead to resentment from the target firm. Unlike the dawn raid in war, the dawn raid of the corporate world makes the people you just attacked before their morning coffee not just your defeated enemies but now a part of your own army, meaning dissent may soon brew in the ranks.

Capitulation
Capitulation is a term that finds its roots in the Medieval Latin word "capitulare" which means "to draw up terms in chapters". Since the 1600s, however, capitulate has been synonymous with surrender, or defeat, usually military defeat. In the stock market, capitulation refers to the surrendering of any previous gains in stock price by selling equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines, which are indicative of panic selling. After capitulation selling, many people believe the market place essentially becomes a bargain store because everyone who wanted out of a stock, for whatever reason (including forced selling due to margin calls), has sold. It follows logically (but only in theory) that the stock price should reverse or bounce off the lows. Simply put, some investors believe that true capitulation is the sign of a bottom.

War Chest and War Bonds
The gathering of a war chest has been around as long as war. Emperors and kings would begin to amass tithes and taxes long before declaring war, presumably placing the funds in a chest (maybe labeled with a note "to attack the Dutch" or something). The reason for this hoarding was that experienced warriors cost money: mercenaries made up the bulk of the leadership, and peasants, who were conscripted, provided the cannon fodder.

This tradition of saving up to wage war, either aggressively or defensively, has continued on into the modern world of corporate warfare. Simply put, a war chest refers to the funds a company uses to initiate or defend itself against takeovers.

Rather than pulling out of already stretched budgets, the governments of some countries (U.S. included) use war bonds to raise a war chest. War bonds are government-issued debt, and the proceeds from the bonds are used to finance military operations. War bonds essentially fund a war chest that is voluntarily filled by the public. The appeal for these bonds is purely patriotic as they generally offer a return lower than the market rate. Basically, buying a war bond is supposed to make citizens feel like they are doing their part to support the troops - in the World War II, these bonds were hyped by sentimental persuasion and depictions of the evils of the enemy.

War Babies
War babies are quite common all over the world. Children are classified as war babies if they satisfy one or both of the following:

1. They were born or raised during an invasion of their country.

2. They were fathered by foreign soldiers. This was extremely common in Vietnam. In fact, there are still war babies attempting to gain U.S. citizenship.

In contrast, the war babies of the investing world are the companies that enjoy a jump in stock prices during or before a war (traditionally a time of decline for the market). These companies are usually defense contractors who build munitions, aircraft, artillery, tanks, etc. Although these companies aren't the bastard children of foreign soldiers, people usually do avoid claiming war babies in times of peace.

The Bottom Line
That's that for the military parade down Wall Street. Military terms have crept into many vocabularies and the fiercely competitive realm of finance is no exception.

'Mad Money' Lightning Round: Don't Sell Verizon

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say about some of the stocks callers offered up during the "Mad Money Lightning Round" Friday evening:

LifeLock (LOCK): "This has gone up a lot and I think it's OK. "

Linn Energy (LINE): "They have an SEC problem and accounting issues equals sell." Oasis Petroleum (OAS): "Boy, this one is good. There's a lot more oil in the ground that people realize." Rite Aid (RAD): "I like Rite Aid. I think it's a real great turnaround story." Verizon (VZ): "Verizon is fine and it has a big yield. I would not sell Verizon." To read a full recap of "Mad Money" on CNBC, click here. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

Hot Warren Buffett Companies To Buy For 2014

The annual Value Investor Conference is one of the premier events surrounding Berkshire Hathaway's (NYSE: BRK-B  ) annual meeting in Omaha. The Motley Fool's Joe Magyer, Michael Olsen, and Rex Moore were in attendance and talked to several value investors. In today's video, Joe chats with Wedgewood Partners' David Rolfe about why he goes back to the Berkshire meeting every year.

But what about the stock?
Thanks to the savvy of investing legend Warren Buffett, Berkshire Hathaway's book value per share has grown a mind-blowing 586,817% over the past 48 years. But with Buffett aging and Berkshire rapidly evolving, is this insurance conglomerate still a buy today? In The Motley Fool's premium report on the company, Berkshire expert Joe Magyer provides investors with key reasons to buy as well as important risks to watch out for. Click here now for instant access to Joe's take on Berkshire!

Hot Warren Buffett Companies To Buy For 2014: Towne Bank(TOWN)

TowneBank, through its subsidiaries, provides retail and commercial banking products and services in the Greater Hampton Roads region in southeastern Virginia. The company operates in three segments: Banking, Realty, and Insurance. The Banking segment provides various deposits products, including checking accounts, demand deposits, negotiable order of withdrawal accounts, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts; personal loans, including secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; commercial loans comprising secured and unsecured loans for working capital, business expansion, and equipment and machinery purchases; and fixed- and floating-rate mortgage loans, as well as real estate construction and acquisition loans. This segment also provides safe deposit boxes, cash management services, travelers? checks, direct deposit of payroll and social securi ty checks, and automatic drafts for various accounts, as well as Internet and on-call banking services. In addition, it offers documentation to accomplish tax deferral to investors; and financial, retirement, and estate planning services, as well as assistance on various investment options, including alternative investments, annuities, margin accounts, convertible bonds, and pension and profit sharing plans. The Realty segment provides residential real estate, resort property management, and commercial residential title insurance services, as well as originates mortgage loans. The Insurance segment provides life, property, casualty, and vehicle insurance services; travel, medical, and baggage protection insurance for travelers; and employee benefit programs, including medical, dental, vision, and disability insurance, as well as serves as an administrator for health care and dependent care flexible benefit plans. The company was founded in 1998 and is headquartered in Portsm outh, Virginia.

Hot Warren Buffett Companies To Buy For 2014: Dee Valley Water(DVW.L)

Dee Valley Group plc, through its subsidiary, Dee Valley Water plc, provides water services in north east Wales and west Cheshire. The company supplies potable water to approximately 110,000 households; and 8,000 commercial, industrial, and business customers. It operates 28 pumping stations and provides both drinking and non drinking water. The company supplies water from a network of eight impounding reservoirs and two underground sources. Dee Valley Group plc is based in Wrexham, the United Kingdom.

Top 5 Energy Stocks To Watch For 2014: North Central Bancshares Inc.(FFFD)

North Central Bancshares, Inc. operates as the holding company for First Federal Savings Bank of Iowa that offers banking services in the central, north central, and southeastern parts of Iowa. The company offers various deposit products, including noninterest-bearing demand accounts, interest bearing accounts, savings accounts, money market savings, certificates of deposit, and individual retirement accounts. It also provides a loan portfolio of one-to-four family residential real estate loans, multifamily residential and commercial real estate loans, and construction and land development loans, as well as consumer loans, which consists primarily of one-to-four family second mortgage loans, including home equity lines of credit. In addition, the company offers real estate title abstracting services in Webster and Boone counties of Iowa. Further, it sells life insurance on mortgage loans, credit life and accident, and health insurance on consumer loans; and annuity product s, mutual funds, and other noninsured products. Additionally, the company engages in acquiring, developing, and managing low and moderate income housing for residents of the Fort Dodge area. It operates 10 branch offices in Fort Dodge, Nevada, Ames, Perry, Ankeny, Clive, West Des Moines, Burlington, and Mount Pleasant, Iowa. The company was founded in 1995 and is headquartered in Fort Dodge, Iowa.

Hot Warren Buffett Companies To Buy For 2014: Janus Capital Group Inc (JNS)

Janus Capital Group Inc., and its subsidiaries (JCG), incorporated on January 23, 1998, provide investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, other pooled investment vehicles, separate accounts and sub advised relationships (collectively referred to as investment products) in both domestic and international markets. JCG provides investment management competencies across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives through its subsidiaries, Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins). JCG's investment products are distributed through three primary channels: retail intermediary, institutional and international.

The institutional channel serves the United States corporations, endowments, foundations, Taft-Hartley funds and public fund clients and focuses on distribution direct to the plan sponsor and through consultants. As of December 31, 2012, assets in the institutional channel totaled 24% of total Company assets under management. The international channel primarily serves professional retail and institutional investors outside of the United States, including central and local government pension plans, corporate pension plans, multi-managers, insurance companies and private banks. International products are offered through separate accounts, sub advisory relationships and Janus Capital Funds Plc, a mutual fund trust. As of December 31, 2012, assets in the international channel totaled 11% of total Company assets under management. JCG operates international offices in London, Paris, Milan, Munich, Frankfurt, The Hague, Dubai, Zurich, Singapore, Hong Kong, Tokyo, Melbourne and Taipei. The retail intermediary channel serves financial advisors, third-party intermediaries and retirement platf! orms in the United States. In addition, this channel serves existing individual investors who invest in JCG products through a mutual fund supermarket or directly with JCG. As of December 31, 2012, assets in the retail intermediary channel totaled 65% of total Company assets under management.

Janus

Janus manages primarily growth equity portfolios. As of December 31, 2012, Janus managed 63% of total Company assets under management. The Janus Overseas Fund is included in the assets managed by Janus and represented approximately 6% during the year ended December 31, 2012.

INTECH

INTECH has managed institutional portfolios. INTECH's investment process is based on a mathematical theorem that seeks to add value for clients by capitalizing on the volatility in stock price movements. As of December 31, 2012, INTECH managed 26% of total Company assets under management.

Perkins

Perkins has managed value-disciplined investment products. With its fundamental research and careful consideration for downside risk, Perkins has established itself as a value manager. Perkins offers value equity investment products across a range of the United States asset classes and global equity. As of December 31, 2012, Perkins managed 11% of total Company assets under management.

Hot Warren Buffett Companies To Buy For 2014: Sigma Pharmaceuticals Ltd(SIP.AX)

Sigma Pharmaceuticals Limited engages in the wholesale and retail of pharmaceutical drugs in Australia. The company distributes pharmaceutical products to retail pharmacies. It operates approximately 550 banner stores under the Amcal, Guardian, and Amcal Max brands. The company was founded in 1912 and is headquartered in Clayton South, Australia.

Hot Warren Buffett Companies To Buy For 2014: MELA Sciences Inc(MELA)

MELA Sciences, Inc., a medical device company, focuses on the design and development of a non-invasive, point-of-care instrument to assist in the detection of early melanoma. The company?s principal product, MelaFind, features a hand-held imaging device that emits multiple wavelengths of light to capture images of suspicious pigmented skin lesions and extract data. This product uses automatic image analysis and statistical pattern recognition to help identify lesions to be considered for biopsy to rule out melanoma. It consists of hand-held imaging device, which employs high precision optics and multi-spectral illumination; database of pigmented skin lesions; and lesion classifiers, which are mathematical algorithms that extract lesion feature information and classify lesions. MELA Sciences submitted the MelaFind pre-market approval application with the U.S. Food and Drug Administration (FDA) in June 2009 and is under review at the FDA. The company was formerly known as E lectro-Optical Sciences, Inc. and changed its name MELA Sciences, Inc. in April 2010. MELA Sciences, Inc. was founded in 1989 and is based in Irvington, New York.

Hot Warren Buffett Companies To Buy For 2014: Terramin Australia Ltd(TZN.AX)

Terramin Australia Limited engages in the exploration, evaluation, and development of base metal projects in Australia and internationally. It focuses on zinc and lead metals. The company?s flagship project Tala Hamza is located on the Mediterranean coast of Algeria. It also holds 100% interest in Angas zinc mine located near the town of Strathalbyn in South Australia; 100% interest in Oued Amizour zinc project located on the north coast of Algeria on the Mediterranean Sea; and Menninnie zinc project located on northern Eyre Peninsula, South Australia. The company was incorporated in 1993 and is based in Adelaide, Australia.

Hot Warren Buffett Companies To Buy For 2014: SI Financial Group Inc.(SIFI)

SI Financial Group, Inc. operates as the bank holding company for Savings Institute Bank and Trust Company that provides a range of financial services to individuals, businesses, and municipalities primarily in Hartford, Middlesex, New London, Tolland, and Windham counties in Connecticut. Its deposit products include noninterest-bearing demand accounts, such as checking accounts; and interest-bearing accounts comprising NOW and money market accounts, regular savings accounts, and certificates of deposit The company?s loan portfolio comprises one-to four-family residential mortgage, multi-family and commercial real estate, construction, and commercial business loans, as well as consumer loans, such as home equity lines of credit, unsecured loans, loans secured by marketable securities, passbook or certificate accounts, motorcycles, automobiles, and recreational vehicles. It also offers fiduciary services, investment management, and retirement services to individuals, part nerships, corporations, and institutions, as well as acts as a guardian, conservator, executor, trustee under various trusts, wills, and other agreements. As of July 27, 2011, the company operated 21 branch locations. SI Financial Group, Inc. was founded in 1842 and is headquartered in Willimantic, Connecticut.

Double your pleasure, double your fun

Summary: The cardinal rule of investing – and life, frankly – is “When the facts change, you have to change your point of view.” The Fed's decision to maintain its current pace of bond buying at the FOMC meeting is one of those fact-changing events. Markets were primed for a reduction, and along with a host of other flashing yellow lights that was enough to make plenty of market watchers cautious, including us. Yes, the Fed will eventually cut the QE tow rope if/when labor markets improve, but for now they seem content to keep toting the barge and lifting the bale. That leaves markets free to head to the bar, hopefully avoiding incarceration along the waty. Remember 1999, when markets ripped through Q4 because so many investors had bided their time waiting for the dot-com bubble to collapse earlier in the year? Cue the music, because this is beginning to look like the same market setup.

Forget financial assets – the most startling bull market since the 1990s has been demographic: the birth rate for twins has increased by over 50% since 1990. At the start of the 90s, according to US government statistics, there were about 23 twins born for every 1,000 live births. As of 2011, the last year for which data is currently available, that number had jumped to almost 34 per 1,000. Every ethnic background the government tracks for this data – white, African American and Hispanic – shows similar increase.

The reasons for this boom in double baby carriages are easy to understand, even if the outcomes are surprisingly successful. American women are waiting longer to start families and sometimes require fertility treatments, some types of which increase the likelihood of twin births. The technology behind these treatments has become more effective as well, adding to the overall trend. But from friends within this age cohort (I left it some time ago myself) comes this surprising anecdote: couples are specifically “Going for” twins with fertilit! y treatments. Questions of medical ethics aside, this makes some sense. If you can safely start and complete your family of four with only one pregnancy, some portion of the population will take that path.

Moving over the distinctly less adorable but still timely world of central bank policy, the Federal Reserve today showed downside of actually tending to twins once you have them. Theirs aren't called Jacob and Sophia (2012's most popular baby names, by the way), but “Employment” and “price stability”. Central banks aren't generally in business of surprising capital markets, but the announcement that the Federal Open Market Committee would continue the current $85 billion pace of bond purchases has to count as the most unexpected policy decision since the Financial Crisis and round #1 of QE.

The other commonly referenced set of policy twins – Wall Street and Main Street – tells part of the story behind this decision. They are the Jason and Emma (second most popular names last year) of the story. Listening to Chairman Bernanke's press conference this afternoon, I was struck by his frank and honest portrayal of U.S. labor markets. Discouraged workers exiting the labor force. Unemployment rates which dramatically underrepresent the “True” social stress of unemployment trends got some air time. It was more like reading Zerohedge than listening to a typical central banker/economist two-handed conversation. Which is to say it felt refreshingly honest.

At the same time, Wall Street has done very well indeed under the QE umbrella. Stocks have more than doubled since the March 2009 lows, corporate profits are at record levels, and there have been some very large corporate transactions (think the Verizon bond deal) which feel more like a capital markets peak than a trough. The disparity between these outcomes and those in the prior paragraph are stark, and “Income inequality” is a trending topic again, if only in economic and political policy circles.

By keeping the QE bond buying program in place, the Fed is acknowledging that one of its twins (Wall Street) may be killing it, but the other (Main Street) isn't keeping pace. Given ! all the chatter about 'Tapering' (the word I would most like to strike from the dictionary) after the last Fed press conference, everyone who tuned into CNBC or picked up a newspaper in the last three months believed the Fed would reduce the program. What did the Fed see as it filtered through all its data at this last meeting? That the Main Street twin was actually falling further behind in school, even as the Wall Street sibling was being named valedictorian, president of the debate team, and captain of the soccer squad. Higher interest rate put the housing recovery in a lurch, and the jobs data continues to be weak.

So now investors have a pretty stark decision to make, because time is running out on 2013. We have been quite cautious on stocks over the past month, given not only the news from this Fed meeting but a host of other concerns. These included spotty ETF money flows (our proxy for investor engagement), valuations which did not incorporate declining earnings expectations, and worries over increasingly volatile interest rates. All valid concerns, and all now likely back-burnered for the 74 remaining trading days of the year.

This is beginning to feel like 1999, although you don't have to cue Prince if you don't want to. Just consider the following:

*In 1999, we had a Federal Reserve which pushed liquidity into the system ahead of Y2K conc

Is There Green for Investors in These Small Cap Green Stocks? BLDW, PGCX & PCWT

Small cap green stocks Building Turbines Inc (OTCMKTS: BLDW), Virtual Sourcing, Inc (OTCMKTS: PGCX) and Unseen Solar, Inc (OTCMKTS: PCWT) have been getting some attention lately in various investment newsletters in part because some "green" is being paid out in the form of paid promotions or investor relation activity. Of course, there is nothing wrong with properly disclosed paid promotions, but you do need to remember that small cap stocks (especially those in new "green" industries) already come with risk. With that in mind, here is a quick reality check about these three green small cap stocks and whether you can expect to see some green in the form of profits:

Building Turbines Inc (OTCMKTS: BLDW) Has Secured a $5 Million Line of Credit

Small cap Building Turbines Inc is focused on the design and manufacture of patented rooftop wind turbines as well as vertically integrating them into other renewable energy solutions to complete a total "Green Energy Solution" for any urban environment. Building Turbines Inc's subsidiary, Green City Planet, is also a premier provider of LED lighting and environmentally sound industrial solutions. On Friday, Building Turbines Inc fell 9.76% to $0.0370 for a market cap of $8.71 million plus BLDW is up 51% over the past year and down 87.2% since June 2011 according to Google Finance.

What's the Catch With Building Turbines Inc? According to various disclosures, transactions of $2k, $3k, $3.5k, $15k, $7.5k, $15k and $20k have or will occur to mention Building Turbines Inc in various investment newsletters. Along with the steady stream of promotions, Building Turbines Inc has been issuing a steady stream of press releases with the latest one from last Wednesday to announce that Green City Planet has completed its fourth major LED Lighting installation for one of America's "largest and recognizable dining, entertainment, gaming and hospitality companies." Last Tuesday, Building Turbines Inc announced it had secured a five million dollar line of credit through Sirius Green Solutions, Inc. which will allow for the increase in current sales and distribution of wind turbines, solar and LED lighting. However and according to Google Finance, Building Turbines has reported just $0.14M in revenues last quarter; net losses of $0.01M (most recent reported quarter), $0.10M, $0.47M, $0.81M and $67.59M for the past five quarters; and no cash to cover $0.43M in current liabilities. So maybe investors will want to wait for another quarter or two of financials to see how the line of credit impacts the top and bottom lines.

Virtual Sourcing, Inc (OTCMKTS: PGCX) Says It Will Have Substantial Operating Revenue in the Last Quarter

Small cap Virtual Sourcing is actively pursuing the acquisition of thriving businesses with a five-year or more operating history, year over year sales growth and an increasing net cash flow already in excess of 10% of sales. Target companies include recyclers, manufacturers of recycled products, plastics extrusion companies and suppliers of recycled materials for manufacturing. On Friday, Virtual Sourcing fell 5.88% to $0.160 for a market cap of $950,000 plus PGCX is up 6.7% over the past year and 700% over the past five years according to Google Finance.

What's the Catch With Virtual Sourcing, Inc? According to various disclosures, transactions of $2.5k, $13k and $50k have or will occur to mention Virtual Sourcing in various investment newsletters. Virtual Sourcing has been busy announcing big acquisitions. Over a week ago, Virtual Sourcing announced its subsidiary Allied Recycling Corp. had signed a letter of intent to purchase the assets of a holding company that includes a concrete products manufacturer with more than 20 years of operations, historical sales exceeding $17 million annually in four of the last five years and discretionary earnings in excess of $3 million in its latest fiscal year ended in April 2013. This press release came after another one in August which announced an "ambitious $15-$20 million acquisition plan" (of paper, plastic and fiberglass recyclers) to speed its growth and profitability that will cause the company to "have substantial operating revenue beginning in the last quarter of 2013 with equivalently significant profits." However, Virtual Sourcing has reported no revenues; net losses of $69k (most recent reported quarter), $38k, $78k and $19k for the past four quarters; and no cash to cover $465k in current liabilities at the end of last June. So it remains to be seen whether Virtual Sourcing can keep its promise of "substantial operating revenue" in the last quarter.

Unseen Solar, Inc (OTCMKTS: PCWT) Finally Has Some News

Formerly known as Unseen Solar, Inc, small cap Pacific Clean Water Technologies, Inc formed a subsidiary called WWC to primarily target businesses within the Agriculture and Industrial sectors, whose combined use of fresh water is estimated at 92% annually. On Friday, Pacific Clean Water Technologies is up 7.49% to $0.201 for a market cap of $168.30 million but there is not much historical data on the stock.

What's the Catch With Pacific Clean Water Technologies Inc? According to various disclosures, one promoter or group of promoters expects to "receive $500,000 from a third party for publication of this information." Last Wednesday, Pacific Clean Water Technologies announced that its WWC subsidiary had introduced a safer and more effective way to generate chlorine dioxide in a plant owned by Bolthouse Farms (which was bought in 2012 by the Campbell Soup Company for $1.55 billion). It was also mentioned that WWC has created products that can "improve the processing of carrots, the cleaning of the plant, minimize wastewater and enhance recycling." Beyond that press release, there really has not been any other news from the company beyond a few filings. A quick look at Pacific Clean Water Technologies' financials reveals revenues of $813k (most recent reported quarter), $495k, $2,822k and zero along with net income of $30k (most recent reported quarter), $133k, $298k and $32k for the past four quarters. At the end of June, Pacific Clean Water Technologies had $30k in cash to cover $764k in current liabilities. That's a rather mixed picture but one that is not too bad – meaning investors might want to keep an eye on the stock.

Will Pandora Continue Its Surge Higher?

With shares of Pandora (NYSE:P) trading around $18, is P 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

Pandora is an Internet radio company that operates in the United States with over 125 million registered users. Pandora's Music Genome Project and its playlist-generating algorithms predict listener music preferences, play music content suited to the tastes of each individual listener, and introduce listeners to music they will love. The main sources of revenue for the company are advertising as well as subscriptions. As the Internet music boom continues, Pandora is well-positioned to capitalize on potential subscriptions and advertising marketing share.

It looks like Pandora battle to pay musicians and songwriters less for streaming their music is paying off for the company. Mark Mahaney of RBC Capital Markets told CNBC on Monday that Pandora stock is a smart buy despite a recent price drop. “The cost structure is starting to really work positively, i.e., they're bringing down those music royalty costs,” he said in a video segment. “They're making them smaller and smaller. They're showing that they can monetize mobile usage. This is the poster child for mobile monetization, and they finally got it working.”

T = Technicals on the Stock Chart Are Strong

Pandora stock has been a strong surge higher this year. The stock is inching closer to initial public offering prices but it still has some room to go. 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, Pandora is trading between its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Pandora Options	54.43%	16%	15%

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

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

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Pandora’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Pandora 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)	1200.00%	-11.11%	-69.72%	100.00%
Revenue Growth (Y-O-Y)	51.18%	59.07%	53.81%	59.99%
Earnings Reaction	-12.89%	-4.25%	17.56%	-17.46%

Pandora has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have expected more from Pandora’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Pandora stock done relative to its peers Sirius XM Radio (NASDAQ:SIRI), CBS (NYSE:CBS), Cumulus Media (NASDAQ:CMLS), and sector?

	Pandora	Sirius XM Radio	CBS	Cumulus Media	Sector
Year-to-Date Return	100.30%	29.24%	42.26%	96.07%	38.97%

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

Conclusion

Pandora is an Internet radio company that attempts to match listeners with their preferences in order to discover music they love. The company seems to be winning a royalty battle with musicians and songwriters that may potentially help the company. The stock has been surging higher this year but still has room to go before reaching IPO prices. Over the last four quarters, earnings have been mixed while revenues have been rising, however, investors in the company have expected more during these announcements. Relative to its peers and sector, Pandora has been a year-to-date performance leader. Look for Pandora to OUTPERFORM.

5 Best Oil Stocks To Invest In Right Now

Regular readers of these columns know that I am a big bull on a good number of E&P concerns on the back of the huge domestic oil & gas production surge within the United States over the last 6-8 years. I own and have written extensively about a variety of smaller plays among these producers over the last two years. Bakken producer Oasis Petroleum (OAS) is a stock I have owned and written about since April of last year.

Oasis is up better than 40% over that time frame to better than $43 a share. However, I still believe this fast growing producer has further upside. The company just made a significant purchase and has had received some very positive actions from analysts. It seems an appropriate time to revisit its investment thesis.

Recent Positives:

5 Best Oil Stocks To Invest In Right Now: Magellan Midstream Partners L.P.(MMP)

Magellan Midstream Partners, L.P., together with its subsidiaries, engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. Its pipeline system transports petroleum products and liquefied petroleum gases from the Gulf Coast refining region of Texas through the Midwest to Colorado, North Dakota, Minnesota, Wisconsin, and Illinois. The company owns and operates marine terminals, which store and distribute refined petroleum products, blendstocks, crude oils, heavy oils, and feedstocks, as well as inland terminals that consist of storage tanks connected to third-party interstate pipeline systems to deliver refined petroleum products. Its ammonia pipeline system transports ammonia from production facilities in Texas and Oklahoma to terminals in the Midwest. The company also stores, blends, and distributes biofuels, such as ethanol and biodiesel. As of March 31, 2011, it operated approximately 9, 600 miles of petr oleum products pipeline system and 51 terminals; 6 marine petroleum terminals located along the United States Gulf and East Coasts; a crude oil storage in Cushing, Oklahoma; 27 petroleum products inland terminals located principally in the southeastern United States; and a 1,100-mile ammonia pipeline system and 6 associated terminals. The company also provides ancillary services, such as heating, blending, and mixing of stored petroleum products and additive injection services. Its customers comprise independent and integrated oil companies, wholesalers, retailers, railroads, airlines, and regional farm co-operatives. The company serves various markets, including retail gasoline stations, truck stops, farm co-operatives, railroad fueling depots, and military and commercial jet fuel users. Magellan GP, LLC serves as the general partner of the company. The company was founded in 2000 and is based in Tulsa, Oklahoma.

5 Best Oil Stocks To Invest In Right Now: Stone Energy Corporation(SGY)

Stone Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and operation of oil and gas properties in the Gulf of Mexico and the Appalachia region. As of December 31, 2010, it had estimated proved oil and natural gas reserves of approximately 473.9 billion cubic feet of gas equivalent. The company was founded in 1993 and is headquartered in Lafayette, Louisiana with additional offices in New Orleans, Louisiana; Houston, Texas; and Morgantown, West Virginia.

Top 5 Undervalued Companies To Buy Right Now: Nexen Inc.(NXY)

Nexen Inc. operates as an independent energy company worldwide. The company?s Conventional Oil and Gas segment explores for, develops, and produces crude oil and natural gas from conventional sources. This segment operates in the United Kingdom, Canada and the United States, and offshore West Africa, Colombia, and Yemen. Nexen?s Oil Sands segment develops and produces synthetic crude oil from the Athabasca oil sands in northern Alberta. The company?s Shale Gas segment explores for and produces unconventional gas from shale formations in northeastern British Columbia. Nexen Inc. was founded in 1971 and is headquartered in Calgary, Canada.

5 Best Oil Stocks To Invest In Right Now: North American Energy Partners Inc. (NOA)

North American Energy Partners Inc. provides heavy construction and mining, piling, and pipeline installation services to customers in the Canadian oil sands, industrial construction, commercial and public construction, and pipeline construction markets. The company operates in three segments: Heavy Construction and Mining, Piling, and Pipeline. The Heavy Construction and Mining segment focuses on providing surface mining support services for oil sands and other natural resources. Its activities include land clearing, stripping, muskeg removal, and overburden removal to expose the mining area; the supply of labor and equipment to supplement customers� mining fleets supporting ore mining; and provision of general support services, such as road building, repair and maintenance for mine and treatment plant operations, and hauling of sand and gravel. This segment also engages in the construction related to the expansion of existing projects-site development and infrastructure ; and the provision of environmental and tailings management services. In addition, it provides industrial site construction for mega-projects; and underground utility installation services for plant, refinery, and commercial building construction. The Piling segment installs driven, drilled, and screw piles, as well as caissons and earth retention, and stabilization systems. It also designs, manufactures, and sells screw piles and pipeline anchoring systems worldwide, as well as provides tank maintenance services to the petro-chemical industry in Canada and the United States. The Pipeline segment provides small and large diameter pipeline construction and installation services, as well as equipment rental to energy and industrial clients. The company�s fleet includes approximately 900 pieces of diversified heavy construction equipment supported by approximately 750 pieces of ancillary equipment. North American Energy Partners Inc. was founded in 1953 and is headquartered i n Calgary, Canada.

5 Best Oil Stocks To Invest In Right Now: Samson Oil and Gas Ltd (SSN)

Samson Oil & Gas Limited (Samson), incorporated on April 6, 1979, is engaged in exploration and development of oil and natural gas properties in the United States. Samson owns a working interest in each of its three material producing properties, through which it has entered into operating agreements with third parties under which the oil and gas are produced and sold. The Company also has 100% working interest in one exploration property and 50% to 100% in a second property. As of June 30, 2012, the Company�� properties included North Stockyard Project; State GC Oil and Gas Field, New Mexico; Davis Bintliff (Sabretooth Prospect), Brazoria County, Texas; Hawk Springs Project, Goshen County, Wyoming, and Roosevelt Project, Roosevelt County, Montana. As of June 30, 2012, the Company along with its subsidiaries produced approximately 87,956 barrels of oil and 214,463 thousand cubic feet of gas.

North Stockyard Project -Williston Basin, North Dakota

Samson has 34.5% working interest in 3,303 acres adjacent to the North Stockyard Oil Field, which is located in the Williston Basin in North Dakota and is operated by Zavanna LLC. Together with the Company�� working interest owners, it has drilled seven wells in this field, six in the Bakken formation and one in the Mission Canyon formation. During July 2012, the Harstad #1-15H well averaged 15 barrels of oil per day (BOPD). The Leonard-23H (10% working interest, 37.5% after non-consent penalty) is a Mississippian Middle Bakken Formation. In July 2011, this well averaged 46 barrels of oil per day. The Company drilled its third Bakken well in the North Stockyard Field, the Gary-24H (37% working interest). During July 2012, this well averaged 75 BOPD. It drilled its fourth Bakken well in the North Stockyard Field, the Rodney-14H (27% working interest). In July 2011, this well averaged 92 BOPD. It drilled its fifth Bakken well in the North Stockyard Field in Williams County, North Dakota, the Earl 1-13H (32% working interest). In Jul! y 2011, the well averaged 193 BOPD. In June 2011, it drilled its sixth Mississippian Bakken well in the North Stockyard field in Williams County, North Dakota, the Everett 1-15H (26% working interest). As of June 30, 2012, the North Stockyard project had net proved reserves of 598,500 barrels of oil and 757,800 thousand cubic feet (of natural gas).

State GC Oil and Gas Field, New Mexico

The State GC oil and gas field is located in Lea County, New Mexico, and covers approximately 600 acres. As of June 30, 2012, the field had two wells, the State GC#1 and State GC#2. Average daily production during the year ended June 30, 2012 from the State GC oil and gas field was approximately 43 BOPD and 37 million standard cubic feet per day. As of June 30, 2012, the State GC oil and gas field had net proved reserves of 65,500 barrels of oil and 87,300 thousand cubic feet (of natural gas).

Davis Bintliff #1 Well (Sabretooth Prospect), Brazoria County, Texas

The Davis Bintliff #1 well is operated by Davis Holdings. During the year ended June 30, 2012, this well averaged 29 BOPD and 2.61million cubic feet per day. As of June 30, 2012, the Davis Bintliff well had net proved reserves of 700 barrels of oil and 66,400 Thousand cubic feet (of natural gas).

Hawk Springs Project, Goshen County, Wyoming

The Company has 37.5%-100% working interest in Hawk Springs Project. The Spirit of America 1 replacement well, Spirit of America 2, was successfully drilled to a total depth of 10,634 feet during the fiscal year ended June 30, 2012 (fiscal 2012).

Roosevelt Project, Roosevelt County, Montana

The well was drilled to a total measured depth of 14,972 feet with the horizontal lateral remaining within the target zone for the entire lateral length. approximately 3,425 barrels of oil have been produced.

Ugly Way to End What Had Been a Great Week on Wall Street

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

As the closing bell rang today, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) had lost an astonishing 185 points, or 1.19%, and now it sits at 15,451. This monster move downward came just two days after the index rose 147 points and set  new intraday and closing all-time highs, after the Federal Reserve announced it would not begin tapering this month. Wednesday's rally put the Dow up 299 points in just three days, putting the index on pace to be the second best week since early July. But, after falling 40 points yesterday, and tanking today, the Dow ends the week up just 75 points, or 0.47%.

The other major indexes also lost ground today as the S&P 500 fell 0.72%, and the Nasdaq slid lower by 0.39%, but they both managed to post strong gains for the week, up 1.3% and 1.41%, respectively.

Let's take a look at a few of the reasons the Dow had such a rough afternoon.

Earlier this week, news broke that Sprint (NYSE: S  )  was going to offer an option for customers to upgrade their phones on a yearly basis, as opposed to the standard two-year cycle. Today, shares of AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) moved lower by 1.42% and 1.5%, respectively. One reason is that Sprint officially announced the change today, and made a point to indicate that the service plan that will accompany the early upgrade option will be much cheaper than comparable plans that AT&T and Verizon currently offer.

Sprint stated that its $65 per month plan closely compares to what a customer would get after paying $110 per month with one of the two larger carriers. Analysts have cut projections for Sprint because of the new service, as they felt it will hurt margins and overall profits. But, if the new offering can attract customers from AT&T and Verizon because of the cheaper service plans, it may end up being the two larger companies that will ultimately loose, with both customers and lower margins, if they attempt to compete with Sprint on price. 

One of the Dow's biggest losers of the day was United Technologies (NYSE: UTX  ) , which fell 2.16% this afternoon. The move came after news broke indicating that United Tech's Pratt & Whitney division and Rolls-Royce were abandoning their possible joint venture plan. The two companies had previously discussed the idea of joining forces to build the next generation engine that would be used in both Airbus aircraft and Boeing planes. The venture would have given the companies essentially a monopoly on the engine market for narrow-body planes, which is what the two organizations realized, and why they ultimately decided not to move forward with the plan.

Neither company felt the regulators in either the UK or the United States would have allowed the partnership; thus, why waste the time and money now. Investors sold off United Technologies today, though, in disappointment, because had this venture gone through, it would have given the company a massive advantage against other competitors in terms of technology, and pricing power with customers. 

A Deeper Foolish Perspective

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

4 Biotech Stocks Triggering Breakout Trades

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Insiders Love Right Now

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock. >>5 Stocks Set to Soar on Bullish Earnings With that in mind, let's take a look at several stocks rising on unusual volume today. Vanda Pharmaceuticals Vanda Pharmaceuticals (VNDA) is a biopharmaceutical company focusing on the development and commercialization of clinical-stage drug candidates for central nervous system disorders. This stock closed up 9.1% to $13.03 in Wednesday's trading session. Wednesday's Volume: 2.17 million Three-Month Average Volume: 1.01 million Volume % Change: 145% >>5 Biotech Stocks Under $10 to Watch From a technical perspective, VNDA ripped higher here and broke out above some near-term overhead resistance levels at $12.34 to $12.66 with heavy upside volume. This move is quickly pushing shares of VNDA within range of triggering another big breakout trade. That trade will hit if VNDA manages to take out Wednesday's high at $13.11 to its 52-week high at $13.30 with high volume. Traders should now look for long-biased trades in VNDA as long as it's trending above that first breakout level at $12.34 or above support at $12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.01 million shares. If that breakout hits soon, then VNDA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $15 to $17.

Tetraphase Pharmaceuticals

Tetraphase Pharmaceuticals (TTPH), using its proprietary chemistry technology, creates novel antibiotics for serious and life-threatening multi-drug resistant infections. This stock closed up 8.3% at $10.27 in Wednesday's trading session.

Wednesday's Volume: 374,000 Three-Month Average Volume: 104,961 Volume % Change: 351%

>>5 Rocket Stocks to Buy as Mr. Market Climbs From a technical perspective, TTPH ripped sharply higher here with heavy upside volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $7.37 to its recent high of $10.85. During that uptrend, shares of TTPH have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of TTPH within range of triggering a big breakout trade. That trade will hit if TTPH manages to take out Wednesday's high of $10.55 to its all-time high at $10.85 with high volume. Traders should now look for long-biased trades in TTPH as long as it's trending above Wednesday's low of $9.40 or above some key near-term support at $8.72 and then once it sustains a move or close above those breakout levels with volume that this near or above 104,961 shares. If that breakout hits soon, then TTPH will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15. Sangamo BioSciences Sangamo BioSciences (SGMO) is a clinical stage biopharmaceutical company engaged in the research, development and commercialization of engineered DNA-binding proteins for the development of novel therapeutic strategies for unmet medical needs. This stock closed up 4.8% at $11.09 in Wednesday's trading session. Wednesday's Volume: 3.26 million Three-Month Average Volume: 682,073 Volume % Change: 434% >>5 Stocks Ready for Breakouts From a technical perspective, SGMO spiked notably higher here right above some near-term support at $10.46 with strong upside volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $6.86 to its recent high of $11.48. During that move, shares of SGMO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SGMO within range of triggering a big breakout trade. That trade will hit if SGMO manages to take out Wednesday's high of $11.23 to its 52-week high at $11.48 with high volume.

Traders should now look for long-biased trades in SGMO as long as it's trending above support at $10.46 or its 50-day at $10.04, and then once it sustains a move or close above those breakout levels with volume that's near or above 682,073 shares. If that breakout hits soon, then SGMO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $13 to $15.

Repros Therapeutics

Repros Therapeutics (RPRX) is development stage biopharmaceutical company focused on the development of oral small molecule drugs for major unmet medical needs in male and female health. This stock closed up 8.8% at $25.97 in Wednesday's trading session.

Wednesday's Volume: 3.95 million Three-Month Average Volume: 615,575 Volume % Change: 549% Shares of RPRX soared on Wednesday after the company said it is completely satisfied that all the data entered into the data base for study ZA-301 will pass any scrutiny the FDA chooses to apply. >>5 Hated Earnings Stocks You Should Love From a technical perspective, RPRX spiked sharply higher here with heavy upside volume. This is the second day in a row that shares of RPRX have spiked notably higher with big upside volume. This move is starting to push shares of RPRX within range of triggering a near-term breakout trade. That trade will hit if RPRX manages to take out Wednesday's high of $27.39 to its 52-week high at $28.30 with high volume. Traders should now look for long-biased trades in RPRX as long as it's trending above $24 or $23 and then once it sustains a move or close above those breakout levels with volume that's near or above 615,575 shares. If that breakout hits soon, then RPRX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $32. To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS: >>5 Stocks Under $10 Making Big Moves >>Why Wall Street Got Apple Wrong >>5 Breakout Trades to Take Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Did Microsoft Just Pay $7 Billion for a New CEO?

The announced acquisition by Microsoft Corp. (NASDAQ: MSFT) of the mobile phone business of Nokia Corp. (NYSE: NOK) for $7.2 billion gives Microsoft a couple of things. First, is an internal candidate to replace retiring CEO Steve Ballmer. The other thing Microsoft gets is a firm grip on a hardware company that ranks second in global handset sales but that has seen its market share drop from over 40% to less than 15%.

Nokia CEO Stephen Elop now becomes the odds-on choice for the top spot at Microsoft. The peripatetic Elop spent three years at Microsoft as the head of its business (Office) division before taking over at Nokia. He'll be bumped down to executive vice-president now, until the acquisition by Microsoft is completed.

Elop did not create Nokia's troubles, but he didn't solve them either. According to Gartner Inc. (NYSE: IT), Nokia held a 14% share of the global mobile phone market at the end of the second quarter and sold nearly 61 million units, second only to Samsung Electronics which had a market share of almost 25% and sold more than 107 million units.

In terms only of smartphones, Nokia sells virtually all of the smartphones on the market that use Microsoft's Windows Phone operating system. That amounted to 7.4 million units in the second quarter. The good news is that the number was up 83% year-over-year. The bad news is that Microsoft's share totaled just 3.3% of the operating system market.

The 61 million Nokia phones shipped in the second quarter included nearly 54 million feature phones and the market for those is dropping quickly as cheaper smartphones come onto the market.

Elop's main contributions to Nokia have been the original deal with Microsoft, the cost-cutting at Nokia, and the buyout of Nokia Siemens Networks from joint venture partner Siemens AG (NYSE: SI) for $2.2 billion. Not a lot of those achievements have a lot to do with selling smartphones, unless you consider that the company started with zero smartphone sales when Elop arrived.

Zero to 7 million isn't nothing, but then, it isn't not much either and the path for growth really doesn't change much, no matter whether Nokia is independent or a division of Microsoft. Two China-based companies, Lenovo and ZTE, both sold more smartphones in the second quarter than did Nokia, and there are other Chinese companies, like Yulong and Xiaomi, that Microsoft/Nokia will have to contend with at the mid- to low-end of the market.

Nokia's Elop has proved he could slow, if not stop the bleeding, at Nokia, and he managed to push a number of new products out the door. Microsoft paid for a substantial bit of the marketing for those products and once the deal for Nokia is completed the Redmond giant will have to spend a lot more than it has in the past if it is serious about carving out a space in the smartphone market.

So, no, Microsoft did not pay $7 billion for a new CEO, but Stephen Elop likely has the inside track to prove that Microsoft can make a profit in a business that the company has yet to make an appreciable dent in.

Bank of England Begins to Mirror U.S. Federal Reserve: Bernanke and Carney Ventriloquism

This should sound familiar to you: “We are tying shot-term interest rates to the unemployment rate.” This is a message you have heard from Ben Bernanke and the U.S. Federal Reserve for some time now, but the improvised quote is actually what the Bank of England will use as its benchmark for when to raise interest rates again. Mark Carney is governor of the Bank of England and chairman of the Monetary Policy Committee, and he is targeting 7% unemployment, versus Ben Bernanke’s 6.5% hurdle as the U.S. target.

The inflation target also is pegged at 2%, and accommodative rates will remain so long as inflation in the CPI reading for 18 to 24 months ahead will be 0.5 percentage points or more above the 2% target. That is very similar to the U.S. policy. Other similarities are nearly identical as well, although the Bank of England’s asset purchases have been less transparent and have not seemed as robust to American observers.

The Bank of England said:

The Committee intends at a minimum to maintain the current highly stimulative stance of monetary policy until economic slack has been substantially reduced, provided this does not entail material risks to either price stability or financial stability. … In particular, the MPC intends not to raise Bank Rate from its current level of 0.5% at least until the Labor Force Survey headline measure of the unemployment rate has fallen to a threshold of 7%, subject to the conditions below.

Quantitative easing via asset purchases will remain in place in England. Sound familiar? The bank statement guidance said:

The Committee will continue to set the level of Bank Rate and the size of the asset purchase program each month, taking these criteria into account. The action taken by the MPC if any of these knockouts were breached would depend upon its assessment at the time as to the appropriate setting of monetary policy in order to fulfill its remit to deliver price stability. There is therefore no presumption that breaching any of these knockouts would lead to an immediate increase in Bank Rate or sale of assets.

Even if there is not a one world order, there is becoming more and more of a one-world message from central bankers.

The Changing American Dream: Focused on Being Debt-Free

Getty Images/Blend Images Each generation develops a reputation and parenting style that shapes the financial habits of the next generation, and many are wondering what traits millennial parents will pass along to their children. "Depression-era parents taught, 'a penny saved is a penny earned,' " says Robert Wendover, director of The Center for Generational Studies. "But they didn't live in a consumer society like we have now. Millennials think that installment debt is not as important to pay off, it's not as high on their radar. How they will transfer that understanding to their kids still remains to be seen." The traditional American Dream of owning a home and having 2.5 kids is quickly fading as younger generations strive to save more for retirement and become debt free. Credit.com's latest survey found that for most respondents, their ultimate financial goal was retiring financially secure at age 65 (27.9 percent). However, a close second say being debt-free was their top priority. Those ages 18-to-24 were most likely to name being debt-free their top financial goal, and were least likely to cite home ownership or joining the 1 percent as their top ambitions. The survey was conducted by GFK Custom Research for Credit.com, based on 1,000 interviews with Americans 18 and up. Millennials have gotten a rude wake-up call post-recession, says Wendover, and for many reasons, their aspirations have changed. "Five years ago, those 25-year-olds may have said, 'I want to be a millionaire by the time I am 30.' But the economics are very different, the optimism has dampened and their expectations have been lowered in the process." Previous generations that had been through trying financial times, most notably depression-era parents, raised their children with certain financial mentalities, according to Wendover, and he says having parents with debt-free goals will undoubtedly shape future children. Adam Levin, founder of Credit.com, says millennials are likely scarred by the debt it and its predecessors have accumulated and its long-lasting repercussions that include delaying buying a home, getting marriage and having children. "This debt is a drag on the housing market, impacts decisions as to where people live, send your kids to school, and how much discretionary money you have," Levin says. "For many people, the definition of succeeding is now just surviving." Values millennials pass onto their children will of course vary, but Levin says caution will be a common trait passed along.

Hot Casino Stocks To Buy For 2014

NICOSIA, Cyprus (AP) -- Cyprus' president said Friday that the bailed-out country will open casinos and bolster its tourism sector to get the economy going again.

Nicos Anastasiades unveiled a first batch of measures he said are designed to boost growth in an economy that is projected to shrink by 13 percent until 2015.

Anastasiades included casino openings among campaign pledges before his election in February.

He said Cyprus would fork out 21 million euros ($27.54 million) to partly subsidize salaries for 6,000 jobless people that will be hired in the tourism sector, give businesses tax breaks for hiring new workers and set up solar energy parks.

Young people will be granted state and church-owned land for cultivation. And those having homes or businesses seized because they're unable to pay off loans would be able to stay on as renters, he said.

Hot Casino Stocks To Buy For 2014: King’s Bay Gold Corporation (KBG.V)

King�s Bay Gold Corporation, a mineral resource company, engages in the acquisition and exploration of mineral resource properties in north west Ontario and the La Ronge area of Saskatchewan in Canada. It focuses on gold and other precious metal properties. The company was incorporated in 1998 and is based in Winnipeg, Canada.

Hot Casino Stocks To Buy For 2014: Willis Group Holdings Limited(WSH)

Willis Group Holdings Public Limited Company provides a range of insurance brokerage, reinsurance, and risk management consulting services to its clients worldwide. The company offers various insurance brokerage services, including property damage, offshore construction, liability, and control of well and pollution insurance to the energy industry; and marine insurance and reinsurance brokerage services consisting of hull, cargo, and general marine liabilities. It also provides its services to aerospace clients, including aircraft manufacturers, air cargo handlers and shippers, airport managers, and other general aviation companies; and advisory services comprising claims recovery, contract and leasing risk management, market information, and safety services. In addition, the company offers risk management advice and brokerage services to the construction industry; brokerage for directors' and officers' insurance, as well as professional indemnity insurance for corporation s and professional firms; and specialist risk management and insurance services to fine art, diamond, and jewelry businesses, and operators of armored cars. Further, it provides special contingencies packages; services for horse racing and breeding industry, and agriculture/crop sector; and advice to companies involved in the insurance and reinsurance industry on capital markets products. Additionally, the company offers health, welfare, and human resources consulting and brokerage services to small, medium, and large corporations, as well as the employee benefits practice. It serves clients located in approximately 190 countries, including multinational and middle-market companies operating in various industries, as well as public institutions and individual clients. The company was formerly known as Willis Group Holdings Limited and changed its name to Willis Group Holdings Public Limited Company in January 2010. The company was founded in 1828 and is headquartered in Lond on, the United Kingdom.

Best Stocks To Invest In Right Now: Sears Holdings Corporation(SHLD)

Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The company?s Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and DieHard. This segment?s stores provide consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables, and apparel, as well as operate in-store pharmacies. Its Sears Domestic segment operates stores that sell merchandise under the Kenmore, Craftsman, DieHard, Lands? End, Covington, Apostrophe, and Canyon River Blues brand names. This segment?s stores provide appliances, consumer electronics, tools, sporting goods, outdoor living, lawn and garden equipment, home fashion products, automotive products, apparel, footwear, jewelry, accessories, health and beauty products, pantry goods, household products, and toys. The Sears Domestic segment also provides clothing, acces sories, footwear, and soft luggage; appliances and services to commercial customers in single-family residential construction/remodel, property management, multi-family new construction, and government/military sectors; premium appliance and plumbing fixtures to architects, designers, and new construction or remodeling customers; parts and repair services for appliances, lawn and garden equipment, consumer electronics, floor care products, and heating and cooling systems; and home improvement services. The company?s Sears Canada segment engages in the retail of apparel and other softlines. Sears Holdings Corporation operates approximately 2,172 full-line stores and 1,338 specialty retail stores in the United States; 500 full-line and specialty retail stores in Canada, as well as operates 17 floor covering stores, 1,734 catalog pick-up locations, and 108 travel offices; and kmart.com and sears.ca Websites. The company was founded in 1899 and is based in Hoffman Estates, Illi nois.

Can Abbott Stay Healthy in the Second Half of 2013?

Abbott Laboratories (NYSE:ABT) announced impressive second quarter earnings last week that beat analysts' expectations. While domestic sales growth has stagnated in the past several quarters, the company has enjoyed solid revenue growth overseas. It recently acquired two medical device companies to help rejuvenate its sales at home. Is Abbott poised for a profitable 2013? Let's use our CHEAT SHEET investing framework to decide whether Abbott is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

C = Catalysts for the Stock's Growth

Abbott announced solid second quarter earnings last week, reporting earnings per share of $0.46, which beat analysts' estimates by two cents. Sales increased by 4.2 percent from the previous year's quarter, though total revenues were slightly below the guidance the company had set out. Most notable was the growth in Abbott's sales to emerging markets, which now represent more than 40 percent of the company's revenue; these increased 13 percent on a year-over-year basis. The standouts from Abbott's second quarter were the international performance of its Nutrition and Diagnostics divisions—up 18.4 percent and 9.1 percent for the quarter on a year-over-year basis.

Emerging markets sales needed to be good to make up for lackluster domestic revenue growth in the second quarter. Out of the Nutrition, Diagnostics, and Medical Devices divisions, Diagnostics was the only one that experienced positive revenue growth. Abbott's Medical Devices division lagged the most, showing a revenue growth decrease of 5.7 percent. The company hopes to fix declining sales with two key acquisitions of medical device companies, IDev Technologies and OptiMedica, for which it paid $560 million. IDev manufactures a peripheral stent for vascular surgeries, and currently has few competitors; OptiMedica manufactures a laser system that is used in cataract surgeries. These niche plays that use developing technologies in the healthcare industry will help bolster domestic sales.

E = Earnings and Revenues are Increasing Year-over-year

Abbott Laboratories has demonstrated strong year-over-year earnings and revenue growth. Abbott reported earnings per share of $3.72 in 2012, up an impressive 23.59% from the previous year's EPS of $3.01. Additionally, revenues have shown stable growth over the past four years. Revenue growth should continue into 2014 as plant investments in emerging markets begin to impact the top line and will be improve further if Abbott's medical device acquisitions pan out as expected.

	2012-12	2011-12	2010-12	2009-12
Earnings Per Share	$3.72	$3.01	$2.96	$3.69
Earnings Growth YoY	23.59%	1.69%	-19.78%	18.27%
Revenues (in millions)	$39,874	$38,851	$35,167	$30,765
Revenue Growth YoY	2.63%	10.48%	14.31%	4.19%
Operating Margin	20.3	14.8	17.3	20.3

*Data sourced from Morningstar

T = Technicals on the Stock Chart are Solid

Abbott is currently trading at around $36.35, above both its 200-day moving average of $35.38 and its 50-day moving average of $35.84. Abbott has experienced an uptrend in the past year—up around 20 percent in the last 12 months, though slightly lagging behind the S&P 500. The 200-day moving average line has been a pervious level of support for the stock. The stock is trading around 6.6 percent below its 52-week high of $38.77, which it hit on May 22.

Conclusion

Abbott Laboratories has performed well since spinning off successful drug division into a separate company called AbbVie (NYSE:ABBV) at the beginning of the year. The company's strong emerging markets sales growth in both its Nutrition and Diagnostics divisions should continue in the medium-term. Additionally, the medical device technology that the company has recently acquired for relatively cheap should drive U.S. revenue growth back to respectable levels. With a relatively low price to equity ratio of 14.51 and a modest dividend yielding 1.6 percent, Abbott is a good value. Its investments both at home and abroad in the last year will continue to help the company generate steady revenue and earnings growth. Abbott Laboratories is an OUTPERFORM.

Is Chevron a Buy at Current Prices?

With shares of Chevron (NYSE:CVX) trading around $121, is CVX 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

Chevron engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments: upstream and downstream. The upstream segment is involved in the exploration, development, and production of crude oil and natural gas, while the downstream segment engages in refining crude oil into petroleum products. Through its segments, Chevron is able to provide a range of energy products and services to a wide variety of companies around the world. As economies and businesses expand, Chevron is poised to provide the energy products and services required to fuel growth around the world.

Chevron has obtained a tender to explore for shale gas in western Lithuania, according to the government via its Twitter feed on Tuesday. The Baltic country is attempting to free itself from dependence on gas from Russia. Chevron was the sole bidder to explore for unconventional hydrocarbons in the 1,800-square-kilometer Silute-Taurage prospect, which Lithuanian experts calculate might hold as much as 80 billion cubic meters of technically recoverable shale gas.

T = Technicals on the Stock Chart Are Mixed

Chevron stock has been trending higher over the last several quarters. The stock is currently bouncing off an upward sloping trendline, so it may continue higher. 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, Chevron is trading between its rising key averages which signal neutral price action in the near-term.

Source: Thinkorswim

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Chevron Options	18.75%	80%	79%

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
September Options	Flat	Average
October Options	Flat	Average

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

E = Earnings Are Mixed Quarter Over Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Chevron’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Chevron 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)	-27.30%	-2.57%	43.94%	-31.38%
Revenue Growth (Y-O-Y)	-8.30%	1.03%	0.95%	-9.91%
Earnings Reaction	-1.17%	1.29%	1.17%	-2.77%

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

P = Excellent Relative Performance Versus Peers and Sector

How has Chevron stock done relative to its peers – BP (NYSE:BP), Royal Dutch Shell (NYSE:RDSA), and Exxon Mobil (NYSE:XOM) — and sector?

	Chevron	BP	Royal Dutch Shell	Exxon Mobil	Sector
Year-to-Date Return	12.30%	-0.38%	-6.47%	1.46%	2.57%

Chevron has been a relative performance leader, year to date.

Conclusion

Chevron is an oil and gas bellwether that provides essential energy products and services to consumers and companies worldwide. The company recently won a bid to explore for shale gas in western Lithuania. The stock is currently bouncing off an upward sloping trendline and may continue to do so. Over the last four quarters, earnings and revenues have been mixed, which has produced mixed feelings among investors in the company. Relative to its peers and sector, Chevron has been a year-to-date performance leader. Look for Chevron to OUTPERFORM.

Canadian Stocks Touch 5-Month High as Wireless Carriers Surge

Canadian stocks rose, with the benchmark index touching its highest level since March, as the nation's largest wireless carriers rallied after Verizon Communications Inc. said it would not enter the market.

Rogers Communications Inc. (RCI/B) and Telus Corp. advanced at least 6 percent as telephone stocks surged the most in more than four years. Teck Resources Ltd. and First Quantum Minerals Ltd. added more than 1.8 percent as the price of copper climbed on signs of improving growth in China and the U.S. BlackBerry Ltd. (BB), which is weighing a sale, increased 2 percent after Microsoft Corp. agreed to acquire Nokia Oyj's handset business.

The Standard & Poor's/TSX Composite Index (SPTSX) rose 83.07 points, or 0.7 percent, to 12,736.97 at 2:05 p.m. in Toronto. The gauge earlier climbed as much as 1.4 percent to the highest since March 20. Markets were closed yesterday for a holiday in Canada.

"The 800-pound gorilla is not coming to Canada," said Irwin Michael, portfolio manager with ABC Funds in Toronto. His firm manages C$800 million ($760 million). "Clearly the fears of Verizon coming to Canada was there overhanging the market. Right now it's a knee-jerk reaction to the surprise."

Telephone stocks jumped 5.5 percent, headed for the biggest gain since November 2008, to lead six of 10 industries in the benchmark index higher. Trading volume was 16 percent lower than the 30-day average at this time of the day.

Cell-phone Stocks

Verizon said yesterday it was not going to make an acquisition in Canada. Shares of the country's existing wireless providers had slumped after the U.S. company said in June it was weighing a bid to buy Wind Mobile, the largest of three new Ontario-based carriers.

Rogers, Canada's largest wireless carrier, soared 7.8 percent to C$44.84, the highest since June. Telus gained 6 percent to C$34.66 and BCE Inc. added 4.1 percent to C$44.96.

BlackBerry advanced 2 percent to C$10.85. Microsoft agreed to buy BlackBerry rival Nokia's handset business and license its patents, casting together the lot of two technology companies trying to stay relevant against more fleet-footed rivals.

The Waterloo, Ontario-based smartphone maker said in August it has formed a special committee to explore various options for the company including a possible sale. Both Nokia and BlackBerry have lost market share to Apple Inc. and devices running Google Inc.'s Android software.

Teck Resources rose 3 percent to C$27.31 and First Quantum Minerals added 1.8 percent to C$17.87. Copper futures jumped 2.2 percent, the most in more than three weeks, as signs of improving economic growth buoyed demand prospects in China and the U.S., the world's biggest consumers of the metal.

Manufacturing Growth

Manufacturing in the U.S. expanded more than forecast in August to the fastest pace since June 2011. Data yesterday showed China's manufacturing index increased to a 16-month high in August, while other gauges showed euro-area factory output expanded at a faster pace than initially estimated in August.

Eldorado Gold Corp. increased 3.9 percent to C$9.32 and Goldcorp Inc. gained 1.7 percent to C$31.63. Gold rose 1.4 percent in New York, erasing earlier losses, as tension in the Middle East spurred demand for assets considered safe havens.

Trinidad Drilling Ltd. gained 4.1 percent to C$9.46 after entering into a joint venture with a wholly-owned subsidiary of Halliburton Co. to provide drilling rigs in Saudi Arabia and Mexico.

Gabriel Resources Ltd. (GBU) plunged 15 percent to C$1.44 as a potential referendum on a mine it is developing in Romania could delay what would be Europe's largest gold mine.

The Romanian government proposed a referendum next year on allowing the project to proceed, following a protest by thousands of people over the company's plan to use cyanide at the Rosia Montana mine. Gabriel had said it could "hopefully" receive approval by November.

At the Open: War and Policy Uncertainty Tip Stocks Lower; Apache Surges 8% on Egypt Sale

Stocks have ticked lower this morning as uncertainty surrounding an attack on Syria grew and U.S.economic data hinted at a sluggish but still recovering economy.

Agence France-Presse/Getty Images

The Dow Jones Industrials have fallen 0.2% to 14,814, while the S&P 500 has dropped 0.1% to 1,635.82. The Nasdaq Composite has dropped 0.4% to 3,605.75.

First up: Syria. The Brits have decided not to get involved; the French have decided they will support a strike. Deutsche Bank’s Jim Reid sums up where we now stand:

Newswires suggest that a US strike could occur as soon as UN inspectors leave the country on Saturday. Meanwhile, Russia is sending two warships to the east Mediterranean, Interfax news agency said on Thursday, but Moscow said it was part of a normal rotation and denied this meant it was beefing up its naval force there.

Ahead of this, the White House will release a declassified intelligence report today which details the evidence that the Syrian government used chemical weapons against civilians…US security sources and sources close to allied governments say evidence suggests that the initial decision to use chemical weapons may have been made by a field commander rather than in an order from the highest level of the Syrian government. A critical piece of the intelligence is an intercepted telephone call between Syrian military officials, one of whom seems to suggest that the chemical weapons attack was more devastating than was intended…

Economic data, meanwhile, continues to hint at a sluggish economic recovery in the U.S. Jefferies’ Thomas Simons explains:

The August MNI-Chicago Business Barometer improved modestly to 53.0 from 52.3 in July.  The index came in right on expectations as the BBG consensus call was for an improvement to 53.0. The range of estimates was 51.0 to 55.0.

A variety of recent economic indicators have suggested that the overall economy lost momentum in the first half of the year.  The manufacturing sector specifically had been treading water before this loss of overall momentum.  Some recent manufacturing indicators (including this report) have shown some signs of breaking out of the doldrums, but the improvement has been erratic.  We are optimistic about a recovery in the manufacturing sector in the second half of the year, but the path to growth will not be free of bumps.

When forced with a choice between the chance of war and monetary policy, Barclays Michael Gavin tells investors that their focus should be on monetary policy. In a note today, he writes:

War Trumps Economic Data: Dow Falls 125 Points, S&P Drops 1%; Hi-Tech Pharmacal Gains 20% on Akorn Buyout

Yesterday, the market rose early despite bad news. Today, stocks are ignoring the good news as they selloff in response to a potential U.S. attack on Syria.

Reuters

The Dow Jones Industrials have dropped 126 points, or 0.8%, to 14,805 today, while the S&P 500 has fallen 1.2% to 1,636.70. The Nasdaq Composite is off 1.7% to 3596.70.

It’s not as if there hasn’t been good news. The Richmond Fed Index, for instance, rose to 14, from minus 11 last month and well above forecasts.  Consumer confidence, meanwhile, rose to 81.5 in August, above forecasts for a drop to 79.1.

But no. It’s all about the potential for airstrikes in Syria. Reuters is reporting that an attack might be imminent:

Western powers could attack Syria within days, envoys from the United States and its allies have told rebels fighting President Bashar al-Assad, sources who attended the meeting told Reuters on Tuesday.

U.S. forces in the region are “ready to go”, Defense Secretary Chuck Hagel said, as Washington and its European and Middle Eastern partners honed plans to punish Assad for a major poison gas attack last week that killed hundreds of civilians.

Investors, however, can take comfort from the fact that markets have, on average, risen following the beginning of conflicts, according to Ned Davis Research. Some 126 days after the statr of Desert Storm, for instance, the Dow Jones Industrials gained 18.7%.

Boston Scientific (BSX) has dropped 4.2% to $10.81, making it the second-biggest loser in the S&P 500, while Zions Bancorp (ZION) has fallen 4.1% to $28.03.

Still, some stocks are bucking the trend. Goodyear Tire & Rubber (GT) has gained 1.4% to $18.90, the largest gainer in the S&P 500, after reaching a deal with a union. The real winners: Hi-Tech Pharmacal (HITK) has gained 22.3% to $43.05 after agreeing to be purchased by Akorn (AKRX), which has jumped 9.6% to $18.02.