Utility Sector Rises; Elizabeth Arden Shares Slide Over 3.6%

Related EDN Micron Gains On Upbeat Earnings; Elizabeth Arden Shares Slide Mid-Morning Market Update: Markets Mostly Higher; Walgreen Profit Misses Estimates

Approaching the last hour of trading on Tuesday, the Dow traded down 0.43 percent to 16,864.02 while the NASDAQ gained 0.10 percent to 4,392.94. The S&P dipped down 0.31 percent to 1,956.56.

Leading and Lagging Sectors

Utilities shares rose around 0.45 percent in trading on Tuesday. Meanwhile, top gainers in the sector included Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN), up 4.7 percent, and Korea Electric Power (NYSE: KEP), up 3.9 percent.

Basic materials sector was the top loser in the US market on Tuesday. Top decliners in the sector included Kraton Performance Polymers (NYSE: KRA), Molycorp (NYSE: MCP), and AuRico Gold (NYSE: AUQ).

Top Headline

Walgreen Co (NYSE: WAG) reported weaker-than-expected fiscal third-quarter earnings.

Walgreen’s quarterly profit increased to $722 million, or $0.75 per share, from a year-earlier profit of $624 million, or $0.65 per share. Its adjusted earnings gained to $0.91 from $0.85 per share.

Its net sales surged 5.9% to $19.40 billion from $18.31 billion. However, analysts were projecting earnings of $0.94 per share on sales of $19.49 billion.

Equities Trading UP

Vertex Pharmaceuticals (NASDAQ: VRTX) shares shot up 41.12 percent to $94.00 after the company reported that its two phase 3 studies of Lumacaftor in combination with ivacaftor met the primary endpoint.

Shares of Wix.com (NASDAQ: WIX) got a boost, shooting up 9.96 percent to $19.54 after the company announced that it had surpassed 50 million registered users worldwide.

Micron Technology (NASDAQ: MU) shares were also up, gaining 4.64 percent to $32.71 after the company reported better-than-expected fiscal third-quarter earnings. Micron posted its adjusted earnings of $0.79 per share, beating analysts’ estimates of $0.69 per share.

Equities Trading DOWN

Shares of Elizabeth Arden (NASDAQ: RDEN) were down 3.67 percent to $27.26 on restructuring news. The company announced its plans to reduce jobs and exit some retail doors. It also announced the closing of its Puerto Rico affiliate.

Walgreen Co (NYSE: WAG) shares fell 0.71 percent to $73.21 after the company reported weaker-than-expected fiscal third-quarter earnings.

Carnival (NYSE: CCL) was down, falling 1.73 percent to $38.73 after the company reported its Q2 earnings of $0.10 per share and raised its forecast.

Commodities

In commodity news, oil traded down 0.40 percent to $105.75, while gold traded up 0.24 percent to $1,321.60.

Silver traded up 0.45 percent Tuesday to $21.01, while copper rose 0.03 percent to $3.15.

Eurozone

European shares were mostly lower today.

The eurozone’s STOXX 600 declined 0.12 percent, the Spanish Ibex Index dropped 0.05 percent, while Italy’s FTSE MIB Index fell 0.28 percent.

Meanwhile, the German DAX rose 0.20 percent and the French CAC 40 gained 0.06 percent while UK shares slipped 0.10 percent.

Economics

The ICSC–Goldman Sachs store sales index gained 2% in the week ended Saturday versus the earlier week.

The Johnson Redbook retail sales index declined 1.7% in the first weeks of June versus May.

The FHFA house price index remained unchanged in April, versus economists’ expectations for a 0.50% growth.

US home prices increased 1.1% in April versus March, according to S&P/Case-Shiller's composite index. After seasonal adjustments, US home prices gained 0.2% in April. The S&P/Case-Shiller home price index rose to a reading of 168.71 in April, versus a prior reading of 166.80. However, economists were expecting a reading of 169.09.

Sales of new US homes rose at an annual rate of 504,000 in May, versus economists’ expectations for a 439,000 gain.

The Conference Board's consumer confidence index rose to 85.20 in June, versus a previous reading of 83.00. However, economists were expecting a reading of 83.50.

The Richmond Fed manufacturing index fell to 3.00 in June, versus a prior reading of 7.00. However, economists were expecting a reading of 7.00.

Posted-In: Earnings News Emerging Markets Eurozone Futures Economics Intraday Update Markets Movers Tech

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

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21 states raising minimum wage on January 1

  The faces of minimum wage NEW YORK (CNNMoney) The New Year will start well for over 3 million workers -- they're getting a raise.

Employers in 21 states and Washington D.C. will hike their minimum wages on January 1.

This has been a huge year for low wage workers. Sparked by a wave of fast food and retail worker protests, more than a dozen states like Alaska, South Dakota and Nebraska and many cities such Seattle and Oakland have jumped on the momentum and passed new laws to raise the minimum wage.

"We've seen a historic number of states increasing their minimum wages," said David Cooper, an economist at the Economic Policy Institute, which researches minimum wage issues. "People's understanding of where the wage floor should be has changed a lot, and in part caused by strikes and protests."

It could certainly be a big day for Wayne Davis, who earns $8.25 an hour at McDonald's (MCD) in Tampa, Florida. Davis earns 20 cents more than Florida's new minimum wage of $8.05. But workers across the board are likely see a pay bump, labor experts say.

"It's stressful having to live off of minimum wage," said 19-year-old Davis, who is hoping that he can help out his grandma, with whom he lives. Already, he pitches in $500 a month for household bills and is expecting his expenses to go up when he enrolls at the University of South Florida in January.

In 2015, a majority of states -- 29 -- will have a higher minimum wage than the federal wage, which is $7.25 an hour.

The city and state-led reforms are mounting pressure on Congress to raise the federal minimum wage, but the needle hasn't moved much there. Still, wages will likely remain a heated topic as the country enters the 2016 election cycle.

West Coast cities led the push for higher wages this year, breaking the $15 an hour barrier for the first time. Seattle and San Francisco passed $15 wage laws, while Los Angeles announced a significant wage hike too.

San Diego will raise its wage on New Year's Day from $9 to $9.75 an hour with further increases in following years.

The debate next year will focus on how these cities are impacted by the wage increases. Critics say it will take! away jobs while advocates argue that workers will be able to spend more money.

"It certainly has been a long time since we've seen a big day like this," says Chris Tilly, a wage expert and professor at University of California, Los Angeles. "People are concerned about inequality. This is a reform that targets inequality."

Automakers Take March By Storm as Sales Surge

Joe Raedle/Getty Images DETROIT -- U.S. auto sales went out like a lion in March. Automakers said Tuesday that new car and truck sales picked up speed halfway through the month, culminating in a strong final weekend. Toyota (TM) dealers had their two best sales weekends of the year at the end of the month, the company said. "We're optimistic that momentum will spring us into April," said Bill Fay, who manages the Toyota division in the U.S. Industry sales rose 6 percent to 1.5 million vehicles, far outpacing analyst expectations. The sales pace was the fastest since November, according to Autodata Corp. March sales helped rescue what was otherwise a disappointing first quarter. Analysts had predicted flat growth for the first three months of this year after harsh weather in January and February hurt sales. But March helped pull first quarter sales up 1.4 percent. The month saw some big gainers. Chrysler's sales rose 13 percent on demand for Ram pickups and the new Jeep Cherokee SUV. Subaru's sales were up 21 percent; its new Forester SUV jumped 53 percent to nearly 14,000. Toyota's sales rose 5 percent. Sales of the Prius hybrid fell 16 percent, as stable gas prices caused consumer interest in efficient vehicles to wane. But demand for its pickups and SUVs was strong. General Motors' (GM) sales were up 4 percent despite a series of safety recalls of older model vehicles. Buick saw double-digit gains because of its new Encore SUV, and sales of the Chevrolet Silverado pickup rose 7 percent. Jessica Caldwell, a senior analyst with the car shopping site Edmunds.com, said buyer consideration for GM brands on Edmunds' Web site has remained steady despite the recall crisis, which is currently the subject of several federal investigations. "Shoppers still see it as a trusted brand," she said. Nissan's sales were up 8 percent. Ford's (F) rose 3 percent, with a 5-percent gain for the F-Series pickup compensating for lower car sales. Volkswagen's sales fell 3 percent, while Hyundai and Honda (HMC) both saw 2 percent declines. All three rely more heavily on sales of cars, which were outsold by trucks and SUVs in March. While first quarter sales topped expectations, they didn't grow as quickly as last year, when the industry saw a 6 percent sales increase in the same three-month period. Jesse Toprak, the chief analyst for the car-buying site Cars.com, said the fundamentals that helped autos rebound from the recession remain the same. Low interest rates, declining unemployment and attractive new vehicles will continue to bring buyers into showrooms. But they won't be buying at the same pace. Since 2010, U.S. sales have grown an average of 10 percent each year, but they're now reaching a natural peak, he said. "We are certainly transitioning from a market that was in hyper-recovery mode to a mature market where double-digit gains will be increasingly difficult to attain," Toprak said. Based on the first quarter, Toprak lowered his full-year U.S. sales forecast to 16.1 million vehicles from 16.5 million. The industry sold 15.6 million cars and trucks in 2013. LMC Automotive, a data firm, also lowered its annual sales forecast, to 16.1 million vehicles from 16.2 million. Others said improving weather and increases in incentives should boost sales as spring progresses. Weaker-than-expected sales in January and February caused cars to pile up on dealer lots, and automakers will likely offer more deals to get them sold. "The momentum built in March should set the market up for a big month in April," said Alec Gutierrez, a senior analyst with Kelley Blue Book.

How to connect with the fastest-growing client demographic

Financial advisers seeking to build relationships with the fastest growing demographic in America just need to reach out and connect with it.

The Hispanic community has a significant unmet need for financial advisory services, has been historically underserved by advisers — thanks to a handful of common misconceptions — and would be very receptive to financial advice if only advisers reached out, according to a study by Prudential Financial Inc.

The Hispanic population is expected to grow 167% by 2050. More so than other groups, Hispanics stand to benefit substantially from financial advisory services. For example, Hispanic households with incomes above $75,000 accumulate only half the assets of others in that income bracket, according to Tanya Valle, vice president of global communications for Prudential, who moderated a webcast on the study results Wednesday. Some reasons for this include saving more than investing, spending on family needs and, for some, lacking knowledge of financial options.

Textron: Buy the Rumor, Buy the News

Invetsors in Textron (TXT) decided to buy the rumor and buy the news.

for The Wall Street Journal

The rumor, in this case, was that Textron would buy Beechcraft, which was first reported last week–and shares of Textron gained 14%. The news today that the rumor was indeed true, however, hasn’t prevented Textron’s shares from staying aloft.

The Wall Street Journal has the details:

Textron Inc. agreed to pay $1.4 billion to acquire Beechcraft Corp., a deal that would combine the small U.S. plane maker into an industrial conglomerate that also produces Cessna planes and Bell helicopters.

The planned acquisition comes 10 months after Beechcraft exited Chapter 11 bankruptcy protection under the control of several hedge funds that converted their debt into equity, including Bain Capital’s Sankaty Advisors, Angelo Gordon & Co. and Centerbridge Partners. The bankruptcy filing last year was prompted by a prolonged slump in sales and a heavy debt load following a leveraged buyout in 2007.

The deal unites two of the best-known makers of small business aircraft, demand for which collapsed in the global recession. Textron’s Cessna unit and Beechcraft, both based in Wichita, Kan., each have made deep job cuts and shrunk production in recent years in response to the slump.

Textron also held a conference call, where it said that it would miss its earnings forecast for $1.75 to $1.85 a share.

Citigroup’s Jason Gursky explains why he has kept Textron rated Neutral:

Company expects 20c of 2014 annualized accretion from the addition of the business, including $65m of synergies. This excludes one-time charges of ~35c in 2014. Accretion is expected to increase to 25-30c in 2015 as synergies ramp to $75-85m coupled with limited growth in the underlying portfolio. This is relatively in line with our conservative estimate of ~20c of EPS accretion in 2015.

Although accretion levels are in line with our expectations, they're more dependent on  synergies than our initial analysis assumed. We had assumed 200 bps of synergies to arrive at our 20c estimate, while TXT appears to be baking in ~400 bps of synergies in the out-years. This implies weaker underlying Beechcraft margins…

Despite potential accretion of 25-30c outlined below, we're still on the sidelines given continued pressure in the bizjet & general aviation markets.

Shares of Textron have gained 1.2% to $36.63 at 1:09 p.m., while Embraer (ERJ) has risen 0.5% to $32.30, Triumph Group (TGI) has advanced 0.2% to $75.73 and Spirit AeroSystems (SPR) is off 0.8% at $33.90.

WMT – Watch Out For a Falling Stock Price at Wal-Mart

Popular Posts: 3 mREIT Dividend Kings to WatchAvoid Big Financial Stocks … Except Wells Fargo2 Rock-Solid Stocks Rising to the Top Recent Posts: WMT – Watch Out For a Falling Stock Price at Wal-Mart CSCO – Cisco a Risky Long-Term Holding Ask Louis: What Is Your Favorite Sector Right Now? View All Posts

Welcome to the Stock of the Day!

Everyone knows Wal-Mart (WMT) for its “Every Day Low Prices,” but shareholders didn’t bargain for a Q3 earnings report that would also send share prices tumbling. But with Black Friday just around the corner and the stock going ex-dividend next month, could this pullback be a buying opportunity?

Let’s talk about it right now.

Company Overview

Even though it started as a mom-and-pop operation in 1962, Wal-Mart has since grown into the largest public corporation by revenue. Although it is best known for its Walmart brand name, Wal-Mart is actually responsible for 55 brands of discount department stores across 27 countries. Wal-Mart has the largest private workforce in the world; it employs over 2.2 million individuals across more than 10,800 locations worldwide.

Earnings Buzz

Wal-Mart reported mixed results for the third quarter. On the one hand, net sales climbed 1.7% year-over-year to $115.69 billion. However, analysts had forecast sales of $116.84 billion, so Wal-Mart posted a minor sales miss. A competitive retail environment and unfavorable currency exchange rates weighed on sales both home and abroad.

Meanwhile, net income inched up 3% to $3.74 billion, or $1.14 per share. This topped the $1.13 consensus earnings estimate. However, Walmart management slashed its full-year earnings guidance to a range of $5.01 to $5.11 per share. This is well below the Street view of $5.20 per share.

Industry Breakdown

Of the 24 companies in the Discount Variety Stores industry, Wal-Mart is the largest in terms of market cap. The company also stands out in terms of its 2.4% dividend yield, which is third highest in the industry. In terms of earnings growth and return on equity, Wal-Mart ranks in the top 10. But when it comes to sales growth and long-term growth rate, Wal-Mart falls in the middle of the pack.

Wal-Mart’s main competitors are Costco (COST) and Target (TGT); currently, COST pulls of the highest rating as a C-rated hold. Meanwhile, TGT and WMT are both downright sells. I’ll discuss what is up with Wal-Mart shortly, but Target has a mixed earnings surprises track record (it has missed the bulls eye for two of the past three quarters) and is suffering from anemic sales and earnings growth. Institutional investors have caught onto this, so buying pressure could hardly be weaker for TGT (or for WMT, for that matter).

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. Institutional buying pressure for WMT has eroded lately–as shown by its F-rated Quantitative Grade. This is very important because it suggests that WMT has a poor risk-to-return ratio. And on the fundamentals side, there is ample room for improvement.

Currently, Wal-Mart receives C- and D-ratings for six of the eight metrics I graded it on, including sales growth and earnings growth. The exceptions are its A-rated return on equity and its B-rated cash flow. So WMT receives a C for its Fundamental Grade.

Bottom Line

As of this posting, November 15, I consider WMT a D-rated Sell.

Would you like to check the fundamentals backing up one of your stocks? For more stock grades, please visit my Portfolio Grader website!

 

 

AT&T Partners Up with America Movil to Expand Latin American Presence (T)

Wireless provider AT&T Inc. (T) announced on Wednesday that it has agreed to collaborate with Mexico-based America Movil in order to expand its Latin American connectivity.

With this partnership, AT&T will be able to provide services in 15 countries in Latin America. Previously, AT&T only had presence in Mexico and Brazil.

AT&T currently holds a 9% stake in America Movil and has executives on its board of directors. The two companies have had a long standing business relationship.

AT&T shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.

Is Viad Corp's Cash Machine Shutting Down?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Viad Corp (NYSE: VVI  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Viad Corp generated $32.4 million cash while it booked net income of $12.9 million. That means it turned 3.1% of its revenue into FCF. That sounds OK.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Viad Corp look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 49.2% of operating cash flow coming from questionable sources, Viad Corp investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 32.9% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 46.8% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Looking for alternatives to Viad Corp? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Viad Corp to My Watchlist.

Reviewing Little-Known IRA Traps

IRAs seem to be simple things when we open them and begin annual contributions. Over time, as we move from the accumulation years, trickier rules kick in. This is where many people inadvertently lose portions of their nest eggs to taxes and penalties. Others simply miss opportunities they didn’t know were available. Here’s a review of some opportunities to consider and traps to avoid.

Establish a Roth for a youngster. A child or grandchild who worked over the summer or part-time during the year could use some encouragement and a bonus. You can contribute to a Roth IRA for the child as a gift. In 2013 you can contribute up to the lower of $5,500 or what the youngster earned from working. (Investment income doesn’t count.) This amount will be a gift that qualifies for the annual gift tax exclusion of $14,000.

The Roth IRA, even if you make only one contribution, can compound over the years to provide a nice foundation for retirement. Then, money can be withdrawn tax-free. Or, the youngster can withdraw the contributions tax-free any time, such as to pay for college or use as a down payment for the first home.

Check your IRA custodial agreement. Your IRA is supposed to be protected from creditors under the bankruptcy law. But the protection doesn’t apply if you committed a prohibited transaction. Many people are inadvertently committing prohibited transactions with their IRAs that void the bankruptcy protection, according to a recent court decision.

Here’s how a technicality can cause trouble for an IRA. The IRA owner opened an IRA with a major brokerage firm. He had no other accounts at the broker and didn’t intend to use margin lending in any account, but he didn’t check the box on the application to decline margin lending that was standard with that custodian. The agreement also provided for cross-collateralization, meaning that if he took out a margin loan and couldn’t pay it from other assets, the IRA could be used to pay the loan. This, according to the court, amounted to pledging the IRA to back a loan, which is a prohibited transaction.

He eventually won on an appeal, where the court ruled there isn’t a prohibited transaction unless a loan actually takes place. But it was a long, expensive process, and there’s no guarantee other courts will rule the same way. To be safe, you should avoid any IRA agreements that provide for cross-collateralization of loans. Many IRA custodians are in the process of removing such language from their documents.

The IRS is monitoring contributions and distributions. A congressional research report found that many IRA owners are violating either the contribution limits or required minimum distribution rules. The IRS could generate a lot of money in taxes and penalties by more closely enforcing the rules. So, you have to be sure you don’t contribute too much to IRAs during the year and that you withdraw the right amounts.

Of special interest to my readers are the required minimum distributions rules after age 70½. The investigation found that a lot of people don’t take the required minimum each year. The penalty for that is 50% of the amount you should have withdrawn but didn’t. For a refresher on how to calculate your RMD and the deadlines, see back issues of Retirement Watch or IRS Publication 590.

Inherited IRAs. Be sure your heirs have good information about how to handle an inherited IRA, because the rules can become very tricky.

For example, when an heir decides to move an inherited IRA to a different custodian, the rollover must be directly from one trustee to another. With other IRAs, you can receive a check from the IRA custodian and take up to 60 days to deposit the same amount with the new custodian. But the 60-day rule doesn’t apply to inherited IRAs. If it’s not a trustee-to-trustee transfer, the entire amount is treated as a distribution even if you deposit it in a new IRA within 60 days.

Also, September 30 of the year after the original owner’s passing is an important date. By then, the IRA custodian needs to be notified who the beneficiaries are and who is the “designated beneficiary,” whose age is used to determine required distributions.  Also, if a non-individual, such as a charity, a trust, or the estate, was named as a co-beneficiary, the entire IRA must be emptied within five years. But if that beneficiary is paid its full share by the Sept. 30 deadline, it no longer will be a beneficiary. Required distributions then are scheduled over the life expectancy of the oldest beneficiary.

There are a host of other things heirs need to know about inherited IRAs. I compiled them in my report, Bob Carlson’s Guide to Inheriting IRAs. You can read more about it by going to www.RetirementWatch.com and clicking on the Bob’s Library tab.

Why Ultra Petroleum Corp. (UPL) Stock Was Down 10% Today

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 Ultra Petroleum  (NYSE: UPL  ) , an independent U.S. producer of oil and natural gas, fell $1.71 today, good for almost an 11% loss. The stock is down almost 40% since Nov. 1, and more than 52% since oil prices peaked in mid-June: 

UPL data by YCharts

However, today's big drop was driven by falling natural gas prices. The Henry Hub spot price for wholesale natural gas fell more than 9% to $3.144 today, approaching a two-year low. 

So what: Natural gas is Ultra Petroleum's biggest business, making up more than 90% of production, and nearly three-fourths of total sales. While Ultra is one of the lowest-cost producers, and should be able to weather these low prices, the market's reaction is to the so-far unseasonably warm winter, which has resulted in much lower use of natural gas for heating than anticipated. In short, some are fearing a market oversupply.

Now what: The domestic reserves of natural gas ready for use are about where they were last year, and it's still the very early stages of winter, and most meteorological forecasts predict cold weather in January and February, so the bear market on gas could very well reverse course in just a few weeks' time. Furthermore, it looks like the stock market is potentially overreacting to the daily spot price movement of gas, considering that Ultra operates a pretty extensive hedging program to protect itself from these kinds of drops. 

Most importantly, Ultra Petroleum is one of the best operators in the industry, and there's a good chance that its stock is getting driven down well below what is probably fair value for a great company. Patient investors with a long-term outlook would do well to consider opening or adding to their position at this price.

Don't get me wrong: The stock could get pushed further down in the short-term, but the long-term tailwinds for natural gas demand, and the company's solid operational position and leadership make it a great bet for long-term outperformance. 

The backdoor investment into "Oil Boom 2.0"
A single, under-the-radar company has its hands tightly wrapped around both the hydraulic fracturing technology and know-how that has allowed this shale boom to take off in the first place. The Motley Fool just completed a brand-new investigative report on this significant investment topic and the company helping fuel its boom. Simply click here for access.

How to Maximize the Retirement Saver's Tax Credit

What must my income be to qualify for the retirement savers tax credit? Do I need to max out my IRA to get the full credit?

SEE ALSO: Are You Saving Enough for Retirement?

For 2014, you can qualify for the retirement saver's credit if your adjusted gross income is $60,000 or less if married filing jointly, $45,000 or less if filing as head of household, or $30,000 or less if you're a single filer. The lower your income, the larger the credit you can take. And you don't need to max out your IRA to get the maximum credit.

The credit is a frequently overlooked way to get a bonus for contributing to a retirement savings plan. Contributions to a traditional or Roth IRA, 401(k), 457, 403(b) or other retirement-savings plan count. You claim it when you do your 2014 tax return. The credit is worth 10%, 20% or 50% of your contribution, up to a maximum credit of $1,000 per person or $2,000 per couple.

The credit can be worth 50% of your contribution, for example, if you're married filing jointly and your joint income is $36,000 or less -- so you'd get a $2,000 credit if you each make at least $2,000 in contributions. The credit is worth 20% of your contribution if you earn $36,001 to $39,000 -- resulting in an $800 credit if you each make at least $2,000 in contributions. And you can get a 10% credit if you earn $39,001 to $60,000 -- getting a $400 credit if you each make at least $2,000 in contributions. You can't take the credit if your joint income is more than $60,000. See the IRS factsheet for a table showing the income cutoffs for each type of filer.

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Pre-tax contributions to 401(k)s, 403(b)s, 457s and other retirement-savings plans, and tax-deductible contributions to a traditional IRA, can lower your adjusted gross income and could help you qualify for the credit.

The income limits rise slightly in 2015, when you can qualify for the credit if your income is less than $30,500 if single, $45,750 if head of household, and $61,000 if married filing jointly.

To qualify for the credit, you must be 18 or older, not a full-time student and not claimed as a dependent on another person's tax return.

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

4 Stocks Rising on Unusual Volume

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. 


Must Read: 12 Stocks Warren Buffett Loves in 2014




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.



With that in mind, let's take a look at several stocks rising on unusual volume recently.

Must Read: 10 Stocks George Soros Is Buying

ProShares UltraShort Nasdaq Biotech

ProShares UltraShort Nasdaq Biotech (BIS) seeks daily investment results, before fees and expenses, that correspond to twice the daily performance of the Nasdaq Biotechnology Index. This stock closed up 4% to $13.50 in Monday's trading session.

Monday's Volume: 1.07 million

Three-Month Average Volume: 482,072

Volume % Change: 145%

From a technical perspective, BIS ripped higher here right off its 50-day moving average of $12.70 with strong upside volume flows. This move pushed shares of BIS into breakout territory, since it took out some near-term overhead resistance levels at $12.82 to $13.10. Market players should now look for a continuation move to the upside in the short-term if BIS manages to clear Monday's intraday high of $13.63 with high volume.

Traders should now look for long-biased trades in BIS as long as it's trending above its 50-day at $12.70 and then once it sustains a move or close above $13.63 with volume that hits near or above 482,072 shares. If that breakout triggers soon, then BIS will set up to re-test or possibly take out its next major overhead resistance levels at $15.03 to $15.80, or even $17.

Must Read: Warren Buffett's Top 10 Dividend Stocks

Quidel

Quidel (QDEL) develops, manufactures and markets diagnostic testing solutions for applications in infectious diseases, women's health and gastrointestinal diseases. This stock closed up 5% at $27.07 in Monday's trading session.

Monday's Volume: 338,000

Three-Month Average Volume: 187,600

Volume % Change: 85%

From a technical perspective, QDEL spiked sharply higher here right above its 200-day moving average of $25.40 with above-average volume. This stock has been uptrending for the last three months, with shares moving higher from its low of $20.65 to its recent high of $28.24. During that uptrend, shares of QDEL have been making mostly higher lows and higher highs, which is bullish technical price action. This move higher on Monday is now starting to push shares of QDEL within range of triggering a big breakout trade. That trade will hit if QDEL manages to take out Monday's intraday high of $27.24 to some more key overhead resistance levels at $28.24 to $29.73 with high volume.

Traders should now look for long-biased trades in QDEL as long as it's trending above its 200-day at $25.40 or above its 50-day at $24.99 and then once it sustains a move or close above those breakout levels with volume that hits near or above 187,600 shares. If that breakout gets underway soon, then QDEL will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $32.24.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

Global Power Equipment Group

Global Power Equipment Group (GLPW) provides customer-engineered equipment, and modification and maintenance services primarily in the U.S., Canada, Europe, Mexico, Asia, the Middle East and South America. This stock closed up 4.4% to $11.72 in Monday's trading session.

Monday's Volume: 200,000

Three-Month Average Volume: 76,412

Volume % Change: 188%

From a technical perspective, GLPW bounced notably higher here after it made a new 52-week low of $10.96 with above-average volume. This stock has been downtrending badly for the last month and change, with shares falling sharply from its high of $17.58 to its new 52-week low of $10.96. During that downtrend, shares of GLPW have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GLPW have now entered oversold territory, since its current relative strength index reading is around 22. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.

Traders should now look for long-biased trades in GLPW as long as it's trending above its new 52-week low of $10.96 and then once it sustains a move or close above Monday's intraday high of $11.75 with volume that hits near or above 76,412 shares. If that move gets started soon, then GLPW will set up to re-test or possibly take out its next major overhead resistance levels at around $13.50 to $14, or even $15.

Must Read: Sell These 5 Toxic Stocks Before the Next Drop

Fiesta Restaurant Group

Fiesta Restaurant Group (FRGI), through its subsidiaries, owns, operates, and franchises fast-casual restaurants. It operates its fast-casual restaurants under the Pollo Tropical and Taco Cabana brand names. This stock closed up 1% at $50.50 in Monday's trading session.

Monday's Volume: 351,000

Three-Month Average Volume: 247,148

Volume % Change: 50%

From a technical perspective, FRGI bounced modestly higher here right off its 50-day moving average of $49.20 with above-average volume. This stock recently formed a double bottom chart pattern $48.20 to $48.08. Following that bottom, shares of FRGI have now started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if FRGI manages to take out Monday's intraday high of $51.17 to some more key overhead resistance levels at $52.48 to its all-time high at $53.08 with high volume.

Traders should now look for long-biased trades in FRGI as long as it's trending above its 50-day at $49.20 or above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that this near or above 247,148 shares. If that breakout gets set off soon, then FRGI will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

Must Read: 4 Defensive Stock Trades to Protect Your Portfolio

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 Short-Squeeze Stocks Set to Soar on Bullish Earnings

>>Must-See Charts: 5 Big Stocks to Trade for Big Gains

>>3 Big Stocks to Buy in a Volatile Market

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.

Gilead Sciences, Inc. Gets Some Competition (but Not Really)

So much for the potential price war in the hepatitis C market. For now, at least.

AbbVie (NYSE: ABBV  ) gained Food and Drug Administration approval for its new hepatitis C cocktail, dubbed Viekira Pak, on Friday, and priced the regimen at $83,319 for the 12-week regimen. You'll recall that Gilead Sciences' (NASDAQ: GILD  ) Harvoni is priced at $94,500 for a 12-week regimen.

But you said there wasn't a pricing war? $94,500 is quite a bit more than $83,319.
Some patients only have to take Harvoni for eight weeks. Since the drug is priced per pill, the cost to treat those patients is only $63,000, substantially less than Viekira Pak. If you take Gilead's estimation that about 45% of patients are eligible for the eight-week course, the average price for insurers is around $80,000, about the same cost as Viekira Pak.

Coincidence? I doubt it. AbbVie has always maintained that it didn't plan to compete on price.

Insurers could require patients eligible for eight-week Harvoni treatments to take Harvoni, and those who would take 12-week Harvoni to take Viekira Pak. If they did that, however, Gilead would just jack up the price of Harvoni so the eight-week treatment was around $80,000.

Can AbbVie win this game?
With cure rates in the mid-90% range for both regimens, it's hard to see doctors choosing Viekira Pak, which requires up to four pills in the morning and two in the evening, over Harvoni, which only requires one pill a day.

Drug compliance is a big issue, and it's certainly easier to take one pill than six. In fact, insurers might be willing to pay extra for Harvoni if they're convinced that the real-world cure rate is higher than Viekira Pak, reducing the number of patients requiring retreatment. We'll have to wait a little while for real-world efficacy, which tends to be lower than the efficacy seen in clinical-trials because clinical trials enroll patients who are more motivated to cure their disease.

The one place where AbbVie might be able to make inroads is in patients with cirrhosis of the liver who have failed previous treatment. Harvoni's label recommends that those patients receive 24 weeks of treatment, while Viekira Pak's label says that all treatment-experienced patients infected with genotype 1b virus, and some treatment-experienced patients infected with genotype 1a virus only, have to take Viekira Pak for 12 weeks.

Gilead is likely offering discounts to insurers for patients who have to take Harvoni for 24 weeks, so there may not be much of a financial benefit for insurers if they require Viekira Pak over Harvoni for patients with cirrhosis of the liver who have failed previous treatment. But from a compliance perspective, doctors may feel the trade-off of six versus one pill justifies not having to remember to take your pills for an additional three months. And patients may see a financial benefit from fewer copays.

Sticker price
Like the sticker price on a car, the list price for drugs is just a starting point for negotiations with insurers. IMS Health estimates that global sales grew by $194 billion from 2009-2013, but off-invoice rebates and discounts increased by $63 billion, tampering net growth by 32%.

AbbVie might have the advantage here since it has a larger arsenal of drugs to offer discounts on than Gilead does. We could see -- or not see, because discounts aren't really transparent to investors -- AbbVie bundling pricing of its megablockbuster Humira with Viekira Pak to get favorable insurance coverage.

Keep in mind that all of this is fluid. While AbbVie isn't willing to compete on price right now, if it has trouble gaining market share, the company can always discount Viekira Pak down the road.

This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.

10 Insurance Stocks to Sell Now

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This week, the ratings of 10 insurance stocks on Portfolio Grader are down. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Axis Capital Holdings Limited’s (AXS) rating falls to a D (“sell”) this week, down from C (“hold”) the week prior. Axis Capital Holdings provides various insurance and reinsurance products to worldwide operations. To get an in-depth look at AXS, get Portfolio Grader’s complete analysis of AXS stock.

Meadowbrook Insurance Group, Inc. (MIG) earns an F (“strong sell”) this week, moving down from last week’s grade of D (“sell”). Meadowbrook Insurance Group provides alternative risk management programs and services. The stock gets F’s in Earnings Revisions, Cash Flow and Sales Growth. For more information, get Portfolio Grader’s complete analysis of MIG stock.

Crawford & Company Class B (CRD.B) earns a D this week, falling from last week’s grade of C. Crawford & Company is an independent provider of claims management solutions to insurance companies and self-insured entities. To get an in-depth look at CRD.B, get Portfolio Grader’s complete analysis of CRD.B stock.

State Auto Financial Corporation (STFC) gets weaker ratings this week as last week’s C drops to a D. State Auto Financial is a property and casualty insurance company engaged in writing personal and business lines of insurance. The stock also gets an F in Earnings Momentum. For more information, get Portfolio Grader’s complete analysis of STFC stock.

Erie Indemnity Company Class A (ERIE) earns an F this week, moving down from last week’s grade of D. Erie Indemnity is involved in the property/casualty insurance business. The stock also gets an F in Earnings Surprise. To get an in-depth look at ERIE, get Portfolio Grader’s complete analysis of ERIE stock.

Progressive Corporation (PGR) is having a tough week. The company’s rating falls from a D to an F. Progressive is an insurance holding company that offers primarily personal and commercial automobile insurance, in addition to other property-casualty insurance products. For more information, get Portfolio Grader’s complete analysis of PGR stock.

This week, Aspen Insurance Holdings Limited (AHL) drops from a C to a D rating. Aspen Insurance Holdings provides insurance and reinsurance solutions worldwide. To get an in-depth look at AHL, get Portfolio Grader’s complete analysis of AHL stock.

The rating of Validus Holdings, Ltd. (VR) declines this week from a C to a D. Validus Holdings provides reinsurance and insurance coverage in the property and marine markets. The stock also rates an F in Earnings Surprise. For more information, get Portfolio Grader’s complete analysis of VR stock.

This week, Cincinnati Financial Corporation (CINF) drops from a D to an F rating. Cincinnati Financial markets property casualty insurance through independent insurance agents. The stock gets F’s in Earnings Momentum and Earnings Revisions. To get an in-depth look at CINF, get Portfolio Grader’s complete analysis of CINF stock.

The rating of OneBeacon Insurance Group, Ltd. Class A (OB) declines this week from a C to a D. OneBeacon Insurance Group offers specialized insurance products and services. The stock also gets an F in Sales Growth. Shares of the stock are changing hands at twice the rate they were a week ago. For more information, get Portfolio Grader’s complete analysis of OB stock.

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

Soybeans End Day Lower, Soybean Oil Ends Higher

March Soybean futures ended Friday's choppy trading session recovering some early losses and settled down 4¾ cents at $1038½.

March Soymeal Futures closed down 1.9 at $352. March Soybean Oil ended the session 0.08 higher at $32.16.

Front month January Soybeans ended the day at $1030½, down 4½ cents. July Soybeans closed at $1052, down 4 cents.

Posted-In: Futures Commodities Markets

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

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4 Utilities Stocks Powered by Solid Fundamentals

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The Dow Jones Industrial Average hit its tenth record closing high of the year — and fifth in a row — while the S&P 500 ventured into uncharted territory when it hit new highs on June 5 that were above its record close. Looks like records were made to be broken.

It will seemingly take a lot to break the current rally, as the market only bent under the weight of political unrest in Iraq and the resulting higher oil prices yesterday. And stocks also largely shook off the disappointment of weaker-than-expected May retail sales.

But even with the market continuing to hit new highs, I believe there are still plenty of buying opportunities just waiting to be scooped up in the midst of any weakness. And some of the best opportunities out there are in the utility sector.

We’ve seen a lot of sector rotation amid the market volatility, as investors run to “safer” names that offer some downside protection. One industry that benefits from this is utilities, which are generally known for its defensive characteristics because their businesses will be necessary no matter the economic climate.

I have four picks in this space that I want to share with you now that offer solid fundamentals and attractive valuations. Let's take a closer look:

Consolidated Water (CWCO)

Consolidated Water (CWCO) is a utility with some innovative technology in its pursuit to treat and provide water in parched areas.

CWCO is not your typical water utility. While its peers simply process and transport fresh water to customers, and collect the waste water that results post-use (and treats it), CWCO is in the business of desalination — converting unusable salt water into fresh water, and transporting it to some of the most underserved areas globally.

The company uses a process known as reverse osmosis, which implements a pressurized system to separate saline from fresh water and passing the water through a semi-permeable membrane that keeps the salt out. The process is used at CWCO’s 13 plants located throughout the Caribbean. The bulk of its 26 million gallons per day of capacity is located in the Cayman Islands and the Bahamas, with 92% of capacity located there.

CWCO fell after reporting disappointing first-quarter earnings of 4 cents per share and revenues of $16.3 million. Both numbers were shy of expectations — 9 cents per share and $17 million. The miss was largely due to a drop in profit-sharing from one of its affiliates in the BVI, as well as increased costs from the ongoing Baja, Calif. water desalination project.

However, it has since made a significant turnaround since its post-earnings low, rebounding nicely. As the company continues to broaden its geographic footprint, especially into important water-starved Mexico and California regions, revenues should strengthen and I expect the Street to take notice.

NRG Energy (NRG)

NRG Energy (NRG) is the second-largest independent retail energy provider in the United States. The company boasts more than 2 million customers thanks to some recent acquisitions.

Management has been snapping up solar projects around the country, and its new capacity for business has caught my eye. A recent purchase of Dominion Resources’ (D) retail business added half a million customers, while Edison Mission’s renewable assets also helped extend its reach. An agreement to buy residential solar company Rooftop Diagnostics has further cemented NRG’s foray into new markets.

The company posted first-quarter earnings that underscored the momentum NRG has going for it. For the March period, NRG reported a loss of $56 million, or 18 cents per share, which is a vast improvement over the loss of $332 million, or $1.03 pershare, from a year ago. Revenues jumped nearly 70% to $3.5 billion — far better than the $2 billion anticipated by the Street.

On the conference call, management mentioned a “drop down” of new projects in the renewables portfolio to NRG Yield, for $349 million in cash. These include two solar facilities and a gas-fired plant in California. Most importantly for the near-term outlook, management raised its 2014 guidance and now expects adjusted EBITDA of $3.2-$3.4 billion — up from its previous estimate of $2.7-$2.9 billion.

NRG could see strong upside from current prices within a year as it continues to execute on its long-term plan of moving beyond its traditional energy base. Rising electricity prices should also benefit unregulated utilities such as NRG, and we’re headed into the summer months when demand for electricity demand should be strong. That means that these utilities have some leeway in pricing, which should help margins going forward.

Covanta (CVA)

Covanta (CVA) is not tied to any of the instantly recognizable areas of greentech, such as solar or wind, but it still operates right in that niche. The company quite literally turns trash into treasure — or in this case, energy.

The company operates 45 facilities throughout the northeastern United States that convert garbage into steam, which is then used to power electricity at the utility level.

Having emerged from the bankruptcy of a previous incarnation in 2004, Covanta is the biggest company in its industry. Of its $1.6 billion in annual revenue, 63% comes from long-term contracts with municipalities (where it picks up trash) and another 26% is tied to energy revenues from utilities (where the steam generated from burning waste is used to create electricity). The remainder of its sales comes from a metals recycling business.

Management is currently in the midst of building out a few projects and generators, which is gaining Covanta more attention from the Street (it was initiated with a buy rating with a $23 target by an analyst at BB&T earlier this month).

CVA’s financials have improved with the project expansion, as operating cash flow in the latest quarter rose from $64 million to $102 million. The top line has been growing faster than expenses, at nearly 8% revenue growth last quarter with comparable growth expenses of a little more than 3%.

As new projects and operations come online, free cash flow could see a boost. According to management, if you exclude the working capital tied to those projects, the midpoint of its range moves to $230 million, or 10% yield. Assuming a meaningful compression of that yield, the shares are well positioned to move into the mid-$20s range. That’s in addition to a healthy 3.9% dividend yield, which puts cash in our pockets as we wait for new business streams to come online.

Plus, we’re in good company investing in Covanta. It’s no secret that I like to see noted investors with strong positions, and CVA has a heavy hitter holding a sizable stake in the company. Sam Zell, who you may be familiar with as the billionaire who built up and sold a commercial real estate empire several years ago, owns 11% of CVA stock and also serves as chairman.

With improving financials and future growth already well on its way, Covanta offers an attractive opportunity in this niche area of the greentech revolution, especially as electricity demand rises as we head into the summer months.

EnerNOC (ENOC)

EnerNOC (ENOC) is a play on the intersection between technology and energy. ENOC is a relatively small tech firm ($560 million market cap), and it operates in two revenue segments, providing what is known as “demand response” services to utilities and “energy management” services to enterprises. The biggest segment by far is utilities, which brings in 90% of revenue, while the remaining 10% comes from enterprises.

Key customers are found within the commercial and industrial segments, and all told the company helps manage more than 8,600 megawatts (MW) at nearly 13,700 sites across the U.S., the UK, Australia and New Zealand.

EnerNOC’s utility model connects electric utilities with commercial and industrial power consumers and helps to reduce the need to rely on peak power plants (which are expensive to build and operate). The company does this through software as a service (SaaS) offerings that help utilities track, manage and regulate demand response. Management estimates such energy intelligence software represents a $5 billion market. ENOC’s revenues last year were $383 million, so you can see the growth potential.

EnerNOC has been growing at a good clip over the past several years, and that trend is likely to continue, given energy demand and the need for regulation. ENOC will also benefit over the longer term from recent EPA proposals that would cut carbon pollution from the nation’s power plants. Though the details have yet to be finalized, and there will be at least a year before final rules take shape, it’s likely that any net impact to the “smart meter” and “smart grid” industries will be positive, as utilities will look for additional ways to cut power usage.

EBITDA margins are strong at mid-teen levels. Should the top line be able to grow at double-digit rates through 2015, pro forma earnings should be able to touch $1.80 per share by 2015, and current free cash flow yields at around 10% should also lend some support to ENOC. With a mid-teens forward multiple, ENOC stock could reach $27.

The stock hit its 52-week high of $24 in May, and it has since pulled back in the wake of the PJM 2016/17 capacity market auction, which saw a drop in demand response clearing as gas fired plants have come on line. However, pricing has remained stable, and as demand continues to rise, additional, incremental auctions would bring more revenues to ENOC.

Hilary Kramer is the editor of GameChangers.

3 Value Stocks Near 52-Week Lows Worth Buying

Much like companies that are rising past their fair values, we can often find companies trading at what may be bargain prices. While many investors would rather have nothing to do with stocks wallowing at 52-week lows, I think it makes a lot of sense to see whether the market has overreacted to a company's bad news.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

Chips and dips
It's been far from a November to remember for chipmaker Qualcomm (NASDAQ: QCOM  ) , which saw its stock nosedive by nearly 9% after reporting weaker-than-expected fourth-quarter earnings results two weeks ago.

Source: Flickr user Doug Kline.

For the quarter, Qualcomm saw its revenue rise 3% year over year but dip 2% from the sequential third quarter. The story was similar for its net income, which jumped 25% year over year but fell 15% from the sequential quarter. The problem for Qualcomm is that it's facing a growing number of legal battles in China, the U.S., and Europe that have halted some lucrative licensing payments to the company and threaten to slow its steady growth rate.

Specifically, China's National Development and Reform Commission is examining whether or not Qualcomm's licensing business, along with its chipmaking business (Qualcomm is currently the leading baseband provider in the world), would create a monopoly within the country. If the NDRC's decision goes against Qualcomm, it could significantly inhibit Qualcomm's growth potential in what is becoming the world's most important wireless market.

Additionally, U.S. regulators are looking into the "fair and reasonable commitments" of Qualcomm's licensing division, while the EU is investigating various types of financial incentives related to its baseband business. All told, Qualcomm's sales and profits are forecast to come up short until these probes are put in the rearview mirror.

Despite this, I view Qualcomm as an intriguing value stock after its latest tumble and would highly encourage value investors to give the company a closer look.

To begin with, Qualcomm's bread-and-butter chipmaking business continues to grow despite its licensing issues. The latest quarter saw its chip business expand 9% to $4.85 billion, and I anticipate this is a trend that's unlikely to slow down anytime soon. As the world's leading provider of wireless chipset technology, Qualcomm is certain to benefit from rising global handset sales.

Source: Flickr user Maurizio Pesce.

Secondly, the rise of the Internet of Things -- in English, the interconnectivity of various devices in our lives, such as home electronics and our automobiles -- will mesh perfectly with Qualcomm's dominance in wireless technologies. Most companies haven't even begun to scratch the surface of the Internet of Things, so this could be a multidecade growth opportunity for Qualcomm.

Finally, don't forget that Qualcomm is fortifying its investors against downside with a fast-growing dividend. Over the past decade Qualcomm's dividend has grown sixfold to $0.42 per quarter and is just shy of having doubled over the past three years. Compounded with the stock's recent swoon, that quarterly payout is netting shareholders a delectable 2.4% yield. Imagine how quickly your money could grow if that dividend were reinvested back into Qualcomm stock!

A newly refined value stock
In general, it's been a rough couple of months for any company associated with the energy industry. With oil prices sinking to four-year lows, fears are spreading that we could see integrated oil and gas operators cutting back on production. Any cutback could eventually trickle its way down to midstream and downstream operators, and in a worst-case scenario, it may be a predictor that something is amiss with the U.S. or global economy.

One company that has really taken it on the chin since the beginning of September is oil refiner and marketer Phillips 66 (NYSE: PSX  ) . Shares have lost 20% since hitting a 52-week high, and they've continued to head lower despite a stronger-than-expected third-quarter earnings report. Investors are worried that weaker oil prices will result in lower production, which can have an adverse effect on Phillips 66's top and bottom lines.

Source: Phillips 66.

However, what Phillips 66's third-quarter earnings results showed is that there's more to this company than meets the eye. The company's refining business in particular could be poised to see incredible strength in the coming quarters thanks to rapidly falling oil prices that have caused crack spreads to move noticeably higher. What this means for Phillips 66, which gets close to 30% of its revenue from its refining operations, is significantly better margins and profitability even if its revenue misses the mark. By a similar token, Phillips 66's marketing and specialties business, as well as its petrochemicals division, should continue to benefit from weaker oil prices as input costs fall.

Like Qualcomm, Phillips 66 is also a cash flow cow that's poised to deliver a top-quality dividend to shareholders. Since being spun-off in 2012 its dividend payout has increased four separate times and by 150% overall to $0.50 per quarter. Currently paying a projected yield of 2.8%, Phillips 66 is divvying out a nice premium to the S&P 500's yield of around 2%.

Lastly, considering the probability that Phillips 66 continues to trounce Wall Street's estimates as oil prices remain depressed, the company's valuation -- less than 10 times forward earnings and a PEG ratio of just 0.8 -- adds more fuel to the value stock fire. For reference, most refiners have P/Es in the mid-teens.

If you're looking for a way to play this recent dip in oil, Phillips 66 could be your stock.

Let there be light!
Lastly, I'm going to prove that you can't let your emotions get in the way of finding high-quality value stocks and suggest you dig deeper into a company that I've been waving the caution flag on for years: First Solar (NASDAQ: FSLR  ) .

Source: First Solar.

The maker of solar systems has been hammered over the past two months, losing about a third of its value as reduced production guidance from some of its peers, as well as expected delays in overseas and domestic solar projects, has weighed on the company. Furthermore, while weaker oil prices are a boon for refiners like Phillips 66, they're bad news for First Solar, which is relying on high fossil fuel prices to encourage businesses to make the switch to solar. If fossil fuels keep losing value, First Solar's pricing may have to drop to entice customers to make the switch.

Despite this recent weakness, I see plenty of light at the end of the tunnel for this solar value stock.

Topping the list is First Solar's third-quarter earnings results, released two weeks ago. First Solar kept its production guidance, operating cash flow, and EPS guidance unchanged, while actually upping its gross margin forecast and its operating income guidance. The only negative was that First Solar reduced the top and bottom of its sales forecast by $100 million each to $3.6 billion-$3.9 billion, which it mostly blamed on temporary project delays. In other words, while its peers are cutting guidance, First Solar is powering through with stronger margins and holding to its profitability forecast.

Source: Flickr user Steve Jurvetson.

Another key point is that First Solar's balance sheet and valuation are gems compared to those of its overseas peers. First Solar is sporting about $900 million in net cash (nearly 19% of its current market value), trading right around its book value, and being priced at less than 11 times forward earnings. Even considering a lack of near-term order visibility throughout much of the sector (even though that has not been a problem for First Solar), a forward P/E of less than 11 is pretty inexpensive!

Finally, long-term trends favor the growing use of alternative energies and a push away from fossil fuels. As fossil fuels become more finite, their price is likely to head higher, placing even more importance on renewable energies like solar. Simply put, few companies have anywhere near the production and efficiency capabilities of First Solar.

If you want exceptional values, look no further than these top-notch, high-yield dividend stocks! 
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here.

Whoops, Looks Like a Fat Finger Caused a 10% Flash Crash in Home Depot

Trading in Home Depot (HD) wasn’t terribly exciting today after the home retailer released earnings–until the final minutes of trading when a “flash crash” shook the stock.

Getty Images

For much of the day, all was quiet, as Home Depot’s stock traded down in pre-open trading, and stayed there for much of the day. Following its open, it settled into a range, never cutting its loss to less than 1.4% or falling more than 2.6% or so–until 3:55 p.m., that is. At that point, Home Depot’s shares suddenly plunged 10% to $86.52, before bouncing just as quickly almost back to where it had been.

Here’s a 1-minute chart of the day’s trading in Home Depot:

The NYSE, which is now owned by Intercontinental Exchange (ICE), looked into breaking those trades, which it decided to: All trades filled at or below $93.33 between 3:55 p.m. and 3:56 p.m. have been cancelled.

For those who got filled at ridiculously low prices on Home Depot today, that ruling should bring sighs of relief, but for traders who thought they had taken off or put on positions in the stock, the announcement might lead to a sleepless night.

Home Depot finished the day down 2.1% at $95.98.

Funny or Die Gets Serious About Cash: Will Site Be Sold?

www.funnyordie.com Funny or Die, a website that attracts A-list celebs to skewer hands-off topics, has hired a financial adviser to investigate options, which could include a sale. "We've received unsolicited interest from a number of companies," Bloomberg says CEO Dick Glover told employees in a memo. "We are NOT trying to sell Funny or Die, but we thought it wise to engage some experts to help us evaluate the situation. In the meantime, if any of you mistakenly receive a briefcase full of cash, please bring it to my office immediately." Hahahahaha. "The asking price is $100 million to $300 million, people with knowledge of the matter said," Bloomberg reported. Satire in Short Doses Funny or Die -- the brainchild of Will Ferrell, Adam McKay and Chris Henchy -- uses short-form videos to satirize popular topics. Its first video, "The Landlord," has been viewed 82 million times. "Porn Stars Explain Net Neutrality" riffs on a current controversy. Its popular celeb-grab, "Between Two Ferns," features Zack Galifianakis asking the super-famous super-embarrassing questions. Most notably, Galifianakis interviewed President Obama, apologizing to the leader of the free world for cancellng three times. The president tried gamely to match Galifianakis' wit, but it was like watching a kitten try to out-roar a lion. As the president promoted his then-new Affordable Care Act, Galifianakis checked his watch, shifted in his seat, then asked, "Is this what they mean by drones?" Although the site is irreverent, it's not exactly anti-establishment, at least when it comes to money. Time Warner (TWC) is a minority stakeholder and Sequoia Capital has delivered funding; and Under Armour (UA), General Motors (GM) and Pepsi (PEP) have hired it to produce entertainment videos, Bloomberg said. More from Lisa Kaplan Gordon
•Does Money Make Us Happy? Yes. No. Maybe. •BlackBerry Hangs Up on Kim Kardashian's Spokesmodel Offer •Unilever Sues Just Mayo, Claims Spread Isn't Real Mayonnaise

Walt Disney Co Posts Higher Q4 Results; Beats Estimates (DIS)

After the closing bell on Thursday, The Walt Disney Company (DIS) reported its fourth quarter results, posting higher revenues and net income than last year’s Q4 results.

DIS’s Earnings in Brief

The Walt Disney Company reported fourth quarter revenues of $12.4 billion, which are up 7% over last year’s Q4 revenues of $11.6 billion. Net income for the quarter came in at $1.5 billion, or 86 cents per share, up from last year’s Q4 figures of $1.4 billion, or 77 cents per share. On an adjusted basis, the company’s EPS came in at 89 cents. The company's Q4 results beat analysts’ estimates of 88 cents EPS on revenues of $12.37 billion.

CEO Commentary

DIS CEO Robert A. Iger had the following comments: "Our results for Fiscal 2014 were the highest in the Company's history, marking our fourth consecutive year of record performance. We're obviously very pleased with this achievement and believe it reflects the extraordinary quality of our content and our unique ability to leverage success across the Company to create significant value, as well as our focus on embracing and adapting to emerging consumer trends and technology."

DIS’s Dividend

The Walt Disney Company pays an annualized dividend, which it normally raises at the end of November or the beginning of December.

Stock Performance

After closing out the day up 1%, DIS stock was down $1.20, or 1.3%, in after hours trading. YTD, the stock is up 19.31%.

DIS Dividend Snapshot

As of Market Close on November 6, 2014

Click here to see the complete history of DIS dividends.

The Internet is 'Eaten Alive' by Discovery

The Internet is hungry for more information about Discovery's "Eaten Alive." NEW YORK (CNNMoney) You would think that having a blindfolded Nik Wallenda walk on a tightrope would be enough to feed the Internet's appetite.

Yet, the Discovery Channel's latest must watch program "Eaten Alive" shows otherwise.

According to Discovery's website, "Eaten Alive" will include wildlife filmmaker Paul Rosolie donning a protective suit which will allow him to be swallowed up alive by an anaconda.

Yes, he's choosing to get eaten by a giant snake.

While some on the Internet have balked at the stunt wondering how it could ever be real, Discovery's website has the show scheduled for December 7th.

Unlike other big events on Discovery, "Eaten Alive" was taped rather than live. This, plus the fact that Rosolie is tweeting proves that he got out alive.

"If u know me - I would never hurt a living thing," Rosolie tweeted. "But you'll have to watch #EatenAlive to find out how it goes down!"

Disbelief over the stunt has also not stopped those in media from writing about it (present company included).

By the publication of this story, typing the term "Discovery Channel Eaten Alive" into Google News brought up more than 200 articles on the subject.

"Eaten Alive" is another in Discovery's attempt to create big TV events to grab an audience who can't miss watching something as it happens.

This was shown last Sunday with the Wallenda tightrope walk between skyscrapers. Promos for "Eaten Alive" actually began during the special.

Ratings for Wallenda's tightrope stunt were a bit lower than his first tightrope walk over a gorge in the Grand Canyon. Still, it brought in a lot of publicity for the channel.

Something that "Eaten Alive" has done far before it even slithers onto the airwaves.

Zynga Inc (ZNGA) Earnings Report: Is Time Running Out? GLUU & KING

The Q3 2014 earnings report for small cap social media gaming stock Zynga Inc (NASDAQ: ZNGA), a potential peer of mobile gaming stock Glu Mobile Inc (NASDAQ: GLUU) and interactive entertainment stock King Digital Entertainment PLC (NYSE: KING), is scheduled for after the market closes on Thursday (November 6th). Aside from the Zynga Inc earnings report, it should be said that Glu Mobile Inc reported Q3 2014 earnings on October 29th (shares fell on profit expectations and missed revenue forecasts) while King Digital Entertainment PLC will also report Q3 2014 earnings after the market closes on Thursday. However, Zynga Inc has long struggled and has worked hard to come out from under the shadow of Facebook Inc (NASDAQ: FB) but Wall Street and investor patience may be running out.

What Should You Watch Out for With the Zynga Inc Earnings Report?

First, here is a quick recap of Zynga Inc's recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page:

Earnings HistorySep 13Dec 13Mar 14Jun 14

EPS Est	-0.04	-0.04	-0.01	0.00
EPS Actual	-0.02	-0.03	-0.01	0.00
Difference	0.02	0.01	0.00	0.00
Surprise %	50.00%	25.00%	0.00%	N/A

EPS TrendsCurrent Qtr.
Sep 14Next Qtr.
Dec 14Current Year
Dec 14Next Year
Dec 15

Current Estimate	-0.01	0.00	-0.01	0.04
7 Days Ago	-0.01	0.00	-0.01	0.04
30 Days Ago	-0.01	0.01	-0.01	0.04
60 Days Ago	-0.01	0.01	-0.01	0.04
90 Days Ago	0.01	0.02	0.02	0.06

 

Back in early August, Zynga Inc reported a 34% year over year revenue decrease (plus a decrease of 9% from Q1 2014) to $153 million as online game revenue fell 36% (plus a decrease of 1% from Q1 2014) to $131 million and advertising and other revenue fell 19% (plus a decrease of 38% from Q1 2014) to $22 million. FarmVille 2 and Zynga Poker accounted for 32% and 24% of online game revenue, respectively, for the second quarter of 2014 verses to 30% and 24%, respectively, for the first quarter of 2014 but as of June 30, 2014, cash, cash equivalents and marketable securities were approximately $1.15 billion verses $1.14 billion as of March 31, 2014. The net loss was $63 million for the second quarter of 2014 verses a net loss of $16 million for the second quarter of 2013 and compared to net loss of $61 million for the first quarter of 2014. The CEO commented:

"We continue to make significant investments in the highest potential areas of our future pipeline. By Q4 of this year, approximately half of our game-related research and development will be allocated to new and recently launched games -- this represents about a 45% increase year over year. We currently have capabilities and brands in content genres with Farm, Words, Casino, Racing and People and we are further diversifying our product portfolio in order to reach more consumers and widen our demographic across more entertainment genres."

And:

"Today we are announcing that we are expanding our game development efforts in two new additional categories: Sports and Runner. Our Sports effort introduces a new franchise brand for us -- Zynga Sports 365 -- and with it, new mobile games in football with the NFL and NFL Players Inc. and in golf with one of the most iconic athletes in the world, Tiger Woods. Our Runner expansion features a new partnership with Warner Bros. Interactive Entertainment to bring to life their beloved Looney Tunes brand for mobile consumers. We are pleased to launch the geo-lock for our new football game -- NFL Showdown -- today and look forward to making it, along with our Tiger Woods golf game and Looney Tunes runner game available globally to fans around the world."

However, Zynga Inc has delayed the launch of new versions of several titles, including "Zynga Poker" and "Words with Friends" as well as mobile games from Natural Motion, a studio it bought in January for $527 million.

Hence, analysts and investors alike were not enthused with the former slashing price targets with Macquarie's Benjamin Schachter cutting his target 25% to $3, saying: "So far, Zynga has failed to deliver." And given recently delayed products, he commented "investors will have to wait at least another quarter to find out if Zynga can grow profitably."

What do the Zynga Inc Charts Say?

The latest technical chart for small cap Zynga Inc shows shares have steadily trended downward since a spring time jump:

A long term performance chart shows that investors and traders alike who have a stomach for risk have come out as big winners with Glu Mobile Inc and losers if they were in Zynga Inc and King Digital Entertainment PLC:

A technical chart for Glu Mobile Inc shows volatility above a $3.80 level floor while King Digital Entertainment PLC did have a summer time surge before sinking back into a downtrend:

What Should Be Your Next Move?

As investor and Wall Street patience grows thin, small cap Zynga Inc will need to demonstrate some sort of progress in the coming earnings report. Otherwise, the CEO's head could be the first thing on the chopping block after earnings.