5 Stocks Under $10 Making Big Moves

 DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Hated Earnings Stocks You Should Love

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success. >>5 Rocket Stocks Ready for Blastoff With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Stock quotes in this article: VTNR, SMSI, CYNI, RBSN, EVRY 

EveryWare Global

EveryWare Global (EVRY) provides tabletop and food preparation products for the consumer, foodservice and specialty markets. This stock closed up 8.5% to $1.02 in Tuesday's trading session.

Tuesday's Range: $0.86-$1.05
52-Week Range: $0.67-$13.74
Tuesday's Volume: 215,000
Three-Month Average Volume: 147,747

From a technical perspective, EVRY spiked sharply higher here with above-average volume. This stock has been absolutely destroyed over the last six months, with shares moving lower from over $8 to its recent 52-week low of 67 cents per share. During that move, shares of EVRY have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of EVRY are now starting to spike higher off that 67 cent per share low and it's breaking out into its recent gap-down-day zone from a few days ago that started near $1.50. Traders should now look for long-biased trades in EVRY as long as it's trending above Tuesday's low of 86 cents per share and then once it sustains a move or close above Tuesday's high of $1.05 with volume that hits near or above 147,747 shares. If that move starts soon, then EVRY will set up to re-fill more of its gap-down-day zone that started near $1.50.

Stock quotes in this article: VTNR, SMSI, CYNI, RBSN, EVRY 

Rubicon Technology

Rubicon Technology (RBCN), an electronic materials provider, develops, manufactures and sells monocrystalline sapphire and other crystalline products for light-emitting diodes, radio frequency integrated circuits, blue laser diodes, optoelectronics and other optical applications. This stock closed up 2% to $7.42 in Tuesday's trading session.

Tuesday's Range: $7.26-$7.58
52-Week Range: $6.84-$14.67
Tuesday's Volume: 586,000
Three-Month Average Volume: 663,387

From a technical perspective, RBCN jumped higher here right above some near-term support at $7.07 with decent upside volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $14.67 to its recent low of $6.93. During that downtrend, shares of RBCN have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of RBCN are now starting to bounce off that recent low of $6.93 and off oversold levels, since its relative strength index reading is coming off sub-30 readings. Traders should now look for long-biased trades in RBCN as long as it's trending above some key near-term support levels at $7.07 or at $6.93 and then once it sustains a move or close above Tuesday's high of $7.58 to some more near-term overhead resistance at $7.92 with volume that hits near or above 663,387 shares. If that move materializes soon, then RBCN will set up to re-test or possibly take out its next major overhead resistance levels at $8.50 to $9.50. Any high-volume move above $9.50 will then give RBCN a chance to re-fill some of its recent gap-down-day zone that started at $10.30.

Stock quotes in this article: VTNR, SMSI, CYNI, RBSN, EVRY 

Cyan

Cyan (CYNI) provides various carrier-grade networking solutions that transform legacy networks into open high-performance networks in North America, Asia and Europe. This stock closed up 4.1% to $3.49 in Tuesday's trading session.

Tuesday's Range: $3.29-$3.56
52-Week Range: $3.18-$13.92
Tuesday's Volume: 126,000
Three-Month Average Volume: 348,921

From a technical perspective, CYNI ripped higher here right above some near-term support at $3.29 with lighter-than-average volume. This move is quickly pushing shares of CYNI within range of triggering a near-term breakout trade. That trade will hit if CYNI manages to take out some near-term overhead resistance levels at $3.57 to $3.64 with high volume. Traders should now look for long-biased trades in CYNI as long as it's trending above some near-term support at $3.29 or above its 52-week low of $3.18 and then once it sustains a move or close above those breakout levels with volume that hits near or above 348,921 shares. If that breakout triggers soon, then CYNI will set up to re-test or possibly take out its next major overhead resistance level at its 50-day moving average of $4.07 to possibly even $4.50.

Stock quotes in this article: VTNR, SMSI, CYNI, RBSN, EVRY 

Smith Micro Software

Smith Micro Software (SMSI) provides software and services that simplify, secure and enhance the mobile experience. This stock closed up 6.1% to 86 cents per share in Tuesdays trading session.

Tuesday's Range: $0.80-$0.86
52-Week Range: $0.66-$2.69
Tuesday's Volume: 144,000
Three-Month Average Volume: 456,676

From a technical perspective, SMSI trended sharply higher here right above some near-term support at 80 cents per share to 75 cents per share with lighter-than-average volume. This stock recently gapped down sharply from over $1.40 to its 52-week low of 66 cents per share with heavy downside volume. Following that move, shares of SMSI have now started to rebound off its 52-week low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if SMSI manages to take out some key near-term overhead resistance levels at 86 to 89 cents per share and then once it clears its gap-down-day high of 95 cents per share with high volume. Traders should now look for long-biased trades in SMSI as long as it's trending above some key near-term support levels at 80 cents to 75 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 456,676 shares. If that breakout triggers soon, then SMSI will set up to re-fill some of its previous gap-down-day zone that started just above $1.40.

Stock quotes in this article: VTNR, SMSI, CYNI, RBSN, EVRY 

Vertex Energy

Vertex Energy (VTNR), an environmental services company, provides various services designed to aggregate, process and recycle industrial and commercial waste streams, as well as off-specification commercial chemical products. This stock closed up 6.8% to $8.00 in Tuesday's trading session.

Tuesday's Range: $7.32-$8.02
52-Week Range: $2.35-$9.19
Thursday's Volume: 300,000
Three-Month Average Volume: 332,353

From a technical perspective, VTNR ripped higher here right above its 50-day moving average of $6.87 with decent upside volume. This spike higher on Tuesday is quickly pushing shares of VTNR within range of triggering a major breakout trade. That trade will hit if VTNR manages to take out Tuesday's intraday high of $8.02 to some more key near-term overhead resistance levels at $9.14 to its 52-week high at $9.19 with high volume. Traders should now look for long-biased trades in VTNR as long as it's trending above Tuesday's low of $7.32 or above its 50-day at $6.87 and then once it sustains a move or close above those breakout levels with volume that hits near or above 332,353 shares. If that breakout hits soon, then VTNR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $12. To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS:   >>3 Stocks Spiking on Unusul Volume   >>3 Big Stocks to Trade (or Not)   >>5 Stocks Ready to Break Out Follow Stockpickr on Twitter and become a fan on Facebook.

Stock quotes in this article: VTNR, SMSI, CYNI, RBSN, EVRY  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.

Why Hewlett-Packard (HPQ) Stock Is Down Today

NEW YORK (TheStreet) -- Hewlett-Packard (HPQ) was falling 2.7% to $31.60 Thursday following rival IBM's (IBM) poor quarterly results.

In its first-quarter results IBM posted earnings of $2.54 a share, missing analysts' estimates by 1 cent. Revenue fell 4% from the year-ago quarter to $22.48 billion, while analysts surveyed by Thomson Reuters expected $22.93 billion in revenue.

The drop in revenue was largely due to a 23% drop in hardware and chip sales, a segment in which IBM and HP compete.

Must read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates HEWLETT-PACKARD CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate HEWLETT-PACKARD CO (HPQ) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and attractive valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall." Highlights from the analysis by TheStreet Ratings Team goes as follows: Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 46.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. HEWLETT-PACKARD CO has improved earnings per share by 17.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HEWLETT-PACKARD CO turned its bottom line around by earning $2.62 versus -$6.45 in the prior year. This year, the market expects an improvement in earnings ($3.71 versus $2.62). The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, HEWLETT-PACKARD CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. HPQ's debt-to-equity ratio of 0.89 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.75 is weak. The gross profit margin for HEWLETT-PACKARD CO is currently lower than what is desirable, coming in at 25.76%. Regardless of HPQ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HPQ's net profit margin of 5.06% is significantly lower than the industry average. You can view the full analysis from the report here: HPQ Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: HPQ, IBM 

Bud Light? No Thanks. Beer Drinkers Shifting to Darker, Flavorful Imports

Shutterstock/Boule

Bud Light may still be America's best-selling beer -- it has been for more than a decade -- but retail sales of this and other leading lower-calorie lagers such as Bud Light Lime, Miller Lite, and Natural (aka Natty) Light, declined in 2013, according to data from IRI, a Chicago market research firm. Not that this spells the end of light beers, which still make up a significant chunk of the market. Even as big brewers push into the craft segment, some big-name labels are still experiencing an uptick. Case sales of Coors Light, which became the No. 2 beer brand in the U.S. in 2012, grew nearly 1.8 percent last year, according to IRI. Michelob Ultra Light sales were also up, although it is an outlier in a fast-declining Michelob franchise. "There will always be a place for 'Big Lager' as it's more drinkable in the sense that one can have many lagers but only a few dark beers," says Euromonitor International analyst Edward Hsyeh. "The dark beers are heavy in body, so there can only be so much 'share of the stomach' they possess." Still, big challenges loom: First, Americans' growing thirst for darker, more flavorful brews can't be ignored. Volume sales of lager-a lighter style of beer-have fallen every year since 2009 except 2012, according to Euromonitor's data, though the vast majority of beer consumed in the U.S. is still lager. Sales of pale ales, on the other hand, were up by 13 percent in 2013 alone, and wheat beer grew by 6 percent. The shift is reflected in the recent craft beer boom (volume sales grew 13 percent in the first half of 2013) in which India Pale Ale has become popular. Second, aside from craft, the big brands are seeing competition from imports, too. Modelo Especial volume sales, for example, more than doubled since 2009, according to IRI, and sales of Corona were up 11 percent. Last, hard ciders and new beer-like varieties such as AB InBev's (BUD) Bud Light Lime Straw-Ber-Rita, which sold more than 7 million cases since launching last year, are stealing market share. AB InBev said in its last earnings report that "the Ritas" (Bud Light Lime Straw-Ber-Rita and Bud Light Lime Lime-A-Rita) achieved a combined market share of 0.8 percent in the third quarter of 2013. AB InBev, which owns Bud and Natural, declined to comment because it's in a quiet period ahead of its next earnings report. MillerCoors, a joint venture between SABMiller and Molson Coors (TAP), reported that sales to retailers fell 2.8 percent in 2013, due to declines in such premium light brands as Miller Lite and in value brands that include Miller High Life and Keystone. Molson Coors Chief Financial Officer Gavin Hattersley said at a conference last year that beer drinkers are simply "looking for more flavors, they're looking for more options than ever before." Meanwhile, sales of Milwaukee's "the beast" Best haven't done any better.

You can thank or blame Richard Stanger for writing 401(k)

Bloomberg News

We’ve been looking for someone who was involved in actually writing section 401(k) of the U.S. tax code more than 35 years ago, read the e-mail to Richard Stanger. “Yes, that’s me,” he wrote back.

Mr. Stanger was a primary author of a little-noticed piece of a 1978 tax law. At the time, the 869-word insert was lost in the political heat of limits on tax-deductible three-martini lunches, lower capital gains rates and a bipartisan coalition that was rejecting President Jimmy Carter’s proposals. Today, 401(k) is likely the most recognizable number in the Internal Revenue Code.

(Don’t miss: Corporate pension plans mark sad milestone)

As the first 401(k) generation ages — about 10,000 baby boomers turn 65 every day in the U.S. — questions multiply about the adequacy of their finances. Just last week, President Barack Obama proposed a new retirement plan for Americans who don’t have 401(k) plans at work as he warned that Social Security often isn’t enough to rely on.

How 401(k) grew from an insignificant provision into a behemoth that transformed retirement savings and started an industry that holds $4 trillion in Americans’ assets is a study in the sometimes unintended consequences of Washington action. Consider: The initial provision was estimated to have a “negligible effect upon budget receipts.” Now, defined contribution plans are the fifth-biggest tax break for individuals, with an estimated revenue loss to the government of $61.4 billion in fiscal 2014.

“There was absolutely no discussion in ’78 that if you do this, the world is going to change,” said Daniel Halperin, then a senior Treasury official and now a Harvard Law School professor.

The tale of Richard Stanger, who said he hadn’t been interviewed previously about his role, is also a story about accidental actors at historic moments. As Mr. Stanger himself says, if anyone had known how important 401(k) would become, the Joint Committee on Taxation never would have let him, a 28-year-old junior lawyer, write it.

Mr. Stanger is now 63, the same age as Americans worried about their retirement security. He was a three-year-old in Queens, New York, when the fight began over what would become 401(k).

Irving Trust Co. and other New York-based banks had set up profit-sharing plans in which taxes could be deferred. They were accepted by the IRS with formal rulings in 1956 and 1963. Those plans typically covered bonus payments, not a choice about deferring a portion of regular salary.

LAW STUDENT

By 1972, while Mr. Stanger was a law student at Temple University in Philadelphia, IRS officials became co! ncerned about benefits going to top executives. They proposed regulations that would have required immediate taxation of money contributed into the plans in some cases, undercutting the whole concept.

Congress in 1974 then froze the status quo in place for existing plans, effectively promising to set permanent policy and deferring a final decision. This was part of the Employee Retirement Income Security Act, which came to be known as Erisa.

That created a situation where one set of rules applied to existing plans and there was no clear structure for setting up new plans.

Meanwhile, Mr. Stanger was graduating from law school and planning to focus on international taxation. Instead, he became a pension policy specialist after the firm he joined lost its expert to a job at the IRS and needed someone to learn that 1974 law. Mr. Stanger refers to himself as an “Erisa child.”

“It slowly dawned on me that I was an expert on this — and I should leverage it,” he said in an interview in his Manhattan office.

Three years later, at a conference in Chicago, Mr. Stanger ran into Mervin Wilf, his former law professor. Mr. Wilf mentioned a job opening in Washington he had heard about. As a result, Mr. Stanger started working in November 1977 at the Joint Committee on Taxation, the nonpartisan staff that helps Congress write tax legislation and estimates its cost.

In 1978, the Carter administration proposed a law to cut tax rates, add a credit to benefit middle-income taxpayers, limit deductions for business meals and raise taxes on some capital gains. At the time, the thresholds for tax brackets weren’t indexed for inflation, meaning that more people moved into higher brackets each year unless Congress acted.

A bipartisan coalition in Congress resisted the president’s plan and began assembling its own bill, pulling together ideas proposed by a variety of lawmakers.

1978 ACT

The main goal of what became the Revenue Act of 1978 wasn’t retirement savings, ! said form! er Democratic Congressman Jim Jones of Oklahoma, who helped rally support for the plan.

The point, instead, was tax cuts for the middle class and lower levies on capital gains to spur business investment. The legislation countered Mr. Carter’s tax proposal to Congress, so Mr. Jones and Wisconsin Republican Bill Steiger solicited amendments from members on the House Ways and Means Committee to build bipartisan support, Mr. Jones said.

Mr. Jones said Republicans wanted a proposal that would provide incentives for individual retirement savings.

Representative Barber Conable, the top Republican on Ways and Means, suggested the add-on related to profit-sharing plans that became section 401(k), Mr. Jones said. Mr. Conable, who died in 2003, had been talking to businesses such as Xerox Corp. (XRX) and Eastman Kodak Co. that were major presences in his home region in upstate New York.

“I considered it not an expensive proposition from the standpoint of revenue loss, and a supplement to retirement that could catch on, but never be the dominant factor,” said Mr. Jones, now chairman of ManattJones Global Strategies in Washington. “At that particular time in life, it looked like defined-benefit plans would be the order of the day for years and years and years.”

The Carter administration had concerns about the 401(k) provision, though decided to allow it to proceed, Mr. Halperin said.

“Would I like that decision back?” Mr. Halperin said. “I’m not so sure. But there are certainly times when I think it may have been a terrible mistake.”

Mr. Conable’s idea, which he had introduced as a bill, was passed along to the Joint Committee on Taxation — and to Richard Stanger.

Mr. Stanger described his job as the provision’s primary author, to come up with language, work with the drafters and coordinate with the Treasury Department.

PENCILS, PAPER

He would write with pencils and paper or dictate language into recorders, to be trans! cribed by! stenographers. Then he would head over to a conference room in the Cannon House Office Building, across Independence Avenue from the Capitol, to meet with Ward Hussey, the top tax legislative drafter, and other officials to hash out the details of the wording.

The goals: create a structure for these kinds of plans and establish some safeguards, including a definition of “highly compensated” employees who weren’t allowed to benefit unless others did, too.

Mr. Stanger wasn’t the only author of section 401(k), just the technical expert charged with shaping it into its final form. The provision, changed and expanded in the years since, blessed the idea that employees could direct part of their salary into retirement accounts without paying taxes on it up front and established basic r

Your Investment Watch List for 2014

It's been a great year for the U.S. stock market. The Standard & Poor's 500 Index is up about 25%, and the Dow Jones Industrial Average has climbed 23%.

And Money Morning's gurus have done even better than that for their subscribers this year...

Chief Investment Strategist Keith Fitz-Gerald decoded an 80% gain for readers of his Money Map Report with an insurance company that pays out a super dividend.

Our Defense and Technology Specialist Michael A. Robinson, delivered a 100% gain with a politics-proof defense contractor.

Now it's time to pick the next big winners for 2014. Some of our experts share what they're watching, looking for, or forward to, next time around.

The Good

Here's who's going to have a great 2014:

Two of our favorite tech stocks, Apple Inc. (Nasdaq: AAPL) and Microsoft Corp. (Nasdaq: MSFT), bear close watching next year, according to Money Morning's Capital Wave Strategist Shah Gilani.

"Apple is headed back to $700," he said, on the basis of "new products and business lines that will shock the world." AAPL is trading at $560 per share now.

Meanwhile, Gilani says Microsoft will mount its own challenge to Apple and Google - and emerge from the fight "bigger, stronger, and more growth-oriented."

2013 was a rough year for the equity markets in the emerging economies of Asia and Latin America. Although gross domestic product (GDP) growth was 4.5% in those markets, share price indexes for Asia were only up 1.7%, and down 8.7% for Latin America, according to research firm Yardeni.

Next year, things will start to look up, at least for one of the big emerging economies.

"2014 is going to be all about Brazil: economically, politically, athletically," said Gilani. "If Brazil can rise to the many challenges it faces, its stock market will soar."

Brazil will host the 2014 FIFA World Cup and the 2016 Olympics in Rio da Janeiro, both events that will tax the country's infrastructure.

And speaking of soaring, this famed investor is poised to have a massively profitable 2014...

"Billionaire private equity investor Stephen Schwartzman will make still more billions as his fund Blackstone IPOs more of its portfolio companies." Blackstone took Hilton Hotels public in 2013, and it has plenty more companies in its portfolio. The Fed(s)

In the U.S., 2013 market activity seems to have revolved around one question: What's the Fed going to do?

The Open Market Committee answered that question - taper starts in January - but that doesn't mean the Fed has become irrelevant.

Far from it. The Federal Reserve and the federal government - "the Feds" plural - will only increase in importance.

One thing our experts absolutely agree is a must-watch for next year is the Federal Reserve Bank and its incoming Chairman, Janet Yellen.

"There is no stock, no investment, no person more important to watch than Janet Yellen and the rest of the central bankers," said Money Morning's Chief Investment Strategist Keith Fitz-Gerald. "The central bankers will take their cue from Yellen, which will set the tone for every asset class in the world."

And speaking of politics and money, our Global Investing & Income Strategist Robert Hsu predicts we'll "See a lot more class warfare in the United States next year, thanks to the Congressional mid-term elections in November."

But there is more to money and banking than is dreamt of by Treasury secretaries and central bankers. And that's why Money Morning's Global Income Specialist Robert Hsu is watching China's shadow banking system.

"There's probably going to be at least one default in China's underground credit system," he warned.

And The Tech-y

This year was great for technology, with the tech-heavy NASDAQ Composite Index up 33% - higher than the Standard & Poor's 500's 25%.

And 2014 will be no different.

"Americans love technology and the country is continuing to embrace new developments, products and innovations," said Money Morning's Defense & Technology specialist Michael Robinson. "The big money makers are going to be in cloud computing and biotechnology."

3D printing really got noticed in 2013, Robinson said, which means that the industry will only increase its momentum in the New Year. "We're talking about an industry with a compound growth rate of 25% per year. 3D printing is going to be everywhere."

But it's not all business...

Here at Money Morning we love keeping you abreast of the news you can profit from. And we have a good time doing it. (Besides, sometimes a good time is also a good investment.)

But even we like to kick back with a great TV series or movie, and 2014 is looking to be a bang-up year for entertainment.

The year 2013 brought the untimely end of beloved chemistry teacher-turned-drug kingpin Walter White. People distraught over the end of AMC's hit series Breaking Bad will rejoice, says Robert Hsu, as the spin-off and prequel Better Call Saul becomes the most anticipated TV show in years.

Perhaps most importantly, the long wait for the second Avengers installment comes out next year, too. Robert tells us that the new movie's villain, Thanos, "will move out of comic book obscurity and into the mainstream."

Now get started on making 2014 your most profitable year ever: This New Year's Eve, "Ring the Register" for Profits

Ron Burgundy film is second, but RV first in yuks

Ron Burgundy, of Dodge Durango TV and online ad fame, finished the weekend in second place in the box office listings. But that's not bad considering the competition, and that the Will Ferrell comedy, Anchorman 2: The Legend Continues, may be considered one of the top driving movies of the year.

Yes, driving. The absurdist comedy features bowling balls, scorpions and really bad driving, especially when it comes to a vintage motor home that rolls over.

But getting what looks to be an old General Motors RV to actually perform the needed rollover was a monumental task.

While Will Ferrell, Steve Carell, Paul Rudd and David Koechner had a great time yukking it up, pretending to roll in the crash against a green screen background.

Writer-director McKay has called it "a giant pain in the ass" to get the scene for the scene he and Ferrell wrote at two in the morning. It ended up taking three days to shoot.

But McKay had his hands full with the real exterior shots of the dramatic rollover crash.

He hired one of the best Hollywood stuntmen going and three old RVs to make sure he got the shot. But the trailer just wouldn't perform the shot.

"It's insane, there's no way we could get it to roll," says McKay. "It's just such an oddly shaped vehicle."
"We really had to find the right angle to do it," he adds. "We did three tries, and we finally got the roll and the shot we needed on the last one. Thank God."

Determining Risk And The Risk Pyramid

You might be familiar with the risk-reward concept, which states that the higher the risk of a particular investment, the higher the possible return. But many investors do not understand how to determine the risk level their individual portfolios should bear. This article provides a general framework that any investor can use to assess his or her personal risk level and how this level relates to different investments.

Risk-Reward Concept
This is a general concept underlying anything by which a return can be expected. Anytime you invest money into something, there is a risk, whether large or small, that you might not get your money back. In turn, you expect a return, which compensates you for bearing this risk. In theory the higher the risk, the more you should receive for holding the investment, and the lower the risk, the less you should receive.

For investment securities, we can create a chart with the different types of securities and their associated risk/reward profiles.



Although this chart is by no means scientific, it provides a guideline that investors can use when picking different investments. Located on the upper portion of this chart are investments that have higher risks but might offer investors a higher potential for above-average returns. On the lower portion are much safer investments, but these investments have a lower potential for high returns.

Determining Your Risk Preference
With so many different types of investments to choose from, how does an investor determine how much risk he or she can handle? Every individual is different, and it's hard to create a steadfast model applicable to everyone, but here are two important things you should consider when deciding how much risk to take:

Time Horizon Before you make any investment, you should always determine the amount of time you have to keep your money invested. If you have $20,000 to invest today but need it in one year for a down payment on a new house, investing the money in higher-risk stocks is not the best strategy. The riskier an investment is, the greater its volatility or price fluctuations. So if your time horizon is relatively short, you may be forced to sell your securities at a significant loss. With a longer time horizon, investors have more time to recoup any possible losses and are therefore theoretically more tolerant of higher risks. For example, if that $20,000 is meant for a lakeside cottage that you are planning to buy in 10 years, you can invest the money into higher-risk stocks. Why? Because there is more time available to recover any losses and less likelihood of being forced to sell out of the position too early. Bankroll Determining the amount of money you can stand to lose is another important factor of figuring out your risk tolerance. This might not be the most optimistic method of investing; however, it is the most realistic. By investing only money that you can afford to lose or afford to have tied up for some period of time, you won't be pressured to sell off any investments because of panic or liquidity issues. The more money you have, the more risk you are able to take. Compare, for instance, a person who has a net worth of $50,000 to another person who has a net worth of $5 million. If both invest $25,000 of their net worth into securities, the person with the lower net worth will be more affected by a decline than the person with the higher net worth. Furthermore, if the investors face a liquidity issue and require cash immediately, the first investor will have to sell off the investment while the second investor can use his or her other funds.

Investment Risk Pyramid
After deciding how much risk is acceptable in your portfolio by acknowledging your time horizon and bankroll, you can use the risk pyramid approach for balancing your assets.



This pyramid can be thought of as an asset allocation tool that investors can use to diversify their portfolio investments according to the risk profile of each security. The pyramid, representing the investor's portfolio, has three distinct tiers:

Base of the Pyramid – The foundation of the pyramid represents the strongest portion, which supports everything above it. This area should consist of investments that are low in risk and have foreseeable returns. It is the largest area and comprises the bulk of your assets. Middle Portion – This area should be made up of medium-risk investments that offer a stable return while still allowing for capital appreciation. Although more risky than the assets creating the base, these investments should still be relatively safe. Summit – Reserved specifically for high-risk investments, this is the smallest area of the pyramid (portfolio) and should consist of money you can lose without any serious repercussions. Furthermore, money in the summit should be fairly disposable so that you don't have to sell prematurely in instances where there are capital losses.

The Bottom Line
Not all investors are created equally. While others prefer less risk, some investors prefer even more risk than others who have a larger net worth. This diversity leads to the beauty of the investment pyramid. Those who want more risk in their portfolios can increase the size of the summit by decreasing the other two sections, and those wanting less risk can increase the size of the base. The pyramid representing your portfolio should be customized to your risk preference.

It is important for investors to understand the idea of risk and how it applies to them. Making informed investment decisions entails not only researching individual securities but also understanding your own finances and risk profile. To get an estimate of the securities suitable for certain levels of risk tolerance and to maximize returns, investors should have an idea of how much time and money they have to invest and the returns they are seeking.

Wal-Mart Lays Groundwork for Future as Markets Soar on News of Debt Ceiling Deal

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 of 1:05 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 179 points, or 1.18%, to wipe out yesterday's 133-point decline. This big jump higher came shortly after the opening bell rang as senators indicated a plan was formed to get a debt ceiling compromise passed as soon as possible. But there is still a lot that needs to be done, and the deal must be voted on by both the Senate and House of Representatives. Regardless of the number of times investors have been told a deal was just around the corner, the markets are once again rallying across the board: The S&P 500 and the NASDAQ are higher by 1.16% and 1.08%, respectively.

One big Dow mover today is Wal-Mart (NYSE: WMT  ) , up 1.1% after yesterday's analyst meeting in Arkansas. The company had a lot of big news to report, including the expansion of its grocery delivery service through a test offering in Denver. The service was previously only offered in the California cities of San Jose and San Francisco. The decision to expand the service comes as Amazon.com, eBay, and even Google are offering same-day delivery for different types of merchandise. This is clearly a way for Wal-Mart to fight the big tech companies at their own game. 

Furthermore, Wal-Mart reported that it expects overall sales to increase 1.9% to 3% in fiscal 2014, which is starting now for the company. That would put total revenue at $475 billion to $480 billion, higher than last year's $466 billion. Additionally, the company believes fiscal 2015 will produce 3% to 5% growth as it adjusts its sales strategies to meet those goals. The company also believes its square footage growth will be slightly smaller in the coming budget year than it had previously said. The company now plans to open 34 million square feet of store space during fiscal 2014 and 33 million square feet in 2015. Those figures are down from a range of 36 million to 40 million square feet in 2014 and 33 million to 37 million square feet in 2015.  

This is good news for Wal-Mart investors, but remember that it's just what the company plans to do -- not what it has done. These projections should be taken with a grain of salt. For example, the economy could tumble back into another recession, and the 3% expected revenue growth may fall apart as the company tries to make it through the rough patch. If you need Wal-Mart to grow revenue at 3% to make it a worthwhile investment, you should probably pass on the company and continue looking elsewhere.

Who Will Rule Retail?
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the "3 Companies Ready to Rule Retail" in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

What's in a (Social Security) number?

I never know what I'll find when I'm surfing the Social Security Administration's web page. It's a wealth of information, though the treasure trove of rules and statistics can be overwhelming if you don't know where to look.

The other day I stumbled on this tidbit: Social Security numbers are no longer tied to geography. Who knew?

A nine-digit Social Security number has three parts. The first set of three digits is called the “area number” and originally designated the geographical region in which the person was living at the time he or she obtained a number.

Generally, numbers were assigned beginning in the Northeast and moving westward. So people on the East Coast have the lowest numbers and those on the West Coast have the highest numbers.

The remaining six digits in the number — including the second set of two digits called the “group number” and the final set of four digits called the “serial number” — are more or less randomly assigned. They were organized to facilitate the early manual bookkeeping operations associated with the creation of Social Security in the 1930s.

Now all new Social Security numbers, including the initial “area numbers,” are assigned randomly in an effort to prevent fraud and to extend the available pool of nine-digit Social Security numbers in every state.

Randomization also introduced previously unassigned area numbers including “000,” “666” and “900-999”.

The geographic ties were severed for cards issued after June 25, 2011. The new assignment process only applies to those receiving a new number for the first time. It does not affect curren

Home Prices Rising — in China

Since August 2012, house prices in 69 of 70 Chinese cities have risen an average of 7.5%, leading to fears of a housing bubble in the Middle Kingdom. Higher prices are encouraging more development, and prime property in Beijing and Shanghai is selling for record prices.

At the same time that prices are jumping in some cities, the country is plagued with "ghost cities" like Jing Jin City, just an hour east of Beijing, where 3,000 villas and other high-end amenities go begging for residents. And there are more ghost cities spread all over the country.

Earlier this year, Shanghai's local government ordered banks to stop making loans for purchases of third homes. In Beijing, the government limited single residents to a single home. Both cities said that a 20% capital gains tax on profits from property sales would be strictly enforced.

The deputy director of the country's Ministry of Housing and Urban-Rural Development has said that 80% of home purchasers are first-time buyers who want to improve their living conditions, not investors looking to flip homes for a profit. The central government denies that a bubble is developing, despite some regional issues.

A real estate researcher estimates that, based on the record sales prices for land in Beijing and Shanghai, housing prices will rise 50% in a year. Another researcher recently told China Daily, "It is the combination of local governments, companies and banks taking advantage of the higher prices that contributes to skyrocketing prices."

Investors Become Complacent; Volatility Drops

Volatility in bond and equity markets is back down to levels that would have been familiar to investors back in 2007. Bond and share prices have all moved relentlessly higher, often into uncharted territory.

The only things that have changed for the worse are economic fundamentals.

Growth across developed economies remains subdued and though forecasters are hopeful next year turns out better than this one, that’s still a long way short of the unshakeable optimism most observers felt in the year or two before the financial crisis.

Economic gloom might support high sovereign debt prices, but it’s not so good for equities and corporate bonds. And yes it’s true that a greater share of GDP is accruing to companies than to workers, which at first light is supportive of both corporate debt and share prices. But ultimately the less money people earn the less there is to be recycled into demand, which is bad for firms generally.

Central banks are clearly stitching the whole web together. Weak economies mean central bank liquidity, which supports asset prices, fundamentals notwithstanding.

The problem is that investors have grown convinced nothing can possibly go wrong for them. The VIX, which measures S&P 500 volatility and is popularly called a fear index, is broadly back down to where it was during the boom years–if not quite to those lows. Ditto for the VStoxx volatility index which measures European equity market volatility.

The MOVE index, which measures bond market volatility, has dropped back from the summer’s highs when debt markets were rocked by fears the Federal Reserve would start trimming its bond purchase program by the autumn, and isn’t far off 2007 levels again.

To judge from central banks’ reaction functions, maybe investors have a point. The Fed relented on tapering when equities and bonds wobbled. In effect, the central bank was saying that it is putting a floor under asset prices. As long as investors believe this can be achieved, asset prices will keep climbing.

The key question then is to what degree can central banks achieve this promise? Eventually there will be enough growth to dictate higher interest rates for fear of inflationary consequences. Central banks have to consider where asset prices might be at that point if they maintain their current asymmetric response. Will they abandon price stability for fear of upsetting asset markets? Or will they accept another collapse on the assumption that it won’t be as catastrophic?

Recent history suggests that when asset markets spin out of control–in either direction–central banks find it hard to control them. What investors now have to consider is what might cause asset markets to lose control. Economic fundamentals might yet trump central banking liquidity and government interventions in pricing assets. As they’ve regularly done in Japan over the past two decades.

Should I Buy Kellogg Stock? 3 Pros, 3 Cons

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Investors' appetite for Kellogg (K) continued today, with Kellogg stock up about 4%.

Yet for the third quarter, Kellogg earnings were actually mixed. The company posted flat sales of $3.7 billion, which was in-line with Wall Street expectations. But earnings increased by 2.5% to $326 million, or 90 cents a share. The analysts' consensus was for 89 cents. But after excluding one-time items, Kellogg earnings came to 95 cents a share.

But perhaps the biggest factor moving Kellogg stock today was the announcement of a restructuring program.  It could lead to juicier profits over the next few years.

So is it time to buy Kellogg stock? Or should investors hold off? To see, let's take a look at the pros and cons:

Pros on Kellogg Stock

Brand portfolio. It's extensive. Some of Kellogg’s franchise brands include Corn Flakes, Keebler, Eggo and Rice Krispies.

But of course, Kellogg has expanded its portfolio using savvy acquisitions.  Just look at its purchase of Pringles, which was owned by Proctor & Gamble (PG). With the transaction, Kellogg got a big foothold in the lucrative snacks category, with top brands like Pop-Tarts and Cheez-Its.

But over the years, Kellogg has struck some other key deals, such as for Morningstar Farms, Nutri-Grain and Kashi.

Restructuring. Called "Project K," Kellogg announced a wide-ranging effort to realize efficiencies. The projection is for reductions of $425 million to $475 million by 2018. But to achieve this, Kellogg has announced a 7% slashing of its global workforce. It looks like a big target for cuts will be in the supply chain.

This is certainly a tough decision. But to remain competitive, Kellogg had little choice. Kellogg says it will still invest in key parts of its business, such as R&D, brand building and emerging markets.

Dividend. Kellogg stock has a juicy yield of 3%. And there should be little risk of a cutback as Kellogg continues to generate healthy cash flows. For the full-year, they are expected to total between $1.1 billion to $1.2 billion (this includes the costs of Project K.

Something else: Kellogg has paid a dividend since 1925.

Cons on Kellogg Stock

Debt. Kellogg’s leverage is on the high side. Keep in mind that long-term debt is a hefty $6.3 billion. There is also outstanding pension liabilities of $886 million. All this compares to about $2.8 billion in equity.

Even though Kellogg's strong cash flows should be enough to support the overall liabilities, there may still be a problem. That is, the company may not have much firepower to use debt financing for acquisitions.

Valuation. Kellogg stock is far from cheap. The current price-to-earnings ratio is at 24X, which is well above some of its peers. General Mills (GIS), for example, has a multiple of 18X and Kraft Foods (KRFT) is trading at 17X.

Consumer shift. The cereal business, which accounts for over 30% of overall revenues for Kellogg, is feeling pressure. The fact is that older and affluent consumers have been looking at alternatives. For example, Greek yogurt, smoothies and breakfast sandwiches have become quite popular.

At the same time, the competitive environment in the cereal market is also intense. Companies like General Mills have been aggressive with discounting and promotions.

Verdict on Kellogg Stock

Kellogg has some troublesome headwinds, as seen with the competition and sluggishness with the core cereal business. But the good news is that the company is taking swift actions to restructure its cost structure. The result should be higher cash flows, which will allow for a robust dividend and share buybacks in Kellogg stock. There will also be opportunities to pursue more acquisitions.

Kellogg is also positioned nicely for the megatrend of healthier eating habits. The company's brands like Morningstar Farms, Nutri-Grain and Kashi have become synonymous with the category.

So then should you buy Kellogg stock? Yes — if you're looking for a fairly low-risk, high-dividend-paying option for your portfolio, the pros certainly outweigh the cons.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.