Smart Money Bets Big on Small Banks

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A few weeks ago I wrote about activist investors and their increased activity in the banking sector. One of the investors I talked about was Joseph Stilwell, an investor who has been successful with small banks for a long time. He's taken a stake of at least 5% in almost 50 such stocks and has successfully pressured for a sale at a higher price in many of these small banks.

Well, Stilwell's 13F filing showing his holdings at the end of the third quarter is out now, and we can see what he has been up to in small bank stocks.

It was a quiet period for Stilwell's finds, as many bank stocks rose more than the market and there were not as many attractive entry points as earlier on the year. But he did buy a few stocks worth mentioning.

He opened a position in shares of Banc of California (BANC) in the quarter. The company is the holding company for Pacific Trust Bank and Beach Business Bank in the San Diego area. The bank has 60 locations and more than $3.5 billion in assets, and it just completed the acquisition of three institutions — The Private Bank of California, The Palisades Group and CS Financial –  which increased total assets by almost $1 billion. The shares trade right at book value. Banc of California is well positioned to benefit from a strong recovery in California and may eventually become a buyout target itself.

Stilwell's funds also bought more shares of Peoples Bancorp of North Carolina (PEBK). The bank operates in central North Carolina and has 22 branches with a little over $1 billion in assets. PEBK just reported a solid quarter, increasing earnings by more than 40% year-over-year while working down nonperforming assets by 30%. The bank also grew its deposit base in the quarter — a difficult accomplishment for many small banks this year.

North Carolina is one of the more attractive markets in the country, and most analysts expect a substantial amount of merger and acquisition activity in the state. Peoples Bancorp could be a very attractive target for a larger bank looking to expand in the region. The stock currently trades for less than 90% of book value, so there's a lot of upside potential in the shares.

Stilwell also added to a couple of his microcap banks in the quarter, but all in all it was a very quiet summer for the longtime bank activist. If you are not already heavily involved in the trade of the decade, use his holdings as a good place to search for small bank ideas.

At the time of publication, Melvin had no positions in the securities mentioned.

5 Best Dividend Stocks To Watch For 2014

According to GuruFocus Insider Data, the largest CFO sells during the past week were: Cornerstone OnDemand, United Technologies, Memsic, SBA Communications and Biogen Idec.

Cornerstone OnDemand (CSOD): CFO Perry A. Wallack Sold 225,235 Shares

CFO of Cornerstone OnDemand (CSOD), Perry Wallack, sold 225,235 shares during the past week at an average price of $53.52.

Cornerstone OnDemand has a market cap of $2.78 billion; its shares were traded at around $53.93 with and P/S ratio of 18.35.

Cornerstone OnDemand reported second quarter 2013 revenue of $44.3 million, up 66% over the second quarter last year, and second quarter bookings up 55% to $48.9 million. The company�� net loss for the quarter was $8.7 million ($0.17 per share).

President & CEO Adam L Miller sold 12,800 shares of CSOD stock on Sept. 10 at the average price of $53.43. Multiple other insiders also sold shares of CSOD stock over the past week.

United Technologies Corp (UTX): SVP and CFO Gregory Hayes Sold 146,033 Shares

SVP and CFO Gregory Hayes sold 146,033 shares of UTX stock on Sept. 16 at the average price of $109.55. Gregory Hayes owns at least 66,803 shares after this. The price of the stock has increased by 0.03% since.

United Technologies Corp has a market cap of $100.54 billion; its shares were traded at around $109.58 with a P/E ratio of 19.92 and P/S ratio of 1.61. The dividend yield of United Technologies Corp stocks is 1.95%. United Technologies Corp had an annual average earnings growth of 9.1% over the past 10 years. GuruFocus rated United Technologies Corp the business predictability rank of 2.5-star.

Memsic, Inc. (MEMS): CFO Patricia Niu Sold 107,185 Shares

CFO Patricia Niu sold 107,185 shares of MEMS stock on Sept. 17 at the average price of $4.23. The price of the stock has decreased by 0.24% since.

Memsic has a market cap of $102.6 million; its shares were traded at around $4.22 with a P/E ratio of 54.10 and P/S ratio of 1.89.

Memsic ! Inc generated second quarter net sales of $13.2 million compared to $14.4 million in the 2012 quarter. GAAP net loss was $2.3 million ($0.09 per share), compared to a net loss of $0.5 million ($0.02 per share) in the prior year quarter.

CEO Yang Zhao sold 485,654 shares of MEMS stock on Sept. 17 at the average price of $4.23. President, NA & EU Operations Paul M Zavracky and multiple directors all also sold shares of MEMS stock over the past week.

SBA Communications Corp (SBAC): Senior Vice President & CFO Brendan Thomas Cavanagh Sold 101,628 Shares

Senior Vice President & CFO Brendan Thomas Cavanagh sold 101,628 shares of SBAC stock on Sept. 16 at the average price of $77.04. Brendan Thomas Cavanagh owns at least 6,628 shares after this. The price of the stock has increased by 0.23% since.

SBA Communications Corp has a market cap of $9.87 billion; its shares were traded at around $77.22 with and P/S ratio of 8.31. SBA Communications Corp had an annual average earnings growth of 15.8% over the past 10 years.

SBA Communications Corp has released its second quarter 2013 results. Total revenues for this quarter were $324.3 million compared to $229.1 million last year. Tower Cash Flow increased 33.8% to $203.9 million. Net loss was $35.9 million compared to loss of $53.5 million in the prior year quarter.

Biogen Idec Inc (BIIB): Executive VP and CFO Paul J Clancy Sold 125,815 Shares

Executive VP and CFO of Biogen Idec Inc (BIIB) Paul J Clancy sold 125,815 shares during the past week at an average price of $238.27.

Biogen Idec has a market cap of $58.97 billion; its shares were traded at around $248.13 with a P/E ratio of 36.76 and P/S ratio of 9.95. Biogen Idec Inc had an annual average earnings growth of 14.3% over the past 5 years.

Biogen Idec Inc. has released its second quarter 2013 results ended June 30, 2013. For this quarter, total revenues were $1.7 billion, an increase of 21% compared to the same quarter last year. Non-GAAP EPS were! $2.30, a! n increase of 26% over the prior year quarter.

Multiple other insiders have also sold shares of BIIB stock over the past week.

For the complete list of stocks that Sold by their CFOs, go to: Insider Buys.

5 Best Dividend Stocks To Watch For 2014: Lexington Realty Trust (LXP)

Lexington Corporate Properties Trust operates as a self-managed and self-administered real estate investment trust (REIT). The company acquires, owns, and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. It also provides investment advisory and asset management services to institutional investors in the net lease area. As of June 30, 2005, the company operated 185 properties and managed 2 properties. Lexington Corporate Properties Trust has elected to qualify as a REIT for federal income tax purposes. As a REIT, it would not be taxed on the portion of its income, which is distributed to shareholders, provided it distributes at least 90% of its taxable income. The company was founded in 1991 and is based in New York City.

Advisors' Opinion:

• [By Brad Thomas]

  Compared with the public REIT peers, I believe that Chambers Street will compare favorably to W.P. Carey (WPC) and Lexington Realty Trust (LXP). Both of these REITs own larger box assets and they both have conservative and well-positioned balance sheets. Here is a snapshot of Chambers Street's capitalization:

• [By CRWE]

  Lexington Realty Trust (NYSE:LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, reported that it would release its third quarter 2012 results the morning of Tuesday, November 6, 2012. Lexington will conduct a teleconference that same day at 11:00 a.m., Eastern Time.

5 Best Dividend Stocks To Watch For 2014: Avon Products Inc. (AVP)

Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.

Advisors' Opinion:

• [By Rich Duprey]

  Health and beauty products provider Avon Products� (NYSE: AVP  ) �will pay a regular quarterly dividend of $0.06 on�June 3 �to shareholders of record at the close of business on May 14. That's the same amount it declared in February and November.
  

• [By Paul Ausick]

  Big Earnings Movers: Starbucks Corp. (NASDAQ: SBUX) is up 0.3% at $81.06 on good earnings. Facebook Inc. (NASDAQ: FB) is up 2.6% at $50.26 on another good report. Exxon Mobil Corp. (NYSE: XOM) is up 1% at $89.70. Avon Products Inc. (NYSE: AVP) is down 21.6% at $17.56 after a very poor showing.

• [By Brian Pacampara]

  Alticor
  Avon Products (NYSE: AVP  )
  Newell Rubbermaid (NYSE: NWL  )

  Sources: S&P Capital IQ and Motley Fool CAPS.

Top Financial Companies For 2014: SuperValu Inc.(SVU)

SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. Its stores offer grocery, general merchandise, health and beauty care, pharmacy, and fuel products. The company operates stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher?s, Jewel-Osco, Lucky, Shaw?s, Shop ?n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates approximately 2,394 traditional and hard-discount retail food stores, including 899 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers, as well as provides logistics support services. SUPERVALU was founded in 1871 and is based in Eden Prairie, Minnesota.

Advisors' Opinion:

• [By Jeremy Bowman]

  What: SUPERVALU (NYSE: SVU  ) was looking like a steal today, climbing as much as 12% after reporting quarterly earnings this morning.

  So what: The once-battered supermarket stock has come roaring back in the past several months, gaining more than 250% at today's peak from its bottom last fall. SUPERVALU actually opened the day lower as its adjusted earnings fell to negative $0.14 a share from a gain of $0.02 a share in the quarter a year ago. Without adjustments, the company actually lost $6.65 per share this quarter. Still, the stock jumped on comments from management about prospects for its Save-A-Lot chain,�and plans to revamp SUPERVALU's cost structure under the direction of new CEO Sam Duncan. Duncan talked up the steps the company's taken to "right-size" corporate overhead and decentralize leadership in the earnings release.

• [By Caroline Bennett]

  Grocery store chain SUPERVALU (NYSE: SVU  ) has appointed Bruce Besanko to be its new executive vice president and chief financial officer, effective as of Aug. 7.

5 Best Dividend Stocks To Watch For 2014: Linear Technology Corporation(LLTC)

Linear Technology Corporation, together with its subsidiaries, designs, manufactures, and markets a line of linear integrated circuits. The company's products include amplifiers, comparators, voltage regulators, voltage references, monolithic filters, linear regulators, DC-DC converters, power over Ethernet controllers, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, Advisors' Opinion:

• [By Monica Gerson]

  Linear Technology (NASDAQ: LLTC) is projected to post its Q1 earnings at $0.46 per share on revenue of $339.26 million.

  Marten Transport (NASDAQ: MRTN) is estimated to post its Q3 earnings at $0.23 per share on revenue of $168.28 million.

• [By Damian Illia]

  Although the stock has done pretty well, investors can have another option of investing in the tech sector with Linear Technology Corporation (LLTC) because there is no other semiconductor company that can be able to match the company's profitability. Linear Technology offers thousands of analog products to original equipment manufacturers. The company麓s plan is to specialize in market segments that require high-performance analog with focus on industrial and automotive products. Customers base decisions on quality and Linear麓s chip are considered to be products that have long life and superior technology. This is considered in prices and makes attractive margins to the company.

5 Best Dividend Stocks To Watch For 2014: Cummins Inc.(CMI)

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Advisors' Opinion:

• [By Dan Caplinger]

  Navistar has been under pressure for a long time. Not only did the SEC have to investigate the company last year over alleged poor disclosure of its weak financial condition, but Navistar had to resort to making a deal with rival Cummins (NYSE: CMI  ) in order to obtain engine technology that would allow it to comply with EPA emissions standards. With new regulations coming in future years, Navistar faces the ongoing challenge of keeping up with higher standards.

Nasdaq nears 4,000: Are tech stocks overvalued?

Investors are going crazy over tech stocks again, pushing the Nasdaq ever closer to 4000, but some wonder if the mania is showing signs of frothiness.

It's almost like 2000 all over again in some ways. Money-losing Internet companies are launching IPOs — this time it's online messaging company Twitter. Amazon.com's shares are soaring even as it posts a quarterly loss. Investors are clamoring to invest in search engines, driving shares of Google to record highs over $1,000 a share.

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But in perhaps the most dramatic sign of the comeback of technology stocks, the Nasdaq composite index has raced to levels not seen since Sept. 8, 2000, and is approaching 4000. Powered by gains in Microsoft and Amazon shares Friday, the Nasdaq added 14.40 points to 3943.36, and has soared 31% this year.

"The animal spirits are back. The pendulum has swung from fear to greed," says Robert Maltbie of Millennium Asset Management. "If you can grow, and Microsoft, Google and Amazon have shown they can, investors will find you and buy."

The move back toward 4000 has been a major trip down memory lane for investors. The last time the index was above 4000 was Sept. 7, 2000, two months before the presidential election between George W. Bush and Al Gore. Back then, now fallen companies Enron and Lehman Bros. still existed, and shares of Internet darling Cisco Systems were nearly triple where they are now.

Investors watching tech stocks move up are noticing several key trends, including:

•Search for winners. Investors are trying to trying to locate the winners likely to capitalize on a dramatic shift to mobile devices and cloud computing, where profits could be enormous, says Colin Sebastian, analyst at Robert W. Baird. Microsoft, Amazon and Google are all well positioned to take advantage of this shift that will result in strong growth, he says. "These companies are creating! news businesses and industries," he says.

•Pockets of tech enthusiasm. Few areas of technology are posting the kind of effervescent behavior as social media stocks. The basket of social networking giants Facebook and LinkedIn, online game company Zynga and online review site Angie's List and Yelp have more than doubled, on average, this year. Shares of Yelp are up 257% along this year. "Is tech in a bubble?" Maltbie says. "Some areas are."

•A relative calm when looking at the entire industry. While there are certainly cases of tech stocks that are getting ahead of reality, that's not the case with tech overall, though. It's not like investors universally are bidding up shares of all techs, says Dan Veru of Palisade Capital Management. Qualcomm, a darling for years due to its business of designing chips for mobile devices, is up 10% this year, lagging the Standard & Poor's 500.

And while investors are more interested than they were in tech stocks a year ago, they're not paying "stratospheric valuations," says Doug Sandler of Riverfront Investment Group. Tech stocks are trading for 13.9 times their forecast earnings for the next four quarters, which is tied for the third-lowest valuation of the 10 sectors tracked by S&P Capital IQ. Consumer discretionary stocks are trading for a much richer 18.5 times earnings.

"You might see a bubble in different areas, like social media," Sandler says. "But we're definitely not seeing a tech bubble."

Parents Powerfully Influence Their Children’s Charity

Men and women have been shown to exhibit different motivations and behavior in their charitable giving, but little research has been done about how boys and girls learn to become charitable adults, according to the Women’s Philanthropy Institute at the Indiana University Lilly Family School of Philanthropy.

The institute’s recently released Women Give 2013 study investigated two ways in which parents teach children about giving and whether girls and boys respond differently to those approaches. It also examined whether differences existed by age, income and race.

The study sample comprised children from the millennial generation (born 1980 to 2000) across two time periods, 2002 to 2003 and 2007 to 2008, within the same households.

Key findings included the following:

The 2013 report is the fourth in a series of research reports conducted at the Women’s Philanthropy Institute that focus on gender differences in giving to charity. A previous report showed that boomer women were more charitable than their male counterparts.

---

Check out Boomer Women Much More Charitable Than Male Counterparts on ThinkAdvisor.

Baron Funds Comments on Vail Resorts Inc.

Shares of Vail Resorts, Inc. (MTN), an operator of ski resorts, increased 12.8% in the third quarter as investors became excited about the installation of the company's summer activities. Summer activities, including the zip line installed in August, could cut the company's seasonal losses in half. We continue to believe the acquisition of the Canyons ski resort in Utah should further help increase season pass sales and earnings. (David Baron)

From Ron Baron's Baron Funds third quarter 2013 commentary.

Also check out: Ron Baron Undervalued Stocks Ron Baron Top Growth Companies Ron Baron High Yield stocks, and Stocks that Ron Baron keeps buying

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Tech stocks: eBay, IBM slide; Google earnings next

Shares of eBay and IBM have taken a hit in early morning trading following quarterly earnings reports that fell short of Wall Street expectations.

IBM stock has plunged nearly 6.5% after reporting Wednesday its revenue dipped 4% during the third quarter to $23.7 billion. Analysts had predicted IBM revenue to reach $24.8 billion. Net income rose 6%.

Meanwhile, a cautious holiday outlook for e-commerce giant eBay sent their shares tumbling more than 5%. On Wednesday, eBay CEO John Donahoe cited uncertainty over the U.S. government situation as reason for the forecast. Later that evening, President Barack Obama signed a budget deal to end the shutdown.

The company did post solid gains during the third quarter, with revenue rising 14% to $3.9 billion and profits soaring 17%.

After the markets close Thursday, Google will reveal third quarter financial results, rounding out a busy week for technology stocks.

5 Best Safest Stocks To Invest In 2014

Last quarter, Google shares dove after the company's profit and revenue missed Wall Street forecasts. Since then, the company launched the Moto X, designed by Google-owned smartphone maker Motorola.

For the third quarter, analysts predict an earnings per share of $10.35 off revenue of $14.8 billion.

Follow Brett Molina on Twitter: @bam923.

Can United Technologies Continue Its Move to All Time Highs?

With shares of United Technologies (NYSE:UTX) trading around $103, is UTX an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock's Movement

United Technologies provides technology products and services to building systems and aerospace industries all around the world. The company operates in six segments: Otis, Carrier, UTC Fire & Security, Pratt & Whitney, Hamilton Sundstrand, and Sikorsky. Air travel and defense have been on the rise over the last several years as governments around the world consistently demand improved aerial technology. Companies and consumers also demand improved efficiency and reduced prices, further fueling demand. Aerial technology is gaining market share as a preferred method of transportation, so look for companies like United Technologies to see rising profits.

United Technologies, which supplies the U.S. military with helicopters and jet engines, has said that 5,000 jobs may be at risk due to the government shutdown. United Technologies said on Wednesday in an announcement seen by Bloomberg that an extended shutdown would lead to 2,000 jobs in Connecticut, Florida, and Alabama being cut on October 7. Two thousand more layoffs within United Technologies would occur at Pratt & Whitney and UTC Aerospace Systems if the shutdown extended into the next week.

T = Technicals on the Stock Chart Are Strong

5 Best Cheap Stocks To Own For 2014

United Technologies stock has been flying higher during recent quarters. The stock is currently pulling-back from highs for the year so it may need time to form a base before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, United Technologies is trading between its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
United Technologies Options	25.84%	96%	94%

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

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

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	16.33%	286.10%	53.44%	6.12%
Revenue Growth (Y-O-Y)	15.93%	15.97%	14.37%	5.67%
Earnings Reaction	2.94%	-0.79%	0.68%	-0.97%

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

P = Excellent Relative Performance Versus Peers and Sector

How has United Technologies stock done relative to its peers, Boeing (NYSE:BA), General Electric (NYSE:GE), Triumph Group (NYSE:TGI), and sector?

	United Technologies	Boeing	General Electric	Triumph Group	Sector
Year-to-Date Return	25.62%	52.59%	14.15%	8.33%	19.43%

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

Conclusion

United Technologies provides essential and highly demanded technology products and services to companies large and small across the globe. It is being reported that the company may cut a number of jobs due to the government shutdown. The stock has been flying higher in recent quarters and is now trading near all time high prices. Over the last four quarters, earnings and revenues have been rising, however, investors have had mixed feelings about recent earnings announcements. Relative to its peers and sector, United Technologies has been a year-to-date performance leader. Look for United Technologies to OUTPERFORM.

10 Best Biotech Stocks For 2014

 Today, we review two big uptrends we've urged you to profit from...   One is speculative... one is conservative. Together, they make for a good pair.    The first trend is biotechnology. Regular readers know we see biotechnology as one of the great "boom and bust" sectors of the stock market. With its promise of individualized medicine, cancer cures, and miracle drugs, few sectors capture imaginations and speculative money as well as biotechnology.   As Steve Sjuggerud has written several times, if you catch a good biotech boom, you can make extraordinary gains.   Back in November, we urged to you buy biotech. Around that time, the sector was digesting a big post-election decline. We noted how the decline had washed away a lot of bullish enthusiasm... but the bullish long-term picture was intact.

10 Best Biotech Stocks For 2014: Fuse Science Inc (DROP)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Company is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company�� products consist of EnerJel, PowerFuse and ElectroFuse. Ene! rJel is a topical product leveraging some of its technology, which is designed to address muscle fatigue and soreness, before, during and after physical activity. The product contains a natural anti-inflammatory and energy source which is directly applied to the problem area. PowerFuse contains natural ingredients, causes no sugar crash with zero calories and less than half the caffeine of an eight ounce cup of premium coffee. It is available in a great tasting Berry Blast Flavor. ElectroFuse contains natural ingredients, causes no sugar crash with zero calories, is easily portable and is available in a great tasting Salty-Sweet flavor.

10 Best Biotech Stocks For 2014: Inovio Pharmaceuticals Inc (INO)

Inovio Pharmaceuticals, Inc., incorporated on June 29, 1983, is engaged in the development of a new generation of vaccines, called synthetic vaccines, focused on cancers and infectious diseases. The Company's SynCon technology enables the design of universal vaccines capable of providing cross-protection against existing or changing strains of pathogens, such as influenza and human immunodeficiency virus (HIV). The Company's electroporation delivery technology uses brief, controlled electrical pulses to increase cellular uptake of the vaccine. Its clinical programs include cervical dysplasia (therapeutic), avian influenza (preventive), prostate cancer (therapeutic), leukemia (therapeutic), hepatitis C virus (HCV) and HIV vaccines. It is advancing preclinical research and clinical development for a universal seasonal/pandemic influenza vaccine, as well as preclinical work for other products, including malaria and prostate cancer vaccines. Its partners and collaborators include University of Pennsylvania, Drexel University, National Microbiology Laboratory of the Public Health Agency of Canada, Program for Appropriate Technology in Health/Malaria Vaccine Initiative (PATH/MVI), National Institute of Allergy and Infectious Diseases (NIAID), Merck, ChronTech, University of Southampton, United States Military HIV Research Program (USMHRP), the United States Army Medical Research Institute of Infectious Diseases (USAMRIID) and HIV Vaccines Trial Network (HVTN). As of December 31, 2011 it owned 16.1% interest in VGX Int��.

Inovio�� Solution

The Company�� synthetic vaccine platform consists of its SynCon vaccine design process and electroporation delivery technology. It has developed a preclinical and clinical stage pipeline of vaccines. The Company�� synthetic vaccines are designed to prevent a disease (prophylactic vaccines) or treat an existing disease (therapeutic vaccines). Its synthetic vaccine consists of a deoxyribonucleic acid (DNA) plasmid encoding a selected antigen! (s), which is introduced into cells of humans or animals with the purpose of evoking an immune response to the encoded antigen. The Company�� synthetic vaccines are designed to generate specific antibody and/or T-cell responses.

The Company�� SynCon technology provides processes that employ bioinformatics, which combine extensive genetic data and sophisticated algorithms. Its design process uses the genetic make-up of a common antigen(s) from multiple strains of a virus within a viral sub-type or taxonomic group (family) of pathogens, such as HIV, hepatitis C virus (HCV), human papillomavirus (HPV), influenza and other diseases to synthetically create a new antigen for the desired pathogen target that does not exist in nature. Its synthetic vaccine candidates are being delivered into cells of the body using its electroporation (EP) DNA delivery technology.

Cancer Synthetic Vaccines

The Company has two broad types of cancer vaccines: preventive (or prophylactic) vaccines, which are intended to prevent cancer from developing in healthy people, and treatment (or therapeutic) vaccines, which are intended to treat an existing cancer by strengthening the body�� natural defenses against the cancer. Two types of cancer preventive vaccines are available in the United States. The United States Food and Drug Administration (the FDA) has approved two vaccines, Gardasil and Cervarix that protect against infection by the two types of HPV-types 16 and 18-that cause approximately 70% of all cases of cervical cancer worldwide. In addition, Gardasil protects against infection by two additional HPV types, 6 and 11, which are responsible for about 90% of all cases of genital warts in males and females but do not cause cervical cancer.

Cervarix manufactured by GlaxoSmithKline, is composed of virus-like particles (VLPs) made with proteins from HPV types 16 and 18. Cervarix is approved for use in females��ages 10 to 25 for the prevention of cervical cancer caused by! HPV type! s 16 and 18. Gardasil manufactured by Merck, is approved for use in females for the prevention of cervical cancer, and some vulvar and vaginal cancers, caused by HPV types 16 and 18 and for use in males and females for the prevention of genital warts caused by HPV types 6 and 11. The vaccine is approved for these uses in females and males ages 9 to 26. The FDA has also approved a cancer preventive vaccine that protects against hepatitis B virus (HBV) infection.

Inovio�� VGX-3100 is designed to raise immune responses against the E6 and E7 genes of HPV types 16 and 18 that are present in both pre-cancerous and cancerous cells transformed by these HPV types. E6 and E7 are oncogenes that play an integral role in transforming HPV-infected cells into cancerous cells. In March 2011, it initiated a randomized, double-blind Phase II study of VGX-3100 delivered using the CELLECTRA intramuscular electroporation device in women with HPV Type 16 or 18 and diagnosed with, but not yet treated for, cervical intraepithelial neoplasia (CIN) 2/3. The study is designed to enroll 148 subjects. In January 2011, it announced the publication of a scientific paper in the journal Human Vaccines detailing potent immune responses in a preclinical study of its SynCon vaccine for prostate cancer targeting two antigens, prostate specific antigen (PSA) and prostate specific membrane antigen (PSMA).

In January 2011, the Company announced the regulatory approval of a Phase II clinical trial (WIN Trial) to treat leukemia utilizing its new ELGEN 1000 automated vaccine delivery device. The single dose level, Phase II study, called WT1 immunity via DNA fusion gene vaccination in haematological malignancies by intramuscular injection followed by intramuscular electroporation. Cancer Vaccines encodes for hTERT, an antigen related to non-small cell lung, breast and prostate cancers. The vaccine is delivered using its electroporation delivery technology.

Infectious Disease Synthetic Vaccines

In Marc! h 2011, the Company announced the initiation of a follow-on open label, single dose Phase II clinical study in collaboration with ChronTech of the ChronVac-C HCV DNA vaccine delivered using its electroporation technology in treatment naive HCV infected individuals. Its HIV vaccines consist of candidates for HIV prevention, as well as therapy or treatment. PENNVAX-B is designed to target HIV clade B (most commonly found in the United States, North America, Australia and the European Union (EU). PENNVAX-G is designed to target HIV clades A, C and D, which are more commonly found in Asia, Africa, Russia and South America. This Phase I clinical study of PENNVAX-B (HVTN-080) vaccinated 48 healthy, HIV-negative volunteers to assess safety and levels of immune responses generated by Inovio�� PENNVAX-B vaccine delivered with its CELLECTRA electroporation device. PENNVAX-B is a SynCon vaccine that targets HIV gag, pol, and env proteins.

The Company�� VGX-3400X targets H5N1. The vaccine consists of three distinct DNA plasmids coded for a consensus hemagglutinin (HA) antigen derived from different H5N1 virus strains; a consensus neuraminidase (NA) antigen derived from different N1 sequences; and a consensus nucleoprotein (NP) fused to a small portion of the m2 protein (m2E) based on a broader cross-section of influenza viruses in addition to H5N1 and H1N1. Conventional vaccines are strain-specific and have limited ability to protect against genetic shifts in the influenza strains they target. They are therefore modified annually in anticipation of the next flu season�� new strain(s). It is focused on developing DNA-based influenza vaccines able to provide broad protection against known as well as newly emerging, unknown seasonal and pandemic influenza strains.

Animal Health/Veterinary

VGX Animal Health, Inc. (VGX AH), a majority-owned subsidiary, has licensed LifeTide, a plasmid-based growth hormone releasing hormone (GHRH) technology for swine. LifeTide is one of onl! y four DN! A-based treatments approved for use in animals and is the only DNA-based agent delivered using electroporation that has been granted marketing approval (Australia). VGX AH is also developing a GHRH-based treatment for cancer and anemia in dogs and cats. It is developing a synthetic vaccine for foot-and-mouth disease (FMD) administered by its vaccine delivery technology. The FMD virus is one of the most infectious diseases affecting farm animals, including cattle, swine, sheep and goats, and is a serious threat to global food safety.

The Company competes with Crucell N.V, Sanofi-Aventis, Novartis, Inc., GlaxoSmithKline plc, Merck, Pfizer, AstraZeneca, Inc., Novartis, Inc., MedImmune and CSL.

Advisors' Opinion:

• [By George Budwell]

  Inovio Pharmaceuticals (NYSEMKT: INO  ) develops DNA-based vaccines and delivers them using a proprietary electroporation technique. Shares of Inovio have been a roller coaster all year long, and have certainly been the playground of day traders. Last week, Inovio shares lost more than 10% of their value on heavy volume, suggesting the stock may continue to experience downward pressure. This rapid move downward is surprising because the company recently signed a licensing deal with Roche (NASDAQOTH: RHHBY  ) to commercialize Inovio's multi-antigen DNA immunotherapies for prostate cancer and hepatitis B. As part of the deal, Inovio received $10 million upfront, and milestone payments could go as high as $412 million.

• [By Sean Williams]

  No fairytale ending
  Fairytale endings work great in the movies, but you rarely see them come to fruition in the real world. Small-cap biopharmaceutical Inovio Pharmaceuticals (NYSEMKT: INO  ) has seen shares nearly triple since April on the heels of multiple intriguing studies, but will the glass slipper fit over the long term?

• [By Sean Williams]

  On the clinical data front, Alnylam Pharmaceuticals (NASDAQ: ALNY  ) and Inovio Pharmaceuticals (NYSEMKT: INO  ) both put investors in their happy place.

Hot Financial Companies For 2014: Prima BioMed Ltd (PRR)

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

10 Best Biotech Stocks For 2014: (DYMTF)

Dynamotive Energy Systems Corporation engages in the development and commercialization of energy solutions for biomass-to-liquid fuel conversion based on its fast pyrolysis technology. The company?s fast pyrolysis technology uses biomass or biomass waste feedstock to produce BioOil as a fuel and char. BioOil is a renewable fuel, which could be replaced with natural gas, diesel, and other fossil fuels to produce power, mechanical energy, and heat in industrial boilers, fuel gas turbines, and fuel reciprocating engines. The company has a strategic alliance with Tecna S.A. of Argentina to develop commercial energy systems based on Dynamotive?s pyrolysis technology in Latin America and other markets on a non-exclusive basis. It has operations in Canada, the United States, Argentina, and the United Kingdom. The company was formerly known as Dynamotive Technologies Corporation and changed its name to Dynamotive Energy Systems Corporation in June 2001. The company was founded i n 1991 and is headquartered in Richmond, Canada.

10 Best Biotech Stocks For 2014: Organovo Holdings Inc (ONVO.PK)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The C ompany has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an aut! om! ated device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

10 Best Biotech Stocks For 2014: Regeneron Pharmaceuticals Inc.(REGN)

Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes pharmaceutical products for the treatment of serious medical conditions in the United States. The company?s commercial product includes ARCALYST (rilonacept) injection for subcutaneous use for the treatment of cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome in adults and children. Its products under Phase III clinical development stage consist of VEGF Trap-Eye, an aflibercept ophthalmic solution developed using intraocular delivery for the treatment of serious eye diseases; ARCALYST for the prevention of gout flares in patients initiating uric acid-lowering treatment; and Aflibercept (VEGF Trap), which is developed in oncology. The company?s earlier stage clinical programs include various human antibodies, such as REGN727 for low-density lipoprotein cholesterol reduction, REGN88 for rheumatoid arthritis and ankylosing spondylitis; REGN668 for atopic dermatitis and asthma; REGN421 and REGN910 for oncology; REGN475 for the treatment of pain; and REGN728 and REGN846. It also conducts preclinical research programs in the areas of oncology and angiogenesis, ophthalmology, metabolic and related diseases, muscle diseases and disorders, inflammation and immune diseases, bone and cartilage, pain, cardiovascular diseases, and infectious diseases. The company distributes its products through third party service providers. It has strategic collaboration with sanofi-aventis Group to discover, develop, and commercialize human monoclonal antibodies; and Bayer HealthCare LLC to develop and commercialize VEGF Trap. Regeneron Pharmaceuticals, Inc. was founded in 1988 and is based in Tarrytown, New York.

Advisors' Opinion:

• [By Brian Orelli]

  Sanofi and Regeneron Pharmaceuticals (NASDAQ: REGN  ) have one that's codenamed REGN727/SAR236553. In a phase 2 trial, it reduced bad LDL cholesterol by up to 67.9% compared with a 10.7% reduction in patients receiving placebo.

10 Best Biotech Stocks For 2014: Gilead Sciences Inc.(GILD)

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Atripla, Truvada, Viread, Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa for the treatment of chronic angina; Vistide, an antiviral medication for the treatment of cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company?s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular a ge-related macular degeneration; and Lexiscan/Rapiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Its products under the Phase III clinical trials consist of Cobicistat, a pharmacoenhancer that is under evaluation as a boosting agent for HIV medicines; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; Integrase Single-Tablet, a ?Quad? regimen of elvitegravir, cobicistat, tenofovir disoproxil fumarate, and emtricitabine for the treatment of HIV/AIDS in treatment-naive patients; and Aztreonam for inhalation solution for the treatment of cystic fibrosis patients with Pseudomonas aeruginosa. The company?s Phase II clinical trials products comprise Cicletanine, Ranolazine, and Aztreonam, as well as GS 9190, GS 9256, and GS 9451. Its Phase I clinical trial products include GS 7340, GS 5885, GS 6620, GS 9620, and GS 6624. The company was founded in 1987 and is headquartered in Fost er City, California.

Advisors' Opinion:

• [By Brian Orelli]

  Gilead Sciences (NASDAQ: GILD  ) fired off a solid warning shot over AbbVie's (NYSE: ABBV  ) bow on Thursday. The biotech released phase 2 data today, demonstrating that a combination of sofosbuvir and ledipasvir works extremely well, perhaps even better, when a third generic drug ribovarin is added.

• [By David Williamson]

  In this video, David Williamson reviews some of his favorite biotech firms. Many analysts have thrown their weight behind Biogen� (NASDAQ: BIIB  ) and its new BG12 drug for multiple sclerosis. However, David favors Gilead� (NASDAQ: GILD  ) over Biogen since Gilead�has a�larger, more diverse product pipeline. Celgene� (NASDAQ: CELG  ) is the No. 1 biotech in David's opinion since it also has blockbuster drugs but a PEG of less than 1.0. Amgen� (NASDAQ: AMGN  ) is�a big company with more products in development than most people realize. Overall, for value and future earnings potential, David likes Celgene the best.

10 Best Biotech Stocks For 2014: ArQule Inc.(ARQL)

ArQule, Inc., a clinical-stage biotechnology company, engages in the research and development of cancer therapeutics directed toward molecular targets and biological processes. Its lead product ARQ 197 is non-adenosine triphosphate competitive inhibitor of the c-Met receptor tyrosine kinase, which is being evaluated as monotherapy and in combination therapy in a Phase II clinical development program that includes trials in non-small cell lung cancer, c-Met-associated soft tissue sarcomas, pancreatic adenocarcinoma, hepatocellular carcinoma, germ cell tumors, and colorectal cancer. The company is also developing ARQ 621, a Phase I program focused on inhibition of the Eg5 kinesin spindle protein. Its clinical stage products include ARQ 501, ARQ 761, and ARQ 171, which are designed to kill cancer cells selectively while sparing normal cells through the direct activation of DNA damage response/checkpoint pathways. In addition, the company involves in pre-clinical development o f B-RAF and AKIP Kinase inhibitors. The company has collaborations with Kyowa Hakko Kirin Co., Ltd. and Daiichi Sankyo Co., Ltd. ArQule, Inc. was founded in 1993 and is headquartered in Woburn, Massachusetts.

10 Best Biotech Stocks For 2014: Celsion Corporation(CLSN)

Celsion Corporation, an oncology drug development company, develops and commercializes targeted chemotherapeutic oncology drugs based on its proprietary heat-activated liposomal technology. The company is developing its lead product, ThermoDox that is in Phase III clinical trial for primary liver cancer; and in phase II clinical trial for treatment of recurrent chest wall breast cancer. It has a license agreement with Yakult Honsha to commercialize and market ThermoDox for the Japanese market. The company also has a license agreement with Duke University under which it received exclusive rights to commercialize and use Duke's thermo-liposome technology. In addition, Celsion Corporation has a joint research agreement with Royal Phillips Electronics to evaluate the combination of Phillips' high intensity focused ultrasound with its ThermoDox to determine the potential of this combination to treat a range of cancers. The company was founded in 1982 and is based in Columbia, M aryland.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the Move: NQ Mobile Inc. (NYSE: NQ) is up 26% at $11.09 as the company fights back against a short-seller report. Celsion Corp. (NASDAQ: CLSN) is up 339.3% at $5.14 following a reverse 1:4.5 stock split. Micron Technology Inc. (NASDAQ: MU) is up 4.7% at $17.50.

10 Best Biotech Stocks For 2014: ViroPharma Incorporated(VPHM)

ViroPharma Incorporated, a biotechnology company, develops and commercializes therapeutic products that address serious diseases in the United States and internationally. It focuses on developing products used by physician specialists or in hospital settings. The company markets and sells Cinryze, a C1 esterase inhibitor therapy for the routine prophylaxis against angioedema attacks in adolescent and adult patients with hereditary angioedema, a life-threatening genetic disorder; and Vancocin HCl capsule, an oral capsule formulation for the treatment of C. difficile-associated diarrhea (CDAD) and to treat enterocolitis caused by staphylococcus aureus, including methicillin-resistant strains. It also offers Plenadren, an orphan drug for treatment of adrenal insufficiency in adults; Buccolam, a oromucosal solution for treatment of prolonged, acute, and convulsive seizures in infants, toddlers, children, and adolescents; and maribavir, an antiviral compound for the treatment o f CMV disease through a license agreement with GlaxoSmithKline. The company?s primary development programs include Cinryze, a C1 esterase inhibitor for management of hereditary angioedema; and VP 20621, a non-toxigenic strain of C. difficile. Its clinical stage drug candidate comprises VP-20629 for the treatment of Friedreich?s Ataxia. The company sells its products directly to wholesale drug distributors and specialty pharmacies/distributors. ViroPharma Incorporated was founded in 1994 and is headquartered in Exton, Pennsylvania.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of ViroPharma (NASDAQ: VPHM  ) , a biotechnology company specializing in treating rare diseases, rose as much as 14% after a report from Reuters noted preliminary buyout interest in the company.

Top Growth Companies To Own For 2014

Noah Holdings Ltd. (NOAH), a Chinese wealth-management company, jumped to the highest level in more than two years in New York after raising its 2013 profit estimate.

Noah�� American depositary receipts surged 25 percent to $16.28 as of 12:53 p.m., gaining the most since February 2012. They earlier soared as much as 27 percent. Trading volume was six times the daily average over the past three months, data compiled by Bloomberg showed.

The Shanghai-based company raised its 2013 adjusted net income forecast to as much as $55 million in a statement yesterday, 49 percent more than an estimate of up to $37 million given on May 6. Noah is scheduled to report second-quarter earnings on Aug. 21.

��e were surprised by Noah�� big upside revision to its 2013 profit guidance, which was far ahead of our previous estimate,��Ella Ji, an analyst at Oppenheimer & Co. in New York, said by phone. ��he big growth is likely to benefit from its good performance in real-estate fund management business.��

Top Growth Companies To Own For 2014: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Chris Hill]

  Waste Management (NYSE: WM  ) reported a slight decline in first-quarter profits but revenues increased. Shares of the trash giant hit their highest point since 1999. In this installment of Motley Fool Money, our analysts talk about the future of Waste Management.

• [By Geoff Gannon]

  For example, a company involved in a mundane business like running hair salons ��like Regis (RGS), dentist offices ��like Birner Dental (BDMS), grocery stores ��like Village Supermarket (VLGEA), or garbage dumps ��like Waste Management (WM), may be easy to estimate as essentially a no-growth business.

Top Growth Companies To Own For 2014: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of staffing agency TrueBlue (NYSE: TBI  ) jumped 10% today after the company reported earnings.

  So what: Revenue jumped 19%, to $422.3 million, and beat estimates of $420.2 million from Wall Street. Adjusted earnings per share were also up 19%, to $0.31, outpacing estimates by $0.05.�

• [By Jonathan Yates]

  When looking at small cap stocks, it is useful to compare the company with others that have expanded in both share price and size. For those considering investing in the $100 billion staffing industry, the growth of TrueBlue (NYSE: TBI) shows what could be the potential path for Labor SMART (OTCBB: LTNC), as both operate in the $29 billion demand labor sector. Other firms have done well in the staffing industry include Paychex (NASDAQ: PAYX) and ManPower Group (NYSE: MAN).

Best Casino Companies To Own For 2014: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Advisors' Opinion:

• [By Vanin Aegea]

  I have heard many people comment about the insurance policies for cars, houses, life, assets, etc. The arguments always revolve around the same issue: Is it really necessary? What are the chances to be hit by a Hurricane, or to meet a sudden death? Well, nobody really knows. Some individuals however, sleep better when they know a policy backs their life investments. Here, I will look into three insurance companies that concentrate on different policies, or geographies. These are: China Life (LFC), and Conseco (CNO).

• [By David Fried, Editor, The Buyback Letter]

  Insurance holding company CNO Financial Group (CNO) and its insurance subsidiaries��rincipally Bankers Life and Casualty Company, Washington National, and Colonial Penn Life Insurance Company��erve pre-retiree and retired Americans.

Top Growth Companies To Own For 2014: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:

• [By Brian Pacampara]

  What: Shares of medical device company Thoratec (NASDAQ: THOR  ) sank 12% today after its quarterly results missed Wall Street expectations. �

Top Growth Companies To Own For 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Andrew Marder]

  Although a report in yesterday's New York Times highlighted the practice, the truth has been out there for months. Nordstrom (NYSE: JWN  ) had a trial program where it used video surveillance and Wi-Fi signals in smartphones to track customers in the store. It wanted to use the data to help it connect with customers, and then to sell them more things. The company posted announcements about the program in stores, and after complaints, it ended the program in May this year.

Top Growth Companies To Own For 2014: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Monica Gerson]

  Intuitive Surgical (NASDAQ: ISRG) is expected to post its Q3 earnings at $3.40 per share on revenue of $525.99 million.

  Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

• [By David Williamson]

  Exact Sciences' (NASDAQ: EXAS  ) phase 3 trial for its colon cancer detection test passed, but the stock dropped 20%. What gives? In this video, David Williamson goes into the details of Exact Sciences' DNA-based test. The overall effectiveness of the Cologuard test was 92%. However, the detection rate was 42%, less than colonoscopy, and the 87% overall accuracy rate leads to a higher false positive rate than most doctors would like to see. Is Exact Sciences doomed? Not really -- it has $100 million in the bank. It may be a takeover target, and David sees Intuitive Surgical� (NASDAQ: ISRG  ) as a possible buyer.

How Capital Markets Will React to FOMC News

NEW YORK (TheStreet) -- In my opinion, Federal Reserve policy failed as soon as the FOMC cut the federal funds rate below 3% on March 18, 2008, to 2.25%. It was Dec. 16, 2008, when the Fed cut this rate to 0%, where it could remain for years to come if Janet Yellen becomes the next Fed chairman in early 2014.

The Fed's quantitative easing programs began in late November 2008 when the Federal Reserve Open Market Trading Desk in New York began to purchase $600 billion in mortgage-backed securities. Two years later the Fed announced another round of purchases and this time it was $600 billion in longer-dated U.S. Treasuries by the end of second quarter of 2011. This second wave was dubbed QE2. [Read: Before Buying ConAgra, Read the Label]

QE3 was announced on Sept. 13, 2012, and QE4 was announced on Dec. 12, 2012. QE3 is the purchase of $40 billion per month in mortgage-backed securities and QE4 added another $45 billion of longer-dated Treasuries per month. There has been talk that the Fed will begin to reduce these purchases following today's FOMC meeting. Some say yes, others say no, I say it doesn't matter as the program has failed in its objective, which is to lower mortgage rates.

Before QE3 and QE4 were implemented the yield on the Treasury 10-year note traded as low as 1.377% on July 25, 2012. The lowest point for this year is 1.612% set on May 1, just about the time when speculation began that the FOMC will likely taper securities purchases following today's FOMC meeting. The high yield in anticipation of tapering has been 3.007% set on Sept. 6. Instead of pushing mortgage rates lower as intended, the bond market became worried about future inflation that the massive QE's could create, and for this reason the combination of the QEs and the 0% federal funds rate has been a failed monetary policy. [Read: Affordable Care Act Reality Check] Continue to trade the bond market just like a stock using iShares 20+ Year Treasury Bond (TLT) ($103.71). The Treasury ETF remains below its 50-day simple moving average at $105.67 after setting a multi-year low at $102.11 on Aug. 21. The weekly chart shows an oversold condition with the five-week modified moving average at $105.25 and the 200-week SMA at $107.77. This week's value level is $100.96 with a monthly pivot at $105.75. My semiannual value level lags at $92.32 with annual risky levels at $116.26 and $120.42.

Continue to trade the gold market just like a stock using SPDR Gold Trust (GLD) ($126.50). The ETF is below its 50-day SMA at $129.14 with the 200-day SMA at $143.62. The weekly chart is negative with the five-week MMA at $129.81 and the 200-week SMA at $143.36. My monthly value level is $118.35 with a weekly risky level is $135.75.

Continue to trade crude oil using the Energy Select Sector SPDR Fund (XLE) ($84.31) The EFT traded to a new multi-year high at $84.66 on Monday. The 50-day and 200-day SMAs are supports at $82.41 and $78.61. The weekly chart is positive but overbought with the five-week MMA at $82.75 and the 200-week SMA at $68.78. My weekly value level is $81.68 with monthly and semiannual risky levels at $87.91 and $88.35.

For the major equity averages the Russell 2000 tested a new all-time high at 1066.39 at Tuesday's close. The Nasdaq set a new multi-year high at 3756.24 on Monday staying shy of my semiannual risky level at 3759. The other three major averages stayed below their all-time highs at 15,658.43 for the Dow Industrial Average, set on Aug. 2, 1709.67 for the S&P 500 set on Aug. 2 and 6686.86 Dow transportation average set on Aug. 1.

It seems highly likely that all five major averages will power to new highs given a positive reaction to the Fed statement and to comments by Ben Bernanke at his press conference this afternoon. [Read: Crunch Time for Gold Again] If the Nasdaq has a weekly close above 3759 the upside is to my semiannual risky levels at 16,490 Dow Industrial Average, 1743.5 on the S&P 500, 7104 Dow transports and 1089.43 on the Russell 2000. As I have said before, if you cannot confirm cycle highs, new highs will likely follow. SPDR Dow Jones Industrial Avg ETF Fund (DIA) ($155.29) is above its 50-day SMA at $152.68 with the 200-day SMA at $145.42 with the Aug. 2 high at $156.24. The weekly chart shifts to positive with a weekly close above the five-week MMA at $152.22. My weekly value level is $149.35 with monthly and semiannual risky levels at $163.25 and $164.06.

PowerShares QQQ Trust Series 1 (QQQ) ($78.37) is above its 50-day SMA at $76.06 with the 200-day SMA at $70.80 and set a multi-year high at $78.72 on Monday. The weekly chart is positive but overbought with the five-week MMA at $76.52. My quarterly value level is $73.00 with monthly and weekly pivots at $78.18 and $78.63 with semiannual risky levels at $79.76 and $80.87. [Read: HED-HERE]

SPDR S&P 500 ETF Trust (SPY) ($171.07) is above its 50-day SMA at $167.69 with the 200-day SMA at $157.92 and new all time high at $171.24 set on Monday. The weekly chart shifts to positive with a weekly close above its five-week MMA at $167.56. My weekly value level is $166.42 with a semiannual risky level at $174.10.

At the time of publication the author held no positions in any of the stocks mentioned.

Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

Alcoa Urges Changes to LME (AA)

Aluminum giant Alcoa (AA) has sent a letter to the London Metal Exchange urging rule changes to appropriately meet the needs of the aluminum market.

The proposed changes are specifically aimed at the availability of aluminum as well as making the entire industry more transparent. Alcoa CEO Klaus Kleinfeld wishes for the LME to improve its reporting system to increase market efficiency and to improve contracts to better allow traders to hedge against price risk.

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Alcoa’s letter comes shortly after the company learned it would be removed from the Dow Jones Industrial Average, an index which it had been a member of since 1959.

Alcoa shares were up 13 cents, or 1.59%, at Wednesday’s close. The stock is down more than 5% YTD.

5 things to watch for at Janet Yellen’s hearing

Janet Yellen will step into the unforgiving glare of one of the world's most important jobs Thursday at the Senate's confirmation hearing on her nomination to succeed Fed Chairman Ben Bernanke.

She's expected to later win confirmation from the Democratic-controlled Senate, making her the first woman to lead a major central bank. Her performance could set the tone for a new era at the Fed that places an even greater premium on effective communication.

EASY MONEY: Yellen to defend Fed policies

Yellen, 67, has been the Fed's vice chair since 2010. Between her first stint on the Fed in the 1990s and her current one, Yellen was president of the San Francisco Federal Reserve Bank and chaired the White House Council of Economic Advisers.

Thursday's hearing before the Senate banking committee starts at 10 a.m. Here are five things to watch for:

• Can she handle a national stage? A Fed chairman's words move markets around the world. Yellen has been a leading advocate for the Federal Reserve's recent efforts to communicate more clearly to the public. She's known as a meticulous preparer, crafting written remarks for meetings where colleagues speak off the cuff. How will Yellen perform under fire?

"She doesn't do an awful lot of this stuff," says economist Paul Ashworth of Capital Economics. "You want somebody at the Fed who can think on their feet … and not get flustered."

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Barclays Capital economist Michael Gapen, a former high-level Fed staffer, predicts Yellen will be ready. "I would be really surprised if they can come up with a question that she won't have an answer for," he says.

• Will she sound like Greenspan or Bernanke? In congressional testimony, legendary Fed chief Alan Greenspan was "deliberately cryptic," while Bernanke, the former Princeton professor, "wanted to explain things to people in ways they can understand," A! shworth says. Yellen, a Berkeley economics professor emeritus, is likely to resemble Bernanke, he says.

• How will Yellen reconcile the Fed's dual mandate to boost employment while keeping inflation low with her own economic philosophy? Yellen is considered the Fed's most "dovish" policymaker, meaning she has voiced more concerns about unemployment, now 7.3%, than the hazards of eventual high inflation. But inflation risks down the road have increased with the Fed's ongoing bond-buying program to hold down long-term interest rates and spur job growth.

Critics, though, say the effects on growth have diminished. Sen. Bob Corker, R-Tenn., says he will ask Yellen to "explain how to wean us off of our reliance on this Fed stimulus without cratering financial markets."

In her prepared opening statement, Yellen defends the stimulus, noting unemployment "is still too high" while inflation is below the Fed's 2% annual goal. "I believe that supporting the recovery today is the surest path to returning to a more normal" monetary policy.

Vincent Reinhart, chief U.S. economist of Morgan Stanley and former head of monetary affairs at the Fed, says Yellen may put slightly more emphasis on her vigilance toward inflation to mollify Republicans. After all, Yellen has supported each Fed interest rate hike during her two Fed tenures. "This would be an opportunity to emphasize her pursuit of achieving long-run price stability," he says.

• Will she drop clues on tapering? Financial markets will scrutinize Yellen's remarks for the slightest hint of when the Fed will start to taper its $85 billion a month in bond purchases. Markets expected it to start in September, but Fed policymakers said no change was warranted amid mixed economic data and the looming budget battle in Congress.

Job growth improved last month, but economists say Yellen will studiously dance around such questions, in part because she is not chairman and can't speak for the Fed's policymaking committee. "Her goal is not! to make ! any news about the setting of monetary policy," Reinhart says. Instead, she'll likely reiterate that Fed decisions will depend on how the economy performs, Gapen says.

• How will she handle questions about "too big to fail" banks? Senators such as David Vitter, R-La., and Elizabeth Warren, D-Mass., say the Dodd-Frank financial reform act doesn't go far enough in preventing government bailouts of large teetering banks. Each has introduced legislation to address the concern.

In her prepared statement, Yellen says she supports strengthening oversight of "too big to fail" financial institutions but doesn't want to burden small and community banks.

New Drug Could Transform Derma Sciences, CEO Says

One of the reasons people invest in small-cap health-care companies is the potential that a small name can hit a home run.

Often, they strike out. But Derma Sciences (DSCI) could dramatically change its fortunes.

With revenue of roughly $80 million this year, the medical technology company specializes in wound-care management, making goods that range from gauze dressing and bandages to novel products that treat burns, reduce scars and doctor complicated wounds. But depending on the outcome of a large, Phase 3 clinical trial now underway, Derma Sciences' experimental topical drug DSC-127 could be the first prescription medication approved by US regulators to treat diabetic foot ulcers.

FDA approval is a long ways off – not likely before 2016. But in a recent interview with Barrons.com, CEO Edward Quilty called DSC-127 "transformative" for Derma Sciences, citing data estimating a potential U.S. market for the drug worth $300 million to $400 million.

Named CEO in 1996, Quilty's has worked in recent years to shift Derma Sciences from a maker of traditional wound dressings into higher margin businesses. So while its traditional wound care products still generate 60% of sales, its advance wound care business is 40% of the business, having doubled in size over the last two years. And Quilty says those sales could climb 30% to 40% next year.

Those sales will be what analysts keep their eyes on when Derma Sciences reports third-quarter financial results on Wednesday.

Best Medical Companies To Buy Right Now

Derma Sciences, meanwhile, is taking its first shot at the prescription drug market. Quilty tells Barrons.com:

We are looking to build value for ourselves and shareholders, and you don't get a big multiple for a commodity dressing business.

Derma Sciences has yet to turn a profit –not unusual for a small health-care company investing heavily in research and development. Scott, Henry, an analyst with Roth Capital, expects losses to widen in 2013 to $1.63 a share compared to the 97 cents a share loss posted last year.

But by 2016, Henry sees Derma Sciences earning 50 cents a share on revenue of $140.9 million, including $14 million in sales from DSC-127.

And should DSC-127 fail at the FDA, the company will turn a profit 10 cents to 20 cents in 2016, on the strength of its wound-0care business. Quilty added:

Our strategy has always been to make the business profitable all on its own. Developing drug like DSC-127 isn't without risks. There are no assurances.

Google And 5 Other Big Cap Standouts

This month and next you're sure to hear raucous claims regarding how treacherous these months are. Yes, on average September and October are among history's three worst (February being in between). September actually has an overall negative S&P 500 history.

But market averages often mislead. Remove a few superbad outliers like 1929, 1931 and 1937, and September looks pretty normal, with lots of volatility. That's why you should refuse to be sucked in by the deafening screams of fall-ophobes.

There is nothing fundamental about September, October or any time slice that makes it more or less profitable. "Sell in May and go away," for example, is a fallacy. However, you can always find some time slice that will support it.

Let the number crunchers hunt for headline-worthy factoids. Ignore them all because if they were really true they would already be priced into market expectations. Instead of obsessing, seek out great big-cap franchises, as I have directed you since the beginning of the year.

Multiples Growing Fastest Since Dot-Com Bubble as Rally Ages

Jin Lee/Bloomberg Traders work on the floor of the New York Stock Exchange (NYSE) in New York. The Standard & Poor's 500 Index has risen 146 percent since bottoming in 2009. The 53-month gain has surpassed the average length of bull markets since 1946 by about four months, data compiled by Bloomberg show.

Price gains of stocks in the Standard & Poor's 500 Index (SPX) are outpacing profits by the fastest rate in 14 years as the bull market extends beyond the average length of rallies since Harry S. Truman was president.

The benchmark gauge for U.S. equities has risen 14 percent relative to income over the past 12 months to 16 times earnings, according to data compiled by Bloomberg. Valuations last climbed this fast in the final year of the 1990s technology bubble, just before the index began a 49 percent tumble. The rally that started in March 2009 has now outlasted the average gain since 1946, the data show.

Bears say the failure of earnings to keep up with prices signals the bull market is in its last stages, as companies from Caterpillar Inc. and Danaher Corp. (DHR) forecast slower profit growth and the Federal Reserve prepares to reduce stimulus. Optimists point to expanding multiples as proof individual investors are growing confident enough in the economy to return to stocks. History shows the final phases of rallies have provided some of the biggest gains.

"Markets have been running away," Robert Royle, who helps oversee $21 billion as manager of the North American Trust at Smith & Williamson Investment Management LLP in London, said by telephone on Aug. 20. "Everyone is hoping for a second-half recovery in fundamentals," he said. "I am just not sure what will drive the recovery."

Labor Market

The S&P 500 advanced 0.5 percent to 1,663.5 last week as global manufacturing and the American labor market showed signs the economy is improving. The index is up 17 percent this year, the largest advance over a comparable period since 1997, and climbed to an all-time high of 1,709.67 on Aug. 2.

The S&P 500 has risen 146 percent since bottoming in 2009. The 53-month gain has surpassed the average length of bull markets since 1946 by about four months, data compiled by Bloomberg show. The index gained 0.3 percent at 11:04 a.m.! in New York today.

Combined profit at S&P 500 companies surged 37 percent in 2010, 19 percent in 2011 and slowed to 2.3 percent last year, Bloomberg data show. Earnings increased 3.6 percent and 3.7 percent in the first and second quarters. Analysts have cut projections for 2013 profit by 0.7 percent this year to $110.22, a 9 percent increase from last year, based on more than 11,000 estimates compiled by Bloomberg.

Dot-Com Crash

The last time gains in stocks outpaced profit expansion by this much was in 1999, when equity valuations surged 19 percent in a year to 30 times reported profit, according to data compiled by Bloomberg. That bull market ended the following year, with the S&P 500 tumbling 49 percent from March 2000 through October 2002 as the dot-com bubble burst.

In 1987, prices rose so fast, valuations increased 43 percent through August, about twice the pace of the year before. That month marked the peak in a five-year rally, followed by a 34 percent loss through December 1987.

U.S. equities have been whipsawed since May, when Fed Chairman Ben S. Bernanke first indicated that the central bank may start to reduce its quantitative easing bond buying this year. The S&P 500 fell 5.8 percent from a high on May 21 through June 24 and rallied 8.7 percent through Aug. 2, before declining 2.7 percent.

Corporate earnings need to accelerate to justify the surge in equities as the central bank begins to scale back its unprecedented monetary stimulus, according to Joost van Leenders of BNP Paribas Investment Partners in Amsterdam.

'Negative Outlooks'

"There's been a lot of hope and expectations that things will improve in the second half," Van Leenders, who helps oversee $660 billion as a strategist at BNP Paribas, said by phone on Aug. 22. "The improvement in earnings growth has been delayed from the third quarter to the fourth quarter. Not many companies are giving forward guidance, and those that are, are giving negative outlook! s."

While U.S. stocks may be in the final leg of a bull market, that's often the stage with the biggest gains as bears capitulate, according to Laszlo Birinyi, president of Birinyi Associates Inc. In this last phase, which Birinyi calls exuberance, equity markets have surged 39 percent on average.

Birinyi, one of the first money managers to advise clients to buy in 2009, wrote in a Aug. 7 report that the rally in U.S. equities was poised to slow after the 17 percent surge this year. He predicted that the S&P 500 may climb to a new high of 1,740 by December, 4.6 percent above the current level. The S&P 500 exceeded Birinyi's forecast of 1,600 in May.

Previous Peaks

Even as the S&P 500 valuation expanded this year, it remains below the level at which previous rallies peaked. The average multiple during bull runs since 1957 has been 17.4 times reported profits, about 10 percent higher than today's ratio, data compiled by Bloomberg show. Advances ended at 20.2 times earnings on average, 26 percent higher than the present level.

"It's more important how high the valuation is than how long it took to get there," Russ Koesterich, the chief investment strategist at New York-based BlackRock Inc., said by phone on Aug. 22. BlackRock is the world's largest money manager, with $3.8 trillion in assets. "Valuations today are below where they were in 2007 and much, much below their levels in 2000."

The S&P 500 traded at 17.5 times earnings when the index hit a high of 1,565.15 on Oct. 9, 2007, Bloomberg data show. The valuation reached 31 times income in March 2000 as it peaked at 1,527.46.

Caterpillar Climbs

Caterpillar (CAT)'s valuation has climbed 28 percent in the past year as the largest manufacturer of mining and construction machinery posted three quarters of earnings declines. Analysts predict a profit drop of 27 percent in 2013. Last month, the Peoria, Illinois-based company cut its earnings forecast as mining-equipment sales decli! ned on sl! ower commodity demand from emerging markets.

Analysts see earnings increasing 6 percent at Danaher this year, Bloomberg data show. That's the slowest pace since the maker of dental and laboratory equipment posted a 17 percent profit plunge in 2009. In July, the Washington-based company lowered its earnings forecast for 2013 to no more than $3.42 a share after predicting in April adjusted profit will be as much as $3.47.

Consumer-discretionary companies posted the biggest multiple expansion out of 10 S&P 500 industries in the last 12 months, with the valuation for the group surging 39 percent, data compiled by Bloomberg show.

TripAdvisor Outlook

TripAdvisor Inc. (TRIP)'s price-earnings ratio surged 85 percent as profit rose 4.8 percent in 2012 and is projected to increase 11 percent in 2013, according to Bloomberg data. Stephen Kaufer, chief executive officer of the Newton, Massachusetts-based online travel-recommendation service, said on Aug. 14 he's "not seeing a lot of positive stuff" in the third quarter as the summer has been "bumpier" and traffic is weaker than expected.

Investors have paid up for stocks in anticipation that earnings growth will rebound, and companies must now deliver for the equities rally to continue, according to Franz Wenzel, who helps oversee $759 billion as a strategist at Axa Investment Managers in Paris.

"Over the last two years we saw equity markets jump through liquidity and re-rating; this story is behind us," Wenzel said by phone on Aug. 21. "We don't think further multiple expansion is feasible. We need the economic underpinning."