Disney: Marvel, Pixar, Star Wars, What’s Not to Like?

Walt Disney (DIS) fairy tales always offer happy endings, even if they terrify six-year olds along the way. And Walt Disney shares might provide their own happy ending for investors, according to Guggenheim analysts.

Walt Disney Co./courtesy Evere

Guggenheim’s Michael Morris and Currey Baker upgraded Walt Disney today to Buy from Neutral. To hear them tell it, it’s all about the content:

Enthusiasm for the company’s 2015/16 catalysts (Marvel/Pixar/Star Wars films and products, Shanghai park) has grown earlier than we anticipated in our 10/23/13 initiation, but we see no reason it will slow. Both Frozen and Thor 2 have performed well in F1Q, supporting the strengthening content story.

We see upward consensus estimate revision potential at several segments: Studio on a stronger slate and Netflix (NFLX) revenue (Marvel programming and film output); Consumer Products and Interactive on new characters and international growth; and Broadcasting on retrans/reverse compensation.

Better yet, Morris and Baker note, Disney trades at 15.5 times 2015 earnings estimates, putting it near the middle of the pack of S&P 500 stocks–”a bargain” in their opinion. They believe it should trade at 18 times 2015 earnings–or $87 dollars a share.

Shares of Disney have gained 2.7% to $76.33 today at 10:31 a.m., while Netflix has dropped 2% to $360.35.

Summers says government-driven growth is right medicine, not austerity

Former Fed chief contender Larry Summers: Now is not the time for austerity. Bloomberg News

Lawrence H. Summers on Thursday told a sometimes-skeptical audience at an investment summit that austerity was the wrong medicine for the U.S. economy and that public projects are needed to stem unemployment.

Rattling off a series of dour statistics, the renowned economist and former contender to run the Federal Reserve reiterated his continued support for growth-oriented government policies to jumpstart the U.S., as well as Japan and Europe.

"The fraction of the adult population that is working has not increased since the low point and is now lower than at any time in a generation," Mr. Summers said. "This should be a greater cause of concern than it already is because if you think about it, at some level, we might have expected things to be different."

Mr. Summers' views included the prediction that an environment of record-low interest rates will persist as one of the few ways to stimulate the public and private-sector demand necessary to reduce unemployment in the long term. Because borrowing costs are cheap, he said now is the time for public-sector investment.

"If that is not the time to make Kennedy airport look respectable, I don't know when that time will come," he said, referring to New York's John F. Kennedy International Airport.

The Harvard professor's views clashed with some of those expressed by investment officers who appeared earlier at the UBS Wealth Management Americas conference, where chief investment officers gathered to discuss their outlooks. A number of Wall Street investors have criticized a decision by the Federal Reserve to maintain its massive policy of asset purchases, known as quantitative easing, out of the belief that the program has distorted the market.

Mr. Summers, who withdrew his name from consideration to head up the Federal Reserve last month after encountering opposition from powerful Democrats, faced skeptical questions from the audience Thursday. One audience member questioned Mr. Summers' credibility, while another called his view that demand for labor is too low "simplistic."

Mr. Summers called it "no kind of important achievement" that "the U.S. received a reprieve from the grotesque" by resolving the debt ceiling crisis that flummoxed Washington last month. But he said that it made similar crises highly unlikely in the near future, as politicians see little advantage to gain.

"The good news is that even the most foolish of people who have shot themselves in the foot rarely reload," he said.

Like what you've read?

Americans Cut Back on Credit Card Use in September

Matt Rourke/AP WASHINGTON -- Americans cut back on using their credit cards in September for the fourth straight month but boosted borrowing in the category that covers auto loans and student debt. Consumers increased their borrowing by $13.7 billion in September to a seasonally adjusted $3.05 trillion, the Federal Reserve said Thursday. That is a record and follows a gain of $14.2 billion in August. The increase was driven entirely by higher borrowing for auto and student loans, which rose $15.8 billion. Credit card debt fell $2.1 billion following a decline of $885 million in August. The string of declines in credit card debt will likely hold back consumer spending, which accounts for 70 percent of economic growth. The measure of auto loans and student loans has risen 8.5 percent from a year ago and has increased in every month but one since May 2010. But credit card debt is essentially where it was a year ago. And it is 17.2 percent below its peak hit in July 2008 -- seven months after the Great Recession began. Slow job growth and small wage gains have made many Americans more reluctant to charge goods and services. But at the same time, the weak economy is persuading more people to go back to school to learn new skills. The Federal Reserve Bank of New York quarterly report on consumer credit shows student loan debt has been the biggest driver of borrowing since the Great Recession officially ended in June 2009. Analysts had hoped that consumers would step up spending and help drive faster economic growth in the final three months of the year. But a partial government shutdown in October lasted 16 days and left thousands of government workers temporarily without paychecks. That disruption is expected to hold back growth in the fourth quarter. Many economists believe the overall economy is growing at a rate just below 2 percent in this quarter, down from growth of 2.8 percent in the July-September quarter. The Fed's borrowing report tracks credit card debt, auto loans and student loans but not mortgages, home equity loans and other loans secured by real estate.

Top Tech Stocks To Watch Right Now

And, now, with the election over at last, Americans can shift their focus to something a little less stressful: Holiday shopping. And if you're looking for a way to save on gifts this season, you might want to tap your credit card. No, not by charging up a big fat bill -- but by maximizing your rewards points.

Hot Bank Companies To Buy For 2014

The Dow Jones Industrial Average is going through another shakeup.

Three members of the 30-stock index are being replaced: Alcoa (NYSE: AA), Bank of America (NYSE: BAC) and Hewlett-Packard (NYSE: HPQ). Their replacements are Goldman Sachs (NYSE: GS), Nike (NYSE: NKE) and Visa (NYSE: V).

The switches will go into effect at the start of trading on Monday, Sept. 23 It’s the largest revision to the index since April 2004.

Adjustments in the Dow’s makeup have considerable symbolic significance. The Dow is the nation’s oldest and most popular index. It began in 1896 with 12 stocks, including General Electric (NYSE: GE), the lone original still there.

The Dow is closely watched as a barometer of the broader market. When people want to know how the stock market is doing or what it did today, the answer usually is “The Dow is up 100 points” or “The Dow dropped 50 points.”

Hot Bank Companies To Buy For 2014: Wells Fargo & Company(WFC)

Wells Fargo & Company, through its subsidiaries, provides retail, commercial, and corporate banking services primarily in the United States. The company operates in three segments: Community Banking; Wholesale Banking; and Wealth, Brokerage, and Retirement. The Community Banking segment offers deposits, including checking, market rate, and individual retirement accounts; savings and time deposits; and debit cards. Its loan products comprise lines of credit, auto floor plans, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, health savings accounts, and credit cards. This segment also provides equipment leases, real estate financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, loans secured by autos, and merchant payment processing services; purchases sales finance contracts from retail merchants; and a family of funds, and investment managemen t services. The Wholesale Banking segment offers commercial and corporate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury and investment management, institutional fixed-income sales, commodity and equity risk management, insurance, corporate trust fiduciary and agency services, and investment banking services. This segment also provides banking products for commercial real estate market, and real estate and mortgage brokerage services. The Wealth, Brokerage, and Retirement segment offers financial advisory, brokerage, and institutional retirement and trust services. As of December 31, 2010, the company served its customers through approximately 9,000 banking stores in 39 States and the District of Columbia. Wells Fargo & Company was founded in 1929 and is headquartered in San Franci sco, California.

Advisors' Opinion:

• [By Jessica Alling]

  Though B of A doesn't have quite the hold on the mortgage market that it would like --�Wells Fargo (NYSE: WFC  ) and JPMorgan command the lead in new mortgage origination -- it is taking steps (like cross-selling) to expand its presence. So the continued success in the housing market could help its efforts to gain traction again.

Hot Bank Companies To Buy For 2014: First Horizon National Corp (FHN)

First Horizon National Corporation (FHN), incorporated in 1968, is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries. The Company�� two brands First Tennessee and FTN Financial provide customers with a range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee. FTN Financial (FTNF) is engaged in fixed income sales, trading, and strategies for institutional clients in the United States and abroad. FHN has four operating business segments: regional banking, capital markets, corporate, and non-strategic. As of December 31, 2011, the Bank had $16.4 billion in total deposits and $16 billion in total net loans. As of December 31, 2011, the Company�� subsidiaries had over 200 business locations in 17 the United States states, Hong Kong, and Tokyo, excluding off-premises automated teller machines (ATMs). As of December 31, 2011, the Bank had 183 branch locations in four states, which include 172 branches in metropolitan areas of Tennessee; two branches in northwestern Georgia; seven branches in northwestern Mississippi, and two branches in North Carolina. As of December 31, 2011, FTN Financial products and services were offered through 18 offices in total, including 16 offices in 14 states plus an office in each of Hong Kong and Tokyo.

The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. In addition, the regional banking segment includes correspondent banking, which provides credit, depository, and other banking related services to other financial institutions.

The capital markets se! gment consists of fixed income sales, trading, and strategies for institutional clients in the United States and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements, including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

As of December 31, 2011, the Company provided services through its subsidiaries, which include general banking services for consumers, businesses, financial institutions, and governments; through FTN Financial fixed income sales and trading, underwriting of bank, loan sales, advisory services and derivative sales; discount brokerage and full-service brokerage; correspondent banking; transaction processing, such as nationwide check clearing services and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; mutual fund sales as agent; retail insurance sales as agent, and mortgage banking services.

As of December 31, 2011, the commercial, financial, and industrial (C&I) portfolio was eight billion dollars, and is consisted of loans used for general business purposes, and consisted of relationship customers in Tennessee and certain n! eighborin! g states, which are managed within the regional bank. Products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. As of December 31, 2011, the unpaid principal balance (UPB) of trust preferred loans totaled $447.2 million with the UPB of other bank-related loans totaling approximately $161.8 million. The commercial real estate portfolio includes both financings for commercial construction and non-construction loans. This portfolio is segregated between income commercial real estate (CRE) loans which contain loans, lines, and letters of credit to commercial real estate developers for the construction and mini- permanent financing of income-producing real estate, and residential CRE loans. The residential CRE portfolio includes loans to residential builders and developers for the purpose of constructing single-family detached homes, condominiums, and town homes. As of December 31, 2011, the residential CRE portfolio was $.1 billion. As of December 31, 2011, the consumer real estate portfolio was $5.3 billion, and is composed of home equity lines and installment loans. As of December 31, 2011, the credit card and other portfolios were $.3 billion, and primarily include credit card receivables, automobile loans, and over-the-counter (OTC) construction loans and other consumer related credits.

FHN�� investment portfolio consists of debt securities, including government agency issued mortgage-backed securities (MBS) and government agency issued collateralized mortgage obligations (CMO). During the year ended December 31, 2011, Government agency issued MBS and CMO, and other agencies averaged $2.9 billion. During 2011, the United States treasury securities and municipal bonds averaged $79.5 million. During 2011, investments in equity securities averaged $222.3 million.

During 2011, short-term funds (certificates of deposit greater than $100,000, federal funds purchased (! FFP), sec! urities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $3.6 billion. During 2011, other borrowings increased to $.3 billion. Term borrowings include senior and subordinated borrowings and advances with original maturities greater than one year. During 2011, average term borrowings averaged $2.6 billion.

The Company competes with Regions Bank, SunTrust Bank, Wells Fargo Bank N.A., Bank of America N.A., and Pinnacle National Bank.

Advisors' Opinion:

• [By Monica Gerson]

  First Horizon National (NYSE: FHN) is estimated to report its Q3 earnings at $0.18 per share on revenue of $307.14 million.

  Laboratory Corp. of America Holdings (NYSE: LH) is expected to report its Q3 earnings at $1.80 per share on revenue of $1.45 billion.

• [By Eric Volkman]

  After the close of trading Friday, the S&P 500 will include Pfizer spinoff Zoetis (NYSE: ZTS  ) . The stock replaces First Horizon National (NYSE: FHN  ) , which is to find a new home on the S&P MidCap 400.

• [By John Maxfield]

  Given that you clicked on this article, it seems safe to assume you either own stock in First Horizon National (NYSE: FHN  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about First Horizon stock before deciding whether to buy, sell, or hold it.

• [By Sean Williams]

  Finally, regional bank First Horizon National (NYSE: FHN  ) , which has banking branches throughout Tennessee, added 4.2% just a day after paying shareholders a $0.05 quarterly dividend. Like Genuine Parts, there is no company specific news driving First Horizon higher, but the prospect for a higher net interest margin because of higher interest rates is certainly adding a boost to banks like First Horizon that rely on traditional loan and deposit growth. But as my Foolish colleague John Maxfield recently pointed out, you may want to keep your expectations for First Horizon tempered in the interim.

Hot High Tech Stocks To Buy Right Now: Access National Corp (ANCX)

Access National Corporation (ANC) operates as a bank holding company. The Company has two wholly owned subsidiaries: Access National Bank (the Bank) and Access National Capital Trust II. The Bank is the operating business of the Company. The Bank provides credit, deposit, and mortgage services to middle market commercial businesses and associated professionals, primarily in the greater Washington, D.C. Metropolitan Area. The Bank offers a range of financial services and products and specializes in providing customized financial services to small and medium sized businesses, professionals, and associated individuals. The Bank provides its customers with personal customized service utilizing the latest technology and delivery channels. The Bank�� business is serving the credit, depository and cash management needs of businesses and associated professionals. The products and services offered by the Bank include accounts receivable lines of credit, accounts receivable collection accounts, growth capital term loans, business acquisition financing, online banking, checking accounts, money market accounts, sweep accounts, personal checking accounts, savings /money market accounts and certificates of deposit.

The Bank�� revenues are derived from interest and fees received in connection with loans, deposits, and investments. The Bank operates from five banking centers located in Chantilly, Tysons Corner, Reston, Leesburg and Manassas, Virginia and online at www.accessnationalbank.com. The Mortgage Corporation specializes in the origination of conforming and government insured residential mortgages to individuals in the greater Washington, D.C. Metropolitan Area, the surrounding areas of its branch locations, outside of its local markets through direct mail solicitation, and otherwise. The Mortgage Corporation has offices throughout Virginia, in Fairfax, Reston, Roanoke, and McLean.

Lending Activities

The Bank�� lending activities involve commercial real estate loa! ns, residential mortgage loans, commercial loans, commercial and residential real estate construction loans, home equity loans, and consumer loans. These lending activities provide access to credit to small to medium sized businesses, professionals, and consumers in the greater Washington, D.C. Metropolitan Area. Loans originated by the Bank are classified as loans held for investment. At December 31, 2011 loans held for investment totaled $569.4 million. At December 31, 2011 unsecured loans were comprised of $2.9 million in commercial loans and approximately $124 thousand in consumer loans and collectively equal approximately 0.5% of the loans held for investment portfolio.

The Bank�� commercial real estate loans-wner Occupied represented 30.14% of our loan portfolio held for investment, as of December 31, 2011. Its commercial real estate loans-non-owner occupied loans represent ed18.44% of its loan portfolio held for investment, as of December 31, 2011. The Bank�� residential real estate loans represented 22.56% of the loan portfolio, as of December 31, 2011.

These loans fall into one of three situations: loans supporting an owner occupied commercial property; properties used by non-profit organizations, such as churches or schools where repayment is dependent upon the cash flow of the non-profit organizations, and loans supporting a commercial property leased to third parties for investment. Its residential real estate loans category includes loans secured by first or second mortgages on one to four family residential properties, extended to the Bank clients.

As of December 31, 2011, commercial loans represented 23.15% of the Bank�� loan portfolio held for investment. These loans are to businesses or individuals within its market for business purposes. As of December 31, 2011, real estate construction loans consisted of 5.22% of loans held for investment loan portfolio. These loans include loans to construct owner occupied commercial buildings; l! oans to i! ndividuals; loans to builders for the purpose of acquiring property and constructing homes for sale to consumers, and loans to developers for the purpose of acquiring land, which is developed into finished lots for the ultimate construction of residential or commercial buildings. As of December 31, 2011, consumer loans made up approximately 0.49% of its loan portfolio.

Investment Activities

The Company�� investment securities portfolio is consisted of the United States Treasury securities, the United States Government Agency securities, municipal securities, Community Reinvestment Act (CRA) mutual fund, and mortgage backed securities issued by the United States Government sponsored agencies and corporate bonds. At December 31, 2011, securities totaled $85.8 million. . The securities portfolio is comprised of $45.8 million in securities classified as available-for-sale and $40.0 million in securities classified as held-to-maturity.

Sources of Funds

As of December 31, 2011, deposits totaled $645.0 million. As of December 31, 2011, deposits consisted of noninterest-bearing demand deposits in the amount of $113.9 million, savings and interest-bearing deposits in the amount of $182.0 million, and time deposits in the amount of $349.1 million. The Bank also uses wholesale funding or brokered deposits to supplement traditional customer deposits for liquidity. It participates in the Certificate of Deposit Account Registry Service (CDARS). Through CDARS its depositors are able to obtain FDIC insurance of up to $50 million. As of December 31, 2011, brokered deposits totaled $223,554,000, which includes $192,326,000 in reciprocal CDARS deposits. It also maintains lines of credit with the Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB). At December 31, 2011 there was $284.9 million available under these lines of credit. Borrowed funds consist of advances from the FHLB, senior unsecured term note, FHLB long-term borrowings, subordinated debentures (! trust pre! ferred), securities sold under agreement to repurchase, United States Treasury demand notes, federal funds purchased, and commercial paper. As of December 31, 2011 borrowed funds totaled $123.6 million. At December 31, 2011 borrowed funds totaled $70.9 million.

Hot Bank Companies To Buy For 2014: Royal Bank Of Canada(RY)

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Rich Duprey]

  As mobile commerce continues to grow worldwide, Royal Bank of Canada (NYSE: RY  ) this week announced its�customers will be able to securely purchase goods and services with debit or credit using smartphones compatible with Bell Canada's (NYSE: BCE  ) wireless network as part of a new�mobile payment system the two are launching.

• [By Eric Volkman]

  The partnership was brought to market by book-running managers JPMorgan Chase unit J.P. Morgan, Bank of America's (NYSE: BAC  ) Merrill Lynch, Credit Suisse (NYSE: CS  ) ,�Citigroup (NYSE: JPM  ) , Barclays, Morgan Stanley, Royal Bank of Canada's (NYSE: RY  ) RBC Capital Markets, and the securities arm of Deutsche Bank (NYSE: DB  ) .

• [By Laura Brodbeck]

  Thursday

  Earnings Expected From: UTi Worldwide Inc. (NASDAQ: UTIW), Renesola Ltd. (NYSE: SOL), Royal Bank of Canada (NYSE: RY), Kroger Company (NYSE: KR), Dollar General Corporation (NYSE: DG), Diamond Foods, Inc. (NASDAQ: DMND) Economic Releases Expected: US factory orders, French unemployment rate, Bank of England interest rate decision, US GDP

  Friday

Hot Bank Companies To Buy For 2014: Federal National Mortgage Association (FNMA)

Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage-related assets are purchased and sold. The Company�� activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. Fannie Mae operates in three business segments: Single-Family business, Multifamily Business (formerly Housing and Community Development (HCD)) and Capital Markets group. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS.

The Company obtains funds to support its business activities by issuing a variety of debt securities in the domestic and international capital markets. Fannie Mae acquires funds to purchase mortgage-related assets for its mortgage portfolio by issuing a variety of debt securities in the domestic and international capital markets. It also makes other investments. Fannie Mae conducts its business in the United States residential mortgage market and the global securities market. It conducts business in the United States residential mortgage market and the global securities market. During the year ended December 31, 2011, the Company��

Single-Family Business

Single-Family business includes mortgage securitizations, mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company�� lender customers to provide funds to the mortgage market by securitizing single-family mortgage loans into Fannie Mae MBS. Its Single-Family business also works with its Capital Markets group to facilitate the pu! rchase of single-family mortgage loans for the Company�� mortgage portfolio. Fannie Mae�� Single-Family business prices and manages the credit risk on its single-family guaranty book of business, which consists of single-family mortgage loans underlying Fannie Mae MBS and single-family loans held in its mortgage portfolio. Single-Family business and Capital Markets group securitize and purchase primarily single-family fixed-rate or adjustable-rate, first lien mortgage loans, or mortgage-related securities backed by these types of loans.

The Company securitizes or purchases loans insured by Federal Housing Administration (FHA), loans guaranteed by the Department of Veterans Affairs (VA), and loans guaranteed by the Rural Development Housing and Community Facilities Program of the Department of Agriculture, manufactured housing loans, reverse mortgage loans, multifamily mortgage loans, subordinate lien mortgage loans and other mortgage-related securities. Its Single-Family business securitizes single-family mortgage loans and issues single-class Fannie Mae MBS. Fannie Mae�� Single-Family business securitizes loans solely in lender swap transactions, in which lenders deliver pools of mortgage loans to the Company, which are placed immediately in a trust, in exchange for Fannie Mae MBS backed by these loans. Generally, the servicing of the mortgage loans held in its mortgage portfolio or that backs its Fannie Mae MBS is performed by mortgage servicers on the Company�� behalf. Lenders who sell single-family mortgage loans to Fannie Mae service these loans for the Company. For loans it owns or guarantees, the lender or servicer must obtain its approval before selling servicing rights to another servicer.

Fannie Mae�� mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of ownership interests, respond to requests for partial releases of s! ecurity, ! and handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies.

Multifamily Mortgage Business

Multifamily business works with the Company�� lender customers to provide funds to the mortgage market by securitizing multifamily mortgage loans into Fannie Mae MBS. Through its Multifamily business, Fannie Mae provides liquidity and support to the United States multifamily housing market principally by purchasing or securitizing loans that finance multifamily rental housing properties. It also provides some limited debt financing for other acquisition, development, construction and rehabilitation activity related to projects that complement this business. Fannie Mae�� Multifamily business also works with its Capital Markets group to facilitate the purchase and securitization of multifamily mortgage loans and securities for Fannie Mae�� portfolio, as well as to facilitate portfolio securitization and resecuritization activities.

The Company�� multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans and securities held in Fannie Mae�� mortgage portfolio. Revenues for Fannie Mae�� Multifamily business are derived from a variety of sources, including guaranty fees received as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS and on the multifamily mortgage loans held in its portfolio and on other mortgage-related securities; transaction fees associated with the multifamily business, and other bond credit enhancement related fees. As with the servicing of single-family mortgages, multifamily mortgage servicing is performed by the lenders who! sell the! mortgages to the Company. Fannie Mae�� Multifamily business is organized and operated as an integrated commercial real estate finance business.

Capital Markets

Capital Markets group's primary business activities include mortgage and other investments, mortgage securitizations, structured mortgage securitizations and other customer services, and interest rate risk management. Capital Markets group manages the Company�� investment activity in mortgage-related assets and other interest-earning, non-mortgage investments. It funds its investments primarily through proceeds the Company receives from the issuance of debt securities in the domestic and international capital markets. Its business activity is focused on making short-term use of its balance sheet rather than long-term investments. Activities Fannie Mae is undertaking to provide liquidity to the mortgage market include whole loan conduit, early funding, real estate mortgage investment conduit (REMICs) and other structured securitizations and dollar roll transactions. Whole loan conduit activities include its purchase of both single-family and multifamily loans principally for the purpose of securitizing them. During the year ended December 31, 2010, it was engaged in dollar roll activity. A dollar roll transaction is a commitment to purchase a mortgage-related security with a concurrent agreement to re-sell a similar security at a later date or vice versa.

Fannie Mae�� Capital Markets group is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Its Capital Markets group creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in its mortgage portfolio. Fannie Mae�� Capital Markets group may sell these Fannie Mae MBS into the secondary market or may retain the Fannie Mae MBS in its investment portfolio. The Company�� Capital Markets group creates single-clas! s and mul! ti-class structured Fannie Mae MBS, for its lender customers or securities dealer customers, in exchange for a transaction fee. The Company�� Capital Markets group provides its lender customers and their affiliates with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business.

Although the Company�� Capital Markets group�� business activities are focused on short-term financing and investing, revenue from its Capital Markets group is derived primarily from the difference, or spread, between the interests it earns on its mortgage and non-mortgage investments and the interest it incurs on the debt the Company issues to fund these assets. Its Capital Markets revenues are primarily derived from the Company�� mortgage asset portfolio. Capital Markets group funds its investments primarily through the issuance of a variety of debt securities in a range of maturities in the domestic and international capital markets. Investors in the Company�� debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks.

The Company competes with Freddie Mac, FHA and Ginnie Mae.

Advisors' Opinion:

• [By Alex Dumortier, CFA]

  Fannie and Freddie: future uncertain
  At the beginning of the month, I highlighted government mortgage agencies Federal National Mortgage Association (NASDAQOTCBB: FNMA  ) and Federal Home Loan Mortgage Corp. (NASDAQOTCBB: FMCC  ) , commonly known as Fannie Mae and Freddie Mac. As the result of an extraordinary run this year, the stocks now have, to my knowledge, the highest market capitalization of any penny stocks in the U.S. market.

Hot Bank Companies To Buy For 2014: Banco Bradesco SA (BBD)

Banco Bradesco S.A. (the Bank), incorporated on November 5, 1943, is commercial bank. The Bank offers a range of banking and financial products and services in Brazil and abroad to individuals, large, midsized and small companies and local and international corporations and institutions. It operates in two segments: the banking, and the insurance, pension and capitalization bonds. Its products and services encompass banking operations, such as loans and advances and deposittaking, credit card issuance, purchasing consortiums, insurance, leasing, payment collection and processing, pension plans, asset management and brokerage services. The main services it offers through Bradesco Expresso are receipt and submission of account applications; receipt and submission of account applications; Social Security National Service (INSS) benefit payments; checking and savings account deposits, and receipt of consumption bills, bank charges and taxes. In May, 2011, the Bank acquired Banco do Estado do Rio de Janeiro S.A. (BERJ).

Banking

The Banking segment includes deposit-taking with clients, including checking accounts, savings accounts and time deposits; loans and advances (individuals and companies, real estate financing, microcredit, onlending BNDES funds, rural credit, leasing, among others); credit cards, debit cards and pre-paid cards; management of receipts and payments; asset management; services related to capital markets and investment banking activities; intermediation and trading services; custody, depositary and controllership services; international banking services, and purchasing consortiums.

The Bank offers a variety of deposit products and services to our customers through its branches, including Non-interest bearing checking accounts, such as Easy Account, Click Account, Academic Account and Cell Phone Bonus Account; traditional savings accounts; time deposits, and deposits from financial institutions. As of December 31, 2011, it had 43.4 million savings a! ccounts. It offers its customers certain additional services, such as identified deposits and real-time banking transfers. Its loans and advances to customers, consumer credit, corporate and agricultural-sector loans, totaled R$263.5 billion as of December 31, 2011.

The Bank�� loan portfolio consists of short-term loans, vehicle financings and overdraft loans on checking accounts. It also provides revolving credit facilities and traditional term loans. As of December 31, 2011, it had outstanding advances, vehicle financings, consumer loans and revolving credit totaling R$58.0 billion, or 22.0% of its portfolio of loans and advances. Banco Bradesco Financiamentos (Bradesco Financiamentos) offers direct-to-consumer credit and leasing for the acquisition of vehicles and payroll-deductible loans to the public and private sectors 'in Brazil. Supported by BF Promotora de Vendas Ltda. (BF Promotora), and using the Bradesco Financiamentos brand, the Bank operates through its network of correspondents in Brazil, consisting of retailers and dealers selling light vehicles, trucks and motorcycles, to offer financing and/or leasing for vehicles. Through Bradesco Promotora brand, it offer payroll-deductible loans to social security retirees and pensioners, public-sector employees, military personnel and private-sector companies sponsoring plans, and other aggregated products (insurance, capitalization bonds, cards, purchasing consortiums, and others).

As of December 31, 2011, the Bank had 63,156 outstanding real estate loans. As of December 31, 2011, the aggregate outstanding amount of its real estate loans amounted to R$15.9 billion, representing 6% of its portfolio of loans and advances. As of December 31, 2011, it had 69,491 microcredit loans outstanding, totaling R$62.8 million. Its BNDES onlending portfolio totaled R$35.4 billion as of December 31, 2011.

The Bank provides traditional loans for the ongoing needs of its corporate customers. It had R$85.8 billion of outstand! ing other! local commercial loans, accounting for 32.5% of its portfolio of loans and advances as of December 31, 2011. It offers a range of loans to its Brazilian corporate customers, including short-term loans of 29 days or less; guaranteed checking accounts and corporate overdraft loans; discounting trade receivables, promissory notes, checks, credit card and supplier receivables, and a number of other receivables; financing for purchase and sale of goods and services; corporate real estate financing, and investment lines for acquisition of assets and machinery. As of December 31, 2011, the Bank had R$11 billion in outstanding rural loans, representing 4.2% of its portfolio of loans and advances. The Bank conducts its leasing operations through its primary leasing subsidiary, Bradesco Leasing and also through Bradesco Financiamentos.

The Bank offers electronic solutions for receipt and payment management solutions, which include collection and payment services and online resource management enabling its customers to pay suppliers, salaries, and taxes and other levies to governmental or public entities. The global cash management concept provides solutions for multinationals in Brazil and/or domestic companies operating abroad. It manages third-party assets through mutual funds; individual and corporate investment portfolios; pension funds, including assets guaranteeing the technical provisions of Bradesco Vida e Previdencia, and insurance companies, including assets guaranteeing the technical provisions of Bradesco Seguros.

The Bank�� subsidiaries Bradesco S.A. CTVM and Agora S.A. CTVM (or Bradesco Corretora and Agora Corretora, respectively) trade stocks, options, stock lending, public offerings and forwards. They also offer a range of products, such as Brazilian government securities (under the Tesouro Direto program), BM&F trading, investor clubs and investment funds.

The Bank offers a range of international services, such as foreign exchange transactions, foreign tr! ade finan! ce, lines of credit and banking. As of December 31, 2011, its international banking services included New York City, a branch and Bradesco Securities Inc., its subsidiary brokerage firm, or Bradesco Securities United States, and its subsidiary Bradesco North America LLC, or Bradesco North America; London, Bradesco Securities U.K., its subsidiary, or Bradesco Securities U.K.; Cayman Islands, two Bradesco branches and its subsidiary, Cidade Capital Markets Ltd., or Cidade Capital Markets; Argentina, Banco Bradesco Argentina S.A., its subsidiary, or Bradesco Argentina; Banco Bradesco Luxemburgo S.A. its subsidiary, or Bradesco Europe; Japan, Bradesco Services Co. Ltd., its subsidiary, or Bradesco Services Japan; in Hong Kong, its subsidiary Bradesco Trade Services Ltd, or Bradesco Trade, and in Mexico, its subsidiary Ibi Services, Sociedad de Responsabilidad Limitada, or Ibi Mexico.

The Bank�� Brazilian foreign-trade related business consists of export and import finance. In addition to import and export finance, its customers have access to a range of services and foreign exchange products, such as purchasing and selling travelers checks and foreign currency paper money; cross border money transfers; advance payment for exports; accounts abroad in foreign currency; cash holding in other countries; collecting import and export receivables; repaid cards with foreign currency (individual), and structured foreign currency transactions through its foreign units.

Insurance, pension plans and capitalization bonds

The Bank offers insurance products through a number of different entities, which it refers to collectively as Grupo Bradesco Seguros. It offers life, personal accident and random events insurance through its subsidiary Bradesco Vida e Previdencia. It offers health insurance policies through Bradesco Saude and its subsidiaries for small, medium or large companies. It provides automobile, property/casualty and liability products through its subsidiary Bradesco Auto! /RE. It a! lso offers certain automobile, health, and property/casualty insurance products directly through its Website.

Advisors' Opinion:

• [By Charles Sizemore]

  And speaking of top dividend stocks with high capital gains potential, next on the list of are Brazilian banking groups Banco Bradesco (BBD) and Banco Itau (ITUB) — two monthly dividend stocks you must consider.

Hot Bank Companies To Buy For 2014: Western Alliance Bancorporation (WAL)

Western Alliance Bancorporation (WAL) is a bank holding company. The Company provides full-service banking and lending to locally owned businesses, professional firms, real estate developers and investors, local non-profit organizations, high net worth individuals and other consumers through its three wholly owned subsidiary banks (the Banks): Bank of Nevada (BON), operating in Southern Nevada; Western Alliance Bank (WAB), operating in Arizona and Northern Nevada, and Torrey Pines Bank (TPB), operating in California. In addition, the Company�� non-bank subsidiaries, Shine Investment Advisory Services, Inc. (Shine) and Western Alliance Equipment Finance (WAEF), offer an array of financial products and services to small to mid-sized businesses and their proprietors, including financial planning, custody and investments, and equipment leasing nationwide. It operates in four segments: Bank of Nevada, Western Alliance Bank, Torrey Pines Bank and Other.

The Company provides a range of banking services, as well as investment advisory services, through its consolidated subsidiaries. As of December 31, 2011, WAL owned an 80% interest in Shine. As of December 31, 2011, the Company owned a 24.9% interest in Miller/Russell & Associates, Inc. (MRA), an investment advisor. MRA provides investment advisory services to individuals, foundations, retirement plans and corporations.

Lending Activities

Through the Company�� banking segments, the Company provides a variety of financial services to customers, including commercial real estate loans, construction and land development loans, commercial loans, and consumer loans. Loans to businesses consisted 89.2% of the total loan portfolio at December 31, 2011. Loans to finance the purchase or refinancing of commercial real estate (CRE) and loans to finance inventory and working capital that are additionally secured by CRE make up the majority of its loan portfolio. These CRE loans are secured by apartment buildings, professional of! fices, industrial facilities, retail centers and other commercial properties. As of December 31, 2011, 49% of its CRE loans were owner-occupied. Owner-occupied commercial real estate loans are loans secured by owner-occupied nonfarm nonresidential properties for which the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. Non-owner-occupied commercial real estate loans are commercial real estate loans for which the primary source of repayment is nonaffiliated rental income associated with the collateral property.

Construction and land development loans include multi-family apartment projects, industrial/warehouse properties, office buildings, retail centers and medical facilities. Commercial and industrial loans include working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans. Commercial loans are primarily originated to small and medium-sized businesses in a variety of industries. Consumer loans are generally offered at a higher rate and shorter term than residential mortgages. Its consumer loans include home equity loans and lines of credit, home improvement loans, credit card loans, and personal lines of credit. As of December 31, 2011, its loan portfolio totaled $4.68 billion, or approximately 68.4% of its total assets.

Investment Activities

All of the Company�� investment securities are classified as available-for-sale (AFS) or held-to-maturity (HTM). As of December 31, 2011, the Company had an investment securities portfolio of $1.48 billion, representing approximately 21.7% of its total assets. As of December 31, 2011, its investment securities portfolio consisted of the United States Government sponsored agency securities, Municipal obligations, Adjustable-rate preferred stock, Mutual funds, Corporate bonds, Direct the United States obligation and government-! sponsored! enterprise (GSE) residential mortgage-backed securities, private label residential mortgage-backed securities, Community Reinvestment Act (CRA) investments, Trust preferred securities, Private label commercial mortgage-backed securities, and Collateralized debt obligations.

Sources of Funds

The Company offers a variety of deposit products, including checking accounts, savings accounts, money market accounts and other types of deposit accounts, including fixed-rate, fixed maturity retail certificates of deposit. As of December 31, 2011, the deposit portfolio consisted of 27.5% non-interest bearing deposits and 72.5% interest-bearing deposits. Non-interest bearing deposits consist of non-interest bearing checking account balances. In addition to its deposit base, it has access to other sources of funding, including Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) advances, repurchase agreements and unsecured lines of credit with other financial institutions.

Financial Products and Services

In addition to traditional commercial banking activities, the Company offers other financial services to customers, including Internet banking, wire transfers, electronic bill payment, lock box services, courier, and cash management services. Through Shine, a full-service financial advisory firm, the Company offers financial planning and investment management.

Advisors' Opinion:

• [By Investment Biker]

  Investment Summary: This article is on Western Alliance Bancorporation (WAL), a growth-oriented commercial lender in the Southwest. The banks looks set to improve profitability supported by economic recovery in Last Vegas, industry-leading revenue performance and operating leverage supported by expense control. The credit profile of the bank looks excellent with limited exposure to residential mortgage and well poised to grow its loan portfolio by 20% annually over the next 3 years. It is also well set on a path to credit recovery with improving fundamentals that justifies premium valuation going forward.

Hot Bank Companies To Buy For 2014: Ampco-Pittsburgh Corporation(AP)

Ampco-Pittsburgh Corporation and its subsidiaries manufacture and sell custom-engineered equipment in the United States and internationally. It operates in two segments, Forged and Cast Rolls, and Air and Liquid Processing. The Forged and Cast Rolls segment produces forged hardened steel rolls used in cold rolling for the producers of steel, aluminum, and other metals; and cast iron and steel rolls for hot and cold strip mills, medium/heavy section mills, and plate mills. The Air and Liquid Processing segment manufactures finned tube and plate finned heat exchange coils for the commercial and industrial construction, as well as for process and utility industries; custom air handling systems used in commercial, institutional, and industrial buildings; and a line of centrifugal pumps for the refrigeration, power generation, and marine defense industries. The company was founded in 1929 and is based in Pittsburgh, Pennsylvania.

Advisors' Opinion:

• [By Mae Anderson] ATLANTA (AP) ��Finding a knockoff version of the fur you want under the Christmas tree would ordinarily be a disappointment.

  Not this year.

AT&T Aims to Make Major Towers Sale (T)

Telecom giant AT&T (T) is reportedly shopping around a number of its wireless towers for interested buyers.

As of right now, the attempted sale is not public, but an unnamed source estimated that the assets for sale could be worth $5 billion, according to an article on Bloomberg. The sale comes as AT&T needs capital to make a few upgrades; the firm is planning a $14 billion overhaul of its network and an $11 billion share repurchase program.

Selling towers allows for AT&T to then lease them back and focus spending on other areas of the business. Currently, AT&T has about 10,000 towers that generate approximately $326 million in annual revenue.

AT&T’s stock was up 18 cents, or 0.52%, at Tuesday’s close. The stock is up 3% this year.

Supreme Court’s Recess Appointment Case Challenges CFPB Head: Hensarling

The United States Supreme Court decision Monday to hear a case over the validity of President Barack Obama’s recess appointments of three people to the National Labor Relations Board on Jan. 4 will “effectively determine” the constitutionality of Richard Cordray’s appointment as director of the Consumer Financial Protection Bureau, said House Financial Services Committee Chairman Jeb Hensarling.

“The legal validity of any and all actions undertaken by the CFPB are now questionable,” Hensarling (right), a Texas Republican, said in a statement.

Because Obama also attempted to install Cordray as director of the CFPB “on the same day and in the same manner, the Supreme Court’s decision regarding the constitutionality of the NLRB appointments will effectively determine the constitutionality of Cordray’s appointment as well,” Hensarling said.

In 2010, “congressional Democrats and the Obama administration bestowed upon the CFPB director the power to impact the availability and affordability of credit for every single American,” Hensarling continued. “This single unelected, unaccountable bureaucrat has the unprecedented power to decide what financial products and services will — and will not — be available to American consumers.

"No bureaucrat in Washington should have the power to deny a credit card to a hardworking single mother trying to put food on the table, a mortgage to a couple trying to buy their first home, or a car loan for a family. It should be up to individual consumers to determine whether a product is the right fit for their lifestyle and financial planning — not a Washington bureaucrat.”

Hensarling said that Congress and the administration should make “common-sense reforms” to the CFPB so it is transparent and accountable to the American people, and ensure that it’s “governed by a bipartisan commission — which is how other federal agencies charged with consumer or investor protection operate.”

The CFPB, he said, should also “be subject to the same appropriations process as other agencies.”

Noting that the House “passed similar legislation in the last session of Congress,” Hensarling said the financial services committee “will once again advance a proposal to bring accountability and oversight to the CFPB.”

---

Check out Top 13 Regulatory Predictions for 2013 on AdvisorOne.

Mosaic Intros CropNutrition.com - Analyst Blog

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Fertilizer giant The Mosaic Company (MOS) has launched a website CropNutrition.com. This educational digital hub will provide information on soil fertility resources to agricultural retailers, farmers and industry experts who are looking for better understanding of the yield-sensitive scientific aspects of soil.

This website is an integral part of Mosaic's CropNutrition initiative. Under this initiative, Mosaic has designed an integrated campaign to educate farmers and retailers about important issues and trends affecting soil fertility. The company hopes that farmers will understand that there are various scientific aspects vital to achieving maximum yield and 60% of yield depends on soil fertility.

Mosaic has used numerous vehicles to spread the expertise and agronomic knowledge that is required for understanding the soil better, growing stronger crops and drive higher yields.

Mosaic has combined its prior crop nutrition resource Back-to-Basics.net's best research and soil fertility resources with new information gathered from its global network of research partners in the CropNutrition.com website. In addition, CropNutrition.com provides research findings and insights from Mosaic's best agronomists.

The website features crop nutrition expertise in forms including dynamic videos, timely and topical blog posts, an Agronomy Resource Center, an interactive periodic table of essential crop nutrients, and an extensive, searchable library.

Mosaic's team of elite agronomists aims to enlighten the farmers and retailers about the impact of a balanced approach to crop nutrition that can have on yield.

Plymouth-based Mosaic, which is among the biggest fertilizer companies on the planet along with Agrium Inc. (AGU), CF Industries Holdings, Inc. (CF) and Potash Corp. of Saskatchewan, Inc.(POT), is a single-so! urce provider of phosphates, potash fertilizers and feed ingredients for the global agriculture industry.

Mosaic, which currently holds a Zacks Rank #3 (Hold), will release its fourth-quarter fiscal 2013 results before the market opens on Jul 16.

Why Self-Directed IRAs Are a Bad Idea

While the freedom to choose among a wider range of investments  and thus earn a greater profit – is enticing, self-directed IRAs are probably a bad idea for you and me. Once you take into account the tax regulations and extra research you'll need to put in to vet investments, the cons outweigh the pros.

It's important to understand that just about all IRAs are self-directed in the sense that you choose the investments for your retirement account. But when people talk about self-directed IRAs, they're usually referring to financial institutions that allow you greater flexibility to go beyond stocks, bonds, and funds in your IRA.

Pros to a self-directed IRA
That flexibility is the first and main benefit of a self-directed IRA. Unlike most typical IRAs, self-directed IRAs give you the chance to invest in something "unusual" or "alternative." For instance, if you think a privately held business will hit it big, a self-directed IRA might let you invest your retirement dollars in that business. PayPal CEO Peter Thiel did just that when he earned more than $30 million tax-free after eBay bought his company. His self-directed IRA swelled once again as Facebook went public. 

Another example is real estate, where self-directed IRAs let you choose specific properties. While you could buy a mortgage REIT like Annaly Capital (NYSE: NLY  ) to give you more diversified exposure to the real estate market, the only way to put a particularly attractive piece of real estate into an IRA is through a self-directed option.

The big cons to a self-directed IRA
In order to get something, you have to give something. In this case, the self-directed IRA gives you flexibility at the price of great complexity.

Alternative assets -- a private business or a piece of real estate -- are hard to value. Often, those with a self-directed IRA must hire a financial advisor for valuation help. Not only does this add to the cost of investing, but you also get into the habit of listening to "experts."

Moreover, there are still other tax and legal regulations that you must be wary of with the self-directed IRA. Provisions against self-dealing and avoiding too much involvement in the operation of a business are just a couple of the potential pitfalls. To make sure you don't cross the line, you'll probably have to hire a tax and legal advisor -- once again, increasing your investment costs.

Do you really need it?
By contrast, sticking with a regular IRA is more than adequate for most investors. If you properly diversify your retirement money with several different index mutual funds or ETFs, you won't have to pay anyone for advice and do the extensive research needed to vet individual properties or businesses. And so far, that strategy has performed phenomenally, with many index strategies beating actively managed stock portfolios and even many private hedge funds.

While self-directed IRAs may give you the opportunity to invest in a private business or real estate, the financial and legal regulations can be a huge pain. More importantly, it's not guaranteed that you'll strike it rich with your new, alternative investment. There's a good chance that you'll lose your retirement money, which may force you to work well into retirement!

So, if you think you're savvy enough and have the money to pay for a team of financial, legal, and tax advisors, by all means open a self-directed IRA. Most of us, though, will be best off keeping our retirement investments boring but safe.

To make sure you're making the right retirement decisions, it helps to figure out what others are doing wrong. With most people chronically under-saving for their retirement, it's clear that not enough is being done. Don't make the same mistake as the masses. Make sure you have enough for retirement now. Learn about The Shocking Can't-Miss Truth About Your Retirement. It won't cost you a thing, but don't wait because your free report won't be available forever.

Mortgage Loan Rates Continue to March Higher

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 5.5% in the group's seasonally adjusted composite index following a rise of 1% for the previous week. Mortgage loan rates increased again last week on three of four loan types.

The seasonally adjusted purchase index decreased by 6% from the prior week’s report to its lowest level in a year. On an unadjusted basis, the composite index decreased by 6% week-over-week. The unadjusted purchase index decreased by 9% for the week, and is 12% lower year-over-year.

Mortgage rates continue to creep up and home sales continue to slip. An MBA executive noted:

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Mortgage applications fell further last week, with the market index falling to its lowest level in more than a dozen years. Both purchase and refinance applications fell as interest rates increased going into today’s Federal Open Market Committee meeting.

The MBA’s refinance index decreased by 24%, after dropping by 2% in the previous week. The share of refinancings rose by a point, totaling 66% of all applications. Adjustable rate mortgage loans account for 8% of all applications, unchanged from the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.61% to 4.62%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.59% to 4.61%. The average interest rate for a 15-year fixed-rate mortgage remained unchanged at 3.66%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.11% to 3.2%.

Conforming and jumbo fixed-rate mortgages are back at levels last seen in September. The sharp rise in adjustable rate mortgages likely is due to demand for the much lower interest rate. Adjustable rate mortgages have begun to make a comeback as other mortgage rates rise. This is a good thing now, but could become a problem later.

Palatin Technologies Close to Being Catapulted (PTN)

At first glance, Palatin Technologies, Inc. (NYSEMKT:PTN) doesn't look like anything particularly special, nor anything particularly investment-worthy. The longer you study the chart of PTN, however, the clearer it becomes... this stock is on the verge of breaking out, and should be on most traders' watchlists.

The name doesn't necessarily suggest it, but Palatin Technologies is actually a biopharma stock. It's got nothing on the market right now, though the PTN pipeline is relatively full. The big kahuna the company is working on is a female sexual-dysfunction drug, currently ready to begin Phase 3 trials. It's got four more drugs in the works too... well, three more drugs taking aim at four more illnesses. Two are in Phase 1 testing, and two more are in preclinical phases. All in all, it's not a bad pipeline for a company of this size, age, and ilk.

The details are relatively inconsequential to anyone who's been following the Palatin Technologies, Inc. saga so far, however. The reason the story got real interesting real quick has everything to do with the chart today, yet nothing to do with any news. In fact, there hasn't been any news from, or even about, PTN in days. That's what makes today's strength even more compelling.

The weekly chart below tells the story as well as any words could. Since early 2012, Palatin Technologies has been in a sideways mode, ending a downtrend that lasted all the way through 2011. With just a quick look, the stock doesn't look it's done anything other that move sideways. When you lay down the horizontal lines, however, you can see we've actually been chipping away at higher highs and higher lows. Fast forward to today. PTN poked through a ceiling at $0.75, and even took a shot at hurdling $0.80. Indeed, the stock hit a high of $0.83 before pulling back to $0.77. The cat's out of the bag though... the bulls have tipped their hand.

It's still a little premature to jump on the bandwagon, but it's not too soon to start thinking about it. If Palatin Technologies can make a close above $0.80 - and bear in mind it might take a few days for that move to materialize - that should yank the stock out of a sideways rut and kick-start a new uptrend. After two years of consolidation, the pump is primed.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter.

Is the Fall in Lululemon a Buying Opportunity?

Lululemon (NASDAQ: LULU  ) crashed by more than 11% on Thursday as the company´s earnings report included a worrisome reduction in sales and earnings guidance. Is the recent dip in Lululemon a buying opportunity or will competitors like Gap (NYSE: GPS  ) and Under Armour (NYSE: UA  ) capitalize the company´s problems to continue gaining market share in the yoga business?

Strong earnings, concerning guidance
The numbers for the third quarter where actually better than expected, Lululemon reported a year-over-year increase of 20% in revenue to $379.9 million. Comparable-store sales increased by a healthy 5% during the quarter and direct-to-consumer revenues were also strong with a 37.3% annual increase during the period.

Profit margins have been under pressure lately, and the recent quarter was no exception. Gross profit margins fell to 53.9% of revenue versus 55.4% in the third quarter of fiscal 2012 and operating margin declined to 24.3% of sales compared to 25.5% in the same quarter of the previous year.

Still, the company reported better than expected earnings per share of $0.45 versus $0.39 in year-ago quarter. Wall Street analysts were on average expecting earnings of $0.40 per share.

Guidance was a big disappointment though: management reduced its sales expectations for the fourth quarter of fiscal 2013 to between $535 million and $540 million versus a previous guidance of between $565 million and $570 million.

Same-store sales for the upcoming quarter are expected to be flat and management expects earnings per share to be in the range of $0.78 to $0.80, materially lower than the average Wall Street estimate of $0.84 per share. Lululemon also cut sales and earnings guidance for fiscal 2014.

CEO Christine Day pointed to macroeconomic factors and execution problems as the main reason for the disappointing guidance:

"This so far has been a year of challenges, learning, and growth for Lululemon, and while our outlook for the fourth quarter is being impacted by both macro and execution issues, I believe that the investments we are making in the business combined with the team in place create a strong platform for growth in the years ahead."

Mistakes and competitive pressure
Lululemon has made a series of expensive mistakes this year, in March, the company had to recall 17% of the yoga pants it had in stock due to excessive sheerness. Later in June, CEO Christine Day unexpectedly announced she was leaving the company once a replacement was found, which produced another steep decline in its stock.

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Adding insult to injury, founder and Chairman Chip Wilson made some very unfortunate comments insinuating that women´s bodies may be to blame for the problems with the company´s products. "Frankly, some women's bodies just actually don't work", Wilson said on Nov. 5 in an interview with Bloomberg TV.

On Dec.9 Lululemon announced that Laurent Potdevin has been appointed as new CEO. The executive, who most recently served as President of TOMS Shoes, is taking charge in January 2014. In addition to this, Chip Wilson is resigning to the Chairman position. So, the recent disappointment comes in a time when investors in Lululemon were starting to have hopes of a better future as a new management team could streamline operations and leave the company´s problems in the past.

A renewed management team is clearly positive news for Lululemon, but investors need to consider that the company is now facing growing competitive challenges by the likes of Gap´s Athleta brand and Under Armour.

Athleta is opening new stores near existing Lululemon locations, benefiting from its traffic and undercutting Lululemon products in price by a considerable difference. In addition to this, Athleta is copying Lululemon´s marketing strategy by hooking up with yoga instructors and sponsoring all kinds of classes and similar activities to increase brand awareness. Athleta offers a wider variety of sizes than Lululemon, providing an alternative for customers who prefer a more inclusive brand and capitalizing on Wilson´s unfortunate comments.

Under Armour is also stepping up its efforts in women apparel, CEO Kevin Plank believes women apparel will generate around $1 billion in revenue for the company in 2016 and yoga could be a considerable opportunity for Under Armour in the coming years. Under Armour is clearly going after Lululemon with its marketing campaigns, the company recently launched big campaign for its studio yoga line using the tagline "We've Got You Covered" in clear reference to Lululemon´s sheerness problem.

Lululemon has been one of the most successful brands in the sports apparel business over the last years. But success attracts competition, and the company is now facing growing competitive pressure while at the same time it needs to recover from recent mistakes hurting its brand and image. The new management team will clearly be facing a demanding challenge in the coming quarters.

Bottom line: a visibility problem
Is management playing it safe by providing an excessively low guidance so it can easily over-deliver in the coming quarters? Or is increased competition from players like Gap and Under Armour seriously hurting Lululemon? Uncertainty usually creates opportunity, and there is plenty of uncertainty surrounding Lululemon. The company offers material upside potential if the new CEO can leave its problems behind and reignite growth in the coming quarters. On the other hand, Lululemon´s visibility problems go well beyond its pants.

2014 Preview: 3 Movies That Could Be Big-Budget Disasters

No studio is immune to box-office bombs.

Look at 2013's worst. Walt Disney's Buena Vista Pictures produced The Lone Ranger and then distributed The Fifth Estate. "Awful" is too polite a word to describe the resulting losses, totaling at least $150 million by my math.

Therein lies the trouble with investing in moviemakers. I mean, if Disney can get it so wrong, how can any of us mere mortals hope to profit owning stock in the major media names? I'll have more on what makes for a good entertainment stock in a follow-up article. For now, let's review what I believe are the three conditions that most often lead to box-office disaster. Specifically:

1. Unoriginal thinking. Predictable stories that copy much of what we've seen before can go sideways in a hurry. Remakes and sequels that try too hard to capture the magic of the source material tend to fall into this category. Recent examples might include Red Dawn and Total Recall.

2. Letting gimmicks drive the story. Audiences crave good stories and sympathetic characters. Special effects, no matter how impressive, can't compensate for a bad script performed poorly. I'd count Green Lantern among recent examples.

3. Too big to succeed. Most movies earn the bulk of their box-office take in the first three weekends. Some aren't even that lucky. Thus, the bigger the budget, the greater the chance a movie will fail.

Which 2014 movies are most likely to suffer these flaws and punish their parent studios in the process? Here are my three picks.

Um, guys? Parachuting onto the back of a giant monster might be dangerous. Source: Legendary Pictures.

Godzilla
Studio: Warner Bros. and Legendary Pictures
Release date: May 16, 2014
Estimated production budget / box-office breakeven: $160 million / $320 million

Why it should lose: Creature features tend to draw niche audiences. Pacific Rim, another collaboration between Legendary and Time Warner's (NYSE: TWX  ) Warner Bros., appears to have barely recovered its costs with a $407 million worldwide gross on a $190 million budget, Box Office Mojo reports.

Why it might win anyway: We're talking about Godzilla, people. Millions of aging geeks who remember the 1970s Japanese monster flicks could show up to see the big, green kaiju with a distinctive screech for a roar. Meanwhile, the supporting cast includes Breaking Bad's Bryan Cranston and Aaron Taylor Johnson from both Kick-Ass films.

Projected impact: Legendary is the principal financier and is likely to take the hit if Godzilla fails. Warner is putting more muscle behind its DC Comics properties.

Joel Kinnaman stars in the role actor Peter Weller made famous. Source: Sony/Columbia.

Robocop
Studio: Sony's (NYSE: SNE  ) Columbia Pictures
Release date: Feb. 12, 2014
Estimated production budget / box-office breakeven: $120 million / $240 million

Why it should lose: Action remakes can work -- 2010's The Karate Kid, for example -- but how do you replace Peter Weller, who turned a metallic-sounding "your move, creep" into a catchphrase? A 1993 sequel to the sequel (i.e., Robocop 3), in which Weller gave way to Robert John Burke, made less than $11 million on a $22 million production budget.

Why it might win anyway: The movie stacks up against a predictable mix of romance and fantasy movies on Valentine's Day weekend, including remakes of About Last Night and Endless Love. Action fans looking for something different could show up in force.

Top Small Cap Stocks To Buy For 2014

Projected impact: After a disastrous 2013 that precipitated a management shake-up at the studio, Sony would love for Robocop to be an early 2014 win. The real test doesn't come till May, though, when The Amazing Spider-Man 2 arrives in theaters.

Russell Crowe stars in director Darren Aronofsky's take on the classic Bible story. Source: Paramount Pictures.

Noah
Studio: Paramount Pictures
Release date: March 28, 2014
Estimated production budget / box-office breakeven: $130 million / $260 million

Why it should lose: According to The Hollywood Reporter, test screenings with audiences didn't go as well as Paramount and studio parent Viacom (NASDAQ: VIAB  ) might have hoped. The movie also opens on the heels of Hunger Games wannabe Divergent and Disney's Muppets Most Wanted. Tough competition, to be sure.

Why it might win anyway: Controversy tends to draw well. Look at recent history: 2004's The Passion of the Christ grossed more than $600 million, while 2006's The Da Vinci Code topped $750 million. An impassioned response to Noah -- for or against -- could produce similar results.

Projected impact: Not much. Filmed entertainment accounts for less than a third of Viacom revenue and a minuscule 6% of pre-tax operating profit. Noah's capsizing wouldn't be the end of the world for Viacom and Paramount, which still owns the TV and movie rights to the lucrative Star Trek franchise.

Now it's your turn to weigh in. What 2014 movies do you expect to bomb? What movies are you most looking forward to? Leave a comment below to let us know what you think.

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Like Dwarves in a Barrel: Stocks Rocked as Fed Meeting Approaches

In Peter Jackson’s the Desolation of Smaug, the second part of his Hobbit trilogy, Bilbo Baggins and his dwarf companions make their escape from a group of elves by hiding inside barrels and being swept down a river. Investors this week can surely sympathize with those dwarves, as the stock market provided a rocky and uncomfortable ride, and stocks like Nike (NKE),  United Health (UNH) and United Technologies (UTX) pulled the major benchmarks down. Unlike last week, this time there was no escape.

Warner Bros. Pictures

The S&P 500 fell 1.65% to 1,775.32 this week, its largest drop since the week ending August 30, while the Dow Jones Industrial Average fell 1.65% to 15755.36, its largest drop since August 16. Shares of United Technologies dropped 3.4% this week after the industrial conglomerate lowered its earnings guidance this week, while Nike declined 4.3% to $76.40 ahead of next week’s earnings. United Health finished the week off 4.1% at $70.48 just because it could.

Which isn’t to say there weren’t some winners. United States Steel (X) gained 3.7% to $27.31 this week on the back of a Cowen upgrade, while Visa (V) rose 2.7% after Mastercard (MA) announced a buyback, dividend increase and stock split.

Why the drop? If I had to hazard a guess, investors used next week’s Fed meeting as an excuse to lock in some of this year’s gains. And there was plenty of Fed news, from the potential nomination of Stanley Fischer as Vice Chairman to economic data that could mean the taper begins sooner rather than later.

Just don’t expect it to occur next week, say RBC Capital Markets’ Tom Porcelli and team. They write:

We remain surprised by how many investors think there is a real shot the Fed tapers next week. They are not in the majority – not by a long shot – but the group seems to have gained a few more constituents of late…

December is a long-shot. We are sympathetic to the idea that the Fed is more than capable of surprising the markets and we will not discount some move by the committee to set expectations about the eventuality of tapering (whether in the statement itself or in Bernanke's press conference). That said we think they will stop short of engaging in tapering at this meeting and our base case remains that asset purchases will be scaled back in March – with January odds increasing, to be sure.

Citigroup’s Tobias Levkovich expects markets to head higher in 2014 but warns investors to expect a bumpier ride. He writes:

Volatility is expected to pick up entering 2014 after a rather smooth ascendant market this past year, but short-term indicators intimate that the environment will be somewhat less calm in coming months. Indeed, even the resumption of taper talk in 1Q14 could be disruptive, not to mention probable earnings estimate reductions during the January/February EPS release period given that consensus bottom-up
numbers are too high.

Don’t expect investors to rush back into stocks even if the Fed does start to taper, says UBS’s Daniel Rudis. He writes:

The recent abundance of money has disguised the ‘true’ interest rate and has made it hard to estimate what the demand for stocks would be in the absence of central bank intervention. Even a great rotation is unlikely to take us back to the equity allocation levels seen in the nineties, since aging demographics in developed markets have curbed risk appetite. Structurally, lower risk tolerance is likely among the reasons for lower equity holdings in pension portfolios…

Morgan Stanley’s Graham Secker tells investors to favor developed-market stocks over emerging-market equities. He writes:

While the outperformance of DM over EM has been quite significant this year, we still think it’s too soon to rotate back into EM for three reasons. From a valuation perspective, EM isn’t quite cheap enough yet on relative price to book or relative ROE, where EM is only slightly below the long-run average relative to DM, and not yet at the washout levels that we look for to make a rotation back to EM.

Top 5 Energy Companies To Invest In 2014

Maybe we should all just seek a haven inside a barrel instead. Or better yet, a bottle.

Stock Market's Losers Ending Year on Sour Note

The few individual stocks that have missed out on this year’s rally are finishing 2013 on a sour note.

The S&P 500 is up 26% this year, on pace for its best annual performance since 2003 when it rallied by a similar amount. Within the big rally, there are only 48 stocks, or less than 10% of the index, that are in the red for the year, according to Bespoke Investment Group.

Those losers are getting hit harder than the rest of the market this month.

The 48 stocks that are down for the year have fallen by 1.5%, on average, in December, Bespoke says. By comparison, the average S&P 500 stock is down 0.7% this month.

“With such nice returns for the market in 2013, investors are sitting on significant capital gains that they'll have to pay taxes on by April 15th next year,” says Justin Walters, co-founder at Bespoke. “One way to offset the tax expense from capital gains is to take losses.”

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For instance, the worst-performing S&P 500 component – Newmont Mining Corp. — is down 48% this year. In December, the stock is down 3.6%. Abercrombie & Fitch Co.(ANF) is off 30% this year, including a 2.6% decline this month. Intuitive Surgical Inc.(ISRG), which has dropped 25% this year, is down 2.6% in December.

Even J.C. Penney Co.(JCP), a company no longer in the S&P 500, is following a similar trend. An original member of the S&P 500 when it was constructed in 1957, J.C. Penney was booted out of the stock index last month due to its dwindling market value. Shares of the struggling department-store chain are down 57% this year. The stock showed some signs of life in November, rallying 36% and briefly trading above $10. But the selling has resumed this month, with shares off 17% so far in December.

Mr. Walters suggests anyone looking to buy any beaten-down stocks “may want to wait until the new year when the capital gains tax burden for 2013 has cleared.”

Investors Too Optimistic Following Joy Global’s Big Dip?

There is no joy in Joy Global (JOY).

Agence France-Presse/Getty Images

Shares of Joy Global, which competes with the likes of Caterpillar (CAT), Terex (TEX) and Deere (DE), have plunged today after the machinery maker announced disappointing earnings and guidance.

The Wall Street Journal has the details on Joy Global’s earnings and guidance:

Joy expects full-year per-share earnings of $3 to $3.50 on revenue of $3.6 billion and $3.8 billion. Analysts polled by Thomson Reuters recently expected full-year earnings of $3.68 a share on $3.8 billion in revenue.

For the quarter ended Oct. 25, Joy Global reported a profit of $26.8 million, or 25 cents a share, down from $212.6 million, or $1.99 a share, last year. Excluding unusual items, per-share earnings fell to $1.11 from $2.10.

Sales also dropped 35% to $1.18 billion.

Analysts polled by Thomson Reuters had forecast per-share earnings of $1.12 a share on revenue of $1.12 billion.

Axiom Capital’s Gordon Johnson explains why investors shouldn’t bet on a quick turnaround:

…the assumption on the Street is that 2014 is a trough, and things get better in 2015. HOWEVER… we'll remind our readers that the three largest miners in the world are all guiding 2015 CAPEX down significantly vs. 2014 CAPEX. Thus, JOY's/Consensus' assumption that things stabilize in 2015 remains a mystery to us. HOW do things stabilize when the biggest miners plan on cutting CAPEX materially? …

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FY14 is set to disappoint. More specifically, assuming, as has always been the case, thermal coal demand in China falls in 2H14, things are NOT going to get better for JOY and their sales will approach $3bn/yr, or $750mn/qtr. Given the company is clearly managing costs to a low-end sales rate of $900mn/qtr (i.e., the low-end of their sales guidance of $3.6bn ÷ 4 = $900mn), should sales fall below this level, their will likely see their decremental margins go ABOVE their targeted 34% level, pushing profitability incrementally lower.

Shares of Joy Global have dropped 5.7% to $53.04, while Deere has fallen 0.7% to $87.44, Caterpillar has declined 1.1% to $85.46 and Terex is off 2.2% to $37.61.

‘Time’ Person of the Year: Pope Francis

Calling him "The People's Pope," Time magazine on Wednesday named Pope Francis its Person of the Year.

"For pulling the papacy out of the palace and into the streets, for committing the world's largest church to confronting its deepest needs, and for balancing judgment with mercy, Pope Francis is Time's 2013 Person of the Year," Time said in its announcement.

Time's other 10 finalists were a mixed crew: President Obama, NSA leaker Edward Snowden, Syria President Bashar Assad, Iran President Hassan Rouhani, Secretary of Health and Human Services Kathleen Sebelius, Amazon founder Jeff Bezos, Sen. Ted Cruz, R-Texas, gay rights activist Edith Windsor — and singer Miley Cyrus.

"What makes this pope so important is the speed with which he has captured the imaginations of millions who had given up on hoping for the church," Time said in its cover story.

Pope Francis, 76, was born Jorge Mario Bergoglio in Buenos Aires. He was named archbishop of Argentina in 1998, became a cardinal in 2001 and was elected pope by the papal conclave in Vatican City on March 13. He replaced Pope Benedict XVI, 86, who announced his resignation Feb. 11 citing a "lack of strength of mind and body" due to his advanced age.

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Francis had earned a reputation for humility and commitment to the poor long before assuming leadership of the world's 1.2 billion Catholics. Last month, he spoke out against "trickle-down" economic policies, saying they have not been proven to work and reflect a "naïve trust in the goodness of those wielding economic power."

The pope also turned heads in recent months with this comment about homosexuality. "A person once asked me, in a provocative manner, if I approved of homosexuality. I replied with another question: 'Tell me, when God looks at a gay person, does he endorse the existence of this person with love, or reject and condemn this p! erson?' We must always consider the person."

Time lauded Francis for letting his personality shine through in a church known for its stern rules, bureaucracy — and sex scandals.

"As Pope, he was suddenly the sovereign of Vatican City and head of an institution so sprawling — with about enough followers to populate China — so steeped in order, so snarled by bureaucracy, so vast in its charity, so weighted by its scandals, so polarizing to those who study its teachings, so mysterious to those who don't, that the gap between him and the daily miseries of the world's poor might finally have seemed unbridgeable," Time says. "Until the 266th Supreme Pontiff walked off in those clunky shoes to pay his hotel bill."

Obama was Person of the Year in 2012 — and in 2008. He is the only person among last year's finalists to make the list again this year.

Time selected its first "Man of the Year" in 1927. The selection is based on the person the magazine's editors believe most influenced the news this year, for good or bad. Time's readers, in a poll completed last week, selected Egypt's Gen. Abdul Fattah al-Sisi as their Person of the Year.

Follow @jmbacon on Twitter

Friday Links

NEW YORK (CNNMoney) -

A weekly collection of design, data and interactive links. Design/Data viz Ekisto | Interactive visualization of three online communities Fourth down bot | Calculating the best call on 4th down Records for life | Redesigning the child health record DIWire | The first desktop wire bender Lego paintings | Classic paintings made with LEGO Photo/Video Play the Road | A project that synchronizes driving and music in real time Smartphone projector | $3 DIY projector Victory Journal | Personal stories told with bold layouts Robot jellyfish | Four-winged robot flies like a jellyfish Wyoming Wildscapes II | Time-lapse video Code Hello Processing | Learn to code in one hour Poly-maker | Create custom polygons (Chrome only) See last week's links Have a nice weekend! @dubly and @talyellin

Japan swings to current account deficit in October

TOKYO--Japan unexpectedly swung into a current account deficit in October as its massive goods and services trade deficit eradicated the benefits of solid income from overseas investment.

The Y127.9 billion deficit in the current account, the broadest measure of Japan's trade with the rest of the world, was much worse than the Y420.8 billion surplus the country registered a year earlier, data released by the Ministry of Finance showed Monday. Economists surveyed by the Nikkei and The Wall Street Journal had been expecting a surplus of Y160.1 billion for the month.

A Y1.092 trillion trade deficit was largely responsible for the red ink, the data showed.

The current account measures trade in goods, services, tourism and investment. It is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment.

Write to Mitsuru Obe at mitsuru.obe@wsj.com

Top Medical Stocks To Buy Right Now

In addition to choosing a health insurance plan, what employee benefits should I consider during open enrollment?

SEE ALSO: 7 Smart Uses for Your Flex Account Money

Many people focus solely on their health insurance choices. But there are other benefits at stake during open enrollment. Here are some important considerations to help you make the most of those extra benefits for 2014.

Understand the new flexible spending account rules. Setting aside money in an FSA can be a great way to lower your taxable income and provide tax-free money for medical expenses. Contributions to health care FSAs are now limited to $2,500 per year, but you may have more time to use the money. In the past, you�� generally lose any money remaining in the account on December 31 (some employers offer a grace period to March 15). The Treasury Department and IRS recently changed the rules so that employers may allow people to carry over $500 in their accounts from one year to the next. It�� up to employers to decide whether to implement this new option. Some will add the carryover as early as 2013 or wait until 2014; some will choose to keep the grace period (plans may not offer both the $500 carryover and the grace period); and some may still require you to use the money by December 31. Ask your employer which rules apply to your plan. See Big Change to Flexible Spending Accounts for more information.

Top Medical Stocks To Buy Right Now: Inergetics Inc (NRTI)

Inergetics, Inc., formerly Millennium Biotechnologies Group, Inc., incorporated on November 9, 2000, is a holding company for its sole operating subsidiary, Millennium Biotechnologies, Inc. (Millennium). The Company through its subsidiary Millennium, engages in the research, development, and marketing of specialized nutritional supplements as an adjunct to medical treatments for select medical conditions, as well as for athletes seeking improved recovery and advanced performance. The Company markets products, which are targeted toward immuno-compromised individuals undergoing medical treatment for diseases, such as cancer, as well as wound healing and post-surgical healing and geriatric patients in long-term care facilities among other conditions. In January 2013, the Company acquired Bikini Ready and SlimTrim brands from Whole Products Group.

The Company�� product portfolio include, Resurgex Select, Ready-To Drink Resurgex Essential and Ready-To-Drink Resurgex Essential Plus. Resurgex Select is a whole foods-based, calorically dense, high-protein powdered nutritional formula developed for cancer patients undergoing chemotherapy or radiation treatments. Resurgex Essential and Resurgex Essential Plus represent Millennium�� Ready-to-Drink product line and are being sold into the Long-Term Care geriatric markets.

Resurgex Select

Resurgex Select is a whole foods-based nutritional product that is designed to be used throughout the course of cancer treatment (chemotherapy, radiation, etc.), as many times patients lose weight and cannot consume adequate nutrition. This product combines dietary fiber (3 g), low sugar (5 g), and high protein (15 g) with no added antioxidants to be a high-calorie (350 calorie) supplement. It is available in three flavors (Vanilla Bean, Chocolate Fudge, and Fruit Smoothie) and each can be mixed with water, milk, juices, or in soft cold foods, such as yogurt, apple sauce or pudding.

Surgex

Surgex (www.surgexspor! ts.com), is a nutritional support formula that aims to address the concerns of many elite athletes who suffer from symptoms, such as fatigue, lean muscle loss, lactic acid buildup, oxidative stress, and stressed immune systems. This formula is designed to improve recovery parameters in efforts to enhance the performance of professional and collegiate athletes.

Resurgex Essential

The Essential line is a ready-to-drink alternative to Ensure and Boost designed to be marketed into the long-term care channel. Resurgex Essential has 250 whole food calories containing no corn syrup or corn oil. The product also contains fruit and vegetable extracts, and FOS Fiber to provide calories and taste.

The Company competes with Nestle and Abbott Laboratories Inc.

Top Medical Stocks To Buy Right Now: Compugen Ltd.(CGEN)

Compugen Ltd. operates as a drug and diagnostic discovery company based on computer-based discovery capabilities to predict and select novel product candidates. Through in silico prediction and selection, the resulting novel molecules are synthesized and validated utilizing traditional in vitro and in vivo experimental procedures. The company provides these validated product candidates to pharmaceutical, biotech, and diagnostic companies under licensing and other commercialization arrangements. Its research and discovery efforts are focused primarily on therapeutic proteins and peptides, and monoclonal antibodies, and primarily in the fields of immunology and oncology. Its therapeutic peptide and protein related platforms include Protein Family Members Discovery Platform, Protein-Protein Interaction Blockers, GPCR Therapeutic Peptide Ligands, Disease-Associated Conformation Blockers, Intracellular Drug Delivery, Viral Peptides, and Splice Variant based Therapeutic Proteins . The company?s monoclonal antibody related platforms comprise Monoclonal Antibody Targets. Its other therapeutic and diagnostic platforms consist of Nucleic-Acid Disease Markers, Protein Disease Markers, Nucleic-Acid Preclinical Toxicity Markers, Non-SNP Drug Response Markers, and New Indications. Its therapeutic peptide and protein product candidates comprise CGEN-15001, a novel protein for the treatment of autoimmune disorders; CGEN-25017, a novel peptide antagonist of the Angiopoietin/Tie-2 pathway; CGEN-855, a peptide agonist of the FPRL1 GPCR receptor; CGEN-856 and CGEN-857, which are MAS GPCR peptide agonists; CGEN-25007, an antagonist of the gp96 protein; and CGEN-25009, a peptide of the LGR7 receptor. The company also offers monoclonal antibody target product candidates, including CGEN-671, a drug for multiple epithelial tumors; CGEN-928, a drug for multiple myeloma; and CGEN-15001T, a novel B7/CD28 family member. Compugen Ltd. was founded in 1993 and is based in Te l Aviv, Israel.

Advisors' Opinion:

• [By Sean Williams]

  On Monday, small-cap biotechnology company Compugen (NASDAQ: CGEN  ) gave investors something to cheer about when it announced a collaboration and licensing agreement with Bayer for two of its antibody-based immunotherapies. The deal could be worth as much as $540 million for Compugen and gives the company $10 million upfront, as well as the potential for $30 million more in milestone payments during preclinical trials. The two companies will co-develop these drugs, with Bayer getting worldwide rights upon commercialization (though Compugen would still receive a mid- to high-single-digit royalty). This is great news for Compugen, as it solves the problem of seeking out a partner later, helps reduce its clinical testing costs, and staves off the need to dilute shareholders with a secondary offering to raise cash. Shares added 44% this week.

Best Medical Stocks To Invest In 2014: Revolutions Medical Corp (RMCP)

Revolutions Medical Corporation (Revolutions Medical), incorporated on August 16, 1996, is principally engaged in the designing, developing and commercializing of retractable vacuum safety needle devices. The Company is engaged in the development of technology which can segment and reference MRI images. The Company also has developed a suite of MRI software tools; RevColor, Rev3D, RevDisplay, and RevScan. MRI (Magnetic Resonance Imaging) is used imaging system that safely creates many different and detailed views of selected portions of the internal anatomy.

The RevVac safety syringe uses vacuum technology to retract the needle into the plunger immediately after use. The syringe cannot be reused once the vacuum is activated. When an MRI is taken, the black and white images are sent to a picture archiving and communication system (PACS), which displays the images for a radiologist to view. By using high speed Internet, these images can be securely sent to the Company�� secure Website, after a secure account is opened. This process is called teleradiology.

The Company competes with Med-Design Corporation, New Medical Technologies, Retractable Technologies, Inc., Unilife, Inc., Specialized Health Products International, BD and Covidien Ltd, Terumo Medical Corp. and B. Braun internationally.

Top Medical Stocks To Buy Right Now: Organovo Holdings Inc (ONVO)

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 Company 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 automate! d 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.

Advisors' Opinion:

• [By Roberto Pedone]

  Organovo (ONVO) develops 3D bioprinting technology for creating functional human tissues on demand for research and medical applications. This stock closed up 2.5% to $5.98 in Tuesday's trading session.

  Tuesday's Range: $5.70-$6.07
  
  52-Week Range: $1.80-$8.50
  
  Thursday's Volume: 2.03 million
  
  Three-Month Average Volume: 2.82 million

  From a technical perspective, ONVO jumped higher here right off its 50-day moving average of $5.79 with decent upside volume. This move is starting to push shares of ONVO within range of triggering a near-term breakout trade. That trade will hit if ONVO manages to take out some near-term overhead resistance levels at $6.20 to $6.39 with high volume.

  Traders should now look for long-biased trades in ONVO as long as it's trending above some near-term support levels at $5.50 or at $5 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.82 million shares. If that breakout triggers soon, then ONVO will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to its 52-week high at $8.50. Any high-volume move above $8.50 will then put its all-time high at $10.90 within range for shares of ONVO.

• [By Paul Ausick]

  Stocks on the Move: Sprint Corp. (NYSE: S) is up 8.2% at $7.95 even though the firm�� service was ranked last in new Consumer Reports survey. Voxeljet AG (NYSE: VJET) is down 13.8% at $33.82, the third day in a row the stock has been hit with double-digit losses. Organovo Holdings In. (NASDAQ: ONVO) is up 11.5% at $8.86 after getting beaten up in the 3D printing debacle yesterday.

• [By Roberto Pedone]

  Organovo (ONVO) is a three-dimensional biology company focused on delivering breakthrough bioprinting technology and creating tissue on demand for research and medical applications. This stock closed up 8.5% to $5.21 in Thursday's trading session.

  52-Week Range: $1.78-$8.50
  
  Thursday's Volume: 2.88 million
  
  Three-Month Average Volume: 1.78 million

  From a technical perspective, ONVO ripped higher here back above its 50-day moving average of $4.88 with heavy upside volume. This stock has been downtrending badly for the last month, with shares plunging lower from its high of $8.50 to its recent low of $4.43. During that downtrend, shares of ONVO have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ONVO might be ready to see its downside volatility stop and reverse its downtrend and enter a new uptrend. The probability for that reverse in trend is supported by the high volume on Thursday.

  Traders should now look for long-biased trades in ONVO as long as it's trending above its recent low at $4.33 and then once it sustains a move or close above $5.21 to $5.64 with volume that hits near or above 1.78 shares. If we get that move soon, then ONVO will set up to re-test or possibly take out its next major overhead resistance levels at $6.65 to $7.50.

• [By James E. Brumley]

  If you're looking for some trading action, then Organovo Holdings Inc. (NYSEMKT:ONVO) and Albemarle Corporation (NYSE:ALB) are the two top names to put on your radar today. Granted, they're trading candidates for completely opposing reasons. In fact, the best "play" may be to swap one for the other. However you want to play it though, here's what you need to know about ALB and ONVO.

Top Medical Stocks To Buy Right Now: Autoimmune Inc (AIMM)

AutoImmune Inc., incorporated in September 1988, is a healthcare company. The Company�� products are based on the principles of mucosal tolerance. The Company�� product is sold by Colloral LLC, the Company�� joint venture with Deseret, under the brand name Colloral, The Collagen Solution and Vital 3, and by Futurebiotics LLC under the brand name Vital 3. The other products which are in the development stage include MBP8298 (dirucotide), Oral Copaxone and AI 401.

The Company completed ten human clinical trials involving over 1,900 patients to investigate the use of Colloral as a pharmaceutical for treating symptoms of rheumatoid arthritis. The Company holds a joint venture with Deseret by forming Colloral LLC to manufacture market and sell Colloral as a dietary supplement. Colloral LLC holds a distributing agreement with Futurebiotics LLC for Colloral. Futurebiotics LLC markets the product under the brand name Vital 3. Colloral LLC also markets the product under the Vital 3 brand through The Shopping Channel of Canada via on air segments and their Website.

The Company�� other products in the development stage include MBP8298 (dirucotide) for multiple sclerosis, which is in Phase III trials for secondary progressive multiple sclerosis; Oral Copaxone is in the research stage for multiple sclerosis, and AI 401 is in Phase III trials for Type 1 diabetes. The development of MBP8298 (dirucotide) is conducted by BioMS Medical Corporation (BioMS). In August 2000, BioMS tested patients in a Phase II/III (MAESTRO-01) clinical trial of its MBP8298 treatment for secondary progressive multiple sclerosis. It was conducted at 47 sites across Canada and Europe. In November 2006, BioMS enrolled in a Phase II clinical trial (MINDSET-01) of MBP8298 for treatment of relapsing remitting multiple sclerosis. It enrolled 218 patients at 24 sites in six countries for a 15 month trial.

The Company collaborated with Eli Lilly, which supports clinical testing of orally administered a! utoimmune-mediated (Type 1) diabetes product, AI 401. Eli Lilly completed three different Phase II clinical trials to demonstrate human proof of principle for AI 401. The United States study was a one-year, double-blind, placebo-controlled trial with more than 200 patients, designed to measure immunological changes, preservation of pancreatic function and time to insulin dependence. Its second Phase II trial, involving approximately 150 patients, was conducted in France. The third trial was conducted in Italy with approximately 80 patients. In addition, Eli Lilly provided AI 401 for the Diabetes Prevention Trial (DPT-1) conducted by the National Institutes of Health (NIH). During the year ended December 31, 2008, the clinical trial of intranasal insulin to delay or prevent the clinical onset of Type I diabetes, called the Diabetes Prediction and Prevention Project was conducted in Finland. As of January 1, 2009, 115 had been enrolled in this trial.

Top Medical Stocks To Buy Right Now: Dyadic International Inc (DYAI)

Dyadic International, Inc. (Dyadic), incorporated in September 2002, is a holding company. The Company is a global biotechnology company. The Company has operations at the United States and the Netherlands. Dyadic uses its technologies to conduct research and development (R&D) and commercial activities for the discovery, development, manufacture and sale of enzymes and proteins for the bioenergy, industrial enzyme, and biopharmaceutical industries. The Company derives all of its revenues from the licensing of its technologies, the sale of its enzymes and conducting research and development (R&D) activities for third parties. The Company operates in two segments: the United States operations and The Netherlands operations. The United States segment includes a subsidiary in Poland.

The United States operating segment is a developer, manufacturer and distributor of enzyme products, proteins, peptides and other bio-molecules derived from genes and a collaborative licensor of enabling technologies for the development and manufacturing of biological products and use in R&D. The Netherlands operating segment is also a researcher and developer of enzyme products, proteins, peptides and other bio-molecules derived from genes and, to date, has mainly invested in R&D activities.

Dyadic�� R&D activities focus on its fungal strains and associated technologies. Dyadic uses its Trichoderma and C1 fungal strains in the production of its industrial enzymes. Dyadic manufactures and sells liquid and dry enzyme products to global customers for use within the animal feed, pulp and paper, starch and alcohol, food and brewing, textiles, and biofuels industries.

Dyadic also utilizes a technology platform based on its patented and C1 fungus (the C1 Platform Technology), which enables the development and manufacture of proteins and enzymes for diverse market opportunities. The C1 Platform Technology can also be used to screen for the discovery of novel genes and proteins. The C1 Platf! orm Technology also has the potential of developing and producing other biological products such as antibodies, vaccines, proteins and polypeptides for the biopharmaceutical industry.