Goldman Sachs Resumes Coverage on Discount Retailers (COST, TGT, WMT)

On Monday, Goldman Sachs announced that it has resumed coverage on several discount retail giants.

The firm resumed coverage of Costco Wholesale Corporation (COST) with a “Neutral” rating and a $124 price target. This price target suggests an 8% increase from the stock’s current price of $114.35.

Target Corporation (TGT) has been given a “Neutral” rating and $71 price target, which suggests an 11% upside from the stock’s current price of $63.29.

Analysts have put a “Buy” rating on Wal-Mart Stores, Inc. (WMT) with a price target of $83. This price target suggests a 12% rise from the stock’s current price of $72.99.

An analyst from the firm commented: “We approach this space with our eyes wide open about the notion of a price-transparent world and the inevitable ascent of ecommerce, with a preference for firms that offer customers value, execute with a lean cost structure, and are shielded from Amazon (Nasdaq: AMZN) growth.”

“We believe that Wal-Mart offers a solid foundation and a modest but durable growth profile that is undervalued by the market. We appreciate its value proposition and cost structure, and believe that its rural store base mitigates the threat from ecommerce incursions.”

Regarding Costco, he said, “We believe COST offers the best business model of the discounters, but resume coverage with a Neutral rating given our expectation that earnings growth will decelerate in the coming periods,’ added the analyst.

Costco shares were mostly flat during pre-market trading Monday. The stock is up 16% YTD.

Target shares were mostly flat during pre-market trading Monday. The stock is up 7% YTD.

Wal-Mart shares were up 36 cents, or 0.50%, during pre-market trading Monday. The stock is up 6% YTD.

The Bottom Line

Shares of Costco Wholesale Corporation (

5 reasons why you don’t feel wealthier

The definition of wealth is often found in the eye of the beholder. A new report from the Federal Reserve claims that American households are wealthier than ever, but many may find that hard to believe considering their own financial situations.

Net worth for households in the United States rose $1.3 trillion in the second quarter to $74.8 trillion, compared to $73.5 trillion in the first quarter. That is the highest level since the central bank started keeping records, and household net worth is nearly $7 trillion above its pre-recession peak of $68.1 trillion reached in the third quarter of 2007.

While the report is impressive on the surface, the gain in net worth for the first three months of the year was revised lower to $2.8 trillion from $3 trillion. Furthermore, a change in a definition added about $3 trillion to previously reported figures, as future benefits from pension plans are now considered to be an asset. Here's a look at five other reasons why many Americans may not feel any wealthier.

MORE: Do CEOs believe the U.S. economy will soon pick up steam?

1. Inflation

The effect of inflation is often ignored when net worth figures are discussed. However, the Federal Reserve Bank of St. Louis released a report earlier this year to address inflation adjustments.

Between the first quarter of 2009 and the fourth quarter of 2012, American households recovered about $15 trillion in wealth — almost all of the losses seen during the Great Recession. However, using the very modest inflation numbers provided by government data, the inflation-adjusted net worth of households only recaptured 56 percent of the losses.

The Federal Reserve Bank of St. Louis even goes on to calculate the net worth of households adjusted for inflation and population growth. The wealth of all American households is now shared by more families. Taking into account the additional 3.8 million new households formed over the past five years, Americans recaptured only 45 percent of their weal! th.

2. Stocks

The "economic recovery" is clearly skewed toward Americans who own stocks. In the latest report from the Federal Reserve, $300 billion of the $1.3 trillion gain in net worth came from corporate equities and mutual funds. However, many Americans are not invested in the market.

Gallup's annual Economy and Finance survey recently found that only 52 percent of Americans are either personally — or along with a spouse — invested in the stock market. That is the worst reading since Gallup began the survey in 1998, and 13 percent lower that the peak of 65 percent made in 2007.

3. Housing

In the second quarter, the value of residential real estate owned by households increased about $525 billion. Despite the housing market being one of the strongest pillars of the economy, millions of Americans still find themselves underwater or anchored to their current homes.

Across the nation, there are approximately 12.2 million homeowners who still owe more than their homes are currently worth, according to Zillow. The firm also finds that the effective negative equity rate — homeowners with less than 20 percent home equity — is at 41.9 percent. Meanwhile, roughly one in seven homeowners owe more than double what their home is worth, and home ownership is at its worst level in 18 years.

MORE: Fed: Get used to the bubble economy

4. Unemployment

The headline unemployment rate declined to 7.3 percent last month, its best level since December 2008. This is below the peak of 10 percent in 2009, but the rate has remained above 7 percent for 57 consecutive months.

Additionally, the U-6 unemployment rate, which includes everyone in the headline rate — plus people who are employed part-time but prefer a full-time position, or want work but have stopped looking — remains stubbornly high at 13.7 percent. In fact, the number of people employed part-time because of economic reasons is nearly 8 million.

5. Psychological

Time has not been ab! le to ful! ly heal the chaotic memories of the financial meltdown, which began in September 2008 with the collapse of Lehman Brothers, once the nation's fourth-largest investment bank. According to the latest Wells Fargo/Gallup Investor and Retirement Optimism survey, 41 percent of investors are "extremely" or "very worried" about a repeat of Lehman Brothers in their retirement years.

According to the survey, 69 percent of investors said this year's rapid stock market increase does not make them any "less fearful about sustained losses" if another Lehman-type event occurred. Furthermore, 59 percent of retired and 51 percent of non-retired investors claimed they haven't seen a "noticeable increase" in their retirement account values as a result of the market rebound.

MORE: Who does the government really work for?

Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

S&P 500 Extends Winning Streak to Six Days; Dow Makes the Most of Big Changes

So much for a scary September.

Agence France-Presse/Getty Images

Markets rallied again today, and if a downer of a month is destiny, we’ll have to wait a wee bit longer. The S&P 500 gained 0.7% to 1,683.99 today, while the Dow Jones Industrial Average rose 0.9% to 15,191.06 on a day when big changes were announced for the index.

Today’s rally continued a trend that has belied September’s bad reputation. Consider: Six trading days into the month–and nearly a third of the way through–the S&P 500 has gained 3.1%, and has yet to finish in the red. That’s it’s longest winning streak since July. The Dow Jones Industrial Average, meanwhile, rose fifth time this month, only interrupted by Friday’s 0.1% decline. It’s now up 2.6% so far this month.

Yes, investors are finally feeling some love for risky assets, as the big risks appear to be subsiding. A hard landing in China? Not yet. A U.S. attack on Syria? How about we give peace a chance? Even the beginning of the end for the Fed’s bond buying might not be such a worry if much of the potential damage is already priced in.

Or maybe not. I spoke with Barclays’ Barry Knapp today and he believes September could get a whole lot tougher. That’s because when the Federal Reserve begins tightening monetary policy–and yes, the end of QE qualifies–the market almost always falls, usually about 7% to 9%. “The market will turn more negative next week as it becomes clear the Fed will start to taper,” Knapp says. “I don’t think September is over.”

And even if that correction doesn’t occur this month, recent history suggest that the big September gains–or losses–in the S&P 500 come early in the month. According to my own admittedly shaky math, the S&P 500 gained 1.9% during the first six days of September in 2012, only to rise 2.6% for the entire month. In 2011, the benchmark fell 5.3% during the first six days of the month and finished down 7%. And in 2010, the S&P 500 gained 5.2% during the first six-trading days and closed September up 9%, a big gain, yes, but more than half the return was earned during the first third of the month.

Who’s feeling like a little risk taking?

Not investors in Restoration Hardware (RH). Its shares have dropped 2% in after-hours trading after it reported a profit of 49 cents a share, above forecasts for 43 cents, but offered mixed guidance. Oxford Industries (OXM) is off 7.3% at $60 after it announced a profit of $1.01, ahead of 98 cents consensus forecasts, but lowered its 2013 guidance. Shares of SunEdison (SUNE) have dropped 5.4% to $7.90 after it announced a secondary offering.

But it hasn’t been all bad news. Lannett (LCI) has gained 1.9% to $16.00 after it reported a profit of 12 cents, above the 7 cents forecast by analysts. And shares of Krispy Kreme (KKD) are unchanged after the company said it would earn 59 cents to 63 cents in the slides for a presentation tomorrow. Considering what happened the last time Krispy Kreme opened its mouth, that has to be considered good news.

Hot Value Stocks To Buy For 2014

The following video is from Friday's installment of the Motley Fool's Weekly Tech Review, in which host Chris Hill and analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.

Reports last week out of Spain indicated that AT&T (NYSE: T  ) �was looking at making an offer to�Telefonica (NYSE: TEF  ) �valued at $93 billion. According to Spanish newspaper El Mundo,�the sale didn't proceed in part because of governmental concerns over having a foreign company buy the country's most valuable telecom player. Yet even if AT&T and Telefonica aren't met to be, there is ample evidence that America's dominant mobile companies have begun looking abroad for growth.

Looking at�Verizon (NYSE: VZ  ) the company has long been trying to figure out what to do about its "Vodafone (NASDAQ: VOD  ) �problem." That company owns 45% of Verizon Wireless, and there have even been talks of Verizon buying Vodafone outright in the world's largest leveraged buyout. Such a move would suddenly turn Verizon into a massive global telecom giant.

Hot Value Stocks To Buy For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Paul Ausick]

  Dollar General�� share price is up less than 6% in the past 12 months, but since the beginning of the year shares have risen more than 22%. And even then, Dollar General�trails Dollar Tree Inc. (NASDAQ: DLTR) in share price growth since January 1. Dollar Tree stock is up 30%.

• [By Lawrence Meyers]

  As a convenience store, it doesn’t have direct competition from�Dollar Tree (DLTR) or Family Dollar (FDO) because these dollar stores aren�� exclusively focused on food (and they have no gasoline or cigarette sales), and they��e targeted at the folks who are trying to save money over convenience, not vice versa. The convenience angle is another reason why�Walmart (WMT) and Costco (COST)�aren’t competitors, since those behemoths are about a total shopping experience.

• [By Lawrence Meyers]

  The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.

• [By Rising Dividend Investing]

  Falling Stock Correlation: What It Says About Consumer Spending

  As we mentioned in the Take Aways from the August 26th Investment Policy Committee meeting, the correlation index has been steadily declining. In 2008-09, macroeconomic events drove nearly every stock downwards. Specific sectors and stocks moved in tandem with one another. Today, stocks and sub-industries within each sector are performing very differently – which indicates a return to a more normal stock market environment.
  The Consumer Discretionary (also known as Consumer Cyclicals) sector is an example of an industry that has been rewarded for its fundamental success over the past 12 months. As a whole, the sector grew sales 6.1% and earnings 9.2% in the second quarter - much better than the 1.4% sales and 3.3% earnings growth of the S&P 500. While the overall sector did well in the second quarter, the table below shows how differently the 5 sub-categories of Consumer Discretionary performed:
  
  (click to enlarge)
  As we drill down even further, sub-categories of sub-sectors differ even more dramatically. Below is a snapshot of the Retailing sub-sector and its notable components:
  
  (click to enlarge)
  Specific stocks within each sub-category are varying in performance as well. General Merchandise retailers were significantly differentiated in the second quarter. Target’s (TGT) adjusted EPS were up 6.1% from 2012, while Dollar General (DG) and Dollar Tree’s (DLTR) earnings were up nearly 12% and 9%, respectively.
  The differences in sales and earnings growth amongst these different industries tell a story. The economy is not improving enough that people feel like they can let go and spend money on pure pleasures, but it is improving enough that they can afford to replace their cars and fix the doors on their houses. As these items wear out and need to be replaced, we expect the pent up demand will drive increased economic activity from cons

Hot Value Stocks To Buy For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Ben Levisohn]

  For one day at least, this CAT is not a dog.

  Caterpillar (CAT) has gained 2% to $86.22 today, its largest gain since in a month and the largest gain among the Dow components. The machinery manufacturer has dropped 11% during the past six months, however, as a slowdown in China and cost-cutting at mining companies have hit its shares.

  Bloomberg

  Susquehanna’s Ted Grace offers reasons for optimism, even as he lowers his 12-month price target to $97 from $104:

  CAT remains Positive rated with 15% upside to our $97 price target and upside-downside of 1.2-to-1 (which, like most of our machinery names, is admittedly shy of the 2-to-1 or better ratio we prefer). Despite our 2014-15 EPS being ~6% below consensus, we view our updated estimates as closer to buyside expectations while noting that consensus appears to embed a low tax rate that explains over half of the variance. While there remains plenty of uncertainty on 2014/15, particularly in mining, we believe CAT shares currently discount reasonable top-line expectations while recent meetings with mgmt suggest potential for structural cost savings that could drive better than expected margins/ incrementals. While difficult to identify discernible catalysts, if CAT’s framework for flat-to-better RI revenue growth in 2014 proves correct (admittedly not assumed in our estimates), this would almost certainly debunk the core of the bear thesis and be meaningfully positive for shares.

  Investors waiting for the stock to actually, you know, rise can take comfort in Caterpillar’s $2.40 dividend per share and its more than $3 per share in buybacks in 2013, Grace says.

  Caterpillar’s 2% gain has trumped the Dow Jones Industrial Average’s 0.04% rise, and United Technology’s (UTX) 0.1% drop, while competitor Deere (DE) has gained 1.9% to $83.22.

Top 5 Clean Energy Companies To Watch For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By John Udovich]

  Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

• [By Oliver Pursche]

  European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

Hot Value Stocks To Buy For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Dr. Kent Moors]

  That's why some of the biggest OFS providers - like Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL) and Weatherford International (NYSE: WFT) - have been buying up oil and gas equipment companies.

• [By Lee Jackson]

  Schlumberger Ltd. (NYSE: SLB) revenue grew 8% year-over-year to $11.18 billion in the second quarter of 2013, fueled by high growth in its international segment. While the company does generate 11% of revenue in the Middle East and Asia, only a prolonged Syrian conflict is expected to dent their strong results. UBS has a $98 price target and the consensus figure is at $96. Stockholders are paid a 1.5% dividend.

• [By Jonas Elmerraji]

  2013 has been a stellar year for shares of oil service giant Schlumberger (SLB). Since the calendar flipped over to January, SLB has rallied more than 25%, beating the broad market's impressive pace by double digits. As oil prices linger on the high end of their historic range, SLB is well positioned to keep ticking higher.

  Schlumberger provides must-have services to national and supermajor oil firms as well as smaller E&Ps, offering up niche services like seismic surveys and well drilling and positioning. In a nutshell, SLB's job is to pull oil out of the ground as efficiently as possible. Oil firms turn to Schlumberger because the tasks they need to accomplish are too nuanced or proprietary to pull off in-house. So as long as the company continues to pour cash into R&D for drilling technology and software, the firm should continue to score lucrative contracts.

  Some of Schlumberger's most attractive opportunities right now come from overseas. The firm is one of the largest oil servicers in Russia, a key growth market in the years ahead. It's also got an important presence in smaller oil markets, where it's a big fish in a small pond. A big scale and stellar reputation should guarantee Schlumberger an attractive piece of the oil pie for years to come.

Time to Go Against the Grain With Dendreon (DNDN)

There's no doubt about it - the "in" thing to do with Dendreon Corporation (NASDAQ:DNDN) lately has been to bash it. The company's one and only drug, Provenge, failed to meet its sales estimates last quarter. And worse, DNDN was forced to announce 2013's top line wouldn't be as strong as first expected. Between that lowered guidance and growing fears that Provenge may not be nearly as marketable as first assumed, the stock plunged 26% on Friday, and has since widened that loss to 30%.

Oh yeah... the media now hates the stock and the company too, judging from the skewering its handed over to Dendreon in the meantime. Time to buy.

Yes, you read that right - it's time to buy DNDN, even though it feels like you're trying to catch a falling knife by doing so. Undoubtedly you're looking for some sort of explanation. Here it is. Though sales of prostate cancer drug Provenge are already starting to wane after its 2010 launch, they're not in as much jeopardy as the recent action may suggest.

For perspective, the company generated $325.3 million in sales in 2012, almost all of which was driven by Provenge. Though Dendreon has only said it will not be able to post as big of a number for this year, some analysts foresee $314 million in revenue for this year. The loss could end up being bigger than the revenue total in 2013, and given how the company has burned about 1/3 of its cash over the past four quarters - leaving behind a mere $280 million - it's possible liquidity could become a problem around this time in 2014.

So what's the upside with DNDN in that? Because that worst-case scenario (and then some) may well already be baked into the stock's price.

Even with all of its problems, Dendreon's Provenge still has a couple of things going for it.

One of them is the fact that there's still no dedicated prostate cancer drug (built from the ground up to treat the condition) other than Provenge. Others are used to fight it, and new options are in the pipeline, but Provenge is the only one that is first and foremost a prostate cancer therapy. That may boost sales again in the future. [Sales could have surged through 2012 simply because it was new and patients were excited to request it. Though the euphoria phase has died, the functional phase is still getting started.]

The other idea in support of Provenge's positive future is that, despite what's near a six-figure price tag, Dendreon Corporation has managed to convince Medicare and most insurers to reimburse caregivers for the treatment. That's huge.

And, with a market cap of around $500 million, the projected Provenge sales are "about right." The marketwide average price/sales ratio is 2.4, while Dendreon's is around 2.0 (though it seems to change quite a bit).

Yes, there are pitfalls still lingering out there, and DNDN may well be one of the most hated names in the world right now. That's often when bottoms are made... when there's nobody left to bet against it. The worst-case scenario is fully factored into the stock's price. From here, things can only get better. Dendreon's ace in the hole is the fact that it's still got a small but compelling pipeline. 

Would you like to get more trading ideas and insights like this one every day? Then become a subscriber to the free daily SmallCap Network newsletter. You'll get picks, market calls, and more.

10 Best Gold Stocks For 2014

The decision to lease solar panels to both the business and residential sectors has really paid off so far for SolarCity (NASDAQ: SCTY  ) . Market-conscious investors have had to notice the atmospheric rise of the company's stock over the past several months. With fresh, financial backing from Goldman Sachs (NYSE: GS  ) , the company is set to provide a wider customer base with its free installations, and fees below typical utility bills.�

Now that deals are being signed with municipalities, as well, SolarCity is sure to continue impressing Mr. Market. The disruptive leasing model has also caught the eye of competitor, SunPower (NASDAQ: SPWR  ) , but it is getting to the party a bit later than the Elon Musk-inspired SolarCity. Only time will tell if it's fashionably late or detrimentally late.

10 Best Gold Stocks For 2014: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Michael Blair]

  IAMGOLD (IAG) is one of my favorite gold stocks principally because it is a relatively high cost producer with long lived mines. That paradox arises since high cost producers have the most volatility when gold prices change. If they are operating close to break even, a relatively small rise in gold prices makes them quite profitable. Conversely, when prices fall they bleed all over the floor.

10 Best Gold Stocks For 2014: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Best Low Price Companies To Watch In Right Now: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

10 Best Gold Stocks For 2014: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:

• [By Sally Jones]

  Anglogold Ashanti Limited (AU)

  Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10.

• [By Profit Confidential]

  Graham Ehm, Executive Vice President of South African-based AngloGold Ashanti Limited (NYSE: AU), one of the biggest gold producers in the global economy, stated the company is looking to save $500 million over the next 18 months, as capital expenditures will only be going towards their highest-quality assets. (Source: Mining Weekly, August 5, 2013.)

10 Best Gold Stocks For 2014: Thompson Creek Metals Company Inc.(TC)

Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.

10 Best Gold Stocks For 2014: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

10 Best Gold Stocks For 2014: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

10 Best Gold Stocks For 2014: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

10 Best Gold Stocks For 2014: Claude Resources Inc.(CGR)

Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.

10 Best Gold Stocks For 2014: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Will Twitter Sell Its Soul Like Facebook Did? (Update 1)

Updated from 7:44 p.m. 9/12/2013 with an embedded video of the author's Friday morning appearance on CNBC.

NEW YORK (TheStreet) -- Three things I have to say on news that Twitter will go public.

First, I am on record as the first person known to man to suggest "TWIT" as the ticker symbol for Twitter as a publicly-traded entity. It's timestamped in a November 7, 2012 article where I suggested Facebook (FB) and Twitter should consider a merger or, at the very least, an advertising partnership.

Just remember where you heard that bit of sheer brilliance first. Second, while I love Twitter, I'm concerned. There's no question the company's investors and employees should be able to cash in on an IPO. It has become the American way, at least in certain parts of the world, particularly Silicon Valley. It's the new American dream. And it's most likely here to stay. It's not a runaway American dream. That said, I want to see Twitter become whatever Twitter can become unabated by the pesky requirements of Wall Street investors. Because, there's no question -- Twitter, simply by making the choice to go public, will wind up something other than it would have been had it stayed private. From a product and user experience standpoint, that might not be a good thing. To a certain extent, companies such as Facebook and Pandora (P) sold their souls to Wall Street shortly after going public. As I explain in the above-linked article, both companies, for better or worse, abandoned their social missions for the sake of revenue and the quest for profit. It depends on who you talk to, but more than a few people -- as they continue to use Facebook and Pandora obsessively -- will tell you that increased advertising and such has hurt the user experience. And I would argue it has taken away from Facebook's mission to connect the world and Pandora's pledge to be a champion for indie artists. Priorities get out of whack. That's just how it goes. There's really no avoiding it. Third, keep an eye on the mobile advertising space. Right now the major players are Google (GOOG), Facebook, Twitter and Pandora. These four collect a vast majority of these fast-growing dollars. And they'll all likely continue to be in the top ten, if not top five. However, others will come to play. As Apple (AAPL) debuts iTunes Radio, it will ramp up its iAd Network, making it more of a mobile advertising force. And don't count out big media. Names such as CNN and CNBC -- two that I follow closely -- are doing incredible things digitally. Their parent companies (Time Warner (TWX) and Comcast (CMCSA) respectively) have deep pockets. And they're not sitting on their hands. Time Warner and Comcast will make the digital/mobile push beyond obvious choices such as CNN and CNBC. They'll do it across their entities. And other big media will follow. These conglomerates can sell attractive packages that combine mobile, digital and traditional television advertising. Without a partnership or new and dynamic platform, Facebook, Twitter, Apple and Google (though don't forget YouTube) cannot do this. Here's my appearance on CNBC's Squawk Box from Friday morning talking Twitter IPO with the Squawk crew and Mike Isaac of All Things D: Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.

The Deal: Dell LBO Debt Deal Signals IPO Option

NEW YORK (The Deal) After his long-fought battle with Carl Icahn, one might think Michael Dell would rest on his laurels and keep Dell (DELL) the private, nimble startup he is promising the world. However, buried in the financing details for the nearly $25 billion leveraged buyout, backed by Silver Lake, is a hint that options are being kept open for a return trip to the public markets.

The roadshow for Dell's $3.25 billion bond offering backing its buyout is kicking off this week. The offering includes $2 billion of first-lien seven-year senior notes and $1.25 billion of second-lien eight-year senior notes.

Both tranches have three years of call protection, but the second-lien notes have a clawback that would allow 50% of the notes to be called at par plus half the coupon in case of an initial public offering.

"It's a little unusual because they've just gone private," said Richard Farley, a leveraged finance partner at Paul Hastings LLC.

What the clawback does for Dell is that it will allow it to pay off some of the more expensive second-lien debt if it should decide to go public during the second year following the financing, something that would be appealing to investors reading the company's S-1 filing.

And 50% is high for this type of provision. Most equity clawbacks are set between 30% and 40%, another indication that Michael Dell and Silver Lake are considering the capital structure of the company from all strategic angles.

Argus Research Co. analyst Jim Kelleher said taking Dell private to sort out its financial situation was a good strategy but, at a minimum, this company would need three to five years to even think about going public again. That said, Kelleher did not remember seeing an IPO clawback in other buyout situations recently.

"I don't recall that same sort of detail in some other takeouts," Kelleher said. "But this LBO is so large that it's hard to come up with comparisons."

There is the example of the take-private of Hertz Global Holdings Inc. in December 2005 for $15.6 billion by a private equity group led by Clayton, Dubilier & Rice LLC. The buyout consortium took the company public eleven months later.

The major difference between the Hertz and Dell situations, however, was that the car rental chain was doing well when it went public again. Revenue was up 8%, and EBITDA was up 9% following the buyout.

Dell on the other hand, is facing a worldwide secular decline of its signature product: the personal computer. PC sales suffered their steepest decline ever in the first quarter of this year, plummeting 14% according to a survey from International Data Corp.

Dell's EBITDA dropped 22.6% for the fiscal year ending in February 2013 from 2012, according to Bloomberg data. The market had priced the company at under $9 per share in late 2012 before buyout talk began to circulate and the company ended up being sold for $13.75 per share.

"For them to go back public so quickly would be an amazing turnaround," Farley said. "Can these guys really revamp Dell and execute on the business plan that currently contemplates them being private for an extended period of time so fast they'd be filing for an IPO within 18 months? That would be amazing - I'd say the likelihood of that happening seems low."

What to look for if Dell were planning to go public again quickly are signs that its credit was doing well so that company would be looking to put capital to work, Farley said. In that case, paying down the expensive debt would make sense. "It's a better use of proceeds than a dividend or a sale of equity," he said.

In a tweet following the shareholder vote that will allow him to take his eponymous company private Michael Dell wrote, "Welcome to the world's largest startup!"

And startups, as the world knows from the latest crop of tech companies, like nothing better than to go public. Just look at companies like Google Inc., Facebook Inc. and the soon to be public Twitter Inc. - the very same companies that put the Dells of the world where they are today.

Dell did not return a call seeking comment on the financing terms.

Credit Suisse Group is leading the notes offering. Joint bookrunners include Barclays plc, Bank of America Merrill Lynch, RBC Capital Markets LLC and UBS. Dell is also arranging a $5.5 billion loan package to finance the buyout.

Written by Jonathan Schwarzberg

JPMorgan fined $920 million in 'London Whale' trading loss

JPMorgan Chairman and CEO Jamie Dimon has kept both his jobs, despite the controversy.

NEW YORK (CNNMoney) JPMorgan Chase agreed Thursday to pay about $920 million fines to U.S. and U.K. regulators to settle charges related to the "London Whale" trading debacle.

With the penalty, the bank is acknowledging that it violated banking rules by not properly overseeing its trading operations. In legal language, regulators said that the bank and engaged in "unsafe and unsound practices."

As a result of those inadequate risk controls, a team of traders made a complex derivatives bet last year that ultimately generated about $6 billion in losses. The trader thought to be responsible for the bet was nicknamed the "London Whale" due to his team's massive trading position, and the fact that he was based in London.

The fine money will be split among regulators, with $300 million going to the Office of the Comptroller of the Currency, $200 million going to the Securities and Exchange Commission, $200 million to the Federal Reserve and $220 million to the U.K. Financial Conduct Authority.

The charges JP Morgan settled were civil, not criminal, and none of its current officers were penalized by the authorities. The bank said it has changed its practices to make sure this kind of loss can not be repeated.

"We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them," said JPMorgan Chase Chairman and CEO Jamie Dimon.

The fine is modest one for the bank, which is the nation's largest with $2.4 trillion in assets. It earned net income of $13 billion in the first half of this year alone on revenue of $51.8 billion. And shares of JPMorgan Chas (JPM, Fortune 500)were down about 1% in early trading Thursday after the fine was announced.

B! ut the trading loss has been a black eye to the reputation of JPMorgan Chase, which had weathered the financial crisis five years ago better than many of the nation's other major banks.

When he revealed the loss in May 2012, Dimon admitted that the bank had been "stupid." Still, Dimon kept both his jobs despite a shareholder effort to separate the positions following the loss. However, his bonus was slashed in the wake of the trading loss, and Ina Drew, the firm's chief investment officer, left the bank.

JPMorgan has previously said it has recordings, e-mails and other documents that suggest its traders may have been hiding the losses as they ballooned.

But in March, the Senate's Permanent Subcommittee on Investigations said its probe of the loss revealed that JPMorgan "disregarded multiple internal indicators of increasing risk; manipulated models; dodged [federal] oversight; and misinformed investors, regulators and the public about the nature of its risky derivatives trading."

Two former employees from the team that made the bets were charged in U.S. District Court in New York last month with conspiring to conceal losses on the trade. One was arrested in Spain, the other is living in France, which generally does not extradite defendants charged with these kinds of crimes. A third trader has avoided prosecution by cooperating with authorities.

Glowing With Profits

Investors may still have the urge to get into small cap stocks, because they are leading the market in 2013. While the run to all-time highs by the Dow Jones Industrial Average and the S&P 500 have dominated the headlines, the small-cap Russell 2000 has them both beat.

Year to date, the Russell 2000 small cap index is up 20.75 percent, compared to 17 percent for the S&P 500 and only 16 percent for the Dow Industrials.

Investors eager to move into small caps at this stage should look at those with improving sales and earnings that are still trading at a reasonable valuation. One choice is specialty diamond and jewelry retailer Zale Corp (NYSE: ZLC). The company achieved earnings growth of 59 percent last quarter and is projected to grow 45 percent in the next year.

Zale Corp reported in the second quarter its highest annual net income in six years. Net earnings were $10 million, or $0.24 per share, compared to a net loss of $27 million, or $0.85 per share, in fiscal year 2012. Zales has continued to increase revenue in recent quarters as its efforts to raise prices, improve core inventory and roll out new branded products appear to have helped lift same-store sales.

For the quarter ended July 31, overall same-store sales rose 5.6 percent, slower than the 8.3 percent rise logged in the year-earlier quarter. Same-store sales at Zales branded stores climbed 8.1 percent, while those at Peoples branded stores were up 5.6 percent, or 7 percent at constant exchange rates.

Same-store sales for U.S. fine-jewelry brands increased 7.2 percent. Canadian Fine Jewelry brands, consisting of Peoples Jewellers and Mappins Jewellers, reported a same-store sales increase of 3.3 percent, or 4.7 percent in constant currency. Kiosk jewelry same-stores sales edged up 0.3 percent.

For fiscal year ended 2013, Revenues were $1.89 billion compared to $1.87 billion in fiscal year 2012. For fiscal year 2! 013, comparable store sales increased 3.3 percent. This increase follows a 6.9 percent rise in fiscal year 2012. At constant exchange rates, comparable store sales increased 3.1 percent.

Zales branded stores, consisting of Zales Jewelers and Zales Outlet, posted a comparable store sales increase of 4.7 percent. This increase follows a 10.8 percent rise in the prior year.

Zales is benefiting from their store technology enablement program that was kicked off during fiscal 2013. This technology modernization will provide the backbone for stores to leverage the tools and capabilities to improve inventory control, increase customer experience and sales.  Zales is currently completing phase 1 of the program.

By mid-September, over 300 of their stores will utilize a new POS system, both hardware and software; high-speed broadband; and Wi-Fi capability connected to a state-of-the-art secured network. The remainder of stores will be similarly enabled during 2014.

Following this, Zales will aggressively roll out tablets to stores and enable jewelry consultants to participate in the benefits of omnichannel commerce.

The market has rewarded Zales with an astounding 230 percent increase in 2013. While the stock’s price-to-earnings (P/E) ratio is high because the price is ahead of profits, the stock has a price-to-sales ratio of only 0.25. The stock trades at 2.2 times its current book value, which is reasonable for a high growth small cap stock.

Zales is projected to grow earnings by 45 percent in the next year. This will be accomplished with increasing sales and higher pricing as the consumer increases spending on specialty jewelry in an improving economy.

First Call consensus has a strong buy rating on the stock. Zale Corp has a 12-month price target of $17.50.

Greg Pugh, an income-investing expert, publishes a newsletter called Investing for Monthly Income.

Technical Forecast for GBP/USD

 

GBPUSD topped at 1.5963 & fell back to support at 1.5895/85 which has held the downside as expected so far at least. However the outlook is quite negative so a break lower today should target trend line support at 1.5865. A bounce from here is possible but longs need stops below 1.5850 for the next support at 1.5835/30. Exit shorts here & try longs with stops below 1.5815.

 

Above 1.5900 is less negative & could allow a move towards 1.5922/27 & possibly a retest of 1.5960/65. Exit longs & try shorts up to 1.6010, looking for a medium sell off on profit taking but we need stops above 1.6050.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Don't Let Uncle Sam Do To You What It Did to Tony Soprano

We were all shocked by the sudden, untimely death of James Gandolfini. Gandolfini was an immensely gifted actor who changed the face of television entertainment in the role of Anthony "Tony" Soprano, a deeply troubled gangster-in-therapy, who had to balance obligations to his family... and his Family.

By all accounts, James Gandolfini was generous and kind to family and friends alike. It has been reported that he left a large legacy, in excess of $70 million, to be divided between them. His net worth is an estimate, and his asset inventory hasn't yet been disclosed, but he did alright for a middle class kid from North Jersey.

Sadly, however, his nearest and dearest won't see anywhere near the full amount he left behind.

It turns out that James Gandolfini was generous - to a fault. His wish was that his legacy, in the form of real estate and other assets in the United States and Italy, be distributed in large chunks, the largest in a trust for his 13-year old son, Michael and 8-month old daughter, Liliana. His widow, Deborah Lin, is set to receive 20% of his estate. The will stipulates that the shares to be doled out after taxes.

But tax attorney William Zabel called the will a "tax nightmare," and estimated that some 80% of the Gandolfini's estate is liable for the death tax of around 45%. The tax man cometh and right soon; the bill comes due in 9 months.

Where Did He Go Wrong?

It's these particularly large portions that leave Gandolfini's legacy vulnerable to the tax collectors. The tax man gains entry through the large portions given directly to fewer people.

Even worse, since Gandolfini probably didn't have $30 or $40 million in cash lying around, his family will have to hustle - at the worst possible time - to liquidate what's been left to them. In some cases, they'll have to settle for less than the full value of an asset as a fire-sale atmosphere takes hold.

Had the actor gone a more roundabout, but safer way, his heirs might get to hang on to more of his legacy. For instance, he might have left all of his estate to his surviving wife, making an end run around the inheritance tax. So long as the spouse is an American citizen, direct bequests to that spouse are tax deferred for as long as the spouse survives.

The Gift of Breathing Room

This would have given Gandolfini's wife time to sit down with the lawyers and establish a network of tax-advantaged trusts to divide the estate on her passing. A grantor-retained annuity trust, for instance, allows assets to be transferred into it for the life of the trust. The beneficiaries receive annual payments, and appreciation is tax-free for those beneficiaries.

Another way would have been to provide a life insurance policy payable for the entire amount of the estate's tax liability. While he was still with us, James Gandolfini might have calculated the entire value of his estate, worked out the tax on it, and then taken out a life insurance policy that would cover the tax bill.

Life insurance payouts aren't subject to inheritance taxes. That would have given his heirs a worry-free, no strings attached lump sum to pay off and then be rid of the IRS.

Gandolfini might have left money to his heirs while he was still alive in the form of gifts. Gifts above $13,000 are subject to taxes, but then again, there are tax credits available that permit up to $1 million of gifts in a lifetime

It's also possible to attach stipulations to gifts that make them tax-advantaged. For instance, gifts for higher education and medical expenses aren't liable to tax.

In Estate Planning, Anything Goes

When planning an estate, when attempting to give it all possible tax advantages, a no-holds-barred, no-stone-unturned strategy is called for. It's wise to take advantage of all the different ways available - no matter how complicated or unorthodox - to protect your heirs' legacy.

You can't cheat death, and you shouldn't cheat on your taxes, but you don't have to lie down for either of them.

All Part of "The War on Success"

James Gandolfini's post-mortem financial woes illustrate a tricky problem in this country. Gandolfini made his money himself, through his own hard work and with his considerable acting talents.

But, because he wasn't devious and clever with his earnings, a goodly portion of them will end up in government coffers, rather than remaining with his numerous chosen heirs - his family and friends.

On the one hand, it's fair to pay your taxes. Fair tax rates are not impossible to achieve.

But is it fair for the government to tax the dead? After a lifetime of hard work? Is it fair that you have to be devious and clever to protect your legacy?

These are legitimate questions that have to be a part of any debate over fair taxes. But anything that comes from that debate is likely to be of little comfort to James Gandolfini's friends and family when the tax man comes knocking.

What do you think of the #deathtax? Sound off on Twitter or drop us a line on Facebook.

Death Tax - 07232013 Is there any such thing as a fair tax? Yes, I think so. We should all pay at least something. No way! We should get to keep everything we make.
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Tuesday Closing Bell: Markets Sink on Syria Worries

Source: thinkstockAugust 27, 2013: U.S. markets opened lower Tuesday morning with worries over possible U.S. actions in Syria weighing prices down all day. The S&P Case-Shiller house price index was strong again in June, but homebuilders' stocks and home improvement shares followed stocks lower. The July consumer confidence index from the Conference Board came in higher than expected as short-term expectations rose. Germany's Ifo business climate index posted a two-year high this morning as well.

European and Latin American markets closed lower today, while Asian markets closed mixed.

Wednesday's calendar includes the following data releases and events:

7:00 a.m. – Mortgage Bankers Association purchase applications 10:00 a.m. – National Association of Realtors pending home sales 10:30 a.m. – EIA weekly petroleum status report 1:00 p.m. – 5-year note auction

We also broke out the top Wall Street calls with analyst upgrades and analyst downgrades.

Here are the closing bell levels for Tuesday:

S&P500 1,630.48 (-26.30 -1.59%) DJIA 14,776.13 (-170.33; -1.14%) NASDAQ 3,578.52 (-79.05; -2.16%) 10YR TNOTE 2.716% (+0.625%) Gold $1,415.30 (+22.30; +1.59%) Euro/Dollar: 1.3371 (+0.0020; +0.14%)

Big earnings movers: Tiffany & Co. (NYSE: TIF) reported better-than-expected earnings and revenues and raised its guidance slightly, but even posting a new 52-week high early could hold the stock from dropping about 1.3% today. Brown Shoe Co. Inc. (NYSE: BWS) also posted good earnings, but followed with slightly lower EPS guidance and the stock lost about 9%, trading around $21.60 in a 52-week range of $13.68 to $24.78. Another footwear maker, DSW Inc. (NYSE: DSW) put up good results and raised its guidance as well, sending shares up more than 9% to a new 52-week high of $88.73 in the mid-morning.

Stocks on the move: Catalyst Pharmaceutical Partners Inc. (NASDAQ: CPRX) is up about 40% at $1.98 after its firdapse drug treatment for certain kinds of muscle weakness was designated a breakthrough therapy by the FDA. Food maker Dean Foods Inc. (NYSE: DF) held a 1-for-2 reverse stock split this morning and the shares are up about 95%, as might be expected.

In all, 13 stocks put up new 52-week highs today, while 77 stocks posted new lows.

5 Best Warren Buffett Stocks To Buy Right Now

In the following video, Motley Fool contributor John Reeves tells investors why he's not buying shares of Bank of America (NYSE: BAC  ) today. John discusses several shady practices the bank's former employees have accused it of, including using the Home Affordable Modification Program, or HAMP, as a tool to get as much money out of borrowers as possible before foreclosing. John frames this as a bank putting shareholder interests ahead of customer interests, something he would never touch as an investor.

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable standout. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's�new report. It's free, so click here to access it now.

5 Best Warren Buffett Stocks To Buy Right Now: Wintrust Financial Corporation(WTFC)

Wintrust Financial Corporation, through its subsidiaries, engages in community banking, specialty finance, and wealth management operations. Its Community Banking segment offers banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional customers. This segment?s products and services include deposit products, such as demand, negotiable order of withdrawal, money market, savings, and time deposit accounts; home equity, home mortgage, consumer, real estate, and commercial loans; safe deposit facilities; automated teller machines (ATMs); and Internet banking services. The company?s Specialty Finance segment offers financing for the payment of commercial insurance premiums to businesses and individuals; short-term accounts receivable financing; and out-sourced administrative services, including data processing of payrolls, billing, and cash management services to customers in the temporary staffing indu stry, as well as engages in the origination and purchase of residential mortgages for sale into the secondary market and provides the document preparation and other loan closing services to a network of mortgage brokers. This segment markets its products primarily through insurance agents and brokers. Its Wealth Management segment provides trust and investment services, asset management, and securities brokerage services, which are marketed primarily under the Wayne Hummer name. As of December 31, 2009, the company operated through 78 banking facilities, as well as owned 123 ATMs. Wintrust Financial Corporation was founded in 1992 and is based in Lake Forest, Illinois.

5 Best Warren Buffett Stocks To Buy Right Now: Stikine Gold Corporation(SKY.V)

Stikine Energy Corp. engages in the acquisition, exploration, and development of resource properties in Canada. It focuses on the production of frac sand from silica sources in north eastern British Columbia. Frac sand is a component used in the development of the gas plays in the Horn River Basin, the Liard Basin, and the Montney Basin. The company was formerly known as Stikine Gold Corporation and changed its name to Stikine Energy Corp. in August 2010. Stikine Energy Corp. was incorporated in 2000 and is based in Vancouver, Canada.

Top Canadian Stocks To Own For 2014: Vodafone Group PLC (VOD)

Vodafone Group Plc (Vodafone), incorporated in 1984, is a mobile communications company operating across the globe providing a range of communications services. The Company offers a range of products and services, including voice, messaging, data and fixed-line solutions and devices to assist customers in meeting their total communications needs. Vodafone has a global presence, with equity interests in over 30 countries and over 40 partner markets worldwide. It operates in three geographic regions: Europe, Africa and Central Europe; Asia Pacific, and the Middle East, and has an investment in Verizon Wireless in the United States. In October 2010, Vodafone Global Enterprise, the business within Vodafone, announced the acquisition of two telecom expense management (TEM) companies, Quickcomm and TnT Expense Management. In November 2011, the Company sold 24.4% interest in Polkomtel in Poland. In March 2012, Verizon Wireless, which is a joint venture of Verizon Communications Inc. and Vodafone, purchased the operating assets of Cellular One of Northeast Pennsylvania from the Company. In April 2012, its Netherlands-based division, Vodafone Libertel BV, acquired Telespectrum-DJ. On October 31, 2012, the Company acquired TelstraClear Limited. In May 2013, Vodafone Group Plc announced launch of its carrier services business unit.

In Europe, the Company�� mobile subsidiaries and joint venture operate under the brand name Vodafone. Its associate in France operates as SFR and Neuf Cegetel, and its fixed-line communication businesses operate as Vodafone, Arcor, Tele2 and TeleTu. Vodafone�� subsidiaries in Africa and Central Europe operate under the Vodafone brand, or in the case of Vodacom and its mobile subsidiaries, the Vodacom and Gateway brands. Its joint venture in Poland operates as Polkomtel and its associate in Kenya operates as Safaricom. The Company�� subsidiaries and joint venture in Fiji operate under the Vodafone brand, and its joint venture in Australia operates under the brands V! odafone and 3. The Company�� associate in the United States operates under the brand Verizon Wireless.

Vodafone has an international customer base with 370 million mobile customers across the world as of March 31, 2011. Vodafone also caters to all business segments ranging from small-office-home-office (SoHo) and small-medium enterprises (SMEs) to corporates and multinational corporations. Through its subsidiaries, Vodafone directly owns and manages approximately 2,200 stores around the world. The Company also has around 10,300 Vodafone-branded stores run through franchise and exclusive dealer arrangements.

The Company�� range of handsets covers all its customer segments and price points, and is available in a variety of designs. During the fiscal year ended March 31, 2011 (fiscal 2011), 14 new handsets were released under its own brand and it shipped 5.8 million. In addition to handsets, it supplies a range of connected smart devices. It supplies the iPhone in 19 markets. During fiscal 2011, the Company launched its USB stick based on 4G/LTE technology in Germany and Verizon Wireless launched in the United States.; Vodafone WebBox; a smartphone roaming data plan that allows the European customers to use their home data plan abroad for only 2 a day to access the Internet, emails and applications; the Android-powered Vodafone 845 and 945 devices; Vodafone TV services; Vodafone 252, which comes pre-loaded with Vodafone M-Pesa for mobile payment services and a prepaid balance indicator that helps customers to keep track of their phone credit to avoid overspending; Vodafone M-Pesa in South Africa, Qatar and Fiji; 3G services in India, and LTE services by acquiring LTE spectrum in Germany.

The Company is a carrier of mobile voice traffic in the world providing domestic, international and roaming voice services to more than 370 million customers. Its networks sent and received over 292 billion text, picture, music and video messages during fiscal 2011. The Company ! serves mo! re than 75 million customers with data services, which allow access to the Internet, email and applications on their phones, tablets, laptops and netbooks. The Company provides a range of data products, including Machine-to-machine (��2M�� connections, which allow devices to communicate with one another via built-in mobile SIM cards; Third party billing; Financial services; Near field communication (��FC��, and Mobile advertising. The Company, as of March 31, 2011, served 5.3 million M2M connections around the world. NFC allows communication between devices when they are touched together or brought within a few centimetres of each other. The Company has mobile advertising business in 18 countries with a range of capabilities. Over six million customers use its fixed broadband services in 13 markets to meet their total communications needs. In addition, through Gateway, it provides wholesale carrier services to more than 40 African countries. Other service revenue includes business managed services, such as secure remote network access, and revenue from mobile virtual network operators generated from selling access to its network at the wholesale level. The Company�� enterprise customers range from small-office-home-office (��oHo�� businesses and small to medium-sized enterprises (��MEs��, through to domestic and multinational companies. The Company has 34 million enterprise customers accounting for around 9% of all customers and around 23% of service revenue. The Company focuses on SoHos and SMEs to provide customers with integrated fixed and mobile communications solutions. Vodafone Global Enterprise manages the communication needs of over 560 of the multinational corporate customers. It provides a range of managed services, such as Central Ordering, Device Manager, Spend Manager Solutions, Invoice Manager, Vodafone Neverfail and Telecoms management. The Company offers a range of total communications applications, as well as services for enterprise and consumer customers. Vodafone Alw! ays Best ! Connected software enables customers to stay connected to the Internet on the available connection wherever they are by automatically managing the switching between connection types including mobile broadband, Wi-Fi and LAN. Vodafone PC Backup is an online back-up and restores service that enables users to remotely store data securely and automatically via their Internet connection.

Advisors' Opinion:

• [By Victor Mora]

  Vodafone provides telecommunications services and related products around the world. The company is currently in discussions to sell its stake in Verizon Wireless. The stock has been trending higher and is currently trading at highs for the year. Over the past four quarters, investors have been relatively pleased with the company, as earnings and revenues have been mixed. Relative to its peers and sector, Vodafone has been a year-to-date performance leader. Look for Vodafone to OUTPERFORM.

• [By Dividend Mantra] nounced the sale of it's 45% stake in the Verizon Wireless (VZW) joint venture it started with Verizon Communications Inc. (VZ) back in 2000. It seems almost from the start VZ has been trying to gain 100% control of it's wireless business. And who can blame them? This is a 13-year saga that has finally come to a close.

5 Best Warren Buffett Stocks To Buy Right Now: Provident Financial Services Inc(PFS)

Provident Financial Services, Inc. operates as the holding company for The Provident Bank that provides banking services to individuals, families, and businesses in New Jersey. The company accepts various deposit products, including savings, checking, interest-bearing checking, money market deposit, certificate of deposit, and KEOGH accounts, as well as IRAs. It also originates commercial real estate loans that are secured by income-producing properties, such as multifamily residences, office buildings, and retail and industrial properties; commercial business loans; construction loans for single family and condominium projects; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate; and other consumer loans consisting of home equity loans and home equity lines of credit. In addition, the company offers cash management, remote deposit capture, payroll origination, escrow account management, and Internet banking services, as well as business credit cards. Further, it provides range of asset management services, including investment management, asset allocation, trust and fiduciary, financial planning, family office, estate settlement, and custody services to individuals, municipalities, non-profits, corporations, and pension funds. Additionally, the company sells life insurance and investment products, including annuities; invests in real estate development joint ventures principally targeted to meet the housing needs of low and moderate-income communities; and manages and sells real estate acquired through foreclosure. As of January 27, 2012, it operated a network of 82 full service branches in northern and central New Jersey. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

5 Best Warren Buffett Stocks To Buy Right Now: Metabolix Inc.(MBLX)

Metabolix, Inc., a bioscience company, develops and commercializes technologies for the production of polymers and chemicals in plants and in microbes. It offers a proprietary microbial fermentation system to produce a family of polymers known as polyhydroxyalkanoates under the Mirel brand. Mirel holds biodegradability characteristics; and would be used in a range of commercial applications, including products used in agriculture and horticulture, compost and organic waste diversion bags, marine and aquatic applications, consumer products, business equipment and durable goods, and general packaging materials. The company also develops a proprietary platform technology for co-producing plastics, chemicals, and energy from crops, such as switchgrass, oilseeds, and sugarcane. It has a strategic alliance with ADM Polymer Corporation. The company was founded in 1992 and is based in Cambridge, Massachusetts.

Follow Peter Lynch's Advice With This Soaring Stock

Sometimes the profound truths are the easiest to understand. 

This is particularly true when it comes to investing. Many investors make the process much more difficult than it needs to be. At its core, investing is a simple process governed by a few irrefutable axioms. 

Choosing investments based on what you already know is one of these simple yet profound truths. I first heard this rule articulated by Peter Lynch, the superstar manager of Fidelity's Magellan Fund. Lynch wrote one of the best books on the stock market, "One Up On Wall Street," in which he stresses this simple investing rule.

 

Leading commodity trader Jim Rogers also repeats this mantra whenever he is asked what to invest in. I learned this several years ago when I interviewed Rogers while he was running on a treadmill -- an interviewing first for me -- in his home gym. When I asked if he cared to share any investing tips, he replied, "Look around you -- what do you see?" 

I saw racks of dumbbells and a pitcher of orange juice, among many other things. I must have had a perplexed look on my face because he said, "Invest in items you use every day, because if you use them, it is very likely everyone else does." 

I was hoping for specific tips to pass along, so I was disappointed he wasn't willing to share any insider-type information -- but after further consideration, his suggestion struck me as profound. I remembered it was the same advice Lynch offered in his best-selling book.

Since then, I have integrated this idea into my investment choices. Recently, I took an extreme look at the concept. Drilling down, I asked myself: What single item do I and nearly everyone else on the planet use on a daily basis? 

My first and obvious answers were air and water. Aside from a few niche hedge fund making a market in water rights and the water company utilities, there wasn't much exciting news there. No one has figured out how to commoditize the air we breathe, so that option hit the skids, too. 

Finally, I thought of toilet paper as being the single item used by most everyone on a daily basis. Everyone from the wealthiest people in the world to the most downtrodden use this product at least once per day. The average person uses 20,805 sheets of toilet paper a year, according to online retailer ToiletPaperWorld.com.

My next step was to locate stocks in this industry. One company stood out above the rest as a top performer with plenty of upside. That company is Orchids Paper Products Co. (NYSE: TIS).

	© 2013 Orchids Paper Products
	Orchids Paper markets directly to consumers under a variety of names, such as Colortex bathroom tissue.

Founded in 1976, Orchids Paper's product line consists of bathroom tissue, paper towels and paper napkins. The company markets directly to consumers under a variety of names through assorted types of stores. It also sells "parent rolls" wholesale to firms that label and market under their own brand names.

Orchids boasts a market cap of just over $216 million, annual revenue of nearly $101 million and gross profit of $22.6 million. Shares of TIS have risen 55% over the past 52 weeks, which compares with the S&P 500's gain of just less than 16%. Orchids' other appealing metrics include the more than 28% of outstanding shares held by insiders, and the forward annual dividend yield isn't shabby at 5%.

The company reported record net sales of $29 million in the second quarter, and earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 27% to over $6 million. Guidance was solid, with CEO Robert Snyder estimating that converted product shipments in the second half of 2013 would be at an annualized run rate of between 8.6 million and 9.1 million cases.

What really attracted me to this company is the technical picture. Shares have been in a solid uptrend since April 15. The stock has recently hit resistance in the $28 area and is building a base.

Risks to Consider: This company certainly fits the "buy what you know" axiom. However, like all other stock investments, it is not without risk. Always be certain to diversify and use stop-losses when investing.

Action to Take --> I love this stock on a breakout close above $28. My nine-month target price is $33, and the initial stop level should be just below $26.

P.S. -- With its 5% forward yield, a stock like Orchids Paper is perfect for what we call a "Dividend Trifecta" strategy. Simply put, it's a three-part approach to dividends that multiplies the effectiveness of every dollar you invest. Click here to learn more...

Wells Adds 5 Advisors, Nearly $1B in Assets From Rivals

Wells Fargo (WFC) said Tuesday it recruited five advisors from UBS (UBS) and Morgan Stanley (MS) with a total of $966 million in client assets. All of the advisors joined Wells’ Private Client Group.

The advisor team of William Black, Courtenay Hathcock and Frederick Rossetter moved from UBS to Wells Fargo and will be based out of the New York-Penn Center branch.

Together, they have 64 years of industry experience in the industry and $418 million in client assets. They report to branch manager Ted Geller.

Also moving to Wells from UBS is Lou Walsh, who has 17 years of experience and $287 million in client assets. Walsh now works in Jacksonville, Fla., and reports to complex manager Joe Bruno.

Moving to Wells from Morgan Stanley is Eric Zakarin, who has 26 years of industry experience and $261 million in client assets. Zakarin is working out of Wells’ Westfield, N.J., office and reports to complex manager Bill Drake.

As of June 30, Wells Fargo had 18,608 registered reps, of which 15,268 are financial advisors, 2,930 are in-bank advisors and the remainder — 408 — work with clients via phone.

Securities America

Independent financial advisor Gregory O’Donnell of the O’Donnell Financial Group in Larkspur, Calif., and six other advisors joined Securities America, a unit of Ladenburg Thalmann (LTS) with about 2,700 reps, last Wednesday.

“With such a strong footprint in the San Francisco area, and a broad reach with their unique radio show, we are excited to welcome Greg O’Donnell and his practice to the Securities America family,” said Gregg Johnson, senior vice president of branch office development and acquisitions, in a press release.

O’Donnell Financial has some $1.4 million in annual revenue and $137 million in client assets. It was previously affiliated with Financial Telesis of San Raphael, Calif.

“It was important to partner with an experienced leader in the broker-dealer world to provide us the support and product offerings we require to continue to grow and expand our business,” said O’Donnell, in a statement. “As a leading broker-dealer in the industry, Securities America is a known entity that I can trust to support my endeavors.”

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Check out New Hire Roundup: CFPB Names Antonakes Deputy Director on ThinkAdvisor.

So Much For That State of Calm: Dow Drops 100 Points as Bullard Speaks

The sleeping baby has woken up. 

The Dow Jones Industrial Average has dropped 102.09 points, or 0.7%, to 15348 today.

REUTERS

The Dow fell as St. Louis Fed Chief James Bullard spoke in Paducah, Kentucky. Reuters has the details:

Low U.S. inflation is a concern and it has not begun to head higher, a senior U.S. Federal Reserve official said on Wednesday, adding that inflation was one of the factors under scrutiny as policymakers weigh tapering monthly bond buys.

“Inflation has been running very low. I have been concerned about low inflation,” St. Louis Fed President James Bullard told a Rotary Club luncheon in Paducah, Kentucky. There has “not been much indication, so far, that it has been ticking back up toward target,” he said.

Bullard is scheduled to speak again at 3:15 p.m. Eastern time today.

Today’s big Dow losers include the Home Depot (HD), which has dropped 2.5% to $77.44, Johnson & Johnson (JNJ), which has fallen 2.4% to $90.81, and Boeing (BA), which is off 1.6% at $104.56 after a new  problem with its 787 jet was discovered. Bank of America (BAC) is the only Dow component trading up more than 1%–it’s gained 1.1% to $14.68.