Russia's anti-gay law could hit Olympic sponsors

LONDON (CNNMoney) The threat of protests at next year's Winter Olympics in Russia against a controversial anti-gay law has left sponsors jittery about potential damage to their business.

The law prohibits the distribution of information to minors that promotes same-sex relationships. Critics say it infringes gay rights and are worried that spectators waving rainbow flags or wearing rainbow T-shirts could be arrested at the Games.

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Major sponsors such as Coca-Cola (CCE, Fortune 500) and McDonald's (MCD, Fortune 500) are concerned about the risk of high-profile protests at the Games. Such demonstrations may draw attention to them for the wrong reasons and fuel calls for a boycott of their products.

President Vladimir Putin signed the law in June, sparking global outrage and a wave of protests demanding a boycott of the Games, which will be held in the Black Sea resort town of Sochi in February. There's no sign of athletes staying away but others big names are distancing themselves from the event. Just this week pop singer Cher said she had refused an invitation to perform because of Russia's anti-gay stance.

Putin said in an interview on state television in September that gay people would not be discriminated against at the Sochi Games. But that appears at odds with statements made by government officials that the anti-gay propaganda law will be enforced.

The legislation gives authorities the power to impose fines as well as detain foreigners who are deemed to have breached the law before deporting them. Four Dutch tourists reportedly making a film about gay rights in Russia were arrested under the law in July.

The other big Olympic sponsors are Visa ! (V, Fortune 500), Samsung (SSNLF), Panasonic (PCRFF), General Electric (GE, Fortune 500), Dow Chemical (DOW, Fortune 500), Procter & Gamble (PG, Fortune 500), Omega (OCFN) and Atos (ATOS). They're staying tight-lipped about the issue in public but a senior official at the International Olympic Committee said this month that several had raised concerns about how the law could affect the Games.

"I have heard a lot from the sponsors, especially the American sponsors, of what they are afraid of might happen," IOC marketing commission chairman Gerhard Heiberg said. "I think this could ruin a lot for all of us," he added, saying the IOC would enforce its rules against demonstrations.

A spokesperson for Coca-Cola said the company has been "straightforward in our many discussions with the IOC about our expectations regarding safety and security [at the Games] ...and will continue to engage directly with the IOC on this paramount priority."

Companies pay an estimated $100 million to become a major Olympic sponsor. They also pump in massive additional investment to support related marketing campaigns. Media tracking company The Global Language Monitor puts the cost of being a top sponsor as high as one billion dollars over a four-year period.

Civil rights and gay activist groups are driving global campaigns against Russia's perceived anti-gay agenda, and now the Olympic sponsors are in their sights.

The Washington-based Human Rights Campaign Foundation wrote to the chief executives of the 10 major sponsors in August, demanding they adopt a public position opposing the new laws. The group also called for the IOC to obtain written commitments from the Russian government about athlete and visitor safety.

So far none of the sponsors has heeded the call, though Coca-Cola and McDonald's have diversity policies which contain some protections for gay rights.

But public pressure and calls for consumers to shun sponsor products is mounti! ng. For m! onths Twitter has buzzed with cries for a boycott of the Sochi Games and attention is increasingly turning to sponsors.

5 Rocket Stocks to Buy as Mr. Market Climbs

BALTIMORE (Stockpickr) -- Ugh, I wouldn't want to be Larry Summers this morning. The former Treasury secretary set off a rally in stock futures yesterday, when he withdrew his name from the Fed Chairman job. The market has voted: Investors hate Larry Summers.

But don't worry too much about Larry. It's probably safe to say he's got a thick skin.

Instead, investors should be paying attention to the market's reaction. As I write just ahead of the open this morning, equities are pointed at some serious follow-through this Monday. That's a big deal after a technically-significant bounce that slingshotted stocks 1.98% higher last week.

And it's creating some buying opportunities this week. To make the most of them, we're turning to a new set of Rocket Stocks.

For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 214 weeks, our weekly list of five plays has outperformed the S&P 500 by 88.85%.

Without further ado, here's a look at this week's Rocket Stocks.

Schlumberger

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.

Yahoo!

It's been a challenging year for Yahoo! (YHOO), but you wouldn't know it from this stock's price action. Yahoo! has rallied more than 47% year-to-date, buoyed by major changes in the firm's structure -- and conspicuous leadership from CEO Marissa Mayer. But Yahoo!'s new logo is a good metaphor for the transformation at the company: The new logo was announced with much excitement, but most users probably wouldn't have noticed it otherwise.

Arguably paying too much for Tumblr, and still lacking a real unique selling proposition the new Yahoo! looks way too much like the old Yahoo!.

But while this stock built a reputation for being a dot-com era dinosaur, investors neglected the fact that this stock has had a really attractive business all along. Despite some big missteps, Yahoo! remains one of the biggest destinations on the internet, and all those eyes on its Web sites contribute to hefty net profit margins from operations.

Yahoo!'s cash position has been a blessing and a curse for investors in the last few years. A brilliant investment in Alibaba has contributed to a cash and investment position of more than $7.6 billion at last count, covering more than a quarter of YHOO's market cap. While that does help to reduce risk, Yahoo! either needs to figure out internal investments that yield meaningful rates of return, or give the money back to shareholders.

Just don't underestimate this stock's potential in 2013; Yahoo! may be a dinosaur, but at least it's a T-Rex.

Kroger

$20 billion grocery store chain Kroger (KR) has seen some surprising upside of its own this year: shares have climbed 50% since the first trading day in January. That performance may seem surprising for a 130 year old large-cap grocer, but this stock's rally has been predicated on out-executing the competition for years now.

Kroger operates more than 2,400 supermarkets, 750 convenience stores, and 325 jewelry stores under a handful of popular brands. Those marquees include Ralphs, Fred Meyer, Kwik Shop and Turkey Hill in addition to the firm's namesake chain. An ongoing acquisition plan for Harris Teeter stands to add another powerhouse grocery chain to KR's portfolio this year, adding even more separation between Kroger and its most well known competitors.

The grocery business is characterized by paper thin margins and zero competitive advantages. Kroger changed that by offering fuel as loss leader to pull in customers at around half of its locations. While many peers have copied that strategy, the existence of gas infrastructure at such a large percentage of its locations gives Kroger some built-in advantages. In many cases, rivals don't have the option to add fuel to as many of their own stores. From there, huge private label presence on Kroger's shelves help spur bigger margins than the rest of the industry.

With rising analyst sentiment in Kroger this week, we're betting on shares.

5 Best Cheap Stocks To Invest In Right Now

Green Mountain Coffee Roasters

As badly as short sellers want to hate on Green Mountain Coffee Roasters (GMCR), betting against the multiyear rally in this $12.7 billion beverage stock has been about as wise as eating from a box with a skull and crossbones on it. And as a bull market continues to lift all ships, Green Mountain's ship is going to keep floating above the others.

Green Mountain owns Keurig, the brand of beverage brewers that use self-contained K-Cups to make coffee, teas, and other drinks. While Keurig's "fad" status has certainly helped tip the deck against GMCR, the fact remains that the firm has done most of the hard work in getting Keurig machines accepted by consumers. With brewers essentially ubiquitous at this point, the firm is able to make money on its cash cow: the K-Cups.

Keurig's individual-serving cups have big margins and a big installed base. With huge convenience and the relatively large sunk cost that consumers have put into their Keurig machines, it's a sticky business with big switching costs. Consumers who buy a Keurig are much less likely to spend the money on a competing brand of proprietary coffee pods.

I've said before that GMCR is far from cheap right now. But its momentum trajectory is showing few signs of fizzling out, especially as direct competitors such as Starbucks (SBUX) continue to sell K-Cups of their own. Don't bet against GMCR in September – buy this Rocket Stock instead.

Polaris Industries

Last, but certainly not least, is Polaris Industries (PII), the power sports equipment manufacturer. In short, Polaris makes toys -- toys for grown ups. The firm's namesake brand manufactures ATVs and snowmobiles, and it also owns storied motorcycle brands Victory and Indian, and GEM light electric vehicles. With more than 1,650 dealers in North American alone, Polaris owns a significant chunk of the power sports industry, churning out more than $3.2 billion in sales last year, and net profit margins approaching 10%.

Economic recovery is fueling a boom market for Polaris' vehicles, especially now that rates continue to hover near their historic floor. Borrowing money is cheap, and that means that financing a motorcycle or ATV has become more affordable than ever before. With relatively low acquisition costs, buying one of Polaris' machines is a lot easier to stomach than many other recreation options, and so sales continue to look attractive this year.

Financially, Polaris is in solid shape. The firm carries nearly $280 million in cash and investments on its balance sheet, easily offsetting $107.6 million in total debt. PII is well positioned to run over any economic hiccups in the foreseeable future -- and with rising analyst sentiment in shares, we're betting on this name this week.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

3 Big Hiring Mistakes for RIAs to Avoid

For owners of investment advisory firms, “the key to achieving more may be doing less,” say TD Ameritrade and ThinkAdvisor contributor FA Insight in a new white paper.

By less, they means less time on overseeing internal meetings and less time on smaller accounts. They claim principals can potentially accelerate their firm’s growth by adding two key positions — dedicated management and an associate advisor — that give them more time to go out and bring in new business.

The white paper, titled “Breakout Growth: Adding Key Positions to Unlock Growth Potential,” finds that firms with a dedicated manager produced 36% more income per owner and 41% more operating profit per client than firms where advisors do double duty as business managers, the research showed. Likewise, firms with an associate advisor earned 44% more income per owner and added clients 15% faster than firms without.

Adding talent isn’t enough, however, according to the white paper: “principals need to carve out clear job roles, create a framework that can support a far bigger enterprise down the road and then have the courage to step aside.”

“Putting everyone in the firm, especially the founder, to their highest and best use is the end game,” Christine Gaze, TD Ameritrade Institutional’s director of practice management, said in a statement. “RIAs that effectively deploy these two key roles create opportunities for a productive shift in focus of the lead advisors, which can produce dramatic results.”

Three common missteps RIAs make, she said, involve having unrealistic expectations for your new associate advisor; hiring a business manager but then not trusting them to manage the firm; and hiring managers who are not capable of building and running the bigger company you envision.

Throwing new hires into the deep end:  Gaze notes that many principals, themselves the product of Wall Street’s ‘sink or swim’ culture, expect new hires to immediately get up to speed and so they often become frustrated when they instead see a cost center that is not generating revenue, according to the paper. Yet associates can create tremendous value by freeing the lead advisor to spend more seeking new business. Firms that don’t take the time to develop new advisors only ensure they will suffer expensive turnover.

“When the principal has unrealistic expectations, it sows the seeds for a toxic work environment,” Gaze said. “Principals need to regard the associate as an investment for the future, a seed that needs to be watered and cultivated.”

Holding on for too long: Gauze argues that adding an operations manager or chief operating officer isn’t overhead: dedicated managers hold the fort so that the senior advisor can focus on strategy and attracting more assets. Consider that half of U.S. RIA firms generating $1.5 million in annual revenue have one or more dedicated managers, but among firms generating at least $3.5 million, 90 percent have professional management. The challenge for principals is moving over and letting their new manager take the wheel. It is not always a comfortable transition for RIA principals, many of whom are entrepreneurs who wanted to be the boss and spent years building their own business. As a result many firms postpone hiring dedicated management until they get “bigger,” but these firms may wait too long and see growth stall as bottlenecks form around the owner.

Fighting yesterday’s war: Firms also can hurt themselves if they hire people who may be capable of running the business that exists today, but don’t have the skills and leadership qualities needed in a bigger, more complex enterprise. Hiring the dedicated manager is instrumental in leading the firm to breakout growth and avoiding frustration.

---

Check out 4 Things Advisors Should Never Say to Clients on ThinkAdvisor.

Higher earnings limit applies in the year worker reaches 66

My recent column on how the Social Security earnings cap is applied during the first year of retirement triggered several more questions.

Normally, people who collect Social Security benefits before the full retirement age of 66 must forfeit $1 in benefits for every $2 earned over a prescribed limit. For this year, the earnings cap is $15,120.

It is important to note that these benefit reductions aren't truly lost but merely deferred. Benefits will be increased at full retirement age to account for benefits that were withheld due to earnings.

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So, say an individual collected benefits at 62 and ultimately forfeited 12 months' worth of benefits over the next four years. Once that person reached full retirement age, Social Security would recalculate the benefits as if they began to be collected at 63, instead of 62, resulting in a higher amount going forward.

As I noted in my recen

It May Not Feel Ready Yet, but Now's the Time to Take a Swing on IceWEB (IWEB)

So far the brewing recovery effort from IceWEB, Inc. (OTCBB:IWEB) has remained off most traders' radars. That may be about to change, however. That's why you may want to go ahead and take a speculative plunge on IWEB now, on faith that the clues we're seeing now will indeed end up as they're suggesting.

Let's paint the bigger picture first, using the broad brush stroke of the weekly chart. As you can plainly see, the last several months have been miserable for IWEB. Heck, the last four years have been tough for the stock. But, the tide turned - significantly - in early July when shares finally started to make higher highs and higher lows. The bullishness we've seen over the past five weeks is literally the most bullishness we've seen from IceWEB in years.

More important than that, however, is the fact that this perk-up has materialized on decidedly rising volume. In other words, this rally is gathering participants on the way up... the key to any long-lasting bullish move.

There's one more hurdle IceWEB, Inc. will need to clear, however, before the rebound effort is fully underway- a move above the 200-day moving average line (green) at $0.042. It's close, but not there yet.

Waiting for that final confirmation of the IWEB rally, however, presents something of a problem... if you're waiting on that trigger, you're not only leaving money on the table (the 200-day line is $0.07, or 16%, away from the current price for the stock), but you may find yourself chasing the stock after it clears the 200-day moving average line. Odds are good other traders are thinking the same thing, and already have 'buys' programmed for when-and-if IWEB eclipses its 200-day moving average. That rush of buy orders all at the same time could catapult the stock in a hurry, pushing shares beyond what some might consider a good price.

Zooming into a daily chart provides that last bit of reassurance needed to go ahead and take the plunge on IceWEB. Despite Wednesday's opening gap, ever since late June we've seen the stock well supported by key moving average lines.... the 50-day line (purple) in early August, and today and yesterday, the 20-day moving average line (blue). That should be more than enough to keep the rebound effort going when things get tough.

Bottom line? It may not look like much yet, but IWEB has a lot more going for it than the rest of the market realizes. They're slowly figuring it out, which will accelerate the budding bullishness. It maybe worth a shot now, knowing there's a small risk that the stock doesn't actually clear the 2200-day moving average line.

If you'd like to get more trading ideas and analysis like this one, become a subscriber to the daily SmallCap Network e-newsletter. You'll get stock picks, market call, and more every day, FOR FREE!

Revealed: A Top 10 Stock For 2014

One company makes wireless chips for Apple's (Nasdaq: AAPL) iPhone. Another company helps finance silver mining projects in exchange for a future piece of the action. A third owns and operates utility, transportation and energy businesses around the world.

The common denominators?

Each has rewarded investors with market-trouncing gains in recent years. And each is an alumnus of StreetAuthority's annual "Top 10 Stocks" list.

Wireless semiconductor maker Skyworks Solutions (Nasdaq: SWKS) posted a gain of 101.8% in calendar-year 2010 after a listing in the "Top 10 Stocks" report. Ditto for Silver Wheaton (NYSE: SLW), which soared a whopping 159.9%. Last year, Brookfield Infrastructure Partners (NYSE: BIP) more than doubled the gain in the S&P 500 index after rising 33.2%.

The good news: There's more where those came from. StreetAuthority's just-released "Top 10 Stocks for 2014" report includes the 10 stocks that we believe have the best potential to beat the broader market in the coming year.

I'll reveal the name of one of those stocks in a moment. First, some background ...

The stocks that make up "The Top 10 Stocks of 2014" have returned an average gain of 129.5% during the past five years, almost triple the gain of the S&P 500 during the same period. This year's recommendations were compiled by Top 10 Stocks Chief Strategist Elliott Gue and his staff. 

If a stock is recommended in the Top 10 Stocks advisory or as one of the picks in the annual "Top 10" list, odds are it meets one or more of the following traits:

-- It owns irreplaceable assets. What do pipelines, hydroelectric dams and utility services have in common? They are all irreplaceable assets. Another company can't simply come along and build a competing business. Investments in these companies typically bode well for the long term.

-- It enjoys a high level of customer loyalty. Companies that can lock in a loyal customer base -- either by consumer preference or because there are few alternatives for customers to choose from -- tend to generate strong free cash flows and superior profit margins. This puts them in a better position to return money to shareholders through dividends and share buybacks.

-- It offers enormous shareholder yields. This is a metric that adds together the dividends a company pays, its share buybacks, and the debt it pays down. In other words, shareholder yield offers a real picture of how much cash a company is returning to its owners. Studies prove that companies with the highest shareholder yields tend to outperform the broader market.

Against those criteria, 13 of the 14 stocks in the Top 10 Stocks newsletter portfolio are in the green. Nine of those picks are posting double-digit gains of as much as 91% over holding periods ranging from a little more than two years to less than six months.

The track record of the annual list is equally as impressive. Since the inaugural edition in 2003, "top stocks" have beaten the market 7 out of 10 years (the jury is still out on the current year). That beats the performance of Warren Buffett's Berkshire Hathaway (NYSE: BRK) by one year during the same span.

You can learn the names of two of the top stocks for 2014 by clicking here. Below, Elliott reveals another of his favorite top stocks for 2014.

Bob: One of your top 10 stocks for 2014 is a carryover from last year's report, Brookfield Infrastructure Partners. What is it that you like about this particular partnership?

Elliott: Brookfield Infrastructure is a classic example of a company with "irreplaceable assets."  

The partnership currently owns more than $20 billion in investments across its three main business groups, including utilities, transportation, and energy. In its utilities business, for example, the firm operates a coal terminal in Australia as well as electric transmission networks across the Americas. And in transportation, the company owns a 3,000-mile long freight rail network in Australia, primarily used to transport the nation's resource wealth from inland locations to coastal ports for exports.

Just getting regulatory approval to build a new coal terminal or railway in Australia would be a lengthy process in itself. Construction is difficult and expensive due in part to periodic labor shortages and a spate of extreme weather over the past few years. These assets would be time-consuming and expensive to replace, so Brookfield owns an asset that no company is likely to try to duplicate. These assets also offer stable cash flows with little or no sensitivity to economic conditions and commodity prices. 

Bob: How does your current market outlook jibe with the types of stocks you're recommending these days?

Elliott: When we spoke last spring, I was concerned that we could have some bumps in the broader market over the course of the summer, and we did see that in the form of two modest sell-offs for the S&P 500. There are some important headline risks facing stocks in the near term, including how the U.S. Federal Reserve handles the wind-down of its quantitative easing policy, the decision over who will replace Fed Chairman Ben Bernanke, the ongoing potential for intervention in Syria and, most worryingly, a fight over raising the U.S. debt ceiling that should reach a head before mid-October.

The other concern, voiced in some corners, is that interest rates in the United States are likely to continue rising over the coming year, putting pressure on income-oriented stocks. While rising rates can be trouble for high-yield stocks, companies that pay a yield AND offer the prospects of dividend growth over time have held up well in rising interest-rate environments.

In Top 10 Stocks, I tend to focus on companies that can thrive in virtually any economic and interest rate environment. While all of my recommendations pay dividends, I don't recommend stocks that pay out sky-high yields with little or no prospects for growth. Instead, I look for firms that offer a combination of a solid yield and a history of boosting their payout over time.

I also like companies with a long history of returning capital to shareholders, effectively paying their owners for holding the stock. There are many ways companies can do this, including paying dividends, buying back stock or paying down debt to reduce their financial risks during downturns. 

Bob: I know you've got a special issue of Top 10 Stocks planned for October. Can you give us a preview?

Elliott: I think interest rates are likely to rise generally over the coming years, putting pressure on bonds and high-yield stocks that have little prospects of dividend growth. This is an important shift because both of these groups have been big winners over the past decade.

I spent some time scouring the markets looking for companies that can thrive in a rising interest rate environment and it struck me that some families have remained wealthy for generations because they owned what I call "legacy assets." These are assets so valuable they're able to stand the test of time, retaining their value in just about any economic and interest rate environment.

One company I'm currently looking at has a nearly 120-year-old brand that's continued to thrive through two world wars, the Great Depression, high inflation and sky-high interest rates through the 1970s and, of course, the most recent economic downturn and financial crisis. This "legacy asset" has been a household name for Americans for more than a century, and the stock continues to perform in good times and bad.

Amazingly, the stock outperformed the S&P 500 by 28 percentage points in 2008, the worst year of the financial crisis, and then proceeded to outperform the market again in the bull market that kicked off in March 2009, returning nearly 200% since that time, compared with just 125% for the S&P 500. That's the sort of consistency that owning legacy assets can bring.

P.S. If you want to learn about the types of assets and specific stocks that you can pass along to your children and your children's children, don't miss the next issue of Top 10 Stocks. For more information -- and to learn how you can receive the just-released "Top 10 Stocks for 2014" report, follow this link.

Intel's Transformation May Not Be Enough

NEW YORK (TheStreet) -- In his first keynote address at an Intel Developer Forum, new Intel (INTC) CEO Brian Krzanich was feisty and upbeat.

Intel is going to be everywhere in the new chip markets, he said, showing prototypes of low-power "Quark" chips inside tablets and bracelets, and promising that products based on 14-nanometer architecture will be delivered next year.

"The PC is in the business of redefining itself," he said. "So is Intel."

But is it? One of the first things consumers will see from this "new Intel" are Chromebooks running the company's "Haswell" chips. Hewlett-Packard (HPQ), Acer, Asus and Toshiba all showed off these products at the forum, promising prices as low as $300 for WiFi-only models with 14-inch displays. But underneath the optimism, there's disquiet. Google (GOOG) hasn't committed to Haswell, and the new products won't be using the Haswell name because Google isn't implementing some of the chip's features. All this illustrates Intel's basic problem. The new markets have left without it, often using designs from rival ARM Holdings (ARMH). Device makers like ARM for its low-power designs, but they also like that they can customize those designs, order just what they need, and control the intellectual property that flows from them. While Krzanich says Intel will compete at all price and power levels, that's not the question his customers are asking. Many device companies see this as a make-or-buy decision, and have chosen to make their own chips through third-party foundries rather than buy them from the fully integrated Intel. Servers, traditionally Intel's highest-profit market, are also being replaced by cloud data centers using the cheapest chips available. At its forum, Intel showed off low-power chips dubbed "Avoton" and "Rangeley" for these new markets, but the first question their salesmen will be asked is "How much?" Cloud means that they will have to compete in the server market on price, not just features. The initial stock market reaction to the Intel Developer Forum was positive, and Intel shares began trading Friday up nearly 2%. But the stock has been drifting sideways for years. It's up just 12% over the last five years, while ARM is up more than 700%. ARM shares are up recently because the Apple (AAPL) A7 chip is based on an ARM design.

When Intel has faced competition in the past it has been able to overcome it by delivering better chips at lower prices. That's precisely what it is doing this time.

But the problem today isn't the chip. It's the integrated business model under which the chip is produced. Design has become detached from manufacturing. There are only four main chip foundries left, including Intel, due to the cost of the necessary equipment, which is just as much a product of Moore's Law as faster and cheaper chips are.

Device makers have become accustomed to controlling their designs and having a company like Taiwan Semiconductor (TSM) or (in Apple's case) Samsung deliver the chips as-needed. It's the control of the business model, not the price and power consumption of the chip, that they are focused on.

Intel still doesn't get that. It's still delivering chips, good chips but chips, to Original Equipment Manufacturers, or OEMs, who are expected to turn those chips into something they can sell. As the Haswell Chromebook example shows, that can require customization that makes these chips less than what Intel supplied, meaning they go out under obsolete brand names, and consumers don't see that there's anything really new here at all. Until Intel addresses the business model problem, analysts will question whether it has redefined itself at all. At the time of publication, the author held shares of AAPL and GOOG. Follow @DanaBlankenhor This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Dana Blankenhorn has been a business journalist since 1978, and a tech reporter since 1982. His specialty has been getting to the future ahead of the crowd, then leaving before success arrived. That meant covering the Internet in 1985, e-commerce in 1994, the Internet of Things in 2005, open source in 2005 and, since 2010, renewable energy. He has written for every medium from newspapers and magazines to Web sites, from books to blogs. He still seeks tomorrow from his Craftsman home in Atlanta.

Nokia Said to Delay 'Phablet' Until October

NEW YORK (TheStreet) - Nokia  (NOK) says we should expect an announcement some time next month that will "reinvent innovation." Strong words. The Finland technology innovator alerted journalists the world over, via Twitter of course, to set aside October 22nd for a very special announcement...

We'll be waiting.

Read: Unwarranted Apple Hate

Until then, information has been leaking through the usual sources about a possible late-September introduction for Nokia's Lumia 1520 - a smartphone with a 6-inch screen running on an upgraded version (8.1) of Microsoft's  (MSFT) Windows Phone operating system.

According to Reuters, Nokia had been rumored to be planning a release of the new device sometime this month. But the Microsoft-Nokia deal announced last week delayed the super-sized phone's introduction. Nokia shares traded in New York were rising 1.2% to $6.20 on Tuesday while and Microsoft shares were gaining 0.9% to $33.11 after announcing a share buyback program of as large as $40 billion.

For the short-term, Nokia and Microsoft are still being operated as separate companies,  though their $7.2 billion deal is expected to close "around the first quarter of 2014".

Read: Can You Handle Selling a Home By Yourself?

And Microsoft is still hosting its own big event in New York, next week. It is rumored that second-generation Surface Pro and Surface RT tablets (running second-generations Windows 8.1 and Windows RT 8.1 software) will be announced be the start of that event. It is also possible another Nokia product - a tablet code named "Sirius" running Windows RT - may also make an appearance.

None of this will  "reinvent innovation." For that, Nokia has asked us to wait until October.

Written by Gary Krakow in New York

To submit a news tip, send an email to tips@thestreet.com.

Top 5 Financial Stocks To Watch Right Now

We upgrade our recommendation on DISH Network Corp. (DISH) to Neutral. We believe that the stock is currently fairly valued as it has moved up more than 63% in the last year. DISH currently has a Zacks Rank #3 (Hold).

Why the Upgrade?

We believe that better pay-TV services, dishNET satellite broadband services and strong customer faith will help the company to improve its financial condition. Business fundamentals remain intriguing. DISH is gradually improving its technically superior hardware, the latest of which is the ��ooper��HD DVR set.

The Federal Communications Commission has allowed DISH to deploy a nationwide wireless network with some restrictive conditions. The company is trying to become a unique bundled service provider of wireless voice and data together with a strong video distribution network.

Top 5 Financial Stocks To Watch Right Now: Firstbank Corporation(FBMI)

Firstbank Corporation, through its subsidiaries, provides commercial banking products and services. It accepts checking, savings, and time deposits. The company also provides commercial, mortgage, agricultural, real estate, real estate mortgage, real estate construction, home improvement, automobile, and consumer loans. In addition, it offers trust, security brokerage, and title insurance services, as well as armored car services. The company operates 53 branch offices in central Michigan. Firstbank Corporation was founded in 1894 and is headquartered in Alma, Michigan.

Top 5 Financial Stocks To Watch Right Now: HSBC Holdings PLC (HBC)

HSBC Holdings plc (HSBC), incorporated on January 1, 1959, is a global banking and financial services organizations. As of December 31, 2010, it provided a range of financial services to around 95 million customers through two customer groups, Personal Financial Services (PFS), including consumer finance, and Commercial Banking (CMB), and two global businesses, Global Banking and Markets (GB&M), and Global Private Banking (GPB). Its international network covers 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. As of December 31, 2010, the Company had an international network of some 7,500 offices in 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. PFS incorporates the Company�� consumer finance businesses, which include HSBC Finance Corporation (HSBC Finance). In April 2011, the Company closed its retail banking operation in Russia. In July 2011, the Company sold its unsecured written-off personal loan and credit card portfolio to J M Financial Asset Reconstruction Co. Pvt. Ltd. On May 20, 2012, HSBC Holdings PLC's wholly owned subsidiary HSBC Bank USA, N.A. and other wholly owned subsidiaries, sold 195 retail branches to First Niagara Bank, N.A. (First Niagara). In May 2012, the Company�� 70.03% owned subsidiary, HSBC Bank Malta plc, sold its card acquiring business to HSBC Merchant Services Ltd. In June 2012, the Company�� indirect wholly owned subsidiary, HSBC Iris Investments (Mauritius) Ltd, sold its 4.73% interest in Axis Bank Limited and 4.74% interest in Yes Bank Limited. In July 2012, its subsidiary, HSBC Europe (Netherlands B.V.), sold its 100% interest in HSBC Credit Zrt, to CentralFund Kockazati Tokealap. On March 31, 2013, Enstar Group Ltd�� subsidiary completed the acquisition from Household Insurance Group Holding Company of HSBC Insurance Company of Delaware and Household Life Insur! ance Company of Delaware, as well as its three subsidiary insurers.

The Company�� principal banking operations in Europe are HSBC Bank plc in the United Kingdom, HSBC France, HSBC Bank A.S. in Turkey, HSBC Bank Malta p.l.c., HSBC Private Bank (Suisse) S.A. and HSBC Trinkaus & Burkhardt AG. Through these operations it provides a range of banking, treasury and financial services to personal, commercial and corporate customers across Europe. HSBC�� banking subsidiaries in Hong Kong are The Hongkong and Shanghai Banking Corporation Limited and Hang Seng Bank Limited.

The Company offers a range of banking and financial services in the People�� Republic of China, mainly through its local subsidiary, HSBC Bank (China) Company Limited. It also participates indirectly in the People�� Republic of China through its four associates. Outside Hong Kong and the People�� Republic of China, it conducts business in 22 countries and territories in the Rest of Asia-Pacific region, through branches and subsidiaries of The Hongkong and Shanghai Banking Corporation, with coverage in Australia, India, Indonesia, Malaysia and Singapore.

In the Middle East, the Company has network of branches of HSBC Bank Middle East Limited, together with HSBC�� subsidiaries and associates. Its North American businesses are located in the United States, Canada and Bermuda. Operations in the United States are conducted through HSBC Bank USA, N.A., which is concentrated in New York State, and HSBC Finance, a national consumer finance company based near Chicago. HSBC Markets (USA) Inc. is the intermediate holding company of, inter alia, HSBC Securities (USA) Inc. HSBC Bank Canada and HSBC Bank Bermuda operate in their respective countries.

The Company�� operations in Latin America consists of HSBC Bank Brasil S.A.-Banco Multiplo, HSBC Mexico, S.A., HSBC Bank Argentina S.A. and HSBC Bank (Panama) S.A. In addition to banking services, it operates insurance businesses in Brazil, Mexi! co, Argen! tina, Panama and a range of smaller markets.

Personal Financial Services

PFS offers the Company�� products and services to customers based on their individual needs. Premier and Advance services are for customers who value international connectivity and benefit from its global reach and scale. It offers a range of banking products and services reflecting local requirements. In addition, it issues card globally, offering HSBC branded cards, co-branded cards with selected partners and private label (store) cards. Its customer offerings include personal banking products, including current and savings accounts, mortgages and personal loans, credit cards, debit cards and local and international payment services, and wealth management services, including insurance and investment products and financial planning services.

HSBC Premier provides preferential banking services to high net worth customers and their immediate families with a relationship manager, wealth advice and solutions. Customers can access emergency travel assistance, telephone banking and an online global view of their Premier accounts globally with free money transfers between them. HSBC Advance provides a range of preferential products and services customized to meet local needs. With a telephone service, access to wealth advice and online tools to support financial planning, it gives customers an online global view of their Advance accounts with money transfers between them. Wealth Solutions & Financial Planning process designed for global individual customer needs to help its clients to protect, grow and manage their wealth through investment and wealth insurance products manufactured by in-house partners, including Global Asset Management, Global Markets and HSBC Insurance, and by selected third party providers. During 2010, PFS provided 92 million individual and self-employed customers with financial services in over 60 markets globally.

Commercial Banking

The Company ! segments ! its CMB business into Corporate, to serve both Corporate and Mid-Market companies, and Business Banking, to serve the small and medium-sized enterprises (SME��) sector. It provides support to companies as they expand both domestically and internationally, and ensures a focus on the business banking segments. It offers a range of financing, both domestic and cross-border, including overdrafts, receivables finance, term loans and syndicated, leveraged, acquisition and project finance. Asset finance is offered in selected sites, focused on leasing and instalment finance for vehicles, plant and equipment. It is a provider of domestic and cross-border payments and collections, liquidity management and account services globally, delivered through its e-platform, HSBC net. It provides international trade products and services, to both buyers and suppliers, such as export finance, guarantees, documentary collections and forfeiting to improve efficiency and help mitigate risk throughout the supply chain.

CMB customers are volume users of its foreign exchange, derivatives and structured products. Capital markets & advisory is raising capital on debt and equity markets and provide advisory services. Commercial cards issuing helps customers enhance cash management, credit control and purchasing. Card acquiring services enable merchants to accept credit and debit card payments in person or remotely. CMB offers key person, employee benefits and a range of commercial risk insurance, such as property, cargo and trade credit. Direct channels include online and direct banking offerings, such as telephone banking, HSBCnet and Business Internet Banking.

Global Banking and Markets

GB&M provides tailored financial solutions to government, corporate and institutional clients and private investors globally. Managed as a global business, GB&M operates a long-term relationship management approach to build a understanding of clients��financial requirements. Sector-focused client service! teams co! nsisting of relationship managers and product specialists develop financial solutions to meet individual client needs. GB&M is managed as four principal business lines: Global Markets, Global Banking, Global Asset Management and Principal Investments.

Global Markets operations consist of treasury and capital markets services. Products include foreign exchange; currency, interest rate, bond, credit, equity and other derivatives; government and non-government fixed income and money market instruments; precious metals and exchange-traded futures; equity services; distribution of capital markets instruments, and securities services, including custody and clearing services and funds administration to both domestic and cross-border investors. Global Banking offers financing, advisory and transaction services. Its products include capital raising, advisory services, bilateral and syndicated lending, leveraged and acquisition finance, structured and project finance, lease finance and non-retail deposit taking; international, regional and domestic payments and cash management services; and trade services for large corporate clients.

Global Asset Management offers investment solutions to institutions, financial intermediaries and individual investors globally. Principal Investments includes its relationships with third-party private equity managers and other investments. GB&M is a global business, which provides financial solutions to government, corporate and institutional clients globally.

Global Private Banking

GPB works with the Company�� high net worth clients to offer ways to manage and preserve wealth. HSBC Private Bank is the principal marketing name of its international private banking business, GPB. GPB works with its clients to offer both ways to manage and preserve wealth while optimising returns. GPB accesses six advisory centers in Hong Kong, Singapore, Geneva, New York, Paris and London. Private Banking services consist of multi-currency depo! sit accou! nts and fiduciary deposits, credit and specialist lending, treasury trading services, cash management, securities custody and clearing. GPB works to ensure that its clients have access to other products and services available in HSBC, such as credit cards, Internet banking, corporate banking and investment banking.

Private Wealth Management consists of both advisory and discretionary investment services. A range of investment vehicles is covered, including bonds, equities, derivatives, options, futures, structured products, mutual funds and alternatives (hedge funds, private equity and real estate). Corporate Finance Solutions helps provide clients with solutions for their companies, working in conjunction with GB&M. Private Wealth Solutions consist of planning, trustee and other fiduciary services to protect wealth and preserve it for future generations. Its expertise includes trusts, foundation and company administration, charitable trusts and foundations, insurance, family office advisory and philanthropy.

Other

The Company�� Other contains the results of certain property transactions and unallocated investment activities. It also includes centrally held investment companies, movements in fair value of own debt, HSBC�� holding company and financing operations.

Advisors' Opinion:

• [By Victor Mora]

  HSBC is a banking and financial services company that provides service to consumers and companies across the globe. The stock has made modest progress in recent years but is now near price levels that may see some selling pressure, specially with news of a settlement. Over the last four quarters, earnings and revenue figures have been mostly increasing; however, the markets have had mixed feelings about the company’s recent earnings reports. Relative to its peers and sector, HSBC has been a weak �year-to-date performer. WAIT AND SEE what HSBC does in coming quarters.

Best Stocks To Invest In Right Now: Investec(INVP.L)

Investec plc provides various financial products and services primarily in the United Kingdom, South Africa, and Australia. The company operates in six divisions: Asset Management, Wealth and Investment, Property Activities, Private Banking, Investment Banking, and Capital Markets. The Asset Management division offers investment products and services to institutional and individual investors. The Wealth and Investment division provides investment management services for private clients, charities, and pension schemes and trusts, as well as independent financial planning advice for private clients and businesses. The Property Activities division involves in the property investments, property fund and asset management, property trading and development, and property backed distressed debt acquisition activities. The Private Banking division offers personal savings, mortgage services, treasury products, and cash management; growth and acquisition finance; wealth management; sp ecialized lending; structured property finance; and trust and fiduciary services targeting high net worth individuals, wealthy entrepreneurs, professionals, self-employed entrepreneurs, owner managers in mid-market companies, and investors. The Investment Banking division provides corporate finance, institutional research, sales and trading, direct investments, and private equity services to the listed and unlisted companies, fund managers, government, and parastatals. The Capital Markets division offers asset and liability management, treasury, interest rate, structured equity, financial, structured and asset finance, project finance, commodities and resource finance, debt capital market, and corporate and leveraged debt services to corporate clients, public sector bodies, and institutions. The company was founded in 1974 and is based in London, the United Kingdom. Investec plc operates as a subsidiary of Investec Group.

Top 5 Financial Stocks To Watch Right Now: Westamerica Bancorporation(WABC)

Westamerica Bancorporation operates as the holding company for Westamerica Bank that provides various banking services to individual and corporate customers in northern and central California. Its deposit products include money market savings and checking accounts; non interest bearing demand deposits; interest bearing transaction, savings, and time deposits; and certificates of deposit. The company?s loan portfolio comprises commercial and residential real estate loans, commercial loans, and real estate construction loans. It operates through 98 branch offices in 21 counties in northern and central California, including 14 offices in Fresno county; 13 in Sonoma county; 11 in Marin county; 7 each in Merced, Napa, and Stanislaus counties; 5 each in Lake, Contra Costa, and Solano counties; 4 in Kern county; 3 each in Alameda, Sacramento, and Tulare counties; 2 each in Mendocino, Nevada, and Placer counties; and 1 each in San Francisco, Tuolumne, Kings, Madera, and Mariposa counties. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. Westamerica Bancorporation was founded in 1972 and is headquartered in San Rafael, California.

Top 5 Financial Stocks To Watch Right Now: First M & F Corporation(FMFC)

First M&F Corporation operates as the holding company for Merchants and Farmers Bank that provides community banking services to middle market and professional businesses in Mississippi, Alabama, Tennessee, and Florida. It offers various deposit products, including interest and non-interest bearing NOW and money market, savings, and time deposits, as well as certificates of deposit. The company also provides loan products, such as commercial, financial, and agricultural loans; non-residential real estate loans; residential real estate loans; and consumer loans. In addition, it offers various services, such as business checking, treasury management, and secured and unsecured lines of credit; sweep accounts and letters of credit; debit cards, automated teller machine access, and overdraft protection plans. Further, the company provides credit life insurance and general insurance agency services; and real estate property management services, as well as involves in asset-based lending operations. First M&F Corporation operates through its main office and two branches in Kosciusko and its branches within central and north Mississippi. The company was founded in 1890 and is based in Kosciusko, Mississippi.

Joy Global, Caterpillar: Is There Life in Markets for Heavy Machinery?

When Caterpillar Inc. (NYSE: CAT) reported earnings in July, the company took the opportunity to cut its revenue and earnings guidance for the full fiscal year. Mining equipment maker Joy Global Inc. (NYSE: JOY) reported third fiscal quarter results Wednesday morning and reaffirmed the lowered guidance it gave at the end of the second quarter.

On the surface, Joy Global did not perform too badly. Adjusted earnings per share (EPS) came in at $1.70, well above the consensus estimate of $1.37. Revenues totaled $1.3 billion, again above estimates, but both numbers were below year-ago results.

Both companies face the same issue: inventory turnover. Caterpillar's dealer inventories are historically low, and those dealers are restocking from the company's distribution centers, lowering inventory even more. This translates into lower demand and a reduction in order backlog.

Joy Global has a similar problem. The company's CEO noted it this morning:

The market has become even more challenging, with declines in order rates for both original equipment and aftermarket. The supply surplus that was centered in the U.S. coal market last year has migrated to the international markets, and they are now going through similar aftermarket corrections to that in the U.S. Based on the U.S. experience, we expect this to create headwinds for most of the next year. Although original equipment orders have always been lumpy, the uncertainty around their timing has increased. A select number of projects are continuing to move forward, but at a measured pace so they do not get ahead of the market. As a result, we expect the order rate to take a step down from our previous outlook until both demand and commodity pricing improve, but at the same time we expect the run rate to be above that of the current quarter.

Total bookings at Joy Global are down about 36% year-over-year in the third quarter, and orders for new equipment fell a whopping 76%. And the company's assessment of the coal-mining business is not pretty:

[M]ost coal mines in the U.S. and many coal mines in Australia are operating above cash costs but below total costs. In addition, the long term expectation for commodity prices has been lowered and it limits the number of mine expansion projects that can meet updated risk-adjusted return criteria. This combination has significantly reduced customer capex spending. Our analysis indicates that customer capex spend on mining equipment is down 40 to 50 percent.

Hot Gold Stocks To Invest In Right Now

Joy Global, like Caterpillar, can only keep trying to lower its costs as the companies weather the downturn in demand for construction and mining equipment. To keep investors happy, Joy Global said it would repurchase $1 billion in stock over the next three years.

Shares of Joy Global are trading down 3.4% in Wednesday's premarket, at $49.55 in a 52-week range of $47.83 to $69.19.

5 Stocks Under-$10 Setting Up to Trade Higher

DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the hot movers in the under-$10 complex from Thursday, including Oclaro (OCLR), which skyrocketed higher by 40%; GenVec (GNVC), which soared higher by 33%; Ivanhoe Energy (IVAN), which ripped higher by 18%; and CAMAC Energy (CAK), which trended up by 12%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently skyrocketed higher was pharmaceuticals player Neuralstem (CUR), which I highlighted in Sept. 06's "5 Stocks Setting Up to Break Out" at $1.80 per share. I mentioned in that piece that shares of CUR were uptrending strong over the last six months, with the stock soaring higher from its low $1 a share to its high of $1.79 a share. Shares of CUR had recently pulled back to its 50-day moving average at $1.59 a share, and the stock was starting to bounce strongly off that level. That move was quickly spiking shares of CUR within range of triggering a big breakout trade above some near-term overhead resistance levels at $1.75 to $1.79 a share.

Guess what happened? Shares of CUR didn't wait long to trigger that breakout, since the stock closed the same day I wrote that piece at $1.85 a share. That close was also accompanied by heavy upside volume, which was bullish technical price action. Shares of CUR continued to surge higher the next two trading sessions, with the stock hitting a new 52-week high of $2.52 a share. That's a massive gain of close to 40% in just a few trading sessions for anyone who played that breakout. I don't think CUR is done going higher here either, so traders should look for more upside in this stock if it can manage to take out $2.38 to its 52-week high at $2.52 a share with strong upside volume.

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

Hot Warren Buffett Stocks To Own Right Now

I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Durect

One under-$10 name that's starting to move within range of triggering a major breakout trade is Durect (DRRX), which develops pharmaceutical products based on its proprietary drug delivery technology platforms. This stock is off to a hot start in 2013, with shares up sharply by 41%.

If you take a look at the chart for Durect, you'll notice that this stock has been trending sideways for the last two months and change, with shares moving between $1 on the downside and $1.34 on the upside. Shares of DRRX have now started to flirt with that $1.34 major resistance level on Thursday, since the stock has hit an intraday high of $1.35 a share with strong upside volume flows. This could be signaling that shares of DRRX are ready to break out above the upper-end of its recent range and trend substantially higher.

Traders should now look for long-biased trades in DRRX if it manages to break out above some near-term overhead resistance levels at $1.34 to $1.35 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 679,480 shares. If that breakout triggers soon, then DRRX will set up to re-fill some of its previous gap down zone from May that started near $1.80 a share. If DRRX gets into that gap with volume, then this stock could easily trend north of $2 a share.

Traders can look to buy DRRX off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at its 50-day moving average of $1.16 a share or its 200-day moving average at $1.11 a share. One can also buy DRRX off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Echo Therapeutics

Another under-$10 health care player that's quickly moving within range of triggering a major breakout trade is Echo Therapeutics (ECTE), which is a transdermal medical device company with skin permeation technology. This stock has been destroyed by the bears so far in 2013, with shares off huge by 70%.

If you take a look at the chart for Echo Therapeutics, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of $2.14 to its intraday high of $3.06 a share. During that uptrend, shares of ECTE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has pushed shares of ECTE back above its 50-day moving average at $2.65 a share, and it's just starting to push ECTE into breakout territory, since the stock has cleared some key near-term overhead resistance levels at $2.98 to $2.99 a share. That move is quickly pushing shares of ECTE within range of triggering an even bigger breakout trade.

Market players should now look for long-biased trades in ECTE if it manages to break out above some major near-term overhead resistance at $3.30 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average volume of 211,103 shares. If that breakout triggers soon, then ECTE will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.50 a share, or possibly even $5 to $6 a share.

Traders can look to buy ECTE off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $2.65 a share, or right below more near-term support at $2.50 a share. One can also buy ECTE off strength once it clears $3.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

EnteroMedics

One under-$10 health care player that's starting to trend within range of triggering a big breakout trade is EnteroMedics (ETRM), which is engaged in design and development of devices that use neuroblocking technology to treat obesity, its associated co-morbidities and other gastrointestinal disorders. This stock has been hit hard by the sellers so far in 2013, with shares off sharply by 59%.

If you take a look at the chart for EnteroMedics, you'll notice that this stock recently formed a double bottom chart pattern $1 to $1.01 a share. Following that bottom, shares of ETRM have started to rip higher and trend back above its 50-day moving average at $1.08 a share with strong upside volume flows. This move is quickly pushing ETRM within range of triggering a big near-term breakout trade.

Traders should now look for long-biased trades in ETRM if it manages to break out above some near-term overhead resistances levels at $1.14 to $1.19 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 584,986 shares. If that breakout triggers soon, then ETRM will set up to re-test or possibly take out its next major overhead resistance levels at $1.37 to $1.47 a share. Any high-volume move above those levels will then give ETRM a chance to re-fill some of its previous gap down zone from February that started above $3 a share.

Traders can look to buy ETRM off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $1.08 a share, or below more key near-term support at $1 a share. One can also buy ETRM off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Tsakos Energy Navigation

Another under-$10 name in the energy space that's starting to move within range of triggering a near-term breakout trade is Tsakos Energy Navigation (TNR), which is a provider of seaborne crude oil and petroleum product transportation services. This stock has been on fire so far in 2013, with shares up sharply by 35%.

If you take a look at the chart for Tsakos Energy Navigation, you'll notice that this stock just recently formed a double bottom chart pattern at $4.50 to $4.55 a share. Following that bottom, shares of TNP have started to uptrend and move back above its 50-day moving average of $4.85 a share. That move is quickly pushing shares of TNP within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in TNP if it manages to break out above some near-term overhead resistance levels at $5.09 to $5.15 a share and then once it takes out more resistance at $5.69 to its 52-week high at $6.19 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 184,898 shares. If that breakout triggers soon, then TNP will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $7 to $8.30 a share.

Traders can look to buy TNP off weakness to anticipate that breakout and simply use a stop that sits right below those key near-term support levels at $4.55 to $4.50 a share. One can also buy TNP off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

IntelliPharmaCeutics International

One final under-$10 pharmaceuticals player that potentially looks ready to trend significantly higher IntelliPharmaCeutics International (IPCI), which business activities include research, development, and commercialization of controlled-release and targeted pharmaceutical products.. This stock has been under selling pressure so far in 2013, with shares off by 19.6%.

If you take a look at the chart for the IntelliPharmaCeutics International, you'll notice that this stock has sold off from its August high of $2.39 a share to its recent low of $1.81 a share. That selloff did not take shares of IPCI to a lower low, which would have only occurred if the stock broke below $1.76 a share. Shares of IPCI have now started to trend back above its 50-day moving average at $1.95 a share and its flirting here with its 200-day moving average at $2.01 a share. That move is starting to push shares of IPCI within range of triggering a big breakout trade.

Traders should now look for long-biased trades in IPCI if it manages to break out above some near-term overhead resistance levels at $2.20 to $2.39 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 175,680 shares. If that breakout triggers soon, then IPCI will set up to re-test or possibly take out its next major overhead resistance levels at $2.80 to its 52-week high at $3.72 a share.

Traders can look to buy IPCI off weakness to anticipate that breakout and simply use a stop that sits right below its recent low of $1.81 a share. One can also buy PCI off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS: >>5 Tech Stocks Spiking on Big Volume
>>5 Stocks Setting Up to Break Out
>>4 Red-Flag Stocks to Sell This Fall

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

 

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

 

Will IBM See a Higher Bid?

With shares of International Business Machines (NYSE:IBM) trading around $186, is IBM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

IBM is an information technology company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Technology products and services are in high demand worldwide as consumers want to be up-to-speed, and companies always need the latest and greatest to stay ahead of the competition. Cloud computing has been hot in recent times, which has not been good news for IBM. Should the company want to hold on to its market share, it needs to make moves quickly, and provide the technology products and services that worldwide consumers and companies demand.

Recently, IBM reported earnings that topped analyst expectations. Also, the company announced it is furloughing the majority of its U.S. hardware employees, forcing them to work one week with reduced pay as the company tries to shed costs amidst slumping demand. Sales in the second quarter dropped 12 percent from last year while the company cut around 3,300 employees across North America.

T = Technicals on the Stock Chart Are Mixed

IBM stock has not been moving much in the last several quarters. The stock is now trading near lows for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, IBM is trading below its key averages which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

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

	Top Stocks To Buy For 2014 Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
IBM Options	20.21%	76%	75%

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

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

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	11.40%	3.45%	11.15%	4.39%
Revenue Growth (Y-O-Y)	-3.33%	-5.11%	-0.64%	-5.39%
Earnings Reaction	1.76%	-8.27%	4.40%	-4.91%

IBM has seen rising earnings and declining revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings with IBM’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has IBM stock done relative to its peers HP (NYSE:HPQ), Dell (NASDAQ:DELL), Microsoft (NASDAQ:MSFT), and sector?

	IBM	HP	Dell	Microsoft	Sector
Year-to-Date Return	-2.39%	56.07%	36.54%	20.74%	23.39%

IBM has been a poor relative performer, year-to-date.

Conclusion

IBM is a global technology company that provides essential products and services to companies and consumers worldwide. The company is currently undergoing some measures in order to improve the company. The stock has not done well in recent quarters and is now trading near lows for the year. Over the last four quarters, earnings have been rising while revenues have been declining which has not really pleased investors in the company. Relative to its peers and sector, IBM has been a weak year-to-date performer. WAIT AND SEE what IBM does in coming quarters.

Can BP Continue On Its Road To Recovery?

With shares of BP (NYSE:BP) trading around $43, is BP an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

BP is an integrated oil and gas company. The company provides its customers with fuel for transportation, energy for heat and light, lubricants and the petrochemicals products used to make everyday items as diverse as paints, clothes, and packaging. It operates in two business segments: Exploration and Production, and Refining and Marketing. BP provides essential energy products to consumer and companies worldwide. Without the oil and gas products provided, many consumers and businesses would not be able to operate on a daily basis. As businesses and consumers continue to need oil and gas products and services, BP stands to see rising profits.

T = Technicals on the Stock Chart are Mixed

BP stock has seen a modest rise over the last year or so. The company, along with its stock, is still trying to recover from the disaster it had in 2010. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, BP is trading around its key averages which signal neutral price action in the near-term.

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(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
BP Options	19.14%	80%	78%

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

	Put IV Skew	Call IV Skew
July Options	Steep	Average
August Options	Steep	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	192.3%	-78.97%	8.03%	-124.38%
Revenue Growth (Y-O-Y)	10.06%	7.51%	-4.72%	-8.71%
Earnings Reaction	2.28%	1.35%	2.78%	-4.59%

BP has seen mixed earnings and revenue figures over the last four quarters. From these numbers, the markets have been optimistic about BP’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has BP stock done relative to its peers, Chevron (NYSE:CVX), Royal Dutch Shell (NYSE:RDSA), Exxon Mobil (NYSE:XOM), and sector?

	BP	Chevron	Royal Dutch Shell	Exxon Mobil	Sector
Year-to-Date Return	4.11%	13.25%	-4.10%	5.25%	4.39%

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

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Conclusion

BP is a provider of essential oil and gas products and services to companies and consumers operating in a wide range of industries around the world. The stock has been in recovery mode over the last few years after suffering heavy selling in 2010 because of the oil spill disaster. Over the last four quarters, earnings and revenue figures have been mixed for the company, regardless, investors have been optimistic about the company. Relative to its peers and sector, BP has been an average performer year-to-date. WAIT AND SEE what BP does in coming quarters.

Can Philip Morris Continue This Bull Run?

With shares of Philip Morris (NYSE:PM) trading around $96, is PM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Philip Morris manufactures and sells cigarettes and other tobacco products. The company's portfolio of international and local brands include Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company sells its products in approximately 180 countries in the European Union, Eastern Europe, the Middle East, Africa, Asia, Latin America, and Canada. Through its established brands, Philip Morris provides satisfaction to large base of consumers that purchase its products on a daily basis. During good and bad times, the products produced and sold by the company will continue to acquire customers well into the future.

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T = Technicals on the Stock Chart are Strong

Philip Morris stock has seen a monster uptrend since reaching lows in early 2009. The stock is currently trading at all-time high prices, a feat it has reached over the last five years. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Philip Morris is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Philip Morris Options	16.38%	16%	15%

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

	Put IV Skew	Call IV Skew
May Options	Flat	Average
June Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	2.40%	15.75%	-2.22%	0.74%
Revenue Growth (Y-O-Y)	-57.92%	4.59%	-5.38%	-0.97%
Earnings Reaction	-2.49%	2.42%	-4.19%	0.15%

Philip Morris has seen mixed earnings and revenue figures over the last four quarters. From these figures, the markets have had mixed feelings about Philip Morris’s recent earnings announcements.

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P = Average Relative Performance Versus Peers and Sector

How has Philip Morris stock done relative to its peers, British American Tobacco (NYSE:BTI), Altria Group (NYSE:MO), Reynolds American (NYSE:RAI), and sector?

	Philip Morris	British American Tobacco	Altria Group	Reynolds American	Sector
Year-to-Date Return	14.78%	10.46%	16.22%	14.63%	14.48%

Philip Morris has been an average relative performer, year-to-date.

Conclusion

Philip Morris provides cigarette and tobacco products through established brands to an increasing consumer base around the world. The stock has done very well over the last few years and is now trading at all-time high prices. Earnings and revenue figures have been increasing and decreasing, in recent quarters, which has confused investors a bit. Relative to its strong peers and sector, Philip Morris has been an average year-to-date performer. Look for Philip Morris to OUTPERFORM.

Alexza Pharmaceuticals: Stage Set For Adasuve

Alexza's (ALXA) US marketing deal with Teva (TEVA) for Adasuve (orally-inhaled loxapine) enhances the product's US sales prospects given Teva's expertise in the psychiatric and hospital markets. Adasuve is a potentially disruptive new product for acute agitation in schizophrenia or bipolar disorder, given its advantages over existing options (injection/oral/buccal). The investment case is shifting from a development/regulatory play to one of commercial execution by Adasuve's licensees, Teva in the US and Ferrer in Europe.

Price: US$4.67

Market cap: US$74m

Share details

Code	ALXA
Listing	NASDAQ
Shares in issue	15.8m

Business description

Alexza Pharmaceuticals is a US-based company developing products for acute CNS disorders using its proprietary Staccato aerosol rapid drug delivery system. Lead product Adasuve is approved in the US and EU for acute treatment of agitation in patients with schizophrenia or bipolar disease.

Bull

Adasuve is a potentially disruptive entrant in acute agitation in the schizophrenia/bipolar disease market, given its advantages over injection and slower absorption of oral/buccal alternatives.Staccato delivery system can be applied to other CNS-product candidates.Teva-sponsored Phase IV could raise Adasuve's profile among physicians.

Bear

10% of Adasuve royalties owed to Symphony Allegro.Adasuve REMS could curtail US penetration rate.Financing may be needed before year-end 2014.

Teva deal validates Adasuve's potential
Alexza received $40m upfront ($10m passed to Symphony Allegro), and may obtain up to $195m in milestones, plus tiered royalties on US Adasuve sales. Teva will fund the required post-marketing studies and will establish a minimum 40-rep sales force targeting 1,000 US hospitals. Teva's commitment signals its confidence in Adasuve for acute agitation! in hospital settings, where the drug's competitive benefit is its ~10 min time-to-clinical effect (vs ~15-30 min for intramuscular injectables), while offering a non-coercive and more patient-friendly route of administration.

Adasuve launches in H213
Teva intends to launch Adasuve in H213, while EU licensing partner Ferrer plans H213 launches in Germany and Austria, with other EU countries to follow in 2014. Given 6.5m Americans with bipolar disease and 2.2m with schizophrenia, and assuming a 50% institutionalisation/agitation rate, ~4 episodes pa and ~$75 cost per treatment, capturing 8% of this market could provide $100m in US product sales; Alexza has indicated it will be cash-flow positive when sales reach this level.

Alexza resumes work on other Staccato products
With Teva taking control of US Adasuve marketing, Alexza will work on developing further CNS products using its Staccato system. It will start a 60pt Phase II trial in H213 for AZ-002 (Staccato alprazolam) for acute repetitive seizures (ARS), with results expected in 2014. Other Staccato projects could be disclosed by end-2013.

Valuation: Modest EV of $37m; focus on execution

Alexza had $11.7m in cash and $4.9m in debt at end-March 2013, and will net $30m of Teva's upfront fee. The transfer of US sales efforts to Teva should lower Alexza's burn rate from Q113's $9.4m. After considering a $25m five-year convertible note granted by Teva, Alexza expects to have sufficient cash to fund activities into Q314. Adasuve's uptake and market share gains are therefore key to share price performance, and may determine the timing of a future financing.

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Source: Alexza Pharmaceuticals: Stage Set For Adasuve

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

Business relationship disclosure: Edison Investment Research Limited (Edison) is a leading international investment research company. Edison and its subsidiaries (Edison Group) have won industry recognition, with awards both in Europe and internationally. This article was written by Pooya Hemami, one of our Healthcare Analysts. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article. Pooya Hemami has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.