Burger King’s Stock Looks Tasty

Burger King (NYSE:BKW) has promised consumers since the 1970s that they could "have it your way." Investors are now starting to take notice.

The Miami-based burger chain yesterday reported it earned an adjusted profit of 23 cents per share, two cents higher than analysts expected. Revenue slumped 40% to $275.1 million, beating the $266.6 million consensus Wall Street forecast. Comparable sales in the U.S. and Canada fell 0.3%, which measures revenue growth at locations opened at least a year, as Burger King was hurt by stiff competition from rivals and soft consumer demand. That was worse than the 0.8% gain analysts had expected.

Shares of Burger King, which have surged more than 27% so far this year, rose $1.14, or 5.77%, to $20.85. They have outperformed McDonald's (NYSE:MCD), which rose more than 8.53% so far this year. Wendy's (NYSE:WEN) has done better than both of them, surging more than 58%.

Burger King also leads McDonald's when it comes to taste though Wendy's is favored by consumers over both chains, according to market researcher Technomic. The Home of the Whopper also is hoping that diners will respond favorably to its plan to remodel 40% of its restaurants in the US and Canada by 2015. It also is offering delivery in some markets.

The third largest burger chain is de-emphasizing special or limited-time menu items, which seems like a good idea. Earlier this year, McDonald's scaled back its offerings after the chain realized it was confusing consumers and employees, who weren't familiar with poorer selling items.

Speaking on the company's earnings conference call, CEO Daniel Schwartz said the third-biggest burger chain is "focused on introducing fewer, more impactful products" such as Satisfries, lower calorie French fries, which helped attract diners to its U.S. restaurants in the quarter. The government shutdown had no effect on Burger King's operations.

With a price-to-earnings multiple of about 49, Burger King shares are not cheap, especially since McDonald's market valuation is about 17.2. Wendy's sports an eye-popping 276 multiple. Revenue at Burger King will continue to decline by double-digits for the next few quarters as it converts its company stores to franchises, to be more in line with the rest of the quick service restaurant industry, analysts have said. Earnings per share are expected to be little changed in the current quarter though its 2013 results are expected to show a gain.

The shares are trading above their average 52-week price target, so there is no huge rush to buy the stock. Though McDonald's is far cheaper, the company has disappointed investors lately and shows no signs of improvement. Wendy's should be avoided since it's so expensive. Burger King, though, is a good choice since it has plenty going for it.

Satisfries have gotten some positive albeit lukewarm reviews. Consumer Reports noted, "the consensus was that the Satisfries' flavor is fairly similar to Burger King's regular fries." Business Insider was kinder, saying "… while a fry that feels somewhat gourmet and actually tastes like a potato is nice, we aren't sure Burger King's customers, who are used to the salt, grease, and ketchup, will be willing to make the switch." However, Satisfries may be help Burger King gain an edge in attracting customers concerned about eating healthier, which would be a plus in the hyper-competitive fast food market.

Burger King's strength overseas is helping off-set weakness in the U.S. The chain did well in the Asia Pacific region, where sales of existing restaurants gained 3.7%, outperforming McDonald's and Yum Brands, the parent of KFC and Pizza Hut, which had seen their business soften in the region. Burger King also reported gains in its Europe, Middle East and Africa and Latin America and the Caribbean divisions same-store sales. The Home of the Whopper is planning to expand further ov! erseas.

The Bottom Line

Though Burger King is not going to have everything go its way, the company is certainly headed in the right direction. Satisfries may succeed where other low-calorie fries have failed. The company's overseas prospects seem solid. The only negative on the stock is that it's a little too expensive.

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.

GBR: High-Flying Stock of the Day

 CHARLOTTE, N.C. (Stockpickr) -- Dallas-based New Concept Energy (GBR), formerly known as CabelTel International, is primarily an operator of oil and gas wells, in the U.S. and also owns mineral leases in Ohio and West Virginia. Interestingly, it also leases and operates Pacific Pointe Retirement Inn, a retirement community located in King City, Ore.

At the time of this writing, GBR is up 54% today, trading at $2.22, after trading earlier as high as $2.58.

Fundamentally, the stock indicates at this price level a trailing price-to-earnings ratio of only 2.5. However, a cursory glance reveals no forward guidance provided by the company, so there is no forward P/E figure. Book value per share shows as $3.50.

A glance at the monthly chart shows this stock has undergone several huge and very brief price spikes, historically, with concurrent huge volume spikes, relative to GBR's typically very low volume.

10 Best Clean Energy Stocks To Invest In Right Now

Based solely upon the previous similar occurrences, this current price spike could see significant upside from the current level.

Let the buyer beware, though. As can be seen in the monthly chart, each of these price and volume spikes has been immediately followed by a return to much lower price and volume levels, so I imagine that a number of traders/investors have found themselves trapped in their positions.

So if you decide to try to play this price and volume spike, be nimble.

-- Written by Ben Brinneman in Charlotte, N.C.

Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds for U.S. Bancorp and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.

You can follow some of their free trades and tips on Twitter at @csquaredtrading.

 

Service Sector Growth Jumps in July

Toby Talbot/AP WASHINGTON -- U.S. service firms expanded in July at the fastest pace since February, fueled by a brisker month of sales and a jump in new orders. The increase suggests economic growth could be picking up after a weak first half of the year. The Institute for Supply Management said Monday that its index of service-sector growth rose in July to 56.0, up from 52.2 in June. Any reading above 50 indicates expansion. The survey covers businesses that employ 90 percent of the workforce, such as retail, construction, health care and financial services. A measure of business activity, which includes current sales, rose to 60.4. That's the highest since December and was driven in part by faster home construction. And a gauge of new orders, which indicates sales over the next few months, increased to 57.7 -- a five-month high. Jennifer Lee, senior economist at BMO Capital Markets, noted that 16 of the 18 industries surveyed reported growth in July, "encouraging news for the broader U.S. economy." Paul Dales, senior U.S. economist at Capital Economics, said the July gains in the service sector, along with a solid month of manufacturing growth, suggest the economy is growing at an annual rate of 3 percent in the July-September quarter. That's nearly double the rate in the April-June quarter. One concern is that a measure of employment at service companies fell in July. That echoed last week's government employment report that showed hiring has slowed. Employers added 162,000 jobs last month, the Labor Department said Friday. That's down from 188,000 in June. Nearly all of the hiring took place at service firms. And most new jobs were in low-paying industries -- half were at retail business or restaurants and bars. Growth in the service industry depends largely on consumers, whose spending drives roughly 70 percent of economic activity. On Friday, the government said consumers increased their spending in June at the fastest pace in four month. The economy grew at a tepid 1.7 percent annual rate from April through June. That's up only slightly from the 1.1 percent annual rate in the previous quarter and the third straight month of subpar economic growth. Still, the rise in consumer spending and service activity follows other reports that point to stronger growth. Home sales and prices continue to rise, and Americans' confidence in the economy stayed last month close to a 5½-year high. U.S. factories have begun to rebound after slumping at the start of the year. A separate ISM released last week showed manufacturing activity jumped in July to the highest level in two years, reflecting a surge in new orders, increasing hiring and rising factory output.

Celgene Corporation (CELG): How Q3 Earnings Will Fare?

Celgene Corporation (NASDAQ:CELG) plans to release its third quarter financial results on Oct.24 and will host a conference call and live audio webcast on the same day at 9 a.m. ET to discuss the financial and operational performance.

The Summit, New Jersey-based biotech firm currently markets Revlimid and Thalomid for the treatment of various forms of multiple myeloma, and Vidaza for the treatment of myelodysplastic syndromes. The company also has other key products in the form of Abraxane and Pomalyst.

Wall Street expects Celgene to earn $1.54 a share, according to analysts polled by Thomson Reuters. The consensus estimate implies 19.4 percent growth from last year when CELG earned $1.29 a share.

Celgene earnings have topped the Street view in all of the past four quarters, with upside surprise ranging between 0.89 and 5.6 percent. The consensus estimate gained by 6 cents over the past 90 days, an indication of a bullish trend. In the past 30 days, six analysts have increased their earnings estimate.

Quarterly sales are estimated to grow 15.2 percent to $1.64 billion from $1.42 billion a year-ago. The company has reported double-digit revenue increases for the past four quarters, with an average growth of 13.7 percent.

Revlimid remains the key top line driver with estimated sales of $5.9 billion to $6.1 billion of $10 billion in hematology/oncology revenues forecast for 2017. Obviously, Revlimid sales should be the key focus of the print. Revlimid sales were $1.05 billion for the second quarter, a 13 percent rise from last year.

During the quarter, the company suffered a blow when it discontinued a Revlimid study in previously untreated elderly patients with B-Cell Chronic Lymphocytic Leukemia. However, the drug met its primary endpoint in a late stage study in newly-diagnosed multiple myeloma.

Pomalyst, which was approved earlier in the year for multiple myeloma, is also turning out be a significant contributor to sales. The drug performed remarkably we! ll in the preceding quarter, and investors could be hoping that Pomalyst repeats its positive sales momentum in the third quarter.

Abraxane, a treatment for pancreatic cancer, is another product on which Celgene is betting big. Abraxane's supplementary new drug application for pancreatic cancer was approved by the FDA last month. Investors would focus on the regulatory strategy for Abraxane, whose second quarter sales rose 41 percent to $155 million.

Abraxane could be a potential $1.5 billion to $2 billion cornerstone therapy in solid tumors with label expansion from metastatic breast cancer to non-small-cell lung cancer (NSCLC), and melanoma expected and in combination with novel epigenetic priming agents.

Separately, the company still plans on interim overall survival analysis for abraxane in melanoma. They have also initiated Phase II combination of Abraxane + Ipilumumab in metastatic melanoma. Celgene is also pursuing Abraxane in Phase III triple-negative breast cancer (TNBC) in patients with 1st line breast cancer. Any updates on the drug and these trials would be keenly watched.

Further, investors might look for updates on Apremilast, which is being developed for psoriasis & psoriatic arthritis and is considered the next big bet after Revlimid. Apremilast product for psoriatic arthritis is targeting markets totaling about 7 million patients in the US and EU across multiple indications.

Top Small Cap Stocks To Watch For 2014

On the flip side, the company could report lower sales for Thalomid and Vidaza. Particularly, sales of Vidaza should go down due to generic competition. In September, the FDA has approved Dr Reddy's generic version of Celgene's Vidaza, more than 2 years after the 2011 patent expiration.

In addition, the market may look for any update on 2013's outlook. The company sees adjusted earnings of $5.80 to $5.90 and GAAP EPS of $4.17 to $4.31. Sales ar! e expecte! d to be approximately $6.20 billion. Analysts expect the company to report fiscal 2013 profit per share of $5.98 on revenue of $6.37 billion.

For the second quarter, Celgene reported net income of $478 million or $1.11 a share, compared to $367 million or 82 cents a share, last year. Adjusted net income was $1.52 a share. Second quarter total revenue was $1.60 billion, compared to $1.37 billion the prior year.

Shares of Celgene rose 14 percent since the last quarterly report. The stock, which trades 22 times its consensus 2014 earnings estimate, traded between $71.23 and $161.64 during the past 52-weeks. CELG shares have gained about 100 percent this year.

A Looming Threat for Apple's New iPad Mini

Tech giant Apple (NASDAQ: AAPL  ) dominated technology headlines yesterday when it unveiled the latest updates to its popular iPad line of tablets.

Of course, with the rumor mill abuzz for weeks dissecting every possible upgrade for its two iPads, many of the changes were predicted well in advance. Convergence was one of the primary themes of this round of iPad upgrades. As was widely expected, the larger 9.7-inch iPad got the iPad Mini's bezel, and the iPad Mini received the same Retina display as the larger iPad.

Now, as attention shifts away from the products themselves and towards how many iPads Apple will sell, we're seeing mounting discussion of possible problems for the latest iPad Mini. According to some sources, Apple could be facing a significant shortage of its highly popular 7-inch tablets, which could spell serious trouble for Apple's tablet sales in the quarters to come.

In this video, Fool contributor Andrew Tonner looks at the recent rumors and their possible implications for Apple investors as we head into Apple's most important quarter of the year.

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Markets: 3 Must-Read Stories This Morning

U.S. stocks are roughly unchanged this morning, with the S&P 500 (SNPINDEX: ^GSPC  ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) up 0.34% and 0.33%, respectively, at 10:05 a.m. EDT.

A Bitcoin nonsense
At the beginning of April, I warned investors away from Bitcoin on the basis that "it is fundamentally ill-suited as a store of wealth ... this digital currency could do more than a bit of harm to unknowing speculators." Naturally, its price collapsed shortly thereafter -- not as a result of my writing, of course, but one did not need to be prescient to see that the euphoria surrounding Bitcoin was sowing the seeds of a brutal correction.

Now, the Winklevoss twins, the two Harvard rowers who claimed Mark Zuckerberg had stolen the concept for Facebook from them, have filed a registration statement with the SEC for the Winklevoss Bitcoin Trust, an exchange-traded fund based on the alternative currency. Need I mention that, should this harebrained scheme see the light of day (you never know, with the SEC), investors shouldn't touch it with a rowing oar.

He's back... Icahn dredges up some cash for Dell
On June 19, I wrote that Icahn's zombie offer for Dell (NASDAQ: DELL  ) will die, but Mr. Icahn -- true to his reputation -- is proving hard to kill off. Seeking to reanimate his offer for the company, he informed Dell shareholders and its special committee that he has obtained loan commitments totaling $5.2 billion. Despite his tenacity, my assessment stands: The Silver Lake-Michael Dell offer of $13.65 per share to take the company private will be approved by a shareholder vote on July 18.

Constellation Brands earnings
Beer and spirits company Constellation Brands (NYSE: STZ  ) reported results this morning for the quarter ended May 31. Although the company "missed" with earnings per share of $0.38 (ex-items) against a consensus estimate, investors appear to be shrugging it off. That may have something to do with the fact that the company raised its guidance slightly for 2014 to $2.60-$2.90 from $2.55-$2.85 (although it should be mentioned that this increase has nothing to do with operational improvements or an improved sales forecast, but rather with lower expected interest expense).

Top 5 Growth Companies To Own For 2014

With six of the top 20 import beer brands in the U.S., Constellation looks well positioned for future success, but with shares trading at nearly 19 times the estimate for next 12 months' earnings per share, the price appears to discount much (or all) of that upside.

If you're an investor who prefers returns to rhetoric, you'll want to read The Motley Fool's new free report "5 Dividend Myths... Busted!" In it, you'll learn which stocks provide premium growth and whether bigger dividends are better. Click here to keep reading.

Killer Smog, Overpriced Coffee, & 4 More Things to Know Today

AlamyA Starbucks coffee shop in downtown Beijing, China. • There are prices to be paid for expanding your economy at a gallop, and China pays plenty of them. Today, anyone looking out across that nation's northern cities can see that winter has arrived there -- or rather, they can't, because the smog is so appallingly bad. In the city of Harbin, for example, visibility dropped to around 11 yards Monday, and small-particle pollution soared to 40 times higher than the international safety standard -- a record, by the way, though one we're sure nobody would want to break. It's a pretty clear case of cause and effect: Harbin's city heating systems were fired up on Sunday, and by Monday, you could barely see your hand in front of your face. • While we're on the subject of the world's rising economic superpower, China has a big complaint with Starbucks (SBUX) -- and it's probably the same one you have: Why does it charge so much for coffee? This may shock those of us in the U.S. who feel we're paying through the nose for our lattes, but Starbucks charges more in China than it does elsewhere -- about a third more than in the United States. • But back in America, the biggest news involving your money today is a no-brainer: the continuing glitches in the Obamacare websites. The administration has called out the computer cavalry, expanding the team that's trying to get the system working properly. And President Obama plans to speak publicly about the problems Monday. But in the meantime, the website is producing far more complaints than anything else. • We all know that taking out a student loan requires filling out a raft of complicated paperwork, but paying it back, at least, ought to be simple. Unfortunately, it's not, the advocates over at the Consumer Financial Protection Bureau inform us in a new report. Some loan servicers -- the companies lenders hire to collect payments on private student loans -- make a concerted effort to maximize fees and penalties for borrowers, making the already expensive endeavor of getting an education that much costlier. • The Federal Trade Commission is on the verge of giving the thumbs up to Office Depot's (ODP) merger with Office Max (OMX). Though the marriage of the two big brick-and-mortar office supply stores might seem at first glance to raise an antitrust issue, the FTC doesn't see that as a problem, because Amazon (AMZN) and the rest of the e-commerce crowd will keep competition robust and prices reasonable.

5 Best Bank Stocks To Buy For 2014

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

But before getting to that, a brief introduction is in order. First Niagara traces its roots back to 1870 with the founding of Farmers and Mechanics' Savings Bank. In the intervening years, it's grown into one of the largest regional banks in the Northeastern United States. While it did so, according to Wikipedia, through "the recruitment of new customers, as opposed to the purchase of other firms' assets," the same can't be said of the bank's growth in the time since the financial crisis. The Buffalo, New York-based bank has completed multiple acquisitions over the last five years, culminating in the recent and anticlimactic departure of its now-former CEO John Koelmel. At present, First Niagara has $37 billion in assets and 360 branches in four Northeastern states.

5 Best Bank Stocks To Buy For 2014: State Street Corporation(STT)

State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. The company?s Investment Servicing business line provides products and services, including custody, product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loan and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk, and compliance analytics. This segment also offers shareholder services, which comprise mutual fund and collective investment fund shareholder accounting. Its Investment Management business line provides a range of investment management, investment research, and other related services, such as securities finance; and strategies for managing passive and active financ ial assets, such as enhanced indexing and hedge fund strategies for U.S. and global equities and fixed-income securities. The company serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1832 and is headquartered in Boston, Massachusetts.

Advisors' Opinion:

• [By Dan Dzombak]

  Over the years, the expense ratios on ETFs have come down to absurdly low levels, as the size of their assets under management have grown. State Street's (NYSE: STT  ) SPDR S&P 500 ETF (NYSEMKT: SPY  ) is the largest ETF in the world, with $131 billion in assets under management and an expense ratio of 0.09%. Other funds cost even less, including Vanguard's S&P 500 ETF (NYSEMKT: VOO  ) , which has an expense ratio of just 0.05%.

5 Best Bank Stocks To Buy For 2014: Federal Home Loan Mortgage Corp (FMCC)

Federal Home Loan Mortgage Corporation (Freddie Mac) conducts business in the United States residential mortgage market and the global securities market. The Company operates in three segments: Single-family Guarantee, Investments, and Multifamily. The Single-family Guarantee segment reflects results from the Company's single-family credit guarantee activities. The Investments segment reflects results from the Company's investment, funding and hedging activities. The Multifamily segment reflects results from the Company's investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. The Company conducts its operations in the United States and its territories.

Single-Family Guarantee Segment

In the Company�� Single-family Guarantee segment, it purchases single-family mortgage loans originated by the Company�� seller/servicers in the primary mortgage market. The Company uses the mortgage securitization process to package the purchased mortgage loans into guaranteed mortgage-related securities. The Company guarantees the payment of principal and interest on the mortgage-related security in exchange for management and guarantee fees. The Company�� customers are lenders in the primary mortgage market that originate mortgages for homeowners. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, Housing Finance Agency (HFAs), and savings and loan associations. The Company�� customers also service loans in its single-family credit guarantee portfolio.

Mortgage securitization is a process, by which the Company purchase mortgage loans that lenders originate, and pool these loans into mortgage securities that are sold in global capital markets. The United States residential mortgage market consists of a primary mortgage market that links homebuyers and lenders and a secondary mortgage market that links lenders and investors. The Company part! icipates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities. In the Single-family Guarantee segment, it purchase and securitize single-family mortgages, which are mortgages that are secured by one- to four-family properties. The types of mortgage-related securities it issue and guarantee include PCs, REMICs and Other Structured Securities and Other Guarantee Transactions. The Company also issue mortgage-related securities to third parties in exchange for non-Freddie Mac mortgage-related securities. The non-Freddie Mac mortgage-related securities are transferred to trusts that were specifically created for the purpose of issuing securities, or certificates, in the Other Guarantee Transactions.

Investments Segment

In the Company�� Investments segment, it invests principally in mortgage-related securities and single-family performing mortgage loans, which are funded by other debt issuances and hedged using derivatives. In the Company�� Investments segment, it also provides funding and hedging management services to the Single-family Guarantee and Multifamily segments. The Company�� customers for its debt securities predominantly include insurance companies, money managers, central banks, depository institutions, and pension funds. The Company funds its investment activities by issuing short-term and long-term debt. The Company�� PCs are an integral part of its mortgage purchase program. The Company�� Single-family Guarantee segment purchases many of its mortgages by issuing PCs in exchange for those mortgage loans in guarantor swap transactions. The Company also issue PCs backed by mortgage loans that it purchased for cash.

Multifamily Segment

The Company�� multifamily segment issues Other Structured Securities, but does not issue REMIC securities. The Company multifamily segment also enters into other guarantee commitments for mult! ifamily H! FA bonds and housing revenue bonds held by third parties. The Company acquires a portion of its multifamily mortgage loans from several large seller/servicers.

The Company competes with Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), Mae Federal Housing Administration/the United States Department of Veteran Affairs (FHA/VA) and Federal Home Loan Bank (FHLB).

Advisors' Opinion:

• [By Shayndi Raice]

  The Department of Justice and Bank of America(BAC) will go head-to-head Tuesday morning as the government attempts to hold the bank liable for allegedly misrepresenting the quality of loans sold to mortgage-finance firms Fannie Mae(FNMA) and Freddie Mac(FMCC).

• [By Lisa Abramowicz]

  Mortgage financiers Fannie Mae (FNMA) and Freddie Mac (FMCC) were placed into government conservatorship, insurer American International Group Inc. agreed to a U.S. takeover to avert collapse, Merrill Lynch & Co. was compelled to sell itself to Bank of America Corp. and automaker General Motors Corp. faced insolvency.

Top 5 Casino Stocks To Own For 2014: Comerica Inc (CMA)

Comerica Incorporated (Comerica) is a financial services company. Comercia operates in four segments: the Business Bank, the Retail Bank, Wealth Management and the Finance Division. As of December 31, 2011, Comerica owned two active banking and 49 non-banking subsidiaries. The Company's Business Bank meets the needs of middle market businesses, multinational corporations and governmental entities by offering products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. On July 28, 2011, Comerica acquired Sterling Bancshares, Inc. (Sterling), a bank holding company.

The Company's Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. In addition to a range of financial services provided to small business customers, this business segment offers a range of consumer products, including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgage loans.

Wealth Management offers products and services consisting of fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and brokerage services. This business segment also offers the sale of annuity products, as well as life, disability and long-term care insurance products. The Finance segment includes Comerica�� securities portfolio and asset and liability management activities. This segment is engaged in managing Comerica�� funding, liquidity and capital needs, performing interest sensitivity analysis and executing strategies to manage Comerica�� exposure to liquidity, interest rate risk and foreign exchange risk.

The Other category includes discontinued operations, the income and expense impact of equity an! d cash, tax benefits not assigned to specific business segments and miscellaneous other expenses of a corporate nature. In addition, Comerica delivers financial services in its four markets: Midwest, Western, Texas and Florida. The Midwest market consists of Michigan, Ohio and Illinois. The Western market consists of the states of California, Arizona, Nevada, Colorado and Washington. California operations represent the the Western market. The Texas and Florida markets consist of the states of Texas and Florida, respectively. Other Markets include businesses with a national perspective, Comerica�� investment management and trust alliance businesses, as well as activities in all other markets, in which Comerica has operations, except for the International market. The International market represents the activities of Comerica�� international finance division, which provides banking services to foreign-owned, North American-based companies and to international operations of North American-based companies.

Advisors' Opinion:

• [By Monica Gerson]

  Comerica (NYSE: CMA) is estimated to report its Q3 earnings at $0.71 per share on revenue of $616.42 million.

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

• [By The Part-time Investor]

  The following stocks met the criteria in January of 2008 and were put into the initial portfolio:

  Abbot Labs (ABT)Advanced data processing (ADP)Associated Banc-Corp (ASBC)Bank of America (BAC)BB&T Corp. (BBT)Bemis Company (BMS)Anheuser Busch (BUD)The Chubb Corporation (CB)Clorox (CLX)Comerica Inc. (CMA)Diebold Inc. (DBD)Emerson Electronics (EMR)First Dollar Corp. (FDO)First Third BanCorp. (FITB)Gannett Co, Inc. (GCI)General Electric (GE)Hershey (HSY)Illinois Tools Works (ITW)Johnson and Johnson (JNJ)Leggett and Platt (LEG)Eli Lilly (LLY)La-Z-Boy (LZB)McDonald's (MCD)Marsh and Ilsley (MI)M&T Bancorp (MTB)PepsiCo (PEP)Pfizer (PFE)Procter & Gamble (PG)Pentair Ltd. (PNR)Regions Financial Corp. (RF)Rohm and Haas (ROH)RPM International (RPM)Sherwin Williams (SHW)Sysco Corp. (SYY)UDR Inc. (UDR)

  Historical quotes were taken from Yahoo Finance. $10,000 was put into each position, to the nearest whole share, so a total of $349,262.89 was invested. From 1/15/08 through 5/16/13 all dividends were reinvested back into the stock that paid them. If a dividend cut was announced, that stock was sold on the ex-div date of the new, lower dividend.

• [By Shauna O'Brien]

  Goldman Sachs announced on Tuesday that it has lifted its rating on Comerica Incorporated (CMA) to “Neutral.”

  The firm has upgraded CMA from “Sell” to “Neutral,” and has raised the company’s price target from $38 to $42. This price target suggests a 2% upside from the stock’s current price of $40.83.

  An analyst from the firm noted: “The market has shown willingness to price the shares at a premium based on CMA�� absolute rate upside, which we do not expect to change much over time.”

  “That said, near-term expectations could be at risk given the ~4% decline in loans in 3Q, which if it continues could weigh on its longer-term earnings profile,” the analyst added.

  Looking ahead, the firm has lowered its FY2013 earnings estimates from $2.85 to $2.81 per share. FY2014 estimates have been reduced from $2.95 to $2.90 per share and FY2015 estimates of $3.30 per share were maintained.

  Comerica shares were mostly flat during pre-market trading Tuesday. The stock is up 35% YTD.

• [By Rich Duprey]

  Financial-services specialist�Comerica (NYSE: CMA  ) announced yesterday its third-quarter dividend of $0.17�per share, the same rate it's paid for the past two quarters after raising the payout 13% from $0.15 per share.

5 Best Bank Stocks To Buy For 2014: Western Alliance Bancorporation (WAL)

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

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

Lending Activities

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

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

Investment Activities

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

Sources of Funds

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

Financial Products and Services

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

Advisors' Opinion:

• [By Investment Biker]

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

5 Best Bank Stocks To Buy For 2014: Federal National Mortgage Association (FNMA.OB)

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

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

Single-Family Business

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

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

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

Multifamily Mortgage Business

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

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

Capital Markets

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

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

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

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

Want Cheaper Healthcare? Just Make Less Money

Over the weekend, the San Francisco Chronicle delivered a stunning message that discourages and demotivates American workers from earning more income and promotes greater government dependency.

It's all thanks to sloppy incentives created by the Affordable Healthcare Act.

The Chronicle reported that Karen Pollitz, a senior fellow at the Kaiser Family Foundation, said last week that workers in California should consider reducing their 2014 income and work hours in order to qualify for Obamacare subsidies.

"If they can adjust (their income), they should," said Pollitz. "It's not cheating, it's allowed."

For a California family to fall under the 400% of poverty-level ceiling (the threshold to qualify for government assistance), the family's net income must be at or below $62,040. However, if they make just $1 more than this amount, they will not qualify for thousands of dollars in public assistance to purchase healthcare.

Earning $62,041 would trigger a massive increase in taxes and cost of healthcare premiums for the family.

In progressive terms, that amounts to a loss of a subsidy worth more than $10,000 each year for a family of four.

This is all part of a perverse welfare system that has for decades discouraged economic advancement.

As these Obamacare incentives now begin to creep into the lives of the middle class, the government is playing an extremely dangerous game with state dependence. This will have a staggering impact on the economic health of the middle class.

Incremental Income Displacement

For decades now, a debate has swelled on the influence of welfare on the motivations of Americans to find work or advance their careers to the next level. Some critics have argued that welfare discourages work and enables some to live off the production of their neighbors.

Meanwhile, supporters of the system believe it is a vital safety net that prevents Americans from living in squalor and limits economic inequality.

While the welfare system may have the best intentions, it is poorly designed. It's a flawed system that creates disincentives for workers to climb the ladder of economic development.

Then individuals decide to stay at lower-paying jobs to maintain welfare benefits instead of taking better pay, more responsibility, and freeing themselves of government dependence - a line known as the "welfare cliff."

Just take this example from Pennsylvania...

Gary Alexander (the state's secretary of Public Welfare) explained in 2012 that a single mother is better off making $29,000 than she is making $69,000 thanks to the massive influx of public programs available to support her and two children.

At $29,000 in gross income, she will end up with $57,327 in pay and social benefits. But as she begins to increase her gross income (or take-home pay), those benefits erode, and her net income and benefits begin to shrink.

She would not make the same amount of money to pay her own way until she adds another $40,000 in gross pay. In fact, her net income at $69,000 is still lower than the benefit-laden salary above since she would only have $57,045 after taxes.

The welfare-related benefits remove the incentive for her to take a new, better-paying job - even if the new position offers greater career-building skills and development. That's how the flawed welfare system gets people hooked to government programs.

Now Obamacare will allow this problem to slowly creep into the economic decisions of the middle class. This will trigger a serious impact on entrepreneurialism, the public debt, and growth in the economy.

Obamacare's Creeping Terror on the Middle Class

Pollitz encouraged any family thinking of getting subsidized health insurance from Covered California in 2014 to cut their incomes down to qualify. But Pollitz failed to understand the consequences of her suggestion...

Best Clean Energy Stocks To Watch Right Now

When Americans make less money, they contribute less to the public treasury. However, these same Americans will be pulling thousands of dollars out of the pool and placing a greater strain on available resources.

Over time, this will create a perpetual downward spiral where more is being consumed than being produced. The only way to stop-gap the problem is to borrow more, tax more, and spend more, while politicians pretend that the collective drain on society isn't a problem.

Americans will have to make the irrational economic decision to pay more and attempt to earn more money through extra work if the nation wishes to survive the consequences of this law. It is all part of an ongoing trend that continues to plague society as we move from a productive class to a privileged class, where people expect more money and benefits for less work.

In the United States, we used to have the world's greatest entrepreneurial class in the world. We built bridges and buildings and businesses.

Now, we just reach into one another's pocket.

And Obamacare is a shining example of the perverse incentives Congress continues to peddle.

Go here to find out what Obamacare will do to your wallet - and how to protect your money today.

Why MercadoLibre's Long-Term Prospects Look Great

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Latin American online auction operator MercadoLibre (NASDAQ: MELI  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at MercadoLibre and see what CAPS investors are saying about the stock right now.

MercadoLibre facts

Headquarters (founded)	Buenos Aires, Argentina (1999)
Market Cap	$5.1 billion
Industry	Internet software
Trailing-12-Month Revenue	$392.6 million
Management	Co-Founder/Chairman/CEO Marcos Galperin CFO Pedro Arnt
Return on Equity (average, past 3 years)	38.2%
Cash/Debt	$197.7 million / $161.5 thousand
Dividend Yield	0.5%
Competitors	Amazon.com eBay

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

On CAPS, 94% of the 1,146 members who have rated MercadoLibre believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, totalFoolishness, succinctly summed up the MercadoLibre bull case for our community:

This South American Amazon like company is partially owned by eBay because eBay realized that they understood their market a lot better than eBay ever could. I have owned this company for over year and I believe that they are proceeding along a course that is moving along with the adoption of the Internet and e-commerce in most of the large South American nations. I think in 10 years this company's market cap will be 4 to 5 times what it is now.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, MercadoLibre may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Lower Medicare Reimbursement Rates Hamper UnitedHealth Group's Q3

UnitedHealth Group (NYSE: UNH  ) , the United States' largest health insurance company, kicked off earnings season for insurers this morning with more of a whimper than a bang.

For the quarter, UnitedHealth reported a 12% increase in year-over-year quarterly revenue to $30.6 billion while delivering a modest 1% increase in profits to an adjusted $1.53 per share, right in-line with Wall Street's EPS expectations.

In the positives column, UnitedHealth added 275,000 more customers to its health network during the quarter and, thanks largely to its acquisition of Brazil's Amil, it has boosted enrollment by 4.35 million members year to date.

Perhaps more impressive were gains seen at its subsidiary Optum, which provides data analytics to the health care industry to improve business performance. Revenue at this division grew by 33% with a big boost from its pharmacy segment, which saw sales rise 41% to $6.3 billion.

But with a history of recent earnings beats, investors instead focused on UnitedHealth's narrowed full-year EPS forecast of $5.40-$5.50, which is a fraction below current estimates calling for $5.51 in full-year earnings.

At the heart of its subdued profit growth this quarter are lower Medicare reimbursements related to its Medicare Advantage members (plans designed primarily for seniors to help cover supplemental costs that Medicare does not). The Centers for Medicare and Medicaid Services has made no secret about its desire to lower reimbursement rates over the long run in order to reduce government-sponsored health aid under Obamacare.

Clearly this was evident with UnitedHealth's medical loss ratio -- a health care industry measure of margin that takes into accounts premiums collected versus expenses for medical care -- rising 160 basis points to 80.6% during the quarter. UnitedHealth also noted that year-over-year cost comparisons were difficult due to exceptionally low costs in the year-ago period, although it insists healthy cost controls remain in place.

Shares of the company were down more than 5% as of the early afternoon.

link

Hot Biotech Stocks For 2014

Nine times out of ten, I'd be hesitant to be bullish on a stock that's already made a 57% run up in just five months. Neuralstem, Inc. (NYSEMKT:CUR) is that one out of ten instances though, where there's plenty more room ahead to keep on running. In fact, I think CUR could almost double in value from where it is now before the rally effort ran out of gas.

For those to familiar, CUR is a biotech stock. Its claim to fame is its stem cell research specifically aimed to treatment nervous system disorders and damage. Neuralstem is the only company with a hippocampus stem cell line, which in simplest terms means its R&D is directly working on creating new neurons. It's an entirely new approach, but one with tremendous promise. And, investors are rightfully encouraged by the fact that the FDA approved this hippocampus stem cell platform's work so far by green lighting the company's ALS trials. That clinical test is now in Phase 2, and continues to hold promise. In fact, it's the enthusiasm regarding Phase 2 testing that jolted the stock back into a bullish mode late last year.

Hot Biotech Stocks For 2014: Neoprobe Corporation(NEOP)

Neoprobe Corporation, a biomedical company, engages in the development and commercialization of precision diagnostics that enhance patient care and improve patient benefit. The company is developing and commercializing targeted agents aimed at the identification of occult (undetected) disease. Neoprobe?s two lead radiopharmaceutical agent platforms, Lymphoseek and RIGScan are intended to help surgeons better identify and treat certain types of cancer. Lymphoseek is a diagnostic imaging agent intended for radiolabeling and administration in radiodetection and visualization of the lymphatic system draining the region of injection for delineation of the lymphatic tissue; and RIGScan is an intraoperative biologic targeting agent consisting of a radiolabeled murine monoclonal antibody. The company has a biopharmaceutical development and supply agreement with Laureate Biopharmaceutical Services, Inc. to support the initial evaluation of the viability of the CC49 master working c ell bank, as well as the initial steps in re-validating the commercial production process for the biologic agent used in RIGScan CR. The company was founded in 1983 and is based in Dublin, Ohio.

Hot Biotech Stocks For 2014: ARIAD Pharmaceuticals Inc.(ARIA)

ARIAD Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small-molecule drugs for the treatment of cancer. The company?s lead cancer product, ridaforolimus is being studied in multiple clinical trials in patients with various types of cancers, including metastatic sarcomas, breast cancer, endometrial cancer, prostate cancer, and non-small cell lung cancer. Its product pipeline also includes ponatinib, a pan BCR-ABL inhibitor in phase 2 clinical trial for applications in various hematological cancers and solid tumors; and AP26113, an anaplastic lymphoma kinase inhibitor in preclinical studies for the treatment of various cancers, including non-small cell lung cancer, lymphoma, and neuroblastoma. In addition, the company focuses on a drug discovery program centered on small-molecule therapies that are molecularly targeted to cell-signaling pathways implicated in cancer. Further, it licenses its ARGENT cell-sign aling regulation technologies to pharmaceutical and biotechnology companies to develop and commercialize therapeutic products, and to conduct drug discovery research. The company has collaboration and license agreements with Merck & Co., Inc. for the development, manufacture, and commercialization of ridaforolimus; and license agreements with Medinol Ltd. and ICON Medical Corp. to develop and commercialize stents and other medical devices to deliver ridaforolimus to prevent restenosis of injured vessels. ARIAD Pharmaceuticals, Inc. was founded in 1991 and is based in Cambridge, Massachusetts.

Advisors' Opinion:

• [By Sean Williams]

  This week's duck-and-cover
  This week's disaster du jour 00 and what a disaster it was -- is Ariad Pharmaceuticals (NASDAQ: ARIA  ) which plummeted as much as 77% at one point after updating investors to new developments with its only FDA-approved drug and primary pipeline candidate, Iclusig. According to Ariad's press release, follow-up studies of patients taking Iclusig demonstrated a higher risk for arterial thrombosis, causing Ariad and the FDA to place a clinical hold on all new clinical trial patients and cut the dosing in half for all remaining trial patients. Investors have been expecting Iclusig to gain considerably more indications in treating chronic myeloid leukemia, the most common type of blood cancer in adults, but toxicity issues are certainly going to make that difficult to achieve now.

• [By Jake L'Ecuyer]

  Ariad Pharmaceuticals (NASDAQ: ARIA) shares tumbled 6.52 percent to $5.45 Barclays downgraded the stock from Overweight to Underweight and lowered the target price from $25 to $4.�Bank of America also downgraded the stock from Buy to Neutral.�

Best Performing Stocks For 2014: Merck & Company Inc.(MRK)

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company?s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women's health and endocrine. This segment also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines. Its Animal Health segment discovers, develops, manufactures, and markets animal health products. This segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fish. The Consumer Care segment develops, manufac tures, and markets over-the-counter, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment?s foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Advisors' Opinion:

• [By Dan Carroll]

  That diabetes market isn't just attractive for market leader Novo; after all, rival Merck (NYSE: MRK  ) boasts one of the world's best drugs in blockbuster diabetes therapy Januvia that sold more than $5 billion last year. Merck has already seen the winds shift in China's direction: The company has opened three manufacturing plants in the nation already as of April, part of Merck's commitment in 2011 to invest $1.5 billion in China. Merck's a big and diversified enough company that other factors will influence its stock more in the short run -- particularly patent-related sales losses for blockbusters such as Singulair -- but in the long term, its China moves could pay off in a big way.

• [By Sean Williams]

  What COPD sufferers gain in choices, they lose in potentially serious side effects from these drugs. Tudorza, for example, can cause paradoxical bronchospasm and new or worsened acute narrow-angle glaucoma. An even more striking example is Merck's (NYSE: MRK  ) Foradil inhaler, which the FDA approved in 2005, but which also comes with a black box warning that some patients had a severe exacerbation of their asthma symptoms while on the inhaler.

Hot Biotech Stocks For 2014: Nektar Therapeutics(NKTR)

Nektar Therapeutics, a clinical-stage biopharmaceutical company, engages in developing a pipeline of drug candidates that utilize its PEGylation and polymer conjugate technology platforms. The company?s product pipeline consists of drug candidates across various therapeutic areas, including oncology, pain, anti-infectives, anti-viral, and immunology. Its research and development activities involve small molecule drugs, peptides, and other potential biologic drug candidates. The company?s proprietary drug candidates in clinical development comprise NKTR-118, a peripheral opioid antagonist, which has completed Phase II clinical trail for the treatment of opioid-induced constipation; BAY41-6551 that has completed Phase II clinical trail to treat gram-negative pneumonias; NKTR-102, a topoisomerase I inhibitor-polymer conjugate, which is in Phase II clinical trail for multiple cancer indications, including breast, ovarian, and colorectal; and NKTR-105 that is in Phase I clinica l trail to treat solid tumors. Its preclinical products consists of NKTR-119 (Opioid/NKTR-118 combinations) for the treatment of pain; NKTR-181 (abuse deterrent, tamper-resistant opioid) to treat pain; NKTR-194 (non-scheduled opioid) for the treatment of mild to moderate pain; NKTR-171 (tricyclic antidepressant) to treat neuropathic pain; and NKTR-140 (protease inhibitor candidate) to treat HIV. The company has collaboration with Bayer Healthcare LLC to develop BAY41-6551 (NKTR-061, Amikacin Inhale), which is an inhaled solution of amikacin, an aminoglycoside antibiotic; and a license agreement with AstraZeneca AB for the development and commercialization of Oral NKTR-118 and NKTR-119. In addition, Nektar Therapeutics has various license, manufacturing, and supply agreements for its technology with biotechnology and pharmaceutical companies, such as Affymax, Amgen, Baxter, Roche, Merck, Pfizer, and UCB Pharma. The company was founded in 1990 and is headquartered in San Franc isco, California.

Advisors' Opinion:

• [By Luke Jacobi]

  Nektar Therapeutics (NASDAQ: NKTR) were down 23.90 percent to $10.54 after the company reported that the results from Phase 2 trial of NKTR-181 missed primary efficacy endpoint.

Hot Biotech Stocks For 2014: Bioanalytical Systems Inc.(BASI)

Bioanalytical Systems, Inc. provides drug discovery and development services for pharmaceutical, biotechnology, academic, and government organizations primarily in North America, the Pacific Rim, and Europe. The company operates in two segments, Contract Research Services and Research Products. The Contract Research Services segment offers various services, including product characterization, method development, and validation; bioanalytical testing to measure drug and metabolite concentrations in complex biological matrices; stability testing to establish and confirm product purity, potency, and shelf life; in vivo sampling services for the continuous monitoring of chemical changes in life; and pharmacokinetic and safety testing services, as well as provides screening and pharmacological testing, preclinical safety testing, formulation development, regulatory compliance, and quality control testing services. The Research Products segment offers analytical products compris ing liquid chromatographic and electrochemical instruments with associated accessories; in vivo sampling products, such as Culex family of automated in vivo sampling and dosing instruments; and Vetronics? products consisting of instruments and related software to monitor and diagnose cardiac function, and measure other vital physiological parameters in cats and dogs. The company was founded in 1974 and is headquartered in West Lafayette, Indiana.

Hot Biotech Stocks For 2014: Osiris Therapeutics Inc.(OSIR)

Osiris Therapeutics, Inc., a stem cell company, focuses on the development and marketing of therapeutic products to treat various medical conditions in the inflammatory, autoimmune, orthopedic, and cardiovascular areas. It operates in two business segments, Therapeutics and Biosurgery. The Therapeutics segment focuses on developing biologic stem cell drug candidates from a readily available and non-controversial source, adult bone marrow. The Biosurgery segment works to harness the ability of cells and novel constructs to promote the body's natural healing. This segment focuses on developing biologic products for use in surgical procedures. The company?s lead biologic drug candidate is Prochymal, which is in phase 2 and 3 clinical trails for various indications, including acute graft versus host disease (GvHD), Crohn's disease, acute myocardial infarction, type 1 diabetes, pulmonary disease, and gastrointestinal injury resulting from radiation exposure. Its biologic drug candidates also include Chondrogen, a preparation of adult mesenchymal stem cells that is in phase 2 clinical trials for osteoarthritis and cartilage protection. The company has collaboration agreements with Genzyme Corporation for the development and commercialization of Prochymal and Chondrogen in various countries except in the United States and Canada. It also has a partnership with Juvenile Diabetes Research Foundation for the development of Prochymal as a treatment for the preservation of insulin production in patients with newly diagnosed type 1 diabetes mellitus. Osiris Therapeutics, Inc. was founded in 1992 and is headquartered in Columbia, Maryland.

Advisors' Opinion:

• [By Alexander Maxwell]

  One of the companies attempting to develop a better treatment for chronic diabetic foot ulcers is Osiris Therapeutics� (NASDAQ: OSIR  ) . Earlier this month, Osiris shares more than doubled as the company announced positive data for its CDFU drug Grafix. The study results were very impressive to say the least; the study was stopped early due to the overwhelming efficacy exhibited by the treatment. A main highlight is the fact that 62% of Grafix patients had their wound closed at 12 weeks, compared to only 21% of patients using conventional methods. Clearly, the efficacy in this endpoint was overwhelming. Grafix also achieved all of the secondary endpoints for the trial, and more importantly demonstrated a relatively benign safety record.�

• [By Maxx Chatsko]

  Additionally, stem cell therapies have remained elusive as the industry's ultimate Holy Grail. Osiris (NASDAQ: OSIR  ) received Canadian approval for the world's first stem cell drug, Prochymal, for children battling acute graft-versus-host disease, or GvHD, last year. The approval meant more symbolically than to the bottom line, but it definitely put the potential of stem cells front and center for investors.

Hot Biotech Stocks For 2014: Dendreon Corporation(DNDN)

Dendreon Corporation, a biotechnology company, engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. The company offers active cellular immunotherapy and small molecule product candidates to treat various cancers. Its product candidates comprise Provenge (sipuleucel-T), an active cellular immunotherapy for the treatment of metastatic, castrate-resistant prostate cancer; DN24-02, an investigational active immunotherapy for the treatment of patients with bladder, breast, ovarian, and other solid tumors expressing HER2/neu; and TRPM8, a small molecule agonist to transient receptor potential ion channel, for multiple cancers. The company also has a range of products in preclinical studies, which include Carcinoembryonic antigen for the treatment of lung, colon, and breast cancer; and Carbonic AnhydraseIX for the treatment of kidney cancer. Dendreon Corporation was founded in 1992 and is headquartered in S eattle, Washington.

Advisors' Opinion:

• [By Sean Williams]

  Today, I'd like to add a familiar name to the list and discuss why Dendreon (NASDAQ: DNDN  ) should be raising the white flag and looking for marketing assistance.

Hot Biotech Stocks For 2014: Algeta ASA (ALGETA)

Algeta ASA is a Norway-based biotechnology company engaged in the development of targeted cancer therapies based on its alpha-pharmaceutical platform. The Company�� principal product is Alpharadin for the treatment of bone metastases resulting from castration-resistant prostate cancer. The Company�� pipeline also includes Alpharadin for the treatment of bone metastases resulting from breast cancer, a combination of Alpharadin with Taxotere for the treatment of bone metastases resulting from prostate cancer and Thorium-227 showing various cancer indications. The Company develops Alpharadin in a development and marketing cooperation with Bayer Schering Pharma. Algeta ASA is active through the two wholly owned subsidiaries, Algeta Innovations AS and Algeta UK Limited. On April 12, 2012, the Company announced that it estabilished a subsidiary active in the United States, Algeta US.

How To Profit From ObamaCare

With Washington waging a fight to the death over the future of Obamacare, confusion is everywhere. Individuals are trying to understand the implications of the law on their healthcare, while investors are trying to figure out how it will affect their portfolio.

Of course, the first thing investors have to do is decide whether they believe the program will survive as designed or whether Republicans will be able to delay or repeal chunks of the bill. Then investors must sort through all the messy details in the legislation to identify likely winners and losers.

The starting point for the legislation is that 32 million uninsured Americans will be required to purchase insurance or face penalties, and health insurers will no longer be able to deny coverage based on applicants' health. A lot more people will receive a lot more health care.

That means more costs for the federal government: $630 billion to expand Medicaid. And more government revenues: big Pharma will subsidize Medicaid and Medicare by about $80 billion over 10 years through rebates on prescription drugs; branded drugs will face new excise taxes and discounts; and makers of medical devices will pay a new 2.3% tax on products sold in the U.S.

Hot Performing Stocks To Watch For 2014

To try to "bend the curve," a term used to describe slowing growth in healthcare costs, Obamacare provides incentives to use generic drugs and avoid the more expensive branded versions. To try to make healthcare more effective, Obamacare requires that all medical records be electronic by 2014. Congress has set aside $19 billion to help hospitals and doctors convert.

The changes imposed by this law will create some big winners and some big losers, and we created two motifs—thematically weighted baskets of stocks—that simplify the choices for investors. One is appropriately called Obamacare: it is designed to provide exposure to companies that will gain if the law rolls out as planned. The second is called Repeal Obamacare focuses on companies that stand to lose under Obamacare and, as a result, gain if sections are delayed or repealed.

So far, the Obamacare motif is ahead with a gain of 32.8% year-to-date, while the Repeal Obamacare motif has gained 14.3% versus 17.8% for the S&P 500 over the same time period.

Google Plans to Show Users' Photos, Names in Ads

Marcio Jose Sanchez/AP Google wants your permission to use your name, photo and product reviews in ads that it sells to businesses. The Internet search giant is changing its terms of service starting Nov. 11. Your reviews of restaurants, shops and products, as well as songs and other content bought on the Google Play store could show up in ads that are displayed to your friends, connections and the broader public when they search on Google. The company calls that feature "shared endorsements." Google (GOOG) laid out an example of how this could happen: "Katya Klinova," her face and five-star review appear underneath an ad for Summertime Spas. You can opt out of sharing your reviews. Google said Friday that the name and photo you use in its social network, Google Plus, is the one that would appear in the ad. Google has said the social network has 390 million active users per month. "We want to give you -- and your friends and connections -- the most useful information. Recommendations from people you know can really help," the company said in an explanation of the changes. The Mountain View, Calif., company already had a similar setting for its "+1" button, which it introduced in 2011. It had experimented temporarily with putting "+1" endorsements with users' identities in ads, but it hasn't had them up recently. The company said Friday that the choice a user made about allowing for "+1" endorsements would be the default setting for shared endorsements. Also, if a user chooses to limit an endorsement to certain circles of friends or contacts, that restriction will be respected in any ads that use the endorsement.

Best Insurance Companies To Invest In 2014

Auto sales are booming and that�� good news for large cap auto insurer�the Progressive Corporation (NYSE: PGR) along with small cap auto insurers Safety Insurance Group, Inc (NASDAQ: SAFT) and�Mercury General Corporation (NYSE: MCY) as they offer income to yield hungry investors as well as income in the form of dividends. Specifically, a Yahoo! Autos blog recently noted that last month, automakers sold 1.5 million new vehicles for the highest rate in years with�most industry forecasters expecting sales to�return to the level they hit before the 2008 recession of 16 million vehicles a year. The blog post then went on to note the three forces driving auto sales:

Retirees (who have predictable income from Social Security) Cheap loans Lower standards for borrowers

Since auto insurance is a necessity, its worth�taking a closer look at auto insurance stocks like the Progressive Corporation, Safety Insurance Group and Mercury General Corporation that offer some income to offset your auto insurance rates.

Best Insurance Companies To Invest In 2014: W.R. Berkley Corporation(WRB)

W. R. Berkley Corporation, an insurance holding company, operates as commercial lines writers in the property casualty insurance business primarily in the United States. The company operates in five segments: Specialty, Regional, Alternative Markets, Reinsurance, and International. The Specialty segment underwrites third-party liability risks, primarily excess, and surplus lines, including premises operations, professional liability, commercial automobile, products liability, and property lines. The Regional segments provide commercial insurance products to small-to-mid-sized businesses, and state and local governmental entities primarily in the 45 states of the United States. The Alternative Markets segment develops, insures, reinsures, and administers self-insurance programs and other alternative risk transfer mechanisms. This segment offers its services to employers, employer groups, insurers, and alternative market funds, as well as provides a range of fee-based servic es, including consulting and administrative services. The Reinsurance segment engages in the underwriting property casualty reinsurance on a treaty and a facultative basis, including individual certificates and program facultative business; and specialty and standard reinsurance lines, and property and casualty reinsurance. The International segment offers personal and commercial property casualty insurance in South America; commercial property casualty insurance in the United Kingdom and continental Europe; and reinsurance in Australia, Southeast Asia, and Canada. The company was founded in 1967 and is based in Greenwich, Connecticut.

Advisors' Opinion:

• [By Rich Duprey]

  Insurance holding company�W.R. Berkley� (NYSE: WRB  ) �announced yesterday�its second-quarter dividend of $0.10 per share, an 11% increase over the $0.09 per share it paid last quarter.

Best Insurance Companies To Invest In 2014: American International Group Inc.(AIG)

American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.

Advisors' Opinion:

• [By Holly LaFon]

  Berkowitz�� top holdings continue to be: American International Group Inc. (AIG), AIA Group Ltd. (AAIGF.PK), Sears Holdings Corp. (SHLD), Berkshire Hathaway Inc. (BRK.B) and Brookfield Asset Management Inc. (BAM).

• [By Tim Travis]

  The history of American business is rich with stories of redemption and perseverance. For decades, no stars shined brighter than AIG (AIG) under the leadership of Hank Greenberg, but in the course of just a few months, the company was left for dead. Few CEOs have impressed me more than Robert Benmosche, who stood up to the government, for the purpose of being able to rebuild the business so that taxpayers could be repaid for providing what equated to debtor in possession financing to the company. AIG has executed on that repayment and so much more, but the pervasive environment of negativity pertaining to financial companies, and the blame game for years gone by continues to mask what I would argue is one of the great restructurings in American business history. While AIG's stock continues to trend higher, there is a long runway to go with a very large margin of safety, and the company remains my top investment opportunity.

• [By WALLSTCHEATSHEET.COM]

  AIG is an international insurance company that is now known as a�non-bank systemically important financial institution and subject to Dodd-Frank regulations. The stock has been steadily trending higher but is now up against a selling zone where it may spending some time before making its next move. Over the last four quarters, earnings have mostly been decreasing while revenue figures have been mixed, although investors in the company have generally been pleased with what they’ve heard during earnings announcements. Relative to its peers and sector, AIG has been a year-to-date performance leader. WAIT AND SEE what AIG does this coming quarter.

Top 5 Growth Companies To Watch For 2014: Old Republic International Corporation(ORI)

Old Republic International Corporation, through its subsidiaries, provides various insurance and mortgage guaranty products in North America. The company operates in three segments: General Insurance, Mortgage Guaranty, and Title Insurance. The General Insurance segment provides liability insurance coverages to businesses, government, and other institutions in commercial construction, forest products, energy, general manufacturing, and financial services industries; and transportation, including trucking and general aviation industries. It provides various insurance products, such as automobile extended warranty, aviation, commercial automobile insurance, general liability, home warranty, inland marine, travel accident, and workers? compensation, as well as liability coverage for claims arising from the acts of owners or employees, and protection for the physical assets of businesses. This segment also offers financial indemnity products, such as consumer credit indemnity , errors and omissions/directors and officers, guaranteed asset protection, and surety, as well as bonds that cover the exposures for losses of monies, or debt and equity securities due to acts of employee dishonesty. The Mortgage Guaranty segment insures first mortgage loans, primarily on residential properties incorporating one-to-four family dwelling units to mortgage bankers, brokers, commercial banks, and savings institutions. The Title Insurance segment provides lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. It also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and services related to real estate transfers and loan transactions. Old Republic International Corporation markets its products directly, as well as through insurance agents and brokers. The company was founded in 1887 and is based in Chi cago, Illinois.

Advisors' Opinion:

• [By Holly LaFon]

  Prem Watsa is renowned for his long track record of outstanding returns using Buffett-style value investing through his worldwide insurance and reinsurance company, Toronto-based Fairfax Financial Holdings. His five-year cumulative is 176.4%, compared to 12.2% for the S&P 500. Most recently, he made headlines for making a large contrarian bet on Research In Motion (RIMM) and joining its board in his first activist investing foray. In the fourth quarter, he added to this position. He also added to his positions in Citigroup Inc. (C), Old Republic Corp. (ORI) and Johnson & Johnson (JNJ) and dramatically reduced one of his largest holdings, Dell (DELL). As a Ben Graham devotee, Watsa looks past short-term fluctuations in price to the underlying strength of a business. His stance on the economy, as of September and October 2011, was that he believed the U.S. was showing Depression-level interest rates and deficits, but he still liked some stocks and would hedge his exposure, he told CFA Institute Magazine.

• [By Fredrik Arnold]

  Ten Champion dogs that promised the biggest dividend yields into July included firms representing five of nine market sectors. The top stocks were three of five from the financial sector: Universal Health Realty Trust (UHT); Mercury General Corp. (MCY); Old Republic Int'l (ORI). The other two financial firms, HCP Inc., and United Bankshares Inc. (UBSI), placed sixth and eighth.

Best Insurance Companies To Invest In 2014: AmTrust Financial Services Inc (AFSI.O)

Amtrust Financial Services, Inc., incorporated on November 7, 1990, is a holding company. The Company is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. The Company operates in four business segments: small commercial business, specialty program and personal lines reinsurance. The Company transacts business through 11 insurance company subsidiaries: Technology Insurance Company, Inc. (TIC), Rochdale Insurance Company (RIC), Wesco Insurance Company (WIC), Associated Industries Insurance Company, Inc. (AIIC), Milwaukee Casualty Insurance Company (MCIC), Security National Insurance Company (SNIC), AmTrust Insurance Company of Kansas, Inc. (AICK) and AmTrust Lloyd�� Insurance Company of Texas (ALIC). In January 2013, the Company acquired First Nonprofit Companies, Inc. In February 2013, the Company's subsidiary acquired Car Care Plan (Holdings) Limited (CCPH) from Ally Insurance Holdings, Inc.

Sma ll Commercial Business

Small Commercial Business segment provides workers��compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores, physicians and other professional offices, and commercial package and other property and casualty insurance products to small businesses. The Company is authorized to write its Small Commercial Business products in all 50 states. The Company distributes its policies through a network of over 8,100 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Commercial package products provide a range of insurance to small businesses, including commercial property, general liability, inland marine, automobile, workers��compensation, and umbrella coverage.

The Company maintains Small Commercial Business property and casualty claims operations in several of its domestic offices and the commercial package claims opera tion is separated into four processing units: casualty, pr! op! erty, cost-containment/recovery and a fast-track physical damage unit. As of December 31, 2012, its Small Commercial Business property and casualty claims were approximately 61% automobile and 13% property and inland marine with the remaining 26% involving general liability and umbrella losses.

Specialty Risk and Extended Warranty

The Company��Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods in the United States and Europe, and certain niche property, casualty and specialty liability risks in the United States and Europe, including general liability, employers��liability and professional and medical liability. specialty risk business primarily covers, such as legal expenses in the event of unsuccessful litigation; property damage for resid ential properties; home emergency repairs caused by incidents affecting systems, such as plumbing, wiring or central heating; latent defects that materialize on real property after building or completion; payment protection to insureds if they become unable to meet financial obligations under finance contracts; guaranteed asset protection (GAP) to cover the difference between an insurer�� settlement and the asset value in the event of a total loss, and general liability, employers��liability, public liability, negligence of advisors and liability of health care providers and medical facilities.

The Company's extended warranty business covers selected consumer and commercial goods and other risks, including personal computers; consumer electronics, such as televisions and home theater components; consumer appliances, such as refrigerators and washing machines; automobiles (excluding liability coverage); furniture, and heavy equipment. The Company also serve a s a third party administrator to provide claims handli! ng and! c! all cen! ter services to the consumer products and automotive industries in the United States and Canada. It underwrites the specialty risk coverage on a coverage plan-level basis, which involves substantial data collection and actuarial analysis, as well as analysis of applicable laws governing policy coverage language and exclusions.

Specialty Program

The Company�� Specialty Program segment provides workers��compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous group of small and middle market companies. The type of risk covered by this segment is similar to the type of risk in Small Commercial Business but also covers, to a small extent, certain higher risk businesses. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment primarily include industries, such as retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2012, the Company underwrote 77 programs through 44 independent wholesale and managing general agents. Workers��compensation insurance consists approximately 33% of this business during the year ended December 31, 2012.

Personal Lines Reinsurance

The Company�� Personal Lines Reinsurance Segment has a 20% participation in the Personal Lines Quota Share, by which it receive 10% of the net premiums of the personal lines business. The Personal Lines Quota Share provides that the reinsurers, severally, in accordance with their participation percentages, will receive 50% of the net premium of the GMACI Insurers and assume 50% of the related net losses.

Best Insurance Companies To Invest In 2014: Metlife Inc (MET)

MetLife, Inc. (MetLife), incorporated on August 10, 1999, is a provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife operates in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. It is organized into six segments: Insurance Products, Retirement Products, Corporate Benefit Funding and Auto & Home (collectively, U.S. Business), and Japan and Other International Regions (collectively, International). In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Bank, National Association (MetLife Bank) and other business activities. U.S. Business provides insurance and financial services products, including life, dental, disability, auto and homeowner insurance, guaranteed interest and stable value products, and annuities through independent retail distribution channels, as well as at the workplace. Outside the U.S., it operates in Japan and over 50 countries within Latin America, Asia Pacific, Europe and the Middle East. MetLife is the life insurer in Mexico and also holds positions in Japan, Poland, Chile and Korea. This business provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement and savings products to both individuals and groups. In August 2012, it acquired Reynolds Plantation. In January 2013, the Company completed the sale of MetLife Bank, N.A.'s deposit business. Effective July 25, 2013, MetLife Inc acquired Broadstone Laurel Highlands, from Alliance Residential Fund I. In September 2013, MetLife Inc and Thayer Lodging Group acquired the 365-room Hilton Los Cabos Beach & Golf Resort in Cabo San Lucas, Mexico in a joint venture.

Insurance Products

The Insurance Products segment offers a range of protection products and services aimed at serving the financial needs of its customers throughout their lives. These pro! ducts are sold to individuals and corporations, as well as other institutions and their respective employees. It is organized in three businesses: Group Life, Individual Life and Non-Medical Health.

The Group Life insurance products and services include variable life, universal life, and term life products. It offer group insurance products as employer-paid benefits or as voluntary benefits where all or a portion of the premiums are paid by the employee. These group products and services also include employee paid supplemental life and are offered as standard products or may be tailored to meet specific customer needs.

The Individual Life insurance products and services include variable life, universal life, term life and whole life products. Additionally, through its broker-dealer affiliates, it offers a full range of mutual funds and other securities products. The products within both Group Life and Individual Life include Variable Life, Universal Life, Term Life and Whole Life. Variable life products provide insurance coverage through a contract that gives the policyholder the policyholder flexibility in investment choices and, depending on the product, in premium payments and coverage amounts, with certain guarantees. With variable life products, premiums and account balances can be directed by the policyholder into a variety of separate account investment options or directed to the Company�� general account. In the separate account investment options, the policyholder bears the entire risk of the investment results.

Universal life products provide insurance coverage on the same basis as variable life, except that premiums, and the resulting accumulated balances, are allocated only to the Company�� general account. Universal life products may allow the insured to increase or decrease the amount of death benefit coverage over the term of the contract and the owner to adjust the frequency and amount of premium payments.

Term life products provid! e a guara! nteed benefit upon the death of the insured for a specified time period in return for the periodic payment of premiums. Specified coverage periods range from one year to 30 years, but in no event are they longer than the period over, which premiums are paid. Death benefits may be level over the period or decreasing. Decreasing coverage is used principally to provide for loan repayment in the event of death. Premiums may be guaranteed at a level amount for the coverage period or may be non-level and non-guaranteed. Term insurance products are sometimes referred to as pure protection products, in that there are typically no savings or investment elements. Term contracts expire without value at the end of the coverage period when the insured party is still living.

Whole life products provide a guaranteed benefit upon the death of the insured in return for the periodic payment of a fixed premium over a predetermined period. Premium payments may be required for the entire life of the contract period, to a specified age or period, and may be level or change in accordance with a predetermined schedule. Whole life insurance includes policies that provide a participation feature in the form of dividends. Policyholders may receive dividends in cash or apply them to increase death benefits, increase cash values available upon surrender or reduce the premiums required to maintain the contract in-force.

The Non-Medical Health products and services include dental insurance, group short- and long-term disability, individual disability income, long-term care (LTC), critical illness and accidental death & dismemberment coverage. Other products and services include employer-sponsored auto and homeowners insurance provided through the Auto & Home segment and prepaid legal plans. The Company also sells administrative services-only (ASO) arrangements to some employers. The products in this area are Dental, Disability and Long-term Care (LTC). Dental products provide insurance and ASO plans that ass! ist emplo! yees, retirees and their families in maintaining oral health while reducing out-of-pocket expenses and providing superior customer service. Dental plans include the Preferred Dentist Program and the Dental Health Maintenance Organization. Disability products provide a benefit in the event of the disability of the insured. This benefit is in the form of monthly income paid until the insured reaches age 65. In addition to income replacement, the product may be used to provide for the payment of business overhead expenses for disabled business owners or mortgage payment protection. This is offered on both a group and individual basis. LTC products provide protection against the potentially high costs of LTC services. They generally pay benefits to insureds that need assistance with activities of daily living or have a cognitive impairment.

Retirement Products

The Retirement products segment includes a variety of variable and fixed annuities that are primarily sold to individuals and employees of corporations and other institutions. The products in this area are Variable Annuities and Fixed Annuities. Variable annuities provide for both asset accumulation and asset distribution needs. Variable annuities allow the contract holder to make deposits into various investment options in a separate account, as determined by the contract holder. The risks associated with such investment options are borne entirely by the contract holder, except where guaranteed minimum benefits are involved.

Fixed annuities provide for both asset accumulation and asset distribution needs. Fixed annuities do not allow the same investment flexibility provided by variable annuities, but provide guarantees related to the preservation of principal and interest credited.

Corporate Benefit Funding

The Corporate Benefit Funding segment includes a range of annuity and investment products, including, guaranteed interest products and other stable value products, income annuitie! s, and se! parate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes certain products to fund postretirement benefits and company, bank or trust owned life insurance used to finance non-qualified benefit programs for executives. The products in this area are Stable Value Products, Pensions Closeouts, Torts and Settlements, Capital Markets Investment Products and other Corporate Benefit Funding Products and Services. The Company offers general account guaranteed interest contracts, separate account guaranteed interest contracts, and similar products used to support the stable value option of defined contribution plans. It also offers private floating rate funding agreements that are used for money market funds, securities lending cash collateral portfolios and short-term investment funds.

The Company offers general account and separate account annuity products, generally in connection with the termination of defined benefit pension plans, both in the United States and the United Kingdom. It also offers partial risk transfer solutions that allow for partial transfers of pension liabilities and annuity products that include single premium buyouts. It offers strategies for complex litigation settlements, primarily structured settlement annuities. Under the Capital Markets Investment Products, the products offered include funding agreements, Federal Home Loan Bank advances and funding agreement-backed commercial paper. Under the Other Corporate Benefit Funding Products and Services, it offers specialized insurance products designed specifically to provide solutions for non-qualified benefit and retiree benefit funding purposes.

Auto & Home

The Auto & Home segment includes personal lines property and casualty insurance offered directly to employees at their employer�� worksite, as well as to individuals through a variety of retail distribution channels, including independent agents, property and casu! alty spec! ialists, direct response marketing and the individual distribution sales group. Auto & Home primarily sells auto insurance, which represented 67% of Auto & Home�� total net earned premiums in 2011. Homeowners and other insurance represented 33% of Auto & Home�� total net earned premiums in 2011. The products in this area are Auto Coverages and Homeowners and Other Coverages. Auto insurance policies provide coverage for private passenger automobiles, utility automobiles and vans, motorcycles, motor homes, antique or classic automobiles and trailers. Auto & Home offers traditional coverage, such as liability, uninsured motorist, no fault or personal injury protection, as well as collision and comprehensive. Homeowners��insurance policies provide protection for homeowners, renters, condominium owners and residential landlords against losses arising out of damage to dwellings and contents from a variety of perils, as well as coverage for liability arising from ownership or occupancy. Other insurance includes personal excess liability (protection against losses in excess of amounts covered by other liability insurance policies), and coverage for recreational vehicles and boat owners. Most of Auto & Home�� homeowners��policies are traditional insurance policies for dwellings, providing protection for loss on a replacement cost basis. These policies also provide additional coverage for reasonable, normal living expenses incurred by policyholders that have been displaced from their homes.

International

International provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement & savings products to both individuals and groups. The Company focuses on markets primarily within Japan, Latin America, Asia Pacific, Europe and the Middle East. It operates in international markets through subsidiaries and affiliates. The Company operates in 22 countries in Latin America, with operations in Mexico, Chile and Argentina. It operates in fou! r countri! es in Asia Pacific with operations in Korea, Hong Kong and Australia. It operates in 35 countries in Europe and the Middle East with operations in Poland, the United Kingdom, France, and the United Arab Emirates, as well as through a consolidated joint venture in India.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, which is invested to optimize investment spread and to fund company initiatives and various start-up and run-off entities. Mortgage products offered by MetLife Bank include forward and reverse residential mortgage loans. Residential mortgage loans are originated through MetLife Bank�� national sales force, mortgage brokers and mortgage correspondents. The residential mortgage banking activities include the origination and servicing of mortgage loans. Mortgage loans are held-for-investment or sold primarily into Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) or Government National Mortgage Association (GNMA) securities. Deposit products include traditional savings accounts, money market savings accounts, certificates of deposit (CDs) and individual retirement accounts.

Advisors' Opinion:

• [By Dan Caplinger]

  For MetLife (NYSE: MET  ) , the financial crisis was the ultimate exercise in risk management, as just about every possible thing that could go wrong for the industry did go wrong. Yet in the years since the crisis, Metlife stock has recovered much of its losses from the financial crisis, and the company appears poised to continue its recovery efforts well into the future. Let's take a look at what hit MetLife stock so hard and how the insurance giant bounced back.

Best Insurance Companies To Invest In 2014: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

• [By David Sterman]

  Lastly, you'll note that both Reinsurance Group of America and Genworth Financial (NYSE: GNW) appear on two separate tables here, as they both sport high free cash flow yields and trade below tangible book value. Those deep value metrics have surely caught the eye of Buffett and his research team. 

• [By Dan Caplinger]

  Genworth Financial (NYSE: GNW  ) will release its quarterly report tomorrow, but investors have already gotten a head-start in celebrating. With the recovery in housing greatly bolstering the creditworthiness of mortgage-backed securities compared to their financial-crisis lows, companies that insure those bonds against loss have bounced back sharply, and Genworth earnings look poised to reap the benefits.

• [By James E. Brumley]

  Never let it be said I didn't follow up on my prior ideas and commentaries. In November of last year I said MGIC Investment Corp. (NYSE:MTG), Radian Group Inc. (NYSE:RDN), and Genworth Financial Inc. (NYSE:GNW) were budding bullish idea.
  
  For those of you with good memories, you'll likely know why that sounds a little bit "off." Though GNW, MTG, and RDN had all three been quite bullish that particular day as well as flashed bursts of bullishness in the days leading up to that November 1st look, the market was still more than a little pessimistic on on insurers like Radian Group, MGIC Investment, and Genworth Financial. I'm sure glad I was willing to go out on a limb. All three stocks have gone on to make big - and surprising - gains.
  
  So do I come here to pound my chest on RDN, GNW, and MTG? Nope - not at all. I'm chiming in again today to let you know if you got in on my advice, it's now time to lock in those gains and get out.
  
  Just so there's no confusion, I don't see any particular overbearing problems hanging over the industry's head. It's just that these stocks have outlived their usefulness and opportunity for us.
  
  Take MGIC Investment Corp. for instance. MTG has advances 340% since then, yet still isn't profitable on a net trailing basis. Positive earnings are sill in the cards. But, priced at 27.6 times 2014's projected income, the value argument is gone, as well as the technical one.
  
  Ditto for Genworth Financial and Radian Group Inc. Both stocks have posted huge gains over the past ten months, and while their forward-looking ratios are more attractive, after a 118% and 200% runup, respectively - given the back stories and timing - you have to believe the best-case scenario has already been priced into RDN and GNW shares.
  
  Just for the record, I would be more than willing to buy back into any and all of these names once we get a healthy pullback and start to see decent evidence of a bullish reversal. While we

• [By Dan Caplinger]

  The cheapest stocks in the S&P
  On a book-value basis, financial stocks have had low book values for a long time. Genworth Financial (NYSE: GNW  ) trades at just one-third of book value, while plenty of other insurance companies and banks offer price-to-book ratios of between 0.5 and 0.75. Yet during the financial crisis, investors learned just how inaccurate book values were. Massive writedowns of toxic assets proved necessary to reflect the actual value of those assets, and as a result, price-to-book ratios temporarily soared even as stock prices plunged.

Best Insurance Companies To Invest In 2014: Sun Life Financial Inc.(SLF)

Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Tim Brugger]

  Initially, the deal Sun Life Financial (NYSE: SLF  ) struck in December to sell its U.S. annuity portfolio and some life insurance products for $1.35 billion to Delaware Life Holdings, a Guggenheim Partners-owned company, was scheduled to be completed by Q2 of 2013.

• [By Amanda Alix]

  Insurance companies have created an entire industry based upon risk, and except for AIG (NYSE: AIG  ) during the financial crisis, it has worked out pretty well. So, it's not a stretch to imagine a large life insurer like Canada's Sun Life Financial (NYSE: SLF  ) assuming the pension liability for the Canadian Wheat Board's defined benefit plan in a recent $147 million deal, the first such accord in Canada's history.

Best Insurance Companies To Invest In 2014: Fairfax Financial Holdings Ltd (FRFHF)

Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited. Advisors' Opinion:

• [By Tim Brugger]

  Citing the letter of intent to be acquired�for $9 a share signed Monday with a consortium led by its largest shareholder, Fairfax Financial (NASDAQOTH: FRFHF  ) , BlackBerry� (NASDAQ: BBRY  ) �has opted to cancel its conference call and webcast following the 7 .a.m EST release of Q2 earnings this Friday, the company announced yesterday.

• [By Dan Caplinger]

  That business model has been so successful that other, smaller insurance companies have emulated it. For instance, Fairfax Financial (NASDAQOTH: FRFHF  ) and Markel (NYSE: MKL  ) have used the same investing model to take advantage of their respective core insurance businesses. Both Fairfax and Markel have had substantial success, showing the power of using temporarily available premium reserves to make higher-return investments.