At Work: Tweet as if Big Brother were watching

Here's more proof that social media can mean a boon or doom to your career.

First, a brief history lesson: Think back — if you were alive and working — to a time before we had social media.

STORY: Tool aims to protect social media reputation
STORY: Social media speech rights complex for workers

If you wanted others to know you existed, influence how they saw you and tell what they knew about you, here were your choices: communicating face to face, networking, writing a letter, calling, sending a letter to the editor, getting in the news, authoring articles in professional journals and giving presentations.

Then came social media.

Most employers early on didn't consider chat rooms, forums, and later Facebook and LinkedIn as a viable source for finding or digging up dirt on potential workers. But through the years, I've watched those numbers increase dramatically.

The exact number of employers who use social media to investigate prospective employees is up for debate. Some surveys say as many as 91% of recruiters and managers look at social media when hiring.

A survey of more than 7,000 United Kingdom recruiters and human resource managers from Oilandgaspeople.com — it specializes in one hot employment area, the oil and gas industry — shows social media is definitely on the radar.

Eighty-two percent of employers say they have looked up potential candidates on social-media sites. They mostly use LinkedIn, then Facebook.

Think before you tweet. A future job could be on the line.(Photo: Getty Images/USA TODAY illustration)

Not only is it cost effective for them to use these sites to get access to workers, 41% say it gives them better insight into whether a candidate is sui! table.

Specifically, employers look for clues about your character and personality, whether you present yourself professionally and if are you are a good fit for their culture.

In the survey, 64% rejected an applicant after looking at a social media profile.

What employers find and don't like are things you typically hear: provocative or inappropriate photographs or information about the person drinking or using drugs.

They also unearth poor communication skills; bad judgment in the form of badmouthing previous employers; lies about qualifications; and discriminatory comments related to race, gender or religion.

But 71% surveyed successfully hired an employee or contractor because they liked what they found.

Overall, this is content that conveys a professional image, shows someone is well rounded, has great communication skills and is creative. Good references also help.

Social media can work for or against you. If you're serious about using it to establish your expertise and build your professional reputation, manage this public face to your advantage.

Look for ways to educate instead of entertain, build up instead of tear down and be seen as a resource instead of a rebel. Before you post anything online, ask yourself:

• Is it stupid or insensitive?

• How will this affect my company or others?

• How could strangers interpret this?

• What will this say about me?

Be wary of Twitter. Its very nature implores you to be acerbic or derisive.

what i love about twitter and facebook is that it has outed reporters from their phony facade of pretend non-partisan commentary.

— Richard Grenell (@RichardGrenell) March 27, 2012

Top 5 Performing Stocks To Buy For 2014

On Slate.com, David Weigel wrote last year how tweets hurt the career of communications adviser Richard Grenell. GOP presidential candidate Mitt Romney hired hi! m in mid-! April 2012, but by early May he had quit his new job.

Quoting journalist Jonathan Rauch who was familiar with Grenell, Weigel wrote: "Grenell's problem reveals 'what an embarrassing waste of time Twitter is. It's not a medium for adults — it practically begs you to be short, snarky and stupid.' "

Since Hollywood loves Obamacare, I propose having an actors and studio heads fee to pay for it.

— Richard Grenell (@RichardGrenell) November 26, 2013

Career consultant Andrea Kay is the author of This Is How To Get Your Next Job: An Inside Look at What Employers Really Want. Reach her at andrea@andreakay.com. Twitter: @AndreaKayCareer.

Why the Rally May Take a Break

Each Monday, MoneyBeat publishes a short column in the WSJ print edition highlighting a statistic getting traction in the markets.  This week's "Big Number" is 78%, the percentage of the bull-market rally that has taken place during earnings season.

The stock market's relentless push higher could be due for a pause.

The S&P 500 has registered five straight weeks of gains and is up 4% during that period, a stretch that has coincided with third-quarter earnings season.

That also corresponds with a trend that has driven the S&P 500's rally this year and the bull market that began in March 2009: The pace of the market's increases has surged during corporate reporting periods and has slowed during so-called earnings off-seasons.

Since the second quarter of 2009, 78% of the rally has occurred during earnings seasons, according to Jeffrey Kleintop, chief market strategist at LPL Financial. He defines these reporting periods as the two weeks prior to Alcoa Inc.(AA)'s quarterly reports and then the four weeks afterward.

Consider this year's action: The S&P 500 jumped 4.6% and 7.5%, respectively, in the first- and second-quarter earnings seasons, according to Mr. Kleintop's calculations. But in the weeks this year when a bulk of companies weren't reporting results, the stock index fell 1.8% and 0.3%, he says.

Overall, about three-quarters of the S&P 500's increase this year has taken place during earning season.

"Corporate profits are still the lifeblood of the stock market," Mr. Kleintop told MoneyBeat.

Now that the third-quarter reporting period has come to an end, the worry is the recent trend will continue. That means it might be tough for the market to keep rising at such a rapid rate.

"While we expect stocks may continue to provide gains for investors, the pace of those gains is likely to slow and volatility may pick up," Mr. Kleintop says.

On the Job: Questions can reveal a lot about a …

An interview can be a nerve-wracking experience.

The job seeker feels pressure to answer questions and make a good impression.

COLUMN: Ask right questions in an interview
COLUMN: Ask right questions to get job you want

But career experts say interviews need to be two-way streets if job seekers want to make sure they won't hate their new jobs in six months.

Specifically, job candidates must be armed with questions to really learn what an organization is all about. They've got to ferret out information that can help them avoid a boss who channels Attila the Hun or land in an organization that is a poster child for dysfunctional companies.

"People think an interview is when they have to sell themselves," says Alexandra Levit, co-founder of the Career Advisory Board. "But I think it's also a time to ask questions and find out more about the employer."

You should ask to talk to other employees who would be colleagues if a job is offered, Levit says.

"Ask them questions about what sets the organization apart, what they really like about the company and their jobs," she says.

Companies are likely to offer "rah-rah" employees who will say only good things about the employer, but Levit says they still can offer valuable information.

If you're speaking with a hiring manager whose legs are crossed, pay attention to the foot on top. If it's angled toward you, that's a positive sign.(Photo: Getty Images, iStockphoto)

Carol Kinsey Goman, a business coach and expert on non-verbal communication, agrees.

You should look at what employees aren't saying with words but indicating with their body language, she says.

"Probably the biggest mistake people make when trying to read body ! language is that they take one signal for having a ton of meaning," she says. "But what you want to do is look for a cluster of signals."

A hiring manager looking at her watch doesn't necessarily signal that she wants an interview to conclude because she thinks you're boring. But if she begins tapping her foot, looking at the door and glancing at her watch, you should move on because you could be making her impatient or bored, Goman says.

Engage in small talk during an interview because hiring managers can gauge your "likeability" and see how you might fit into the workplace culture. But this chit-chat is also a chance for interviewees to get a feel for a company's culture and management style.

You'll also have opportunity to spot when an interviewer is being less than honest or masking true feelings about you and what you're saying.

Specifically, to spot a hiring manager who may be hiding something or being evasive, Goman advises you to look down. Most people are savvy enough to cover evasions with smiles or eye contact, but they forget about their feet.

STORY: 13 tips for nailing a Skype interview
STORY: 10 steps to a successful interview

Feet?

When people try to control their body language, Goman says they focus most with their face, hands and arms, but "gestures below the waist are often left unrehearsed."

Watch for these examples, Goman says:

• If you're speaking with a hiring manager who has his or her legs crossed, pay attention to the foot on top.

If it's angled toward you, that means the manager is interested in you. If the top leg and toe are pointed away from you, the person may be withdrawing.

• If you're in a negotiation and you notice a lot of foot-jiggling, or rocking back on feet and raising toes, the manager doing it probably feels he has the upper hand.

• If a colleague angles only her upper body toward you but keeps her legs and feet shifted away, she is telling you she wants to leave.

"You may not ! know it, ! but you've been reacting to foot gestures all your life," Goman says. "Next time you want to know what someone's thinking, take a closer look at their feet."

That way, if you don't like what you're hearing and observing non-verbally, your feet can take you to a better opportunity.

Anita Bruzzese is author of 45 Things You Do That Drive Your Boss Crazy ... and How to Avoid Them, www.45things.com. Twitter: @AnitaBruzzese.

Market Wrap For Tuesday, October 22: Weak Jobs Report Dismisses QE Tapering Concerns

Markets bounced higher Tuesday on weak September jobs data as the likelihood for Federal Reserve tapering dives. Correspondingly, treasury prices soared higher, sending the ten year yield to a three month low.

Major Averages

The Dow Jones Industrial Average rose 75.46 points, or 0.49 percent, to 15,467.66.

The S&P 500 climbed 10.01 points, or 0.57 percent, to 1,754.67.

The Nasdaq Composite gained 9.52 points, or 0.24 percent, to close at 3,929.57.

The Russell 2000 added 3.15 points, or 0.28 percent to finish at 1,115.63.

Job Data

September's unemployment rate was announced as 7.2 percent, compared to 7.3 percent in August. Despite the drop, only 148,000 non farm jobs were added for the month, while economists were expecting 180,000. 126,000 of these positions were in the private sector.

Stock Movers

Nu Skin Enterprises (NYSE: NUS) shot up 8.39 percent to $111.78 after the company reported upbeat third-quarter earnings and issued a strong Q4 outlook.

Whirlpool (NYSE: WHR) gained 11.62 percent to $146.19 after the company reported a strong rise in its third-quarter earnings.

Transocean (NYSE: RIG) was also up, gaining 5.97 percent to $49.35 after the news that the company would be added to the S&P 500 hit the wires.

Coach (NYSE: COH) tumbled 7.53 percent to $50.10d after the company reported a drop in its Q1 profit.

E-Commerce China Dangdang (NYSE: DANG) gave up 13.44 percent to fall to $10.05 after the company issued weak Q3 revenue forecast.

Netflix (NASDAQ: NFLX) dropped 9.15 percent to $322.47 as traders suddenly questioned the strength of the company's earnings fueled rally and rushed for the exits.

Commodities

Energy prices were mostly down Tuesday, with WTI and Brent mixed. Near the close of equities, WTI crude futures fell 1.43 percent to $97.80. Brent futures gained 0.26 percent to $109.92. Natural gas was last down 2.02 percent on the day.

Conversely, precious metals surged higher on the day. At last check, COMEX gold futures were up 1.93 percent to $1,341.20. Silver contracts gained 2.1 percent to $22.75 near the close.

Global Markets

Asian markets were mostly down last night. The Shanghai index fell 0.83 percent with Hong Kong's Hang Seng down 0.52 percent. Japanese markets were actually up, with the Nikkei gaining 0.13 percent.

European markets were mostly upon the day. The Euro Stoxx index, which tracks 50 eurozone blue chips gained 0.57 percent percent. London's FTSE rose 0.262 percent, and France's CAC added 0.43 percent.

Currencies
The US dollar once again tanked on the expectation that the Federal Reserve will not reduce its stimulus. The PowerShares ETF (NYSE: UUP) that tracks the performance of the greenback versus a basket of foreign currencies fell 0.56 percent to 21.35. The marks a year low for the dollar.

Because of the USD's weakness, the closely watched EUR/USD pair fell gained 0.74 percent to $1.3782. The other big mover on the day is the EUR/JPY, which rose 0.67 percent.

Volume and Volatility

After a week of heavy volume, trading normalized Tuesday. 123 million shares of the S&P 500 ETF (NYSE: SPY) traded hands, compared to a three month average of 121 million..

After leaping higher mid morning, volatility died down for the day. The CBOE measure of S&P 500 (VIX) gained 1.22 percent to 13.32.

Posted-In: Federal Reserve Market WrapEarnings News Eurozone Futures Commodities Forex Econ #s After-Hours Center Markets Best of Benzinga

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular MacBook Pro 2013 Rumor Roundup Why is AT&T Selling Its Cell Towers? Facebook Status Updates Go Down In Unexpected Outage (FB) IBM's Watson Coming to Smartphones Soon (IBM) Apple's 65-Inch Ultra HD Television To Arrive In 2014 UPDATE: Drexel Hamilton Initiates Coverage on Broadcom Corporation on Positive Market Outlook Related Articles (COH + BZSUM) Market Wrap For Tuesday, October 22: Weak Jobs Report Dismisses QE Tapering Concerns Mid-Afternoon Market Update: Netflix Drops Sharply as Traders Look to Take Profits Mid-Morning Market Update: Markets Open Higher; Lockheed Martin Posts Upbeat Profit Benzinga's Top Pre-Market Losers Market Primer: Tuesday, October 22: Nonfarm Payrolls Likely To Show US Was On A Roll Ahead Of The Shutdown Earnings Scheduled For October 22, 2013 View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
Traders & Investors Summit Register for this FREE Event! Hosted by Marketfy

Baron Funds Comments on American Campus Communities Inc.

10 Best Oil Stocks To Watch For 2014

American Campus Communities, Inc. (ACC), an owner, manager, and developer of student housing, decreased 15.2% in the third quarter as the company's lease rates were weaker than expected. Supply in some of its markets increased, and REITS were hurt in the third quarter from rising yields as the 10-year Treasury yield approached 3% and made dividend yields on many REITs less attractive. However, we continue to believe the company is the best in its industry at developing properties and should improve its yields next year as the market absorbs the excess supply. (David Baron)

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

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

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

Share & Vote .social_network_button{ +float: left; } Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Hewlett-Packard Has to Outpace IBM and Accenture

Hewlett-Packard (NYSE: HPQ  ) will release its quarterly report on Tuesday, and investors have been increasingly nervous about the tech giant's ability to keep its long-term restructuring efforts moving forward. With rival IBM (NYSE: IBM  ) having faced tough conditions in the IT market and with Accenture (NYSE: ACN  ) squarely aimed at the same consulting customers that HP hopes to poach in its reorganization efforts, Hewlett-Packard faces pressure to start producing solid results from its strategic moves sooner rather than later.

The rise in Hewlett-Packard's shares has been particularly surprising because it indicates that Wall Street has been willing to give CEO Meg Whitman the benefit of the doubt in her long-range plans. Rather than punishing HP shares for the sluggishness of the company's rebound, investors have patiently waited for growth to emerge. But how much longer will they be willing to wait? Let's take an early look at what's been happening with Hewlett-Packard over the past quarter and what we're likely to see in its report.

Stats on Hewlett-Packard

Analyst EPS Estimate	$1.00
Change From Year-Ago EPS	(13.8%)
Revenue Estimate	$27.91 billion
Change From Year-Ago Revenue	(6.8%)
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

What's in store for Hewlett-Packard earnings this quarter?
In recent months, analysts have stayed largely stable in their calls on Hewlett-Packard earnings, cutting current-year estimates by a penny per share but boosting next year's earnings projections by the same amount. The stock has moved up 14% since late August.

The rebound came after troubling results for Hewlett-Packard in its July quarter, with the company seeing its shares drop 12.5% after HP issued its report. Earnings met expectations, but even a small revenue miss was enough to spook investors about the pace of the turnaround. Whitman's assurances that the company's recovery remains on track didn't make shareholders any happier about the 8% drop in year-over-year revenue that HP suffered, even though the CEO has been smart in keeping HP from resorting to price cuts to drive sales.

Still, the entire industry continues to face struggles. IBM reported a substantial drop in revenue of its own, with hardware sales particularly weighing on the tech giant's results. Services and software sales were up slightly, though, validating the approach that both IBM and HP have taken in moving away from their respective hardware-based strengths over the years. Yet IBM arguably has even greater prospects for future success, given its emphasis on the highly popular data-analytics area and its better-developed presence in the IT consulting realm. Accenture has also seen difficulty in its consulting businesses, with only modest gains in overall revenue failing to meet investors' expectations.

HP keeps trying to make inroads in certain niches. Its deal with Cerner in late August gives HP an entry into the big-data business of hospitals and health care, helping it go up against Accenture and IBM in a high-growth area. Yet Accenture recently boosted its own exposure to health-care IT by buying out ASM Research, and IBM has a long history of health-related technology with its Watson artificial-intelligence medical assistant.

One interesting move involves HP's decision to get involved in 3-D printing. The company said that it will enter the space as early as next year, making HP a huge fish in the heretofore small pond of relatively tiny upstart players in the 3-D printing industry. Given HP's expertise in printing, the move makes intuitive sense, but it's unclear whether HP can actually make big profits from 3-D printing or rather will simply accelerate the process of the industry becoming a commodity business like its other hardware efforts before it.

In the HP earnings report, watch to see whether the company stays on track with its overall reorganization plans. Investors have been patient until now, but they might not stay so if the tech giant doesn't start delivering on its promises soon.

Find the best growth stocks now
Don't settle for has-been stocks. Motley Fool co-founder David Gardner, founder of the world's No. 1 growth-stock newsletter, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth-stock superstars, with you! It's a special 100% free report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains, and click here for instant access to a whole new game plan of stock picks to help power your portfolio.

Click here to add Hewlett-Packard to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Pandora (P) Falls Some More, Sheds Market Value

NEW YORK (TheStreet) -- Pandora (P) shares continued their downward spiral Wednesday falling 4.7% to $23.12 as of 11:35 a.m. New York time to extend its decline this week to 16%.

Pandora's drop is consistent with other high-momentum stocks, due to investor fears that the extended government shutdown augur badly for an agreement to a government debt.

Pandora shares have also been adversely affected by Bloomberg's Tuesday report that Apple (AAPL) is planning to launch iTunes Radio in overseas markets including the U.K., Canada and Oceania by early 2014. Pandora currently operates in the U.S., Australia and New Zealand, albeit with broadcasting restrictions depending on each country's laws.

Pandora reports it had 72.7 million active listeners in September, a 25% increase from the same period a year earlier. Apple said within six days of its launch last month iTunes Radio had attracted 11 million unique listeners. TheStreet Ratings team rates Pandora Media Inc as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate Pandora Media Inc (P) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 43.8% when compared to the same quarter one year ago, falling from -$5.42 million to -$7.79 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, PANDORA MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has significantly decreased to -$2.32 million or 181.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. PANDORA MEDIA INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PANDORA MEDIA INC reported poor results of -23 cents a share vs. -10 cents a share in the prior year. This year, the market expects an improvement in earnings (4 cents vs. -23 cents). 42.71% is the gross profit margin for PANDORA MEDIA INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -4.94% is in-line with the industry average. You can view the full analysis from the report here: P Ratings Report Written by Keris Alison Lahiff.

Dow Jones Industrials Clear 16,000, or How I Learned to Stop Worrying and Love the Taper

And the third time is the charm.

AFP

On Monday, the Dow Jones Industrial Average broke 16,000 for the first time ever, only to finish the day under that big round number. On Tuesday, it tried again, but dropped at the end of the day. And after yesterday’s drop, 16,000 looked farther away than ever. But all it took was a little economic data in the form of jobless claims  to push the Dow Jones over 16,000, this time to stay. The blue-chip index gained 0.7% to 16,009.99, while the S&P 500 rose 0.8% to 1,795.86.

JPMorgan Chase (JPM) and American Express (AXP) rose 2% and 2.1%, respectively, as financial stocks gained on speculation that the jobless claims data would spur the Federal Reserve to taper sooner rather than later, while Ace Ltd. (ACE) rose 3.8%.  General Motors (GM) gained 1.1% after the US government said it could sell the last of its shares by year-end. On the downside, Target (TGT) fell 3.5% after reporting earnings that missed analyst expectations.

Now about those jobless claims. The number of Americans filing for first-time unemployment benefits fell to 323,000, well below forecasts for 335,000. And this time, the data was clea. No California problems, no government-shutdown hangover. CRT Capital’s Ian Lyngen warns investors not to get used to clean data:

The jobless claims data didn't come without significant caveats however, most notably that we're entering the period of the year when the holidays make seasonals difficult to estimate.  With initial claims declining to the lowest since Sept, we're reminded that while it was NFP-survey week, Veteran's day is surely distorting the improvement in claims and it will be several weeks before the data is clean enough to influence NFP estimates. Long before then however, we'll get the Dec 6 employment report and this remains the most relevant near-term risk in the process of refining policy expectations (i.e. to taper or not to taper).

Deutsche Bank’s Alan Ruskin notes that investors finally seem to be getting the Fed’s message that tapering is not tightening. He explains:

The big story in the last 24 hours is how well the front-end of the US curve is trading. The last time US T.Note 10s were trading at these yields, both 3y and 5y yields were trading over 20bps above current levels.  This can be read as a clear signal that the market is 'getting' the Fed’s attempts to separate out their balance sheet tapering decision from their forward guidance rate related decisions.  Ironically, the more the market shows it is hearing this message, the greater the prospect of tapering. A well behaved front-end adds meaningfully to tapering risks!  At the same time, if 10s start to threaten the 3% area soon, financial conditions will become a factor in the FOMC’s deliberations again, independent of the front-end – even if it confirms fears that the Fed is hostage to ‘the bond vigilantes’, hampering the QE3 exit.

STA Wealth Management’s Lance Roberts sees stocks gaining another 30%. He writes:

Top China Stocks For 2014

That’s right, despite all of the recent “bubble talk,” it is entirely possible that stocks could rise 30% higher from here.  However, it is not because valuations are cheap because as I discussed in my recent analysis of Q3 earnings stocks are trading near 19x trailing earnings.

“Understanding this it is easy to understand the flaw in using “forward” estimates as a valuation tool.  The use of forward, operating estimates, is only beneficial to Wall Street analysts who need to create a “valuation” story when none really exists.  Overly optimistic assumptions about the future spurs faulty analysis in the present as sliding earnings leads to sharp valuation increases. The chart below shows the progression of forward P/E estimates since the beginning of 2012.  Currently, with the S&P 500 valued at 18.89x reported earnings, it is hard to justify that the market is undervalued.”

The primary reason that stocks are likely to climb 30% higher from current levels, over the next 24-months, is because that is what happens during the “mania” phase of a bull market cycle…

Either that, or we’re headed for a really big fall.

 

China Stocks Rise to One-Month High on Financial Reform Outlook

China's benchmark stock index rose to a one-month high after the central bank elaborated on plans to loosen controls on financial markets. Chinese equities in Hong Kong rallied for a fifth day to erase losses for the year.

Haitong Securities Co. and China Construction Bank Corp. led gains for brokerages and lenders in Shanghai. Air China Ltd. and China Southern Airlines Co. surged more than 3 percent in Hong Kong and Shanghai after the Shanghai Securities News reported the government may issue airspace-management rules. China Life Insurance Co. rose to a nine-month high in Hong Kong after Citigroup Inc. said its earnings may exceed estimates.

The Shanghai Composite Index (SHCOMP) advanced 0.6 percent to 2,206.61 at the close, the highest since Oct. 22. The Hang Seng China Enterprises Index (HSCEI) rose 0.6 percent to 11,437.44 for a five-day, 11 percent gain, the biggest such advance since October 2011. The central bank's plans include a wider trading band for the yuan and the removal of investment caps for foreign money managers, central bank Governor Zhou Xiaochuan wrote in an article. Accelerating yuan convertibility was among key reform proposals decided at a meeting of the Communist Party, which plans to achieve the target by 2020.

"The end of the intervention in the currency market could attract more funds into Chinese shares and boost liquidity," said Zhang Yanbing, analyst at Zheshang Securities Co. in Shanghai.

Widening Gap

The CSI 300 Index advanced 0.5 percent to 2,424.85. Trading volumes on the Shanghai index increased 1.9 percent above the 30-day average, according to data compiled by Bloomberg. The Shanghai index has fallen 2.8 percent this year as slowing growth curbed corporate earnings. The measure trades at 8.7 times projected profit, compared with the five-year average multiple of 12.5, Bloomberg data showed.

China's largest package of economic reforms since the 1990s is getting a bigger vote of confidence from foreign investors than from the nation's own citizens. The H-shares gauge has jumped 6.2 percent, more than twice the Shanghai gauge, since policy makers led by President Xi Jinping pledged to ease the one-child policy and liberalize interest rates on Nov. 15. That left mainland shares valued at a 5.8 percent discount, the most in three years, according to the Hang Seng China AH Premium Index.

Foreign investors are less bearish because China's new policies will make long-term economic growth more sustainable, said Chen Li, a strategist at UBS AG in Shanghai.

Yuan Reform

China Construction Bank, the nation's second-biggest lender, rose 0.9 percent to 4.38 yuan. Haitong Securities, the second-largest listed brokerage, added 1 percent to 11.58 yuan.

The People's Bank of China will "basically" end normal intervention in the currency market and broaden the yuan's daily trading limit in an "orderly way," Zhou wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Quotas under the Qualified Foreign Institutional Investor program will be expanded and then scrapped, he wrote.

Liberalization of interest rates was also among the key reform proposals decided on at the Third Plenum and published by the official Xinhua News Agency on Nov. 15. China is reforming its policies in an effort to bolster an economy that's heading for its weakest annual expansion since 1999.

China Life Insurance advanced 0.6 percent to HK$24.35, capping a 19 percent jump over five days. Ping An Insurance gained 2.2 percent to HK$71.40. China Life's fundamentals have bottomed and its earnings may surprise "on the upside" in the second half of this year, Citigroup analyst Darwin Lam wrote in a note dated yesterday after the insurer's management spoke at financial conference.

More Upside

"Despite a notable share price rebound of late, we believe China Life still offers good relative value and remains quite under-owned by investors," Lam, who has a buy rating on stock, wrote. China Life's shares were also upgraded at Bank of America Corp. and China International Capital Corp.

A measure of industrial shares in the CSI 300 gained 1.3 percent for the second-steepest advance among 10 industry groups. Air China, the biggest international carrier, gained 3.5 percent in Shanghai and 3.7 percent in Hong Kong, while China Southern, the largest domestic carrier, advanced 3.6 percent in Shangahi and 6.3 percent in Hong Kong.

Best Low Price Stocks To Own Right Now

Shanghai Securities News reported China may issue airspace management rules as early as the end of this year. Air China and other carriers have expanded their fleets as economic growth spurs travel demand in China, where the air force allots only 20 percent of air space to civil aviation. Traffic congestion is set to worsen as the nation's commercial aircraft fleet is projected to double in the next seven years.

The Bloomberg China-US Equity Index slid 0.3 percent in New York yesterday, while the db X-trackers Harvest CSI 300 lost 1.5 percent. S&P Dow Jones Indices is starting an exchange-traded fund that will allow traders in China to invest in the Standard & Poor's 500 Index.

Investing in Foreign Stocks: ADRs and GDRs

Top Gold Companies To Watch In Right Now

Investing in foreign stocks should be part of any investor's portfolio. Not only does it diversify your holdings, it offers plenty of opportunities to profit from trends and developments outside your home country.

The U.S. currently accounts for nearly half of the world's total stock market value, but that's likely to decline in the years ahead as more investors look to emerging markets such as China and India.

Below is an overview of the easiest ways to invest in foreign stocks, whether you live in the U.S. or any other country.

DRs (Depositary Receipts)

A depositary receipt is a negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities. The depositary receipt trades on a local stock exchange, such as the New York Stock Exchange (NYSE) in the U.S., but represents an interest in a company that is headquartered outside of the United States. A depositary receipt traded in Germany would represent a non-German company.

A DR can be sponsored or unsponsored. The sponsored variety is issued with the knowledge and cooperation of the underlying foreign company. With this cooperation, a sponsored DR usually lets the owners have the same rights normally given to the stockholders in the home country, such as voting rights. An unsponsored DR may not have the same voting rights.

ADRs (American Depositary Receipt)

An American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign (i.e. non-U.S.) stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

It's important to note that an ADR must be sponsor! ed by the underlying corporation. If not, the security is likely to be traded over the counter, which is considered more risky because there are fewer regulatory requirements.

In most cases, a foreign firm trading OTC will have a five letter ticker. For instance, European Aeronautic Defence and Space Company N.V. trades under the U.S. ticker "EADSF." In contrast, an ADR may trade with the common three ticker symbol on the NYSE. Swiss-based ABB Ltd. trades with the symbol "ABB" on the NYSE.

Overall, there are four levels of ADRs. The chart below explains the difference between sponsored and unsponsored ADRs, as well as different levels of sponsored ADRs and U.S. Securities and Exchange Commission (SEC) reporting requirements.

You can see that the unsponsored variety trades over the counter, which leaves more work to the investor to determine if the voting rights are the same. These shares may also have much less liquidity. To determine which level a company trades at, an investor should check the SEC site (sec.gov) to see which forms have been filed. Checking on the website of a depository bank or ADR.com can also provide insight into a company's filing status.

Type of Program	Description	SEC Filing required	Capital Raising
Unsponsored	ADRs traded on the US OTC market, using existing shares. No contractual relationship with company.	Form F-6 (filed by depositary bank), 12g3-2(b) exemption	No
Sponsored Level I	ADRs traded on the US OTC market, using existing shares. Company forms contractual relationship with single depositary bank.	Form F-6 (filed by depositary bank and company), 12g3-2(b) exemption	No
Sponsored Level II	ADRs listed on a recognized US exchange (NYSE or NASDAQ), using existing shares	Form F-6, Form 20-F	No
Sponsored Level III	ADRs initially placed with US investors and listed on a recognized US exchange (NYSE or NASDAQ)	Form F-6, Form 20-F, Form F-1	Yes

Source: Deutsche Bank Depositary Receipt Services

ADRs, like domestic U.S. stocks, have to meet certain SEC filing requirements. An ADRs' annual report is known as a 20-F filing, which is similar to the 10-K filing that U.S.-based companies file annually.

A 20-F provides detailed and useful information on a firm, including how its financial statements in its home country might differ using U.S. GAAP accounting. It helps an investor make a more apples-to-apples comparison, instead of apples-to-oranges. A foreign firm that trades OTC status will likely not have to file with the SEC, but will have financials from its home country for analysis. The chart above helps clarify what the reporting requirements are.

A depository generally refers to a company, bank or an institution that holds and facilitates the exchange of securities. When it comes to ADRs, large depositories include JP Morgan Chase (NYSE:JPM) and BNY Mellon (NYSE:BK). JPMorgan owns and operates the website ADR.com, that contains a wealth of information on ADRs, both from an educational perspective and to learn which ADRs trade in the U.S.

As a final aside, the term American Depository Share (ADS) is often used in tandem with the term ADR. The ADS is issued by depository banks in the U.S. under agreement with the issuing foreign company. The entire issuance is called an American Depositary Receipt (ADR) and the individual share is referred to as an ADS.

GDRs (Global Depositary Receipt)

Beyond the ADR, there is a second category of DR. A Global Depositary Receipt (GDR) represents a bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. The term GDR is used throughout the globe and designates any foreign firm that trades on an exchange outside its home country.

Other Types of DRs

There are other types of GDRs that represent more specific names in a spe! cific country. A Chinese Depositary Receipt (CDR), which trades on Chinese stock exchanges, is one example. More generally, an International Depository Receipt (IDR) is issued by a depository bank representing ownership of stock of a foreign company held by the bank in trust. An IDR is called an ADR in the United States.

How to Invest in DRs

A DR is meant to make it as easy for a foreign investor to invest in another country. For an ADR, the sponsored variety gives the investor the best chance of having the same economic and voting interests as a domestic investor would.

Here are some ways to buy DRs.

Powershares: These exchange-traded funds offer multiple baskets of listed depositary receipts (BLDRS). One example is BLDR Asia 50 ADR Index Fund (Nasdaq:ADRA), a capitalization-weighted ETF designed to track the performance of 50 Asian market- based DRs. It provides broad diversification to a part of the world that is expected to grow robustly and increase its weight of global market capitalization.

Similar to ADRA are BLDRS Developed Markets ADR Index Fund (Nasdaq:ADRD) and the BLDRS Emerging Markets 50 ADR Index Fund (Nasdaq:ADRE).

You can also invest directly in foreign companies that trade on U.S. exchanges like Sony Corporation (NYSE:SNE) and Toyota Motor Corporation (NYSE:TM). While over-the-counter (OTC) stocks like Samsung (SSNLF) offer an opportunity to invest across the borders, they are not as forthcoming with their earnings reports as ADRs are.

The Bottom Line

The U.S. represents the most liquid and robust depositary receipt market in the world. But other countries continue to grow their DR markets and offer more liquidity for their local citizens. With DRs, the market is poised for increased growth and robustness, with lower costs, faster execution, and equal shareholder rights for investors, regardless of their home country.

Buying Low Thwarted by Narrowest Stock Valuation Gap Ever

Cheap is converging with expensive in the American equity market, narrowing options for investors looking for bargains after the broadest rally on record lifted almost 90 percent of the Standard & Poor's 500 Index this year.

The difference in valuations shrank to the smallest since at least 1990 after companies such as Hormel Foods Corp. and CenterPoint Energy Inc. rose to levels that match Ralph Lauren Corp. and Citrix Systems Inc., whose five-year average profit growth rate is twice as big. A measure of the dispersion of price-earnings ratios in the S&P 500 compiled by Goldman Sachs Group Inc. narrowed to 41 percent in June, the lowest on record, and held around that level since.

While four years of earnings growth and the Federal Reserve's near-zero interest rate have led the S&P 500 on a 166 percent rally since March 2009, they have also driven up valuations just as the bull market approaches the end of its fifth year. The monolithic market means investors may have nowhere to hide should shares fall.

"We've seen a runup in prices in the market, and we don't think it's cheap anymore," Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said in a Nov. 13 phone interview. "Those who simply like to buy cheap and get a regression to the mean may have less luck."

The S&P 500 climbed 1.6 percent to a record 1,798.18 last week after Fed Chairman-nominee Janet Yellen signaled she will continue the stimulus programs of her predecessor Ben S. Bernanke, and retailers suggested holiday demand would be stronger. The measure advanced 26 percent in 2013, on track for the biggest annual return in a decade. S&P 500 futures expiring in December were little changed at 9:56 a.m. in London today.

Broadest Rally

More than 440 of the S&P 500's companies have gained in 2013, the most for any year at this point since at least 1990, data compiled by Bloomb! erg show.. Advances since March 2009 have been spread among all 10 S&P 500 groups, with consumer discretionary shares up 309 percent, about four times the jump in shares of utilities companies. In the bull market from 2002 to 2007, energy stocks outpaced consumer staples shares by about sixfold.

The breadth of this year's rally has led valuations throughout the market higher. The average S&P 500 company's price-earnings ratio rose 40 percent to 20 in 2013, twice the increase for 2012 at this point of the year, according to data compiled by Bloomberg.

Economic Reality

"This market clearly has had a life of its own that's been divorced from a lot of economic reality, and so valuations are much higher," Martin Leclerc, founder of Barrack Yard Advisors LLC, said in a Nov. 14 phone interview from Bryn Mawr, Pennsylvania. His firm oversees $230 million. "Everyone bemoans the fact that the set of companies selling at very good prices has really been diminished."

Health-care shares saw the biggest multiple expansion this year, trading at 17.5 times estimated earnings last week, the highest since 2007. A group of consumer-staples stocks trades at 18.6 times estimated earnings, compared with the average of 16.4 before the bull market, according to data since 1990 compiled by Bloomberg. The price-earnings ratio for utilities shares reached 16.1, compared with the 13.8 average before 2009.

"The mantra was bond-like stocks for 18 months, from the middle of 2011 until Bernanke said the word taper," Eric Green, director of research and fund manager at Penn Capital Management, said by phone Nov. 14. The Philadelphia-based firm oversees about $7 billion. "The uncertainty has forced individual investors and institutions into more defensive types of stocks."

Value Stocks

Hormel Foods's valuation climbed 33 percent to 20.3 times estimated earnings in the last 12 months. The multiple for the maker of Spam luncheon meat is 30 percent higher than the me! an for the! decade before the bull market, according to data on reported earnings compiled by Bloomberg.

CenterPoint Energy, which distributes power to Houston, is up 30 percent in 2013, boosting the price-earnings ratio to 17.2 from 14.1 in January. Before this year the utility provider traded at a 33 percent average discount to the S&P 500 since 1990, data compiled by Bloomberg show.

Shares of AmerisourceBergen Corp., the pharmaceutical company that pays a 24-cent dividend, advanced 61 percent this year. The price-earnings ratio for the Valley Forge, Pennsylvania-based company increased 53 percent to 18.9 in 2013, Bloomberg data show.

Stock Multiples

Those valuations are about the same as stocks with earnings more tied to economic growth. Ralph Lauren, the retailer of its namesake brand clothing, trades at 19.1 times profit projections. Citrix Systems, the Fort Lauderdale, Florida-based software maker, has a multiple of 17.6, and Monsanto Co., the world's largest seed company, trades at 21.1 times earnings. ˜

"Investors are assigning similar values to more stocks despite very different earnings growth profiles," Brian Belski, chief investment strategist with BMO Capital Markets, wrote in a note last month. "These trends are not likely to continue."

The longer a rally goes on, the more valuations adjust to individual companies' earnings, meaning stocks with lower growth whose multiples have surged this year may see them drop back down, according to Belski.

While stock prices have risen faster than S&P 500 profits, analysts expect earnings to pick up in 2014. Profits will expand 10 percent next year and 11 percent in 2015, according to Bloomberg data. Nine of 10 S&P 500 industries will post faster individual growth next year, analyst estimates compiled by Bloomberg show.

Fair Value

"The P/E is just a reflection of expectations of how much those cash flows are going to grow," Wayne Lin, a portfolio manager at Baltimore-based Legg! Mason In! c., which oversees $670 billion, said in a Nov. 13 phone interview. "Earnings can continue to grow," he said. "This runup is just a return to fair value for equities."

Shares of companies whose earnings depend on economic growth are still cheaper than historic averages. A group of technology stocks has a valuation of 14.6, 27 percent lower than the average since 1991 and a fraction of the level it reached in 2000, data compiled by Bloomberg show. Energy shares are 9.1 percent cheaper than the 22-year average.

The full S&P 500 trades at about 17.5 times trailing 12-month earnings, in line with the average since the end of World War II, according to S&P data. The multiple stayed low as profits almost doubled from the level in 2008 and the Fed's accommodative policies kept stocks relatively attractive.

'Not Expensive'

"With interest rates at current levels, the market is not expensive," Donald Selkin, who helps manage about $3 billion as the New York-based chief market strategist at National Securities Corp., said in a Nov. 14 phone interview. "The market has room to go higher."

Stocks have jumped as the Fed held its benchmark lending rate near zero since December 2008 and bought more than $2.3 trillion in Treasuries through unprecedented quantitative easing programs. Economists say the Fed will lower the $85 billion in monthly purchases to $70 billion in March, according to the median in a Bloomberg News survey conducted Nov. 8.

"What everybody's been trying to figure out this year is how much longer is the Fed going to keep us on life support and if they do taper, are we going to continue to see the growth we've enjoyed the past couple of years?" Thomas Garcia, head of equity trading at Santa Fe, New Mexico-based Thornburg Investment Management Inc., said in a Nov. 14 phone interview. His firm manages more than $90 billion. "That's the big question."

Bull Markets

The last time the dispersion of valuations came c! lose to b! eing this narrow was in October 2006, a year before the last bull market ended, Goldman Sachs data show. Before that, multiples were most compressed in September 1997, 10 months before the biggest bull market on record ended.

Goldman Sachs's price-earnings ratio dispersion is a monthly reading of standard deviation, or the variance from the average, for companies in the S&P 500. Goldman Sachs compiles data for companies whose price-estimated earnings ratios are between zero and 75.

Bull markets since World War II have ended after about four years, according to the average of data compiled by Bloomberg and Birinyi Associates Inc. This rally has lasted more than 4 1/2 years. Its 166 percent gain has exceeded the 122 percent average return for the last 12 bull markets.

"We've gone from the fear of losing to the fear of losing out," Leclerc said. "That's always a dangerous inflection point."

Stupid things finance people say

My job requires reading a lot of financial news. It's one of my favorite parts. But it gives me a front-row seat to the downside of financial journalism: gibberish, nonsense, garbage, and drivel. And let me tell you, there's a lot of it.

Here are a few stupid things I hear a lot.

"They don't have any debt except for a mortgage and student loans."

OK. And I'm vegan except for bacon-wrapped steak.

"Earnings were positive before one-time charges."

This is Wall Street's equivalent of, "Other than that Mrs. Lincoln, how was the play?"

"Earnings missed estimates."

No. Earnings don't miss estimates; estimates miss earnings. No one ever says "the weather missed estimates." They blame the weatherman for getting it wrong. Finance is the only industry where people blame their poor forecasting skills on reality.

"Earnings met expectations, but analysts were looking for a beat."

If you're expecting earnings to beat expectations, you don't know what the word "expectations" means.

"It's a Ponzi scheme."

The number of things called Ponzi schemes that are actually Ponzi schemes rounds to zero. It's become a synonym for "thing I disagree with."

"The [thing not going perfectly] crisis."

Boy who cried wolf, meet analyst who called crisis.

"He predicted the market crash in 2008."

He also predicted a crash in 2006, 2004, 2003, 2001, 1998, 1997, 1995, 1992, 1989, 1984, 1971...

"More buyers than sellers."

This is the equivalent of saying someone has more mothers than fathers. There's one buyer and one seller for every trade. Every single one.

"Stocks suffer their biggest drop since September."

You know September was only six weeks ago, right?

"We're cautiously optimistic."

You're also an oxymoron.

[Guy on TV]: "It's time to [buy/sell] stocks."

Who is this advice for? A 20-year-old with 60 years of investing in front of him, or a 82-year-old widow who needs money for a nursing home? Doesn't th! at make a difference?

"We're neutral on this stock."

Stop it. You don't deserve a paycheck for that.

"There's minimal downside on this stock."

Some lessons have to be learned the hard way.

"We're trying to maximize returns and minimize risks."

Unlike everyone else, who are just dying to set their money ablaze.

"Shares fell after the company lowered guidance."

Guys, they just proved their guidance can be wrong. Why are you taking this new one seriously?

"Our bullish case is conservative."

Then it's not a bullish case. It's a conservative case. Those words mean opposite things.

"We look where others don't."

This is said by so many investors that it has to be untrue most of the time.

"Is [X] the next black swan?"

Nassim Taleb's blood pressure rises every time someone says this. You can't predict black swans. That's what makes them dangerous.

"We're waiting for more certainty."

Good call. Like in 1929, 1999 and 2007, when everyone knew exactly what the future looked like. Can't wait!

"The Dow is down 50 points as investors react to news of [X]."

Stop it, you're just making stuff up. "Stocks are down and no one knows why" is the only honest headline in this category.

"Investment guru [insert name] says stocks are [insert forecast]."

Go to Morningstar.com. Look up that guru's track record against their benchmark. More often than not, their career performance lags an index fund. Stop calling them gurus.

"We're constructive on the market."

I have no idea what that means. I don't think you do, either.

"[Noun] [verb] bubble."

(That's a sarcastic observation from investor Eddy Elfenbein.)

"Investors are fleeing the market."

Every stock is owned by someone all the time.

"We expect more volatility."

There has never been a time when this was not the case. Let me guess, you also expect more winters?

"This is a strong buy."

What do I do with ! this? Cli! ck the mouse harder when placing the order in my brokerage account?

"He was tired of throwing his money away renting, so he bought a house."

He knows a mortgage is renting money from a bank, right?

"This is a cyclical bull market in a secular bear."

Vapid nonsense.

"Will Obamacare ruin the economy?"

No. And get a grip.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

<SCRIPT language='JavaScript1.1'SRC="http://ad.doubleclick.net/adj/N4538.USAToday/B2304017.8;abr=!ie;sz=550x300;ord=[timestamp]?"></SCRIPT><NOSCRIPT><AHREF="http://ad.doubleclick.net/jump/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?"><IMGSRC="http://ad.doubleclick.net/ad/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?" BORDER=0 WIDTH=550 HEIGHT=300ALT="Advertisement"></A></NOSCRIPT>

Hunt for Sony’s PlayStation 4 a game in itself

The consumer quest has begun for the current video game holy grail, the PlayStation 4.

Sony's new PS4 home game console officially goes on sale Friday for $399.

Demand for the PS4 and Microsoft's own new home system, the Xbox One (out Nov. 22, $499) is expected to outstrip supply through the holiday season and into 2014, says Norman Fong, CEO and co-founder of BuyVia, which has a smartphone app for tracking retail deals.

Consumers started lining up at retailers in San Francisco on Thursday morning, Fong says, in anticipation of the first systems to be sold after midnight.

Elsewhere, the line at the Game Stop store in West Ocean City, Md., began at 4 a.m. Thursday, when 14-year-old James Stewart brought a folding lawn chair and parked it right beside the entrance.

Stewart, of Ocean Pines, Md., got a ride to the store at the White Marlin Mall from his uncle, Danny Parker, 46. They showed up so early because they expected a much longer line by daybreak, but that never materialized, both said.

14-year-old James Stewart of Ocean Pines, Md., was first in line at his local GameStop in West Ocean City, Md., to get a Sony PlayStation 4 Thursday.(Photo: Brian Shane, The (Salisbury, Md.) Daily Times)

"Later on tonight it's going to be a lot worse, because that's when all the people who got pre-orders are going to come down here," Stewart said.

Tony Coffield, 21, of Ocean Pines, Md., said he knows the rival XBox One is coming out soon, but he won't be buying it. Besides the fact that the new Xbox retails for $100 more, he thinks PlayStation 4 has superior graphics and gameplay. "The realism is amazing," he said.

A handful of gamers arrived at Best Buy in Green Bay, Wis., when the store opened at 10 a.m. Thursday to get in line fo! r a limited supply of the $399 consoles, a sales associate said.

Best Small Cap Companies To Buy For 2014

In Appleton, Wis., a GameStop store roped off a waiting area for the die-hards hoping to get a first play of the new system.

Jason Allen was the first in line shortly after noon Thursday. He joked that the console would be a Christmas gift for his kids, but might have to be opened shortly after midnight, "just to make sure the thing works."

Consumers are eager because the PlayStation 4 is Sony's first new home system in seven years, an eternity in the fast-paced consumer technology world. Sony and Microsoft hope to reinvigorate the console game market with their new higher-powered systems and more immersive and innovative games.

Retailers from Best Buy to Target have sold many of the initial systems to consumers on pre-order. But most stores hope to have a few extras available for the hopeful.

"We have thousands of pre-orders, but we also have PlayStation 4s on hand for people to purchase," says Walmart spokeswoman Sarah McKinney.

While it expects to run out, Walmart will have PS4 and Xbox One systems for Black Friday shoppers. "We're going to be putting them out as fast as we can get them in," she says.

Sony has sold more than 1 million PS4s to retailers already and hopes to sell more than 5 million globally by the end of March. "Getting out of the gate is important," says Sony Computer Entertainment President and CEO Andrew House.

Competitor Nintendo released its Wii U last November and has had moderate success with that new system. It has sold more than 3 million so far. That's a much slower sales rate than that of its predecessor the Wii. Sony and Microsoft are expected to perform better and to benefit from slow Wii sales, says Piers Harding-Rolls, head of games research for global market analysis firm IHS.

By beating Xbox One to market by a wee! k and bei! ng priced $100 below the competition, Sony "has got itself into a much stronger position at the launch of the PS4 compared to the PS3," he says.

Still, he expects few Xbox defectors because of Microsoft's successful Xbox Live online gaming network, which is extremely popular in the U.S. "As such in these opening weeks we expect Xbox One to outsell PS4 in North America, with the reverse taking place in Europe," he says.

Contributing: Nick Penzenstadler, The (Appleton, Wis.) Post-Crescent; Brian Shane, The (Salisbury, Md.) Daily Times.

Yellen to defend Fed’s stimulus policies

Janet Yellen, President Obama's nominee to succeed Ben Bernanke as Federal Reserve chairman, will defend the Fed's controversial stimulus policies at her confirmation hearing Thursday, according to her written testimony.

"I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy," Yellen will say in her opening statement to the Senate banking committee, which was released Wednesday afternoon.

Yellen is known as one of the Fed's most "dovish" policymakers — meaning she has placed more emphasis on reducing unemployment than in staving off eventual high inflation.

Committee Republicans are expected to argue that the Fed's $85 billion in monthly bond purchases will stoke inflation in future years while providing steadily diminishing benefits to the economy.

In her statement, Yellen says that current conditions support the Fed's stimulus.

"We have made good progress, but we have farther to go to regain ground lost in the crisis and the recession," her statement says. "Unemployment is down from a peak of 10%, but at 7.3% in October, is still too high, reflecting a labor market and economy performing far short of their potential. At the same time, inflation has been running below the Federal Reserve's goal of 2% and is expected to continue to do so for some time."

She adds: "For these reasons, the Federal Reserve is using its monetary policy to promote a more robust recovery."

Yellen is also expected to support strengthening regulation of large financial institutions to reduce the threat of another financial crisis, but not at the expense of hindering small banks.

Beefing up oversight and requiring banks to hold more capital to protect against possible losses "are important tools for addressing the problem of financial institutions that are regarded as 'too big to fail,' " her statement says.

"In writing new rules, however, the Fed should continue to limit the regulatory burden for community! banks and smaller institutions, taking into account their distinct role and contributions."

Yellen also noted that she has led a Fed effort to more clearly communicate with the public, including setting a 2% goal for annual inflation.

The goal "has helped anchor the public's expectations that inflation will remain low and stable in the future," her statement says. "In this and many other ways, the Federal Reserve has become a more open and transparent institution. I have strongly supported this commitment to openness and transparency, and will continue to do so if I am confirmed and serve as chair."

Yellen is expected to be confirmed by the Democratic-controlled Senate before Bernanke steps down in January.

Some Republican senators, including Sen. Rand Paul, R-Ky., and Sen. Lindsey Graham, R.-S.C., have threatened to block her nomination, but Democrats are expected to join with a handful of Republicans to remove the block.

A Record Year for MLP IPOs

There were 14 MLP IPOs in 2007. Until this year, that was the record, but so far in 2013 there have been 15 MLP IPOs with perhaps more to come before year end. One of the more recent IPOs was Sprague Resources (NYSE: SRLP), which debuted on Oct. 25.

Sprague Resources is engaged in the purchase, storage, distribution and sale of refined petroleum products. The partnership also provides storage and handling services for a broad range of materials. Sprague is one of the largest independent wholesale distributors of refined products in the Northeast US, owning and/or operating a network of 15 terminals located throughout the Northeast. These have a combined storage capacity of  9.1 million barrels for refined products and other liquid materials, and 1.5 million square feet of materials handling capacity.

Location of Sprague Resources LP’s terminals. Source: SRLP SEC filing

In the IPO, Sprague sold 8.5 million common units initially priced at $18, but the price has slipped since. The partnership forecasts a minimum quarterly distribution of $0.4125 per unit, or $1.65 per unit annually. As the most recent closing price of $17.60, that translates into a minimum annual yield of 9.4 percent.

Arc Logistics Partners (NYSE: ARCX) opened for trading on Nov. 6. This midstream partnership was formed by Lightfoot Capital to own, operate, develop and acquire a diversified portfolio of complementary energy logistics assets. The partnership is engaged in the terminalling, storage, throughput and transloading of crude oil and petroleum products. It intends to grow the business through the optimization, organic development and acquisition of terminalling, storage, rail, pipeline and other energy logistics assets that generate stable cash flows.

The 6 million common unit IPO opened flat at $19. ARCX plans to pay a minimum quarterly distribution of $0.3875 per unit each quarter, or $1.55 on an annualized basis. At the recent closing price of $19.04, this translates into an annual yield of 8.1 percent.

Midcoast Energy Partners (NYSE: MEP) is an Enbridge Energy Partners (NYSE: EEP)-backed LP that went public on Nov. 7. The partnership is a pure-play US natural gas and NGL midstream business with a 39 percent controlling interest in Midcoast Operating, a limited partnership that owns a network of natural gas and NGL gathering and transportation systems, natural gas processing and treating facilities and NGL fractionation facilities primarily located in Texas and Oklahoma. Midcoast Operating also owns and operates natural gas, condensate and NGL logistics and marketing assets that support its gathering, processing and transportation business.

The business primarily consists of gathering unprocessed and untreated natural gas from wellhead locations and other receipt points, processing the natural gas to remove NGLs and impurities at processing and treating facilities and transporting the processed natural gas and NGLs to intrastate and interstate pipelines for transportation to customers and market outlets. The partnership also markets natural gas and NGLs to wholesale customers.

The IPO raised $333 million by offering 18.5 million shares at $18. This was below the expected range of $19 to $21. MEP’s partnership agreement provides for a minimum quarterly distribution of $0.3125 per unit for each whole quarter, or $1.25 per unit on an annualized basis. At the recent closing price of $17.83 this equates to an annual yield of 7.0 percent.

The Refining MLP Bloodbath

I warned last week that refiners would report relatively poor earnings for Q3, and refinery MLPs could take a hit, presenting a buying opportunity. On Nov. 6 Alon USA Partners (NYSE: ALDW) reported a loss for the third quarter of $16.1 million, or ($0.26) per unit, compared with net income of $120.4 million for the same period last year. Paul Eisman, CEO and president, cited the deteriorating margins that I discussed in last week’s issue: “Our third quarter results were impacted by a volatile and deteriorating margin environment resulting primarily from decreasing discounts for West Texas crude oil.”

As a result, the partnership announced that there would be no money available for a quarterly distribution. Unit prices fell nearly 10 percent immediately after the earnings release, and continued to drift lower from there before today’s 9 percent rebound.

Calumet Specialty Products Partners (Nasdaq: CLMT) also reported a net loss for the quarter of $34.8 million, or ($0.54) per diluted unit, compared with net income of $42.4 million, or $0.69 per diluted unit, for the same quarter in 2012. Units traded down nearly 13 percent for the week.

Northern Tier Energy (NYSE: NTI) will report earnings this week. The partnership closed last week down less than 1 percent, but interested investors should find a cheaper entry point this week as earnings will undoubtedly be disappointing.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

3 Aerospace and Defense Stocks to Buy Now

Popular Posts: 6 Biotechnology Stocks to Buy Now5 Oil and Gas Stocks to Buy Now9 Biotechnology Stocks to Sell Now Recent Posts: 3 Aerospace and Defense Stocks to Buy Now 4 Mortgage Stocks to Buy Now 5 Diversified Utilities Stocks to Buy Now View All Posts

The grades of three Aerospace and Defense stocks are on the rise this week on Portfolio Grader. Each of these stocks is rated an “A” (“strong buy”) or “B” overall (“buy”).

Innovative Solutions and Support, Inc. (NASDAQ:) is making headway this week, with the company’s rating improving to an A (“strong buy”) from a B (“buy”) last week. Innovative Solutions and Support designs, manufactures, and sells flight information computers, electronic displays, and advanced monitoring systems to the military and government, commercial air transport, and corporate aviation markets. In Portfolio Grader’s specific subcategories of Margin Growth and Sales Growth, ISSC also gets A’s. .

This week, Honeywell (NYSE:) is showing significant improvement as the company’s rating hops from a C (“hold”) to a B (“buy”). Honeywell International is a worldwide diversified technology and manufacturing company providing aerospace products and services, control, sensing and security technologies, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions. .

This is a strong week for SIFCO Industries, Inc. (AMEX:). The company’s rating climbs to B from the previous week’s C. SIFCO Industries is engaged in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. .

Top Energy Companies To Watch In Right Now

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Triple Your Gains With These 5 Cash-Rich Stocks

BALTIMORE (Stockpickr) -- There's blood in the water this week. That's the explanation for the second-biggest selloff of the summer yesterday, a decline that shoved the S&P 500 down 1.5% on Tuesday and touched 2% lower on the Nasdaq Composite.

Investor anxiety has been the overarching thread across the markets for the last few months, so it's not surprising that we're seeing stocks give something back in August. The fact is, we're still very much in a rallying market right now -- just 4.5% off from all-time highs as I write.

That's a correction, not a crash.

But it still makes sense to go defensive with cash-rich stocks right now. Not just to avoid losses as the market corrects -- but also to triple your gains on the way up.

You don't have to take my word for it; over the last decade, the top tier of cash-rich stocks worldwide generated total returns of 297%. That's triple what the S&P earned over the same period. Yes, cash is still king this year.

Part of that stellar outperformance has to do with what cash enables companies to do. Capital gains are great, but historically speaking, the majority of portfolio growth comes from other sources. Dividends, share buybacks and debt repurchases all inject value directly into your shares, and on a year-to-year basis, they also account for around 50% of annual stock performance. Only companies with cash that have the wherewithal to boost those payouts on command.

In short, cash provides options. Firms with cash can opt to increase shareholder value by paying a dividend or initiating a share buyback. Plus, they have the ability to take advantage of pricey M&A opportunities and internal investments.

Lots of companies have big cash positions right now. In fact, more than 25% of the S&P 500's valuation is made up of the record cash holdings on corporate balance sheets. That means that it pays to be a little more selective with which companies you consider cash-rich.

To do that, we'll focus on firms that fit the tight set of quantitative criteria that beat the S&P by a factor of three. Today, we'll take a look at five of them.

Activision Blizzard

Up first is Activision Blizzard (ATVI), a stock that's made my list of cash-rich companies for a while now. Of course, this $18 billion video game publisher has also turned out some stellar performance in 2013, rallying 51% since the calendar flipped over to January. With more than $4.3 billion in net cash, ATVI looks cheap despite its huge returns this year. Ex-cash, the stock's P/E ratio comes in at a gaunt 10.3.

Activision Blizzard built that huge cash position with one of the most attractive business models in the video game industry. The firm owns some of the hottest video game franchises in the world, including Call of Duty, World of Warcraft and Diablo. But Activision doesn't just sell games -- it also earns revenues on an ongoing basis through subscription-based multiplayer games like World of Warcraft.

WoW's 8 million subscribers provide substantial low-effort cash for ATVI. And because gamers have a massive sunk cost in building characters and attaining status, they're a lot less likely to switch to a competing franchise and restart the process. Not surprisingly, the firm has been hard at work to bring a similar model to its other franchises. Right now, around a quarter of ATVI's market capitalization is paid for in cash.

That dramatically reduces the risks associated with buying shares right now.

NetApp

2013 has been a strong year for shares of NetApp (NTAP) too -- just not quite as strong as Activision's. NTAP has seen its shares rally close to 24% year-to-date, outpacing the S&P's climb by nearly 10% this year. And again, NetApp's huge net cash position washes a lot of the risk out of shares.

NetApp sells data management hardware, software and services to enterprise IT customers across the world. The firm's biggest business comes from selling network attached storage, devices that can connect to clients' existing networks to boost capacity without other huge changes to their existing tech infrastructure. That makes it an ideal vendor for firms whose storage needs are gradually increasing (and those who don't want to shell out massive capital for all-new IT infrastructure). As cloud computing continues to ramp up demand for computer storage, NTAP is finding itself on the right side of a very lucrative trend.

That trend has transformed into cash. Right now, NetApp has $4.09 billion in cold, hard cash on its balance sheet -- a safety net that covers 27% of this stock's current market capitalization. As long as management can figure out a smart way to earn returns on that big cash balance (or return it to shareholders), expect NTAP to perform well.

Western Digital

NetApp isn't the only computer storage stock that's flush with cash. Western Digital (WDC) is another.

Western Digital is the largest hard drive maker in the world, thanks to last year's acquisition of Hitachi Global Storage Technologies. The firm's customers include enterprise IT departments and original equipment manufacturers as well as consumer technology retailers, who sell WDC's popular line of internal and external hard drives.

The exact same growing demand for data that's boosting NTAP is providing tailwinds for Western Digital right now. On the consumer side, one of the biggest changes has been individuals' data needs. Today, more consumers than ever before carry around high-definition cell phone cameras capable of consuming gigabytes of storage capacity in minutes -- data that's generally backed up across multiple devices. As data needs continue to increase, WDC should continue to be one of the biggest beneficiaries.

The transition to newer technologies like flash memory does pose some threats to WDC. But the firm is fighting back the best way. By using some of its $2.35 billion net cash position to acquire flash memory makers like Stec (STEC). The firm's hefty cash balance gives it the ability to ramp up its investments in flash to avoid falling behind as prices fall for the technology.

eBay

Online auction site eBay (EBAY) is no slouch in the cash category – the firm's net cash stands at more than $2.3 billion. Add investments into that number, and eBay's wherewithal jumps to $8.4 billion. That's a substantial cash cushion, even for a $65 billion firm like eBay. It's enough to cancel out 13% of the firm's outstanding shares, for example, or enough to bring the firm's lofty price-to-earnings ratio down to a more manageable 21.

eBay is one of the largest marketplaces in the world. The trading platform moved more than $75 billion in merchandise last year, with eBay collecting a fee for every item along the way. eBay's popularity has helped to create a true payment processing standard in PayPal, which itself moved more than 20% of global online payments last year. That's a jaw-dropping stat for eBay investors. Right now, PayPal boasts more active users than some of the second-tier payment card names, giving it a huge pool of users to sell merchants on. As the network makes its way into brick-and-mortar stores, it's very conceivable that eBay's auction site could eventually become a side-business for the firm, not the other way around. That said, some of PayPal's policies are very unfriendly to customers, a stark contrast to conventional payment processors. The firm will need to work on its bedside manner if it wants to continue to grow its userbase.

Meanwhile, auctions still make up the biggest part of the business. By being on both sides of auction transactions (eBay caters to both buyers and sellers), the firm has found a lucrative business catering to small business, with everything from shopping cart software to invoicing platforms. Investors should appreciate the fact that eBay tends to focus on entering new markets that are instantly monetized -- unlike some of its conspicuous tech sector peers.

Altera

Last up is semiconductor firm Altera (ALTR), a leader in the programmable logic device market, a subset of chips that can have their circuitry reprogrammed by the manufacturer's clients. Altera's customers include original equipment manufacturers of everything from communications devices to automobile components.

PLDs have historically been a costlier way to add features to a device. But as prices drop, Altera is opening itself up to new markets that were constrained by chip costs in the past. The flexibility that a PLD provides manufacturers make them perfectly suited to lower-volume product runs, especially in applications like industrial, communications, or automotive technology. A production deal with Intel (INTC) gives Altera access to the most advanced manufacturing facilities in the world, enabling the firm to compete with cutting edge purpose-built chips.

Not that Altera has had difficulty competing lately. The firm's balance sheet has been growing steadily, to the point where ALTR currently carries $2.3 billion in net cash on its balance sheet. Expect strategic investments and share buybacks to be management's best bets at freeing up that cash for investors' benefit.

To see these value-centric names in action, check out the Cash Rich Buys Fall 2013 portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Are Fundamental ETFs Better?

At the end of summer, there was nearly $1.5 trillion in assets under management across the U.S. universe of exchange-traded products, including ETFs and ETNs. And while traditional market capitalization weighted funds still rule the roost, ETFs that use alternative weighting strategies deserve attention.

Through mid-2013, non-market cap weighted funds captured 42% of equity ETP flows YTD, more than two times their share of equity assets compared to 2012, according to BlackRock. Key drivers to this trend are dividend income and minimum volatility funds.

It should be noted the universe of non-market cap weighted ETFs includes equal weight funds, low and high volatility products along with fundamentally weighted products that use one or multiple factors for screening and weighting securities. To be sure, investors, professional and retail, have already displayed plenty of adulation for equal weight ETFs.

For example, the Guggenheim S&P 500 Equal Weight ETF (RSP) has outperformed the SPDR S&P 500 (SPY) and related S&P 500 tracking funds by significant margins for some time. Over the past 10 years, RSP has delivered a 9.74% return compared to 7.47% for SPY.

Then there are the examples of equal weight technology sectors that have outperformed cap weighted peers that featured outsized exposure to Apple. Over the past year, Apple is down over 27%, so it might be a pleasant surprise that the cap-weighted PowerShares QQQ (QQQ) is up 16.67%. However, the real pleasant surprise is how the First Trust NASDAQ-100 Equal Weighted Index (QQEW) is up nearly 31% over that same time. This highlights the advantages of devoting less concentration to stock market giants, especially when they falter.

Fundamental Factors

Various ETF issuers feature fundamentally weighted funds that use one or more factors for selecting and weighting stocks.

For example, the RevenueShares ETFs own the same stocks within the S&P 500, S&P MidCap 400 and S&P SmallCap 600, but weight holdings according to top line revenue. “We believe that by applying the revenue weighted methodology to the S&P indexes, investors will lower their exposure from overvalued companies that are inflated by the market,” states the company’s website.

Other providers, like InvescoPowerShares, take a multi-factor approach, weighting stocks by book value, cash flow, dividends and sales.

Importantly, advisors should note that each issuer applies different fundamental methodologies to their respective ETF menus. Some fundamental ETFs have shown a propensity for outperforming their cap weighted rivals.

Case Study

InvescoPowerShares has one of the largest stables of fundamentally weighted ETFs, and the underlying indexes are managed by FTSE and Research Affiliates (RAFI).

“Unlike traditional benchmark indexes, the FTSE RAFI Index series uses a weighting structure that embodies four fundamental measures of size: five-year averages of sales, cash flow and dividends plus current book value,” according to a PowerShares white paper.

We chose to examine one of the largest PowerShares/RAFI ETFs, the PowerShares FTSE RAFI US 1000 Portfolio (PRF). PRF has $2.35 billion in assets under management, has average daily dollar volume of over $8 million and almost never trades at a noticeable premium or discount to its net asset value, indicating the fund is sufficiently liquid.

PRF competes directly with the $7.97 billion iShares Russell 1000 ETF (IWB). Both funds feature ExxonMobil as one of their top holdings, but Apple is not even a member of PRF’s top 10 lineup. There are noticeable differences at the sector level as well. IWB has an 18.48% weight to financials and a 9.77% allocation to energy stocks. Those sectors account for 21% and 11.9% respectively, of PRF’s weight. IWB is the less expensive with annual fees of 0.15% compared to 0.39% for PRF.

Low expense ratios are often a source of allure for ETF investors, and if all things were equal, then IWB would be the easy choice. Everything is not equal in this comparison, particularly when it comes to how PRF’s use of book value, cash flow, sales and dividends as screening factors has led to noticeable, long-term performance differentials.

An investor that had put $100,000 into IWB five years ago would have roughly $140,000 today. Not too shabby, but the investor that opted for PRF would have over $160,000 today, enough of a gap to render the expense ratio difference a moot point. For those with a preference for narrower time frames, PRF has easily topped IWB over the past 12, six and three months while being only slightly more volatile.

Embracing Fundamentals

Fundamental indexing is gaining a more prominent place in ETF menus.

In August, Charles Schwab unveiled six new Schwab Fundamental Index ETFs that charge annual expense ratios between 0.32% to 0.46%. The new ETFs are linked to the Russell Fundamental Index Series, which is based on methodology developed by Rob Arnott and Research Affiliates.

“We’re here to help advisors and investors alike recognize that Fundamental Index funds—whether ETFs or mutual funds—are a thoughtful way to gain broad industry exposure, right alongside their market cap-weighted counterparts,” said Marie Chandoha, president of Charles Schwab Investment Management. “We believe the systematic approach inherent in fundamentally weighted methodologies, when used alongside cap weighted strategies, enables investors to diversify and balance their exposure.”

Conclusion

The PRF/IWB comparison is just one example of differences that fundamental versus market cap weighting can make. It should be noted that not all fundamentally weighted ETFs outperform their cap weighted rivals. Still, there are notable examples of outperformance by fundamental ETFs. The PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) has beaten the iShares Russell 2000 ETF (IWM) by more than 400 basis points over the past year.

According to the Independent Advisor Outlook Study by Schwab Advisor Services, 59% of its RIA clients currently invest in fundamentally weighted products, and roughly one in five plans to invest more in the near term.

It would be erroneous to see fundamental weighting as the “holy grail” of ETF construction. However, it is evident that some fundamental ETFs have a worthy place in client portfolios over cap weighted products. 

Oriens Travel and Hotel Management is On the Verge (OTHM)

Call it a hunch, because that's all it is, but I've got a feeling Oriens Travel and Hotel Management Corp. (OTCMKTS:OTHM) is on the verge of a trade-worthy move. The hotel and property management company was completely unknown just a few weeks ago, but of the growing buzz surrounding OTHM is any indication (and it usually is), then a big move is just around the corner.

For most intents and purposes, Oriens Travel and Hotel Management didn't exist as a company before February of this year. For whatever reason, that's when the company started to get serious (again) about being in business. It unveiled an online-booking system in March that catered to PayPal and Google Pay users, and a few months later that system was chosen to be the central booking system for a new $20 million hotel build. Last month the company announced it had put an investor-relations plan into place - proof that it realized publicity is just as important for a stock's success as corporate performance is - and just today the company announced it was being named as the ticket manager of a major overseas sports stadium. It's a quantity and quality of activity that simply didn't exist a year ago, and over the course of the activity buildup, OTHM has begun to trade on substantial volume.

Now, those who've been following the Oriens Travel and Hotel Management Corp. story will know that for as much good news as the company has been behind of late, the stock has suspiciously not moved higher. Be patient - that may be about to change.

Take a closer look at the chart of OTHM below. Yes, with just a quick glance it looks like little more than a volatile mess. The longer you study the chart of Oriens Travel and Hotel Management, however, the more you'll start to notice things like the fact that we've seen a series of higher lows since July, and that several 'up' days have unfurled on higher volume while we've seen no high-volume 'down' days. The attack the stock has mounted against all of its key moving averages (to the extent it matters for a young small stock like this one anyway) also suggests a brewing bullishness that we haven't seen in a while.

The key and clincher to an explosive rally from Oriens Travel and Hotel Management Corp. is one more close above the 200-day moving average line, which could materialize this week... maybe even today. That may catapult the stock for several days, and dole out a quick but sizable bullish reward.

Hot Growth Stocks To Watch Right Now

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