US Stock Futures Edge Higher Ahead of Home Sales Report

Pre-open movers

US stock futures gained in early pre-market trade. The NAR's pending home sales index for November will be released at 10:00 a.m. ET, while the Dallas Fed general business activity index for December will be released at 10:30 a.m. ET. Futures for the Dow Jones Industrial Average surged 15 points to 16,436.00, while the Standard & Poor's 500 index futures gained 1.30 points to 1,837.80. Futures for the Nasdaq 100 index rose 0.75 points to 3,571.00.

A Peek Into Global Markets

European markets were lower today, with the Spanish Ibex Index falling 0.16%, London's FTSE 100 index dropping 0.24% and STOXX Europe 600 Index dipping 0.13%. German DAX 30 index declined 0.14% and French CAC 40 Index dropped 0.02%. Italian manufacturing business confidence rose to 98.2 in December.

Asian markets ended mixed today. Japan's Nikkei Stock Average rose 0.69%, China's Shanghai Composite dropped 0.18%, Hong Kong's Hang Seng Index gained 0.01% and India's BSE Sensex fell 0.24%.

Broker Recommendation

Analysts at Guggenheim downgraded The Walt Disney Company (NYSE: DIS) from "neutral" to "buy."

Disney's shares closed at $74.35 on Friday.

Breaking news

Vitran Corporation (NASDAQ: VTNC) announced today that it has entered into a definitive arrangement agreement with TransForce pursuant to which TransForce has agreed to acquire all of the outstanding common shares of Vitran not already owned by TransForce for US$6.50 in cash per share, in accordance with TransForce's prior proposal. To read the full news, click here. ReneSola (NYSE: SOL) today announced it signed a Memorandum of Intent (MOI) to sell three utility-scale projects in Western China, with a total capacity of 60MW, to Jiangsu Akcome Solar Science & Technology Co on December 30, 2013. To read the full news, click here. Cooper Tire & Rubber Company (NYSE: CTB) today announced it has terminated the merger agreement with Apollo Tyres (NSE:ApolloTYRE). To read the full news, click here. RedHill Biopharma (NASDAQ: RDHL) today announced that it has entered into a definitive agreement with leading healthcare investor OrbiMed Israel Partners Limited Partnership, an affiliate of OrbiMed Advisors LLC, for the sale of RedHill's American Depository Shares and warrants in a private placement transactionor a total sum of $6.0 million. To read the full news, click here.

Posted-In: Guggenheim US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets

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

  Most Popular Slideshow: Apple's Giant iPad, iOS Beat Android And More From The Final Week Of December Short Sellers Place Their Holiday Retail Bets (AVP, BBY, GME) 'The Hobbit: The Desolation of Smaug' Grosses $128M Worldwide This Weekend Benzinga's Weekend M&A Chatter Stocks To Watch For December 30, 2013 Trina Solar to Develop 1GW Solar Power Plant Project in Xinjiang, Western China Related Articles (CTB + DIS) US Stock Futures Edge Higher Ahead of Home Sales Report Cooper Tire Terminates Merger Agreement with Apollo Tyres 'The Hobbit: The Desolation of Smaug' Grosses $128M Worldwide This Weekend Market Wrap For December 24: Markets Higher on Strong Durable Goods Data Marvel Comics New Muslim Character Could Diversify Cinematic Universe Twitter's Jack Dorsey Elected to Disney Board of Directors Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf

Broadcom Guidance Sinks Shares

Broadcom Corp. (NASDAQ: BRCM) reported third quarter 2013 results after markets closed on Tuesday. For the quarter, the semiconductor maker posted adjusted diluted earnings per share (EPS) of $0.76 on revenues of $2.15 billion. In the same period a year ago, the company reported EPS of $0.79 on revenues of $2.09 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.69 EPS and $2.13 billion in revenues.

On a GAAP basis, Broadcom reported quarterly diluted EPS of $0.55, compared with EPS of $0.38 in the same period last year. GAAP net income included a one-time gain of $75 million, a charitable contribution of $25 million and $12 million in restructuring charges.

The company's CEO said:

Looking forward, we are taking the necessary steps to tightly manage the business while focusing on strategic initiatives, including LTE, data center innovation and driving the next generation of home video with HEVC [high-efficiency video coding].

For the fourth quarter of the 2013 fiscal year, Broadcom expects revenue of $1.975 billion, plus or minus 3% and gross margins down in a range of 0.5% to 1% compared with the third quarter. The consensus estimate calls for fourth quarter EPS of $0.59 on revenues of $2.13 billion. For the full year, the consensus estimate calls for EPS of $2.62 on revenues of $8.36 billion.

Broadcom's fourth-quarter forecast will cancel the top and bottom line beats the company posted for the third quarter. Lower pricing for high-end mobile devices from all manufacturers has taken a particular toll on Broadcom. Shares are down nearly 20% over the past 12 months, while peers like Qualcomm Corp. (NASDAQ: QCOM), Texas Instruments Inc. (NASDAQ: TXN), and Nvidia Corp. (NASDAQ: NVDA) are up around 17%, 45%, and 30%, respectively.

Broadcom shares are trading down about 6.6% at $25.35 in after-hours trading Tuesday, in a 52-week range of $23.25 to $37.85. Thomson Reuters had a consensus analyst price target of around $32.60 before today's report.

You Place a Trade in Your Brokerage Account. What Happens Next?

Top Oil Stocks For 2014

Let's say you want to buy 100 shares of a stock. You place an order in your brokerage account. What happens next? How do you go from mouse click to owning shares in a company? And what happens when a hedge fund wants to do the same thing, but on a scale 10,000 times larger?

I recently met up with longtime New York Stock Exchange floor trader Doreen Mogavero. I asked her to explain the process. Here's what she had to say. (A transcript follows.)

Morgan Housel: Let's say I'm at home on my online brokerage account. I want to buy 100 shares of Coke. What happens then?

Doreen Mogavero: Well, your hundred shares of Coke may never reach this floor. It may be internalized at the vendor that you use. More than likely, an order that size would be internalized at a vendor. What we do here primarily as brokers these days is not so much the small retail order, but it's more dealing with the money managers and the pension funds and the larger orders.

Morgan Housel: So let's say I'm a hedge fund that wants to buy 1 million shares of Coke. How does that get to you? What is your job? How do you process that transaction?

Doreen Mogavero: Well, most of us have direct lines to the clients that we talk to, whether they're hedge funds or pension plans or whatever they may be, and the manager will send us an order electronically into our system. That will send into our handhelds, and then we will manage the order from there. We can from the floor here trade not just on this floor; we trade wherever the best price is. The New York Stock Exchange will, if the best price is not here, automatically route our order to the best price. We are compliant with all of the regulations of Reg NMS, so we are bound by Reg NMS to find the best price, so we have to be allowed and not restricted to just one area.

Show Me the Money, Carter's

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Carter's (NYSE: CRI  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Carter's generated $150.9 million cash while it booked net income of $170.3 million. That means it turned 6.2% of its revenue into FCF. That sounds OK. However, FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Carter's look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 2.3% of operating cash flow, Carter's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 3.8% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 39.5% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

With hundreds of companies out there vying with Carter's for shoppers' dollars, strong brands matter, and they can provide growth for even boring, mature companies -- as long as they're the right ones. That's why we've compiled a special report on "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Carter's to My Watchlist.

4 Stocks Under $10 Making Big Moves

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>4 Big Stocks on Traders' Radars

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Curis

Curis (CRIS) engages in the research, development, and commercialization of cancer therapeutics. This stock closed up 7% to $2.74 in Thursday's trading session.

Thursday's Range: $2.56-$2.77

52-Week Range: $2.44-$4.74

Thursday's Volume: 768,000

Three-Month Average Volume: 727,547

>>4 Stocks Triggering Breakouts on Unusual Volume

From a technical perspective, CRIS ripped sharply higher here right above its 52-week low of $2.44 with above-average volume. This move pushed shares of CRIS into breakout territory, since the stock took out some near-term overhead resistance at $2.64. Shares of CRIS closed above that breakout level since the stock closed at $2.74. Market players should now look for a continuation move higher in the short-term if CRIS manages to take out Thursday's high of $2.77 with strong volume.

Traders should now look for long-biased trades in CRIS as long as it's trending above Thursday's low of $2.56 or above $2.44 and then once it sustains a move or close above $2.77 with volume that hits near or above 727,547 shares. If we get that move soon, then CRIS will set up to re-test or possibly take out its next major overhead resistance level at $2.91. Any high-volume move above $2.91 will then give CRIS a chance to tag $3.20 to its 50-day moving average of $3.40.

RF Industries

RF Industries (RFIL) is engaged in the design, manufacture and marketing of interconnect products and systems, including coaxial and specialty cables, fiber optic cables and connectors, and electrical and electronic specialty cables. This stock closed up 6% to $9.58 in Thursday's trading session.

Thursday's Range: $9.05-$9.73

52-Week Range: $4.15-$14.84

Thursday's Volume: 140,000

Three-Month Average Volume: 219,716

>>5 Big Trades for Post-Taper Gains

From a technical perspective, RFIL spiked sharply higher here right above some near-term support at $8.68 with lighter-than-average volume. This stock recently dropped sharply lower from $14.84 to its low of $8.58. During that move, shares of RFIL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of RFIL have now started to reverse its downtrend and break out above some near-term overhead resistance levels at $9.40 to $9.42. Market players should now look for a continuation move higher in the short-term if RFIL manages to clear its 50-day moving average of $9.75 with strong volume.

Traders should now look for long-biased trades in RFIL as long as it's trending above Thursday's low of $9.05 or above $8.68 and then once it sustains a move or close above its 50-day at $9.75 with volume that hits near or above 219,716 shares. If we get that move soon, then RFIL will set up to re-test or possibly take out its next major overhead resistance level at $10.50. Any high-volume move above $10.50 could then send RFIL towards $11 to $12.

First Marblehead

First Marblehead (FMD) is a specialty finance company focused on education loan programs for K-12, undergraduate and graduate students in the U.S., as well as tuition planning, tuition billing, refund management and payment technology services. This stock closed up 10% to $7.02 a share in Thursday's trading session.

Thursday's Range: $6.21-$7.17

52-Week Range: $5.90-$19.20

Thursday's Volume: 81,000

Three-Month Average Volume: 60,870

>>5 Hated Earnings Stocks You Should Love

From a technical perspective, FMD spiked sharply higher here right above its 52-week low of $5.90 with above-average volume. This stock has been downtrending badly for the last two months and change, with shares falling from its high of $10.50 to its recent low of $5.90. During that move, shares of FMD have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this move on Thursday now has shares of FMD looking ready to reverse its downtrend and potentially enter a new uptrend.

Traders should now look for long-biased trades in FMD as long as it's trending above Thursday's low of $6.21 and then once it sustains a move or close above Thursday's high of $7.17 with volume that hits near or above 60,870 shares. If we get that move soon, then FMD will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $8.20 to $8.30. Any high-volume move above those levels will then give FMD a chance to tag its next major overhead resistance levels at $8.88 to $9.53.

Ziopharm Oncology

Ziopharm Oncology (ZIOP) is a biopharmaceutical company engaged in the development and commercialization of small molecule and synthetic biology approaches to new cancer therapies. This stock closed up 1.5% to $3.99 in Thursday's trading session.

Thursday's Range: $3.91-$4.08

52-Week Range: $1.49-$5.95

Thursday's Volume: 917,000

Three-Month Average Volume: 1.35 million

>>5 Stocks Under $10 Set to Soar

From a technical perspective, ZIOP spiked modestly higher here right off its 50-day moving average of $3.87 with lighter-than-average volume. This move is quickly pushing shares of ZIOP within range of triggering a big breakout trade. That trade will hit if ZIOP manages to take out Thursday's high of $4.08 to some more near-term overhead resistance levels at $4.25 to $4.34 with high volume.

Traders should now look for long-biased trades in ZIOP as long as it's trending above some key near-term support at $3.72 or above more support at $3.42 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.35 million shares. If that breakout triggers soon, then ZIOP will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $5.24. Any high-volume move above those levels will then give ZIOP a chance to tag its 52-week high at $5.95.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Hot Stocks to Trade (or Not)

>>5 Cash-Rich Stocks That Could Pay Triple the Gains in 2014

>>4 Stocks Rising on Unusual Volume

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Average 30-year mortgage moves up to 4.47%

WASHINGTON (AP) — Average U.S. rates for fixed mortgages rose slightly this week but remained near historically low levels.

Mortgage buyer Freddie Mac said Thursday the rate on the 30-year loan increased to 4.47% from 4.42% last week. The average on the 15-year fixed loan rose to 3.51% from 3.43%.

Mortgage rates peaked at 4.6% in August and have stabilized since September, when the Federal Reserve surprised markets by taking no action on starting to reduce its $85 billion-a month bond purchases. The Fed decided this week that the outlook for the economy appeared strong enough for it to reduce the monthly bond purchases starting in January by $10 billion.

The purchases are designed to keep long-term rates such as mortgage rates low.

A government report issued Wednesday showed that U.S. builders broke ground on homes in November at the fastest pace in more than five years, strong evidence that the housing recovery is accelerating despite higher mortgage rates.

Data from the National Association of Realtors released Thursday showed the number of people who bought existing homes last month declinedfor the third straight month as higher mortgage rates made home-buying more expensive. In addition, the lingering impact of the partial government shutdown in October may have deterred some sales. Still, the Realtors' association projects that total U.S. home sales this year will be 5.1 million. That would be the strongest since 2007, when the housing bubble burst.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.

The average fee for a 30-year mortgage was unchanged at 0.7 point. The fee for a 15-year loan declined to 0.6 point from 0.7 point.

The average rate on a one-year adjustable-rate mortgage rose to 2.57% from 2.51% last week. The fee! increased to 0.5 point from 0.4 point.

The average rate on a five-year adjustable mortgage rose to 2.96% from 2.94% last week. The fee remained at 0.4 point.

Mortgage rates up slightly

Average rate nationwide for 30-year fixed-rate home loan

Sponsored byPercent

30-year

0,4.32

1,4.22

2,4.23

3,4.28

4,4.13

5,4.10

6,4.16

7,4.35

8,4.22

9,4.29

10,4.46

11,4.42

12,4.47

Source: Source: Freddie Mac weekly survey of about 125 lenders

3 Medical Devices Stocks to Sell Now

Popular Posts: 9 Biotechnology Stocks to Buy Now17 Oil and Gas Stocks to Sell Now5 Oil and Gas Stocks to Buy Now Recent Posts: 4 Capital Markets Stocks to Sell Now 3 Medical Devices Stocks to Sell Now 4 Building Products Stocks to Buy Now View All Posts

The ratings of three medical devices stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Given Imaging () is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. Given Imaging has developed a proprietary wireless imaging system that allows a medical professional to examine the gastrointestinal tract. GIVN also rates an F in Portfolio Grader’s specific subcategory of Earnings Surprise. Trade volume fell markedly in the past week, standing at half of the previous rate. The stock has a trailing PE Ratio of 58.10. .

Greatbatch, Inc. () is having a tough week. The company’s rating falls from a C to a D. Greatbatch develops and manufactures power sources, feedthroughs, and wet tantalum capacitors used in implantable medical devices. The stock gets F’s in Earnings Growth, Earnings Momentum and Margin Growth. The stock’s trailing PE Ratio is 46.50. .

Tornier NV () ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). Tornier designs, outsources the manufacture of and markets orthopedic products. The stock gets F’s in Earnings Momentum and Earnings Revisions. .

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.

Mercedes-Benz enlarges new 2015 C-Class

Mercedes-Benz just revealed the new C-Class sedan, a popular model that grows significantly larger while also going on a diet.

The new C will be 3.7 inches longer and more than an inch wider. Most of the extra space goes into the rear seat and trunk. Why? All the luxury makers have been adding more rear-seat room lately mainly to cater to the Chinese luxury market, where more luxury car owners have their own drivers.

Yet despite its larger size, the C-Class will be 220 pounds lighter than the outgoing one, with better aerodynamics and new, more fuel-efficient engines in a bid to save more fuel. It is expected to be 20% more fuel efficient.

The once smallest Mercedes in the lineup -- remember the "Baby Benz" tag? -- the C-Class now is sandwiched between the smallest CLA at the low end and popular E-Class above it. Now Mercedes is referring to it as a "midrange."

"Mercedes at its best - that's the new C-Class, which sets new standards for the midrange segment on many fronts," says Thomas Weber, Mercedes' research chief in Germany, in a statement. "It is characterised by an emotional yet clear designm which is continued in the high-quality and modern interior."

Best Biotech Companies To Own In Right Now

In the U.S., the C will come in two versions. One is the the C300 4MATIC, which will have a 2-liter turbocharged direct-injection in-line four -cylinder engine. It is expected to be rated at 235 horsepower. The other is the C400 4MATIC with a 3-liter, turbocharged, direct-injection V-6. It's good for 329 horsepower.

Inside, C-Class has a new head-up display to try to reduce driver distraction.

AIG selling aircraft leasing unit in $5.4B deal

NEW YORK — AIG is selling its aircraft leasing business International Lease Finance Corp. to AerCap in a cash-and-stock deal valued at about $5.4 billion.

International Lease Finance has almost 1,000 owned and managed aircraft and has commitments to buy approximately 330 high-demand, fuel-efficient aircraft. It will become a subsidiary of AerCap.

American International Group Inc. said Monday that this is the last major sale of one of its non-core assets. AIG received the biggest bailout of the financial crisis five years ago. The insurer has repaid the bailout money and has undergone a massive restructuring that cut its size in half as it focused on its core insurance business.

AIG initially had a deal to sell up to 90 percent of International Lease Finance's stock to Jumbo Acquisition Ltd., but ended that agreement before striking its deal with AerCap.

AerCap, based in the Netherlands, is an aircraft leasing company. It has offices in Ireland, the U.S., China, Singapore and the United Arab Emirates.

AIG said it gets $3 billion in cash and about 97.6 million newly issued shares of AerCap Holdings NV in the deal, or about 46 percent of AerCap's stock. It will enter a stockholders agreement and registration rights agreement with AerCap, which will give it the right to nominate two AerCap board members.

AIG also agreed to provide a $1 billion, five-year unsecured revolving credit facility, which will be available when the deal closes.

The transaction is expected to close in 2014's second quarter. It still needs approval from AerCap shareholders and is subject to required regulatory approvals, including U.S. and foreign regulatory reviews and approvals.

AIG share rose 76 cents, or 1.5%, to $50.49 in premarket trading about 2½ hours before the market opening.

5 Best Gold Stocks For 2014

While most of us take water pretty much for granted, cleaning it and making it safe is big business that could spell significant profits for investors. Ecolab (NYSE: ECL  ) , the world's largest provider of services and chemicals used in water treatment, recently announced its plans to expand across the globe. Similarly, despite the depressed prices we have seen for rare earth materials, Molycorp (NYSE: MCP  ) is finding a measure of success in water treatment.

In the video below, Fool.com contributor Doug Ehrman discusses some of the trends that impact the demand for water and how each of these companies can help you to benefit from participating in the shift.

�

Looking for more commodities-based ideas? Download the free report, The Tiny Gold Stock Digging Up Massive Profits. The Motley Fool's analysts have uncovered a little-known gold miner they believe is poised for greatness. Find out which company it is and why its future looks bright -- for free!

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

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

Advisors' Opinion:

• [By Holly LaFon]

  The second largest market cap company, at $11.22 billion, is Anglogold Ashanti Ltd. (AU). Its afternoon stock price of $29.15 is within 5% of its three-year low, and has experienced a more significant drop than Newmont ��it is down 44.9% from its high price of $52.86 a share.

• [By Sally Jones]

  Anglogold Ashanti Limited (AU)

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

• [By Profit Confidential]

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

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

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

Top Dividend Companies To Own In Right Now: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Shauna O'Brien]

  CME Group Inc (CME) reported on Wednesday that September volume average increased 10% from September 2012, while its third quarter volume average grew 11% from last year.

  For September, volume averaged 13.1 million contracts per day, totaling 261 million for the month. Equity index volume in September averaged 2.9 million contracts per day, a 4% increase from last year. Equity index options volume was up 52% in September.

  Third quarter volume average was 12 million per day, up 11% from a year ago.

  CME Group shares were mostly flat during pre-market trading Wednesday. The stock is up 48% YTD.

• [By Jeff Reeves]

  Options traders and commodity junkies should recognize CME Group (CME) as the Chicago Mercantile Exchange, a financial entity that operates a host of futures exchanges as well as providing its own exchange-traded products and derivatives.

• [By Jon C. Ogg]

  CME Group Inc. (NASDAQ: CME) was raised to Outperform from Market Perform at Keefe Bruyette & Woods.

  Cypress Semiconductor Corp. (NASDAQ: CY) was maintained as Buy, but earnings estimates were cut and the price target was cut to $13 from $15, by Sterne Agee. Wedbush downgraded it to Neutral from Buy after the warning.

5 Best Gold Stocks For 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Doug Ehrman]

  It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD  ) and iShares Silver Trust (NYSEMKT: SLV  ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG  ) and Barrick Gold (NYSE: ABX  ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW  ) .

• [By Doug Ehrman]

  While many precious-metals companies have been in a slump of late, there is one that belongs perpetually in your portfolio: Silver Wheaton (NYSE: SLW  ) . The company is not like other miners -- including Pan American Silver (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) -- in that it has a unique business plan that insulates it against many of the vagaries of the mining business. Moreover, because silver will always have a significant industrial demand component, even with the heightened volatility you see in the silver market, maintaining exposure to silver is appropriate.

• [By Doug Ehrman]

  Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV  ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW  ) struggles as well.

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

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

Removing the problem from the trading equation i.e YOU!

Simple automatic investing that makes you money is something we all dream about. Lets face it, who would not want to be making money without having to do anything?

The crazy thing is that this type of thing already exists and it's the reason why algorithmic trading systems are becoming more popular with individuals. With more online algorithmic building services popping up each year they are making it easier for individuals to build their own simple automatic trading systems.

In Part I and Part II of this series of how I got started in systems trading and how I built a simple automatic trading system for trading my own capital which now going to be available to you (a select group of my followers) I want to continue this serious talking about how we as humans are the root of most of our bad trading habits and problems.

Understanding how and why a system is trading is important for you as it provides comfort in knowing the system complies with your line of thinking and marks logical sense in your head also.

Through my simple automatic trading system which is complete with order execution, you can free yourself from the painful grind of staring at a computer screen and struggling with yourself to follow system rules and execute trades according to plan. Do not get me wrong, the creator of the automatic trading system must always be monitoring the system, maintaining and updating the code when required. But end users of this simple automatic trading strategy can simply set-up their trading account, link it with the automated trading system and walk away without ever having to learn or do anything else.

How My Simple Automatic Trading System Works

Keeping things short and to the point, my system is based around the S&P 500 index. You can opt to trade either the 3x leveraged ETFs (UPRO & SPXU) or trade the original automated trading strategy using the ES mini futures contract.

Both trade virtually the same but can vary at times. Because ETF's have the tendency to fluctuate a little more than the underlying index. It can lead to an extra trade or missed opportunity from time to time. The real difference is in the performance. The ETF's use 3x leverage while the futures contracts are using more likes 10x leverage. You definitely get a better bang for your buck with futures, but it cuts both ways…

Why Automatic Trading and Why Trade the S&P 500 Index?

Automatic trading may sound risky and crazy and it can be depending on how active the system is, the creator, the programmers experience and what platform the system is run on (server, charting program etc..) but in reality it's just a set of trading rules which you create, test, approve and trade via computer.

If you have common sense, a solid logical strategy, and a top notch programmer you should eventually be able to create your own profitable automatic investing system. Also if you trade more than one investment then you know how easy it is miss a trade because you were watching another chart or responding to emails or living life… Well automated trading systems make it so you do not miss another trade again.

The S&P 500 index I think carries the least amount of volatility and is diversified with the top 500 global corporations. Also it is the most liquid investing vehicle available for the stock market which keeps slippage to a minimum for optimum order fills.

Simple Automatic Trading – It Takes Money to Make Money – Ante Up!

We all know the saying "It Takes Money To Make Money" and it could not be more true. Unfortunately most traders fall victim to all the false advertising in this industry thinking they can make $87,523 in one trade with only $5,000 etc… marketing tactics…

There are several things an individual must have in place to make money in the market and a properly funded trading account with enough money to properly manage positions is one of the most important things. But again most people are trading with accounts of $500 – $10,000 in size which is not enough to make any real money. Sure it's fun trading and dabble with a little money, but do not expect make much.

The financial markets are a numbers game in almost every way, shape and form. If you truly understand how the market moves, probabilities and percentages then you know the more money you have the more likely you are to succeed with a winning strategy. Even if one is given a winning strategy but their account is underfunded that individual will struggle to make money.

There are fixed fees with trading and just to overcome them with profits requires more capital than $10,000 in most cases.

The general rule I think is to trade with a minimum of $35,000 which is just enough for you to trade a position size that can generate gains while allowing you to scale in and out of the market at key turning points.

Knowing how much money is required to trade and manage my ETF and futures automatic trading system is important and I will show you some conservative numbers of what to expect each month on average in the another report later this month.

Make $1,000 to $2400 Each Month with a Simple Automatic Trading System

Since creation of the strategy in March 2007 when I started tracking and trading this strategy (now my automated trading system) it has posted some very exciting returns. It shows to be averaging $2400 a month and this is trading only a $35,000 account and never trading more than $15,000 per trade (3 emini contracts). The results have been truly amazing!

Money buys you time – and time translates to the freedomto pursue happiness and personal growth, the freedom to
help others, and do whatever you want.

Simply put, I offer a simple automatic trading solution that has your best interest in mind. To try and making as much money as possible through my algorithmic trading system while also controlling downside risk. The most exciting part is that it's automatically traded within your brokerage account making it a true hands free trading experience.

PUT SOME OF YOUR INVESTMENT CAPITAL TO WORK WITH OUR SIMPLE AUTOMATIC TRADING SERVICE & SEE WHAT AUTOMATED TRADING CAN DO FOR YOU.

GM saying ‘Bye, mate’ to carmaking in Australia

G'Day, mate? More like g'night when it comes to General Motors' automaking operations in Australia and New Zealand.

The company says it's going to stop making cars Down Under by the end of 2017. For Americans, that could impact big, rear-wheel-drive cars like the new Chevrolet SS and for police use, the Chevrolet Caprice. Both models are imported from Australia.

The decision will affect GM's earnings. It plans to take a charge of $400 million to $600 million in the current quarter. The charges include about $300 million to $500 million for non-cash asset impairment charges including property, plant and equipment and about $100 million for cash payment of exit-related costs, including employee severance.

The announcement continued to a week of big news from GM. It started with the U.S. government's sale of the last of its stock and naming of Executive Vice President Mary Barra to succeed CEO Dan Akerson.

In the case of the latest decision, it was caused in large part by a stubbornly high exchange rate for the Aussie dollar compared to the American dollar. GM says as a result, its 65% more expensive to make cars in Australia when it was a decade earlier.

"The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world," Akerson said in a statement.

The decision will affect 2,900 jobs over the next four years, including 1,600 at the Holden plant in Elizabeth. It is yet to be seen whether GM moves production of the vehicles made at the plant to the U.S. or elsewhere, or pulls out of the large rear-wheel-drive market.

As a result of the company's actions, approximately 2,900 positions will be impacted over the next four years. This will comprise 1,600 from the Elizabeth vehicle manufacturing plant and approximatel! y 1,300 from Holden's Victorian workforce.

Hot Casino Stocks To Own Right Now

Holden won't disappear. It will design and sell cars in Australia and New Zealand, just not make them there.

"This has been a difficult decision given Holden's long and proud history of building vehicles in Australia," said GM Holden Chairman Mike Devereux in a statement.

Top 10 Penny Stocks To Own For 2014

Yahoo's third quarter earnings announcement reveals a disquieting trend, not just for them, but for the entire online ad system, says MoneyShow's Jim Jubak.

Yahoo, or Yahooooo, went out and announced its third quarter earnings on October 15. They weren't terrible. They beat by a penny. They announced 34 cents for the quarter instead of 33 cents, but there are some disquieting trends in those numbers that aren't just disquieting for Yahoo, but disquieting, really, for the whole online ad system.

Now the problem that Yahoo had, I'm going to have to consult my numbers here, is they saw a big drop in display advertising, down about 7% year to year, they saw a big drop in search revenue, down about 8% year to year. The thing that's interesting here is that the number of paid clicks was up but the price per click was down, down around, oh, 4% year over year, so what you're seeing is more action but lower prices.

This is the problem that's really shown up in earnings for Google, and a lot of other online advertising vehicles that, with the advent of mobile, we've got a whole new sort of passel, a whole new empire of available space to sell, which, of course, would, by itself, drive down ad rates, but if you've got more places to put ads and therefore demand and supply are a little out of whack, but also that companies aren't willing to pay yet as much as for a display or for any kind of ad on mobile, as they're willing to pay for an ad on a PC, or even say, a notebook.

Top 10 Penny Stocks To Own For 2014: Magic Software Enterprises Ltd.(MGIC)

Magic Software Enterprises Ltd. develops, markets, and supports software development and deployment technology and applications. It offers uniPaaS, an application platform for developing and deploying business applications; and iBOLT, a platform for business and process integration. The company?s uniPaaS and iBOLT platforms enable enterprises to accelerate the process of building and deploying applications to customize and integrate with existing systems. It also provides information technology (IT) professional services in the areas of infrastructure design and delivery, application development, and technology planning and implementation services, as well as supplemental staffing services. In addition, the company offers consulting services in connection with installation assurance, application audits and performance enhancement, application migration, and application prototyping and design; maintenance contracts; technical support; and training on its development tools. Magic Software Enterprises Ltd. provides its products and services through a network of regional offices, independent software vendors, system integrators, distributors, and value added resellers, as well as through original equipment manufacturers and consulting partners in approximately 50 countries worldwide. It serves finance, insurance, government, health care, logistics, manufacturing media, retail, and telecommunications industries. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel. Magic Software Enterprises Ltd. is a subsidiary of Formula Systems (1985) Ltd.

Top 10 Penny Stocks To Own For 2014: China Recycling Energy Corporation(CREG)

China Recycling Energy Corporation provides energy saving and recycling products and services in the People's Republic of China. The company engages in the design, sale, installation, lease, and operation of top gas recovery turbine systems (TRT) and other renewable energy products. It also builds cement low temperature heat power generator (CHPG) and waste gas power generator (WGPG) systems. The company, through a joint venture, Inner Mongolia Erdos TCH Energy Saving Development Co., Ltd, with Erdos Metallurgy Co., Ltd., recycles waste heat from Erdos Metallurgy Co.?s metal refining plants to generate power and steam. China Recycling Energy Corporation offers its products and services to enterprises in the iron and steel, cement, coking, and metallurgy industries. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. The company was founded in 2004 and is based in Xi An City, the People?s R epublic of China.

Advisors' Opinion:

• [By Roberto Pedone]

  Another stock that's starting to move within range of triggering a near-term breakout trade is China Recycling Energy (CREG), which engages in the recycling energy business, providing energy savings and recycling products and services. This stock is off to a strong start in 2013, with shares up a whopping 166%.

  If you take a look at the chart for China Recycling Energy, you'll notice that this stock recently formed a double bottom chart pattern at $1.67 to $1.66 a share. Following that bottom, shares of CREG have started to uptrend strong and move back above its 50-day moving average. That uptrend has now pushed shares of CREG within range of triggering a near-term breakout trade.

  Market players should now look for long-biased trades in CREG if it manages to break out above some near-term overhead resistance levels at $2.80 to $2.85 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 95,671 shares. If that breakout triggers soon, then CREG will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $4 a share.

  Traders can look to buy CREG off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $2.32 a share, or near more support at $2 a share. One can also buy CREG off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Hot Undervalued Companies To Buy For 2014: S1 Corporation(SONE)

S1 Corporation provides payments and financial services software solutions in the United States and internationally. The company operates in three segments: Banking: Payments, Banking: Large Financial Institution (FI), and Community Financial Institution (FI). The Payments segment provides ATM and retail point-of-sale driving, card management, and merchant acquiring solutions to financial institutions, retailers, and transaction processors of various sizes globally. The Banking: Large FI segment offers consumer banking, small business and corporate online banking, trade finance, and mobile banking solutions to large banks globally; branch and call center banking solutions to large banks outside of the United States; and software, custom software development, hosting, and other services to State Farm Mutual Automobile Insurance Company. The Banking: Community FI segment provides consumer and small business online banking, mobile banking, voice banking, and branch and call c enter banking solutions to community and regional banks, and credit unions in the United States. The company also provides various professional services, such as project management, implementation, custom software development, integration, educational, and Web design services; and customer support services. In addition, it offers hosting services comprising systems outsourcing, data center hosting, and operational management and control across a range of personal, small business and corporate Internet banking, mobile, voice, and payment processing applications. The company primarily serves banks, credit unions, retailers, and transaction processors. S1 Corporation was founded in 1934 and is headquartered in Norcross, Georgia.

Top 10 Penny Stocks To Own For 2014: Books-A-Million Inc.(BAMM)

Books-A-Million, Inc. operates as a book retailer in the southeastern United States. The company operates superstores and traditional bookstores that offer a selection of hardcover and paperback books, magazines, and newspapers. It also offers other merchandise, including gifts, cards, collectibles, magazines, music, DVDs, and electronic accessories, as well as coffee, tea, and other edible products. The company markets its products under the trademarks of Books-A-Million, BAM! Books-A-Million, Bookland, Books & Co., Millionaire?s Club, Sweet Water Press, Thanks-A-Million, Big Fat Coloring Book, Up All Night Reader, Read & Save Rebate, Readables Accessories for Readers, Kids-A-Million, Teachers First, The Write-Price, Bambeanos, Hold That Thought, Book$mart, BAMM, BAMM.com, BOOKSAMILLION.com, Chillatte, Joe Muggs Newsstand, Page Pets, JOEMUGGS.com, FAITHPOINT.com, Faithmark, Joe Muggs, Anderson?s Bookland, Snow Joe, Summer Says, On the John University, OTJU, American Whole sale Book Company, AWBC, and NetCentral. It also offers its products over the Internet at Booksamillion.com. As of August 11, 2011, the company operated 231 stores in 23 states and the District of Columbia. Books-A-Million, Inc. was founded in 1917 and is based in Birmingham, Alabama.

Advisors' Opinion:

• [By John Udovich]

  Vitamin Shoppe Inc (NYSE: VSI), Books-A-Million, Inc (NASDAQ: BAMM) and Perfumania Holdings, Inc (NASDAQ: PERF) have the dubious distinction of being�the worst performing small cap�specialty retail stocks for this year (according to Finviz.com) with losses of 4.85% and�3% and a gain of 0.61%, respectively, since the start of the year (See my previous article: This Year�� Best Performing Small Cap Specialty Retail Stocks? UNTD, TA & HZO). I should mention that the definition of specialty retail stocks might vary from one stock screener to another, but what�� clear is that these three small cap retail stocks have been heading in the wrong direction for investors for much of this year. �With that in mind, what sort of performance should investors expect from these small cap specialty retail stocks on Black Friday and for the all important holiday season? Here is what you need to be aware of:

Top 10 Penny Stocks To Own For 2014: Fushi Copperweld Inc.(FSIN)

Fushi Copperweld, Inc., through its subsidiaries, develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum (CCA) and copper-clad steel (CCS). Its CCA and CCS conductors are used as a substitute for solid copper conductors in applications where specific electrical or physical attributes are necessary. The company markets its products under Copperweld and Fushi brand names. It primarily serves end-user applications in the telecommunication, electrical utility, and transportation markets. The company?s CCS products in the utility market are used in grounding applications, power cables, electrified railroad tracks, and tracer wires. It?s CCS and CCA wires in transportation market are used in original equipment and aftermarket applications for electrified rail applications, as well as in automobiles, trucks, motorcycles, commercial off road equipment, and trailers. The company sells its products through its direct sale s force, as well as through sales agents or distributors primarily in North America, Europe, North Africa, the Middle East, and the People?s Republic of China. Fushi Copperweld, Inc. is based in Beijing, the People?s Republic of China.

Top 10 Penny Stocks To Own For 2014: SinoCoking Coal and Coke Chemical Industries Inc(SCOK)

SinoCoking Coal and Coke Chemical Industries, Inc. operates as a coal and coke producer in the People?s Republic of China. The company offers metallurgical coke primarily for use in steel manufacturing; and chemical coke primarily for use in the production of synthesis gas, as well as a fuel source or as an intermediate for the production of other chemicals, such as methanol, formaldehyde, and ammonia. It also provides medium coal for electricity generation, and domestic and industrial heating applications; and coal slurries for use as a fuel. The company mines and sells washed coal, as well as engages in the trading of coal. In addition, it produces electricity from its by product, coal tar and sells to the state-owned electricity grid. The company is based in Pingdingshan, the People's Republic of China.

Top 10 Penny Stocks To Own For 2014: Sutron Corporation(STRN)

Sutron Corporation designs, manufactures, and markets products and solutions for the collection and monitoring of hydrological, meteorological, and oceanic data for the management of critical water resources and optimization of hydropower plants, as well as for warning of disastrous floods, storms, or tsunamis. The company?s Hydromet Products division manufactures real-time data collection and control products consisting of dataloggers, satellite transmitters/loggers, water level and meteorological sensors, and tides monitoring systems. Its Integrated Systems division provides system integration services consisting of the design, integration, installation, and commissioning of customer-specific hydrological and meteorological monitoring and control systems. These systems also include software applications based on it XConnect database software and Ilex Tempest database software. This division also integrates and installs airport weather systems. The company?s Hydrological Services division provides hydrologic services, including data interpretation and analysis, flow modeling, field studies, hydrologic studies, environmental permitting, legal or expert witness and equipment integration, installation, commissioning, and maintenance services. Its Ilex division offers Tempest database software, DOMSAT systems, custom software, and engineering services. The company primarily serves federal, state, local, and foreign governments; engineering companies; universities; and hydropower companies. Sutron Corporation markets its products through direct sales force in the United States, as well as through resellers and agents in Canada, Latin and South America, Europe, Africa, Asia, and Australia. The company was founded in 1975 and is headquartered in Sterling, Virginia.

Top 10 Penny Stocks To Own For 2014: Orion Marine Group Inc(ORN)

Orion Marine Group, Inc. operates as a marine specialty contractor serving the heavy civil marine infrastructure market. The company provides a range of marine construction and specialty services on, over, and under the water along the Gulf Coast, the Atlantic Seaboard, the West Coast, Canada, the Caribbean Basin, and the Pacific Northwest. The company?s marine construction services include construction of marine transportation facilities, marine pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility construction projects comprise public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; recreational use marinas and docks; and other marine-based facilities. Orion Marine Group?s marine pipeline service projects consist of the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities ; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; and creation of hot taps and tie-ins. Its bridge and causeway projects include the construction, repair, and maintenance of bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structure projects primarily comprise the installation of concrete mattresses to ensure erosion protection, and the installation of geotubes for wetlands and island creation. In addition, the company offers dredging services; specialty services, including salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair; and survey services comprising surveying pipelines and performing hydrographic surveys. Its customers include federal, state, and municipal governments, as well as private commercial and industrial enterprises. The company was founded in 1994 and is headquartered in Houst on, Texas.

Advisors' Opinion:

• [By Seth Jayson]

  When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Orion Marine Group (NYSE: ORN  ) .

Top 10 Penny Stocks To Own For 2014: IRIDEX Corporation(IRIX)

IRIDEX Corporation provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat eye diseases in ophthalmology, and skin conditions in dermatology in the United States and internationally. It offers various ophthalmic products, such as infrared photocoagulator consoles, visible (green) and visible (yellow) photocoagulator consoles, and multi-wavelength laser system configurations; and ophthalmic delivery devices comprising TruFocus laser indirect ophthalmoscopes, slit lamp adapters, operating microscope adapters, EndoProbes, G-Probes, and DioPexy Probes. The company offers its ophthalmic products to treat age-related macular degeneration, diabetic retinopathy, glaucoma, retinal tears and detachments, retinopathy of prematurity, ocular tumors, and macular holes. It also offers aesthetics products, which include combination infrared/visible wavelength laser, visible (green), and infrared consoles. In addition, the company offers aestheti cs delivery devices, such as Dermastat Handpieces that are used as tracing instruments for the treatment of small cutaneous surface lesions; DioLite Handpieces, which are handheld instruments used in the treatment of vascular and pigmented skin lesions; VariLite Handpiece, a handheld instrument used in the treatment of vascular and pigmented cutaneous skin lesions, and small area hair reduction; and ScanLite scanner, a computer pattern generator for the treatment of larger-area vascular and pigmented skin lesions. IRIDEX Corporation sells its products to ophthalmologists specializing in retina, glaucoma, and pediatrics; dermatologists; plastic surgeons; research and teaching hospitals; government installations; surgical centers; and hospitals through direct sales force and distributors. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was founded in 1989 and is headquartered in Mo untain View, California.

Top 10 Penny Stocks To Own For 2014: Integrated Silicon Solution Inc.(ISSI)

Integrated Silicon Solution, Inc., a fabless semiconductor company, designs and markets integrated circuits for digital consumer electronics, networking and telecommunications, mobile communications, automotive electronics, and industrial markets. Its primary products include low and medium density DRAM; and high speed and low power SRAM. The company?s low and medium density DRAM products are used in wireless local area networks (WLANs), base stations, networking switches and routers, fiber to the home (FTTH), DSL and cable modems, set top boxes, digital cameras, MP3, flat panel TVs, LCD TVs, HDTVs, video phones, Voice over Internet Protocol, printers, disk drives, tape drives, audio/video equipment, instrumentation, global positioning systems (GPS), telematics, infotainment, smart meters, and other applications. Its SRAM products are used in WLANs, cell phones, base stations, networking switches and routers, FTTH, DSL modems, LCD TVs, set-top boxes, GPS systems, instrumen tation, engine control systems, medical equipment, telematics, audio and video equipment, satellite radio, POS terminals, fax machines, copiers, tape drives, and other applications. Integrated Silicon Solution, Inc. also designs and markets application specific standard products, including high performance serial EEPROMs for use in TVs, networking systems, modems, telephone sets, security systems, video games, automobiles, and other consumer products; and SmartCards that have applications in transportation passes, payment cards, health care cards, and other cards that store secure data. The company markets and sells its products in Asia, the United States, and Europe through direct sales force, independent sales representatives, and distributors. Integrated Silicon Solution, Inc. was founded in 1988 and is headquartered in San Jose, California.

Advisors' Opinion:

• [By Seth Jayson]

  Basic guidelines
  In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Integrated Silicon Solution (Nasdaq: ISSI  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Integrated Silicon Solution doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 7.0%, and inventory increased 43.7%. Comparing the latest quarter to the prior-year quarter, the story looks potentially problematic. Revenue grew 20.0%, and inventory grew 43.7%. Over the sequential quarterly period, the trend looks OK but not great. Revenue dropped 1.8%, and inventory dropped 0.8%.

Is good news no longer bad news for markets?

NEW YORK — For the longest time, good incoming news was viewed as bad news by Wall Street. The reason: Stock investors figured signs of a healing economy would move the Federal Reserve ever closer to dialing back its market-friendly stimulus program.

But that might be finally changing. Need proof? On Friday, the economy created a better-than-expected 203,000 jobs in November, and the unemployment rate fell to a five-year low of 7%, a threshold the Fed once said would mark the end of its bond-buying program.

TRACK YOUR STOCKS: Get real-time quotes with our free Portfolio Tracker

But the stock market went up — not down as it did in the spring and summer when the Fed first hinted at "tapering" its asset purchases. The S&P 500 followed with a

Best Energy Stocks To Own For 2014

record closing high of 1808.37

Monday.

Some on Wall Street theorize that the jobs report, despite the impressive headline numbers, was neither too strong nor too weak. In essence, it's not a major game-changer as it relates to the timing of the Fed's move toward less-easy monetary policy.

But there was a contingent of Wall Street pros who viewed the market reaction as a sign that good economic news may now be viewed as good news for stocks.

"Good economic news is no longer necessarily bad short-term news for financial markets," says Jerry Webman, chief economist for Oppenheimer Funds. "Instead, a consensus seems to be building that a Fed taper decision will be, on balance, positive — as long as the economy is improving unambiguously."

Emerging Stocks Advance as Sensex Climbs Amid Bank Rally

Emerging-market stocks rose, snapping a three-day drop, as ICICI (ICICIBC) Bank Ltd. jumped on speculation India's opposition party will take over government. The rand sank amid the longest South African bond slide in 15 years.

The MSCI Emerging Markets Index advanced 0.3 percent to 999.13 at 10:27 a.m. in New York, after better-than-estimated U.S. data led it to briefly trim gains. India's S&P BSE Sensex (SENSEX) jumped to a one-month high as ICICI surged 6.5 percent on bets a new government will enact policies to bolster economic growth and curb bad loans. Steelmaker Usinas Siderurgicas de Minas Gerais SA paced a rally in Brazil's Ibovespa. The rand sank as foreign investors dumped South African bonds for an 11th day yesterday, according to JSE Ltd. data compiled by Bloomberg.

India's stocks jumped as an exit poll showed the opposition Bharatiya Janata Party is set to win four of five state elections held in the past month. The U.S. expanded at a faster pace than initially reported and jobless claims unexpectedly fell, sparking bets the Federal Reserve will trim stimulus. The MSCI Emerging Markets Index has slid as much as 16 percent since May 22, when the Fed signaled its asset-buying program could be trimmed if the economy showed improvement.

"Ultimately, any readjustment of Fed activity will have a broader implication on emerging currency and equity markets," Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $150 billion of assets, said by phone. "Until we get through this, all eyes will be on that."

Emerging ETF

The iShares MSCI Emerging Markets Index exchange-traded fund rose less than 0.1 percent to $41.28. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, added 0.1 percent to 26.04.

Brazil's Ibovespa advanced amid speculation that a three-session slump for Brazil's benchmark equity index was excessive. Usiminas, as Usinas de Minas Gerais is known, rose 7.5 percent, while oil company Petroleo Brasileiro SA (PETR3) contributed the most to the gauge's advance.

Russia's Micex Index extended a five-day drop to 3.4 percent, led by OAO Lukoil (LKOH) and OAO Gazprom. Ukraine's dollar-denominated bonds gained, sending yields to the lowest this week, as President Viktor Yanukovych announced possible investments from China. The PX Index slid to a seven-week low in Prague as Vienna Insurance Group AG plunged 4.2 percent.

India, China

ICICI, India's largest private sector lender, cappped the biggest gain since Sept. 6, while HDFC Bank Ltd. jumped 4.6 percent. The S&P BSE Bankex index of 13 banking stocks gained 4.4 percent to a five-month high. Goldman Sachs Group Inc. analysts upgraded Indian equities to market weight from underweight on Nov. 5, saying the state polls may signal an opposition win in the federal vote, helping spur investment.

China's stocks fell on speculation the benchmark index's rally yesterday to a three-month high was excessive. ZTE Corp. (000063) lost the most in six weeks as investors sold shares of telecom companies after the government gave approval to domestic carriers to start offering service on a fourth-generation wireless network.

The rand slid as much as 1 percent to the lowest level since March 2009. Indonesia's rupiah rebounded from a four-year low after Bank Indonesia said the currency is "undervalued." South Korea's won rose as the nation's bonds fell, pushing the five-year yield to the highest level since June

The premium investors demand to own emerging-market debt over U.S. Treasuries fell two basis points, or 0.02 percentage point, to 335 basis points, according to JPMorgan Chase & Co.

Is Crocs Destined for Greatness?

Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Crocs (NASDAQ: CROX  ) fit the bill? Let's look at what its recent results tell us about its potential for future gains.

What we're looking for
The graphs you're about to see tell Crocs' story, and we'll be grading the quality of that story in several ways:

Growth: Are profits, margins, and free cash flow all increasing? Valuation: Is share price growing in line with earnings per share? Opportunities: Is return on equity increasing while debt to equity declines? Dividends: Are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let's look at Crocs' key statistics:

CROX Total Return Price data by YCharts

Passing Criteria

3-Year* Change

Grade

Revenue growth > 30%	59.3%	Pass
Improving profit margin	(10.2%)	Fail
Free cash flow growth > Net income growth	(35.8%) vs. 43.1%	Fail
Improving EPS	43.2%	Pass
Stock growth (+ 15%) < EPS growth	4.4% vs. 43.3%	Pass

Source: YCharts.
*Period begins at end of Q3 2010.

CROX Return on Equity (TTM) data by YCharts

Passing Criteria

3-Year* Change

Grade

Improving return on equity	(31.1%)	Fail
Declining debt to equity	(100%)	Pass

Source: YCharts.
*Period begins at end of Q3 2010.

How we got here and where we're going
We first looked at Crocs last year, and while the shoe-maker earned one of our rare perfect scores last year, it's lost three passing grades in its second assessment to finish up with only four out seven possible passing grades for 2013. The company's margins have collapsed since last year, which has hampered return on equity, and free cash flow has also fallen. These are not good signs, but we shouldn't count Crocs out before first digging a little deeper to see what the company has up its sleeve for the coming year.

Colorful clog maker Crocs disappointed on both top and bottom lines in its latest quarter, because of sluggish back-to-school sales, weaker employment growth, and macroeconomic uncertainty both domestically and abroad. Crocs' same-store sales in the Americas and Japan fell by 8.3% and 16.3%, respectively, but it's still enjoying notable growth in European and Asia-Pacific markets, where customers have taken great interest in the comfortable brand. This recent weakness has led Crocs to underperform the indexes as compared to Deckers Outdoor (NASDAQ: DECK  ) , Skechers (NYSE: SKX  ) and other shoe-makers -- its growth during our three-year tracking period is now the weakest of any major shoe brand (including shoe outlet Foot Locker (NYSE: FL  ) :

CROX Total Return Price data by YCharts

Fool contributor Timothy Green notes that the company is aggressively pushing its retail strategy, and added 95 new stores last year, which boosted retail revenue by 11%.This helps explain Crocs' recent cash-flow problems, as opening so many stores so quickly demands a significant initial outlay. Meanwhile, the company's also trying to diversify itself beyond its trademark clogs. Fool contributor Pratik Thacker notes that Crocs has started offering wedges, loafers, and casual shoes; and its Boat Line, A-Leigh and Huarache sandal have performed well in Europe and Asia, and in growing markets like Russia, Austria and the Nordic countries. Crocs could thrive in 2014 with pending introductions of licensed footwear bearing Duck Dynasty and Star Wars designs. In addition, it has plans to launch a leather-like product called Colorlite, which could help overcome the popular perception of Crocs as the maker of a sort of plastic foam shoe.

Crocs isn't the only one attempting to update its image, however. Foot Locker has been remodeling its stores based on a new store concept "SIX: 02" to attract more female customers. Skechers has moved past the bad publicity of its "toning shoes" that didn't actually tone, and has experienced double-digit growth online and in terms of same-store sales, according to Fool contributor Meetu Anand. Deckers, which relies on its flagship Ugg brand far more than Crocs relies on its clogs, has not much reduced its dependence on this faddish footwear, but its popularity continues to grow thanks to a more diversified sales model. There are multiple avenues to success, and Crocs may find its avenue in 2014. At the moment, it's far cheaper than either Skechers or Deckers, which could offer greater upside in the long run.

Putting the pieces together
Today, Crocs has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy -- or to stay away from a stock that's going nowhere.

The next great growth stock?
Tired of watching your stocks creep up year after year at a glacial pace? 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.

Energize Your Portfolio With this Oil Services Play CLB

The holiday season is heating up, while temperatures are dropping. Winter is well under way!

What better way to celebrate the season than to take a look at an industry we’re putting to good use this time of year: Energy. The energy sector is full of companies working to provide consumers and business with electricity, fuel, heat and many other services we put to constant use.

The energy sector gives investors a variety of options to put money into. Whether you’re interested in traditional oil and drilling companies, businesses dedicated to solar and other alternative energy sources or the corporations that provide energy equipment, there are stocks for every taste. So today we’ll see how the sector is performing as a whole, and I’ll share with you some of the best and worst energy plays on the market.

Let’s go ahead and see if the energy sector is helping warm up portfolios or burning investors.

Proceed With Caution

The energy sector can be a volatile place, as we all should be aware of after all the fluctuations it experienced this year. Surging and dropping oil prices, changes to federal regulations, availability and so many other factors may affect how the entire sector, not just a stock or two, perform.

The ishares Dow Jones U.S. Energy Sector Fund (IYE) tracks the performance of 99 major energy stocks in the U.S. IYE is actually up 20% for the year, but it has been trending downward over the past month. Meanwhile, the ishares S&P Global Energy Sector Fund (IXC) is up just 10% so far for the year. This fund, which also contains 99 holdings from all over the world, provides perhaps the best view of how the energy sector is faring on the global level. It has also fallen in the past month.

The energy sector is starting to take on water. The fact is that crude oil prices are now at the lowest level in about six months. The U.S. Energy Information Administration reported that crude oil supplies have risen for 10 straight weeks and this put downward pressure on prices.

Meanwhile, the six-month nuclear pact with Iran caused the U.S. to unfreeze $8 billion in Iran assets recent. With the prospect of Iranian oil more easily hitting world markets, the increased U.S. crude oil production from the fracking boom, plus a glut of refined gasoline and diesel, the prices at the pump are expected to continue to meander lower.

My Top Energy Pick

That said, you should be careful when investing in oil or natural gas companies due to the glut piling up in the U.S. right now. The good news is, despite the volatility that’s inevitable in this sector, there are always pockets of strong companies that perform well no matter the industry conditions.

One such company is Core Laboratories (CLB), a company in the Netherlands that helps the oil and gas recovery. And right now, Core Laboratories’ services are in hot demand because oil companies are having difficulties extracting gas from traditional deposits and are now being forced to look to alternative sources and methods of extraction. Whether it’s fracking or oil recovery techniques, Core Laboratories does it all, including reservoir description, production enhancement and reservoir management services.

In my opinion, this is one of the safest energy plays out there right now. .

30 Energy Stocks To Sell

But for every Core Laboratories out there, there are dozens of other energy stocks that you should steer clear of. To get you started, here are the Top 30 big-name energy stocks that have become too hot to handle.

Symbol	Company Name	Quantitative Grade	Fundamental Grade	Total Grade
APC	Anadarko Petroleum Corporation	D	C	D
BHI	Baker Hughes Incorporated	D	C	D
CAM	Cameron International Corporation	F	C	D
CVE	Cenovus Energy Inc.	F	C	F
CVX	Chevron Corporation	D	C	D
DVN	Devon Energy Corporation	F	C	D
E	Eni SpA	F	D	D
EC	Ecopetrol SA	F	C	D
ENB	Enbridge Inc.	F	C	D
ESV	Ensco plc	F	C	F
FTI	FMC Technologies, Inc.	F	C	D
IMO	Imperial Oil Limited	F	D	F
KMI	Kinder Morgan, Inc. Class P	F	D	D
KMP	Kinder Morgan Energy Partners, L.P.	F	C	D
MRO	Marathon Oil Corporation	F	C	D
NBL	Noble Energy, Inc.	D	C	D
NOV	National Oilwell Varco, Inc.	F	C	D
OKS	ONEOK Partners, L.P.	F	C	D
PAA	Plains All American Pipeline, L.P.	D	C	D
PBR	Petroleo Brasileiro SA	F	D	F
PSX	Phillips 66	D	D	D
PTR	PetroChina Co. Ltd.	F	C	F
RIG	Transocean Ltd.	F	C	D
STO	Statoil ASA	F	D	F
TLM	Talisman Energy Inc.	D	C	D
TRP	TransCanada Corporation	F	C	D
TS	Tenaris S.A.	D	D	D
WMB	The Williams Companies, Inc.	F	C	D
WPZ	Williams Partners L.P.	F	C	D
XOM	Exxon Mobil Corporation	F	C	D

Hong Kong stocks fall, with bank shares lower

Top 5 Safest Companies To Invest In 2014

LOS ANGELES (MarketWatch) - Hong Kong stocks fell early Friday, with financials among decliners before the release of U.S. monthly jobs data likely to contribute to the Federal Reserve's near-term direction on monetary stimulus. The Hang Seng Index (HK:HSI) fell 0.2% to 23,680.60, and the Hang Seng China Enterprises Index gave up 0.3%. Shares of heavily weighted HSBC Holdings PLC (HK:5) lost 0.7%, on track for a fourth straight day of declines, and Agricultural Bank of China Ltd. (HK:1288) (CN:601288) (ACGBF) pulled back by 1%. Standard Chartered PLC shares (HK:2888) (UK:STAN) sagged 2.8%, extending Thursday's drop of 4.7% after the lender said for the first time in a decade that its operating profit will decline. Meanwhile, China Mobile Ltd. shares (HK:941) (CHL) edged up 0.1% following a Reuters report that the company is still working on completing a deal to sell Apple Inc.'s (APPL) iPhones. On the mainland, the Shanghai Composite (CN:SHCOMP) fell 0.3%.

Most Brazilian Stocks Fall as U.S. Jobs Stoke Stimulus Concern

Most Brazilian stocks dropped as an industry report showing U.S. employers added more workers than forecast rekindled speculation that the Federal Reserve may soon reduce stimulus that has boosted emerging-market assets.

Anhanguera Educacional Participacoes SA (AEDU3) tumbled after Brazil's antitrust regulator signaled it may limit the education company's merger with competitor Kroton Educacional SA. (KROT3) Lojas Renner SA (LREN3) led retailers higher after a report showed Brazil's industrial production expanded faster than expected in October, easing concern that growth is faltering.

The Ibovespa was little changed at 50,351.26 at 11:31 a.m. in Sao Paulo, with 45 stocks lower and 25 higher. The real depreciated 0.3 percent to 2.3746 per U.S. dollar. Companies in the U.S. increased payrolls by 215,000 in November, according to the ADP Research Institute in Roseland, New Jersey. The median forecast of economists surveyed by Bloomberg called for a 170,000 advance.

"What will happen with the stimulus program in the U.S. is still the main issue for global markets at the moment," Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. "Brazilian equities are following the trend set by the news abroad. We're in that situation when good numbers have a negative impact on the market because they support the case for less stimulus."

The Ibovespa earlier rose as much as 0.8 percent after the national statistics agency said Brazil's industrial production expanded 0.9 percent in October from a year earlier. Economists surveyed by Bloomberg had forecast growth of 0.4 percent.

Anhanguera fell 3.6 percent to 14.50 reais. Renner added 2.9 percent to 61.23 reais.