When markets heat up, it’s time to be cowardly

Now that the stock market has reached all-time highs, you may be thinking yourself a coward for being reluctant to invest now.

But as a great man – OK, the Wizard of Oz — once said, you may be a victim of disorganized thinking. You are under the unfortunate impression that just because you run away, you have no courage. You're confusing courage with wisdom.

Cowardice can be a good thing, especially when the stock market is at record levels. And if you're really worried, you might consider the Cowardly Portfolio, first introduced here more than a decade ago. But it's time to make a few changes to the Cowardly Portfolio. It's OK. You'll be fine.

The Cowardly Portfolio simply introduces the notion that investing in stocks is not an all-or-nothing proposition. In its original formulation, it consisted of 50% in conservative stock funds, 30% intermediate-term government bonds, and 20% in money market funds. You won't get rich, because widely diversified people don't get rich, or at least rich quickly.

You will be somewhat shielded from short-term stock market fluctuations, however. When the Cowardly Portfolio made its last appearance, in September 2011, the portfolio had gained 41% over 10 years, vs. 31% for the Standard & Poor's 500-stock index. The period included at least part of the 2000-2002 bear market, and all of the 2007-2009 bear.

The past 10 years, the Cowardly Portfolio is up 71%, vs. 116% for the S&P 500 with reinvested dividends. The 10-year record for both has improved because the tech wreck is now off the books. The S&P 500 is beating the Cowardly Portfolio because it always will in a bull market.

The Cowardly Portfolio has worked well because bonds tend to rise in value when stocks fall, and cash acts as a cushion to both. But as we look around today's landscape, we see that the 10-year Treasury note yields about 2.74%.

William Bernstein, market adviser, neurologist and author of Deep Risk, suggests buying bonds at these levels could ! be an even bigger problem than buying stocks, at least over the long term. And that's because interest rates tend to rise and fall in long cycles, and when interest rates rise, bond prices fall. "From 1941 to 1981, the total return from U.S. and U.K. bonds was -70%," Bernstein says. "Stocks have never done that badly."

Analysts use a term called duration to measure the effects of interest rate risk. A bond fund with duration of 10 years will fall 10% in value if interest rates rise 1%, and vice versa. The 10-year T-note has averaged a 6.6% yield since 1962. Clearly, there's a fair amount of interest-rate risk in 10-year T-note, especially if rates pop up beyond the long-term average.

Your best bet: "Hold your nose and go short," Bernstein says. "If I buy a bank CD with a 1%, 2-year yield, I'll come out almost flat against inflation, and not be that badly hurt." Buy a bond fund with a 10-year duration, however, and you'll get your head handed to you when interest rates rise.

If you're a true coward, then, you might consider eliminating your 30% bond position for a series of staggered bank CDs. You won't earn much now, but as interest rates begin to rise in 2014 and 2015, you'll get higher yields and dodge the losses you'll take from a bond fund.

Changing from 20% cash and 30% bonds to 50% cash is so cowardly it borders on the craven. You could probably bump up your stock holdings to 60% and reduce cash to 40% without too much damage. Were stocks to fall 50%, your portfolio would fall 30%, which is survivable. And you'd have plenty of buying power if stocks became incredibly cheap.

Best Investments In 2014

And choosing a reasonably conservative stock fund could help, too. The Cowardly Portfolio has preferred equity-income funds, which invest in the stocks of large, dividend-paying companies. Three candidates:

• Fidelity Dividend Growth (ticker: FDGFX), up 22.0% annually the past five ! years.

• Nicholas Equity Income (NSEIX), up 21.3% a year the past five years.

• Parnassus Equity Income, (PRBLX), up 17.8% the same period.

All have annual expense ratios of less than 1%. For the truly cost-conscious, there's Vanguard Dividend Appreciation (VDAIX), up 15.9% annually the past five years. Expense ratio: 0.20%. Its actively managed counterpart, Vanguard Equity-Income (VEIPX), has outperformed the index, gaining 17.0% a year annually. The fund's expense ratio is 0.30% a year.

The older you get, the more you should be worried about short-term risks, and the more a cowardly portfolio makes sense. If you're 70 and have no further source of income, market risk from stocks can be "Three-Mile-Island toxic," Bernstein says.

But for young investors, particularly for those investing at regular intervals, worrying about short-term market risks is foolish. "Young people should embrace shallow risks," Bernstein says. If the market falls 50% and you're investing regularly through a 401(k), you'll get the chance to invest at bargain prices. Worry about other things, like winged monkeys.

Follow John Waggoner on Twitter: @johnwaggoner.

Stocks to Watch: Vanda Pharma, Kimberly-Clark, Cell Therapeutics

Among the companies with shares expected to actively trade in Friday’s session are Vanda Pharmaceuticals Inc.(VNDA), Kimberly-Clark(KMB) and Cell Therapeutics(CTIC).

Vanda said a U.S. Food and Drug Administration advisory committee voted to approve the company’s flagship drug, tasimelteon, a potential treatment for Non-24-Hour Disorder. Tasimelteon, which has the proposed tradename Hetlioz, is currently under priority review by the FDA, which will make a final decision on approving the drug in January. Vanda’s shares  jumped 13% to $14.73 in premarket trading.

Kimberly-Clark is mulling a spinoff of its health-care business, potentially unloading a division that generates about $1.6 billion in annual sales but represents the consumer-products giant’s smallest business. Investors cheered the news, sending shares up 3% to $113 in premarket trading.

Baxter International Inc.(BAX) and Cell Therapeutics Inc. unveiled an exclusive licensing agreement to develop and commercialize pacritinib, which is currently in Phase III development to treat a chronic bone marrow disorder. Shares climbed 21% to $2.12 premarket.

T-Mobile US Inc.'s(TMUS) offering of about 66.2 million shares priced at a 2% discount to the wireless carrier’s closing price. The offering priced at $25 a share and is expected to generate about $1.6 billion in proceeds, T-Mobile disclosed late Thursday. Shares were off 2.5% at $24.89 premarket.

Agilent Technologies Inc.'s(A) fiscal fourth-quarter earnings fell 50% as continued weakness in its electronic measurement business that the company is in the process of spinning off continued to weigh on the diversified testing-equipment maker’s revenue. The company’s adjusted profit topped expectations.

Applied Materials Inc.(AMAT) swung to fiscal fourth-quarter profit on double-digit revenue growth and stronger margins. The company, which supplies costly machines that help turn silicon wafers into computer chips, also gave a mostly cautious outlook for the current quarter.

Jos. A. Bank Clothiers Inc. terminated its unsolicited $2.3 billion takeover offer for rival men’s clothing retailer Men's Wearhouse Inc.(MW), though left the door open for the potential of future acquisition talks.

Activist investor Carl Icahn reported an increased holding in Navistar International Corp.(NAV) as of Sept. 30, according to a regulatory filing Thursday.

Nordstrom Inc.'s(JWN) fiscal third-quarter profit slid 6.2% as the high-end retailer’s sales growth was tempered by the absence of a key sale event that was held earlier in the year, while overhead expenses jumped.

3 Stocks to Ride the Housing Rebound

Now that the government is finally back in business, all those potential home buyers who were stuck during the shutdown can get busy again filling out mortgage papers, or applying for refinancing or shopping for a new home.

And it means housing market momentum could return to its earlier pace. According to the REAL Trends Housing Market Report, the rate of housing sales increased 20.9% in September 2013 over a year ago. New and existing home sales grew from 5.2 million in September 2012 to 6.2 million in September 2013. Home prices have increased 5.5% compared to a year ago.

Now that popular opinion predicts that interest rates will stay low through the year and into 2014, the housing market momentum should keep building through what might otherwise have been a sluggish winter.

FBR Investment Bank continues to stand by its forecast of $1.4 trillion in original loans for 2014, due to a vibrant spring selling season. Plus, it anticipates a rebirth in refinances under the Home Affordable Refinance Program (HARP).

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Another sign that housing remains on track is that September was the 36th consecutive month with an annual decrease in U.S. foreclosures. The total number of total of U.S. properties that started the foreclosure process for the first time during the third quarter dropped 13% from the previous quarter and 39% from a year ago.

All of the above should translate into a nice uptick in business for mortgage lenders and real estate brokers who no doubt are partying like it's 1999.

If you'd like to get in on the action, here are three stocks that could reward investors.

Realogy Holdings

Realogy Holdings (RLGY) is a real estate services provider that owns a huge corner of the market with Century 21, Coldwell Banker, ERA and Sotheby's International Realty (BID). In 2012, the company had a sales volume three times that of its nearest domestic competitor, accounting for 26% of all broker-assisted transactions in the U.S. It has 239,000 agents working in every corner of the world.

Already a force internationally, Century 21 announced that over the last six months, it has signed four new international master franchise agreements to license the Century 21 brand to operate in Austria, Croatia, Kosovo and Slovenia. Century 21 currently has a presence in 74 countries

Goldman Sachs (GS) recently upgraded Realogy from a ‘hold’ to a ‘buy’ based on high valuations and raised its price target from $51 to $54. The stock currently trades at $43.93.

Wells Fargo

Sure, Wells Fargo (WFC) just announced that it is laying off 925 employees in its home loan unit due to less demand for refinancing.

Yes, the bank made 42% less in home loans in the third quarter of 2013 than it did a year ago, the slowest quarter since second quarter 2011.

But it did report record profits of $5.6 billion in the third quarter, up from $4.8 billion last year. That alone makes it hard to look past Wells Fargo, the largest mortgage lender in the U.S. The fact that it brought in record profits despite a loss in home loans points to its diversified business model.

However, if interest rates don't climb from here and sales and refinancing build on September gains, you can bank on Wells Fargo to capitalize more than any other lender. And don't forget the 3% dividend.

Jacksonville Bancorp

This is no Wells Fargo, but in its space it can be just as profitable.

Jacksonville Bancorp (JXSB), based in Illinois, owns a loan portfolio comprised of one-to four-family residential real estate; commercial and agricultural real estate; multi-family residential real estate loans; commercial and agricultural business loans; home equity loans and lines of credit.

Founded in 1916, it operates through its main office, as well as through six branches located in Jacksonville, Virden, Litchfield, Chapin, and Concord, Illinois. Midwest banks, according to an industry valuation metric, are expected to rise due to undervaluation.

Jacksonville Bancorp trades at a low P/E, at less than tangible book value despite a healthy balance sheet and room to increase its 1.60% dividend. Its stock currently trades at $19 and is forecast to hit $25.

The company's board of directors just authorized a stock repurchase plan for up to 5% of its outstanding shares of common stock.

Advisers inundated by fund company outreach

If you feel as though asset management companies are reaching out more aggressively than ever before, that's because they are.

On average, advisers are contacted 126 times a month from companies trying to sell investment products, up from 110 times a month last year and about 100 times a month five years ago, according to the 2013 Cogent Research Advisor Touchpoints survey.

Social media saw the biggest increase in use by asset managers as the number of communications doubled over last year to more than four a month.

E-mail, old fashioned mail, webinars, internal sales calls, wholesaler visits and road shows all saw increases as well, according to Cogent.

The 7 Ways Fund Companies Pester Advisers

Not all of the channels are getting rave reviews from advisers. Two out of five advisers said they preferred to be contacted by e-mail and 31% said they prefer external wholesaler visits, according to the Cogent survey of more than 1,700 financial advisers.

For some advisers, though, the crush of communications is more of a nuisance than helpful.

“It's way too much,” said Matt Reiner, chief investment officer at Capital Investment Advisors.

Mr. Reiner routinely deletes e-mails with headlines like “Morningstar Top Percentile!” or weekly investment commentaries.

“You do remember them if they keep on going all the time, but it tends to be too much,” he said. “If they really want your business, they'll figure out how to get in touch with you.”

Once a company does get in touch, what matters most to Mr. Reiner is whether the company is willing to establish a working relationship that goes beyond just pitching products.

“We don't try to talk to companies too much, but we want them to be available when we need them,” Mr. Reiner said. “It's really more about developing a personal relationship than just being all sales, all the time.”

U.S. Stocks Are Little Changed Before Fed Statement

U.S. stocks were little changed, with the Standard & Poor's 500 Index trading near its record high, as investors awaited a Federal Reserve announcement on the prospects for monetary stimulus.

FedEx Corp. (FDX) rose 2.6 percent after earnings topped estimates as the operator of the world's largest cargo airline reduced costs. Dollar Tree Inc. gained 2.9 percent after adopting a $2 billion buyback program. Adobe Systems Inc. rallied 7.5 percent as the largest maker of graphic-design tools said it amassed more than 1 million customers for its online services.

The S&P 500 advanced less than 0.1 percent to 1,704.86 at 9:41 a.m. in New York. The benchmark index climbed yesterday to within five points of its all-time high of 1,709.67 reached on Aug. 2. The Dow Jones Industrial Average declined 25.79 points, or 0.2 percent, to 15,503.94 today. Trading in S&P 500 stocks was 7.4 percent below the 30-day average at this time of day.

"Fed tapering seems to be priced in," Stephane Ekolo, chief European strategist at Market Securities in London, said in an interview. "Most investors expect the Fed to scale back in its monthly bond purchases, a reduction in the corridor of $5 billion to $15 billion."

The Federal Open Market Committee wraps up a two-day policy meeting today. Analysts are divided on the amount by which the Fed will scale back its monthly asset purchases. Among 64 economists surveyed by Bloomberg News, 33 predict it will reduce its buying of Treasuries by $5 billion or less, with 31 forecasting a cut of $10 billion or more.

Stimulus Program

The central bank's stimulus program has helped the S&P 500 (SPX) rally more than 150 percent from its March 2009 low. Speculation over the future of quantitative easing has whipsawed global asset prices since May, when Chairman Ben S. Bernanke first signaled cuts may start in 2013. The S&P 500 tumbled 5.8 percent from a record on May 21 through June 24. It rebounded 8.7 percent to close at it! s latest record last month, then slumped as much as 4.6 percent before climbing again.

The FOMC releases both its policy statement and forecasts for economic growth, inflation and unemployment at 2 p.m. Washington time. Bernanke will hold a press conference half an hour later.

Housing starts rose 0.9 percent to a 891,000 annual rate, following the prior month's 883,000 pace that was weaker than previously estimated, a Commerce Department report showed today in Washington. The median estimate of 83 economists surveyed by Bloomberg called for 917,000. Permits dropped 3.8 percent to a 918,000 pace, showing little momentum heading into this month.

Economic Bellwether

FedEx rallied 2.6 percent to $113.54. The company, regarded as an economic bellwether because of the variety of goods it ships globally, began taking steps last year to reduce costs by $1.7 billion as customers opt for cheaper shipping. FedEx is parking older planes sooner, trimming capacity to Asia and eliminating 3,600 jobs through buyouts.

Dollar Tree added 2.9 percent to $57.47. The discount-store operator said its board authorized $2 billion in equity repurchases. The Chesapeake, Virginia-based company also said it agreed with JPMorgan Chase & Co. to buy back $1 billion in shares under a variable maturity accelerated program.

Adobe climbed 7.5 percent to $51.77. The number of Web subscribers jumped 47 percent in the fiscal third-quarter, even as sales and profit declined.

Wine Fund Investing Without the Hangover

Wine has been in the headlines lately, but for reasons that wine investors aren’t finding very tasty.

Nobles Crus, a wine fund based in Luxembourg, drew the attention of the Financial Times a few months ago over its valuation methods. 

More recently, the Cayman-based Vintage Wine Fund announced it was shutting down, citing redemption requests and forced sales in a weak market.

With news that’s pretty hard to swallow, experts say there are some lessons to be had for financial advisors and their oenophile-clients who may be considering investments in wine funds.

Price Fluidity

Many fine wines have generated solid long-term returns with low correlation to traditional financial assets. In the short to intermediate term, however, wine prices are volatile.

The Liv-ex Fine Wine 100 Index, calculated by London-based Live-ex, is frequently cited as a benchmark for the top fine wines’ prices. The index is calculated monthly and tracks price movements of 100 of the most sought-after fine wines for which there is a strong secondary market.

Movement of the Index shows wine-price volatility over the past three and a-half years.

From a level of 209.33 in January 2009 it rose to 364.69 in June 2011, an increase of 74%. It then fell roughly 30% to 257.68 in July 2012 and has since recovered to 274.22 by June 2013. 

Why Structure Matters

Fine wines are an illiquid investment: They don’t trade like financial instruments, so selling a holding at the investor’s desired price can take time.

Combine the market’s illiquidity with open-end wine fund structures that offer liquidity, and you can have a mismatch, experts say.

Essentially, these funds — including the late Vintage Wine Fund — have matched long-term assets with short-term capital, says Timothy Clew, co-managing partner at TWT Investment Partners, a private-equity style wine investment fund in Ridgefield, Conn. That mismatch can cause problems if redemption demands increase, especially in a down market.

“Short of having a distribution network of your own and having a company of your own to sell these wines, it’s not easy to get out of positions quickly,” Clew (right) said in an interview with ThinkAdvisor. “You can’t simply say 'I’ve got 1,000 cases of x, y, z wines, I want to get out of them right now' and call your broker and say, ‘It’s time to sell those things’ and understand that the trade was done at 12:53 p.m.”

Wine investments don’t work like that, Clew explained. “You can sell things over time, and certainly you can get out of positions. But it requires time, number one. And, frankly, unless you’re willing to take huge discounts to sort of prevailing market prices… a large position would require months to get out of.”

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Valuation Watch

Regulators in Luxembourg have instructed Nobles Crus to halt investor redemptions, but the fund’s liquidity (or possible lack thereof) is not the underlying problem, according Clew. Last fall, news reports began questioning the fund’s valuation methods.

Other wine-fund managers typically rely on publicly available Liv-ex prices, while Nobles Crus used its own method to value its portfolio.

Some of the fund’s internal valuations were cited as being substantially above Liv-ex prices. These higher valuations helped the fund show consistently positive investment results despite overall lower prices in the fine wine market.

“I think the problem was that the world looked up and said ‘These guys are marking what they own at just crazy prices,’ ” says Clew. “And, of course, the incentive was [there], because it was a fund structured kind of like a hedge fund. The managers were being compensated real time on whatever marks they were putting on the assets that they owned. So, they were overstating [prices], by most people’s estimation. I guess you could charitably describe it as being very aggressive pricing …”

Alternative Approaches

Clew’s says that his fund’s private equity style format — in which investors commit for 10 years — avoids the liquidity mismatch.

The fund requires a minimum $250,000 investment and also owns its own distribution network. This business structure gives the fund immediate feedback on market prices and can help it generate business profits, even when wine prices are lower, according to the expert.

He also believe the fund’s fee structure is more equitable to investors than hedge-fund style fees.

For wine investors seeking an alternative to funds, Clew says that do-it-yourself wine investing can still pay off. This approach also allows investors to drink their holdings, regardless of market prices.

Another option is to establish the equivalent of a separately managed account for fine wine. That gives the investor access to a wine advisor, who can provide market knowledge, vintage insights and buying power, while still allowing the investor to own their own wines.

 

LocalShares Makes Its Debut With Nashville Area ETF ...

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After hesitantly creeping along resistance for the entire week in anticipation of GDP data and FOMC commentary, the S&P 500 Index finally managed to peer above the coveted 1,700 mark on Thursday. Amid the ongoing bull run on Wall Street, Tennessee-based newcomer LocalShares is making its first splash in the exchange-traded universe with its launch of the Nashville Area ETF (NASH) on Thursday .

Think LocalOne of the key drivers of growth behind the ETF industry has been the sheer diversity of available offerings; investors both big and small can tap into virtually any asset class around the globe, and even more impressively, there's usually several products to choose between in the same niche. LocalShares has taken the theme of "targeted" exposure to a whole other level with the launch of the Nashville Area ETF, which is officially the first city-focused fund on the market .

The premise behind the Nashville ETF may seem outlandish and "too niche," but it's really rooted in business fundamentals. Elizabeth Courtney, CEO of LocalShares, notes that the city's leadership, transit infrastructure, and tax policy are just a few of the noteworthy value-add characteristics that businesses headquartered in Nashville take advantage of. In other words, the premise behind this ETF is that certain regions and communities are more pro-business than others, and Nashville is one of those "hot spots" so to speak .

So what is actually included in NASH? The methodology behind this ETF is fairly straightforward; NASH encompasses publicly traded companies that are headquartered in Davidson County, which is the formal government seat in the state, or one of the six bordering counties. Furthermore, the securities must have a minimum market capitalization of $100 million and average daily trade volumes of at least 50,000 shares. Some of the compani! es included in NASH are:

Tractor Supply Community Health Systems Healthcare Realty Trust At inception, all of the component securities are assigned an equal weight, however, factors like growth, liquidity, yield, and ROI will be used to determine rankings and allocations in future quarterly rebalances. From a cost perspective, NASH's price tag of 0.49% falls in the middle of the cost spectrum for the All Cap Equities ETFdb Category, which features an average expense ratio of 0.47%.

Historically, hyper "geo-targeted" ETFs have not done so well. In 2009, Geary Advisors launched and soon thereafter announced the closure of the first two state-based funds, the Oklahoma ETF and the Texas ETF . Nonetheless, the Nashville Area ETF offers a compelling strategy for those looking to tap into a diverse portfolio of companies situated in a pro-business environment. LocalShares has also hinted that it is interested in developing other city-based ETFs down the road.

Follow me on Twitter @SBojinov

Disclosure: No positions at time of writing.

The Fed’s Taper Bodes Well for Canada

The US Federal Reserve has finally announced the inception of the long-awaited taper of its extraordinary stimulus. The central bank will start to pare its $85 billion per month bond-purchasing program by $10 billion in January.

As we’ve seen since the Fed first announced earlier this year its plan to eventually curtail the third round of its so-called quantitative-easing program, mere knowledge of its intent alone is enough to cause financial markets to tighten, while having broader repercussions in the global economy, including on exchange rates.

Now that the Fed has finally committed to a concrete action, as opposed to simply jawboning, the question for US investors with Canadian equity holdings is what this move portends for the economy of our neighbor to the north.

While Wall Street has reacted unfavorably to the Fed’s previous efforts to remove stimulus from the economy, the long lead time between the announcement of the Fed’s desire to taper and its actual decision to do so seems to have given traders and investors time to adjust accordingly.

More important, the Fed’s decision is yet another sign of a strengthening US economy, since any curtailment was always conditional upon significant improvements in economic data. And at least for now, it appears the market understands the positive implications of the taper.  

Since the US is Canada’s largest trading partner, a resurgent US economy should finally help Canada transition from an economy dependent on consumer demand to the export-driven economy envisioned by the Bank of Canada (BoC). Indeed, in a recent interview with The Wall Street Journal, BoC Governor Stephen Poloz echoed this sentiment by noting that a taper would occur in the context of a strengthening economy and that Canada would be poised to benefit from that as well.

However, Mr. Poloz cautioned that a US economic rebound alone won’t lift Canadian exports across the board as it’s done in the past. That linkage has been undermined by what Mr. Poloz describes as a “wedge,” and he and his fellow central bankers are still puzzling over it.

Part of the problem is the fact that the period since the global downturn has been more akin to a post-war recovery than a typical recovery following a recession. And Canadian exporters, in particular, suffered mightily during the Global Financial Crisis, with many firms going out of business, while the sector as a whole remains in a deep slump.

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The relatively strong Canadian dollar was part of the problem as well, since it undermined the competitiveness of the country’s goods in the global marketplace. But after trading above parity with the US dollar for much of 2011 and 2012, the loonie finally dropped below this key threshold in mid-February. And in the wake of the Fed’s announcement, it recently fell to its lowest level since May 2010, near USD0.935.

Of course, the BoC has also made subtle efforts to engineer a decline in the currency by abandoning its upward rate bias, which suggests at least the possibility of a future cut. As we wrote in a recent update, a “phantom rate cut” can sometimes achieve the same end as an actual rate cut.

But even with a stronger US economy and a weakening loonie, Mr. Poloz is worried that there is still “some unexplained weakness in exports.” He surmises that export firms that survived the downturn are understandably scarred from the experience and are, therefore, waiting to see whether the global economy truly gains traction before investing in growth.

Hopefully, those answers will emerge in the coming months. But circumstances seem to finally be aligning for a rebound in the Canadian economy.

Best Medical Companies To Invest In 2014

Willie Nelson, who turned 80 on April 30, once sang a song about an alarm clock that rang two hours late, a garbage man who spilled all the trash on the sidewalk, hinges that were falling off the gate, spilling his coffee, and having his wife leave him -- all on the same day. Some health-care stocks might need their own country songs after the past few days. Here are three of the most horrendous health-care stocks over the last week.

The way isn't greener
Lowering guidance doesn't tend to help a stock very much. Greenway Medical Technologies (NYSE: GWAY  ) found that out this week, with shares plunging more than 23%.

Greenway doesn't report its quarterly results until next week, but the electronic health record systems vendor decided to let the cat out of the bag early. The company projects revenue for the fiscal year ending June 30 of $132 million to $134 million. That range is lower than the $145 million to $150 million Greenway expected less than three months ago.

Best Medical Companies To Invest In 2014: Cell Therapeutics Inc (CTIC)

Cell Therapeutics, Inc. (CTI), incorporated in 1991, develops, acquires and commercializes treatments for cancer. The Company�� research, development, acquisition and in-licensing activities concentrate on identifying and developing new ways to treat cancer. As of December 31, 2011, CTI focused its efforts on Pixuvri (pixantrone dimaleate) (Pixuvri), OPAXIO (paclitaxel poliglumex) (OPAXIO), tosedostat, brostallicin and bisplatinates. As of December 31, 2011, it developed Pixuvri, an anthracycline derivative for the treatment of hematologic malignancies and solid tumors. Another late-stage drug candidate of the Company, OPAXIO, is being studied as a potential maintenance therapy for women with advanced stage ovarian cancer, who achieve a complete remission following first-line therapy with paclitaxel and carboplatin. As of December 31, 2011, it also developed tosedostat in collaboration with Chroma Therapeutics, Ltd. (Chroma). On May 31, 2012, CTI completed its acquisition gaining worldwide rights to S*BIO Pte Ltd.'s (S*BIO) pacritinib.

Pixuvri

As of December 31, 2011, the Company developed Pixuvri, an aza-anthracenedione derivative, for the treatment of non-Hodgkin�� lymphoma (NHL), and various other hematologic malignancies, and solid tumors. Pixuvri was studied in the Company�� EXTEND, or PIX301, clinical trial, which was a phase III single-agent trial of Pixuvri for patients with relapsed, refractory aggressive NHL who received two or more prior therapies and who were sensitive to treatment with anthracyclines. On September 28, 2011, CTI announced that a second independent radiology assessment of response and progression endpoint data from its PIX301 clinical trial of Pixuvri was achieved with statistical significance. The results of the EXTEND trial met its primary endpoint and showed that patients randomized to treatment with Pixuvri achieved a significantly higher rate of confirmed and unconfirmed complete response compared to patients treated with standard chem! otherapy had a significantly increased overall response rate and experienced a statistically significant improvement in median progression free survival. Pixuvri had predictable and manageable toxicities when administered at the proposed dose and schedule in the EXTEND clinical trial in heavily pre-treated patients. In March 2011, the Company initiated the PIX-R trial to study Pixuvri in combination with rituximab in patients with relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Pixuvri has also been studied in patients with HER2-negative metastatic breast cancer who have tumor progression after at least two, but not more than three, prior chemotherapy regimens. In the second quarter of 2010, the NCCTG opened this phase II study for enrollment. The study is closed to accrual and results are expected to be reported by the NCCTG later in 2012.

OPAXIO

OPAXIO is the Company�� biologically-enhanced chemotherapeutic agent that links paclitaxel to a biodegradable polyglutamate polymer, resulting in a new chemical entity. As of December 31, 2011, the Company focused its development of OPAXIO on ovarian, brain, esophageal, head and neck cancer. OPAXIO was designed to improve the delivery of paclitaxel to tumor tissue while protecting normal tissue from toxic side effects. In November 2010, results were presented by the Brown University Oncology Group from a phase II trial of OPAXIO combined with temozolomide (TMZ), and radiotherapy in patients with newly-diagnosed, high-grade gliomas, a type of brain cancer. The trial demonstrated a high rate of complete and partial responses and a high rate of six month progression free survival (PFS). Based on these results, the Brown University Oncology Group has initiated a randomized, multicenter, phase II study of OPAXIO and standard radiotherapy versus TMZ and radiotherapy for newly diagnosed patients with glioblastoma with an active gene termed MGMT that reduces responsiveness to TMZ. A phase I/II study of OPAXIO combined with radi! otherapy ! and cisplatin was initiated by SUNY Upstate Medical University, in patients with locally advanced head and neck cancer.

Tosedostat

In March 2011, the Company entered into a co-development and license agreement with Chroma Therapeutics, Ltd. (Chroma), providing the Company with marketing and co-development rights to Chroma�� drug candidate, tosedostat, in North, Central and South America. Tosedostat is an oral, aminopeptidase inhibitor that has demonstrated anti-tumor responses in blood related cancers and solid tumors in phase I-II clinical trials. Interim results from the phase II OPAL study of tosedostat in elderly patients with relapsed or refractory acute myeloid leukemia (AML) showed that once-daily, oral doses of tosedostat had predictable and manageable toxicities and results demonstrated response rates, including a high-response rate among patients who received prior hypomethylating agents, which are used to treat myelodysplastic syndrome (MDS), a precursor of AML.

Brostallicin

As of December 31, 2011, the Company developed brostallicin through its wholly owned subsidiary, Systems Medicine LLC, which holds rights to use, develop, import and export brostallicin. Brostallicin is a synthetic deoxyribonucleic acid (DNA) minor groove binding agent that has demonstrated anti-tumor activity and a favorable safety profile in clinical trials, in which more than 230 patients have been treated as of December 31, 2011. The Company uses a genomic-based platform to guide the development of brostallicin. A phase II study of brostallicin in relapsed, refractory soft tissue sarcoma met its predefined activity and safety hurdles and resulted in a first-line phase II clinical trial study that was conducted by the European Organization for Research and Treatment of Cancer (EORTC).

The Company competes with Bristol-Myers Squibb Company, Sanofi-Aventis, Pfizer, Roche Group, Genentech, Inc., Astellas Pharma, Eli Lilly and Company, Celgene, Telik, I! nc., TEVA! Pharmaceuticals Industries Ltd. and PharmaMar.

Advisors' Opinion:

• [By John Udovich]

  If you have not been watching the biotech sector lately, you should start paying attention as the sector along with small cap biotech stocks like Cell Therapeutics Inc (NASDAQ: CTIC), BIND Therapeutics Inc (NASDAQ: BIND) and TNI BioTech (OTCMKTS: TNIB) continue to produce a steady stream of good news for investors thanks to positive industry trends. Moreover, Ophthotech Corp (NASDAQ: OPHT), Foundation Medicine Inc (NASDAQ: FMI), Evoke Pharma and Fate Therapeutics Inc (NASDAQ: FATE) are this week's biotech IPOs that will no doubt be watched closely by Wall Street and industry observers in general. With that in mind, consider the following biotech news or recent articles about the industry and the small cap players in it:

• [By Sean Williams]

  Cell Therapeutics (NASDAQ: CTIC  )
  Certainly no discussion of companies with large accumulated deficits would be complete without discussing a biotechnology company. It's perfectly understandable to see a biotech, especially a clinical-stage one, run with an accumulated deficit, as it takes time and money to build up a drug pipeline. However, after multiple complete response letters (the equivalent of a rejection) by the Food and Drug Administration and years without an approved drug, Cell Therapeutics racked up an astounding $1.83 billion in accumulated deficits through the end of fiscal 2012. By comparison, that's nearly 56 times larger than its shareholder equity.�

• [By John Udovich]

  Large and small cap cancer stocks Gilead Sciences, Inc (NASDAQ: GILD), Celgene Corporation (NASDAQ: CELG), Veracyte (NASDAQ: VCYT), Genomic Health, Inc (NASDAQ: GHDX), Cell Therapeutics Inc (NASDAQ: CTIC) and MetaStat Inc (OTCMKTS: MTST) have all been producing a steady stream of news lately for biotech investors looking for a way to cash in on the growth in development of�cancer treatments. Just consider the following news:

• [By Nathalie Tadena]

  Among the companies with shares expected to actively trade in Friday’s session are Vanda Pharmaceuticals Inc.(VNDA), Kimberly-Clark(KMB) and Cell Therapeutics(CTIC).

Best Medical Companies To Invest In 2014: Bio-Matrix Scientific Group Inc (BMSN)

Bio-Matrix Scientific Group, Inc., incorporated on October 6, 1998, is a development stage company. The Company, through its wholly-owned subsidiary Regen BioPharma ,Inc., is engaged in the development of regenerative medical applications which it focuses to license from other entities up to the point of completion of Phase I and or Phase II clinical trials after which it would either attempt to sell or license those developed applications or, alternatively, advance the application further to Phase III clinical trials.

The Company has begun development of HemaXellerate, a cellular drug designed to heal damaged bone marrow. HemaXellerate I (TM) is a patient-specific composition of cells that have been demonstrated to repair damaged bone marrow and stimulate production of blood cells based on previous animal studies.

Advisors' Opinion:

• [By Bryan Murphy]

  If you're a small cap enthusiast looking for some budding ideas, you may not need to look any further than China GengSheng Minerals, Inc. (NYSEMKT:CHGS), Bio Matrix Scientific Group Inc. (OTCMKTS:BMSN), and MER Telemanagement Solutions Ltd. (NASDAQ:MTSL). All three have either pushed themselves to the brink of a breakout, if they haven't started one already. Here's a closer technical look at MTSL, BMSN, and CHGS, and what it's going to take to get them going if they're not going already.

Hot Companies To Invest In Right Now: LeMaitre Vascular Inc (LMAT)

LeMaitre Vascular, Inc. (LeMaitre Vascular), incorporated on November 28, 1983, is a global provider of medical devices and implants for the treatment of peripheral vascular disease. The Company develops, manufacture, and market vascular devices to addresses the needs of vascular surgeons. The Company's diversified portfolio of peripheral vascular devices consists of brand name products that are used in arteries and veins outside of the heart and are well known to vascular surgeons, including the Expandable LeMaitre Valvulotome, the Pruitt F3 Carotid Shunt, and VascuTape Radiopaque Tape. The Company sells 12 product lines, most of which are used in open vascular surgery and some of which are used in endovascular procedures. The Company sells its products primarily through a direct sales force. The Company�� products are used by vascular surgeons who treat peripheral vascular disease through both open surgical methods and endovascular techniques. In July 2013, Lemaitre Vascular Inc acquired the assets of Clinical Instruments International, Inc. In August 2013, Lemaitre Vascular Inc acquired the assets of InaVein, LLC.

In June 2011, the Company divested its TAArget and UniFit stent grafts to Duke Vascular, Inc. In August 2011, the Company terminated its distribution of Endologix�� aortic stent graft products in Europe. In November 2011, it launched the second-generation of The UnBalloon Non-Occlusive Modeling Catheter. In December 2011, the Company launched the Over-The-Wire LeMaitre Valvulotome.

Open Vascular Products

The Company�� open vascular products are used primarily in conventional open vascular surgery for the treatment of peripheral vascular disease. LeMaitre line of embolectomy catheters are used to remove blood clots from arteries or veins. The Company manufactures single-lumen latex and latex-free embolectomy catheters, as well as dual-lumen latex embolectomy catheters. The dual-lumen embolectomy catheter allows clot removal and simultaneous irri! gation or guide-wire trackability. Its Pruitt line of occlusion and perfusion catheters reduces vessel trauma by using internal balloon fixation rather than traditional external clamp fixation.

Pruitt F3, Pruitt-Inahara, Inahara-Pruitt, and Flexcel Carotid Shunts are used to temporarily divert, or shunt, blood to the brain while the surgeon removes plaque from the carotid artery in a carotid endarterectomy surgery. Its Pruitt F3, Pruitt-Inahara, and Inahara-Pruitt shunts feature internal balloon fixation that eliminates the need for clamps, thereby reducing vessel trauma. Its Flexcel shunt is a non-balloon shunt offered for surgeons who prefer to secure their shunt using externally placed clamps.

EndoRE line of remote endarterectomy devices are used to remove severe atherosclerotic blockages from the major arteries of the leg in a minimally invasive procedure requiring a single incision in the groin. Its EndoRE devices are used to separate the sclerotic blockage from the vessel, cut the far end of the blockage to free it for removal, and then withdraw the blockage from the vessel.

Expandable LeMaitre Valvulotome and its Over-The-Wire LeMaitre Valvulotome cut valves in the saphenous vein, a vein that runs from the foot to the groin, so that the vein can function as a bypass vessel to carry blood past diseased arteries to the lower leg or the foot. The Expandable LeMaitre Valvulotome is the only self-sizing and self-centering valvulotome available, and the Over-The-Wire LeMaitre Valvulotome is the only over-the-wire self-sizing valvulotome available.

AlboGraft Woven and Knitted Vascular Grafts are collagen-impregnated polyester grafts used to bypass or replace diseased arteries. They are available in both straight tube and bifurcated versions. LifeSpan ePTFE Vascular Graft is an expanded polytetrafluoroethylene (ePTFE) graft used to bypass or replace diseased arteries, and to create dialysis access sites. They are available in both regular and thin wall ! options a! nd with an optional full or partial external spiral support to increase resistance to compression or kinking. Its LifeSpan models are designed to reduce the risk of steal syndrome and high cardiac output, which are complications that may arise in dialysis access grafts.

AlboSure Vascular Patch is a polyester patch used in conjunction with endarterectomy and vascular reconstructions. Vascular surgeons use patches in conjunction with carotid endarterectomy, remote endarterectomy, and other vascular reconstructions. The Company also distributes the XenoSure Biologic Vascular Patch, a patch made from bovine pericardium.

AnastoClip VCS and AnastoClip GC Vessel Closure Systems allow surgeons to attach vessels, native and prosthetic, to one another by deploying titanium clips in place of suturing. These vessel closure systems create an interrupted anastomosis, or a vessel attachment that expands and contracts as the vessel pulses.

Endovascular and Other Products

The Company�� endovascular products are used primarily by vascular surgeons in minimally invasive endovascular procedures, such as stent-grafting, angioplasty, stenting, and atherectomy, and it also sells non-vascular medical devices used in general surgery procedures, primarily laparoscopic cholecystectomy. UnBalloon Non-Occlusive Modeling Catheter is used to apply radial pressure to the inside of an aortic stent graft in order to seal the outer lining of the stent graft against either the aorta or an adjacent stent graft.

VascuTape Radiopaque Tape is a flexible, medical-grade tape with centimeter or millimeter markings printed with its radiopaque ink that is visible both to the eye and to an X-ray machine or fluoroscope. VascuTape Radiopaque Tape is applied to the skin and provides interventionalists with a simple way to cross-reference between the inside and the outside of a patient�� body, allowing them to locate tributaries or lesions beneath the skin.

In some hosp! itals, va! scular surgery procedures are performed by general surgeons. The Company sells on-vascular medical devices used in general surgery procedures, primarily laparoscopic cholecystectomy. The Company�� general surgery product, the Reddick Cholangiogram Catheter is used to inject dye into the cystic duct during laparoscopic cholecystectomy. The Company also offers two laparoscopic accessories used in laparoscopic gall bladder removal.

The Company competes with Applied Medical Resources Corporation, Cardiovascular Systems Inc., Cook Group Incorporated, C.R. Bard, Inc., Edwards Lifesciences Corporation, Getinge AB, Jotec GmbH, Medtronic, Inc., Terumo Medical Corporation, Uresil, LLC and W. L. Gore & Associates.

Best Medical Companies To Invest In 2014: Rexahn Pharmaceuticals Inc (RNN)

Rexahn Pharmaceuticals, Inc. (Rexahn) is a development-stage biopharmaceutical company. The Company focuses on the development of cures for cancer to patients worldwide. The Company�� pipeline features one drug candidate in Phase II clinical trials. The Company also has several other drug candidates in pre-clinical development. In addition, the Company has two renal cell carcinoma (CNS) candidates, Serdaxin, CNS Disorders drug for depression and neurodegenerative diseases and Zoraxel, which is a erectile dysfunction (ED) and sexual dysfunction drug that are in clinical stages and the Company is are exploring options for further development . The Company�� drug candidate, Archexin is an anticancer Akt inhibitor.

Archexin

Archexin is potent inhibitor of the Akt protein kinase (Akt) in cancer cells. Archexin has FDA orphan drug designations for five cancers (RCC, glioblastoma, and cancers of the ovary, stomach and pancreas). Multiple indications for other solid tumors can also be pursued. Archexin inhibit both activated and inactivated forms of Akt, and to reverse the drug resistance observed with the protein kinase inhibitors. Archexin is an antisense oligonucleotide (ASO) compound that is complementary to Akt mRNA, and selective for inhibiting mRNA expression and production of Akt protein. As of December 31, 2011, Archexin was in Phase II clinical trials for the treatment of pancreatic cancer with enrollment completed in September, 2011.

Serdaxin

Serdaxin is an extended release formulation of clavulanic acid, which is an ingredient present in antibiotics approved by the FDA. The Company had been developing Serdaxin for the treatment of depression and neurodegenerative disorders. From January to September, 2011, the Company conducted a randomized, double-blind, placebo-controlled study compared two doses of Serdaxin, 0.5 milligram and 5 milligram, to placebo over an eight-week treatment period for major depressive disorder (MDD) patients. As of Dec! ember 31, 2011, the Company had not made a determination of Serdaxin�� future paths or resource allocations to further develop Serdaxin to treat MDD.

Zoraxel

Zoraxel is an orally administered, on-demand tablet to treat sexual dysfunction. Zoraxel is a dual enhancer of neurotransmitters in the brain that play a key role in sexual activity phases of motivation and arousal, erection and release, and may be the ED drug to affect all three of these phases of sexual activity. As of December 31, 2011, the Company was evaluating how to proceed with the Phase IIb study of Zoraxel.

The Company�� Pre-clinical Pipeline Drug Candidates includes RX-1792, which is a small molecule anticancer EGFR inhibitor; RX-5902, which is a small molecule anticancer ribonucleic acid (RNA) helicase regulator; RX-3117, which is a Small molecule anticancer deoxyribonucleic acid (DNA) synthesis Inhibitor; RX-8243, which is a small molecule anticancer aurora kinase inhibitor; RX-0201-Nano, which is a nanoliposomal anticancer Akt inhibitor; RX-0047-Nano, which is an nanoliposomal anticancer HIF-1 alpha inhibitor and RX-21101, which is a nano-polymer Anticancer.

Advisors' Opinion:

• [By James E. Brumley]

  With just a quick glance at a chart of Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN), it would be easy to conclude it's nothing but a volatile mess. When you take a step back and look at a long-term weekly chart of RNN, however, it starts to become clear that this small cap biopharma name is on the verge of a monster-sized breakout. First things first, however.

• [By Roberto Pedone]

  One under-$10 biopharmaceutical player that's just starting to move into breakout territory is Rexahn Pharmaceuticals (RNN), which is engaged in the development of novel treatments for cancer to patients. This stock has been on fire so far in 2013, with shares up sharply by 62%.

  If you take a look at the chart for Rexahn Pharmaceuticals, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of 36 cents per share to its intraday high of 53 cents per share. During that uptrend, shares of RNN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RNN into breakout territory above some near-term overhead resistance levels at 49 cents to 50 cents per share. It's worth noting that volume today is tracking in extremely strong with over 3 million shares traded, versus its three-month average action of 1.22 million shares.

  Traders should now look for long-biased trades in RNN if it manages to break out above Thursday's intraday high of 53 cents per share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.22 million shares. If that breakout hits soon, then RNN will set up to re-test or possibly take out its next major overhead resistance levels at 64 cents to its 52-week high at 66 cents per share. Any high-volume move above 66 cents to 67 cents per share could then send RNN towards its next major overhead resistance levels at 81 cents per share.

  Traders can look to buy RNN off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at 47 cents per share. One can also buy RNN off strength once it clears 53 cents per share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best Medical Companies To Invest In 2014: Amarantus Bioscience Holdings Inc (AMBS)

Amarantus BioScience Holdings, Inc., formerly Amarantus BioSciences, Inc., incorporated on March 22, 2013, is focuses on developing intellectual property and proprietary technology in order to develop drug candidates and diagnostic blood tests to diagnose and treat human diseases. The Company owns the intellectual property rights to a therapeutic protein known as Mesencephalic-Astrocyte-derived Neurotrophic Factor (MANF), owns the intellectual property rights to biomarkers related to oncology and neurodegeneration named BC-SeraPro and NuroPro respectively, has a license to an Alzheimer�� disease blood test named LymPro, and owns a number of proprietary cell lines called PhenoGuard. MANF was the first therapeutic protein discovered from a PhenoGuard Cell Line. In December 2012, the Company acquired neurodegenerative diagnostic portfolio from Power3 Medical Products. On March 22, 2013, the Company was merged with into Amarantus Bioscience Inc.

The Company also owns an inventory of 88 cell lines that Amarantus refers to as PhenoGuard Cell Lines. MANF is a protein that corrects protein misfolding. The Company�� MANF product development effort is centered on a therapy for Parkinson�� disease.

Advisors' Opinion:

• [By Bryan Murphy]

  Two weeks ago I penned some bullish thoughts on Amarantus BioScience, Inc. (OTC:AMBS). In simplest terms, I liked the way the stock had spent some time in consolidation mode, and looked like was testing the upper boundary of that zone - I figured a breakout from AMBS was imminent. So I waited... and waited.... and waited. Nothing. A week and a half later, I let the stock fall off my mental radar. As it turns out, I should have been a little more patient. Amarantus BioScience finally did the deed yesterday, and is following through today.

Best Medical Companies To Invest In 2014: Fuse Science Inc (DROP)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Company is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company�� products consist of EnerJel, PowerFuse and ElectroFuse. Ene! rJel is a topical product leveraging some of its technology, which is designed to address muscle fatigue and soreness, before, during and after physical activity. The product contains a natural anti-inflammatory and energy source which is directly applied to the problem area. PowerFuse contains natural ingredients, causes no sugar crash with zero calories and less than half the caffeine of an eight ounce cup of premium coffee. It is available in a great tasting Berry Blast Flavor. ElectroFuse contains natural ingredients, causes no sugar crash with zero calories, is easily portable and is available in a great tasting Salty-Sweet flavor.

Best Medical Companies To Invest In 2014: Galectin Therapeutics Inc (GALT)

Galectin Therapeutics Inc., formerly Pro-Pharmaceuticals, Inc., incorporated on January 26, 2001, is a development-stage company. The Company is engaged in drug development to create therapies for cancer and fibrotic disease. As of December 31, 2011, the Company has two compounds in development, one is to be used in cancer therapy and the other intended to be used in the treatment of liver fibrosis and fatty liver disease. These two compounds are produced from different natural starting materials, both possessing the property, which lends itself to binding to and inhibiting galectin proteins. GM-CT-01, the Company's product candidate for cancer therapy, is a linear polysaccharide polymer consisted of mannose and galactose that has a defined chemical structure and is derived from a plant source. GR-MD-02, the Company's product for treatment of liver fibrosis and fatty liver disease with inflammation and fibrosis, is a polysaccharide polymer possessing both linear and globular structures, which also is derived from a plant source.

GM-CT-01 has in development for the therapy of colorectal cancer and is in a Phase I/II clinical trial as a combination therapy with a tumor vaccine in patients with advanced melanoma. Based on the completed Phase I and partially completed Phase II clinical trials, the Company is exploring two additional potential indicia for the use of GM-CT-01 in combination with cancer chemotherapy. There are two additional pathways for the development of GM-CT-01 for use in treatment of cancer. GM-CT-01 was found to be generally safe when studied in a Phase I clinical trial in end-stage cancer patients with multiple tumor types alone and in combination with 5-Fluorouracil (5-FU), which is an Food and Drug Administration (FDA)-approved chemotherapy used for treatment of various types of cancer.

Advisors' Opinion:

• [By Roberto Pedone]

   

  Galectin Therapeutics (GALT) offers drug research and development to create new therapies for fibrotic disease and cancer. This stock closed up 9.6% to $12.06 in Monday's trading session.

   

  Monday's Volume: 674,000
  
  Three-Month Average Volume: 222,171
  
  Volume % Change: 149%

   

  Shares of GALT jumped higher on Monday after Ascendiant initiated coverage on the stock with a buy recommendation.

   

   

  From a technical perspective, GALT spiked sharply higher here with strong upside volume. This stock has been uptrending for the last three months, with shares ripping higher from its low of $3.95 to its recent high of $13.21. During that move, shares of GALT have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GALT within range of triggering a near-term breakout trade. That trade will hit if GALT manages to take out Monday's high of $12.44 and then once it clears its 52-week high at $13.21 with high volume.

   

  Traders should now look for long-biased trades in GALT as long as it's trending above some near-term support levels at $11 or at $10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 222,171 shares. If that breakout hits soon, then GALT will set up to enter new 52-week-high territory above $13.21, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.

   

Best Medical Companies To Invest In 2014: Navidea Biopharmaceuticals Inc (NAVB.A)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

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Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-c enter Phase II trial and three multi-center Phase II trial! s ! involving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has b een studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Best S&P 500 Stocks of 2013

Comebacks and momentum stories dominate the list of the hottest companies in Standard & Poor's 500-stock index this year. Meanwhile, the names that did the worst in 2013 were once-hot shares that have turned suddenly cold, either because of industry woes or corporate stumbles. It's a familiar theme. On Wall Street, one of the best ways to be this year's darling is to be last year's dog, and vice versa. "The market exaggerates," says R.J. Hottovy, an analyst with Morningstar Investments in Chicago. "In some cases, companies get oversold…and then they get overbought."

SEE ALSO: 24 Stocks for 2014

Netflix (NFLX) is a prime example. The subscription movie company saw its shares slammed in 2011, thanks to a price hike and shift in its business model that alienated a huge number of subscribers. The company's stock, which sold for $295 in July 2011, dropped to $54 in July 2012 as Netflix pressed forward with an expensive technology upgrade that allowed subscribers to receive movies and shows via the Internet rather than through the mail. But that gamble paid off, reviving the company's subscriber base. Wall Street is so in love with Netflix that the stock soared 303% in 2013 and now sells for about 92 times projected 2014 earnings, which is nearly four times the Los Gatos, Cal., company's projected long-term profit growth rate. (All stock returns as of December 12, 2013.)

Best Buy (BBY) has a similar story. Left for dead at the end of 2012, largely because of concerns that the chain couldn't compete with the likes of Amazon.com (AMZN) and Costco Wholesale (COST), the Richfield, Minn., retailer brought in new management, cut costs and revived its online presence. The company is still not out of the woods, by the CEO's own admission, but you'd never know that by the stock price. Best Buy's shares shot up 245% in 2013 and, at $40, now sell for 14 times projected earnings for the fiscal year that ends in January 2015. While profitability is improving, "the market has probably overshot the intrinsic value," says Hottovy. "Price competition is going to get a lot more attention in 2014 than it did this year."

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Top 10 S&P 500 Stocks of 2013
Stock	Price *
1. Netflix (NFLX)	+303%
2. Micron Technology (MU)	+256%
3. Best Buy (BBY)	+245%
4. Delta Air Lines (DAL)	+139%
5. Pitney Bowes (PBI)	+115%
6. Celgene (CELG)	+111%
7. E-Trade Financial (ETFC)	+106%
8. Boston Scientific (BSX)	+100%
9. Constellation Brands (STZ)	+98%
10. Genworth Financial (GNW)	+98%
* Returns as of December 12, 2013

Other rags-to-riches stock stories in 2013 include Hewlett-Packard (HPQ), up 91%; Yahoo (YHOO), up 98%; First Solar (FSLR), up 76%; and Western Digital (WDC), up 87%. Both HP and Yahoo have new CEOs, who are attempting to return the companies to growth and profitability. Western Digital, like Seagate Technology (STX)—which rose 66%—languished in 2012 because the market had decided computer storage was as passé as mainframes. But both companies are helping store data in the "cloud," and that's made them hot again. First Solar, meanwhile, was one of the hot stocks of the initial solar-energy boom. But its shares were battered when Chinese solar companies entered the market and started slashing prices. The resulting shakeout reduced competition and left the survivors stronger, says John Blank, chief equity strategist at Zacks Investment Research.

However, 2013's top performers also include some unqualified success stories. TripAdvisor (TRIP), the travel-planning Web site, took off immediately after it was spun off from Expedia (EXPE) two years ago. It now sells for $83, about three times more than its spinoff price and some 38 times its estimated 2014 earnings. The key to its success is that this Newton, Mass., travel concern was one of the nation's first social networks, says Scott Kessler, an analyst with S&P Capital IQ. By persuading travelers to rate the hotels where they've stayed and the tours that they've taken, TripAdvisor created consumer rankings that make it easier for similarly inclined travelers to plan a trip. Kessler adds that the social media theme played well in 2013, fueling a 97% rise in the stock.

But he thinks TripAdvisor is not likely to produce the same sort of market-beating returns in 2014. "There's a fair amount of uncertainty with this stock given all the appreciation we've seen so far," he says. "It just doesn't seem like a great opportunity at this time."

Kessler is equally tepid about the prospects for Priceline (PCLN), a now four-figure stock that was up 89% in 2013. Although Priceline has been brilliant at growing sales and revenues by double digits annually, the online travel market is getting increasingly crowded, and Kessler thinks it will be tough to keep up the blistering growth rate. "The company has a strong management team and a proven track record of success, but it's hard to see what catalysts have not already been priced into the stock."

The S&P 500's worst performers

On the opposite end of the performance spectrum are some once-hot stocks that went stone cold in 2013.

Consider Newmont Mining (NEM). Shares in the Greenwood, Colo., gold-mining company were selling for just $26 in October 2008, but the world financial crisis sent precious metal prices soaring, and Newmont's stock hit $69 by the end of 2011. As world economies have edged away from the cliff, gold prices have plunged and so, too, has Newmont. The company's shares now sell for a mere $23, down a whopping 47% in 2013 alone.

Big coal was all the rage during the 2012 presidential campaign, but in 2013 it accounted for some of the worst stock performance in the S&P 500 index. Cliffs Natural Resources (CLF) was down 37% during the year; Peabody Energy (BTU) dropped 30%. Blame fracking, says Blank, of Zacks Investment Research. Hydraulic fracturing procedures are allowing U.S. companies to produce more oil and natural gas than they ever have. Add that to the fact that solar has finally come out of the "1970s hippie thing" to become a viable business, and you see why coal companies have been left in the dust, he says. He doesn't see that changing anytime soon, either.

You can't blame the retail industry for what has happened to shares in Abercrombie & Fitch (ANF). Other S&P 500 retailers—from Michael Kors Holdings (KORS), which is up 57%, to T.J. Maxx parent TJX Companies (TJX), up 46%—are having a stellar year. But Abercrombie, known for advertising its clothing with sparsely clad youths, watched its stock price tumble 30% in 2013 as sales and profits plunged. The prospects remain bleak, says Blank: "It is your classic poorly run business."

Wall Street stock futures slip

U.S. stock futures slipped on Monday.

Before the start to regular trading, Dow Jones industrial average index futures fell 0.1%, Standard & Poor's 500 index futures dipped 0.03%and Nasdaq index futures declined 0.3%.

On Wall Street Friday, the Dow and Nasdaq inched up 0.1% while the S&P 500 finished fractionally lower.

FRIDAY: Stocks mostly up as Nasdaq barely tops 4000

In Asia, a report on manufacturing in China signaled that a recovery in the world's No. 2 economy would continue to be uneven. China's massive manufacturing sector grew at a slightly slower pace in December, according to a preliminary survey by HSBC.

The Shanghai composite index lost 1.6% to 2,160.86 and Tokyo's Nikkei 225 index fell 1.6% to 15,152,91.

Benchmark U.S. crude for February delivery edged 23 cents lower, or 0.2%, to $96.71 a barrel in electronic trading on the New York Mercantile Exchange.

Best Insurance Stocks To Watch For 2014

Global investors are still trying to figure out where things could be headed next. Some are watching for whether the Federal Reserve might reduce its economic stimulus, which has worked to boost stock prices recently, when it announces a monetary policy decision Wednesday.

Contributing: Associated Press

With a Real Improvement in New Home Construction, Here Is a Stock with Long-term Turnaround

5 Best Biotech Stocks To Buy Right Now

In a macro view, the Construction & Engineering industry includes companies that design, manufacture and install products for the residential & commercial construction and automotive markets. The industry is characterized by its cyclicality to the U.S. economy. I think the level of new construction or the sales of existing houses will remain favorable, so we are expecting a positive outlook for the sub-industry. With this promising outlook, let's take a look at Gabelli´s last trade and try to explain to investors the reasons of this appealing investment opportunity.

On Dec. 9, Mario Gabelli added Layne Christensen Company (LAYN). Layne is a water management, construction and drilling company. The company has five segments: Water Resources Division, Inliner Division, Heavy Civil Division, Geoconstruction Division and Mineral Exploration Division.

Key Business

In May 2013, the firm announced the launch of the water transfer business within the Layne Energy Services Division. Layne is currently providing these services for its clients operating in the Permian Basin. This division will provide solutions to address every phase of the water cycle as it relates to its use in the oil and gas industry.

Furthermore, Layne Christensen has good results in its Inliner business. Layne Christensen provides a range of rehabilitation services through traditional pipeline replacement or trenchless, cured-in-place pipe (CIPP) technologies through its Inliner product line. I think I will see better reported results in this segment.

Valuation

In terms of valuation, the stock sells at a price-to-book ratio of 1x which indicates a discount versus the industry average of 1.05x and the price-to-sales ratio of 0.31x is below the industry average of 0.49x.

Earnings per share (EPS) decreased in the most recent quarter compared to the same quarter a ! year ago.. We include the stock price because EPS often lead the stock price movement. The stock price is down 30.7% in the last 12 months, which is an alarming sign, but also positive for investors, because it is cheaper than most other peers in its industry

[ Enlarge Image ]

Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness. Moreover, it is worse than those shown in the table like Aegion Corporation (AEGN), EnerNOC Inc. (ENOC), MYR GroupInc. (MYRG) and Pike Corporation (PIKE).

Ticker	Name	Rev 1 Yr Gr: Y	EPS 1 Yr Gr: Y	P/E	ROE	Div Yld
	Average	10.20	22.94	29.61	- 3.66	3.71
LAYN	LAYNE CHRISTENSEN COMPANY	- 3.34	79.51		- 37.68	-
AEGN	AEGION CORP	9.52	100.00	14.97	6.46	-
ENOC	ENERNOC INC	- 3.01	- 61.54	38.84	5.86	-
MYRG	MYR GROUP INC/DELAWARE	28.01	85.56	15.47	13.09	-
PIKE	PIKE CORP	34.08	235.48	12.07	10.50	9.95

Final Comment

Layn´s revenue growth has been disappointing, for the six months ended July 31, 2013, were $458.5 million vs. $559.7 million in the prior year, down 18% year over year.

Despite having found a major weakness in the result of ROE, the firm has other highlights. On June the company and its lenders amended the $30! 0 million ! credit agreement to provide covenant relief. We think this will give more flexibility to the company management.

Hedge fund managers have also been active in the company. Hedge fund gurus like Chuck Royce and Arnold Van Den Berg have invested in it.

Disclosure: Damian Illia holds no position in any stocks mentioned.

Also check out: Arnold Van Den Berg Undervalued Stocks Arnold Van Den Berg Top Growth Companies Arnold Van Den Berg High Yield stocks, and Stocks that Arnold Van Den Berg keeps buying Chuck Royce Undervalued Stocks Chuck Royce Top Growth Companies Chuck Royce High Yield stocks, and Stocks that Chuck Royce keeps buying
About the author:A fundamental analyst at Lonetreeanalytics.com constantly looking for value and income investments.

Visit Damian Illia's Website

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Hilton Up 7.7% in Trading Debut

Hilton Worldwide Holdings Inc.’s shares rose in their trading debut, after the hotelier and some insiders sold more stock than initially planned in a $2.35 billion initial public offering.

The shares were up 7.7% at $21.54 in midmorning trading Thursday, after opening at $21.30. Late Wednesday, Hilton and some existing holders agreed to sell 117.6 million shares for $20 each. Underwriters may sell more stock, increasing the deal size.

The deal marks the world’s largest hotel IPO by proceeds, topping Hyatt Hotels Corp.'s(H) $1.1 billion debut in November 2009, according to Dealogic.

Hilton’s debut caps a multi-year turnaround and marks a big paper profit for the company’s majority owner, private-equity firm Blackstone Group LP(BX). Blackstone acquired the company for about $25 billion in debt and equity in 2007, the height of the last decade’s real-estate and buyout boom. The buyout firm isn’t selling any stock in the offering.

Recently, the hotel operator has benefited from rebounding room rates in its industry and a strategy of growing revenue and expanding its brand through franchising agreements, a less-costly approach than owning property outright.

Hilton enjoyed healthy demand for its IPO during a marketing road show, pricing the deal a day ahead of schedule as bankers’ order books filled up quickly. As the deal was being priced Wednesday, Hilton opted to sell about 4%
more stock than initially planned.

The shares are listed on the New York Stock Exchange under the symbol “HLT.” Deutsche Bank AG(DBK.XE) led the offering with Goldman Sachs Group Inc., Bank of American Merrill Lynch and Morgan Stanley.

Elsewhere in the IPO market, food services company Aramark Holdings Corp. opened at $20.25 Thursday, up 1.3% from its $20 offer price. That was the low end of the range the company had expected, according to a regulatory filing. In midmorning trading, the shares were up 7.1%.

The company and existing holders agreed to sell 36.3 million shares, raising $725 million.

The Philadelphia company’s IPO is its third, following a series of buyouts in the last four decades, the latest by a group of private-equity firms including Warburg Pincus LLC and Thomas H. Lee Partners in 2007.

Rising stock-market valuations have fueled a spate of IPOs this year, many of them by private equity-backed companies looking to harvest past years’ investments.

Three other companies were set to begin trading Thursday morning following IPOs: TetraLogic Pharmaceuticals Corp., CatchMark Timber Trust Inc. and Kindred Biosciences Inc.

Scorpio Bulkers Inc., a Monaco-based shipping company with shares listed on a Norwegian over-the-counter market, agreed to sell U.S. stock alongside an exchange offer for the existing shares-a transaction akin to an IPO.

Top 10 Warren Buffett Stocks To Invest In Right Now

On the back of yesterday's drop, U.S. stocks opened higher this morning, with the S&P 500 (SNPINDEX: ^GSPC  ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) gaining 0.44% and 0.39%, respectively, at 10:10 a.m. EDT.

Berkshire: Going abroad pays off
If I had a dollar for every comment asserting at the end of a Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) article that CEO Warren Buffett has lost his touch, I'd have a small fortune myself. Those opinions are an affront to reality when there is so much evidence to the contrary -- and yesterday, Berkshire supplied even more.

On Wednesday, the candy-to-bricks conglomerate announced that it had acquired the remaining 20% of Israel-headquartered International Metalworking Companies -- more commonly known by the name of its largest subsidiary, Iscar -- for the sum of $2.05 billion. The transaction values Iscar at $10.25 billion. In 2006, when Berkshire acquired its initial 80% stake, it paid $4 billion for a $5 billion valuation. A doubling in value over a seven-year timeframe is a respectable return, especially in relation to the stock market's performance over the same period:

Top 10 Warren Buffett Stocks To Invest In Right Now: CFS Bancorp Inc.(CITZ)

CFS Bancorp, Inc. operates as the holding company for Citizens Financial Bank that provides various banking products and services to individuals and businesses in the United States. The company offers various deposit products, including checking accounts, money market accounts, savings accounts, and certificates of deposit. Its commercial loan portfolio comprises commercial real estate loans, construction and land development loans, and commercial and industrial loans; and retail loan portfolio includes one-to-four family residential mortgage loans, lot loans, and consumer loans comprising home equity loans, home equity lines of credit, and auto loans. The company also offers investment services and securities brokerage for individuals, families, and small- to medium-sized businesses; and public fund deposits, repurchase sweep accounts, zero balance accounts, remote merchant capture, business overdraft privilege, business on-line banking, and other cash management related services. The company offers its services through its executive offices in Munster; and 23 banking centers located in Lake and Porter counties of northwest Indiana, as well as Cook, DuPage, and Will counties of Illinois. The company was founded in 1934 and is headquartered in Munster, Indiana.

Top 10 Warren Buffett Stocks To Invest In Right Now: Astronics Corporation(ATRO)

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace and defense industries worldwide. It operates in two segments, Aerospace and Test Systems. The Aerospace segment?s product lines include aircraft lighting, cabin electronics, airframe power, avionics databus products, and airfield lighting. This segment serves airframe manufacturers that build aircraft for the commercial, military, and general aviation markets; suppliers; and aircraft operators, such as airlines and branches of the U.S. Department of Defense, as well as the Federal Aviation Administration and airport operators. The Test Systems segment designs, develops, manufactures, and maintains communications and weapons test systems, and training and simulation devices for military applications. It sells its products primarily to the U.S. military, foreign militaries, and manufacturers of military communication systems. The company was founded in 1968 and is headquart ered in East Aurora, New York.

Advisors' Opinion:

• [By Rich Smith]

  Astronics Corp. (NASDAQ: ATRO  ) is bulking up in aerospace.

  On Tuesday, the manufacturer of high-performance lighting, electrical power, and automated test systems for the global aerospace and defense industries announced that it has agreed to buy fellow aerospace interior components maker PECO for approximately $136 million, cash. Privately owned PECO is a supplier to Boeing and a maker of fuel access doors and also "passenger service units" that incorporate air handling, emergency oxygen, electrical power management, and cabin lighting systems.�

Top 5 Oil Stocks To Own For 2014: Ym Biosciences Inc Com Npv (YM.TO)

YM BioSciences Inc., a drug development company, engages in developing hematology and cancer-related products. Its products include CYT387, a dual inhibitor of the JAK1 and JAK2 kinases, which has implicated in a family of hematological conditions known as myeloproliferative neoplasms, including myelofibrosis, as well in various other disorders comprising indications in hematology, oncology, and inflammatory diseases. The company is evaluating, CYT387, in a Phase I/II trial and a Phase II trial for the treatment of patients with myelofibrosis, a chronic debilitating disease in which a patient�s bone marrow is replaced by scar tissue. It is also developing nimotuzumab, a humanized monoclonal antibody, which is in various Phase II and III trials worldwide targeting epidermal growth factor receptor antibody. In addition, the company has various preclinical research programs underway with candidates from its library of compounds. YM BioSciences Inc. has collaboration agreemen ts with Daiichi-Sankyo Pharmaceutical Co. Ltd., Kuhnil Pharmaceutical Company, Innogene Kalbiotech, Oncoscience AG, the Center of Molecular Immunology, Pulmokine Inc, and Cancer Therapeutics CRC Pty Ltd. The company was formerly known as York Medical Inc. and changed its name to YM Biosciences Inc. in February 2001. YM BioSciences Inc. was founded in 1994 and is headquartered in Mississauga, Canada.

Top 10 Warren Buffett Stocks To Invest In Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By David Goodboy]

  I was pleasantly surprised that a Dunkin' Donuts I recently visited in South Carolina offered free Wi-Fi, a lounge area full of leather chairs, a variety of coffee flavors, sandwiches and, of course, donuts that are vastly superior to Starbucks' offerings. During my travels recently, I have noticed Dunkin' Donuts sprouting up in the same general areas as established Starbucks locations. This strategy resembles Burger King's (NYSE: BKW) pursuit of McDonald's (NYSE: MCD) locations.

• [By Rich Bieglmeier]

  McDonald's Corp. (MCD) plans to release third quarter results before the market opens on October 21, 2013 and will host an investor webcast afterwards.

Top 10 Warren Buffett Stocks To Invest In Right Now: Superior Resources Ltd(SPQ.AX)

Superior Resources Limited engages in the exploration of base metals in northwest Queensland, Australia. It primarily explores for copper, lead, zinc, and silver deposits, as well as for uranium, phosphate, and diamonds. The company holds approximately 18 exploration permits and applications that are grouped into 5 projects, which cover approximately 4,000 square kilometers in the northwest Queensland minerals province. It primarily focuses on the exploration of the Dajarra, Victor, and Nicholson projects that are situated in the Mount Isa area of northwest Queensland. Superior Resources Limited is based in Brisbane, Australia.

Top 10 Warren Buffett Stocks To Invest In Right Now: Sunland Group Ltd(SDG.AX)

Sunland Group Limited engages in property development and construction businesses in Australia and Dubai. It develops and sells land and medium density housing products. The company also involves in the ownership and management of hotel; funds management activities; and the provision of project management and design services to development properties. Sunland Group Limited was founded in 1983 and is based in Benowa, Australia.

Top 10 Warren Buffett Stocks To Invest In Right Now: Mansfield Minerals Inc. (MDR.V)

Mansfield Minerals Inc., a junior mining company, engages in the acquisition and exploration of mineral property interests primarily in Argentina. It holds a 100% interest in the Lindero project that includes the Lindero heap leach oxide gold deposit and the Arizaro porphyry gold-copper prospect covering an area of 35 square kilometers in Salta Province, northwestern Argentina. The company was founded in 1975 and is headquartered in Vancouver, Canada.

Top 10 Warren Buffett Stocks To Invest In Right Now: Labat Africa Ltd (LABJ.J)

Labat Africa Ltd. is a South Africa-based company engaged in the provision and delivery of management, business and retail services to commerce, industry, national and local government, the international market and all other organizations and individuals having a need for such services. Its subsidiaries included South African Micro-Electronics Systems (Pty) Ltd., Integrated Circuit Design Center (Pty) Ltd. and SAMES Properties (Pty) Ltd.

Top 10 Warren Buffett Stocks To Invest In Right Now: (BANC)

First PacTrust Bancorp, Inc. operates as a bank holding company for Pacific Trust Bank and Beach Business Bank that provides retail banking services to individuals and small to mid-sized businesses. The company offers various deposit accounts, such as checking and savings accounts, money market deposits, certificate accounts, retirement accounts, interest bearing demand accounts, and certificates of deposits. Its loan portfolio comprises commercial and industrial loans, commercial real estate mortgage loans, multi-family mortgage loans, small business administration guaranteed business loans, construction loans, lease financing, single family 1-4 unit residential mortgage loans, home equity lines of credit, home equity loans, and other consumer loans. In addition, the company offers leasing and financing services, cash and treasury management services, card payment services, remote deposit services, ACH origination, and employer/employee retirement planning products. Furth er, it provides mobile, online, and telephone banking services; automated bill payment services; electronic statements; safe deposit boxes; and direct deposit and wire transfers. As of December 31, 2012, it operated 19 banking offices in San Diego, Los Angeles, Orange, and Riverside counties in California; and 24 single family mortgage loan production offices in California, Arizona, Oregon, and Washington. First PacTrust Bancorp, Inc. was founded in 1941 and is headquartered in Irvine, California.

Advisors' Opinion:

• [By Tim Melvin]

  He opened a position in shares of Banc of California (BANC) in the quarter. The company is the holding company for Pacific Trust Bank and Beach Business Bank in the San Diego area. The bank has 60 locations and more than $3.5 billion in assets, and it just completed the acquisition of three institutions — The Private Bank of California, The Palisades Group and CS Financial –� which increased total assets by almost $1 billion. The shares trade right at book value. Banc of California is well positioned to benefit from a strong recovery in California and may eventually become a buyout target itself.

• [By Markus Aarnio]

  Banc of California (BANC) operates as a bank holding company for Pacific Trust Bank and Beach Business Bank that provides retail banking services to individuals and small to mid-sized businesses. Banc of California bottomed at $4.44 in December 2009 and is currently trading at $14.47 or 225.9% above the low made in December 2009. This performance is in line with the performance of the Financial Select Sector SPDR ETF.

Top 10 Warren Buffett Stocks To Invest In Right Now: Thorpe(fw)

FW Thorpe Plc, together with its subsidiaries, designs, manufactures, and supplies professional lighting systems for industrial, commercial, and controls markets primarily in the United Kingdom and rest of Europe. Its professional lighting systems comprise lighting control, emergency lighting, exterior lighting, and high and low bay lighting systems; LED, recessed, surface mounted, and suspended luminaires; and up and downlighters, lamps, and transformers. The company also provides emergency exit signage products; amenity, historical, trough, gas, and sign lighting products; and columns, brackets, and flambeaux products. In addition, it manufactures and supplies clean room lighting equipment and luminaires, such as recessed fluorescent and surface fluorescent products for laboratories, pharmaceutical areas, semi-conductor manufacturing areas, hospitals, kitchens, and food preparation applications. The company is headquartered in Redditch, the United Kingdom.