Bear of the Day: Taseko (TGB) - Bear of the Day

Top 5 Clean Energy Stocks To Invest In Right Now

This year has been quite challenging for copper miners with declining demand for the metal and rising inventories. Disappointing results have in turn led to sharp downward estimates revisions, sending Taseko Mines to a Zacks Rank # 5 (Strong Sell).

About the Company

Headquartered in Vancouver, Canada, Taseko Mines Limited (TGB) owns and operates mining properties in Canada. The company currently produces copper and molybdenum.

Disappointing Results and Guidance

On May 2, 2013, Taseko reported it first quarter 2013 results. The quarter resulted in an adjusted loss of $2.9 million, down from net earnings of $3.1 million for the first quarter of 2013. On a per-share basis, the loss was $0.01 per share, below consensus.

Downwards Revisions

Due to disappointing results, quarterly and annual estimates have been revised sharply downwards in the past few weeks by analysts.

Zacks consensus estimate for the current quarter now stands at a negative $0.01 per share versus $0.04 per share, 60 days ago, while the full-year consensus estimate is $0.11 per share now, down from $0.21 per share.

The Bottom Line

While the company is trying to grow production and lower costs, lower copper prices resulting from high inventories and global slow-down continue to act as headwinds.

TGB is currently Zacks Rank # 5 (Strong Sell) stock and it has a longer-term recommendation of "Underperform". Further the Zacks Industry rank of 231 out of 265 also indicates weakness in the near- to mid- term. Thus we think investors should avoid this stock for the time being.

Better Play?

Investors looking for exposure to the mining industry could look at Avalon Rare Metals (AVL) or Stillwater Mining (SWC)--both Zacks rank#1 (Strong Buy) stocks with "Outperform' recommendation.

Want! the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days.Click to get this free report >>

After-the-Bell Earnings Wrap: FB, EXPE, WTW

NEW YORK (TheStreet) -- Earnings for Facebook (FB), Expedia (EXPE) and Weight Watchers (WTW) were a mixed bag, sending shares in opposite directions.

Facebook

Social networking king Facebook slipped 0.2% to $48.91 in after-market trading, reversing an earlier gain of 12%.

For its third quarter, Facebook reported earnings of 25 cents a share compared to an average of 19 cents a share according to a survey of analysts by Thomson Reuters. Revenue of $2.02 billion, 49% of which was generated by mobile, was higher than an anticipated $1.91 billion. TheStreet Ratings team rates Facebook Inc as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate Facebook Inc (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing." You can view the full analysis from the report here: FB Ratings Report

Expedia

Expedia shares were surging 18% in after-hours trading after reporting better-than-expected third-quarter figures. The online travel agent reported earnings of $1.43 a share on revenue of $1.4 billion. Analysts surveyed by Yahoo! Finance were expecting $1.35 a share on $1.37 billion. Shares closed in regular trading at $49.96.

TheStreet Ratings team rates EXPEDIA INC as a Hold with a ratings score of C+. The team has this to say about its recommendation: "We rate EXPEDIA INC (EXPE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow." You can view the full analysis from the report here: EXPE Ratings Report

Weight Watchers

Weight Watchers plunged 14% to $34.31 in after-hours trading following an unexpectedly negative 2014 forecast. The weight-management company said it expects a "challenging" year ahead as revenue continues to be buffeted by waning new memberships.

"While we are working aggressively on both near-term commercial activities and longer-term strategic initiatives, 2014 will be a very challenging year.  To maintain financial flexibility and fund the company's transformation, the board has elected to suspend the dividend," said CEO Jim Chambers in a statement. The New York-based company reported third-quarter earnings of $1.07 a share on revenue 8.5% lower than a year earlier of $393.9 million. Analysts surveyed by Yahoo! Finance had expected 84 cents a share on $386.5 million. Management said cost-cutting measures allowed the business to surpass third-quarter expectations but that the trend will not extend to the fourth quarter. "While progress on cost cutting has allowed us to exceed our Q3 expectations, we expect Q4 revenues to be down low double digits," said Chambers. TheStreet Ratings team rates WEIGHT WATCHERS INTL INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate WEIGHT WATCHERS INTL INC (WTW) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow." You can view the full analysis from the report here: WTW Ratings Report

Is Zynga Undervalued at These Prices?

With shares of Zynga (NASDAQ:ZNGA) trading around $3, is ZNGA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Zynga is a provider of social gaming services, with 240 million average monthly active users in over 175 countries. The company develops, markets, and operates online social games as live services played over the Internet, and on social networking sites and mobile platforms. Zynga's games are accessible on Facebook (NASDAQ:FB), as well as other social networks and mobile platforms, to players globally — wherever and whenever they want. It operates its games as live services, and they are all free to play. However, it does generate revenue through the in-game sale of virtual goods and advertising.

A few weeks ago, Zynga shares rose after the company confirmed that Microsoft (NASDAQ:MSFT) Xbox chief Don Mattrick would be replacing founder Mark Pincus as Chief Executive Officer of the gaming company. Zynga has been facing some major struggles lately, but investors hope that the person who gave Microsoft the Xbox will be able to create similarly innovative technology to save it from failure. Recently, Zynga beat earnings and revenue estimates, but the company announced that it would not be pursuing real money gambling, news that has not sat well with investors.

T = Technicals on the Stock Chart are Mixed

Zynga stock has been struggling over the last several years. The stock is now breaking lower after a negative earnings report. Analyzing the price trend and its strength can be done using key simple moving averages.

What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Zynga is trading between its key averages, which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Zynga Options	61.51%	Top 10 Heal Care Companies To Invest In Right Now 0%	0%

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

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

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

On the next page, let’s take a look at the earnings and revenue growth rates, and what that means for Zynga’s stock.

E = Earnings Are Improving Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	75.00%	100.00%	94.40%	-700.00%
Revenue Growth (Y-O-Y)	-30.60%	-17.88%	-0.02%	3.20%
Earnings Reaction	-14.71%*	-6.56%	9.12%	12.20%

Zynga has seen improving earnings and decreasing revenue figures over the last four quarters. From these numbers, it seems the markets have not been pleased with Zynga’s recent earnings announcements.

* As of this writing

P = Weak Relative Performance Versus Peers and Sector

How has Zynga stock done relative to its peers, Electronic Arts (NASDAQ:EA), Activision Blizzard (NASDAQ:ATVI), Facebook (NASDAQ:FB), and the overall sector?

	Zynga	Electronic Arts	Activision Blizzard	Facebook	Sector
Year-to-Date Return	23.73%	76.17%	62.43%	29.00%	35.46%

Zynga has been a weak relative performer, year-to-date.

Conclusion

Zynga provides an interactive gaming experience to consumers worldwide. In a recent earnings report, the company announced that it will not be pursuing real money gambling, which has sent the stock much lower. Over the last four quarters, investors in the company have not been too happy, as earnings have been improving, while revenue figures have been decreasing. Relative to its peers and sector, Zynga has been a weak year-to-date performer. WAIT AND SEE what Zynga does this coming quarter.

Wells Fargo Ending Mortgage Lending Joint Ventures

The largest home lender in the U.S., Wells Fargo (NYSE: WFC  )   announced this week that its wholly owned subsidiary Wells Fargo Ventures LLC will withdraw from its eight mortgage lending joint ventures.

In a statement, the company said the decision is based on "the current regulatory and market environment as changes in state and federal oversight have increased the complexity and difficulty of operating mortgage joint ventures." Wells Fargo Ventures LLC plans to wind down the joint ventures over the next 12 to 18 months.

The company said leaving the partnerships won't affect its commitment to its own mortgage business.

As of 2013's second quarter, contributions from these joint ventures contributed approximately 3% of Wells Fargo's mortgage production. Wells Fargo has estimated that approximately 300 jobs will be affected by the decision. Customers with a mortgage loan application in process from any of the eight joint ventures will continue to have their applications processed by these companies.

The ventures that Wells Fargo will be exiting are: Bankers Funding Company LLC; Colorado Mortgage Alliance LLC; DE Capital Mortgage LLC; Home Services Lending LLC; Military Family Home Loans LLC; Prosperity Mortgage Co.; Premia Mortgage LLC; and, Private Mortgage Advisors LLC.

-- Material from The Associated Press was used in this report.

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Top 10 Casino Companies To Watch For 2014

Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

Late last month, the FTC issued an administrative complaint saying Pinnacle's proposed $2.8 billion acquisition of competing casino operator Ameristar would violate antitrust law. According to the FTC's announcement at the time of its challenge, an administrative complaint is issued "when it has 'reason to believe' that the law has been or is being violated."

Pinnacle and Ameristar have casinos which directly compete in the St. Louis area and the Lake Charles, La., area. The FTC alleged consumers in those areas would be affected by higher prices and lower quality with the lack of competition.

Pinnacle says that on June 13, FTC Chief Administrative Law Judge D. Michael Chappell granted Pinnacle's and Ameristar's unopposed motion to extend the deadline to respond to the administrative complaint by 30 days. Pinnacle said it intends to sell Ameristar's casino hotel development project in Lake Charles, and Pinnacle's Lumiere Place Casino, HoteLumiere, and the Four Seasons Hotel in St. Louis, subject to gaming regulatory approvals.

Top 10 Casino Companies To Watch For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  Now what: Online gaming is slowly being legalized across the U.S., with Nevada, New Jersey, and Delaware being the first to allow it. Boyd has a potentially lucrative partnership with bwin.party and MGM Resorts (NYSE: MGM  ) , which could lead to huge profit growth, as I pointed out over a year ago. I wouldn't buy on this analyst upgrade alone, but the potential for online gaming is too big to ignore. I've built some estimates before (which can be seen here) and there's huge upside for both Boyd Gaming and MGM Resorts, but only if its legalized nationally. Until then, the potential for online gaming is minimal for Boyd.
  
  Interested in more info on Boyd Gaming? Add it to your watchlist by clicking here.

• [By Travis Hoium]

  MGM Resorts (NYSE: MGM  ) doesn't have the flashy management that's made gaming companies famous, and CEO James Murren has taken a quieter role in the industry. But he has guided the company through the financial crisis and now has a huge growth opportunity on Cotai. But he isn't the only person investors need to watch.�

Top 10 Casino Companies To Watch For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Matt Thalman]

  While Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) are both major players in Macau, MGM Resorts (NYSE: MGM  ) is making a big push to grow its base in the Chinese gambling mecca, while it also has a massive footprint in Las Vegas, and the other two have a much lower room count. MGM owns a good portion of the Las Vegas Strip, and as we continue to see average daily hotel room rates rise for the city and increased gaming revenue for the strip, we will see MGM greatly benefit from a recovering American tourist industry and a stronger Las Vegas.

• [By Garrett Baldwin]

  Sin Stocks to Buy: Wynn Resorts (Nasdaq: WYNN)

  Wynn Resorts Ltd (Nasdaq: WYNN) currently pays out a $1 per share dividend each quarter, which provides a 2.4% dividend yield at its current stock price. And it's thriving because of the international markets.

• [By John Udovich]

  Melco Crown Entertainment Ltd (NASDAQ: MPEL) is a pure play Macau casino gaming stock that�� delivered an exceptional performance for investors verses the Las Vegas Sands Corp (NYSE: LVS), Wynn Resorts, Limited (NASDAQ: WYNN) and Market Vectors Gaming ETF (NYSEARCA: BJK), which also have exposure to the Macau casino gaming market, for a good reason. In 2006, Macau officially overtook the Las Vegas Strip as the largest casino gaming market in the world thanks in part to its location near Hong Kong�that�� also�within easy reach of the two billion people in China, Taiwan, Japan, South Korea, Thailand, Malaysia, Singapore, Indonesia and the Philippines. With that said, there could be some unfavorable trends or concerns that might make both Macau and Melco Crown Entertainment less of a sure bet.

• [By Paul Ausick]

  U.S.-based casino operators Las Vegas Sands Inc. (NYSE: LVS), Wynn Resorts Ltd. (NASDAQ: WYNN), and MGM Resorts International (NYSE: MGM) already operate resorts and casinos in Macau and these companies would be much smaller without them.

Best Cheap Companies To Own For 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Roberto Pedone]

  One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.

  If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.

  Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 a 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 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.

  Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 10 Casino Companies To Watch For 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Top 10 Casino Companies To Watch For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

Top 10 Casino Companies To Watch For 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Roberto Pedone]

   

  Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

   

  Monday's Volume: 1.11 million
  
  Three-Month Average Volume: 824,334
  
  Volume % Change: 73%

   

   

  From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

   

  Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

   

Can Caterpillar Produce Higher Prices?

With shares of Caterpillar (NYSE:CAT) trading around $83, is CAT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates in two segments: Machinery and Power Systems, and Financial Products. Infrastructure investment is increasing around the world, in particular, in developing countries. A global supplier of industrial equipment, like Caterpillar, is poised to see rising profits from this trend. As long as countries continue to grow and develop, Caterpillar will provide the tools essential to create this progress.

Caterpillar announced third-quarter sales and revenues of $13.423 billion, down from $16.445 billion in the third quarter of 2012. Profit per share for the third quarter of 2013 was $1.45, down from third-quarter 2012 profit per share of $2.54.”This year has proven to be difficult, with expected sales and revenues nearly $11 billion lower than last year. That is a 17 percent decline from 2012 with about 75 percent of the drop from Resource Industries, which is principally mining. We expect Resource Industries to be down close to 40 percent for the full year and Power Systems' and Construction Industries' sales to each be down about 5 percent,” said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.

T = Technicals on the Stock Chart Are Mixed

Caterpillar stock has remained fairly neutral over the last couple of years. The stock is currently trading near the high-end of a near-term range so expect a battle at current prices. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Caterpillar is trading slightly below its key averages, which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Caterpillar Options	22.44%	50%	48%

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

	Put IV Skew	Call IV Skew
November Options	Flat	Average
December Options	Flat	Average

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

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

E = Earnings Are Decreasing Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-42.91%	-42.91%	-44.73%	-55.16%
Revenue Growth (Y-O-Y)	-18.38%	-15.83%	-17.34%	-6.77%
Earnings Reaction	-6.13%*	-2.43%	2.83%	1.95%

Caterpillar has seen decreasing earnings and revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Caterpillar’s recent earnings announcements.

* As of this writing

P = Weak Relative Performance Versus Peers and Sector

How has Caterpillar stock done relative to its peers, Deere (NYSE:DE), General Electric (NYSE:GE), Cummins (NYSE:CMI), and sector?

	Caterpillar	Deere	General Electric	Cummins	Sector
Year-to-Date Return	-6.45%	-2.86%	22.46%	25.06%	10.55%

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

Conclusion

Caterpillar is a provider of construction and related industrial products and services during a time where countries around the world are seeing expansion. A recent earnings release has investors not impressed with the company. The stock has remained neutral in recent months and looks poised to continue this path. Over the last four quarters, earnings and revenues have been decreasing which has produced conflicting feelings about the company. Relative to its peers and sector, Caterpillar has been a weak year-to-date performer. WAIT AND SEE what Caterpillar does in coming quarters.

One's Heating Up, the Other's Cooling Off (MITK, RCON)

Anybody who was lucky enough to get into a Recon Technology, Ltd. (NASDAQ:RCON) position before October 7th, then congratulations - you're up big-time. Now get out. Instead, a better use of that capital is Mitek Systems, Inc. (NASDAQ:MITK). While RCON is overbought and ripe for a pullback, MITK is itching to stage a breakout.

The outlooks for both stocks won't be particularly well-received ... especially for Recon Technology, which has become one of the market's most-loved darlings since late last month, with shares rallying as much as 140% since the end of September. The weight of those gains is starting to take a toll now. As for Mitek Systems, while suggesting it is a buy won't create any ire, traders are probably aware it's been weak since June, and stuck in a range since July. The explanation for both calls is, nothing lasts forever.

RCON, in simplest terms, is slowing down. It's more than slowing down, in fact. It's testing the waters for a pullback. We've already seen a string of lower highs, and the distance between the daily lows has been getting smaller and smaller for a week and a half as more and more traders are starting to see Recon Technology, Ltd. as a profit-taking opportunity than a new buy. The irony is, the weaker it becomes from here, the more people will be interested in taking profits, and the less people will be interested in stepping into a new position in the stock. The clincher will be a close under yesterday's low of $4.44, though there's enough downside packed into the chart as it is right now to merit getting out, or even going short.

MITK, on the other hand, is quietly getting into position for a huge bullish wave.

The key to the upside from Mitek Systems is the bounce off of the 200-day moving average line (green) in early October. That was the same prod for the April-June bullishness. It's not just the bounce off that key long-term moving average line, however, that's saying shares are at the beginning of a new rally. MITK is also just pennies away from breaking above a major line in the sand at $5.63. That's where the 100-day moving average line is right now, and it's where a more recent horizontal ceiling has developed.  The "V" shape has already formed, however, so this is more a matter of when rather than if, not unlike the break above the $5.00-ish level in April that spurred a huge runup. One more nudge should light that fire.

Best Penny Stocks To Invest In Right Now

Just bear in mind these are short-term, technical outlooks, and not long-term judgment calls on the merits of either company.

If you'd like to get more trading ideas and insights like this one, sign up for the free SmallCap Network daily e-newsletter. It's full of stock picks, market calls, and more.

 

Amazon.com Inc. (AMZN): Forget $380 – What About $700?

Amazon.com Inc. (AMZN) is on the loose today, outperforming a strong NASDAQ. The online retail giant's shares are ahead by almost $20 (more than 6%) as we type. The A-to-Z retailers can thank an upgrade from UBS for today's charge.

Analyst Eric J. Sheridan sees the stock as a "Buy" now, up from yesterday's "Neutral" rating. Sheridan says the NASDAQ 100 member is on its way to $385; potential upside of 14.9% as we hit this keystroke.

According to the analysts, "We are upgrading shares of Amazon from Neutral to Buy & taking our PT to $385 (from $305) on the back of a bullish secular backdrop for Amazon's position in multichannel commerce & specific items that we think could propel both higher operating results and stock outperformance over the coming 12-18 months. Specific drivers for our upgrade: a) our expectations for a reacceleration of revenue growth and paid unit growth in Q4 and beyond (indicators being strong seasonal hiring trends, video game/console sales, easing paid unit comparisons, AWS); b) the globalization of its Kindle ecosystem; & c) its under-appreciated Advertising business."

Amazon.com is a difficult company to assign a valuation to as the company tends to lose money. As a matter of fact, Wall Street believes AMZN will lose nine cents for the current quarter.

For all of 2013, Amazon is forecasted to make a profit of $0.86. Sine Sheridan is concerned with the next "12-18 months," we'll focus our look at the possibility of $380 on 2014's numbers.

5 Best High Tech Stocks To Invest In 2014

Next year, the consensus estimate is $2.88 per share, which is a projected increase of 241% from this year's guesstimate. In order to price out at $380, Amamzon.com requires a P/E of 131.94 on 2014's EPS. It's not all that crazy when you consider the bottom line is slated for 241%. In fact, we rather like that sort of EPS growth to P/E discount.

Revenue ! for 2014 is projected to grow 21.50% to $90.39 billion. In the past five-years, investors have paid an average price-to-sales (P/S) ratio of 2.03 for the retailer's shares. They would have 1.9 times sales for the company with the stock at $380.

Overall: $380 seems reasonable for Amazon.com Inc. (AMZN) on a P/S basis; however, there could be additional upside to UBS's price target on a P/E basis. Many B-schools with that a P/E equal to EPS growth is acceptable, which would put Amazon closer to $700 than $400.

5 Best Biotech Stocks To Invest In Right Now

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Three Capital Markets stocks are moving up in their overall rating this week, according to the Portfolio Grader database. Every one of these is graded an “A” (“strong buy”) or “B” overall (“buy”).

Northern Trust Corporation (NASDAQ:) earns a B this week, jumping up from last week’s grade of C. Northern Trust is a financial holding company that provides investment management, asset and fund administration, fiduciary, and banking solutions for corporations, institutions, and affluent individuals. .

5 Best Biotech Stocks To Invest In Right Now: Organovo Holdings Inc (ONVO.PK)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The C ompany has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an aut! om! ated device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

5 Best Biotech Stocks To Invest In Right Now: Cubist Pharmaceuticals Inc.(CBST)

Cubist Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. The company markets CUBICIN (daptomycin for injection), a once-daily, bactericidal, intravenous, antibiotic with activity against gram-positive organisms, including methicillin-resistant staphylococcus aureus. Its clinical development product pipeline consists of CXA-201, which is in the phase III clinical trial for patients with complicated urinary tract infections; and in phase II clinical trial for patients with complicated abdominal infections. The company is also developing CXA-201 for the treatment of hospital acquired pneumonia. In addition, its product under development comprises CB-183,315, an oral, bactericidal lipopeptide with in vitro bactericidal activity against C. difficile, for the treatment of clostridium difficile-associated diarrhea (CDAD). Further , the company?s pre-clinical programs include therapies to treat various bacterial infections and agents to treat acute pain. Additionally, it promotes MERREM I.V. (meropenem for injection), a carbapenem class intravenous antibiotic, in the United States under a commercial services agreement with AstraZeneca Pharmaceuticals, LP; and DIFICID as the treatment for CDAD in adults under the co-promotion agreement with Optimer Pharmaceuticals, Inc. The company also has collaborations with Forma Therapeutics, Inc. to discover and develop antibacterial compounds; an agreement with the Broad Institute to transform natural products discovery; a collaboration with Hydra Biosciences, Inc., to develop ion channel drugs; and a collaboration agreement with Alnylam Pharmaceuticals, Inc., for the development and commercialization of Alnylam's RNAi therapeutics as a therapy for the treatment of respiratory syncytial virus. The company was founded in 1992 and is headquartered in Lexington, Mas sachusetts.

Advisors' Opinion:

• [By Jon C. Ogg]

  Cubist Pharmaceuticals Inc. (NASDAQ: CBST) was raised to Outperform from Market Perform at Leerink Swann.

  Diamondback Energy Inc. (NASDAQ: FANG) was downgraded to Hold from Buy at Canaccord Genuity.

• [By Alyssa Oursler]

  Another company with a megatrend in its corner is Cubist Pharmaceuticals (CBST) — the midcap stock that will replace Smithfield Foods in the S&P 400.

Top 10 Value Stocks For 2014: Inovio Pharmaceuticals Inc (INO)

Inovio Pharmaceuticals, Inc., incorporated on June 29, 1983, is engaged in the development of a new generation of vaccines, called synthetic vaccines, focused on cancers and infectious diseases. The Company's SynCon technology enables the design of universal vaccines capable of providing cross-protection against existing or changing strains of pathogens, such as influenza and human immunodeficiency virus (HIV). The Company's electroporation delivery technology uses brief, controlled electrical pulses to increase cellular uptake of the vaccine. Its clinical programs include cervical dysplasia (therapeutic), avian influenza (preventive), prostate cancer (therapeutic), leukemia (therapeutic), hepatitis C virus (HCV) and HIV vaccines. It is advancing preclinical research and clinical development for a universal seasonal/pandemic influenza vaccine, as well as preclinical work for other products, including malaria and prostate cancer vaccines. Its partners and collaborators include University of Pennsylvania, Drexel University, National Microbiology Laboratory of the Public Health Agency of Canada, Program for Appropriate Technology in Health/Malaria Vaccine Initiative (PATH/MVI), National Institute of Allergy and Infectious Diseases (NIAID), Merck, ChronTech, University of Southampton, United States Military HIV Research Program (USMHRP), the United States Army Medical Research Institute of Infectious Diseases (USAMRIID) and HIV Vaccines Trial Network (HVTN). As of December 31, 2011 it owned 16.1% interest in VGX Int��.

Inovio�� Solution

The Company�� synthetic vaccine platform consists of its SynCon vaccine design process and electroporation delivery technology. It has developed a preclinical and clinical stage pipeline of vaccines. The Company�� synthetic vaccines are designed to prevent a disease (prophylactic vaccines) or treat an existing disease (therapeutic vaccines). Its synthetic vaccine consists of a deoxyribonucleic acid (DNA) plasmid encoding a selected antigen! (s), which is introduced into cells of humans or animals with the purpose of evoking an immune response to the encoded antigen. The Company�� synthetic vaccines are designed to generate specific antibody and/or T-cell responses.

The Company�� SynCon technology provides processes that employ bioinformatics, which combine extensive genetic data and sophisticated algorithms. Its design process uses the genetic make-up of a common antigen(s) from multiple strains of a virus within a viral sub-type or taxonomic group (family) of pathogens, such as HIV, hepatitis C virus (HCV), human papillomavirus (HPV), influenza and other diseases to synthetically create a new antigen for the desired pathogen target that does not exist in nature. Its synthetic vaccine candidates are being delivered into cells of the body using its electroporation (EP) DNA delivery technology.

Cancer Synthetic Vaccines

The Company has two broad types of cancer vaccines: preventive (or prophylactic) vaccines, which are intended to prevent cancer from developing in healthy people, and treatment (or therapeutic) vaccines, which are intended to treat an existing cancer by strengthening the body�� natural defenses against the cancer. Two types of cancer preventive vaccines are available in the United States. The United States Food and Drug Administration (the FDA) has approved two vaccines, Gardasil and Cervarix that protect against infection by the two types of HPV-types 16 and 18-that cause approximately 70% of all cases of cervical cancer worldwide. In addition, Gardasil protects against infection by two additional HPV types, 6 and 11, which are responsible for about 90% of all cases of genital warts in males and females but do not cause cervical cancer.

Cervarix manufactured by GlaxoSmithKline, is composed of virus-like particles (VLPs) made with proteins from HPV types 16 and 18. Cervarix is approved for use in females��ages 10 to 25 for the prevention of cervical cancer caused by! HPV type! s 16 and 18. Gardasil manufactured by Merck, is approved for use in females for the prevention of cervical cancer, and some vulvar and vaginal cancers, caused by HPV types 16 and 18 and for use in males and females for the prevention of genital warts caused by HPV types 6 and 11. The vaccine is approved for these uses in females and males ages 9 to 26. The FDA has also approved a cancer preventive vaccine that protects against hepatitis B virus (HBV) infection.

Inovio�� VGX-3100 is designed to raise immune responses against the E6 and E7 genes of HPV types 16 and 18 that are present in both pre-cancerous and cancerous cells transformed by these HPV types. E6 and E7 are oncogenes that play an integral role in transforming HPV-infected cells into cancerous cells. In March 2011, it initiated a randomized, double-blind Phase II study of VGX-3100 delivered using the CELLECTRA intramuscular electroporation device in women with HPV Type 16 or 18 and diagnosed with, but not yet treated for, cervical intraepithelial neoplasia (CIN) 2/3. The study is designed to enroll 148 subjects. In January 2011, it announced the publication of a scientific paper in the journal Human Vaccines detailing potent immune responses in a preclinical study of its SynCon vaccine for prostate cancer targeting two antigens, prostate specific antigen (PSA) and prostate specific membrane antigen (PSMA).

In January 2011, the Company announced the regulatory approval of a Phase II clinical trial (WIN Trial) to treat leukemia utilizing its new ELGEN 1000 automated vaccine delivery device. The single dose level, Phase II study, called WT1 immunity via DNA fusion gene vaccination in haematological malignancies by intramuscular injection followed by intramuscular electroporation. Cancer Vaccines encodes for hTERT, an antigen related to non-small cell lung, breast and prostate cancers. The vaccine is delivered using its electroporation delivery technology.

Infectious Disease Synthetic Vaccines

In Marc! h 2011, the Company announced the initiation of a follow-on open label, single dose Phase II clinical study in collaboration with ChronTech of the ChronVac-C HCV DNA vaccine delivered using its electroporation technology in treatment naive HCV infected individuals. Its HIV vaccines consist of candidates for HIV prevention, as well as therapy or treatment. PENNVAX-B is designed to target HIV clade B (most commonly found in the United States, North America, Australia and the European Union (EU). PENNVAX-G is designed to target HIV clades A, C and D, which are more commonly found in Asia, Africa, Russia and South America. This Phase I clinical study of PENNVAX-B (HVTN-080) vaccinated 48 healthy, HIV-negative volunteers to assess safety and levels of immune responses generated by Inovio�� PENNVAX-B vaccine delivered with its CELLECTRA electroporation device. PENNVAX-B is a SynCon vaccine that targets HIV gag, pol, and env proteins.

The Company�� VGX-3400X targets H5N1. The vaccine consists of three distinct DNA plasmids coded for a consensus hemagglutinin (HA) antigen derived from different H5N1 virus strains; a consensus neuraminidase (NA) antigen derived from different N1 sequences; and a consensus nucleoprotein (NP) fused to a small portion of the m2 protein (m2E) based on a broader cross-section of influenza viruses in addition to H5N1 and H1N1. Conventional vaccines are strain-specific and have limited ability to protect against genetic shifts in the influenza strains they target. They are therefore modified annually in anticipation of the next flu season�� new strain(s). It is focused on developing DNA-based influenza vaccines able to provide broad protection against known as well as newly emerging, unknown seasonal and pandemic influenza strains.

Animal Health/Veterinary

VGX Animal Health, Inc. (VGX AH), a majority-owned subsidiary, has licensed LifeTide, a plasmid-based growth hormone releasing hormone (GHRH) technology for swine. LifeTide is one of onl! y four DN! A-based treatments approved for use in animals and is the only DNA-based agent delivered using electroporation that has been granted marketing approval (Australia). VGX AH is also developing a GHRH-based treatment for cancer and anemia in dogs and cats. It is developing a synthetic vaccine for foot-and-mouth disease (FMD) administered by its vaccine delivery technology. The FMD virus is one of the most infectious diseases affecting farm animals, including cattle, swine, sheep and goats, and is a serious threat to global food safety.

The Company competes with Crucell N.V, Sanofi-Aventis, Novartis, Inc., GlaxoSmithKline plc, Merck, Pfizer, AstraZeneca, Inc., Novartis, Inc., MedImmune and CSL.

Advisors' Opinion:

• [By Sean Williams]

  On the clinical data front, Alnylam Pharmaceuticals (NASDAQ: ALNY  ) and Inovio Pharmaceuticals (NYSEMKT: INO  ) both put investors in their happy place.

• [By Sean Williams]

  No fairytale ending
  Fairytale endings work great in the movies, but you rarely see them come to fruition in the real world. Small-cap biopharmaceutical Inovio Pharmaceuticals (NYSEMKT: INO  ) has seen shares nearly triple since April on the heels of multiple intriguing studies, but will the glass slipper fit over the long term?

5 Best Biotech Stocks To Invest In Right Now: CEL-SCI Corp (CVM)

CEL-SCI Corporation (CEL-SCI), incorporated on March 22, 1983, is engaged in the business of Multikine cancer therapy; New cold fill manufacturing service to the pharmaceutical industry, and ligand epitope antigen presentation System (LEAPS) technology, with two products, hemagglutinin type 1 and neuraminidase type 1 (H1N1) swine flu treatment for H1N1 hospitalized patients and CEL-2000, a rheumatoid arthritis treatment vaccine.

Multikine

CEL-SCI's Multikine, is being developed for the treatment of cancer. It is a cancer immunotherapy drugs called Combination Immunotherapy because it combines active and passive immunity in one product. It is the only cancer immunotherapy that both kills cancer cells and activates the general immune system to destroy the cancer. Multikine target the tumor micro-metastases for treatment failure. Multikine is also applicable in many other solid tumors.

New Manufacturing Facility

CEL-SCI's facility manufactures Multikine for CEL-SCI's Phase III clinical trial. CEL-SCI offers the use of the facility as a service to pharmaceutical companies and others, particularly those that need to fill and finish their drugs in a cold environment. Fill and finish is the process of filling injectable drugs in a sterile manner.

LEAPS

CEL-SCI's patented T-cell Modulation Process uses heteroconjugates to direct the body to choose a specific immune response. The heteroconjugate technology, referred to as LEAPS, is intended to stimulate the human immune system to fight bacterial, viral and parasitic infections, as well as autoimmune, allergies, transplantation rejection and cancer. Administered like vaccines, LEAPS combines T-cell binding ligands with small, disease associated and peptide antigens.

Using the LEAPS technology, CEL-SCI has created a peptide treatment for H1N1 (swine flu) hospitalized patients. This LEAPS flu treatment is designed to focus on the conserved, non-changing epitopes of the di! fferent strains of Type A Influenza viruses, including swine, avian or bird, and Spanish Influenza. CEL-SCI's LEAPS flu treatment contains epitopes.

5 Best Biotech Stocks To Invest In Right Now: NeoStem Inc (NBS)

NeoStem, Inc., incorporated on September 18, 1980, operates in cellular therapy industry. Cellular therapy addresses the process by which new cells are introduced into a tissue to prevent or treat disease, or regenerate damaged or aged tissue, and consists of a separate therapeutic technology platform in addition to pharmaceuticals, biologics and medical devices. The Company�� business model includes the development of novel cell therapy products, as well as operating a contract development and manufacturing organization (CDMO) providing services to others in the regenerative medicine industry. Progenitor Cell Therapy, LLC, the Company�� wholly owned subsidiary (PCT), is a CDMO in the cellular therapy industry. PCT has provided pre-clinical and clinical current Good Manufacturing Practice (cGMP) development and manufacturing services to over 100 clients advancing regenerative medicine product candidates through rigorous quality standards all the way through to human testing.

PCT has two cGMP, cell therapy research, development, and manufacturing facilities in New Jersey and California, serving the cell therapy community with integrated and regulatory compliant distribution capabilities. Its core competencies in the cellular therapy industry include manufacturing of cell therapy-based products, product and process development, cell and tissue processing, regulatory support, storage, distribution and delivery and consulting services. The Company�� wholly-owned subsidiary, Amorcyte, LLC (Amorcyte) is developing its own cell therapy, AMR-001, for the treatment of cardiovascular disease. AMR-001 represents its clinically advanced therapeutic product candidate and enrollment for its Phase II PreSERVE clinical trial to investigate AMR-001's safety and efficacy in preserving heart function after a heart attack in a particular type of post Acute Myocardial Infarction (AMI) patients.

Through the Company�� subsidiary, Athelos Corporation (Athelos), the Company is collaborating w! ith Becton-Dickinson in early stage clinical development of a therapy utilizing T-cells, collaborating for autoimmune and inflammatory conditions, including but not limited to, graft vs. host disease, type 1 diabetes, steroid resistant asthma, lupus, multiple sclerosis and solid organ transplant rejection. The Company�� pre-clinical assets include its Very Small Embryonic Like (VSEL) Technology platform. The Company has basic research and development capabilities, manufacturing facilities on both the east and west coast of the United States.

Advisors' Opinion:

• [By John Udovich]

  The results of a recent Pew Center Poll regarding attitudes towards abortion and various forms of stem cell research could be a good sign for the stem cell industry along with small cap stem cell stocks like StemCells Inc (NASDAQ: STEM), NeoStem Inc (NASDAQ: NBS), Neuralstem, Inc (NYSEMKT: CUR),�International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX). Basically, Americans think that having an abortion is a moral issue with 49% of American adults believing abortion is morally wrong, 23%�view it not as a moral issue and and 15% view it as morally acceptable. However and when Americans were asked about issues surrounding�human embryos, such as stem cell research or in vitro fertilization, as a matter of morality, their views were different.

• [By John Udovich]

  Summer and the slow news for the market that usually comes with it�is over with and both stem cell researchers or small� cap stem cell stocks like Advanced Cell Technology, Inc (OTCBB: ACTC), Neuralstem, Inc (NYSEMKT: CUR), NeoStem Inc (NASDAQ: NBS), International Stem Cell Corp (OTCMKTS: ISCO)�and BioRestorative Therapies (OTCBB: BRTX) having news for investors and traders alike. Consider the following:

• [By John Udovich]

  From stem cell burgers to earnings reports, the stem cell industry and small cap players in it like NeoStem Inc (NASDAQ: NBS), International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX) have been producing some news lately that has probably been overlooked by investors and traders alike given its August. Nevertheless, you might want to pay attention to the following stem cell news:

• [By Stock Investor]

  Back in April in my article titled, "Regenerative Medicine's Time Has Come", I covered two very interesting companies focused on this field: NeoStem Inc. (NBS) and Neuralstem Inc. (CUR).

Autodesk Will See A Further 14% Downside

Autodesk (ADSK), the multinational software company that makes drafting, manufacturing, civil engineering, 3D, and animation design software, has experienced a recent pullback. Part of that is due to the general market correction, but the other part is due to its recent quarterly results. It has pulled back roughly 13% from its high of $41.42 in May. Can it be bought now? Or is there more downside in the stock?

The stock decline began after Q1 earnings fell 30%. Autodesk reported a profit of 24 cents per share, down from 34 cents a share a year earlier. Revenue decreased 3.1% to $570.4 million. Operating margins also fell to 14.3% from 16% YoY. The company cited currency fluctuations as one reason for the disappointment. Over the course of their conference call, management mentioned several factors but I don't know if anyone has pinpointed a clear factor.

Chief Executive Carl Bass said the following:

A mixed global economy weighed heavily on our first quarter results... There were positive areas in the quarter but overall, a weak April led to a disappointing finish to the quarter."

The company is facing headwinds in the broader economy. This can be seen in declining sales in many areas of their business. Regionally, the U.S was flat; Northern Europe was up; Southern Europe was down; and emerging markets were down. Autodesk also lowered quarterly and yearly revenue expectations. This lowering of guidance by Autodesk also matches the same guidance changes made by competitors Parametric Technology (PMTC) and ANSYS (ANSS), so it is not necessarily losing out to its rivals in this case.

The CFO noted two important things in their conference call. First, he noted that a portion of earnings ($24M) were reported in Q4 last year, which subtracted that amount from this Q1. That accentuated the miss. Second, he noted that last year's Q1 was great, making the comparison very hard. Taken together, this quarter may not have been as bad as it seemed.

So there could be a varie! ty of reasons for the quarterly miss, but I believe that it was mainly due to: 1) a global economic slowdown taking place, 2) Autodesk customers spending less on IT, and 3) Year-over-Year comps, and 4) the financial engineering that took some income into Q4.

Metrics

The company has really solid free cash flows, evidenced by its price to free cash flow ratio of 13.70. It also has a low debt-to-equity ratio of .36. The company has a forward P/E ratio of 15.3, which seems reasonable given the uncertainty in much of the world economy.

And despite its trouble this past quarter, Autodesk has gross margins of 89% and operating margins of 13%. The operating margins are what they will continue to focus on improving. The CEO stated that they continue to reach for 30% operating margins. This will be the real test for management in my opinion. Revenue growth is more related to the economy at this point, but the margins are more in management's control.

Future Revenue

If the decline in sales is due to a larger economic slowdown, especially abroad, then that isn't necessarily a fundamental flaw with the company. An economic slowdown is something that has to be fought through, cutting costs where available, and squeezing out profits via efficiency.

Global recessions aside, Autodesk has made acquisitions over the past few years to beef up its product line. That should help with providing additional revenue streams. Autodesk bought Vela Systems last year for $76 million in an effort to add to its mobile device applications business. The purchase was a wise move because, as is noted in this article, a portion of design and drafting software is now being used on mobile devices. In addition to the Vela purchase, Autodesk made 16 other acquisitions over the past two years. This is a potential reason for the margins trouble, after all it can prove challenging to integrate that many companies together.

The company is also positioned well in the Cloud applications segment with its Auto! desk 360.! Additionally, the company seems to be effectively growing its subscription business (which is already very large). Both of those factors will play critical roles in the company's future revenue and earnings.

Hot Value Companies For 2014

Chart

The chart for Autodesk is basically a classic Head and Shoulders pattern. A Head and Shoulders pattern is a bearish reversal chart pattern. In the chart below, I noted the head and each shoulder, and then the broken neckline. I also added Quadrant Lines. Quadrant lines basically divide the price from high to low, into four sections, and add lines denoting the Low/25%/50%/75%/High prices. [I don't usually use Quadrant Lines, but it seems to work well showing that the distance from neck to top of the head is also the same as from the neck to the previous lows.]

(click to enlarge)

Price Target & Strategy

Strategically speaking, the paragraphs above may provide a mixed message. Earnings going down and margins down; solid free cash flow and low debt; a macroeconomic slowdown; and strong sales to automotive makers.

I believe that in the long run, the stock is a solid winner and will continue to grow earnings. In the short and mid term, I am not as certain. I believe that it is worth waiting to see if the global economy gets worse, before jumping into Autodesk at these levels. Additionally, I would prefer to see margins heading back up, indicating that the acquisitions from the past two years are being integrated well.

I like to use technical analysis to help choose entry and exit positions. To obtain the downside target on the break of a Head and Shoulders "neckline," you measure from the neckline to the top of the head. That is the amount of decline you can reasonably project the price to fall to! below th! e neckline. Again, this just happens to match up with previous lows -- which would act as a level of support on its own. You can expect that a number of technicians will buy that level, which is why that's my target for this slide. And that is how I come up with the target and projection of 14% further downside.

Therefore, I would not look to buy this until the stock shows strength, presumably near the $31-30 level.

Source: Autodesk Will See A Further 14% Downside

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

How Five 'Sin Stocks' Are Conquering the World

Johnnie Walker scotch has one of the best advertisements I've seen in years.

Maybe you've caught it. It shows hundreds of Mexican men and women unshackling themselves from a massive boulder and climbing up a mountain unchained.

Playing on their popular tagline "Keep Walking," Johnnie Walker's parent company Diageo plc (NYSE: DEO) encourages Mexican consumers to "Keep Mexico Walking."

The ad aims to tell the story of Mexico's long journey from poverty to prosperity.

And it's working. The scotch brand has created a booming market in Mexico - which is why Foreign Policy magazine wrote this month that Johnnie Walker scotch is conquering the world.

This is great news for investors - even if you aren't a fan of scotch...

Diageo is part of a global club known as "sin stocks." These are companies that manufacture products that are considered "bad for you." These companies tend to be recession-proof - meaning their stocks can outperform markets when the economy is shaky.

Sin stocks are a favorite among portfolio owners not just because consumers buy these brands in good times and bad, but also because they tend to provide steady income streams in the form of strong dividends.

Now international sin stocks like Diageo have developed strategies to capture growth from emerging markets, like Mexico. Even though emerging markets have struggled since earlier this year when Ben Bernanke first hinted at a QE taper, their consumers continue to spend money on alcohol, tobacco products, gambling, and fast food.

These stocks are a great way to profit from regions with increasing consumer spending - as U.S. consumers struggle with declining incomes and rising prices.

Here are five sin stocks to buy now.

Sin Stocks to Buy: Diageo (NYSE: DEO)

Diageo manufactures, distributes, and markets global brands of spirits, beer, and wine products. The company's premium spirits brands like Johnnie Walker and Smirnoff are extremely popular with U.S. consumers. But it's the international market that offers the real boost.

With a yield of 2.37%, Diageo is a giant in the emerging markets. The company earns 33% of its profits from emerging markets and has gained double-digit growth abroad. Investors will expect this dividend to increase in the future as well, as the firm has raised distributions each year for more than a decade.

And, as I noted above, they're very good at marketing toward emerging markets.

Sin Stocks to Buy: Philip Morris International (NYSE: PM)

As the world's second-largest tobacco company, Philip Morris International (NYSE: PM) is an ideal sin stock.

And with numbers like these, it's also an ideal way to play global growth...

The U.S. cigarette market is shrinking. The best growth opportunities are found in countries like India, China, and Indonesia. One out of every three cigarettes in the world is smoked in China, and while Americans might be kicking the habit, new international cigarette smokers are joining the ranks every day.

Philip Morris owns nearly 30% of the global tobacco market and has grown substantially since its split with Altria Group. The company owns the world's most iconic brand in Marlboro and has a very loyal client base.

It also offers investors a strong yield of 4.40%.

Sin Stocks to Buy: McDonald's Corp. (NYSE: MCD)

McDonald's Corp. (NYSE: MCD), home of the Big Mac, remains one of the most reliable streams of income for international investors.

Domestically, the company is transitioning to a different menu, and its income streams have steadied. That's why most of its growth is now found in Africa and East Asia, where the company is thriving.

It's also a Dividend Aristocrat and has raised its dividend for 34 consecutive years.

The company offers a strong 3.42% yield, and it has increased its annual distributions by 26.5% each year over the last ten years.

Sin Stocks to Buy: Altria Group Inc. (NYSE: MO)

Altria Group Inc. (NYSE: MO) is the crown-jewel of sin stocks.

Through its many subsidiaries, Altria manufactures and sells cigarettes, wine, and other tobacco products in the United States and abroad. It dominated the U.S. cigarette market with 50% of the domestic share. But for investors, the reputation as a dividend champion has made it one of the best companies to own.

The country has increased its dividend for 43 years in a row. Its current yield sits at 5.40%.

For more on why Altria's yield makes it one of the best sin stocks to buy, check out This Time-Tested Strategy Could Be Your Winning Lottery Ticket.

Sin Stocks to Buy: Wynn Resorts (Nasdaq: WYNN)

Wynn Resorts Ltd (Nasdaq: WYNN) currently pays out a $1 per share dividend each quarter, which provides a 2.4% dividend yield at its current stock price. And it's thriving because of the international markets.

You see, Las Vegas is old news for casino giants. All the action is now in China, and companies like Wynn Resorts are raking in the profits from gamblers abroad. Today, approximately 70% of Wynn's gambling revenues come from Macau, the thriving Chinese gambling district.

Wynn currently owns two properties in Macau and has begun to construct its third. Best of all, they're thriving because they are one of the few companies to earn a gaming license from the Chinese government.

That makes Wynn a stock poised for even more growth abroad.

Now for today's top story: I Just Got Another "Strong Buy" Signal...

One year on, iShares' Core series clawing back market share for BlackRock

Bloomberg News

One year ago this week, BlackRock Inc.'s iShares launched a new series of exchange-traded funds aimed at buy-and-hold investors to fight its declining market share. It's working.

BlackRock launched its Core series, a group of 10 low-cost building-block ETFs that can be used to build the base allocation of a portfolio, in October 2012 after watching its ETF market share fall to about 40%, from nearly half in 2009.

The main cause for the erosion was the fact that iShares, the largest ETF company, with $623 billion in ETF assets, was unable to compete with the low-cost ETF options at rival Vanguard Group Inc. AllianceBernstein LP even went so far as writing to clients that BlackRock was suffering from a case of “Vanguarditis.”

That apparent sickness turned into a cure for investors, though, as the fading market share led BlackRock officials to realize that the firm could do more to serve classic buy-and-hold investors. Thus the launch of the Core series.

“We pay attention to what competitors are doing, but I wouldn't say it drives our behavior,” said Sue Thompson, head of the registered investment adviser group at BlackRock. “It's our clients that drive our decisions.”

The Core series included price cuts on, and the re-branding of, six existing ETFs, such as the $45 billion iShares Core S&P 500 ETF (IVV), and the introduction of four new low-cost ETFs, such as the $2.5 billion iShares Core MSCI Emerging Markets ETF (IEMG). The moves are not complete, as iShares plans to launch target risk allocation managed portfolios of the Core ETFs in an ETF-of-ETFs structure.

The idea behind Core was to make it easier for advisers and retail investors to choose ETFs for their portfolios, Ms. Thompson said.

“The way we think about it is, the simpler we can make things, the better,” Ms. Thompson said. “The average person doesn't need a small-cap Brazilian hedged ETF. They need something simple.”

(Don't miss: iShares takes next step to woo retail investors, fend off Vanguard)

iShares' new commitment to simplicity — and low costs — has struck a chord with investors.

“It was a good sign they're moving in the direction we want to see them moving,” said Derek Tharp, a financial planner at Mote Wealth Management LLC. “The Core series fits our personal investment approach. We like to see more competition in that area.”

The 10 Core ETFs have had $9 billion in inflows for the year through Sept. 30, nearly one-third of the $30 billion in total net inflows into iShares ETFs over that time. The Core series has also helped iShares ETFs break into model portfolios at the warehouses, particularly the long-term strategic models, which iShares was largel! y left out of before.

“The Core series has to be viewed as a success,” said Michael Rawson, an analyst at Morningstar Inc. “They had the same funds before, but they weren't competitive. Now they're able to compete in that space.”

The expense ratio of the iShares Core S&P 500 ETF was reduced to 0.07%, from 0.09%, as part of its re-branding as Core. The price cut helped bridge the gap between it and the $12 billion Vanguard S&P 500 ETF (VOO), which charges 0.05%.

Through the end of September, the two ETFs were neck and neck with inflows, each taking in around $3.7 billion. Over the comparable time period last year, Vanguard's S&P 500 ETF had a $1.1 billion inflow lead over the iShares ETF.

To help expand the Core ETFs, BlackRock also doubled down on its distribution partnership with Fidelity Investments in March. Fidelity customers can now trade 65 iShares ETFs commission-free at Fidelity, including the entire Core series, up from 30.

Overall, the introduction of the Core series has helped stabilize iShares' ETF business, Mr. Rawson said.

From 2009 to September 2012, iShares' ETFs shed about 0.2% of market share a month. Since the introduction of the Core series in October 2012, its market share has essentially been flat, falling only 0.05% a month, according to Morningstar.

Still, iShares faces an uphill battle in winning over some buy-and-hold advisers who have been using Vanguard ETFs for years.

“The Core products are great, but quite frankly, I don't feel they are a better long-term option than other products already available,” said James Osborne, president of Denver, Colo.-based financial planning firm Bason Asset Management, who uses primarily Vanguard ETFs.

BlackRock spokeswoman Christine Hudacko said the primary goal of the Core series is to capture the increasing number of buy-and-hold investors discovering ETFs.

That doesn't mean Bla! ckRock is! ready to concede to Vanguard.

“If you have scale and a broad product set, you're in a better position to form a really important part of an RIA's portfolio,” Ms. Thompson said. “Low-cost core ETFs put you in an even better position.”

This Demand Source for Natural Gas Is Changing Everything

As we have discussed on several occasions, there is a revolution occurring on the demand side in natural gas. No fewer than five major advances are hitting that will ramp up the requirements for this fuel source.

It's a development every investor should know about because it pushes new names on to the list of today's best investments in natural gas.

What's more, the impact this revolution will have on additional North American production will be far reaching. That's a good thing, since we have far more unconventional reserves than initially estimated. In fact, this new demand is already being felt, providing a floor for ramping up drilling even further.

Four of these sources of new demand are domestic: the transition from coal to gas as a fuel of choice in the generation of electricity, rising use of gas as a feeder stock for petrochemicals, increasing industrial applications, and an accelerated expansion of natural gas as a vehicle fuel, especially in truck and transit fleets. There are even moves to use natural gas as a fuel in railway traffic.

However, it is the fifth source of new demand that is going to change everything. When it comes to how energy is moved, it is the single largest change to emerge in decades.

I'm talking about the developing market for liquefied natural gas (LNG).

Best Investments in Natural Gas and the LNG Revolution

Of course, I've written about LNG in these pages before. It involves cooling gas to a liquid, allowing it to be transported via specially designed tankers. The advantage is that it affords a greater use of existing pipeline networks while also expanding the gas trade worldwide.

You simply liquefy the gas at a terminal on one end and regasify it at a terminal on the other.

The emergence of this trade will fundamentally improve the global energy balance and usher in an age of rapid unconventional (shale and tight gas, coal bed methane) basin development worldwide.

In the United States, LNG exports will also soon comprise a major boon to increasing production without hammering domestic prices. Abroad these exports will become a lifeline...

Rapidly Expanding Markets Abroad

This is especially true in Europe where LNG imports are already establishing spot markets.

Spot markets involve short-term sales that are almost always at a cheaper price than long-term pipeline contracts. The beneficiaries are the end users on the continent, while the primary loser in this case is the Russian natural gas behemoth Gazprom.

This is because Gazprom operates on 20-year contracts that include two particularly disagreeable elements. The first that their price is based on a basket of crude oil and oil product prices. Given the high level of oil prices, that means the cost of gas through these has been continually rising.

The second are "take or pay" provisions each contract contains. These require that a customer take a specified amount of gas monthly (usually at least 70%), or pay as if they had.

Both of these factors are increasing the cost of natural gas substantially in Europe.

The good news for European consumers is that neither is involved in spot purchases of gas delivered via an LNG terminal. And that has prompted lots of people to watch the development of U.S. export potential with considerable interest.

But there is a much bigger story unfolding elsewhere.

The demand for LNG in Europe still pales in comparison to the demands in Asia. Only a few years ago, Japan and South Korea comprised almost two-thirds of the international LNG demand market. These days, with China and others quickly moving in, Asian LNG prospects are moving off the charts.

This a huge development if you're looking for today's best investments in natural gas, which brings me to a couple of major developments in the LNG market that happened yesterday...

Two Big Wins for LNG Investors

One development reaffirmed that the Panama Canal expansions will be complete in 2015. This widening and deepening project will allow LNG tankers to move through the canal for the first time - making it profitable to transport LNG from Gulf Coast terminals directly to Asia. That will complement the already expected heavy traffic to Europe.

Second, we learned that the increase in LNG exports is hardly confined to new U.S Gulf Coast terminals.

Yesterday, Alaskan North Slope producers and TransCanada Corp. (NYSE: TRP) announced their intentions to build a Kenai Peninsula pipeline terminus and an LNG plant that could cost up to $65 billion. The project would move 3.5 billion cubic feet a day to the plant and produce upwards of 18 million tons of LNG annually. Almost all of it would be destined for Asia.

This project will benefit the huge Horn River and Montney shale plays in northern British Columbia and Alberta and will also provide a major outlet for the natural gas produced closer to the plant.

This is in the Cook Inlet area near Anchorage, where I already have a major interest in what is going on because of the prospects for new multiple horizon pay zones there. Now, there is an additional outlet for the production those pay zones will deliver.

That will be of benefit to several dozen smaller American operators - providing us with some nice "sweet spot" investment moves with companies likely to provide even better profit margins than the big boys.

You can expect to hear more about these moves in OEI shortly, as we continue to deliver to you the best investments in oil and natural gas...

Earnings Scheduled For October 15, 2013

Citigroup (NYSE: C) is expected to report its Q3 earnings at $1.04 per share on revenue of $18.73 billion.

Johnson & Johnson (NYSE: JNJ) is projected to report its Q3 earnings at $1.32 per share on revenue of $17.46 billion.

Intel (NASDAQ: INTC) is expected to post its Q3 earnings at $0.53 per share on revenue of $13.47 billion.

Yahoo! (NASDAQ: YHOO) is projected to post its Q3 earnings at $0.33 per share on revenue of $1.08 billion.

The Coca-Cola Company (NYSE: KO) is estimated to report its Q3 earnings at $0.53 per share on revenue of $12.05 billion.

Domino's Pizza (NYSE: DPZ) is expected to report its Q3 earnings at $0.52 per share on revenue of $402.56 million.

Omnicom Group (NYSE: OMC) is estimated to report its Q3 earnings at $0.80 per share on revenue of $3.48 billion.

Interactive Brokers Group (NASDAQ: IBKR) is projected to post its Q3 earnings at $0.34 per share on revenue of $336.48 million.

Joe's Jeans (NASDAQ: JOEZ) is estimated to post its Q3 earnings at $0.02 per share on revenue of $33.37 million.

Linear Technology (NASDAQ: LLTC) is projected to post its Q1 earnings at $0.46 per share on revenue of $339.26 million.

Marten Transport (NASDAQ: MRTN) is estimated to post its Q3 earnings at $0.23 per share on revenue of $168.28 million.

CSX (NYSE: CSX) is expected to post its Q3 earnings at $0.43 per share on revenue of $2.95 billion.

Pinnacle Financial Partners (NASDAQ: PNFP) is estimated to post its Q3 earnings at $0.42 per share on revenue of $56.99 million.

Commerce Bancshares (NASDAQ: CBSH) is projected to report its Q3 earnings at $0.72 per share on revenue of $254.92 million.

First Republic Bank (NYSE: FRC) is estimated to report its Q3 earnings at $0.76 per share on revenue of $320.72 million.

Renasant (NASDAQ: RNST) is expected to post its Q3 earnings at $0.31 per share on revenue of $60.87 million.

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

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

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Hot Casino Stocks To Invest In 2014

Las Vegas Sands���(NYSE:LVS) stock has been on a tear in the last year and is up almost twice as much as the S&P 500 in the past 12 months. The company�� success can largely be attributed to CEO Sheldon Adelson�� vision of turning Macau — a small Chinese administrative region about 40 miles from Hong Kong — into a “mini Las Vegas.” Will Macau be the proverbial Promised Land for Las Vegas Sands shareholders, or does the company expect too much from an island that measures less than 12 square miles? Let�� use our CHEAT SHEET investing framework to decide whether Las Vegas Sands is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

C = Catalysts for the Stock�� Movement

Macau, one of two Chinese administrative regions, is displacing Las Vegas as the new global gambling mecca. Gambling revenues in the region are around $25 billion year to date and grew 20 percent in July from the previous year. Macau�� gross domestic product grew 10.8 percent last quarter, largely due to the booming gambling industry in the region. In addition, a 31-mile bridge, which connects Hong Kong and Macau, is scheduled for completion in 2015. Since most gamblers coming to Las Vegas Sands�� four Macau-based casinos are from the Hong Kong area, the company should experience even more customers once the bridge is completed. The only threat to the casino boomtown of Macau is its own government — mainland China is seeking to limit the percentage of Macau�� GDP that comes from gambling; however, it is unlikely that the government can or will want to significantly change the landscape of Macau�� economy.

Hot Casino Stocks To Invest In 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Sean Williams]

  The other knock against the sector is merely that it's cyclical and prone to downswings ��especially for the casino operators relying heavily on the currently stagnant U.S. market. MGM Grand (NYSE: MGM  ) is an example of a casino operator that's expanded into Macau but still derives the majority of its business from the United States. Unsurprisingly, it hasn't turned an annual profit since 2007 and isn't expected to until at least 2015.

• [By Matt Thalman]

  While Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) are both major players in Macau, MGM Resorts (NYSE: MGM  ) is making a big push to grow its base in the Chinese gambling mecca, while it also has a massive footprint in Las Vegas, and the other two have a much lower room count. MGM owns a good portion of the Las Vegas Strip, and as we continue to see average daily hotel room rates rise for the city and increased gaming revenue for the strip, we will see MGM greatly benefit from a recovering American tourist industry and a stronger Las Vegas.

• [By M. Joy, Hayes]

  Industry trends
  Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

• [By Matt Thalman]

  In the following video, Fool contributor Matt Thalman discusses why he believes MGM Resorts' (NYSE: MGM  ) recent move to partner with both Southwest Airlines (NYSE: LUV  ) and Hyatt Hotels (NYSE: H  ) will greatly benefit not only MGM but also its two new partners.

Hot Casino Stocks To Invest In 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Roberto Pedone]

   

  Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

   

  Monday's Volume: 1.11 million
  
  Three-Month Average Volume: 824,334
  
  Volume % Change: 73%

   

   

  From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

   

  Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

   

Top 10 Undervalued Stocks To Buy Right Now: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Hot Casino Stocks To Invest In 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Ben Levisohn]

  He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

  As for WYNN, we believe near-term estimates continue to take a back seat to capital returns and the discounting of Cotai, though we do find near term numbers to be beatable in Macau given QTD trends, most notably on the VIP side. Net-net, we find WYNN to be the most compelling longer-term story in our coverage universe and given the scope of the Cotai development and its impact on valuation, we anticipate value attribution for the project will come well in advance of the historical rule of thumb for new openings in the space, which has generally been about one year.

Hot Casino Stocks To Invest In 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Dan Caplinger]

  MGM has built a history of being the odd player out in many of the most lucrative opportunities in the gaming industry. In Macau, the company is stuck in the slower-growth area of the Asian gaming destination. In Las Vegas, the new CityCenter area in the mid-Strip has watered down MGM's opportunities and has created another potential barrier for patrons coming from the northern end of the Strip to its namesake MGM Grand property. And in New Jersey, where online gaming has boosted prospects for Caesars Entertainment (NASDAQ: CZR  ) and Boyd Gaming (NYSE: BYD  ) , MGM has no exposure.

• [By M. Joy, Hayes]

  Industry trends
  Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

• [By Travis Hoium]

  Earnings from Boyd Gaming (NYSE: BYD  ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�

• [By Roberto Pedone]

  One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.

  If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.

  Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 a 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 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.

  Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Hot Casino Stocks To Invest In 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Ben Levisohn]

  Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.

  Bloomberg

  First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

  When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

  Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

  With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

  He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

  As for WYNN, we believe near-term estimates continue to take a back seat to capital return

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.