Will Brown-Forman Fall Down Against Diageo and Constellation Brands?

Brown-Forman (NYSE: BF-A  ) (NYSE: BF-B  ) will release its quarterly report on Wednesday, and investors have generally been quite pleased with the performance of the spirits company, sending its stock to all-time record highs. But as competition from rivals Diageo (NYSE: DEO  ) and Constellation Brands (NYSE: STZ  ) becomes ever tougher, the bigger question is whether Brown-Forman can keep earnings growing even if its revenue doesn't climb as fast as its peers' sales.

Brown-Forman isn't a household name, but its Jack Daniel's and Southern Comfort brands are well-known among liquor aficionados, and it also has the Sonoma-Cutrer vineyards and the Korbel champagne brand under its umbrella. Like Diageo and Constellation Brands, Brown-Forman has done a good job of making the most of its potential over the long run even despite the interruption of the 2008 recession. But can Brown-Forman keep climbing in concert with its rivals, or will competitive pressures eventually create both winners and losers in the industry? Let's take an early look at what's been happening with Brown-Forman over the past quarter and what we're likely to see in its report.

Stats on Brown-Forman

Analyst EPS Estimate	$0.91
Change From Year-Ago EPS	13.8%
Revenue Estimate	$1.04 billion
Change From Year-Ago Revenue	2.2%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

Which way will Brown-Forman earnings move this quarter?
In recent months, analysts haven't budged on their views of Brown-Forman's earnings, keeping both short-term and long-range projections on earnings per share unchanged. The stock has done well, though, rising almost 10% since late August.

Brown-Forman's fiscal first-quarter report in August was mildly disappointing, with mild drops in operating income and earnings per share coming from muted net sales growth of just 2%. The company saw extraordinary growth in its Korbel segment as well as from super- and ultra-premium whiskey brands, with Woodford Reserve leading the way with 25% growth. Worldwide, revenue growth was relatively consistent except for Australia, which saw about a 5% drop in underlying sales.

Top Value Stocks For 2014

Brown-Forman has taken steps to try to keep up with rising demand for its products. In August, the company said it would expand its Lynchburg Jack Daniel Distillery, spending more than $100 million to boost capacity for what has become the company's most important segment. As international growth becomes an essential component of Brown-Forman's long-term strategy, having more Jack Daniel's products to send to thirsty customers in key areas like Eastern Europe and Russia could set the stage for accelerating gains in the future. A realignment of Brown-Forman's Asia-Pacific business structure in October also recognizes the importance of the region to the company's overall growth potential globally.

One concern that Brown-Forman might not need to worry about at least for now is the prospect of further consolidation in the space. For a while, it appeared that Diageo might move forward to try to buy out Brown-Forman whiskey rival Beam (NYSE: BEAM  ) . But Diageo CEO Ivan Menezes dismissed talk of a merger, saying it was unnecessary in light of Diageo's already-strong Johnnie Walker brand and other offerings. As for Constellation Brands, its recent move to pick up the Grupo Modelo U.S. beer business has likely left it needing some time before considering any further major corporate moves in the near future.

In the Brown-Forman earnings report, watch to see if the company makes further plans to bolster growth. With the threat of getting left behind by Diageo and Constellation, Brown-Forman needs to demonstrate that it will continue to play in the same league as its competitors both now and well into the future.

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5 Stocks With Big Insider Buying

DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

>>5 'Dogs of the Dow' to Buy in 2014

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying. 

At the end of the day, its large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look at some stocks where insiders have been doing some big buying in per SEC filings.

Sigma Designs

One technology player that insiders are loading up on here is Sigma Designs (SIGM), which provides integrated chipset solutions that serve as the foundation for consumer products including televisions, set-top boxes and video networking products. Insiders are buying this stock into decent weakness, since shares are down by 13.9% in the last three months.

Sigma Designs has a market cap of $165 million and an enterprise value of $98 million. This stock trades at a premium valuation, with a forward price-to-earnings of 29.88. Its estimated growth rate for this year is 114.2%, and for next year it's pegged at -5.9%. This is a cash-rich company, since the total cash position on its balance sheet is $61.74 million and its total debt is zero.

The CEO just bought 454,546 shares, or $2.5 million worth of stock, at $5.50 per share.

From a technical perspective, SIGM is currently trending below both its 50-day and 200-day moving averages, which is a bearish sign. This stock recently gapped down from $5.50 to below $4.40 a share with heavy downside volume. Following that move, shares of SIGM went on to hit a new low of $4.04 a share. That said, this stock has started to rebound off that $4.04 low and it's now moving within range of triggering a near-term breakout trade.

If you're bullish on SIGM, then I would look for long-biased trades as long as this stock is trending above some near-term support at $4.48 or above its recent low of $4.04, and then once breaks out above some near-term overhead resistance at $4.85 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 299,402 shares. If that breakout hits soon, then SIGM will set up to re-fill some of its previous gap down zone that started at $5.500 a share. This stock could even tag $5.75 to $6.20 a share if that gap gets filled with strong upside volume flows.

Opko Health

Another healthcare player that insiders are jumping into here is Opko Health (OPK), which is a multi-national pharmaceutical and diagnostics company. Insiders are buying this stock into big time strength, since shares are up 76% in 2013.

Opko Health has a market cap of $3.4 billion and an enterprise value of $3.5 billion. This stock trades at a premium valuation, with a price-to-sales of 38.01 and a price-to-book at 4.01. Its estimated growth rate for this year is -218.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $180.84 million and its total debt is $226.74 million.

The CEO just bought 19,400 shares, or about $171,000 worth of stock, at $8.79 to $8.90 per share. The same CEO also just bought 13,000 shares, or about $117,000 worth of stock, at $8.99 to $9.04 per share.

From a technical perspective, OPK is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been downtrending over the last few weeks, with shares falling from its high of $11.64 to its recent low of $8.17 a share. During that downtrend, shares of OPK have been making mostly lower highs and lower lows, which is bearish technical price action.

If you're in the bull camp on OPK, then I would look for long-biased trades as long as this stock is trending above its 200-day at $8.31 or above more key support at $8.17, and then once it breaks out above some near-term overhead resistance at $9.20 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 5.53 million shares. If that breakout hits soon, then OPK will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $10.06 a share to $11.64 a share.

Tenet Healthcare

One healthcare player that insiders are snapping up a huge amount of stock in here is Tenet Healthcare (THC), which mainly operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Insiders are buying this stock into solid strength, since shares have spiked higher by 26% in 2013.

Tenet Healthcare has a market cap of $4.07 billion and an enterprise value of $9.8 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 15.19. Its estimated growth rate for this year is 2.3%, and for next year it's pegged at 52.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $82 million and its total debt is a whopping $5.82 billion.

A beneficial owner just bought 248,910 shares, or about $9.9 million worth of stock, at $39.79 per share. This same beneficial owner also just bought 644,582 shares, or about $25.74 million worth of stock, at $39.78 per share.

From a technical perspective, THC is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last two months, with shares moving lower from its high of $48.48 to its recent low of $38.71 a share. During that downtrend, shares of THC have been making mostly lower highs and lower lows, which is bearish technical price action.

If you're bullish on THC, then I would look for long-biased trades as long as this stock is trending above its recent low of $38.71, and then once it breaks out above some near-term overhead resistance $41.32 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 volume of 1.91 million shares. If that breakout hits soon, then THC will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $42.99 to its 200-day at $43.50 a share. Any high-volume move above those levels will then give THC a chance to tag its next major overhead resistance levels at $44.17 to $46 a share.

Aircastle

One commercial leasing player that insiders are active in here is Aircastle (AYR), which acquires, leases and sells high-utility commercial jet aircraft to passenger and cargo airlines throughout the world. Insiders are buying this stock into notable strength, since shares are up sharply by 52% in 2013.

Aircastle has a market cap of $1.5 billion and an enterprise value of $4.8 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 124.68. This is not a cash-rich company, since the total cash position on its balance sheet is $238.15 million and its total debt is $3.48 billion. This stock currently sports a dividend yield of 4.2%.

A director just bought 30,000 shares, or about $563,000 worth of stock, at $18.79 per share.

From a technical perspective, AYR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $15.84 to its recent high of $19.50 a share. During that uptrend, shares of AYR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AYR within range of triggering a big breakout trade.

If you're bullish on AYR, then I would look for long-biased trades as long as this stock is trending above its 50-day at $18.67 or above more support near $18, and then once it breaks out above its 52-week high at $19.50 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 volume of 430,032 shares. If that breakout hits soon, then AYR will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30 a share.

Atlantic Coast Financial

One final name with some big insider buying is Atlantic Coast Financial (ACFC), which operates as the bank holding company for Atlantic Coast Bank that provides various banking services to individual and business customers primarily in northeastern Florida and southeastern Georgia. Insiders are buying this stock into monster strength, since shares are up 101% in 2013.

Atlantic Coast Financial has a market cap of $10.31 million and an enterprise value of $130.76 million. This stock trades at a cheap valuation, with a price-to-sales of 0.53 and a price-to-book of 0.35. This is not a cash-rich company, since the total cash position on its balance sheet is $82.58 million and its total debt is $202.80 million.

A director just bought 1,289,077 shares, or about $4.83 million worth of stock, at $3.75 per share.

From a technical perspective, ACFC is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong over the last month, with shares moving higher from its low of $3 to its recent high of $4.19 a share. During that uptrend, shares of ACFC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ACFC within range of triggering a big breakout trade.

If you're bullish on ACFC, then look for long-biased trades as long as this stock is trending above its 50-day at $3.79 or above more support at $3.40, and then once it breaks out above some near-term overhead resistance levels at $4.19 to its 200-day at $4.42 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 44,167 shares. If that breakout triggers soon, then ACFC will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $5.81 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr. 

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS: >>5 Stocks Poised for Breakouts >>5 Stocks With Big Insider Buying >>5 Dividend Stocks Ready to Pay You More in 2014

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Safety in Numbers With This Pipeline Play

Source: Wikimedia Commons.

They say two (or more) is better than one, and that seems to be the case for these companies that are working together to accomplish a common goal.

A foursome 
Enterprise Products Partners (NYSE: EPD  ) , Anadarko Petroleum (NYSE: APC  ) , and DCP Midstream, a joint venture between Spectra Energy (NYSE: SE  )  and Phillips 66 (NYSE: PSX  ) , are about to complete the Front Range pipeline, which will run from the DJ Basin down to the Texas Express pipeline. It will be able to carry 150,000 bpd of natural gas liquid (NGL) with the possibility to increase that to 230,000 bpd if production keeps increasing. Front Range is expected to come online in the forth quarter of 2013. 

This pipeline venture is a great idea for several reasons. Anadarko needs to get its NGL to a buyer, so it needs to be able to ship its NGL to refineries on the coast. Enterprise Products Partners is seeking growth by building new pipelines, so it's happy to invest with an E&P player to help Anadarko out and profit at the same time. For DCP, Spectra needs NGL to move/store and Phillips 66 needs NGL to process into a final project.

All four players benefit from this project and stand to profit from the creation of the pipeline. There is no reason why it always has to be a dog-eat-dog world; companies are fully capable of working together to achieve a mutually beneficial goal. 

Add in one more
The purpose of the Front Range pipeline is to connect the DJ Basin to Texas, but it only goes part of the way. To get the NGL all the way there, Enterprise Products Partners, Anadarko, Phillips 66, Spectra (through DCP), and Enbridge Energy Partners (NYSE: EEP  ) are working together to build the Texas Express pipeline.

Texas Express will carry NGL all the way down to Texas to be processed and is expected to come online in the forth quarter of 2013, in conjunction with the Front Range pipeline. The Texas Express will have the capacity to move 280,000 bpd of NGL, with the possibility to increase that to 400,000 bpd as market conditions dictate.

All five of these players want the same thing, to get NGL to Texas. They all stand to see significant increases in their cash flow as a result. Whether it's the fees to move the NGL, the ability to sell NGL for the highest price possible, or having more NGL to process into a final product, all of these companies rely on each other.  

Going solo
Enterprise Products Partners is also building out pipeline capacity by itself. Rising production from the Rocky Mountain region means more pipeline capacity needs to be brought online to move the additional output.

Enterprise Products Partners is going to increase the capacity of its NGL Mid-America Pipeline from 275,000 bpd to approximately 350,000 bpd, and the increased capacity will come online in the second quarter of 2014. The pipeline transports NGL down to Texas to be refined. The additional capacity will enable Enterprise Products Partners to capitalize on multiple NGL plays and will increase its cash flow as well. That will allow it to continue to increase its capacity around America and boost its 7% distribution.

Final thoughts
America is a great country, built on the back of competition. Sometimes, though, companies can work together to boost their bottom lines and increase cash flows. This is the case for these energy companies, and the several joint ventures that they are invested in will increase value for shareholders.

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We Had a Good First 6 Weeks of 2012 – What’s Next?

I made the case last month, as I had in October, November and December 2011, that the risk of a major correction, predicted by so many, was completely off base. I noted that fears of Europe driving the world into another Great Recession were unfounded, that Greece, with the same GDP as Michigan, was unlikely to be the trigger for said event, and that U.S. private employers were lean and mean and ready to begin hiring once again if only we could keep our national government from providing so much incentive to remain unemployed and on the dole as to prevent workers from even seeking work. Despite the worst intentions of those who would create armies of expensive government employees, middlemen and administrators to give out benefits and entitlements, in fact the American private sector has become lean and mean and ready to hire again.

Fortunately for those of us willing to climb the proverbial and very real Wall of Worry, many (most?) investors continue to cling to their belief that this rally is a head-fake, that the country is headed to hell in a hand basket, and that "this time it's worse than ever before." I hear from them all the time when they tell me what an idiot I am after reading my articles on Seeking Alpha, ForexPro, GuruFocus or elsewhere.

As I wrote to a brilliant investor friend who was concerned that the institutional manipulation by Wall Street makes this time different, a viewpoint I didn't touch on in last month's issue: "It's true that HFT, program trading, dark pools, et al are new ways Wall Street has come up with to avoid transparency and middle the very people they claim to be on the same side as. But thus has it always been. Back in the 1920s it was bald-faced manipulation via "trust" companies, in the 1960s it was the crooked specialist system -- put in a trailing stop 2 points away and the stock would magically decline 2 points for one trade then magically recover by 1.98 with the next trade. We should always expect double-dealing from Wall Street.

"I don't ! know, but my guess is that the average holding period for the 76% of trading today dominated by institutions may be closer to 5 seconds, factoring in the millions daily that last a millisecond as well as the pension funds that hold for 6 months.

"But I really don't care. I don't have to compete with them, and I don'tcompete with them. While they are making millions of trades to make a sure penny each trade, I am buying quality under-loved companies too thinly traded, foreign or boring for them to bother with. My holding period may be 6 months, a year, or much longer. They can keep their approach; there is a whole universe of companies it isn't worth their while to manipulate or in which they might get caught on the wrong side and lose all their other ill-gotten gains.

"I'll still fight to get appropriate regulation of these yahoos, but we basically work different sides of the street so, while a flash crash will affect me for a couple of days, I can use Wall Street's foolishness and venality to my own advantage. You can try to fight 'em using their tools, you can join them, or you can ignore them. As much as possible, I choose the last course."

Our current portfolios reflect our optimism. But nothing goes straight up or straight down. Every day the market goes up, the more overloaded the boat is becoming on the "greed" side of the fear/greed equation: a gnawing sense on the part of many investors that they are missing something. And they have, of course. January 2012 enjoyed the largest January gain in history for both the Dow and the S&P 500. I believe people need time to digest these gains and that, for many, the temptation to grab whatever profits they can before what they see as the inevitable next slide down, means we will have a pullback.

Unlike many commentators, I see that "slide" as relatively slight and well-contained. Still, we have been placing ever-tighter trailing stops all during February. It doesn't matter that I see this as an excellent year; it matters that we ge! t ahead o! f the crowd our clients and avoid the falling knives investor panic creates. The catalyst for the decline could be something real, like soaring U.S. unemployment or terrible corporate earnings, or it could be a chimera like Greece defaulting or fear of Europe dragging us all into the morass. (Re the latter: the highest estimate I've ever seen show that Europe represents no more than 10% of the earnings of S&P 500 companies. We are competitors of the big Euro firms rather than suppliers or recipients of their sub-contracting. In addition, I read a great quote from Lazard Capital Markets' head of Product Strategy, Art Hogan, who noted, "Portugal is smaller than Greece. If Italy's economy was a dinner meal, then Greece and Portugal's combined would not be enough to leave the tip."

None of this means that one can simply buy and hold yet! "There is many a slip twixt cup and lip." Though I believe the year will end well, I expect thrills and spills along the way. Those facile fools who say things like, "As goes January, so goes the year," are repeating trite piffle that will doom them to lose even as we exit the year with a profit.

There are no short cuts to investing success. Yet every year people too lazy to do the hard analysis required to beat the market try to take short cuts like the "January Barometer." An up first five days of January means the year will be up? Dumb. The market rises roughly 70% of the time anyway (albeit not in Secular Bear years!) If you just said, "The market will rise every year," you'd be right about 7 out of 10 times (which is why perennial optimists get all the forecasting jobs on Wall Street). So to say, "The market will rise if January — especially the first five days of January — rises," is stating the obvious — but for the wrong reasons.

Since there is a January effect in most years, however, and since the market goes up most years, there is a strong correlation. But is it causative or merely correlative? I'd argue the latter. The fact that the first! five day! s of January are up, or even the whole month of January is up, doesn't mean the market is destined to outperform. The fact that the market is up most years, anyway, simply gives credence to throwing bones in a circle, reading tea leaves, or using astrology or the January Barometer to "predict" an up year. I think tea leaves, old bones, and the January Barometer are harmless distractions unless you take them seriously with serious money.

What you might want to note, instead, in support of an up market this year, is that there is a latent strain of optimism that runs through the American national consciousness. We believe in vast frontiers and the power of high technology, cosmetic surgery, and paying taxes up to the point of fairness to propel us ever forward. For that reason, we simply cannot abide this many down years in a row. American optimism and, more importantly, American entrepreneurialism, spurred by a complete revamping of the idiotic way we invite immigrants to our country, will be a better barometer than the date on the calendar every time.

Putting aside the January Barometer as unworthy of serious consideration as a predictive tool doesn't mean we should ignore the January effect. This is typically due to large asset inflows and/or year-end repositioning of portfolios from institutional investors. Big mutual funds and others hold what they have at year-end, hedging so they can hang on to whatever gains they have and get their bonuses for beating the benchmarks by .00001%. The New Year gives them a reason to get frisky again — after all, they'll have 50 weeks or so to undo any damage they do by taking big risks on small companies early in the year. (And those small companies just might provide good gains to create a cushion for mediocre performance the rest of the year.)

Then there's the self-fulfilling prophecy angle: Once the January effect became well known, investors who didn't want to miss out put cash into the market, thus confirming the hypothesis that the market ri! ses in Ja! nuary. There could even be an element of New Year's resolutions at work, as people resolve to save and invest more this year. And people often do get cost-of-living increases, raises, bonuses and retirement plan contributions at this time of year, all of which mean money that needs to be saved or invested.

I'm not one to look a gift horse in the mouth. If someone wants to give us a 10%-plus gain in six weeks, we'll take it. But we'll now tighten up our trailing stops so we still retain 8-9% if I'm correct and the market takes a breather here. There will always be other opportunities for those of us who don't choose to follow the market up and then right back down. I don't expect a correction to last more than a month or so, but I think it will be less than enjoyable for the group that wants to buy and hold, and I'll wager will only reinforce the stubborn view of those who believe we are doomed to enter a Great Depression. The former will give back a chunk of their profits, the latter will stay on the sidelines until the news is all rosy again. We think there's lots of money to be made between now and then! Place trailing stops on your stocks and see future articles for what we will be buying.

Why the Street Should Love Discovery Communications's Earnings

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

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

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

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

Over the past 12 months, Discovery Communications generated $1,073.0 million cash while it booked net income of $960.0 million. That means it turned 21.9% of its revenue into FCF. That sounds pretty impressive.

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

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

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

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

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

With 34.2% of operating cash flow coming from questionable sources, Discovery Communications investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 14.1% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 9.1% of cash from operations.

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

Internet software and mass media are being consumed in radically different ways, on new and increasingly mobile devices. Is Discovery Communications on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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2 Biotech Stocks Under $10 to Watch

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

>>5 Stocks Set to Soar on Bullish Earnings

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

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

>>5 Stocks Ready to Break Out This Month

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

Oncothyreon

Oncothyreon (ONTY) is a clinical-stage biopharmaceutical company that develops and markets synthetic vaccines and small molecules that treat the lives and outcomes of cancer patients. This stock closed up 1.6% to $1.89 in Tuesday's trading session.

Tuesday's Range: $1.84-$1.91

52-Week Range: $1.55-$5.16

Tuesday's Volume: 285,000

Three-Month Average Volume: 804,652

From a technical perspective, ONTY jumped modestly higher here back above its 50-day moving average of $1.87 with lighter-than-average volume. This stock recently formed a triple bottom chart pattern at $1.78, $1.79 and $1.75. Following that bottom, shares of ONTY have started to spike higher and push within range of triggering a near-term breakout trade. That trade will hit if ONTY manages to take out some near-term overhead resistance levels at $1.92 to $1.99 and then $2.16 with high volume.

Traders should now look for long-biased trades in ONTY as long as it's trending above some key near-term support at $1.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 804,652 shares. If that breakout hits soon, then ONTY will set up to re-test or possibly take out its next major overhead resistance levels at $2.43 to $2.70, or even $2.81. Any high-volume move above $2.81 will then give ONTY a chance to re-fill some of its previous gap down zone from late 2012 that started near $5.

Galena Biopharma

Galena Biopharma (GALE) is a biotechnology company focused on discovering, developing and commercializing innovative therapies addressing major unmet medical needs using targeted biotherapeutics. This stock closed up 4.8% to $2.36 in Tuesday's trading session.

Tuesday's Range: $2.23-$2.39

52-Week Range: $1.23-$3.00

Thursday's Volume: 3.76 million

Three-Month Average Volume: 2.56 million

From a technical perspective, GALE ripped higher here right above its 50-day moving average of $2.18 with above-average volume. This move pushed shares of GALE into breakout territory, since the stock took out some near-term overhead resistance at $2.30. Market players should now look for a continuation move higher in the short-term if GALE can take out some key overhead resistance levels.

Traders should now look for long-biased trades in GALE as long as it's trending above its 50-day at $2.18 or its 200-day at $2.13 and then once it sustains a move or close above Tuesday's high at $2.39 to some more resistance at $2.58 with volume that hits near or above 2.56 million shares. If we get that move soon, then GALE will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $3 to $3.54.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Stocks Spiking on Unusual Volume

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>>5 Stocks Under $10 Set to Soar

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

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

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

Is it time to 'friend' Facebook?

We hated it when it IPO'd at $38 a year ago, but a year later trading near $24, we're going to friend Facebook (FB), and have added it to our Recommended List.

After a good quarter, Facebook has been under pressure due to concerns over user engagement, especially among teens and 20 somethings.

Despite chatter about Facebook losing it's popularity, statistics provided by the company and third-party data providers show that Facebook engagement remains high and is growing in many markets.

ComScore published that 23% of all time spent on Apps in the U.S. is on Facebook, and another 3% on Instagram (owned by Facebook), which equals 25%+ market share. Further, mobile users spend 80% more time on Facebook via mobile than the desktop.

Meanwhile, on the advertising front, from surveys we've gotten our hands on, most will admit that Facebook's platform is not perfect, but it is getting a lot better and they generally plan to direct more of their ad dollars towards the platform.

More importantly, the company has a lot of monetization tools in its tool belt, something that wasn't apparent when the stock IPO'd a year ago.

Since its IPO, new monetization efforts include newsfeed ads (ads directly intergrated into the newsfeed); ad exchange (real-time, bid-based system); custom audiences (which allows marketers to "merge" their customer/prospect databases with Facebook's database); special offers; app downloads; and partner categories. That's a lot of innovation in a year's time.

From a valuation perspective, the company is trading at an EV/EBITDA multiple of just over 11x based on 2014 estimates, which is cheaper than its Internet content peers, despite growing revenue at a faster clip.

Thus, we think the recent sell-off represents a good opportunity to buy a stock trading at below peer multiple that has a lot of growth levers to pull. We rate the stock a "Buy" with a $32 target. It will have a "high" risk ranking.

They're Planning the First Legal "Bank Robbery" in U.S. History

So-called "bail-ins," which give banks the right to dip into your savings to pay for their lousy financial decisions, have been on the table for years, ever since Cyprus tested the idea.

But they're moving beyond the "testing phase" now.

The latest clue came from a seemingly benign banking conference on December 2, when one man revealed some frightening central government intentions.

And anyone taking careful notes understands the consequences.

They're huge.

You see, the most direct impact will be felt by the biggest account holders. But the indirect impact will hit everyone.

401(k)s... IRAs... Individual brokerage accounts...

The market will not like the newfound acceptance for bail-ins. And it won't get any warning - neither will we. Not from the mainstream financial outlets, anyway.

They're not even covering it.

First, here's the frightening - and all-too-real - scenario....

Get Ready for Too Big To Fail 2.0

When the 2008-2009 financial crisis hit, it was unprecedented in scale and scope. Governments and central banks worldwide acted in concert to save "systemically important" banks through bailouts using trillions in taxpayer money.

Then came Cyprus, and the formula changed.

The fix in that case was a trial balloon, and a successful one at that, and I'll describe it below.

Again just recently, we had the latest evidence this "new approach" is going mainstream, and I can't believe it's not being talked about.

It's already gathering steam, so get ready now...

You're Not Getting the Full Story

Back in June, under the Irish Presidency, European finance ministers met to hash out banking reform. They agreed on the bank recovery and resolution proposal (BRR) and laid out a framework for a Single Resolution Mechanism.

They're aiming to create a central agency that will have the ability to rescue ailing banks without using taxpayer money... in theory. The idea is for the European Union to integrate its banking system to the point where one overarching authority can act as a watchdog and resolve any problems across the entire union.

Hot Penny Companies To Own In Right Now

"Resolution tools" have been proposed in order to deal with future banking crises. These will include logical actions such as the sale of businesses, bridge banks, and asset separation tools. You know, the normal ways of dealing with a distressed business.

That would be benign, if it stopped there...

No One Reported the "December Slip"

On December 10, European finance ministers held marathon talks. Their goal was to reach an agreement by year's end, so measures can be enacted before the current European Parliament's term expires in May.

But some crucial elements of the agreement were left out of the story presented by the Associated Press.

It said the ministers have made headway towards a Europe-wide bailout fund. Whether that fund is to be built up through assessing fees on the banks and member states, and how much control over contributions each country would have, has yet to be finalized.

Here's what wasn't reported...

On December 2, Michael Noonan, Ireland's Minister for Finance, dropped a bombshell at the Future of Banking in Europe Conference. Yet you'd be hard pressed to find any mention of it in mainstream media.

He discussed the need for a "toolkit" aimed at dealing with failing banks, while preserving essential bank operations and minimizing taxpayers' exposure to losses.

The shocker was when a smirking Noonan said "I think the new key phrase is 'bail-in is going to replace bail-out,' with all the implications that that carries."

And it's not just a threat to the European Union...

Coming Soon to the United States

Taxpayers in Europe and the rest of the developed world need to realize that Cyprus-style bail-ins are now becoming the new norm.

Understand this: the Cyprus bail-in saw all depositors in the affected banks, whose account balance exceeded the 100,000-euro insured maximum, take at least a 47.5% haircut on their deposits. This was seen as preferable over a European government bail-out, which would have been entirely taxpayer funded.

Shortly after the Cyprus crisis solution was presented in March, Dutch Minister of Finance Jeroen Dijsselbloem said in interviews that Cyprus would be the new template for future bailouts.

On that news, European markets began to tumble and the euro dropped against the dollar, as the cost to insure European banks against default rose. Dijsselbloem immediately backtracked, saying Cyprus was in fact a special case.

But it was too late. The cat was out of the bag.

Based on that and Noonan's recent speech, it's now clear the Cyprus bail-in model is in fact the new formula.

But here's the thing:

We have a new "formula," too...

Become Your Own Central Bank

Remember, this can happen in America.

Some observers suggest the 2010 Dodd-Frank Act codifies the use of bail-ins in the United States.

But America is far from alone. The E.U., United Kingdom, Canada, Australia, and New Zealand all have their own versions of bail-in laws too.

Let's not kid ourselves. Banks will again face serious crises and suffer large losses. But the next time, your deposit will no longer be the bank's liability. Instead, it's already being considered the bank's asset, one available to help recapitalize the bank and restore its equity, leaving you holding the bag.

These problems arise, by the way, thanks to our wonderful system of fractional reserve banking. But that's a whole other article.

Meanwhile, you need to know how to protect yourself against a future bail-in.

Back in early November I told you your retirement account is fair game, and that you should protect yourself by becoming your own central bank. I also suggested there were several things you could do to protect your assets, like owning and investing in hard assets like gold, silver, energy, and real estate; by holding plenty of cash; and by holding some assets internationally.

The thing is, all of these are helpful strategies that can also help protect you against a future bail-in.

Like it or not, bail-ins will be a major part of future bank recapitalizations, meaning your deposits could be confiscated.

Cyprus was just the beginning. It's time to prepare.

Top Gold Companies For 2014

Ex-Goldman Sachs vice president gets sentenced to nine months.

NEW YORK (CNNMoney) A former Goldman Sachs vice president and trader, was on Friday sentenced to nine months in prison by a federal judge in Manhattan for trying to cover up an $8.3 billion trade.

Matthew Taylor, age 34, pleaded guilty to wire fraud in April. As a result, he has also been ordered to pay $118 million in restitution, according to the U.S. attorney of the Southern District of New York.

In 2007 Taylor lost a significant amount of money in positions he held on Goldman Sach's (GS, Fortune 500) Capital Structure Franchise Trading desk. At the time, supervisors warned Taylor about trading risk limits and instructed him to reduce his overall exposure.

Top Gold Companies For 2014: Northgate Minerals Corporation(NXG)

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

Top Gold Companies For 2014: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:

• [By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.

  Why Have Gurus Lost Faith in Golden Star?

  Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerated extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company�� excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.

  In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.

  Overpriced Acquisitions and Geopolitical Risk

  The purchase

Hot Companies To Buy For 2014: Claude Resources Inc.(CGR)

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

Top Gold Companies For 2014: CME Group Inc.(CME)

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

Advisors' Opinion:

• [By Dan Caplinger]

  Among exchanges, the action is beyond the stock market. With the rise in trading of futures, options, and other derivative investments, NYSE Euronext's ownership of the NYSE Liffe exchange in London was a key element of ICE's interest. CME Group (NASDAQ: CME  ) and CBOE Holdings (NASDAQ: CBOE  ) have worked hard to preserve their respective strength in futures and options, and rising market turbulence has made many of their products look a lot more enticing. Given that derivatives can help hedge market risk and reduce overall exposure, all of the exchange companies have an opportunity to bolster their presence in the derivatives market with innovative products that meet the new needs investors have in a more turbulent financial environment.

• [By Holly LaFon]

  We re-established an investment in CME Group, Inc. (CME) during the period. CME is the largest and most diversified derivatives marketplace in the U.S. Its exchanges support trading across a variety of asset classes, including interest rates, equity indexes, energy, agricultural commodities, foreign exchange and metals. We believe CME has the opportunity to significantly accelerate its growth rates due to the eventual normalization of interest rates and the attendant interest rate volatility. CME's interest rate trading volumes (ADV) have been depressed as a result of the Fed's zero interest rate policy and low interest rate volatility. For example, interest rate ADV was 4.8 million in 2012compared to 7.1 million in 2007, before the financial crisis. However, given the Fed's recent policy statements (discussed above), market participants are starting to anticipate an end to quantitative easing (QE). On May 30, CME experienced record volume for interest rate derivatives with ADV of 19.4 million. With the globalization of CME's business, a host of new products, and the regulatory requirement for interest rate swaps to be cleared on an exchange, we believe CME's interest rate volumes can surpass their prior peak, significantly driving earnings growth for the company.

• [By Matthew Leising]

  The study, commissioned by CME Group Inc. (CME), the Futures Industry Association, the Institute for Financial Markets and the National Futures Association, surveyed private insurance companies to gauge their interest in providing protection to customers if their futures broker goes bankrupt, according to a statement released today.

• [By Mark Thompson]

  The Chicago Mercantile Exchange (CME), which operates the world's biggest derivatives market, is asking investors to stump up more cash to trade in financial products that provide protection against rising interest rates.

Top Gold Companies For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top Gold Companies For 2014: Thompson Creek Metals Company Inc.(TC)

Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.

Advisors' Opinion:

• [By Selena Maranjian]

  The biggest new holdings are Chesapeake Energy�puts, and shares of Discovery Communications. Other new holdings of interest include Halcon Resources (NYSE: HK  ) , and Thompson Creek Metals (NYSE: TC  ) . Oil and gas company Halcon, operating in the promising Bakken region, as well as Texas's productive Eagle Ford shale region, among others, is expected to grow by 30% annually over the coming years. It recently reported 2012 net daily production 128% higher than year-ago levels, and proven reserves up 417%. Halcon was recently one of my colleague Joel South's top two energy holdings, and analysts at Stifel recently upped its rating�from Hold to Buy.

• [By Selena Maranjian]

  Beaten-down companies that you think are likely to recover strongly are also good candidates. Molybdenum miner Thompson Creek Metals (NYSE: TC  ) , for example, sports average annual losses of 35% over the past five years, and carries substantial debt, but molybdenum's long-term outlook is promising, with price increases likely, and the company has a promising gold and copper mine on track to start producing by the end of the year. Freeport-McMoRan Copper & Gold (NYSE: FCX  ) is another major molybdenum player, with considerable operations in other metals, as well -- along with new investments in oil and gas production.

• [By Jon C. Ogg]

  Thompson Creek Metals Co. Inc. (NYSE: TC) was at 54% discount to its book value of $8.30 per share at the time, and the stock price of $3.90 is up from $3.03 Deutsche Bank’s team nailed upside of more than 28% here. Its price target was $4 at the time versus a consensus target of $4.50 at the time. The 52-week range here is $2.42 to $4.55, but we would point out that the consensus price target is $3.93.

• [By Jim Jubak]

  The stock market liked what it heard Wednesday, August 7, from Thompson Creek Metals (TC) after the close in New York. Second quarter adjusted net earnings of 8 cents a share crushed the Wall Street consensus of a penny a share. Revenue climbed 3.8% to $117.8 million versus expectations for revenue of just $1.3.8 million. The company also said that its new Mt. Milligan mine is on schedule with a start-up for the concentrator expected this month, with first ore-feed by mid-August. The company said it expects commercial production to begin in the fourth quarter of 2013, with production ramping to full capacity over the next twelve months.

Top Gold Companies For 2014: Australian Dollar(AU)

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

Advisors' Opinion:

• [By Holly LaFon]

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

• [By Dan Caplinger]

  One way Yamana has kept its competitive cost advantage is through extensive sales of base-metal byproducts like copper and zinc, as both it and fellow low-cost rival Goldcorp (NYSE: GG  ) benefit from utilizing those secondary metals to offset the cost of their gold production. Peers Gold Fields (NYSE: GFI  ) and AngloGold Ashanti (NYSE: AU  ) , on the other hand, face much higher costs in part because of their exposure to South Africa and its unstable labor market.

• [By Dan Caplinger]

  But even bigger damage came from gold-mining stocks. AngloGold Ashanti (NYSE: AU  ) has lost almost 60% of its value in 2013, with the drop in gold prices having an outsized impact on the gold miner's prospects. AngloGold has also suffered from investors moving away from emerging markets like South Africa in favor of U.S. stocks, as fears of the Federal Reserve's exit from its quantitative easing program have reduced overall risk tolerance among many investors.

Top Gold Companies For 2014: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Deals for Last-Minute Holiday Shoppers

The Saturday before Christmas, sometimes referred to as Super Saturday, is expected to be one of the busiest shopping days of the holiday season -- second only to Black Friday, according to ShopperTrak, which analyzes retail traffic. However, if shoppers are looking to score last-minute deals on all of their remaining holiday purchases, they might need to adjust their expectations. While bargains can be found right up through Christmas Eve, most won't be on par with Black Friday prices.

SEE ALSO: 15 Gifts That Keep on Giving

"I would not expect any significant discounts as the last weekend before Christmas usually commands enough traffic on its own -- stores don't need to provide any additional incentive to shop," says Michael Brim, founder of BFAds.net, which publishes deals and leaked Black Friday ads.

5 Best Canadian Stocks To Own Right Now

Many retailers had markdowns of 30% or more and free shipping for online purchases on Free Shipping Day, December 18, and some extended their sales and special offers through December 19. So if you act quickly, you can score savings by shopping online at retailers' sites that are guaranteeing delivery by Christmas Eve.

But if you wait until the weekend (or later) to do your shopping in stores, here's what you can expect to find on sale:

Home goods. Climate-control appliances such as air purifiers, heaters and humidifiers typically are marked down the weekend before Christmas, according to dealnews.com. You'll also see bargains on small appliances and kitchen gadgets, but the discounts will likely be just 20% to 30%. However, you might come across some markdowns as high as 60%, according to dealnews.com.

Pre-wrapped gifts. Gift baskets, already stuffed stockings and similar items will be marked down by as much as 90% at department stores such as JCPenney, Macy's and Sears, according to Offers.com. The deepest discounts will be on Christmas Eve, when stores are eager to clear out this sort of holiday merchandise.

Toys. If you haven't bought gifts for your kids yet, you'll likely find lots of sales on toys in stores on Super Saturday. For example, Toys "R" Us will be open 87 consecutive hours beginning 6 a.m. December 21 and will discount several items and have lots of buy-one-get-one-free deals. According to dealnews.com, Amazon also offers deep discounts on toys the weekend before Christmas -- but you'll need to opt for expedited shipping to get them in time.

Video games. With the release of the Xbox One and PlayStation 4, Xbox 360 and PlayStation 3 games should be deeply discounted. So if you didn't get your kids one of the newest gaming systems for Christmas, you can save a lot by buying games for older-model systems.

Apparel. If you have people on your gift list -- such as teens -- who want clothing or outerwear for Christmas, you'll be better off giving them gift cards they can use to buy deeply discounted winter apparel during after-Christmas sales. There also are several other items that you should wait until after Christmas to buy because they will go on sale. See 12 Things Not to Buy During the Holidays.

Finally, in your rush to finish your holiday shopping, make sure you don't purchase gifts that are likely to be returned. You don't want to waste your time and money buying things others won't like. If you need ideas and are short on cash, see A Gift-Giving Guide for the Truly Broke.

Oil futures edge upward on supply data

LOS ANGELES (MarketWatch) — Oil futures moved higher in electronic trade Wednesday, supported by a drop in weekly U.S. crude inventories, though the moves were modest ahead of the Federal Reserve policy decision due out later in the day.

Benchmark U.S. crude oil for January (CLF4)  rose 18 cents, or 0.2%, to $97.40 a barrel, paring a 26-cent loss Tuesday on the New York Mercantile Exchange.

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Best Biotech Companies For 2014

The advance for Nymex crude followed American Petroleum Institute data released after the close of regular trade showing U.S. oil stocks fell by 2.5 million barrels in the week ended Dec. 13, according to sources.

While a Platts survey of analysts had tipped a 4-million-barrel drop, Citi Futures energy strategist Timothy Evans said the result was roughly in line with consensus, "although there remains some risk that the more definitive [Energy Information Administration] data due out at 10:30 a.m. Eastern Standard Time on Wednesday will tell a different story."

Following the EIA data, the markets were due to receive the last Federal Reserve policy decision of the year.

Most market participants expect the Fed will hold off from announcing its long-awaited tapering of monetary stimulus, though the language of the policy statement will get close scrutiny and will likely move markets across many asset classes.

Meanwhile, Brent crude for February delivery (UK:LCOG4)  saw a more modest rise Wednesday, edging 6 cents higher for a 0.1% rise to $108.50 a barrel, taking a nibble from its 97-cent loss on Tuesday.

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"The larger issue is that Europe remains relatively well supplied with crude oil, with North Sea output running at the highest level in month, and the recent drop in U.S. crude imports leaving more barrels available for the rest of the global market," Citi's Evans wrote about Brent's move on Tuesday.

"The decline in OPEC [Organization of the Petroleum Exporting Countries] crude-oil production over the past few months may help limit the surplus, but it still looks as though supply will outpace demand in the months ahead," he said.

In other energy-futures trade Wednesday, January gasoline (RBF4)  held steady at $2.65 a gallon, and January heating oil (HOF4)  inched up less than a cent to $2.97 a gallon

January natural gas (NGF14)   improved by almost 2 cents, or 0.4%, to $4.30 per million British thermal units, adding to its 1-cent rise the previous day.

More MarketWatch news

Fed never grabs punch bowl in December, analyst points out

Line between grief and greed on Wall Street: Weidner

Amazon - A Not-So-Merry Christmas

Christmas is one of the peak seasons for shopping where people shop their heart out. Most of the companies try and give the best possible offers to lure more and more customers towards them, especially the online websites. The internet mammoth Amazon (AMZN) will need to rethink its strategies for Christmas this year, as the employees in Germany are going in for a strike as depicted by the Verdi Union.

The Verdi union said workers would strike at Amazon's logistic centers in Bad Hersfeld and Leipzig and also in Graben. Next, they will target Seattle –Amazon's headquarters, on Monday. On Tuesday, the strike continues in Werne. They are trying to convince the top management to match the payment terms which they believe is biased and not justified in comparison with the other centers. The union believes that the distinction of payment based on the fact that these workers are Logistic workers and qualify for a lower term of payment is not justified.

On the other hand, Amazon is on a hiring spree as they have planned to hire 15,000 extra staff to meet the requirements for Christmas. Amazon Europe's vice president Tim Collins said that these temporary staffs would become permanent staffs.

The battle between management and staff could prove vital for the year-end performance. One side they need extra staffs to meet the requirements, the other side, the existing pool of around 9000 workers are planning to strike out. Amazon's management better try to resolve these union issues or else this would prove to be a golden opportunity for its competitors especially eBay(eBay). eBay is using Facebook(FB) and its database to help users select the appropriate gift with the development of its e-Bay Gift Engine. E-bay will surely keep a close eye on this activity to ensure they can leverage the maximum out of it.

Way-out?

The Management on the other side believes that the category of these workers classified as 'Logisitic Workers' are already paid above average as compared t! o the industry standards. This conflict of interest could prove trivial and thus they need to look into this matter seriously. They need to not only ensure that they can come up with a reasonable solution but also come up with it very fast. As the union has planned it very strategically to strike at a time when the company needs its employees the most. This has already given Verdi union an upper hand on the possible round table discussions.

With Christmas closing by, the expectations of customers shopping online is to not only get a good deal but also to get the gifts and items on time. This will test the mettle of all these online websites to ensure customer satisfaction. Will Amazon be able to resolve these problems? Or will e-bay have the last laugh?

Currently 0.00/512345 Hot Performing Companies To Buy For 2014 Rating: 0.0/5 (0 votes)

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Understanding the Organization Whose Sole Purpose Is to Bash Google

You don't become the dominant search engine in the world without picking up a few enemies along the way. That's why there's an organization whose sole purpose is to bash Google (NASDAQ: GOOG  ) -- an organization that's comprised and funded by many of its fiercest competitors.

FairSearch masquerades as a consumer watchdog, advocating for -- you guessed it -- fair search practices and innovation. However, it's pretty clear that FairSearch's primary objective is to hinder Google in every imaginable way, which in turn would inevitably benefit the rivals who foot FairSearch's bills.

The group was initially formed in 2010 by a handful of travel companies looking to defend themselves from Google stepping on their toes by adding flight-booking tools to its site. The search giant had just acquired flight information specialist ITA Software for $700 million, much to the chagrin of these companies.

There are 17 companies and organizations that are listed as members. Here are the more prominent names.

TripAdvisor Kayak  HotWire Expedia Microsoft (NASDAQ: MSFT  ) Oracle (NYSE: ORCL  ) Nokia (NYSE: NOK  )

priceline.com is in the process of acquiring Kayak for $1.8 billion. Priceline has chosen not to join FairSearch thus far, but now it's acquiring a member. We'll have to wait to see if Priceline joins up or if Kayak drops out, or perhaps the parent and subsidiary will just agree to disagree.

The most recent attack was a complaint with the European Commission over the bundling of Google apps in Android. The group calls Google's distribution strategy "predatory" since it's technically free, which makes it difficult for other operating system providers to compete.

Of course, Microsoft is likely spearheading this move, since it hopes to charge license fees for Windows Phone, despite the fact that Microsoft gets its fair share of Android-related royalties. To the extent that Microsoft's ability to compete in mobile is hurt, so is Nokia's as the dominant maker of Windows Phones.

Oracle has also had its fair share of battles with Google, including its high-profile lawsuit over Android. Google has also been moving further into enterprise software. That's currently more of a direct threat toward Microsoft's enterprise offerings, but it still likely makes Oracle uncomfortable. Oracle and Nokia are among the newest members, joining last September.

FairSearch features a presentation on its site that includes out-of-context quotes from current and former Google execs, including Marissa Mayer, who has since moved to Yahoo!, that seemingly undermine its famous "Don't Be Evil" motto while displaying the inherent conflicts of interest that Google faces.

On one hand, any company that wields as much power as Google definitely needs oversight. On the other hand, that oversight shouldn't be originating from Google's biggest competitors who have every interest in seeing it fail.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

What You Miss When You Don't Work on Christmas

PORTLAND, Ore. (TheStreet) -- My stepfather worked for FedEx (FDX) from the mid-'80s until the beginning of this year, when he accepted a buyout and an early retirement. This is the first Christmas Eve he'll spend without clocking in, thus ending a family tradition of working on the holidays.

Only when compared to the FedEx, UPS (UPS) and other delivery service employees working on Christmas Day itself does my stepfather's Christmas Eve routine of the last 25 years look ideal. He'd leave at roughly 2:30 a.m. and either deliver packages or direct those who did until just before the family showed up at 7 p.m. He'd have a glass of egg nog, give the toast at Christmas Eve dinner, have a bit of shrimp, crawfish or pierogi and then head straight to bed. By Christmas morning, he was rested enough to put down a bowl of shrimp and half a jar of cocktail sauce by himself, but it still took a while for him to get up to speed.

While it was clear he'd rather be anywhere but the terminal on Christmas Eve, I get a better understanding of why he went in 1995 -- when I took my first job in journalism as a newspaper sports intern at The Star-Ledger in Newark, N.J. The National Basketball Association results, horse racing picks and transaction listings don't get a day off, and my first Christmas dinner away from home was spent cobbling together the sports section's agate page and failing miserably in doing so. I had only worked as a reporting and filing intern the summer before and got my trial by fire as a means of giving some of the other folks a night off.

It was terrifying, but it was great in its own right. That night the head of our sports desk, former Star-Ledger editor Rich Guenther, introduced me to the Italian Cheeseburger -- a three-patty burger on a hoagie roll coated in provolone cheese and a bit of marinara sauce and stuffed with french fries. It was served in a round aluminum container that caught excess cheese and fries and was a glorious holiday meal. It wasn't my grandmother's manicotti or my grandfather's candied yams, but it remains one of my favorite holiday meals. On and off for the next decade, I was a Christmas worker. I'd willingly take my spot on the copy or pagination desk at the Jersey Journal in Jersey City or Herald News in what's now called Woodland Park, N.J. -- formerly West Paterson, for fairly specious reasons -- and enjoy a relatively light night of pre-packaged stories, the occasional police brief and one of the grandest traditions in newsroom or office holiday culture, the Christmas potluck. I replicated my grandmother's manicotti as best I could and, in return, received a spread of samosas, barbecue ribs, pudding, paella and other treats that would stuff the kitchenette fridge with enough leftovers for the next night's shift. You'd hear stories about people's families, hear some tough phone calls home and occasionally flip on a Turner channel for the last showing of A Christmas Story, but it actually wasn't half bad. Occasionally, something newsworthy would actually happen -- like the Mars lander disappearing in 2003. It was peaceful, but not lonely. A survey by the Workforce Institute at Kronos Inc. and Harris Interactive conducted last year suggested me, my stepfather and our workmates were decidedly not anomalies when it came to working on the holidays. In fact, just 38% of all full-time U.S. workers took off on Christmas Eve last year, with 28% taking Christmas Day off. Then again, a full 26% of full-time workers said their workplaces were closed for the entire span between Christmas and New Year's Day.  Hey, sometimes the money comes in handy. Holiday pay amounted to time and a half in some cases and double time and a half at more generous employers. Those Christmas presents don't pay for themselves and heating bills only get costlier as East Coast winters wear on. Besides, unless it snows -- as it did one year when I tried to brave a sudden storm on Christmas night and nearly wrapped my Ford Taurus around a tree on West Paterson's Garret Mountain -- the commute's a breeze. It also makes those who celebrate the holiday increasingly aware of those who don't and really thankful to have them around. Eventually, though, it started to wear. When my new employers at the newspaper Metro in Lower Manhattan told me I had Christmas Eve and Day off in 2005, it occurred to me that I hadn't spent Christmas dinner with my family in 10 years. I'd missed my grandfather's last Christmas dinner in 2003 and felt that I probably shouldn't let something similar happen again. After transferring to a Metro outpost in Boston in 2007 and learning that I'd have to find a way up from New Jersey on Christmas morning to produce a copy of the paper that a small fraction of the city would read on the day after Christmas, I fell out of love with newspapers and became fond of the idea of holidays off. I haven't worked a Christmas Day since. While on assignment here in Portland recently, however, I found myself in a radio studio in the middle of that station's employee potluck dinner and felt just a bit nostalgic. Those nights and those shared experiences brought me closer to my coworkers than I could have imagined and made clear that, at least for that night, I had a surrogate family who was as willing to make the best out of the situation as I was. The multiple, steaming slow cookers, the disposable plates and the conference room that smelled like a family dining room all brought back experiences that left a bigger mark on me than I'd thought at the time. They're what you miss when you part ways with coworkers for the holidays, but they're not something I miss enough to trade for my first Christmas Eve beer with my stepfather in ages. -- Written by Jason Notte in Portland, Ore. >To contact the writer of this article, click here: Jason Notte. >To follow the writer on Twitter, go to http://twitter.com/notteham. >To submit a news tip, send an email to: tips@thestreet.com. RELATED STORIES: >>Here's Your Thanksgiving Playlist >>Why The NFL Deserves A Thanksgiving Scolding >>Blockbuster's Self-Inflicted Tragedy Is Our Loss

Stock quotes in this article: FDX, UPS