Green is the Warmest Color: S&P 500 Finishes Week at Record High

It’s slim pickings at the box office this week. Moviegoers could take in Jackass Present: Bad Grandpa, the Johnny Knoxville flick about a bad grandpa traveling cross-country with his grandson. While it could take in $25 million this weekend, I’m guessing not much of that will come from Barron’s readers. Then there’s the Cormac McCarthy-scripted the Counselor, which has gotten terrible reviews, despite a cast featuring Penelope Cruz, Cameron Diaz and Brad Pitt. And for those of us who dig the art house, there’s Blue is the Warmest Color, the winner of the  Palme D’Or at Cannes this year, but that’s playing in only four theaters and is surely not to everyone’s taste.

Investors had a little better luck this week, as plenty of stocks were on the move. Boeing (BA), for instance, was the big winner in the Dow Jones Industrial Average after it gained 7.1% to $131.19 this week following a big earnings beat thanks to big profits from its commercial aircraft division. Alexion Pharmaceutical  (ALXN), meanwhile, was the biggest non-tech gainer in the S&P 500, with a 15% gain to 125.17. It beat earnings and had a drug designated fast-tracked for approval. And over in the S&P 1500, Career Education Corp. (CECO) gained 91% to $5.98 after selling its European schools for more than its market cap.

It wasn’t all good news, however. Healthways (HWY) plunged 30% to $11.41, making it the S&P 1500′s biggest loser, while Cameron International (CAM) fell 18% to $53.25, making it the S&P 500′s weakest stock. Both released disappointing earnings reports this week.

Still, the Dow Jones Industrials rose 1.1% to15,570.28 this week, while the S&P 500 gained 0.9% to 1,759.77, a record high. The new highs had some bears proclaiming that stocks are expensive. MRB Research Partners doesn’t buy it. They write:

Stocks offer average value in absolute terms and good value relative to bonds and short-term interest rates. Stay long equities: an upmove to at least moderately overvalued levels should occur before the bull market ends, given plentiful liquidity conditions, improving economic activity and lagging central bankers, and the lack of attractive alternatives (the love affair with gold and commodities has waned, and the demand for bonds is now ebbing as well).

Next week brings data galore–industrial production and pending home sales on Monday, retail sales on Tuesday, among others–but don’t expect the Fed to act on it when it meets, says Pierpont Securities’ Stephen Stanley. He writes:

This week brings a heavy slate of events, but with the data mostly distorted and the FOMC not likely to budge any time soon, the impact of the data will be limited…the FOMC meeting this week will likely come and go without much fanfare.  There will be no press conference, and the statement may have only cosmetic changes.  In my view, the FOMC is not going to seriously contemplate tapering until March 2014 at the earliest.

Meet the new risk regime, same as the old regime.

Earnings roundup: Coke fizzy, Schwab soars

Charles Schwab stock soared in Tuesday afternoon trading after announcing that its third-quarter net income climbed 19%.

Trading and interest revenue also rose, beating analysts' forecasts.

Schwab's active broker accounts grew 3% from a year ago, to nine million. Revenue rose 14% to $1.37 billion from $1.2 billion. Wall Street was looking for $1.34 billion in revenue.

Shares climbed 5% on the news, with the stock at its highest level in more than five years.

TUESDAY STOCKS: How markets performed

Also up, by lesser amounts, were Dow Jones industrial average members Coca Cola and Johnson & Johnson.

Banking giant Citigroup missed analysts estimates, notching earnings of $1.02 a share, under the $1.04 estimate, on revenue of $17.9 billion.

Profit was up at Coke as the world's biggest beverage maker managed to sell more of its drinks despite choppy economic conditions.

The maker of Sprite, Powerade and Vitaminwater in addition to its namesake brand, said global sales volume edged up 2%, helped by its performance in countries such as China, India and Russia.

Still, the Atlanta company conceded that it was facing an economic slowdown in many parts of the world including Mexico, where the government is also considering a tax on sugary soft drinks.

In a conference call with analysts, CEO Muhtar Kent pushed back at the suggestion that the company's days of growth were coming to an end. He noted that the company is emphasizing affordability and smaller packages to "keep the drinkers base growing" in developing markets.

The company said its namesake brand saw volume growth of 22% in India. In China, soft drink volume rose 8%.

Hot Financial Companies To Watch In Right Now

Johnson & Johnson benefited from a big jump in prescription drug sales and continued recovery of its consumer health business. Those successes helped the health care! giant overcome a new problem, slumping sales of its medical devices.

That was mainly due to pricing pressure in the U.S. that forced J&J to cut prices for devices including diabetes testing products and spine and hip replacement parts, and trouble integrating part of the product line and sales force of orthopedic products maker Synthes, bought last year for $20 billion in J&J's biggest acquisition ever.

Stock of the New Brunswick, N.J.-based company is near its 52-week high of $94.42.

J&J said Tuesday that net income was $2.98 billion. Excluding one-time charges, it earned $1.36 per share, 4 cents better than analysts expected.

"We are still seeing (health care) utilization rates that are essentially flat year over year," Chief Financial Officer Dominic Caruso told analysts on a conference call.

Contributing: The Associated Press

One year on, Goldfarb wants amends from CFP Board over fee flap

It has been almost a year since Alan Goldfarb resigned as chairman of the organization that oversees the certified financial planner designation. To put it mildly, he's still not happy with how the CFP Board handled the case and would like the board to make amends.

On Oct. 30, 2012, Mr. Goldfarb stepped down from his leadership position at the Certified Financial Planner Board of Standards Inc. when the organization alleged that he had violated CFP rules regarding compensation disclosure.

Mr. Goldfarb said the board should have addressed ambiguities in its definition of “fee-only” before pursuing any enforcement cases.

In June, the CFP Board's Disciplinary and Ethics Commission formally admonished Mr. Goldfarb for misrepresenting his compensation — first as “fee-only,” then as “salary” — on the Financial Planning Association website when he was director of wealth strategies at Weaver Wealth Management.

“You do the definition and clear it up first before you sanction someone for following what they perceived to be the only definition out there,” said Mr. Goldfarb, who is now managing director of Financial Strategies Group LLC. “I'd love to see some form of recognition as well as compensation for at least the expenses for fighting the case.”

Mr. Goldfarb has maintained his innocence all the way through. At the time he resigned as chairman, two members of the disciplinary panel also resigned for allegedly misrepresenting their compensation. One of them was Tina Florence, a partner at Lane Florence LLC.

Ms. Florence wants an apology and a refund of her legal costs.

“Investigations were opened before we were given the chance to change our profile information the way that thousands of CFPs were just given in the past [few] days,” she said.

Last week, the CFP Board temporarily removed the “fee-only” description from its website and told the 8,000 CFPs who had been using it in their profiles to review the organization's definition of “fee-only” and restore the term, if it fit their practice.

The controversy over the “fee-only” description originated prior to Mr. Goldfarb's case with a similar proceeding launched by the CFP Board against Jeff and Kim Camarda, managing members of Camarda Financial Advisors LLC. The Camardas have filed a lawsuit against the CFP Board.

Like Mr. Goldfarb and Ms. Florence, Kim Camarda thinks the CFP Board should have sorted out the compensation situation before turning to enforcement.

“That's all we've ever asked them to do,” Ms. Camarda said. “Be clear! in this definition. There's obviously a misunderstanding here.”

Under CFP Board rules, a holder of the mark can deem himself or herself “fee-only” only if their compensation is solely derived from fees charged to clients and they are not affiliated with a financial firm that charges commissions. If CFPs work for a firm that has a brokerage arm, or own a stake in such a company, they must call their compensation “commission and fee.”

Earlier in the week, CFP Board spokesman Dan Drummond said the organization has been reaching out extensively to CFPs to help them comply with compensation description. He said the goal is to protect the public.

“We're erring on the side of the consumer and providing clarity,” Mr. Drummond said.

5 Legal Ways to Cut the Cord on Sports

PORTLAND, Ore. (TheStreet) -- Forget for a moment that most of the country's cable and satellite customers are subsidizing the average sports fan's viewing habits. Shouldn't those fans be able to pay for the channels they want without getting dozens that they don't?

That's been the crux of the cable television debate for nearly two decades as the price of sports channels has risen and sports' overall share of the cable bill has increased. According to media research firm SNL Kagan, sports channels made up $947.6 million -- or roughly 17% -- of the $5.5 billion multichannel television industry in 1995. Just last year, sports channels took in $15.3 billion -- or a whopping 38% -- of the overall $40.3 billion multichannel take. The earning power of the only other category that even came close, general variety channels such as TBS and AMC (AMCX), grew to $5.5 billion from $820 million over the same span, but dropped from nearly equivalent to sports to roughly a third of that genre's value.

Meanwhile, sports now accounts for nearly two out of every five dollars spent on pay television. Its monthly cost has risen as well. In 1995, the average monthly cable bill was $6.83, $1.17 of which went to sports channels. That's still a hefty 16%, but it lagged behind the $2.82 movie channels charged at the time. Now that $1.17 spent on sports wouldn't even cover 20% of the $5.54-a-month cost of ESPN alone.

Of the average $34 spent each month on multichannel television, nearly $13 pays for sports channels. That's 38% of the average cable bill, though sports are on only 14 of the average 94 channels offered by multichannel providers. On top of that, Nielsen (NLSN) estimates that only 20% of all multichannel viewing time is spent watching sports. Nobody is making out in that deal. Sports fans get a bunch of content they'll never watch. Everybody else watches providers including Time Warner, Comcast, DirecTV, Dish Network and others squabble over growing network retransmission fees and subscription fees charged by Viacom, AMC Networks, Turner and others. They don't need this. There are ways to watch most of your favorite sports without subscribing to a satellite or cable service. It isn't always cheap, but it can help overwhelmed multichannel customers cut the dead weight, if not cut the cord completely:

NFL Sunday Ticket Max Price: $60 monthly or $300 five-month subscription Also see: 7 NFL Football Apps You're Going to Need This Season>>

If you're a fan of an out-of-market team, this is an easy decision.

NFL games accounted for 31 out 32 of the most-watched TV broadcasts last fall and more than doubled the prime-time viewership of Fox, ABC, CBS and NBC. Collectively, 21st Century Fox (FOXA), CBS (CBS) and Comcast's NBC (CMCSA) agreed to pay the NFL $28 billion for broadcast rights through 2022. Walt Disney's (DIS) ESPN has a separate $1.9 billion annual deal for Monday Night Football, while DirecTV (DTV) has a $1 billion per season agreement for the NFL Sunday Ticket package that is set to become even more lucrative once the current contract expires in 2015. That last bit works out in an out-of-towner's favor, especially considering you don't need a DirecTV subscription to access the Sunday Ticket package. The scoring-plays-only Red Zone channel, the 30-minute condensed-game Short Cuts channel and every out-of-market game is available through your mobile devices or your laptop. That last option is especially great, considering there are a few ways to use a USB connection to broadcast Sunday Ticket games on your television or to use Google's (GOOG) Chromecast to do the work for you. Considering that DirecTV subscribers would have to pay the same amount for all you're getting plus their monthly subscription fee on top of it, it's a great deal. It's one that became even better if you happened to be one of the lucky souls who bought a $100 copy of Electronic Arts' (ERTS) Madden NFL 25: Anniversary Edition this summer with its free access to the Sunday Ticket Max package.

MLB.TV Premium Price: $130 for a full season, $10 now

There isn't a whole lot of regular season left, but if you're trying to find a way to check in on the wild-card and pennant races without shelling out more to some multichannel provider, this is an easy solution.

Much like Sunday Ticket, MLB.TV Premium tends to work best if you're a fan of an out-of-market team, as the home team's games are blacked out whether they're playing at home or away. Still, this allows even home team fans to watch out-of-town games on their Sony (SNE) PlayStation 3, Xbox 360, Roku, TiVo (TIVO), Boxee, Apple (AAPL) TV or other connected devices that they'd ordinarily miss. Postseason games cost extra, but this comes in handy if you've cut the cord and can't catch a TBS broadcast. Even better, your subscription also buys you you pitch-by-pitch updates, video highlights from games in progress and live radio broadcasts to go with free At Bat Lite content such as scores, news from MLB.com, schedules, rosters and team standings. This year's updates include a free MLB.TV game of the day, closed-captioning and a classic games video library.

MLS Live Price: $24.99 though the playoffs

Same rules apply as in the other leagues: Home team games are blacked out. That's not so great for MLS supporters, who typically have to watch their home teams on a cable sports network or hope for an NBC Sports matchup, but it's -- again -- great for folks whose favorite team is out of town or who likes to keep an eye on rival sides when the playoffs approach.

Meanwhile, subscribers also get 20-minute condensed game replays, DVR function, slow motion, real-time stats, formation and foul updates and more. They can also watch games through their regular television if it's a smarter Panasonic (PC) model or if they own a Roku box. Lastly, one of the best features of this package is that fans get non-MLS games thrown in. If there's a CONCACAF Champions League matchup or a friendly against a foreign squad, you'll have access to it.

NHL GameCenter Price: $150 or eight payments of $19

For NHL fans anywhere east of the Mississippi, watching West Coast games is a rare treat with huge rewards. The problem is that you either have to pay for a package including NBC Sports to see them or tack on a costly full-season out-of-market package. Also see: 5 NFL Teams Most Likely To Be Blacked Out In 2013>>

If you're serious about hockey and don't care much about the team your city bought an arena for, GameCenter's full season of televised games, slow-motion, DVR controls and mobile capability for all of it should make it well worth the price.

Aereo Price: $8 a month

Remember all those blackout restrictions we mentioned in just about every entry above? Well, a simple TV antenna is usually the best way around them, especially for nationally televised network broadcasts.

The only problem is that your antenna doesn't play nicely with the DVR and certainly doesn't deliver a signal to your various mobile devices. Including the iPhone, iPad, Apple TV, Roku and just about any laptop. But are all those features worth $8 a month? Well, keep in mind that your cable or satellite provider will charge you that much for ESPN and ESPN 2. If you're in Boston, New York, Atlanta, Miami, Houston and Salt Lake City -- currently the only markets where Aereo is available -- that subscription fee is the price you'll pay for your untethered freedom. It certainly gave folks a means around Time Warner Cable's (TWC) blackout of CBS, and it could come in handy as the fight over retransmission fees heats up. If it just seems like a way of getting you to pay for free content, then all we can tell you is that cable and satellite television subscribers have been paying for that same free content for years. You're just ordering a la carte. -- 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: >>7 NFL Football Apps You're Going to Need This Season >>5 Pro Sports Towns Doing Just Fine Without the NFL >>5 NFL Teams Most Likely To Be Blacked Out In 2013

Jason Notte is a reporter for TheStreet. His writing has appeared in The New York Times, The Huffington Post, Esquire.com, Time Out New York, the Boston Herald, the Boston Phoenix, the Metro newspaper and the Colorado Springs Independent. He previously served as the political and global affairs editor for Metro U.S., layout editor for Boston Now, assistant news editor for the Herald News of West Paterson, N.J., editor of Go Out! Magazine in Hoboken, N.J., and copy editor and lifestyle editor at the Jersey Journal in Jersey City, N.J.

Coca-Cola Is Sweet on Aspartame

If you have to run ads defending your ingredients to stave off declining sales, maybe it's time to rethink your production.

Coca-Cola (NYSE: KO  )  launched its first ads today defending the use of the artificial sweetener aspartame, arguing that not only is it safe to consume, but it can be healthier for you, too. With sales of soft drinks losing their pop, the beverage giant wants you to know you don't have to fear drinking its soda.

Aspartame, known more commonly by the brand name NutraSweet, is a controversial ingredient that's witnessing a large and growing resistance to its presence in the food chain despite the FDA's having signed off on its safety. Monsanto  (NYSE: MON  ) owned the brand at one time but sold it to J.W. Childs in 2000. Even so, the sweetener is made with genetically modified bacteria -- E. coli, to be exact -- from the chemicals giant, and today the sweetener is found in more than 5,000 consumer foods and beverages worldwide. Sucralose, another widely used artificial sweetener, goes by its brand name Splenda.

Whether the drop in sales is a result of the presence of aspartame remains cloudy, but Beverage Digest says diet-soda makers -- where the sweetener is prevalent -- are seeing sales in the U.S. fall at a faster clip than regular sodas. Even though classic Coke and Diet Coke remain the two top-selling sodas in the country, Coca-Cola witnessed a 4% drop in North American sales volumes for its fizzy drinks last quarter. Rival PepsiCo (NYSE: PEP  ) reported that beverage volumes in its Americas division fell 3.5% despite the contribution of a 3% price increase.

It's not just carbonated drinks weighing the toll aspartame exacts. The dairy industry is also soured by the prospect of having to label aspartame-flavored milk products such as labeling chocolate milk as "artificially sweetened" because of the negative connotations it has. With per-capita milk consumption down 23% since 1975 and whole milk sales off 58%, anything that might cause a more health-conscious consumer to avoid drinking their beverage is a cause for concern.

And it's pitting dairy producers against soda makers. The industry's biggest dairy company, Dean Foods (NYSE: DF  ) , says that even though about half the sugar in flavored milk is from naturally occurring lactose, all the sugar in soda is added sugar.

Which is probably part of the reason Coke feels the need to defend aspartame from attacks. Not that it's not working behind the scenes to try natural flavors as well. A new stevia-flavored drink is being tested in Argentina to see if it performs well enough to expand into other markets, while SodaStream (NASDAQ: SODA  ) introduced a line of stevia-flavored drinks for its make-it-yourself soda machine last year.

Even in the face of a growing obesity problem, consumers are more health-conscious these days and are reading labels more frequently. Thus, spending money to defend your production process isn't such a sweet deal for Coke investors, and it represents money that could be better spent on developing natural flavorings that aren't lab-made and genetically modified.

For more wholesome fare, check this out. It's hard to believe that a grocery store could book investors more than 30 times their initial investment, but that's just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic-foods powerhouse. In this premium report on the company, we walk through the key must-know items for every Whole Foods investor, including the main opportunities and threats facing the company. So make sure to claim your copy today by clicking here.

PRAA Raised to Outperform - Analyst Blog

On Jul 12, 2013, we upgraded Portfolio Recovery Associates Inc. (PRAA) to Outperform based on its efforts to diversify product portfolio, strong cash collections, and improving bottom line.

Why the Upgrade?

Portfolio Recovery reported positive earnings surprise in the last 4 quarters, with an average beat of 8.28%. We expect this Zacks Rank #1 (Strong Buy) company to outperform estimates in the second quarter of 2013 as well. Currently, the Zacks Consensus Estimate for Portfolio Recovery's second-quarter earnings stands at $2.24 per share, up 20% over the year-ago quarter.

Portfolio Recovery's bottom-line results have shown great improvement over the recent past. The escalation is attributable to strong improvement in income from finance receivables and fee income, which managed to offset the rising expenses.

Moreover, Portfolio Recovery has expanded beyond its primary debt collection business into government collections, audit services and claims settlement with the acquisitions of IGS Nevada, Alatax, Broussard Partners, MuniServices, Claims Compensation Bureau and Mackenzie Hall. This diversification has helped the company in mitigating some of the stress on collections caused by the recent economic softness, while continuing to add to earnings.

Further, Portfolio Recovery's cash collections and collector productivity (cash collections per hour paid) continue to be at record highs as efficiency improves at the company's operating call centers and Portfolio Recovery continues to hire new collectors. Cash collections jumped 26.4% year over year to $275.5 million during the first quarter of 2013.

Other Stocks to Consider

Other stocks in the sector that are worth a look are Convergys Corporation (CVG) – Zacks Rank #1 (Strong Buy), Discover Financial Services (DFS) – Zacks Rank #2 (Buy) and The Brink's Company (BCO) – Zacks Rank #2 (Buy).

Google's Got Some Explaining to Do

Google's (NASDAQ: GOOG  ) earnings results are in, and they're not the prettiest. The company missed expectations by a wide margin and shares took a tumble. Whenever this happens, it's often wise to dig deeper and see if there's an underlying issue.

The disappointment
In the second quarter, Big G reported year over year revenue growth of 19% to $14.11 billion, which translated to a non-GAAP income of $3.23 billion, or $9.56 a share. Analysts were expecting Google to earn $10.78 a share on revenue of $14.42 billion. The culprit appears to be that Google's cost-per-click -- or CPC -- declined by 2% sequentially and 6% year over year, despite paid click volume rising by 23% year over year and 4% sequentially. This could indicate there's potentially a structural headwind that's driving down the CPC metric.

The dig
Whenever something earnings-related doesn't add up, the first place to look for answers is the conference call. Unfortunately, this is all that Patrick Pichette, Google's CFO, had to formally say on the matter:

"Our aggregate cost-per-paid was down 6% year over year and down 2% quarter over quarter and currency fluctuations in this case had a minimal effect in Q2 CPC growth, and yet our monetization metrics continued to be affected by the usual factors that we've discussed many times including geographic mix, channel mix, property mix, our product and policy changes as well as FX [currency fluctuations]."

When questioned later on about if mobile was to blame for the soft CPC, Pichette acknowledged that mobile played a role, but he didn't elaborate to what degree. However, he did add that considering CPC alone is "dangerous" and should be incorporated with paid click volume to get a better sense of the health of the business. Naturally, the combined metrics for the quarter has the company made the company "very pleased."

Getting theoretical
Larry Kim, founder and CTO of online advertising specialist WordStream, has a few theories on what could be pressuring CPC. Of the five listed, I think three could be in play here, perhaps in some combination of each other. The first possibility could be that ad inventory is increasing faster than demand and the added supply is pressuring CPC. The second could be that mobile clicks are growing faster than their desktop counterpart, and since CPC is a weighted average between the two, it's dragging down the average.

The final theory could be that Google's recently launched AdWords enhanced campaigns are so incredibly effective that marketers need to spend less on a per-click basis to achieve their desired results. If this were to be the case, it would mean that advertisers are likely thrilled to spend less money on a per-click basis, which could ultimately drive new advertising spending on the platform longer term. In other words, this seemingly negative transition to enhanced campaigns would be rather short-lived.

A watchful eye
Truth be told, one quarter of potential trouble isn't enough for me to say there's a major issue going on with Google's business. Investors should still continue to monitor the situation by keeping an eye on Google's future earnings results. Ultimately, Google's long-term success will be dependent on its ability to drive future advertising spending by offering an ever-improving user experience for both the user and marketer alike. Could it be that Google is getting too good at its job and it's actually hurting the bottom line?

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies like Google. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Hefty tax bills could lurk in failed life insurance policies

The failure of a life insurance policy is bad enough. But the situation instantly goes from bad to worse if there are loans against the policy — a hefty tax bill could be waiting in the wings.

In-force life insurance policies of all varieties that were written during the 1980s and 1990s are facing pressure due to current low interest rates. The problem lies in the fact that the policies were written with optimistic interest rate assumptions. For universal life policies, clients expected to receive an attractive credited interest rate on their cash value — a rate high enough that would sufficiently cover the policy's costs. For whole life policies, dividends credited to the cash value were expected to foot expenses.

Today's low rates make it hard for insurers to continue being so generous, so clients now are expected to chip in even more money to foot the bill for keeping the policy in force — or else surrender the policy. Alternatively, clients can cut death benefits or try to sell the policy to a buyer on the secondary market.

Life insurance experts warn that another threat looms with failed policies: Should the client surrender the insurance coverage or let it lapse, and there are loans against the cash value, they could face a giant tax bill for so-called “phantom income.”

Many insurance policies will default to an automatic payment schedule if the client stops paying the premiums. In this case, the costs will be deducted from the cash value, and those deductions are considered an internal loan.

“It collapses these policies from the inside out; there are sometimes seven- or eight-figure loans on these policies,” said Bill Boersma, president of Opportunity Concepts, a life insurance consulting firm. “The worst that can happen is that you lose the policy and you are in debt to the IRS.”

So-called phantom income in the context of a life insurance policy can be calculated in two ways.

In the event of a surrender, phantom income is the gross distribution the insurer pays to the client at surrender minus the amount the client invested into the contract. The difference left over is considered taxable income. This amount is also called “phantom income” because if the client has outstanding loans (and interest) against the cash value, the gross distribution will go toward repayment of that loan. As such, a client who has large loans against a policy could receive a very small check from the insurer at surrender — but still face a very large income tax bill.

In case of a lapse, where the client just stops paying premiums, the phantom income is the difference between the policy loan and the premiums paid into the policy: A $100,000 loan minus $80,000 in past premiums paid equates to $20,000 of taxable income.

For example, the U.S. Tax Court on Dec. 2 found a New York couple liable for income taxes on $33,125 from a surrender of a life insurance contract. The husband sought to surrender a life insurance policy in 2010, some 26 years after purchasing it, when h! e and his wife became unable to pay premiums. There were loans against the cash value. The issuing insurer made a gross distribution of $65,903 when the policy was surrendered, of which the husband's investment in the contract was $32,778 — but the couple received a check for only $3,786, the net value of the policy after repayment of outstanding loans. The couple still wound up on the hook for $33,125 in taxable income.

There are few ways out of this scenario once a client lapses or surrenders the policy and winds up holding the taxable-income bag.

One possibility is to negotiate a deal with the insurance company to reduce the face amount of the policy so that the policy costs less to maintain, according to Peter Katt, a fee-only life insurance adviser at Katt & Co. The odds are relatively slim, however, and much rides on whether the insurer is willing to make the adjustment. “In the last five or six cases I've had, two or three insurers have been cooperative,” Mr. Katt said. “I've seen people get hit with $200,000 to $300,000 in phantom income.”

“When you surrender or change the policy, that's when the loans become a problem,” said Thomas J. Henske, a partner with Lenox Advisors Inc. “If the client died, [the additional income taxes] wouldn't be a problem.”

The moral, Mr. Henske said, is to review life insurance policies on a regular basis, but also to make sure that if the client is considering surrendering or letting the policy lapse — or exchanging it for another — to ask the insurer for a quote on what the taxable income would be.

“It comes back to policy monitoring,” said E. Randolph Whitelaw, founder of the TOLI Center. ”Most people don't understand how life insurance works. If they have loans, they have a problem.”

Homebuilding Sector Getting Some Attention Amid Analyst Note, Upcoming Earnings Data

Investors in the Homebuilder group are digesting a number of news items Tuesday afternoon. In addition to a research note from a Compass Point analyst earlier, traders are reviewing data out of the NAHB. Later this week, the Street will get results from Lennar and data on housing starts on Wednesday. Quarterly figures from KB Home and existing home sales data will be out on Thursday.

Compass Point analyst Wilkes Graham updated his housing forecast:

Graham increased assumed ROI's to 9% on average from 7%. Reduced targeted sector price/ book from $190% to 170%. Expects 20-30% growth in starts and new home sales in 2012 and 2013 to stabilize in 2014 and on at approximately 10%. For covered builders, the analyst lowered estimates by 8% and lowered price targets by 10%. Compass Point expects 10% annual growth in single family starts and new home sales and 2-5% pricing growth. Downgraded DR Horton Inc. (NYSE: DHI) from Buy to Neutral and KB Home (NYSE: KBH) from Neutral to Sell. DR Horton's and KB Home's PT was lowered from $23.50 to $20.00 and from $17.50 to $14.00, respectively. Graham reiterated a Buy rating on Ryland Group Inc. (NYSE: RYL) and Standard Pacific Corp. (NYSE: SPF). The analyst raised the PT on Ryland from $50.00 to $50.50 and lowered the PT on Standard Pacific from $10.00 to $9.50. Compass Point reiterated a Neutral rating on Beazer Homes USA Inc. (NYSE: BZH), Hovnanian Enterprises Inc. (NYSE: HOV), Lennar Corp. (NYSE: LEN), PulteGroup, Inc. (NYSE: PHM), and Toll Brothers Inc. (NYSE: TOL). The price target for Beazer and Hovnanian was raised from $15.50 to $24.00 and $5.00 to $5.75, respectively. Graham lowered the PT for Lennar, Pulte, and Toll to $34.50, $17.00, and $31.00.

Top China Companies To Watch In Right Now

This Week's Data

NAHB Housing Market Index for December was reported this morning at $58.00 versus the $55.00 estimate and $54.00 prior. On Wednesday, the Census Bureau is expected to report November housing starts at 954,000 and building permits at 990,000. On Thursday, the National Association of Realtors data for existing home sales for November is expected to be down 2% MoM to the seasonally adjusted annual rate of 5.02 million units.

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Stocks to Watch: Sprint, AIG, Solta Medical

Among the companies with shares expected to actively trade in Monday’s session are Sprint Corp.(S), American International Group Inc.(AIG) and Solta Medical Inc.(SLTM)

Sprint is working toward a possible bid for rival T-Mobile US Inc.(TMUS), the Wall Street Journal reported, setting the stage for a telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three big companies. Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the Journal reported. Sprint shares were up 4% to $8.77 premarket and T-Mobile was down 14 cents at $27.50. American depositary shares of Deutsche Telekom AG(DTE.XE), which holds a majority stake in T-Mobile, were up 2.8% at $16.05.

AIG confirmed it will sell its stake in International Lease Finance Corp to aircraft-leasing company AerCap Holdings N.V(AER). for $5.4 billion in cash and stock.

Endo Health Solutions Inc.(ENDP) agreed to acquire pharmaceutical company NuPathe Inc.(PATH) for about $105 million to gain the company’s new migraine treatment. Endo will acquire NuPathe for $2.85 per share, a 24% premium to its close of $2.30 on Friday. NuPathe shareholders will receive rights to receive additional cash payments of up to $3.15 per share if the company’s migraine treatment Zecuity meets certain sales milestones. NuPathe shares were up 51% at $3.48 in premarket trading.

Harvest Natural Resources Inc.(HNR) agreed to sell all the company’s interest in Venezuela for $400 million in cash, as the energy company moves forward with its plans to sell itself.  Shares were up 24% at $4.89 premarket.

Valeant Pharmaceuticals International Inc.(VRX.T) agreed to acquire medical device company Solta Medical Inc. (SLTM) for $250 million to increase its offerings in the growing aesthetic medicine market. Valeant is offering Solta shareholders $2.92 a share, a 40% premium to its Friday close of $2.09. Solta shares were up 39% at $2.91 premarket.

Allegheny Technologies Inc.(ATI) intends to close a Connecticut facility in 2014, a move the metal processor said will result in a $9.2 million charge to be recorded in the fourth quarter.

Asset management firm The Carlyle Group LP(CG) agreed to invest $200 million over three years to fund an oil-and-gas exploration companies offshore drilling programs in New Zealand and the Union of the Comoros.

Top 10 Energy Stocks To Buy For 2014

There is a lot of buzz over recent energy activity in Sub-Saharan Africa. With Anadarko Petroleum (NYSE: APC  ) and Eni (NYSE: E  ) making large gas finds off the coast of Mozambique, several majors are now looking to get in the game as well. BP plans to spend $540 million over the next five years to develop a part of this gas field that could hold well over 100 trillion cubic feet.�

Better drilling technology and relative political stability in the region have allowed several companies to start investing money in the region, and if some of these plays hit paydirt, some companies could be in for big paydays. In this video, Fool.com contributor Tyler Crowe talks with Aimee Duffy about some of the hot energy plays on the African continent and what we should expect from this region in the years to come. �

With more than 94% of its capital investments coming in the international markets for 2013, National Oilwell Varco is positioning itself to be the leader in oil services around the world. To help determine whether it could be a good fit for your portfolio, you're invited to check out The Motley Fool's premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor's resource, simply click here now to claim your copy.

Top 10 Energy Stocks To Buy For 2014: S&P 500/Barra Value(SU)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro duction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary , Canada.

Advisors' Opinion:

• [By Tyler Crowe]

  According to former Suncor Energy (NYSE: SU  ) CEO, Rick George, oil sands producers need to do a better job improving the image of this particular type of oil. While the unflattering image that oil sands production has among the general public is probably not helping, there are much bigger fish for oil sands producers to fry. Increased operating costs, labor shortages, and a lack of takeaway capacity are just a few of the major problems that oil sands producers need to address to get the most from this emerging energy source.

• [By Selena Maranjian]

  Canada's largest energy company, Suncor Energy (NYSE: SU  ) gained 10%, and yields about 2.5%. The company has expertise in deep oil sands, which are not known for cleanliness, but it's also investing more heavily in renewable energies. In recent news, pipeline shutdowns due to flooding put a crimp�in production. Suncor is vulnerable to possible tightened regulations on pipelines, and its diversification beyond North America.

Top 10 Energy Stocks To Buy For 2014: American Petro-Hunter Inc (AAPH)

American Petro-Hunter Inc., incorporated on January 24, 1996, is an oil and natural gases exploration and production company with projects in Kansas and Oklahoma. As of March 15, 2012, the Company has two producing wells in Kansas and six producing wells in Oklahoma. The Company also has rights for the exploration and production of oil and gas on an aggregate of approximately 6,230 acres in those states. On January 4, 2011, the Company announced plans to drill the NOS227 Well as a direct offset to the NOJ26 Well.

On March 25, 2011, the Company announced that the Company had acquired a working interest in an additional 2,000 acres located in Payne County in northern Oklahoma, near the Company�� Yale Prospect. The project has been named North Oklahoma Mississippi Lime Project. On May 16, 2011, the Company announced that drilling operations had commenced at the Company�� first horizontal well, NOM1H. The Company owns a 25% Working Interest in the lease. On June 29, 2011, the Company announced that NOM1H had begun commercial production. On July 18, 2011, the Company announced drilling plans for a total of 11 horizontal wells at the North Oklahoma Project. On July 20, 2011, the Company announced the acquisition of a 40% working interest in the South Oklahoma Project on 3,000 acres of land in south-central Oklahoma.

On February 6, 2012, the Company announced that the Company had drilled a total of 1,988 feet in the horizontal well segment penetrating into the 100 plus foot thick Mississippi pay zone. As of March 2012, there are nine locations left to drill on the acreage. The Company's crude oil production is sold to N.C.R.A. in MacPherson Kansas and Sunoco in Oklahoma. The Company sells natural gas through such pipeline to DCP Midstream, LP of Tulsa, Oklahoma.

Best Financial Stocks For 2014: ConocoPhillips(COP)

ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.

Advisors' Opinion:

• [By Seth Jayson]

  ConocoPhillips (NYSE: COP  ) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ConocoPhillips's revenues will wane -73.0% and EPS will wane -29.7%.

• [By Tyler Crowe]

  After 15 years of testing and optimizing the technique, meaningful shale gas production finally took off in 2009. By then, companies had become adept at identifying high-potential locations and decreasing operating costs. The combination of all this expertise lowers the risk of drilling a dud well than in other shale deposits around the world. So when a company wants to grow its natural gas production, it is much more likely to look at U.S. shale than others. Both Chevron (NYSE: CVX  ) and ConocoPhillips (NYSE: COP  ) have announced that they intend to shift their capital expenditures more toward the U.S. than in riskier plays�abroad, and the lower risk�associated�with drilling the the U.S. is a large part of that decision.

• [By Dan Caplinger]

  But BP has done its best to focus on growth efforts elsewhere. In response to tax reform efforts that encouraged further investment in Alaska's North Slope, BP joined ExxonMobil (NYSE: XOM  ) and ConocoPhillips (NYSE: COP  ) in investing an additional $1 billion in the area over the next five years. The companies are also considering more wells in the Prudhoe Bay oilfield as well as streamlining transportation of oil southward, which could require even more capital expenditures. But as long as oil prices remain high, the benefits are worth the expense. In addition to Alaska, BP is also planning to invest in 40 major exploration and production projects through 2020, with 11 of them requiring $10 billion each in gross investment across regions including the North Sea, Angola, Azerbaijan, and the Gulf of Mexico.

• [By Tyler Crowe]

  The large uptick in domestic production will have some major implications on natural gas markets. With ConocoPhillips (NYSE: COP  ) just receiving approval for LNG exports to countries not in free trade agreements with the U.S. at its Freeport facility, and Cheniere Energy's (NYSEMKT: LNG  ) facility due to come on line in 2015, the U.S. natural gas market will have something it doesn't have right now: an outlet for excess supply. U.S. LNG exports, plus all the Canadian gas we are using today, could be an opportunity for European countries to diversify its natural gas sources and in turn reduce the risk of repeating an incident like the U.K. suffered back in March.

Top 10 Energy Stocks To Buy For 2014: Africa Hydrocarbons Inc (NFK.V)

Africa Hydrocarbons Inc. (AHI) is a Canada-based oil and gas company engaged in the acquisition and development of energy assets, with an emphasis on Africa. The key asset of the Company is its 47.5% owned Bouhajla Block, which is located onshore in Tunisia within the productive Pelagian Basin. The Company completed approximately 60 square kilometer of three-dimensional (3D) seismic. The Company�� BHN-1 well was spud on the Bouhajla North oil prospect. The Company�� projects include Tunisia Project Highlights, Tunisia - Pelagian Basin Area, Bouhajla Prospects and Leads, Bouhajla Prospects, Bouhajla North Risk Mitigation, Tunisia - Bouhajla PSC and PSC Terms - Oil.

Top 10 Energy Stocks To Buy For 2014: WaterFurnace Renewable Energy Inc (WFIFF.PK)

WaterFurnace Renewable Energy, Inc. specializes in the design, manufacture and distribution of geothermal and water-source systems. It�� the United States subsidiary companies are WaterFurnace International, Inc. (WaterFurnace) and LoopMaster International, Inc. (LoopMaster). In December 2010, it incorporated two Australian subsidiaries: WaterFurnace International Asia Pacific Pty. Ltd. (WaterFurnace Asia Pacific) and Hyper WFI Pty. Ltd. (Hyper WFI). WaterFurnace designs, manufactures and distributes geothermal water source heating and cooling systems for residential, commercial and institutional buildings. LoopMaster installs geothermal loops for residential applications, does commercial conductivity testing and provides design and installation assistance. Hyper WFI designs, develops and builds devices that limit the inrush current, which electric motors draw upon start up. On January 21, 2011, the Company acquired inventory and fixed assets from Binary Engineering Pty. Ltd.

Top 10 Energy Stocks To Buy For 2014: Petrotech Oil & Gas Inc (PTOG)

PetroTech Oil and Gas, Inc., formerly Unity Management Group, Inc., incorporated on April 10, 1998, operates and develops Enhanced Oil Recovery (EOR) opportunities within qualifying oil reservoirs in the United States using its Enhanced Oil Recovery method and technique. The company is also a construction and heavy equipment company. The Company is focussing on developing and acquisitions of technology in secondary oil recovery, oil and gas reporting software, trading software and Nitrogen and CO2 injection equipment. Enhanced oil recovery is also called improved oil recovery or tertiary recovery. The Company�� services include Work over and Installation Services, Heavy Equipment Services, Nitrogen, CO2 and Gas Mixture Treatments, Exhaust Gas Unit, Gas Assisted Gravity Drainage and Reservoir Development. During the year ended December 31, 2012, the Company acquired On Track Technology, Inc. On June 30, 2012, the Company acquired Metropolitan Computing Corp.

Work over and Installation Services

Drilling Vertical or Horizontal Well Supervision, Traditional Work over, Oilfield Work Over Rigs and Roustabout Services to be on location while recompletion, plugging or equipping of wells for in house leases and third party jobs as well. Where applicable Petrotech will utilize flexible Poly Urethane tubing for testing of wells and permanent installs for some shallow depths. The flexible tubing has a Paraffin�� and Asphalt Ines don�� stick to flexible tubing (as it does to steel tubing); and flexible tubing has an estimated 10 times longer life dependent upon the corrosiveness of production and by products, such as the water produced with hydrocarbons.

Heavy Equipment Services

Heavy Equipment Services includes heavy equipment, oilfield roustabout, crane work, water hauling, setting pumping units, separators, tanks, digging pitts and locations roads and heavy equipment services also includes highways for in house leases, third party oil companies and loca! l and government agencies.

Nitrogen, CO2 and Gas Mixture Treatments

The Company focuses in treating with Nitrogen, CO2 or a combination of the two; through two applications where applicable-Huff and Puff and Steady flooding. In cases, HoCyclic gas injection processes has been primarily restricted to the use of pure CO2 or CO2 that has been slightly contaminated.

Exhaust Gas Unit

The CO2/N2 gas mixture focuses to generated from a patented one-of-a-kind portable exhaust unit capable of producing 2.5 millions of cubic feet equivalent at 2000 psi. The exhaust unit manufacturing facility is capable of building over 100 million of daily of deliverability or 180,000 horse power of equipment per year.

Gas Assisted Gravity Drainage

Natural segregation of its gas mixture at miscibility pressure is a component in recreating a gas cap. Doubling of the primary oil recovery from a reservoir is expected with this EOR method and gas mixture. SPE paper #89357 documents GAGD recoveries averaging 63% of the OOIP.

Reservoir Development

Petrotech Oil and Gas Inc. focuses to use the technology in third dimension geophysics available, drilling and compositional reservoir modeling to devise the reservoir�� development plan. In some reservoirs has two horizontal wellbores; one each for the injection of gas and production of oil.

Top 10 Energy Stocks To Buy For 2014: SilverCrest Mines Inc (SVL)

SilverCrest Mines Inc. (SilverCrest) is engaged in the acquisition, exploration and development of mineral properties in Mexico and Central America. The Company�� principal focus is the development and operation of the Santa Elena Project, which property consists of seven mineral concessions totaling 2,726.54 hectares, portions of which include the producing Santa Elena gold and silver mine located northeast of Hermosillo, Sonora State, Mexico. It operates in three segments: the mine operations at Santa Elena, Mexico; mine exploration and evaluation projects at La Joya and Cruz de Mayo, Mexico, and Corporate. The Company is also focused on exploring and developing its La Joya Property located in Durango, Mexico, which contains a discovered polymetallic deposit. The Company�� other mineral properties include the Cruz de Mayo Project (Mexico), the La Joya Property (Mexico), the Silver Angel Project (Mexico) and the El Zapote Project (El Salvador).

Top 10 Energy Stocks To Buy For 2014: Exxon Mobil Corporation(XOM)

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.

Advisors' Opinion:

• [By Dan Caplinger]

  Energy giants ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) have both declined about half a percent after OPEC announced that it would keep its cap on oil output at its current level of 30 million barrels per day. Yet arguably more important is the cartel's forecasts of a continued fall in demand for OPEC crude, largely owing to the big rise in North American production stemming from unconventional sources like shale plays and Canada's oil sands. For now, at least, OPEC's influence on the overall oil market has diminished significantly, and that's at least some relief for consumers who are already paying more at the pump than they'd like.

• [By WALLSTCHEATSHEET.COM]

  Exxon Mobil is a provider of essential commodity products and services that people and companies use around the world. The company�sold part of its controversial stake in a massive Iraqi oilfield to PetroChina and Indonesia’s Pertamina. The stock has been trading sideways for a couple of years and is currently pulling back from 2013 highs. Over the last four quarters, earnings have been mixed while revenues have been decreasing, which has produced conflicting feelings among investors. Relative to its peers and sector, Exxon Mobil has been an average year-to-date performer. WAIT AND SEE what Exxon Mobil does this quarter.

• [By Jon C. Ogg]

  The biggest change was Exxon Mobil Corp. (NYSE: XOM) being added. We had suggested that Team Buffett needed to park its money there if it wanted more oil and gas exposure. After all, this is the second most valuable company out there and much larger than Berkshire Hathaway itself. This stake was valued at close to $3.3 billion at the end of the quarter.

Top 10 Energy Stocks To Buy For 2014: WaterFurnace Renewable Energy Inc (WFIFF)

WaterFurnace Renewable Energy, Inc. specializes in the design, manufacture and distribution of geothermal and water-source systems. It�� the United States subsidiary companies are WaterFurnace International, Inc. (WaterFurnace) and LoopMaster International, Inc. (LoopMaster). In December 2010, it incorporated two Australian subsidiaries: WaterFurnace International Asia Pacific Pty. Ltd. (WaterFurnace Asia Pacific) and Hyper WFI Pty. Ltd. (Hyper WFI). WaterFurnace designs, manufactures and distributes geothermal water source heating and cooling systems for residential, commercial and institutional buildings. LoopMaster installs geothermal loops for residential applications, does commercial conductivity testing and provides design and installation assistance. Hyper WFI designs, develops and builds devices that limit the inrush current, which electric motors draw upon start up. On January 21, 2011, the Company acquired inventory and fixed assets from Binary Engineering Pty. Ltd.

Top 10 Energy Stocks To Buy For 2014: Far Vista Petroleum Corp (FVSTA)

Far Vista Petroleum Corp, formerly Far Vista Interactive Corp, incorporated on January 14, 1988, is a development-stage company. The Company focuses to reflect its business ventures in the oil and gas business. In July 2013, the Company acquired CJSC Chedty Neft.

As of May 29, 2013, the Company had not commenced its principal operations. The Company was engaged in the business of the development, distribution, marketing and sale of video game software products and online video games.

Google shares soar past $1,000

Click the chart for more on Google's stock

NEW YORK (CNNMoney) Google shares soared above $1,000 a share early Friday as investors cheered the company's latest quarterly report.

The stock surged 13% and rose as high as $1,007 a share, well above the stock's previous all-time high of $928 set in July. Shares pulled back later in the morning to trade near $998.

Late Thursday, Google (GOOG, Fortune 500) reported earnings and revenue that blew past investors' expectations, driven by strength in the company's core search business.

The stock could head even higher, according to a raft of analyst reports published Friday.

Deutsche Bank was one of the most bullish, raising its price target for Google to $1,220 from $970.

Hot Performing Companies To Watch For 2014

Credit Suisse hiked its price target to $1,200 and Jefferies now thinks Google can hit $1,150 at some point over the next year.

Shares of Google are now up more than 40% this year. Amazingly enough, the stock has lagged the performance of two key rivals in 2013: Yahoo (YHOO, Fortune 500) is up nearly 70% while Facebook (FB, Fortune 500) has more than doubled.

Google is the second blue chip tech company to recently top $1,000 a share. Online travel site Priceline (PCLN, Fortune 500) became the first S&P 500 company to hit a four-digit stock price last month. Its stock is currently hovering around $1,050.

At $1,000 a share, Google is trading at about 19 times 2014 earnings estimates. But those estimates are likely to be raised in light of the company's recent results. Deutsche Bank, for example, hiked their full-year earnings outlook to $54.30 a share. The current consensus is for Google to earn about $51 a share.

By comparison, Yahoo currently trades at nearly 20 times next year's earnings estimates, even though it's still a turnaround story. Facebook, which is growing more rapidly than Google, is trading at nearly 55 times earnings forecasts for 2014.

Analysts pointed to a number of factors behind their rosy outlook, including revenue from Google's "enhanced campaigns," which help marketers more easily run targeted ads on both desktop and mobile. YouTube in particular is expected to benefit from a shift in ad dollars aw! ay from traditional television.

Google is not alone in its quest to make more money off of mobile advertising. It's a main focus for Yahoo and Facebook as well. And Twitter, which will soon go public, is expected to be a force to be reckoned with in mobile ad sales too.

Still, even though mobile Internet usage continues to grow, advertisers won't pay as much for mobile ads as they do for desktop ones. So even as the number of ads clicked on Google properties increases, the company is commanding less money on average for each of those clicks.

But analysts seem to believe that Google's dominance of search and its established advertising business give it an advantage over rivals. Google should also benefit next year from expanding profit margins.

However, Google still faces challenges in its Motorola business.

Meanwhile, the Motorola business shows few signs of a turnaround yet. It lost $248 million in the third quarter.

-- CNNMoney's Julianne Pepitone contributed to this report.

5 Big Trades for Year-End Gains

BALTIMORE (Stockpickr) -- After a strong day of selling yesterday, the S&P 500 is down a "whopping" 1.3% in December. Not quite the bloodbath for stocks that it's been made out to be.

So even though stocks are pointed slightly lower this morning, it's a little premature to start panicking about the staying power of this rally.

Despite a fairly flat start to the month, history typically sits on the side of the bulls in December. In fact, it's worth noting that it's been more than five decades since a rally has ended during the final month of the calendar year. And sure enough, we're seeing some big trading opportunities starting to perk up in some of the most actively traded stocks on Wall Street. That's why we're taking a technical look at five big-name trades to take this week.

If you're new to technical analysis, here's the executive summary.

Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.

PVH

Large-cap apparel stock PVH (PVH) is a perfect case in point. While PVH's 18% rally would be stellar performance during a normal year, 2013 has been anything but normal for stock investors, so shares have actually underperformed the broad market by 8.3% since the calendar flipped over to January. But the price action in PVH points to shares making up the difference.

PVH is currently forming a cup and handle pattern, a classic bullish price setup that's formed by a cup-shaped rounding bottom in shares that's followed up by a short-duration channel down. The buy signal comes on a move through the pattern's price ceiling at $135. Since PVH is testing that $135 resistance level this week, we could see a buy signal in PVH sooner rather than later.

LKQ is currently forming a rectangle pattern, a consolidation setup that's formed by a horizontal resistance level above shares at $34 and horizontal support at $31. The rectangle gets its name because it basically "boxes in" shares of a stock -- the break outside of the box is the trade to take. So if LKQ pushes above $34, then it's time to buy.

Even though consolidation setups -- such as the rectangle in LKQ -- move price action sideways, they come with directional bias in tow. Since LKQ's price action leading up to the rectangle was bullish, it's more likely to break out from the setup to the upside. While it's close now, it doesn't become a high-probability trade until $34 gets taken out.

Discover Financial Services

You don't have to be an expert technical analyst to figure out what's going on in shares of Discover Financial Services (DFS). This payment network is showing off some pretty basic technical price action. DFS is currently trading higher in an uptrending channel, a setup formed by a pair of parallel trend lines. When it comes to price channels, up is good and down is bad; it's as simple as that.

For Discover, trend line support has spurred a price bounce in each of the last seven times it's been tested. With shares coming down for test number eight, it's likely we'll see another trend line bounce in December. That bounce is when you want to be a buyer -- not before.

Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, we're ensuring Discover can actually still catch a bid along that line.

Mylan

We're seeing the exact same price setup in shares of Mylan (MYL) right now. MYL has been one of the best-in-breed pharma stocks over the course of 2013, rallying more than 50% between January's first open and yesterday's close, and with shares approaching trendline support again, this stock looks primed for a bounce.

Mylan's channel has provided a high-probability range for this stock's price action all the way since the summer. In fact, it's been more than high-probability; it's been textbook over that time.

The 50-day moving average has been a stellar proxy for support all the way up Mylan's channel, so it's the perfect place to put a protective stop after the bounce in shares. Relative strength continues to be outsized in MYL right now – that means that this stock is statistically more likely to continue to beat the S&P 500 for the next 10 months. Wait for the bounce off of support before you buy...

Berkshire Hathaway

Not all of the names we're looking at today are bullish. Sorry Warren, but Berkshire Hathaway (BRK.B) is starting to look toppy right now.

Berkshire has been forming a long-term descending triangle for the last six months now. The descending triangle is formed by a downtrending resistance level above shares and a horizontal support level to the downside. Basically, as Berkshire bounces in between those two technically-important prices, it's getting squeezed closer and closer to a breakdown below support at $111. When that happens, it's time to be a seller.

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

 

Advisors’ Biggest Retirement Blind Spot May Be Their Own

First, the bad news. Fifty percent of financial advisors do not have a written business plan, 46% do not have their own retirement plan for themselves (despite 40% saying they plan to retire within the next 14 years), only 25% have a succession plan in place, and only 25% have a formal definition of their ideal client. When asked “What do you plan to do with your business/clients when you retire?” 17% answered “I don’t know.”

Now, the good news. Of those advisors under 40, 61% say they have a written business plan. The larger the firm, the more likely it is to have one. There is also a clear “professionalization” trend within the advisor industry, with more non-advisor managers in place to run the business, and advisors are doing a good job of meeting their clients’ needs.

The news arises from the Financial Planning Association’s inaugural study, “The Future of Practice Management,” sponsored by the FPA’s new Research and Practice Institute, and executed by Advisor Impact, the research firm run by Julie Littlechild, who provided some of the color in the comments above.

Advisor Impact is partnering with the FPA Institute on this study and a series of additional reports throughout 2014.

The Future study was based on an October online survey of 2,376 respondents who spent an average of 27 minutes to complete the survey. Of those respondents, 1,954 were advisors, drawn, Littlechild said, from all advisor channels — RIAs (23% of all respondents), wirehouse brokers (15%), independent and regional broker-dealers (29%), 13% insurance BD reps and 10% dually registered advisors. By design, 422 of the total respondents included junior advisors (those under 40), support staff and non-advisor management. Only about 30% of the respondents were FPA members, but 39% were CFPs. 

5 Best Tech Stocks To Buy Right Now

Valerie Porter, the FPA’s Director of Practitioner Services and herself a CFP with her own practice near Indianapolis, said the inaugural study was meant to “identify some of the key areas where advisors need guidance,” and explained that the quarterly studies that will be issued throughout 2014 “will focus on some of those issues, and then tailor resources at FPA to meet those needs.”

In addition to helping FPA’s members — for example, “if we find that many advisors don’t have a business plan, FPA can make templates available” to members and hold sessions on how to write a business plan — it will also benefit consumers.

One of the major issues identified in the study was advisors’ struggle with time management, which Porter said she understood well. “There are lots of demand on our time,” she said, and the work that advisors do on behalf of clients “can be very taxing” since “money is a very emotional subject.”

In fact, the next topic in the Institute’s series of reports, Porter said, will revolve around productivity: “It’s all about efficiency, about time management, about knowing who your ideal client is and what your goals are.”

The study is designed to give advisors the tools to build and improve their businesses and to develop a robust practice management model. That process starts with setting personal goals, which drive business and succession goals.

“You have to start with your goals,” Littlechild says, but the study showed “that there’s clearly some weakness” among advisors who have failed to write business and succession plans.

Porter voiced surprise at “the number of advisors who don’t have their own retirement plan,” and called the lack of business planning “disappointing.” As for the study’s findings that many advisors haven’t clearly identified their ideal clients, Porter said it was an important topic since figuring out “who you want to work with, and who you can serve well” leads you to become “an expert in working with that kind of client.”

When you do become an expert, she says, those clients “refer you to other people like themselves,” so that “the whole issue of referrals becomes a nonissue.” For the advisor personally, she says that “when you get someone you genuinely like to work with, your satisfaction levels rise, and people want to work with you” as well.

As for the good news on the profession, Littlechild said that based on “other research we’ve done, advisors by and large are doing really good work for clients,” and that there is a “professionalizing of the industry” occurring, marked by “more non-advisor management coming into firms, which will influence training.”

With the inaugural study and the follow-ups, “we’re talking about making the business side better.”

A High-Yield Blue Chip on the Pink Sheets?

For many, stocks listed on the "Pink Sheets" are to be avoided, as it regarded as the province of thinly-traded, poorly capitalized firms that could not qualify to be listed on "The Big Board" or other, more reputable exchanges.

While that sadly can be the case, there are many blue chips listed on the PInk Sheets that compare with the finest on The New York Stock Exchange or NASDAQ.

One example is Swisscom (OTC: SCMWY), a $26 billion major communications conglomerate operating from Switzerland that compares favorably with AT&T (NYSE: T), Verizon (NYSE: VZ) and Frontier Communications (NASDAQ: FTR).

Many foreign blue chips like Swisscom choose to list on the Pink Sheets, as it benefits its shareholders more. The listing requirements for other exchanges might not be in the best interests of the company. Expenses might be too high. There are also legal matters to consider.

All of that has nothing to do with the suitability of Swisscom, which provides telecommunication services in Switzerland and Italy, and many others on the Pink Sheets, as long-term investments.

Traditionally, phone companies are looked upon as income vehicles. Swisscom certainly answers that call. While the dividend yield for the average member of the Standard & Poor's 500 Index is around 1.9 percent, it is 4.60 percent for Swisscom. For Verizon Communications, it is 4.16 percent.

Swisscom also has a more responsible dividend structure, too.

The dividend for each share is $2.34; with earnings-per-share being $3.45. That is easily affordable for Swisscom.

For Frontier Communications, the dividend per share is $0.10. But only $0.07 is earned per share. Paying more in dividends than is earned per share certainly does not appear to be a sound, long-term policy.

Swisscom also has the low beta that research has proven to be an indicator for superior returns.

As detailed in a previous article on Benzinga, studies by Russell Investments showed superior returns over the long term come from stocks with betas below the market average of one. That makes sense as there is no reason to sell a stock that is performing well, so the beta will be lower as there is not as much activity as those dumping to exit a losing position.

The beta for Swisscom is 0.44. For Frontier Communications, it is 0.70. The beta for AT&T is 0.54. Verizon Communications has a beta of 0.44.

At around $51 a share, Swisscom is near its high for the year. With a low beta, it does not fluctuate much in price. But with its high dividend yield, it should be a rewarding holding for long term investors, something not generally associated with Pink Sheet stocks.

Posted-In: blue chips Pink SheetsLong Ideas News Dividends Dividends Eurozone Technicals Economics Markets Trading Ideas

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

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Stocks: Where to make money in 2014

NEW YORK (Money Magazine) In Money magazine's Make More in 2014, you'll find next year's economic outlook, where to find opportunities in stocks and bonds, the best moves for homebuyers, sellers and owners, and strategies for boosting your career. This installment: Tips on investing in stocks next year.

While housing and jobs improve as the economy gets going, equities move in anticipation of better times to come. For proof, see the double-digit gains the S&P 500 posted this year.

The "strengthening economy" theme, though, is already played out. Standard & Poor's says that U.S. shares are likely to keep climbing, but only by a modest 7% or so by late 2014.

Why? Valuations "are definitely not compelling," says Sam Stovall, chief equity strategist for S&P Capital IQ. The price/earnings ratio for equities jumped from a not-exactly-cheap 19 in January to 22, based on five years of average profits.

A rising P/E reflects higher expectations. Investors are paying more for stocks because they think earnings will grow even faster. To make money in this market, your stocks have to deliver profits. Or you must go with cheaper shares that have a greater margin for error.

THE STRATEGY: Add a foreign accent

In an increasingly expensive market, look for bargains. U.S. and international equities used to trade at similar levels, but today overseas stocks are about 20% cheaper based on five-year average profits. Says Paul Zemsky, chief investment officer for multi-asset strategies at ING Investment Management: "Europe is just beginning its recovery and is a lot less expensive than the U.S."

YOUR BEST MOVE

Boost your bet on Europe. Zemsky recommends increasing your foreign-equity stake by five to 10 percentage points. So if you normally keep 25% of your stock portfolio abroad, sell some of! your domestic holdings, which have had a remarkable five-year run, and raise your foreign weighting up to 35%.

You can use MONEY 70 pick Dodge & Cox International (DODFX) (Avg. P/E: 14.3), with more than 75% of its assets in Europe. For an even more targeted approach, go with Vanguard FTSE Europe ETF (VGK) (Avg. P/E: 14.2).

THE STRATEGY: Focus on revenue

As the economy accelerates, trim your exposure to defensive areas such as consumer stocks and utilities. Stick instead with sectors likely to see rising global demand, says R.W. Baird strategist William Delwiche.

YOUR BEST MOVES

Think industrials. Greg Thomas -- whose ThomasPartners dividend growth strategy, available through Schwab, beat the S&P 500 over the past decade -- favors global blue chips such as United Technologies (UTX, Fortune 500) (Avg. P/E: 16.5). Top holdings of Industrial Select SPDR ETF (XLI) (Avg. P/E: 17.5) include GE (GE, Fortune 500) and UTX.

Think technology. Business spending is expected to pick up in 2014, says Russell Investments chief economist Mike Dueker. And the productivity-enhancing tech sector will benefit. Jeff Layman, chief investment officer at BKD Wealth Advisors, favors firms such as Cisco Systems (CSCO, Fortune 500) (Avg. P/E: 11.0) that provide infrastructure parts and services, not consumer companies. Cisco, Qualcomm, and Intel are among the top stocks in the Technology Select SPDR ETF (XLK) (Avg. P/E: 15.8).

Top Stocks To Buy For 2014

Make More in 2014

The economy: What's ahead in 2014 Bonds: Tweak your mix in 2014 Real estate: Look for value in in 2014 Jobs: Boost your career in 2014 How 2013 shaped up

Top 5 Penny Companies To Invest In Right Now

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

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

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

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

Top 5 Penny Companies To Invest In Right Now: Books-A-Million Inc.(BAMM)

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

Advisors' Opinion:

• [By John Udovich]

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

Top 5 Penny Companies To Invest In Right Now: Luna Innovations Incorporated(LUNA)

Luna Innovations Incorporated engages in the research, development, and commercialization of technologies in the areas of sensing and instrumentation products, and health care products primarily in the United States. The company?s Product and Licensing segment offers test and measurement products to monitor the integrity of fiber optic network and sub-assemblies. This segment provides Optical Vector Analyzer platform, a device for single-measurement, all-parameter analysis of fiber optic components and assemblies up to 150 meters in length; Optical Backscatter Reflectometer, a sensitive diagnostic device, for data and telecommunications companies, and service providers who maintain their own fiber optic networks; and Phoenix laser, a MEMs-based external cavity laser, that offers low noise and precise tuning capability over the C-band. It also offers distributed sensing systems, which comprise multiple sensors whose input is integrated through a fiber optic network and soft ware to detect distributed strain, shape, and temperature; and tunable lasers. In addition, this segment provides health care products, including medical devices for minimally invasive diagnostics, surgery, and therapy; non-invasive monitoring and diagnosis medical devices consisting of emboli detection and classification QUANTIFIER, a non-invasive medical device, that uses quantitative ultrasound technology to count emboli in ex-vivo blood circuit; and nanomaterial-based medical products comprising Trimetasphere nanomaterials. The company?s Technology Development segment provides contract research services to universities, government entities, and corporations. Luna Innovations Incorporated offers its services to energy, telecommunications, life sciences, and defense industries .The company was incorporated in 1990 and is headquartered in Roanoke, Virginia.

Advisors' Opinion:

• [By Rich Smith]

  Shares of microcap fiber optic test and measurement sensor-maker Luna Innovations (NASDAQ: LUNA  ) surged as much as 85% in Monday trading before finally settling down to book a 41% gain for the day. The catalyst: The company announced that it had extended its multiyear agreement to develop and supply "high-speed shape-sensing technology" to robotic surgery giant Intuitive Surgical (NASDAQ: ISRG  ) for use in its da Vinci surgical robots.

Top Value Companies To Own For 2014: Aerosonic Corporation(AIM)

Aerosonic Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of aircraft instruments worldwide. It offers mechanical and digital altimeters, airspeed indicators, rate of climb indicators, microprocessor controlled air data test sets, and other flight instruments. The company also produces mechanical and electro-mechanical cockpit instruments, angle of attack stall warning systems, digital cockpit instruments, integrated flight display systems, aircraft sensors and monitoring systems, and integrated multifunction probes, such as integrated air data sensors. It markets its products to manufacturers of corporate and private jets, contractors of military jets, the United States government, and private aircraft owners. The company sells its products directly through its sales personnel, as well as through distributors and commissioned sales representatives who resell to aircraft operators. Aerosonic Corporation was founded in 1953 and is b ased in Clearwater, Florida.

Advisors' Opinion:

• [By Katia Dmitrieva]

  Aimia (AIM) Inc.�� decision to move its Aeroplan reward-partnership to Toronto-Dominion (TD) Bank is a blow to Canadian Imperial Bank of Commerce, which stands to lose customers and as much as C$3 billion ($2.9 billion) in credit-card balances.

Top 5 Penny Companies To Invest In Right Now: Micron Technology Inc.(MU)

Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM. The company also offers NAND flash memory products, which are electrically re-writeable and non-volatile semiconductor devices that retain content when power is turned off. In addition, it provides NOR flash memory products that are electrically re-writeable and non-volatile semiconductor memory devices; phase change memory products; and image sensor products. Micron Technology?s products are used in a range of electronic applications, including personal computers, workstations, network servers, mobile phones, flash memory cards, USB storage devices, digital still c ameras, MP3/4 players, and in automotive applications. It sells its products to original equipment manufacturers and retailers through internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel. The company was founded in 1978 and is headquartered in Boise, Idaho.

Advisors' Opinion:

• [By Jonas Elmerraji]

  As impressive as T-Mobile's rally has been in 2013, it doesn't hold a candle to the momentum in shares of Micron Technology (MU) this year: since the calendar flipped over to January, Micron's share price has exploded by 207%. And with the way this stock is positioned right now, it's not too late to take the reins in Micron.

  Micron is a computer memory maker that until recently was best known for manufacturing RAM for PCs. But the company has spent the last several years building its flash memory business, a switch that exposes Micron to a far more lucrative niche. Flash memory is a supply constrained business -- it's costly for newcomers to try to ramp up production, and the surge mobile device purchases has driven demand for NAND flash memory through the roof. That's helped Micron collect heftier prices and deeper margins for its efforts.

  Most of Micron's flash memory customers are original equipment manufacturers, not consumers. Those OEM connections are a big advantage because they keep sales efforts minimal. Instead, the firm just needs to keep creating flash technology that device makers want. The increasing use of flash memory in enterprise settings (such as servers) is another big trend that's helped to propel Micron's share price in 2013.

• [By Andrew Tonner]

  It's been a wild ride for shares of Micron Technology (NASDAQ: MU  ) lately -- its shares doubled over the last year alone. Clearly the company's turnaround efforts have taken root, and the market's�handsomely rewarded those brave enough to buy into this recovery story. And while that's all well and good, what about the investor looking at Micron's shares today? Is there more upside to be had, or have we seen the end of Micron's rebound? In this edition of our Ask a Fool series, Fool contributor Andrew Tonner gives his take on the current state of affairs at Micron and if it's still worth a look today.

Top 5 Penny Companies To Invest In Right Now: Sparton Corporation(SPA)

Sparton Corporation, together with its subsidiaries, offers electronic manufacturing services primarily for medical device, defense and security systems, and electronic manufacturing services industries worldwide. The company?s Medical segment engages in the contract development, design, production, and distribution of medical related electromechanical devices for the medical OEM and ET customers primarily in the vitro diagnostic and therapeutic device areas. Its EMS segment involves in the contract manufacturing, assembly, design, preproduction, prototyping, and/or box building assemblies, such as flight control systems and fuel control systems for the aerospace, medical diagnostics systems, security systems, detection systems, lighting, and defense. The company?s DSS segment engages in the design, development, and production of electromechanical equipment, such as sonobuoys, an anti-submarine warfare device used by the United States Navy and foreign governments; and perf orms an engineering development function for the United States military and prime defense contractors on advanced technologies for defense products, and replacement of current systems. It also offers non-sonobuoy related manufacturing and services. Sparton Corporation was founded in 1900 and is headquartered in Schaumburg, Illinois.

Advisors' Opinion:

• [By Jasmine Ng]

  Futures (SPA) on the Standard & Poor�� 500 Index lost 0.3 percent today. The U.S. equities benchmark index dropped 0.3 percent yesterday amid data that showed manufacturing unexpectedly climbed last month and retail spending fell on the weekend after Thanksgiving for the first time since 2009.

• [By Seth Jayson]

  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 Sparton (NYSE: SPA  ) , whose recent revenue and earnings are plotted below.

• [By Emma O��rien]

  Futures (SPA) on the Standard & Poor�� 500 Index fell and the yen climbed against the dollar as U.S. lawmakers continued to scrap over raising the debt limit and the government shutdown. Crude oil declined while gold rallied.

• [By Louis Navellier]

  Sparton Corporation (SPA) provides electromechanical systems and operates in three segments: medical devices, complex systems and defense and security systems. The medical devices segment makes devices used in diagnostic, therapeutic, surgical, and laboratory applications. Complex devices makes printed circuit assemblies used in military, aerospace, industrial and commercial OEMs, while the defense and security segment designs products for defense applications.