10 Best Supermarket Stocks To Invest In 2015

10 Best Supermarket Stocks To Invest In 2015: Advanced Semiconductor Engineering Inc (ASX)

Advanced Semiconductor Engineering, Inc. is principally engaged in the manufacture, assembly, processing, testing and distribution of integrated circuits (ICs). The Company provides semiconductor packaging and testing services, including plastic leaded chip carriers (PLCCs), quad flat packages (QFPs) and flip chip packaging technology, among others, which are applied in the manufacture of household electrical appliances, communication devices, automobile components, personal computers, set top boxes, servers, memory integrated circuits (ICs), mobile phones, digital cameras, game consoles, projectors, high definition (HD) televisions, wireless communication network products and power management ICs, among others. The Company operates its businesses primarily in Taiwan, Europe and the Americas. In August 2010, the Company acquired a 100% interest in EEMS Test Singapore.

The Company is focused on packaging and testing logic semiconductors. The Company offers its customers turnkey services, which consist of packaging, testing and direct shipment of semiconductors to end users designated by its customers. The Companys global base of over 200 customers includes semiconductor companies across a range of end use applications, including Altera Corporation, ATI Technologies, Inc., Broadcom Corporation, Cambridge Silicon Radio Limited and Microsoft Corporation. During the year ended December 31, 2008, the Companys packaging revenues accounted for 77.7% of its net revenues and its testing revenues accounted for 20.1% of its net revenues.

Packaging Services

The Company offers a range of package types to meet the requirements of its customers, with a focus on packaging solutions. Within its portfolio of package types, the Company focuses on the packaging of semiconductors. These include advanced leadframe-based package types, such as quad flat package, thin quad flat packag! e, bump chip carrier and quad flat no -lead package, and package types based on substrates, such a! s flip-chip ball grid array (BGA) and other BGA types, as well as other packages, such as wafer-bumping products. Leadframe-based packages are packaged by connecting the die, using wire bonders, to the leadframe with gold wire. The Companys leadframe-based packages include quad flat package (QFP)/ thin quad flat package (TQFP), quad flat no-lead package (QFN)/microchip carrier (MCC), advanced quad flat no-lead package (AQFN), bump chip carrier (BCC), small outline plastic package (SOP)/thin small outline plastic package (TSOP), small outline plastic j-bend package (SOJ), plastic leaded chip carrier (PLCC) and plastic dual in-line package (PDIP). Substrate-based packages employ the BGA design, which utilizes a substrate rather than a leadframe. It also assembles system-in-a-package products, which involve the integration of more than one chip into the same package. The Companys substrate-based packages include Plastic BGA, Cavity Down BGA, Stacked-Die BGA, Flip-Chip BGA and land grid array (LGA).

The Companys wafer-level packaging products include wafer level chip scale package (aCSP) and advanced wafer level package (aWLP). The Company offers module assembly services, which combine one or more packaged semiconductors with other components in an integrated module to enable functionality, typically using surface mount technology (SMT) machines and other machinery and equipment for system-level assembly. End use applications for modules include cellular phones, personal digital assistant (PDAs), wireless local area network (LAN) applications, bluetooth applications, camera modules, automotive applications and toys.

The Company provides module assembly services primarily at its facilities in Korea for radio frequency and power amplifier modules used in wireless communications and automotive applications. Interconnect materials connect the input/output on the semiconductor dies t! o the pri! nted circuit board. Interc onnect materials include substrate, which is a multi-layer m! iniature ! printed circuit board. The Company produces substrates for use in its packaging operations.

Testing Services

The Company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, final testing of logic/mixed-signal/radio frequency (RF) and memory semiconductors and other test-related services. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis. The Company provides final testing services for a variety of memory products, such as static random access memory (SRAM), dynamic random access memory (DRAM), single-bit erasable programmable read-only memory semiconductors and flash memory semiconductors.

The Company provides a range of additional test-related services, including burn-in testing, module sip testing, dry pack, tape and reel, and electric interface board and mec hanical test tool design. The Company offers drop shipment services for shipment of semiconductors directly to end users designated by its customers.

Advisors' Opinion:

• [By Seth Jayson]

  Advanced Semiconductor Engineering (NYSE: ASX  ) is expected to report Q2 earnings around July 7. Here's what Wall Street wants to see:

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-supermarket-stocks-to-invest-in-2015.html

Top Wireless Telecom Stocks To Watch For 2015

Top Wireless Telecom Stocks To Watch For 2015: KDDI Corp (KDDIF)

KDDI CORPORATION is a telecommunications company. The Mobile Telecommunication segment is engaged in the provision of mobile communications services, including voice and data services, and mobile WIMAX services, as well as the sale of mobile communication terminals and the provision of contents. The Fixed-line Telecommunication segment provides broadband services, including fiber to the home (FTTH) and cable television (TV) services, as well as domestic and overseas communication services, data center services and information and communication technology (ICT) solution services. The Others segment is involved in the operation of call centers and the development of research and advanced technology. On December 2, 2013, it transferred all shares of a wholly owned subsidiary, JAPAN CABLE NET LIMITED to another subsidiary. In December 2013, the Company acquired the entire share capital in Yugen Kaisha Cosmos. Advisors' Opinion:

• [By Daniel Inman]

  In Tokyo, KDDI (JP:9433) (KDDIF) gained 0.6% after the telecommunications company reported a record-high and consensus-beating operating profit for the first half of the fiscal year, due to a stronger-than-expected increase in subscription and a rise in usage revenue.

• [By Daniel Inman]

  In Tokyo, telecoms firm KDDI Corp. (JP:9433) (KDDIF) rose 2% after a Nikkei report said that the firm will likely report a record first-half group operating profit, with a 50% on-year increase. TDK Corp. (JP:6762) (TTDKF) , however, dropped 0.2% after a separate Nikkei report ! said that the electronics-component producer will report an 8% increase in operating profit over the same period.

• [By MARKETWATCH]

  LOS ANGELES (MarketWatch) -- With the yen holding on to its gains and investors cautious as earnings season kicks off, Japanese stocks slid lower Friday after closing the previous day with some late-session gains. The Nikkei Stock Average (JP:NIK) fell 0.9% to 14,358.28, with the Topix down 0.8%, as the dollar bought 97.36 yen, little changed from 24 hours earlier. The relatively strong yen weighed on some names with high global exposure, as Sharp Corp. (JP:6753) (SHCAF) lost 1%, Pioneer Corp. (JP:6773) (PNCOF) dropped 1.6%, and Bridgestone Corp. (JP:5108) (BRDCF) fell 1.2%. An outlook cut from Canon Inc. (JP:7751) (CAJ) helped send its shares down 1%, while rival Nikon Corp. (JP:7731) (NINOF) lost 1.8%, though Olympus Corp. (JP:7733) (OCPNF) gained 1%. Telecoms were weak, with Softbank Corp. (JP:9984) (SFTBF) falling 2.5%, KDDI Corp. (JP:9433) (KDDIF) down 1.7%, and NTT DoCoMo Inc. ! (! JP:9437) (NTDMF)

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-wireless-telecom-stocks-to-watch-for-2015.html

Best Transportation Stocks To Buy For 2015

Best Transportation Stocks To Buy For 2015: DryShips Inc (DRYS)

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocea n Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.

As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of fou! r Aframax and on e Suezmax tankers.

The Companys drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk ves sels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.

Drybulk Operations

The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.

Offshore Drilling Operations

In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko! Cote dIv! oire Com pany (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).

The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShipss wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryS hips also has contracts to provide offshore drilling services and drilling units.

Tanker Operations

The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.

Advisors' Opinion:

• [By Jon C. Ogg]

  DryShips Inc. (NASDAQ: DRYS) has been addicted to raising capital via share sales in the past, and shares are facing real pressure on Monday based on yet another stock offering. The shipping player announced on Friday after the closing bell that it entered into an equity offering sales agreement with Evercore Group to sell up to $200 million of common shares in the company.

• [By David Hanson]

  10. DryShips (NASDAQ: DRYS ! ; ) ! Some pundits and investors called Buffett crazy when he plowed over $30 billion into a railroad. Could Buffett further increase Berkshire's exposure to the industrial transportation and logistics business by buying stake in an ocean transporter? Maybe, but it won't be via DryShips. The company has been flailing in the wind since the financial crisis as it has struggled to generate free cash flow. Solvency questions have been raised, and the debt-heavy balance sheet will strike fear into the hearts of equity investors.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/best-transportation-stocks-to-buy-for-2015.html

Top 5 Machinery Stocks To Buy Right Now

Top 5 Machinery Stocks To Buy Right Now: Actuant Corp (ATU)

Actuant Corporation, incorporated on October 26, 1910, is a global diversified company that designs, manufactures and distributes a range of industrial products and systems to various end markets. The Company operates four business segments: Industrial, Energy, Electrical and Engineered Solutions. The Industrial segment is primarily involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets. The Energy segment provides joint integrity products and services, as well as rope and cable solutions to the global oil and gas, power generation and other energy markets. The Electrical segment is primarily involved in the design, manufacture and distribution of a range of electrical products to the retail DIY, wholesale, original equipment manufacturer (OEM), solar, utility, marine and other harsh environment markets. The Engineered Solutions segment provides engineer ed position and motion control systems to OEMs in various on and off-highway vehicle markets, as well as, a range of other products to the industrial and agricultural markets. In August 2013, the Company announced the completion of its acquisition of Viking SeaTech (Viking).

Industrial

The Industrial segment is a global supplier of branded hydraulic and mechanical tools to a broad array of end markets, including general maintenance and repair, industrial, infrastructure and production automation. The Company's primary products include hydraulic tools, engineered heavy lifting solutions, workholding (production automation) solutions and concrete stressing products. These hydraulic and mechanical tools are marketed primarily through the Company's Enerpac, Simplex, Precision Sure-Lock and Milwaukee Cylinder brand names. The high-force hydraulic and mechanical tools, including cylinders, pumps, valves, specialty tools and presses.

The Com pany's hydraulic tools operate at high pressures of approxim! ately 5,000 to 12,000 pounds per square inch and are generally sold by a diverse group of industrial and specialty fluid power distributors to customers in the infrastructure, mining, steel mill, cement, rail, oil and gas and general maintenance industries. Key industrial distributors include W.W. Grainger, Applied Industrial Technologies and MSC. In addition to providing a line of industrial tools, the segment also provides hydraulic systems (integrated solutions) to meet customer specific requirements for safe and precise control of movement and positioning. These customized heavy lifting solutions, which combine hydraulics, steel fabrication and electronic controls with engineering and application knowledge, are typically utilized in major infrastructure projects (bridges, stadiums, tunnels and offshore platforms) for heavy lifting, launching & skidding or synchronous lifting applications.

The Industrial segment has leveraged production and engineering capabi lities to also offer a range of workholding products (work supports, swing cylinders and system components) that are marketed through distributors to the automotive, machine tool and fixture design markets. In addition, the segment designs, manufactures and distributes concrete pre- and post-tensioning products (chucks and wedges, stressing jacks and anchors) which are used by concrete tensioning system designers, fabricators and installers for the residential and commercial construction, railroad, bridge, infrastructure and mining markets.

Energy

The Energy segment provides technical products and services to the global energy markets, where safety, security, reliability and productivity are key value drivers. Products include joint integrity tools and connectors for oil & gas and power generation installations, as well as rope and cable solutions. In addition to these products, the Energy segment also provides manpower services,! includin! g machinin g, engineering and maintenance activities. The products and ! services ! of the Energy segment are distributed and marketed under various brand names (principally Hydratight, D.L. Ricci, Morgrip, Cortland, FibronBX, Puget Sound Rope, Biach, Selantic and Jeyco) to OEMs, maintenance and service organizations and energy producers in emerging and developed countries.

Joint integrity products include hydraulic torque wrenches, bolt tensioners and portable machining equipment. These products are used in the maintenance of bolted joints on oil rigs and platforms, wind turbines, refineries and pipelines, petrochemical installations, as well as fossil fuel and nuclear power plants. The Energy segment also provides rope and cable solutions that maximize performance, safety and efficiency for customers in various markets, including oil and gas, heavy marine, subsea, ROV and seismic. With its global design and manufacturing capabilities the Cortland business is able to provide customized synthetic ropes, heavy lift slings, specialized mooring, r igging and towing systems, electro-optical-mechanical cables and umbilicals to customers, including firms, such as CGG Veritas, Expro and Sercel. These products are utilized in critical applications, often deployed in harsh operating conditions (sub-sea oil & gas production, maintenance and exploration) and are required to meet robust safety standards. In addition custom designed products are also sold into a range of other niche markets including medical, security, aerospace and defense.

Electrical

The Electrical segment is involved in the design, manufacture and distribution of a broad range of electrical products to the retail DIY, OEM, electrical distribution, power transformation and harsh environment electrical markets. The Electrical segment sells its products through a combination of distributors, direct sales personnel and manufacturers' representatives. The Electrical segment provides the retail DIY market wit! h a range! of electrical tools and consumables, such as wire strippers, electrical meters,! connecto! rs, terminals, cable ties, staples and other wire management products and conduit bending equipment under the Gardner Bender, Del City and A.W. Sperry brands. These products are sold to retailers, such as Lowe's, The Home Depot, Menards, True Value and Ace Hardware, as well as numerous electrical distributors and OEM's.

The Electrical segment sells power transformation products in North America, including low voltage, single-phase dry type transformers and custom toroidal transformers under the Acme Electric brand name and high voltage switches under the Turner Electric brand name. These transformers are sold through electrical wholesale distributors, as well as directly to OEMs, such as Rockwell Automation, Eaton, Yaskawa and General Electric. Product offerings also include electrical components and systems for the harsh environment and marine markets under the Ancor, Marinco, Guest, Mastervolt and B.E.P Marine brand names. These products are primarily sold to various customers in the industrial, marine, power generation, industrial and retail markets, including West Marine, Applied Materials and Kohler. Solar products (primarily high efficiency solar inverters for residential and small commercial applications) are sold through local distributors and installers.

Engineered Solutions

The Engineered Solutions segment is a global designer and assembler of customized position and motion control systems and other industrial products to various transportation and other niche markets. This segment focuses on providing technical and engineered products, including actuation systems, mechanical power transmission products, engine air flow management solutions and rugged electronic instrumentation. Products in the Engineered Solutions segment are primarily marketed directly to OEMs through a technical sales organization. Approximately 55% of this segment's revenue comes from ! the vehic! le systems product line (Power -Packer, Gits and Power Gear brands), which is sold to the t! ruck, aut! omotive, off-highway and specialty vehicle markets. Products include hydraulic cab-tilt and latching systems, which are sold to global heavy duty truck OEMs, such as Volvo, Iveco, Scania, Paccar-DAF and CNHTC and electro-hydraulic convertible top latching and actuation systems. The automotive convertible top actuation systems are utilized on both retractable soft and hard top vehicles manufactured by OEMs, such as Daimler, Volkswagen, Renault, Peugeot, BMW, Volvo and Nissan.

The Company's diesel engine air flow solutions, such as exhaust gas recirculation (EGR) systems, are used by diesel engine and turbocharger manufacturers to reduce emissions, improve fuel efficiency and horsepower. Primary end markets include heavy duty truck and off-highway equipment serving customers, such as Caterpillar, Cummins, Honeywell and Borg Warner. It also sells actuation systems to various specialty vehicle OEMs (principally in the defense, recreational vehicle and off-highway ma rkets), such as Oshkosh and Fleetwood.

The Maxima Technologies tuck-in acquisitions of Turotest Medidores Ltda and CrossControl AB, along with the fiscal 2011 acquisition of Weasler Engineering have further diversified the geographic presence, technologies and end markets of the Engineered Solutions segment. The range of products, technologies and engineered solutions of Weasler Engineering, Maxima Technologies, Elliott Manufacturing, Sanlo and Nielsen Sessions comprise the other product line within the segment. Products include severe-duty electronic instrumentation (including displays and clusters, machine controls and sensors), power transmission products (engineered power transmission components, including drive shafts, torque limiters, gearboxes, torsional dampers and flexible shafts), and a comprehensive line of case, container and industrial hardware. These products are sold to a range of niche markets, in! cluding a! gricultural implement, lawn & turf, cons truction, forestry, industrial, aerospace, material handling! and secu! rity.

Advisors' Opinion:

• [By Sally Jones]

  Actuant Corporation (ATU): Reduced

  Up 24% over 12 months, Actuant Corp has a market cap of $2.6 billion; its shares were traded at around $35.61 with a P/E ratio of 1,483.70 and a P/B of 2.50. The dividend yield of ATU is 0.11%.

source from USA Best Stocks:http://www.usabeststocks.com/top-5-machinery-stocks-to-buy-right-now.html

The Tax Rules of Mutual Funds

Mutual funds seem easy, and most investors believe they understand funds. But the income tax rules for funds are more involved than many people realize. Knowing the nuances of the rules is important. Taking different actions or changing their timing could improve your after-tax returns by a significant amount and preserve more of your nest egg.

Let's take a quick trip through some key parts of the tax code to learn ways to increase your after-tax returns from mutual funds. Of course, what we're going to discuss in this visit applies to mutual funds held in taxable accounts, not to funds held in qualified retirement plans, such as 401(k)s, traditional IRAs, and Roth IRAs.

The basic rule to understand is a mutual fund itself generally isn't taxed on its income or gains. To avoid taxes, each year a mutual fund has to pay out and pass through to its shareholders most of its net interest, dividends, and capital gains. You as the shareholder are taxed on your share of these items.

While this rule prevents double taxation of the investment returns, it sometimes causes problems. Your share of the income is determined by your ownership on the day the distribution is made. That results in the inequity of a shareholder purchasing shares of a mutual fund the day before a distribution and being taxed on the full amount of the distribution.

Example. Max Profits buys 1000 shares of a mutual fund on Dec. 29 for $15 per share. On Dec. 30 the fund makes its annual distribution of net capital gains and dividends realized for the year, amounting to $5 per share. This reduces the value of Max's shares by $5. He also has to include the $5 in his income for the year, though in his case it really is a return of his investment.

The first tax rule of mutual funds is don't invest in a fund just before a distribution. Most funds indicate their scheduled distribution dates on their web sites and to anyone who ! calls and asks. You need to be especially wary of making investments near the end of the calendar year and each calendar quarter. Income funds, such as bond funds, tend to make distributions at the end of each month.

When you are caught in this situation, an option is to sell the fund shares right after the distribution. In the example, Max Profits' tax basis in the shares still will be his purchase price of $15 per share, and their net asset value after the distribution will be $10. He can sell right away and have a $5 loss. Of course, this isn't a perfect solution. There might be transaction costs if he invested through a broker, and the fund might have a redemption fee for short-term holders. Plus, there's the value of Max's time.

Also, under the wash sale rules Max can't immediately buy back the fund shares if he wants to deduct the loss. He has to wait more than 30 days. In that time, the fund's share price might have moved significantly higher.

Avoid these problems. Avoid month-end fund purchases and check a fund's distribution schedule before making a purchase.

Buying the wrong mutual funds can prevent you from receiving the full benefit of tax-deferred compounding of investment returns. This is another effect of the way a fund passes through income and gains to shareholders.

Before choosing a fund, you should examine the turnover rate, or the rate at which it buys and sells investments. A fund with 100% turnover sells its entire portfolio and purchases other investments within a year.

The turnover rate is important because a fund distributes only its realized capital gains and other investment income. A stock fund with low turnover buys stocks and holds them for a long time, or at least longer than a year. As the stock appreciates, it is not selling the stock to realize the gains, and doesn't have to distribute its paper gains to shareholders. The fund shareholder can continue to own the fund shares, watch them appreciate, and not have to pay t! axes on t! he gains until he sells the fund shares.

But a fund with high turnover does a lot of buying and selling during the year. It realizes a lot of its capital gains and has to distribute them to shareholders. The share-holders have to include the distributed gains in their income for the year and lose the opportunity to let the gains compound tax-deferred.

Suppose two mutual funds have identical returns over time. But one is a low-turnover fund that makes few distributions to shareholders. The other is a high-turnover fund that distributes over half its annual return to shareholders. After a few years, the shareholders in the low turnover fund will be much better off. Their gains compound without being reduced by taxes each year, and when they sell the fund shares the gains will be taxed at favorable long-term capital gains rates.

Most published mutual fund returns generally are pre-tax. You can find after-tax returns for hypothetical shareholders in a fund's prospectus and in some services and web sites.

There's another downside to high turnover funds. Most of their gains tend to be short-term capital gains, because they held the shares for one year or less. When a mutual fund has long-term capital gains that it distributes, shareholders report these as long-term capital gains on their tax returns. But a fund's distributed short-term capital gains are reported as ordinary income on shareholders' tax returns. They are taxed at the shareholder's maximum marginal tax rate, plus they aren't offset by any capital losses the shareholder has.

The second tax rule of mutual funds is to avoid funds that have high-turnover ratios or a history of distributing a high percentage of their annual returns. If you must purchase such funds, do it through a tax-advantaged account such as an IRA.

For some, the solution is to own only passive or index mutual funds. That's generally a good solution, but it's not fool proof. All index funds are not the same. While Vanguard and ot! her mutua! l fund families work hard to keep expenses very low on their index funds, not all fund companies do. In addition, some funds track indexes not by purchasing the individual stocks but by using futures or options for at least part of their portfolios. These can create less favorable tax consequences.

The third tax rule of mutual funds is to examine index funds just as carefully as active funds before investing. Check expenses, distribution histories, and performance relative to the index. You'll find a surpris-ingly wide variation, especially for indexes other than large company stock indexes such as the S&P 500.

When you're a passive or index fund investor, you also should consider exchange-traded funds as well as traditional open-end mutual funds. Exchange-traded funds are able to use a few tricks to keep their expenses even lower than most open-end mutual funds. In addition, ETFs can use some tax strategies not available to open-end mutual funds.

The fourth tax rule of mutual funds is to compare open-end mutual funds and ETFs when considering an index or passive strategy.

Mutual funds don't pass through their realized losses. When a fund sells an investment at a loss, the loss can offset gains realized during the year and reduce the gains passed through to shareholders. A good fund manager takes this into consideration and will look for losses in its portfolio that can be taken to offset any gains it realizes. When a fund's losses exceed its gains during the year, as happened to most funds during 2008, the losses are carried forward and can offset future gains. That can enhance the attractiveness of a fund that's been down. It might be a value and turnaround opportunity, plus it could have carryforward losses to offset future gains.

The fifth tax rule of mutual funds is to check the prospectus for loss carryforwards.

Reinvesting fund distributions makes life easy, at first, but creates problems later. Shareholders still are taxed on the distributions, e! ven if th! ey don't receive the cash. But that's not the real problem.

Each time a distribution is reinvested, your basis in the new shares is their value on that date. Most people go for years holding a fund and reinvesting distributions. They have a bunch of shares bought at different times and different prices. When they're ready to make partial sales of their holdings to fund retirement, they have a complicated tax picture. They have to determine the tax basis and holding period of the shares sold.

The sixth tax rule of mutual funds is to avoid automatic reinvestment of distributions. Instead, let distributions accumulate in a money market fund. Then, use the account to rebalance your portfolio by purchasing new shares in funds that have lagged the others.

When you sell fund shares you need to know three things: the net sale price, the tax basis, and the holding period. Finding the last two items can be difficult when you've owned a fund for years, made a series of investments, and had distributions reinvested.

The IRS issued regulations in 2008 to make this easier. The fund family or broker has to report your cost basis and whether the gain is long-term or short-term. But the calculations are required only for mutual funds purchased in 2012 and later years. Some funds voluntarily report the amounts for shares purchased in earlier years. Also, the fund family or broker can choose how to compute the cost basis, and most use the average cost method.

But you can choose another method to compute the basis for your sale. For example, you can specifically identify the shares being sold. That allows you to choose the shares that have the highest basis and therefore the lowest capital gain. Or if you have a capital loss, you can choose the shares with the highest capital gain so that it is offset by the loss.

But to change the cost basis that is reported, you have to notify the broker or mutual fund in writing before the sale. The financial firm chooses the format in which y! ou have t! o make the writing. 

The seventh tax rule of mutual funds is to plan your sales. When you're selling a portion of your holdings, you can choose which shares are being sold in order to achieve the best tax results. But you have to work with the broker or mutual fund firm to ensure the firm reports the basis you want.

When the broker or fund issues the Form 1099 after the year, review it carefully right away. Your tax return has to match it. If the form is incorrect, you have to notify the financial firm and have a corrected version issued.

Whole Foods Market, Inc. (WFM): Insider Buy Might Be Early, But Right?

Insiders picked up the pace of buying last week as the number of companies reporting purchases moved north of 200 for the first time in at least a month. Hopefully, the uptick means boardroom confidence for the economy's prospects are on the upswing for the back half of 2014 – fingers crossed for the millions that have given up on finding a job.

While, unfortunately, many good people are losing hope for finding rewarding work, at least one insider at Whole Foods Market, Inc. (NASDAQ:WFM) hasn't given up on the "organic" grocer despite hitting an earnings-driven rough patch.

Whole Foods is a retailer of natural and organic foods. The Company operates in one segment: natural and organic foods supermarkets. As of May 6, 2014, the company operated 374 stores in the United States, Canada, and the United Kingdom.

[Related -Whole Foods Market, Inc. (WFM): Stock Set For Multiple Expansion]

Director, William Tindell purchased 13,256 shares of WFM at $39.41 for a total investment of $522,418. His buy comes on the heels of the stock getting cracked by investors following disappointing profit news. The stock price tumbled from $47.95 one day and $38.93 the next.

What makes the buy interesting is that the Director's only other open market activity was to sell $387,532 of Whole Foods in August 2013. The sale at $55.68 was a bit early as WFM topped out a little more than two months later. It's been mostly downhill since.

Tindell could be early this time around, too, but his previous history of "getting right" has to encourage Whole Foods bulls. If only others would open checkbook, as well.

[Related -Whole Foods Market, Inc. (WFM): 4 Reasons Hedge Fund Billionaires Are Wrong About 62% Gain]

Despite missing the consensus estimate two straight quarters, analysts believe EPS will be up 13% next year on sales growth of 12.70%. Those are solid growth rates and higher than 2014 expectations. The consensus for 2015's top-line is $16.11 billion with a projected $1.74 making it to the bottom line.

The stock will be much higher if Whole Foods trades at its average price-to-sales (P/S) and price-to-earnings (P/) ratios for the last half-decade. Since 2009, investors typically paid 1.12 times sales and 35.42 times earnings.

If WFM trades at its norms based on 2015 consensus sales and EPS outlooks, then shares would price out at $48.58 and $61.63 using the five-year average P/S and P/E ratios, respectively. Tindell might be content with either.

Overall: Whole Foods Market, Inc. (NASDAQ:WFM) offers considerable upside based on its recent P/S and P/E with 2015's projected sales and profits. William Tindell might be early again, but could be looking good in within the next 12-to18 months. 

Boeing 787 Dreamliner in Norway Reports Brake Problem

A Norwegian airlines revealed on Thursday that a newly delivered 787 Dreamliner from Boeing Co. (NYSE: BA) has been parked at Stockholm's Arlanda Airport since Monday as a result of a potential problem with the aircraft's brakes. Norwegian Air Shuttle ASA has ordered total of eight Dreamliners.

The airlines told The Wall Street Journal that technicians were working on the problem and "we hope it will be up in the air pretty soon." An airlines spokesperson said the company has "full confidence" in the Dreamliner and will not change its plans to acquire the new planes.

The Dreamliner has been plagued with a number of issues since its first delivery more than a year ago. The plane's composite body panels had a separation problem and battery issues have led to overheating and fires. This is the first reported problem with the aircraft's brakes.

Boeing's shares closed on Wednesday at $106.37 and are inactive in premarket trading so far Thursday morning. The stock's 52-week range is $69.03 to $109.49.

Hot Oil Service Companies To Buy Right Now

Hot Oil Service Companies To Buy Right Now: Rising India Inc (RSII)

Rising India, Inc., incorporated on April 29, 1998, is a holding company. The Company is engaged in the developing independent living, assisted living and memory center communities. In May of 2013 Rising India, Inc. has acquired ownership of Mayer Luce Corp.

Rising India has researched acquisition and land-banking opportunities throughout Southern California based on new home developers like: D.R. Horton, Lennar, Ryland Homes, Standard Pacific and many others left fully entitled, development projects and planned communities vacant, unsold and basically guarded by private security services. These projects are in demand due to the Baby Boomers.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Drinks Americas Holdings, Ltd (OTCMKTS: DKAM), 7 Star Entertainment Inc (OTCMKTS: SAEE), Rising India Inc (OTCMKTS: RSII) and Big Tree Group Inc (OTCMKTS: BIGG) have all been attracting attention thanks to paid promotions. Of course, there is nothing wrong with properly disclosed and paid for promotions or investor relation activities, but they can backfire on unwary investors and traders alike. So are stock promoters blowing a bunch of hot air regarding these four small cap stocks or are they actually potential winners? Here is a quick reality check to help you decide:

• [By Peter Graham]

  Small cap stocks Rising India Inc (OTCMKTS: RSII), Innocap, Inc (OTCBB: INNO) and Amplitech Group Inc (OTCBB: AMPG) have all been the subject of recent paid for promotions or investor relation campaigns. And while there is nothing wrong with properly disclosed promotions, investors who aren't traders and are looking for a long term investment need to be careful. With that said, do these three small caps have what it takes to succeed for the long haul? Here is a quick reality! check before you jump in:

source from Top Stocks Blog:http://www.topstocksblog.com/hot-oil-service-companies-to-buy-right-now.html

Top 10 Warren Buffett Companies To Invest In Right Now

Top 10 Warren Buffett Companies To Invest In Right Now: Empire S tate Realty Trust Inc (ESRT)

Empire State Realty Trust, Inc., incorporated on July 29, 2011, is a self-administered and self-managed real estate investment trust (REIT), which owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area. The Company operates in two segments: real estate and construction contracting. As of June 30, 2013, the Company owned 12 office properties (including one long-term ground leasehold interest) encompassing approximately 7.7 million rentable square feet of office space, which were approximately 83.5% leased (or 86.2% giving effect to leases signed but not yet commenced as of that date). Seven of these properties are located in the midtown Manhattan market and encompass in the aggregate approximately 5.9 million rentable square feet of office space, including the Empire State Building. Its Manhattan office properties also contain an aggregate of 440,615 rentable square feet of retail space on their ground floor and/or lower levels. Its remaining five office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.8 million rentable square feet.

The Company has entitled land at the Stamford Transportation Center in Stamford, Connecticut, adjacent to one of its office properties, that supports the development of an approximately 380,000 rentable square foot office building and garage, which refers to herein as Metro Tower. As of June 30, 2013, its portfolio also included four standalone retail properties located in Manhattan and two standalone retail properties located in the city center of Westport, Connecticut, encompassing 204,452 rentable square feet in the aggregate. As of June 30, 2013, its standalone retail properties were 1! 00% leased in the aggregate. In addition, the Company has an option to acquire from affiliates of its predecessor two additional Manhattan office prop erties encompassing approximately 1.5 million rentable squar! e feet of office space and 153,209 rentable square feet of retail space at the base of the buildings.

The Empire State Building is the Company's flagship property. The 102-story building consists of 2,701,938 rentable square feet of office space and 167,788 rentable square feet of retail space. The building also includes its observatory and broadcasting operations. The Company's portfolio includes retail properties located in retail corridors in Manhattan and Westport, Connecticut. Tenants at 10 Union Square in Manhattan include Best Buy Mobile, Starbucks, A&P, Panera Bread, FedEx/Kinko's, Au Bon Pain, Chipotle Mexican Grill, and GameStop. In the greater New York metropolitan area, its portfolio includes high quality suburban office properties in densely populated metropolitan communities in Fairfield County, Connecticut and Westchester County, New York. tenants of the greater New York metropolitan area flagship Metro Center (at the Transportation Center i n Stamford, Connecticut) include Thomson Reuters, Jefferies Group, Columbus Circle Investors, Torm Shipping, Olympus Partners, BP Energy, Tweedy, Browne Company and Susquehanna International.

The Company approximately has 242 million square feet of rentable space, which are contained within Midtown's multi-tenant office buildings. Downtown Chicago and the Washington, D.C. CBD combine has a total of 230 million square feet of office space. Three-quarters 75.3% of Midtown's office stock is classified as Class A with total square footage of 182 million square feet. The Company approximately has 43.9 million square feet of Midtown office space is counted as Class B stock, accounting for 18.2% of the total market. The remaining 6.5% of Midtown office space (15.8 million square feet) is categorized as Class C ! space. Th! e Grand Central submarket is a office submarket in Midtown Manhattan with 44 million square feet and is located on the east side of Midtown Manhatta n, to the north of Murray Hill and to the south of the Park ! Avenue co! rridor.

The West Side office submarket, located to the south and west of Central Park and including the area around Columbus Circle, consists of 25.8 million square feet of office space. Westchester County contains approximately 28.9 million square feet of office space and is split into six submarkets: White Plains CBD and non-CBD, Northern, Central, Eastern and Southern. The White Plains CBD is situated in south central Westchester County, along the Cross-Westchester Expressway (Interstate 287) corridor between the Sprain Brook Parkway and the Hutchinson River Parkway. The submarket consists of approximately 6.3 million square feet of office space and is defined to include the area south of Barker Avenue, north of Quinby Avenue, east of the Bronx River Parkway and west of South Broadway/Post Road. Westchester's Eastern office submarket consists of 6.5 million square feet of space and is located to the east of White Plains, between New Rochelle and the Connec ticut state border.

Advisors' Opinion:

• [By Jonas Elmerraji]

   

   

  We're seeing a similar setup in shares of Empire State Realty Trust (ESRT), the $1.5 billion commercial landlord that counts Manhattan's Empire State Building among its 7.7 million leasable square feet of office space. ESRT is a relative newcomer to the public markets, trading for the first time back in October.

   

  But just like PEB, Empire State is forming an ascending triangle setup -- in this case, with the resistance level to watch at $15.50. In fact, that $15.50 level has acted like a ceiling for shares five times now since last December; each of those times, shares have gotten swatted lower. That means that a breakout above $15.50 is a materially significant bu! y trigger! .

   

  When $15.50 does get taken out, I'd recommend keeping a protective stop at the 50-day moving average. That level has been a good proxy for ESRT's support line over the course of the whole pattern.

   

• [By Reuters]

  John Moore/Getty Images NEW YORK -- Investors in the Empire State Building have filed a lawsuit accusing the real estate magnates who took it public of short-changing them $300 million by refusing to sell the iconic skyscraper at a premium price. According to a complaint filed Tuesday in a New York state court in Manhattan, Peter Malkin and his son Anthony put their own interests ahead of the building's investors by spurning all-cash offers of as much as $2.3 billion for the building and $1.4 billion for Empire State Building Associates, which held the title and master lease. Instead, the Malkins put the landmark building and 17 other properties into Empire State Realty Trust Inc., whose Oct. 1 IPO valued the property at just $1.89 billion and ESBA at just $1.1 billion, according to the complaint. The lawsuit by plaintiff Marc Postelnek seeks class-action status on behalf of more than 2,800 investors who hold shares in ESBA, which was created in 1961 and was supervised by a Malkin company, Malkin Holdings. It claimed the Malkins acted in bad faith by aborting a "bidding war" for the building, and instead enriched themselves by hundreds of millions of dollars through an IPO. "Given their positions of control and authority over the fate of the Empire State Building, the Malkins had a duty to act in the best interests of their investors," the plaintiffs' lawyer, John Rizio-Hamilton, a partner at Bernstein Litowitz Berger & Grossmann, representing Postelnek, told Reuters. "By failing to properly consider offers to maximize the building's value, the Malkins breached that duty." The lawsuit seeks to recover profit that building investors allegedly lost because of the Malkins' refusal to sell. Empire State Realty Trust, a real! estate i! nvestment trust, is a successor to Malkin Holdings. "These claims are wholly without merit and we will respond to them in court," a spokeswoman for the REIT said Thursday. ESBA had been created by Lawrence Wien, the father

source from Top Stocks Blog:http://www.topstocksblog.com/top-10-warren-buffett-companies-to-invest-in-right-now-4.html

7 Things I Wish People Knew About 401(k) Plans

Karen Roach/ShutterstockAutomated portfolios are more professional than you may think. Do you have a 401(k) plan? If so, read on. Here are seven things I wish people knew about their 401(k) plans: 1. You can rollover when you leave. When you leave your employer, you can transfer your 401(k) plan to an individual retirement account -- and it is not a taxable event. This type of transfer is called a rollover. Many 401(k) participants think that any type of distribution from their 401(k) plan is taxable and subject to penalties. That isn't true. All plans allow rollovers to an established IRA account. Usually the check is made payable to the new financial institution as the custodian, with an "for benefit of," or FBO, to you. If you have a few 401(k) plans from former employers, I'd advise consolidating them into one IRA account. It will make it far easier to handle address and beneficiary changes, manage investments, and track distributions once you are retired. 2. Automated portfolios work. Most 401(k) plans today offer either a fund choice or an online interactive tool that will make the investment decisions for you. These types of automated portfolios are great choices. If it is a single fund, it may have a retirement year in the name of the fund, such as "Target-date 2030." In that case, pick the fund that corresponds with the approximate year you think you may retire. A single fund like this is a complete diversified investment that automatically allocates your money across many asset classes. If it is an online tool, take the time to walk through the steps and it should pick the portfolio for you. This type of system often results in something like "conservative, moderate, or moderately aggressive" as a result. Using such a tool delivers a complete professionally designed portfolio. These automated portfolios make far better choices than the random way many participants pick investments -- which often seems more akin to "eeny meeny miny moe." 3. Stable value funds are a good choice. As you get closer to retirement, you'll want some of your retirement money in a safe investment option. Stable value funds, which are offered within many 401(k) plans, are a good choice. Today they are paying higher interest rates than bank savings. They won't fluctuate like stock funds, and unlike bond funds, they shouldn't go down in value if interest rates rise. How much should you keep in such a safe choice? It depends on how close you are to retirement and how much you'll need to withdraw. For example, if you are retiring in two years, and know you'll need to withdraw $20,000 a year once retired, you ought to consider moving at least your first two to three years of future withdrawals into a safe investment option. In this example, that would be $40,000 to $60,000. 4. Age 55 is special. Most people think that if they take a withdrawal from a 401(k) plan before age 59½, a 10 percent early withdrawal penalty tax will apply. This isn't always true for 401(k) plans. There is a special provision in 401(k) plans for people who leave their employer after they reach age 55, but before they reach age 59½. This rule allows you to take withdrawals that are exempt from the penalty tax without having to use the substantially equal payment provision. Beware of someone who suggests you roll funds from a 401(k) to an IRA without first explaining the age 55 provision to you. Once you move funds from your 401(k) to your IRA, the age 55 penalty-free withdrawal provision no longer applies, and you'll have to wait until age 59½. 5. You have creditor protection. Your 401(k) plans are creditor-protected by law. This is why it can be foolish to use 401(k) money to avoid foreclosure, pay off debt or start a business. In the case of future bankruptcy, your 401(k) money is a protected asset. Don't touch your 401(k) money except for retirement. 6. Designated Roth accounts are great. More and more 401(k) plans are offering the ability to make Roth contributions. In a 401(k) plan, this is called a designated Roth Account. Such contributions, unlike a regular 401(k) contribution, are not tax-deductible, but they grow tax-free, and in retirement, your withdrawals will be tax-free. There are many people who would be better off making Roth contributions, but they don't consider it because they just assume they are better off getting a deduction today. This is not always true. Check to see if your plan offers a Roth option, and if so talk to your certified public accountant, tax preparer, or other financial adviser to see which choice they think would be best for you. 7. Company stock may have special tax treatment. If your 401(k) plan has an employee stock ownership plan, or ESOP, within it, and you own a lot of company stock, a special tax rule may apply to you. This tax rule is referred to as net unrealized appreciation, or NUA. At retirement, it enables you to distribute company stock and only pay ordinary income tax on the cost basis of the stock. Then, as you sell the stock off, you can typically pay tax on the gain at the capital gains tax rate, which is lower than the ordinary income tax rate. If the NUA tax rule applies to you, that doesn't automatically mean it will be to your benefit. But you ought to at least run an analysis to see if it would save you money. I've seen cases where using the NUA tax rules saved tens of thousands of dollars, and other cases where it offered no meaningful benefit. You won't know unless you look. .

5 Toxic Stocks to Sell Now

BALTIMORE (Stockpickr) -- On the off chance you're just checking in your portfolio after sitting out of the market for the last five months, you haven't missed much.

>>5 Stocks Under $10 Set to Soar

Since the calendar flipped to January, the S&P 500 has climbed a whopping 2.4%. Breakneck gains those aren't, particularly when compared to the nonstop rally of 2013. But even those paltry returns are wishful thinking for most investors; while the big indices are sitting just a few points shy of all-time highs, the average stock in the S&P has pulled back double-digits from their highs.

I'm not exaggerating when I say that the biggest gains this year haven't come from picking the right stocks. They've come from avoiding the wrong ones.

And as summer approaches, a growing list of names is looking very wrong. Today, I'll show you five big "toxic stocks" you need to unload before the next leg down.

>>5 Dividend Stocks Ready to Pay You More in 2014

Just to be clear, the companies I'm talking about today aren't exactly junk. By that, I mean they're not next up in line at bankruptcy court. But that's frankly irrelevant; from a technical analysis standpoint, sellers are shoving around these toxic stocks right now. For that reason, fundamental investors need to decide how long they're willing to take the pain if they want to hold onto these firms in the weeks and months ahead. And for investors looking to buy one of these positions, it makes sense to wait for more favorable technical conditions (and a lower share price) before piling in.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

>>5 Stocks Insiders Love Right Now

So without further ado, let's take a look at five "toxic stocks" you should be unloading.

Lockheed Martin

Up first is defense contracting giant Lockheed Martin (LMT), a $52 billion name that's been rallying hard for the last year. Over the trailing 12 months, Lockheed is up more than 52%. But the buying frenzy in LMT could be coming to an end thanks to a classic reversal pattern that's been forming in shares since the middle of February.

Lockheed Martin is currently forming a double top, a bearish reversal pattern that looks just like it sounds. The double top is formed by a pair of swing highs that max out at approximately the same price level. The sell signal comes when the trough that separates the two highs gets violated. For LMT, that breakdown level is right at $155. If $155 gets taken out, it's time to be a seller.

Momentum, measured by 14-day RSI, provides some foreshadowing for downside in LMT. While price was steady over the two tops in this stock, our momentum gauge failed to do the same. That's a big red flag. Short sellers should keep a protective stop at the 50-day moving average.

Gentex

Mid-cap car component maker Gentex (GNTX) is another name that's looking toxic this week -- only that's nothing new for this stock in 2014. Shares of GNTX have been making their way lower all year, dragged down by weakness in the automotive sector as a whole. But this week, a bearish continuation pattern is pointing to even more downside from here.

GNTX is currently forming a descending triangle, a bearish price setup that's formed by downtrending resistance above shares and horizontal support to the downside at $28.50. Basically, as Gentex bounces in between those two technical levels, shares are getting squeezed closer to a breakdown below that $28.50 price floor; when that happens, we've got our sell signal.

Another indicator, relative strength (not to be confused with RSI), is the side signal that's pointing to downside in GNTX in May. Relative strength has been trending lower since January, indicating that this name isn't just moving lower -- it's also woefully underperforming the broad market in 2014. When $28.50 gets violated, GNTX is a sell.

Thermo Fisher Scientific

You don't have to be an expert technical trader to figure out what's going on in shares of Thermo Fisher Scientific (TMO) -- a quick glance at the chart should tell you just about everything you need to know about where this $46 billion scientific equipment maker is heading in the near-term.

TMO is currently bouncing its way lower in a textbook downtrending channel. The setup is formed by a pair of parallel trend lines: a resistance line above shares, and a support line below them. Those two lines on the chart provide traders with the high-probability range for Thermo Fisher's shares to stay within. When it comes to trend channels, up is good and down is bad; it's really as simple as that. And as shares bounce off of trend line resistance for a sixth time in this short span, it makes sense to sell the bounce.

Waiting for that move down before clicking "sell" is a critical part of risk management, for two big reasons: Ot's the spot where prices are the highest within the channel, and alternatively it's the spot where you'll get the first indication that the downtrend is ending. Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're confirming that sellers are still in control before you unload shares of TMO.

Regions Financial

$14 billion banking stock Regions Financial (RF) is another name that looks toxic to your portfolio in May. Shares of RF have spent the last five months establishing a classical head and shoulders top pattern, an indication that this name could have much lower ground ahead of it. And now, Regions' bears are getting a second chance at a low risk entry to bet against shares.

The head and shoulders pattern is a setup that indicates exhaustion among buyers. The setup is formed by two swing highs that top out at approximately the same level (the shoulders), separated by a higher high (the head). The sell signal comes on a move through RF's neckline, which is currently right above $10. That means that the sell signaled in Regions last week.

Since then, shares of RF have pulled back to re-test newfound resistance at that $10 neckline level. While a pullback might look bullish at first, it's actually quite the opposite -- a bounce lower off of that $10 level in the next few sessions serves as confirmation that sellers still outnumber buyers here. If you're looking to short this name, selling the bounce provides a high reward-to-risk scenario.

Northern Trust

Not surprisingly, we're seeing the exact same setup in shares of another banking name: Northern Trust (NTRS). Like Regions, Northern Trust is currently forming a head and shoulders pattern, but the big difference here is that the setup hasn't triggered yet. For NTRS, the sell signal comes on a breakdown below the stock's $58 neckline.

Why the significance at $58? Whenever you're looking at any technical price pattern, it's critical to keep buyers and sellers in mind. Patterns like head and shoulders setups and double tops are a good way to quickly describe what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That horizontal $58 neckline level in NTRS is the spot where there's previously been an excess of demand for shares; in other words, it's a price where buyers have been more eager to step in and buy shares at a lower price than sellers were to sell. That's what makes a breakdown below support so significant -- the move means that sellers are finally strong enough to absorb all of the excess demand at the at price level.

For the best risk/reward tradeoff, wait for the next move lower before selling Northern Trust.

To see this week's trades in action, check out the Toxic Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

10 Best Construction Stocks To Buy For 2015

>>3 Stocks Spiking on Big Volume

>>5 Airline Stocks to Trade for Flyaway Gains in 2014

>>3 Stocks Under $10 Triggering Breakouts

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

RIAs should be forced to hire outside examiners: Gallagher

Bloomberg News

Securities and Exchange Commission member Daniel Gallagher wants registered investment advisers to be forced to hire third-party contractors to conduct examinations.

In a remarks at the Financial Industry Regulatory Authority Inc.'s annual conference in Washington, Mr. Gallagher recommended that the SEC write a regulation that would require advisers to hire an examiner to review their operations.

The rule would be similar to one the agency adopted in 2009 that forces advisers who maintain custody of client assets to bring in an auditor to verify that the funds are safe.

“How we examine advisers would be the subject of the rule I'm talking about,” Mr. Gallagher told reporters on the sidelines of the Finra conference.

In a Q&A afterward with Finra chairman and chief executive Richard G. Ketchum, Mr. Gallagher said he is worried that the SEC might miss the next huge investor rip-off along the lines of the multibillion-dollar Ponzi scheme perpetrated by Bernard Madoff.

The problem, Mr. Gallagher said, is that the agency lacks the resources to oversee the roughly 11,000 registered investment advisers. The SEC annually examines about 9% of them.

“We have no Rick Ketchum on the adviser side and no SRO,” Mr. Gallagher said. “We are sitting there with our chins out, waiting to get pummeled.”

Finra, the industry-funded broker-dealer regulator, which oversees approximately 4,300 firms, in the past pushed legislation to extend its authority to include investment advisers. It is no longer pursuing such a measure.

Under the rule Mr. Gallagher has in mind, the third-party auditor could be an existing SRO or it could be a private-sector firm. The competition between SROs and other firms would bring prices down, he said.

“That will be a much more competitive and efficient marketplace, I think in particular for the dual-hatted registrants,” Mr. Gallagher said, referring to investment advisers who also are registered as brokers. “They will be inclined to say, 'Let's go with what we know'” and select Finra for examinations.

Mr. Gallagher is one of five SEC commissioners and one of two Republicans on the body. At least three members have to agree to propose a rule.

In 2012, a bill that would establish an SRO to oversee investment advisers died without coming to a committee vote, despite strong Finra support. That measure would have required advisers to register with an SRO.

Congress does not need to weigh in on the rule that he supports, Mr. Gallagher said. The rule would not give the third-party auditor ru! le making or enforcement authority, as the 2012 legislation would have.

Mr. Ketchum applauded Mr. Gallagher's idea as a way to increase oversight of investment advisers.

“This is a creative alternative,” Mr. Ketchum told reporters at a press conference at the Finra meeting. “There's a huge disparity of oversight with regard to investment advisers. It's not an OK environment when you can go decades without being examined. That creates a risk for investors that's not appropriate.”

Best Safest Stocks To Watch Right Now

He was quick to add that Finra has no intention of lobbying to revive a bill that would expand its regulatory reach. He also pointed out that all he knew of Mr. Gallagher's proposal was based on what Mr. Gallagher said in a recent speech and his comments at the Finra meeting.

“This is his proposal, not ours,” Mr. Ketchum said. “It's a decision for the commission to make, not for Finra.”

Getting Ready for the Dicks Sporting Goods (DKS) Earnings Report (BGFV & HIBB)

The Q1 2014 earnings report for Dicks Sporting Goods Inc (NYSE: DKS), a competitor of other sporting goods stocks like Big 5 Sporting Goods Corporation (NASDAQ: BGFV) and Hibbett Sports, Inc (NASDAQ: HIBB), is scheduled for before the market opens on Tuesday, May 20. Aside from the Dicks Sporting Goods's earnings report, it should be said that Big 5 Sporting Goods Corporation reported Q1 2014 earnings on April 29 (earnings were weak and they hinted at continued troubles ahead due the weak sales trends) while Hibbett Sports, Inc will report Q1 2015 earnings before the market opens on Friday, May 23. However, Dicks Sporting Goods is heading into earnings this week with positive coverage form analysts.

What Should You Watch Out for With the Dicks Sporting Goods Inc Earnings Report?

First, here is a quick recap of Dicks Sporting Goods' recent earnings history from Yahoo! Finance:

Earnings HistoryApr 13Jul 13Oct 13Jan 14

EPS Est	0.48	0.74	0.39	1.11
EPS Actual	0.48	0.71	0.40	1.11
Difference	0.00	-0.03	0.01	0.00
Surprise %	0.00%	-4.10%	2.60%	0.00%

 

Back in March, Dicks Sporting Goods reported results that met consensus expectations with the Chairman/CEO commenting:

"We generated strong results in our fourth quarter, with record earnings per share of $1.11, above the upper end of the guidance range we provided in our third quarter press release, as our sales and merchandise margin exceeded our expectations. As we look to 2014, we believe our robust and growing omni-channel network and exciting merchandising opportunities will support double-digit growth in earnings."

This time around and according to the Yahoo! Finance analyst estimates page, the consensus expects revenues of $1.46 billion amd EPS of $0.53 - slightly lower than the consensus EPS of $0.54 expected ninety days ago.

On the news front, Dicks Sporting Goods had plenty of good news from analysts this week as on Wednesday CRT Capital initiated a Buy with a $65 price target on shares while Sterne Agee said the recent sell-off creates a buying opportunity. Moreover, Sterne Agee expects Dicks Sporting Goods' same-store sales to continue to improve because they believe the company is benefiting from strong sales of athletic footwear, active & outdoor apparel, and premium apparel. And last Monday, Credit Suisse began coverage of Dicks Sporting Goods with an Outperform rating and a price target of $65.

What do the Dicks Sporting Goods Inc Charts Say?

Top 10 Growth Companies To Invest In 2015

The latest technical chart for Dicks Sporting Goods shows both a bullish as well as some bearish trend lines:

And a look at the long term performance chart shows that Dicks Sporting Goods and Hibbett Sports have steady performances that mimic each other while Big 5 Sporting Goods Corporation has been all over the place:

Big 5 Sporting Goods Corporation and Hibbett Sports also have rather bearish technical charts:

What Should Be Your Next Move?

Positive analyst coverage can be a double edge sword should Dicks Sporting Goods produce an unexpected miss in the coming earnings report. Nevertheless, the stock has been a steady performance and another good earnings report could bring out more bulls.  

3 Capital Markets Stocks to Sell Now

Popular Posts: 10 Best “Strong Buy” Stocks — EQM DAL ILMN and more13 “Triple A” Stocks to Buy7 Biotechnology Stocks to Buy Now Recent Posts: Biggest Movers in Healthcare Stocks Now – PDLI SIRO THC RDY Biggest Movers in Financial Stocks Now – PVTB BOFI KYE TFSL Biggest Movers in Technology Stocks Now – MENT AUO ULTI CSOD View All Posts

For the current week, the overall ratings of three capital markets stocks are worse, according to the Portfolio Graderdatabase. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

This week, Affiliated Managers Group, Inc. () falls to a D (“sell”), worse than last week’s grade of C (“hold”). Affiliated Managers operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. Shares of the stock have been exchanging at an usually rapid pace, twice the rate of the week prior. The stock has a trailing PE Ratio of 28.60. .

The rating of GFI Group () declines this week from a C to a D. GFI Group provides brokerage services and data and analytics products to institutional clients. The stock also rates an F in Earnings Revisions. .

The rating of Medallion Financial () slips from a C to a D. Medallion Financial is a specialty finance company that originates and services loans financing the purchase of taxicab medallions and related assets. The stock also gets an F in Earnings Surprise. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

U.S. stock futures slip ahead of Home Depot, Staples

LONDON (MarketWatch) — Futures for U.S. stocks lost ground Tuesday, as investors prepared to gauge consumer activity via results coming ahead of Wall Street's open from retailers such as Home Depot Inc. and Staples, Inc..

Speeches by Federal Reserve officials may also guide Wall Street's direction at a time of low volume in the equity market.

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Pimco's Gross told Barron's blogger Michael Aneiro that closed-end muni funds and short-duration junk bonds should do well in a low-return world.

Futures for the S&P 500 index (SPM4) slipped 2 points to 1,880.20, while those for the Dow industrials (DJM4) gave up 10 points to 16,471. Futures for the Nasdaq-100 index (NDM4)  traded 4 points lower at 3,609.25.

The retail sector will be in focus as home-improvement chain Home Depot (HD)  releases financial figures before the market opens. Analysts polled by FactSet are looking for first-quarter earnings to rise to 99 cents a share from a year earlier. Read: For Home Depot's earnings—it's complicated

With results from rival Lowe's Cos. (LOW)  due Wednesday, investors will be interested in commentary from the home-improvement retailers about the state of the U.S. housing sector, said Sheraz Mian, director of research at Zacks, in recent note. "There is growing concern that the housing market has lost some of its recent momentum and that the sector's [first-quarter] weakness may have been more than just weather related."

Analysts are also expecting growth at TJX Cos. (TJX)  , with the clothing and home furnishings seller likely to report first-quarter earnings of 67 cents a share. Staples (SPLS)   is due to report first-quarter earnings of 21 cents and Dick's Sporting Goods Inc. (DKS)   is seen reporting earnings of 52 cents a share.

After market close, business software firm Salesforce.com (CRM) is expected to post earnings of 10 cents a share for its first quarter.

Bloomberg Charles Plosser, president of the Federal Reserve Bank of Philadelphia.

U.S. stocks closed Monday's session higher, led by small-cap and tech companies. Analysts noted that Wall Street's trading volumes were the third-lowest this year, saying an absence of 'bad news' helped support gains. Among key benchmarks, the Nasdaq Composite (COMP)  rose 0.9%, and the Russell 2000 (RUT) index of small stocks ended 1% higher.

The heavy run of appearances this week by Federal Reserve officials will continue Tuesday. Philadelphia Fed President Charles Plosser at 12:30 p.m. Eastern Time is expected to talk about the economic outlook at a gathering hosted by Women in Housing & Finance Inc. Plosser, a voting member of the Fed policy committee this year, has called for the Fed to soon wind down its bond-buying program.

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At 1 p.m. Eastern, New York Fed President William Dudley will speak at the New York Association for Business Economics. The president of the New York Fed is always a voting member of the policy committee.

On Monday, San Francisco Fed President John Williams said it would likely be more than a year before the central bank begins raising interest rates. Meanwhile, Dallas Fed President Richard Fisher lamented the performance of Congress, saying it has acted like a brake on economic growth which the Fed can't overcome with aggressive stimulus policies. Read the recap of the live blog with Williams, Fisher and Bernanke.

Shares of Google Inc. (GOOG)  may see action Tuesday after the company said it would buy Divide, a mobile-device management startup, for an undisclosed amount. The move could help Google extend the reach of its Android operations to more business customers.

Ahead of trading on Wall Street, Japanese stocks snapped a four-session losing streak . European stocks turned slightly lower, with Stoxx Europe 600 (XX:SXXP)  weighed in part by a decline in Vodafone shares (VOD)  after the telecom firm posted a decline in full-year operating profit.

In the resources sector, gold futures (GCM4)  fell $2.20, pulling back from the $1,300-an-ounce level, and crude oil (CLM4)  slipped 1 cent at $102.60. The ICE dollar index (DXY)  rose to 80.087 from 79.935 late Monday.

More news from MarketWatch:

Euroskeptics to dominate this week in Europe.

ECB official: Chances of bank acting in June are heightened

Credit Suisse pleads guilty to aiding tax evasion

Housing Gets a Boost as Construction, Permits Rise Sharply

Luke Sharrett/Bloomberg via Getty ImagesResidential housing under construction in Louisville, Ky. WASHINGTON -- U.S. housing starts jumped in April and building permits hit their highest level in nearly six years, offering hope that the troubled housing market could be stabilizing. The Commerce Department said Friday groundbreaking increased 13.2 percent to a seasonally adjusted annual pace of 1.07 million units, the highest level since November 2013. All four regions of the country reported increases. Starts rose by a revised 2 percent in March, compared to a previously reported 2.8 percent gain for that month. Economists polled by Reuters had forecast starts rising to a 980,000-unit rate last month. Compared to April last year, groundbreaking was up 26.4 percent. The dollar pared losses against the yen, while U.S. Treasury debt yields rose after the data. The housing market recovery stalled as a combination of higher mortgage rates and rising property prices, against the backdrop of stagnant wage growth, made housing less affordable for many Americans. A cold winter also weighed on activity. The residential sector contracted in the first three months of 2014, declining for a second consecutive quarter. With the multifamily sector segment continuing to drive residential construction, housing is unlikely to contribute to economic growth this year for the first time since 2010. The weak housing market recently has caught the attention of U.S. Federal Reserve Chair Janet Yellen, who early this month told lawmakers that it could undermine the economy. Last month, groundbreaking for single-family homes, the largest segment of the market, rose 0.8 percent to a 649,000-unit pace. Starts for the volatile multifamily homes segment surged 39.6 percent to a 423,000-unit rate. Groundbreaking for buildings with five or more units hit the highest level since January 2006. Permits to build homes jumped 8 percent to a 1.08-million unit pace in April, the highest since June 2008. Economists had expected permits to rise to a 1.01-million unit pace. Compared to April last year, permits were up 3.8 percent. Permits for single-family homes rose 0.3 percent to a 602,000-unit pace. Single-family homes permits continue to lag groundbreaking, suggesting that single-family starts could decline in the months ahead to bring them in line with permits. A survey released Thursday showed confidence among single-family homebuilders slipped to a one-year low in May. Permits for multifamily homes soared 19.5 percent to a 478,000-unit rate in April. Multifamily permits are running well ahead of starts, which could indicate delays in getting projects started. Permits for buildings with five or more units jumped 21.8 percent to their highest level since June 2008. The multifamily segment is being driven by demand for rental units. Builders, however, have complained about rising material costs as well as shortages of lots and skilled labor.

Niall Ferguson: The Black Swan Investors Should Fear

The black swan event investors should fear is war, and the tapering that should concern them most is “geopolitical tapering.”

That was the impassioned message that economic historian and prominent conservative Niall Ferguson delivered on the closing day of Alegtris’ annual investment conference in San Diego, a tough hurdle, Ferguson quipped, saying “it’s hard to explain to people sitting in California that life can ever get bad.”

But noting that an act of state-sponsored terror in Sarajevo in 1914 precipitated World War I, the Harvard historian emphasized that investors in 2014 have more to worry about than a monetary taper that is often talked about but hasn’t actually happened.

Indeed, Ferguson said the main talk in Europe these days is when European Central Bank President Mario Draghi will move into full-throttled U.S.-style quantitative easing.

Rather, the taper American should focus on is one that has already happened — America’s geopolitical tapering from its post-Pearl Harbor role upholding international peace and security.

The problem, he said, goes far beyond the reduction in defense expenditures even as entitlement programs are increasing as a share of GDP.

The scaling back of the U.S. military presence in the Middle East and North Africa has indeed been dramatic. Ferguson noted we had 180,000 active duty U.S. military personnel when President Barack Obama was elected in 2008 and virtually none today.

That rapid change was made possible by a broader rise in isolationism that he argues is making the world an increasingly dangerous place.

“Geopolitical tapering is a state of mind; it’s a view of the world as well as actual policy.”

That tapering was manifested in a speech Obama gave last September explaining why he would be taking no action in Syria despite Bashar Assad’s having crossed a red line that Obama himself drew regarding the use of chemical weapons. In the speech, the president twice stated that the U.S. should not be the world’s policeman.

As the author of a history of American empire, Ferguson says he was startled.

“If the U.S. is not the world’s policeman, who is?” he asked.

Similarly, the historian noted with alarm a New Yorker interview with the president last year in which he stated, referring to the strategic thinker who formed U.S. strategy vis-à-vis the Soviet Union during the Cold War, “I don’t really even need George Kennan right now.”

Similarly, in 2012 presidential debates, the president mocked his opponent Mitt Romney’s emphasis on Russia as a primary enemy of the U.S. by saying “The 1980s wants its foreign policy back.”

Given the geopolitical tension between Russia and the West over Ukraine right now, Ferguson commented that the president could indeed use a George Kennan right now.

But it’s not merely a leadership problem that Ferguson highlights but rather a problem rooted in shifting American attitudes about the U.S. role in the world.

Recent polling data show that the U.S. population has embraced isolationism and it’s no longer just the “campus left,” but across the ideological spectrum.

“We are so over 9/11; it’s like it never happened,” Ferguson lamented, noting that nearly half of Americans want their country to play a less active role in the world compared with just 14% who felt that way at the time of the Sept. 11 attacks.

“I think this is a more profound taper than any change we are likely to see in monetary policy this year or next,” he said.

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Indeed, American views of the world reflect this downsizing even against the facts. Americans have regarded China as the No. 1 economic power since November 2009, though it is only this year, and only by one (disputed) measure, that China’s GDP has overtaken ours on a purchasing power parity basis.

Though the U.S. in actuality remains economically dominant, Ferguson says is likely that China will in fact overtake the U.S. within the next two decades because of America’s diminutive GDP growth rates.

“We are living through one of the most astonishing reversals of economic fortunes in economic history,” Ferguson said, noting the average American was 20 times richer than the average Chinese in the 1970 but just four times wealthier today.

And though the U.S. has demographic advantages over a rapidly aging China and a renaissance in energy production, the economic historian noted “two major manmade problems that will be persistent headwinds to U.S. growth as we go forward in the coming decades.” One is mounting U.S. debt, a trend which our political system seems incapable of arresting, and the second is education. While many point out that socioeconomically disadvantaged groups do worse on standardized tests, Ferguson noted that “even students in China whose parents are manual workers do better in math than the students of professionals in the U.S. … If you don’t think that will have a profound effect on the future economic performance of the U.S., you are dreaming.”

That educational deficit also has serious consequences for a nation whose citizens, polls show, have a hard time finding Ukraine on the map — a few of those surveyed even pointed to North America.

The reason why, according to Ferguson, is that while the president is sincere in his belief that policing the world is antithetical to peace, it is a wrong belief.

Already, more people have died in the Middle East under President Barack Obama’s 5 ½ years in office than under George W. Bush’s eight years.

Jihadist Islam has spread beyond the Middle East, even Ferguson’s native U.K, where London is an active Islamist hub.

Noting the kidnapping of Nigerian schoolgirls by jihadist terror group Boko Haram, Ferguson commented, bitterly:

“Tweeting a hashtag by the first lady from the White House: Is that our response to this threat?”

Similarly, U.S. passivity in Eastern Europe has emboldend Russia and ignores the fact that the U.S. has “many, many military options short of war.”

Ferguson’s biggest fear is in East Asia, particularly the increasing brinksmanship between China and Japan, which he says is aggravated by U.S. passivity.

To those who might argue that trade in the region is too important to yield to war, Ferguson quotes Japanese prime minister Shinzo Abe, who himself noted that the huge volume of trade between Britain and Germany in 1914 did not prevent those great powers from entering protracted military conflict.

Ultimately, the reason for that epochal conflict, Ferguson argues was geopolitical tapering on the part of the British, which led to an ambiguity in its foreign policy that the U.S. is imitating today.

“Not having a strategy, not needing a George Kennan, is the surest recipe for geopolitical disaster,” Ferguson said.

Monetary policy is a more popular subject of discussion at financial conferences than war and peace, and investors at a similar conference in 1914 would not likely have had much to say about war and peace either; but the historian concluded his talk with this warning:

“If there is one black swan you need to fear, it is the black swan that is going to fly straight out of Obama’s geopolitical taper.”

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Check out Niall Ferguson: 4 Reasons America Is Falling Apart on ThinkAdvisor.