Get 3% With Low Risk Via Floating-Rate Bond Funds

Wary investors have fallen in love with floating-rate bond funds. And no wonder: The funds pay a decent yield—typically about 3%, sometimes more—and are designed to protect against rising interest rates, which just about everyone expects once the Federal Reserve determines that it really is time to dial back its stimulative policies.

See Also: A Juiced-Up Junk Bond Fund

While most kinds of bonds struggled over the past year, floating-rate funds produced impressive gains. According to Morningstar, the average floating-rate fund delivered a total return of 5.9%, trouncing Barclays U.S. Aggregate Bond index by some seven percentage points. But those generous returns suggest that the funds are not risk-free, so it pays to be selective when choosing one. (All performance figures are as of November 1.)

How they work. Floating-rate bond funds invest in loans that banks make to companies. The rates on the loans are tied to a short-term benchmark, such as the London Interbank Offered Rate, or LIBOR, and generally reset every 30 to 90 days. As a result, if interest rates go up, the loans adjust quickly, preserving their value. (For most other kinds of bonds, prices move in the opposite direction of interest rates.)

But here's the downside: Companies that take out these loans tend to have poor credit and are likelier to default than higher-quality borrowers. Also, because the bank-loan market is relatively small, heavy selling can result in exaggerated losses. That's what happened in 2008. Floating-rate bond funds fell by an average of 30%, as investors ran for cover during the financial crisis.

The floating-rate market has grown since then, but it's still a good idea to choose a fund that keeps risk in check. Demand has increased the supply of loans lately and eased lending standards. "You're starting to see looser restrictions on companies," says Morningstar analyst Sarah Bush. She recommends funds that invest mostly in bank loans rated single- or double-B (the latter being the highest "junk" bond rating). Avoid funds with high expenses—that is, anything above the category average of 1.2% annually. Their managers may be tempted to reach for yield to overcome the drag of high fees.

Top 10 Safest Companies To Buy For 2014

Two good no-load options are Fidelity Floating Rate High Income (FFRHX) and T. Rowe Price Floating Rate (PRFRX). Both have 30-day yields of about 3%. They are also relatively cheap. The Fidelity fund's annual expense ratio is 0.71%; Price charges 0.86%. Over the past year, the funds returned 4.2% and 4.5%, respectively, compared with 5.9% for the average bank-loan fund. The underperformance in a strong market for bank-loan funds isn't surprising, because the Fidelity and Price funds focus on higher-quality loans and so take fewer risks than their typical rivals.

Another way to cut expenses is to consider an exchange-traded fund such as PowerShares Senior Loan Port­folio (BKLN). The ETF, which charges 0.66% per year, aims to match the performance of an index of the 100 largest bank loans available. That focus should make it easier to trade the loans, helping to minimize volatility. The fund yields 4.1%, and it returned 4.8% over the past year.

If you can stomach more risk for a chance at bigger yields, consider a closed-end fund. CEFs are traded on an exchange, the same way ETFs are. But because CEFs are structured differently, their share prices often differ dramatically from the value of their underlying assets.

Consider Nuveen Floating Rate Income (JFR), a closed-end fund that, at a price of $12, trades at a 5% discount to the value of its assets. Like most closed-end bond funds, Nuveen borrows money to boost yield; at last report, it had borrowed about 30% of its assets. The fund returned just 1.4% over the past year, but thanks to leverage, its current yield is a whopping 6.8%.

Home price gains slowing as market recovers

Home price gains are slowing after a strong bounce off the bottom, potentially marking a new phase for the housing recovery.

Home values aren't rising as fast as they were and even dipped in a few hot markets in September, according to Zillow. More homes are coming on the market, and Realtors report less competition among buyers.

"It's a market in flux," says Sherry Chris, CEO of Better Homes and Gardens Real Estate. "We are in year two of a long-term recovery, and there will be bumps."

Home value gains are a key indicator of a market shift.

U.S. home values were up 1.2% in the third quarter from the second, Zillow data show. That's down from a 2.5% jump in the second quarter from the first.

In September, values dipped about 1% from August in Los Angeles and San Diego — the first notable month-to-month drop for those markets since the recovery started, Zillow says.

All told, half of 30 major metropolitan areas covered by Zillow saw values fall in September from August, seasonally adjusted numbers show. Earlier this summer, all the same metros were seeing month-to-month gains.

More markets are likely to see declines this month, too, says Svenja Gudell, Zillow chief economist.

Home values were flat or slightly up in September from August in Washington, D.C., Miami and Atlanta, Zillow's data show. But growth has slowed in the metros each month since July.

In Atlanta, for instance, July values were up 3.1% from June. But September saw only a 0.7% bump from August, after being adjusted for seasonal factors.

While down, that's still rapid appreciation. Historically, homes have appreciated an average of 0.3% a month, says Jed Kolko, Trulia economist.

"It's not like prices are falling off a cliff. They're just slowing to a more sustainable pace," Guddell says.

Fewer investor buyers and more inventory are two key factors affecting prices.

The number of existing single-family homes for sale in August was up 5% from January, seasonal! ly adjusted, Kolko says. Meanwhile, higher prices have dampened investor activity, leaving more homes for regular buyers, he says.

While popular homes got 10 to 15 offers several months ago, two to three are more likely now, says Better Homes' Chris.

Slowing price gains should lessen fears of housing bubbles in some markets, including in California, Zillow says. Homes are also taking longer to sell in some California markets.

Homes spent a median of 28 days on the market in Oakland, in September before being sold, up from 14 days earlier this year, reports Realtor.com, which tracks 146 markets.

Rising prices have created more sellers. "The market is still strong," but hitting more of an equilibrium between buyers and sellers, says Errol Samuelson, Realtor.com president.

CME Group September Volume Average Rises (CME)

CME Group Inc (CME) reported on Wednesday that September volume average increased 10% from September 2012, while its third quarter volume average grew 11% from last year.

For September, volume averaged 13.1 million contracts per day, totaling 261 million for the month. Equity index volume in September averaged 2.9 million contracts per day, a 4% increase from last year. Equity index options volume was up 52% in September.

Third quarter volume average was 12 million per day, up 11% from a year ago.

CME Group shares were mostly flat during pre-market trading Wednesday. The stock is up 48% YTD.

SEC lawsuit against Mark Cuban heads to trial

DALLAS (AP) — With the Dallas Mavericks' season-opening game still a month away, the basketball team's outspoken owner, Mark Cuban, will be seeing a different kind of court this week.

The government's insider-trading case against Cuban, 55, goes to trial Monday in federal court in Dallas. Cuban is expected to testify, and experts say the verdict could come down to whether jurors find the billionaire and regular on the ABC reality show "Shark Tank" to be likable or smug.

Cuban is accused of using insider information to dump his stock in a small Internet-search company in 2004 just before the shares fell in value. He avoided $750,000 in losses. The Securities and Exchange Commission wants Cuban to give up the money and pay a civil penalty.

The SEC's key piece of evidence is a phone call between Cuban and the CEO of Mamma.com. According to the SEC, the CEO told Cuban he had confidential information to share and Cuban agreed to keep it to himself.

When the CEO said the company planned an offering of new stock, the SEC alleges, Cuban became angry because the offering would reduce the value of his 600,000 shares — and there was nothing he could do about it.

"Well now I'm screwed. I can't sell," Cuban said, according to the SEC.

But over the following two days, that's exactly what Cuban did, unloading his shares before the company publicly announced the stock offering.

Cuban disputes the SEC's version of the facts, and his lawyers argue that insider-trading laws didn't prohibit him from selling his shares.

U.S. District Judge Sidney Fitzwater agreed and dismissed the lawsuit in 2009, but his ruling was overturned by an appeals court, which sent the case back to Fitzwater for trial.

James Meyers, a former enforcement attorney at the SEC now in private practice in Washington, said that insider-trading cases are hard to prove because they rely on circumstantial evidence — a phone call, a stock trade, and a presumed link between the two — and because som! e jurors don't believe there's anything wrong with insider trading.

Cuban is expected to testify.

"A lot of it will come down to how Cuban comes across," Meyers said. He said that if he were Cuban's lawyer, "I would tell him to come across as humble and affable and not as master of the universe."

Sports Illustrated listed Cuban among the 50 most powerful people in sports. He's known for building the Mavericks into a winner and drawing at least $1.5 million in league fines, mostly for berating referees.

When the SEC sued Cuban in 2008, he went after the regulators. He accused SEC staff of bias — targeting him because of his political views and wealth. The SEC's inspector general, a government watchdog, said staffers made inappropriate comments about Cuban, but judged that their conduct didn't affect handling of the case.

James Cox, a law professor at Duke University who specializes in securities law, predicted that the SEC will win and said that Cuban should have settled. The stakes are high for the SEC too, he said. If the agency loses at trial, it might hesitate before filing the next insider-trading lawsuit.

The SEC has some recent victories, including an August verdict against a former Goldman Sachs trader for misleading investors in a huge deal involving risky mortgage-backed securities.

The agency could use a high-profile win in Dallas. The regulator has taken years of pounding for failing to uncover Bernard Madoff's massive investment fraud or bring charges against any top executives of Wall Street banks whose conduct contributed to the 2008 financial crisis.

Peak Coal Argument Gets on a Short Timeline, With Your Investment

BOSTON (TheStreet) -- The arguing over peak coal could be resolved within 10 to 20 years, since that's about how much recoverable coal reserves the United States has, according to an estimate in a report by Clean Energy Action.

Of course, that's a dramatic contrast with estimates by the Energy Information Administration, which says there are enough recoverable coal reserves to keep the country powered for the next two centuries.

The organization says the U.S. hit "peak coal" in 2008, and that coal production and profits have been on a relative downslide since.

"The fundamental fact is that most of the coal in the U.S. is buried too deeply to be accessed easily and we are rapidly approaching the end of accessible U.S. coal deposits that can be mined profitably," said Dr. Zane Selvans, geologist and assistant director of research at the organization, in a press release. The idea is nothing new. In early 2009, the environmental news website Grist reported on a possible 10- to 20-year timeline for recoverable coal reserves as based on reports by the U.S. Geological Survey and National Research Council. Also see: Redo Your Rooftop Unit, Save a Billion (and the World)>> The council's Committee on Coal Research, Technology and Resource Assessments to Inform Energy Policy reported in 2007 that traditional projections of coal reserves were based on methods that hadn't been reviewed or revised since 1974. For those few areas that had been evaluated using updated methods, a much smaller fraction of recoverable coal was found than was originally estimated. In particular, the USGS found that only 6% of coal resources in Gillette, Wyo. -- the country's most productive coalfield -- was economically recoverable. The council report ended on an optimistic note and did not downgrade projected estimates for future coal production. But it could affirm only that there is enough recoverable coal to meet demands until 2030 and said "it is not possible to confirm the often-quoted assertion that there is a sufficient supply for the next 250 years." Likewise, CEA asserted in its recent report that the position that there are 200 billion tons of coal reserves do not consider updated economic factors affecting the ability to harvest most of those reserves. It referred to the recent financial strain affecting many U.S. coal companies, noting that it is "unclear whether they will be able to support the increased capital and labor costs associated with mining coal that is more difficult to access."

With consumer prices of coal-based electricity and heat rising at an average 6% to 10% a year -- or between two and three times faster than inflation -- and expected to double in the next decade, the CEA says coal is simply getting too expensive to maintain as our nation's main source of energy. Also see: $736M Farm Subsidy Loopholes Reward Absentee Managers>>

Additionally, the organization noted that production in the top 16 coal states have declined significantly in recent years, with heavyweights Wyoming and Montana dropping 14.2% and 18.1%, respectively. Coal production in Pennsylvania has dropped a whopping 80.2%, and Virginia by 61.4%, with Ohio, Kentucky, Illinois, and Arizona production rates slashed at around or slightly under half.

Hot Bank Companies To Watch In Right Now

The industry has been downsizing mining jobs and replacing workers with machinery. In 2009, Smithsonian magazine reported that the price of coal in the central Appalachian region had tripled since 2006, while demand skyrocketed. Yet while coal production has increased in West Virginia 140% in the past three decades, more than 40,000 coal mining jobs in the state have been eliminated.

Even while demand for coal is rising, several top U.S. coal companies have lost more than 80% of their stock value, with companies such as Patriot Coal filing bankruptcy, the CEA says. With productivity falling steadily from 6.99 tons per employee per hour in 2000 to 5.19 tons per employee per hour last year, the report argues it may be time to make investments elsewhere for future energy needs. "If coal can't be mined at a profit, not much of it will be mined," said Leslie Glustrom, director of research and policy of Clean Energy Action. "It is unclear how long the U.S. coal industry will produce large quantities of coal and at what price, but the current financial distress of U.S. coal mining companies could lead to significant changes in U.S. coal production in less than a decade."

Top 10 China Companies To Invest In Right Now

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is edging ever closer to falling back below the 6,000-point mark, just weeks after it hit a 13-year peak of 6,840 at the end of May.

The latest cause for concern comes from China. The country's central bank is entering into talks with commercial banks about improving their liquidity management amid the government's plan to tighten credit conditions on lending.

The end of last week also saw the FTSE plummet following Ben Bernanke's statement that�the U.S. Federal Reserve would look to end its stimulus package in the summer of 2014.�The last time the index was this low was back in the first week of January.�

However, here at the Fool, we've long held the notion that it is important to keep your head in turbulent times: Volatility in the markets isn't a new phenomenon, and headline-driven share-price plunges more often than not correct themselves over time. That's why we advise against "fad" stocks -- shares that are the "Next Big Thing" one moment and are down in the doldrums the next.

Top 10 China Companies To Invest In Right Now: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

Advisors' Opinion:

• [By Roberto Pedone]

  One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.

  If you take a look at the chart for KongZhong, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.

  Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.

  Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [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 Kongzhong (Nasdaq: KONG  ) , whose recent revenue and earnings are plotted below.

Top 10 China Companies To Invest In Right Now: Spreadtrum Communications Inc.(SPRD)

Spreadtrum Communications, Inc., through its subsidiaries, operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. It offers a portfolio of integrated baseband processor solutions that support a range of wireless communications standards, including global system for mobile communication (GSM), general packet radio service (GPRS), enhanced data rates for GSM evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), and high speed packet access (HSPA), as well as offer an array of multimedia capabilities, such as MP3 digital audio playback, touch screen, JAVA acceleration, digital camera support, motion JPEG, MPEG4, AVS and H.264 digital video playback, and 64-channel polyphonic ringtone playback. The company also provides single-chip CMOS multi-mode RF transceivers that perform across various standards covering GSM/GP RS, EDGE, wideband code division multiple access, TD-SCDMA, and high speed uplink/downlink packet access. In addition, it designs, develops, and markets a CMMB-based channel demodulator and audio/video decoder processor solution for the mobile television market. The company sells its products directly, as well as through distributors to brand manufacturers, independent design houses, and original design manufacturers primarily in China, Hong Kong, and Macau. Spreadtrum Communications, Inc. was founded in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• [By Bloomberg News]

  The Bloomberg China-US 55 Index (CH55BN), the measure of the most- traded U.S.-listed Chinese companies, added 0.2 percent in New York yesterday. Spreadtrum Communications Inc. (SPRD) gained after Bank of America Corp. said rising smartphone use will boost Asian semiconductor makers.

• [By Brian Pacampara]

  What: Shares of Chinese smartphone chip maker Spreadtrum Communications (NASDAQ: SPRD  ) surged 17% today after Tsinghua University, through its subsidiary Tsinghua Unigroup, offered to acquire it for $1.4 billion.

• [By Dan Radovsky]

  Chinese semiconductor maker Spreadtrum (NASDAQ: SPRD  ) has received a buyout offer valued at up to $1.5 billion from Tsinghua Unigroup, a subsidiary of Chinese government-owned Tsinghua Holdings, Spreadtrum announced today.

• [By Brian Pacampara]

  What: Shares of smartphone chip maker Spreadtrum Communications (NASDAQ: SPRD  ) popped 13% today after Chinese state-owned company Tsinghua Unigroup agreed to acquire it for about $1.8 billion.

Top 10 Dividend Companies For 2014: Ambow Education Holding Ltd. (AMBO)

Ambow Education Holding Ltd. provides educational and career enhancement services in the People?s Republic of China. The company?s Better Schools division offers K-12 degree programs and tutoring services that enable students to enhance their academic results and educational opportunities. This division provides tutoring services, including classroom instruction, small class, and one-on-one tutoring for students to prepare for important tests, primarily high school and university entrance exams; educational curriculum and software products through Web-based applications to allow students the access to tutoring services; and eBoPo that offers subjects, online practice tests, and instruction for K-12 level students. Its K-12 schools provide full-subject national curriculum, including mathematics, language, history, sciences, and arts. Ambow Education Holding?s Better Jobs division offers career enhancement service programs and college programs that facilitate post-secondary students to obtain employment. This division provides career enhancement services primarily to students at universities, colleges, and community colleges and recent graduates of these institutions. Its career enhancement services provides hands-on training for professional skills, including case studies, job environment simulation, and specific technical skills; and soft skills training comprising courses on time management, presentation, leadership, and interview techniques. This division also offers corporate training programs for employees; career GPS system, a career assessment platform for job seekers; and degree programs to incoming students. As of December 31, 2010, the company operated 107 tutoring centers and 5 K-12 schools; and 17 career enhancement centers and 2 colleges in the Bohai Rim Area, Central South Area, and the Yangtze River Delta. The company was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

Top 10 China Companies To Invest In Right Now: China Automotive Systems Inc.(CAAS)

China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China.

Top 10 China Companies To Invest In Right Now: Top Image Systems Ltd.(TISA)

Top Image Systems Ltd. provides enterprise solutions for managing and validating content entering organizations from various sources. It develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees. The company?s solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. It offers eFLOW Unified Content Platform that provides the common architectural infrastructure for its solutions. The company also provides Smart, an automated classification solution, which is the eFLOW plug-in for unstructured content providing single point of entry for information entering the organization; and Freedom, the eFLOW plug-in for semi-structured content that enables customers to identify and capture critical data from semi-structured documents, such as invoices, purchase orders, shipping notes, and checks. In addition, it offers Integra, the eFLOW plug-in for structured content, which provides a solution for data capture, validation, and delivery from structured predefined forms; eFLOW Ability, an integrated module interfacing with SAP systems for automated parking, approval, and posting of invoices and other document within SAP systems; and eFLOW Invoice Reader, an invoice capture and approval solution, which could be deployed and integrated in enterprise accounting environment, such as SAP, Oracle, and other financial systems. Top Image Systems Ltd. sells its products through a network of value-added distributors, systems integrators, original equipment manufacturers, and partners in approximately 40 countries worldwide. It has strategic partnership with SQN Banking Systems (SQN) to incorporate SQN's fraud detection solutions with its eFLOW Banking Platform in the Asia Pacific market. The company was founded in 1991 and is headquartered i n Ramat Gan, Israel.

Top 10 China Companies To Invest In Right Now: TAL Education Group(XRS)

TAL Education Group, together with its subsidiaries, provides K-12 after-school tutoring services in the People?s Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, English, Chinese, physics, chemistry, and biology. The company provides tutoring services through small classes; personalized premium services, such as one-on-one tutoring; and online course offerings. As of May 31, 2011, it operated a network of 199 physical learning centers in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Wuhan, Nanjing, Hangzhou, Chengdu, and Xi?an; and eduu.com, an online education platform for online courses. The company also offers education and management consulting services, as well as sells software. It operates under the Xueersi brand. The company was founded in 2003 and is headquartered in Beijing, China.

Top 10 China Companies To Invest In Right Now: China Life Insurance Company Limited(LFC)

China Life Insurance Company Limited provides life, annuities, accident, and health insurance products in China. Its individual life insurance and annuity products consist of whole life and term life insurance, endowment insurance, and annuities. The company also engages in the writing of life insurance business. In addition, it offers group life insurance products, including group annuity products, and group whole life and term life insurance products to enterprises and institutions, as well as universal life products. Further, the company provides short-term insurance products comprising short-term accident insurance and short-term health insurance products; accident insurance products, such as individual accident insurance and group accident insurance; and health insurance products, including defined health benefit plans, medical expense reimbursement plans, and disease specific plans. It distributes its products through its direct sales representatives and exclusive ag ents, as well as through intermediaries comprising insurance agencies and insurance brokerage companies, non-dedicated agencies, bancassurance arrangements, travel agencies, and hotels and airline sales counters. The company was founded in 1949 and is based in Beijing, China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company.

Advisors' Opinion:

• [By Daniel Inman]

  China Life Insurance Co. (HK:2628) � (LFC) �rose 2.7% after China�� largest life insurer by premiums reported that it had made a 7.5 billion yuan ($1.2 billion) profit in the third quarter, reversing a 2.2 billion yuan loss in the same period last year.

• [By Rich Smith]

  China Life Insurance Company (NYSE: LFC  ) has a new chief financial officer, announcing yesterday that on March 27, its board of directors picked Yang Zheng to serve as its new CFO. His appointment became effective April 26.

• [By Vanin Aegea]

  I have heard many people comment about the insurance policies for cars, houses, life, assets, etc. The arguments always revolve around the same issue: Is it really necessary? What are the chances to be hit by a Hurricane, or to meet a sudden death? Well, nobody really knows. Some individuals however, sleep better when they know a policy backs their life investments. Here, I will look into three insurance companies that concentrate on different policies, or geographies. These are: China Life (LFC), and Conseco (CNO).

• [By WWW.MARKETWATCH.COM]

  LOS ANGELES (MarketWatch) -- Chinese stocks advanced early Monday, with strong gains for insurers helping support the market. Hong Kong's Hang Seng Index (HK:HSI) improved by 0.5% to 22,816.23, with the Hang Seng China Enterprises Index up 0.9%, while the Shanghai Composite (CN:SHCOMP) added 0.3%. China Life Insurance Co. (HK:2628) (LFC) added 2.5% in Hong Kong and 1.6% in Shanghai after swinging to a quarterly profit, while strong earnings for rival Ping An Insurance Group Co. (HK:2318) (PNGAY) (CN:601318) sent its shares up 2.2% in Hong Kong and 1.7% in Shanghai. Among other Hong Kong-listed financials, China Construction Bank Corp. (HK:939) (CICHF) (CN:601939) rose 1.1% despite posting earnings that trailed average expectations, while China Merchants Bank Co. (HK:3968) (CIHHF) (CN:600036) climbed 1.3% ahead of its own quarterly report due later in the day. Zoomlion Heavy Industry Science & Technology Co. (HK:1157) (ZLIOF) shot 7.8% higher after a Chinese journalist admitted to taking bribes to write reports damaging to the company. News reports had accused the major contruction-machinery firm of acc

Top 10 China Companies To Invest In Right Now: Suntech Power Holdings Co. LTD.(STP)

Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Its products include monocrystalline and multicrystalline silicon PV cells; PV modules; and building-integrated photovoltaics products. In addition, the company provides PV system integration services, including designing, installing, and testing PV systems used in lighting for outdoor urban public facilities, as well as in farms, villages, and commercial buildings; and project development services. Its products are used to provide electric power for residential, commercial, industrial, and public utility applications. The company sells its products through value-added resellers, such as distributors and system integrators; and to end users, such as project develo pers primarily in Germany, Italy, Spain, France, Benelux, Greece, the United States, Canada, China, the Middle East, Australia, and Japan. Suntech Power Holdings Co., Ltd. is headquartered in Wuxi, the People?s Republic of China.

Advisors' Opinion:

• [By Travis Hoium]

  China won't let its solar industry die without a fight. After handing billions of dollars to manufacturers, including LDK Solar (NYSE: LDK  ) , Yingli Green Energy (NYSE: YGE  ) , Suntech Power (NYSE: STP  ) , to build capacity they are now generating demand domestically to soak up unsold panels.

• [By Dan Carroll]

  China's companies now have even less wiggle room to operate, considering lending's either expensive or hard to come by. As investment flows out of the country, unstable companies won't survive, even with government support. Solar-power company Suntech Power's (NYSE: STP  ) recent bankruptcy is an early sign of things to come. Suntech was the first Chinese solar-power company to go public when it hit the market in 2005, and generous public subsidies helped propel its growth. With money tightening across the country, Suntech's questionable business practices sank it -- the first of what could be more troubles to come for weaker Chinese company.

• [By Michael Lewis]

  Formerly the biggest maker of solar panels in the world, with more than 10,000 employees, China-based Suntech Power Holdings (NYSE: STP  ) has witnessed a long fall from grace. The nail in the coffin came in March, when the company failed to pay a $513 million debt obligation. Shortly following its default, the company sailed into Chinese bankruptcy protection. Fast-forward to this week and the company is trading more than 30% higher on a largely speculative rumor that Warren Buffett is looking to buy it.

• [By Travis Hoium]

  Stick with quality
  LDK Solar and Suntech Power (NYSE: STP  ) have already defaulted on debt, and the most leveraged Chinese manufacturers may follow others into full on bankruptcy (Suntech's subsidiary is already bankrupt, but the parent company isn't). Betting on leverage and hope for a recovery in China is a dangerous game, and investors should stick with high-quality manufacturers.

Top 10 China Companies To Invest In Right Now: China Security & Surveillance Technology Inc. (CSR)

China Security & Surveillance Technology, Inc., together with its subsidiaries, manufactures, installs, distributes, and services surveillance and safety products, systems, and software in the People?s Republic of China. The company?s products include standalone digital video recorders (DVRs); embedded DVRs; mobile DVRs; real-time hard-compression coding cards; DVR compression boards; digital cameras; intelligent high-speed dome cameras; intelligent control system software platforms; perimeter security alarm systems; monitors; and radio frequency identification terminals and data collectors. It serves various customers, which include governmental entities, such as customs agencies, courts, public security bureaus, and prisons; non-profit organizations, including schools, museums, sports arenas, and libraries; and commercial entities consisting of airports, hotels, real estate, banks, mines, railways, supermarkets, and entertainment venues. The company is headquartered in S henzhen, the People?s Republic of China.

Top 10 China Companies To Invest In Right Now: DAQQ New Energy Corp.(DQ)

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon in China. The company sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions. It also produces and sells mono-crystalline and multi-crystalline modules to photovoltaic system integrators and distributors in China and internationally under its Daqo brand. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is headquartered Wanzhou, the People?s Republic of China.

Top 5 Biotech Companies To Invest In Right Now

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This week, these five stocks have the worst ratings in Analyst Earnings Revisions, one of the eight Fundamental Categories on Portfolio Grader.

The Bon-Ton Stores, Inc. (NASDAQ:) operates regional department stores in the United States that offer an brand-name fashion apparel and accessories for women, men, and children as well as cosmetics, home furnishings, and other goods. BONT also gets an F in Equity. Shares of the stock have declined 1.8% since January 1. This is worse than the Nasdaq, which has seen a 10.9% increase over the same period. The stock’s trailing PE Ratio is 90.80. .

Top 5 Biotech Companies To Invest In Right Now: Amgen Inc.(AMGN)

Amgen Inc., a biotechnology medicines company, discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. The company markets recombinant protein therapeutics in supportive cancer care, nephrology, and inflammation. Its principal products include Aranesp and EPOGEN erythropoietic-stimulating agents that stimulate the production of red blood cells; Neulasta and NEUPOGEN to stimulate the production of neutrophils, which is a type of white blood cell that helps the body to fight infections; and Enbrel, an inhibitor of tumor necrosis factor that plays a role in the body?s response to inflammatory diseases. The company also markets other products comprising Sensipar/Mimpara, a small molecule calcimimetic that lowers serum calcium levels; Vectibix, a monoclonal antibody that binds specifically to the epidermal growth factor receptor; and Nplate, a thrombopoietin (TPO) receptor agonist that mimics endogenous TPO, the primary driver of platelet production. In addition, it provides Denosumab, a human monoclonal antibody that targets RANKL, an essential regulator of osteoclasts. Further, the company offers product candidates in mid-to-late stage development in a variety of therapeutic areas, including oncology, hematology, inflammation, bone, nephrology, cardiovascular, and general medicine consisting of neurology. It markets its products to healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies; consumers; and wholesale distributors of pharmaceutical products. The company has various collaborative arrangements with Pfizer Inc.; GlaxoSmithKline plc; Takeda Pharmaceutical Company Limited; Daiichi Sankyo Company, Limited; Array BioPharma Inc.; Kyowa Hakko Kirin Co. Ltd.; and Cytokinetics, Inc. Amgen Inc. was founded in 1980 and is headquartered in Thousand Oaks, California.

Advisors' Opinion:

• [By Keith Speights]

  Currently, the top 10 stocks in which the ETF is invested comprise more than 55% of total assets. Sure, there are some speculative names included in the full list of holdings. However, the largest stakes are in big biotechs with long track records, like Gilead Sciences (NASDAQ: GILD  ) , Celgene (NASDAQ: CELG  ) , Amgen (NASDAQ: AMGN  ) , and Biogen Idec (NASDAQ: BIIB  ) . These top four holdings make up almost one-third of the ETF's total assets.

• [By Keith Speights]

  That's the message from Onyx Pharmaceuticals (NASDAQ: ONXX  ) over the weekend after Amgen (NASDAQ: AMGN  ) made an unsolicited offer to buy the company. Shares in Onyx jumped a whopping 51% higher on Monday following the company's decision to spurn the Amgen offer. Here's the full story.

Top 5 Biotech Companies To Invest In Right Now: NeoStem Inc (NBS)

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

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

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

Advisors' Opinion:

• [By John Udovich]

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

• [By John Udovich]

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

• [By Monica Gerson]

  NeoStem (NYSE: NBS) priced an underwritten public offering of 5,000,000 shares of common stock at an offering price of $7.00 per share. NeoStem shares dipped 9.44% to $7.10 in after-hours trading.

• [By John Udovich]

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

Top Safest Stocks To Invest In 2014: StemCells Inc (STEM.W)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal hum an neural stem cells. Its HuCNS-SC cells can be directly tr! a! nsplanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenanc e and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of tr ue, germline competent rat embryonic stem cells without! the ! ad! dition ! of cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Top 5 Biotech Companies To Invest In Right Now: Gilead Sciences Inc.(GILD)

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Atripla, Truvada, Viread, Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa for the treatment of chronic angina; Vistide, an antiviral medication for the treatment of cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company?s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular a ge-related macular degeneration; and Lexiscan/Rapiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Its products under the Phase III clinical trials consist of Cobicistat, a pharmacoenhancer that is under evaluation as a boosting agent for HIV medicines; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; Integrase Single-Tablet, a ?Quad? regimen of elvitegravir, cobicistat, tenofovir disoproxil fumarate, and emtricitabine for the treatment of HIV/AIDS in treatment-naive patients; and Aztreonam for inhalation solution for the treatment of cystic fibrosis patients with Pseudomonas aeruginosa. The company?s Phase II clinical trials products comprise Cicletanine, Ranolazine, and Aztreonam, as well as GS 9190, GS 9256, and GS 9451. Its Phase I clinical trial products include GS 7340, GS 5885, GS 6620, GS 9620, and GS 6624. The company was founded in 1987 and is headquartered in Fost er City, California.

Advisors' Opinion:

• [By David Williamson]

  In this video, David Williamson reviews some of his favorite biotech firms. Many analysts have thrown their weight behind Biogen� (NASDAQ: BIIB  ) and its new BG12 drug for multiple sclerosis. However, David favors Gilead� (NASDAQ: GILD  ) over Biogen since Gilead�has a�larger, more diverse product pipeline. Celgene� (NASDAQ: CELG  ) is the No. 1 biotech in David's opinion since it also has blockbuster drugs but a PEG of less than 1.0. Amgen� (NASDAQ: AMGN  ) is�a big company with more products in development than most people realize. Overall, for value and future earnings potential, David likes Celgene the best.

• [By Bryan Murphy]

  When investors think of non-Hodgkin's lymphoma stocks, big names like Gilead Sciences, Inc. (NASDAQ:GILD) and Celgene Corporation (NASDAQ:CELG) come to mind. Both GILD and CELG are making prolific progress in the war on NHL, and both are fine, well-positioned companies. It's little Infinity Pharmaceuticals Inc. (NASDAQ:INFI) that may end up making the proverbial quantum leap in the non-Hodgkin's lymphoma stocks arena, however, and better still, it's INFI shares that may well end up doling out a much bigger reward than Gilead or Celgene could to newcomers.

Top 5 Biotech Companies To Invest In Right Now: Dendreon Corporation(DNDN)

Dendreon Corporation, a biotechnology company, engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. The company offers active cellular immunotherapy and small molecule product candidates to treat various cancers. Its product candidates comprise Provenge (sipuleucel-T), an active cellular immunotherapy for the treatment of metastatic, castrate-resistant prostate cancer; DN24-02, an investigational active immunotherapy for the treatment of patients with bladder, breast, ovarian, and other solid tumors expressing HER2/neu; and TRPM8, a small molecule agonist to transient receptor potential ion channel, for multiple cancers. The company also has a range of products in preclinical studies, which include Carcinoembryonic antigen for the treatment of lung, colon, and breast cancer; and Carbonic AnhydraseIX for the treatment of kidney cancer. Dendreon Corporation was founded in 1992 and is headquartered in S eattle, Washington.

Advisors' Opinion:

• [By Sean Williams]

  In order to do their best to conserve cash leading up into the full implementation of the bill, I wouldn't be surprised to see insurers denying or declining to pick up the tab on what they deem overpriced procedures. Not to pick on Intuitive Surgical again, but the company did mention, "a trend by payers toward encouraging conservative management and treatment in outpatient settings." Another potential victim here is Dendreon (NASDAQ: DNDN  ) , whose cellular immunotherapy known as Provenge that's used to treat advanced prostate cancer costs $93,000 annually. By comparison, Johnson & Johnson's�Zytiga costs just $5,500 per month ($66,000 annually) and would be the better cost-effective choice for insurers, potentially leaving Provenge out in the cold.

• [By Keith Speights]

  Unfortunately, gaining FDA approval and commercializing a product don't necessarily end a biotech's volatility. Dendreon (NASDAQ: DNDN  ) received approval for prostate cancer drug Provenge in April 2010. JPMorgan estimated that peak annual sales for the drug could reach $3 to $4 billion. Those estimates failed to materialize. Disappointing sales for the drug have contributed to a stock collapse of more than 90% since the FDA approval.

• [By Sean Williams]

  Over the previous two days, we've looked at chronic weight management company VIVUS (NASDAQ: VVUS  ) , and advanced prostate cancer treatment provider Dendreon (NASDAQ: DNDN  ) , as two companies that missed the ball with their marketing and/or pricing. Both companies, I feel, would do well to seek out an experienced marketing partner to help increase product sales, and share in the costs of that marketing and production.
  
  Today, in the third and final installment of three biotech companies that could desperately use a marketing partner, I would like to look more closely at Amarin (NASDAQ: AMRN  ) , and discuss why I feel it would be wise to find a big pharma friend.

• [By Brian Orelli]

  "We believe that the fourth quarter may be our strongest quarter of the year," said John Johnson, Dendreon's (NASDAQ: DNDN  ) �chairman, CEO, and president.

Schoolbook Publisher Houghton Mifflin Gains In Trading Debut

Houghton Mifflin Harcourt Co.’s shares jumped in their trading debut, after the schoolbook publisher priced its initial public offering for less than it expected.

Shares of the Boston company — which also publishes popular titles such as “Curious George” and J.R.R. Tolkien’s “The Hobbit” as well as a new book about Yogi Berra — were up 21% at $14.51 in late-morning trading, moments after opening at $14 on the Nasdaq Stock Market.

Insiders such as hedge fund firms Paulson & Co. and Avenue Capital Group will receive all proceeds from the offering. Late Wednesday, they agreed to a price of $12 a share for the 18.3 million-share deal, raising $219 million before the potential sale of additional shares by underwriters.

Houghton Mifflin had expected the shares to fetch $14 to $16 each, according to a regulatory filing.

The IPO follows a restructuring last year that eliminated about $3 billion in debt, the legacy of a pair of acquisitions in 2006 and 2007 that created the company in its current form. The financial crisis caught the company wrongfooted soon after it took on the heavy debt load, as budget cuts by state and local governments slashed spending on K-12 textbooks.

Houghton Mifflin’s education business accounts for the vast bulk of its sales — 88% of its total revenue last year.   For 2012, Houghton Mifflin posted a loss of $87 million as sales slipped 0.7% from a year earlier to $1.3 billion.

A group of investment firms such as Paulson & Co., Avenue, Anchorage Capital Group LLC and BlackRock Inc.(BLK) will continue to own most of the company after the IPO.

Goldman Sachs Group Inc.(GS) led the offering with Morgan Stanley(MS). 

Beacon Pointe Wealth Advisors Rolls Up Another California RIA

Beacon Pointe Wealth Advisors has added registered investment advisor Pacific Pointe in a rollup partnership that adds $175 million in assets under management to the firm, BPWA announced Monday.

Pacific Pointe, based in Santa Barbara, is the fourth California location to be added to BPWA, a Beacon Pointe Advisors RIA based in Newport Beach, Calif. The expansion marks BPWA’s second deal in five months and its fifth addition of an advisory firm to BPWA.

BPWA projects that it will reach nearly $1 billion in total AUM by year end, and it plans to continue its California expansion while adding to its geographic footprint in Denver, Boston and Richmond. It is 100% owned by each of the advisor partners that have joined RIA Beacon Pointe Advisors, which has AUM of $5.8 billion.

The advisor partners at BPWA do not hesitate to use the term “rollup,” an industry term that other firms with a long-term home for advisors have shied away from using, according to Beacon Pointe Wealth Advisors President Matt Cooper, whose Alliance for RIAs (aRIA) study group was named to Investment Advisor’s IA 25 list in 2013.

“The reason that makes firms cringe is because they try to position as something they’re not, and when the media calls them out on it, they get upset,” Cooper said in a statement. “But the bottom line is that if we know the value we provide, and our advisor partners know it, and feel good about why they joined and how it helps them and their clients, then you can call us whatever you want as long as you acknowledge the good we’re doing.”

RIA-to-RIA M&A on the Upswing

The deal highlights how RIA-to-RIA deals are on the upswing.  BPWA is actively looking to expand with growth-focused regional partners in the $100 million to $300 million range. BPWA has set a growth goal of one deal per quarter for the next 10 years and is already ahead of the pace it has set for itself.

David DeVoe, a strategic consultant to BPWA and former Schwab Advisor Services managing director of strategic business development, points out that the new transaction is “a great example of how RIAs are intelligently using M&A" to achieve their business growth goals. “Beacon Pointe is leveraging the scale and infrastructure of its $6 billion business to provide BPWA Santa Barbara with a more concentrated focus on accelerating growth,” DeVoe said in a statement.

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Pacific Pointe, the newest RIA to join BPWA, was first introduced to Beacon Pointe Advisors in 2009 when it formed its own RIA. It has been reviewing the benefits of officially joining BPWA since 2011.

'A Bigger Brand, A Bigger Story'

One of the key drivers for its decision was the exceptional growth of the first firms to join BPWA. The initial partner firm has grown from $130 million in AUM to $217 million now, at nearly 30% annualized growth, while the second partner firm has experienced greater than 400% growth, to $215 million in AUM from $50 million, according to BPWA officials.

“We saw this as a marriage of resources, granting us access to a bigger brand, a bigger story and more marketing power in our own backyard," said Gary Dorfman, Pacific Pointe founding partner, in a statement, "and the transition has been seamless.”

Read Beacon Pointe Lured by CPA Services in Latest Acquisition at ThinkAdvisor.

Dan Loeb reveals stake in FedEx

Shares of FedEx popped on the news of Dan Loeb's investment. Click the chart to track the stock.

NEW YORK (CNNMoney) Hedge fund manager Dan Loeb revealed a stake in FedEx Tuesday morning, adding that he likes the stock and the management of the company.

Shares of FedEx (FDX, Fortune 500) spiked following the announcement.

Speaking during a conference Tuesday hosted by The New York Times Dealbook blog, Loeb told the audience that he met with FedEx CEO Fred Smith in Memphis last week.

"We had a very constructive discussion about the company," said Loeb, founder and CEO of Third Point hedge fund. "I think he disagrees with some of our notions...so life goes on. This is a normal part of the process."

Loeb is known for his activist approach and forcing change at companies. Most notably, he questioned the academic credentials listed in the bio of former Yahoo (YHOO, Fortune 500) CEO Scott Thompson. The pressure from Loeb eventually led to Thompson stepping down. He was replaced by Marissa Mayer from Google (GOOG, Fortune 500) and Yahoo's stock has been on a tear since she took over the company.

Despite his disagreements with Smith, Loeb said he likes him and will "absolutely not" try to oust him. Rather, Loeb called Smith one of the great American CEOs and entrepreneurs. But he was mum on the size of his position in FedEx.

Loeb also discussed his position in Sony. He is the largest stakeholder in Sony (SNE) and has been pushing the company to spin off its entertainment business. Though Sony has refused, Loeb doesn't consider that a lack of success.

"I don't think of us as going against Sony," he said, adding that he has a good relationship with the company and has met with Sony CEO Kazuo Hirai twice, most recently a few weeks ago in Tokyo. "We wanted a spinoff because we wanted transparency. We wanted to highlight the values. We wanted a greater focus on profitability and accountability, and they basically said they're going to do all of those things."

Loeb also responded to criticism from George Clooney, who compared Loeb's involvement in Sony to a Wal-Mart strangling businesses in small towns.

"That sounds a little hyperbolic," Loeb said, adding that he understands where Clooney is coming from. Loeb said he would love to meet Clooney and ! believes they would actually agree on the company more than they would disagree.

"I think we both want the same thing," Loeb said. "We want less money spent on overhead and more money spent on making movies."

  In defense of hedge funds

Loeb also commented on his position in Herbalife (HLF). He bought a stake in the nutritional supplement company even as rival hedge fund manager Bill Ackman was shorting it and saying he thought Herbalife was a pyramid scheme. Loeb's feud with Ackman is highlighted in the December issue of Vanity Fair.

"Let's be clear about a couple things," said Loeb Tuesday. "I have a fiduciary duty to earn a rate of return for my investors. My fiduciary duty is to my investors, not Bill Ackman. An opportunity was created where we thought a sell-off in Herbalife was overdone. I spent my Christmas vacation last year analyzing the company."

Loeb bought shares of Herbalife last December, after Ackman's accusations sent shares of the company plunging. Loeb set a price target on the stock between $55 and $68 per share, but sold his position during the first quarter when the stock reached $44 per share.

"There is no duty to hold a stock until it hits the price target," Loeb said. "We decided to take the money and run. There was no pump and dump."

An Immunotherapy Cinderella Story? (AMGN, DNDN, TNIB)

When investors think "immunotherapy", they tend to think of companies like Amgen, Inc. (NASDAQ:AMGN) or Dendreon Corporation (NASDAQ:DNDN). And well they should. Dendreon was the first biotech outfit to come up with a big - and approved - potential game-changer (prostate cancer therapy Provenge) in the immunotherapy world, and the deep-pocketed Amgen is turning heads with T-Vec - an immunotherapy that fights tumors, currently in Phase 3 trials. Sometimes though, being big or being the first to market doesn't necessarily make a stock an investment-worthy ticker. Sometimes it's the little guy that actually has the better technology, and learns from the mistakes made when other biotechnology companies may have rushed in, if not with relatively ineffective medicines, than at least errors in judgment. TNI Biotech Inc. (OTCMKTS:TNIB) may well be one of those "second wave" names that isn't getting a lot of attention now, but has an immunotherapy in the works that could up-end bigger players like DNDN or AMGN.

First and foremost (and to give credit where it's due), kudos to Dendreon as well as Amgen. Dendreon's Provenge was the first cancer immunotherapy to hit the market, and even if Amgen never has any intentions of introducing a cancer immunotherapy, it would still be one of the pharma market's most successful companies. Still, with more than two years of sales-time under its belt, it's fairly clear that either Provenge (at $96,000 per patient) is too costly and/or too ineffective to draw a real buying frenzy, while Amgen's first tumor immunotherapy, T-Vec, only showed significant improvement in treatment outcomes with a small set of melanoma patients; stage 3 patients observed a 33% improvement in response, versus less impressive responses for patients with other stages of cancer. And, there were serious adverse reactions with about twice as many T-Vec takers as there were compared to the control group.

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Though the underlying biotechnology is worth studying in the future, we now know there's still some work to be done on both fronts. Enter TNI Biotech.

While most investors may understand that cancer immunotherapy is the art and science of tweaking a patient's own immune system to fight an ailment on its own (agreed by most everyone that this could be the most potent way to fight any cancer), what most investors don't realize is just how complicated the human body's immune system is. The biopharma industry sill doesn't know as much as it does know about it, and it still discovering how and where those tweaks can be and should be made. It's entirely possible for an unknown, small company like TNI Biotech Inc. to be sitting on the breakthrough that most investors might expect an Amgen or a Dendreon to make. In fact, it's starting to look that way already.

The work TNI Biotech is doing focuses on LDN (low-dose naltrexone) and MENK (methionine-enkephalin). These two drugs have been shown to boost and even restore an immune system simply by increasing the T and NK cell count, which prompts a person's internal immune response. What's so compelling about LDN and MENK is their adaptability. They're believed to be more "core" to a person's own defenses, and therefore may create a more foundational and more effective immune response. Said a different way, while Amgen or Dendreon may be landing punches all around the target, TNIB may be landing them right on the bulls-eye... perhaps without even realizing it yet.

More work needs to be done to be sure, but TNI Biotech is doing that work. Indeed, it's already done or acquired much of that work. It's ready to start phase 3 trials of LDN as a treatment for Crohn's. It's near-ready to start phase 2 trails of LDN as a therapy for multiple sclerosis. Trials of MENK as a treatment for cancer are near-ready to begin phase 2 as well. Not bad for a $137 million company nobody saw coming, or a company that most people still don't see coming. It just goes to show you that good things can come in small packages.

While TNI Biotech is certainly willing and able to go the distance with all of its planned trials, odds are good it would be acquired before even needing to do so - "big pharma" is still looking to fill up its depleted pipeline. You can learn more about TNI Biotech at its website.

McDonald's Depressed Stock Is The Most Appetizing Buy and Bargain On The Menu

 

 (Photo credit: Wikipedia)

McDonald's (MCD) has been the kingpin of fast food for decades and it isn't likely that it will lose the crown anytime soon, if it can help it – and it surely can. But its critics contend that the world's largest fast-food restaurant company should no longer be regarded as a growth enterprise and that investors should ditch or steer clear of its stock.

Don't be fooled. McDonald's isn't unfamiliar with confronting problems and successfully dealing with them — and snapping back. Shares of McDonald's have dropped to as low as $83 a share this year from a 52-week high of $103, but they have since recovered some of that loss, closing on Nov. 8, 2013, at $97.01 a share. That's still below its 52-week high of $103.70, but some analysts see the stock exceeding that high, to about $107-$110.  

True, slower growth in Europe and Asia has caused McDonald's' overall growth to lose some steam: Its appeal to customers, particularly in the U.S. where they favor healthier foods, has lost some of its luster. But over the longer term, resilient growth at the quick-service restaurant leader with 35,000 restaurants in 119 countries should be able to spring back to healthier levels, even as its October sales remained weak. Lower-than-expected sales in Japan was a big part of the problem.

Although 2012 and recent quarterly results have disappointed Wall Street, "we expect McDonald's sales to recover in 2013 as the company sharpens its competitive focus domestically and benefits from an established and enhanced value presence internationally," says Jeffrey A. Bernstein, analyst at Barclays Capital. He rates McDonald's as overweight with a price target of $108 a share.

Over the long haul, McDonald's "remains focused on maintaining new unit growth," he adds,  and continues to allocate free cash to dividends and share repurchases. In an interview at CNBC on Friday (Nov. 8), Bernstein reiterated his bullish stance on McDonald's, asserting that the company has the resources and determination to rebound and strengthen its industry leadership.     

He noted that the stock's solid climb over the past decade has been impressive since the introduction of its "Plan to Win" platform, focusing on better — not just bigger — food on its menu. At the height of the devastating recession in 2008, McDonald's resilience was "well documented, as one of only two names within the Dow 30 to experience stock appreciation," Bernstein points out.

More recently, the company has been challenged by the difficult global macro economy, increased competition, and very difficult sales comparisons, he notes. Management has repeatedly said that its top priority is to reinvest in the business. Beyond capital expenditures, its priorities remain focused on dividends and share repurchases, says Bernstein. And management continues to improve its restaurant menu to adapt and adjust to customers' taste and demand for healthier fast food.

"McDonald's is actively evolving the menu and will soon roll out a new 'Dollar Menu and More' platform," notes Lynne Collier, analyst at investment firm Sterne Agee. Rating the stock a buy with a price target of $107, the analyst says she expects to hear more from management about its new product introductions and plans to drive traffic at the next Analysts' Day meeting in mid-November.

McDonald's derives its revenues from company-owned restaurants, franchising royalties, and licensing agreements. Its restaurants offer menus that are uniformly value-priced, with some variations to adapt to regional preferences. The company's "Plan to Win" platform is a multifaceted attempt to boost sales and earnings, including changes in the variety of menu offerings, longer hours of operations, and affordable prices.

With its "strong brand intangible asset, a cohesive franchise system, and meaningful bargaining power and scale," McDonald's can "eventually return to longer-term targets of 3%-5% system-wide sales growth, 6%-7% operating income growth, and return on incremental invested capital in the high teens," notes research firm Morningstar in a recent report on the company.

Best Performing Stocks To Own For 2014

 "McDonald's current valuation understates its long-term fundamentals," Morningstar points out, but advises investors to maintain a longer-term investment outlook as the stock may take several months to accelerate much against the competitors' aggressive promotional activity, and limited ability to increase prices.

Morningstar estimates McDonald's will earn $5.62 a share in 2013 on revenues of $28.22 billion, and $6.13 a share in 2014 on revenues of $29.68 billion, up from 2012's $5.36 a share on sales of $27.56 billion. McDonald's current dividend yield is a hefty 3.33%.

 In sum, the current price and valuation of McDonald's shares have dropped to attractive levels ahead of the company's expected strong turnaround.

Best Medical Companies For 2014

St. Jude Medical Inc. (STJ) is set to report its second-quarter 2013 results before the opening bell on Wednesday, Jul 17. Let's see how things are shaping up prior to the announcement.

In the last reported quarter, the medical device major posted break-even earnings surprise. An improved operating margin on the back of the company�� restructuring efforts to streamline the underlying business helped offset declining organic revenue growth.

Factors to Consider This Quarter

We are primarily concerned about St. Jude�� declining top line. The core Cardiac Rhythm Management (CRM) division continues to face multiple headwinds. A still choppy U.S. defibrillator market remains an overhang on St. Jude, as reflected by sustained implant volume pressure. Additionally, we remain cautious about increased competition, pricing pressure, softness in cardiovascular sales along with currency fluctuations.

Meanwhile, we expect growth in international revenues to boost overall sales of the company. New growth drivers such as an innovative product line along with restructuring efforts to streamline the underlying business will likely be accretive for STJ in the long term. The company has received a number of regulatory approvals for its latest offerings as well as initiated a number of clinical trials in the second quarter, which is encouraging.

Best Medical Companies For 2014: Hanger Orthopedic Group Inc.(HGR)

Hanger Orthopedic Group, Inc. engages in the ownership and operation of orthotic and prosthetic (O&P) patient care centers in the United States. The company provides orthotic and prosthetic patient care services. Its orthotics business include the design, fabrication, fitting, and maintenance of a range of standard and custom-made braces and other devices that provide external support to patients suffering from musculoskeletal disorders, such as ailments of the back, extremities or joints, and injuries from sports or other activities. The company?s prosthetics business comprise designing, fabricating, fitting, and maintaining custom-made artificial limbs for patients, who are without limbs as a result of traumatic injuries, vascular diseases, diabetes, cancer, or congenital disorders. It also distributes branded and private label O&P devices, as well as develops programs to manage various aspects of O&P patient care for insurance companies. In addition, the company manufac tures and distributes therapeutic footwear for diabetic patients in the podiatric market, as well as develops and provides specialized rehabilitation technologies and integrated clinical programs to rehabilitation providers. As of June 30, 2011, it operated approximately 675 patient-care centers in 45 states and the District of Columbia. The company, formerly known as Sequel Corporation, was founded in 1861 and is headquartered in Austin, Texas.

Best Medical Companies For 2014: Non-Invasive Monitoring Systems Inc (NIMU)

Non-Invasive Monitoring Systems, Inc. (NIMS), incorporated on July 16, 1980, along with its subsidiaries, is engaged in the research, development, manufacturing and marketing of a line of motorized, non-invasive, whole body, periodic acceleration platforms, which are intended as aids to increase local circulation and temporary relief of minor aches and pains, produce local muscle relaxation and reduce morning stiffness. The Company�� products are derivatives of its original acceleration platform, the AT-101, and are for use in homes, wellness centers and clinics. NIMS is focused on developing and marketing its Exer-Rest line of acceleration therapeutic platforms based upon whole body periodic acceleration (WBPA) technology. The Exer-Rest line of acceleration therapeutic platforms includes the Exer-Rest AT, AT3800 and AT4700 models. In addition, it receives royalty revenue from the sales of non-invasive diagnostic monitoring devices and related software.

Whole Body Periodic Acceleration (WBPA) Therapeutic Devices

The AT-101 is a device that moves a platform repetitively in a head-to-foot motion at a rapid pace. In January 2005, the Company ceased manufacturing the AT-101. The Exer-Rest AT therapeutic vibrator is based upon the design and concept of the AT-101 therapeutic vibrator, but has the dimensions and appearance of a commercial extra long twin bed. The Exer-Rest AT was manufactured by QTM Incorporated (QTM). The wired hand held controller provides digital values of speed, travel and time rather than analog values of speed and arbitrary force values as in the AT-101. the Company discontinued manufacturing of the Exer-Rest AT in July 2009. The Exer-Rest SL and Exer-Rest TL, which were manufactured by Sing Lin Technology Co., Ltd. (Sing Lin), are next generation versions of the Exer-Rest AT and advance the acceleration therapeutic platform technology.

LifeShirt

The LifeShirt is a wearable physiological computer that incorporates transducers, ele! ctrodes and sensors into a sleeveless garment. Pulse oximetry is an optional add-on. These sensors transmit vital and physiological signs to a miniaturized, battery-powered, electronic module which saves the raw waveforms and digital data to the compact flash memory of a Personal Digital Assistant (PDA) attached to the LifeShirt. Users of the LifeShirt can enter symptoms (with intensity), mood and medication information directly into the PDA for integration with the physiologic information collected by the LifeShirt garment. Such data are then transmitted from the flash memory to a data collection center that transforms the data into minute-by-minute median trends of over 30 physical and emotional signs of health and disease. In addition, the monitored patient can enter symptoms with intensity, mood, and medication directly into the PDA for integration with the physiologic information collected with the LifeShirt garment. As of July 31, 2009, LifeShirt was not marketed. The LifeShirt was sold by VivoMetrics, but has not been marketed since VivoMetrics ceased operations in July 2009.

The Company competes with Power Plate of North America, Vibraflex and CERAGEM International, Inc.

Hot Penny Companies To Invest In 2014: RXi Pharmaceuticals Corp (RXII.PK)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidia ry Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Best Medical Companies For 2014: Baxano Surgical Inc (BAXS)

Baxano Surgical Inc, formerly TranS1 Inc., incorporated in May 2000, is a medical device company focused on designing, developing and marketing products that implement its approach to treat degenerative conditions of the spine affecting the lower lumbar region. It develops its pre-sacral approach to allow spine surgeons to access and treat intervertebral spaces without compromising important surrounding soft tissue, nerves and bone structures. As of December 31, 2011, the Company was marketing the AxiaLIF family of products for single and multilevel lumbar fusion, the Vectre and Avatar lumbar posterior fixation systems and Bi-Ostetic bone void filler, a biologics product. All of the Company�� AxiaLIF products are delivered using its pre-sacral approach. It generates revenue from the sales of itsimplants and disposable surgical instruments. It has two distinct sales methods. The first method is when implants and/or disposable surgical instruments are sold directly to hospitals or surgical centers for the purpose of conducting a scheduled surgery. In November 2011, the Company launched its VEO Lateral Access and Interbody Fusion System.

The Company sells its products directly to hospitals and surgical centers in the United States and certain European countries, and to independent distributors elsewhere. The Company also markets its products at various industry conferences and through industry organized surgical training course. The Company has developed and markets two fusion products that are delivered using its pre-sacral approach include AxiaLIF 1L and AxiaLIF 2L+. Its products include surgical instruments for creating an access route to the L4/L5/S1 vertebral bodies, fusion implants, as well as supplemental stabilization products.

AxiaLIF Lumbar Fusion Implants

The Company markets AxiaLIF family of products for single and two level lumbar fusion, the VEO lateral access and interbody fusion system, the Vectre and Avatar posterior fixation systems and Bi-Ostet! ic bone void filler, a biologics product. The Company also market products that may be used with its AxiaLIF surgical approach, including bowel retractors, a bone graft harvesting system and additional discectomy tools. Its AxiaLIF implants and instruments, combined with facet screws or pedicle screws, provide surgeons with the tools necessary to perform a lumbar fusion.

The Company's AxiaLIF 1L and AxiaLIF 2L+ implants are threaded titanium rods, that come in varying lengths to enable one-level L5/S1 fusions and two-level L4/L5/S1 fusions. As they are implanted, its design allows for the separation of the vertebrae to restore disc height.

VEO Lateral Access and Interbody Fusion System

This system features a two-stage retraction method that focuses on nerve visualization followed by controlled retraction. The VEO Lateral System is designed for direct visualization of the psoas muscles and adjacent nerves prior to muscle dissection, and features a full range of PEEK lateral interbody implants and a variety of ergonomic instruments.

TranS1 Access and Disc Preparation Instruments

The Company�� pre-sacral approach requires the use of a sterile set of surgical instruments that are used to create a safe and reproducible working channel and to prepare the disc and vertebrae for its implant. The instrumentation contained in the set includes stainless steel navigation tools and tubular dissectors to create the working channel, as well as nitinol cutters and brushes to cut and remove the degenerated disc material and prepares the disc space for its implant and the bone graft material.

Vectre Facet Screw System

The Company's Vectre facet screw system offers a cannulated facet screw inserted over a guidewire to provide stability while reducing the muscle and tissue trauma associated with conventional pedicle screws. The Vectre system features offer a reproducible posterior fixation option in select patients.

A! VATAR Ped! icle Screw System

In January 2010, the Company entered into an agreement to distribute Avatar, a pedicle screw system. Avatar can be used with or without its implants to provide lumbar posterior fixation. The AVATAR MIS System offers cannulated pedicle screws inserted over a guidewire to reduce muscle and tissue trauma. Extended tabs integrated to the screws provide a pathway for implantation of the rod while minimizing tissue dissection.

Bi-Ostetic Bone Void Filler

In February 2010, TranS1 entered into an agreement to sell Bi-Ostetic, an osteoconductive bone substitute. Bi-Ostetic is an alternative to allografts or cadaver bone. The spongy granules are bioceramics with interconnected porosity that mimic the cancellous bone structure.

Iliac Crest Bone Graft Harvesting System

The Company�� Iliac Crest Bone Graft Harvesting System is developed to aid surgeons in harvesting iliac crest autograft via a minimally invasive approach. Use of autograft, which is osteogenic, osteoinductive and osteoconductive, further improves the chances of fusion success. It provides structural support as well as scaffolding for new bone growth.

The Company competes with Medtronic Sofamor Danek, Johnson & Johnson DePuy Spine, Stryker Spine, NuVasive, Zimmer Spine, Synthes, Orthofix International, Globus Medical and Alphatec Spine.

Best Medical Companies For 2014: Galectin Therapeutics Inc (GALT)

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

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

Advisors' Opinion:

• [By Roberto Pedone]

   

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

   

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

   

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

   

   

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

   

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

   

Best Medical Companies For 2014: Prima BioMed Ltd (PBMD)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates. Advisors' Opinion:

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) dropped 38.17% to $1.45 after the company reported top-line analysis of CVac Phase 2 trial.

  Tower Group International (NASDAQ: TWGP) plummeted 24.31% to $10.49. Tower Group announced its plans to release its Q2 results during the week of October 7, 2013. FBR Capital downgraded the stock from Outperform to Market Perform.

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) shares dipped 38.59% to touch a new 52-week low of $1.44 after the company reported top-line analysis of CVac Phase 2 trial.

Best Medical Companies For 2014: Algeta ASA (ALGETA.OL)

Algeta ASA is a Norway-based biotechnology company engaged in the development of targeted cancer therapies based on its alpha-pharmaceutical platform. The Company�� principal product is Alpharadin for the treatment of bone metastases resulting from castration-resistant prostate cancer. The Company�� pipeline also includes Alpharadin for the treatment of bone metastases resulting from breast cancer, a combination of Alpharadin with Taxotere for the treatment of bone metastases resulting from prostate cancer and Thorium-227 showing various cancer indications. The Company develops Alpharadin in a development and marketing cooperation with Bayer Schering Pharma. Algeta ASA is active through the two wholly owned subsidiaries, Algeta Innovations AS and Algeta UK Limited. On April 12, 2012, the Company announced that it estabilished a subsidiary active in the United States, Algeta US.

Best Medical Companies For 2014: Pharmacyclics Inc (PCYC)

Pharmacyclics, Inc., incorporated on April 19, 1991, is a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. The Company's clinical development and product candidates are small-molecule enzyme inhibitors designed to target biochemical pathways involved in human diseases. As of June 30, 2011, it had three drug candidates under clinical development and a number of preclinical lead molecules. This includes an inhibitor of Bruton�� tyrosine kinase (Btk) (PCI-32765) in Phase II studies in hematologic malignancies; a Btk inhibitor lead optimization program targeting autoimmune indications, an inhibitor of Factor VIIa (PCI-27483) in a Phase II clinical trial in pancreatic cancer, and a histone deacetylase (HDAC) inhibitor (PCI-24781) in Phase I and II clinical trials in solid tumors and hematological malignancies as of June 30, 2012.

As of June 30, 2012, the Company developed ibrutinib, which has demonstrated clinical activity and tolerability in Phase I and Phase II clinical trials in a variety of B-cell malignancies, including chronic lymphocytic leukemia (CLL) and a number of non-Hodgkin�� lymphoma (NHL) subtypes. CLL, mantle cell lymphoma (MCL), follicular lymphoma (FL), diffuse B-cell lymphoma (DLBCL) and multiple myeloma (MM) are specific indications of its current or planned Phase Ib/II and Phase III development program. had development programs for B-cell malignancies and autoimmune diseases. For malignant indications it has developed PCI-32765, which has demonstrated clinical activity and tolerability in Phase I and Phase II clinical trials in a range of B-cell malignancies, including chronic lymphocytic leukemia (CLL) and a number of non-Hodgkin�� lymphoma (NHL) subtypes. CLL, mantle cell lymphoma (MCL), follicular lymphoma (FL), diffuse large B cell lymphoma (DLBCL) and multiple myeloma (MM) are specific indications of its Phase II development. It has developed an assay! to measure occupancy of Btk in PBMCs using a cell-permeable fluorescently-labeled derivative of PCI-32765.

Factor VII is an enzyme that becomes activated (FVIIa) by binding to the cell surface protein tissue factor (TF), a protein found in the body that helps to trigger the process of blood clotting in response to injury. TF is over expressed in many cancers including gastric, breast, colon, lung, prostate, ovarian and pancreatic cancers. In these tumors, the FVIIa/TF complex induces intracellular signaling pathways by activating protease activated receptor 2 (PAR-2), another cell-surface protein. This in turn increases the expression of interleukin-8 (IL-8), a protein produced by white blood cells and other immune cells in response to pathogenic stimulation, and vascular endothelial growth factor (VEGF), a signal protein produced by cells that stimulate the growth of blood vessels. Both proteins play an important role in tumor growth and metastases as well as angiogenesis (growth of new blood vessels). FVIIa/TF complex also initiates the coagulation (a process by which blood forms clots) processes implicated in the high incidence of thromboembolic (the process by which the blood clots within a blood vessel) complications seen in patients with TF-expressing cancers. Thromboembolic events are a cause of death in patients with cancer and anticoagulant treatment has been shown to improve survival in a variety of cancers (Klerk et al. JCO. 2005).

PCI-27483 Factor VIIa Inhibitor

The Company�� Factor VIIa inhibitor PCI-27483 is a first-in-human small molecule inhibitor that selectively targets FVIIa. As an inhibitor of FVIIa, PCI-27483 has two potential mechanisms of action: inhibition of intracellular signaling involved in tumor growth and metastases and inhibition of early coagulation processes associated with thromboembolism.

Factor VIIa PCI-27483 Clinical Development Update

A multicenter Phase I/II of PCI-27483 in patients with locally a! dvanced o! r metastatic pancreatic cancer that are either receiving or are planned to receive gemcitabine therapy has completed enrollment. The Phase II portion of the study randomized patients to receive either gemcitabine alone or gemcitabine plus PCI-27483 (1.2 mg/kg twice daily). The objectives are to assess the safety of FVIIa Inhibitor PCI-27483 at pharmacologically active dose levels, to assess potential inhibition of tumor progression and to obtain initial information of the effects on the incidence of thromboembolic events. Due to a paradigm shift away from the use of gemcitabine alone for the treatment of pancreatic cancer, enrolling patients in this randomized study has been challenging. PCYC is evaluating other alternatives for development of this agent.

A multicenter Phase I/II of PCI-27483 in patients with locally advanced or metastatic pancreatic cancer that are either receiving or are planned to receive gemcitabine therapy has completed enrollment. The Phase II portion of the study randomized patients to receive either gemcitabine alone or gemcitabine plus PCI-27483 (1.2 mg/kg twice daily). PCI-27483 is covered by United States patents and patent applications and counterpart patents and patent applications in fourteen ex-United States territories, including Europe, Canada, Mexico, Japan, China, India, South Korea, Australia and Brazil.

Advisors' Opinion:

• [By Ben Levisohn]

  [The] sell-off in recent days was broad based and…affecting stocks in direct relationship to their volatility and expected duration of negative cash flow. Small and mid cap stocks were most affected (especially post-IPO stocks), and those with major uncertain events looming (MDVN) or with significant revenue upside already built into valuation (PCYC) were among the most severely affected. However, nothing changed in the environment to suggest that those events were any more or less likely to have positive outcomes yesterday, or to suggest that revenue potential was any more or less likely to be achieved than was previously expected.