Good Stocks To Invest In 2014: 2013

Tuesday, December 31, 2013

Madoff’s ex-finance chief testifies in NY trial

NEW YORK — The ex-finance chief for Ponzi scheme architect Bernard Madoff took the witness stand against five former co-workers Monday and began to sketch evidence that allegedly enmeshes them in the fraud.

Appearing as the star prosecution witness, Frank DiPascali, 57, testified he played an essential role in the decades-long scheme that stole more than $17 billion from thousands of charities, celebrities, ordinary investors, financial firms and other entities.

Testifying nearly five years to the date the longest-running Ponzi scheme in financial history finally collapsed, DiPascali did not immediately accuse the five former co-workers of being knowing participants in the scheme — as they stand charged.

But DiPascali — dressed in a light gray suit and speaking with a gravely New York accent — described how he first saw evidence of the scam shortly after joining Madoff's firm in 1975.

Under questioning by Assistant U.S. Attorney John Zach, he described how a Madoff trader provided stock data from newspapers to Madoff executive assistant Annette Bongiorno, the next-door neighbor who helped him get the job. Bongiorno, one of the five co-defendants, used that data to create monthly financial and trading reports for Madoff's customers.

Facing DiPascali in the Manhattan federal courtroom with Bongiorno were: Daniel Bonventre, Madoff's former director of operations; JoAnn Crupi, another ex-assistant; and Jerome O'Hara and George Perez, former Madoff computer programmers.

The five are accused of conspiracy and fraud for allegedly helping Madoff. They have pleaded not guilty and maintained they were hoodwinked by their former boss.

Madoff confessed the scam to his sons in Dec. 2008 as he unsuccessfully tried to cope with investor withdrawal requests prompted in part by the national financial crisis. They notified authorities. The now-75-year-old disgraced financier pleaded guilty in 2009 without standing trial. He's now serving a 150-year prison sentence in a Nor! th Carolina federal facility.

DiPascali testified that he awoke on Dec. 11, 2008 to a cell phone call from Madoff, who told him that FBI agents were in the company's office. "Why are you calling me?" DiPascali testified he responded and then said he "threw the phone across the room."

Asked by Zach what he thought DiPascali said "that I was going to jail, because I knew the nature of the operation and I knew why the firm was busted."

Aware of the impact DiPascali's unsavory central role in the scam could have on jurors, Zach led him through his own 2009 guilty plea to conspiracy, fraud and other charges. DiPascali testified that prosecutors may provide a letter about his cooperation to the judge who could sentence him for up to 125 years in prison. But he said he has been given no promises that will happen.

Defense lawyers will get a chance to cross-examine DiPascali when prosecutors finish their direct examination of the former Madoff lieutenant. They signaled during the trial's opening statements in October that they plan to argue DiPascali would say anything to shorten the 125-year maximum potential prison term he faces.

O'Hara defense lawyer Gordon Mehler argued at that time that recruiting DiPascali to testify against the former co-workers was "the equivalent of the Big Bad Wolf getting on the witness stand and condemning Little Red Riding Hood."

Prosecutors detailed DiPascali's continuing cooperation in a heavily-redacted Nov. 15 letter filed with U.S. District Court Judge Richard Sullivan. The judge scheduled a sentencing update for May 2014.

Asked by Zach what sentence he hoped to receive if he provides truthful testimony in this case and other Madoff investigations, DiPascali said "something substantially less" than the maximum term.

Monday, December 30, 2013

Disney's Deal With Netflix Was Inevitable

No company other than Netflix (NASDAQ: NFLX ) could have given Walt Disney (NYSE: DIS ) the deal it wanted for four new superhero TV shows, Fool contributor Tim Beyers argues in the following video.

Netflix offers each new Marvel show international distribution to as many as 40 million viewers worldwide. Disney can't achieve that on its own, Tim says, because it controls a limited number of channels for offering live action superhero content and ABC already airs Marvel's Agents of S.H.I.E.L.D.

History also favors the deal. More than 66% of gross receipts for Iron Man 3 came from overseas territories. Thor: The Dark World is also tracking well in foreign territories, much like its predecessor. Settling for U.S.-centric distribution would be aiming too low, Tim says.

Disney also has a history of licensing properties to experts. Think of how it shuttered LucasArts in the months following its acquisition of Lucasfilm. Electronic Arts is now tasked with creating the next round of Star Wars video games.

Now it's your turn to weigh in. What do you expect from Marvel now that Disney's deal with Netflix is in place? Please watch the video to get Tim's full take, and then leave a comment to let us know what you think.

The superhero stock your portfolio needs
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Saturday, December 28, 2013

5 Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Poised for Breakouts

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Rocket Stocks Ready for Blastoff

With that in mind, let's take a look at several stocks rising on unusual volume today.

Hain Celestial Group

Hain Celestial Group (HAIN) manufactures, markets, distributes and sells natural and organic products. This stock closed up 1.7% to $79.56 in Monday's trading session.

Monday's Volume: 801,000

Three-Month Average Volume: 521,395

Volume % Change: 50%

>>5 Hated Earnings Stocks You Should Love

Shares of HAIN moved higher on Monday after a Piper Jaffray analyst upgraded the stock from neutral to overweight on rising demand for organic, natural, gluten-free foods, as well as those that have been genetically modified. Piper said that Hain Celestial is well-positioned to capitalize on these trends and raised their price target to $94 from $80.

From a technical perspective, HAIN spiked modestly higher here right above its 50-day moving average of $77.49 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $75.81 to its intraday high of $80.40. During that move, shares of HAIN have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HAIN within range of triggering a near-term breakout trade. That trade will hit if HAIN manages to take out Monday's high of $80.40 and then more resistance at $81.55 with high volume.
Traders should now look for long-biased trades in HAIN as long as it's trending above its 50-day at $77.49, and then once it sustains a move or close above those breakout levels with volume that hits near or above 521,395 shares. If that breakout hits soon, then HAIN will set up to re-test or possibly take out its next major overhead resistance levels at $83 to its 52-week high at $85.48.

ExOne

ExOne (XONE) is a global provider of 3D printing machines and printed products to industrial customers. This stock closed up 9.3% at $48.32 in Monday's trading session.

Monday's Volume: 1.81 million

Three-Month Average Volume: 879,349

Volume % Change: 93%

Shares of XONE skyrocketed higher on Monday after FBR Capital Markets reiterated its outperform rating and a $75 price target on the stock.

>>3 Huge Stocks on Traders' Radars

From a technical perspective, XONE exploded higher here right above some near-term support at $42.16 with strong upside volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $72.90 to its recent low of $42.16. During that move, shares of XONE have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of XONE look ready to see an end in the short term to their downside volatility -- and potentially start a new uptrend.

Traders should now look for long-biased trades in XONE as long as it's trending above Monday's low of $44.02 and then once it sustains a move or close above Monday's high of $49.48 with volume that hits near or above 879,349 shares. If we get that move soon, then XONE will set up to re-test or possibly take out its next major overhead resistance levels at $56 to its 50-day at $60.21.

eHealth

eHealth (EHTH) is a health insurance exchange through which individuals, families and small businesses can compare health insurance products and purchase and enroll in coverage online. This stock closed up 2.3% at $33.98 in Monday's trading session.

Monday's Volume: 208,000

Three-Month Average Volume: 124,817

Volume % Change: 115%

>>5 Cash-Hoarders to Triple Your Gains

From a technical perspective, EHTH trended modestly higher here right above some key near-term support levels at $32 and $31 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $26.68 to its recent high of $35.92. During that uptrend, shares of EHTH have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EHTH within range of triggering a major breakout trade. That trade will hit if EHTH manages to take out Monday's high of $34.06 to its 52-week high at $35.92 with high volume.

Traders should now look for long-biased trades in EHTH as long as it's trending above key support at $32 or at $31, and then once it sustains a move or close above those breakout levels with volume that's near or above 124,817 shares. If we get that move soon, then EHTH will set up to enter new 52-week-high territory above $35.92, which is bullish technical price action. Some possible upside targets off that move are $40 to $43.

Darling International

Darling International (DAR) is a recycler of food and animal by-products and provides grease trap services to food service establishments. This stock closed up 2.3% at $20.80 in Monday's trading session.

Monday's Volume: 1.97 million

Three-Month Average Volume: 676,482

Volume % Change: 215%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, DAR spiked higher here back above its 50-day moving average of $20.52 with strong upside volume. This move is quickly pushing shares of DAR within range of triggering a big breakout trade. That trade will hit if DAR manages to take out some near-term overhead resistance at $21.49 and then once it clears its 52-week high at $22.20 with high volume.

Traders should now look for long-biased trades in DAR as long as it's trending above some key near-term support at $20.17 or at $19.75 and then once it sustains a move or close above those breakout levels with volume that's near or above 676,482 shares. If that breakout hits soon, then DAR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27.

Dunkin' Brands Group

Dunkin' Brands Group (DNKN) is a franchisor of quick-service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. This stock closed up 1% at $45.20 in Monday's trading session.

Monday's Volume: 1.48 million

Three-Month Average Volume: 846,494

Volume % Change: 145%

>>5 Big Trades to Take Now

From a technical perspective, DNKN jumped higher here right above its 50-day moving average of $43.98 with above-average volume. This move briefly pushed shares of DNKN into breakout territory, after the stock flirted with some near-term overhead resistance at $45.55. Shares of DNKN closed just below that breakout level at $45.20 with volume that was well above its three-month average action of 846,494 shares. Shares of DNKN are now starting to move within range of triggering a major breakout trade. That trade will hit if DNKN manages to take out Monday's high of $45.49 and then once it clears its all-time high at $46.50 with high volume.

Traders should now look for long-biased trades in DNKN as long as it's trending above its 50-day at $43.98 or above more near-term support at $43.44 and then once it sustains a move or close above those breakout levels with volume that's near or above 846,494 shares. If that breakout hits soon, then DNKN will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout $50 to $55, or even $60.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Wednesday, December 25, 2013

Top 5 Medical Companies To Invest In 2014

With shares of General Electric (NYSE:GE) trading around $23, is GE an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

General Electric is a diversified industrial, technology, and financial services company that operates worldwide. The products and services of the company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. General Electric�� segments include: Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. General Electric is a leading provider of a wide range of products and many are essential in daily lives of consumers and companies around the world.

General Electric (GE Capital) and American International Group (NYSE:AIG) have been designated by the Financial Stability Oversight Council as being non-bank ��ystemically important financial institutions.��What will change? Since both companies are deemed to potentially�pose a threat to a financial system in crisis, they�are now subject to regulation under the Dodd-Frank financial reform act, which means the companies will face government scrutiny. As countries continue to grow, General Electric will continue to see a rise in profits by providing key products on an ongoing basis.

Top 5 Medical Companies To Invest In 2014: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

Top 5 Medical Companies To Invest In 2014: Cerus Corporation(CERS)

Cerus Corporation, a biomedical products company, engages in the development and commercialization of the INTERCEPT Blood System. The company?s INTERCEPT system is designed to inactivate blood-borne pathogens in donated blood components intended for transfusion. It markets the INTERCEPT system for platelets and plasma primarily in Europe, the Russian Federation, and the Middle East. The company is also developing INTERCEPT Blood System for red blood cells or red blood cell system, which is designed to inactivate blood-borne pathogens in donated red blood cells for transfusion. Cerus Corporation has collaboration agreements with Baxter International, Inc.; and BioOne Corporation, as well as the United States Armed Forces. The company was founded in 1991 and is based in Concord, California.

Advisors' Opinion:

[By Seth Jayson]
Cerus (Nasdaq: CERS ) is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cerus's revenues will expand 15.0% and EPS will remain in the red.

Top Medical Companies To Watch In Right Now: Multicell Technologies Inc (MCET)

MultiCell Technologies, Inc., incorporated on April 28, 1970, is a biopharmaceutical company. The Company is engaged in developing novel therapeutics and discovery tools to address unmet medical needs for the treatment of neurological disorders, hepatic disease, cancer and interventional cardiology and peripheral vessel applications. The Company�� portfolio of lead drug candidates is in various stages of discovery optimization, and preclinical and clinical development, and includes MCT-125, a Phase II therapeutic candidate for the treatment of PMSF, which has demonstrated efficacy in a 138-patient Phase IIa clinical trial; MCT-465, a preclinical synthetic dsRNA therapeutic candidate and potent immune enhancer for the treatment of solid tumor cancers, such as those expressing TLR-3; MCT-475, a discovery stage antibody therapeutic candidate used in combination with dsRNA for the treatment of solid tumor cancers, and MCT-485, a discovery stage dsRNA therapeutic candidate with tumor cytolytic properties for the treatment of certain cancers.

MultiCell is pursuing research and development targeting degenerative neurological diseases, including multiple sclerosis (MS) and cancer. The Company�� therapeutics business addresses significant unmet medical needs for the treatment of neurological disorders and cancer through modulation of the innate and adaptive immune response. The Company�� therapeutic development platform includes several patented techniques used to isolate, characterize and differentiate stem cells from human liver; control the immune response at transcriptional and translational levels through double-stranded RNA (dsRNA)-sensing molecules such as the Toll-like Receptors (TLRs), RIG-I-like receptor (RLR), and Melanoma Differentiation-Associated protein 5 (MDA-5) signaling; generate specific and potent immunity against key tumor targets through a novel immunoglobulin platform technology; and modulate the noradrenaline-adrenaline neurotransmitter pathway.

The Com! pany�� medical device development platform is based on the design a next-generation bioabsorbable stent, the Ideal BioStent, for interventional cardiology and peripheral vessel applications. The Company�� Ideal BioStent is a stent incorporating salicylate, the active component in aspirin, directly into the polymer chain. The Ideal BioStent also incorporates Sirolimus (rapamycin) in addition to salicylate, providing anti-restenotic therapy similar to commonly used drug-eluting metal stents.

MCT-125 for the treatment of fatigue in patients with multiple sclerosi

Fatigue is the most common symptom in MS. Overall, greater than 75% of persons with MS report having fatigue, and 50% to 60% report it as the worst symptom of their disease. The Company exclusively licensed the drug candidate LAX-202 from Amarin Neuroscience Limited (Amarin) for the treatment of fatigue in patients suffering from MS.

MCT-465, MCT-475 and MCT-485 for the treatment of cancer

MCT-465, MCT-475, and MCT 485 are in preclinical development, and are being investigated as prospective treatments for primary liver cancer and triple negative breast cancer. MCT-465 is a high molecular weight synthetic dsRNA (polyA:polyU, of 70bps) with immune-enhancing properties. MCT-485 is a low molecular weight synthetic dsRNA (polyA:polyU of 5bps) with direct tumor cytolytic properties. MCT-475 is a chimeric recombinant therapeutic antibody molecule that carries tumor-associated antigen peptide recognition in its complimentary determining region (CDR).

Top 5 Medical Companies To Invest In 2014: Inovio Pharmaceuticals Inc (INO)

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

Inovio�� Solution

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

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

Cancer Synthetic Vaccines

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

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

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

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

Infectious Disease Synthetic Vaccines

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

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

Animal Health/Veterinary

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

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

Advisors' Opinion:

[By George Budwell]
Inovio Pharmaceuticals (NYSEMKT: INO ) develops DNA-based vaccines and delivers them using a proprietary electroporation technique. Shares of Inovio have been a roller coaster all year long, and have certainly been the playground of day traders. Last week, Inovio shares lost more than 10% of their value on heavy volume, suggesting the stock may continue to experience downward pressure. This rapid move downward is surprising because the company recently signed a licensing deal with Roche (NASDAQOTH: RHHBY ) to commercialize Inovio's multi-antigen DNA immunotherapies for prostate cancer and hepatitis B. As part of the deal, Inovio received $10 million upfront, and milestone payments could go as high as $412 million.

Top 5 Medical Companies To Invest In 2014: OncoSec Medical Inc (ONCS)

OncoSec Medical Incorporated, incorporated on February 8, 2008, is an emerging drug-medical device company. The Company focused on designing, developing and commercializing medical approaches for the treatment of solid cancers. In March 2011, the Company acquired from Inovio Pharmaceuticals, Inc. (Inovio) certain assets related to the use of drug-medical device combination products for the treatment of different cancers.

The Company�� acquired assets relate to certain non-deoxyribonucleic acid (DNA) vaccine technology and property relating to selective tumor ablation technologies, which it refers to as the OncoSec Medical System (OMS), a therapy which uses an electroporation device to facilitate delivery of chemotherapy agents, or nucleic acids encoding cytokines, into tumors and/or surrounding tissue for the treatment and diagnosis of various cancers. As of January 24, 2012, the Company had not generated any revenue from operations.

Advisors' Opinion:

[By James E. Brumley]
If you're looking for the next big biotech breakout stock, then OncoSec Medical Inc. (OTCMKTS:ONCS) deserves a place on your watchlist. This volatile cancer play has been down more than up 2011, but if you look closely at a long-term chart of ONCS, you may find it's already wiggled its way into a new uptrend. And, it may be only a matter of time before the bullish fireworks start to go off.
[By James E. Brumley]
How does the old saying go? Beggars can't be choosers? Two weeks ago, yours truly penned some bullish comments regarding OncoSec Medical Inc. (OTCMKTS:ONCS). The long and short of it was, if ONCS could clear a technical ceiling around $0.36, then life would get much easier for the bulls.
[By John Udovich]
Small cap biotech stocks AVEO Pharmaceuticals, Inc (NASDAQ: AVEO), OncoSec Medical Inc (OTCMKTS: ONCS) and MetaStat Inc (OTCBB: MTST) are focused on or are developing treatments or diagnostic technologies for metastatic cancers. In case you aren�� familiar with the term metastasis or metastatic, it�� the�spread of cancer from its primary site to other places in the body as cancer cells break away from a primary tumor, penetrate into lymphatic and blood vessels, circulate through the bloodstream and then grow in a new focus (metastasize) in normal tissues elsewhere in the body. In other words, it�� a dangerous form of cancer, but there are some small cap biotech stocks targeting it for diagnostics or treatment:
[By Bio-Wire]
Another company that has benefitted from Inovio�� newfound attention is OncoSec Medical (OTC: ONCS) ��a newer ��ffshoot�� company that uses a similar but distinctly different electroporation device known as the OncoSec Medical System (OMS) that is based on Inovio�� technology. The specific amplitude and frequency of the OMS electroporation is calibrated such that plasmid delivery into solid tumor masses is fully optimized, while CELLECTRA electroporation is less specialized and focus more on the vaccination of skin cells. The cross-license agreement made between Inovio and Oncosec also covers the two devices for their distinctly different applications.

Tuesday, December 24, 2013

Late Gains Lead Dow, S&P To New Highs

Stocks overcame early pessimism to end higher Friday, another day of records.

The Dow Jones Industrial Average gained 30.34 points, or 0.2%, to 15,658.36, topping yesterday's all-time high of 15,628.02.

The Nasdaq rose 13.84 points, or 0.4% to 3,689.59, another new 52-week high.

The S&P 500 added 2.8 points, or 0.2% to 1,709.44, edging out its previous 1,706.87 high.

Bucking the trend, the Russell 2000, which logged a record close yesterday, fell a fraction of a point.

It's the second day in a row of record closings, although Thursday's moves were much bigger. For the week, the Dow is up 0.6%, the Nasdaq climbed 2.1%, and the S&P added 1.1%.

For the Dow, it was its longest winning streak since the week ending August 17, 2012, when the market rose for six straight weeks.

Stocks shrugged off early concerns about a disappointing jobs report. Still, most big news makers were in the red.

Chevron (CVX) lost ground on its second-quarter report, as did Alpha Natural Resources (ANR).

J.C. Penney (JCP) ended lower despite reports that CIT had lifted its credit restrictions, while Weight Watchers (WTW) sank on its disappointing guidance and the departure of its CEO.

Monday, December 23, 2013

U.S. Air Force Rethinks Its Drone Strategy

"There are those that see JSF as the last manned fighter. I'm one that's inclined to believe that." -- Adm. Mike Mullen, former chairman of the U.S. Joint Chiefs of Staff.

When Admiral Mullen uttered those words a few years ago, it struck fear in the hearts of America's defense contractors -- well, those other than Lockheed Martin (NYSE: LMT ) , which builds the F-35 Joint Strike Fighter. A world without manned fighter jets, after all, promises to be a world that won't need to buy Lockheed Martin F-16s fighters, Boeing (NYSE: BA ) F/A-18 fighter bombers, or Northrop Grumman (NYSE: NOC ) EA-6B electronic warfare jets.

A brave new world...
Earlier this week, that world came one step closer, when Northrop's new X-47B prototype -- an armed, pilotless drone combat aircraft -- conducted the first-ever unmanned landing on an aircraft carrier off the Virginia coast. It's starting to become apparent that we really will one day have entire squadrons of drone fighter jets patrolling the skies, without a pilot among them.

X-47B takes off from aircraft carrier USS George H.W. Bush, Source: Wikimedia Commons

And yet, this poses a problem.

Pilotless combat aircraft, unless they're given full autonomy to conduct missions on their own, a la Skynet...

The Terminator, Source: Wikimedia Commons

...have a built-in Achilles' heel, in that to control them, one must maintain communication with them. This communications link, though, is vulnerable to hacking by bad guys. Presumably, the farther away the drone, the weaker the signal from "home" -- and the easier it will be for an enemy to disrupt our military's ability to control its drones.

...and how to survive in it
So, how does a military protect its unmanned aerial vehicles from hackers, and maintain control over pilotless drones in combat? The answer may be the solution to Lockheed's, Boeing's, and Northrop's problems.

"Most studies indicate that we are a little overly invested in [drone] capabilities for permissive environments and perhaps under-invested in capabilities for the high-end fight," laments one U.S. Air Force report. While General Atomics' Predators and Reapers may operate fine "droning" along uncontested airspace in Afghanistan, most UAVs today would be vulnerable when operating in an "anti-access/area denial (A2/AD) environment" such as Chinese or Russian airspace. They'd be equally incapable of defending themselves from hostile anti-aircraft fire, and from hostile hackers, who may attempt to jam communication with, or even take over control of pilotless drones.

According to a report on Flightglobal.com, USAF has been spending a lot of time lately thinking about how to run drones in such "contested environments".

One solution to this problem might be upgrading air defense systems on drones, and hardening their communications to resist jamming and hacking. Another might be to build "optionally manned" aircraft -- full-size fighter jets that could be piloted, or pilotless, depending on the theater in which they're called upon to operate. A third option might be to send a sort of piloted "mothership" along with a squadron of drones, to control and protect them from longer-distance jamming attempts.

And a fourth... might be to resign oneself to the possibility that drones may always be vulnerable to jamming -- and acknowledge that the world really hasn't changed all that much. Maintaining -- and building, and buying -- a mix of piloted, and pilotless aircraft may still be necessary.

Therein may lie salvation for the revenue streams of the piloted fighter jet manufacturers.

Although they may be the most obvious, defense contractors aren't the only companies struggling for world domination. In fact, the struggle for market share among consumer products companies may be just as fierce. But the good news is... we're winning here, too. If you want to know how (and who), then read The Motley Fool's free report on "3 American Companies Set to Dominate the World." Click here to get your free copy before it's gone.

Sunday, December 22, 2013

1 Thing We Paid Attention to at the Apple Conference

The following video is from Monday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jason Moser and Andy Cross, discuss the top business and investing stories of the day.

Apple (NASDAQ: AAPL ) kicked off its annual Worldwide Developer Conference yesterday. While many investors were expecting a new operating system and the official launch of iRadio, others held out hope for the much-rumored "iWatch" or even an "iTV." In this installment of MarketFoolery, our guys analyze the prospects for Apple and why investing in the company's ecosystem is one of the best moves Apple can make.

Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

The relevant video segment can be found between 6:59 and 11:12.

For the full video of Monday's MarketFoolery, click here .

Saturday, December 21, 2013

Trade In Your Old Smart Phone

With Apple's latest iPhone release, you may be itching to ditch your old device. Options for trading in a smart phone for cash or credit toward a new one are growing: Apple and Walmart recently launched in-store phone trade-in offers. And Best Buy, major wireless carriers, and online outfits such as Amazon and Gazelle have programs, too.

See Also: Control Your Home from a Smart Phone

The payback varies by the type of phone, its condition and the wireless carrier that it's designed to work with. A phone that doesn't power on or that has a cracked screen or water damage will get the lowest return, if any. You'll fetch more for a device with a few scratches but working keys. Phones that appear to be unused earn top dollar. Amazon, for example, doesn't accept nonfunctioning phones, but it recently offered $243 in store credit for a black Verizon Wireless 16 gigabyte iPhone 5 in acceptable condition (worn but functional), $284 for the same phone in good condition (flawless display, light scratches) and $315 for a phone that's like new. Devices that run on so-called GSM networks, such as those from AT&T and T-Mobile, can be worth more because they have better international compatibility.

Compare offers. Bryan Strawbridge of Indianapolis got an estimate of $190 for his AT&T 16GB iPhone 4s at Gazelle.com. But the Apple Store offered a $204 credit, which he put toward a 32GB iPhone 5s. "It was seamless and quick," he says.

Friday, December 20, 2013

Target Reports 40 Million Credit, Debit Cards May Have Been Hacked

By Hal M. Bundrick

NEW YORK (MainStreet) Your holiday shopping may have just taken an ugly turn. If you shopped at a Target store between November 27 and December 15 and used a debit or credit card, keep a close eye on your bank account. There's a good chance you've been hacked. Some 40 million cards accounts may be affected by an expansive security breach, according to a Target statement. The company has retained the services of a third-party forensics firm to assist in the investigation.

"Target's first priority is preserving the trust of our guests and we have moved swiftly to address this issue, so guests can shop with confidence. We regret any inconvenience this may cause," said Gregg Steinhafel, chairman, president and CEO of Target. "We take this matter very seriously and are working with law enforcement to bring those responsible to justice."

The popular national chain says the "issue has been identified and resolved." Unauthorized access to Target payment data potentially impacts purchases made at all of the 1,797 Target stores in the U.S. during the two and a half week period. "We began investigating the incident as soon as we learned of it," a statement on the Target Website says. "We have determined that the information involved in this incident included customer name, credit or debit card number, and the card's expiration date and CVV (the three-digit security code)." Consumers are urged by the company to keep a close eye on their accounts for signs of fraud or identity theft. Any suspicious or unusual activity should be reported to the financial institution that issued the credit or debit card. --Written by Hal M. Bundrick for MainStreet

Thursday, December 19, 2013

Financial Planning Advice From Around the Web

As the year comes to an end, many of us like to reflect on what we've accomplished and what we would like to achieve during the coming year. This exercise is especially important when it comes to our financial lives. A year-end review can help you determine whether you reached your goals or whether you need to make adjustments to get your finances on track. I've rounded up advice from a few of our favorite personal finance bloggers to help you with this process.

SEE ALSO: 10 Reasons You'll Never Be Rich

6 Things to Do With Your Money Before 2014 [Credit.com]
"Let's take a look at a few ways you can maximize your tax savings before the end of the year."

What's Holding You Back [Money Crush]
"It's almost that goal-setting time of year, but before you begin thinking about your New Year's Resolutions consider this: Have you ever said to yourself, "Oh, I really should do ______" (maybe last year?) but then you don't follow through?"

How to Balance The Future With the Present [Consumerism Commentary]
"Once you've planned for the future, you're in a better position to be concerned about making the most out of every day, but you can live in the moment without sacrificing your future."

Hidden Emotional Factors That May Be Destroying Your Finances [ReadyForZero]
"If you've never thought about how your emotions are dictating your relationship with money, now's the time to start."

Survey Finds Most Americans are Delusional About Their Money -- Are You? [Money Under 30]
"We give others failing marks for saving and investing, but give ourselves an A or a B! Something doesn't add up. Are you delusional about your money skills?"

Wednesday, December 18, 2013

Stocks to Watch: 3M, Boeing, Athersys

Among the companies with shares expected to actively trade in Tuesday’s session are 3M Co.(MMM), Boeing Co.(BA) and Athersys Inc.(ATHX)

3M raised its quarterly dividend by 35%, as the company continued its effort to consistently boost its payouts to shareholders. 3M–whose products include Scotch tape, Nexcare bandages and Post-it Notes–is known as a reliable profit machine. Dividends have increased annually in each of the past 55 years. Shares rose 2.8% to $131 premarket.

Boeing said its board authorized a 50% increase to its regular dividend and $10 billion to repurchase its shares over the next two-to-three years, efforts to satisfy shareholders who have been hungry for the company to return some of its soaring earnings to investors. Shares edged up 2.3% to $137.86 premarket.

Athersys said its therapy to prevent a type of complication in patients receiving stem cell transplants was granted orphan drug status by European regulators. Shares surged 8.1% to $2.20 in premarket trading.

Vringo Inc.(VRNG) said a Germany court found that Chinese telecommunications firm ZTE Corp.(000063.SZ) infringed one of its European patents and is required to pay damages. Shares of the small mobile technology and intellectual-patent firm jumped 10% premarket to $3.40.

FuelCell Energy Inc.'s(FCEL) fiscal fourth-quarter loss narrowed as the power-equipment maker reported broad sales growth across all segments and wider gross margins. But the loss was still steeper than expected, sending shares down 11% to $1.65 premarket.

KKR(KKR) & Co. said it reached a deal to acquire KKR Financial Holdings LLC(KFN), bringing under its roof the separate, specialty-finance company managed by the private-equity firm that pursues debt investments and other bets. KKR, known for large debt-fueled corporate takeovers, signed an agreement to take over the sister firm in a $2.6 billion all-stock deal, the New York company said. Shares of KKR Financial jumped 28% to $12.12 in premarket trading.

Targacept Inc.'s(TRGT) investigational secondary treatment for schizophrenia didn’t show significant improvement in negative symptoms or cognitive function in a Phase 2b trial after 24 weeks. The biopharmaceutical company said it wouldn’t pursue further development of the therapy for the mental illness or for Alzheimer’s Disease. Shares fell 31% to $4.09 premarket.

Shares of Rick's Cabaret International Inc.(RICK) jumped after the adult nightclub owner reported improving fiscal fourth-quarter results and projected better profitability in the new fiscal year. The stock jumped 14% to $12.23 premarket.

AT&T Inc.(T) agreed to sell its wireline business and statewide fiber network in Connecticut to Frontier Communications Corp.(FTR) for $2 billion as the telecommunications giant continues to focus more on its wireless business.

FactSet Research Systems Inc.'s(FDS) fiscal first-quarter profit rose 4.8% as an increase in its client count offset charges from the company’s acquisition of a financial data service company. The company gave a cautious earnings view for the current quarter.

Honeywell International Inc.(HON) gave a cautious profit outlook for 2014, while the maker of aerospace, building control and safety products offered a revenue target that fell short of Wall Street’s expectations.

Jefferies Group LLC’s fiscal fourth-quarter earnings jumped 68% on strong investment banking revenue. Part of Leucadia National Corp.(LUK), it is often seen as something of a barometer for larger rivals Goldman Sachs Group Inc.(GS) and Morgan Stanley(MS). Chief Executive Richard B. Handler said the company finished the year strongly and fixed income improved significantly from the third quarter.

Magellan Health Services(MGLN), which manages public-sector pharmacy benefits programs and other health-care services, offered a preliminary earnings forecast for next year that badly missed Wall Street expectations as share repurchases and the effect of the Affordable Care Act tax are seen hurting the bottom line, while its revenue estimate was stronger than expected.

M&T Bank Corp.(MTB) and Hudson City Bancorp Inc.(HCBK) said they expect additional delays in completing their merger deal, and any action isn’t expected to occur until the latter half of 2014. “While all parties are disappointed that the transaction is delayed further, we are gratified that M&T continues to see the value in the Hudson City franchise,” said Hudson City CEO Ronald E. Hermance Jr.

Sanderson Farms Inc.’s fiscal fourth-quarter earnings soared as the company continued to gain from a stronger poultry market, with chicken-breast prices improving and feed costs dropping. Earnings missed expectations, though the top line beat.

Starbucks Corp. said it expects record purchases and activations of its Starbucks Cards on Thursday, as the coffee company anticipates a reprise of last year’s Thursday before Christmas, when more that 2 million of the cards were purchased in the U.S. and Canada.

Tuesday, December 17, 2013

As pay phones vanish, so does lifeline for many

ROCHESTER, N.Y. — For pay phones here and everywhere else in America, the dial tone is flat lining.

In an age when just about everyone seems to have a cellphone, coin-operated phones are disappearing from the landscape at a rapid clip — and with them a lifeline for the poor.

2012: Phone booths disappear
2011: Number of pay phones drops to 425K

Those that remain stand on street corners and in suburban plazas like monuments to history, quaint relics of the past and curiosities to children of the 21st century.

"I've never used a pay phone," Jessica Maye, 20, confessed recently while walking downtown. "I tried to use a pay phone once, but it didn't work, I didn't know how to use it."

Advancements in mobile communications technology and reductions in price have put the pay phone on the endangered species list, and the latest figures show how quickly they are vanishing.

Pay phones in the United States numbered 243,487 at the end of last year, the most recent figures available from the Federal Communications Commission. Ten years earlier, more than 1.7 million were installed across the country with more than 2 million at the turn of the century, according to the FCC.

Waiting for a bus in downtown Rochester, Eddie These defied a reporter to spot someone using one of the pay phones a few yards from the bus shelter.

"They're obsolete. They're like dinosaurs," said These, 57, a Rochester resident who recalled last using a pay phone more than 15 years ago.

A 2002 movie that won't be made again: Colin Farrell, starring in "Phone Booth," is trapped after being told by a caller -- a serial killer with a sniper rifle -- that he'll be shot if he hangs up.! (Photo: 20th Century Fox)

But just as the likes of Maye and These wonder who still plunks down 50 cents — yes, the cost has doubled in the past decade — to make a call, pay phone operators and trade associations insist pay phones are used and serve an invaluable public function.

"The best numbers we have I think underestimate the number of households in America that have no phone at all," said Randy Nichols, president of the American Public Communications Council. "If somebody doesn't have a phone, the only place they can make a call is the pay phone."

According to the U.S. Census Bureau, nearly 3 million households in the country do not have access to either a landline or cellphone. Residents of those households in many cases rely on borrowing cellphones and pay phones.

James McMullen, 58, of Rochester, is one of those people. He said he uses pay phones every day to place calls to his friends, his doctor, his work and whoever else he may need to reach.

"I use a pay phone just about every day," said McMullen, slapping a thick hand on top of a phone affixed to the Cox Building on St. Paul Street. "I don't use a (cell) phone and I don't have a regular phone, so I use the old iron one."

Another Rochester resident, Randy Tisdale, 33, has a cellphone but said he uses a pay phone every couple of days to save prepaid minutes and money. When he runs out of minutes, he said, he relies on pay phones all the more.

"It's better to have these when you don't have no other phone," Tisdale said, referring to a nearby pay phone.

“I'm not going to sit here and tell you it's a booming, growing business, (but) there's also a public service element to this.”

— Phil Yawman, Frontier Communications

Locally, roughly 264,000 calls were placed last year from the 3,055 pay phones in the Rochester area, according to Frontier Communications Corp., which operates most of the remaining pay phones in the region. That translates to each phone being used ! once ever! y four days — a rate well shy of the 80 to 100 calls a month that industry advocates estimate are needed for a pay phone to turn a profit.

But Frontier points out that the phones also facilitated 3,500 free calls to 411 and 911 last year, and the company says those calls are on track to top 5,200 this year.

"I'm not going to sit here and tell you it's a booming, growing business," said Phil Yawman, vice president and general manager of Frontier's greater Rochester market. "But it's still a viable piece of what we do and a business that we remain committed to even thought it's not the growth business it was years ago.

"And there's also a public service element to this," he said. "We believe it's important for everyone in this community to be able to get access to the outside world quickly in a time of need."

Emergencies and natural disasters periodically restore the luster of pay phones as streetscape lifelines. Reports of pay phone usage spiked, for instance, in the aftermath of 9/11 and Hurricane Sandy, when cellphone service was overwhelmed or towers were rendered useless.

Vanessa Ganzler, 30, of Chili, N.Y., recalled being rescued because of a pay phone during her own minor emergency two months ago, when she discovered her cellphone battery had died and she needed to call a taxi. She said the episode reminded her how valuable pay phones could be in a pinch.

"Not every cellphone company is a 'Can you hear me now?'" said Ganzler, referring to the popular Verizon Wireless slogan. "They're not all reliable."

A pedestrian speaking on a mobile phone walks past a series of old red British phone boxes modeled into a work of art in 2004 in Kingston town centre in southwest London.(Photo: Adam Butler, AP! )

B! y the numbers

• 243,487: pay phones nationwide at the end of 2012

• 425,000: pay phones in 2011

• 1.7 million: pay phones in 2002

• 2.2 million: pay phones in 2000

Sunday, December 15, 2013

I Found a Billion-Dollar Market in My Backyard

The end-of-year holiday season is a time for memories and reflection, and I found myself engaging in a little of both the other day.

I was alone at the house and was stringing up some Christmas lights and found myself drifting back in time... to middle school and high school.

In seventh grade, I got my first part-time job - changing lightbulbs at an apartment complex. I also began designing and building custom light boxes using colored bulbs controlled with staggered timing switches.

In my freshman year in high school - for my electronics class - I put together a pretty sophisticated strobe light from a nice kit. That was my introduction to capacitors, diodes, and wiring diagrams.

There was a reason for this mental road trip.

You see, the lights that I was stringing up around the perimeter of my house the other day happen to use a very specialized technology.

And this specialized technology is something that I knew you'd want to hear about because it represents a massive profit opportunity.

Today I'm going to tell you all about the technology. And I'm going to show you one of the best stocks to buy to make money from it.

Home Improvement

Of course, I'm talking about LEDs, which stands for "light-emitting diodes."

As a veteran analyst out here in Silicon Valley, I know that this technology is state of the art. And as a consumer and lifelong electronics nut, I can honestly say this lighting is the most beautiful I've ever used. At our house this holiday season, LED lighting graces the family Christmas tree inside the house - and our Japanese maple tree out in the yard.

As I stood in our backyard, admiring my handiwork on a moonless night, I finally realized that this lighting technology is every bit as beautiful as it is efficient.

This is truly one of those rare instances where aesthetics and investing go hand in hand...

See, the low-heat glow given off by LED lighting will serve as the catalyst that helps this technology sweep the nation and become a billion-dollar-plus business by the end of this decade.

And it all started with the simple lightbulb...

My deep understanding of this field is one of the reasons why I'm such a big fan of Cree Inc. (Nasdaq: CREE). Founded in 1987, the Durham, N.C.-based company introduced its first LED just two years later - long before the nation was ready to accept this technology for everyday use.

Particularly back then, LEDs represented a huge advance in technology, but the applications were severely limited. The technology itself was still somewhat limiting: Three decades ago, LEDs were really only available for specific wavelengths - such as blue or red - as opposed to the white light used all over the world.

LEDs are solid-state devices based on semiconductor technology. In fact, a diode is a very simple semiconductor, and LEDs are literally semis that are specially designed to emit light.

Today there's a massive - and I mean massive - potential market. And Cree has a chance to crack it. Right now, only about 1% of all light sockets in the United States have LEDs installed in them.

Industry analysts estimate that people buy about 2 billion lightbulbs a year, or more than 5 million a day.

If you do the math, that roughly works out to $1 billion in annual lightbulb sales.

A Billion Here, a Billion There

I'm going to let you in on a secret that the rest of the investment world seems to have missed.

Most analysts use that billion-dollar figure to estimate total LED sales by the end of the decade.

But I think that forecast falls way short of the industry's potential.

Here's why. The forecast doesn't account for commercial buildings. Nor does it include sales of LEDs for cars, where the technology is really catching on. Ford Motor Co. (NYSE: F),Volkswagen AG, and Chrysler LLC, just to name a few, use them for headlamps, parking lights, and taillights.

And now this exciting technology is finding its way into billboards and streetlights.

Just as an example, the Bay Bridge linking the East Bay to San Francisco is adorned with an artistic necklace of lights that utilizes 25,000 LEDs.

Moreover, that $1 billion estimate includes the value of the incandescent bulbs that were once nearly ubiquitous - until the U.S. Congress banned them a few years back because they're so energy inefficient.

Indeed, an LED bulb can easily cost 20 times more than an incandescent one, which retailed for as little as $0.50. Over their lifetime, however - and this is crucial - LEDs are much cheaper to operate than either incandescent or high-output halogen bulbs.

To fully understand this, let's return to my personal, real-world example.

Hard to Believe

As I stood in my yard staring at the Japanese maple the other night, I engaged in a bit of mental arithmetic. The fixtures I bought cost twice as much as the halogen ones I replaced. But they included the LED lights and are guaranteed to last 50,000 hours - enough to burn 'round the clock ... for more than 2,000 days.

And I can personally attest to the LEDs' energy efficiency. Just to prove a point, I put on a pair of work gloves and touched a mini halogen bulb while it was on.

That bulb was so hot that it almost burned right through my glove. But I felt no heat at all from the LEDs - even after touching them with my bare hands.

You don't have to take my word for it. The U.S. Department of Energy estimates that switching to LED lighting over the next 20 years could save the nation some $250 billion in energy costs.

The conversion also would reduce electricity consumption for lighting by nearly one-half, the agency says.

For its part, Cree has carved out a commanding position in the growing LED sector. Over the past two years, the firm has refocused its operations to become more vertically integrated as a way to both lower overhead and expand into new markets.

Take its August 2011 purchase of Ruud Lighting for $520 million. The deal greatly enhanced Cree's position in the markets for streetlights, and lighting for hospitals, retail stores, and indoor commercial establishments.

At the same time, the company improved its research-and-development (R&D) operations and is limiting inventory to further squeeze costs.

Taken together, these moves have improved Cree's competitive advantage over challengers from China and other low-cost domestic importers.

All of Cree's efforts are paying off in the form of rising sales and surging profits.

And here's how it could pay off for you ...

Cree (Nasdaq: CREE): Packing a Punch

For its fiscal first quarter ended Sept. 29, Cree reported sales of $391 million, a 24% gain from the year-earlier period. Earnings per share (EPS) jumped 44% to $0.39.

Ordinarily, a report like that would ignite a nice little pop in the company's share price.

Instead, just the opposite happened.

Cree revised its guidance to show slightly lower growth for the current quarter as it spends more on marketing its line of LED bulbs for the retail market.

The stock got pounded back on Oct. 22, plunging nearly 17% in a single session.

Here's the thing: I believe the market grossly overreacted to the news.

In fact, I believe you right now have the chance to invest in the LED industry leader at the kind of discount that bakes a "margin of safety" into the share price.

Cree's shares currently trade at about $58 a share, giving the company a market cap of roughly $7 billion.

And the company is financially sound. It has an operating profit margin of 9% and is cash-rich. Last year, it brought in $125 million in free cash flow and has $1 billion in the bank with virtually no debt.

As we work together to pursue wealth at the Strategic Tech Investor, we usually target stocks to buy that have a good shot at doubling in price. But we also don't want to pass up big profit opportunities that are right in front of us.

In a recent Strategic Tech Investor column, I forecasted a Standard & Poor's 500 Index return of 15% in 2014. And after carefully studying Cree, we believe Cree could generate a return twice that of the broader market in the New Year.

In other words, we are predicting it could offer double the market's return - or a gain of 30%.

To generate that kind of gain, the stock would merely need to recover to its one-year closing high of $75.76, established back on Aug. 13.

Rebounding to that price doesn't take into account the huge earnings gains the company has reported of late - or the payoff on all that R&D money. If you factor that in, an upside of 45% or more over the next two to three years is entirely possible.

Cree represents one of those special situations that we've talked about in the past. By definition, stocks of this type do pose a bit more risk than average.

But gains of 30% to 45% make for a worthwhile potential payoff.

All of this ran through my mind as I finished my backyard lighting project, packed up my toolbox, and flipped the switch that caused our Japanese maple to blaze to life.

After decades of development - with LED technology having finally reached critical mass - the lighting capabilities that I've described to you today can achieve the same for your portfolio ... causing it to blaze to life.

In the meantime, we'll continue to ferret out these special profit opportunities for you.

[Editor's Note: Stocks aren't the only investment that Michael is watching. He's got his eye on a phenomenon that is white-hot right now: bitcoin. This "virtual currency" recently soared from $131 to $1,150 in just the past two months - a return of 778%. It's one heck of a story. And it's one that Michael understands better than anyone. Take a look here and you'll see what I mean.

Friday, December 13, 2013

Stock Buybacks at Market All-Time Highs

This has definitely been the era of stock buybacks with such low borrowing costs as companies are borrowing at very low rates not to expand the business, create innovative products, increase research and development but to buy back their own stock which isn`t cheap considering the multiple expansion in markets the last five years.

But earnings from a revenue side have been subpar to say the least and companies are buying back stock each quarter just to make their quarterly numbers look better than they actually are based upon the year over year business growth.

The funny thing is that this has been going on for four years, these are public companies right? At what point do the floats become so small that for all intents and purposes these are private companies? I am being a little facetious here, but this has to be the longest continuous era of stock buybacks on record all fueled by the Fed`s never before witnessed five straight years with the Fed Funds Rate at near zero percent.

Is this the Best Use of Company Capital?

It is a real shame that these companies don`t have some better use for this cheap government loans in essence than stock buybacks. How is the economy ever going to grow if these companies don`t try to expand their businesses with this cheap capital, hire more workers, and thus have future customers for their products who are now employed consumers.

But with stock floats getting smaller and smaller and company stocks at record highs isn`t this the opposite of buying low and selling high? The companies are buying their stock when it is extremely over-valued. Isn`t the smart use of stock buybacks to buy back the company stock when the company thinks that the shares are undervalued by the market? You know, buying low and selling high, doesn`t this just make for good business practices?

50% Losses on Buybacks?

By my thinking most of these stock buybac! ks are going to be underwater once QE ends this summer of 2014, and the stock buybacks are going to be net losses for these companies down the line. How do responsible boards allow this type of behavior, buying back stock at exceptionally high levels?

Furthermore, once interest rates start rising and companies have to start raising capital where do you think it is going to come from? These same shares are going to return to market at much lower prices, further pushing stock prices down vie share dilution. This is the exact opposite of how a solid business would want to manage operations, cash on hand, borrowing, and managing stock buybacks.

The reasoning is that this is all setting up future earnings to be real bad when all these shares come back to market for equity raises, which you know is inevitable, and these stocks are going to have just terrible quarters, further sending their stocks down in the process.

Market Crash Inevitable

All the factors are coming together for quite a correction in stocks at some point down the line, and this is just another example of buying time now, but paying a heavy price in the future. All of which further exemplifies why we are going to have another huge market crash, the boom and bust cycle of credit markets, and how every investor better be damn good at market timing. There is no other choice with these types of poor cash management issues at companies.

Misplaced Incentives Short-term in Nature

The cynical side of me who has worked at many fortune 500 companies sees this as the real motivation or at least a driving force. All the executive team, all the players at companies receive stock options in compensation packages, stock buybacks not only help shareholders right now with increased returns, but all these 'big dogs' at these companies make a fortune on these stock options with stock prices higher each consecutive year, and each successive month for 2013.

The delta between the issue price, and when they exercise ! these opt! ions is incredible right now, and the incentive to push these compensation packages through the moon via stock buybacks, even with the market at all-time highs, is just too good for these executive teams to pass up right now.

Retirement Golden Options Plan

In addition who cares if this is a poor use of company resources, if these shares are going to be largely underwater in three years, with the money these executives ( and we are not just referring to CEOs – employees who receive options can be quite broad from a numbers standpoint at large firms – all at the upper management level of course) make on these stock options they can retire comfortably, and they probably aren`t even going to be around at these firms when the proverbial mess hits the fan at these companies.

Boards Same As They Always Are – Borderline Incompetent

Consequently again I ask where is the board in all of this excessive use of stock buybacks quarter after quarter? Aren`t they supposed to be the checks and balances for this type of short-sighted behavior? I thought we learned something from the "Enron Era" of good old boys Boards!

When I heard Kyle Bass discussing one of the reasons he was investing in Herbalife (HLF) because he thought after the audit is completed that Herbalife will be able to borrow at 300 basis points to buyback future stock at all-time highs – I just shake my head as this isn`t going to end well folks!

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Thursday, December 12, 2013

Why You Should Fear the Masters of the Financial Universe

Jon Stewart just did a very funny piece on "The Daily Show" about a new derivatives dust-up that Bloomberg News broke.

Earlier this year, a big Wall Street firm bought a credit default swap on debt that a private company owed to a third party. So the firm was set up to make money if that company missed any payments.

Then the firm offered the company a multi-million-dollar loan... with the condition that they would miss a payment on the other loan. They did. And the Wall Street firm walked away with a $15 million insurance payment.

Sound less than kosher? Oh, don't worry. It's perfectly legal.

"The Daily Show" team pointed out that this behavior isn't illegal but maybe should be, and that the media didn't cover it at all and maybe should have.

But there's something they missed, and it's even more frightening.

Here are the details...

There's More to the Blackstone-Codere Deal

Last year Spanish gaming company Codere SA was in deep doodoo. They still are. They had a bunch of outstanding bonds (more than 1 billion euros worth) that they were likely going to default on.

So, in comes GSO Capital Partners LP, a credit investing unit of the world's biggest private equity firm, Blackstone Group LP (NYSE: BX). GSO buys up a package of Codere's outstanding debt and CDS (credit default swaps) on the same debt.

Credit default swaps are derivatives. They are a type of insurance. Say you invested in Codere's bonds and you're afraid they might default and you won't get paid your interest or principal. You can buy CDS from, most likely, hedge funds or banks, and pay them premium monthly payments, just like you would on any insurance policy. If Codere defaults, you get paid and are made whole.

Well, GSO bought Codere's debt and CDS insurance on that debt. Makes sense, right?

GSO also bought out a syndicated revolving line of credit for up to 100 million euros that several banks had set up for Codere. GSO then went to Codere and said, "Hey we now control whether you're going to get any money out of this loan facility. And we'll loan you what you need to make payments on your outstanding debt, so you don't default."

But that wasn't the whole deal.

They also said to Codere, "We want you to make your next payment two days after it's due, so you technically default. Then we'll loan you the money to make your interest payment."

And that's what happened. Codere had a deal to get the money it needed to pay the interest due on its debt. But GSO wanted it to technically default by not making the next payment on time. That's because GSO wanted to collect on the insurance it bought on Codere defaulting.

Nice game, huh?

Again, Jon Stewart and his crew at Comedy Central covered this story last week. (Google "Daily Show Blackstone Codere" to watch it.)

But the situation is a little more complicated than Stewart makes it out to be.

Here's the rest of it.

Yes, GSO made Codere default so it could get paid on its default insurance (if you're a hedge fund or bank that sold them the insurance, trust me, you're pissed off). There were plenty of other investors who owned debt that were going to get paid on their CDS insurance too.

The game wasn't just to collect the insurance...

The $15 million insurance payment GSO got was nice, and it was nice for other investors who got paid too. But the cleverness of the deal was that GSO forced the company's creditors to the debt negotiating table to restructure their debt once they defaulted. Without the default, the insurance wouldn't have gotten paid, and there was a chance creditors would have renegotiated to keep the company going in hopes it eventually would pay off its debts.

GSO bought the debt to be in a better position holding it after it got paid on the insurance and after it forced a debt renegotiation on the other creditors.

That's the power of derivatives in the hands of Masters of the Universe.

Were others burned on the deal? Sure, but who cares if you've got the smarts, muscle, and capital to rig the game to your benefit?

Derivatives are weapons of mass destruction. You may not think these little derivative dust-ups affect you, and maybe they don't - at least not directly. But there are some players in the business who don't know what they don't know, and that's scary for all of us. It's the players who didn't know how the backdoor game could be played who really suffered. That will be a lesson they won't forget.

Speaking of forgetting... Things are all quiet on the derivatives front after the credit crisis that was grossly aided and abetted by derivative weapons of mass destruction, right?

Wrong.

One of the dangers of derivatives is that they're "bilateral contracts," meaning they're private, two-way trades that aren't exchange traded and therefore are not transparent.

Dodd-Frank sought to remedy that by making certain U.S. traders in certain derivatives trade them on exchanges called swap execution facilities (SEF). But there's a problem with that solution.

You see, U.S. regulators can't make other traders in other parts of the world follow U.S. rules if they don't do those trades in the United States or with U.S. entities as counterparties.

Of course that's not a problem for U.S. banks and derivatives traders. They're just setting up foreign subsidiaries (if they don't already have them, which most do) in London and Hong Kong and elsewhere to do business outside the United States so as to avoid doing their business in the open on SEFs.

You can see where this is going, can't you? Just like with the CDS trade deal above, which isn't illegal, U.S. companies were given a carve-out to set up foreign entities to do derivatives trades away from the very same swap execution facilities they were supposed to do their trades on because some or any transparency is better than none.

It's getting bad. Now, not only are more derivatives trades (by U.S. entities) being done away from prying eyes in places where regulations are far more lax than in the United States, but by spreading their trades around, traders are splitting markets. That "fragmentation" is going to undermine liquidity and "netting" that's an absolute must when stresses in the derivatives markets cause the whole dance floor to shimmy and shake.

So what's the moral of the story?

The derivatives dance is a dangerous waltz. Pick your dance partners well, and when enough punch is spilled on the dance floor, realize that that ain't a new dance derivatives traders are doing, it's probably the electric slide... as in slide off a cliff.

Silver's price slump won't last long, so now is the time to buy silver for maximum profit. Here are five reasons why silver could double over the next year.

Wednesday, December 11, 2013

35 newspapers to get USA TODAY edition

Gannett said Wednesday it will begin inserting a condensed edition of USA TODAY daily into 31 additional newspapers early next year, a distribution strategy aimed at both beefing up local publications' content and widening its national paper's reach.

The McLean, Va.-based publisher launched the "Butterfly" initiative on Oct. 6 at the Indianapolis Star, Rochester Democrat & Chronicle, The News-Press in Fort Myers, Fla., and The Post-Crescent in Appleton, Wis. To prepare for the trial at the four papers, USA TODAY changed its daily production operations to package its national and international news and enterprise stories into a seven-day-a-week insert that is distributed to the four papers.

"This is another step in the re-invention of news that Gannett is uniquely positioned to lead," said Gracia Martore, president and CEO of Gannett, which owns USA TODAY and 81 local newspapers. "With today's announcement, we are bringing the power of these brands together to delight and engage consumers like no one else can."

Gannett said at the time of the launch that other newspapers would be added if the test at the four papers seemed successful. The 31 additional newspapers that will participate in the expansion will begin circulating the Butterfly edition in the first quarter of 2014. "We are thrilled by the positive feedback from consumers and advertisers in our pilot markets," said Robert Dickey, president of Gannett's U.S. Community Publishing division.

With national and international content coming from USA TODAY, Gannett's community newspapers will have more resources to devote to local coverage, Dickey said.

The Butterfly edition -- including material from USA TODAY's News, Money and Life sections -- typically contains about 10 pages on weekdays and as many as 22 pages on Sunday. USA TODAY Sports content is integrated into the local papers' sports pages. The digital version is also distributed with the e-edition of the local papers.

"This innovative content model create! s stronger, higher-value local products and extends the reach of USA TODAY to millions of new consumers. This also gives USA TODAY a print presence seven days a week," said USA TODAY President and Publisher Larry Kramer. "This is a unique advantage for us."

The distribution plan allows USA TODAY to include the circulation figures from the local papers to its own total. Alliance for Audited Media, which audits newspaper circulation, has given its approval to that practice. The 35 local newspapers that will be part of the Butterfly initiative have a combined circulation of more than 1.5 million on weekdays and more than 2.5 million on Sunday, the company said.

When AAM's latest figures were released in October, USA TODAY regained its status as the most widely-circulated weekday newspaper in the country. For the six-month period that ended on Sept. 30 -- the Butterfly edition wasn't circulated until Oct. 6 -- USA TODAY had a combined print and digital weekday circulation of 2.88 million. That compares with The Wall Street Journal's 2.27 million and The New York Times' 1.89 million.

USA TODAY's circulation improvement was largely attributable to 1.48 million counted in the paper's "digital non-replica" category, which primarily refers to mobile and tablet apps. USA TODAY's apps and their content are free.

Tuesday, December 10, 2013

Top 10 Bank Stocks For 2014

The market is reacting to some global economic concerns this morning, dragging nearly all of the financials down -- including Wells Fargo (NYSE: WFC ) . But having lost just 1.24% in the first hour of trading, the bank is faring much better than its Big Four compatriots, which have each given up 2.3%+ so far in trading. So even though Wells is down, it's certainly not out and has some big ammunition to send it higher. �

Chinese take-out
This morning's market kerfuffle revolves around continued concerns about the gloabl economy -- and China is fanning the flame. With higher liquidity requirements pressuring the banking system, participants are not lending to each other, which may spark a liquidity crisis. The People's Bank of China, in response to this rising concern, has stated that banks will have to sort the matter out themselves, which is the crux of investor concern with the potential liquidity freeze.

Since China's economic growth has been one of the biggest economic stories for years, driving demand for imports and development, a further slowdown would do serious damage to the global recovery.

Top 10 Bank Stocks For 2014: First Republic Bank (FRC)

First Republic Bank is a full-service bank and wealth management firm. First Republic Bank and its subsidiaries provide private banking, private business banking and private wealth management, including investment, trust and brokerage services. The Company specializes in delivering service through offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. The Company's products and services include residential lending, commercial real estate lending, personal lending, private business banking, deposit services, trust services, brokerage services and investment management services. Investment advisory services are provided by First Republic Investment Management, Inc. Trust services are provided by First Republic Trust Company. Brokerage services are offered through First Republic Securities Company, LLC. In March 2012, the Company announced the opening of a new trust company.

The Company offers full-service banking on both coasts, including free online banking, free bill pay and free access to over 800, 000 automated teller machines (ATMs) worldwide. Its private business banking provides specialized services for accounting firms, architecture and design, art and antique dealers, business management firms, business partnership, entertainment/media, entrepreneurs, family offices, financial services, independent school, investment firms, law firms, medical firms, non-profit organizations, private equity funds, property management firms, real estate investors, venture capital funds, wineries, and yacht, golf, city and country clubs. The Company�� private wealth management offers customized investment management, trust, and brokerage services for individuals, trust endowments, and pension plans. Wealth management services include asset allocation, trust administration and custody, portfolio management, financial and estate planning, manager selection and comprehensive brokerage services.

Advisors' Opinion:

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

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

Top 10 Bank Stocks For 2014: Goldman Sachs Group Inc.(The)

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

Top Blue Chip Stocks To Watch Right Now: Federal National Mortgage Association (FNMA)

Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage-related assets are purchased and sold. The Company�� activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. Fannie Mae operates in three business segments: Single-Family business, Multifamily Business (formerly Housing and Community Development (HCD)) and Capital Markets group. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS.

The Company obtains funds to support its business activities by issuing a variety of debt securities in the domestic and international capital markets. Fannie Mae acquires funds to purchase mortgage-related assets for its mortgage portfolio by issuing a variety of debt securities in the domestic and international capital markets. It also makes other investments. Fannie Mae conducts its business in the United States residential mortgage market and the global securities market. It conducts business in the United States residential mortgage market and the global securities market. During the year ended December 31, 2011, the Company��

Single-Family Business

Single-Family business includes mortgage securitizations, mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company�� lender customers to provide funds to the mortgage market by securitizing single-family mortgage loans into Fannie Mae MBS. Its Single-Family business also works with its Capital Markets group to facilitate the pu! rchase of single-family mortgage loans for the Company�� mortgage portfolio. Fannie Mae�� Single-Family business prices and manages the credit risk on its single-family guaranty book of business, which consists of single-family mortgage loans underlying Fannie Mae MBS and single-family loans held in its mortgage portfolio. Single-Family business and Capital Markets group securitize and purchase primarily single-family fixed-rate or adjustable-rate, first lien mortgage loans, or mortgage-related securities backed by these types of loans.

The Company securitizes or purchases loans insured by Federal Housing Administration (FHA), loans guaranteed by the Department of Veterans Affairs (VA), and loans guaranteed by the Rural Development Housing and Community Facilities Program of the Department of Agriculture, manufactured housing loans, reverse mortgage loans, multifamily mortgage loans, subordinate lien mortgage loans and other mortgage-related securities. Its Single-Family business securitizes single-family mortgage loans and issues single-class Fannie Mae MBS. Fannie Mae�� Single-Family business securitizes loans solely in lender swap transactions, in which lenders deliver pools of mortgage loans to the Company, which are placed immediately in a trust, in exchange for Fannie Mae MBS backed by these loans. Generally, the servicing of the mortgage loans held in its mortgage portfolio or that backs its Fannie Mae MBS is performed by mortgage servicers on the Company�� behalf. Lenders who sell single-family mortgage loans to Fannie Mae service these loans for the Company. For loans it owns or guarantees, the lender or servicer must obtain its approval before selling servicing rights to another servicer.

Fannie Mae�� mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of ownership interests, respond to requests for partial releases of s! ecurity, ! and handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies.

Multifamily Mortgage Business

Multifamily business works with the Company�� lender customers to provide funds to the mortgage market by securitizing multifamily mortgage loans into Fannie Mae MBS. Through its Multifamily business, Fannie Mae provides liquidity and support to the United States multifamily housing market principally by purchasing or securitizing loans that finance multifamily rental housing properties. It also provides some limited debt financing for other acquisition, development, construction and rehabilitation activity related to projects that complement this business. Fannie Mae�� Multifamily business also works with its Capital Markets group to facilitate the purchase and securitization of multifamily mortgage loans and securities for Fannie Mae�� portfolio, as well as to facilitate portfolio securitization and resecuritization activities.

The Company�� multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans and securities held in Fannie Mae�� mortgage portfolio. Revenues for Fannie Mae�� Multifamily business are derived from a variety of sources, including guaranty fees received as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS and on the multifamily mortgage loans held in its portfolio and on other mortgage-related securities; transaction fees associated with the multifamily business, and other bond credit enhancement related fees. As with the servicing of single-family mortgages, multifamily mortgage servicing is performed by the lenders who! sell the! mortgages to the Company. Fannie Mae�� Multifamily business is organized and operated as an integrated commercial real estate finance business.

Capital Markets

Capital Markets group's primary business activities include mortgage and other investments, mortgage securitizations, structured mortgage securitizations and other customer services, and interest rate risk management. Capital Markets group manages the Company�� investment activity in mortgage-related assets and other interest-earning, non-mortgage investments. It funds its investments primarily through proceeds the Company receives from the issuance of debt securities in the domestic and international capital markets. Its business activity is focused on making short-term use of its balance sheet rather than long-term investments. Activities Fannie Mae is undertaking to provide liquidity to the mortgage market include whole loan conduit, early funding, real estate mortgage investment conduit (REMICs) and other structured securitizations and dollar roll transactions. Whole loan conduit activities include its purchase of both single-family and multifamily loans principally for the purpose of securitizing them. During the year ended December 31, 2010, it was engaged in dollar roll activity. A dollar roll transaction is a commitment to purchase a mortgage-related security with a concurrent agreement to re-sell a similar security at a later date or vice versa.

Fannie Mae�� Capital Markets group is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Its Capital Markets group creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in its mortgage portfolio. Fannie Mae�� Capital Markets group may sell these Fannie Mae MBS into the secondary market or may retain the Fannie Mae MBS in its investment portfolio. The Company�� Capital Markets group creates single-clas! s and mul! ti-class structured Fannie Mae MBS, for its lender customers or securities dealer customers, in exchange for a transaction fee. The Company�� Capital Markets group provides its lender customers and their affiliates with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business.

Although the Company�� Capital Markets group�� business activities are focused on short-term financing and investing, revenue from its Capital Markets group is derived primarily from the difference, or spread, between the interests it earns on its mortgage and non-mortgage investments and the interest it incurs on the debt the Company issues to fund these assets. Its Capital Markets revenues are primarily derived from the Company�� mortgage asset portfolio. Capital Markets group funds its investments primarily through the issuance of a variety of debt securities in a range of maturities in the domestic and international capital markets. Investors in the Company�� debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks.

The Company competes with Freddie Mac, FHA and Ginnie Mae.

Advisors' Opinion:

[By Matt Koppenheffer]
In the following video, Motley Fool financial analyst Matt Koppenheffer takes a question from a Fool reader on Facebook, who asks, "What is actually going on with Fannie Mae (NASDAQOTCBB: FNMA ) and Freddie Mac (NASDAQOTCBB: FMCC ) ?"
[By Amanda Alix]
Even Fannie Mae (NASDAQOTCBB: FNMA ) is chiming in. The agency's Vice President of the Economic and Strategic Research Group wrote a commentary on Fannie's website, using historical data to show how the current rise in interest rates will likely not derail the housing recovery.
[By Alex Planes]
While the rest of the market was freaking out about solar stocks and electric cars, the common stocks of America's two most notable housing government-sponsored enterprises (GSEs) languished. Of course, this was almost certainly because both Fannie Mae (NASDAQOTCBB: FNMA ) and Freddie Mac (NASDAQOTCBB: FMCC ) were placed in conservatorship as the economy melted down in 2008, which has left common shareholders without a means of redress or indeed without any expectation of sharing in the fruits of recovery. But come March, the stocks began shooting up, and they've shot up again this month. What's going on?
[By Matt Koppenheffer]
If you actually dig through B of A's annual report, you can find a helpful little table that shows the performance of the loan originations that were sold to the GSEs -- primarily Fannie Mae� (NASDAQOTCBB: FNMA ) and�Freddie Mac�-- between 2004 and 2008. What's even more helpful is that the table breaks out the Countrywide originations versus the "other" originations -- principally, legacy Bank of America production.

Top 10 Bank Stocks For 2014: Bank of Nova Scotia (BNS)

The Bank of Nova Scotia (the Bank) is a diversified financial institution. As of October 31, 2011, the Bank offered a range of products and services, including retail, commercial, corporate and investment banking to more than 18.6 million customers in more than 50 countries around the world. The Bank has four business lines: Canadian Banking, International Banking, Scotia Capital and Global Wealth Management. In January 2012, the Company closed its acquisition of 51% of Banco Colpatria. In April 2012, the Company through Scotia Capital Inc. acquired Howard Weil Incorporated. In April 2013, Bank of Nova Scotia acquired a 50% interest in Administradora de Fondos de Pensiones Horizonte SA. Advisors' Opinion:

[By Infinity Group]
Scotia iTrade (BNS) is one of the largest brokers in Canada. Last week I had a conversation with a Trading Manager and was told "there are no shares currently to be lent out." This changes on a daily basis, but has been the norm for the past month.
[By Dan Caplinger]
On Tuesday, Bank of Nova Scotia (NYSE: BNS ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, kneejerk reaction to news that turns out to be exactly the wrong move.
[By Tim Gallagher]
Mosaic (MOS), Agrium (AGU), Intrepid Potash (IPI) and CF Industries (CF) have been moving and trading hand-in-hand, with AGU, BHP and Rentech Nitrogen Partners LP (RNF) trading the best, losing the least and rebounding the most since July 30th. IPI has sold off a lot more in the post-news period, as would be expected from a smaller, less established company with mine projects still in development. BHP Billiton Ltd. (BHP) announced plans to proceed with its Jansen Mine Project in Saskatchewan, Canada, potentially tapping the largest and longest-lasting supply in the world known at this time. Scotiabank (BNS) recently commented on Jansen, stating that the added supply "could add the equivalent of 18%-20% of the potash market over recent years." Nearly all of the companies mentioned have had a pretty predictable mix of upgrades and downgrades. That's what makes a market.

Top 10 Bank Stocks For 2014: State Street Corporation(STT)

State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. The company?s Investment Servicing business line provides products and services, including custody, product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loan and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk, and compliance analytics. This segment also offers shareholder services, which comprise mutual fund and collective investment fund shareholder accounting. Its Investment Management business line provides a range of investment management, investment research, and other related services, such as securities finance; and strategies for managing passive and active financ ial assets, such as enhanced indexing and hedge fund strategies for U.S. and global equities and fixed-income securities. The company serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1832 and is headquartered in Boston, Massachusetts.

Advisors' Opinion:

[By Nicole Seghetti]
Good news for ETF investors too
Even excluding the multibillion-dollar tally of Swiss-based funds, BlackRock's empire is colossal. Its iShares ETFs overwhelmingly dominate the market, holding about 40% market share. With roughly 23% share of the ETF market, State Street's (NYSE: STT ) SPDR ETF business comes in second place. Vanguard rounds out the top three. These top ETF managers account for roughly 84% of the industry assets.

Top 10 Bank Stocks For 2014: Access National Corp (ANCX.W)

Access National Corporation (ANC) operates as a bank holding company. The Company has two wholly owned subsidiaries: Access National Bank (the Bank) and Access National Capital Trust II. The Bank is the operating business of the Company. The Bank provides credit, deposit, and mortgage services to middle market commercial businesses and associated professionals, primarily in the greater Washington, D.C. Metropolitan Area. The Bank offers a range of financial services and products and specializes in providing customized financial services to small and medium sized businesses, professionals, and associated individuals. The Bank provides its customers with personal customized service utilizing the latest technology and delivery channels. The Bank�� business is serving the credit, depository and cash management needs of businesses and associated professionals. The products and services offered by the Bank include accounts receivable lines of credit, accounts receivable col lection accounts, growth capital term loans, business acquisition financing, online banking, checking accounts, money market accounts, sweep accounts, personal checking accounts, savings /money market accounts and certificates of deposit.

The Bank�� revenues are derived from interest and fees received in connection with loans, deposits, and investments. The Bank operates from five banking centers located in Chantilly, Tysons Corner, Reston, Leesburg and Manassas, Virginia and online at wwwaccessnationalbank.com. The Mortgage Corporation specializes in the origination of conforming and government insured residential mortgages to individuals in the greater Washington, D.C. Metropolitan Area, the surrounding areas of its branch locations, outside of its local markets through direct mail solicitation, and otherwise. The Mortgage Corporation has offices throughout Virginia, in Fairfax, Reston, Roanoke, and McLean.

Lending Activities

The Bank�� lending activities involve commercial real estate ! ! loans, residential mortgage loans, commercial loans, commercial and residential real estate construction loans, home equity loans, and consumer loans. These lending activities provide access to credit to small to medium sized businesses, professionals, and consumers in the greater Washington, D.C. Metropolitan Area. Loans originated by the Bank are classified as loans held for investment. At December 31, 2011 loans held for investment totaled $569.4 million. At December 31, 2011 unsecured loans were comprised of $2.9 million in commercial loans and approximately $124 thousand in consumer loans and collectively equal approximately 0.5% of the loans held for investment portfolio.

The Bank�� commercial real estate loans-wner Occupied represented 30.14% of our loan portfolio held for investment, as of December 31, 2011. Its commercial real estate loans-non-owner occupied loans represent ed18.44% of its loan portfolio held for investment, as of December 31, 2011. The Bank�� residential real estate loans represented 22.56% of the loan portfolio, as of December 31, 2011.

These loans fall into one of three situations: loans supporting an owner occupied commercial property; properties used by non-profit organizations, such as churches or schools where repayment is dependent upon the cash flow of the non-profit organizations, and loans supporting a commercial property leased to third parties for investment. Its residential real estate loans category includes loans secured by first or second mortgages on one to four family residential properties, extended to the Bank clients.

As of December 31, 2011, commercial loans represented 23.15% of the Bank�� loan portfolio held for investment. These loans are to businesses or individuals within its market for business purposes. As of December 31, 2011, real estate construction loans consisted of 5.22% of loans held for investment loan portfolio. These loans in clude loans to construct owner occupied commercial buildi! ngs! ; lo! ans t! o individuals; loans to builders for the purpose of acquiring property and constructing homes for sale to consumers, and loans to developers for the purpose of acquiring land, which is developed into finished lots for the ultimate construction of residential or commercial buildings. As of December 31, 2011, consumer loans made up approximately 0.49% of its loan portfolio.

Investment Activities

The Company�� investment securities portfolio is consisted of the United States Treasury securities, the United States Government Agency securities, municipal securities, Community Reinvestment Act (CRA) mutual fund, and mortgage backed securities issued by the United States Government sponsored agencies and corporate bonds. At December 31, 2011, securities totaled $85.8 million. . The securities portfolio is comprised of $45.8 million in securities classified as available-for-sale and $40.0 million in securities classified as held-to-maturity.

Sources of Funds

As of December 31, 2011, deposits totaled $645.0 million. As of December 31, 2011, deposits consisted of noninterest-bearing demand deposits in the amount of $113.9 million, savings and interest-bearing deposits in the amount of $182.0 million, and time deposits in the amount of $349.1 million. The Bank also uses wholesale funding or brokered deposits to supplement traditional customer deposits for liquidity. It participates in the Certificate of Deposit Account Registry Service (CDARS). Through CDARS its depositors are able to obtain FDIC insurance of up to $50 million. As of December 31, 2011, brokered deposits totaled $223,554,000, which includes $192,326,000 in reciprocal CDARS deposits. It also maintains lines of credit with the Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB). At December 31, 2011 there was $284.9 million available under these lines of credit. Borrowed funds consist of advances from the FHLB, senior unsecured term note, FHLB long-term borrowings, subordinated d! ebenture!! s (trust ! preferred), securities sold under agreement to repurchase, United States Treasury demand notes, federal funds purchased, and commercial paper. As of December 31, 2011 borrowed funds totaled $123.6 million. At December 31, 2011 borrowed funds totaled $70.9 million.

Top 10 Bank Stocks For 2014: Wilshire Bancorp Inc.(WIBC)

Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. It accepts various deposit products that include certificates of deposit, regular savings accounts, money market accounts, checking and negotiable order of withdrawal accounts, installment savings accounts, and individual retirement accounts. The company?s loan portfolio comprises commercial real estate and home mortgage loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including personal loans, auto loans, and other loans. It also provides trade finance services that include issuance and negotiation of letters of credit, handling of documentary collections, advising and negotiation of commercial letters of credit, transfer and issuance of back-to-back letters of credit, and trade finance lines of credit. In addition, the company offers Internet banking services, auto matic teller machines, and armored carrier services. It has 24 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area; and 6 loan production offices in Colorado, Georgia, Texas, New Jersey, and Virginia. The company was founded in 1980 and is headquartered in Los Angeles, California.

Advisors' Opinion:

[By Rich Smith]
Los Angeles-based Wilshire Bancorp (NASDAQ: WIBC ) is acquiring some Korean banking customers... in New Jersey.

On Monday, Wilshire announced that it has signed a definitive agreement to acquire�New Jersey's BankAsiana, a commercial bank�with three branches serving the Korean-American community in the New York/New Jersey market, boasting total assets of $207.3 million, total net loans of $161.2 million, and total deposits of $164.6 million.

Top 10 Bank Stocks For 2014: KeyCorp (KEY)

KeyCorp is a bank holding company for KeyBank National Association (KeyBank). Through KeyBank and certain other subsidiaries, the Company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients through two business segments: Key Community Bank and Key Corporate Bank. As of December 31, 2011, these services were provided through KeyBank�� 1,058 full-service retail banking branches in 14 states, additional offices, a telephone banking call center services group and a network of 1,579 automated teller machines (ATMs) in 15 states. On January 17, 2012, the Company opened another national bank subsidiary.

In addition to the banking services of accepting deposits and making loans, the Bank and trust company subsidiaries offer personal and corporate trust services, personal financial services, access to mutual funds, cash management services, investment banking and capital markets products, and international banking services. Through its bank, trust company and investment adviser subsidiaries, the Company provides investment management services to clients that include corporate and public retirement plans, foundations and endowments, individuals and trust funds. The Company provides other financial services - both within and outside of its primary banking markets - through various nonbank subsidiaries. These services include community development financing, securities underwriting and brokerage. It is also an equity participant in a joint venture that provides merchant services to businesses.

Lending Activities

As of December 31, 2011, the Company�� Commercial, Financial and Agricultural loans, also referred to as Commercial and Industrial, represented 39% of its total loan portfolio. As of December 31, 2011, commercial real estate loans represented approximately 19% of its total loan portfolio. These loans include bo! th owner and nonowner-occupied properties and constitute approximately 27% of its commercial loan portfolio. Its commercial real estate lending business is conducted through two primary sources: its 14-state banking franchise, and Real Estate Capital and Corporate Banking Services. The Company conducts financing arrangements through its equipment finance line of business. Commercial lease financing receivables represented 17% of commercial loans at December 31, 2011. The home equity portfolio is the largest segment of its consumer loan portfolio.

Investment Activities

The Company�� securities portfolio totaled $18 billion at December 31, 2011. Available-for-sale securities were $16 billion at December 31, 2011. Held-to-maturity securities were $2.1 billion at December 31, 2011. At December 31, 2011, it had $2.1 billion in collateralized mortgage obligations (CMOs) in its held-to-maturity securities portfolio. At December 31, 2011, the Company had $15.9 billion invested in CMOs and other mortgage-backed securities in the available-for-sale portfolio. Federal Agency CMOs constitute most of its held-to-maturity securities along with foreign bonds and preferred equity securities. The investments in equity and mezzanine instruments made by its principal investing unit represented 61% of other investments at December 31, 2011. They include direct investments (investments made in a particular company), as well as indirect investments (investments made through funds that include other investors).

Sources of Funds

Domestic deposits are the Company�� primary source of funding. During the year ended December 31, 2011, these deposits averaged $58.5 billion and represented 80% of the funds it used to support loans and other earning assets. Wholesale funds, consisting of deposits in its foreign office and short-term borrowings, averaged $3.4 billion during 2011. At December 31, 2011, the Company had $4.7 billion in time deposits of $100,000 or more.

Advisors' Opinion:

[By Lisa Levin]
KeyCorp (NYSE: KEY) shares gained 3.61% to create a new 52-week high of $12.91. KeyCorp's trailing-twelve-month revenue is $4.04 billion.

Posted-In: 52-Week HighsNews Intraday Update Markets Movers
[By Jay Jenkins]
A consortium of banks, lead by Citigroup (NYSE: C ) , Bank of America (NYSE: BAC ) , BB&T (NYSE: BBT ) , U.S. Bancorp (NYSE: USB ) , and KeyCorp (NYSE: KEY ) have joined forces to develop critical technology to pave the way for true mobile banking.�

Top 10 Bank Stocks For 2014: Federal National Mortgage Association Fannie Mae (FNMAT)

Federal National Mortgage Association Fannie Mae is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage-related assets are purchased and sold. The Company�� activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. Fannie Mae operates in three business segments: Single-Family business, Multifamily Business (formerly Housing and Community Development (HCD)) and Capital Markets group. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS.

Single-Family Business

Single-Family business includes mortgage securitizations, mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company�� lender customers to provide funds to the mortgage market by securitizing single-family mortgage loans into Fannie Mae MBS. Its Single-Family business also works with its Capital Markets group to facilitate the purc! hase of single-family mortgage loans for the Company�� mortgage portfolio. Fannie Mae�� Single-Family business prices and manages the credit risk on its single-family guaranty book of business, which consists of single-family mortgage loans underlying Fannie Mae MBS and single-family loans held in its mortgage portfolio. Single-Family business and Capital Markets group securitize and purchase primarily single-family fixed-rate or adjustable-rate, first lien mortgage loans, or mortgage-related securities backed by these types of loans.

Fannie Mae�� mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of ownership interests, respond to requests for partial releases of sec! urity, an! d handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies.

Multifamily Mortgage Business

The Company�� multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans and securities held in Fannie Mae�� mortgage portfolio. Revenues for Fannie Mae�� Multifamily business are derived from a variety of sources, including guaranty fees received as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS and on the multifamily mortgage loans held in its portfolio and on other mortgage-related securities; transaction fees associated with the multifamily business, and other bond credit enhancement related fees. As with the servicing of single-family mortgages, multifamily mortgage servicing is performed by the lenders who s! ell the m! ortgages to the Company. Fannie Mae�� Multifamily business is organized and operated as an integrated commercial real estate finance business.

Capital Markets

Fannie Mae�� Capital Markets group is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Its Capital Markets group creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in its mortgage portfolio. Fannie Mae�� Capital Markets group may sell these Fannie Mae MBS into the secondary market or may retain the Fannie Mae MBS in its investment portfolio. The Company�� Capital Markets group creates single-class ! and multi! -class structured Fannie Mae MBS, for its lender customers or securities dealer customers, in exchange for a transaction fee. The Company�� Capital Markets group provides its lender customers and their affiliates with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business.

The Company competes with Freddie Mac, FHA and Ginnie Mae.

Top 10 Bank Stocks For 2014: Banco Bilbao Vizcaya Argentaria S.A. (BBVA.N)

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. The Company also has investments in some of Spain�� companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities. On August 21, 2009, through its subsidiary BBVA Compass, BBVA acquired certain assets of Guaranty from the United States Federal Deposit Insurance Corporation (the FDIC).

Spain and Portugal

The Spain and Portugal business area focuses on providing banking services and consumer finance to private individuals, enterprises and institutions in Spain and Portugal. The main business units included in the Spain and Portugal area Spanish Retail Netwo rk, which manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; Corporate and Business Banking, which manages business with small and medium enterprises (SMEs), large companies, institutions and developers in the Spanish market, and Other units, which includes consumer finance, that manages renting and leasing business, credit to individual and to enterprises for consumer products and Internet banking; European Insurance that manages the insurance business in Spain and Portugal, and BBVA Portugal, that manages the banking business in Portugal. The Spanish Retail Network unit services the financial and non-financial needs of households, professional practices, retailers and small businesses. The Corporate and Business Banking unit offers a range of services and products to SMEs, large companies, institutions and developers with specialized branch networks for each segment.

The Company