Argentina in next round ... of debt talks

Argentina's economy is already on shaky ground. It could get worse if the nation is forced to default on its debt again. NEW YORK (CNNMoney) Argentina's debt problems are about to get a lot Messi-er.

While the South American nation may be busy celebrating the heroics of its star soccer player Lionel Messi in the World Cup, a federal judge Thursday blocked one path for the country to avoid default.

The dollar-starved country, which just slipped into recession, faces a Monday deadline to pay two groups of bondholders. The way things proceed from here will determine Argentina's ability to move past its 2001 default and regain access to much-needed foreign funds.

The basics: Argentina owes $900 million to the so-called "exchange" group of bondholders who were willing to lose some money and accept discounted bonds tied to Argentina's default on $93 billion in debt in 2001. It deposited a payment to that group on Thursday.

But Argentina also owes a $1.3 billion payment to the so-called "holdouts," led by hedge funds Aurelius Capital Management and Elliott Management subsidiary NML Capital, who refused to take the discounted bonds.

Last week, the Supreme Court declined to hear Argentina's appeal of an earlier decision by a federal judge that required the country to pay the holdouts in full. The country's stock market fell 10% and bond yields spiked (yields rise when prices fall). So Thursday's payment may be a violation of the Supreme Court's ruling, though the federal judge in the original case, Thomas Griesa, blocked it from going through.

Recent developments: Argentina had been asking for time beyond June 30 to reach a deal to pay the holdouts, but Griesa denied the request Thursday. The country has a 30-day grace period to pay before thing get really hairy.

Argentina claims that the cost of servicing both its exchange debt and its holdout debt is equal to half their foreign currency reserves.

"No country could pay half of its reserves, and Argentina cannot afford to be left without the means to manage its currency or handle the rest of its economy, including meeting the needs of its citizenry," the country's lawyers wrote in a letter to Judge Griesa on Monday.

The Argentine government has said the costs would be as much as $15 billion, though David Rees, an emerging markets economist at Capital Economics, thinks the cost t! o paying the holdouts is about half of what the government claims.

The more serious issue, he says, is that paying the holdouts in full would anger the exchange bondholders. That group might want similar treatment.

"This is presumably going to be a key constraint on any deal that is negotiated," he said.

What's next?: From here, Argentina's options are limited. The grace period might allow them to work out a deal with the holdouts or the exchange bondholders without triggering new lawsuits or a default.

But the prospects for a deal with the holdouts seems dim. A court-appointed mediator said Wednesday that Argentina and the holdouts failed to reach an agreement after two days of talks. Argentina could continue trying to avoid paying the holdouts, but without the ability to get the exchange payment off the table, that's a dicey proposition.

Finally, Argentina could just default on the debt. But after years of trying to rebuild credibility following the 2001 default, this is the least desirable outcome. Argentina already devalued its currency earlier this year and its foreign reserves are running low, which would make future debt payments even harder to manage.

Argentina now has a lot less wiggle room. And the clock is ticking.

Canada’s Consumers Keep Spending

Although the Bank of Canada (BoC) would like to see the country's economy transition away from its dependence on debt-burdened consumers, Canadian spending remains surprisingly resilient.

According to Statistics Canada (StatCan), April retail sales grew 1.1 percent month over month, to CAD41.6 billion, nearly double economists' consensus forecast of 0.6 percent.

Total retail turnover was up 5.1 percent year over year. By contrast, US retail sales were up 4.6 percent over that same trailing-year period.

With the March figure revised to a 0.1 percent increase from the previously reported decline of 0.1 percent, that makes April the fourth consecutive month in which retail turnover has risen. US retail sales enjoyed a similar four-month streak from February through May.

StatCan notes that gains were widespread across Canada's retail sector during April, as 10 of 11 subsectors posted increases.

Much of the overall increase was driven by motor vehicle and parts dealers, whose sales grew 2.4 percent, to CAD9.7 billion. In particular, new car sales rose 3.2 percent, to CAD7.9 billion, following flat sales in the two preceding months.

In fact, new car sales, which increased 6.3 percent from a year ago, were one of the biggest contributors to the country's overall sales growth on a year-over-basis. But even when excluding results from the auto subsector, Canada's retail sales still grew 4.8 percent over the past year.

Receipts at food and beverage stores, another key subsector, climbed 0.6 percent, to CAD9.2 billion, for their fifth consecutive month of growth. This latest result was thanks to higher sales at beer, wine and liquor stores, which were up 2.1 percent, to CAD1.7 billion.

And sales at general merchandise stores rose 0.9 percent, to CAD5.2 billion, supported by sales at department stores, which were up 0.5 percent, to CAD2.3 billion, the third increase in t! he past four months.

A significant portion of April's retail rise may be attributable to the return of more pleasant weather after an unusually harsh winter. While retail turnover was still strong in January and February, as revised sales exceeded economists' forecasts, with month-over-month growth of 1.0 percent and 0.7 percent, respectively, March sales increased by just 0.1 percent.

Meanwhile, wholesale trade rose 1.2 percent in April, well above the consensus forecast of 0.5 percent. Coupled with the retail result, these data suggest that Canada's economy got off to a strong start in the second quarter.

Indeed, economists with CIBC World Markets said that April's gross domestic product (GDP) is tracking a tenth of a percentage point ahead of expectations. The current consensus among private-sector economists is for GDP to grow at a 2.2 percent annualized pace during the second quarter, a resurgence following the 1.2 percent annualized pace recorded during the first quarter.

The one caveat as far as sales data go, according to CIBC, is that retail gains may be difficult to sustain without sufficient wage and employment growth. Job gains have averaged just 3,000 per month over the trailing six-month period that ended in May, while higher-paying, better-quality full-time positions have declined by an average of 5,600 per month over that same period.

Nevertheless, these results, along with a stronger-than-expected rise in Canada's consumer price index (CPI), were enough to push the Canadian dollar to a year-to-date high of USD0.933, up 4.9 percent from the four-year low hit in late March.

Of course, the BoC would prefer a lower exchange rate to help boost the country's exports. But as US investors who have suffered from the erosion in the loonie's value over the past year, we'll welcome a temporary enhancement in our gains, while recognizing that Canada's economy, along with our companies, will ultimately benefit from a protracted decline in the curr! ency.

Netflix, Comcast, AT&T and the War Over ISP Fees

NEW YORK (TheStreet) -- The war has been raging over net neutrality since the U.S. Court of Appeals in the District of Columbia struck down the FCC's network neutrality rules for cable service providers in January. One week later, Netflix (NFLX) issued a letter to its shareholders, explaining "In principle, a domestic ISP now can legally impede the video streams that members request from Netflix, degrading the experience we jointly provide."

It's hard to say how actual costs will be borne out. More than likely, it will be a mixture of increased costs to consumers and increased costs to streaming television subscribers to offset companies like Netflix paying a "toll" for uninterrupted streaming service. But there is additional cost here -- your portfolio.

Over the last month, shares in Netflix have plunged from a high of roughly $455 per share to around $337 at the close of trading Friday -- and that change is only going to increase as the battle over net neutrality continues. Share prices are less volatile in Comcast (CMCSA) and AT&T (T) -- Comcast went from a high of $52 to a low of $49 before ending around $50 Friday while AT&T gained, moving from $32 to $35 over the last four weeks -- but that doesn't mean it's over.

Both Netflix and AT&T are acknowledging that existing networks are at capacity. Netflix may be growing subscribers, reporting 44 million at the end of 2013 and expectations of 48 million by the end of first-quarter 2014, but then what? If Netflix subscribers start having to deal with buffering, how long will it be until they go back to cable? Or perhaps go into on demand cable services, like the sort rumored to be brewing between Comcast and Apple (AAPL)? When your cable provider is the same company as your Internet provider, anything can happen. "In the long-term, we think Netflix and consumers are best served by strong network neutrality across all networks, including wireless," continued the Netflix letter to shareholders. "To the degree that ISPs adhere to a meaningful voluntary code of conduct, less regulation is warranted. To the degree that some aggressive ISPs start impeding specific data flows, more regulation would clearly be needed." A few weeks later, the streaming television provider struck a landmark deal with Comcast to ensure Netflix subscribers would be able to continue enjoying fast speed and smooth access to the service. Netflix CEO Reed Hastings was ultimately criticized for the move. These criticisms prompted the executive to write a blog post that touted Netflix's ultimate desire for net neutrality while essentially explaining why the company had no choice but to pay for better connection if it was going to protect its viewers' experiences. In that post, Hastings names AT&T and Comcast specifically, saying "The essence of net neutrality is that ISPs such as AT&T and Comcast don't restrict, influence or otherwise meddle with the choices consumers make."

Hastings continued, "Once Netflix agrees to pay the ISP interconnection fees, however, sufficient capacity is made available and high-quality service for consumers is restored. If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future." AT&T hit back in its own blog, explaining that networks have to build additional capacity to handle the higher volume traffic as well as the larger bandwidths streaming video content, like Netflix and Google's (GOOGL) YouTube, require. ATT's Jim Cicconi, who heads the company's public policy team, wrote that the cost of more bandwidth is tantamount to delivery costs: "Mr. Hastings blog post then really comes down to which consumers should pay for the additional bandwidth being delivered to Netflix's customers. In the current structure, the increased cost of building that capacity is ultimately borne by Netflix subscribers. It is a cost of doing business that gets incorporated into Netflix's subscription rate. In Netflix's view, that's unfair. In its view, those additional costs, caused by Netflix's increasing subscriber counts and service usage, should be borne by all broadband subscribers -- not just those who sign up for and use Netflix service."

Cicconi ended by saying, "As we all know, there is no free lunch, and there's also no cost-free delivery of streaming movies. Someone has to pay that cost." Cicconi is right, of course, someone has to pay, but in the end it could end up being you. The battle for net neutrality is really more of a war, and there are bound to be casualties. Buyer beware.

TAt the time of publication, Butler held no positions in any of the companies mentioned. Follow @ReneeAnnButler This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Stock quotes in this article: NFLX, CMCSA, T, AAPL, GOOGL 

Can Twitter Inc (TWTR) Fix The MAU Issue?

For Twitter Inc (NYSE:TWTR), the retention, conversion and growth of MAUs (monthly active users) remains the most critical issue in the near term. It is in a similar kind of situation that Facebook (NASDAQ:FB) faced between mid-2012 and mid-2013.

Unlike Facebook's sentiment downturn, Twitter's issues seem like easier fixes. Facebook was tasked with pivoting its entire company and inventing effective native mobile advertising, both daunting challenges. Twitter doesn't appear to have an awareness issue (the top of the user funnel is solid), but more of a MAU conversion and retention problem.

[Related -LinkedIn Corp (LNKD): A Bumpy Road To RBC's $250]

Twitter remains arguably the best ways to play the biggest trend in consumer internet –mobile, which represents over 70 percent of usage and 80 percent of company revenue.

The company has some of the best engineers in silicon valley working on a number of product enhancements, and Twitter is going to figure it out. Over the past few quarters Twitter has launched 27 new features and product enhancements.

Deutsche Bank analyst Ross Sandler said the vast majority of features and product initiatives rolled out over the past several months are designed to drive up engagement of existing users, not necessarily generate growth in new users.

Secondary to the MAU debate, Twitter has done a good job of advancing its monetization plans. Market observers believe that Twitter saw significant budget flow during peak moments of the Olympics and other events in the first quarter and that allocations in 2014 remain solid.

[Related -WhatsApp With That?]

There has been much debate around how to measure engagement for Twitter, given the limited disclosure. Twitter measures engagement in Timeline Views per MAU (TLV/MAU). The common thought is, in the absence of better metrics, using TLV/MAU is the best measurement.

However, the decline in TLV-per-MAU starting in the third quarter was more a function of the product changes versus actual engagement declining, specifically, the threaded conversations design change.

According to management, engagement measured by retweets and favorites, was up 35 percent sequentially in the fourth quarter following the media-forward initiatives. TLV/MAU, on the other hand, continues to decline.

Sandler noted that the company rolled out the new version mid-third quarter, and hence started to see significantly fewer TLVs, despite improvement in the user experience. Prior to the change, any user who opened a conversation could see 3+ TLVs as they flicked back and forth between the core timeline and the threaded conversation.

Under the new design, the user stays in their home timeline and just expands the conversation without adding to the TLV count. This impact started to show up partially in the third quarter but for a full quarter in the fourth quarter.

While some investors are likely to remain skeptical that engagement is actually increasing, he is finding that the experience is better and more engaging under the new design. Either way, this impact normalize, and it should start to flatten out sequentially in the first quarter.

A survey by Deutsche Bank among current, prior and non-Twitter users show that engagement among current users is high (nearly 50 percent of the active Twitter users use the service more than once a day), and most find Twitter second to only Facebook in terms of preferred social networks.

The survey also found that 57 percent of past Twitter users stated they would consider using the service again, and they cited better sorting and filtering tools and improved set up process as key areas that would encourage them to use Twitter again. Most past users are not aware of new/improved features.

For non-users, 30 percent state they would consider using Twitter and a shocking 95 percent responded that they hear about Twitter at least once or twice per week, and 62 percent at even higher frequency, and over 80 percent of non-users hear about Twitter specifically on TV each week.

These insights highlight that most issues around attraction, conversion and retention of MAUs are largely fixable. Twitter is well aware of and working on these issues and are comfortable that MAU growth could re-accelerate at some point in 2014.

Sandler says though it remains unknown when Twitter's MAU growth could accelerate, the company is laser focused on this effort, and it's not the most challenging problem he has seen facing a consumer Internet company.

Historically, there have seen several instances of multiple expansion and upward estimate revisions once user growth re-accelerates.

For instance, LinkedIn's (NYSE:LNKD) user growth reaccelerated in the fourth quarter of 2012 after 5 quarters of deceleration, and the stock surged from $105 in the fourth quarter of 2012 to $245 in the second quarter of 2013.

Another case is the strong performance of Zillow Inc (NASDAQ:Z). In early 2013, the company saw user growth reaccelerate during the early stages of its TV marketing campaign. Zillow stock nearly tripled from $30 in early 2013 to over $90 in late 2013 as user growth reaccelerated from 40 percent to nearly 70 percent on the back of TV.

As such, Twitter's MAU conversion and retention issues are solvable, and shares should work higher as this factor becomes clear to investors, or user growth picks up.

However, Sandler said the timing is uncertain as there are a number of seasonal and product-related factors, but he believes MAU growth should accelerate at some point in 2014.

Consensus currently calls for around 255 million MAUs in the first quarter, or 14 million net additions, above last quarter's 9 million, with buyside expectations at 10-12 million net additions, which is do-able.

Importantly, while MAUs are critical near-term topics, Twitter continues to make progress in all areas of its business, including engagement, user experience and monetization.

13 Best & Worst 529 College Savings Plans of 2014: Morningstar

With college costs ever rising, parents are always looking for ways to make sure they have enough money put away so their kids can get an education.

One way to do that is to invest in 529 plans, which allow for tax-deductible savings that grow in a tax-deferred manner.

529 plans were added to the IRS code more than 10 years ago, with assets in 84 plans nationwide now totaling $200 billion. In 2013, the plans grew 20% over the prior year.

Morningstar recently released its ratings of the 84 plans. Each was assigned to the Gold, Silver, Bronze or Negative category.

The plans were ranked in these five areas: Process, Performance, Price, Parent and People. To get rated as Gold, for example, Morningstar says the plans must meet the “highest-conviction recommendations and stand out as best of breed for their ability to help college savers meet their goals.”

(Related: 30 Best Paying College Majors: 2014)

We’ve listed the plans that merited the top two ratings and those that were deemed to be at the bottom. Of course, the vast majority received a Neutral rating.

We’ve included the rankings by state in terms of 529-plan assets under management. Virginia, with more than $46 billion in assets under management, has by the far the highest level of assets when it comes to college savings.

Check out the Best and Worst 529 College Savings Plans:

THE BEST

1. Maryland College Investment Plan Direct

Rating: Gold

Program Manager: T. Rowe Price

State’s Total 529 AUM: $3.8 billion/Rank: 18th

2. T. Rowe Price College Savings Plan Direct – Alaska

Rating: Gold

Program Manager: T. Rowe Price

State’s Total 529 AUM: $6.07 billion/Rank: 10th

3. The Vanguard 529 College Savings Plan Direct – Nevada

Rating: Gold

Program Manager: UPromise Investments

State’s Total 529 AUM: $12.7 billion/Rank: 3rd

4. Utah Educational Savings Plan Direct

Rating: Gold

Program Manager: Utah Educational Savings Plan

State’s Total 529 AUM: $6.7 billion/Rank: 7th

5. CollegeAdvantage 529 Savings Plan Direct – Ohio

Rating: Silver

Program Manager: Ohio Tuition Trust Authority

State’s Total AUM: $7.7 billion/Rank: 5th

6. CollegeAmerica Advisor – Virginia

Rating: Silver

Program Manager: American Funds

State’s Total AUM: $46.7 billion/Rank: 1st

7. iShares 529 Plan Advisor – Arkansas

Program Manager: UPromise Investments

State’s Total AUM: $485.5 million /Rank: 36th

8. Michigan Education Savings Program Direct

Rating: Silver

Program Manager: TIAA Tuition Financing

State’s Total AUM: $3.9 billion/Rank: 14th

9. ScholarShare College Savings Plan Direct – California

Rating: Silver

Program Manager: TIAA Tuition Financing

State’s Total AUM: $5.5 billion/11th

THE WORST

10. CollegeBound Fund Advisor – Rhode Island

Rating: Negative

Program Manager: AllianceBernstein

State’s Total AUM: $7.7. billion/Rank: 6th

11. CollegeBound Fund Direct – Rhode Island

Rating: Negative

Program Manager: AllianceBernstein

State’s Total AUM: $7.7. billion/Rank: 6th

12. Minnesota Savings Plan Direct

Rating: Negative

Program Manager: TIAA Tuition Financing

State’s Total AUM: $1.1 billion/Rank: 33rd

13. Schwab 529 College Savings Plan Direct – Kansas

Rating: Negative

Program Manager: American Century

State’s Total AUM: $4.2 billion/Rank: 13th

---

Related ThinkAdvisor stories:

Mid-Day Market Update: FMC Slips On Weak Outlook; Integrys Energy Shares Surge

Related AKS Mid-Afternoon Market Update: FMC Slips On Weak Outlook; Integrys Energy Shares Surge AK Steel Unveils Q2 Outlook - Analyst Blog

Midway through trading Monday, the Dow traded down 0.19 percent to 16,915.55 while the NASDAQ declined 0.01 percent to 4,367.74. The S&P also fell, dropping 0.08 percent to 1,961.27.

Leading and Lagging Sectors

Monday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from AK Steel Holding (NYSE: AKS) and Thompson Creek Metals Company (NYSE: TC).

Telecommunications services shares fell around 0.65 percent in trading on Monday. Top losers in the sector included NQ Mobile (NYSE: NQ), down 4 percent, and ORBCOMM (NASDAQ: ORBC), off 5 percent.

Top Headline

Oracle (NYSE: ORCL) announced its plans to buy Micros Systems (NASDAQ: MCRS) in a $5.3 billion deal.

The offer price of $68 per share represents a 3.4% premium over Micros' closing price on Friday.

Equities Trading UP

Integrys Energy Group (NYSE: TEG) shares shot up 12.90 percent to $68.81 after Wisconsin Energy (NYSE: WEC) announced its plans to acquire Integrys Energy Group in a deal valued at $9.1 billion.

Shares of Central Garden & Pet Company (NASDAQ: CENT) got a boost, shooting up 9.22 percent to $9.83 after Harbinger Group offered to buy Central Garden & Pet Co for $10 per share.

MICROS Systems (NASDAQ: MCRS) shares were also up, gaining 3.36 percent to $67.98 after Oracle (NYSE: ORCL) announced its plans to buy MICROS for $68 per share.

Equities Trading DOWN

Shares of Meritor (NYSE: MTOR) were 12.47 percent to $12.77 after the company reached a $500 million settlement with Eaton (NYSE: ETN) related to an anti-trust suit filed in 2006. The company’s board also authorized a repurchase of up to $210 million.

Ixia (NASDAQ: XXIA) shares tumbled 1.68 percent to $11.67 after the company reported its Q4 earnings of $0.15 per share on revenue of $120.60 million. Ixia now expected Q1 sales of $109.0 million to $113.0 million.

FMC (NYSE: FMC) was down, falling 3.65 percent to $72.02 after the company lowered its FY14 earnings forecast and issued a weak Q2 outlook.

Commodities

In commodity news, oil traded down 0.77 percent to $106.01, while gold traded up 0.02 percent to $1,316.90.

Silver traded down 0.26 percent Monday to $20.94, while copper rose 0.90 percent to $3.14.

Eurozone

European shares were lower today.

The eurozone’s STOXX 600 declined 0.51 percent, the Spanish Ibex Index dropped 0.33 percent, while Italy’s FTSE MIB Index fell 1.33 percent.

Meanwhile, the German DAX declined 0.66 percent and the French CAC 40 dropped 0.57 percent while UK shares slipped 0.36 percent.

Economics

The Chicago Fed National Activity Index rose to 0.21 in May, versus economists’ expectations for a reading of 0.20.

The flash reading of Markit PMI manufacturing index rose to a reading of 57.5 in June versus a reading of 56.4 in May. However, economists were expecting a reading of 56.0.

Sales of existing homes rose 4.9% to an annual rate of 4.89 million in May. However, economists were estimating a sales rate of 4.74 million.

Posted-In: Earnings News Eurozone Futures Commodities Economics Intraday Update Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Micron Technology Earnings Preview: Can Momentum Continue? Earnings Expectations For The Week Of June 23: Nike, Walgreen And More Stocks To Watch For June 23, 2014 Morgan Stanley Reiterates On General Electric Following Alstom Board Recommendation #PreMarket Primer: Monday, June 23: BNP Expected To Pay $9 Billion For Sanctions Violations Barron's Recap: 50 Best Annuities Related Articles (CENT + AKS) Mid-Afternoon Market Update: FMC Slips On Weak Outlook; Integrys Energy Shares Surge 'Merger Monday' Deals, Offers And Rejections Mid-Day Market Update: FMC Slips On Weak Outlook; Integrys Energy Shares Surge Mid-Morning Market Update: Markets Edge Lower; Oracle To Acquire Micros For $68/Share Stocks Hitting 52-Week Highs Morning Market Movers

‘Bonds’ Limited Upside’ Points to Role for Gold, Says Gold Council

Gold prices reached a nine-week high Friday as investors turn to the metal as a hedge against inflation given Fed policy to keep interest rates down and amidst continuing concerns over tensions in Iraq and Ukraine.

Gold futures for August delivery inched up 0.4% to $1,318.90 an ounce Friday morning, close to their 2014 high of $1,322.50 on April 15, according to Bloomberg.

Regardless of the level at which the precious metal is trading, the World Gold Council says investors have much to gain by embracing it, as the group reported Thursday. 

“Some people may not want liquid alternatives [like gold] in their portfolios, because they already have hedge funds and private equity holdings,” explained Juan Carlos Artigas, director of investment research for the World Gold Council, in an interview.

“Actually, we say that whatever your portfolio is, investors should consider gold, given the way it’s shown to improve performance and lower risk.”

Plus, low returns on fixed-income holdings make the case even stronger. “We suggest a strategic — not a tactical — allocation” for advisors and their clients, Artigas explained.

“With the current environment with bonds and their low returns, which are not able to provide the same cushion as in the past two decades for investors – in other words, limited upside — we have found that increasing investors’ allocation to gold can be beneficial.”

(The SPDR Gold ETF (GLD) hit a high of about $133 in mid-March; it traded just below Friday at $127.)

Current Picture

Of the roughly $153 trillion in investments tracked by the Bank of International Settlements, World Gold Council and other groups, just 1% is held in gold. About 5% is kept in other liquid assets, 5% in money-market products, 43% in equities and 47% in fixed income.

“Gold is broad and very liquid. There are tons of ways to invest in it,” Artigas said. “It depends on how the investors want to look at cost structures and from other perspectives. Gold is really beneficial in terms of performance and diversification.”

Analysis of returns from January 1990 to March 2014 shows that gold is much less correlated to the stock markets than hedge funds, private equity, REITs and commodities, according to the council.

Gold is also good at protecting investors from risk-tail events.

“This is a fancy way to say that it offers protection from systemic risk that has a low probability; but if it happens [like with the financial crisis, sovereign debt-crisis, etc.], it can have devastating consequences.”

The council suggests that investors that typically hold about 60% equities and roughly 40% bonds, look at diversifying with a 5% to 6% gold holding.

For investors holding hedge funds, REITs or other liquid alternatives, an allocation of 3% to 4% “may be optimal,” Artigas says.

This allocation of gold “is very important, which is a key finding of the paper,” he notes.

World Cup

For those looking to hold gold in other ways — such as via the coveted FIFA World Cup trophy, it should be noted that the World Cup winner will receive a replica that is gold plated.

The current trophy, which was first awarded in 1974, is made of 18-carat gold and weighs 13.61 pounds. It remains in the possession of FIFA.

The original trophy was awarded to Brazil, who won the tournament for the third time in 1970. It was stolen in 1983 and is believed to have been melted down and sold.

FIFA made a replica of the first trophy using 3.97 pounds of gold.

---

Check out Morningstar Goes to Cash on ThinkAdvisor.

Can Amyris Inc. Save Deep-Sea Sharks and Expand This Market by 230%?

Blue sharks have been identified as the culprits of 13 attacks on humans in the last 430 years, according to the International Shark Attack File. There are likely more attacks that have not been reported or successfully identified, but don't worry -- humans have returned the favor by killing up to 20 million blue sharks each year. Legal or illegal, the motivation is simple: Shark products represent a big economic opportunity. The shark's skin can be used for leather, its fins can be prepared in soups, and the remaining meat can be processed into fish meal. And if you get two or three shark livers you can make about 1 liter of the high-value emollient squalane, which sells for $30 per liter, or $114 per gallon.  

Can engineered yeast save deep-sea sharks? Source: Wikimedia Commons.

Good news for deep-sea sharks: Synthetic biology pioneer Amyris (NASDAQ: AMRS  ) has engineered yeast to create the hydrocarbon farnesene, which can then be processed into large amounts of high-quality squalane. The emollient is naturally produced by your skin to prevent moisture loss; thus, it's an important ingredient for numerous global cosmetic brands offering skincare lotions, hair care creams, hand washes, lipsticks, and various other personal-care products. In fact, you may have used a product containing squalane today. Several Avon (NYSE: AVP  ) products, the St. Ives brand from Unilever (NYSE: UN  ) , the Cover Girl and Olay brands from Procter & Gamble (NYSE: PG  ) , the Nivea brand from Beiersdorf, the Dial brand from Henkel, the Aveeno and Johnsons brands from Johnson & Johnson, and many others list squalane as an ingredient.  

Despite its perceived prevalence, manufacturers have largely abandoned the emollient because of sourcing concerns (shark liver and ultra-refined olive oil) that have led to volatile supply and pricing. The squalane market has shrunk to just one-third of its size by volume in the last decade as a result. However, manufacturers and suppliers are rushing to Amyris' novel synthetic biology platform in hopes of returning the squalane market to its previous glory. Amyris has grander plans.

The case of the missing squalane
The squalane market has shriveled from 7,500 metric tons annually 10 years ago to just 2,500 MT today. Simply put, shark livers (irregular and perhaps illegal supply) and olive oil (crops decimated by drought in recent years) cannot serve as stable annual sources of the emollient. Who knew! Of course, given the lack of alternatives, the market is still dominated by shark- and olive-derived squalane. That's about to change.

Amyris ran into problems as it began to ramp production at its first commercial scale facility in Brotas, Brazil in 2012, but still exited the year supplying 10% of the global squalane market. The company continued to march to higher production volumes in 2013 and managed to end the year with an 18% hold on the market while supplying squalane to over 300 unique brands.

*Numbers are approximate. Sources: Amyris presentation, author calculations.

It's important to note that Amyris supplies squalane to distributors around the globe, which then sell the emollient to personal-care product owners such as Avon, Unilever, and Procter & Gamble. Such a model is more capital friendly and allows Amyris to leverage the existing infrastructure within the industry while focusing on producing its molecules as cheaply as possible. Two molecules of farnesene, the company's versatile building block molecule, are required to make one molecule of squalane. It appears to be close to a 1-to-1 ratio on a volumetric basis as well, so it likely costs Amyris about $7-$8 plus additional minimal processing costs to produce 1 liter of squalane. Not bad considering the current market price of $30 per liter, but expect production costs to fall even further in the future.

While the company will continue to replace rare traditional sources of squalane, CEO John Melo doesn't want to just capture market share. He wants to create it. The global annual squalane market stands at roughly 2,500 MT, or 3.1 million liters, today. Given current prices the market represents a $93 million opportunity today. That's a far-cry from the market's historical peak value of $180 million. It's even more distant from the $300 million market Melo envisions his company's platform enabling. Can Amyris really capture and create market share?

Get ready for a squalane renaissance
You can laugh at the fact that Amyris' 18% market share represented just 450 MT of squalane exiting 2013, but that volume will fetch $13 million-$15 million in revenue in 2014 -- nearly equivalent to total renewable product sales realized last year. What high-value specialty chemicals lack in volume they make up for in selling prices. Besides, the potential future value of Amyris' squalane supply is anything but laughable.

Using current market prices, a $300 million market would be supported by roughly 8,100 MT, or 10 million liters, of the emollient. If the company can successfully expand the squalane market and account for the bulk of the added volume (where the heck else would it come from?) then sales of squalane could represent a megaopportunity for Amyris without taking up much production capacity. Here are a few step-wise scenarios to consider on the way to building a $300 million squalane market.

Amyris Squalane Volume (MT)

Amyris Squalane Volume (L)

Market Value ($USD)

% Brotas Capacity*

Deep-sea Sharks Saved

1,000	1.2 million	$37 million	4.9%	3 million
2,000	2.5 million	$74 million	9.9%	6 million
3,000	3.7 million	$111 million	14.8%	9 million
4,000	4.9 million	$148 million	19.8%	12 million
5,000	6.2 million	$185 million	24.7%	15 million
6,000	7.4 million	$222 million	29.6%	18 million
7,000	8.6 million	$259 million	34.6%	21 million

*Expressed on a farnesene basis, although other molecules are produced. Source: Amyris for approximate market price, Author calculations.

Although deep-sea shark liver and ultra-refined olive oil currently represent approximately 2,050 MT of the annual global supply of squalane, they're quickly being replaced by Amyris. It's difficult to say if they will be completely squeezed out of the market, or if other sources of farnesene will arrive to take small minority stakes in the market, but the company remains in a unique position. Consider that producing 5,600 MT of squalane each year, or the entire expanded volume of the market, would give Amyris a 69% market share. Wouldn't an expansion of the market result in lower average selling prices? Perhaps, but if Amyris can grab a stranglehold on the market and provide a consistent, sustainable supply of squalane it would have a pretty big role in determining the market price. I don't think Avon, Unilever, or Procter & Gamble would mind, either.

Foolish bottom line
The ability to engineer yeast to create a global supply of a constrained, highly coveted molecule at significantly reduced costs compared to traditional sources highlights a small sliver of the awesome potential of synthetic biology. Amyris could accomplish amazing things, while returning out-sized gains to investors, with more than just the squalane, however. The company plans to launch its second flavor and fragrance molecule in the next year or so and capture 40% of the market within the second year of production. It will represent a smaller volume than even the squalane market, but will sell for much higher prices to make up for it.

Now, Amyris isn't a perfect short-term investment. Some analysts and industry watchers weren't thrilled with the planned slow pace of ramp-up at Brotas in 2014, and the conversion of debt issued from past mistakes will result in share dilution in the future. However, I see an amazing long term opportunity, especially at a lowly current market cap of roughly $320 million. That seems like a steal for a company that will be able to produce over $1 billion in annual revenue at 60%-70% margin, expand production capacity by at least 400%, keep your skin moisturized better than lower-quality emollients currently used in personal care products, and save millions of sharks by the end of the decade. Sounds pretty Foolish to me.

Looking for outsized gains for your portfolio?
I believe Amyris represents an amazing long term opportunity -- and recently backed it up with my own money. Can it lead to gains they said couldn't be achieved? Only time will tell, but David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Russia stocks suffer worst week since May 2012

An earlier version of this story incorrectly named the country that owes Gazprom $1.89 billion. It is Ukraine.

MADRID (MarketWatch) — A week of frenzied geopolitical tension over Ukraine took a toll on Russia stocks, which logged their worst weekly losses in just under two years.

The blue-chip MICEX index (XX:MICEXINDEXCF)  finished with barely a pulse, up 0.1% to 1,339.36 on Friday, but it lost more than 7% on the week. The last time the MICEX fell that hard was the week ending May 18, 2012, when it tumbled 8.66%, according to FactSet.

MICEXINDEXCF 1,339.36, +1.38, +0.10% Russia's MICEX stock index

The week started with dramatic losses for Russia over an escalation of the Ukraine crisis, with a drop of 11% on Monday. MICEX stocks were still being tossed around by the diplomatic back and forth as the week continued. On Thursday, shares lost another 1% after the local government of Ukraine's breakaway territory of Crimea said it will hold a March 16 referendum to decide whether it becomes part of the Russian Federation. Also see: White House announces sanctions tied to Ukraine. That referendum could turn into another watershed moment for markets.

A phone call between Russian President Vladimir Putin and President Barack Obama didn't seem to have much impact. Obama urged a diplomatic solution and Putin again repeated his call that Ukraine's government isn't legitimate, and he "can't ignore calls for help" from Crimea and eastern and southeastern regions of Ukraine. The State Department's top 10 Russian lies about Ukraine

Click to Play Europe's Week Ahead: Question time for Carney

Bank of England Gov. Mark Carney goes before U.K. members of parliament at a treasury select committee next week and can expect questions on both the bank's latest inflation report and the current forex probe.

Shares of Gazprom OAO (RU:GAZP)  rose 0.3% in Moscow, but sank nearly 11% for the week. The company on Friday warned Ukraine to pay its bill or risk losing its gas supply, AFP reported Friday. The company is owed $1.89 billion by Ukraine, and Gazprom Chief Executive Alexei Miller said the country risks returning to a situation similar to the start of 2009. The cutoff at the time also cut supplies to much of Europe. Read: Why Ukraine and Russia matter to commodity markets

As for U.S. investor exposure, the pain was there for all to see as the week wound down. Among exchange-traded funds, the iShares MSCI Russia ETF (ERUS)  and the SPDR S&P Russia ETF (RBL)  each fell more than 6% for the week, contrasting with a 0.1% gain for the iShares MSCI Emerging Markets ETF (EEM) .

The Russian ruble (USDRUB)  was had a loss of more than 1% against the dollar and a loss of 1.8% against the euro (EURRUB) . That's even after Russia's central bank hiked rates to 7% from 5.5% at the height of the crisis on Monday.

As for the investment calls on Russia, it's not exactly clear cut. Late Thursday, J.P. Morgan Cazenove's Hong Kong-based strategist Adrian Mowat said investors should unwind Russian stock holdings. He predicted emerging-market money managers will cut their positions because Russian holdings are more than double the long-term average, Bloomberg reported.

Mowat sees nothing good coming from the central bank's rate hike earlier in the week, saying it will hit the economy and stocks, while a weaker ruble and higher inflation and lower confidence among Russian businesses will cut into domestic demand and investment

'Ridiculously cheap' Russia and what the word 'nuclear' did back in 2012

As for those who say buy, Peter Garnry, head of equity strategy at Saxo Bank, said earlier in the week that volatility over Russian stocks will remain elevated for some time, but that will "breed opportunities." Also: Russia is corrupt, but its markets are bargains

In a note, Garnry said that the MSCI Russia Capped Index (ETF (ERUS) ) had underperformed world equities by more than 20% in 2014 alone. Like many others, he predicts an eventual diplomatic solution for the Ukraine crisis as neither Russia nor the West want a war. Plus, the Russian economic outlook is positive, he said.

Holy guacamole! Chipotle may stop selling it?

Chipotle says it may stop selling guacamole, at least temporarily, as the Mexican menu fast-food chain chain grapples with an avocado shortage it blames partly on climate change.

A company spokesman, however, told a New York City TV station not to "read too much into" a statement given to regulators.

"Fret not guac lovers," Chipotle spokesman Chris Arnold tweeted Wednesday afternoon.

The company says in a February filing with the Securities and Exchange Commission that "in the event of cost increases with respect to one or more of our raw ingredients, we may choose to temporarily suspend serving menu items, such as guacamole or one or more of our salsas."

Doing so "could also have an adverse impact on our brand," the filing says.

"I wouldn't read too much into this," Arnold said in a statement quoted by New York's Channel 4, an NBC affiliate. "The story stems from a 'risk factor' note in our annual report and amounts to nothing more than routine and required financial disclosure. The sky isn't falling."

Of the climate connection, the company says in the filing: "Increasing weather volatility or other long-term changes in global weather patterns, including any changes associated with global climate change, could have a significant impact on the price or availability of some of our ingredients."

USA TODAY has reached out to Chipotle for additional comment.

How to Fill Out a W-4 Form

I remember when I got my first job and was handed a W-4. I had no idea what it was or how to go about filling out the IRS form. For starters, the whole "allowance" thing threw me off. As far as I was concerned, an allowance was something my parents gave me for doing chores when I was a kid.

SEE ALSO: Collect Next Year's Tax Refund Now

I'm sure plenty of people just entering the workforce, and even quite a few experienced workers, have the same thoughts as they fill out a W-4 form. So let's go over the basics:

Why do I need to fill out a W-4? The information you provide on the form is used by your boss to figure out how much federal income tax to withhold from your paycheck.

How do I know if I'm exempt from withholding? You can take a pass on withholding if you owed no tax last year and expect to owe nothing this year, either. (This means zero tax liability for the year, not whether you owe tax or get a refund when you file.) If that's the case, simply fill out lines 1, 2, 3, 4 and 7 of your W-4 and return the signed form to your employer. Don't neglect to do this. Without a W-4 on file, an employer is required to withhold at the highest rate—as if you are single and claim zero allowances.

How do allowances work? The number of allowances you claim controls how much will be withheld from your paycheck. The more you claim, the less money is withheld; the fewer, the more of your salary is sent off to the IRS. Form W-4 includes three worksheets to help you determine the correct number of allowances.

Which worksheet should I use to calculate my allowances? Start with the basic Personal Allowances Worksheet. For an unmarried worker with only one job, no dependents and who will claim the standard deduction, the worksheet is straightforward. Claim one allowance for yourself and a second because you're single with only one job. Then enter "2" as the total number of allowances that you're claiming on line 5 of your W-4. That's it. You're done. But if you're married, have more than one job, will itemize or claim tax credits, things are more complicated. That's not a bad thing. The point is to try to match your withholding to the tax bill you'll actually owe next spring.

The two other worksheets that come with the form are designed to help you do that. Use the Deductions and Adjustments Worksheet if you expect to itemize your deductions or claim certain credits or income adjustments. Since those tax breaks will reduce your ultimate tax bill, you can use extra allowances to reduce withholding during the year. The Two-Earners/Multiple Jobs Worksheet comes into play if you and your spouse both work, or if you are single with more than one job. Those situations can affect your tax bill, too, and this worksheet will help you keep withholding in line.

If you want to get further into the weeds and refine withholding even more, you can grab a copy of IRS Publication 919, How Do I Adjust My Withholding?. It has several more worksheets to run through. For the vast majority of taxpayers, though, that's probably unnecessary.

Any special tips for married couples? Here's a key for married couples if both spouses work and a joint return is filed: Fill out a single set of the W-4 worksheets together to determine the total number of allowances you deserve; then divide allowances between the two of you on individual W-4 forms for your employers. If you double-dip on deductions or credits you could wind up being seriously underwithheld and owe a bundle to the IRS when you file your joint return.

How about tips for new grads starting a first job in the middle of the year? There is a special brand of withholding that's tailor-made for new college graduates who get their first full-time job around midyear. The part-year method sets withholding according to what you'll actually earn during the part of the year you work, rather than on 12 times your monthly salary. That can make a significant difference in how much your employer holds back from your checks. The part-year method can be used by anyone who expects to work no more than 245 days—approximately eight months—during the year. It could also pay off handsomely, for example, if you land a high-paying summer job. You must give your employer a written request that the part-year method be used. Employers don't have to comply, but if yours does, you'll get more of your pay as you earn it.

The worksheets seem complicated. Why can't I just make up a number? While you are permitted to claim fewer allowances than you're entitled to, you can be penalized for claiming more allowances than you're entitled to on your W-4.

Once I fill out a W-4 I never have to think about it again, right? Wrong. First of all, you must fill out a new W-4 each time you start a new job. But even if you don't switch jobs, you should revisit your W-4 whenever there's a change in your personal circumstances. A marriage, divorce or birth of a child can have a big impact on how much tax you could and should have withheld. Submit the new W-4 at any time of year to your employer, not to the IRS. The revisions should take effect with your next paycheck.

One very big reason that you should revise your W-4 is if you received a big tax refund from the IRS. While a refund might seem like a good thing, all it really means is that you gave Uncle Sam an interest-free loan because too much money was being withheld from each of your paychecks. Our easy-to-use withholding calculator can help you figure out how many extra allowances you should be claiming on your W-4. To use our calculator you'll need to know just three things: your filing status, your taxable income and the amount of your federal tax refund.

Finra seeks to tighten investor dispute rules

Finra proposed on Wednesday to narrow the definition of a public arbitrator, making it impossible for anyone with financial industry experience to qualify for the category.

The move is another step by the Financial Industry Regulatory Authority Inc., the broker-dealer self-regulator, to tighten rules surrounding its mechanism for resolving investor disputes with financial firms. The process has come under criticism for favoring Wall Street.

Finra filed the proposal with the Securities and Exchange Commission, which must approval Finra rule changes. Last week, Finra asked the SEC to approve a round of fee increases related to its arbitration process.

Nearly every brokerage customer contract contains a mandatory arbitration clause. The parties choose a three-person arbitration panel from a list of arbitrators provided by Finra. There are a total of 6,392 Finra arbitrators: 3,555 public and 2,837 non-public.

Under Finra's new rule, anyone who has worked in the financial industry for any length of time cannot be classified as a public arbitrator. He or she can only be a non-public arbitrator. Current rules allow industry veterans to join the public list five years after ending their industry affiliation.

“Once Finra classifies an arbitrator as non-public, Finra would never reclassify the arbitrator as public,” the rule filing states. “Under the proposed rule change, there would be no exceptions to this provision.”

Finra also is making it harder for attorneys, accountants and others who devote 20% or more of their professional work representing financial firms or their employees from becoming public arbitrators. Under current rules, they can join the public list two years after they cut industry ties, as long as they have worked less than 20 years total. A tenure longer than 20 years would permanently disqualify them from being public arbitrator.

The new rule would extend the look-back period to five years, broadens the definition to include work for anyone associated with financial firms and permanently disqualifies professionals who have worked longer than 15 total years on behalf of industry clients.

“Finra is increasing the look-back period, and decreasing the number of years before it applies a permanent disqualification to ensure that these individuals are sufficiently removed from their industry affiliation before Finra permits them to serve on the public arbitrator roster,” the rule filing states.

The regulator also is tweaking the rule pertaining to attorneys, accountants and other professionals who devote more than 20% of their professional time to representing investors in securities claims! .

They had been allowed to serve as public arbitrators. Under the new rule, they would be classified as non-public.

They could switch to public five years “after their business mix changes,” as long as they haven't worked a total of more than 15 years, according to the rule proposal. After 15 years, they would stay on the non-public list permanently.

Under the new rule, Finra also would allow professionals affiliated with a mutual fund, hedge fund or investment adviser to serve as non-public arbitrators after a two-year cooling off period. Currently, they can serve as public arbitrators two years after they leave their firms.

Parties involved in an arbitration dispute choose three arbitrators from lists generated randomly by Finra. Last year, the SEC approved a Finra rule making an all-public panel the norm.

Senate Finance to Vote on New Social Security Advisory Board Members

The Senate Finance Committee will convene an open executive session on Wednesday to vote on the new nominations to be members of the Social Security Advisory Board.

The nominees include Henry Aaron, the Bruce and Virginia MacLaury senior fellow in the Brookings Institution Economic Studies Program; Lanhee Chen, a research fellow at the Hoover Institution, lecturer in public policy at Stanford University, and lecturer in law at Stanford Law School; and Alan Cohen, who was the senior budget advisor and chief counselor for Social Security for the U.S. Senate Committee on Finance from 2001 to 2012.

Aaron has also served as assistant secretary for planning and evaluation at the Department of Health, Education and Welfare and chaired the 1979 Advisory Council on Social Security. He received a B.A. from UCLA in political science and economics and holds an M.A. in Russian regional studies and a Ph.D. in economics from Harvard University.

Chen previously was the policy director for the Romney-Ryan presidential campaign, and in 2008 was senior counselor to the deputy secretary at the U.S. Department of Health and Human Services. Chen received an A.B. from Harvard College, an A.M. and Ph.D. in political science from Harvard University and a J.D. from Harvard Law School.

Cohen served from 1993 to 2001 as senior advisor for budget and economics to the secretary of the Treasury. From 1992 to 1993, he was the budget economist for the U.S. Senate Committee on Finance. He received a B.A. from Grinnell College, an M.P.P. from the University of Michigan, and a Ph.D. from the University of Wisconsin.

---

Check out Replace Social Security or Fix It? on ThinkAdvisor.

Gasoline Prices Above $3 in All 50 States

In a sign that oil prices and an extremely cold winter have affected gasoline prices, those prices are now more than $3 per gallon for regular in all 50 states. Even states in which the prices tend to be pushed down by proximity to supply and refineries, prices have not remained below the threshold.

According to GasBuddy, only a few states have prices below $3.15. These include Montana, South Carolina, Utah, New Mexico, Louisiana, Mississippi, Wyoming, Missouri and Arkansas. Even oil-producing states Texas and Oklahoma have prices that have inched up toward $3.20. The average price of a gallon of regular nationwide is $3.34.

At the far end of the spectrum of high gas prices are several states that among them have well over a quarter of the nation’s population. The average price of a gallon of regular is above $3.60 in California and New York, and above $3.50 in Michigan, Illinois and Pennsylvania. In most cities along the coast between San Francisco and San Diego, the price has risen to more than $3.70.

Oil prices continue to sit above $100 a barrel. That is unlikely to change in the near term. Crude prices have risen recently for several reasons, most of which will not be short-lived. Economic growth in China has picked up by most measures. The People’s Republic is the largest importer of crude in the world, based on most research about energy use and trade. Home heating oil demand has spiked because of an unusually cold winter in the Northern Hemisphere. The freeze, particularly in the United States, has not shown any trend toward easing.

Several factors could constrain global crude production. According to the International Energy Agency’s Oil Market Report for February:

OECD oil demand growth rebounded in the second half of last year, but non‐OECD countries still accounted for more than 90% of global growth of 1.2 mb/d for 2013 as a whole, and will make up all of the 1.3 mb/d increase forecast for 2014, as the OECD resumes its structural decline. Demand growth is expected to accelerate in 2014 in line with the broader economy.

That “demand growth” may keep upward pressure on gasoline prices throughout this year. Gas prices may well not drop below $3 in any of the 50 states, or at least not for long.

Top Rising Stocks To Invest In Right Now

Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at bargain prices. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do when the market reacts to the upside.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

One lustrous investment
If you hadn't guessed by now, I'm a big fan of gold and gold miners. There are multiple factors at the moment that I feel could usher in another rally in gold prices. These include weak global economies, which make gold an attractive safe-haven investment; low domestic interest rates, which make gold attractive relative to low-yielding CDs and bonds; copious U.S. money printing, which could lead to inflation; and a contrarian mentality to buy when others are fearful. That's why I think investors would be foolish to pass up on cost-efficiency mining expert Goldcorp (NYSE: GG  ) at its current levels.

Top Rising Stocks To Invest In Right Now: Digi International Inc.(DGII)

Digi International Inc. engages in the provision of machine to machine networking products and solutions to connect, monitor, and control of local or remote physical assets by electronic means. It offers a range of embedded products, including modules, single board computers, chips, satellite communication devices, and software and development tools; and non embedded products comprising cellular products, serial servers, console servers, universal serial bus connected products, serial cards, and wireless communication adaptors. The company also provides wireless product design and development services to provide wireless networking products. In addition, it offers iDigi, a cloud-based Internet platform to connect enterprise applications to remote electronic devices. The company sells its products through a network of distributors, systems integrators, and value added resellers for a range of businesses and institutions, as well as to original equipment manufacturers primar ily in North America, Europe, the Middle East, Africa, Asia, and Latin America. It has strategic alliances with VMware, Ember, Freescale, Qualcomm, Ericsson, Itron, AT&T, Sprint, Verizon, Bell Mobility, and Rogers. The company was founded in 1985 and is headquartered in Minnetonka, Minnesota.

Advisors' Opinion:

• [By Seth Jayson]

  Basic guidelines
  In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Digi International (Nasdaq: DGII  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Digi International doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue decreased 5.8%, and inventory increased 3.2%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue shrank 1.7%, and inventory grew 3.2%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 2.6%, and inventory grew 1.7%.

Top Rising Stocks To Invest In Right Now: TAL Education Group(XRS)

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

Advisors' Opinion:

• [By Louis Navellier]

  Education is a top priority in China and competition for the best schools are intense. TAL� Education Group (XRS) benefits form the focus on education by offering tutoring services for kids in grades k-12. They operate a network of 270 learning centers and 247 service centers in China and also have 5 call centers in Beijing, Shanghai, Tianjin, Guangzhou, and Shenzhen.

• [By Lisa Levin]

  TAL Education Group (NYSE: XRS) shares rose 4.30% to $20.86. The volume of TAL Education Group shares traded was 318% higher than normal. TAL Education's PEG ratio is 1.14.

Top High Dividend Stocks To Own Right Now: Tellabs Inc.(TLAB)

Tellabs, Inc. designs, develops, and supports telecommunications networking products for communication service providers in the United States and internationally. Its products and services enable customers to deliver wireless and wireline voice, data, and video services to business and residential customers. The company operates through three segments: Broadband, Transport, and Services. The Broadband segment provides access products that enable service providers to deliver bundled voice, video, and high-speed Internet/data services over copper or fiber networks; managed access products, which deliver wireless and business services primarily outside of North America; and data products, including packet-switched products that enable wireless and wireline carriers to deliver mobile voice and Internet services, and wireline business services to their customers. The Transport segment enables service providers to manage network bandwidth by adding capacity needed; and wireline and wireless providers to support metro networks, mobile services, and business services for enterprises, as well as triple-play voice, video, and data services for residential consumers. The Services segment delivers deployment, training, support, and professional services, which support various phases of the network, such as planning, building, and operating. Tellabs, Inc. serves primarily communication services providers, including local exchange carriers; wireline and wireless service providers; multiple system operators; competitive service providers; distributors; original equipment manufacturers; system integrators; and government agencies. The company sells its products and services through its direct sales and sales support personnel, value-added resellers, independent sales representatives, distributors, and public and private network providers. Tellabs, Inc. was founded in 1974 and is headquartered in Naperville, Illinois.

Advisors' Opinion:

• [By SA Pro Top Ideas]

  Stock Movers and Great Calls
  Alpha-Rich long and short ideas regularly move stocks and identify stocks that are about to move. Some notable recent calls subscribers had early access to:

  Saidal Mohmand argued Wednesday that Tellabs (TLAB) was a strong assets play on the verge of a turnaround. The stock is +5.9% since. Read article » On June 13, Stephen Lin said that Ellie Mae's (ELLI) dominant position could mean 45% upside. Shares are +30.7% since. Read article »

  To Come Today
  Don't forget to check your SA Pro dashboard later today for the latest Alpha-Rich ideas, including a REIT with strong management and many catalysts. Any thoughts to share on the latest Alpha-Rich ideas? Leave a comment here. Have a great weekend.
  
  SA Pro Editors
  …............
  
  The SA Pro team is Eli Hoffmann (Editor in Chief), Rachael Granby (Editorial Product Manager), Daniel Shvartsman, Samir Patel, Michael McDonald, and Jeffrey Fischer (Senior Pro Editors). You can reach us at pro-editors@seekingalpha.com.

• [By Rich Smith]

  You have to hand it to Tellabs (NASDAQ: TLAB  ) -- they work fast.

  Late last month, the networking equipment maker had to scramble when its acting chief financial officer, Tom Minichiello, announced plans to retire on July 12 to become the new CFO at Westell Technologies (NASDAQ: WSTL  ) . On Friday, though, just as the deadline was happening, Tellabs announced that it has found a replacement.

• [By Selena Maranjian]

  The biggest new holdings are Seagate Technology�and Warner Chilcott. Other new holdings of interest include Tellabs (NASDAQ: TLAB  ) and Windstream (NASDAQ: WIN  ) . Tellabs offers a satisfying dividend yield of 3.7%, but the networking equipment maker has been facing some headwinds, such as the death of its CEO and the recent departure of its CFO. Its performance has been spotty, besting estimates in its fourth quarter but disappointing them in the recent first quarter.

• [By Rick Munarriz]

  Thursday
  Tellabs (NASDAQ: TLAB  ) checks in on Thursday. The provider of mobile backhaul, packet optical, and services solutions to communications services lost its CEO to colon cancer last year. It has also lost its mojo. Wall Street sees Tellabs merely breaking even in 2013 on a 14% decline in revenue.

Top Rising Stocks To Invest In Right Now: Euro/Swiss(RF)

Regions Financial Corporation operates as the holding company for Regions Bank that provides a range of commercial, retail, and mortgage banking services in the United States. It offers various deposit products, including savings and transaction accounts; demand deposit accounts; money market accounts; and time deposits, such as certificate of deposits and individual retirement accounts. The company?s loan portfolio comprises commercial loans, such as commercial and industrial, and owner occupied commercial real estate mortgage and construction loans; investor real estate loans, including commercial real estate mortgage and construction loans; and consumer loans, which consist of residential first mortgage, home equity, indirect, consumer credit card, and other consumer loans. Regions Financial Corporation, through other subsidiaries, also provides regional brokerage and investment banking products and services, such as securities brokerage, trust, asset management, finan cial planning, mutual funds, securities underwriting, sales and trading, and investment banking services for individual and institutional investors; and insurance brokerage services for various lines of personal and commercial insurance comprising property, casualty, life, health, and accident. In addition, the company offers credit-related insurance, including title, term life, credit life, environmental, crop, and mortgage insurance; debt cancellation products; and equipment financing products primary for commercial clients. As of December 31, 2011, it operated approximately 2,100 ATMs and 1,726 banking offices in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, and Virginia. The company was founded in 1970 and is headquartered in Birmingham, Alabama.

Advisors' Opinion:

• [By Amanda Alix]

  Banks are anxious to make money off of their mobile customers, but they don't relish�the type of backlash B of A experienced. Yet, banks have a point. Downloadable apps cost money to create, with estimates of between $1 million and $5 million for each project.�Surely, banks can be excused for wanting to recoup some of that investment in research and development. Some already do --�U.S. Bancorp (NYSE: USB  ) has been charging $0.50 per mobile check deposit for over two years, and Regions Financial (NYSE: RF  ) charges for this service, too. U.S. Bancorp notes that customers have willingly paid for this amenity, and Regions plans to further monetize its mobile banking services platform.

• [By Eric Volkman]

  Following last month's bank stress tests from the Federal Reserve, Regions Financial (NYSE: RF  ) is fulfilling its stated aim to increase its dividend. The lender will pay its stockholders a quarterly distribution of $0.03 per share, to be dispensed on July 1 to shareholders of record as of June 14. Previously, the company had handed out $0.01 per share in every quarter dating back to Sept 2009.

• [By Matthew Smith]

  We also think that Regions Financial (RF) should be bought on the weakness in their share price right now. The shares trade roughly $1/share below their 52-week high right now but with what we see happening in the financial space over the next few months and few years we think that this name is a deal under $10/share. Like the discount brokers, as the yield curve steepens the company's profits shall increase and with that taking place and the continued improvement in the company's balance sheet we think share buybacks and dividends will be carried out and even raised.

• [By Robert Eberhard]

  Regions Financial (NYSE: RF  ) will release its first-quarter earnings tomorrow morning, and investors are facing a big question: Will CEO Grayson Hall and crew deliver good news? Or should investors be fretting the upcoming release?

Top Rising Stocks To Invest In Right Now: Hyperion Therapeutics Inc (HPTX)

Hyperion Therapeutics, Inc. (Hyperion), incorporated in November 2006, is a development-stage biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. The Company develops Ravicti (glycerol phenylbutyrate) to treat the prevalent urea cycle disorders (UCD) and hepatic encephalopathy (HE). The Company has completed two Phase II trials and one pivotal Phase III trial of Ravicti. The Company�� HE clinical program consists of two trials, which have enrolled patients with cirrhosis. On December 23, 2011, the Company submitted a new drug application (NDA) for Ravicti for the chronic management of UCD in patients aged six years and above based on data from its pivotal Phase III trial in adult patients and the results of two Phase II trials, one in adults and one in pediatric patients aged 6 through 17 years. In June 2013, Hyperion Therapeutics Inc announced that the completion of its acquisition of BUPHENYL (sodium phenylbutyrate) Tablets and Powder from Ucyclyd Pharma Inc., a subsidiary of Valeant Pharmaceuticals International, Inc.

In June 2011, the Company completed a 24-month carcinogenicity study of Ravicti in rats. On March 22, 2012, pursuant to an asset purchase agreement (purchase agreement) with Ucyclyd Pharma, Inc., a wholly owned subsidiary of Medicis Pharmaceutical Corporation, the Company purchased all of the worldwide rights to Ravicti. The Company also has an option to acquire all of Ucyclyd�� worldwide rights in BUPHENYL and AMMONUL (sodium phenylacetate and sodium benzoate) injection.

The Company conducted a pivotal Phase III trial of Ravicti in adult patients 18 years of age or older with UCD. The Company completed a second Phase II trial at five centers in North America in UCD patients aged 6 through 17 years. This trial includes two phases: a two-week, open-label, safety, tolerability, pharmacokinetic characteristics and ammonia control of Ravicti. The Co! mpany enrolled 77 adult and pediatric UCD patients in its two 12-month open-label safety studies, 69 of whom completed the studies. The Company conducted nonclinical genotoxicity and carcinogenicity studies to assess the tumorigenic potential of Ravicti in animals and to assess the relevant risk in humans. The Company is conducting a Phase II multi-center study of patients with cirrhosis and episodic HE.

Advisors' Opinion:

• [By Jesse Solomon]

  NPS Pharmaceuticals (NPSP), for example, created a drug for treating short bowel syndrome. And Hyperion Therapeutics (HPTX) is developing a drug for hepatic encephalopathy, a decline of brain function that according to the National Institute of Health occurs when the liver is no longer able to remove toxins from the blood. Those stocks are up 20% and 40%, respectively, this year.

• [By Sean Williams]

  What: Shares of Hyperion Therapeutics (NASDAQ: HPTX  ) , a biopharmaceutical company focused on treatments for orphan diseases and hepatology, rose as much as 10% after receiving orphan drug exclusivity status for Ravicti from the Food and Drug Administration, and exercising an option to acquire two additional urea cycle drugs from Valeant Pharmaceuticals (NYSE: VRX  ) .

Top Rising Stocks To Invest In Right Now: Shire PLC (SHPG)

Shire plc (Shire), incorporated on January 28, 2008, is a specialty biopharmaceutical company that focuses on meeting the needs of the specialist physician. Shire focuses its business on attention deficit and hyperactivity disorder (ADHD), gastrointestinal (GI) diseases, human genetic therapies (HGT) and regenerative medicine (RM), as well as opportunities in other therapeutic areas. As of December 31, 2012, the Company�� products included VYVANSE/VENVANSE (lisdexamfetamine dimesylate), ADDERALL XR (mixed salts of a single-entity amphetamine), INTUNIV (extended release guanfacine), EQUASYM (methylphenidate hydrochloride) modified release (XL), LIALDA (mesalamine)/ MEZAVANT(mesalazine), PENTASA (mesalamine), RESOLOR (prucalopride), FOSRENOL (lanthanum carbonate), XAGRID (anagrelide hydrochloride), REPLAGAL (agalsidase alfa), ELAPRASE (idursulfase), VPRIV (velaglucerase alfa), FIRAZYR (icatibant) and DERMAGRAFT(Human Fibroblast-Derived Dermal Substitute). As of December 31, 2012, the Company�� products under development included INTUNIV (extended release guanfacine), VYVANSE/VENVANSE (lisdexamfetamine dimesylate), INTUNIV, Guanfacine Carrier Wave, LIALDA (mesalamine)/MEZAVANT (mesalazine), RESOLOR (prucalopride), RESOLOR (prucalopride), SPD 557(M0003), XAGRID, VYVANSE (lisdexamfetamine dimesylate), REPLAGAL (agalsidase alfa), HGT-4510, HGT-2310, HGT-1410, HGT-1110, HGT-3010, and DERMAGRAFT. On January 31, 2012, the United States Food and Drug Administration approved VYVANSE for the maintenance treatment of ADHD in adults. In March 2013, it announced the acquisition Of Premacure AB. In January 2014, Shire Plc sold its DERMAGRAFT assets to Organogenesis Inc. In January 2014, Shire Plc acquired 79.5% interest in ViroPharma Inc.

VANSE/ VENVANSE

VYVANSE is a New Chemical Entity (NCE) and is the pro-drug stimulant for the treatment of ADHD, where the amino acid l-lysine is linked to d-amphetamine. VYVANSE is therapeutically inactive until metabolized in the body. The United Stat! es Food and Drug Administration approved VYVANSE as a once-daily treatment for children aged 6 to 12 with ADHD in February 2007, for adults in April 2008 and for adolescents aged 13 to 17 in November 2010. VYVANSE is available in the United States in six dosage strengths: 20 milligram, 30 milligram, 40 milligram, 50 milligram, 60 milligram and 70 milligram. Health Canada approved VYVANSE for the treatment of ADHD in pediatric patients aged 6 to 12 in February 2009, and for adolescents and adults in November 2010. In April 2012, ANVISA, the Brazilian health authority, granted marketing authorization approval for lisdexamfetamine dimesylate for the treatment of ADHD in children aged 6-12.

ADDERALL XR

ADDERALL XR is an extended release treatment for ADHD, which uses MICROTROL drug delivery technology and is designed to provide once-daily dosing. It is available in 5 milligram, 10 milligram, 15 milligram, 20 milligram, 25 milligram and 30 milligram capsules and can be administered either as a capsule or sprinkled on soft food. The United States Food and Drug Administration has approved ADDERALL XR as a once-daily treatment for children aged 6 to 12 with ADHD, for adults in and for adolescents aged 13 to 17. Teva Pharmaceutical Industries, Ltd. (Teva) and Impax Laboratories, Inc. (Impax) commenced commercial shipment of their authorized generic versions of ADDERALL XR in April and October 2009, respectively. Shire receives royalties from Impax�� sales of authorized generic ADDERALL XR.

INTUNIV

INTUNIV is a selective alpha-2A receptor agonist indicated for the treatment of ADHD. Alpha-2A-adrenoceptors strengthen working memory networks by inhibiting cAMP-HCN channel signalling in the prefrontal cortex (Cell. 2007; 129:397-410). INTUNIV is non-scheduled and has no known potential for abuse or dependence. The United States Food and Drug Administration approved INTUNIV in September 2009, as a once-daily monotherapy treatment of ADHD in children and adolesce! nts aged ! 6 to 17. It is available in 1 milligram, 2 milligram, 3 milligram and 4 milligram tablets.

EQUASYM

Shire has acquired from UCB the worldwide rights (excluding the United States, Canada and Barbados) to EQUASYM (methylphenidate hydrochloride) IR and XL for the treatment of ADHD in children and adolescents aged 6 to 18. At December 31, 2012,EQUASYM XL was commercially available in 10 countries in 10mg, 20mg and 30mg strengths. EQUASYM XL is marketed in Mexico and South Korea under the trade name METADATE CD.

LIALDA/MEZAVANT

LIALDA is indicated for the induction ofmild to moderately active UC and for the maintenance of remission of UC. The addition of the indication for maintenance of remission of ulcerative colitis was approved by Health Canada in February 2011, and by the United States Food and Drug Administration in July 2011. LIALDA is once-daily oral formulation of mesalamine indicated for the induction and maintenance of remission. As of December 31, 2012, LIALDA/MEZAVANT (this product is marketed outside the United States as MEZAVANT) was commercially available in 19 countries either directly or through distributor arrangements.

PENTASA

PENTASA controlled release capsules are approved in the United States (marketed by Shire in the United States and by Ferring outside of the United States) and indicated for the induction of remission and for the treatment of patients with mild to moderately active ulcerative colitis. PENTASA is an ethylcellulose-coated, controlled release capsule formulation designed to release therapeutic quantities of mesalamine throughout the gastrointestinal tract. PENTASA is available in the United States in 250 milligram and 500 milligram capsules.

RESOLOR

RESOLOR (prucalopride), a 5-HT4 receptor agonists that stimulates gastrointestinal motility and acts primarily on different parts of the lower gastrointestinal tract (enterokinetic). In October 2009, RESOLOR was appr! oved by t! he EMA throughout the European Union as a once daily oral treatment for symptomatic treatment of chronic constipation in women in whom laxatives fail to provide adequate relief. In July 2010, Swissmedic granted RESOLOR marketing authorization in Switzerland for the treatment of idiopathic chronic constipation in adults. RESOLOR is available in milligram and 2 milligram dose strengths, both for once-daily dosing. At December 31, 2012, RESOLOR was available in six European Union countries. Formulated as a chewable tablet, FOSRENOL is available in 500 milligram, 750 milligram and 1,000 milligram dosage strengths.

XAGRID

XAGRID (anagrelide hydrochloride) is marketed in Europe for the reduction of elevated platelet counts in at-risk ET patients. XAGRID has been granted orphan drug status in the European Union. In the United States, anagrelide hydrochloride is sold by the Company under the name AGRYLIN for the treatment of thrombocythemia secondary to a MPD.

REPLAGAL

REPLAGAL is for the treatment of Fabry disease. Fabry disease is a genetic disorder resulting from a deficiency in the activity of the lysosomal enzyme alpha-galactosidase A, which is involved in the breakdown of fats. REPLAGAL is a human alpha-galactosidase A protein made in human cells that replaces the deficient alpha-galactosidase A with an active enzyme to ameliorate certain clinical manifestations of Fabry disease. At December 31, 2012, REPLAGAL was approved in 46 countries.

ELAPRASE

ELAPRASE is a treatment for Hunter syndrome (also known as Mucopolysaccharidosis Type II or MPS II). Hunter syndrome is a genetic disorder mainly affecting males that interferes with the body's ability to break down and recycle waste substances called mucopolysaccharides, also known as glycosaminoglycans (GAGs). ELAPRASE was approved by the United States Food and Drug Administration and granted marketing authorization by the EMA for the long term treatment of patients with Hunter ! syndrome.! ELAPRASE has been granted orphan drug by both the United States Food and Drug Administration and the EMA. ELAPRASE received approval from the Ministry of Health, Labour and Welfare in Japan. At December 31, 2012, ELAPRASE was approved in 51 countries.

VPRIV

VPRIV is a treatment for Type 1 Gaucher disease. Gaucher disease is an inherited genetic disorder, which results in a deficiency of the lysosomal enzyme beta-glucocerebrosidase. VPRIV was approved by the United States Food and Drug Administration in February 2010, for the long-term treatment of patients with Type 1 Gaucher disease. The EMA approved the marketing authorization for the use of VPRIV in August 2010. VPRIV was authorized as an orphan medicine through the Centralised Procedure in Europe. At December 31, 2012, VPRIV was approved in 38 countries.

FIRAZYR

FIRAZYR is a peptide-based therapeutic developed for the symptomatic treatment of acute attacks of HAE. In July 2008 the EMA granted marketing authorization throughout the European Union for the use of FIRAZYR for the symptomatic treatment of acute attacks of HAE, and in May 2011 approved FIRAZYR for self-administration after training in subcutaneous injection technique by a healthcare professional. In August 2011, the United States Food and Drug Administration granted marketing approval for FIRAZYR in the United States for treatment of acute attacks of HAE in adults aged 18 and older. After injection training, patients may self-administer FIRAZYR. FIRAZYR has been granted orphan drug by both the United States Food and Drug Administration and the EMA. At December 31, 2012, FIRAZYR was approved in 38 countries globally.

DERMAGRAFT

DERMAGRAFT is a bio-engineered skin substitute that assists in restoring damaged tissue. DERMAGRAFT is indicated for use in the treatment of full-thickness Diabetic foot ulcers (DFU) greater than six weeks in duration, which extend through the dermis, but without tendon, muscle, joint capsu! le, or bo! ne exposure. DERMAGRAFT is approved by the United States Food and Drug Administration as a Class III medical device for the treatment of DFUs. DERMAGRAFT is also approved for the treatment of DFUs in South Africa, Israel and Singapore.

The Company competes with Shionogi & Co., Ltd., Janssen-Cilag, Novartis, Medice, Eli Lilly, Warner Chilcott, Synergy Pharmaceuticals, Inc., ARYx Therapeutics, Theravance, Inc., Sucampo Pharmaceuticals, Inc., Albireo, Actelion Ltd., Protalix BioTherapeutics Inc, Genzyme, CSL Behring, Pharming Group N.V., ViroPharma, Dyax Corporation, Organogenesis, Healthpoint, Soluble System, KCI, Smith & Nephew, Aurobindo and Apotex.

Advisors' Opinion:

• [By Alexander Maxwell]

  The market for the treatment of chronic diabetic foot ulcers has been growing and larger companies have been taking notice. Many large pharmaceutical companies have their own treatments for chronic diabetic foot ulcers. The space has also caused some major acquisitions. In 2011, Shire� (NASDAQ: SHPG  ) acquired�a drug called Dermagraft for the treatment of slow-healing diabetic foot ulcers, through its $750 million acquisition of�Advanced BioHealing. Dermagraft has been a rather lucrative product for Shire, with $153.8 million in sales�last year. As the market continues to grow, I would look for more partnerships with large pharmaceutical companies, and of course more research and development dollars being devoted toward the chronic diabetic foot ulcers indication.

Top Rising Stocks To Invest In Right Now: Rio Tinto Plc(RIO)

Rio Tinto plc engages in finding, mining, and processing mineral resources. The company produces aluminum products, including bauxite, alumina, and aluminum; copper, gold, molybdenum, silver, and nickel; diamonds; minerals, such as borates, titanium dioxide feedstocks, high purity iron, metal powders, zircon, and rutile; thermal and coking coal, and uranium; and iron ore and salt. It primarily operates in Australia, North America, South America, Asia, Europe, and southern Africa. The company was founded in 1873 and is headquartered in London, the United Kingdom. Rio Tinto plc is a subsidiary of Rio Tinto Group.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Cliffs Natural Resources have dropped 2% to $13.86 at 10:17 a.m. today–and yes, the damage is specific to Cliffs.�Rio Tinto�(RIO) has dipped 0.1% $51.56 despite getting downgraded today, while BHP Billiton (BHP) has gained 0.9% to $67.37.

• [By Ben Levisohn]

  It’s been a bad day for iron miners like iron miners like BHP Billiton (BHP), Rio Tinto (RIO) and Vale (VALE) after Morgan Stanley cut its iron-ore price estimates. For Cliffs Natural Resources (CLF), the damage could be even worse.

• [By Ben Levisohn]

  Shares of Cliffs Natural Resources have fallen 2.7% to $18.59 at today at 3:42 p.m., while Rio Tinto (RIO) has fallen 3.6% to $53.36, BHP Billiton (BHP) has dropped 2.2% to $66.64 and Vale (VALE) has plunged 5% to $13.05.

• [By Brian Pacampara]

  So what: Unfortunately for Turquoise, and parent company Rio Tinto (NYSE: RIO  ) , the Mongolian parliament is currently in summer recess and the approval process will take plenty of time even after that, so all work on the underground development will be put on hold indefinitely. Given that Oyu Tolgoi is Turquoise's primary operation -- total capital invested in the mine to March 31 was about $6 billion -- the delay represents a huge setback for management and raises plenty of uncertainty for shareholders. �

Top Rising Stocks To Invest In Right Now: AECOM Technology Corp (ACM)

AECOM Technology Corporation (AECOM) is a provider of professional technical and management support services for commercial and government clients around the world. The Company provides planning, consulting, architectural and engineering design, and program and construction management services for a range of projects, including highways, airports, bridges, mass transit systems, government and commercial buildings, water and wastewater facilities, and power transmission and distribution. It also provides program and facilities management and maintenance, training, logistics and other support services, for agencies of the United States government. It offers services in two segments: Professional Technical Services and Management Support Services. In June 2011, the Company acquired Spectral Services Consultants Pte. Ltd.

Professional Technical Services (PTS)

The PTS segment delivers planning, consulting, architectural and engineering design, and program and construction management services to commercial and government clients worldwide in end markets, such as transportation, facilities, environmental, energy, water and government markets. It provides program management services through a joint venture for the Second Avenue subway line in New York City, design and contract administration services for the Hong Kong-Zhuhai-Macao Bridge's Hong Kong Boundary Crossing Facilities and engineering and environmental management services to support global energy infrastructure development for a number of petroleum and mining companies.

PTS segment contributed 86% of the Company�� revenue during the fiscal year ended September 30, 2011 (fiscal 2011).

Transit and rail projects include light rail, heavy rail (including high speed, commuter and freight) and multimodal transit projects. The Company provided engineering design services for the new World Trade Center Terminal for PATH and the Second Avenue Subway (8.5-mile rail route and 16 stations) in New York City, the Ma O! n Shan Rail (seven-mile elevated railway) in Hong Kong, and Crossrail (74-mile railway) in the United Kingdom. Marine, Ports and Harbors Projects include wharf facilities and container port facilities for private and public port operators. The Company provided marine design and engineering services for container facilities in Hong Kong, the Ports of Los Angeles, Long Beach, New York and New Jersey. Highways, Bridges and Tunnels Projects include interstate, primary and secondary urban and rural highway systems and bridge projects. Aviation Projects include landside terminal and airside facilities and runways as well as taxiways.

Government Projects include the Company�� emergency response services for the Department of Homeland Security, including the Federal Emergency Management Agency and engineering and program management services for agencies of the Department of Defense. It also provides architectural and engineering services for national laboratories, including the laboratories at Hanford, Washington and Los Alamos, New Mexico. Industrial Projects include industrial facilities for a variety of end markets, including manufacturing, distribution, aviation, aerospace, communications, media, pharmaceuticals, renewable energy, chemical, and food and beverage facilities. Urban Master Planning/Design Projects include design services, landscape architecture, general policy consulting and environmental planning projects for a variety of government, institutional and private sector clients. It provides strategic planning and master planning services for new cities and mixed use developments in the People�� republic of China, Southeast Asia, the Middle East, North Africa, the United Kingdom and the United States.

Commercial and Leisure Facilities Projects include corporate headquarters, high-rise office towers, historic buildings, hotels, leisure, sports and entertainment facilities, hospitals and healthcare facilities and corporate campuses. Institutional Projects include engin! eering se! rvices for college and university campuses, including the new Kennedy-King College in Chicago, Illinois. It has also undertaken assignments for Oxford University in the United Kingdom, Pomona College and Loyola Marymount University in California. Healthcare Projects include design services for the Mayo Clinic Gonda Building in Rochester, Minnesota, University Hospital in Dubai Healthcare City and the Samsung Cancer Center in Seoul, Korea. It has also undertaken assignments for the new Veterans Affairs Medical Center in Orlando, Florida, and the Minneapolis campus of Children's Hospitals and Clinics of Minnesota. Correctional Projects include the planning, design, and construction of detention and correction facilities throughout the world.

Water and Wastewater Projects include treatment facilities as well as supply, distribution and collection systems, stormwater management, desalinization, and other water re-use technologies for metropolitan governments. Environmental Management Projects include remediation, waste handling, testing and monitoring of environmental conditions and environmental construction management for private sector clients. Water Resources Projects include regional-scale floodplain mapping and analysis for public agencies, along with the analysis and development of protected groundwater resources for companies in the bottled water industry.

Demand Side Management Projects include energy efficient systems for public K-12 schools and universities, health care facilities, and courthouses and other public buildings, as well as energy conservation systems for utilities. Transmission and Distribution Projects include power stations and electric transmissions and distribution and co-generation systems, including enhanced electrical power generation in Stung Treng, Cambodia. These projects utilize a range of services that include consulting, forecasting and surveying to detailed engineering design and construction management. Alternative/Renewable Energy Projects ! include p! roduction facilities, such as ethanol plants, wind farms and micro hydropower and geothermal subsections of regional power grids. It provides site selection and permitting, engineering, procurement and construction management and related services. Hydropower/Dams Projects include hydroelectric power stations, dams, spillways, and flood control systems including the Song Ba Ha Hydropower Project in Vietnam, the Pine Brook Dam in Boulder County, Colorado and the Peribonka Hydroelectric Power Plant in Quebec, Canada. Solar Projects include performing environmental work for the solar photovoltaic Brockton Brightfield project in New England, and environmental permitting services for the California Energy Commission to permit the development of a 250 mega watts (MW) solar thermal power plant in the Mojave Desert of California.

Management Support Services (MSS).

The MSS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, for agencies of the United States government. It also provides organizational and limited direct support services for equipment sent to the United States Army's Corpus Christi Depot in Texas. The MSS segment contributed 14% of the Company�� fiscal 2011 revenue.

Installation, Operations and Maintenance Projects include Department of Defense and Department of Energy installations where the Company provides services for the operation and maintenance of complex government installations, including military bases, test ranges and equipment. It also provides services for the operations and maintenance of the Department of Energy's Nevada Test Site. Logistics and Field Services Projects include logistics support services for a number of Department of Defense agencies and defense contractors focused on developing and managing integrated supply and distribution networks. Training Projects include training applications in live, virtual and simulation training! environm! ents. Systems Support Projects cover a set of operational and support systems for the maintenance, operation and modernization of Department of Defense and Department of Energy installations. Its services in this area range from information technology and communications to life cycle optimization and engineering, including environmental management services.

Technical Personnel Placement Projects include the placement of personnel in functional areas of military and other government agencies, as these entities continue to outsource critical services to commercial entities. It provides systems, processes and personnel in support of the Department of Justice's management of forfeited assets recovered by law enforcement agencies. It also supports the Department of State in its enforcement programs by recruiting, training and supporting police officers for international and homeland security missions. Field Services Projects include maintaining, modifying and overhauling ground vehicles, armored carriers and associated support equipment both within and outside of the United States under contracts with the Department of Defense. It also maintains and repairs telecommunications systems for military and civilian entities.

Advisors' Opinion:

• [By Rich Smith]

  Continuing to laze its way through summer, the U.S. Department of Defense announced only nine mostly small new contracts Tuesday, totaling just a bit over $87 million in aggregate value. Winners today included:

Top Rising Stocks To Invest In Right Now: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Lawrence Meyers]

  That means you should go with either Altria Group (MO) or Philip Morris International (PM). And if you’re only interested in buying one, I think I�� select MO stock. It pays a slightly better divided (5.2% vs. 4.7%).

• [By Selena Maranjian]

  Other large-cap stocks didn't do quite so well over the last year but could see their fortunes change in years to come. Philip Morris International (NYSE: PM  ) , for example, gained 5% and yields 4.1%. With domestic tobacco companies challenged by tightening regulations, rising taxes, and a shrinking smoking base, many have assumed that Philip Morris is the best bet in tobacco. But in the third quarter, it posted the weakest results, with volume taking a sizable drop and a strong dollar reducing its earnings. Bulls like its innovation and share buybacks.

• [By Efficient Alpha]

  Philip Morris International (PM) is a favorite of mine, not only for its 4% dividend but also for its protection against global inflationary pressures. The company can pass through higher commodity prices and smokers will keep coming back for more. The company has 16% of the international market and is making strong progress in China. Asia accounts for 36% of sales, followed by the EMEA region (27%), the EU (26%) and Latin America/Canada (11%). Shares have posted an annual return of 15% since its spinoff in 2008.

• [By Ben Levisohn]

  Shares of Phillip Morris (PM) have been performing about as well as a soggy cigarette–but Morgan Stanley still hopes they will catch fire.

  Agence France-Presse/Getty Images

  How bad has performance of Phillip Morris been? Its shares have dropped 1.9% during the past 12 months, while American-focused Altria Group (MO) has gained 15%. British American Tobacco (BTI) has gained 3%, Reynolds American (RAI) has advanced 14%, and Lorillard (LO) has jumped 26%.

  And now Morgan Stanley’s David Adelman and team have cut their earnings-per-share forecast for Phillip Morris by 11 cents thanks to the strong dollar, after cutting it by 41 cents six weeks ago. Adelman explains why:

  While PM�� significant EM exposure has been an important driver of its 8%+ constant-currency 2008-2013 EBIT CAGR, recent weakness in a number of important EM currencies (e.g., Argentina, Turkey and Indonesia) will undoubtedly weigh on 2014 reported results. Further, it remains somewhat unclear the extent to which added Yen weakness will impact results, as PM�� F/X guidance already suggests that it was somewhat hedged on USD/Yen. Finally, with ~60% of its operating expenses denominated in ��ard dollar��currencies (USD, EUR and CHF), we have also incorporated a significant estimated transactional F/X impact (+40% of our $0.52/share est.).

  Still, Adelman kept Phillip Morris rated Overweight. He explains why:

  Remain OW, as stock should benefit from recent weakness and achievable 2014 targets: After underperforming US Tobacco and Staples by 18% and 24%, respectively, in 2013, and with expectations already lowered to a conservative level of 6-8% currency-neutral underlying EPS growth in 2014, we believe current valuation of ~14.5x 2015e P/E and <10x EV/EBITDA remains attractive. We continue to view local-currency earnings risk as to the upside, particularly as no new issues have appeared to emerge entering 2014 (such as unforeseen outsized excise

Top Rising Stocks To Invest In Right Now: Axcelis Technologies Inc.(ACLS)

Axcelis Technologies, Inc., together with its subsidiaries, designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and the Asia Pacific. It offers a line of high energy, high current, and medium current ion implanters for various applications, such as line of single wafer implanters, known as the Optima platform, comprising the Optima XE, the Optima HD, and the Optima MD. The company also offers dry strip tools, including the Integra RS, which comprises paired-chamber process modules. In addition, it provides aftermarket services and support, such as spare parts, equipment upgrades, maintenance services, and customer training. The company sells its equipment and services through direct sales force, distributors, and manufacturing representatives. Axcelis Technologies was founded in 1995 and is headquartered in Beverly, Massachusetts.

Advisors' Opinion:

• [By Stephen Simpson, CFA]

  The major dry strip product today is Suprema - Mattson's most advanced tool, and one that uses inductively coupled plasma (ICP) technology and vacuum transfer. Two of the company's primary competitors use one but not the other, while the third uses both but charges about 20% more for its tools. According to Gartner, Mattson holds about 22% market share in this roughly $180 million/year market, with Lam Research (which acquired Novellus and dry strip IP from Axcelis (ACLS)) and PSK as the primary competitors.

• [By Ben Axler]

  An old spin-out of Eaton Corp. (ETN), Axcelis Technologies (ACLS) designs, manufactures and services ion implantation, dry strip and other processing equipment used in the fabrication of semiconductor chips. The semiconductor capital equipment industry is very cyclical, and as a smaller player in the industry, ACLS has not been immune, and gone through protracted periods of losses. In the past few years, the company has taken numerous steps to reposition itself for the next cyclical upswing by listening to its customers and investing heavily in R&D to revamp its product line to expand its addressable market opportunity, right-sizing its cost structure to substantially lower its breakeven level, establishing new collaborative partnerships, and optimizing its balance sheet to unlock value. Now with signs of a cyclical upswing occurring, and being led by memory - Micron (MU) and SanDisk (SNDK), ACLS is poised for accelerating earnings potential beginning in Q4'2013 that could drive its stock price substantially higher. However, with a few nearer-term catalysts on the horizon, investors may not want to wait too long before purchasing shares. As an early indicator, investors should consider that insiders recently purchased the stock in the open market in August at current levels. These stock purchases coincide with the one year anniversary of ACLS's new Purion M product line entering an evaluation period with a major customer. Sell-side analysts are starting to take notice and listening in to the company's recent conference call, which at least opens the door to new broker initiations in the future. The downside risk appears mitigated by ACLS's strengthened balance sheet, and dramatically improved operating financial model that has stemmed further cash burn. As the company hits an inflection point with new customer contracts and proves its earnings cycle is under way, we expect ACLS's valuation discount to peers to narrow and the stock to appreciate substantially