H-P jumps 9%, Apple gains ground, Nuance rebounds

NEW YORK (MarketWatch) — Hewlett Packard Co. was the biggest gainer in the S&P 500 Wednesday after the computer maker's earnings topped Wall Street expectations. Apple Inc. and J.C. Penney & Co. were also on the move.

Flickr/Bllq21 Enlarge Image Apple shares hit their highest level in nearly a year Tuesday. Gainers

H-P (HPQ)  shares rose 9.1%, marking its best day since May 23. The company said it earned $1.41 billion in the fourth quarter, or 73 cents a share, after losing $6.85 billion, or $3.49 a share, a year earlier. Adjusted profit of $1.01 per share beat analyst estimates of $1 per share, according to a Thomson Reuters survey. But revenue declined 2.8% to $29.13 billion, with sales slipping in nearly all business segments. Read more about what's boosting H-P.

J. C. Penney Co. Inc. (JCP)  shares jumped 7.7%. The retailer, which will leave the S&P 500 after trading closes on Friday, has seen its shares rise this week and said it expects sales to rise during the holiday season.

Shares of Compuware Corp. (CPWR)  climbed 1.9%. The Financial Times reported that private equity investors were considering making a bid for the software company, citing anonymous sources.

Crocs Inc. (CROX)  rose 2.2%. The shoe company was said to be in discussions with buyout firms, including Blackstone Group LP, according to Bloomberg, which cited anonymous sources. The talks appeared to be focused on the firm taking a minority stake in Crocs via which Blackstone could help map out a turnaround strategy.

Click to Play EBay president dials profits with mobile devices

For e-commerce retailers like eBay, the new motto could be adapt to mobile or die. EBay Marketplaces President Devin Wenig tells Deborah Kan why mobile phones are the company's key to bigger profits.

Decliners

Analog Devices Inc. (ADI)  sank nearly 3%. The semiconductor firm reported late Tuesday fourth-quarter adjusted earnings of 62 cents a share and sales of $678 million, with sales missing analyst expectations.

Newfield Exploration Co. (NFX)  shares shed 4.1%, along with other energy stocks.

Infoblox Inc. (BLOX)  skidded nearly 29%. The firm warned late Tuesday that its full-year 2013 revenue could come in below Wall Street expectations. The company projected sales of $270 million, compared to estimates of $276.9 million, according to FactSet.

Top Tickers Trending

$AAPL Investors were on alert for movements in the price of Apple Inc. (AAPL) . Shares closed up 2.4%, the third straight day of gains, for the highest close since Jan. 2.

$NUAN Nuance Communications Inc. (NUAN)  shares were up 2.3%, a day after they plunged 18% on disappointing earnings, which had tripped a short-sale circuit breaker. Activist investor Carl Icahn owns stock in the company.

Indian Gold Buyers Listen to America's Central Banker Rather Than Their Finance Minister

For almost two years, P. Chidambaram, the Finance Minister of India, has done much to make gold as unappealing as possible to buyers in his country. Speeches have been given. Tariffs have been raised. But purchasing by Indians continues at a pace to set a record next year for gold.

That is very bullish for companies in the gold sector such as Barrick Gold (NYSE: ABX), Goldcorp (NYSE: GG), Wishbone Gold (OTC: WISHY) and Yamana Gold (NYSE: AUY).

Overall, Indian imports of gold are expected to reach 350–400 tons for the April to June 2013 period, according to Sharps Pixley, a broker in London. That is 200 percent higher than a year ago. For 2013, Sharps Pixley predicts that the demand for gold in India will reach a record 1,000 tons.

While the Indian Finance Minister has been making the case against gold, America's next central banker just made a strong case for it.

In testimony before Congress, Dr. Janet Yellen, the nominee to be the next Chair of the Federal Reserve, endorsed the continuation of Quantitative Easing III. That is a policy designed to keep interest rates low by having the Federal Reserve acquire $85 billion monthly in Treasury securities and mortgage-backed bonds through expanding its balance sheet.

Related: 3 Stocks to Profit from Emerging Consumer Markets

That should result in higher inflation in the future, as trillions in Greenbacks are being created without being backed by economic growth, as previously detailed.

When that happens, gold should rise in value.

Historically, gold rises in value along with inflation. Investors flee paper money for hard assets such as precious metals. From that, the price of gold and the shares of Barrick Gold, Wishbone Gold, Yamana Gold, Goldcorp and the exchange-traded fund for gold, SPDR Gold Shares (NYSE: GLD) should all rise.

That has not happened in 2013, however.

For the year, SPDR gold shares have fallen more than 20 percent. But there is good news in the sector.

Barrick Gold is rumored to be the target of activist investors, according to an article in Barron's. Wishbone Gold just reported positive results for its holdings in Australia. Both China and India, the world's two largest consumers of gold, are buying. That and more inflation should lead to higher prices in the future for gold.

Posted-In: P. Chidambaram Sharps PixleyLong Ideas Sector ETFs Emerging Markets Commodities Federal Reserve Markets Trading Ideas ETFs Best of Benzinga

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

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Beer Man: Rogue delivers fine doughnut-inspired…

Beer Man is a weekly profile of beers from across the country and around the world.

This week: Voodoo Doughnut

Rogue Ales, Newport, Ore.

www.rogue.com

My first thought upon seeing Voodoo Doughnut on the shelf of my local liquor store was, "So Pepto-Bismol is now in the beer business?"

The bright pink 750 ml bottle certainly stands out among its competition. Its makeup is also unique — a chocolate, peanut butter and banana ale.

I expected an overly sweet, candy bar-type beer, but I should have had more faith in Rogue, which consistently produces fine beers.

The chocolate was more in line with what you might find in many dark ales — more of a chocolate grain flavor than chocolate candy. The banana was prominent, producing bubble gum esters and flavors you might find in many Belgian ales. The peanut butter was more noticeable in the aroma than the taste, where it showed up more in the mouthfeel than as a nutty taste.

As someone who regularly eats peanut butter, banana and jelly sandwiches, I would have liked a bit more peanut butter flavor in the ale. I can see where that might be tricky, however; possibly adding too thick of a mouthfeel to the beer.

Sweetness is minimal in the 5.3% ABV ale, and there was a slightly bitter hop bite and roasted malt throughout. The strong banana character will probably make or break this beer depending on the individual. If you like Well's Banana Bread Beer from England, this will probably be up your alley.

Voodoo Doughnut is a doughnut chain in Oregon with three locations and provides the namesake for the Rogue beer. The chain's signature pink boxes are the reason for the color of the ale bottle. Its Bacon Maple doughnut is also the basis for another Voodoo Doughnut ale from Rogue.

Rogue beers are sold in all 50 states, but Rogue also gives the option of ordering online from its website. It cannot mail order to Massachusetts, North Dakota, Texas or Utah.

Someone 21 years or older must be available! upon delivery to sign for the shipment; packages cannot be left without this verification.

——

Many beers are available only regionally. Check the brewer's website, which often contains information on product availability. Contact Todd Haefer at beerman@postcrescent.com. To read previous Beer Man columns Click here.

Potash Corp: Two Analysts, Two Very Different Opinions

If you were playing potash stocks in 2013, you ended up paying for it.

Reuters

Potash Corp of Saskatchewan (POT), for instance, lost 16% last year, while Mosaic (MOS) dropped 15%, Intrepid Potash (IPI) plunged 26% and Agrium (AGU) declined 5.9%.

Will 2014 be better? Raymond James’ Steve Hansen and Daniel Chew think so. They upgraded shares of Potash Corp of Saskatchewan (POT) to Outperform from Market Perform as potash prices seem to have settled. Hansen and Chew explain:

We are increasing our target price to US$37.00 (vs. US$30.00 previously) and raising our rating…based upon our view that the most ominous clouds overhanging the potash sector are beginning to lift—even though the outlook remains opaque and any 'recovery process' is likely to be slow, in our view…

Last week both Canpotex and Uralkali both announced 700k mt 1H14 supply contracts to China. While Canpotex pricing was not disclosed, we presume it landed in-line with Uralkali's $305/mt settlement. Importantly, we believe most industry stakeholders will regard these contracts as the new global 'floor price'. Meanwhile, recent developments suggest that [Uralkali] and Belaruskali seem intent on repairing their former marketing relationship—even if puzzling contradictions remain outstanding.

Barclays’ Matthew Korn and Kimberly Teller aren’t so sure. They write:

Valuation multiples of potash producers [Potash, Mosaic, and Intrepid Potash] appear to be pricing in anticipation that volumes and prices are likely to improve after the recent $305/tonne "floor" set by the Uralkali/China contract. We remain more skeptical until we see more tangible evidence that the need for restocking plus price actual elasticity will lead to a more than just a bounce back to prior demand levels.

Korn and Teller downgraded Mosaic to Equal Weight from Overweight, but expect CF Industries (CF), Agrium and Bunge (BG) to do well in 2014, despite no obvious catalysts.

Shares of Potash have gained 1.1% to $32.10 today at 3:32 p.m., while Mosaic has dropped 1.3% to $44.80, Intrepid Potash has declined 1.5% to $15.64, Agrium is off 0.9% at $88.42 and Bunge has slid 0.6% to $77.16. CF Industries has risen 0.4% to $233.50.

Stocks Hitting 52-Week Lows

YuMe (NYSE: YUME) shares fell 22.98% to reach a new 52-week low of $6.00. YuMe's trailing-twelve-month profit margin is 2.42%.

Mack-Cali Realty (NYSE: CLI) shares reached a new 52-week low of $19.12. Mack-Cali's PEG ratio is -2.63.

Rocket Fuel (NASDAQ: FUEL) shares dipped 11.85% to touch a new 52-week low of $41.74 on Q3 results.

American Superconductor (NASDAQ: AMSC) shares touched a new 52-week low of $1.89. American Superconductor shares have dropped 39.25% over the past 52 weeks, while the S&P 500 index has gained 26.62% in the same period.

Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

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

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular Did Twitter Make a Huge Mistake Pricing Shares at $26? Groupon Earnings Preview: In-Line Results Expected, US Booking Progress 3 Reasons to be Bullish about Gold Why an Apple iWatch Has Better Chances Than Google Glass Twitter Prices at $26; First Day's Trading Could Be Volatile Microsoft COO Another Internal Candidate for the Company's CEO Related Articles (AMSC + CLI) Stocks Hitting 52-Week Lows View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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Being a Music Streaming Service Is No Big Deal -- Nor an Easy Win

NEW YORK (TheStreet) -- Before investors start humming a happy streaming-music tune for Pandora (P), Spotify and music subscriptions services coming soon from Apple (AAPL), Google (GOOG) and even Beats by Dre, they may want to take a long, hard listen to Ben Drury.

"Online music is an exciting business," Drury explained to me over the phone from London. "But it's also a hard, low-margin business."

Investors should realize that Drury is not some Web music wannabe. He's co-founder and CEO of 7digital, one of the world's largest open-source music software providers. His 110-person shop, which he says has revenues in the "low tens of millions," provides so-called white-label streaming, download and other music services to Fortune 1,000 companies around the globe, including Samsung, BlackBerry (RIMM) and dozens of others.

"If Samsung wants a music service on their devices, for example," he said, "We help them manage the licensing and technical infrastructure." What makes Drury a music investor rock star is his blessed candor about the hard-knuckle realities of getting paid in today's crowded and competitive online music world. Drury points out that the days of artists having little control over their content, in the face of 90's-era sharing services such as Napster, are long over. Today's Digital Age musician is savvy, legally armed and keen to make up for lost royalties and publishing fees in the face of collapsing compact disc sales. "Rights holders have monopolies on their catalogs and they work very hard to control the market," he said. He dramatically paints the firsthand picture of how effectively artists can maximize return by exploiting a newly dynamic online music business. "iTunes used to be the dominant digital player," he said. Now Pandora, Spotify, Deezer, SiriusXM (SIRI) and many other companies each do music, although in subtly different ways that creates leverage for content creators. Also see: #DigitalSkeptic: Investor Sees Pandora as Dumbest Way to Double Your Money>> "That makes the market very tricky, challenging and expensive," he said. He estimates that a $30 million bankroll is needed merely to cover the licensing fees for even a basic online music service. "And for that you haven't even solved one technical problem," he said.

The 70/30 online music rule What's shocking about spending any time talking with Drury is just how low-margin the modern music business has become. Though expenses can vary dramatically by geographic location, artist and musical genre, the basic rule is that 70 cents of each sales dollar flies right out the door to cover the cost of music publishing rights and artist royalties.

"There are real nuances to how that split works," he said. "But basically, you are looking at a round number 70/30 economics for digital music, with streaming companies being on the wrong side of that split."

Then the real costs start: Streaming music firms face significant management expenses to administer royalties and publishing. "In some Western European countries and in Canada, there is a limited number of collecting societies," he said. But in America, he says, there are hundreds of entities that collect royalties, each with the legal power to drag an infringing music service into court. Also see: The Digital Skeptic: Tommy Boy Has Happy Tune for Music Industry>>

"There are enormous costs to administer these license frameworks," he said. Next, companies face dramatic costs for technology that tends to reinvent itself every few years. "I worked in this business since the late '90s, and the technology involved never seems to stop changing," he said. There are bandwidth costs and legal fees. And that does not cover the cost of branding and marketing. "Figuring out to communicate with consumers is expensive," he said. Squaring the circle that is online music Even more stunning is how basic questions such as the overall size, growth rate and fundamental profitability of the global music business are still very much an arrangement in progress. "The lucrative CD era was a bubble," he said. "It was a long ride, but it's over." And the assumptions for how much the world will spend on music are subject to intense debate. "There are optimists who say we are at the beginning of a new boom in sales," he said. "And music is truly global. But it is still to be worked out how much customers are willing to pay for music." Tellingly, Drury chose not to comment on my question about what it feels like to run a business that in many ways is bigger than Pandora and Spotify -- which, by some measures, have a combined value of nearly $10 billion -- but is valued at far less. Rather, he said the world he operates in works another more subtle way: "We are trying to square the circle when it comes to finding return in the music business."

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Market Roundup: Stocks Rise For Second Week, Fed Meeting Looms

Major indexes scored their second week of gains Friday, rebounding from Thursday's slump.

The Dow Jones Industrial Average gained 75.42 points, or 0.5%, to 15,376.06 and is up 3% for the week, its best week since January 4.

The Nasdaq rose 6.22 points, or 0.2%, to 3,722.18, and is up 1.7% for the week.

The S&P 500 climbed 4.57 points, or 0.3% to 1,687.99, and is up 2% for the week.

Although retails sales and wholesale price data came out this morning, investors are of course mostly looking toward what the Federal Reserve will do at its meeting on Wednesday. Goldman Sachs expects a "dovish" taper, skimming $10 billion off the top of the $85 billion per month bond buying program. The Wall Street Journal's Jon Hilsenrath says that it's a close call (video).

In company specific news, Tesla (TSLA) reversed earlier losses to rise 0.4%; Elon Musk remarked Thursday evening about those “crazy” short sellers while J.C. Penney (JCP) ended down 0.7% after news that VNO CEO Steven Roth is leaving its board.

Chevron (CVX) gave up some earlier gains to end up 0.2%; the company reached a settlement with the Brazilian government regarding a $20 billion lawsuit stemming from a 2011 offshore oil spill.

In athletic apparel, lululemon (LULU) gained 4.7% and Under Armour (UA) lost 2.6% as Credit Suisse upgraded the former and downgraded the latter.

Disney (DIS) also ended strong, building on yesterday's gains on news it will meaningfully increase its share repurchase plan.

Dow Sheds 175 Points as China Fears Rock Stocks

A week of calm turned stormy for the major stock indexes, as American Express (AXP), Boeing (BA), Visa (V), Noble Corp. (NE) and Johnson Controls (JCI) tumbled.

Associated Press

The Dow Jones Industrial Average dropped 175.99 points, or 1.1%, to 16,197.35 today while the S&P 500 fell 0.9% to 1,828.46. American Express fell 2.2% to $89.17, Boeing declined 2.1% to $141.31 after it said it was hiring more workers in South Carolina, and Visa dropped 2% to $228.25 after Nieman Marcus said 1.1 million credit cards be at risk from a “malware” attack. Noble Corp. has fell 8.6% to $33.13 after it met earnings forecasts but said that there could be a pause in offshore activity, while Johnson Controls has dropped 4.4% to $49.30 after it offered lower earnings guidance.

Initial jobless claims rose to 326,000 today, but if you’re looking for  reason for the selling, how about taking a look at China? The Lindsey Group’s Peter Boockvar explains what happened:

The mood of the market changed at 8:45 est time last night after China's HSBC preliminary January manufacturing PMI fell below 50 to 49.6, a 6 month low from 50.5. The estimate was 50.3 and saw declines in new orders, exports, employment and backlogs. In addition to a drop in the Shanghai index in response, Hong Kong, Japan, Australia, Taiwan, South Korea, Singapore and Malaysia all closed lower. While there is a lot of optimism for global growth in 2014, the picture still looks muddied, especially in emerging markets which is where the real growth alpha has come from.

The upshot: No China, no global synchronized recovery. And if there’s no global recovery, investors have to wonder whether the U.S. can continue to do much of the heavy lifting on its own.

The answer today: No.

Goldman Sachs Really Doesn’t Like Potash Stocks

Goldman Sachs does not like potash stocks. Not at all. Especially not Mosaic (MOS), which it downgraded in a report dated yesterday.

Reuters

Goldman’s Adam Samuelson and team explain why investors shouldn’t mistake a “potash floor for a long-term recovery:”

We maintain our Cautious coverage view of Fertilizers, with 5% downside on average to our revised 12-month price targets. Despite recent signs of a price floor emerging, Potash (K) fundamentals remain challenged, in our view, given sustained global over-supply that lead our price forecasts to stay well below 2010-2012 over our forecast period…We downgrade shares of Mosaic to Sell, with 13% downside to our revised 12-month target, as we see an unfavorable risk/reward with shares only 8% below July 2013 levels despite a significantly less favorable K price outlook given our s/d forecasts. We also reiterate our Sell rating on [Intrepid Potash (IPI)], where we continue to see limited FCF generation in 2014- 2016 given our NA K price outlook, even giving [Intrepid Potash] credit for recent cost cutting.

Which of course begs the question: Why didn’t Samuelson cut Potash (POT)? He has an answer:

We downgrade [Mosaic] to Sell but keep [Potash] at Neutral given (1) greater valuation support at POT given its 4.1% dividend yield, which we view as sustainable given our pricing/cash flow forecasts, which we also believe is a key appeal for [Potash's] large Canadian institutional holders, (2) a more favorable cost outlook at  [Potash] following recent headcount reductions, which should help the company improve utilization at lower-cost facilities (e.g., Rocanville), and (3) earnings ballast from a less negative near-term [Neutral] outlook at [Potash]. That said, our revised $32, 12-month price target for  [Potash] still implies 5% downside and our core K industry view is that both companies will be significantly impacted.

Shares of Mosaic have dropped 1.2% to $47.72 at 3:08 p.m., while Intrepid Potash has fallen 1.2% to $16.35 and Potash has declined 1.4% to $33.26.

Treasury moves up debt limit warning

WASHINGTON -- Treasury Secretary Jacob Lew has been warning for weeks that the government will run out of the ability to borrow money sooner or later if Congress doesn't raise the debt limit.

Wednesday, he said, it will probably be more sooner than later.

Lew previously said that Treasury could run out of money to pay its bills by "late February or early March." But in a letter Wednesday to House Speaker John Boehner, R-Ohio, Lew said it will probably be on the earlier end of that range. "Based on our best and most recent information, we believe that Treasury is more likely to exhaust those measures in late February," Lew said.

The bipartisan deal that ended the 16-day government shutdown last November also suspended the debt limit until Feb. 7. After that date, Lew said, the Treasury Department can use what it calls "extraordinary measures" to avoid having to borrow more money.

But Treasury won't have as much maneuvering room as it usually does. One reason: February is a big month for Treasury payments because of tax refunds. The government usually has a negative net cash flow of $45 billion a month; last February, it was $230 billion.

The national debt subject to the debt limit is now more than $17 trillion.

Boehner said last week that the debt limit is on the agenda when the House reconvenes next Monday, but he wouldn't commit to a specific plan or legislative vehicle for an increase.

"All I know is that we should not default on our debt," Boehner said. "We shouldn't even get close to it."

Follow @gregorykorte on Twitter.

Top 5 Dividend Stocks For 2014

Pengrowth Energy (NYSE: PGH  ) will release its quarterly report on Thursday, and with shares having climbed recently, investors seem to be expecting good things from the company. Yet Pengrowth earnings expectations don't appear to be behind the jump in the stock lately, with some one-time events drawing the bulk of investor attention instead.

As a former Canadian royalty trust, Pengrowth had to transform itself into a corporation to comply with tax law changes. Despite being a generous source of dividends, the stock has seen its price perform very badly over the past couple of years. What's behind the company's weak results? Let's take an early look at what's been happening with Pengrowth Energy over the past quarter and what we're likely to see in its quarterly report.

Stats on Pengrowth Energy

Analyst EPS Estimate

$0.03

Top 5 Dividend Stocks For 2014: Kohlberg Capital Corporation(KCAP)

Kohlberg Capital Corporation is a private equity and venture capital firm specializing in buyouts and mezzanine investments. It focuses on mature and middle market companies. The firm structures its investments through senior debt, second lien debt, secured and unsecured subordinated debt, mezzanine debt, and equity. It invests in all sectors except cyclical industries. The firm invests equity in both minority and control transactions alongside other equity investors. It invests through its own balance sheet. Kohlberg Capital Corporation is based in the New York, New York.

Top 5 Dividend Stocks For 2014: Sysco Corporation(SYY)

Sysco Corporation, through its subsidiaries, distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. The company offers a line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats, custom-cut fresh steaks, other meat, seafood, and poultry; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products, such as disposable napkins, plates, and cups; tableware, which include china and silverware; cookware comprising pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. In addition, the company offers personal care guest amenities, equipment, housekeeping supplies, room accessories, and textiles to the lodging industry. It serves restaurants, hospitals and nursing homes, schools and colleges, hotels and mote ls, lodging establishments, and other foodservice customers. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Rich Smith]

  The Department of Defense ended the week with a bang (if you'll pardon the expression) Friday. Across a field of 26 contracts awarded, the Pentagon laid out plans to spend nearly $2.5 billion in total. A few of the publicly traded companies winning awards included:

• [By Rich Smith]

  The Department of Defense awarded a dozen separate contracts today, worth $949.1 million in aggregate. Nearly half the dollar value was accounted for by a single contract let out for environmental remediation services in New Jersey. But even so, several companies managed to win sizable contracts of their own, including:

• [By Shauna O'Brien]

  Shares of SYSCO Corporation (SYY) were up over 29% on Monday morning after the company announced that it has agreed to acquire US Foods.

  Sysco will acquire US Foods for a total of $3.5 billion. The deal also include Sysco assuming or refinancing US Food’s net debt, which is approximately $4.7 billion. The total enterprise value of this deal will be $8.2 billion.

  The deal will result in equity holders of US Foods owning 87 million shares, or 13%, of SYY. The acquisition is expected to close in the third quarter of 2014. The combined company will be run by SYY’s president and CEO Bill DeLaney.

  DeLaney commented: “As we continue on our transformational journey at Sysco, this transaction will position us to significantly accelerate our progress in achieving the vision we have for our company: to be our customers’ most valued and trusted business partner. Sysco and US Foods have highly complementary core strengths including a broad product portfolio and passionate food people deeply committed to customer service, quality-assured products and safety. In particular we look forward to welcoming US Foods’ talented employees and continuing to invest in the development of all of our people. Together we will strive to enhance shareholder value by providing our customers with highly differentiated products and services.”

  SYSCO shares were up $10.19, or 29.70%, during pre-market trading Monday. The stock is up 8% YTD.

• [By Jacob Roche]

  Still, even a crushing fourth-quarter miss would give United Natural some growth for the year. That's more than can be said for the company's conventional counterparts. Safeway (NYSE: SWY  ) is estimating essentially flat sales growth, and analysts estimate that Sysco (NYSE: SYY  ) , the world's largest food distributor, will see an actual drop in sales this year.

Top 10 Performing Stocks To Buy Right Now: Avon Products Inc. (AVP)

Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.

Advisors' Opinion:

• [By Sean Williams]

  Finally, beauty products maker Avon Products (NYSE: AVP  ) gained 4.1% after also reporting its first-quarter results. Total revenue dipped 4% for the quarter, but was hurt primarily by unfavorable currency translation. Volume dropped 3%, but was countered by a 3% jump in prices. The Street might appear pleased with Avon's stabilizing business, but I continue to see its volume declines and high representative turnover as discouraging. Price hikes seem to be the only way Avon can stabilize its domestic and overseas business, and that's a recipe that I'm fairly certain will lead to lost customers.

Top 5 Dividend Stocks For 2014: Grupo Radio Centro S.A. de C.V.(RC)

Grupo Radio Centro, S.A.B. de C.V., a radio broadcasting company, through its subsidiaries, engages in the production and broadcasting of music, entertainment, news, and special event programs in Mexico. The company owns and operates 15 radio stations, which comprise 5 AM and 6 FM stations in Mexico City, 2 AM stations in Guadalajara and Monterrey, and 1 FM station in Los Angeles, as well as 1 AM radio station in Mexico City that is operated and managed by a third party. It also operates Organizaci

Top 5 Dividend Stocks For 2014: United Parcel Service Inc.(UPS)

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By Tracey Ryniec , Zacks Investment Research]

  On Dec 26, Amazon announced that a million new customers had signed up for Amazon Prime, the annual membership program that offers unlimited 2-day shipping on millions of items, in the third week of December alone. It is widely believed that all the new Prime members contributed to the surge in last minute package deliveries that caused a back up at UPS (UPS) just before Christmas day.

• [By Devin DeCiantis]

  To put this opportunity in perspective, there are a limited number of distribution channels for getting finished goods to your doorstep at scale:

  US Postal Service: Slowest and cheapest form of delivery; Amazon will inevitably be a major player in any USPS turnaroundNational Courier: FedEx (FDX) and UPS (UPS) are both natural partners, but also natural competitors"Last Mile" Delivery: AmazonFresh is already taking aim at hyper-local distributionNewspaper / Flyer Delivery: Earliest daily delivery available with full municipal/suburban coverage

  Amazon is already strategically engaged in the first three distribution channels, and the fourth could be a natural complement to the nascent AmazonFresh platform. Think about how underutilized the trucks are once they've run their morning delivery. In a recent interview with Wired, Bezos admitted that "AmazonFresh is actually a Trojan horse. It's not about winning in grocery services. It's about dominating the market in same-day deliveries." Newspapers could seem like a natural fit, and where better to test that commercial hypothesis than in the nation's capital.

Down and Out in Memphis; Movin’ On Up in Salt Lake City

Location, location, location, goes the old adage—usually indicating that the geography of the pricey real estate you are considering buying justifies its expense.

But a comprehensive new Harvard-Berkeley study suggests that location may be even more important to the poor if they are to have a crack at rising to the middle class or beyond.

To put it simply, geography is destiny when it comes to social mobility—more so at least than tax credits for the poor, heavy taxation of the rich, the presence of universities, affordability of tuition or proximity to extreme wealth.

The researchers found that proximity to middle-class areas in particular made intergenerational upward mobility likelier; a strong K-12 school system, higher test scores and lower dropout rates also helped; and, “some of the strongest predictors of upward mobility are correlates of social capital and family structure. For instance, high upward mobility areas tended to have higher fractions of religious individuals and fewer children raised by single parents,” the study found.

In its Monday edition, The New York Times assembled the researchers’ data to create an interactive map that shows where the poorest Americans have the greatest shot at upward mobility and where they remain most stratified.

Among large American cities, a child raised in the bottom fifth in family income had the greatest chance of rising to the top fifth in Salt Lake City (11.5%), Seattle (10.4%) and Pittsburgh (10.3%). Mobility was also present in some of America’s largest metropolises such as Boston (9.8%), New York (9.7%) and Los Angeles (9.6%).

Mobility opportunities were smallest in cities of the South and industrial Midwest such as Memphis (2.6%), Atlanta (4%), Charlotte, N.C. (4.3%), Indianapolis (4.8%), Detroit (5.1%) and Columbus, Ohio (5.1%).

Apart from major cities, some of the most radically upwardly mobile areas are seen in North Dakota, such as Williston (33.1%), center of that state’s shale boom. The most radically stratified non-urban areas are scattered through the Deep South and in remotest Alaska, such as Nome (2.2%).

Using the Times’ interactive data, one can see that a child who grows up in Chicago in the 10th percentile in family income ends up on average in the 34th percentile in income, lower than someone in Dallas (35th percentile), Los Angeles (40th) or Williston, N.D. (59th)—but a better average outcome than a child from Memphis (28th), Cincinnati (32nd) or Baltimore (33rd).

The researchers emphasize that their data are correlational rather than causal.

“What is clear from this research is that there is substantial variation in the United States in the prospects for escaping poverty. There are some areas in the U.S. where a child’s chances of success do not depend heavily on his or her parents’ income. Understanding the features of these areas—and how we can improve mobility in areas that currently have lower rates of mobility—is an important question for future research that we and other social scientists are exploring,” the researchers state.

---

Check out 10 Best Cities for Job Seekers on ThinkAdvisor.

4 Things Your Teen Needs to Know About Debt

Getty Images It's been almost 10 years since I donned my bright red cap and gown, graduated from high school and forever put behind me the days of being a "Huskie" -- which, like any other self-conscious teenage girl, I was grateful for. I thought I was ready for college, but there was one thing I was lacking -- financial know-how. And my lack of financial acumen led to a long list of financial mistakes. The problem is that within five years of leaving home, most teens are faced with the decision of taking out student loans, buying a car, signing up for credit cards or even taking out a mortgage. And it's up to parents to instill some wisdom in those bright-eyed, bushy-tailed youths before they learn it the hard way. Your teens shouldn't be burdened with your financial stress, and they definitely don't need to know all of your misdeeds. But they should know the basics of the common financial situations they're soon to encounter. Whether you've done right with your money, made a boatload of financial snafus, or a little bit of both, here are some worthwhile discussions to have with your kids: Student Loans: While student loans are oftentimes a necessary debt, they're still money owed to someone else. And unlike many other forms of debt, this one cannot be discharged in a bankruptcy. If you had student loans, you can help your teens by telling them how long it took you to pay them down, as well as what you had to sacrifice along the way. Car Ownership: If you don't have a car loan, you should let your teenager know your motives for paying in cash or your journey in paying down your car. If you do have a car loan, it might be helpful to explain that it's more than just a monthly payment. Sit down and run the numbers with them, demonstrating the money lost to interest. And it just might be the extra motivation you need to pay it off for good. Credit Cards: If your 18-year-old has a pulse and a mailing address, credit card companies will find him. That's just a fact of life in the good ol' U.S. of A. Your teenagers should know the responsible ways to build credit and the dangers lurking behind every unnecessary swipe. You can try to convince them that credit cards, like debit cards, should be paid off in full each month. If you've ever had credit card debt, your teen doesn't need to know the details, but he should know all the work that went into paying it off. Mortgage: While a mortgage usually isn't seen as a mistake, the timing in getting one can be. Make sure your teen knows the various considerations that go into buying a home, such as the ebbs and flows of the housing market, private mortgage insurance, and interest rates. It's important to stress that there should be no rush to do the deed -- er, rather, a deed. What might be second nature to you is a whole new world for your soon-to-be independent teen. The more he knows about finances, the better. And sharing your personal financial experiences -- the good, the bad and the ugly -- will help. Yes, even that time you bought tickets to Twisted Sister on credit for you and your roommates. Let them learn from your mistakes -- and, in the process, keep them from making a few of their own.

Goldman Sachs Earnings Beat Not Very Goldman Like

Goldman Sachs (GS) beat earnings this morning, but the report has left investors wondering whether Goldman can ever return to its former glory.

Reuters

A day after Bank of America (BAC) beat earnings and two days after JPMorgan Chase’s (JPM) own beat, Goldman Sachs announced that it earned $4.60, beating analyst forecasts for $4.22. SunTrust Robinson Humphrey’s Eric Wasserstrom explains how Goldman Sachs beat its earnings:

Results were driven by strong Investment Banking and Investing & Lending revenues and lower than forecast compensation expense, offsetting slightly higher non-compensation expense…

Investment Banking results reflected strong underwriting and advisory revenues, while net revenues in Investing & Lending were 40% higher vs. 3Q13 due to realized and unrealized gains across the portfolio…

We remain Neutral on GS, but an improving macro-outlook, particularly in the U.S. and Europe, would likely indicate a stronger revenue and profitability trajectory.

About those compensation costs: The percentage of revenue Goldman pays its employees fell to the second-lowest level since it went public, according to Bloomberg, and even its CEO recognizes that it can’t be the driver of future earnings. Bloomberg reports:

Chief Executive Officer Lloyd C. Blankfein, 59, allocated 37 percent of revenue for pay in 2013, compared with 38 percent the previous year. While the average ratio has dropped by more than 6 percentage points since 2008, compared with the five years before the financial crisis, Blankfein has said he's wary of cutting too much and losing top performers…

Goldman Sachs disbursed about 36 percent of revenue as compensation in 2009, the lowest ever as a public company.

Standard Life Investment’s Euan Sanderson calls the results “respectable but unspectacular.” He writes:

Goldman Sachs reported Q4 earnings that exceeded consensus expectations delivering EPS of $4.60 compared to $4.18 expected, producing a 12.7% ROE capping of a year that can be best described as respectable but unspectacular. Full year ROE was 11% which represents a fairly solid showing in a somewhat challenging environment but also serves as a reminder that the glory days of posting 20%+ ROE is a distant memory as higher capital levels and regulatory constraints make it more challenging for 'Goldman to be Goldman'!

Shares of Goldman Sachs dropped 2% to $175.17 today, while Bank of America dipped 0.4% to $17.08 and JPMorgan fell 0.8% to $58.99. Citigroup (C), which missed earnings estimates today, has declined 4.4% to $52.60, while Morgan Stanley (MS), which reports tomorrow, closed off0.7% at $32.

Best Growth Companies To Invest In Right Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ICU Medical (NASDAQ: ICUI  ) �-- a medical device maker in the fields of infusion therapy, oncology, and critical care -- soared as much as 17% on a report that the company could be exploring a sale.

So what: According to a Bloomberg News report that cites people familiar with the matter, ICU Medical has employed JPMorgan Chase�to help it explore a sale that could yield a buy price of greater than $1 billion. As you might expect, neither ICU Medical nor JPMorgan Chase could be reached for comment.

Now what: Almost two years ago to the day that I included ICU Medical as one of my 10 small caps to rule them all because of its history of consistent growth, the opportunity that an aging population would present in terms of future growth, its large cash pile, and the potential that it may attract a buyer. Thus far that prognostication has been spot on with the share price having doubled and rumors swirling that it may indeed be looking to be purchased. This is a win-win for shareholders either way, because they either get the immediate pop of a buyout, or -- as I predicted -- ICU will continue higher over the long run as an aging population requires greater medical device usage.

Best Growth Companies To Invest In Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Advisors' Opinion:

• [By David Fried, Editor, The Buyback Letter]

  Insurance holding company CNO Financial Group (CNO) and its insurance subsidiaries��rincipally Bankers Life and Casualty Company, Washington National, and Colonial Penn Life Insurance Company��erve pre-retiree and retired Americans.

• [By Vanin Aegea]

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

• [By Jonas Elmerraji]

  Up first is CNO Financial Group (CNO), a mid-cap financial stock that's rocketed close to 60% higher since the calendar flipped over to January. Yup, it's been a great year for the market, but it's been a far better one for investors who own CNO. But that strong performance isn't showing any signs of slowing yet. In fact, CNO looks primed for even more upside in the fourth quarter.

  That's because CNO is currently forming a bullish pattern called an ascending triangle. The ascending triangle pattern is formed by a horizontal resistance level above shares -- in this case at $14.75 -- and uptrending support to the downside. Basically, as CNO bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above that $14.75 resistance level. When that breakout happens, it's time to become a buyer.

  ACCO's price action isn't exactly textbook. After all, the pattern is coming in at the bottom of a downtrend, not after an uptrend. But ultimately, that doesn't change the trading implications of a move through that $7.50 level.

  Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Ascending triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

  That $7.50 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant. The move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

  Don't be early on this trade.

Best Growth Companies To Invest In Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:

• [By Lauren Pollock]

  ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.

Top 5 Cheap Stocks To Buy Right Now: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By Jonathan Yates]

  When looking at small cap stocks, it is useful to compare the company with others that have expanded in both share price and size. For those considering investing in the $100 billion staffing industry, the growth of TrueBlue (NYSE: TBI) shows what could be the potential path for Labor SMART (OTCBB: LTNC), as both operate in the $29 billion demand labor sector. Other firms have done well in the staffing industry include Paychex (NASDAQ: PAYX) and ManPower Group (NYSE: MAN).

• [By Jonathan Yates]

  Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

Best Growth Companies To Invest In Right Now: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:

• [By John Udovich]

  Small cap Checkpoint Systems, Inc (NYSE: CKP) fights shoplifting or retail theft and other forms of�"shrink��that costs retailers over $112 billion worldwide last year (according to a study funded by the company), meaning it might be an interesting stock to take a closer look at and to compare its performance with that of SPDR S&P Retail ETF (NYSEARCA: XRT) and PowerShares Dynamic Retail ETF (NYSEARCA: PMR). Just how bad can shoplifting or shrink be for a retailer? Troubled retailer J.C. Penney Company, Inc (NYSE: JCP) has just reported that shoplifting took a full percentage point off the department store chain's profit margins during the quarter. Moreover and given that tens of millions of Americans are now facing higher health insurance costs thanks to Obamacare (which will likely impact consumer discretionary spending),�retailers�will need to find ways to shore up their margins and bottom lines by preventing�retail theft with solutions from company�� like Checkpoint Systems.

Best Growth Companies To Invest In Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Robert Hanley]

  Consumer-goods marketer Blyth (NYSE: BTH  ) , owner of weight-loss upstart ViSalus, has been in the doghouse lately, sitting near a 52-week low due to poor results in its weight-loss unit.� Despite a large potential customer base of overweight people worldwide, the industry has had difficulty generating growth lately, with data provider Marketdata Enterprises estimating that industry sales rose only 1.7% in 2012.� However, Blyth caught a bid in late October from a proposed combination with marketing-services provider CVSL, indicating that some people see incremental value in Blyth's businesses.�So, should small investors bet on this small cap or should they focus their attention on Weight watchers International (NYSE: WTW  ) and Medifast (NYSE: MED  ) instead?

• [By Holly LaFon] ast produces, distributes and sells weight and health management products with the brand names Medifast, Take Shape for Life, Hi-Energy Weight Control Centers and Woman�� Wellbeing.

  Its return on assets in the third quarter of 2011 was 19.6%, which has been increasing in the past several years. The average return on assets for the specialty retail industry is 10.48% for the trailing 12 months.

  The company�� total assets amounted to $94 million in 2010, which increased from $62.8 million in 2009. Net income also increased to $19.6 million in 2010 from $12 million in 2009.

  Boston Beer Inc. (SAM)

  Boston Beer Inc. is the largest brewer of handcrafted beers in America. Boston Beer is a growing company that recently saw a large increase in its return on assets. It increased from 19.3% in 2010 to 29.7% in 2011, and was negative as recently as 2008. The average return on assets for the beverages industry in the trailing 12 months is 9.47%.

  In 2011, the company�� total assets increased to $272.5 million from $258.5 million in 2010. Net income increased to $66 million from $50 million.

  Alliances Resources Partners (ARLP)

  Alliance Resources Partners is a coal producer and marketer primarily in the eastern U.S. Its ROA has been increasing since 2008 and increased to 22.5% in 2011 from 21.4% in 2010. The average return on assets for the oil, gas & consumable fuels industry in the trailing 12 months is 24.47%.

  In 2011, its total assets increased to $1.7 billion from $1.1 billion in 2010. Its net income increased to $389 million from $321 million.

  Factset Research Systems Inc. (FDS)

  Factset researches global market trends and develops analytical tools for investors. Of all of GuruFocus��5-star predictable companies, it has the highest return on assets at 27%. ROA has been increasing over the past several years. The average return on assets for the software industry for the trailing 12 m

Best Growth Companies To Invest In Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Daniel Sparks]

  The payout ratio is an excellent tool for dividend investors. Without it, it's tough to judge how sustainable a company's dividend is. Though a lower payout ratio is always better than a high payout ratio, some companies can easily cope with higher ratios than others. In the video below, Fool contributor Daniel Sparks looks at�Apple (NASDAQ: AAPL  ) , Microsoft (NASDAQ: MSFT  ) , and Waste Management (NYSE: WM  ) , illustrating how the ratio deserves careful attention during analysis.

• [By Dividends4Life]

  Related Articles:
  - Meredith Corp. (MDP) Dividend Stock Analysis
  - Target Corporation (TGT) Dividend Stock Analysis
  - Waste Management, Inc. (WM) Dividend Stock Analysis
  - Coca-Cola Company (KO) Dividend Stock Analysis
  - More Stock Analysis

• [By Wallace Witkowski]

  Some of the companies most dependent on government for revenue are Harris Corp. (HRS) �with 80% of revenue government-derived; Granite Construction Inc. (GVA) �with 58%; Flir Systems Inc. (FLIR) �with 54%; and Waste Management Inc. (WM) � and Republic Services Inc. (RSG) �both with 50%, according to Goldman Sachs.

• [By Chris Hill]

  Waste Management (NYSE: WM  ) reported a slight decline in first-quarter profits but revenues increased. Shares of the trash giant hit their highest point since 1999. In this installment of Motley Fool Money, our analysts talk about the future of Waste Management.

No Near-term Catalysts - Ahead of Wall Street

Monday, August 5, 2013

With the Q2 earnings season winding down and nothing major on the economic calendar in the coming days, the stock market may simply be lacking in catalysts. The service sector ISM reading coming out a little later today could be move the needle a bit, but it's not material enough to have any lasting effect, particularly after last week's mixed economic data.

Last week's manufacturing ISM report was very strong, but that was more than offset by Friday's soft jobs report. Not only the headline jobs tally came short of expectations, but the report's internals didn't provide any reassuring signs about economic ramp up either. Average hourly earnings, the work week and revisions to prior months' data were all negative. Even the slide in the unemployment rate was mostly due to more folks leaving the labor force. Importantly, while the report failed to throw up any evidence of improvement in the economy, it wasn't bad enough to stop the Fed from contemplating the 'Taper'.

The way I see it, stocks appear priced for perfection. Investors seem to be hoping that everything – from the economy to corporate earnings and from U.S. interest rates to the international growth backdrop – will continue breaking out in favor of stocks. It has played out that way lately, with stock market investors not losing any sleep over recent the rise in long-term interest rates.

The calculus seems to be that improved economic growth and stronger corporate earnings will offset higher interest rates. But what if we don't get the material uptick in the growth picture, but interest rates keep trending up in anticipation of monetary policy normalization. Nobody wants to contemplate this not-so-implausible scenario at this stage.

Sheraz Mian
Director of Research

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Hot Small Cap Stocks To Watch For 2014

In retrospect, their pullbacks come as no real surprise. Neither Voxeljet AG (NYSE:VJET) nor Camtek LTD. (NASDAQ:CAMT) saw their shares soar on any news that was meaningfully sustainable, and after the "shoot first, ask questions later" market had a chance to start asking questions, it became clear that - even with the largest of glimmers of corporate progress unveiled a few weeks ago - CAMT and VJET both had been bid up more on hype and less on substance. Meanwhile (and this could be bitterly ironic to some), a small cap play in the same 3D printing space that (1) didn't beat the daylights out of its hype-drum, and (2) is actually much closer to bringing a revenue-bearing product to the market [per today's news - more on that below] isn't getting anywhere near the same attention. That company? Makism 3D Corp. (OTCBB:MDDD). The good news is, MDDD finally looks like it's revving its engine, while Camtek and Voxeljet AG shares continue to deteriorate.

Hot Small Cap Stocks To Watch For 2014: ATA Inc.(ATAI)

ATA Inc., through its subsidiaries, provides computer-based testing services in the People?s Republic of China. It offers services for the creation and delivery of computer-based tests utilizing its test delivery platform, proprietary testing technologies, and testing services; and provides logistical support services relating to test administration. The company?s computer-based testing services are used for professional licensure and certification tests in various industries, including information technology (IT) services, banking, securities, teaching, and insurance. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests ranging from test form compilation to test scoring, and results analysis. ATA also provides career-oriented educational services, such as single course programs, degree major course programs, and pre-occupational training programs focusing on preparing students to pass IT and other vocational certification tests; test preparation and training programs and services to test candidates preparing to take professional certification tests in securities, futures, banking, insurance and teaching industries; online test preparation and training platform for the securities and banking industries; and test preparation software for the teaching industry. In addition, the company offers HR select employee assessment solution, an online system that utilizes its proprietary software and an inventory of test titles to help employers improve the efficiency and accuracy of their employee recruitment process. As of March 31, 2010, it had contractual relationships with 1,988 ATA authorized test centers. The company serves Chinese governmental agencies, professional associations, IT vendors, and Chinese educational institutions, as well as individual test preparation services. ATA Inc. was founded in 1999 and is based in Beijing, the People?s Republic of China.

Hot Small Cap Stocks To Watch For 2014: Sky-mobi Limited(MOBI)

Sky-mobi Limited engages in the operation of a mobile application store in the People?s Republic of China. It works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with applications and content titles. The users of its Maopao store could browse, download, and purchase a range of applications and content, such as single-player games, mobile music, and books. The company?s Maopao store enables mobile applications and content to be downloaded and run on various mobile handsets with hardware and operating system configurations. It also operates a mobile social network community, the Maopao Community, where it offers localized mobile social games, as well as applications and content with social network functions to its registered members. The company owns proprietary mobile application technology in the cloud computing, the MRP format, and SDK development environment. As of March 31, 2011, it had entered into cooperation agreements with approximately 523 handset companies to pre-install Maopao. The company was formerly known as Profit Star Limited and changed its name to Sky-Mobi Limited in October 2010. Sky-mobi Limited was incorporated in 2007 and is headquartered in Hangzhou, China.

Advisors' Opinion:

• [By Roberto Pedone]

  Another stock that's starting to move within range of triggering a big breakout trade is Sky-mobi (MOBI), which, through its subsidiaries, engages in the operation of a mobile application platform embedded on mobile phones to provide mobile application store and services in the People�s Republic of China. This stock has been red hot so far in 2013, with shares up a whopping 88%.

  If you look at the chart for Sky-mobi, you'll notice that this stock recently formed a triple bottom chart pattern at $3.31, $3.28 and $3.40 a share. That bottoming pattern occurred over the last two months. Shares of MOBI have now started to uptrend and flirt with its 50-day moving average of $3.76 a share. That move is quickly pushing MOBI within range of triggering a big breakout trade.

  Traders should now look for long-biased trades in MOBI if it manages to break out above some near-term overhead resistance levels at $3.71 to $3.83 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 145,934 shares. If that breakout triggers soon, then MOBI will set up to re-test or possibly take out its 52-week high at $4.96 a share. Any high-volume move above that level will then give MOBI a chance to tag its next major overhead resistance levels at $5.55 to $6.13 a share.

  Traders can look to buy MOBI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.40 to $3.28 a share. One can also buy MOBI off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

5 Best Medical Stocks To Own For 2014: Voyager Oil & Gas Inc.(VOG)

Voyager Oil & Gas, Inc. engages in the exploration and production of oil and gas in the United States. It primarily focuses on oil shale resource prospects in Montana, North Dakota, Colorado, and Wyoming. As of May 17, 2011, the company controlled approximately 141,500 net acres in the five primary prospect areas comprising 28,000 net acres targeting the Bakken/Three Forks in North Dakota and Montana; 14,200 net acres targeting the Niobrara formation in Colorado and Wyoming; 800 net acres targeting a Red River prospect in Montana; 33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield, and Fergus counties of Montana; and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill, and Chouteau counties of Montana. It supplies energy and fuel for industrial, commercial, and individual consumers. The company is based in Billings, Montana.

Hot Small Cap Stocks To Watch For 2014: Rackspace Hosting Inc(RAX)

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Advisors' Opinion:

• [By Investometrica]

  Servers: Server revenue is also in a dangerous position. The graph shows how the market changed from 2008 through 2012, favoring the Iaas (infrastructure as a service) hosting business model (Amazon (AMZN) and Rackspace (RAX)), while leaving the server-side infrastructure business model in great trouble. At this point, the trend towards adoption of hosted Iaas as a replacement for traditional in-house server-side infrastructure can't possibly be reversed.

• [By Paulo Santos]

  Using Equinix (EQIX) and Rackspace Hosting (RAX) as comparables, I was pumped up. CONE was projecting $135 million in EBITDA for 2013 (at the midpoint of guidance). On a $445 million market capitalization with $277.7 million in net debt, it traded at an EV/EBITDA of just 5.4 times. Compare that to EQIX at 13 times or RAX at 15 times. This was a bargain and growing revenues at a 18% clip year-on-year, too, above EQIX's 10% or RAX's 15%.

• [By Lee Jackson]

  Rackspace Hosting Inc. (NYSE: RAX) recently added a huge new customer in Emerson Electric (NYSE: EMR). In January Emerson started using Rackspace to help tune and monitor climate control products for residential and commercial customers. Adoption has gone so well that Rackspace expects Emerson to hike its commitment from 43 servers today to 100 by year’s end. The consensus price target for the stock is posted at $52. The stock closed at $50.60.

Hot Small Cap Stocks To Watch For 2014: InterDigital Inc.(IDCC)

Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.

Advisors' Opinion:

• [By Alex Planes]

  Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does InterDigital (NASDAQ: IDCC  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

• [By Evan Niu, CFA]

  What: Shares of InterDigital (NASDAQ: IDCC  ) have gotten crushed today by as much as 20% after the company lost a patent suit against several smartphone makers.

• [By James E. Brumley]

  Endeavor IP isn't the only publicly-traded intellectual property enforcement company out there. It is, however, the only one to focus on quality over quantity. Whereas other players like patent portfolio names like InterDigital, Inc. (NASDAQ:IDCC) and Vringo, Inc. (NASDAQ:VRNG) will literally buy patents by the hundreds - perhaps sometimes without even knowing what some of those patents even cover - in an effort to arm itself with any and every possible patent for any and every contingency. Most are likely worthless, which means companies like InterDigital or Vringo may have wasted shareholder money by buying IP that isn't capable of bearing revenue.

• [By Jason Shubnell]

  InterDigital (NASDAQ: IDCC) shot up 5.78 percent to $30.38 as the company and Huawei reached a settlement pact.

  Shares of Tesla Motors (NASDAQ: TSLA) got a boost, shooting up 6.48 percent to $152.85 after the NHTSA reaffirmed the Model S 5-star safety rating in 2014.

Hot Small Cap Stocks To Watch For 2014: OmniVision Technologies Inc.(OVTI)

OmniVision Technologies, Inc. designs, develops, and markets semiconductor image-sensor devices. The company offers CameraChip image sensors, which are single-chip solutions that integrate various functions, such as image capture, image processing, color processing, signal conversion, and output of a processed image or video stream for use in various consumer and commercial mass-market applications; and CameraCube imaging devices that are image sensors with integrated wafer-level optics. It also provides companion chips used to connect its image sensors to various interfaces, including the universal serial bus and other industry standard interfaces; and companion digital signal processors that perform compression in standardized still photo and digital video formats. In addition, the company designs and develops software drivers for Linux, Mac OS, and Microsoft Windows, as well as for embedded operating systems, such as Blackberry OS, Palm OS, Symbian, Windows CE, Windows Embedded, and Windows Mobile. Its products are used in mobile phones, notebooks, Webcams, digital still and video cameras, commercial and security and surveillance, and automotive and medical applications, as well as in entertainment devices. The company sells its products directly to original equipment manufacturers and value added resellers, as well as indirectly through distributors worldwide. OmniVision Technologies, Inc. was founded in 1995 and is based in Santa Clara, California.

Advisors' Opinion:

• [By Alex Planes]

  Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does OmniVision Technologies (NASDAQ: OVTI  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

• [By Evan Niu, CFA]

  Once upon a time, I was also an OmniVision (NASDAQ: OVTI  ) bull, thinking the image sensor specialist's lead in backside-illuminated technology gave it a substantial leg up against the competition. When OmniVision lost the iPhone 4S primary camera spot to Sony,�that was just the first sign that things may never be the same. The company subsequently lost the iPhone 5 primary sensor, also to Sony. HTC has gone with STMicroelectronics�for the "UltraPixel" sensor in its One flagship (OmniVision sources the secondary sensor), which lends to the idea that BSI sensors are becoming commoditized. Goodbye, pricing power. I gave up on OmniVision long ago.

Hot Small Cap Stocks To Watch For 2014: OCZ Technology Group Inc(OCZ)

OCZ Technology Group, Inc. designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. It primarily offers solid state drives, flash memory storage, memory modules, thermal management solutions, AC/DC switching power supply units, and computer gaming solutions. The company?s products are used in industrial equipment and computer systems; computer and computer gaming solutions; mission critical servers and high end workstations; personal computer (PC) upgrades to extend the useable life of existing PCs; high performance computing and scientific computing; video and music editing; home theatre PCs and digital home convergence products; and digital photography and digital image manipulation computers. OCZ Technology Group, Inc. offers its products to retailers, on-line retailers, original equipment manufacturers, systems integrators, and distributors. The company was founded in 2002 and is headquartered in San Jose, Califo rnia.

Advisors' Opinion:

• [By Rich Duprey]

  The not-so-great and wonderful OCZ
  There was no company-specific news that caused solid-state-drive maker OCZ Technology (NASDAQ: OCZ  ) to fall almost 8% Wednesday. But an article that appeared on Seeking Alpha �questioning whether the company had six months or less to live before it filed for bankruptcy seemed to coincide with its fall.

Hot Small Cap Stocks To Watch For 2014: FuelCell Energy Inc.(FCEL)

FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.

Advisors' Opinion:

• [By Rick Aristotle Munarriz]

  Bloomberg via Getty ImagesSteelcase, a leading maker of office furniture, reports this week; its earnings are a bellwether of how corporate America is faring. You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From a pair of leading office furniture companies reporting on the same day to a popular used-car seller showing off its showroom, here are some of the things that will help shape the week that lies ahead on Wall Street. Monday -- New Energy for the New Week: The new trading week kicks off with FuelCell Energy (FCEL) reporting. The builder of fuel cell power plants reports its latest quarterly results after the market closes on Monday. It's been 10 years since FuelCell completed its first commercial fuel cell plant installation. Business is starting to pick up, as it has as many orders over the past two years combined as it did during the eight previous years combined. Revenue should continue to grow as FuelCell grows closer to profitability. Tuesday -- Lone Wolf: Disney's (DIS) "The Lone Ranger" was a flop earlier this year. It failed to break $90 million in domestic box office receipts, and the $260 million it amassed in gross ticket sales worldwide wasn't enough to offset its massive production budget and cinematic distribution. Disney had fared well with Johnny Depp and director Gore Verbinski before. The two teamed up for the blockbuster success of Disney's "The Pirates of the Caribbean" movie series. It convinced a jaded audience to return to the local multiplex for a movie about swashbucklers. But it couldn't revive the Western genre this time around. Despite being a box office bomb, "The Lone Ranger" will get a chance at new life in the home market. It comes out on Blu-ray and DVD on Tuesday. Wednesday -- Office Space: When it comes to stocks, it's safe to say that Steelcase (SCS) and Herman Miller (MLHR) aren't exactly the busy bees of the exchanges. On a typical day you w

Starbucks' Latest Venture Promises Big Growth

Starbucks (NASDAQ: SBUX  ) , the world's most popular coffee chain, is joining forces with Danone  (NASDAQOTH: DANOY  ) to create an exclusive yogurt line called "Evolution Fresh, Inspired by Dannon." The line of co-branded yogurts will be sold in U.S. Starbucks locations as soon as next year, and will reach grocery store shelves by 2015.

So what?
This partnership is important for a number of reasons. For Starbucks it's another way for the coffee chain to attract more customers throughout the day, in addition to its loyal morning crowds. In 2011, Starbucks scooped up Evolution Fresh, a premium juice brand, for $30 million. This together with the company's 2012 acquisition of La Boulange Bakery is helping Starbucks diversify its brand into the consumer packaged goods space.

Not to mention, the deal opens the door for Starbucks in the multibillion-dollar yogurt industry. Market research firm Packaged Facts says yogurt sales totaled more than $7 billion in the U.S. last year. As a snack, yogurt is a perfect fit for Starbucks, whose brand has come to embody health and wellness. Not only does this help Starbucks expand into a new product category, but it should also be a win for the company down the road once its Evolution Fresh beverage and yogurt products are selling in grocery stores.

There are also clear advantages for Danone, the French dairy company that's on the other end of this deal. In fact, it was Franck Riboud, Danone's chief executive, who first reached out to Starbucks CEO Howard Schultz about a possible collaboration with the java giant. While financial terms of the deal were not released, an obvious benefit for Danone is that its products will now be sold at thousands of Starbucks locations across the country.

Starbucks' massive distribution network should help Danone make a comeback in the U.S., where its products currently compete with deep-pocketed rivals, such as General Mills'  (NYSE: GIS  ) Yoplait. While Danone currently holds the largest share in the overall yogurt market, it ranks behind General Mills in the fast-growing Greek yogurt category: Yoplait now has a 24% share of the Greek yogurt market, according to Euromonitor. It's not surprising, then, that the first Evolution Fresh, Inspired by Dannon product will be a Greek yogurt parfait.

Strategic partnerships such as this should pay off for Starbucks down the road as it continues to expand into new markets and product categories. For investors, this could mean more upside in the stock. Shares of Starbucks are up more than 27% on the year, and the stock currently trades at around $66 a share.

But if you're looking for another winning stock pick in 2013, we've got you covered. The Motley Fool's chief investment officer has selected his No. 1 stock for this year -- and it's not too late to cash in on this gem. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.