European stocks drop on U.S. fears, Italy woes

LONDON (MarketWatch) — European stock markets showed broad-based losses on Monday on a trio of concerns, with worries over a potential government shutdown in the U.S., political instability in Italy and disappointing data from China.

The Stoxx Europe 600 index (XX:SXXP)  lost 0.7% to 309.98, on track for the lowest close since Sept. 10.

Click to Play U.S. government shutdown is looming

How would a government shutdown affect government workers? Plus, a former telecom CEO convicted of insider trading itches to fight the feds, and Huckleberry Lemonade helps keep the taste of summer even in the fall. (Photo: AP)

Top 10 Canadian Stocks To Invest In 2014

Among country-specific indexes, Italy's FTSE MIB index (XX:FTSEMIB)  was the biggest decliner, off 1.7% to 17,346.15. Banks posted some of the biggest losses, with shares of Mediobanca SpA (IT:MB)  down 3.6%, Intesa Sanpaolo SpA (IT:ISP)  losing 3.7% and UniCredit SpA (IT:UCG)  off 2.5%.

The losses came after former Prime Minister Silvio Berlusconi's party said over the weekend that all five of its ministers would resign from the cabinet, adding to the political instability in the country. Berlusconi said he engineered the crisis because he opposes a planned increase in the sales tax, but Prime Minister Enrico Letta called this a "huge lie." Berlusconi's allies of the former prime minister threatened last week to bring down the government if a Senate committee this week votes to expel him from the upper house after his tax-fraud conviction.

The yield on the 10-year benchmark government bond (IT:10YR_ITA)  rose 9 basis points to 4.65%, marking the highest level in three months.

Uncertainty about budget negotiations in the U.S. also weighed on sentiment in Europe on Monday. The government could face its first shutdown in 17 years after lawmakers over the weekend failed to agree on the budget for the new fiscal year, which starts on Tuesday Oct. 1. If House Republicans and Senate Democrats cannot agree by the Tuesday morning deadline, thousands of government employees will be unable to work.

"If this becomes a protracted affair, there's a possibility the U.S. could default which will bring out the rating agencies ready with their knives to chop the sovereign's rating. In fact, Moody's reckons 4Q GDP could be reduced as much as 1.4% if there is a three-to-four week shutdown," said Ishaq Siddiqi, market strategist at ETX Capital.

U.S. stock futures pointed to a lower open on Monday.

In Europe, mining firms added pressure after weaker-than-expected data from China. The final HSBC China Manufacturing Purchasing Managers' Index for September came in at 50.2, lower than the preliminary reading of 51.2.

Shares of Anglo American PLC (UK:AAL)  slid 3%, Rio Tinto PLC (UK:RIO)   (AU:RIO)   (RIO)  dropped 2.6%, and BHP Billiton PLC (UK:BLT)   (BHP)   (AU:BHP)  lost 1.3%.

The losses weighed on the U.K.'s FTSE 100 index (UK:UKX) , which gave up 0.7% to 6,464.22.

Germany's DAX 30 index (DX:DAX)  slid 1% to 8,577.42, and France's CAC 40 index (FR:PX1)  dropped 1.2% to 4,135.33.

Banks weighed on the indexes, with shares of Commerzbank AG (DE:CBK) 2.9% lower in Frankfurt, Crédit Agricole SA (FR:ACA)  down 2% in Paris and HSBC Holdings PLC (UK:HSBA)   (HBC)   (HK:5)  off 1.2% in London.

Outside the major indexes, shares of Stora Enso Oyj (FI:STERV)  slid 4.5% after UBS cut the pulp and paper manufacturer to sell from neutral. The analysts said they remain cautious on the global pulp market and fear volumes are outpacing demand with new supply entering the market short-term.

UBS also lowered the rating on Schneider Electric SA (FR:SU)  to sell from neutral, sending the shares 3.2% lower.

5 Things You Really Need to Know About Bonds Right Now

Getty Images Most investors believe that the stock market is the riskiest way to invest. But as many investors have learned the hard way lately, even supposedly safe investments like bonds can create losses in your portfolio. For years, the Federal Reserve has done everything it could to keep interest rates low. But now that the Fed has started thinking about plans to cut back on some of the methods it has used to reduce rates, the bond market has suffered big declines, with losses of 10 percent or more for some types of bonds. Here are five things you need to understand about bonds in order to make sure rising rates don't cause you any further nasty surprises. 1. Rising Interest Rates Hurt Bond Prices Many bond investors make the mistake of thinking that rising yields on bonds are a good thing. That's true for new investors, as newly issued bonds will carry higher interest rates than older bonds. But if you already own bonds, rising yields cause your bonds' value to fall. That's because as new bonds with higher rates come out, your lower-rate bond looks less attractive by comparison, and so buyers aren't willing to pay as much for your bonds, causing their prices to drop. 2. Longer-Term Bonds Move More When Rates Change Typically, investors can get higher rates by buying long-term bonds. For instance, 30-year Treasury bonds pay almost 4 percent right now, compared to about 0.5 percent for two-year Treasuries. The tradeoff, though, is that yield increases hurt the value of long-term bonds a lot more than short-term bonds. The reason: The longer you're locked into a relatively low rate, the more interest you lose from being stuck with that bond. By contrast, even if rates rise substantially on a bond that matures within a few months, you won't lose much value because you'll soon be able to take your money at maturity and reinvest it in a higher-rate bond. That's one reason why so many analysts have advised bond investors to focus on shorter-term bonds lately. 3. Individual Bonds Have One Big Edge Over Bond Funds Most investors buy bond funds for diversification rather than individual bonds. With bond funds, you can get exposure to dozens or even hundreds of different bonds even if you only have a modest amount to invest. To buy that many individual bonds, it would cost you tens or even hundreds of thousands of dollars. However, one attractive feature of individual bonds is that even if their market value declines due to interest-rate rises, individual bonds eventually recover to their full par value at maturity. For bond funds, on the other hand, capital losses can be permanent because most bond-fund managers typically buy and sell bonds rather than holding them to maturity. 4. Municipal Bonds: Attractive Yields with Tax Benefits Within the bond market, different niches have had varying results. Municipal bonds have seen an especially large run-up in yields, and right now, 30-year municipal bonds have yields that are almost a full percentage point above comparable Treasury yields. What's particularly unusual about the current muni-bond environment is that munis usually have yields than Treasuries. That's because muni interest is exempt from federal tax, providing even greater after-tax returns than taxable Treasuries and other bonds. The recent Detroit bankruptcy has highlighted the risks of muni-bond investing, but high yields make that risk worth it for many investors, especially if you're in a high tax bracket. 5. Inflation-Protected Bonds Can Still Lose Value Most bonds are vulnerable to inflation. That's one reason why inflation-protected bonds like Treasury Inflation-Protected Securities, aka TIPS, have become popular. Yet the rise in bond yields lately hasn't come from inflation fears but rather from the Fed's anticipated policy changes. As a result, TIPS yields have also risen, causing big price declines in them as well. Be Careful With Bonds Having bonds in your portfolio still makes sense for most investors who can't afford to take on the full risk of the stock market and other riskier assets with their entire portfolio. By keeping these five things in mind, you can do your best to minimize any losses and take advantage of opportunities as they arise.

Primarily covering the energy and natural resources sectors, master limited partnerships take advantage of favorable tax laws to distribute cash to investors in a tax-efficient way. Recently, the need for pipelines and other energy infrastructure to transport huge, newly-discovered oil and natural gas reserves has helped MLPs like Kinder Morgan Energy Partners (KMP) and Enterprise Products Partners (EPD) to grow substantially while paying distribution yields of between 4 percent and 6 percent. Many MLPs pay even higher yields, however, and with those payouts often being tax-advantaged, you'll potentially lose less of your income to Uncle Sam. The downside: MLPs can make your tax preparation a lot harder, as complicated reporting requirements make them harder to deal with than an ordinary stock investment.

1. Master Limited Partnerships

Another tax-law provision gives favorable tax status to real-estate investment trusts. REITs make investments in real estate-related assets, and they're required to pay out almost all their income to their shareholders annually. Simon Property Group (SPG) is one of the biggest REITs, focusing on shopping malls and paying a 3 percent yield. But other specialty areas of the REIT universe pay much higher dividends, with REITs like Annaly Capital (NLY) that invest in mortgage-backed securities topping the list with double-digit percentage yields.

Counter-Take: JC Penney Offering Was Just To Get Rid Of Short Sellers

J. C. Penney Company, Inc. (NYSE: JCP) has done serious damage yet again to its reputation. Earlier in the year its finances were said to be just fine. Then a fresh report from Goldman Sachs that the company would likely run into financial problems next year created a new sense of panic. To combat the concerns, J.C. Penney decided to sell 84 million shares at $9.65 per share.

The move may have bolstered its books, but maybe this was an underhanded way of cleaning up the short sellers out of the stock in the coming weeks. NASDAQ’s latest short interest tables released this week (from mid-September) showed a year high level of some 71.7 million shares and it was the fourth consecutive gain in the short interest.

What anyone would have to ask is simply “Who would buy the J.C. Penney offering, and why?” Most likely, some of the biggest buyers were also among the top short sellers. Some short selling investors have been short this stock since the $30s. The 52-week trading range is $9.25 to $27.00. This week was effectively the lowest reading in years and first time that the stock had broken down under $10 since 2000 or 2001.

Even if nothing has worked in years, the reality is that some short sellers may use this as the “freebie exit” to cover at least a portion of their short sales. The short sellers who are betting that the stock goes to zero can still take profits along the way to ensure gains. Besides, letting it all ride with the hope of “zero” would be considered pigging out or being too greedy even by short-seller terms.

Top 5 High Tech Stocks To Buy For 2014

J.C. Penney is a busted business but it has assets and enough property to go on fighting. We cannot see how the retailer can save itself, but any short seller knows only too well that retailers can survive for years and years while they remain in trouble.

All things being equal, this company remains challenged and we think that even more damage has been delivered with this share offering.

Will rising rates push MLP investors to traditional bond instruments?

Financial market participants, economists, home owners, central bankers, and everyday people have all been discussing one major financial question for the past few years. It has consumed gobs of press ink, hours of pundit discussions, acres of blog posts, and untold speculative chatter. We were told alternatively to not worry about it, to prepare prudently for it, or to make plans for our impending doom when and if it happened.

What was it that occasioned all this angst? A rise in U.S. interest rates. It seems for the past few years the world has been continuously debating when interest rates on U.S. Treasuries would rise. Rates finally did rise significantly in the latter part of the second quarter, with the 10-year U.S. Treasury yield rising from a low of 1.64% in early May to a high of 2.59% on June 25th before ending the quarter at 2.48%. The increase in Treasury yields prompted sharp responses throughout the fixed income market; for example, mortgage rates rose the most in one week since 1980 just after the Fed comments. While still low by historic standards, long Treasuries ended the quarter near the highest levels in almost two years. Rates had been rising modestly since early May but accelerated after Fed President Ben Bernanke announced in mid-June that the labor market was a bit better than previously thought and that the Fed might start scaling back its buying of bonds sooner than previously announced. No matter that Bernanke hedged his comments with many caveats; his words obviously touched a nerve with investors. Government, corporate, mortgage, and high yield bonds sold off fairly dramatically after his announcement.

Investors have been worrying for a long time about the potential of rising interest rates shifting investor interest from MLPs and MLP-related securities to traditional fixed income instruments. Like Pavlov's dogs responding to stimuli, some investors instinctively sold off MLPs in response to rising rates. The Alerian MLP Index(1), which had risen modestly early in! the quarter, fell 8% from a peak in late May to a trough in late June.

But then a funny thing happened. Treasuries leveled off and then retreated a bit at the end of June. This appears to have allowed investors to refocus on fundamentals, resulting in MLPs staging a nice rally in the last week of the quarter regaining a good bit of ground that they had lost. When all the dust settled, the Alerian MLP index returned 2.0% in the quarter, bringing its year-to-date return to 22.1%.

We believe that the long term prospects of energy infrastructure assets remain attractive, especially in an environment where numerous growth projects offer visible paths to distribution increases; however, this recent rise in interest rates, which took so many “experts” by surprise, is a reminder of the uncertain nature of the financial markets. A further rise in interest rates, or some other unforecastable event, could again negatively impact MLPs in the short run. Unfortunately these short run perturbations are inevitable and we endeavor to not overreact to them. While we remain vigilant to the risks to investing in MLPs and MLP-related securities in the short run, we continue to be guided by our assessment of long term total returns of individual companies.

Top 5 Oil Stocks To Own For 2014

During the second quarter of 2103, MLP managements announced a number of new investments, bringing estimated capital expenditure for new growth projects to $29 billion for 2013, the highest annual amount of organic capital projects on record. Additionally a number of MLPs and MLP-related securities announced significant purchases of assets from associated companies or third parties. MLPs and MLP-related securities maintained their record pace of capital raising by floating over $6 billion in equity. A significant amount of debt capital was also raised as both investment grade and non-investment grade MLPs and MLP-related securities continued to take advantage of record low interest rates to lock in lon! g term financing at favorable terms. Companies issued low cost debt mainly to fund construction projects and to refinance higher cost debt, both of which could increase the available cash flow for distribution going forward.

The MLP sector has been able to raise equity capital at such a brisk pace due to the expansion of MLP dedicated funds. In addition to closed-end funds, which have been a major source of new investor capital into the MLP space for many years, open-end funds, ETNs and ETFs have become a significant source of new investor capital in the past two years, and this past quarter was no exception. Open-end mutual funds focusing on MLPs are the newest and fastest growing source of funds to the sector. Analysts estimate that money in MLP open-ended mutual funds has grown from $5.0 billion at the beginning of the year to $9.1 billion at the end of May, an annualized growth rate of 140%. While this growth is dramatic, many of these new investment vehicles are relatively young and a small fraction of the total sector market cap. Recently it was estimated that investment products linked to MLPs represent approximately 7% of the total MLP market cap; by comparison, it is estimated that REIT investment products represent approximately 27% of the REIT universe. It appears that these new investment vehicles are still in the early innings of raising investor funds and may be significant source of demand for years to come.

Underlying this need for capital is the requirement for infrastructure to develop new hydrocarbon basins. As we have noted previously, dramatic increases in production of oil, gas, and natural gas liquids from North America have been unleashed by new technologies improving recoveries from previously uneconomic shale formations. U.S. oil production rose by 1 million barrels a day in 2012, the biggest annual gain in the nation's history, according to a recent report by BP. Natural gas production in the U.S. rose the fastest of any major region last year, and the U.S. remains the top! producer! in the world. The quantity and quality of potential investment opportunities currently facing MLPs reminds us of a quote by Yogi Berra about a nice hotel, “The towels were so thick there I could hardly close my suitcase.” In our opinion, the current abundance of new hydrocarbons from different geographies has created many potentially good investment opportunities for MLPs to choose from.

Announcements of large potential projects just keep coming. Williams and Boardwalk Pipelines finalized an agreement to develop the Bluegrass Pipeline project to bring NGLs from the Marcellus and Utica shale basins to petrochemical and export markets on the Gulf Coast. Enterprise Products also announced plans to expand and repurpose parts of the ATEX Express Pipeline to bring Northeast NGLs to their hub at Mt. Belvieu, TX. Energy Transfer Partners and Enbridge Partners started signing up producers to transport crude oil from the Midwest to refining markets along the Mississippi and Louisiana Gulf Coast on the Eastern Gulf Crude Access Pipeline. There are a number of proposals for LNG export terminals awaiting approval from the Department of Energy, which, if approved, would occasion another set of new project announcements by various MLPs. Florida Power and Light is currently entertaining proposals from a number of MLPs to build a multi-billion dollar natural gas pipeline to supply its power plants.

The acquisition market also remains robust. Wells Fargo estimates that year-to-date MLPs and MLP-related securities have announced $20.9 billion of acquisitions. During the quarter Spectra Energy Partners announced that it would purchase all of its parent Spectra Energy's U.S. gas transmission and storage assets by the end of the year (this is in addition to its purchase of a 50% interest in the Express-Platte crude oil system earlier this year); TC PipeLines also announced the purchase of $1 billion in natural gas pipelines from its parent, TransCanada Corp; Inergy, LP announced it would spin off its shares ! of Inergy! Midstream, LP and merge it with Crestwood Midstream Partners; and a number of smaller deals were announced during the quarter.

We continue to believe that a major change in the tax status of MLPs is not likely to occur any time soon. Our outlook is based on discussions with analysts and political figures who have rated the prospects of a general tax reform from this Congress to be low. One interesting political development is a proposal by a bipartisan group of Senators and Representatives to expand the MLP business structure to renewable energy companies. Called the Master

Fab Universal Shares May Be Up Today, But... (FU)

If history is any indication, than roughly half of you are about to hate me for what I'm about to say regarding Fab Universal Corp. (NYSEMKT:FU), while the other half of anyone reading this will likely love me for it - there is no in between. Here goes... FU is poised to make a fairly significant pullback following last week's heroic rally.

If you hate me for saying that, let me ask you one question. Do you actually own FU shares at this point? If you do, then you're biased (in favor of bullish commentaries, and against anyone that might pull the rug out from underneath the stock). If you love me for having the guts to point out how this crazy market carried Fab Universal Corp. shares upward too far, too fast, last week, then you probably saw the same red flag on the chart that I saw.

And what's that? Over the course of Thursday and Friday of last week, the Fab Universal Corp. chart gave us what's often referred to as a traintrack reversal, which is a pair of bars where the first day is marked by an open at the low and a close at the high of a very tall bar (and a bar that's usually at the tail-end of a sizeable runup). The second bar of the traintrack reversal is a mirror image of the first bar, with an open at (or at least very near) the first bar's close, and a close at (or very near) the first bar's open. We got a near-perfect case of this with FU over the last two days of last week.

The idea is, the two bars represent the proverbial last hurrah for the buyers, and then the passing of the torch to the sellers between - the market completely changes its mind (literally) overnight.

But FU is up today, quelling the bearish theory? Well, the stock is up today, but that doesn't inherently mean it's going to keep rallying here. The impact and meaning of the traintrack reversal has already taken its toll... is already out there. One good day now can't change that. On the other hand, never say never. We just want to give the chart and the bears at least a couple of days to find their bearings.

Top 10 Undervalued Companies To Buy For 2014

The bottom line is, with such a strong bearish reversal already under its belt, Fab Universal has already said the odds of a pullback are far greater than the odds of today's strength following through. It's possible FU could tumble all the way back to the low $5.00's before rekindling a more long-loved rebound.

Yep, timing is still everything.

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Top 10 Dividend Companies To Own In Right Now

When you purchase a share of stock in a company, you are buying into more than just the belief that capital gains will be earned over time. Each share represents a stake in the company itself. From time to time, issues crop up at these major companies that require shareholder input, and this is when your share of the pie really becomes important.

Shareholders of Transocean (NYSE: RIG  ) should be busy this weekend reading up on how the two proposed dividends could affect the company financially and about the backgrounds of the nominees to the Board of Directors. Each of these decisions will likely weigh heavily on the future outlook of Transocean which resides in a competitive and growing industry.��

What makes this particular vote especially important is the fact that an activist shareholder is involved. Carl Icahn has been calling for a dividend that is 79% higher than the $2.24 per share the company has indicated it wants to pay. Management believes that Icahn has his sights set on short-term gains, and the $4 per share that he is looking for would leave the company in a tight spot. Check out the video below for more details on the importance of being an engaged shareholder.

Top 10 Dividend Companies To Own In Right Now: Educational Development Corporation(EDUC)

Educational Development Corporation operates as a trade publisher of a line of children?s books in the United States. It distributes children?s books published by Usborne Publishing Limited in the United Kingdom. The company offers various books, including Touchy-Feely board books, jigsaw puzzle books, activity and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as science and math titles, and chapter books and novels. It sells books through two divisions, Usborne Books and More, and Publishing. The Usborne Books and More division distributes books through independent consultants, who hold book showings in individual homes; and through book fairs, direct sales, and Internet sales. It also distributes these titles to school and public libraries. The Publishing division markets books to bookstores, toy stores, specialty stores, museums, and other retail outlets. It distributes books through commissioned trade representati ves who call on book, toy, specialty stores, and other retail outlets; and through in-house marketing by telephone to the trade. The company was founded in 1965 and is headquartered in Tulsa, Oklahoma.

Top 10 Dividend Companies To Own In Right Now: Becton Dickinson and Company(BDX)

Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company?s BD Medical segment produces medical devices that are used in various healthcare settings. This segment?s products include needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes, pen needles, and other drugs to treat diabetes; prefillable drug delivery systems; anesthesia needles and trays; sharps disposal containers; and closed-system transfer devices. Its BD Diagnostics segment provides products for the safe collection and transport of diagnostics specimens, as well as instrument systems and reagents to detect various infectious diseases, healthcare-associated infections, and cancers. This segment?s products consist of integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing systems; molecular testing systems; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; and plated media. The company?s BD Biosciences segment produces research and clinical tools that facilitate the study of cells and their components. This segment?s products comprise fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; cell imaging systems; laboratory products for tissue culture and fluid handling; diagnostic assays; and cell culture media supplements for biopharmaceutical manufacturing. It markets its products through independent distribution channels and independent sales representatives to healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.

Advisors' Opinion:

• [By Ben Levisohn]

  Becton Dickinson (BDX) has gained 1.2% to $101.97 this morning after�Piper Jaffray�raised the stock to Overweight from Neutral. Analysts�William Quirk and�David Clair�explain why they’re optimistic about the medical technology company:

  Associated Press

  Observations from multiple diagnostic conferences all suggest significant interest in�microbiology investment. This interest spans track systems (Kiestra), new identification�technologies (Maldi/BioTyper) and Molecular (gram +/- assays). When considering�AST (antimicrobial susceptibility testing) recall from Siemens, we believe BD’s�microbiology business is poised to accelerate its performance over the next several years.�Combined with a delayed JNJ/Ypsomed pen needle launch and incremental European�safety adoption, we believe numbers for BD will continue to climb…

  They also raised their price target to $117 from $91.

  While Becton has gained today,�Johnson & Johnson�(JNJ) has dropped 0.6% to $88.50,�Medtronic�(MDT) has fallen 1%to $53.43,�Boston Scientific�(BSX) has declined 0.9% to $11.79 and Edwards Lifesciences (EW) is off 1.2% at $70.90.

Hot Penny Companies To Buy For 2014: Pacific Gas & Electric Co.(PCG)

PG&E Corporation, through its subsidiaries, operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. The company also involves in the generation, procurement, transmission, and distribution of electricity; and procurement, transportation, storage, and distribution of natural gas. It owns and operates electricity generation facilities, transmission and distribution lines, and substations; and an integrated natural gas transportation, storage, and distribution system, as well as has underground natural gas storage fields in California. The company serves residential, commercial, industrial, agricultural, public street and highway lighting, and other electric utility customers. As of December 31, 2009, it served approximately 5.1 million electricity distribution customers and approximately 4.3 million natural gas distribution customers. The company also operated 18,650 circuit miles of intercon nected transmission lines and 141,213 circuit miles of distribution lines for electricity; and 42,142 miles of distribution pipelines, 6,438 miles of backbone and local transmission pipelines, and 3 storage facilities for natural gas. PG&E Corporation was founded in 1905 and is based in San Francisco, California.

Advisors' Opinion:

• [By Richard Stavros]

  The Top Low-Carbon Utilities

  PG&E Corp (NYSE: PCG) Exelon Corp (NYSE: EXC) Entergy Corp (NYSE: ETR) Public Service Enterprise Group Inc (NYSE: PEG) NextEra Energy Inc (NYSE: NEE) Dominion Resources Inc (NYSE: D) Sempra Energy (NYSE: SRE)

  But that is not to say that, over the long term, high-carbon utilities might not be able to crack the technology and cost issues that would make “clean coal” competitive with other low-carbon energy sources. Secretary of Energy Ernest Moniz has said, “No discussion of US energy security and reducing global CO2 emissions is complete without talking about coal and the technologies that will allow us to use this resource more efficiently and with fewer greenhouse gas emissions.”

• [By David Dittman]

  PG&E Corp (NYSE: PCG), Edison International (NYSE: EIX) and Sempra Energy (NYSE: SRE) are the parent entities of California’s investor-owned utilities.

Top 10 Dividend Companies To Own In Right Now: Regal Beloit Corporation(RBC)

Regal Beloit Corporation, together with its subsidiaries, manufactures and sells electric motors and controls, electric generators and controls, and mechanical motion control products primarily in the United States and Asia. The company operates in two segments, Electrical and Mechanical. The Electrical segment manufactures and markets AC and DC commercial, industrial, and commercial refrigeration electric motors and blowers, as well as heating, ventilation, and air conditioning (HVAC) electric motors and blowers. It also provides precision servo motors, electric generators, automatic transfer switches and paralleling switchgear, and control electric power generation equipment; AC and DC variable speed drives and controllers, and other accessories for industrial and commercial applications; and capacitors for use in HVAC systems, high intensity lighting, and other applications. The Mechanical segment manufactures and markets a range of mechanical motion control products, i ncluding worm gears, bevel gears, helical gears, and concentric shaft gearboxes; marine transmissions; after-market automotive transmissions, and ring and pinions; custom gearing; gearmotors; electrical connecting devices; and manual valve actuators, which are used in oil and gas, water distribution and treatment, and chemical processing applications. The company sells its products to original equipment manufacturers, distributors, and end users through its direct sales people and manufacturer?s representative organizations. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin.

Top 10 Dividend Companies To Own In Right Now: United Bancorp Inc.(UBCP)

United Bancorp, Inc. operates as the holding company for The Citizens Savings Bank that provides various commercial and retail banking products and services in the northeastern, eastern, southeastern, and south central Ohio. Its deposit products include interest-bearing deposits, certificates of deposit, demand deposits, savings accounts, NOW accounts, and money market deposits. The company?s loan portfolio comprises commercial, real estate, installment, and consumer loans, as well as letters of credit and lines of credit. It also offers brokerage, night deposit, safe deposit box, and automatic teller machine services. United Bancorp provides banking services through its main office and stand alone operations center in Martins Ferry, Ohio; and 19 branches in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties, as well as in the surrounding localities. The company was founded in 1974 and is headquartered in Martins Ferry, Ohio.

Top 10 Dividend Companies To Own In Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Jon C. Ogg]

  This week we have seen dividend hikes from Dow Jones Industrial Average (DJIA)�components Microsoft Corp. (NASDAQ: MSFT) and McDonald’s Corp. (NYSE: MCD). 24/7 Wall St. expects that there will be five, maybe six, more big dividend hike announcements from major companies before the end of 2013.

• [By ]

  McDonald�� is a well-recognized company that fulfills cravings and demand for quick and delicious food choices that many consumers across the globe enjoy. The company continues to adopt new technologies in order to enhance their customer experience. The stock has been rising in recent years but is now pulling back a bit as investors book gains. Over the last four quarters, earnings and revenues have been on the rise, however, investors have expected a little more from the company. Relative to its peers and sector, McDonald’s has been an average year-to-date performer. WAIT AND SEE what McDonald’s does this quarter.

• [By Douglas A. McIntyre]

  The�Fast Food Forward movement to increase pay for people who work at fast-food companies like McDonald�� Corp. (NYSE: MCD)�and Yum! Brands Inc. (NYSE: YUM)�seems to have a fair point. These workers cannot live much above the poverty level if they make only $7.25 an hour, or even $8 or $9. The movement continues to push for a pay level of $15 an hour. Whether or not�that hourly figure would lift these workers to a level where they make enough to support them at a lower middle class level, one aspect of the movement has undercut the Fast Food Forward efforts and will continue to do so. The leader of one of the movement’s largest supporters, the�Service Employees International Union (SEIU), makes well in excess of $250,000 a year. As a matter for fact, the union’s president,�Mary Kay Henry, made nearly $300,000 in 2011.

Top 10 Dividend Companies To Own In Right Now: Matthews International Corporation(MATW)

Matthews International Corporation designs, manufactures, and markets memorialization products and brand solutions for the cemetery and funeral home industries in the United States, Mexico, Canada, Europe, Australia, and Asia. The company's Bronze segment offers cast bronze memorials and other memorialization products; and cast and etched architectural products, as well as builds mausoleums. Its Casket segment provides wood and metal caskets; and casket components, such as stamped metal parts, metal locking mechanisms for gasketed metal caskets, adjustable beds, interior panels, and plastic ornamental hardware, as well as provides assortment planning and merchandising, and display products to funeral service businesses. The company's Cremation segment offers cremation equipment; cremation caskets; equipment service and supplies; and cremation urns and memorial products, as well as offers environmental systems; crematory operations and management services; and cremation col umbarium and niche units. Its Graphics Imaging segment provides brand management, pre-press services, printing plates, gravure cylinders, steel bases, embossing tools, special purpose machinery, engineering and print process assistance, print production management, digital asset management, content management, and package design services. The company's Marking Products segment offers a range of marking and coding products and related consumables, and industrial automation products for identifying, tracking, and conveying consumer and industrial products, components, and packaging containers. Its Merchandising Solutions segment provides merchandising displays and systems, such as permanent and temporary displays, custom store fixtures, brand concept shops, interactive kiosks, custom packaging, and screen and digitally printed promotional signage; and offers design and engineering services. The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.

Top 10 Dividend Companies To Own In Right Now: United Bancshares Inc.(UBOH)

United Bancshares, Inc. operates as a bank holding company for The Union Bank Company that engages in the provision of commercial banking services to small and middle-market businesses and individuals. It accepts various deposit products, including checking accounts, savings and money market accounts, time certificates of deposit, time deposits, and demand deposits. The company also offers various loan products that consist of commercial, consumer, agricultural, residential mortgage, and home equity loans. In addition, it provides automatic teller machine services, safe deposit box rentals, and other personalized banking services. The company serves primarily in the Ohio counties of Allen, Hancock, Putnam, Sandusky, Van Wert, and Wood, as well as with office locations in Bowling Green, Columbus Grove, Delphos, Findlay, Gibsonburg, Kalida, Leipsic, Lima, Ottawa, and Pemberville, Ohio. United Bancshares, Inc. was founded in 1904 and is headquartered in Columbus Grove, Ohio.< /p>

Top 10 Dividend Companies To Own In Right Now: Xcel Energy Inc.(XEL)

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electricity to residential, commercial, and industrial customers, as well as to public authorities in the United States. The company generates electricity using coal, nuclear, natural gas, hydro, wood, diesel, and wind energy. It also engages in the purchase, transportation, distribution, and sale of natural gas to residential, commercial, and industrial customers. The company serves customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. As of December 31, 2010, it provided electricity services to 3,391,611 customers; and natural gas services to 1,893,250 customers. Xcel Energy, through its joint venture interests in WYCO Development LLC, develops and leases natural gas pipeline, storage, and compression facilities. The company was founded in 1909 and is based in Minneapolis, Minnesota.

Advisors' Opinion:

• [By Shauna O'Brien]

  Jefferies announced on Wednesday that it has raised its rating on Xcel Energy Inc (XEL).

  The firm has upgraded XEL from “Hold” to “Buy,” and has raised the company’s price target from $31 to $32.50. This new price target suggests a 15% upside from the stock’s current price of $27.72.

  Analyst Paul B. Fremont commented: “The stock is currently trading at an 8% P/E discount to our 2015E group average multiple.”

  “Despite a difficult political environment in Minnesota the company was able to achieve a reasonable outcome in its NSP-Minnesota rate case,” the analyst added.

  Looking forward, the firm has increased its FY2014 outlook from $1.95 to $2.00 per share.

  Xcel Energy shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.

Top 10 Dividend Companies To Own In Right Now: Littelfuse Inc.(LFUS)

Littelfuse, Inc. designs, manufactures, and sells circuit protection devices for use in the automotive, electronic, and electrical markets in the Americas, Europe, and the Asia-Pacific. The company offers electronic circuit protection products, such as fuses and protectors, positive temperature coefficient resettable fuses, varistors, polymer electrostatic discharge suppressors, discrete transient voltage suppression diodes, TVS diode arrays and protection thyristors, gas discharge tubes, and power switching components, as well as fuseholders, blocks, and related accessories under PICO II, and NANO2 SMF, TECCOR, SIDACtor, and Battrax brand names. It offers its electronic circuit protection products for use in wireless telephones, consumer electronics, computers, modems, telecommunications equipment, telephones, data transmission lines, and alarm systems. The company also provides automotive fuses that are used in automobiles, trucks, buses, and off-road equipment to protec t electrical circuits and the wires that supply electrical power to operate lights, heating, air conditioning, radios, windows, and other controls, as well as offers fuses for the protection of electric and hybrid vehicles. It markets its automotive fuse products under ATO, MINI, MAXI, MIDI, MEGA, MasterFuse, JCASE, and CablePro brand names. In addition, Littelfuse manufactures various low-voltage and medium-voltage circuit protection products, such as power fuses that are used in the protection from over-load and short-circuit currents in motor branch circuits, heating and cooling systems, control systems, lighting circuits, and electrical distribution networks to electrical distributors and their customers in the construction, original equipment manufacturers, and industrial maintenance and repair and operating supplies markets. Littelfuse sells its products through direct sales force and manufacturers? representatives. The company was founded in 1927 and is headquartered in Chicago, Illinois.

Hot Performing Companies For 2014

Stocks tied to consumer spending have been huge winners lately. Thanks to elevated consumer confidence, folks are feeling optimistic and starting to open their wallets. But this news has investors wondering if good stock buys still exist in the consumer goods space.

Dissecting the sector
Just last month, The Conference Board reported that the Consumer Confidence Index hit a five-year high. The real estate recovery is under way, and the job market is slowly rebounding. Despite a payroll tax increase that took effect at the beginning of the year, consumers are loosening the purse strings and feeling good these days. In fact, consumer spending rose at the fastest pace in two years during the first quarter of this year.�

Consumer discretionary stocks, which span industries like autos, apparel, leisure, and media, enjoy more upside during a robust economy and typically outperform the overall market when the economy is purring. For example, from the March 2009 market doldrums to present, the consumer discretionary�sector returned 282% versus 175% for S&P 500. So far this year, it's been the best-performing sector, returning nearly 26% versus the S&P 500's 20%.�

Hot Performing Companies For 2014: Concurrent Computer Corporation(CCUR)

Concurrent Computer Corporation provides solutions that enable the seamless delivery, management, and monetization of video on any screen. Its screen-independent video delivery and media data solutions create a 360 degree view of the consumer video experience, which is built on video firsts and patented technology. The company provides advanced advertising to customers in the cable, telecommunications, wireless, Web, advertising, and content development industries by harnessing the full potential of video. Its video solutions consist of software, hardware, and services for streaming video and collecting media data based on cross services data aggregation, logistics, and intelligence applications; and real-time products consist of Linux and other real-time operating systems, and software development tools to various companies seeking high-performance, real-time computer solutions in the military, aerospace, financial, and automotive markets around the world. Concurrent Comp uter Corporation was founded in 1966 and is headquartered in Duluth, Georgia.

Hot Performing Companies For 2014: Interpump(IP.MI)

Interpump Group SpA, together with its subsidiaries, manufactures and markets high-pressure plunger pumps, high pressure systems, power takeoffs, hydraulic pumps, hydraulic cylinders, and other hydraulic products. The company?s Hydraulic sector produces and sells power take-offs, which are designed to transmit drive from an industrial vehicle engine or transmission to power a range of ancillary services through hydraulic components. This sector also offers hydraulic components comprising spool valves and controls; hydraulic cylinders; and pumps that are used in various applications, including lifting tipping bodies, moving truck-mounted cranes, and operating mixer truck drums. Its Industrial sector provides high and very high-pressure pumps and pumping systems used in a range of industrial sectors for the conveyance of fluids. These pumps are used in various industrial applications, including car wash installations, forced lubrication systems for machine tools, and invers e osmosis systems for water desalination plants; and used for cleaning surfaces, ships, various types of pipes, and for removing machining burr, cutting and removing cement, asphalt, and paint coatings from stone, cement and metal surfaces, as well as used for cutting solid materials. This sector is also involved in the operations of drawing, shearing, and pressing sheet metal, as well as the manufacture and sale of cleaning machinery. The company has operations in Italy, rest of Europe, North America, the Pacific Area, and internationally. Interpump Group SpA is based in S. Ilario d'Enza, Italy.

Best Value Companies To Buy For 2014: Darford Intl Inc(WUF.V)

Darford International Inc. engages in the manufacture and distribution of dog treats and food primarily in Canada and the United States. The company also undertakes private label manufacturing contracts of pet treats. It sells its products under Darford brand name through wholesale distribution and retail partners. The company is headquartered in Vernon, British Columbia.

Hot Performing Companies For 2014: Pilgrim's Pride Corporation(PPC)

Pilgrim's Corp. produces, processes, markets, and distributes fresh and frozen chicken products to retailers, distributors, and foodservice operators primarily in the United States. Its fresh chicken products consist of refrigerated (non-frozen) whole or cut-up chicken; and pre-marinated or non-marinated, as well as prepackaged case-ready chicken, which includes various combinations of freshly refrigerated, whole chickens, and chicken parts. The company also offers a range of prepared chicken products, including portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. In addition, it exports whole chickens and chicken parts to approximately 95 countries, including Mexico, Russia, Puerto Rico, and China. The company was formerly known as Pilgrim's Pride Corporation. Pilgrim's Corp. was founded in 1945 and is headquartered in Greeley, Colorado. Pilgrim's Corp. operates as a subsidiary of JBS USA Holdings, Inc.

Hot Performing Companies For 2014: Reunion Gold Corporation(RGD.V)

Reunion Gold Corporation, an exploration stage company, engages in the acquisition, exploration, and development of mineral properties. It holds 4 prospecting licenses covering 45,729 acres for the exploration and development of manganese in the North West District of Guyana, South America, as well as 2 permissions for geological and geophysical survey comprising 19,770 square kilometers. The company was formerly known as New Sleeper Gold Corporation and changed its name to Reunion Gold Corporation in June 2006. Reunion Gold Corporation is based in Longueuil, Canada.

Hot Performing Companies For 2014: Marani Brands Inc (MRIB)

Marani Brands, Inc. (Marani), incorporated on May 30, 2001, is engaged in the importation and sale of alcoholic beverage products, primarily Marani Vodka, its flagship product. The Company�� primary business is the business of Margrit Enterprises International, Inc. (MEI), which is in the distribution of wine and spirit products manufactured in Armenia. Marani Vodka is made from winter wheat harvested in Armenia, distilled three times, aged in oak barrels lined with honey and skimmed dried milk, then filtered 25 times. Bottling of the product occurs at the Eraskh distillery in Armenia. On April 4, 2008, the Company, FFBI Merger Sub Corp. and MEI executed, and on April 7, 2008, the parties closed, a three party Merger Agreement.

The Company purchases all of its products from a single supplier, Eraskh Winery, Ltd., under an exclusive distribution agreement with Eraskh, an Armenian manufacturer of wine and other spirits. The new bottles for Marani Vodka are being manufactured in France by Saver Glass Company and China by Universal Group Co., Ltd. and shipped to Armenia to be filled at Eraskh. The Company�� product is being distributed by Southern Wine & Spirits of America, Inc. (SWS), in Southern California, in conjuction with PLCB Pennsylvania and Nevada. SWS is an alcoholic beverage distributor in the United States. The Company has established additional distributors, such as QV Distributors in Arizona and Wein-Baur in Illinois.

The Company competes with Diageo, Pernod Ricard, Bacardi and Brown-Forman.

Hot Performing Companies For 2014: China Housing & Land Development Inc.(CHLN)

China Housing & Land Development, Inc., through its subsidiaries, engages in the acquisition, development, management, and sale of commercial and residential real estate properties primarily in the People?s Republic of China. The company?s projects include multi-family residential, commercial, and hotel projects. It serves first time home buyers and first time up-graders. The company was founded in 1999 and is headquartered in Xian, the People?s Republic of China.

Hot Performing Companies For 2014: Responsys Inc.(MKTG)

Responsys, Inc. provides on-demand software and professional services primarily in North America, the Asia Pacific, and Europe. The company offers Responsys Interact suite, a software-as-a-service platform that provides marketers with a set of integrated applications to create, execute, optimize, and automate marketing campaigns in various channels, including email, mobile, social, and the Web. Its platform also leverages third-party applications and data from real-time sources allowing customers to deliver targeted content to its customers and known prospects as part of their interactive marketing campaigns. In addition, it provides professional services, such as strategic, creative, deliverability, campaign, and education services. The company offers its on-demand software and professional services to retail and consumer, travel, financial services, and technology industries through a direct sales force. Responsys, Inc. was founded in 1998 and is headquartered in San Bru no, California.

8 Out of 10 Americans Subject to Financial Fraud

NEW YORK (MainStreet) -- Financial fraud is common, costly and frequently unreported. Announcing the results of a new survey, the FINRA Investor Education Foundation also says many investors are unable to recognize the signs of a potential scam.
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Money hustles are nearing epidemic proportions, costing Americans over $50 billion a year. More than 8 out of 10 of survey respondents said they had been pitched a fast one, with 11% admitting they had lost a "significant amount of money" on such swindles.

"When it comes to financial fraud, America is a nation at risk," says FINRA Foundation President Gerri Walsh. "Fraudsters are very effective at reaching and enticing vulnerable populations into turning over their money, and far too few Americans are able to detect likely fraudulent sales pitches."
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The survey of nearly 2,400 U.S. adults age 40 and older revealed that over 40% of those surveyed cannot identify some classic warning signs of financial fraud, including unrealistic returns and "fully guaranteed" investments. Senior Americans are most likely to be targeted by fraudsters and 34% more likely to lose money than respondents in their 40s. Common cons included: 67% of survey respondents said they had received an email from another country offering a large amount of money in exchange for an initial deposit or fee. 64% had been invited to an "educational" investment meeting that was likely a sales pitch 36% had received a letter stating they had won a lottery in another country, including a cashier's check as an advance payment. 30% had received recommendations to purchase a penny stock. 24% had been cold-called by a stranger offering an investment opportunity. 18% had been asked to participate in an investment that offered a commission for referring other investors.
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Although 11% of those surveyed lost money in a likely scam, only 4% admitted to being a victim of fraud when asked directly -- an estimated under-reporting rate of over 60%. When asked why fraud victims did not report the fraud, the most cited reply was "would not have made a difference" (53%), followed by "didn't know where to turn" (40%), "wanted to put it behind me" (32%), and "was embarrassed" (27%). Most shakedowns are initiated through mail or Internet solicitations with free lunch seminars the most effective manner used to engage prospective victims. --Written by Hal M. Bundrick for MainStreet

5 Stocks Rising on Big Volume

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

>>5 Hated Earnings Stocks You Should Love

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

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock. >>5 Stocks Ready for Breakouts With that in mind, let's take a look at several stocks rising on unusual volume today.

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Blackstone Group (BX) is an alternative asset manager and a provider of financial advisory services. This stock closed up 3.8% to $23.70 in Monday's trading session.

Monday's Volume: 9.83 million Three-Month Average Volume: 4.55 million Volume % Change: 215% >>5 Rocket Stocks to Buy as Mr. Market Climbs From a technical perspective, BX gapped notably higher here right above its 50-day moving average of $22.40 with heavy upside volume. This move is quickly pushing shares of BX within range of triggering a major breakout trade. That trade will hit if BX manages to take out Monday's high of $23.78 and then once it clears its 52-week high at $24.31 with high volume. Traders should now look for long-biased trades in BX as long as it's trending above $23 or above its 50-day at $22.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.55 million shares. If that breakout hits soon, then BX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $32.

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Hilltop (HTH) operates as a holding company for PlainsCapital Bank that provides business and consumer banking services in Texas. This stock closed up 8.7% at $17.96 in Monday's trading session.

Monday's Volume: 2.29 million Three-Month Average Volume: 414,214 Volume % Change: 436% >>5 Stocks Under $10 Set to Soar From a technical perspective, HTH gapped up sharply higher here back above its 50-day moving average of $16.52 with strong upside volume. This move pushed shares of HTH into breakout and new 52-week-high territory, since the stock closed above some previous resistance at $17.63. Traders should now look for long-biased trades in HTH as long as it's trending above Monday's low of $17.07 and then once it sustains a move or close above its new 52-week high at $18.23 with volume that this near or above 414,214 shares. If we get that move soon, then HTH will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $23.

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Star Bulk Carriers (SBLK) provides worldwide transportation of drybulk commodities through its vessel-owning subsidiaries for a range of customers and minor bulk cargoes including iron ore, coal, grain, cement and fertilizer. This stock closed up 7.9% at $10.58 in Monday's trading session.

Monday's Volume: 243,000 Three-Month Average Volume: 64,367 Volume % Change: 228% >>5 Stocks With Big Insider Buying From a technical perspective, SBLK jumped sharply higher here right above some near-term support at $9.47 with above-average volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $5.37 to its recent high of $11.53. During that move, shares of SBLK have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SBLK within range of triggering a near-term breakout trade. That trade will hit if SBLK manages to take out its 52-week high at $11.53 and then once it clears some past resistance at $11.98 with high volume. Traders should now look for long-biased trades in SBLK as long as it's trending above near-term support at $9.47 and then once it sustains a move or close above those breakout levels with volume that hits near or above 64,367 shares. If that breakout triggers soon, then SBLK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $14 to $15.

Best Gold Stocks To Watch Right Now

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Invacare (IVC) designs, manufactures and distributes a line of health care products for the non-acute care environment, including the home health care, retail and extended care markets. This stock closed up 2.3% at $16.73 in Monday's trading session.

Monday's Volume: 218,000 Three-Month Average Volume: 143,188 Volume % Change: 75% >>4 Red-Flag Stocks to Sell This Fall From a technical perspective, IVC jumped higher here right above some near-term support at $16 with above-average volume. This move briefly pushed shares of IVC into breakout territory, since the stock flirted with some past resistance at $16.81. This move is also close to pushing shares of IVC above the upper-end of its recent sideways trading price action, that has seen IVC trade between $14.92 on the downside and $16.81 on the upside. Traders should now look for long-biased trades in IVC as long as it's trending above its 50-day at $15.75 and then once it sustains a move or close above Monday's high of $16.84 with volume that's near or above 143,188 shares. If we get that move soon, then IVC will set up to re-test or possibly take out its next major overhead resistance levels at $18.24 to $19.15.

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Portland General Electric (POR) is a vertically integrated electric utility engaged in the generation, purchase, transmission, distribution and retail sale of electricity in the state of Oregon. This stock closed up 2.1% at $28.21 in Monday's trading session.

Monday's Volume: 1.89 million Three-Month Average Volume: 732,569 Volume % Change: 145% From a technical perspective, POR gapped up modestly higher here right above its recent low of $27.57 with strong upside volume. This stock has been downtrending badly for the last month and change, with shares dropping from its high of $33.26 that low of $27.57. During that downtrend, shares of POR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of POR could be setting up to see an end to its recent downside volatility in the short-term. Shares of POR could easily rebound here off oversold levels, since its current relative strength index reading is 39.74. Traders should now look for long-biased trades in POR as long as it's trending above that recent low of $27.57 and then once it sustains a move or close above some near-term overhead resistance at $28.50 with volume that's near or above 732,569 shares. If we get that move soon, then POR will set up to re-test or possibly take out its next major overhead resistance levels at $29 to its 200-day at $29.45. Any high-volume move above those levels will then give POR a chance to tag its 50-day at $30.09 to more near-term overhead resistance at $31. To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS: >>5 REITs That Call Bernanke's Bluff >>Why Wall Street Got Apple Wrong >>5 Big Trades to Take Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

PepsiCo: Why Strategy Matters

The long-waged soda wars between Coca-Cola (NYSE: KO  ) and PepsiCo (NYSE: PEP  ) have taken an interesting turn that investors should carefully consider. While it's easy to group the two soda juggernauts together as equals, there are stark differences in leadership direction forming, and each company has made a decision on its future trajectory.

Coca-Cola has decided that it wants to remain a pure-play sparkling beverage company, while Pepsi has decided to break out into food products. The strategic visions of each company are clear and distinct, and investors should weigh each carefully before making a decision to jump in to either stock.

Slow and stodgy? Not so much
It's tempting to assume Coca-Cola and Pepsi to be two lumbering giants, operating in a slow-moving industry with limited avenues for future growth. However, when it comes to growth, investors may well be surprised. Coca-Cola has grown its sales at a compounded annual rate of 10.7% since 2008. Pepsi, meanwhile, has grown revenue by 11%, compounded annually, over the same period.

This strong growth has allowed both Coca-Cola and PepsiCo to deliver outstanding shareholder rewards over the past five years. Both companies are among the market's premier dividend-paying stocks, and dividend growth in recent years has been no exception. Coca-Cola and PepsiCo maintain impressive dividend track records, having increased dividends for 51 and 41 years in a row, respectively.

Where the growth is going forward
On the subject of future growth, there's a clear difference in the paths being charted by Coca-Cola and Pepsi. While Coca-Cola has remained steadfast in its position as a purely sparkling beverage company (evident by the fact that sparkling beverages make up approximately three-fourths of the company's revenue),Pepsi has meaningfully branched out into other product areas.

Consider that Pepsi's revenue is almost evenly split between food and beverages. Last year, the food-beverage mix was 51% and 49%, respectively.Clearly, Pepsi has decided to be a diversified food and beverage company to take advantage of the ever-evolving consumer landscape. Pepsi now operates a broad snack and food business, with world-class brands such as Frito-Lay and Gatorade under its umbrella.

The company has even made strides in healthier product alternatives through its Quaker Oats brand and specialty products like Sabra hummus and Naked juices. All told, Pepsi now holds 22 brands that each account for at least $1 billion in annual sales.

Case volumes of sparkling beverages in the United States have flat-lined in recent years, which gives me pause about Coca-Cola's future. However, it's absolutely true that international growth remains strong, particularly in the emerging markets. This is where I believe Coca-Cola has a distinct advantage: Its premier brand, indicated by the fact that Coca-Cola and Diet Coke are the top-two selling sparkling beverages, optimally positions it to take advantage of above-average growth in developing economies.

A smaller industry player to consider
Similar to Coca-Cola in terms of product offerings is Dr. Pepper Snapple Group (NYSE: DPS  ) , which, like its big brother, relies exclusively on beverages. Even though Dr. Pepper Snapple is a much smaller competitor, with a $9 billion market capitalization, it offers a compelling investment case. That's because not only does Dr. Pepper Snapple offer more growth potential, due to its much smaller size, but it's also cheaper than its larger rivals on most valuation metrics.

While the S&P 500 index trades for a trailing earnings multiple in the high teens, Dr. Pepper Snapple exchanges hands for just 15 times earnings. It's attractively priced when compared to its industry competitors as well, as its multiple is significantly below Coca-Cola's 20 P/E and Pepsi's 18 P/E. And, Dr. Pepper's 3.5% dividend yield stands above its peers' payouts.

However, it appears Dr. Pepper Snapple trades for a measurable discount for a good reason, which is its underwhelming growth over the past five years. Since 2008, it's grown its sales by just 1.2% compounded annually.Moreover, its balance sheet has deteriorated: The company's shareholder equity and total assets have declined, while its debts have grown. As a result, investors would be wise to focus on its two larger peers.

Valuation and strategy make Pepsi the beverage stock to buy
Pepsi holds a more attractive valuation than Coca-Cola at recent prices, and in my estimation, a better outlook. Consumers are widely adopting healthier lifestyles, shying away from traditional high-calorie sparkling beverages. To be fair, Pepsi still holds many products that don't exactly cater to healthy living, but at the same time it isn't blindly denying the trend to the extent Coca-Cola is.

Pepsi has meaningfully split its business between food and beverages, and within each category, owns plenty of brands that appeal to calorie-conscious consumers. As a result, despite Coca-Cola's attractive emerging market growth potential, I believe the future to be brighter for Pepsi thanks to its visionary management. 

Strategy and Dividends
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

 

Where Will Yum! Brands Go Next?

With shares of Yum! Brands (NYSE:YUM) trading around $70, is YUM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Yum! Brands is a quick service restaurant company based on number of system units, with approximately 37,000 units in more than 120 countries and territories. The company, through its three concepts of KFC, Pizza Hut and Taco Bell, develops, operates, franchises and licenses a worldwide system of restaurants, which prepare, package and sell a menu of priced food items. As convenience foods continue to rise in popularity worldwide, Yum! Brands is able to provide the food items highly demanded by consumers worldwide. Through its segments, Yum! Brands will continue to supply its world audience with quick and tasty items for many years.

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T = Technicals on the Stock Chart are Strong

Yum! Brands stock has seen a consistent uptrend extending back to the early 2000s. The stock has made new all-time highs just about every year and looks to be headed there this year as well. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Yum! Brands is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Yum! Brands options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Yum! Brands Options	20.26%	6%	5%

What does this mean? This means that investors or traders are buying a very small amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
June Options	Average	Average
July Options	Average	Best Heal Care Stocks To Watch For 2014 Average

As of today, there is an average demand from call and put buyers or sellers, neutral over the next two months. To summarize, investors are buying a very small amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Yum! Brands’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Yum! Brands look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-7.89%	-2.67%	25%	6.15%
Revenue Growth (Y-O-Y)	4.89%	1.02%	9.01%	12.5%
Earnings Reaction	7.01%	-2.9%	7.49%	0.47%

Yum! Brands has seen increasing earnings and revenue figures over most of the last four quarters. From these figures, the markets have been upbeat about Yum! Brands’s recent earnings announcements.

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P = Poor Relative Performance Versus Peers and Sector

How has Yum! Brands stock done relative to its peers, McDonald’s (NYSE:MCD), Wendy’s (NASDAQ:WEN), Jack In The Box (NASDAQ:JACK), and sector?

	Yum! Brands	McDonald’s	Wendy’s	Jack In The Box	Sector
Year-to-Date Return	1.25%	13.46%	20.34%	20.45%	11.88%

Yum! Brands has been a relative performance leader, year-to-date.

Conclusion

Yum! Brands provides essential food items to consumers in various countries around the world. The stock has made a significant run higher over the last several years but has been consolidating slightly below all-time highs for the last few months. Earnings and revenue figures have been showing a steady increase over the last several quarters which has kept investors happy. Relative to its peers and sector, Yum! Brands has trailed in year-to-date performance. WAIT AND SEE what Yum! Brands does this coming quarter.

Top 5 Dividend Stocks To Buy Right Now

LONDON --

Royal Dutch Shell
Shares in super-major�Royal Dutch Shell� (LSE: RDSB  ) (NYSE: RDS-B  ) are down 1.4% so far this year. The shares have actually declined 5.4% in the last month alone.

In the last month, oil prices have fallen almost 5%. There are three reasons for this, all related to demand for the product.

First, the shale gas boom in the U.S. has delivered a plentiful alternative source of energy. Second, fears of global economic stagnation have inspired futures traders to start selling oil contracts. Third, a report last week confirmed that U.S. oil inventories reached highs not seen in over 20 years.

Analysts expect that Shell will pay $1.84 in dividends for 2013 and make $4.14 per share of profits. That's a prospective yield of 5.7% and a price-to-earnings (P/E) ratio of just 7.9.

Top 5 Dividend Stocks To Buy Right Now: CCA Industries Inc.(CAW)

CCA Industries, Inc. engages in manufacturing and selling health and beauty aid products primarily in the United States and Canada. The company primarily offers toothpastes and teeth whiteners under the Plus+White brand; anti-aging skin care products under the Sudden Change brand; nail care treatments under the Nutra Nail and Power Gel brands; medicated topical and shave gels under the Bikini Zone brand; diet supplements under the Mega-T Green Tea brand; and gums and mint products under the Mega?T Green Tea brand. It also provides hair removal and depilatory products under the Hair Off brand; foot-care products under the IPR brand; sun-care products under the Solar Sense brand; shampoos and conditioners under the Wash ?N Curl brand; vanilla fragrances, including perfumes under the Parfume de Vanille brand; ear-care products under the Lobe Wonder brand; topical analgesic products under the Pain Bust*R II brand; and scar diminishing cream under the Scar Zone brand. CCA Indus tries, Inc. markets and sells its products through its sales force, independent sales representatives, and distributors to drug, food, and mass-merchandise retail chains, as well as to warehouse clubs and wholesalers. The company was founded in 1983 and is based in East Rutherford, New Jersey.

Top 5 Dividend Stocks To Buy Right Now: Telefonica SA(TEF)

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone; local, domestic, and international long distance and fixed-to-mobile communications; corporate communications; video telephony; supplementary and business-oriented value-added services; network services; leasing and sale of handset equipment; and telephony information services. The company?s Internet and broadband multimedia services comprise Internet service provider service; portal and network services; retail and wholesale broadband access; narrowband switched access to Internet; naked ADSL, a broadband connection; residential-oriented value-added services; companies-oriented value-added services; television services, such as IPTV, cable television, and satellite television; and Fiber to the Home, a service for high speed Internet access and digital video recording. Its data and business-solutions services principally include leased lines; virtual private network services; fiber optics services; the provision of hosting and application; outsourcing and consultancy services; desktop services; and system integration and professional services. The company?s wholesale services for telecommunication operators primarily comprise domestic interconnection services; international wholesale services; leased lines for other operators? network deployment; local loop leasing under the unbundled local loop regulation framework; and bit stream services. It also offers various mobile and related services and products that include mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and trunking and paging services. The company has a strategic alliance with China Unicom (Hong Kong) Limited. Telefonica, S.A. was founded in 1924 and is headquartered in Madrid, Spai n.

Advisors' Opinion:

• [By Conrad]

  Telefonica (TEF) is acting within the foreign telecom services industry. The company has a market capitalization of $89.2 billion, generates revenues in an amount of $85.4 billion and a net income of $13.0 billion. It follows P/E ratio is 6.8 and forward price to earnings ratio 8.1, Price/Sales 1.0 and Price/Book ratio 3.1. Dividend Yield: 10.1 percent. The return on equity amounts to 48.1 percent.

Top Stocks To Own Right Now: 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 To Buy Right Now: JDS Uniphase Corporation(JDSU)

JDS Uniphase Corporation provides communications test and measurement solutions, and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers, and enterprises worldwide. The company?s Communications Test and Measurement segment supplies instruments, software, and services to enable the design, deployment, and maintenance of communication equipment and networks. Its product portfolio consists of test tools, platforms, software, and services for wireless and fixed networks. The company?s Communications and Commercial Optical Products segment offers components, modules, subsystems, and solutions that are used by communications equipment providers for telecommunications and enterprise data communications. This segment?s products comprise transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters, and circ ulators, which enable the transmission of video, audio, and text data through fiber-optic cables. It also provides various laser products, including diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers for micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping; and photovoltaic products, such as concentrated photovoltaic cells and receivers for generating energy from sunlight, as well as fiber optic-based systems for delivering and measuring electrical power. The company?s Advanced Optical Technologies segment offers optical solutions for security and brand-differentiation applications; and thin film coatings for a range of public and private-sector markets. This segment also provides multilayer product-security solutions that deliver overt, covert, forensic, and digital product and document verification. JDS Uniphase Corporation was founded in 1979 and is headquartered in Milpitas, Califo rnia.

Advisors' Opinion:

• [By Eric Fox]

  JDS Uniphase (Nasdaq:JDSU) also beat street estimates on earnings and revenues when it reported its results in early February, ending up 38% in February. The company reported non-GAAP earnings of $0.12 per share compared to an estimate of $0.09 per share. It should be noted that the company lost $19.5 million on a GAAPbasis. 

• [By he Fiscal Times]

  JDS Uniphase  (JDSU +0.85%), like Akamai, is a name that will be familiar to anyone who watched the big technology bubble of the 1990s take shape. It has been a volatile ride ever since, and the company's earnings are flagging, but the telecommunications technology provider, which specializes in optical products, offers rising revenues and adequate cash flow. The company got a boost in December from the decision by Piper Jaffray analyst Troy Jensen to boost his price target to $16 from $12 (the stock now trades at about $14 a share). Jensen's bullishness stems from a conviction that spending by telecom companies is about to take an upward turn, and that JDS Uniphase is likely to be one of the beneficiaries as its customers move to improve their network infrastructures later this year. JDS Uniphase climbed 16.2% in December.

Top 5 Dividend Stocks To Buy Right Now: YPF Sociedad Anonima(YPF)

YPF SOCIEDAD ANONIMA, an energy company, engages in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG) in Argentina. The company also involves in refining, marketing, transportation, and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals, LPG, and bio-fuels; and gas separation and natural gas distribution operations. As of December 31, 2010, it had proved reserves of approximately 531 million barrels of oil and 2,533 billion cubic feet of gas; and retail distribution network of 1,622 YPF-branded service stations for automotive petroleum products. The company?s crude oil transportation network includes approximately 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products; crude oil tankage of approximately 7 million barrels; and terminal facilities at 5 Argentine ports. In addition, it participates in 3 power stations with an aggregate installed capacity of 1,622 megawatts. The company was founded in 1977 and is based in Buenos Aires, Argentina. YPF SOCIEDAD ANONIMA is a subsidiary of Repsol YPF, S.A.

Advisors' Opinion:

• [By Fabian]

  YPF (YPF) is acting within the oil and gas refining and marketing industry. The company has a market capitalization of $15.4 billion, generates revenues in an amount of $11.1 billion and a net income of $1.4 billion. It follows P/E ratio is 10.7 and forward price to earnings ratio 9.9, Price/Sales 1.4 and Price/Book ratio 3.1. Dividend Yield: 8.1 percent. The return on equity amounts to 29.3 percent.

Reality After Ballmer and Gates: Microsoft Now Just Another Tech Stock

Microsoft Corp. (NASDAQ: MSFT) was the beneficiary late last week on news that Steve Ballmer has decided to retire. The news drove shares up roughly 7% to $34.75 on massive trading volume, and shares are currently giving back some of the great gains on Monday. The news is a positive in the sense that investors will no longer have Ballmer to blame for a lack of new catalysts and sitting on the laurels of the past. The problem is that in the post-Bill Gates, and now post-Ballmer, era, Microsoft will be evaluated just like any other technology stock. Microsoft may also have the problem that there is no other known “next Steve Jobs” candidates, and it is possible that an internal candidate may have to rise to the occasion.

Over the weekend came reports from Barron’s that Wall Street is cheering Ballmer’s exit. Then Barron’s wrote on Monday questioning whether Microsoft has become a graveyard for new ideas. 24/7 Wall St. has even gone as far as to try to see which other CEOs from outside may be solid candidates to take over as Microsoft CEO.

Top Blue Chip Stocks To Watch Right Now

So, back to how the valuation will start to take place. Bill Gates and Steve Ballmer are no ordinary men, even if the Microsoft stock performance over the past decade has been less than ordinary. These two men did help drive Microsoft to still be one of the most powerful corporations in the world. The growth and expansion of Microsoft has created billions in wealth, including the world’s richest man. Without the co-founders, Microsoft likely will be evaluated no differently than any other technology stocks.

First and foremost, any new CEO will have to evaluate the very recent Ballmer reorganization that left many outsiders scratching their heads. The company’s next fiscal year-end is June of 2014, and the $2.75 consensus in earnings per share from Thomson Reuters gives Microsoft a valuation of 12.4 times expected earnings. That is not expensive for the stock market by any means, but there are many technology giants trading at cheap valuations.

A new CEO has to evaluate Microsoft devices such as the tablets and smartphones, as well as the Xbox One. The company is ripe for a breakup, even if that is truly a risky strategy. Until we have a new CEO announcement, Microsoft’s valuation is likely going to garner no premium and may even trade at a discount compared to other technology giants.

Keep Your Eye on Rates

For the week ahead, MoneyShow's Jim Jubak suggests you keep an eye on one key measure of interest rates to see if an important level is overcome.

For the week ahead, I think you ought to watch yield on the 10-year US treasury. It's been creeping higher, but people aren't really paying much attention to it. It's higher because of Syria, or problems in emerging markets, or general turmoil, but what we're looking at is the yield closing in at 3%, and I think what happens at 3% is everybody goes "Oh, my God!" and they finally notice, and I think that makes 3% kind of an important benchmark, at least in terms of market sentiment.

I don't think it's actually very important in the real world, whatever that is, but I think it's going to create a fair amount of turmoil, because people suddenly start to pay attention to it, it's going to seem important, and you're going to wind up with a lot of stories and commentary from Wall Street, et cetera, talking about, "Well, now that we're 3%, where do we go from here?"

Right now the yield on the 10-year treasury is somewhere around 2.89, a year ago it was a whole 100 basis points lower. A month ago it was at 2.6, so you're seeing a pretty decent move up, in even, the last month, so there's clearly momentum for this, and the driver on this is worry about the fed starting to taper off its buying of treasuries and mortgage backed securities, somewhere around its meeting on September 18. That's why you're seeing yields rise and that's why I think you've got a good chance of seeing them get to 3%.

When that happens, I think you're going to get a massive overreaction, panic in the bond market because bond prices go down as yields go up, so people who have already taken big losses are likely to pull money out, or you're going to see selling. You're going to see more turmoil in emerging markets because with a 3% yield, the 10-year US treasury starts to look really, really good in comparison to the bonds of other countries and other assets. I think this will take a bite out of the US stock market. All these things suggest that 3% is going to be a major market event. If it is, and because it is more a market event because of sentiment, I think you might get a decent trade. So if you get to 3% and the market panics for a few weeks, there might be a temporary bottom that you can then trade, buy stuff when it's low, and then trade off when it gets to December, or so.

That's how I would play this. I don't think 3% is going to last for very long, I think it will go down again, because the reason for a 3% yield, fundamentally, long term, is the US economy doing better than expected. I don't think we're going to see growth strong enough to keep the yields at 3%. It's likely to be a short term top, so I'd use it as a trading opportunity.

This is Jim Jubak for the MoneyShow.com video network.