Saturday, November 30, 2013

Top 5 Biotech Stocks To Invest In Right Now

The Motley Fool's health-care show�Market Checkup�focuses this week on cholesterol, one of America's most notable health-care concerns.

High cholesterol may not seem particularly dangerous on the surface, but when you add up the amount of at-risk Americans (71 million) and its link to the nation's most prevalent killer (heart disease, at 600,000 deaths per year), the gravity of the situation becomes quickly apparent. The good news is that pharmaceutical products and healthier lifestyles have contributed to combat this problem head-on.

In this video, health-care analysts David Williamson and Max Macaluso discuss a rare life-threatening form of high cholesterol known as homozygous familial hypercholesterolemia. This genetic disease has recently�received�not one but two treatment options, causing the biotechs responsible to more than double over the past year as their expensive drugs meet an an unaddressed market. Find out which stocks investors should look at and how they could keep their impressive run going.

Top 5 Biotech Stocks To Invest In Right Now: Telik Inc (TELK.PH)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tole rated. In June 2011, the Company initiated a Phase II clini! c! al trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transf usions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolera bility of the combinations was similar to that expected! of e! ac! h drug ! alone.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60 404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multipl e, standard preclinical models of cancer. TLK6059! 6, a pote! nt! VGFR kin! ase inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Top 5 Biotech Stocks To Invest In Right Now: Organovo Holdings Inc (ONVO.PK)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The C ompany has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an aut! om! ated device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

5 Best Value Stocks To Buy Right Now: ArQule Inc.(ARQL)

ArQule, Inc., a clinical-stage biotechnology company, engages in the research and development of cancer therapeutics directed toward molecular targets and biological processes. Its lead product ARQ 197 is non-adenosine triphosphate competitive inhibitor of the c-Met receptor tyrosine kinase, which is being evaluated as monotherapy and in combination therapy in a Phase II clinical development program that includes trials in non-small cell lung cancer, c-Met-associated soft tissue sarcomas, pancreatic adenocarcinoma, hepatocellular carcinoma, germ cell tumors, and colorectal cancer. The company is also developing ARQ 621, a Phase I program focused on inhibition of the Eg5 kinesin spindle protein. Its clinical stage products include ARQ 501, ARQ 761, and ARQ 171, which are designed to kill cancer cells selectively while sparing normal cells through the direct activation of DNA damage response/checkpoint pathways. In addition, the company involves in pre-clinical development o f B-RAF and AKIP Kinase inhibitors. The company has collaborations with Kyowa Hakko Kirin Co., Ltd. and Daiichi Sankyo Co., Ltd. ArQule, Inc. was founded in 1993 and is headquartered in Woburn, Massachusetts.

Top 5 Biotech Stocks To Invest In Right Now: Fuse Science Inc (DROP.PK)

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

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

The Company

Top 5 Biotech Stocks To Invest In Right Now: Navidea Biopharmaceuticals Inc (NAVB)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-center Phase II trial and three multi-center Phase II trials inv! olving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has been studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Advisors' Opinion:
  • [By Keith Speights]

    3. Navidea Biopharmaceuticals (NYSEMKT: NAVB  )
    Some investors were likely befuddled by Navidea's stock action earlier this year. The company received FDA approval in March for Lymphoseek, its radiopharmaceutical agent used for imaging lymph nodes in patients with breast cancer or melanoma. That was great news, but shares dropped quickly and still haven't returned to previous levels.

Friday, November 29, 2013

Gold weakens as Fed stays the course

LOS ANGELES (MarketWatch) — Gold futures trickled lower Thursday in electronic trading, failing to extend gains in the wake of the Federal Reserve's decision to stay the course on its monetary stimulus program.

AFP/Getty Images

Gold for December delivery (GCZ3)  lost another $12.50, or 0.9%, to $1,336.80 an ounce. December silver (SIZ3) , meanwhile, was hit even harder, giving up 59 cents, or 2.7%, to $22.39 an ounce.

Hot Undervalued Stocks To Own For 2014

A day earlier, gold prices rose after data showing a slowdown in U.S. private-sector job growth in October reinforced expectations that the Fed's taper playing won't be taking place anytime soon.

The Federal Reserve decided Wednesday to hold monetary policy steady, saying that conditions remained too weak to pull back from its bond-buying program.

"The question remains how much of this extended [quantitative easing] is gold pricing already?" said Standard Bank's Walter de Wet. "Given that the consensus view is for tapering to start later in 2014, we believe that gold is already reflecting this more accommodative policy stance to a large degree."

The next big event for gold traders to keep an eye on will be next month's Senate confirmation hearing for Janet Yellen as Fed chief. Jeffrey Wright, managing director at H.C. Wainwright, said this should be supportive for gold, considering her dovish stance on monetary policy.

Elsewhere in metals trading, high-grade copper (HGZ3)  shed 2 cents, or 0.6%, to $3.31 a pound, while January platinum (PLF4)  lost $19.90, or 1.4%, to $1,460 an ounce and December palladium (PAZ3)  fell $6.10, or 0.8%, to $743.40 an ounce.

Thursday, November 28, 2013

Asian Stocks Advance on U.S. Economic Optimism, Yen

Asian stocks rose, with Japan's Nikkei 225 Stock Average closing at the highest in six years as the yen touched a sixth-month low against the dollar after U.S. employment and consumer confidence reports boosted optimism in the world's largest economy.

Honda Motor Co. (7203), a carmaker that gets almost half its sales in the U.S. added 1.5 percent. Warrnambool Cheese & Butter Factory Co. advanced 0.8 percent after Murray Goulburn Cooperative Co., Australia's biggest milk processor, raised its takeover offer. Forge Group Ltd. slumped 84 percent in Sydney after the mining-services firm said it will report a 2014 loss.

The MSCI Asia Pacific Index gained 0.7 percent to 142.00 as of 5:04 p.m. in Hong Kong, with all 10 industry groups on the measure rising. More than $8 trillion has been added to the value of global equities this year, the biggest increase since 2009, as central banks took steps to shore up economies worldwide. The Asia-Pacific gauge jumped 9 percent in 2013 through yesterday, while falling 0.9 percent on the month.

"Asia's earnings growth does remain largely leveraged to the global economy," Michael Kurtz, Hong Kong-based head of global equity strategy at Nomura Holdings Inc., said in an e-mail. "Our economists expect the U.S. economy finally to accelerate to a more robust pace in 2014."

Regional Gauges

Japan's Nikkei 225 increased 1.8 percent to 15,727.12, the highest closing level since December 2007. Japan's Topix index rose 1.1 percent as Honda gained 1.5 percent to 4,305 yen. Australia's S&P/ASX 200 Index was little changed, while New Zealand's NZX 50 Index gained 0.2 percent. South Korea's Kospi index added 0.8 percent.

Hong Kong's Hang Seng Index fell 0.1 percent, retreating from a 10-month high. China's Shanghai Composite Index rose 0.8 percent. Singapore's Straits Times Index added 0.5 percent, while Taiwan's Taiex Index climbed 0.8 percent.

Data yesterday showed fewer Americans than projected filed applications for unemployment benefits last week, a sign that the labor market is showing resilience. The Thomson Reuters/University of Michigan final index of consumer sentiment in November unexpectedly rose to 75.1 from 73.2 a month earlier. The median forecast of 65 economists surveyed by Bloomberg called for 73.1.

U.S. Shares

Futures on the Standard & Poor's 500 Index added 0.1 percent, with U.S. exchanges closed today for the Thanksgiving holiday. The S&P 500 has climbed 27 percent this year, heading for the biggest annual gain since 1998, as the Fed pressed on with its stimulus program. The gauge closed at a record 1,807.23 yesterday. About 4.8 billion shares changed hands on U.S. exchanges, the slowest trading since Aug. 26.

Former Federal Reserve Chairman Alan Greenspan said the U.S. economy probably will grow more slowly next year than some forecasters predict and indicated that a record U.S. stock market isn't in a bubble.

Relative Value

The MSCI Asia Pacific Index yesterday traded at 13.9 times estimated earnings, close to the multiple of 14 reached on Nov. 18, which was the highest since May, according to data compiled by Bloomberg. That compares to a current multiple of 16.3 on the S&P 500 and 15.2 for the Stoxx Europe 600 Index.

Bank of Japan Governor Haruhiko Kuroda helped drive a 47 percent surge in Japan's Topix this year by maintaining monetary easing as he and Prime Minister Shinzo Abe sought to jolt the nation out of 15 years of deflation. The Topix is the best performing of 24 developed markets tracked by Bloomberg, on course for its biggest annual advance since 1999.

Warrnambool Cheese rose 0.8 percent to A$9.32. Murray Goulburn, which needs Australian regulator approval for its bid, boosted its offer by 5.6 percent to A$9.50 a share, topping Saputo Inc.'s recommended A$9.20 conditional offer and a cash and share offer from Bega Cheese Ltd.

Cathay Pacific Airways Ltd. added 1.9 percent to HK$16.84 after UBS AG reiterated its buy recommendation and raised its price forecast for Hong Kong's biggest carrier.

Forge tumbled 84 percent to 68.5 Australian cents. Forge, whose clients include Rio Tinto Group, lost more than A$300 million ($274 million) in market value to trade as low as 28.5 cents in Sydney today after saying cost overruns and poor management at two Australian projects also forced it to negotiate new debt terms.

Wednesday, November 27, 2013

Top Insider Trades: GMCR TTWO MUSA AL

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By Jonathan Moreland, founder of Insider Insights and author of Profit From Legal Insider Trading.

NEW YORK (TheStreet) -- It is a victory for common sense. Tracking the trading behavior of company executives, directors and large shareholders in the stocks of firms they're registered in as "insiders" has proven to be profitable, according to both academic studies and (more importantly) the experience of professional investors.

Top Undervalued Companies To Watch In Right Now

Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Tuesday, Nov. 26, 2013 as ranked by dollar value. Please note, however, that these are only factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant. At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing. So use these regular Top Insider Trades columns as the initial research tools they are meant to be, and click the links in the tables to analyze a company's or insider's full insider his

Tuesday, November 26, 2013

Frontier Finds from Mongolia to Vietnam

My case for frontier Asian markets is simple and powerful: Imagine a chance to invest right now in the China of 1980, when its wages were at rock bottom levels, and it exported in a year, what it now does every day, says Carl Delfeld of the Pacific Economic Club.

Frontier countries are far behind developed countries like Japan and America, and even playing catch up with countries like Thailand, South Korea, and China, but they are catching up fast.

Frontier markets offer investors a combination of value, huge upside, and unique challenges. As giants like China run into growing pains, higher costs, and negative returns, frontier markets are up—propelled by easy access to modern communications, technology, and capital.

Youthful populations, and the move of workers from rural areas to higher income jobs in the cities, are supercharging growth in these economies.

This, in turn, explains why big companies from Japan, China, America, Europe, and South Korea are falling over themselves and each other to invest in frontier Asia.

And it's not just lucrative new consumer markets and rising tourism that's driving this wave of capital, but the need to access the region's ample natural resources.

But like maneuvering a motorbike in and out of chaotic traffic, investing in these frontier markets requires experience and steady hands. You might consider the Asia Frontier Fund, which I like for a number of reasons.

First, 46% of its portfolio is in consumer stocks aiming to capture the young and rising consumer class.

Second, I agree with the fund's 20% top weighting to Vietnam, and the intelligent strategy of investing in each country's strengths, such as tourism in Sri Lanka, mining in Mongolia, food companies in Vietnam, and textiles in Bangladesh.

Here's the kicker: many of the companies in the portfolio have significantly lower valuations compared to similar emerging and western companies, making them attractive acquisition targets. As a bonus, the portfolio sports a nice 4.4% dividend yield to cushion risk.

Here are three picks that Asia Frontier Capital CEO and portfolio manager Thomas Hugger likes right now:

Vietnam Sun Corp. (VNS) (Ho Chi Minh stock exchange) is the leading taxi operator in Ho Chi Minh City with a fleet of close to 4,000. The company also has operations in other cities such as Binh Duong, Dong Nai, and Da Nang.

The company will increase fleet size in Ho Chi Minh City and also expand into new markets such as Hanoi. Vietnam Sun Corp. is a good growth story with a reasonable valuation, trading at less than ten times 2013 earnings, and expected net profit growth of 53% in 2013 and 29% in 2014.

Mongolians love their vodka and Mongolia APU (Mongolia stock exchange: APU) is the leading beverage player in that country, with a diverse product range that includes beer, spirits, mineral water, juices, and milk.

Mongolia APU has a 50% plus share of the Mongolian beer and vodka market and 20% of the water and juice market. The stock is trading at 12 times earnings and its pricing power makes it a solid core holding.

As incomes rise in frontier markets, after more and better food, medicine is right at the top of shopping lists. Bangladesh's Beximco Pharma (SEA:BXP) is a leading pharmaceutical manufacturer focusing on generic drugs.

Its manufacturing facilities in Bangladesh have been certified by regulatory bodies of Australia, EU, Middle East nations, and Brazil. The company gained approval to start exporting its products to Europe and Australia and expects US FDA approval by the end of the year.

For a pharmaceutical/healthcare company, its stock is valued very attractively at 4.5 times 2013 earnings considering double-digit revenue growth.

Frontier Asian markets are on the move. Get onboard for a piece of the action, (but wear a helmet).

Subscribe to Pacific Economic Club here…

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Saturday, November 23, 2013

Dow Chemical to Divest Polypropylene Licensing & Catalysts Business for $500M (DOW)

Early on Friday, The Dow Chemical Company (DOW) announced that it has signed a definitive agreement to divest its global Polypropylene Licensing & Catalysts business to W.R. Grace & Co. for a sale price of $500 million.

Dow had previously announced its plans to divest the business in March 2013, as part of its plan to be proactive in its commitment to divest nearly $1.5 billion in assets by mid to late 2014.

The proceeds from the sale will go to pay to shareholders, reduce debt, and fund growth. The transaction is expected to close by the end of 2013.

"Today’s announcement is another clear demonstration of Dow’s rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value," said Andrew N. Liveris, Dow’s chairman and chief executive officer. "Our accelerated strategy is focused on narrowing our market participation and preferentially funding our select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences. We are planning further proactive divestments in the next 12 months in our relentless pursuit of rewarding shareholders."

Dow Chemical shares were up a fraction during pre-market trading on Friday. The stock is up 24.96% year-to-date.

Friday, November 22, 2013

Best- and worst-run states: Survey of all 50

How well run is your state? It can be difficult to objectively assess the quality of a state's management. The economy and standard of living can be affected by decisions made decades ago, forces outside the control of the state's government and administrators, as well as the government's own actions.

Every year, 24/7 Wall St. tries to answer this question by conducting an extensive survey of every state. To determine how well states are managed, we examined their financial data, as well as the services they provide and their residents' standard of living. This year, North Dakota is the best-run state in the country for the second year in a row, while California is the worst-run for the third year in a row.

Identifying appropriate criteria to compare the 50 states can be challenging because they vary so much. Some states have abundant natural resources, while others rely on services or innovation. A few have been burdened by struggling industries. Some are more rural, while others are more urban. Because of such differences, a spending or tax policy that can be beneficial in one state can be disastrous in another.

MORE: States with the fastest growing economies

Many of the best-run states in the nation benefit from an abundance of natural resources. North Dakota, Wyoming, Alaska, and Texas, among the best-run states, are all among the states with the greatest concentration of GDP in the mining industry, which includes activities such as oil and natural gas extraction, as well as coal mining. The presence of this industry benefits states in several ways. North Dakota and Texas led the nation in real GDP growth in 2012, while Alaska has used its oil revenue to establish a permanent fund that pays residents an annual dividend.

The housing crisis has had a major negative impact on a number of the worst-run states. It caused a drastic decline in construction employment in states like Arizona, California, and Nevada. Many of these lost jobs have yet to be replaced. In the hardest-! hit states, this has resulted not only in worsening unemployment, but increased poverty and budget shortfalls. Although the economies of these states have largely improved, the residual effects of the housing crisis remain.

While these can be considered extenuating circumstances, the fact is that each state must deal with the cards it is dealt. Governments must plan for worst-case scenarios, including the collapse of an industry. Several resource-rich states have squandered their advantages and rank poorly on our list. Good governance involves raising and spending enough to provide for the well-being of the population without risking the state's long-term stability.

MORE: States spending the most education

To determine how well the states are run, 24/7 Wall St. reviewed hundreds of data sets from dozens of sources. We looked at each state's debt, revenue, expenditure, and deficit to determine how well it was managed fiscally. We reviewed taxes, exports, and GDP growth, including a breakdown by sector, to identify how each state was managing its resources. We looked at poverty, income, unemployment, high school graduation, violent crime and foreclosure rates to assess the well-being of the state's residents.

While each state is different, the best-run states share certain characteristics, as do the worst run. For example, the populations of the worse-off states tended to have lower standards of living. Violent crime rates in these states were usually higher and residents were much less likely to have a high school diploma.

The worst-run states also tended to have better fiscal management reflected in higher budget shortfalls and lower credit ratings by Moody's Investors Service and Standard & Poors.

The better-run states tended to display stable fiscal management. Pensions were more likely to be fully funded, debt was lower, and budget deficits smaller. Credit ratings agencies also were much more likely to rate the well-run states favorably. Only two poorly run sta! tes recei! ved a perfect credit rating from either agency. California and Illinois, which are ranked worst and third worst, received the lowest ratings from both agencies.

MORE: The most dangerous states in America

The states that were well-managed also tended to have lower unemployment rates. Eight of the 10 states with the lowest unemployment rates ranked as the best-run states. California, Illinois, and Nevada — the states with the highest unemployment rates as of 2012 — were among the five worst-run states.

BEST-RUN STATES

1. North Dakota

> Debt per capita: $3,033 (20th lowest)
> Budget deficit: None
> Unemployment: 3.1% (the lowest)
> Median household income: $53,585 (19th highest)
> Pct. below poverty line: 11.2% (6th lowest)

North Dakota's economic output has surged in the past few years, with GDP climbing 13.4% in 2012, well above the second-fastest growing state, Texas, whose GDP grew by 4.8% in 2012. The Peace Garden State has continued to reap the benefits of fracking in the oil-rich Bakken Shale formation, which accounted for about 90% of the state's oil production in 2012. That year, nearly 10% of North Dakota's total GDP was generated by the mining sector — which includes crude petroleum and natural gas extraction — more than five times the national rate. The state continued to have the nation's lowest unemployment rate, at just 3.1% last year. Because of economic prosperity and the availability of jobs, North Dakota's population grew the most in the country between 2010 and 2012, increasing by 3.7%. This may partly explain recent spikes in property values. Home values in North Dakota skyrocketed 33.4% between 2007 and 2012, by far the largest increase nationally.

2. Wyoming

> Debt per capita: $2,409 (13th lowest)
> Budget deficit: None
> Unemployment: 5.4% (7th lowest)
> Median household income: $54,901 (17th highest)
> Pct. below poverty line: 12.6% (13th lowest)

Wyoming was the natio! n's large! st producer of coal and the third-largest producer of natural gas in 2011. Mining accounted for 28% of the state's GDP in 2012. Additionally, the Cowboy State has the nation's best business tax climate, according to the Tax Foundation, due in part to the lack of corporate or individual income tax. Together, these factors may have contributed to the state's healthy economy, which featured low unemployment and foreclosure rates as of 2012. The state's population is also well-educated. Nearly 92% of adults over 25 years old had a high school diploma last year, better than all but a handful of states. Despite the many positive factors, the state's GDP growth was weak last year, growing at just 0.2%.

3. Iowa

> Debt per capita: $2,478 (15th lowest)
> Budget deficit: 2.5% (41st largest)
> Unemployment: 5.2% (tied-5th lowest)
> Median household income: $50,957 (23rd highest)
> Pct. below poverty line: 12.7% (14th lowest)

Agriculture and related industries accounted for 6.7% of Iowa's GDP last year, six times the national rate. Like many well-run states, it has a perfect credit rating from both Standard & Poor's and Moody's. Additionally, while home values across the nation fell by more than 10% between 2007 and 2012, in Iowa they increased considerably — by 7.1% — over that time. Also, Iowa's unemployment rate and underemployment rate — which includes the unemployed, discouraged workers, and those who work but want to work more — were both among the lowest in the nation last year, at 5.2% and 10%, respectively. Iowa's budget shortfall in fiscal 2012 was under 3%, one of the smallest budget gaps in the country.

4. Nebraska

> Debt per capita: $1,277 (2nd lowest)
> Budget deficit: 4.8% (38th largest)
> Unemployment: 3.9% (2nd lowest)
> Median household income: $50,723 (25th highest)
> Pct. below poverty line: 13.0% (16th lowest)

Nebraska received strong scores for its fiscal management, with a perfect credit ratin! g from St! andard & Poor's and extremely low debt as of fiscal 2011. The state's pension plans were well-funded relative to most other states. Nebraska also faced a total budget shortfall of just 4.8% in fiscal 2012, one of the smaller deficits in the country. Nebraska's unemployment rate was just 3.9% last year, less than any other state except for North Dakota. The Cornhusker State also had an underemployment rate of just 8.8%, the third lowest in the country. Nebraska also performed well in several measures that reflect quality of life. The state's violent crime and poverty rates were lower than the national rates in 2012, while a higher percentage of residents had health insurance, and a high proportion of adults were high school graduates.

5. Utah

> Debt per capita: $2,577 (17th lowest)
> Budget deficit: 8.2% (32nd largest)
> Unemployment: 5.7% (tied-10th lowest)
> Median household income: $57,049 (13th highest)
> Pct. below poverty line: 12.8% (15th lowest)

By several measures, Utah had one of the stronger economies in the country in 2012. The state ranked fifth in exports per capita, and GDP growth was among the highest. The unemployment rate was just 5.7%, compared to a national rate of 8.1%. According to the Tax Foundation, Utah has one of the most business-friendly tax policies in the country. The state's residents also have a relatively good quality of life. The state was among America's safest last year, with just 205.8 violent crimes per 100,000 residents. Educational attainment was also strong, with 91% of residents over the age of 25 holding a high school diploma. The state received the top credit rating from both Standard & Poor's and Moody's, with the latter reasoning that Utah has responsible fiscal management and strong economic fundamentals.

WORST-RUN STATES

50. California

> Debt per capita: $3,990 (20th highest)
> Budget deficit: 27.8% (3rd largest)
> Unemployment: 10.5% (2nd highest)
> Median household! income: ! $58,328 (11th highest)
> Pct. below poverty line: 17.0% (18th highest)

For the third year in a row, California is the worst-run state in America. California faced a nearly $24 billion in budget shortfall in fiscal 2012, including a mid-year shortfall of $930 million and $8.2 billion carried over from the year before. California carries an A credit rating from Standard & Poor's, and an A1 from Moody's — both worse than any other state except for Illinois. Explaining its rating, Moody's pointed to the state's history of one-time solutions to resolve its budgetary gaps. It also noted the state's "highly volatile revenue structure," due to its over reliance on wealthy taxpayers. The Golden State was also among the worst states in the nation for educational attainment, health coverage, and unemployment.

49. New Mexico

> Debt per capita: $3,914 (21st highest)
> Budget deficit: 8.3% (31st largest)
> Unemployment: 6.9% (tied-19th lowest)
> Median household income: $42,558 (6th lowest)
> Pct. below poverty line: 20.8% (2nd highest)

New Mexico ranked this year as the second worst-run state in the country, scoring better than California by only a small margin. One measure that helped put it above California was its credit rating. Standard & Poor's rates the state AA+, and Moody's gives it a perfect Aaa rating. The state's debt load relative to its size was average, and its budget shortfall of 8.3% for going into fiscal 2012 was better than many states. Outside of fiscal management, however, New Mexico performed poorly in several areas in several areas. The state was among the worst 10 nationwide for violent crime, high school graduation rates among adults, and health insurance coverage. More than one in five residents lived below the poverty line in 2012, worse than all states but Mississippi. Last year, state GDP grew by just 0.2%, worse than all but a handful of states.

48. Illinois

> Debt per capita: $5,041 (11th highest)
> ! Budget de! ficit: 18.5% (9th largest)
> Unemployment: 8.9% (10th highest)
> Median household income: $55,137 (16th highest)
> Pct. below poverty line: 14.7% (tied-24th lowest)

Illinois has the worst credit rating in the U.S., having received the lowest rating of any state from both Standard & Poor's and Moody's. Explaining its reasoning, Moody's pointed to the state's underfunded pension and ongoing weak fiscal practices such as bill payment delays. Only 40.4% of the state's pension obligations were funded in 2012, the worst rate in the nation. Illinois also had the fourth-largest debt in the country at the end of fiscal 2011 at nearly $65 billion. The state faced high foreclosure and unemployment rates in 2012, both among the worst in the country.

47. Rhode Island

> Debt per capita: $8,721 (3rd highest)
> Budget deficit: 6.9% (35th largest)
> Unemployment: 10.4% (3rd highest)
> Median household income: $54,554 (18th highest)
> Pct. below poverty line: 13.7% (tied-20th lowest)

Rhode Island had more debt per resident than any other state except for Alaska and Massachusetts as of fiscal 2011. Although its budget shortfall was relatively small in fiscal 2012, the state currently faces unplanned expenses and may have to revise its budget, according to The Providence Journal. Moody's cited the state's eight consecutive years of budget gaps as part of its justification for its relatively poor credit rating. In an attempt to improve funding levels, the state reformed its pension program in 2011, turning its pensions into hybrids with 401(k)-like features, as well as suspending both cost-of-living adjustments and benefit increases. Still, as of last year, the state had funded just over 58% of its pension obligations, compared to a 72.4% average across all states.

46. Nevada

> Debt per capita: $1,548 (6th lowest)
> Budget deficit: 37.0% (2nd largest)
> Unemployment: 11.1% (the highest)
> Median household income: $49,76! 0 (24th l! owest)
> Pct. below poverty line: 16.4% (19th highest)

Nevada was arguably the hardest hit state during the collapse of the housing bubble. Home values fell by more than 50% between 2007 and 2012, the largest decline in the country. And years after it started, Nevada is still reeling from the housing crisis. The state had one of the highest foreclosure rates in the country last year, at one in every 37 homes. The 2012 unemployment rate of 11.1% was the worst in the country. The state's violent crime rate of 607.6 incidents for every 100,000 residents was worse than all but one other state. The state also suffers from low health insurance coverage. More than 22% of the population was without health coverage in 2012, worse than any other state except for Texas. This rate may improve in 2013. The state opted to provide its own health insurance exchange site rather than rely on the widely criticized national exchange site, healthcare.gov. According to the Las Vegas Sun, the state's health care exchange site has been functioning relatively smoothly and hasn't received the same kind of criticism as the national site.

24/7 WALL ST.: Don't see your state? Check out the full list

Methodology

24/7 Wall St. considered data from a number of sources, including Standard & Poor's, Moody's Investors Service the Bureau of Labor and Statistics (BLS), the U.S. Census Bureau, the Tax Foundation, RealtyTrac, The Federal Bureau of Investigation, the Bureau of Economic Analysis (BEA), and the Center on Budget Policies and Priorities (CBPP).

Unemployment data was taken from the U.S. Bureau of Labor Statistics. Credit ratings were from ratings agencies Standard & Poor's and Moody's Investors Service. We relied on the FBI's Uniform Crime Report for violent crime rate by state. RealtyTrac provided foreclosure rates. Pension figures are from Morningstar.

A significant amount of the data we used came from the U.S. Census Bureau's American Community Survey. Data from ACS included pe! rcentage ! of residents below the poverty line, high school completion rates for residents 25 and older, median household income, the percentage of the population without health insurance and median home values from both 2007 and 2012.

Once we reviewed the sources and compiled the final metrics, we ranked each state based on its performance in all the categories. Most figures are for 2012. Debt per capita, obtained from the Tax Foundation, and state budgetary data, which came from the U.S. Census Bureau, are for fiscal year 2011. Figures from the CBPP are for the fiscal year 2012. Credit ratings and the Tax Foundation's rankings for business tax climate are based on the most recently available publications.

Thursday, November 21, 2013

5 Stocks Insiders Love Right Now

DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.

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They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.

>>5 Stocks Set to Soar on Bullish Earnings

At the end of the day, its large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look at five stocks whose insiders have been doing some big buying per SEC filings.

Epizyme

One stock that insides are buying a ton of stock in here is Epizyme (EZPM), which discovers, develops and plans to commercialize personalized therapeutics for patients with genetically defined cancers. Insiders are buying this stock into weakness, since shares are off by 15.5% so far in 2013.

Epizyme has a market cap of $551 million and an enterprise value of $400 million. This stock trades at a premium valuation, with a price-to-sales of 13.13 and a price-to-book of 6.18. Its estimated growth rate for next year is 61.1%. This is a cash-rich company, since the total cash position on its balance sheet is $139.57 million and its total debt is zero.

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A beneficial owner just bought 406,500 shares, or about $8 million worth of stock, at $19.04 to $19.31 per share.

From a technical perspective, EPZM is currently trending well below its 50-day moving average, which is bearish. This stock has been downtrending badly for the last month and change, with shares dropping from its high of $42.71 to its recent low of $18.10 a share. During that move, shares of EPZM have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of EPZM into oversold territory, since its current relative strength index reading is 22.11.

If you're bullish on EPZM, then I would look for long-biased trades as long as this stock is trending above its recent low of $18.10 and then once breaks out above some key near-term overhead resistance at $20.97 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 213,057 shares. If that breakout hits soon, then EPZM will set up for an oversold bounce that could take the stock back towards $24 to $26 a share.

Lumos Networks

Another wireless telecom player that insiders are in love with here is Lumos Networks (LMOS), which provides broadband, voice and IP services through fiber optic network. Insiders are buying this stock into big time strength, since shares are up a whopping 132% so far in 2013.

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Lumos Networks has a market cap of $510 million and an enterprise value of $770 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 32.08 and a forward price-to-earnings of 24.33. Its estimated growth rate for the next quarter is -20%, and for next year it's pegged at 10.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $58.07 million and its total debt is $380.71 million. This stock currently sports a dividend yield of 2.8%.

A beneficial owner just bought 205,000 shares, or above $4.1 million worth of stock, at $20 per share.

From a technical perspective, LMOS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $14.88 to its recent high of $24.72 a share. During that uptrend, shares of LMOS have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LMOS within range of triggering a near-term breakout trade.

If you're in the bull camp on LMOS, then I would look for long-biased trades as long as this stock is trending above is 50-day at $21.33 and then once it breaks out above some near-term overhead resistance levels at $24 to its all-time high at $24.72 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 106,894 shares. If that breakout hits soon, then LMOS will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $33 a share.

Synta Pharmaceuticals

A biopharmaceutical player that insiders are loading up on here is Synta Pharmaceuticals (SNTA), which is engaged in discovering, developing and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions such as cancer and chronic inflammatory diseases. Insiders are buying this stock into big time weakness, since shares are down by 42% so are in 2013.

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Synta Pharmaceuticals has a market cap of $358 million and an enterprise value of $262 million. This stock trades at a premium valuation, with a price-to-book of 24.76. Its estimated growth rate for this year is -18.9%, and for next year it's pegged at 11.1%. This is a cash-rich company, since the total cash position on its balance sheet is $53.38 million and its total debt is $23.51 million.

A director just bought 5 million shares, or about $18.75 million worth of stock, at $3.75 per share. Another director also just bought 150,000 shares, or $562,500 worth of stock, at $3.75 per share.

From a technical perspective, SNTA is currently trending below both is 50-day and 200-day moving averages, which is bearish. This stock has been uptrending for the last few weeks, with shares soaring higher from its low of $3.70 to its intraday high of $5.57 a share. During that uptrend, shares of SNTA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SNTA within range of triggering a near-term breakout trade.

If you're bullish on SNTA, then I would look for long-biased trades as long as this stock is trending above $4.50 or $4.25 and then once it takes out Wednesday's high of $5.57 to its 50-day moving average at $5.79 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 volume of 1.46 million shares. If that breakout triggers soon, then SNTA will set up to re-test or possibly take out its next major overhead resistance levels at $7.10 to $7.30 a share, or even $7.85 a share.

Mellanox Technologies

One semiconductor player that insiders are active in here is Mellanox Technologies (MLNX), which produces and supplies semiconductor interconnect products that facilitate efficient data transmission between servers, storage systems and communications infrastructure equipment and other embedded systems. Insiders are buying this stock into notable weakness, since shares are down by 32% so far in 2013.

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Mellanox Technologies has a market cap of $1.7 billion and an enterprise value of $1.4 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 609.70 and a forward price-to-earnings of 23.69. Its estimated growth rate for this year is -74.4%, and for next year it's pegged at 84.8%. %. This is a cash-rich company, since the total cash position on its balance sheet is $295.55 million and its total debt is just $3.13 million.

A director just bought 57,739 shares, or about $1.99 million worth of stock, at $34.64 per share.

From a technical perspective, MLNX is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending a bit for the last month, with shares moving higher from its low of $32.35 to its recent high of $41.32 a share. During that uptrend, shares of MLNX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MLNX within range of triggering a big breakout trade.

If you're bullish on MLNX, then I would look for long-biased trades as long as this stock is trending above its 50-day at $37.19, and then once it breaks out above some near-term overhead resistance levels at $41.32 to $42.45 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 volume of 846,143 shares. If that breakout hits soon, then MLNX will set up to re-test or possibly take out its next major overhead resistance levels $47 to its 200-day moving average at $47.23 a share. Any high-volume move above those levels will then give MLNX a chance to tag $50 a share.

Inovio Pharmaceuticals

One final name with some decent insider buying is Inovio Pharmaceuticals (INO), which is focused on the development of next-generation vaccines to prevent or treat cancers and chronic infectious diseases. Insiders are buying this stock into massive strength, since shares are up a whopping 328% so far in 2013.

Inovio Pharmaceuticals has a market cap of $443 million and an enterprise value of $370 million. This stock trades at a premium valuation, with a price-to-sales of 31.11 and a price-to-book of 6.49. Its estimated growth rate for this year is -121.4, and for next year it's pegged at 64.5%. This is a cash-rich company, since the total cash position on its balance sheet is $46.17 million and its total debt is zero.

A director just bought 254,500 shares, or about $463,000 worth of stock, at $1.82 per share.

From a technical perspective, INO is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways and consolidating for the last month, with shares moving between $1.63 on the downside and $2.19 on the upside. Traders should now keep an eye on shares of INO for a possible breakout trade if this stock can manage to take out the upper-end of its recent range.

If you're bullish on INO, then look for long-biased trades as long as this stock is trending above some near-term support at $1.86 or at $1.70, and then once it breaks out above some near-term overhead resistance at $2.19 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 6.39 million shares. If that breakout triggers soon, then INO will set up to re-test or possibly take out its next major overhead resistance levels at $2.39 to $2.54 a share, or even $2.92 to its 52-week high at $3.03 a share. Any high-volume move above $3.03 will then give INO a chance to tag $4 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Earnings Short-Squeeze Plays



>>5 Toxic Stocks Sell Before It's Too Late



>>5 Big Stocks to Trade for Big Gains

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.


Sunday, November 17, 2013

5 U.S. Cities Too Dangerous to Move To

BOSTON (TheStreet) -- Americans face about 1-in-30 odds of becoming crime victims in any given year -- but that'll jump to as high as 1 in 7 if you move to some communities atop NeighborhoodScout.com's 2013 Most Dangerous Cities in the U.S. rankings.

"These cities are the most dangerous in terms of what scares people the most: murder, rape, armed robbery and aggravated assault," NeighborhoodScout CEO Andrew Schiller says.

NeighborhoodScout, a data-analytics company based outside Boston, compiles its list annually by analyzing crime data for thousands of U.S. municipalities with 25,000 residents or more.

Schiller says communities with the highest violent-crime rates are typically former manufacturing towns that fell on hard times when local factories shut down. "Most of the worst places are old industrial areas that have economies that are either collapsing or have collapsed," he says. "Their populations have shrunk dramatically, leaving a concentration of folks who've chosen to stay even though there aren't many opportunities." The expert adds that cities with the nation's worst crime rates all have "a very disproportionate number of single-parent households that are living in poverty." Still, Schiller doesn't categorically advise against moving to a high-crime city, noting that every community has its strengths and weaknesses. For instance, he says people moving to Greater Boston near NeighborhoodScout's headquarters will face some lousy weather, high home prices and long commutes to work. "Every place has issues," Schiller says. "There's really no such thing as a bad neighborhood if it's a good match for what you're personally looking for." If what you're looking for is a safe neighborhood, click below to check out five communities you should avoid: NeighborhoodScout's 2013 most-dangerous U.S. cities. The site based its rankings on violent-crime rates for each community as of 2011, the latest year with final figures available. (NeighborhoodScout augmented the annual crime statistics that municipal police departments report to the FBI with figures from local sheriffs, transit police, university police and other law-enforcement agencies.) All references to violent crimes refer to murder, robbery, aggravated assault and forcible (as opposed to statutory) rape, while references to property crimes refer to burglary, larceny/theft and automotive theft. And while NeighborhoodScout ranks cities' danger levels based on violent-crime rates alone, the listed odds of residents becoming victims refer to both violent and property crimes. Also see: Here Are America's 5 Unhealthiest Cities>>

Fifth-most-dangerous U.S. city to move to: Saginaw, Mich.

Saginaw, an old industrial town some 100 miles northwest of Detroit, has seen crime soar as the manufacturing sector's decline drained the city of jobs and people.

The 51,300-population community has a murder rate that's 3.6 times the national average and rape and robbery levels almost three times what's typical for a city of Saginaw's size. Worse, the community's aggravated-assault rate is nearly eight times the U.S. average, which Schiller calls "outrageous." Saginaw residents also face a property-crime rate 32% above the U.S. average, including a burglary rate that's more than triple the national average. And while local rates of car thefts and larceny/theft are actually below average, Saginaw residents nonetheless run a 1-in-16 chance of falling victim to crime in any given year.

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Fourth-most-dangerous U.S. city to move to: West Memphis, Ark.

Located across the Mississippi River from Memphis, West Memphis suffers from violent-crime rate more than six times the U.S. average.

That includes a rape rate 5.3 times the national average, as well as a level of murders three times higher than you'd expect given the city's 26,000 population. West Memphis also suffers from an aggravated-assault rate 7.3 times higher than average, as well as 3.9 times the typical number of robberies on a per-capita basis. Add the fact that West Memphis has more than three times the average rate of property crimes and you've got about a 1-in-8 chance of becoming a victim there in any given year. Schiller attributes some of West Memphis' problems to a spillover of crime from Memphis itself, which NeighborhoodScout ranks as America's 22nd-most-dangerous city.

Third-most-dangerous U.S. city to move to: Flint, Mich.

Filmmaker Michael Moore chronicled the decline and fall of his hometown of Flint in the 1989 documentary Roger & Me, which detailed the city's woes following moves by General Motors (GM) to close several factories there. Also see: 5 Most Sinful Cities in America>>

Flint, which is some 40 miles south of Saginaw, has lost even more jobs and residents since -- leading to lots of crime. The city's overall violent-crime rate is more than six times the U.S. average, including a murder rate that's 10.2 times what's typical. Flint's 101,600 residents also face an aggravated-assault rate nearly seven times above average, as well as a robbery rate more than five times the average and rape levels 3.3 times the U.S. norm. Coupled with five times the typical level of burglaries, more than three times the expected number of auto thefts and 15%-above-average larceny/thefts, bad guys target about one Flint resident in 11 in any given year.

Second-most-dangerous U.S. city to move to: Camden, N.J.

The crime rate in the hometown of Campbell Soup Co. (CPB) is anything but "Mmm Mmm Good."

Located across the Delaware River from Philadelphia (itself ranked as America's 50th-most-dangerous city), Camden's 77,300 residents face a violent-crime rate that's 7.2 times the U.S. average. That includes a murder rate more than 12 times the national average, as well as 9.7 times more robberies than what's typical for a city its size. Camden also has 6.4 times the national rate of aggravated assaults and 3.2 times the rate of rapes. "All of those numbers are outrageously high, but the murder and armed-robbery rates are really standouts," Schiller says. Unfortunately, Camden's nonviolent-crime levels aren't much better. Locals face more than twice the typical U.S. property-crime rate, including 4.5 times the usual number of car thefts for a community Camden's size. All told, residents have about a 1-in-11 chance of becoming crime victims in any given year.

Most dangerous city to move to: East St. Louis, Ill.

East St. Louis crime rates have soared as the city struggled through decades of population losses, job declines and the construction of highways that bisected its neighborhoods.

Situated across the Mississippi River from St. Louis (America's eighth-most-dangerous city), East St. Louis' violent-crime rate is more than 15 times the national average -- and includes an aggravated-assault rate that's nearly 20 times the norm. East St. Louis also has murder levels 18.6 times above what's typical given its size, as well as 8.8 times the average U.S. robbery rate and 7.1 times the usual rape rate. Add in a property-crime rate that's nearly three times the national average -- including almost seven times as many car thefts as you'd expect given the city's 27,000 population -- and East St. Louis is easily America's most dangerous city. Residents have a 1-in-7 chance of becoming crime victims there in any given year. "Crime is just off the charts in East St. Louis," Schiller says.

Saturday, November 16, 2013

The Week Ahead: Where in the World to Invest?

It was another week where the stock market surprised the majority by continuing higher despite the already lofty levels of the major averages. The S&P 500 broke through short-term resistance on Wednesday and closed the week just below the 1800 level.

Oftentimes, there is selling when a market average reaches a round number like 1800 but it is also possible this time that a strong close above this level will move more money off the sidelines. Mutual fund managers have a relatively high level of cash on hand and many are not keeping pace with their benchmarks. A failure to match or exceed the benchmarks could jeopardize their year-end bonuses.

Many continue to voice concern over the high level of bullish sentiment, which implies that the smaller investors have joined the party. But Charles Schwab CEO Walter Bettinger commented on CNBC that only about half of their clients think it is a good time to be investing in equities. Furthermore he said "Our clients are engaged, but they're very cautious about the markets overall."

In last week's column, I shared the reasons why I did not think a bubble was forming even though the market is overextended. This is especially true when you look at the investing public as most are now scared to death of the stock market, unlike 2000.

chart
Click to Enlarge

Just a year ago the stock market was bottoming after the post election correction as the S&P hit a low of 1343.65 on November 16. This date it labeled on the chart and shows that one of the star performers since that low has been Japan's NK225, which is up over 63%.

The chart of the NK225 shows that resistance at line a has just been overcome even though some are having doubts about their economic plan. From a technical standpoint, it was clear in early 2013 that both the NK225 and Japanese yen had undergone long-term trend changes that should last many years. This is still my view.

The Spyder Trust (SPY) and German DAX show very similar patters as both are up over 31%, just half of Japan's gain. The emerging markets as measured by Vanguard FTSE Emerging Market (VWO) is now up 2.3% since the November 2012 lows. Since I do feel a more meaningful correction is likely in the next few months (see What to Watch), it should present a buying opportunity.

But should you just concentrate on stocks in the US or should you also look elsewhere?

The Vanguard FTSE Emerging Market (VWO) was discussed in more detail in last August's A Contrary Bet for 2014? as I though it might be a star performer in 2014 and advised a dollar cost averaging strategy to get invested. As it turned out, VWO bottomed the following week and had a nice rally into the late October high, but then dropped as many turned became skeptical of the group.

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The weekly chart of VWO shows that it may finally be ready to move significantly higher as last week it dropped below its quarterly pivot at $40.32 before closing higher. The OBV had broken its major downtrend in early October and has turned up this week.

Part of my rationale for looking at the emerging markets was that I thought that the US and Eurozone economies were actually doing much better This growth, I felt, should spread to the emerging market economies in the coming year.

Argentina and Dubai have been the two top performers in 2013, up 86.4% and 72.6% respectively, with the US just below Greece on the list. This would have been tough to predict at the start of the year as the wide range of data gives you the ability to predict the US market's direction. Though a sharp correction is possible before the end of the year, we should finish the year with the double-digit gains I was looking for last December.

Though there has been some softness in the recent economic data for the Eurozone lately, which their rate cut may offset, their economies seem to be in an improving trend. The JP Morgan Global Manufacturing PMIT rose to 52.1 in October, which was a 2?-year high.

 

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In an early November press release they stated "The data signaled expansions  in the US, the euro area, China , Japan, the UK, South Korea, Taiwan, Canada, Russia, and Brazil." Of course Russia and Brazil have two of the worst-performing stock markets this year, down 5.8% and 15% respectively.

The Global PMI Output Index from Markit points to 1.9% global year-to-year GDP in the 3rd quarter, up from 1.1%. Their chart shows the sharp upturn in their Global PMI Index, which is now very close to its downtrend, line a. It does show a pattern of higher highs but the global GDP does not.

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The data on the US economy last week was generally weak as the Empire State Manufacturing Survey dropped into negative territory. Imports also were down sharply due in part to a contraction in petroleum-based products. The Industrial Production also slipped to -0.1% but the manufacturing sector component did show nice growth.

On Monday, we get the monthly Housing Market Index, followed by more housing data on Wednesday with Existing Home Sales. The homebuilders bounced late last week and finally show some signs of bottoming.

The Employment Cost Index is out on Tuesday with the Consumer Price Index, Retail Sales, and FOMC minutes on Wednesday. In addition to the jobless claims on Thursday, we get the Producer Price Index, the PMI Manufacturing Survey, and the Philadelphia Fed Survey.

It may take some disappointing numbers to start a market correction as the public again question the economy's health. Monthly readings are usually not important to the big picture as it is the trends that are important.

Friday, November 15, 2013

Gold futures score first weekly gain in three

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SAN FRANCISCO (MarketWatch) — Gold futures edged higher on Friday, scoring their first weekly gain in three, after Federal Reserve Vice Chairwoman Janet Yellen voiced support for the central bank's bond-buying program.

Gold for December delivery (GCZ3)  tacked on $1.10, or 0.1%, to settle at $1,287.40 an ounce on the Comex division of the New York Mercantile Exchange.

Prices jumped 1.4% on Thursday. For the week, they added 0.2%, according to FactSet data tracking the most-active contracts. They had tallied a loss of 5.1% over the past two weeks.

December silver (SIZ3) added a half cent to $20.727 an ounce after gaining 1.3% in the previous session. Prices fell 2.8% for the week, which was their third weekly loss in a row.

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But analysts and bullion dealers touted strength in physical demand for silver. The U.S. Mint reported this week that sales of the American Eagle one-ounce silver bullion coins reached an annual record. Read Commodities Corner: Silver coin supplies buckle on fever-pitch retail buys.

For gold on Friday, the lack of action was mainly due to the metal "digesting the big moves of recent days," said Colin Cieszynski, senior market analyst at CMC Markets. He pointed out that prices dropped from a high of $1,313 last Friday to a low of $1,260 on Tuesday — an over $50 drop in three trading days and they have since rebounded to the middle of that range.

The big driver of gold action is speculation over when the Fed might start to scale back its bond buying, which has been undermining the value of U.S. dollar, he said in an email. The potential for extended bond buying has been seen as "more bullish for gold," he noted.

On the economic front, weak data appeared to support expectations that the Fed won't scale back its stimulus program this year.

Figures Friday showed that the Empire State's general business conditions index turned negative in November for the first time since May, with the reading falling to a negative 2.2.

U.S. industrial production fell 0.1% in October — the first decline since July, while MarketWatch-polled economists expected no change.

Last week's U.S. nonfarm payrolls report had sparked speculation of a December taper which knocked gold down, but Yellen's "more dovish comments helped to shore up support and spark the rebound we have seen so far," said Cieszynski.

At a Senate hearing on Thursday, Yellen, who's nominated to head the Fed, said asset purchases have made a "meaningful" contribution to the economic recovery. Read about what Yellen said Thursday about gold.

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In other metals trading on Comex Friday, January platinum (PLF4)  shed $5.20, or 0.4%, to $1,438.90 an ounce, ending around 0.3% lower than last Friday's close, while December palladium (PAZ3)  fell $7.15, or 1%, to $732.65 an ounce — a 3.3% drop for the week.

High-grade copper (HGZ3) , which closed unchanged on Thursday after hitting a more than three-month low earlier this week on concerns about Chinese economic growth, saw its December contract end at $3.17 a pound, up a penny for the session. Futures prices closed down about 2.6% for the week.

On Friday afternoon, shares of the SPDR Gold Trust (GLD)  were trading little changed for the session and the week. Metals-mining shares were trading lower with the Philadelphia Gold and Silver Index (XAU)  falling 0.8% though set for a gain on the week, while the NYSE Arca Gold Bugs index (XX:HUI)  was down 0.9%, ready for a weekly loss.

Thursday, November 14, 2013

Is it wise to continue buying in gold?

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Below is the verbatim transcript of Mathpal's interview with CNBC-TV18.

Q: Should one still buy into gold or do you think gold has run its course and now its time to rethink its importance in one's portfolio?

A: Gold provides stability to the portfolio so it is good to have some allocation, for example 10-15 percent of your portfolio in gold. However, I will not advice to buy gold at this price in lump sum. If one has a long-term goal then invest through gold exchange traded fund ( ETF ) or gold fund of fund scheme in staggered manner.

If one invests in gold ETF then buy units of gold. Usually one unit of gold ETF represents one gram-24 karat gold and for that one need to have demat account and in case if do not have a demat account even then he can invest in gold ETF through gold mutual fund of fund scheme and basically that is a better choice.

If one wants to invest in gold then go through gold ETF or gold fund of fund scheme and therefore from tax planning perspective also it makes a better choice because holding period of one year in gold ETF or gold fund of fund schemes of mutual fund qualifies for long-term asset. So, in long-term capital asset when one sell these units after one year then one has to pay maximum 10 percent tax on the profit which is in case of physical gold only, after holding period of three years it qualifies for long-term.

In gold ETF or gold savings funds -- these schemes of mutual funds are free from value added tax (VAT) and that is one advantage compared to physical gold. Therefore, I will not recommend investing in lump sum at this price and if one want to invest in staggered manner then it is better to invest through gold ETF or gold fund of fund schemes of mutual funds.

Tuesday, November 12, 2013

Is J.P. Morgan Chase Facing a Systematic and Forced Breakup?

Being an executive at J.P. Morgan Chase & Co. (NYSE: JPM) can be no easy job at the moment. This is one of only a few large institutions that could have survived without a government bailout, and now many missteps and outside efforts have put this banking giant inside of a serious quagmire. With all of the regulatory efforts at work simultaneously against the bank, it gets easier and easier to argue that the regulatory bodies are pressuring this banking giant into a breakup of some sort.

The London Whale debacle may go down in the books as the historical death sentence. Jamie Dimon lost his ability to speak critically and publicly against regulators and politicians after eating crow over the “tempest in a tea kettle” analogy. Despite taking a multibillion loss, the bank never really lost money in any of its quarterly reports. Still, now there are criminal charges over cover-ups by executives and staffers. And the London Whale himself is working with prosecutors. Hmm …

Any “banking lawsuits” seem to entangle J.P. Morgan, even if they seem to be larger offenses of Bank of America Corp. (NYSE: BAC). This appears to be the case, whether it is a circuit court, the Department of Justice, housing regulators, the SEC and on and on. Suits over securitizations are still happening some five and six years after the fact. Does it seem a mere coincidence that Bank of America wants to fold the Merrill Lynch entities back into the Bank of America brand, even if it is just to avoid dual filings? Maybe Bank of America’s effort is to make it far more difficult for regulators to break up the giant banks.

Can you believe that J.P. Morgan now is being targeted for nepotism over hiring the friends and family of Chinese ministers and higher-ups around winning banking and investment banking deals in China? Is that bribery, or is it a culture of “I will take care of yours if you take care of mine.” This is one of those instances that it is almost impossible to fathom how a company could be probed over who they hire. Many businesses hire friends and family of their partners. If regulators go after this, they better look at every aspect of society and business because businesses and people hire people who are friends of their business.

Most industry insiders probably would agree that Jamie Dimon is the best, or at least in the top few, banking CEOs out there, even after the London Whale issues. A recent effort from shareholders tried to split the role of chairman and CEO from Jamie Dimon. It failed as a shareholder vote, but you can be almost certain that the effort will come back up again next year. Citigroup Inc. (NYSE: C) even came out of the woodwork on the split chairman and CEO role, saying that the split role seems to work very well for Citigroup. For years Citigroup has had serious J.P. Morgan envy, but that was simply free press for Citigroup.

Many politicians and regulators (throw in much of the public too) would like to see the big banks broken up. If not a breakup, many at least want a total wall from trading and derivatives risks not putting banking deposits at risk. Sheila Bair is an opponent of the supermarket model of the largest banking giants, and her criticism and efforts actually do have some support on both sides of the political aisle.

Now the Federal Reserve has released its charges against the banks and systemically important financial institutions with more than $50 billion in total client assets. The breakdown there was not seen, but this charge certainly will be heavier on J.P. Morgan as the king of assets than it will be on those “smaller” banks with $50 billion to $100 billion in assets. That was for 2012 as well, and it is a part of the Dodd-Frank charges.

How would a breakup really work? In all likelihood it would work the same way that a Citigroup Inc. (NYSE: C) breakup would work. Trading and underwriting operations would have to be quarantined, while the pure brokerage and retail account management efforts likely would remain an in-bank effort. After all, it makes sense for Joe Public to go the bank and to be able to check in with a financial advisor too. But in contrast, Citigroup has been exiting its Smith Barney effort with Morgan Stanley (NYSE: MS) now in control. That would create a J.P. Morgan unit around the riskier side of the business, and Chase Bank offices would be a subsidiary of Chase.

If J.P. Morgan were to be formally broken apart, you would end up with two separate companies. One would look like Wells Fargo & Co. (NYSE: WFC), with no major international trading operations that can topple a bank or the financial system out of the blue. One would look like Morgan Stanley (NYSE: MS) or even Goldman Sachs Group Inc. (NYSE: GS), where trading and investment banking efforts are free to prevail.

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It is getting ever harder to find anyone who really loves the big banks. Have you ever seen anyone wearing a T-shirt that says “Have you hugged your banker today?” out in public? Still, the endless pressures sure seem to be pointing toward a breakup of some sorts. Even if it is not an informal breakup conspiracy, it is almost impossible to argue that there is not a regulatory effort to keep J.P. Morgan from being any more dominant than it currently is.

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Monday, November 11, 2013

Internet sector downgraded by Morgan Stanley

Internet stocks have been hot this year, but the sector may be about to cool down, according to one of the leading investment banks covering the sector.

"We see a more balanced risk-reward following strong performance," Morgan Stanley analysts, led by Scott Devitt, wrote in a note to investors Monday.

The Internet stocks they cover, including Amazon, Facebook and Google, are up 57% so far this year on average, while the benchmark Nasdaq Composite Index has gained about 28%.

"Outperformance has been driven by multiple expansion rather than positive estimate revisions," Devitt and his colleagues added. "Consequently, we believe current valuations could be full despite strong secular trends."

The analysts cut their industry view to "in-line" from "attractive." That means they expect Internet stocks to return about the same as the broader market over the next 12 to 18 months, rather than beat it.

They also took Google off Morgan Stanley's Best Idea list, arguing that most of the catalysts for that stock's gains have already played out.

Investors have been betting that companies in the sector will have a much bigger market to tap as tech-savvy, younger generations mature and enter their heavy-spending years when they buy cars, houses and many other expensive items. The hope is that these consumers will do most of their searching and spending over the web, boosting revenue and profits of the leading Internet companies.

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Devitt and his fellow analysts call this the "total addressable market," or TAM, investment strategy.

"There may not be enough TAM for all of our companies to achieve long-term estimates," they wrote. "We could see a return to a more valuation-sensitive investment process as the fallacy of a broadening TAM approach to investing becomes more evident to the market" possibly in 2014.

Morgan Stanley's estimates ! for 2014 earnings, before interest, tax, depreciation and amortization, have increased 1% to 2% so far this year, while the value of Internet companies has jumped 57%, the analysts noted.

Sunday, November 10, 2013

Profiting In Bear And Bull Markets

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Both bear markets and bull markets represent tremendous opportunities to make money, and the key to success is to use strategies and ideas that can generate profits under a variety of conditions. This requires consistency, discipline, focus and the ability to take advantage of fear and greed. This article will help familiarize you with investments that can prosper in up or down markets.

Ways to Profit in Bear Markets
A bear market is defined as a drop of 20% or more in a market average over a one-year period, measured from the closing low to the closing high. Generally, these market types occur during economic recessions or depressions, when pessimism prevails. But amidst the rubble lie opportunities to make money for those who know how to use the right tools. Following are some ways to profit in bear markets:
Short Positions: Taking a short position, also called short selling, occurs when you sell shares that you don't own in anticipation that the stock will fall in the future. If it works as planned and the share price drops, you must buy those shares at the lower price to cover the short position. For example, if you short ABC stock at $35 per share and the stock falls to $20, you can buy the shares back at $20 to close out the short position. Your overall profit would be $15 per share.
Put Options: A put option is the right to sell a stock at a particular strike price until a certain date in the future, called the expiration date. The money you pay for the option is called a premium. As the stock price falls, you can either exercise the right to sell the stock at the higher strike price or sell the put option, which increases in value as the stock falls, for a profit (provided the stock moves below the strike price).
Short ETFs: A short exchange traded fund (ETF), also called an inverse ETF, produces returns that are the inverse of a particular index. For example, an ETF that performs inversely to the Nasdaq 100 will drop about 25% if that index rises by 25%. But if the index falls 25%, the ETF will rise proportionally. This inverse relationship makes short/inverse ETFs appropriate for investors who want to profit from a downturn in the markets, or who wish to hedge long positions against such a downturn. Ways to Profit in Bull Markets
A bull market occurs when security prices rise faster than the overall average rate. These market types are accompanied by economic growth periods and optimism among investors. Following are some appropriate tools for rising stock markets:
Long Positions: A long position is buying a stock or any other security in anticipation that its price will rise. The overall objective is to buy the stock at a low price and sell it for more than you paid. The difference represents your profit.
Calls: A call option is the right to buy a stock at a particular price until a specified date. A call option buyer, who pays a premium, anticipates that the stock's price will rise, while the call option seller anticipates it will fall. If the stock price rises, the option buyer can exercise the right to buy the stock at the lower strike price and then sell it for a higher price on the open market. The option buyer can also sell the call option in the open market for a profit, assuming the stock is above the strike price.
Exchange-Traded Funds (ETFs): Most ETFs follow a particular market average, such as the Dow Jones Industrial Average (DJIA) or the Standard & Poor's 500 Index (S&P 500) and trade like stocks. Generally, the transaction costs and operating expenses are low, and they require no investment minimum. ETFs seek to replicate the movement of the indexes they follow, less expenses. For example, if the S&P 500 rises 10%, an ETF based on the index will rise by approximately the same amount. How to Spot Bear and Bull Markets
Markets trade in cycles, which means that most investors will experience both in a lifetime. The key to profiting in both market types is to spot when the markets are starting to top out or when they are bottoming. Following are two key indicators to look for:
Advance/Decline Line: The advance/decline line represents the number of advancing issues divided by the number of declining issues over a given period. A number greater than 1 is considered bullish, while a number less than 1 is considered bearish. A rising line confirms that the markets are moving higher. However, a declining line during a period when markets continue to rise could signal a correction. When the line has been declining for several months while the averages continue to move higher, this could be considered a negative correlation, and a major correction or a bear market is likely. An advance/decline line that continues to move down signals that the averages will remain weak. However, if the line rises for several months and the averages have moved down, this positive divergence could mean the start of a bull market.
Price Dividend Ratio: This ratio compares the stock's share price with the dividend paid out over the past year. It is calculated by dividing the current stock price by the dividend. A decline in the ratio of 14-17 could indicate an attractive bargain, while a reading above 26 may signal overvaluation. This ratio and its interpretation will vary by industry, as some industries traditionally pay high dividends, while growth sectors often pay little or no dividends. Conclusion
There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage. In addition, it is important to use the indicators in conjunction with one another to spot when both bull and bear markets are beginning or ending.

Short selling, put options, and short or inverse ETFs are just a few bear market tools that allow investors to take advantage of the market weakness, while long positions in stocks and ETFs and a call option are suitable for bull markets. The advanced decline line and price dividend ratio will allow you to spot market tops and bottoms.