Companies book profits from self-publishing

In the spring of 2010, Amanda Hocking, a social worker from Rochester, Minn., uploaded several books she had been working on to Amazon.com. In the first weeks, she sold a few dozen copies — success for someone who just wanted to have her work read.

In the next few months, she published several more manuscripts, and soon, the sales started piling up. By the end of the summer, Hocking had made enough money to quit her job, and in January 2011, she sold "an insane amount of books," she said, estimating the total at 100,000.

Her sales numbers soon drew the attention of Macmillan, one of the largest publishers in the world, which signed her to a four-book deal for more than $2 million, followed by a deal to republish three of her most popular titles for $750,000 more.

Hocking, now 29, went from social worker to best-selling author and millionaire in a year.

Inspired by her story and that of other early self-publishing success stories, hundreds of thousands of others have followed in Hocking's footsteps. While many are traveling the same trail she did several years ago, few are finding anything near her level of success.

That doesn't mean she's the only one making money from the new boom in American self-expression. The old yarn about the San Francisco gold rush applies here: Even though a tiny percentage of those heading west looking for gold ever found fortunes, those who sold the pickaxes, pans and whiskey got rich.

The ranks of self-published authors are swelling. The number of books being self-published in the U.S. ballooned to 391,000 titles in 2012, according to Bowker, an industry research group — an increase of nearly 60% from the previous year. Amazon's Kindle Direct Publishing platform, one of the most popular for self-publishing, today has "hundreds of thousands" of authors and titles, the company says.

Before this boom, authors such as Hocking and Bella Andre, another successful self-published author, did all the work of creating, editing, for! matting and distributing e-books, often slogging through complicated technical manuals and getting stuck for days or weeks on complex software problems

"At first, I was doing it all myself," said Andre. "When I started three years ago, hardly any of these services existed or were as good as they are now."

Andre is referring to companies such as Smashwords, which distributes 250,000 titles for more than 60,000 authors to most of the world's e-book stores for a percentage of the author's profits. Another is Author Solutions, which was acquired by publisher Penguin last year and has helped some 170,000 authors bring more than 200,000 titles to market by selling them editorial, e-book production and marketing services. A company called FastPencil helps about 80,000 authors work on their writing, and when they're ready, publish and distribute it — for a fee. There are many others.

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In addition, a new ecosystem of freelancers has developed to fulfill demand — e-book developers, cover designers, copy editors, publicists and more.

Andre estimates that she spends $60,000 to $80,000 a year creating and promoting her books, employing about a dozen freelancers for various parts of her operation. Each works up to 10 hours a week for her.

"Almost every step of the way, there's an opportunity to make money," said Steve Wilson, CEO of FastPencil.

But few authors actually find much gold when they go digging.

Wayne Hicks, 58, of Fort Smith, Ark., is among the more successful self-published authors. He has five titles to his credit and has spent about $700 on editorial and marketing services, as well as more than 1,000 hours writing, creating and promoting his books. In that time, he's sold nearly a thousand copies, to make about $1,400. Katie Lippa, 40, of Portland, Maine, is another. She has spent nearly $700 on editorial ! services ! and has made about $1,600 selling books.

But there are dozens or even hundreds who have barely made back their investments. "On average, authors spend between $1,000 and $2,000 to get their books into the marketplace," said Keith Ogorek, senior vice president of marketing at Author Solutions.

According to Smashwords, which distributes many self-published authors and titles to some of the most popular e-book sites (save Amazon, for most of its titles), the best-selling 1% of titles net half the sales. There is a wide disparity among the top 500 best-selling books: Smashwords' No. 1 best-seller, The Boy Who Sneaks in My Bedroom Window by Kirsty Moseley, sold 37 times as many copies as the No. 500 best-seller.

To be sure, money isn't the sole motivation for self-publishing. According to a recent study by Digital Book World, a trade publication that covers the digital publishing industry, and Writer's Digest, a magazine for writers, "to make money from my writing" is fourth on a list of reasons authors want to publish books. The top two answers were "to build my career as a writer" and "to satisfy a lifelong ambition."

Jeremiah Johnson, 30, is a soldier in the U.S. Army currently stationed in Afghanistan on his fourth deployment. He's made $90 selling his self-published book of poetry, Black Rose; Dying, which he published under the pen name Edward Val.

"I wanted to leave something behind in case the worst happened," he said.

SELF-PUBLISHING TIPS

Publishing your own book is easier than ever, but it still takes a lot of hard work and know-how. Here are five steps to help you get started:

• Think about your goals. If the idea is simply to become a published author, you may choose a very different path than if your motivation is to make money.

• Make sure your book is ready. Rewrite and re-edit until you've nailed it.

• Figure out which path is right for you. Doing it yourself involves editing, coming up with a cover design and managing distr! ibution a! nd marketing. Using a company to provide those services and/or hiring freelancers to help means you'll be paying for services. Or you could try the traditional route: Look for an agent and a publisher.

• Don't forget social media. With Twitter, Facebook, etc., everyone can talk to a wide audience. The larger your platform, the easier it will be to get people to read your book.

• Have fun.

Jeremy Greenfield is editorial director of Digital Book World. He has also been a careers editor at Dow Jones and has written for The Wall Street Journal, MarketWatch, Forbes, and other publications.

Half of Near-Retirees Don’t Have an Advisor

A new study by the Spectrem Group’s Millionaire Corner found that half of 401(k) plan participants between 50 and 64 aren’t using a financial advisor as they prepare for retirement. Among those who do, just 40% say they rely on their advisor’s guidance for the majority of their financial needs.

The report, “Advisor Usage Among DC Plan Participants,” found a third of respondents were referred to their advisor by a friend or family member. Referrals from people they knew were far and away the most popular way investors learned about an advisor.

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Just 9% of respondents said they found their advisor on a website, and 7% said they were introduced at a seminar or special event. Only 6% said they were contacted by an advisor first.

While both men and women were more likely to rely on a referral, men were more likely than women to say they found their advisor online. Thirteen percent of men went online to find an advisor, compared with 5% of women. Nearly half of women said they chose their advisor based on a referral, compared with 27% of men.

“Despite research showing that the majority of Americans are insufficiently prepared for retirement in terms of their savings and investments, the majority of defined contribution plan participants continue to view their 401(k) accounts as a savings plan,” George Walper, president of Spectrem Group, said in a statement. “Nearly all, however, could benefit from having access to regular financial advice on how to make the most of their portfolio.”

Retirement plan participants are generally satisfied with their advisors’ services, according to the report. Although only half of respondents are using an advisor, two-thirds of those said they were satisfied with their services. Seventy percent said they liked how responsive their advisor was to their requests.

Almost 60% of plan participants have a written plan from their advisor, and 96% of them say they’re at least somewhat satisfied. Fifty-two percent said they were very satisfied.

Among participants with the highest account balances, those with at least $100,000, 27% say they have a financial plan and 35% say they will have one soon.

Analysts Team Issues Upside Targets on Twitter, Ahead of the IPO

Most Wall Street analysts wait for a company’s IPO to actually price and then start trading before they issue Buy, Sell, or Hold recommendations (or other recommendations). This is not the case for Twitter as Sterne Agee’s Arvind Bhatia and Brett Strauser initiated coverage of Twitter with upside price targets that would translate to a “Buy” rating if the IPO came out right in its expected price range.

The Sterne Agee team did not establish any formal rating or price target yet. It is the tone of this report that sounds so positive, and they have opined that shares would be attractive if the IPO prices in the $17 to $20 proposed range.

Twitter’s IPO is expected to hit in the first week of November. The team’s valuation work suggests a base case valuation of $25 to $32 per share in the next 12 months to 24 months. The upside case is a value of $33 to $48 per share, versus a downside case of $13 to $15 per share. Again, this is a call for the next 12 months to 24 months.

Twitter was shown to have some 232 million monthly active users, including 53 million in the U.S. Mobile accounts for 76% of the monthly active users, and over 70% of the advertising revenue was from mobile in the most recent quarter. The social network’s international user base represents 77% of the total but that same international group accounts for only 25% of the revenue.

The Sterne Agee team called the valuation proposal, “Twitter's scale and deeply engaged user base create valuable opportunities for advertisers to leverage the platform. Advertisers can communicate directly with their followers for free, or they can purchase Twitter's advertising services to reach a broader audience. Twitter's platform partners include publishers, media, outlets, and developers, who have integrated with Twitter through an application programming interface, which allows them to seamlessly leverage Twitter as a complementary distribution channel for their content. Twitter plans to continue to integrate more content into their API to allow platform partners to distribute more forms of content.”

Another issue pointed out is that 11% of Twitter’s revenue came from Data Licensing. This is where it provides data partners with detailed historical and real-time analytics regarding total user interactions with the platform. Only five of the top data partners generated about 73% of the data licensing revenue in the first 9 months of 2013.

Twitter plans to issue 70 million shares, or up to 80.5 million shares if you include the overallotment shares for the underwriters. This would generate a capital raise of $1.2 billion to $1.6 billion before fees.

7 Reasons Your Credit Card Can Be Declined

Hopefully this has never happened to you: You hand your credit card to a sales clerk to make a purchase then are told, after the clerk swipes it, that your card has been declined. It's embarrassing just thinking about it, right? Plus, it might have you scratching your head wondering exactly why your card was declined.

SEE ALSO: 11 Credit Card Mistakes to Avoid

Bill Hardekopf, CEO of credit-card comparison site LowCards.com, says that there are several reasons a credit card might be declined -- many of which you might not even suspect. Fortunately, there often are steps you can take to avoid ending up in this predicament. And situations that can't be averted often can be resolved quickly if you contact your credit card company as soon as your card is declined, says John Oldshue, LowCards.com founder and editor.

Here are seven common reasons your credit card might be declined and ways to avoid or remedy the situation.

1. You've exceeded your credit limit. Your card will be declined if you try to continue to make charges once you've hit the maximum amount your credit card company will allow you to borrow. If you carry a balance, you should check how close you are to your limit by checking your account online or calling the number on the back of your card before making purchases. Hardekopf says that you also can sign up to receive text alerts from your card company when you are close to reaching your credit limit.

2. Your account is delinquent. If you are behind on your payments, your card issuer will eventually stop accepting new purchases. If you have good to excellent credit, the card company may allow you to miss a couple before shutting you down, Oldshue says. But if you have any negative marks on your credit or have missed a payment in the past, your card issuer will probably freeze your account after the first missed payment, he says.

3. You have a suspicious charge. Credit card companies can be quick to freeze an account if they suspect fraud. This will work in your favor if you're actually a victim of identity theft. But it can also happen if your own credit activity has created a security risk -- such as shopping in an unusual place, having a high number of transactions in one day, making a very large purchase or trying to withdraw a lot of money from an ATM, Hardekopf says. You'll need to call your card company to get an explanation as to why there is a security problem, Oldshue says. If there is fraud, you can stop it quickly. If you've made the charges, you might be able to resolve the issue by simply answering a few questions from the card company. If the company still can't clear the account from the security concern, Oldshue says it might issue you a new temporary account number or FedEx a card overnight to you if you are in a situation (say, traveling overseas) where you need access to credit.

4. There's a hold on your account. If you book a hotel room or rent a car using your credit card, your card company might place a hold on the amount you charged -- even if you haven't completed your stay or turned in the rental car. The hold ensures that the company gets the money it needs from your use of its services and prevents you from spending beyond your credit limit.

5. You are trying to make an international purchase or an online purchase from a foreign company. Hardekopf says that this could create an alert and possibly freeze your card. To avoid this, call your card company before you travel overseas or make an international purchase so it won't suspect suspicious activity.

6. You entered your card information incorrectly. This is an easy mistake to make when shopping online. So double check the card number, expiration date, billing address and security code you typed before hitting "enter" to avoid having your card declined for simple human error.

7. Your card is expired. If you don't regularly use your credit card or aren't making a lot of purchases online that require you to type in your card's expiration date, you might try to use it without realizing that it's no longer valid. Typically card companies send customers new credit cards before their current ones expire. So check that pile of mail to make sure you didn't overlook an envelope with a new card. Otherwise, you'll need to call the company to request a new card.

Asian Stocks Drop for Third Day on U.S. Debt Gridlock

Asian stocks fell for a third day, with the regional benchmark index set for the longest losing streak in six weeks, as U.S. lawmakers remained at odds over lifting the debt ceiling to avoid a default.

Cokal Ltd., a coal mine developer, slumped 20 percent in Sydney after saying takeover talks with Blumont Group Ltd. were affected by a record plunge in the buyer's stock. Blumont soared 69 percent today in Singapore after plunging 85 percent yesterday. Rakuten Inc., a Japanese online shopping site, fell 13 percent after Yahoo Japan Corp. said it would eliminate vendor fees for its shopping and auction sites. Tokyo Electric Power Co., the owner of the crippled Fukushima Dai-Ichi nuclear power plant, rebounded 6.4 percent after declining 20 percent over the past five days.

The MSCI Asia Pacific Index dropped 0.1 percent to 137.79 as of 11:04 a.m. in Tokyo. Shares extended last week's losses as the partial U.S. government shutdown stoked concern lawmakers will fail to raise the nation's $16.7 trillion debt limit this month. President Barack Obama yesterday reiterated that he won't negotiate with Republicans over the shutdown and borrowing cap.

"The real issue has now become the debt ceiling and that's what worries investors,"said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has $131 billion under management. "If it's not resolved, it could have catastrophic consequences for the global financial system."

Consumer staple companies dropped the most among the MSCI measure's 10 industry groups while utilities led gains, spurred by Tokyo Electric.

Regional Gauges

Japan's Topix index declined 0.2 percent. The nation's current account surplus missed estimates in August, data showed. South Korea's Kospi index dropped 0.5 percent and New Zealand's NZX 50 Index fell 0.2 percent. Australia's S&P/ASX 200 Index decreased 0.5 percent even as data showed business confidence surged in September to the highest level in 3 1/2 years.

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Hong Kong's Hang Seng Index (HSI) gained 0.4 percent. Singapore's Straits Times Index rose 0.1 percent and Taiwan's Taiex index lost 0.2 percent. The Shanghai Composite Index was little changed as markets in mainland China reopened today after a week-long holiday.

HSBC Holdings Plc and Markit Economics' purchasing managers' index for China's service industries was 52.4 in September, compared with 52.8 in August, data showed today.

Futures on the Standard & Poor's 500 Index fell 0.1 percent after the gauge slumped 0.9 percent to a one-month low yesterday. Without an increase to the debt limit, the U.S. will exhaust its borrowing authority on Oct. 17 and would run out of funds to pay all of its bills sometime between Oct. 22 and Oct. 31, according to the Congressional Budget Office.

The MSCI Asia Pacific Index traded at 13.3 times estimated earnings as of yesterday, compared with 15.1 for the S&P 500 and 14.1 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Google's Big Bid

The following video is from Monday's Investor Beat, in which host Chris Hill and analysts Jason Moser and Andy Cross dissect the hardest-hitting investing stories of the day.

Waze is a leading provider of maps and traffic data. Last month Facebook was reportedly close to buying Waze for $1 billion, but that was then, and this is now. Yesterday it broke that Google is reportedly close to buying Waze for $1.1 billion to $1.3 billion. In the lead story from today's Investor Beat, Jason and Andy analyze what the deal means for Google, why Waze makes much more sense for Google than Groupon, and how it affects shares of Google's stock.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

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Will OfficeMax's Merger Lead to a Turnaround?

On Tuesday, OfficeMax (NYSE: OMX  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

OfficeMax has struggled along with many big-box office-products retailers as online competition and a generally weak economic recovery have held back their ability to grow. But the company's recent proposal to merge with rival Office Depot (NYSE: ODP  ) has breathed new life into the sector. Let's take an early look at what's been happening with OfficeMax over the past quarter and what we're likely to see in its quarterly report.

Stats on OfficeMax

Analyst EPS Estimate	$0.23
Change From Year-Ago EPS	0%
Revenue Estimate	$1.83 billion
Change From Year-Ago Revenue	(2%)
Earnings Beats in Past 4 Quarters	4

Source: Yahoo! Finance.

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What investors think about OfficeMax this quarter
In recent months, analysts have gotten somewhat less optimistic about OfficeMax's earnings, cutting $0.03 per share off their estimates both for the first quarter and for the full 2013 year. The stock, however, has gone in the other direction, rising about 10% since late January.

Obviously, the biggest ongoing news for OfficeMax concerns its pending merger with Office Depot. Last month, the companies updated their progress, noting that they'd formed committees to select a CEO for the combined entity and to plan the eventual integration of the two businesses. The Federal Trade Commission asked for more information regarding the merger, extending the time the FTC has to consider its competitive impact.

One distraction to the merger process has come from activist investor Starboard Value, which has a substantial position in Office Depot's stock. With Starboard calling for changes to Office Depot's board of directors, a corporate shakeup could disrupt the process that OfficeMax and Office Depot have set up.

Yet both companies need to keep their eyes on what rival Staples (NASDAQ: SPLS  ) will do. In March, Staples responded to a disappointing quarterly report by announcing cost-cutting measures that include eliminating big-box stores in Europe and the U.S. and refocusing on smaller stores geared more toward mobile products and services. With Staples waiting in the wings to take advantage of an eventual decision from OfficeMax and Office Depot to reduce their own store counts, investors need to be aware of the looming threat.

In OfficeMax's quarterly report, watch for the latest information about the merger. Given the big share run-up the stock experienced when the news was announced, anything that gets in the way of the merger could send OfficeMax shares plunging.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Click here to add OfficeMax to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Top 5 Medical Stocks To Watch Right Now

One of our core biotech holdings surprised us by publishing positive results in the most recent online edition of The New England Journal of Medicine (NEJM), notes John McCamant, editor of The Medical Technology Stock Letter.

Novavax (NVAX) released its Phase I trial of 284 subjects injected with the H7N9 flu virus vaccine.

While the data was expected to be released before the end of the year, the fact that the NEJM published the Phase I study adds tremendous validation to the NVAX vaccine. We would note that the prestigious NEJM rarely publishes Phase I data.

The current Biomedical Advanced Research and Development Authority (BARDA) contract has directed the company to utilize the current portion of its pandemic flu contract on H7N9, underscoring the new virus' global pandemic potential.

NVAX cloned the genes and began human studies in a remarkable 91 days afterwards��esulting in a positive clinical outcome just 116 days after the announced lethal outbreak.

Top 5 Medical Stocks To Watch Right Now: Spectrum Pharmaceuticals Inc.(SPPI)

Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. The company engages in acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. It markets Zevalin, a prescribed form of cancer therapy, radioimmunotherapy; and Fusilev, a novel folate analog formulation and the pharmacologically active isomer of the racemic compound, calcium leucovorin. The company?s drugs in late stage development include Apaziquone, an anti-cancer agent; and Belinostat, a histone deacytelase inhibitor. Its drugs in development also include Ozarelix a luteinizing hormone releasing hormone antagonist, which is in Phase II clinical stage; SPI-1620, a peptide agonist of endothelin B receptors, which is in Phase I clinical stage; and RenaZorb, a lanthanum-based nanoparticle phosphate binding agent, which is in preclinical stage. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is based in Henderson, Nevada.

Advisors' Opinion:

• [By Keith Speights]

  Biotech stocks are highly volatile. A good example of this is Spectrum Pharmaceuticals (NASDAQ: SPPI  ) . Spectrum rode a wave of generic leucovorin shortages in late 2010 and early 2011 to stock gains of more than 170%. Shares then plunged more than 30% from July through September 2011. But the ride wasn't over yet.

• [By James E. Brumley]

  Eight months ago, Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) was a train wreck. Shares had plunged from $12.43 to $7.79 on the heels of bad news, and SPPI wouldn't stop bleeding until it hit a low of $6.92 a few days after the big selloff. That bad news? A warning that its full-year sales (and particularly sales of its cancer drug Fusilev) would be well short of expectations.

• [By Keith Speights]

  Another prime case study for this comes from Spectrum Pharmaceuticals (NASDAQ: SPPI  ) . Spectrum's stock more than doubled from October 2011 through July 2012. However, shares plunged 55% from those highs because business dynamics changed since then. A shortage of a generic rival to Spectrum's lead drug Fusilev was alleviated, resulting in sales slowing down considerably.�

Top 5 Medical Stocks To Watch Right Now: LeMaitre Vascular Inc (LMAT)

LeMaitre Vascular, Inc. (LeMaitre Vascular), incorporated on November 28, 1983, is a global provider of medical devices and implants for the treatment of peripheral vascular disease. The Company develops, manufacture, and market vascular devices to addresses the needs of vascular surgeons. The Company's diversified portfolio of peripheral vascular devices consists of brand name products that are used in arteries and veins outside of the heart and are well known to vascular surgeons, including the Expandable LeMaitre Valvulotome, the Pruitt F3 Carotid Shunt, and VascuTape Radiopaque Tape. The Company sells 12 product lines, most of which are used in open vascular surgery and some of which are used in endovascular procedures. The Company sells its products primarily through a direct sales force. The Company�� products are used by vascular surgeons who treat peripheral vascular disease through both open surgical methods and endovascular techniques. In July 2013, Lemaitre Vascular Inc acquired the assets of Clinical Instruments International, Inc. In August 2013, Lemaitre Vascular Inc acquired the assets of InaVein, LLC.

In June 2011, the Company divested its TAArget and UniFit stent grafts to Duke Vascular, Inc. In August 2011, the Company terminated its distribution of Endologix�� aortic stent graft products in Europe. In November 2011, it launched the second-generation of The UnBalloon Non-Occlusive Modeling Catheter. In December 2011, the Company launched the Over-The-Wire LeMaitre Valvulotome.

Open Vascular Products

The Company�� open vascular products are used primarily in conventional open vascular surgery for the treatment of peripheral vascular disease. LeMaitre line of embolectomy catheters are used to remove blood clots from arteries or veins. The Company manufactures single-lumen latex and latex-free embolectomy catheters, as well as dual-lumen latex embolectomy catheters. The dual-lumen embolectomy catheter allows clot removal and simultaneous irri! gation or guide-wire trackability. Its Pruitt line of occlusion and perfusion catheters reduces vessel trauma by using internal balloon fixation rather than traditional external clamp fixation.

Pruitt F3, Pruitt-Inahara, Inahara-Pruitt, and Flexcel Carotid Shunts are used to temporarily divert, or shunt, blood to the brain while the surgeon removes plaque from the carotid artery in a carotid endarterectomy surgery. Its Pruitt F3, Pruitt-Inahara, and Inahara-Pruitt shunts feature internal balloon fixation that eliminates the need for clamps, thereby reducing vessel trauma. Its Flexcel shunt is a non-balloon shunt offered for surgeons who prefer to secure their shunt using externally placed clamps.

EndoRE line of remote endarterectomy devices are used to remove severe atherosclerotic blockages from the major arteries of the leg in a minimally invasive procedure requiring a single incision in the groin. Its EndoRE devices are used to separate the sclerotic blockage from the vessel, cut the far end of the blockage to free it for removal, and then withdraw the blockage from the vessel.

Expandable LeMaitre Valvulotome and its Over-The-Wire LeMaitre Valvulotome cut valves in the saphenous vein, a vein that runs from the foot to the groin, so that the vein can function as a bypass vessel to carry blood past diseased arteries to the lower leg or the foot. The Expandable LeMaitre Valvulotome is the only self-sizing and self-centering valvulotome available, and the Over-The-Wire LeMaitre Valvulotome is the only over-the-wire self-sizing valvulotome available.

AlboGraft Woven and Knitted Vascular Grafts are collagen-impregnated polyester grafts used to bypass or replace diseased arteries. They are available in both straight tube and bifurcated versions. LifeSpan ePTFE Vascular Graft is an expanded polytetrafluoroethylene (ePTFE) graft used to bypass or replace diseased arteries, and to create dialysis access sites. They are available in both regular and thin wall ! options a! nd with an optional full or partial external spiral support to increase resistance to compression or kinking. Its LifeSpan models are designed to reduce the risk of steal syndrome and high cardiac output, which are complications that may arise in dialysis access grafts.

AlboSure Vascular Patch is a polyester patch used in conjunction with endarterectomy and vascular reconstructions. Vascular surgeons use patches in conjunction with carotid endarterectomy, remote endarterectomy, and other vascular reconstructions. The Company also distributes the XenoSure Biologic Vascular Patch, a patch made from bovine pericardium.

AnastoClip VCS and AnastoClip GC Vessel Closure Systems allow surgeons to attach vessels, native and prosthetic, to one another by deploying titanium clips in place of suturing. These vessel closure systems create an interrupted anastomosis, or a vessel attachment that expands and contracts as the vessel pulses.

Endovascular and Other Products

The Company�� endovascular products are used primarily by vascular surgeons in minimally invasive endovascular procedures, such as stent-grafting, angioplasty, stenting, and atherectomy, and it also sells non-vascular medical devices used in general surgery procedures, primarily laparoscopic cholecystectomy. UnBalloon Non-Occlusive Modeling Catheter is used to apply radial pressure to the inside of an aortic stent graft in order to seal the outer lining of the stent graft against either the aorta or an adjacent stent graft.

VascuTape Radiopaque Tape is a flexible, medical-grade tape with centimeter or millimeter markings printed with its radiopaque ink that is visible both to the eye and to an X-ray machine or fluoroscope. VascuTape Radiopaque Tape is applied to the skin and provides interventionalists with a simple way to cross-reference between the inside and the outside of a patient�� body, allowing them to locate tributaries or lesions beneath the skin.

In some hosp! itals, va! scular surgery procedures are performed by general surgeons. The Company sells on-vascular medical devices used in general surgery procedures, primarily laparoscopic cholecystectomy. The Company�� general surgery product, the Reddick Cholangiogram Catheter is used to inject dye into the cystic duct during laparoscopic cholecystectomy. The Company also offers two laparoscopic accessories used in laparoscopic gall bladder removal.

The Company competes with Applied Medical Resources Corporation, Cardiovascular Systems Inc., Cook Group Incorporated, C.R. Bard, Inc., Edwards Lifesciences Corporation, Getinge AB, Jotec GmbH, Medtronic, Inc., Terumo Medical Corporation, Uresil, LLC and W. L. Gore & Associates.

Top 5 Warren Buffett Companies To Invest In Right Now: Medtronic Inc (MDT)

Medtronic, Inc. (Medtronic), incorporated on April 23, 1957, is engaged in medical technology - alleviating pain, restoring health, and extending life for millions of people worldwide. As of April, 27, 2012, the Company functions in two operating segments that manufacture and sells device-based medical therapies. The Company's operating segments include Cardiac and Vascular Group, which consists of Cardiac Rhythm Disease Management (CRDM) and CardioVascular, and Restorative Therapies Group, which consists of Spinal, Neuromodulation, Diabetes and Surgical Technologies. Medtronic serves hospitals, physicians, clinicians, and patients in more than 120 countries worldwide. The Company's primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations. In August 2013, Medtronic, Inc. announced the closing of the acquisition of Cardiocom. Effective September 3, 2013, Medtronic Inc acquired a 30% stake in NGC Medical SpA.

Cardiac Rhythm Disease Management

CRDM develops, manufactures, and markets products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure, including implantable devices, leads and delivery systems, products for the treatment of atrial fibrillation (AF), and information systems for the management of patients with CRDM devices. The Company's principal products offered by CRDM business include Implantable Cardiac Pacemakers (Pacemakers), Implantable Cardioverter Defibrillators (ICDs), Implantable Cardiac Resynchronization Therapy Devices (CRT-Ds and CRT-Ps), AF Products, Diagnostics and Monitoring Devices and Patient Management Tools. The Company's pacemaker systems are compatible with certain magnetic resonance imaging (MRI) machines. This includes the Revo MRI SureScan with United States Food and Drug Administration approval and the Advisa and Ensura MRI SureScan models with Conformite Europeene (CE)! Mark approval. Medtronic also continues to market the Adapta product family, which includes the Adapta, Versa, Sensia, and Relia models.

The Medtronic ICDs is the Protecta family with SmartShock technology, including the Lead Integrity Alert, a technology designed to improve the detection of lead fractures. Devices in the ICD family are the Protecta XT, Protecta, Cardia, and Egida models. Medtronic also continues to market the Secura and Maximo II devices. The Medtronic CRT-Ds is the Protecta family with SmartShock technology, including Protecta XT and Protecta, and the CRT-P devices are Consulta and Syncra. Medtronic also continues to market the Consulta, Cardia, Egida, and Maximo II CRT-D devices. In addition to these devices, Medtronic has an offering of left heart leads and delivery catheters with its Attain family of products. The Company's portfolio of AF products includes the Arctic Front Cardiac CryoAblation Catheter designed to treat paroxysmal AF by performing pulmonary vein isolation. The Company also offers the Reveal XT Insertable Cardiac Monitor, which is designed to identify and quantify episodes of AF. The Reveal DX and Reveal XT Insertable Cardiac Monitors devices are used to record the heart's electrical activity before, during, and after transient symptoms such as syncope and palpitations to help provide a diagnosis. It has a number of patient management tools, such as CareLink, Paceart, and CardioSight Service. CareLink enables patients to transmit data from their pacemaker, ICD, CRT-D, or Insertable Cardiac Monitors using a portable monitor that is connected to a standard telephone line or cellular network using the Medtronic M-Link accessory.

The Company competes with St. Jude Medical, Inc., Boston Scientific Corporation, Biotronik, Inc. and Sorin Group.

CardioVascular

CardioVascular is comprised of three businesses: Coronary, Endovascular and Peripheral, and Structural Heart. The Coronary business includes therapies to treat ! coronary ! artery disease (CAD) and hypertension. The products contained within this business include coronary stents and related delivery systems, along with a broad line of balloon angioplasty catheters, guide catheters, guidewires, diagnostic catheters, and accessories. The products offered by its Coronary business include Percutaneous Coronary Intervention (PCI) and Renal Denervation. The Endovascular and Peripheral business is comprised of a range of products and therapies to treat abdominal and thoracic aortic aneurysms and peripheral vascular disease (PVD). The Company's products include endovascular stent graft systems, embolic protection systems, and stent systems for the treatment of narrowed iliac arteries. The products offered by the Company's Endovascular and Peripheral business include Endovascular Stent Grafts and Peripheral Vascular Intervention (PVI). The Structural Heart business offers a range of products and therapies to treat a variety of heart valve disorders. The Company's products include products for the repair and replacement of heart valves, perfusion systems, positioning and stabilization systems for beating heart revascularization surgery, and surgical ablation products. The Company's principal products offered by its Structural Heart business include Heart Valves, Transcatheter Heart Valves, Arrested Heart Surgery, Beating Heart Surgery and Surgical Ablation.

The Company competes with Abbott Laboratories, Boston Scientific, and Johnson & Johnson, Cook, Inc., W. L. Gore & Associates, Inc., Endologix, Inc., C.R. Bard, Inc., Edwards LifeSciences Corporation, St. Jude, Terumo Medical Corporation and Sorin Group.

Spinal

The Company's Spinal business develops, manufactures, and markets a range of medical devices and implants used in the treatment of the spine and musculoskeletal system. The Company's products and therapies treat a range of conditions affecting the spine, including degenerative disc disease, spinal deformity, spinal tumours, fractures ! of the sp! ine, and stenosis. The Company's Spinal business also provides biologic solutions for the dental and orthopedic markets. The Company's Spinal products are used in spinal fusion of both the thoracolumbar region, referring to the mid to lower vertebrae, as well as of the cervical region, or upper spine and neck vertebrae. Products used to treat spinal conditions include rods, pedicle screws, hooks, plates, and interbody devices, as well as biologics products, primarily bone growth substitutes including bone graft extenders and structural allografts such as dowels and wedges. The products offered by the Company's Spinal business include Thoracolumbar Products, Cervical Products and Biologics Products.

The Company competes with DePuy Spine, Inc., Synthes, Inc., Stryker Corporation, NuVasive, Inc., Globus Medical, Inc., Zimmer, Inc., Alphatec Spine, Inc., Orthofix International N.V., Biomet, Inc. and Johnson & Johnson.

Neuromodulation

The Company's Neuromodulation business develops, manufactures, and markets medical devices for the treatment of chronic pain, movement disorders, psychological disorders, and urological, fecal, and gastroenterological disorders. The l products offered by the Company's Neuromodulation business includes Neurostimulators for Chronic Pain, Implantable Drug Delivery Systems, Deep Brain Stimulation (DBS) Systems and Urology, Fecal, & Gastroenterology Devices. The Company's portfolio of products includes the RestoreSensor (rechargeable), with the Company's AdaptiveStim technology, as well as the RestoreULTRA (rechargeable), RestoreADVANCED (rechargeable), and PrimeADVANCED (non-rechargeable) neurostimulation systems. The SynchroMed II Programmable Infusion System delivers small quantities of drug directly into the intrathecal space surrounding the spinal cord. These devices are used to treat chronic, intractable pain and severe spasticity associated with cerebral palsy, multiple sclerosis, spinal cord and traumatic brain injuries, and stroke.

DBS uses a surgically implanted medical device, similar to a cardiac pacemaker, to deliver carefully controlled electrical stimulation to precisely targeted areas in the brain. The Company's family of Activa Neurostimulators for DBS includes Activa SC (single-channel primary cell), Activa PC (dual channel primary cell), and Activa RC (dual channel rechargeable). The Company's therapeutic portfolio for urology and gastroenterology includes the InterStim Therapy System, which treats the symptoms of overactive bladder, urinary retention, and chronic fecal incontinence, and the Enterra Therapy System for the treatment of chronic nausea and vomiting caused by gastroparesis of diabetic or idiopathic origin for drug refractory patients.

The Company's competes with Boston Scientific, St. Jude., Urologix, Inc. and Allergan.

Diabetes

The Company's Diabetes business develops, manufactures, and markets advanced, integrated diabetes management solutions that include insulin pump therapy, continuous glucose monitoring systems, and therapy management software. The products offered by the Company's Diabetes business includes Integrated Diabetes Management Solutions, Professional CGM and CareLink Therapy Management Software. Outside the United States, the Company offers its Paradigm Veo System, an integrated system that includes a Low Glucose Suspend feature that automatically suspends insulin delivery when glucose levels become too low. In the United States, the Company offers the Paradigm Revel System, which incorporates new CGM features, including predictive alerts that can give early warning to people with diabetes so they can take action to prevent dangerous high or low glucose events. Medtronic offers physicians a Professional CGM product called the iPro CGM and iPro2 Professional CGM. The Company offers Web-based therapy management software solutions, including CareLink Personal software for patients and CareLink Pro software, to helps patients and their health care prov! iders con! trol their diabetes.

The Company competes with DexCom, Inc., Insulet Corporation, Johnson & Johnson and Roche Ltd.

Surgical Technologies

The Company's Surgical Technologies business develops, manufactures, and markets products and therapies to treat diseases and conditions of the ear, nose, and throat (ENT) and certain neurological disorders. In addition, the business develops, manufactures, and markets image-guided surgery and intra-operative imaging systems that facilitate surgical planning during precision cranial, spinal, sinus, and orthopedic surgeries. The products offered by the Company's Surgical Technologies business includes ENT, Neurological Technologies, Navigation and Advanced Energy. The ENT products treat diseases and conditions, such as NIM Nerve Monitoring Systems, Fusion ENT Navigation System, Hydrodebrider Endoscopic Sinus Irrigation System, Meniett Device for Meniere's Disease, Pillar Procedure for Snoring and Sleep Apnea, and Repose System for Obstructive Sleep Apnea. The Neurological Technologies products treat certain neurological disorders and conditions, such as Midas Rex Spine Shaver, the Midas Rex MR7 Pneumatic Platform, the Midas Rex Legend EHS High Speed Surgical Drill, the Strata Family of Adjustable Valves for the treatment of Hydrocephalus, Duet External Drainage & Monitoring System, the IPC System, and the Subdural Evacuating Port System.

The Navigation products are used in cranial, spinal, sinus, and orthopedic surgeries, such as the StealthStation S7 Navigation and i7 Integrated Navigation Systems, the O-Arm 2D/3D Surgical Imaging System, and the PoleStar Surgical MRI System. The products make up the Advanced Energy business: PEAK Surgery System, a tissue dissection system that consists of the PEAK PlasmaBlade and the PULSAR Generator and is cleared for use in a variety of settings, including ENT, plastic reconstructive and general surgery; and the Aquamantys System, which uses patented Transcollation technology to ! provide h! aemostatic sealing of soft tissue and bone and is cleared for use in a range of surgical procedures, including orthopedic surgery, spine, solid organ resection and thoracic procedures.

The Company competes with Gyrus ACMI, Stryker Corporation, Johnson & Johnson, Integra LifeSciences Holdings Corporation, BrainLAB, Inc., GE Healthcare, Siemens Medical Solutions USA, Inc., Philips Medical Systems, Covidien and ArthroCare Corporation.

Advisors' Opinion:

• [By Dan Caplinger, Max Macaluso, and David Williamson]

  In the following video, Fool health-care bureau chief Max Macaluso asks Dan for his pick on a stock that could benefit from Patient Protection and Affordable Care Act. Dan singles out Medtronic (NYSE: MDT  ) as a potential winner, noting that with the current government shutdown impasse in Washington, lawmakers are looking to use Obamacare as leverage to make political gains. One possible issue that could come into play in the shutdown debate is the medical-device excise tax that Obamacare imposed on Medtronic and its peers, and opponents of the tax could seek to win its repeal in exchange for support of a spending measure and debt ceiling increase, potentially returning lost profits back to Medtronic. Moreover, the recent buyout offer that Stryker (NYSE: SYK  ) made to acquire MAKO Surgical (NASDAQ: MAKO  ) has turned attention to the medical-device sector once again. Dan and Max discuss the likelihood of a congressional deal to eliminate the tax, and Fool health-care analyst David Williamson also weighs in with his assessment of whether enough bipartisan support exists for the provision to get repealed.

• [By Chuck Carnevale]

  Medtronic Inc. (MDT) My Due Diligence Example

  Medtronic Inc. was a company that I had long admired based on the historical operating excellence that it achieved through good and bad times. However, Mr. Market was consistently pricing it too high for many years, perhaps because of its excellent operating record (consistent and above-average earnings growth). Therefore, I placed it on my dream list, periodically checking its valuation and patiently waiting for an opportunity to purchase it at a sensible valuation.

• [By Reuters]

  David Mercer/APPatrick Lamanske of Champaign, Ill., works with Amanda Ziemnisky, right, of the Champaign Urbana Public Health District office in Champaign to try to sign his wife, Ping Lamanske, left, up for health care coverage through the Affordable Care Act. NEW YORK -- For Americans who are able to check out new insurance plans launched under President Barack Obama's health care reform, the price differences from state to state may be surprising. Residents of Minnesota, a Democratic-led state, are likely to pay the lowest monthly premiums in the country. Just two states away, some residents of Republican-dominated Wyoming might be surprised to find they will pay among the highest. But the ideological debate between Obamacare's supporters and opponents seems to have had little relevance when it comes to the affordability of care, the main goal of the Democratic president's signature program, health economists and actuaries say. Instead, they point to regional differences in medical costs, the relative health and age of local populations and competition among insurers as having greater influence over the monthly premiums. Those differences lead to a wide variance in prices between states, and even within states. Of the 24 states that fall below a national average of $328 in monthly premiums, laid out in a U.S. Department of Health and Human Services analysis last month, at least half are dominated by Republican state governments. The affordability of the plans will likely determine whether enough uninsured Americans, particularly young and healthy ones, sign up to make the program successful. The new insurance plans became available for enrollment nationwide on Oct. 1. But technical problems with the federal government's health care.gov website serving 36 states have blocked millions of people from accessing the information. In Wyoming, the cheapest mid-tier plan, or "silver" plan, costs $307 for a 27-year old in Laramie County, one of the state's only

Top 5 Medical Stocks To Watch Right Now: Hemispherx Biopharma Inc (HEB)

Hemispherx Biopharma, Inc. (Hemispherx) is a specialty pharmaceutical company engaged in the clinical development of new drugs therapies based on natural immune system enhancing technologies for the treatment of viral and immune based chronic disorders. Hemispherx focuses on two core pharmaceutical technology platforms Ampligen and Alferon N Injection.The commercial focus for Ampligen includes application as a treatment for Chronic Fatigue Syndrome (CFS) and as an influenza vaccine enhancer (adjuvant) for both therapeutic and preventative vaccine development. Alferon N Injection is a United States Food and Drug Administration (FDA) approved product with an indication for refractory or recurring genital warts. Alferon LDO (Low Dose Oral) is a formulation under development targeting influenza. It has three subsidiaries BioPro Corp., BioAegean Corp., and Core BioTech Corp. The Company's foreign subsidiary is Hemispherx Biopharma Europe N.V./S.A.

Ampligen

Ampligen is an experimental drug, which is undergoing clinical development for the treatment of Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS). Over 1,000 patients have participated in the Ampligen clinical trials representing the administration of more than 90,000 doses of this drug. The Company is also engaged in ongoing, experimental studies assessing the efficacy of Ampligen against influenza viruses.

Alferon N Injection

Alferon N Injection is the registered trademark for the Company's injectable formulation of natural alpha interferon. Interferons are a group of proteins produced and secreted by cells to combat diseases. The Company's natural alpha interferon is produced from human white blood cells. Alferon N Injection [Interferon alfa-n3 (human leukocyte derived)] is a highly purified, natural-source, glycosylated, multi-species alpha interferon product.

Alferon LDO (Low Dose Oral)

Alferon LDO [Low Dose Oral Interferon Alfa-n3 (Human Leukocyte Derived)]! is an experimental low-dose, oral liquid formulation of Natural Alpha Interferon and like Alferon N Injection should not cause antibody formation, which is a problem with recombinant interferon. It is an experimental immunotherapeutic that works by stimulating an immune cascade response in the cells of the mouth and throat, enabling it to bolster systemic immune response through the entire body by absorption through the oral mucosa.

The Company competes with Pfizer, GlaxoSmithKline, Merck, AstraZeneca, Baxter International, Fletcher/CSI, AVANT Immunotherapeutics, AVI BioPharma and Genta.

Top 5 Medical Stocks To Watch Right Now: Pharmacyclics Inc (PCYC)

Pharmacyclics, Inc., incorporated on April 19, 1991, is a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. The Company's clinical development and product candidates are small-molecule enzyme inhibitors designed to target biochemical pathways involved in human diseases. As of June 30, 2011, it had three drug candidates under clinical development and a number of preclinical lead molecules. This includes an inhibitor of Bruton�� tyrosine kinase (Btk) (PCI-32765) in Phase II studies in hematologic malignancies; a Btk inhibitor lead optimization program targeting autoimmune indications, an inhibitor of Factor VIIa (PCI-27483) in a Phase II clinical trial in pancreatic cancer, and a histone deacetylase (HDAC) inhibitor (PCI-24781) in Phase I and II clinical trials in solid tumors and hematological malignancies as of June 30, 2012.

As of June 30, 2012, the Company developed ibrutinib, which has demonstrated clinical activity and tolerability in Phase I and Phase II clinical trials in a variety of B-cell malignancies, including chronic lymphocytic leukemia (CLL) and a number of non-Hodgkin�� lymphoma (NHL) subtypes. CLL, mantle cell lymphoma (MCL), follicular lymphoma (FL), diffuse B-cell lymphoma (DLBCL) and multiple myeloma (MM) are specific indications of its current or planned Phase Ib/II and Phase III development program. had development programs for B-cell malignancies and autoimmune diseases. For malignant indications it has developed PCI-32765, which has demonstrated clinical activity and tolerability in Phase I and Phase II clinical trials in a range of B-cell malignancies, including chronic lymphocytic leukemia (CLL) and a number of non-Hodgkin�� lymphoma (NHL) subtypes. CLL, mantle cell lymphoma (MCL), follicular lymphoma (FL), diffuse large B cell lymphoma (DLBCL) and multiple myeloma (MM) are specific indications of its Phase II development. It has developed an assay! to measure occupancy of Btk in PBMCs using a cell-permeable fluorescently-labeled derivative of PCI-32765.

Factor VII is an enzyme that becomes activated (FVIIa) by binding to the cell surface protein tissue factor (TF), a protein found in the body that helps to trigger the process of blood clotting in response to injury. TF is over expressed in many cancers including gastric, breast, colon, lung, prostate, ovarian and pancreatic cancers. In these tumors, the FVIIa/TF complex induces intracellular signaling pathways by activating protease activated receptor 2 (PAR-2), another cell-surface protein. This in turn increases the expression of interleukin-8 (IL-8), a protein produced by white blood cells and other immune cells in response to pathogenic stimulation, and vascular endothelial growth factor (VEGF), a signal protein produced by cells that stimulate the growth of blood vessels. Both proteins play an important role in tumor growth and metastases as well as angiogenesis (growth of new blood vessels). FVIIa/TF complex also initiates the coagulation (a process by which blood forms clots) processes implicated in the high incidence of thromboembolic (the process by which the blood clots within a blood vessel) complications seen in patients with TF-expressing cancers. Thromboembolic events are a cause of death in patients with cancer and anticoagulant treatment has been shown to improve survival in a variety of cancers (Klerk et al. JCO. 2005).

PCI-27483 Factor VIIa Inhibitor

The Company�� Factor VIIa inhibitor PCI-27483 is a first-in-human small molecule inhibitor that selectively targets FVIIa. As an inhibitor of FVIIa, PCI-27483 has two potential mechanisms of action: inhibition of intracellular signaling involved in tumor growth and metastases and inhibition of early coagulation processes associated with thromboembolism.

Factor VIIa PCI-27483 Clinical Development Update

A multicenter Phase I/II of PCI-27483 in patients with locally a! dvanced o! r metastatic pancreatic cancer that are either receiving or are planned to receive gemcitabine therapy has completed enrollment. The Phase II portion of the study randomized patients to receive either gemcitabine alone or gemcitabine plus PCI-27483 (1.2 mg/kg twice daily). The objectives are to assess the safety of FVIIa Inhibitor PCI-27483 at pharmacologically active dose levels, to assess potential inhibition of tumor progression and to obtain initial information of the effects on the incidence of thromboembolic events. Due to a paradigm shift away from the use of gemcitabine alone for the treatment of pancreatic cancer, enrolling patients in this randomized study has been challenging. PCYC is evaluating other alternatives for development of this agent.

A multicenter Phase I/II of PCI-27483 in patients with locally advanced or metastatic pancreatic cancer that are either receiving or are planned to receive gemcitabine therapy has completed enrollment. The Phase II portion of the study randomized patients to receive either gemcitabine alone or gemcitabine plus PCI-27483 (1.2 mg/kg twice daily). PCI-27483 is covered by United States patents and patent applications and counterpart patents and patent applications in fourteen ex-United States territories, including Europe, Canada, Mexico, Japan, China, India, South Korea, Australia and Brazil.

Advisors' Opinion:

• [By Dan Caplinger]

  Yet J&J isn't satisfied with what it already has. Last week, the company joined with Pharmacyclics (NASDAQ: PCYC  ) to seek approval for their lymphoma drug ibrutinib. J&J will get a 50% share of any profit from the venture, and J&J cited a Piper Jaffray estimate that just one of its indications could produce sales of more than $4 billion.

• [By Sean Williams]

  We've witnessed first-hand what a crapshoot the space can be. Four years ago,�Pharmacyclics (NASDAQ: PCYC  ) looked like just another biotechnology company that was going to waste away into nothing with its share price trading for less than $1. In the years since, it's forged nearly a $1 billion licensing partnership with Johnson & Johnson (NYSE: JNJ  ) for its relapsed/refractory mantle cell lymphoma and chronic lymphocytic leukemia drug hopeful, Ibrutinib, and delivered some of the strongest overall response rates ever witnessed in trials for these two diseases. Shares of Pharmacyclics closed yesterday above $80 per share.

• [By John Udovich]

  Bubble talk, biotech IPO setbacks plus news�about small cap biotechs like Intrexon Corp (NYSE: XON) and TNI BioTech (OTCMKTS: TNIB) have dominated biotech news this week or in recent weeks. Just consider the following news:

  Why There is No Biotech Bubble & Where to Look for Value in Biotech. Marshall Gordon, the Director and senior health-care analyst of ClearBridge Investments, was recently interviewed by Barron�� where he stated his belief that there is no biotech bubble because biotech stocks have delivered new drugs and have shown an ability to innovate. With that said, he added that the sector got ahead of itself while some biotechs suffered setbacks plus hedge funds decided to trim risk from their portfolios. Nevertheless, Marshall likes or is watching mid cap biotechs BioMarin Pharmaceutical Inc (NASDAQ: BMRN) and Pharmacyclics, Inc (NASDAQ: PCYC) along with small cap biotechs�Pacira Pharmaceuticals Inc (NASDAQ: PCRX) and Clovis Oncology Inc (NASDAQ: CLVS). He also added that recent biotech IPOs have been lesser quality names than earlier offerings. A Trio of Biotech�IPO Setbacks. FierceBiotech has�summarized how a trio of biotech IPO have suffered setbacks. Specifically, Relypsa (NASDAQ: RLYP), a late-stage biotech developing a treatment for hyperkalemia,�slashed its asking price on 6.9 million shares to $12 a share to raise $82 million�from a range of $16 to $19 a share while�Xencor (NASDAQ: XNCR), a biotech developing antibodies for severe autoimmune/allergic diseases and cancer,�has dropped its IPO price to $7 a share to raise $75 million from a range of $14 to $16. Meanwhile, Celladon, which is developing a first-in-class gene therapy for patients with systolic heart failure, has postponed its IPO citing poor market conditions. Coming�Biotech IPOs. Nevertheless, FierceBiotech has noted that GeNO Healthcare (NASDAQ: GNO) is looking to raise $50 million for its�new, patient-friendly approach for delivering inhaled nitric oxide on the

Is Exxon Mobil a Buy Near All Time Highs?

With shares of Exxon Mobil (NYSE:XOM) trading around $97, is XOM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Exxon Mobil is a manufacturer and marketer of commodity petrochemicals like olefins, aromatics, polyethylene, and polypropylene plastics, as well as a range of specialty products. The company has a number of divisions and affiliates with names that include ExxonMobil, Exxon, Esso, and Mobil, which operate or market products in the United States and other countries. Exxon Mobil's principal business is energy, involving the exploration for and production of crude oil and natural gas; manufacture of petroleum products; and transportation and sale of crude oil, natural gas, and petroleum products.

Exxon Mobil is leading the way in calling for the United States to end restrictions on the exporting of oil, the Wall Street Journal reports. The ban on the exportation of oil from the United States dates back to the 1970s, when fears over the looming energy crisis caused the government to institute the measure. With gasoline prices going through the roof, and shortages occurring at gas stations throughout the country, it seemed like a logical step to keep as many fossil fuels as possible within U.S. borders.

Top 10 Safest Companies To Buy For 2014

T = Technicals on the Stock Chart Are Strong

Exxon Mobil stock has been surging higher in recent quarters. The stock is currently trading near all time highs and looks ready to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Exxon Mobil is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Exxon Mobil options	18.18%	96%	93%

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

	Put IV Skew	Call IV Skew
January Options	Flat	Average
February Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-14.35%	-54.55%	6.00%	11.33%
Revenue Growth (Y-O-Y)	-2.41%	-16.41%	-12.29%	-5.29%
Earnings Reaction	0.91%	-1.08%	-1.52%	0.07%

Exxon Mobil has seen mixed earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Exxon Mobil’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Exxon Mobil stock done relative to its peers, BP (NYSE:BP), Chevron (NYSE:CVX), Royal Dutch Shell (NYSE:RDSA), and sector?

	Exxon Mobil	BP	Chevron	Royal Dutch Shell	Sector
Year-to-Date Return	10.67%	11.52%	11.55%	-1.60%	9.03%

Exxon Mobil has been an average relative performer, year-to-date.

Conclusion

Exxon Mobil is a provider of essential commodity products and services that people and companies use around the world. The company is leading the way in calling for the United States to end restrictions on the exporting of oil. The stock has been surging higher in recent quarters and is currently trading near all time highs. Over the last four quarters, earnings have been mixed while revenues have been decreasing, which has produced conflicting feelings among investors. Relative to its peers and sector, Exxon Mobil has been an average year-to-date performer. WAIT AND SEE what Exxon Mobil does this quarter.

Five-Year lows: Frank’s International NV, Eldorado Gold Corp, TransAlta Corporation, CVR Refining LP

10 Best Cheap Stocks To Invest In 2014

According to GuruFocus list of five-year lows, these Guru stocks have reached their five-year lows: Frank's International NV, Eldorado Gold Corp., TransAlta Corporation and CVR Refining LP.

Frank's International NV (FI) Reached the Five-Year Low of $26.39

The prices of Frank's International NV (FI) shares have declined to close to the five-year low of $26.39, which is 29.4% off the five-year high of $32.70. Frank's International NV is owned by eight Gurus we are tracking. Among them, eight have added to their positions during the past quarter. One one reduced their positions. Frank's International NV provides tubular services to both offshore and onshore exploration and production companies. Frank's International NV has a market cap of $4.06 billion; its shares were traded at around $26.39 with a P/E ratio of 17.80 and P/S ratio of 3.79. The dividend yield of Frank's International NV stocks is 0.28%.

Frank's International NV reported net sales of $270.1 million and net income from continuing operations of $59.5 million for their 2013 third financial quarter.

Five GuruFocus Gurus, John Burbank, John Keeley, Ron Baron, George Soros and PRIMECAP Management, all initiated their position in Frank's International NV.

See Remarks Mark Gerard Margavio, See Remarks, 10% Owner Donald K. Mosing¸ Brian D. Baird, Vice President of Engineering Charles Michael Webre and Director Sheldon R. Erikson bought 83,000 shares of FI stock in August and November.

Eldorado Gold Corp. (EGO) Reached the Five-Year Low of $5.66

The prices of Eldorado Gold Corp. (EGO) shares have declined to close to the five-year low of $5.66, which is 75.4% off the five-year high of $22.12. Eldorado Gold Corp. is owned by six Gurus we are tracking. Among them, five have added to their positions during the past quarter. Two reduced their positions. Eldorado Gol! d Corp. is a gold exploration, development, mining and production company. Eldorado Gold Corp. has a market cap of $4.04 billion; its shares were traded at around $5.66 with a P/E ratio of 42.60 and P/S ratio of 6.65. The dividend yield of Eldorado Gold Corp. stocks is 2.09%. Eldorado Gold Corp. had an annual average earnings growth of 15.50% over the past five years.

Eldorado Gold Corp. announced their 2013 third quarter financial results. The company reported revenues of $287.3 million and net earnings per diluted share of $0.05.

Third Avenue Management, who owns 301,600 shares, and Jean-Marie Eveillard, who owns 6,443,257 shares, both increased their positions in EGO. Mario Gabelli and Ray Dalio kept their positions unchanged.

TransAlta Corporation (TAC) Reached the Five-Year Low of $12.78

The prices of TransAlta Corporation (TAC) shares have declined to close to the five-year low of $12.78, which is 47.9% off the five-year high of $23.30. TransAlta Corp. is owned by one Guru we are tracking. Among them, zero have added to their positions during the past quarter. One reduced their position. TransAlta Corp. was incorporated under the Canada Business Corporations Act in March 1985. TransAlta Corp. has a market cap of $3.43 billion; its shares were traded at around $12.78 with a P/E ratio of 96.80 and P/S ratio of 1.46. The dividend yield of TransAlta Corp. stocks is 8.71%. TransAlta Corp. had an annual average earnings growth of 0.20% over the past 10 years.

TransAlta Corporation reported their 2013 third quarter financial results with revenues of $623 million and net loss of $9 million.

CVR Refining LP (CVRR) Reached the Five-Year Low of $22.11

The prices of CVR Refining LP (CVRR) shares have declined to close to the five-year low of $22.11, which is 42.2% off the five-year high of $35.98. CVR Refining LP is owned by two Gurus we are tracking. Among them, zero have added to their positions during the past quarter. Zero reduced their positions. CVR Refining LP! is an in! dependent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. CVR Refining LP has a market cap of $3.25 billion; its shares were traded at around $22.11 with a P/E ratio of 5.20 and P/S ratio of 0.52. The dividend yield of CVR Refining LP stocks is 14.65%.

CVR Refining LP announced revenues of $1.9 billion and net income of $86.0 million for their 2013 third quarter financial results.

Carl Icahn, who owns 6 million shares as of Sept. 30, 2013, kept his position in CVR Refining LP unchanged.

SVP, General Counsel and Secretary Edmund S, Gross bought 8,000 shares of CVRR stock on 08/06/2013 at the average price of $26.41. Director Keith Cozza sold 10,000 shares of CVRR stock on 09/13/2013 at the average price of $26.34.

Also check out: Carl Icahn Undervalued Stocks Carl Icahn Top Growth Companies Carl Icahn High Yield stocks, and Stocks that Carl Icahn keeps buying John Burbank Undervalued Stocks John Burbank Top Growth Companies John Burbank High Yield stocks, and Stocks that John Burbank keeps buying

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Manny Pacquiao Boxing IRS: Think Dionne Warwick, Not Willie Nelson

 

Filipino boxer Manny Pacquiao at Waterfront Hotel in Cebu City. This is cropped from a resized version of a much larger photo. Sorry for the small size. (Photo credit: Wikipedia)

Filipino boxer Manny Pacquiao is famously feisty. A comeback kid adult, the versatile boxer won world championships in eight weight classes. He is even a lawmaker representing Sarangani province. Yet Philippine tax authorities say he owes 2.2 billion pesos ($50.3 million). They want Pacquiao to produce his U.S. tax records and have moved to seize his assets.

The dispute is all about his boxing earnings in the U.S. Proving how much Pacquiao paid the IRS would help reduce his Philippine bill. Unfortunately, the IRS has weighed in too, slapping on a Federal Tax Lien for $18.3 million in allegedly unpaid taxes for 2006 through 2010.

A tax lien is standard procedure, designed to protect the IRS's interest. Beating one is tough. Dionne Warwick did it, but not Willie Nelson. A tax lien goes against everything, real estate, personal property, financial assets and more.

Given that Pacquiao has fought almost exclusively in the US, the IRS claims he didn't pay $1.160 million in 2006, $2.035 million in 2007, $2.862 million in 2008, $8.022 million in 2009 and $4.231 million in 2010. As Paul Caron quipped, Manny Pacquiao's Next Fight: The Tax Man. After 14 fights in the U.S., he did not want to return to a 39.6% rate.

Because Pacquiao is not a U.S. resident or citizen, he does not pay U.S. tax on monies earned elsewhere. Foreign athletes must file U.S. income tax returns and face special withholding rules. They generally must pay U.S. income tax on their U.S.-source income, but what is considered U.S.-source can be debated.

Disputes about how much to allocate and where endorsement earnings should be taxed are common. The IRS has a special program targeting foreign athletes and entertainers. Depending on an athlete's home country, treaty benefits can help.

Sadly for Pacquiao, usually by tax lien time much hasn't gone well. There may be a pile of notices somewhere that were not timely disputed. Tax liens can be about income, property, or even estate taxes. They can be state, federal or local.

Do tax liens ever turn out to be wrong? Occasionally, yes. After numerous run-ins with the IRS, Dionne Warwick had a $2.2 million federal tax lien filed against her in 2009 for unpaid taxes from the 1990s. But the IRS revoked it when it turned out to be an accounting mistake. Ms. Warwick still owed the IRS just under $1 million though.

Despite high earnings, tax bills for celebrities may go to managers or slip through the cracks. Many have suffered liens. Still, the IRS can file a Notice of Federal Tax Lien only after:

IRS assesses the liability; IRS sends a Notice and Demand for Payment saying how much you owe; and You fail to fully pay within 10 days.

Top Gold Stocks To Buy Right Now

The IRS automatically has a lien and files notice so creditors know. IRS tax liens cover all property even that acquired after the lien filing. The courts use it to establish priority in bankruptcy proceedings and real estate sales. IRS liens last 10 years, and usually release automatically if IRS has not refiled them.

However, you're better off to get them removed immediately. Getting the IRS to release a lien usually involves: (1) paying the tax, interest and penalties; or (2) posting a bond guaranteeing payment. Even then the IRS may take 30 days. State or local government charges to file and release the lien are added to the amount you owe.

If the IRS knowingly or negligently fails to release a Notice of Federal Tax Lien when it should, you can sue for damages. But my guess is that Mr. Pacquiao won't be suing anytime soon. Instead, he'll be slogging through twelve rounds both with the IRS and with Philippine authorities.

You can reach me at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

 

 

 

Is Pepsi a Solid Portfolio Play?

With shares of Pepsi (NYSE:PEP) trading around $81, is PEP an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pepsi operates as a food and beverage company worldwide. The company is organized into four business units: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East, and Africa. It manufactures, markets, and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, dairy products, and other foods. Convenience foods are seeing significant demand worldwide as consumers in growing economies are opting for these products. Pepsi stands to see a continued rise in profits for many years as a leading provider of quick, convenient, inexpensive, and enjoyable products worldwide.

Pepsi has scored a win over chief rival The Coca-Cola Co. (NYSE: KO), taking the soft drink business at the more than 975 U.S. locations of Buffalo Wild Wings Inc. (NASDAQ: BWLD), according to a report by the New York Times. A formal announcement is expected later Thursday.

T = Technicals on the Stock Chart Are Mixed

Pepsi stock has seen a consistent uptrend in the last several years. The stock is currently pulling back from highs and may need time to consolidate before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Pepsi is trading between its rising key averages, which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	Hot Cheap Companies For 2014 30-Day IV Percentile	90-Day IV Percentile
Pepsi options	18.73%	96%	93%

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

	Put IV Skew	Call IV Skew
December Options	Average	Average
January Options	Average	Average

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	1.65%	36.17%	-2.82%	18.81%
Revenue Growth (Y-O-Y)	1.54%	2.12%	1.23%	-1.01%
Earnings Reaction	2.07%	-0.64%	3.04%	1.09%

Pepsi has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been optimistic about Pepsi’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Pepsi stock done relative to its peers, Coca-Cola (NYSE:KO), Dr. Pepper Snapple (NYSE:DPS), Monster Beverage (NASDAQ:MNST), and sector?

	Pepsi	Coca-Cola	Dr.Pepper Snapple	Monster Beverage	Sector
Year-to-Date Return	15.08%	3.82%	3.69%	12.52%	9.77%

Pepsi has been a relative performance leader, year-to-date.

Conclusion

Pepsi provides convenient and affordable beverage and food items to consumers in a multitude of countries around the world. The company has scored a win over chief rival The Coca-Cola Co., taking the soft drink business at the more than 975 U.S. locations of Buffalo Wild Wings Inc. The stock has been moving higher in recent years, but is now pulling back. Over the last four quarters, earnings and revenues have been rising, which has left investors optimistic about earnings announcements. Relative to its peers and sector, Pepsi has been a year-to-date performance leader. Look for Pepsi to OUTPERFORM.

5 Best High Tech Stocks To Buy Right Now

On Thursday, Toronto-Dominion (NYSE: TD  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, kneejerk reaction to news that turns out to be exactly the wrong move.

Even as U.S. banks were struggling during the mortgage meltdown in 2008, Toronto-Dominion and its Canadian peers held up relatively well. But the persistent strength in Canada's housing market has led to fears that it might be headed for a bubble of its own. Let's take an early look at what's been happening with Toronto-Dominion over the past quarter and what we're likely to see in its quarterly report.

5 Best High Tech Stocks To Buy Right Now: ARMOUR Residential REIT Inc (ARR)

ARMOUR Residential REIT, Inc.( ARMOUR), incorporated on February 5, 2008, is an externally-managed Maryland corporation managed by ARMOUR Residential REIT, Inc. The Company invests primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage backed securities (RMBS). These securities are issued or guaranteed by a United States Government-sponsored entity (GSE), such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), or are guaranteed by the Government National Mortgage Administration (Ginnie Mae) collectively, Agency Securities. From time to time, a portion of its portfolio may be invested in unsecured notes and bonds issued by United States Government-chartered entities, collectively, Agency Debt. As of December 31, 2012, Agency Securities account for 100% of its portfolio.

The Company seeks long-term investment returns by investing its equity capital and borrowed funds in its targeted asset class of Agency Securities. The Company�� assets have been invested in Agency Securities or money market instruments, primarily deposits at federally chartered banks. The Company borrows against its Agency Securities using repurchase agreements. Its borrowings generally have maturities that may range from one month or less, up to one year, although occasionally it may enter into longer dated borrowing agreements to more closely match the rate adjustment period of its Agency Securities.

Advisors' Opinion:

• [By Zain Zafar]

  In terms of book value loss, Hatteras' performance can be compared to that of ARMOUR Residential (NYSE: ARR  ) , whose book value per share declined by 19% from the previous quarter. However, ARMOUR Residential follows a strategy of investing primarily in long-duration fixed-rate MBSes, which can carry much larger interest rate risk.

• [By Amanda Alix]

  In a show of bravado, several mREITs have declared dividends within the past week, with nary a decrease in sight. Capstead Mortgage (NYSE: CMO  ) just announced the continuation of its $0.31 per share�quarterly dividend, which was upped from $0.30 just this past March. CYS Investments (NYSE: CYS  ) revealed its intention to raise its own quarterly payout to $0.34�from $0.32 per share earlier this week, and Armour Residential (NYSE: ARR  ) has joined in, keeping its monthly $0.07 per share dividend firmly in place, even into the third quarter.

5 Best High Tech Stocks To Buy Right Now: Cbeyond Inc.(CBEY)

Cbeyond, Inc. provides managed information technology (IT) and communications services to small businesses in the United States. Its services include local and long-distance voice, broadband Internet, mobile services, broadband laptop access, voicemail, email, Web hosting, fax-to-email, data backup, file-sharing, virtual private networking, and cloud servers; and cloud applications, data center infrastructure as a service, cloud private branch exchange phone systems, metro Ethernet, multi-protocol label switching, information security, administration management, and professional services to migrate and manage customer environments. It sells its products and services through direct sales; value-added resellers, local area network consultants, and other IT and communications consultants; and managed services providers, systems integrators, and software vendors. The company was formerly known as Cbeyond Communications, Inc. and changed its name to Cbeyond, Inc. in July 2006. Cbeyond, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By Monica Gerson]

  Cbeyond (NASDAQ: CBEY) soared 6.29% to $6.76 in the pre-market trading. Cbeyond shares have dropped 10.67% over the past 52 weeks, while the S&P 500 index has gained 26.42% in the same period.

Hot Growth Stocks To Invest In Right Now: Pioneer High Income Trust(PHT)

Pioneer High Income Trust is a closed ended fixed income mutual fund launched and managed by Pioneer Investment Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in below-investment-grade bonds, high-yield corporate bonds and convertible securities. It invests in fixed income securities with average credit quality of B. The fund benchmarks the performance of its portfolio against the Merrill Lynch High Yield Master II Index. Pioneer High Income Trust was formed on January 30, 2002 and is domiciled in the United States.

5 Best High Tech Stocks To Buy Right Now: Echelon Corporation(ELON)

Echelon Corporation develops, markets, and supports energy control networking solutions worldwide. Its solutions enable everyday devices, such as air conditioners, appliances, electricity meters, light switches, thermostats, and valves to be inter-connected; and energy control networking platform powers energy-savings applications for smart grid, smart cities, and smart buildings. The company?s product portfolio includes twisted pair smart transceivers that can be embedded into building automation devices, such as sensors, thermostats, motion detectors, air handlers, and chillers; SmartServer controller, a system manager and field controller for building networks and smart-energy applications; LonWorks control networks software (LNS) and OpenLNS operating system, which are development and integration tools; and third party energy management or grid analytics software, and apps for the SmartServer in hosted or server-based configurations. It also offers PL/RF Bridge to con nect segments of streetlights to a SmartServer; smart meters that provide load profiling, time-of-use, display of energy consumption, and prepaid metering payment capabilities; edge control nodes that connect smart meters and open smart grid protocol (OGSP) -based grid devices; and networked energy system software to retrieve data from smart meters and other OSGP-based devices. In addition, the company provides Element Manager, a browser based software that provides network analysis, graphed statistics, and automated network management; and control point modules that enable original equipment manufacturers (OEMs) to build OSGP compliant smart grid devices. It serves OEMs and systems integrators in the building, industrial, transportation, utility/home, and other automation markets through direct sales organization, electronics representatives, value-added resellers, and distributors. Echelon Corporation was founded in 1988 and is headquartered in San Jose, California.

Advisors' Opinion:

• [By John Udovich]

  Although small cap smart metering stock Silver Spring Networks Inc (NYSE: SSNI) recently soared on earnings, it also plunged yesterday�after loosing�out on important contract ��meaning it might be time to take a closer look at it along with other smart metering stocks like Itron, Inc (NASDAQ: ITRI) or Echelon Corporation (NASDAQ: ELON) to see if they are smart investments.

5 Best High Tech Stocks To Buy Right Now: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Tim Beyers]

  Who wins? We won't know for years, but Southwest is already the leading buyer of the MAX, and as such, seems to be a likely benefactor. There's also Alaska Airlines (NYSE: ALK  ) , which already flies from the continental west coast to various destinations in the Hawaiian Islands. The airline has ordered 37 of the planes to upgrade its fleet.

• [By Adam Levine-Weinberg]

  Unintended consequences?
  As I detailed last month, virtually every major U.S. airline is participating in the upgauging trend. Some, like JetBlue Airways (NASDAQ: JBLU  ) , are expanding their fleets with larger aircraft than they have previously flown. Others, including Alaska Air (NYSE: ALK  ) , are retrofitting existing planes to fit more seats onboard. Southwest Airlines (NYSE: LUV  ) is doing both of these things! Others, like Delta Air Lines (NYSE: DAL  ) , are buying larger planes to replace smaller ones that are being removed from service.