3 Stocks With Heavy Insider Interest

Does a rising tide lift all boats? No, but it does lift most of them. 

Some stocks aren't getting much attention in this surging bull market, and it's often up to insiders to help these stocks get attention. 

Here are three stocks with recent solid clusters of insider buying. (All data is courtesy of InsiderInsights.com.)

	Calamos Asset Management (Nasdaq: CLMS) I've come across this asset management firm on several occasions in recent months, as it has appeared on my screens regarding companies with share buybacks, strong free cash flow yields, solid dividend yields and a valuation near book value. Now you can add insider buying to that list. Company founder John Calamos Sr., who launched the firm in the 1970s, has been actively buying shares for two straight months. In that time, he's picked up more than 300,000 shares at an average price of around $10.50 a share. That's boosted his entire ownership stake above 1.5 million shares, which now makes him the largest shareholder, along with Alpine Investment Management. This buying comes after shares have slid 25% over the past two years, at a time when the S&P 500 has risen 25%. And you can chalk that underperformance up to a slump in Calamos' domestic stock funds, which has caused some investors to flee. Assets under management fell from $36 billion in March 2012 to $29 billion in March 2013. The heavy recent insider buying suggests that the bleeding has ended and that a pair of recently launched funds is gaining traction. Keep an eye out for these trends when quarterly results are released in early August, as the deep value metrics for this stock could help attract fresh investor attention.
	Lionbridge Technologies (Nasdaq: LIOX) "We need to grow and shrink." That was the seemingly mixed message put forth on a recent conference call by executives at Lionbridge. They were referring to the need to hire an outside executive to help drive top-line growth -- while also implementing plans to shave $5 million to $7 million from its cost structure. You can understand their reasoning by glancing at Lionbridge's income statement. Sales of $457 million and operating income of $10 million were identical to figures posted back in 2007. Yet a look at this company's business model suggests that growth and operating margins should be more impressive. Lionbridge provides a variety of language translation services to large enterprises. The company employs legions of bilingual translators to help with documents, meetings and other corporate functions and also provides automated language translation tools that companies can use on their websites. Considering the speed with which companies are entering new global markets. Lionbridge should be seeing strong demand. The company attributes the lack of sales growth to ongoing weakness in Europe, where major companies are holding back on discretionary spending. If you dig into the transcript of Lionbridge's recent conference call, however, you'll see the seeds of a rebound. Microsoft (Nasdaq: MSFT), for example, is utilizing the company's services in many of its foreign markets as it rolls out Windows 8, which exemplifies the company's desire to get away from specific short-term one-off projects and instead participate in longer-term business development programs. The bullish tone of the quarterly discussion was enough to spark the interest of Glenhill Capital, which began aggressively buying the stock in May and now owns more than 10% of the company, qualifying this investment management firm as an "insider."  To justify Glenhill's purchases, Lionbridge will need to start generating firmer profit margins, either through those planned cost cuts or through organic revenue growth. If margins do strengthen, many other investors will take note of the sub-$200 million market value for a firm that has a revenue base exceeding $400 million.
	Synta Pharmaceuticals (Nasdaq: SNTA) After plunging from $10 in April to a recent $5.20, insiders have been actively buying up shares of this cancer-focused biotech drug developer. The bulk of the purchases, representing seven different insiders and more than 2 million shares, have come in the $4.50 to $5 range. Top 10 Medical Stocks To Own Right Now Synta has been testing ganetespib, which targets non-small cell lung cancer (NSCLC). Shares tumbled after the release of Phase II testing that showed decent though unspectacular levels of efficacy. Biotech investors often need to see robust Phase II data if they are to stick around through several more years of clinical trials. Yet the insider buying seems to corroborate the sentiment of several analysts that ganetespib still holds a great deal of promise, since it did extend patients' lives by several months and had a fairly solid safety profile.  "The bottom line is that this trial is not yet completed," noted analysts at MLV & Co. "We believe that this drug will eventually show substantial clinical benefit."  Later in the third quarter (or early in the fourth quarter), Synta is expected to reveal deeper data sets for the current Phase II trials, and presumably positive ongoing data regarding patient survival rates is the factor behind the strong level of insider buying.

Risks to Consider: These insiders appear to be pegging their hopes on improved data in coming months, and if that doesn't happen, shares will continue to languish.

Action to Take --> We'll get a clear read on how these companies are progressing in coming months, but the recent heavy insider buying at each company could signal that the worst has passed and better days lie ahead.

P.S. -- Insiders are expecting big things from these little-known companies. My colleague Andy Obermueller has similar expectations for a tiny soda company that's threatening to supplant Coke and Pepsi. You can find the name of this company -- and 10 other bold investment calls -- in his new report, "The 11 Most Shocking Investment Predictions For 2014." 

Don't Get Too Worked Up Over Aircastle LTD's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Aircastle LTD (NYSE: AYR  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Aircastle LTD burned $52.3 million cash while it booked net income of $23.3 million. That means it burned through all its revenue and more. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Aircastle LTD look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 17.2% of operating cash flow coming from questionable sources, Aircastle LTD investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 0.9% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Can your retirement portfolio provide you with enough income to last? You'll need more than Aircastle LTD. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Aircastle LTD to My Watchlist.

Icahn Says Dell Can't Change Voting Rules

Last week's increased buyout offer for Dell (NASDAQ: DELL  ) coming from Michael Dell and investment firm Silver Lake, with that offer's accompanying request for a change in proxy voting rules, has elicited a response from buyout opposition leaders Carl Icahn and Southeastern Asset Management.

Today, Icahn and Southeastern issued an open letter to the special committee of Dell's board of directors, saying that the change in "the voting method for 'Unaffiliated Stockholder Approval' for the proposed Michael Dell/Silver Lake freeze-out merger raises serious questions for the Special Committee."

The original agreed-upon rules call for non-voted shares to be cast as "no" votes to the buyout. Michael Dell wrote the special committee last week that the rule should be changed because it allows a minority of unaffiliated stockholders to then block the deal. Shares that aren't voted should be ignored, he said, to allow the majority of unaffiliated stockholders to decide the vote.

But as Icahn and Southeastern wrote: "Michael Dell and Silver Lake agreed to a specific voting requirement to approve their deal. ... [They] have now offered to pay a dime for a new method of voting designed to prevent stockholders from passively dissenting on the proposed merger. We view this as a cynical attempt to circumvent the process."

Last Wednesday, Michael Dell and Silver Lake increased their offer from $13.65 a share to $13.75 a share. At that time, Dell's special committee adjourned the stockholders meeting without the scheduled buyout vote and rescheduled it for Aug. 2.

Why VeriFone Systems Shares Plunged

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

What: Shares of VeriFone Systems (NYSE: PAY  ) have plunged today by as much as 20% today after the company announced earnings with soft guidance.

So what: Non-GAAP revenue in the second quarter came in at $430 million, shy of the $440.3 million consensus estimate. The company posted non-GAAP net income per share of $0.42, similarly short of the $0.47 per share adjusted profit that investors were expecting. Interim CEO Richard McGinn said the company is "keenly aware" of the challenges it faces, but is investing heavily in a turnaround.

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Now what: Guidance for the third quarter calls for adjusted revenue of about $400 million, with adjusted earnings per share in the ballpark of $0.20. That forecast is significantly below the $460.5 million in sales and $0.50 per share profit that the Street was modeling for. Jefferies is keeping a hold rating while lowering its price target to $16, while UBS is defending its buy rating and says the problems are fixable.

Interested in more info on VeriFone Systems? Add it to your watchlist by clicking here.

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Warning: Invest In 'Dividend Blacklist' Stocks At Your Own Risk

If you've paid close attention to the markets here lately, it may seem like many companies -- as well as investors -- have caught "dividend fever." And for good reason.

With interest rates near record lows and companies sitting on record amounts of cash, it's been prime season for dividends. Times are good, and companies are feeling generous.

Companies have been hiking their payouts at a steady pace in recent years and show no sign of letting up. In fact, FactSet Research analyzed the broad spectrum of publicly traded U.S. stocks and found that companies paid out nearly $1.1 trillion in dividends in 2012. That's roughly 20% higher than a year earlier.

The prospects for 2013 are looking even better. According to a recent report by Standard & Poor's, companies are on track for a record year for dividend payments. Companies boosted dividend payments by 12% in the first quarter alone and 15.5% in the second quarter -- a trend that should continue well into the future.

 

I spend a lot of time talking about the benefits of investing in solid dividend payers. And now may be one of the best times to invest in these kinds of companies. Many of these companies are flush with cash and primed for giant dividend increases.

But today, I'm here to tell you the picture is not always rosy.

As we all know, history repeats itself. Just five years ago, dozens of companies were forced to reduce -- or completely ditch -- their dividends as profits dried up and companies took a more defensive posture. So even as you scour the landscape for companies capable of solid dividend growth, you also need to steer clear of ones that are forced to buck the current trend and slash their payouts.

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Here are four warning signs of a company with a vulnerable dividend:

1. An unsustainable payout ratio
Companies tend to dedicate 20% to 40% of their profits to their dividend. But when the payout ratio (dividend payments dividend by net income) rises above the 50% mark, you may want to investigate what's going on. Trouble often begins when profits begin to fall. It's a good exercise to look up the current payout ratio for all of your current holdings. If that figure has been rising fast toward 100%, the company may soon have to take the unpopular but necessary step of reducing or eliminating the dividend.

Keep in mind that some types of investment vehicles, such as master limited partnerships and real estate investment trusts are required to pay 90% or more of their profits to investors. So in these cases, a payout near 100% is neither uncommon nor undesirable.

2. Too much debt
In a move that reeks of recklessness, some companies may actually start to borrow money to support their rising dividend payments. Taking on debt increases the risk that a company will run into deep trouble if the economy slumps. The problems can be compounded if a portion of the debt is due in just the next year or two. Pretty soon, the company will be forced to choose between paying back its lenders and defending the dividend payments. And in this fight, the lenders will always win.

Take office machines supplier Pitney Bowes (NYSE: PBI) as an example. Earlier this year it was one of the top-yielding stocks in the S&P 500. But, the company was saddled with more debt than twice its cash levels. This mature company was unlikely to take on any more debt, and roughly 70% of its income was paid out to dividends in 2012. Not surprisingly, this company eventually had to chop its dividend in half in April.

3. Industry health
Defensive industries such as electric utilities or packaged food makers tend to generate steady financial results in any economic climate. As a result, they can pay steadily growing dividends year after year. But many companies toil in highly cyclical industries -- such as technology, construction, residential, or auto manufacturing -- that can go from bust to boom and back to bust in less than a decade. And when the inevitable cyclical downturn arrives, sales fall, cash flows dry up, and the dividend must be cut if the company's earnings can't keep up.

4. 'Too good too be true' yields
In most instances, if you see a stock sporting a dividend yield in excess of 10%, you should steer clear. Why's that? Because if a company was in a strong financial position and the investment community generally perceived future dividend payment streams to be safe, then they would rush to buy the stock. The resulting rising stock price would push the dividend yield lower. In effect, the market has natural forces that spot high-quality, high-yield stocks and then corrects the anomaly.

We already took note of Pitney Bowes' double-digit yield, and explained why the good times couldn't last, but other high-yielders are also lurking out there, waiting to lure in unwitting investors, only to punish them later.

A few examples may include NTELOS Holdings (Nasdaq: NTLS), Windstream Corp. (NYSE: WIN) and Prospect Capital (Nasdaq: PSEC), two of which have dividend yields in excess of 10%. These yields are too good to be true.

Trust me, I know it's not fun to think about what it would be like to spend part of your nest egg on an income stock -- only to see the dividend get cut and then have to deal with the ensuing panic.

That's exactly why I use these rules in every issue of High-Yield PRO, to seperate the quality high-yield stocks from the ones that belong on my "Dividend Blacklist" -- which shows readers the most troubled high-yielders on the market that should be avoided at all costs.

You owe it to yourself to examine your portfolio holdings for these warning signs before it's too late. But it would be even wiser to keep these points in mind before you ever buy a stock that pays a dividend.

P.S. -- These rules have helped my readers safely capture yields of up to 10.7% and gains as high as 245%. And starting right now, you can be on your way to similar results. I've just put together a brand-new report that will give you three of my favorite, safe, high-yield picks as a gift to help get you started on your very own High-Yield PRO portfolio today. To view this brief report, click here. 

Why Nautilus Shares Tuckered Out

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

What: Shares of Nautilus (NYSE: NLS  ) , a consumer fitness products maker, shed as much as 10% after receiving an analyst downgrade before the opening bell.

So what: Research firm B. Riley & Co. dropped its rating on Nautilus to neutral, from buy, and set a price target of $10 on shares. The price target represents just 2.4% upside from yesterday's closing value, and was based purely on valuation.

Now what: Regardless of how we feel about any particular stock, we have to remember to take analyst actions with a grain of salt as they're often short-term movers of stock prices, and rarely affect our long-term investing thesis. In this case, though, I do agree with B. Riley's analysis, as I noted in March with my CAPScall of underperform on Nautilus. My primary gripe -- in addition to being skeptical about consumer loyalty when it comes to fitness products -- is that Nautilus is overly exposed to an economic slowdown by relying solely on consumers to purchase its products instead of contracting directly with gyms. Even after today's drop, I'd suggest there could be further room for Nautilus to fall.

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Ford's Success Spurs Job Growth

Ford's World Headquarters. Photo Courtesy of Ford Motor Company.

When Alan Mulally took over as Ford's (NYSE: F  ) CEO in 2006 he knew that he had a big task ahead in turning the Blue Oval around. In the first two years, between 2006 and 2008, the company lost more than $30 billion – a ridiculous number. Yet, due to Mulally's "One Ford" vision and his executives' teamwork to cut costs and improve vehicle demand with higher-quality vehicles, Ford made a profit in 2009 – while other automakers were claiming bankruptcy. Ford continued on that path and finds itself in better shape than it's been in a decade. Let's take a look at its recent success and assess how close Ford is to achieving its goal of bringing jobs to its operations in the U.S.

Driving sales
Looking at the top-selling vehicles in the U.S. market this year it's quickly evident why Ford is a healthy company in hiring mode. It owns four of the nation's 15 top-selling vehicles, and its F-Series has owned the No. 1 spot for 31 years. The Escape and the Fusion both have a good chance to surpass 300,000 vehicles sold in the U.S. this year – something only the F-Series has done for Ford in the last nine years. Ford's also adding plant capacity to produce more Fusion's this fall because it's estimated to be running near or over maximum capacity.

Through June, Ford's F-Series sales – which account for the bulk of Ford's profits – are up 22% and more than 367,000 of the vehicles have been sold. The Escape and the Fusion are up 23.2% and 17.8%, respectively, representing sales of 156,626 and 161,146 in the same time period. 

With all that success and an industry SAAR at 15.98 million in June – its highest point in years – it only adds confidence in the market that Ford can safely add jobs. Ford plans to hire 3,000 salaried employees for the year, which is more than previously expected. As much as 80% of them will be technical professionals; it is Ford's largest hiring of salaried professionals in 13 years. 

Seasonally Adjusted Annual Rate. Information from Automotive News DataCenter.

These technical professionals will be employed for product development, manufacturing quality, and purchasing and information technology, according to Ford. "Engineers and technical professionals are in as much demand as our cars, trucks and SUVs," says Felicia Fields, Ford group vice president for human resources, in a Ford press release. "Global demand and increasing capacity in North America and Asia requires that we aggressively seek out technical professionals in order to continue our growth."

5 Best Tech Stocks To Own Right Now

What's better, is that these 3,000 salaried employees aren't even included in the company's goal to create 12,000 hourly jobs in the U.S. by 2015. In April, Ford hired 2,000 hourly employees at its Kansas City assembly plant to make sure more production capacity was available for its profit-making F-Series truck. Last year it hired more than 6,200 hourly employees to create capacity at other plants producing newer vehicles. It's about 75% of the way to its goal of hourly job creation by 2015, and its salaried positions look to be growing healthily as well.

Bottom line
This is very positive for investors because Ford's second-quarter earnings report handily beat expectations on revenue and EPS. With additional hiring it only means the company is planning on continued vehicle demand and success. With Ford's most profitable products selling enough to increase its overall market share in the U.S. by more than any other full-line automaker, I think the rest of 2013 will be filled with extremely positive headlines and profits for Ford investors. Let the good times roll!

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Top 5 Medical Stocks To Watch For 2014

Shares of medical-device maker St. Jude Medical (NYSE: STJ  ) climbed more than 5.2% today after the company reported its second-quarter results. While net sales were down slightly compared to the same quarter last year, the company's revenue and earnings per share beat estimates and impressed investors.

The focus in the report was partly on improved sales in St. Jude's Cardiac Rhythm Management division. This division failed to grow year over year, but sales were far more robust that in the first quarter of this year. This might also be a good sign for other medical-device companies competing in this space. Health-care analyst Max Macaluso discusses these topics in the following video.

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Top 5 Medical Stocks To Watch For 2014: Compugen Ltd.(CGEN)

Compugen Ltd. operates as a drug and diagnostic discovery company based on computer-based discovery capabilities to predict and select novel product candidates. Through in silico prediction and selection, the resulting novel molecules are synthesized and validated utilizing traditional in vitro and in vivo experimental procedures. The company provides these validated product candidates to pharmaceutical, biotech, and diagnostic companies under licensing and other commercialization arrangements. Its research and discovery efforts are focused primarily on therapeutic proteins and peptides, and monoclonal antibodies, and primarily in the fields of immunology and oncology. Its therapeutic peptide and protein related platforms include Protein Family Members Discovery Platform, Protein-Protein Interaction Blockers, GPCR Therapeutic Peptide Ligands, Disease-Associated Conformation Blockers, Intracellular Drug Delivery, Viral Peptides, and Splice Variant based Therapeutic Proteins . The company?s monoclonal antibody related platforms comprise Monoclonal Antibody Targets. Its other therapeutic and diagnostic platforms consist of Nucleic-Acid Disease Markers, Protein Disease Markers, Nucleic-Acid Preclinical Toxicity Markers, Non-SNP Drug Response Markers, and New Indications. Its therapeutic peptide and protein product candidates comprise CGEN-15001, a novel protein for the treatment of autoimmune disorders; CGEN-25017, a novel peptide antagonist of the Angiopoietin/Tie-2 pathway; CGEN-855, a peptide agonist of the FPRL1 GPCR receptor; CGEN-856 and CGEN-857, which are MAS GPCR peptide agonists; CGEN-25007, an antagonist of the gp96 protein; and CGEN-25009, a peptide of the LGR7 receptor. The company also offers monoclonal antibody target product candidates, including CGEN-671, a drug for multiple epithelial tumors; CGEN-928, a drug for multiple myeloma; and CGEN-15001T, a novel B7/CD28 family member. Compugen Ltd. was founded in 1993 and is based in Te l Aviv, Israel.

Advisors' Opinion:

• [By Michael Shulman]

  Compugen Ltd. (NASDAQ: CGEN) is the world’s leading molecular intellectual property company. Based in Israel, the company has revolutionized the early phases of drug development through a highly automated process of exploring and selecting molecules with the greatest promise to serve as the basis for a particular treatment.

  The company licenses its peptides and proteins for a fee to the who’s who of the drug industry, and also receives a back-end cut of any drug that makes it to market using its discoveries.

  Compugen just announced that it entered into an agreement with Baize Investments under which it will receive $5 million in R&D funding. My target for CGEN is $20 in three to five years.

Top 5 Medical Stocks To Watch For 2014: Terumo (TRUMY.PK)

TERUMO CORPORATION operates in four business segment. The Hospital Products segment is engaged in the manufacture, purchase and sale of hospital medical equipment, pharmaceuticals, peritoneal dialysis and diabetes related products, and the rental of hospital medical equipment and home medical products. The Cardiac and Vascular Area segment is involved in the manufacture, purchase and sale of catheter systems, artificial heart and lungs, as well as artificial blood vessels, the manufacture and sale of therapeutic coils for cerebral aneurysm, sampling equipment and kits for platelet-rich plasma and concentrated bone-marrow cell, and large-bore sheaths. The Blood System segment is engaged in the manufacture, purchase and sale of blood transfusion-related products. The Healthcare segment manufactures and sells healthcare related products. As of March 31, 2012, the Company had 79 subsidiaries and 2 associated companies. Advisors' Opinion:

• [By Robert Holmes]

   Analyst Mayo Mita says the Japanese earthquake and tsunami was a setback for the company, Terumo has a more visible growth stage coming.

  "Over the next five years we see clear growth from China, the NOBORI drug eluting stent (DES), the U.S. catheter business, and the blood management business," Mita writes.

  The base-case Mita lays out is for a 26% rise in share price next year, although Mita's most bullish forecast has shares up twice that. On the downside, Mita's most bearish scenario has shares falling 11% in the next 12 months.

  The chart below shows shares of Terumo that trade on the Pink Sheets in the U.S., but Morgan Stanley is recommending buying shares in Tokyo.

Top Stocks To Own For 2014: Scancell Holdings PLC (SCLP)

Scancell Holdings PLC is a United Kingdom-based company. The Company�� principal activity of the consists of the discovery and development of monoclonal antibodies and vaccines for the treatment of cancer. In April 2012, the Company completed recruitment to the Phase 1 clinical trial of SCIBI. In May 2012, the Company commenced recruitment and treatment of the first patient in the second part of it Phase 1/2 clinical trial of SCIBI. The Phase 2 part of the trial is conducted in five United Kingdom centers in Nottingham, Manchester, Newcastle, Leeds, and Southampton. On August 15, 2012, the Company announced the development of a platform technology, Moditope.

Top 5 Medical Stocks To Watch For 2014: InspireMD Inc (NSPR)

InspireMD, Inc., incorporated on February 29, 2008, is a medical device company. The Company is focusing on the development and commercialization of its stent platform technology, MGuard. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. Its initial products are marketed for use mainly in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). The Company�� products include MGuard Coronary Plus Bio-Stable Mesh, MGuard Peripheral Plus Bio-Stable Mesh, MGuard Carotid Plus Bio-Stable Mesh and MGuard Coronary Plus Bio-Absorbable Drug-Eluting Mesh. Its initial MGuard Coronary products incorporated a stainless steel stent. The Company subsequently replaced this stainless steel platform with a more advanced cobalt-chromium based platform, which the Company refers to as the MGuard PrimeTM version of its MGuard Coronary. The Company operates in Germany through its wholly owned subsidiary InspireMD GmbH.

The Company focuses on applying its technology to develop additional products used for other vascular procedures, specifically carotid (the arteries that supply blood to the brain) and peripheral (other arteries) procedures. The MGuard stent is an embolic protection device based on a protective sleeve, which is constructed out of an ultra-thin polymer mesh and wrapped around the stent. The protective sleeve is comprised of a micron level fiber-knitted mesh, engineered in an optimal geometric configuration and designed for utmost flexibility while retaining strength characteristics of the fiber material.

MGuard - Coronary Applications

The Company�� MGuard Coronary with a bio-stable mesh and its MGuard Coronary with a drug-eluting mesh focuses on the treatment of coronary arterial disease. The Company�� first MGuard product, the MGuard Coronary with a bio-stable mesh, is comprised of its mesh sleeve wrapped around a! bare-metal stent. The bio-absorbability of MGuard Coronary with a drug eluting bio-absorbable mesh is intended to improve upon the bio-absorbability of other drug-eluting stents, in light of the wide surface area of the mesh and the small diameter of the fiber.

MGuard - Carotid Applications

The Company focuses on marketing its mesh sleeve coupled with a self-expandable stent for use in carotid-applications. Expandable stent is a stent that expands without balloon dilation pressure or need of an inflation balloon. This product is under development, although the Company has temporarily delayed its development until additional funding is secured.

MGuard - Peripheral Applications

Peripheral Artery Disease, also known as peripheral vascular disease, is characterized by the accumulation of plaque in arteries in the legs, need for amputation of affected joints or even death, when untreated. Peripheral Artery Disease is treated either by trying to clear the artery of the blockage, or by implanting a stent in the affected area to push the blockage out of the way of normal blood flow.

The Company competes with Abbott Laboratories, Boston Scientific Corporation, Johnson & Johnson, Medtronic, Inc., The Sorin Group, Xtent, Inc., Cinvention AG, OrbusNeich, Biotronik SE & Co. KG, Svelte Medical Systems, Inc., Reva Inc. and Stentys SA.

Advisors' Opinion:

• [By Roberto Pedone]

  InspiredMD (NSPR) is a medical device company focusing on the development and commercialization of its proprietary stent platform technology, MGuard. This stock is trading up 2.3% to $2.59 in recent trading.

  Today’s Range: $2.44-$2.65
  
  52-Week Range: $1.88-$10.16
  
  Volume: 313,000
  
  Three-Month Average Volume: 99,632

  From a technical perspective, NSPR is trending higher here right off its 50-day moving average at $2.42 with heavy upside volume. This stock has been getting heavy upside volume flows for the last few weeks, which is bullish technical action. Shares of NSPR are now quickly moving within range of triggering a major breakout trade. That trade will hit if NSPR manages to take out some near-term overhead resistance levels at $2.85 to $3 with high volume.

  Traders should now look for long-biased trades in NSPR as long as it’s trending above its 50-day at $2.42 and then once it sustains a move or close above those breakout levels with volume that hits near or above 99,632 shares. If that breakout triggers soon, then NSPR will set up re-test or possibly take out its next major overhead resistance levels at $3.55 to $4.25. This stock could even tag its 200-day at $4.80 if it breaks out soon and catches some momentum buying.

Top 5 Medical Stocks To Watch For 2014: Oxford BioMedica PLC (OXB)

Oxford BioMedica plc is a biopharmaceutical company developing gene-based medicines and therapeutic vaccines. The Company�� LentiVector platform products include ProSavin, RetinoStat, StarGen, UshStat, EncorStat, Glaucoma-GT and MoNuDin. Its 5T4 Tumour Antigen produces TroVax and Anti-5T4 antibody. The Prime Boost�� product includes Hi-8 Mel. Its GDEPT platform produces MetXia and Anti Angiogenesis platform produces EndoAngio-GT. The Company is developing four LentiVector platform product candidates for the treatment of ocular diseases: RetinoStat for wet age-related macular degeneration (AMD); StarGen for Stargardt disease; UshStat for Usher syndrome type 1B, and EncorStat for corneal graft rejection. TroVax is a therapeutic vaccine that stimulates the immune system to destroy cancerous cells expressing the 5T4 tumour antigen. On February 25, 2011, the Company purchased a freehold property, United Kingdom comprising a manufacturing facility.

Hexcel Beats Analyst Estimates on EPS

Hexcel (NYSE: HXL  ) reported earnings on July 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Hexcel met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew.

Gross margins expanded, operating margins grew, net margins dropped.

Revenue details
Hexcel notched revenue of $422.6 million. The 13 analysts polled by S&P Capital IQ expected a top line of $424.3 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $399.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.48. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. GAAP EPS of $0.48 for Q2 were 2.1% higher than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.6%, 120 basis points better than the prior-year quarter. Operating margin was 17.0%, 90 basis points better than the prior-year quarter. Net margin was 11.5%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $428.4 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $1.71 billion. The average EPS estimate is $1.81.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 270 members out of 286 rating the stock outperform, and 16 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Hexcel a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hexcel is outperform, with an average price target of $35.00.

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Add Hexcel to My Watchlist.

EA Should Try to Buy Take-Two Again

Take-Two Interactive (NASDAQ: TTWO  ) is now just two months away from unleashing Grand Theft Auto V on hungry die-hard gamers.

It's going to be huge. The game play video released just two weeks ago has already been viewed nearly 18 million times. Video game sales have been slumping for four years, but watching Activision Blizzard (NASDAQ: ATVI  ) set new sales records with every Call of Duty installment proves that there is still healthy interest in marquee releases.

Even in the circus that the industry has become, Grand Theft Auto V is definitely a tent pole. It's been five years since Grand Theft Auto IV was released, and it went on to set initial sales records.

Does anyone else remember what happened two months before Grand Theft Auto IV was released? Well, Electronic Arts (NASDAQ: EA  ) made a failed attempt to acquire the smaller publisher.

EA's offer to pay $26 a share in cash for Take-Two was shot down by the company's board, followed by Take-Two shareholders nixing the proposal. Eyeing Take-Two's stock today in the high teens, the initial reaction may be that EA dodged a bullet.

It didn't, and it's why EA may want to consider making another play for Take-Two.

Take two on Take-Two
It's easy to argue that Take-Two is kicking itself for passing on EA's offer. The stock closed out last week 36% below EA's original $26 offer. However, let's take the offer off the table. Take-Two closed at $17.36 the day before the country's second-largest video game developer went public with its plans to gobble it up. We're really looking at just a 4% decline in that time.

Yes, a 4% slide in a little more than five years is pathetic. The mother of all tech rallies has taken place since then. Activision Blizzard -- the country's largest video game company -- has seen its stock climb 21% higher in that time.

However, here's the real kicker: EA shares have fallen 51% in that time!

It would be fair to say that EA wouldn't have fallen so hard if it had succeeded in acquiring Take-Two. We probably wouldn't have been waiting five years before full Grand Theft Auto installments.

EA would have probably milked sleeper Take-Two hits including BioShock and Red Dead Redemption into being even bigger successes.

Are you still sure that Take-Two is the one smarting these days?

It's not. The year that Grand Theft Auto IV came out, Take-Two went on to record an adjusted profit of $2.08 a share on $1.6 billion in revenue. This year, analysts see a profit of $2.34 a share on $1.9 billion in revenue. EA generated $4.1 billion in adjusted revenue the year the game came out. This year -- despite some pretty expensive casual and social gaming acquisitions to pad organic growth over the years -- Wall Street sees just $4 billion in revenue.

It should also be pointed out that analysts expect EA to earn just $1.20 a share this year. In other words, it can pay a huge premium for Take-Two and it would still be accretive to EA's bottom line.

The caveat here, of course, is that Take-Two's results have always been lumpy. They peak during Grand Theft Auto releases. The same pros that see record results at Take-Two this fiscal year are targeting just $1.08 a share in earnings and $1.4 billion in revenue next year.

However, wasn't the point of EA trying to buy Take-Two ahead of the last major Grand Theft Auto installment that it could put its larger development resources to work at putting out more timely releases? Wouldn't buying Take-Two make EA larger than Activision Blizzard?

It won't happen. The EA CEO who oversaw the failed acquisition resigned earlier this year. It would have to take a new commitment to make it happen.

However, the combination makes more sense now than it did five years ago for both companies.

EA needs the growth, as analysts are only targeting top-line growth in the mid-single digits over the next two years. The last thing it would want is for Activision Blizzard -- another company that could be even hungrier for growth with a projected top-line decline this year as World of Warcraft players move on -- make a move on its former flame. Take-Two could also use an exit strategy, lest we have to wait another five years for Grand Theft Auto VI.

Again, it won't happen -- but it should. 

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Hot Clean Energy Companies To Invest In 2014

The recent budget proposal from the Obama administration is taking a lot of criticism for its big emphasis on clean energy technology development. While some may critique the method on how this will be funded, others fear the possibility of these clean energy investments failing,�the most recent and most widely publicized example being the bankrupt solar company Solyndra.�

Yet while we rake the muck of these failed�investments, many of us look over the fact that several industries and technologies were made possible from government funding.�Clearly, not every investment the government makes will be a great success, but�several�successful�businesses have developed in large part because of government assistance. There are examples across almost every sector of industry, but for now let's focus on developments in energy and see if a failure like Solyndra is an�aberration or just part of everyday business for the government.

Hot Clean Energy Companies To Invest In 2014: Food Junction Holdings Limited(529.SI)

Food Junction Holdings Limited, an investment holding company, engages in the operation and management of food courts, and food and beverage stalls. The company operates food courts under the Food Junction, Food Culture, FJ Square, Food Garden, and The Food place brand names. It also manages and operates a portfolio of restaurants, including Tetsu Japanese restaurant in Singapore; Malone?s American cafe and restaurant chain in China; Food Apps under the brand names of Toast@Work and Black Ramen Japanese noodle house; and Lippo Chiuchow restaurant in Hong Kong. In addition, the company operates SOEZ Cooking Studio and SOEZ Cooking Playground that offers cooking classes to various participants, including tourists, adults, kids, corporate groups, and domestic helpers. As of 31 May, 2012, it managed and operated 18 food courts in Singapore, Malaysia, and Indonesia, as well as 31 self-operated food court stalls and 9 Toast@Work outlets. The company was founded in 1993 and is h eadquartered in Singapore. Food Junction Holdings Limited is a subsidiary of APG Strategic Investment Private Limited.

Hot Clean Energy Companies To Invest In 2014: Bridgford Foods Corporation(BRID)

Bridgford Foods Corporation, together with its subsidiaries, engages in manufacturing, marketing, and distributing frozen, refrigerated, and snack food products in the United States and Canada. It operates through two segments, Frozen Food Products and Refrigerated and Snack Food Products. The Frozen Food Products segment processes and distributes approximately 150 frozen food products through wholesalers, cooperatives, and distributors to retail outlets, restaurants, and institutions. The Refrigerated and Snack Food Products segment sells approximately 200 items through distribution centers and direct store delivery network to supermarkets, mass merchandise, and convenience retail stores. The company also manufactures and distributes a range of food products, including biscuits, bread dough items, roll dough items, dry sausage products, beef jerky, sliced luncheon meats, and various sandwiches. In addition, it resells various cheeses, salads, party dips, Mexican foods, nu ts, and other delicatessen type food products. The company was founded in 1932 and is based in Anaheim, California.

Top Stocks To Own Right Now: Guyana Goldfields New Com Npv(GUY.TO)

Guyana Goldfields Inc. engages in the acquisition, exploration, evaluation, and development of gold resource properties in the Guiana Shield of South America. The company owns a 100% interest in the Aurora gold project located in Guyana. It also holds interests in the Aranka properties, including Sulphur Rose, North Ridge, Wynamu, Kopang, and Parika Hills properties covering an area of approximately 307,589 acres located in the Aranka district of Guyana. Guyana Goldfields Inc. is headquartered in Toronto, Canada.

Hot Clean Energy Companies To Invest In 2014: The Cheesecake Factory Incorporated(CAKE)

The Cheesecake Factory Incorporated operates upscale, casual, full-service dining restaurants in the United States. As of February 23, 2012, the company operated 170 dining restaurants, including 156 restaurants under The Cheesecake Factory mark in 35 states and the District of Columbia; 13 restaurants under the Grand Lux Cafe mark in 9 states; and 1 restaurant under the RockSugar Pan Asian Kitchen mark in California. It also owns and operates two bakery production facilities located in Calabasas Hills, California; and Rocky Mount, North Carolina. The company produces baked desserts and other products for its restaurants, as well as sells cheesecakes and other baked products on a wholesale basis to other foodservice operators, retailers, and distributors. The Cheesecake Factory Incorporated was founded in 1972 and is based in Calabasas Hills, California.

Hot Clean Energy Companies To Invest In 2014: PLX Technology Inc.(PLXT)

PLX Technology, Inc. designs, develops, manufactures, and sells semiconductor devices worldwide. It offers semiconductor devices, such as PCI express switches that allow aggregation of multi-channel Ethernet, fiber channel, graphics, and SAS cards to the host; PCI express bridges, which allow devices with other standards to be used in systems that need to interoperate with PCI express; and 10G Ethernet over copper PHY devices that provide a seamless migration from the slower connections to the faster ones. The company?s products also include direct attached storage products, which allow external storage to connect to a PC through USB connection; network attached storage products that provide storage to a local area network; PCI bridges consisting of general purpose bridges that translate and extend the PCI bus; and universal serial bus (USB) interface chips, which are used by computer peripherals and consumer products to interoperate through an external cabled connection. Its semiconductor devices accelerate and manage the transfer of data in microprocessor-based systems, including networking and telecommunications, enterprise storage, servers, personal computers (PCs), PC peripherals, consumer electronics, imaging, and industrial products. The company markets its products through direct and indirect sales force, manufacturers, and distributors to electronics manufacturers. PLX Technology, Inc. was founded in 1986 and is headquartered in Sunnyvale, California.

Hot Clean Energy Companies To Invest In 2014: Paragon Care Ltd (PGC.AX)

Paragon Care Limited engages in the supply of durable medical equipment to the health and aged care markets in Australia and New Zealand. It supplies stainless steel healthcare equipment; patient treatment, examination, and surgical stretchers and couches; medical and medication carts; and children�s and maternity equipment to public and private hospitals, general practitioners, and medical centers. The company also distributes bedding, furniture, and specialized seating products; integrated bed motor systems and modular bedside supply systems for the hospital, aged care, and home markets; and various wire shelving and basket systems, medical refrigeration systems, service carts, and single/multi deck trolleys, as well as storage systems. In addition, it is involved in the manufacture and sale of precision designed stainless steel and other medical related products. The company is based in Nunawading, Australia.

7 Things You Need to Know About American Express

If you grew up in the 1970s and 80s like I did, one of the things you most likely remember about American Express (NYSE: AXP  ) is the phrase "Don't leave home without it." Delivered from a seemingly endless stream of television commercials and print ads, the clever corporate tag line positively embedded itself in the psyche.

If AmEx's presence in American culture isn't quite what it used to be, it's not because the company isn't still highly successful. It definitely is. And its enough of a good investment that one of the country's most-successful investors is also one of its biggest fans. Thinking about investing in AmEx yourself? Here are seven things you need to know:

1. AmEx is bigger than you think
With almost $157 billion in assets as of March 31, 2013, AmEx is the country's 19th largest bank holding company, putting it ahead of Deutsche Bank AG, the German banking giant's American operation. Size doesn't mean anything in and of itself, but used skillfully, size can help generate revenue and profit far beyond that of a smaller rival.

2. Great share-price performance
Over the past year, AmEx has returned gains of 33.08% to its shareholders: impressive by any normal standard, which these times aren't. For the same period, Bank of America (NYSE: BAC  ) shares gained 77.96%. Even Citigroup (NYSE: C  ) is up by 86.97% in the past year. But even given all that, a return of 33.08% is nothing to look down on.

3. Revenue is up
For the first quarter of 2013, total revenue for AmEx was up 4% year over year: this at a time when revenue for some big banks is flat or declining. For the same period, total revenue at JPMorgan Chase and Wells Fargo (NYSE: WFC  ) was down 3.87% and 1.41%, respectively. Profit is all well and good, but if it isn't born out of ongoing revenue growth, then it's not sustainable.

4. Killer return-on-equity
Return-on-equity, or ROE, is a measure of management effectiveness, and gives you some notion of how much profit a company generates with shareholder money. AmEx's ROE is a staggering 22.99% trailing 12 months. Even the extraordinarily well-run JPMorgan has an ROE of only 11.55%.

5. Amex pays a dividend
Wells Fargo pays a quarterly dividend of 3%, and JPMorgan pays 2.8%. At 1.2%, AmEx's dividend yield isn't much, but it's something -- icing on the cake for what I consider to be more of a great growth stock.

6. Cardmember spending grew
As you might expect, cardmember spending is AmEx's bread and butter, and the good news is that it was up by 6% for the first quarter of 2013. It rose even higher if you take foreign currency translations into account: 7%. 

7. Buffett really likes Amex
Warren Buffett likes his bank-holding companies. Wells Fargo is Berkshire Hathaway's (NYSE: BRK-B  ) largest holding, and only three spots behind Wells is AmEx. With more than $151 million shares worth more than $11 billion, Buffett's Berkshire holds a 13.8% stake in the charge-card giant.  

Foolish bottom line
You should never invest in a company just because someone else does, even if that someone is Warren Buffett. But when the age's arguably greatest investor makes a company one of his top investments, it's a fact worth serious consideration. Add to that the other six points we've discussed today, and you definitely have an investment worth serious consideration.

Looking for in-depth analysis on Berkshire Hathaway? Then check out this Motley Fool premium report, written by our own Berkshire expert Joe Magyer. Joe will give you key reasons to buy as well as important risks to watch out for at Buffett's high-performance yet highly complex conglomerate. For immediate access, simply click here now. 

These Resource Stocks Are Below "End of the World" Prices

Month by month, commodity stocks are getting more hated by the market... getting to be greater values... and getting set up for at least 100% gains.

 

In fact, for some companies, we're seeing 2009 levels of cheapness. That sentence should make any trader take notice. Those levels preceded spectacular gains in commodity stocks.

 

Regular Growth Stock Wire readers know that commodity stocks have plummeted this year. The big gold stock fund, GDX, is down 64% from its 2011 high. The S&P/TSX Venture Index, which we nickname "the Dow Industrials of small resource stocks," is 63% off its 2011 high.

 

These large declines have created extremely bearish sentiment toward the sector. Bearish sentiments create great values. And great values create great trade setups...

 

One way to see where these setups are cropping up is to compare today's valuations to where these stocks were at the "end of the world" in 2009.

 

In the table below, you'll find 10 major commodity producers that are selling at a lower price-to-earnings ratio now than they were in 2009.

 

Company	Description	2009 P/E	2013 P/E*
Agnico Eagle	Gold Miner	37.0x	8.7x
Penn Virginia	Coal Producer	3.3x	1.0x
Barrick Gold	Gold Miner	6.8x	2.4x
Petrobras	Oil Producer	3.7x	2.9x
Peabody Energy	Coal Producer	4.4x	3.8x
Ultra Petroleum	Oil and Gas Producer	7.0x	5.1x
Newmont Mining	Gold Miner	4.9x	4.2x
Kinross Gold	Gold Miner	9.9x	4.0x
PetroChina	Oil Producer	7.6x	4.0x
Arcelor Mittal	Steel Producer	6.8x	2.8x
* Data from Bloomberg, using estimated 2013 EBITDA

To create the table, I used each company's actual 2009 earnings (before interest, tax, depreciation, and amortization – called EBITDA) and March 2009 share prices. That was near the bottom... about as cheap as these things got.

 

So any stock that's actually cheaper now is becoming a GREAT value... But we aren't ready to buy yet.

 

To borrow a wise market saying, a bear market in resource stocks can continue longer than traders can stay solvent. We don't want to speculate in this sector until we see an uptrend.

 

With many resource stocks as cheap as they are right now, a new uptrend could send them hundreds of percent higher.

 

Good investing,

 

Matt Badiali

Top 10 China Stocks To Watch For 2014

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is basically unchanged after China reported a trade surplus in April. Alcoa (NYSE: AA  ) stock is up on the news, as a stronger Chinese economy means more demand and higher prices for aluminum. As of 1:15 p.m. EDT, the Dow was up 11 points to 15,067. The S&P 500 (SNPINDEX: ^GSPC  ) was up four points to 1,630.

There were no U.S. economic releases today. China reported that its exports grew 14.7% in April, above March's 10% rise, which was enough to swing China back to having a trade surplus. In March, China surprised investors after it reported an $884 million trade deficit, increasing investors' fears of a slowdown in China. April's growth in exports led China to report a trade surplus of $18.16 billion. If the numbers are accurate, this is a good sign for China's economy; however, some analysts are questioning whether the numbers are too good to be true. The growth in exports is in contrast to the HSBC purchasing managers index, which showed that new export orders dropped during the month. That said, Asian markets are up nearly 1% on the news.

Top 10 China Stocks To Watch For 2014: China Gerui Advanced Materials Group Limited(CHOP)

China Gerui Advanced Materials Group Limited engages in the manufacture and sale of cold-rolled narrow strip steel products in the People's Republic of China. The company converts steel manufactured by third parties into thin steel sheets and strips. It sells its products directly to its customers in a range of industries, including food and industrial packaging, construction and household decorations materials, electrical appliances, and telecommunications wires and cables industries. The company was formerly known as Golden Green Enterprises Limited and changed its name to China Gerui Advanced Materials Group Limited in December 2009. China Gerui Advanced Materials Group Limited is based in Zhengzhou, China.

Top 10 China Stocks To Watch For 2014: Ctrip.com International Ltd.(CTRP)

Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the People?s Republic of China. It also sells independent leisure travelers bundled package-tour products, which include transportation and accommodation, as well as guided tours covering various domestic and international destinations. In addition, the company offers Internet-related advertising, aviation casualty insurance, and air-ticket delivery services. Further, it sells Property Management System, a hotel information software; travel guidebooks, which provide information for independent travelers; and VIP membership cards that allow cardholders to receive discounts from various restaurants, clubs, and bars. The company was founded in 1999 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• [By Mark]

  Ctrip (CTRP) is the leading online travel agent in China, where a growing middle class and increased business activity mean the travel industry is booming. Last year, the recession slowed revenue growth at Ctrip to 35%; in the latest quarter, it was back up to 47% … and profit margins were a very healthy 42.2%. Ctrip was on the list three years ago.

Top Stocks To Own For 2014: Perfect World Co. Ltd.(PWRD)

Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West ; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.

Top 10 China Stocks To Watch For 2014: China Lodging Group Limited (HTHT)

China Lodging Group, Limited, together with its subsidiaries, develops, operates, and manages a chain of hotels in the People?s Republic of China. It operates HanTing Express Hotel that targets knowledge workers and value-conscious travelers; HanTing Seasons Hotel, which targets mid-level corporate managers and owners of small and medium enterprises; and HanTing Hi Inn for budget-constrained travelers. As of March 31, 2011, the company had 473 hotels consisting of 259 leased-and-operated hotels and 214 franchised-and-managed hotels; and 162 hotels under development, including 74 leased-and-operated hotels and 88 franchised-and-managed hotels. China Lodging Group, Limited was incorporated in 2007 and is headquartered in Shanghai, the People?s Republic of China.

Top 10 China Stocks To Watch For 2014: CNinsure Inc.(CISG)

CNinsure Inc., together with its subsidiaries, provides insurance brokerage and agency services, and insurance claims adjusting services in the People?s Republic of China. The company offers property, casualty, and life insurance products underwritten by domestic and foreign insurance companies operating in China. Its property and casualty insurance products include automobile, individual accident, commercial property, homeowner, cargo, hull, liability, and construction insurance; and life insurance products comprise individual whole life insurance, term life insurance, education annuity, and health insurance, as well as universal insurance and group life insurance. The company also offers insurance claims adjusting services, which include pre-underwriting survey, claims adjusting, disposal of residual value, loading and unloading supervision, and consulting services, as well as damage assessment, survey, authentication, and loss estimation to insurance companies and the i nsured; and value-added services to its customers in conjunction with distributing automobile insurance products. As of April 15, 2010, its distribution and service network consisted of 49 insurance agencies, 3 insurance brokerages, and 4 claims adjusting firms, with 571 sales and service outlets. The company was founded in 1998 and is headquartered in Guangzhou, the People?s Republic of China.

Top 10 China Stocks To Watch For 2014: Yanzhou Coal Mining Company Limited(YZC)

Yanzhou Coal Mining Company Limited engages in the underground mining, preparation, and sale of coal. It involves in manufacturing, washing, processing, and selling steam coal used in the electricity power sector; and metallurgical coal used with coking coal in the process of pulverized coal injection, as well as operates six coal mines. The company also engages in the provision of railway transportation services; production and sale of coal chemicals, primarily methanol; and generation of electricity and heat. In addition, it involves in the manufacture and sale of mining machinery and engine products; and development of integrated coal technology. Further, the company engages in the transportation via rivers and lakes; sale of construction materials; and trading and processing of mining machinery. It has operations primarily in China, Japan, South Korea, and Australia. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China. Yanzhou Coal Mining Company Limited is a subsidiary of Yankuang Group Corporation Limited.

Top 10 China Stocks To Watch For 2014: AsiaInfo-Linkage Inc.(ASIA)

AsiaInfo-Linkage, Inc. provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People?s Republic of China. The company offers business and operation support systems product suites, including OpenBilling, a billing solution for telecommunications operators; OpenCRM, a CRM solution suite for telecommunications operators; OpenBOSS, a carrier-class business operation support system solution; OpenBI, a carrier-class operating analysis and decision support system platform; OpenPRM, a system that calculates, manages, and reconciles payment for intercarrier network access. It also provides network management solutions comprising NetXpert, a data and Internet protocol network management solution; and OpenXpert, an integrated telecommunications network management system. In addition, the company offers service applications products, such as Mail Center, an online messaging softwa re; Spam Patrol software for real time anti-spam control; and Net Disk, a network hard disk product, which facilitates Internet-based file transfer, sharing, and management, as well as supports other functions, such as data processing of short message folders and synchronization of mobile devices. Its service applications products also include Internet Short Messaging Gateway, a business support platform for value-added short messaging services; and Device Management Platform that enables mobile operators to manage various mobile devices and perform remote mobile device management, such as remote diagnosis and parameter setup. In addition, it offers software enhancement and maintenance, system integration, and other value-added IT consulting and planning services. The company was formerly known as AsiaInfo Holdings, Inc. and changed its name to AsiaInfo-Linkage, Inc. in July 2010. AsiaInfo-Linkage, Inc. was founded in 1993 and is headquartered in Beijing, the People?s Republ ic of China.

Top 10 China Stocks To Watch For 2014: Bitauto Holdings Limited (BITA)

Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People?s Republic of China. The company offers subscription services to new automobile dealers that enable them to list pricing and promotional information on its bitauto.com Website and partner Websites, and to interact with consumers through its virtual call center, as well as provides advertising service to dealers and automakers on its bitauto.com Website. It also offers listing services to used automobile dealers, which enable them to display used automobile inventory information through its ucar.cn Website and partner Websites; and advertising services to used automobile dealers and automakers with certified pre-owned automobile programs on its ucar.cn Website. In addition, the company provides digital marketing solutions, including Website creation and maintenance, online public relationship, online marketing campaigns, and advertising agent service s. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

Top 10 China Stocks To Watch For 2014: Baidu Inc.(BIDU)

Baidu, Inc. provides Chinese and Japanese language Internet search services. Its search services enable users to find relevant information online, including Web pages, news, images, multimedia files, and blogs through the links provided on its Websites. The company also offers online community-based products and entertainment platforms; an instant messaging service; and a consumer-oriented e-commerce platform. In addition, it designs and delivers online marketing services and auction-based P4P services that enable its customers to reach users who search for information related to their products or services. The company serves online marketing customers consisting of small and medium sized enterprises, large domestic corporations, and Chinese divisions or subsidiaries of multinational corporations primarily operating in the medical, machinery, education, franchising, electronic products, e-commerce, ticketing, tourism, information technology, consumer products, real estate, entertainment, and financial services industries. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Jim Lowell]

  Baidu Inc. (BIDU) Baidu has a market cap of $51.28 billion with a price-to-earnings ratio of 66.8. The stock has traded in a 52-week range of $85.86 to $165.96. The stock is currently trading near the top of its 52-week range at around $145. On July 25th, the company reported second quarter revenue of $528 million, compared with revenue of $282 million in the second quarter of 2010. Second quarter net income was $253 million compared with net income of $123 million in the second quarter of 2010.

  One of Baidu’s competitors is SINA Corporation (SINA). SINA is currently trading at around $111 with a market cap of $7.24 billion and a negative price-to-earnings ratio.

  Baidu is an established company and is the only Chinese stock that Jim Cramer will recommend. The company has been profitable in every year since 2003. In 2010, the company grew net income by 145% to $535 million from $218 million in 2009. Investors have faith in this company and bid the stock up by 63.51% over the last 52 weeks and by 407% over the last 3 years. After the company increased its year-over- year second quarter net income by 105%, it is apparent that Baidu is still enjoying rapid earnings growth. I rate Baidu Inc. a buy.

• [By Robert Hsu]

  Baidu.com (NASDAQ: BIDU) is unveiling a new feature that will likely keep users on its site longer. The company will launch third-party offerings in Baidu’s application library directly on Baidu.com rather than on another website, providing a potential revenue boost for the company. For example, if a user searches for a specific online game, the new function will produce a pop-up window containing the game which can be played immediately without the user leaving the Baidu site.

  Earlier this month, Baidu tried to clear its consolidation period and break out of its current range, but couldn’t fight the overall undertow of the broad market and fell back to around its 10-week moving average. However, in the past few days the stock is again finding support and bouncing higher along with the market.

  Baidu stock has jumped 119% since January and 125% over the past 12 months. This could offer a buying opportunity, especially as the broader market heads higher. My buy limit for BIDU is $80.

• [By Robert Hsu]

  Baidu has inked a deal with BMW to provide its search services inside its vehicles sold in China. The two will work on a platform that will enable car owners to read e-mail, view maps, and access other information.

  Also this week, Baidu has acquired about 40% of Chinese e-book seller Fanshu.com. Both these developments are a positive for the company.

  There is also a rumor circulating in China that Baidu will acquire Toudu, one of the leading online video Web sites in China. Toudu is filing for an IPO next week. However, in the current market situation, I am skeptical of how well the IPO will be received. As a result, Baidu may step in.

  I think the deal would make sense for Baidu, whose Qiyi video service continues to gain steam in challenging Youku.com (YOKU) and Sohu.com (SOHU) for online video supremacy. However, for now this remains unconfirmed, and the Toudu is moving forward with its IPO plans. Buy BIDU.

Top 10 China Stocks To Watch For 2014: Focus Media Holding Limited(FMCN)

Focus Media Holding Limited, a multi- platform digital media company, operates out-of-home advertising network using audiovisual digital displays in China. It operates out-of-home advertising network based on the number of locations and flat-panel television displays in its network. The company, through its multi-platform digital advertising network, reaches urban consumers at locations and point-of-interests over various media formats, including audiovisual television displays in buildings and stores, advertising poster frames, outdoor light-emitting diode digital billboards, and Internet advertising platforms. As of June 30, 2010, its digital out-of-home advertising network had approximately 142,000 LCD displays in its LCD display network and approximately 275,000 advertising in-elevator poster and digital frames, installed in approximately 90 cities. The company also provides Internet marketing solutions; and sells software licenses and services, primarily including Adf orward software. Focus Media Holding Limited was founded in 1997 and is based in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• [By Hesler]

  Focus Media operates the largest out-of-home advertising network in China using audiovisual flat-panel displays based on the number of locations and number of displays in its network. Focus Media Holding Ltd. has a market cap of $4.55 billion; its shares were traded at around $31.4 with a P/E ratio of 31.4 and P/S ratio of 8.82.
  
  George Soros sold out of his position of almost 2 million shares in Focus Media Holding in the fourth quarter of 2009 when the stock had reached $14, after falling as low as $7.45 in the second quarter of 2009. He purchased 400,000 shares in the first quarter 2011 at an average price of $26.22 per share. Year to date the stock price has risen 42.5%.
  
  Most of Focus Media’s revenue growth in the first quarter was driven by advertising and its LCD displays. Focus Media’s advertising net revenue for its LCD display network increased 63%, advertising net revenue from its poster frame network increased 46%, and advertising net revenue from the in-store network increased 23%, from the first quarter 2010. Its net revenue from its LCD display (including a movie theater network), in-store and poster frame businesses increased 54%.
  
  The company’s net income for the first quarter of 2011 was $20.5 million, increased from a net loss of $1.0 million in the first quarter of 2010.
  
  In the first quarter, the company has also spent $240 million repurchasing shares, out of a $300 million share repurchase program, and has plans to buy a 15% stake in Enjoy China Technology Development Company Limited.

Muddy Waters Fails to Shake American Tower With Short Bet

Never before has the unveiling of a Carson Block short sale done less to sway investors.

American Tower Corp. (AMT) fell 1.1 percent to $73.87 yesterday, the smallest first-day drop ever in a stock after a report from Muddy Waters Research, which built its reputation with bearish calls on Asian companies. New Oriental Education & Technology Group Inc., Focus Media Holding Ltd. and Sino-Forest Corp. lost at least 20 percent after previous Muddy Waters notes.

Investors in the operator of cell-phone antennas were unshaken by Block's analysis and analysts from Wells Fargo & Co. to Macquarie Group Ltd. said they disagreed. Block said yesterday that American Tower is worth 40 percent less than its share price because it overstated the value of its acquisitions and has poor corporate governance.

"The market is sometimes a lot smarter," William Ferer, who manages about $3 billion, including American Tower shares, at W.H. Reaves & Co. in Jersey City, New Jersey, said in a phone interview. "I took it quite positively that after a full day of digesting this Muddy Waters report the stock was only down a little bit."

American Tower, the second-biggest U.S. REIT by market value, owned or leased 22,599 wireless and broadcast communication towers in the U.S. and 33,074 towers internationally as of March 31, according to its most recent quarterly filing. Matt Peterson, a spokesman for the real-estate investment trust, didn't respond to messages seeking comment. The Boston-based firm has a market value of $29.2 billion, data compiled by Bloomberg show.

Trading Surges

About 26.3 million shares of the company changed hands yesterday, the most in five years, Bloomberg data show. More than 171,000 put options traded, about 90 times the average for 2013 through last week.

"This stock should be mid-40s," Block said in a Bloomberg Television interview yesterday. "Our goal with this report was for people to actually read it and I think people are reading it and after they read it, digest it and the company responds, I'm feeling very good about it."

This is the first time Block has targeted a U.S. company. The 37-year-old investor gained fame for his short-selling calls in Asia after regulators halted trading in four of the first five companies he targeted starting in June 2010. Hedge fund manager John Paulson sold his Sino-Forest Corp. stake at a loss after Block said the company overstated its plantation assets. Sino-Forest filed for bankruptcy protection in 2012.

American Tower shares have more than tripled since November 2008. The stock trades at 25.8 times funds from operations, compared with a multiple of 19.8 for Simon Property Group Inc., the largest U.S. REIT by market value.

Little Impact

"I don't think I've ever seen a Muddy Waters report having this little an impact on the market," Ophir Gottlieb, managing director at San Francisco-based Livevol Inc., a provider of options-market analytics, said by phone yesterday. "It just wasn't that big of a deal."

Hedging by people who owned the stock may explain why the shares didn't fall more after put trading surged, Gottlieb said. In the two days before the report, more than 40,000 bearish contracts changed hands each day, compared with a historical average of 1,900, according to data compiled by Bloomberg. The shares slid 4 percent from July 15 to 16.

There is about a $250 million discrepancy between the price American Tower said it paid for towers in Brazil and the actual sale price, the Muddy Waters report said, citing research from financial statements of the companies acquired, Brazil's central bank and six industry sources.

Brazilian Acquisition

American Tower rejected Block's assertion that it paid around $300 million for the Brazilian communication sites, according to a filing released after the close of trading yesterday. The company said the price was about $585 million for the towers, financed by intercompany loans, cash from operations and equity contributions.

American Tower's management shows a "lack of faith" in the company's stock price, Block said in his report, citing share sales from exercised options. The company also faces weak growth overseas, such as India, Ghana and Brazil, according to the note.

"When we have gone into the field and actually rolled up our sleeves and figured out what is going on in many of these emerging markets, the reality is actually very different from what the company tells you," Block said yesterday. "The way that this business is working overseas, it's just not going to work as well as it has in the U.S."

Pedestrian, Foolish

Muddy Waters failed to identify any new challenges facing American Tower, according to Andrew Hamerling, managing partner of Wavelength Asset Management, a New York-based hedge fund.

"This report was pedestrian and foolish," said Hamerling. American Tower is one of the largest holdings in the Wavelength Asset Management fund, he said. "The emerging market risks were always there, and the company had done an admirable job managing those risks and returning value to shareholders."

Wells Fargo's Jennifer Fritzsche said she disagreed with Block's contention that the business faces a major threat from Wi-Fi because data demand is growing, according to a note published yesterday. Investors should buy shares of this "high-class" company, Macquarie's Kevin Smithen said in a report.

The stock has 19 buy ratings, five holds and one sell, according to analyst recommendations compiled by Bloomberg. The shares are down 4.4 percent in 2013.

Real estate investment trusts, whose primary income streams are from properties, don't pay federal income taxes. In exchange, they're required by the Internal Revenue Service to distribute at least 90 percent of their taxable earnings to shareholders in the form of dividends.

3 Dow Laggards of 2013

Top 10 Clean Energy Stocks To Buy For 2014

It's been a long time coming for both natural gas and solar as viable sources of energy in the United States. Both have been struggling with a lack of consumer and industrial buy-in, but both could be right around the corner. Is either one standing out at the moment?

The debate is on
In the following video, Motley Fool analysts Joel South and Taylor Muckerman each weigh in on how natural gas and solar have been performing lately and which companies are taking the lead. Both options have made progress recently, with Clean Energy Fuels (NASDAQ: CLNE  ) building out its "America's Natural Gas Highway" initiative and SunPower (NASDAQ: SPWR  ) producing more efficient solar panels.

Has Clean Energy Fuels solved the "chicken-or-the-egg" debate?
The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It's poised to make a big impact on an essential industry. Learn everything you need to know about Clean Energy Fuels in The Motley Fool's premium research report on the company. Just click here now to claim your copy today.

Top 10 Clean Energy Stocks To Buy For 2014: Questar Corporation(STR)

Questar Corporation operates as an integrated natural gas holding company. The company develops and produces natural gas and crude oil from its properties located in the Rocky Mountain region, primarily in the Pinedale, Moxa Arch, Vermillion, and Uinta producing areas. It also provides interstate natural gas-transportation and underground-storage services in Utah, Wyoming, and Colorado; and wellhead automation and measurement services for Rockies oil and gas producers. The company owns and operates approximately 2,568 miles of interstate pipeline with total firm-capacity commitments of 4,983 Mdth per day transporting natural gas from Rocky Mountain producing areas to other pipeline systems, distribution systems, and other utility systems; the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line that extends from the Blanco hub in the San Juan Basin to just inside the California state line near the Arizona border; the White River Hub facilities that connect with 6 interstate-pipeline systems and a processing plant near Meeker, Colorado; the Clay Basin storage facility, an underground-storage reservoir in the Rocky Mountain region; and gathering lines and processing facilities, which provide gas-processing services for third parties near Price, Utah. In addition, it distributes natural gas as a public utility in Utah, southwestern Wyoming, and a small portion of southeastern Idaho. Questar Corporation was founded in 1922 and is headquartered in Salt Lake City, Utah.

Advisors' Opinion:

• [By Peter Leeds]

  We are currently seeing currency devaluations from USA to Switzerland and from South Korea to the eurozone. In America in 1960, $1,000 worth of goods would now cost you $7,360, according to the web site MeasuringWorth.com. I expect inflation to continue and, since precious metals are bought in American dollars, I anticipate higher prices for all metals.

  I think Newmont Mining (NEM 0.00%) will be one of the biggest beneficiaries of this trend. It is currently producing and selling gold and developing new reserves all over the world. NEM posted net earnings of $2.3 billion in 2010 and currently sits on $29 billion in total assets. I think it could trade up to $89.50.

• [By Peter Leeds]

  A growing population (7 billion), and an increasingly sophisticated diet among China and other developing nations have led to rapidly increasing demand for food around the world. According to Food and Agriculture Organization (FAO) data, China's per capita intake of calories, protein, and fat were below the world average in 1975, but are now well above the world average. Expect this trend to accelerate in China, as well as India, Pakistan, Indonesia, and other developing nations.

  The problem is that there's not even close to enough food, while challenging agricultural environments routinely wipe out crops.

  That's where Monsanto (MON 0.00%) comes in. It enables more food to be produced on smaller parcels of land with less water usage and limited crop loss. Global demand for MON's products and services just keeps growing.  I am expecting its $20 billion in assets and constant net earnings ($1.6 billion in 2011) to translate into further gains in the share price. My price outlook:  $94.

Top 10 Clean Energy Stocks To Buy For 2014: Mecox Lane Limited(MCOX)

Mecox Lane Limited, through its subsidiaries, engages in the design and sale of apparel, accessories, and home and healthcare products through its online platform and stores in the People?s Republic of China. Its apparel and accessories include women?s T-shirts, sweaters, jeans, dresses, outerwear, purses, and shoes, as well as offers kids? apparels and men?s apparels. The company also provides home furnishings and other small household appliances; a large-rim cup to cook instant noodles; beauty and healthcare products, such as skin care, fragrance, cosmetics, and other personal care products; and pet-related and other products. It sells its products under Euromoda and Rampage brands, as well as under third-party brands. In addition, the company involves in the telephonic sale of garments, accessories, and other products; and wholesale and retail of garments. Further, it offers software development and information technology support services. As of December 31, 2010, t he company operated 451 stores, including 327 franchised stores and 124 directly operated stores in 172 cities. Mecox Lane Limited distributes its products through company-owned and franchised stores, as well as through its M18.com e-commerce Website. The company was founded in 1996 and is headquartered in Shanghai, the People?s Republic of China. Mecox Lane Limited is a subsidiary of Mecox Lane.

10 Best Stocks To Buy For 2014: Clean Energy Fuels Corp.(CLNE)

Clean Energy Fuels Corp., together with its subsidiaries, provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company designs, builds, operates, and maintains fueling stations, as well as supplies compressed natural gas (CNG) and liquefied natural gas (LNG) fuel for medium and heavy-duty vehicles. Its CNG is used in automobiles, light to medium-duty vehicles, refuse trucks, and transit buses as an alternative to gasoline and diesel. The company also sells non-lubricated natural gas compressors and related equipment used in CNG and LNG stations; and produces renewable natural gas, which is used as vehicle fuel or sold for power generation. In addition, it offers vehicle finance services for the purchase of natural gas vehicles, as well as for the conversion of gasoline or diesel powered vehicles to operate on natural gas. Further, the company provides natural gas conversions, alternative fuel systems, application engineering, service and warranty support, and research and development services for natural gas vehicles. As of December 31, 2011, it served approximately 530 fleet customers with approximately 25,000 natural gas vehicles; and owned, operated, or supplied 273 natural gas fueling stations in 23 states within the United States, and British Columbia and Ontario within Canada, as well as in Peru. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Seal Beach, California.

Top 10 Clean Energy Stocks To Buy For 2014: Republic Airways Holdings Inc.(RJET)

Republic Airways Holdings Inc., through its subsidiaries, provides scheduled passenger services. The company offers scheduled passenger services on approximately 1,500 flights daily to 133 cities in 42 states, the Bahamas, Canada, Costa Rica, Dominican Republic, Jamaica, and Mexico under branded operations and through fixed-fee airline services agreements. As of December 31, 2011, its total operational fleet consisted of 281 aircrafts. The company also offers cargo and charter services. Republic Airways Holdings Inc. was founded in 1996 and is headquartered in Indianapolis, Indiana.

Top 10 Clean Energy Stocks To Buy For 2014: VOC Energy Trust(VOC)

VOC Energy Trust owns a term net profits interest of the net proceeds from production of the interests in oil and natural gas properties in the states of Kansas and Texas. It owns an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2009, the underlying properties produced oil from approximately 892 gross (550.2 net) wells located in 193 fields; and had total proved reserves of 13.0 million barrels of oil equivalent. The company was founded in 2010 and is based in Austin, Texas.

Top 10 Clean Energy Stocks To Buy For 2014: Century Bancorp Inc.(CNBKA)

Century Bancorp, Inc. operates as the holding company for Century Bank and Trust Company, which provides banking services to commercial enterprises, state and local governments and agencies, nonprofit organizations, and individuals in Massachusetts. The company accepts savings accounts, NOW accounts, demand deposits, time deposits, and money market accounts. Its loan portfolio comprises single and multi-family residential loans, commercial and industrial loans, commercial real estate loans, construction loans, home equity loans, and consumer loans. The company also offers automated lockbox collection, cash management, and account reconciliation services to its corporate and institutional customers, as well as promotes the marketing of these services to the municipal market. In addition, it provides securities brokerage services; and financial services, including transaction processing and short-term financing to municipalities. As of December 31, 2009, Century Bancorp oper ated 22 banking offices in 17 cities and towns in Massachusetts. The company was founded in 1969 and is headquartered in Medford, Massachusetts.

Top 10 Clean Energy Stocks To Buy For 2014: Papa John's International Inc.(PZZA)

Papa John?s International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John?s trademark worldwide. The company also operates dine-in and restaurant-based delivery restaurants in certain international markets. As of December 25, 2011, the company operated 3,883 Papa John?s restaurants consisting of 628 company-owned and 3,255 franchised restaurants in 50 states of the United States and 32 countries. Papa John?s International, Inc. was founded in 1985 and is headquartered in Louisville, Kentucky.

Top 10 Clean Energy Stocks To Buy For 2014: Ocwen Financial Corporation(OCN)

Ocwen Financial Corporation, through its subsidiaries, provides residential and commercial mortgage loan servicing, special servicing, and asset management services in the United States and internationally. The company provides loan servicing, including asset management and resolution services primarily to owners of subprime residential mortgages. It also invests in subprime residential loans held for resale; and is involved in subprime residual mortgage backed trading securities related to subprime loan origination operation and whole loan purchase and securitization activities, as well as engages in the management of residential assets. Ocwen Financial Corporation was founded in 1988 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By James K. Glassman]

  Ocwen Financial (symbol: OCN) soared 142% in 2012, but it still has room to grow. Ocwen services mortgages, so it's partly a play on a resurgent housing market. In October, the company announced two deals -- one for the loan-servicing business of Residential Capital and the other for Homeward Residential, a mortgage servicer and originator. Analysts see Ocwen earning $4.50 per share in 2013, but I think profits will be much higher.

• [By Ed Carson]

  Ocwen is one of several highflying mortgage loan servicing firms reaping huge growth as bigger lenders unload home loans, especially riskier debt.

  Analysts expect Ocwen to report an 82% EPS gain for Q4, with triple-digit gain in every quarter of 2013.

  Ocwen in October won ResCap's massive loan servicing unit, outbidding Nationstar Mortgage (NSM). Ocwen's shares shot up 34% that month, but then began consolidating. Some investors wondered if the easy pickings were over for the loan servicing upstarts. But Ocwen vaulted nearly 10% last week, back near its highs, after Nationstar snapped up a huge chunk of loans from BofA. It was a timely reminder that Bank of America has wanted to slash its risky mortgage portfolio.

  Nationstar rose 14% for the week, even after shaving gains from Tuesday's all-time high.

• [By Andrew Feinberg]

  52-Week High: $39.83
  
  52-Week Low: $13.12
  
  Annual Revenue: $765 million
  
  Projected 2013 Earnings Growth: 212.5% 
  
  Ocwen Financial (symbol: OCN) soared 142% in 2012, but it still has room to grow. Ocwen services mortgages, so it's partly a play on a resurgent housing market. In October, the company announced two deals -- one for the loan-servicing business of Residential Capital and the other for Homeward Residential, a mortgage servicer and originator. Analysts see Ocwen earning $4.50 per share in 2013, but I think profits will be much higher.

Top 10 Clean Energy Stocks To Buy For 2014: PharmAthene Inc(PIP)

PharmAthene, Inc., a biodefense company, engages in the development and commercialization of medical countermeasures against biological and chemical weapons in the United States. Its product candidates include SparVax, a recombinant protective antigen anthrax vaccine that completed one Phase I and two Phase II clinical trials for post-exposure prophylaxis in conjunction with antibiotics and general use prophylaxis; Valortim, a human monoclonal antibody that completed Phase I clinical trial to protect against and treat human inhalational anthrax,; and Protexia, a recombinant enzyme butyrylcholinesterase for nerve agent poisoning by organophosphorous compounds, including nerve agents and pesticides. The company serves the United States Department of Defense, the National Institute of Allergy and Infectious Diseases, the Biomedical Advanced Research and Development Authority, and the National Institute of Health. It has collaboration with Bristol Myers Squibb, Inc. for the de velopment of Valortim. The company was founded in 2001 and is headquartered in Annapolis, Maryland.

Advisors' Opinion:

• [By Michael]

  This is a confusing play at first blush. Pharmathene has just wrapped up a lawsuit seeking major damages from Siga Technologies (Nasdaq: SIGA) regarding an agreement the companies may (or may not) have had to jointly benefit from an important smallpox drug that the U.S. government plans to stockpile in large volumes. A resolution to the lawsuit is expected in the late spring -- or sooner -- and Pharmathene could get hundreds of millions of dollars if it prevails. It's a hard case to handicap, and media reports from the trial indicate that neither the plaintiff nor the defendant emerged as a clear-cut winner. This $3 stock could end up approaching $10 -- or more -- in a best-case scenario, although a move below $2 would be the likely outcome if Siga Technologies prevails.

Top 10 Clean Energy Stocks To Buy For 2014: Mercator Transport Group Corpor (GMT.V)

Mercator Transport Group Corporation engages in the air and sea transportation engineering, as well as international logistics and distribution in Canada, Europe, the United States, and Africa. The company offers value-added services in global supply chain management, as well as designs tailored logistics solutions; and guides and organizes the flow of client�s goods and services between Canada and internationally. It provides a range of services, including customs and administration; ocean, air, and transborder freight forwarding; door to door; local and international transportation; shipment consolidation; warehousing; and pick and pack services for local, national, and international transportation by road, air, or sea. The company also offers value-added distribution and supply solutions for plastics, wood, absorbents, safety and environment, and water treatment industries. Mercator Transport Group Corporation is headquartered in Montreal, Canada.