Has Technological Progress Made Peak Oil Theory Irrelevant?

In 1956, Marion King Hubbert, a prominent geologist for what is now Royal Dutch Shell (NYSE: RDS-A  ) , made a bold prediction. Based on an extensive analysis of reserves and production data, he concluded that U.S. crude oil production would peak at some point in the late 1960s or early 1970s, after which it would begin an inexorable decline.

For decades, his dire prediction looked startlingly accurate. In 1970, U.S. oil production reached 9.6 million barrels a day -- a level that hasn't been equaled since -- and then began to decline. It fell steadily from 1970 to 1976, and then rose modestly until 1985, after which it once again slipped into a steady decline that lasted for more than two decades.

Hubbert's prediction laid the path for what has since become known as peak oil theory, a highly influential theory that argues that global oil production is rapidly approaching, or has already reached, a peak. Some advocates of the theory even warn that once oil runs out, chaos will ensue, leading to "war, starvation, economic recession" and perhaps "even the extinction of homo sapiens."

A line of cars at a gas station in Maryland in June 1979. Photo Credit: Wikimedia Commons.

But then something happened that almost no one had predicted. Starting in 2008, U.S. crude oil production began to grow, slowly at first and then much more rapidly after 2011. Last year, it averaged nearly 7.5 million barrels per day, the highest level since 1989, and recently reached 8.43 million barrels per day, a level not seen since October 1986. So what happened?

How technology changed the game
At the risk of oversimplifying, technology happened. Specifically, the widespread application of advanced drilling techniques, including horizontal drilling and hydraulic fracturing, allowed energy companies to tap vast deposits of oil and natural gas buried in shale formations thousands of feet below the ground.

Not only have technological improvements boosted U.S. crude oil production to levels not seen since the 1980s, but they've also helped boost crude oil reserves to their highest level since the 1970s. As of the beginning of 2013, U.S. proven crude oil reserves stood at 30.5 billion barrels. That represents an increase of 11.5 billion barrels, or 60%, from year-end 2008 levels, even as 8.4 billion barrels were produced over that time period.

Proven reserves are defined as those that can be economically extracted at current prices using existing technology with a reasonable degree of certainty, meaning a probability of at least 90%. The reason proven reserves have increased so sharply is a combination of new discoveries, more thorough appraisals of existing fields, and technological improvements that have improved recovery rates.

Shale resource potential continues to grow
Take North Dakota's Bakken shale, for instance, one of the largest shale oil discoveries in North America. As operators have improved their drilling techniques in the Bakken over the past few years, they've opened up an entirely new play called the Three Forks formation -- a deeper, separate formation that rests directly below the Bakken and extends much further out into parts of Montana and South Dakota.

An oil rig in North Dakota's Bakken shale. Photo credit: Ole Jorgen Bratland / Statoil ASA.

As a result, total reserves for the Bakken/Three Forks are now estimated to be almost 900 billion barrels, up from roughly 570 billion barrels in 2010. While only about 3.5% of this oil is currently thought to be recoverable, technological advances could drive that percentage significantly higher. Already, improvements in drilling efficiency and smarter well completion methods have allowed several Bakken operators to coax much more oil and gas from their wells.

For instance, Continental Resources (NYSE: CLR  ) , the leading Bakken driller, has seen tremendous initial success from testing tighter spacing between its wells. The company recently drilled 14 horizontal wells spaced 1,320 feet apart in the in the southern part of its Three Forks acreage that produced 50% more oil and gas in their first three months of production than the company's average Bakken well.

This technique of spacing wells closer together -- known as downspacing -- is also yielding encouraging results for Kodiak Oil & Gas (NYSE: KOG  ) , another Bakken driller that's currently evaluating 800-foot spacing and 600- to 650-foot spacing between wellbores as part of its Polar Pilot projects. Initial results from these pilot programs suggest that the company will be able to unlock additional drilling locations through tighter-density drilling without interfering with existing wells.

Is peak oil theory still relevant?
As these examples highlight, continued improvements in drilling technology have allowed energy companies to tap previously unreachable shale formations, resulting in a sharp increase in production and reserves. In the years ahead, operators may turn to enhanced recovery methods such as carbon dioxide injections to boost recovery rates even further.

Still, I don't think these developments render peak oil theory irrelevant. Even though technology has unlocked vast new reserves, fossil fuels are finite resources, after all, and will eventually run out. Technological improvements can merely extend the amount of time before that happens. Eventually, though, there's no denying that we must wean ourselves off fossil fuels.

OPEC is absolutely terrified of this game-changer
As the debate over peak oil theory highlights, America's domestic energy landscape is changing radically. U.S. oil production continues to surge as our country moves closer to energy independence. And there is one company front and center that is poised to make its investors rich. Warren Buffett has already committed to it, and you can too. Click here to learn about this company in the Motley Fool's special report: OPEC's Worst Nightmare.

Finally — new VW Golf hits U.S showrooms

Volkswagen finally put its seventh-generation Golf on sale in the U.S., starting with the high-performance GTI.

VW announced the arrival of the GTI at dealerships Friday, but conceded that the first sales probably were over Memorial Day weekend.

The Gen-7 Golf has been sold overseas since late 2012. VW said it delyed a U.S. launch until it could shift production of the car from Germany to VW's Puebla, Mexico, factory, where it also makes the Jetta and Beetle for the U.S. and overseas markets.

Starting with a niche model, the GTI, means that the automaker's new Golf assembly operation in Puebla initially can run slower to work out any bugs, if VW chooses to do that.

The Gen-7 Golf is a little bigger than its predecessor, but weighs as much as 79 pounds less. Engines are more powerful, but mileage is better.

The GTI starts at $25,215, for the two-door, manual transmission model with 2-liter, 210-horsepower turbocharged gasoline four-cylinder engine. Power rises to 220 hp with the $1,495 Performance Package of features that also includes a limited-slip front differential and bigger brakes.

The standard Golf starts at $18,815. That's a so-called "Launch Edition." Like the basic Golf, it's a two-door with manual and 1.8-liter, 170-hp, turbo four-cylinder. It's $1,000 less than what will become the base Golf, called "S," once sales are rolling.

To keep the price down, Launch gets steel wheels instead of alloys, cloth seats instead of VW's V-Tex leatherette (vinyl) and lacks the Golf S Car-Net telematic system.

Golf TDI (VW's designation for its diesel) will start at $22,815, and is available only as a four-door. The diesel engine is a new design, though its specifications are similar to the TDI it replaces. It gets a 10-ho boost, to 150 hp, and has the same 236 lbs.-ft. of torque as the current version

The Golf is VW's best-selling car worldwide, but is a mid-pack seller among VW models in the U.S.

The 2015 Golf is 2.1 inches longer than the the pr! evious model, 0.5 of an in. wider and the roof sits 1.1 in. lower. The 2015 lineup is as much as 79 pounds lighter than the cars being replaced.

Front wheels are 1.7 in, further forward as VW moves toward a "cab rearward" look that marks larger, premium cars, as well as recently designed mainstreamers such as Mazda6.

Mileage:

GTI is rated by the government at 25 mpg in the city, 34 (33 with automatic transmission) on the highway, 28 in combined city/highway driving. That's up from ratings of 21/31/25 for the 2014 manual and 24/32/27 for the automatic.1.8-liter four-cylinder gasoline turbo in most models is rated by VW at 26/37 with manual gearbox, 26/36 with automatic. VW gives no combined city/highway rating, and the government hasn't yet rated the Golf's new engine. It replaces the 2.5-liter five-cylinder which has a government rating of 23/30./26.2-liter diesel is rated by VW at 31/42 with manual, and isn't yet rated by the automaker with automatic transmission. No government rating yet. The diesel it replaces is rated by the government at 30/42/34.

Was J.C. Penney’s Recent Quarter a Fluke During a Perfect Storm?

J.C. Penney's (NYSE: JCP  ) stock fell more than 50% in the past 12 months and has increasingly underperformed the market for more than a decade. A few weeks ago, first-quarter earnings beat estimates and showed some signs of improvement. However, is J.C. Penney showing real improvement over other big-name rivals like Kohl's (NYSE: KSS  ) and Target (NYSE: TGT  ) ? Or was J.C. Penney's recent quarter just a fluke?

By Mike Kalasnik, via Wikimedia Commons

Viewing J.C. Penney's earnings against its peers
J.C. Penney's revenue was up 6.3% to $2.8 billion in its first quarter. Net income, however, fell 1.1% to a loss of $352 million. The two big metrics that impressed the market, though, were that same-store sales were up 6.2% and overall earnings per share came in better than what analysts expected.

In contrast to J.C. Penney, Kohl's quarter was a lot worse overall. Net income plunged 15% to $125 million on sales that fell 3.1% to $4.1 billion. Earnings per share fell 9%, while same-store sales worsened from the 1.9% decline a year ago to a drop of 3.4%.

Even though Target saw its revenue rise 2.1% to $17.1 billion, net income fell 16% to $418 million. The company is still recovering from the data breach, as store traffic dropped 2.3% in the quarter.

The market has pushed J.C. Penney shares past both Kohl's and Target; this is not only based on its recent quarter but on the hope that the turnaround is just in the beginning stages and that the shares have significant upside potential.

Are Kohl's days of paradise over? By MattL90, via Wikimedia Commons

The perfect storm for J.C. Penney?
There is significant evidence suggesting that J.C. Penney's recent rise is the byproduct of a competitor's recent struggles.

Kohl's was once a name synonymous with growth among retailers. From 1994-2004, the stock saw more than 700% in gains. In the past 10 years, the stock has produced slightly more than 31% in returns, not including dividends.

In its conference call, Kohl's blamed the weather for its e-commerce issues due to the ship-from-store system only being in place in 200 stores currently. However, a bigger issue may exist in the overall business model.

Kohl's is known for its predictable monthly sales and Kohl's Cash program that rewards customers when purchases exceed certain minimums. Customers are likely putting off purchases until the monthly sale rolls around to make bigger purchases at once in order to also receive Kohl's Cash. This would explain the decline in store traffic and the big drop in net income, which was likely affected by items being sold at promotional prices.

Target is facing its own issues that grew out of the data breach that occurred at year-end 2013. Ongoing costs and future costs to support higher security measures will weigh down the company for several quarters.

Target's Canadian segment continues to underperform, and the company is undergoing new leadership changes that include a new CEO and a new Canadian head.

J.C. Penney's position in retail improves significantly when you consider the target customers of these three companies.

Both Kohl's and Target are in a tough position because they are both getting squeezed at the high and low ends of retail. Both have a problem attracting the middle-end consumer, who continues to evolve depending on the overall economy. As a result, targeting middle-income customers is a lot harder than offering the lowest prices or introducing products for luxury customers.

Lastly, bad weather may give J.C. Penney an edge. The majority of Kohl's and Target locations are positioned in outdoor shopping centers, and some of them operate as stand-alone stores. Half of the 1,050 indoor and open air malls in the U.S. have J.C. Penney as an anchor tenant. Because of this, J.C. Penney has had the advantage of more potential foot traffic due to customers visiting other stores at the mall.

Obstacles didn't disappear for J.C. Penney's
Store traffic for J.C. Penney was still negative this past quarter despite April being the first month of positive results in two-and-a-half years. J.C. Penney continues to close its stores. At the end of FY 2012, there were 1,104 stores. At the end of this past fiscal year, there were 1,094 stores. While this news isn't terrible, especially since the online business grew 25.7% last quarter, it goes against J.C. Penney's self-imposed long-term goal -- to increase foot traffic in stores. With more than 30 stores being closed this year, mostly in malls, J.C. Penney is slowly losing its brick-and-mortar presence.

Possibly J.C. Penney's biggest obstacle: empty malls. By Jtalledo, via Wikimedia Commons

The fact that large indoor malls are quickly becoming obsolete may be the biggest burden of all for J.C. Penney over the long-term. Only six new indoor malls have been built in the U.S since 2010, a far cry from indoor mall growth during the 1980's.

Bottom line
J.C. Penney still has raised doubts among many investors. The company's stock has a large short interest of more than 30%. As a result, stock price pops on good news may be partly due to short covering.

J.C. Penney still needs to find a strategy to differentiate itself from its peers that goes beyond Kohl's and Target. Customers need to know what J.C. Penney brings to the table that others don't. While growing same-stores sales is indeed a positive, it doesn't mean much when many of these sales are at promotional or clearance prices.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recent recruited a secret-development "dream team" to guarantee their newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And their stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

 

4 Financial Planning Profiles That Determine Future Success

In something of a surprise, new research sponsored by the Consumer Federation of America and Certified Financial Planner Board of Standards finds close to nine in ten American households are engaged in some type of formal or informal financial planning.

However, the extent of this planning varies greatly, and will generally fall into one on four behavioral areas identified by the organizations: comprehensive planners, basic planners, limited planners and non-planners.

The research shows that only one in five household decision makers are comprehensive planners, or those who take a methodical approach to financial planning, while one in ten do virtually no financial planning at all. The research further identifies nearly two-fifths of households as basic planners and one-third of households as limited planners.  

“I was most surprised by the number of Americans involved in planning,” said Stephen Brobeck, CFA’s executive director. “Yes, the degree to which they’re planning does vary, but I thought the number of people that do not do any planning would be much higher.”

One of the most compelling findings, according to Brobeck, is that the more extensively households plan, the better prepared they are financially in terms of their likelihood of saving, investing and managing credit card debt. That in turn leads to higher effectiveness in saving, investing, and debt management, as well as higher confidence in managing their finances.

Additionally, while higher income households are more likely than lower income households to plan, more than half of comprehensive planners have annual incomes below $100,000.

“Low to moderate income workers usually don’t have access to employer-sponsored plans,” Brobeck noted. “But they do have access to saving accounts. Even if it’s $25 a month, it will greatly help them. It’s not about the amount so much as it is the behavior.”

Extensive analysis of the four distinct financial planning profiles includes: 

The higher one’s household income and level of education, the more likely one is to engage in financial planning, the survey finds. Among comprehensive planners, close to half report annual household incomes of at least $100,000 and about half have a four-year college degree. Among non-planners, more than half half have incomes under $25,000 while more than two-thirds have a high school education or less.

But these correlations are far from perfect, the survey adds.  The majority of comprehensive planners are middle class, it notes. In fact, a quarter have incomes below $50,000.

“The failure of middle-class incomes to grow is as big a problem as any facing the country today,” Brobeck concluded.

Angie Herbers’ Firm to Merge With Wealth Management Marketing

After a “four-year, overnight merger” process, Angie Herbers Inc., led by Angie Herbers, and Wealth Management Marketing Inc., led by Kristen Luke, are merging to form a new, as-yet-unnamed company with 14 employees that will be based in San Diego.

Herbers, whose firm was founded 12 years ago (and who has been writing for Investment Advisor and ThinkAdvisor for nearly that long; view her most recent writings here), made that quip in an interview Thursday in which she explained the rationale for the merger and the offerings to advisors that the merged company will provide.

The merger is one of equals, with Herbers holding half of the new company’s stock and Luke holding the other 50%. “It’s a true merger,” said Herbers, “creating a new brand and a new name,” which will be rolled out either late this year or early in 2015. Herbers will be managing partner; she and her four employees will move from Manhattan, Kansas, to San Diego, where Wealth Management (founded in 2008) and its 10 employees (including Luke) is based.

“Kristen and I have worked with mutual clients for more than four years,” Herbers said, and “lots of clients told us we should merge; it took us four years for us to say ‘You’re right’” to those clients.

For clients, Herbers said, normally “I would come in at the very beginning and develop a strategy” to help create “great people, processes and procedures, M&A or a succession plan,” but then would refer to Luke’s firm for fulfilling an advisory firm’s marketing strategy.

“I was referring all this business to Kristen, and then we’d work together,” says Herbers, and that’s when clients would say “Why not work together under one firm that offers it all? Once we said yes, it became easy to put together” the merger.

Herbers admits, however, that while she helped “facilitate over 100 mergers” for her advisor clients, “it’s different when it’s your own.”

Why the merger? Herbers says she’s doing it “for myself and my employees and my clients,” since “the missing piece [at her firm] has always been the marketing strategy.” Moreover, she feels strongly that “the competitive landscape of the advisory industry is changing,” which means that for advisors “it’s harder to get new clients from referrals only,” which necessitates a rigorous marketing strategy. “I either had to do this as an advocate for my clients,” Herbers aid, “or send all that business to Kristen.”

Herbers says “our ultimate objective is to be the leading business management firm for independent advisors — for marketing, operations, recruiting and human capital, M&A and succession planning.”

So what’s the plan for two consultants? “We have a clear operational plan that will be rolled out in 2015. We don’t want to do it too fast; we’re asking our clients to change with us, so we need to give clients time to get used to having one firm” to work with.

The toughest part of the process turned out to be the most rewarding, she said. “I was worried” about asking the employees to relocate halfway across the country, Herbers said. “I offered moving packages, and they all agreed,” she says, which served as a “validation of what I worked all my career to accomplish: happy employees. It was the best moment of my professional life.”

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Check out Should You Be Managing People? How to Tell by Angie Herbers on ThinkAdvisor.

4 Big Stocks on Traders' Radars

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Stocks Insiders Love Right Now

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Large-Cap Trades for All-Time Highs

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Strategic Hotels and Resorts

Nearest Resistance: $11.50

Nearest Support: $10.40

Catalyst: Offering, REIT Drop

$2.2 billion REIT Strategic Hotels and Resorts (BEE) is down close to 4% on huge volume this afternoon, slapped lower on the heels of a 36 million-share offering that priced at $10.50 per share. The drop is getting a little extra downside momentum from Treasuries -- REITs are correcting as a sector today. But the key word here is correction; looking longer-term, the trend for BEE and - the rest of the REIT space - is unmistakably up.

BEE has been bouncing higher in an uptrending channel for the past several months, moving up on every successive test of trend line support. Now, the high probability move is to buy BEE's next bounce off of support. Shares could correct down to $10.40 support without threatening that uptrend.

Twitter

Nearest Resistance: $40

Nearest Support: $27

Catalyst: Analyst Upgrade

Long-suffering Twitter (TWTR) investors are getting a reprieve this afternoon, thanks to a 5% jump in the microblogging network's share price. Twitter is up on big volume this afternoon thanks to an analyst upgrade from Nomura -- the bank upped its view of Twitter from neutral to buy. But don't confuse today's pop in shares with a big change in trend.

Technically speaking, TWTR still looks very bearish. Shares have been bouncing lower in a textbook downtrend since the start of 2014, and today's move up looks like a drop in the bucket by comparison. TWTR could move all the way up to $40 without threatening its downtrend. Buyers should avoid going long this name until shares can break out.

Michael Kors Holdings

Nearest Resistance: $100

Nearest Support: $92

Catalyst: Q4 Earnings

Apparel name -- and occasional Rocket Stock -- Michael Kors Holdings (KORS) is seeing big volume this afternoon following the firm's fiscal fourth quarter earnings release to Wall Street. KORS earned 78 cents per share in the fourth quarter, beating the consensus best guess of 68 cents. And while today's price action has been anything but definitive, KORS has been recovering over the course of the session as investors digest what the earnings numbers mean for the year ahead.

KORS' chart still looks attractive at this point. Shares have been bouncing higher in a recently-formed uptrend, and they're holding that trend line support level in today's session. As long as Michael Kors can continue to catch a bid above $92, this is a "buy the dips" stock.

DSW

Nearest Resistance: $32

Nearest Support: N/A

Catalyst: Q1 Earnings

Shoe retailer DSW (DSW) is getting utterly shellacked this afternoon, down more than 27% following the release of its first quarter earnings numbers. DSW earned 42 cents per share last quarter, falling short of 48-cent expectations from analysts.

There's no question: This chart is broken heading into the summer. While DSW started the year trending lower, today's huge gap down knocked out any semblance of support in shares. Now, there's a lot more downside risk for shareholders to contend with. New buyers would do well to stay away until the sellers are done with this name.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>4 Stocks Under $10 in Breakout Territory

>>5 Toxic Stocks to Sell Now

>>5 Big Stocks to Trade for Flat-Market Gains

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in the names mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Government Made $1.3 Billion in Improper Disability Payments

Justin Sullivan/Getty Images By STEPHEN OHLEMACHER Social Security made $1.3 billion in potentially improper disability payments to people who had jobs when they were supposed to be unable to work, congressional investigators said in a report Friday. The Government Accountability Office estimated that 36,000 workers got improper payments from December 2010 to January 2013. The numbers represent less than 1 percent of beneficiaries and less than 1 percent of disability payments made during the time frame. But GAO said the overpayments reveal weaknesses in Social Security's procedures for policing the system. "The report lays out clear, common-sense steps that the agency can and should take in order to avoid improper payments," said Sen. Tom Carper, D-Del., chairman of the Senate Homeland Security and Governmental Affairs Committee. "However, if we're serious about preventing waste and fraud and ensuring that these critical benefits get to the people who need and deserve them, Congress must also do its part and provide needed resources and access to basic anti-fraud data to the Social Security Administration." The Social Security Administration said its accuracy rate for disability payments is more than 99 percent. But the agency noted that even small errors translate into big numbers. "We are planning to do an investigation, and we will recoup any improper payments from beneficiaries," Social Security spokesman Mark Hinkle said. "It is too soon to tell what caused these overpayments, but if we determine that fraud is involved, we will refer these cases to our office of the inspector general for investigation." More than 8.2 million disabled workers received disability payments in December 2010, a figure that has grown to nearly 9 million. Last year, the agency paid out $137 billion in disability payments. Before people can receive disability benefits, there is a 5-month waiting period in which they can, in general, earn no more than about $1,000 a month. The waiting period is to ensure that beneficiaries have long-term disabilities. Using a federal wage database, investigators checked whether a sample of disability beneficiaries had worked and earned significant wages during the waiting period, the report said. They found that most of the improper payments went to people who worked during the five months they waited for payments to begin. Once people start receiving benefits, they can return to work and still get benefits during a trial work period, in an attempt to re-enter the workforce. Using the same wage database, investigators checked whether another sample of disability beneficiaries earned significant wages after their trial work period had ended, the report said. Based on their findings, the GAO estimated the amount of improper payments and the number of people receiving them. Citing a potential weakness, the report said Social Security might not detect a person who worked during the waiting period if the period started in one year and ended in another. For example, if Social Security starts paying benefits in February, the agency might not detect significant wages earned the previous November because they weren't earned in the same year that benefits were awarded, the report said. In a written response to the report, the Social Security Administration agency questioned whether GAO overestimated the amount of overpayments. The agency said investigators did not determine whether the work activity qualified as an unsuccessful attempt to return to work, or whether there were any other special circumstances. The report comes as Social Security's disability program faces a financial crisis. If Congress doesn't act, the trust fund that supports the disability program will run out of money in 2016, according to projections by Social Security's trustees. At that point, the system will collect only enough money in payroll taxes to pay 80 percent of benefits, triggering an automatic 20 percent cut in benefits. Congress could redirect money from Social Security's much bigger retirement program to shore up the disability program, as it did in 1994. But that would worsen the finances of the retirement program, which is facing its own long-term financial problems. "This report demonstrates just how little importance the Social Security Administration places on policing its disability rolls," said Sen. Tom Coburn of Oklahoma, the ranking Republican on the Senate Homeland Security and Governmental Affairs Committee. "SSA has known for years that it could prevent millions of dollars in improper disability payments using quarterly wage records, but chose not to."

Shades of 'Alien' in Jack Link's ads

You might call this an Alien moment.

Imagine using a vastly toned-down, knock-off of one of the scariest moments in the history of film to sell, well, beef jerky.

That's, essentially, what Jack Link's Beef Jerky is attempting to do with a who'd-a-thunk-it ad campaign that debuts June 2. Anyone who's seen the 1979 science fiction classic, Alien, will vividly remember the scene when a nasty, super-spooky-looking alien creature, comes ripping-out of the stomach -- head first -- of one of the space ship's crew members.

Fast forward to 2014. There's no spaceship here. But in three, sure-to-go-viral advertisements, folks with seriously-growling stomachs surprise viewers when wild animal heads -- an eagle, wolf and puma -- come ripping right out of their tummies. The campaign is dubbed "Hangry Moments" -- when your hunger is so debilitating that you're angry.

USA TODAY got an sneak-peek at the three ads. No, they're not at all gory like in Alien. And the animals tend to tame down once fed Jack Link's jerky. But there is certainly an Alien-ness feel to the whole set-up.

The ads:

An eagle pops out of the gurgling stomach of a female passenger on a delayed airplane.A wolf's head emerges from the stomach of a guy whose tummy grumbles during a business meeting.A puma's head pushes out of the stomach of a hungry college student while he is taking an exam.

In each case, a bite of Jack Link's Jerky quells the hunger and nudges the critters back where they came from. Realistic as the animal heads look, they're actually puppets.

"We're fully aware of Aliens, but we were very deliberate about not making the ads seem gross," says Kevin Papacek, director of marketing at Jack Link's. The notion of an angry, animal's head popping out of a gurgling stomach "is something anyone can relate to when their stomach growls."

One of the "Hangry Moments" series

The ad agency wanted no blood or guts flying around. "In a 30-second ad, you can sidestep the larger medical diagram of where this animal comes from," explains Marty Senn, executive creative director at the agency that created the campaign, Carmichael Lynch.

No, there are no plans for future ad knock-offs of Jaws, Psycho or The Exorcist.

Even then, with the long-time Jack Link's slogan, 'Feed your wild side,' says Papacek, "we feel like the possibilities are endless."

One of the "Hangry Moments" series.

Disney's Empire Strikes on All Fronts to Promote 'Star Wars VII'

disneyworld.disney.go.com We may be 19 months away from "Star Wars: Episode VII," but it's not too soon to start generating buzz. Director J.J. Abrams announced last week that the film's production crew is teaming up with UNICEF for a contest that will land someone a part in the movie. It's part of the Star Wars: Force for Change campaign that aims to raise funds and awareness for community-building projects in impoverished nations. However, for Disney (DIS) -- the family entertainment giant that paid $4 billion for Lucasfilm two years ago -- this is just another way to keep building interest for a movie that fans have been waiting for since 2005, when the last film came out. Disney wanted to have the new film out by next summer. The folks working on the film wanted to hold out until the summer of 2016 to get everything right. They split the difference. It's coming out on Dec. 18, 2015. It's a foregone conclusion that this will be the hit of the 2015 holiday season. Disney just wants to make sure that it's even bigger than that. Use the Force, Walt Disney has big plans for the Star Wars franchise, and it's apparent to anyone visiting Disney's Hollywood Studios in Florida these days. Celebrities and costumed characters converge for several weekends through June 15. Star Wars Weekends has been an annual event for years before the Lucasfilm acquisition. The park features the Star Wars-themed Star Tours attraction, and it's had a solid relationship with creator George Lucas before cutting him a big check. However, Disney is ramping it up. Character meals -- a staple at Disney's theme parks and resort hotels, where guests pay a premium to dine alongside Mickey Mouse and other characters -- have taken a Star Wars spin at Disney's Hollywood Studios. At the Star Wars Dine-In Galactic Breakfast at the Sci-Fi Dine-In Theater Restaurant, Darth Vader, stormtroopers and other iconic characters visit the dining cars. At night, Jedi Mickey's Star Wars Dine at Hollywood & Vine is hosted by Disney characters decked out in Star Wars garb. Mickey Mouse is Luke Skywalker. Goofy is Darth Vader. Minnie Mouse is Princess Leia, hair buns and all. The meals -- $48 for breakfast or $56 for dinner -- sold out quickly. One could say that patrons are hungry, but Disney's hungry for more. The Dark Side Disney isn't afraid to cut a big check to get its hands on endearing and enduring characters. It has negotiated 10-figure deals for Pixar, Marvel and now Lucasfilm. If you're the owner of a popular character-rich franchise, Disney wants to talk to you. The Pixar and Marvel deals have already paid for themselves by opening up Disney to computer-rendered characters and comic book superheroes. Disney can still create the occasional in-house hit. "Frozen" recently became the highest-grossing animated film of all time. However, the one Disney movie that it has yet to topple is Marvel's "The Avengers." Lucasfilm will be carved out into more than just the final three Star Wars movies. There is already chatter of spinning off secondary characters into their own franchises. Luke Skywalker may have been shocked to learn who his father was, but there's no denying who the parent company of Star Wars is these days. Disney's a well-oiled media empire that can elevate an entertainment brand higher across its TV networks (such as ABC and ESPN), theme parks, retail stores, and even cruise ships. More from Rick Aristotle Munarriz
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11 Retailers to Dump Now

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It has been an awful year for retail stocks, and there's no two ways about it.

First, we started the year with a spate of bad weather that depressed both hiring and spending trends. Then, after what seemed like a snap-back in March, we were greeted by a meager 0.1% rise in April retail sales according to the latest data.

And the icing on the cake has been the ugly earnings reports lately from retailers across the board, typically including crumbling sales and very negative forward guidance.

So, with a very gloomy narrative for a few months weighing on sentiment and a very gloomy forecast going forward, it's not surprising than many retail stocks have declined by double-digits or more year-to-date in 2014 even as the S&P 500 flirts with all-time highs.

So which retailers stink the worst? Here's a list of 11 dogs, and some data on stock performance and sales numbers to illustrate just how ugly things are:

Staples (SPLS)

Returns since 1/1/14: -28% vs. 3% gains for the S&P 500.
Returns since 1/1/11: -50% vs. 51% gains for the S&P 500.
Revenue Growth Last Year: -5% ($24.4 billion in FY13 to $23.1 billion for FY14)

If you want to find something good to say about Staples (SPLS), you could note that the company is comfortably profitable while some retailers aren't and that SPLS has a decent e-commerce engine. Staples.com is the #2 e-commerce player in the U.S., according to Internet Retailer data.

But the cons far outweigh the pros. The company has a painfully stagnant top line, share price has fallen like a rock and the company just announced plans to close another 225 underperforming stores.

Expect further pain for shareholders and right-sizing for this brick-and-mortar office supply store.

PetSmart (PETM)

Returns since 1/1/14: -24%
Returns since 1/1/11: +38%
Revenue Growth Last Year: 2% ($6.8 billion in FY13 to $6.9 billion for FY14)

PetSmart (PETM) isn't as ugly as some of these other big-box retailers in the long-term, with 38% returns in the last three years or so. But what little momentum PETM stock has had in recent years has evaporated in a hurry as revenue has stalled and pressure mounts.

PetSmart just posted weak Q1 numbers and slashed forward guidance in its May earnings report, causing the stock to tumble 5% in short order. Same-store sales declined, and the CEO admitted a "challenging" market is out there for the pet retailer going forward. That bodes very poorly for the future of PETM stock.

Dicks Sporting Goods (DKS)

Returns since 1/1/14: -25%
Returns since 1/1/11: +15%
Revenue Growth Last Year: 6% ($5.8 billion in FY13 to $6.2 billion for FY14)

Dicks Sporting Goods (DKS) is at least growing revenue modestly, which is better than some of the ugly stocks on this list.

On the other hand, that growth isn't enough to please Wall Street — as evidenced by the crash of 18% in Dicks stock right after its recent May earnings report. In addition to missing on profits and sales, the company dramatically moved its guidance lower.

Traders dumped shares, and a lot of firms including Morgan Stanley and Goldman Sachs downgraded the stock as a result, hinting that the worst is far from over.

American Eagle (AEO)

Returns since 1/1/14: -24%
Returns since 1/1/11: -24%
Revenue Growth Last Year: -4% ($3.5 billion in FY13 to $3.3 billion for FY14)

American Eagle Outfitters (AEO) is facing pressure on all sides. Americans still are pretty tightfisted with their discretionary income, mall traffic continues to decline thanks to e-commerce trends, and consumer tastes have moved away from the clothing retailer.

It all adds up to big declines for AEO stock, continued revenue shortfalls and a gloomy outlook for the forseeable future. No wonder AEO just announced it would be shuttering 150 locations in an effort to right the ship.

Abercrombie (ANF)

Returns since 1/1/14: +13%
Returns since 1/1/11: -35%
Revenue Growth Last Year: -9% ($4.5 billion in FY13 to $4.1 billion for FY14)

Abercrombie & Fitch (ANF) used to be at the top of the teen retail space. if you simply look at performance since January, you may be convinced the company is in the middle of a turnaround … but don't believe it.

Revenue declines have been steep in the last year, and the big reason for outperformance this year was a double-digit run in February after the company reported sales still slipped … but less than expected. Since then, Abercrombie has slowly given back part of those gains, and skeptical traders are still watching the company very closely. There's a chance ANF's comeback may be real … but given the secular pressures on every other retailer on this list, I highly doubt it.

Buckle (BKE)

Returns since 1/1/14: -15%
Returns since 1/1/11: +19%
Revenue Growth Last Year: flat ($1.1 billion for both FY13 and FY14)

The Buckle (BKE) is a smaller teen retailer, operating just 450 or locations and with a market value of about $2.1 billion. That doesn't leave a lot of room for error since it doesn't have the scale of some larger peers … and BKE stock has paid the price lately as a result.

In its most recent earnings report, The Buckle noted same-store sales declined 0.9%, and gross margins fell. With the already troubling long term trend of flatlining revenue, those disappointing metrics have only given investors one more reason to sell — and rightly so.

JCPenney (JCP)

Returns since 1/1/14: -2%
Returns since 1/1/11: -72%
Revenue Growth Last Year: -9% ($13.0 billion in FY13 to $11.9 billion for FY14)

What can you say about JCPenney (JCP) that the numbers don't already show? The stock has simply imploded since 2011, after former Apple (AAPL) retail guru Ron Johnson made changes that scared away customers in droves. Not only is revenue down 9% in the last year, but its down a staggering 33% since fiscal 2011!

Johnson was fired, but the bleeding has continued as the company continues to operate at a loss. There has been a small glimmer of hope lately, with a one-day pop of 25% on hopes that cost-cutting would succeed and revenue declines had finally bottomed … but the end of bad news is not the start of growth, so don't believe the turnaround hype just yet.

Sears (SHLD)

Returns since 1/1/14: -24%
Returns since 1/1/11: -45%
Revenue Growth Last Year: -9% ($39.8 billion in FY13 to $36.2 billion for FY14)

If you think it can't get worse than JC Penney, just check out Sears (SHLD) — a stock that has equally ugly performance in both the short-term and long-term, but without the glimmer of false hope.

Revenue is down 16% since fiscal 2011 and 9% year-over-year. The company is bleeding cash even faster than JCP. CEO Eddie Lampert is notorious for running Sears in a cutthroat fashion, intending to harvesting as much as possible from the retailer as quickly as he can, regardless of the long-term pain it creates.

You'd think such a philosophy would result in, you know, some kind of profits that could be harvested…. But if you own Sears stock these days, you know it hasn’t amounted to much.

Bed, Bath & Beyond (BBBY)

Returns since 1/1/14: -23%

Returns since 1/1/11: +23%

Revenue Growth Last Year: +5% ($10.9 billion in FY13 to $11.5 billion for FY14)

Bed, Bath & Beyond (BBBY) isn't all bad. The company has managed to squeak out modest revenue growth, and is seeing profits rise, too. And long-term returns, while they don't keep pace with the broader market, aren't as abysmal as other retailers on this list.

But when you look at recent trends, the pain could be just getting started at BBBY. Profits declined year-over-year in the company's fiscal fourth-quarter earnings report. Furthermore, the growth rates the company has enjoyed in past years have slowed dramatically as the rebound in home sales has also slowed.

If you believe that household formation or real estate transactions will snap back, then maybe take a flier on BBBY stock. But without those secular tailwinds then Bed, Bath and Beyond could remain under pressure for some time.

Target (TGT)

Returns since 1/1/14: -12%
Returns since 1/1/11: -7%
Revenue Growth Last Year: -1% ($73.3 billion in FY13 to $72.6 billion for FY14)

Target (TGT) stock is reeling in the short-term from the fallout of a very public data breach late last year that cost the company billions and broke consumer confidence in the retailer. But the issues at Target go much deeper than the loss of some customer info.

Take, for instance, the $1 billion loss attributable to disappointing Canadian operations and over-expansion there. Or consider the fact that longer-term, absent the recent privacy concerns, Target had already been pressured by stagnant top-line performance.

If there is a consumer-driven recovery in store for us soon, then perhaps Target can turn around. But given investor negativity and recent revenue trends, I wouldn't bet on it.

Best Buy (BBY)

Returns since 1/1/14: -32%
Returns since 1/1/11: -11%
Revenue Growth Last Year: -14% ($49.6 billion in FY13 to $42.4 billion for FY14)

Best Buy (BBY) got a lot of press in 2013 as a turnaround tale that investors loved, with roughly 245% returns on the year to make it one of the best stocks of 2013 among S&P components.

And while BBY stock is still up based on its pricing from early last year, you can't cherry pick just a 10-month window as proof that Best Buy is back. Long-term, the issue for BBY is the fact that revenue an margins are severely under pressure — and shares reflect this in a big way.

Sure, shares are rallying mildly after its most recent earnings report. However, the earnings "beat" is just a sucker's rally. Revenue fell for the ninth consecutive quarter, and headwinds remain fierce for the big-box electronics store in the age of e-commerce.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

PIMCO’s El-Erian: Don’t Get Too Excited About GDP Growth

Stronger than expected GDP growth in the second quarter rising to 2.5%; great news, right?

Not so fast, according to PIMCO chief Mohamed El-Erian. Emerging-market woes will create (that dreaded word) headwinds for the U.S. economy.

“Longer term, we should care due to the feedback loop to the U.S.,” El-Erian, chief executive and co-chief investment officer of the world’s biggest manager of bond funds, said in a radio interview with Bloomberg Surveillance on Thursday. “You will see a tightening of financial conditions to markets. You will see growth more challenged and the ability of U.S. companies to get topline growth from emerging markets is going to be less going forward.”

As the news service notes, global stocks, bonds and commodities have been whipsawed since May, when Federal Reserve Chairman Ben Bernanke signaled the prospect of cuts to monetary stimulus should the U.S. economy and job market continue to improve. The Fed will probably pare its $85 billion a month in bond purchases at its Sept. 17-18 meeting, according to 65% of economists surveyed by Bloomberg Aug. 9-13.

For many emerging nations “capital is reversing, flowing out and putting these countries under tremendous pressure,” El-Erian said. “There are certain countries that learned the lessons from the previous crisis and have self-insured tremendously. There are a second set of countries that maintained twin deficits, whose growth dynamics are low and have limited reserves. Turkey is an example of that, and there are others."

---

Check out PIMCO’s El-Erian: Forget Politicians—It’s the Fed That Matters on ThinkAdvisor.

Will the AutoZone (AZO) Earnings Report Drive Shares Higher? AAP, ORLY & PBY

The fiscal Q3 2014 earnings report for auto parts retailer stock AutoZone, Inc (NYSE: AZO), a peer of Advance Auto Parts, Inc (NYSE: AAP), O'Reilly Automotive Inc (NASDAQ: ORLY) and The Pep Boys - Manny, Moe & Jack (NYSE: PBY), is scheduled for before the market opens on Tuesday. Aside from the AutoZone earnings report, it should be said that Advance Auto Parts, Inc reported Q1 2014 earnings on May 15th (results were better than expected and they upped guidance); O'Reilly Automotive Inc reported Q1 2014 earnings on April 24th (results topped expectations); and The Pep Boys reported Q4 2013 earnings on April 15th and will report Q1 2014 earnings on June 10th (PBY reported a surprise loss as tire pricing negatively hit revenue). However and given the current uncertain economy that is keeping most consumers in their old cars, you would think that auto parts retailers in general would all be doing well.

What Should You Watch Out for With the AutoZone, Inc Earnings Report?

First, here is a quick recap of AutoZone's recent earnings history from Yahoo! Finance:

Earnings HistoryMay 13Aug 13Nov 13Feb 14

EPS Est	7.21	10.34	6.28	5.55
EPS Actual	7.27	10.42	6.29	5.63
Difference	0.06	0.08	0.01	0.08
Surprise %	0.80%	0.80%	0.20%	1.40%

 

In early March, AutoZone reported higher than expected quarterly sales and earnings, but shares fell because operating expenses rose 9% to about $700 million. AutoZone reported a 7.3% net sales increase to $2.0 billion, a domestic same store sales increase of 4.3% and a net income increase of 9.4% to $192.8 million. The Chairman/CEO commented:

"We are pleased to report our thirtieth consecutive quarter of double digit earnings per share growth. The credit for this accomplishment goes to our passionate and dedicated AutoZoners across the globe who always put our customers first! During our second quarter, much of the U.S. experienced extreme weather conditions, and those weather patterns accelerated our growth in certain failure related hard part categories while our deferrable maintenance categories were challenged. We are continuing to test a variety of initiatives focused on improving inventory availability. One of the key initiatives is in the implementation phase, and while it is very early, we are pleased with our progress to date. The other tests are ongoing and it will take several more quarters before we determine our next steps."

This time around and according to the Yahoo! Finance analyst estimates page, the consensus expects revenue of $2.33B and EPS of $8.44 – slightly down from the EPS consensus of $8.45 expected thirty days ago and up from the EPS consensus of $8.41 expected ninety days ago.

On the news front, it was reported Thursday that Cleveland Research sees AutoZone's Q3 comp sales trends and earnings are tracking ahead of consensus driven by DIY momentum and commercial business. For that reason, they raised their Q3 EPS estimate to $8.50 verses a consensus of $8.46 and FY14 to $31.58 verses a consensus of $31.52.

On Wednesday, it was reported that AutoZone June call option implied volatility is at 21, July is at 20, September is at 18 and December is at 17 verses a 26-week average of 19. This suggests slightly large near term price movement into the earnings report. 

What do the AutoZone, Inc Charts Say?

The latest technical chart for AutoZone does show a slight downward trend since last February:

And while The Pep Boys has given a rather flat performance since the end of the recession, AutoZone, Advance Auto Parts, Inc and O'Reilly Automotive Inc have all been giving investors a great performance:

On the techncial chart side, Advance Auto Parts, Inc has produced a multiple top, O'Reilly Automotive is in a slight downtrend and The Pep Boys appears stuck in reverse:

What Should Be Your Next Move?

Traders might want to take a closer look at the AutoZone options trading activities. However, I don't see any reason for long term investors to be nervous as AutoZone heads into earnings.

Rethink your finances and retirement risks

Maybe the best way to save for retirement is to actually start budgeting for a short bout of insecurity. Or lots of insecurity.

The looming pension cuts — on top of higher health care costs — facing City of Detroit retirees should give anyone reason to reconsider their retirement risks.

What would you do if you suddenly faced extra health care expenses of $400 or more a month? Or if you suddenly lost $600 a month, as some Detroit retirees faced by an annuity clawback will do, as the city works its way out of bankruptcy.

Sometimes, what looks like a healthy nest egg could easily be scrambled into an ugly mess.

To be sure, record highs for the Dow Jones industrial average in recent weeks make many consumers overall feel more comfortable about having enough money in retirement. Some people's confidence can rebound with stock prices.

About 18% of workers nationwide are now very confident, up from 13% in 2013, about having enough money for a comfortable retirement, according to a 2014 Retirement Confidence Survey released in March by the Employee Benefit Research Institute.

But here's the catch: The increased confidence was found almost exclusively among those with higher household income and strongly correlated with whether someone had a retirement plan or retirement savings.

Nearly half of workers without a retirement plan were not at all confident about their financial security in retirement.

Many workers had little or no savings for retirement.

Among workers providing savings data for the survey, about 36% said they had less than $1,000 in savings. Many of those households earned less than $35,000 a year in income.

Not having enough savings is only one side of the story.

Many seniors now also have more debt in their retirement years than they expected.

Older consumers are carrying more mortgage debt than they had in the past, according to data from the Consumer Financial Protection Bureau. Much of that mortgage debt is attributed ! to the refinancing boom — and the housing bust.

About 30% of homeowners age 65 and older carried a mortgage in 2011, the most recent data available. That's up from 22% in 2001.

For those ages 75 and older, the rate is 21.2%, up from 8.4% in 2001.

"A home can be a place of security for older Americans in their retirement years — a roof over their heads as well as a valuable asset," said Richard Cordray, director of the Consumer Financial Protection Bureau, in a statement.

"But as more seniors carry significant mortgages into retirement, they put themselves at risk of losing their nest eggs and their homes."

The median amount that older homeowners owed on their mortgages was $79,000 — up 82% from about $43,000 in 2001.

A dramatic drop in home values, and a slow climb back, cut into home equity and contributes to more financial insecurity, too. Older consumers can be at greater financial risk when they have built up less equity in their homes, which can be their primary or even only asset.

Delinquency and foreclosure are significant issues among a small group of older homeowners, according to the consumer watchdog group. Nearly 5% of homeowners ages 65 to 74 were seriously delinquent in paying their mortgages, meaning they were more than 90 days late or in foreclosure, in 2011. That's up from 0.85% in 2007.

What is clear is that it is not enough to simply create a bucket list of things to do in retirement. More of us need to re-examine our bills, spending habits and get a retirement rainy day fund. All too often, it does not work out as planned.

Obviously, it's tougher to get a job, overcome health issues and pay medical bills, as well as difficult to recover from an economic setback in retirement than when one is younger.

The consumer watchdog group suggested homeowners try to pay off the mortgage by retirement or early in retirement; avoid taking out a home equity loan or refinancing to dip into equity, and consider their expenses if they'! re retiri! ng with a mortgage.

The crisis in retirement confidence is very much part of the discussion, as 10,000 baby boomers are to reach retirement age each day for the next 17 years.

While many may discuss delaying retirement, the average American is still retiring at age 59, said Mark Hug, executive vice president of product and marketing at Prudential Insurance of America.

Feeling nervous and ill-prepared about retirement is a common theme across many groups, including women and the lesbian, gay, bisexual and transgender communities, he said.

The key is not to give into the fear. Try to form a your own plan of adjustment for retirement expenses.

Contact Susan Tompor at stompor@freepress.com

Cut your cooling costs by 30% or more

Having a technician service your central-air system every year or two could help you save up to 10% on your electric bills.

(Money Magazine) With electric rates predicted to climb 10% by summer, cranking up your air conditioner could cost you big this year. But that doesn't have to mean living in a sweat lodge.

Below, a few simple steps to trim your bill 30% or more.

SAVE UP TO 10%

Clear the condenser: Prune back shrubs and ground covers at least a foot away from your outdoor air-conditioning equipment, says Charles Cormany of Beanstalk Energy, a Sonoma, Calif., residential energy efficiency contractor. Then use a blower to remove leaves and debris from in and around the case for maximum airflow.

Get a checkup: Have a technician service your central-air system every year or two.

For $100 or $200, he'll charge the refrigerant, adjust the settings to maximize efficiency, and check the insulation on the coolant pipes, says David Kyle, owner of an AC service and installation company in Lorton, Va.

SAVE UP TO 20%

Replace filters: Install new filters at least twice a year, says Cormany. "Forget fancy, antimicrobial filters," he says. "Go for the cheapest."

They should cost less than $10 each. For window units, hand-wash and dry filters monthly.

  Installing a $3.2B thermostat

Plant a tree: You'll pay $200 to $500 to have a landscaper or nursery plant a 10-foot tree on the south or west side of your home (going leafless in winter lets you benefit from solar heat).

Tighten ducts: Hire an energy efficiency contractor to seal and insulate attic ducts, says Max Sherman of the Lawrence Berkeley National Laboratory. You'll spend $500 to $2,000.

SAVE UP TO 30%

Install ceiling fans: Not surprisingly, a breeze makes your home feel cooler. For about $200 to $600 each (including installation) you can hang ceiling fans in the rooms where you spend the most time, allowing you to turn down the AC by two degrees without any loss of comfort.

Upgrade: If your AC is more than 10 years old and you're in a hot climate, replacement will pay for itself quickly. Expect to spend $2,000 to! $10,000 for a new central-air system, says Kyle. Upgrading window units typically costs $100 to $300.

Beware: A high-BTU unit can jack up operating costs, with less effective results. Stick with about 20 BTUs per square foot.

Kodak spinoffs in major fight over microfilm

ROCHESTER, N.Y. -- We may live in a digital age, but online is not always the best place to store every piece of information.

Numerous publishers, libraries, museums and corporations keep archives on microfilm or microfiche. And a pair of Eastman Kodak Co. spinoffs are battling each in the business world — and in court — over a slice of that market.

Dallas-headquartered Eastman Park Micrographics Inc. is suing Kodak Alaris Inc. in New York state Supreme Court, alleging that Alaris is trying to pilfer EPM's customers in violation of an agreement between the two companies. EPM contracts with Alaris to provide the engineers needed to maintain and support its equipment in the United States and Canada.

The suit was filed last week in state Supreme Court in Monroe County — just days after Alaris bought EPM's business servicing equipment in Europe, Asia and Latin America. Financial details of that deal, which was effective April 30, were not made public. The two companies, in announcing the deal, said Alaris will continue to distribute EPM equipment and supplies in those markets.

Kodak sold its microfilm and microfiche business in 2011 to EPM, a company founded by former Kodak executive William Oates. While based in Dallas, EPM also operates out of Eastman Business Park in Rochester. Alaris is headquartered in the United Kingdom, but its principal location is also at Eastman Business Park.

Kodak continued to provide maintenance and support of equipment to EPM after the 2011 sale. And when Kodak's document imaging and personalized imaging businesses were sold in 2013, forming Kodak Alaris, Alaris then picked up the EPM service work.

But according to the suit, when EPM indicated to Alaris in December that it intended to end that service provider agreement in May 2014, Alaris began using confidential information to begin soliciting those customers, offering them deep discounts to jump ship. As part of the suit, EPM included Alaris brochures "that not only overtly solicit t! hose customers but also disparage EPM's ability to service those customers' micrographics equipment," the suit states.

EPM is seeking damages of upward of $1 million, plus a permanent injunction banning any further customer solicitation.

Alaris did not respond to a message seeking comment Monday.

Good news for Alibaba: Rival JD pops in IPO

JD Shares are off to a bullish start in their debut on the Nasdaq.

NEW YORK (CNNMoney) Shares in JD.com, a giant Chinese e-commerce company, surged more than 10% in their market debut Thursday. That appears to be a good sign for Alibaba, the online retailing leader often referred to as the eBay (EBAY, Fortune 500)and Amazon (AMZN, Fortune 500) of China.

The initial public offering of JD.com is the latest in a series of companies that are choosing to list in the United States. JD raised just under $1.8 billion in the stock sale. At its most recent price, the company was worth around $30 billion.

JD.com (JD) shares began trading on the Nasdaq Thursday under the ticker "JD" and priced at $19 a share. They were initially set to sell for between $16 and $18, demonstrating a high demand for the stock.

With just under 36 million active accounts and 212 million orders last year, the company said it had 45% of the Chinese direct retail market in a filing with the Securities and Exchange Commission. And while it draws comparisons to Amazon (AMZN, Fortune 500), JD.com is a far smaller company when compared to Amazon's $135.8 billion market cap.

But JD.com is the second-biggest Chinese online retailer behind Alibaba, whose shares are expected to debut in the U.S. sometime during the next few months. Alibaba could raise more than the $16 billion Facebook (FB, Fortune 500) raised in its IPO.

JD.com is the latest in a number of big Chinese tech IPOs this year. But several of them have fizzled after hot starts. Weibo (WB), the Twitter-like social media site owned by Sina (SINA), is down nearly 10% from where it began trading last month. Jumei International Holding (JMEI), a cosmetics website that debuted last week, is now barely above its IPO price.

Still, a quick look at JD.com's financials shows why investors were so excited Thursday. It had $6.8 billion in sales in 2012, nearly double what it was doing the year before. The first nine months of last year brought in $8 billion.

But the company isn't profitable. It lost $542 million in 2012, a bigger loss than in 2011. JD.com said it lost $343 million in the first three quarters of 2013.

Tencent, the large Chinese company which owns the popular WeChat messaging app and is considered a rival to Alibaba, has a 15% stake in JD.com. Prince Alwaleed of Saudi Arabia also owns a big chunk of shares. Both high-profile shareholders add to the appeal of JD.com.

Now investors have to sit back and wait for more details from Alibaba. It's still not clear what exchange it will list on, ! what its ticker symbol will be, what it will price its offering at or when it will begin trading. But if the reception for JD is any indication, demand should be very strong for the online empire created by Jack Ma. That could be good news for Yahoo (YHOO, Fortune 500) as well. It owns a more than 20% stake in Alibaba.

How Will This Downgrade Affect Keurig Green Mountain (GMCR) Stock?

NEW YORK (TheStreet) -- Shares of Keurig Green Mountain Inc.  (GMCR) were downgraded to "neutral" from "buy" at Roth Capital which maintained its price target of $120.00.

The stock is down -1.18% to $112.46 in pre-market trade.

Must Read: Warren Buffett's 25 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Separately, TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate KEURIG GREEN MOUNTAIN INC (GMCR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: GMCR's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share. GMCR's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.84, which clearly demonstrates the ability to cover short-term cash needs. KEURIG GREEN MOUNTAIN INC has improved earnings per share by 18.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KEURIG GREEN MOUNTAIN INC increased its bottom line by earning $3.16 versus $2.28 in the prior year. This year, the market expects an improvement in earnings ($3.74 versus $3.16). 47.54% is the gross profit margin for KEURIG GREEN MOUNTAIN INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.69% is above that of the industry average. Net operating cash flow has increased to $320.94 million or 19.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.80%. You can view the full analysis from the report here: GMCR Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

General Motors: Recalls ‘Have Not Hurt, Could Even Help,’ JPMorgan Says

Yesterday, RBC’s Joseph Spak worried that General Motors’ (GM) latest recall would dampen enthusiasm for the automaker’s shares. JPMorgan’s Ryan Brinkman and team look at the bright side:

Getty Images

Thus far, it appears recalls have not hurt – and could even help – GM sales and market share. GM gained retail share y/y in March and was the greatest sequential gainer in April. In 1Q, GM announced recalls impacting 7 mn vehicles at a cost of $1.3 bn (or ~$186 per potential customer traffic). This compares to Thursday's recalls impacting 3 mn vehicles at a cost of $0.2 bn (or ~$67 per customer) and GM's recent marketing campaign promising $100 for test-driving a Cadillac.

Investors are having none of it today. Shares of General Motors have dropped 0.8% to $34.10 at 1:50 p.m. today, even as Ford Motor (F) has gained 0.7% to $15.80.

Entrepreneurs in 4 cities have chance at $100K…

CINCINNATI — AOL founder and venture capitalist Steve Case is on the road — again — this time promising winners of his tech start-up tour in four cities that his company will invest $100,000 each in their small businesses.

But that's not all: The entrepreneurs also will receive an all-expense paid trip to Washington to pitch their ideas to his company, Revolution venture capital, meet other investors and get the chance to raise even more money.

The four-cities-in-four-days tour — Detroit on June 24, Pittsburgh on June 25, Cincinnati on June 26 and Nashville on June 27 — is part of Case's Rise of the Rest initiative, in which he seeks out promising start-ups beyond California's Silicon Valley. He started the program in October 2012.

"Sixty years ago, for example, Detroit was essentially what Silicon Valley is today," Case said in a January interview with Silicon Valley Business Journal. "It was the most vibrant entrepreneurial region in the country, arguably in the world. The technology of the day was the automobile and it was on fire, growing like crazy."

Detroit is bankrupt now because it lost what he calls its "entrepreneurial mojo."

2014: Steve Case says Web to hit '3rd phase'
2013: Steve Case on best management advice he's ever received

"But the good news on Detroit, and I think it is true in some of these other regions, is it is fighting its way back," Case said then. "We actually believe in 2014 for the first time ever (that) venture investments east of the Mississippi will be greater than venture investments in Silicon Valley."

Case considers start-ups one way to jump-start the economy, and his Revolution venture capital firm already has made major commitments to more than 30 companies including Flexcar, which merged with Zipcar; Gaiam, known for its yoga and fitness equipment; CustomInk online T-shirt design; LivingSocial daily deals website; and SweetGreen organic made-to-order, fast-food salads.

We will work hard to make sure Steve (C! ase) leaves Ohio knowing that he has no choice but to come back again.

Rob McDonald, Cincinnati

Case will be part of a panel in each city that evaluates eight to 10 start-ups during a 90-minute pitch competition.

Before the pitch session, Case will be talking about entrepreneurship and the local start-up community; afterward is a reception. In his brief time in the cities, he also plans to meet with business leaders and spend time at some high-growth companies.

"Being selected as one of the four stops on the tour is evidence of the great progress we have made over the last five years," said Rob McDonald, a lawyer in Cincinnati and co-founder of The Brandery marketing and branding accelerator here. "We will work hard to make sure Steve leaves Ohio knowing that he has no choice but to come back again."

Another of Case's titles is chairman of the Startup America Partnership, a privately financed network of 32 communities across the USA dedicated to nurturing local companies in their infancy.

That venture, in conjunction with the White House's Startup America initiative, is different from a business incubator or accelerator, in part because it has no buildings, but local entrepreneurs, investors, mentors and other executives are working together to help young companies grow and often incubators and accelerators are part of that team. The Startup America Partnership does not make financial investments in start-ups.

But Case is making deals: He already announced earlier this year at the first-ever Google for Entrepreneurs Demo Day that he is investing $1 million, $100,000 each for 10 start-ups in seven cities.

His 17-year-old Case Foundation invests in companies and organizations that create both a financial return and societal change, what the foundation calls "doing well by doing good."

Steve Case gives his take on "the rise of the rest," crowdfunding, & new immigration policies for entrepreneurs. Interview was filmed at Tech Cocktail's SXSW Startup Celebration sponsored by CEA & .CO. Video series sponsored by Yappem & #KeepAmerica

Case's April investments

• Chicago. MarkITx is an online exchange for buying and selling businesses' used and refurbished information technology hardware. WeDeliver offers trackable, same-day delivery of goods, at the moment in six Chicago neighborhoods.

• Denver.GoSpotCheck allows teams to use smartphones and tablets to collect and analyze data from retail stores.

• Detroit.iRule converts a mobile device into a universal remote control to manage audio-visual systems, dim the lights, close the drapes and even turn on the gas fireplace.

• Durham, N.C. Automated Insights' system analyzes a company's data, writing reports in plain English. Windsor Circle helps online retailers with automated customer loyalty programs by using a retailer's own data about the customer.

• Minneapolis.Docalytics analyzes how potential customers interact with a company's downloadable sales and marketing content. Kidizen is an online marketplace to buy and sell kids' used clothes, toys and other items that children outgrow.

• Nashville.InvisionHeart's password-protected software allows doctors to view electrocardiograms and other time-sensitive cardiac data on smartphones and tablets.

• Waterloo, Ontario. MOJIO connects your car built after 1995 to the Internet; its smartphone apps give you information about the vehicle in real time, keep you connected in your car and potentially keep your teenager disconnected.

Tesla Motors: Yes We Can

Shares of Tesla Motors (TSLA) have dropped 4.6% this month, as investors expressed disappointment over the upstart automaker’s earnings. That drop, says Morgan Stanley’s Adam Jonas and team, has revived what they call the bear case in the stock, as investors fret about Tesla’s giga factory, profit margins and distribution, among other issues.

Associated Press

Jonas has a few words for Tesla bears who say “it can’t be done.” Not only has Tesla “been doing it,” its been “doing it pretty well, actually.” Jonas offers a few examples where Tesla is doing it right:

Distribution. "The dealer lobby is too powerful." Yet the CEO of the America's largest dealer group spoke publicly in support of Tesla's captive strategy. Now the FTC has voiced concerns that state laws prohibiting Tesla's stores may be harmful to competition.

25% Gross Margin. "They'll never do it." Not only did Tesla do a 25% margin in each of the past 2 qtrs, but it achieved a 100% variable gross margin YoY in 1Q. Tesla targets a 28% gross margin by 4Q. Nearly there.

Gigafactory. "You mean giggle-factory? Economies of scale don't exist with batteries." If Panasonic signs up to support Tesla's vertical integration of battery manufacturing at 10x scale, one would have to wonder how Tesla could possibly convince them to do such a thing.

Shares of Tesla have gained 1.2% to $194.48 today, all the more surprising considering that the S&P 500 has dropped 0.2% today, while General Motors (GM) has fallen 1.1% to $33.87 and Ford Motor (F) has dipped 0.1% to $15.90.

Hot Biotech Stocks To Buy For 2015

Four months ago, you could barely give your shares of ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) away. The company announced s on Tuesday, March 26th, that its sarcoma drug Palifosfamide had failed to meet its Phase 3 goals. Shares of ZIOP plunged from $5.13 to $1.82 in a mere day, and were trading as low as $1.51 a week and a half later.

For many traders, that big post-drug-failure selloff would be enough to mentally put ZIOP on the shelf and never consider it again. Veteran traders, however (and biotech traders in particular), will know that most investors often have a tendency to over-react and overdo things. That's almost always a temporary situation though; stocks generally recover from such drubbings. That rebound is often a trade-worthy move too. In fact, ZIOPHARM Oncology is falling right in line with that norm.

Hot Biotech Stocks To Buy For 2015: NeoStem Inc (NBS)

NeoStem, Inc., incorporated on September 18, 1980, operates in cellular therapy industry. Cellular therapy addresses the process by which new cells are introduced into a tissue to prevent or treat disease, or regenerate damaged or aged tissue, and consists of a separate therapeutic technology platform in addition to pharmaceuticals, biologics and medical devices. The Company�� business model includes the development of novel cell therapy products, as well as operating a contract development and manufacturing organization (CDMO) providing services to others in the regenerative medicine industry. Progenitor Cell Therapy, LLC, the Company�� wholly owned subsidiary (PCT), is a CDMO in the cellular therapy industry. PCT has provided pre-clinical and clinical current Good Manufacturing Practice (cGMP) development and manufacturing services to over 100 clients advancing regenerative medicine product candidates through rigorous quality standards all the way through to human testing.

PCT has two cGMP, cell therapy research, development, and manufacturing facilities in New Jersey and California, serving the cell therapy community with integrated and regulatory compliant distribution capabilities. Its core competencies in the cellular therapy industry include manufacturing of cell therapy-based products, product and process development, cell and tissue processing, regulatory support, storage, distribution and delivery and consulting services. The Company�� wholly-owned subsidiary, Amorcyte, LLC (Amorcyte) is developing its own cell therapy, AMR-001, for the treatment of cardiovascular disease. AMR-001 represents its clinically advanced therapeutic product candidate and enrollment for its Phase II PreSERVE clinical trial to investigate AMR-001's safety and efficacy in preserving heart function after a heart attack in a particular type of post Acute Myocardial Infarction (AMI) patients.

Through the Company�� subsidiary, Athelos Corporation (Athelos), the Company is collaborating w! ith Becton-Dickinson in early stage clinical development of a therapy utilizing T-cells, collaborating for autoimmune and inflammatory conditions, including but not limited to, graft vs. host disease, type 1 diabetes, steroid resistant asthma, lupus, multiple sclerosis and solid organ transplant rejection. The Company�� pre-clinical assets include its Very Small Embryonic Like (VSEL) Technology platform. The Company has basic research and development capabilities, manufacturing facilities on both the east and west coast of the United States.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Neostem (NBS), engages in the development of proprietary cell therapy products. This stock has been hit hard by the sellers during the last three months, with shares off by 22%.

  If you take a look at the chart for Neostem, you'll notice that this stock has recently spiked higher back above both its 50-day moving average at $6.41 and its 200-day moving average of $6.60 a share. This move has also pushed shares of NBS back above some near-term overhead resistance levels at $6.57 to $6.98 a share. That move is quickly pushing NBS within range of triggering another breakout trade above some key near-term overhead resistance.

  Market players should now look for long-biased trades in NBS if it manages to break out above some near-term overhead resistance at $7.22 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action 327,514 shares. If that breakout triggers soon, then NBS will set up to re-fill some of its previous gap down zone from October that started just above $8 a share. If that that gap gets filled with volume, then NBS could easily tag its next major overhead resistance levels at $9 to $9.50 a share, or even its 52-week high at $9.89 a share.

  Traders can look to buy NBS off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $6.41 a share, or near more support at $6 a share. One can also buy NBS off strength once it takes out $7.22 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Hot Biotech Stocks To Buy For 2015: Insys Therapeutics Inc (INSY)

Insys Therapeutics, Inc., incorporated on June 15, 1990, is a pharmaceutical company that develops and seeks to commercialize pharmaceutical products that target the unmet needs of cancer patients, with an initial focus on cancer-supportive care. The Company�� pharmaceuticals portfolio consists of one approved product and a number of product candidates targeting cancer-supportive care and cancer therapy. The Company�� product candidate includes Subsys, Dronabinol SG Capsule, Dronabinol RT Capsule, Dronabinol Oral Solution, Dronabinol Inhalation Device, and Dronabinol IV Solution. The Company is also developing cancer therapeutics, which is LEP-ETU, a formulation of paclitaxel, the active ingredient in the cancer drugs Taxol and Abraxane. On August 19, 2011, the Food & Drug Administration (FDA) approved its Dronabinol SG Capsule product, a generic equivalent to Marinol, for the treatment of chemotherapy induced nausea and vomiting (CINV), and anorexia associated with weight loss in patients with acquired immune deficiency syndrome (AIDS).

Subsys

The Company's Subsys is a single-use product that delivers fentanyl, an opioid analgesic, in seconds for transmucosal absorption underneath the tongue. Subsys is a transmucosal product to show pain relief when measuring the sum of pain intensity difference at five minutes in a Phase 3 breakthrough cancer pain (BTCP) clinical trial using fentanyl.

Dronabinol Product Family

The Company has an approved dronabinol product and is developing several dronabinol product candidates for the treatment of CINV and appetite stimulation in patients with AIDS, as well as other indications where dronabinol could have potential therapeutic benefits. Dronabinol, the active ingredient in Marinol, is a synthetic cannabinoid whose chemical name is delta-9-tetrahydrocannabinol (THC). Its portfolio consists of its Dronabinol SG Capsule product and Dronabinol RT Capsule product candidate, which are intended to be generic equi! valents to Marinol, in addition to three formulations, including Dronabinol Oral Solution. Dronabinol SG Capsule is a dronabinol soft gelatin capsule intended to be a generic equivalent to Marinol. Dronabinol RT Capsule is a dronabinol soft gel capsule that is stable at room temperature. Dronabinol Oral Solution is a ynthetic THC in an oral liquid formulation.

Cancer Therapeutics

In addition to its cancer-supportive care products, the Company intends to develop cancer therapeutics targeting limitations of existing commercial products. LEP-ETU, it advanced cancer therapeutic, is a NeoLipid liposomal, or microscopic membrane-like structure created from lipids, formulation that incorporates paclitaxel. LEP-ETU completed a Phase 2 clinical trial of 70 patients with metastatic breast cancer.

The Company competes with Cephalon, Inc., BioDelivery Sciences International, Inc., ProStrakan Group plc, Nycomed International Management GmbH, Archimedes Pharma Ltd., TEVA Pharmaceuticals USA, Watson Pharmaceuticals, Inc., AcelRx Pharmaceuticals, Inc., Akela Pharma Inc., Abbott Laboratories, Pharmaceutical International, Inc., Par Pharmaceutical Companies Inc., sanofi-aventis, Eisai Inc., Helsinn Group, Roche Holding AG, Par Pharmaceutical Companies Inc., GlaxoSmithKline plc, ProStrakan Group plc, Merck & Co, GW Pharmaceutical, A.P. Pharma, Inc., Aphios Corp., Roche Holding, Tesaro, Inc., Cornerstone Pharmaceutical, Inc., Bristol-Myers Squibb, Celgene Corporation, Laboratories, Amgen Inc., AstraZeneca PLC., Bayer AG, Biogen Idec Inc., Eisai Co., Ltd., F. Hoffmann- LaRoche Ltd., Johnson and Johnson, Merck and Co., Inc., Novartis AG, Onyx Pharmaceuticals Inc., Pfizer Inc., and Takeda Pharmaceutical Co. Ltd.

Advisors' Opinion:

• [By Traders Reserve]

  For example at the end of August, I found a little stock called INSYS Therapeutics (INSY) The company showed up as a top-rated stock using a stock-rating system based on something I call the P/E Gap ��the difference between a stock�� P/E ratio and its expected profit growth rate.

• [By Chris Preston]

  INSYS Therapeutics (INSY) is one recent IPO that jumps out. The Arizona-based pharmaceutical company markets a synthetic marijuana drug to treat cancer pain. It went public in May at $8 per share. It opened at over $46 per share.

• [By David Zeiler]

  2. Insys Therapeutics Inc. (Nasdaq: INSY): Insys is a biotech seeking to capitalize on the growing interest in medical marijuana by using a generic form of THC to create drugs to treat cancer pain. INSY had its IPO May 2 with an offer price of $8 a share. The stock rose 19.75% on its first day of trading. But investors really warmed up to Insys later; it currently trades at about $37.54, a 369.25% increase over the offer price.

• [By Jake L'Ecuyer]

  INSYS Therapeutics (NASDAQ: INSY) was also down, falling 15.14 percent to $27.73 after news broke that a doctor had fraudulently prescribed its drug Subsys.

Best European Stocks To Watch Right Now: Synergy Pharmaceuticals Inc (SGYP)

Synergy Pharmaceuticals, Inc., incorporated on February 11, 1992, is a biopharmaceutical company focused primarily on the development of drugs to treat gastrointestinal (GI), disorders and diseases. The Company�� lead product candidate is plecanatide, a guanylyl cyclase C (GC-C), receptor agonist, to treat GI disorders, primarily chronic constipation (CC), and constipation-predominant-irritable bowel syndrome (IBS-C). It is also developing SP-333, the second generation GC-C receptor agonist for the treatment of gastrointestinal inflammatory diseases, such as ulcerative colitis (UC). The Company�� active pharmaceutical ingredients (APIs) and the final formulated drug products are manufactured for it by third party contractors.

As of December 31, 2011, the Company was developing plecanatide, a synthetic hexadecapeptide designed to mimic the actions of the GI hormone uroguanylin, for the treatment of CC and IBS-C. Plecanatide is an agonist of GC-C receptor. As of December 31, 2011, the Company was dosing patients in an 800-patient Phase II/III clinical trial of plecanatide to treat. It is also developing a second generation GC-C receptor analog, SP-333, which is in pre-clinical development for the treatment of gastrointestinal inflammatory diseases. SP-333 is a synthetic analog of uroguanylin, a natriuretic hormone.

The Company competes with Ironwood Pharmaceuticals, Inc., Forest Laboratories, Inc., Takeda Pharmaceuticals America, Inc., Sucampo Pharmaceuticals, Inc., Salix Pharmaceuticals, Inc. and Shire Plc.

Advisors' Opinion:

• [By Monica Gerson]

  Breaking news

  Time Warner Cable (NYSE: TWC) reported a drop in its third-quarter profit. Time Warner Cable's quarterly profit fell to $532 million, or $1.84 per share, from $808 million, or $2.60 per share, in the year-ago period. To read the full news, click here. Synergy Pharmaceuticals (NASDAQ: SGYP) today announced the start of a phase 2 clinical trial to evaluate the safety and efficacy of SP-333, its second-generation GC-C agonist and once-daily oral treatment, in adult patients with opioid-induced constipation (OIC). To read the full news, click here. Cigna (NYSE: CI) reported a 19% rise in its third-quarter earnings and lifted its full-year earnings outlook. To read the full news, click here. Charm Communications (NASDAQ: CHRM) announced today that the special committee of the Company's board of directors, consisting of independent directors Mr. Zhan Wang, Mr. Andrew J. Rickards and Mr. Gang Chen, has retained China Renaissance Securities (Hong Kong) Limited as its financial advisor and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP as its legal advisor. To read the full news, click here.

  Posted-In: Bank of America US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets

Hot Biotech Stocks To Buy For 2015: Epizyme Inc (EPZM)

Epizyme, Inc., incorporated on November 1, 2007, is a clinical stage biopharmaceutical company that discovers, develops and plans to commercialize personalized therapeutics for patients with genetically defined cancers. The Company systematically identify the genetic alterations that create cancer causing genes, called oncogenes, select patients in whom the identified genetic alteration is found and then design small molecule therapeutics to inhibit the oncogene. The clinical development plan for each of its product candidates is directed towards patients with a particular genetically defined cancer.The Company is conducting a Phase I clinical trial of its advanced product candidate, EPZ-5676, an inhibitor targeting the DOT1L HMT, for the treatment of mixed lineage leukemia (MLL-r). The Company has identified its two lead product candidates using its product platform.

EPZ-5676-DOT1L Inhibitor

EPZ-5676 is an intravenously administered small molecule inhibitor of DOT1L. The Company is developing EPZ-5676 for the treatment of MLL-r, an aggressive subtype of the two most common forms of acute leukemia, ALL and AML. Patients with MLL-r are routinely diagnosed with existing technologies that are commonly used in clinical setting. The Company�� Phase 1 clinical trial of EPZ-5676 is an open label, multicenter trial that has two phases.

EPZ-6438-EZH2 Inhibitor

The Company is developing EPZ-6438 as an orally available small molecule inhibitor of EZH2 for the treatment of non-Hodgkin lymphoma patients who have an oncogenic point mutation in EZH2. EZH2 is an HMT that can become oncogenic and cause non-Hodgkin lymphoma and a range of other solid tumors. Two types of non-Hodgkin lymphoma, diffuse large B-cell lymphoma of germinal-center origin, or DLBCL, and follicular lymphoma, or FL, are particularly associated with an EZH2 point mutation. There are no therapies approved specifically for the treatment of cancer associated with an EZH2 point mutation.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Epizyme (NASDAQ: EPZM) shot up 54.63 percent to $31.70 after the company reported two major milestone achievements. It announced the achievement of a proof of concept milestone in the EPZ-5676 DOT1L inhibitor clinical program.

• [By Laura Brodbeck]

  Friday

  Earnings Expected From: Epizyme (NASDAQ: EPZM), Dyax Corp (NASDAQ: DYAX) Economic Releases Expected: ��German GDP, German business climate index, Italian retail sales.

  Get all the #premarket info by listening in to Benzinga's morning show at 8:00 am EST Monday-Friday!

Hot Biotech Stocks To Buy For 2015: Tauriga Sciences Inc (TAUG)

Tauriga Sciences, Inc., formerly Immunovative, Inc., incorporated on April 18, 2001, is a development-stage company. The Company along with Constellation Diagnostics, Inc. (Constellation) focuses on establishing a joint venture partnership to develop and commercialize a imaging-based diagnostic technology for use in predictive and preventative oncology.

The Company has rights to commercialize AlloStim and AlloVax. As of March 31, 2013 the Company did not have any revenues.

Advisors' Opinion:

• [By Peter Graham]

  Small cap health care or personal care stocks Axxess Pharma Inc (OTCMKTS: AXXE), Radiant Creations Group Inc (OTCBB: RCGP) and Tauriga Sciences Inc (OTCMKTS: TAUG) have recently been attracting attention in various investment newsletters or in investor alerts. Some of the attention may have to do with paid promotions that two of these small caps have been the subject of. So how healthy are these three small cap health care or personal care orientated stocks? Here is a checkup:

Hot Biotech Stocks To Buy For 2015: Sucampo Pharmaceuticals Inc (SCMP)

Sucampo Pharmaceuticals, Inc., incorporated on December 9, 2008, is a global biopharmaceutical company focused on research, discovery, development and commercialization of drugs based on ion channel activators known as prostones. The Company�� prostone-based compounds target the ClC-2 and big potassium (BK), ion channels. It is focused on developing prostones to treat gastrointestinal, ophthalmic, neurologic, and oncology-based inflammatory disorders, and is also considering other therapeutic applications of its drug technology. The Company�� products include AMITIZA (lubiprostone) and RESCULA (unoprostone isopropyl).

AMITIZA

The Company�� AMITIZA is being marketed in the United States for three gastrointestinal indications under a license agreement, or the Takeda Agreement, with Takeda Pharmaceutical Company Limited, or Takeda. The three gastrointestinal indications include chronic idiopathic constipation (CIC), in adults, irritable bowel syndrome with constipation (IBS-C), in adult women, and opioid-induced constipation (OIC), in adult patients with chronic, non-cancer pain. AMITIZA for OIC received approval from the United States Food and Drug Administration (FDA), in April 2013. In Japan, AMITIZA is marketed under a license, commercialization and supply agreement, or the Abbott Agreement, with Abbott Japan Co. Ltd. (Abbott), for the gastrointestinal indication of chronic constipation (CC), excluding constipation caused by organic diseases. In Switzerland, the Company is marketing AMITIZA.

RESCULA

The Company holds license agreements for RESCULA in the United States and Canada and the rest of the world, with the exception of Japan, Korea, Taiwan and the People�� Republic of China. The Company is commercializing RESCULA (unoprostone isopropyl ophthalmic solution) 0.15% for the lowering of intraocular pressure (IOP), in patients with open-angle glaucoma or ocular hypertension in the United States. RESCULA may be used as an agent or concomit! antly with other topical ophthalmic drug products to lower intraocular pressure. RESCULA is a BK channel activator and has a different mechanism of action than other IOP lowering agents on the market.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 stock that's starting to trend within range of triggering a major breakout trade is Sucampo Pharmaceuticals (SCMP), which is engaged in the discovery, development and commercialization of proprietary drugs based on prostones, and other novel drug technologies. This stock is off to a decent start in 2013, with shares up by 26%.

  If you take a look at the chart for Sucampo Pharmaceuticals, you'll notice that this stock has been downtrending badly for the last four months, with shares dumping hard from its high of $10.48 to its recent low of $5.40 a share. During that downtrend, shares of SCMP have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the downside volatility for SCMP looks to be over in the short-term since the stock has started to reverse its downtrend and enter an uptrend. That reverse is quickly pushing shares of SCMP within range of triggering a major breakout trade above a key downtrend line.

  Traders should now look for long-biased trades in SCMP if it manages to break out above some near-term overhead resistance levels at $6.33 to $6.66 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 115,383 shares. If that breakout triggers soon, then SCMP will set up to re-test or possibly take out its next major overhead resistance levels at $7.09 to $7.67 a share. Any high-volume move above those levels will then give SCMP a chance to tag $8 to $9 a share.

  Traders can look to buy SCMP off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $5.58 to $5.40 a share. One can also buy SCMP off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By James Brumley]

  Still, for the nimble who know when to get out, OREX is one of the few cheap stocks worth a closer look.

  Sucampo Pharmaceuticals (SCMP)

  Finally, though the price of $7.60 clearly qualifies it as one pf the cheapest of the cheap stocks out there in the pharmaceutical world, that’s not the reason Sucampo Pharmaceuticals (SCMP) may be worth a look here. It’s the 30% slide we’ve seen SCMP stock suffer since peaking in mid-January. It’s not a pullback that’s bound to go unchallenged by the bulls.

Hot Biotech Stocks To Buy For 2015: Oramed Pharmaceuticals Inc (ORMP)

Oramed Pharmaceuticals Inc., incorporated on March 10, 2011, is a development-stage pharmaceutical company. The Company is engaged in the research and development of pharmaceutical solutions, including an orally ingestible insulin capsule or tablet to be used for the treatment of individuals with diabetes, use of orally ingestible capsules, tablets or pills for delivery of other polypeptides. The Company owns oral dosage form drug portfolio, it is, on an on-going basis, considering in-licensing and other means of obtaining additional technologies to complement and/or expand the product portfolio. The Company�� products include ORMD-0801 - Oral Insulin Capsule and ORMD-0901 - Oral Exenatide.

The Company focuses to conduct research and development on the technology covered by the patent application Methods and Composition for Oral Administration of Proteins. Through its research and development efforts, it focuses to develop an oral dosage form that will withstand the chemical environment of the stomach and intestines and will be effective in delivering active insulin for the treatment of diabetes. It intends to conduct the clinical trials to file an Investigational New Drug (IND), application with the United States Food and Drug Administration (FDA). It also focuses to conduct research and development by deploying its drug delivery technology for the delivery of other polypeptides in addition to insulin, and to develop other pharmaceutical products.

Advisors' Opinion:

• [By Ben Levisohn]

  Oramed Pharmaceuticals (ORMP) has dropped 19% to $12.11 after the company said it would sell nearly 1.6 million shares of stock for $10 a share.

  BP plc (BP) has fallen 0.7% to $47.24 after a U.S. judge refused its request to revise the way damages from the Deepwater Horizon oil spill are calculated.

• [By Lisa Levin]

  Oramed Pharmaceuticals (NASDAQ: ORMP) shares moved up 15.68% to $17.85. The volume of Oramed Pharmaceuticals shares traded was 971% higher than normal. Oramed received patent allowance in Israel, Australia for platform technology in oral delivery of proteins.

Hot Biotech Stocks To Buy For 2015: Cannabis Science Inc (CBIS)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Advisors' Opinion:

• [By John Udovich]

  Small cap marijuana stocks Medical Marijuana Inc (OTCMKTS: MJNA), Cannabis Science Inc (OTCMKTS: CBIS), Medbox Inc (OTCMKTS: MDBX), Growlife Inc (OTCBB: PHOT) and HEMP, Inc (OTCMKTS: HEMP) were all surging by double digits yesterday thanks in part to legal sales of pot beginning in Colorado.

Hot Biotech Stocks To Buy For 2015: Rosetta Genomics Ltd (ROSG)

Rosetta Genomics Ltd., incorporated on March 9, 2000, is seeking to develop and commercialize diagnostic tests based on discovered group of genes known as microRNAs. The Company has established a clinical laboratory improvement amendment (CLIA)-certified laboratory in Philadelphia, which enables it to develop, validate and commercialize its own diagnostic tests applying its microRNA technology. In July 2011, the Company launched its fifth product - miRview lung. As of December 31, 2011, the Company launched five tests based on its five microRNA technologies: miRview mets; miRview mets2; miRview squamous; miRview meso, and miRview lung.

Rimonim Consortium

In January 2011, the Company joined the Rimonim Consortium, which is supported by the Office of the Chief Scientist at the Ministry of Industry, Trade and Labor of the State of Israel, or the OCS. The purpose of the consortium is to develop RNA interference, or RNAi, -based therapeutics.

Rosetta Green

Rosetta Green Ltd. is an Israeli subsidiary of the Company, which was established to leverage its capabilities into the areas of cleantech and plant biotech by using its microRNA technologies to develop plants and algae more suitable for various applications, such as feedstocks for biofuels and agriculture. Research at the Rosetta Green project has been shown to develop algal strains with oil content, to discover potential novel microRNAs from commercially-important algae and to identify drought-regulated microRNAs in plants.

The Company competes with Pathwork Diagnostics, Inc., Biotheranostics, Inc., Combimatrix Corporation, Alnylam Pharmaceuticals, Inc., Asuragen Inc., Exiqon A/S, Life Technologies Corporation, Isis Pharmaceuticals, Merck & Co., Inc., Santaris Pharma A/S, and Regulus Therapeutics.

Advisors' Opinion:

• [By Peter Graham]

  The Q3 2014 earnings report for molecular diagnostic company Myriad Genetics, Inc (NASDAQ: MYGN) is due out after the market closes on Tuesday and things could get ugly since unlike potential diagnostic stock peers such as Rosetta Genomics Ltd (NASDAQ: ROSG) and mid cap diagnostic stock Quest Diagnostics Inc (NYSE: DGX), it�� the most shorted stock on the Nasdaq with short interest of 52.07%. Aside from the Myriad Genetics earnings report, it should be said that Rosetta Genomics Ltd last reported earnings on March 31st and those�earnings were for the full year 2013 while�Quest Diagnostics reported Q1 2014 earnings on April 24th that were a disappointment due to restructuring costs and harsh winter weather. However, Myriad Genetics has been the more interesting stock as Medicare reimbursement rate increases and the lost of a court bid to block competition while a patent-infringement case is pending have sent its shares all over the place.

• [By John Udovich]

  On Tuesday, small cap cancer diagnostic stock Myriad Genetics, Inc (NASDAQ: MYGN) jumped 11.42% in one day, meaning its worth taking a closer look at the stock along with the performance of small cap cancer diagnostic stocks like Rosetta Genomics Ltd (NASDAQ: ROSG) and�Genomic Health, Inc (NASDAQ: GHDX) plus mid cap diagnostic stock Quest Diagnostics Inc (NYSE: DGX). I should mention that we have had�Myriad Genetics in our SmallCap Network Elite Opportunity (SCN EO) portfolio since February 5th and we are already up 18.50%���a nice return in just two weeks time.

Hot Biotech Stocks To Buy For 2015: Cellular Dynamics International Inc (ICEL)

Cellular Dynamics International, Inc., incorporated on November 16, 2007, develops and manufactures fully functioning human cells in industrial quantities to precise specifications. The Company�� iCell Operating System (iCell O/S) includes true human cells in multiple cell types (iCell products), human induced pluripotent stem cells (iPSCs) and custom iPSCs and iCell products (MyCell products). Customers use its iCell O/S products, among other purposes, for drug discovery and screening; to test the safety and efficacy of their small molecule and biologic drug candidates; for stem cell banking; and in researching cellular therapeutics. The Company�� iCell product line includes four different cell types: cardiomyocytes, neurons, hepatocytes and endothelial cells. The Company is actively developing an additional seven different cell types. iCell products are a consumable designed to be used once and then reordered.

The Company manufactures its iCell products from its iPSCs. An iPSC is a cell that has the ability both to replicate indefinitely and to be transformed into any cell type in the human body. The Company�� iCell O/S consists of six products, which include iCell Cardiomyocytes, iCell Neurons, iCell Endothelial Cells, iCell Hepatocytes and MyCell.

Advisors' Opinion:

• [By John Udovich]

  Stem cells may not be in the news much�as the sector has moved beyond the use of embryotic�ones, but small cap stem cell stocks Cellular Dynamics International Inc (NASDAQ: ICEL), International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX) have been fairly active over the past several trading days as ICEL went public, ISCO raised additional funding and BRTX grabbed more attention: