First Class Airline Seats Going Once, Going Twice...

First-class airlines seats are a downright pleasant experience when compared to economy/coach class travel. Whether it's in the better food, access to airport lounges, or the lie-flat seat suites available on some flights, first-class tickets offer a whole new way to fly.

But purchasing a first class ticket comes with a large additional cost -- sometimes multiples of the total cost of an economy/coach ticket. Passengers often get around this by using upgrades, and one major airline is testing a new way to sell these sought-after upgrades.

Conventional methods
Airlines have realized that it is not always possible to sell the entire first class section at full price, so they have launched other tactics to make use of these valuable seats.

United Continental (NYSE: UAL  ) and Delta Air Lines (NYSE: DAL  ) are among the airlines offering the ability to upgrade using frequent flyer miles. These miles can be earned from past flights, related purchases, or even through the airlines' respective credit card offerings.

Most airlines also offer passengers with high-level status priority in the upgrade line. And when all else fails, upgrades are often sold for partial value at the check-in counter, or even at the gate.

Experimental method
On certain routes, American Airlines, a subsidiary of AMR (NASDAQOTH: AAMRQ  ) , is testing a new selling method of allowing passengers to bid on upgrades. In its own words, American Airlines explains how the process works.

How does it work?

Make us an offer: Select the amount (per person) you would like to offer for the upgrade of each eligible segment on your itinerary.

Enter your payment information: Enter your credit card details, which will be charged only if your offer is accepted.

Review and submit: Review your information and offer amount/s and submit the request.

This method appears to follow in the same footsteps as the long employed bidding method at Priceline.com (NASDAQ: PCLN  ) . Frugal travelers could submit offers to Priceline.com, and the travel website would shop them around. Since then, Priceline.com has expanded beyond the "Name Your Own Price" method, but still offers it for customers seeking "deeper discounts."

As the American Airlines bidding system rolls out, it may begin with a manual approach (although there is no talk of counter offering flyers' offers), as the trial-sized scale of the initial rollout would make this more manageable.

But in the long run, American Airlines may turn toward an automatic response system. With airlines being highly technologically based using all sorts of computer formulas to generate the fares you see, you should expect that the determination of whether American Airlines accepts your offer will originate from a formula that would boggle the mind of the ordinary traveler just trying to get the seat with the better food. After all, if passengers know the minimum amount the airline will accept for every flight, you can bet what type of offers American Airlines will be receiving.

Top Financial Companies To Watch In Right Now

Expansion?
American Airlines is conducting this bidding method in select markets; but, if met with success, travelers may have the option to bid on upgrades for other flights, as well. Additionally, travelers on other airlines could see this method move to their carrier if it's a positive for American Airlines.

Travelers on US Airways (NYSE: LCC  ) would be among the top contenders to see this move to their airline, as American Airlines and US Airways are expected to begin the merger integration process shortly. Even before the carriers are fully integrated, American Airlines may add the feature to US Airways so both systems can be efficiently running before the integration is complete.

But relax frequent flyers: American Airlines has noted that elite members will still receive priority, and this bidding method will not affect them. For the rest of us, getting an airline upgrade may evolve into the "Name Your Own Price" experience at Priceline.com.

A growth opportunity

Priceline.com has led the online travel industry, and is now one of the few stocks to top $1,000 per share. With thousands of growing companies out there, it's tough to find out which is the next Priceline.com, but The Motley Fool will help you find the next top growth stocks in a special 100% FREE report called, "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.

Rieder: Why would anyone buy a newspaper?

It's not as if the plight of newspapers has gone unrecognized.

Much has been written about the challenges they face trying to survive in the digital age.

With their business model thoroughly disrupted, with ad revenue, circulation and staff sizes down, often way down, they are struggling mightily to reinvent themselves for a very different era.

So why would anyone, particularly a savvy businessman, want to buy one?

John Henry, who completed his acquisition of The Boston Globe from the New York Times Co. last week, took a stab at answering that question in a piece in the Globe's Opinion section on Sunday.

Henry, the onetime rock 'n' roll guitarist who made his fortune in commodities trading, is best known as the owner of the Boston Red Sox. The team, which is battling the St. Louis Cardinals in the World Series, has had a very successful run under his ownership. And now Henry says he wants to secure the future of another signature New England institution.

The new owner of the Globe is one of a number of wealthy, newly minted newspaper owners who believe journalism is vital to a community and newspapers are not lost causes. Like Amazon.com founder and Chairman Jeff Bezos at The Washington Post and former greeting-card executive Aaron Kushner at the Orange County Register, Henry speaks of spending money to make the paper more vital rather than engaging in round after punishing round of cutbacks that weaken the product.

Henry, who purchased the paper for the fire-sale price of $70 million, also wants the Globe and its websites, BostonGlobe.com and Boston.com, to play a key role in the quest for an elusive new business model for journalism.

Ownership by wealthy individuals rather than publicly held companies that are so wedded to the quarterly numbers give these institutions what Bezos calls "runway," time to look for creative solutions to the thorny problems that plague the industry.

Henry says he first thought about buying the newspaper in 2009, in! the midst of the recession, when the New York Times Co. was thinking about shutting down the Globe. He decided the problems it faced were too formidable, and he passed. But Henry couldn't entirely get the idea of taking over the Globe out of his mind. So when the newspaper went on the block last winter, he got back in the game.

"I soon realized that one of the key things the paper needed in order to prosper was private, local ownership, passionate about its mission," he wrote. "And so decisions about The Boston Globe are now being made here in Boston. The obligation is now to readers and local residents, not to distant shareholders."

And then there is this very intriguing sentence: "My every intention is to push the kind of boldness and investment that will make the Globe a laboratory for major newspapers across the country."

"Boldness" and "investment" happen to be two of the things the newspapers need most desperately. And having real-life laboratories at the Globe and the Post overseen by deep-pocketed owners is an exciting prospect.

RIEDER: Firing reporter for single mistake was overkill

In Southern California, Kushner has an against-the-grain experiment of his own underway at the Register. He has dramatically stepped up spending, hiring scores of new reporters and adding pages to the newspaper. And he has started up a new newspaper in Long Beach, triggering a newspaper war. It's an audacious bet on print.

All of these developments, along with Warren Buffett's newspaper-buying spree, reflect a growing belief that print may have been written off too quickly. While no one doubts that the future will be digital and that heavy digital emphasis right now is crucial, it's clear that some very smart people believe print newspapers are worth sustaining.

Significantly, Bezos demurred when friends told him he should eliminate the print version of the Post. He said the actual newspaper is essential both to the D.C. community and the paper's business model.

Whil! e the Glo! be has both a free website (Boston.com) and a subscription model (BostonGlobe.com), it's clear that Henry sees charging for digital content as a key part of the Globe's future. "I feel strongly that newspapers and their news sites are going to rely upon the support of subscribers to a large extent in order to provide what readers want," he wrote. "It is a newspaper's responsibility to create enough value to cause readers to subscribe to their services and advertisers to advertise."

And speaking of the future, Henry stresses that he doesn't see newspapers going away anytime soon. Just as television didn't mean the death knell for movies and radio, Henry doesn't think the plethora of free news that's now available will mean the end of newspapers. In fact, he believes, it heightens their importance as a reliable venue to help readers sort things out.

The Globe has long been a strong regional newspaper. It led the way in coverage of the Catholic priest sex-abuse scandal, and it performed admirably during the Boston Marathon massacre.

So let's hope Henry can extend the Sox's winning ways to his new franchise. And let's hope the new breed of owners can help chart a strong future for journalism.

Costco pays more…because it can

President Obama chose a Costco warehouse store in Maryland today to push for a hike in the federal minimum wage, choosing Costco, the White House says, because it is "acting on its own to pay its workers a fair wage."

Labor union officials and backers agree, saying other retailers, such as Walmart, could learn from the way Costco treats its workers and the results.

But others say the Costco membership stores have such a different business model and customer base that Costco can't be compared with other retailers.

Costco "has half the number of employees per square foot (of Walmart), is a much smaller company, its stores are only in affluent areas and people are buying in bulk," says Richard Berman, who runs a business advocacy group opposed to a minimum wage increase. "It's like saying, 'Why does Microsoft pay more than Starbucks?'"

Costco officials did not respond to requests for comment, but, according to Bloomberg BusinessWeek, its employees make an average wage of about $21 an hour. Costco CEO Craig Jelinek has been an outspoken proponent of a minimum wage increase.

5 Best Tech Stocks To Own Right Now

The federal minimum wage is now $7.25 an hour, although many states have a higher minimum. Walmart says its average hourly wage is $11.83. The United Food and Commercial Workers union says they believe Walmart's hourly wage is lower.

"People making Walmart wages can't afford Walmart products," says Occidental College politics professor Peter Dreier,chair of the urban and environmental department. "On the other hand, what Costco uses is the multiplier effect or the ripple effect — if you raise wages by some percentage, that ripples in the whole economy."

Jonelle Gilden, a Chicago training consultant, is impressed by the way Costco treats both employees and customers.

"I knew Costco employees were paid more and it shows in their attitude and customer service," s! ays Gilden. "Costco's business model obviously works and their employees are loyal."

Costco has annual worker turnover of less than 6%, low for a retailer, according to Dreier. He says this cuts costs and lets Costco pay higher wages.

Brian Gansmann, who owns a food development company in Denver, applauds Costco's decision to pay its workers more, but doesn't think higher wages should be mandated. "Costco has relied on the simple laws of economics to get a leg up on their competition. The more that we business owners willingly pay an employee, data proves that this higher-paid team member is going to stay with our organization longer."

Deutsche Bank Raises Price Targets on Wynn Resorts, Las Vegas Sands (WYNN, LVS)

Deutsche Bank analysts raised their price target on Wynn Resorts, Limited (WYNN) and Las Vegas Sands (LVS) on Wednesday due to continued strength in Macau gaming.

The analysts rate WYNN as “Buy” and now see shares reaching $190, up from the previous target of $156. This new price tar

Brinker International, Inc. Q2 Results Rise Above Estimates; Shares Surge (EAT)

Shares of restaurant company Brinker International, Inc. (EAT) skyrocketed on Wednesday morning after the company reported higher Q2 earnings that beat analysts’ expectations. 

EAT’s Earnings in Brief 

EAT reported Q2 net income of $39.74 million, or 58 cents per share, up from $37.18 million, or 50 cents per share, a year ago. Excluding special items, earnings were 43 cents per share, up from 37 cents per share last year. Revenue for the quarter was $704.39 million, up from $689.76 million in the second quarter of last year. On average, analysts expected to see EPS of 58 cents and revenue of $699.23 million. Earnings were helped by cost cutting measures at Chili’s Grill & Bar and Maggiano’s Little Italy restaurants.

CEO Commentary

CEO and president of EAT, Wyman Roberts, commented: ”We remain encouraged about the trajectory of our business as results from this past quarter demonstrate our steady progress of driving top-line sales, while increasing value for our shareholders.”

EAT’s Dividend 

The company is expected to declare its next quarterly dividend of 24 cents in February. EAT paid its last quarterly payment on December 26. In August, EAT raised its dividend by 20% from 20 cents to 24 cent per share.

Stock Performance

Brinker International shares were up $4.21, or 9.02%, during pre-market trading Wednesday.

Skydog router helps you manage kids and home…

NEW YORK — C'mon now, do you really think you're in charge of your home network? Really?

Not when you've got disobedient kids visiting websites you'd rather be off limits. Not when they're streaming videos on Netflix or YouTube when they should be doing their homework. And certainly not when they know more about tech than you do.

But it's not just about your brat's insubordination.

Did you ever stop to consider just how many devices in the house are arm-wrestling with one another for bandwidth? Sure there's the obvious ones — computers, tablets, smartphones. But then you also have media boxes and entertainment consoles, some mix of Apple TV, Chromecast, DVR, Roku, PlayStation and Xbox. It doesn't end there. You've got light switches and thermostats that connect to the Internet, and even own a bathroom scale that communicates via Wi-Fi.

All these devices periodically weigh on the Internet connection that you rely on to get work done, or to stream your own online entertainment without the intermittent hiccups that can spoil the fun. The burgeoning Internet of Things trend in which practically every household object or appliance is eventually going to want to exploit an online connection only suggests network congestion will get worse.

When it comes to policing your family's cyberactivities or just taming your home network, the outlook appears bleak.

It need not be.

I've been testing a robust home-networking solution called Skydog, and while it won't solve all of your Internet or parenting concerns, it can help put the digital winds at your back. Yes, I've got a few reservations — Skydog can be more intuitive to use in places, and it doesn't currently take advantage of the latest flavor of Wi-Fi, what the techies refer to as 802.11ac.

But I can also recommend Skydog to parents concerned about their youngsters' Internet usage, and really to anyone who with or without kids wants to better manage the connected devices in their homes. You pay $149 for the router, which includes three years of service, after which Skydog will charge you what strikes me as a perfectly reasonable $30 a year.

On the surface, Skydog is just another geeky Gigabit Dual-Band Wi-Fi router, a small black box with blinking blue and amber lights and the requisite ports on the rear for hooking up cables. But Skydog combines that router with a customizable cloud-management service and Web-based app that really sets it apart. Colorful charts within the app give you a quick view into your home Internet activity. You can see which devices are hogging bandwidth and, having assigned devices to specific family members (or guests), see who is using those devices.

What's more, you can set maximum limits on the amount of bandwidth assigned devices can use, and set priorities on which users get access to unused bandwidth.

From within the app, you can set the hours and days of the week in which each family member can use the Internet at all. I found the method for establishing time limits a tad confusing at first. You might block access to a teen's iPad during the hours that they should be studying while relaxing the restrictions on the weekend.

You can also apply content filtering to put the kibosh on specific sites or categories of sites, banning, for example, Web destinations that promote aggressive behavior, criminal activities or vices. Skydog has set up five preset content-filtering policies ranging from "basic security" to the stricter "extreme shield." If your kid tries to go to an off-limits site, a page appears on his or her browser telling them they've been locked out. (Skydog obviously can't stop a kid from using his smartphone to visit a blocked spot.)

Top 10 Undervalued Companies To Own For 2014

Parents can create custom rules to choose sites to always block or for that matter sites they deem kosher. Mom or Dad can also temporarily override pre-established time settings.

You can also create "watch lists" of designated sites to help you determine for example how much time your kid is spending on Facebook.

And if you really want to set a Big Brother tone in your household, you can have Skydog log your child's Web history.

Apart from parental controls, Skydog lets you segment your network into three virtual zones, "home," "work and "guest" by default, each with its own wireless name or SSID and Wi-Fi password (which you can change).

Devices connected to one zone are separate from devices assigned to another. In fact, as an added measure of security, devices within the guest zone cannot even interact with other devices in that zone. The idea here behind zones is that you might segregate the computers and devices you use in your home office from the gadgets you use for fun and games. And you can give priority to one zone over another.

Skydog can replace your existing router, of course, or you can use it in conjunction with the one you have now. Installation is fairly simple, helped by the company's liberal use of instructional videos. The first step is to set up a Skydog account, either by using your Google credentials, or by supplying an e-mail address, password and mobile number.

As you use Skydog, you'll receive text notifications to let you know when new devices access your home network or when you might be experiencing connectivity issues.

Along those lines, I still encountered network delays streaming episodes of Breaking Bad via Apple TV, so I'd love to see a longer-range Skydog router (you can employ more than one Skydog to extend your network range). But give Skydog credit for restoring networking power in the home where it should! reside �! �� with the grownups who are supposed to know best.

THE BOTTOM LINE

Skydog Dual Band Gigabit Wi-Fi Router

$149, www.skydog.com

Pro. Router comes with cloud-management service with parental controls and tools to handle your Internet devices.

Con. Doesn't take advantage of latest Wi-Fi technology. Could be more intuitive in places.

Jeep fire recall can proceed as Feds close probe

The government's closing of an investigation into crash safety of older-model Jeeps clears the way for Chrysler Group to proceed with recall repairs.

The recall for risk that a rear-end crash could rupture the vehicles' gas tanks, causing fires, covers 1.6 million Jeep Cherokees from 1993 to 1998 and Jeep Libertys from 2002 to 2007. A trailer hitch will be added, if they don't already have one, to provide additional rear-crash protection.

NHTSA plans to issue a final report on its investigation in a few weeks. Amid an outcry from safety critics about the recall plan and proposed fix, the National Highway Traffic Safety Administration took a closer look. It now has "no reservations" about Chrysler Group's plan, according to the Associated Press.

Though it had earlier balked at doing a recall, Chrysler praised the examination of the case in a statement: "Chrysler Group commends the National Highway Traffic Safety Administration for the diligence demonstrated over the course of this investigation. We share NHTSA's commitment to safety."

Critics aren't happy. In a statement in response to the NHTSA action, Clarence Ditlow, executive director of the Center for Auto Safety. said, "It is tragic that NHTSA approved Chrysler's sham trailer hitch recall for Jeeps that explode in rear impacts. The government is closing its investigation into older-model Jeeps with fuel tanks that could rupture and cause fires."

The case gained added attention because of the number of vehicles first requested to be recalled, 2.7 million, and Chrysler's initial refusal. It argued that there was no statistical proof that the Jeeps were more prone to fires after rear crashes than comparable vehicles from those years.

NHTSA's outgoing chief, David Strickland, agreed. He told the AP in an interview last month that Chrysler had convinced NHTSA that the Jeeps posed no significantly greater risk.

"Those vehicles performed at a rate similar to their peers. That is the keystone analysis as to whether! something poses an unreasonable risk to safety," Strickland is quoted as saying.

Forget Facebook, This Is The Social Media Stock To Own

Personal, business, class and even international - this trend crosses all boundaries.

While it is built upon the basic principles of human collaboration and friendship, this trend has been supercharged by the connective power of the Internet.

I am talking about networking.

Before the Internet, individuals had no choice but to meet face-to-face. This often restricted interaction to geographic locations and ingrained habit.

Sites like Facebook (Nasdaq: FB) changed all that. And there is another social media opportunity that beats out even Facebook. I'm going to tell you all about it. But first, I want to share with you my foray into social media.  

I consider myself tech-savvy and an early adopter. However, my first real exposure to the new networking trend left me a little embarrassed.

I had just finished lunch with a friend from the University of Pennsylvania. When we parted, he asked if I was on Facebook. "Facebook? What the heck is that?" I asked.

Remember, this was back when Facebook was exclusively for Ivy League universities. He explained that it was a great networking site for college students and others.

My friend pointed out that Facebook was more exclusive than Myspace or Friendster and required a ".edu" email to join.

"Not only that, but it's going to soon expand to everyone and make the greatest stock investment ever," he said. What he didn't know was that there would be an even greater opportunity down the road. What is it? Well, it's none other than LinkedIn (Nasdaq: LNKD).

	Flickr/Nan Palmero
	Unlike Facebook, which disappointed investors with its IPO, LinkedIn is making its investors wealthy.

Unlike Facebook, which mostly concentrates on the social purpose for the end user, LinkedIn is focused on professional/business networking with the socializing aspect as a secondary function.

Founded in 2002 in co-founder Reid Hoffman's living room, the company has rapidly expanded into a leading social media company. Boasting more than a quarter-billion members with 65% outside of the United States, LinkedIn is the largest professional network in the world. Job seekers, deal makers, business owners, and all strata of management/worker positions are represented. In fact, new users are flocking to the site at a rate of two per second, according to company data.

This growth has recently sparked heavy investor interest in the shares. The stock price has exploded by more than 400% since 2010, doubling in value during 2013 alone. Unlike Facebook, which disappointed investors with its IPO, LinkedIn is making its investors wealthy. Here's why.

Revenues at Facebook are primarily derived from advertising. This makes the company vulnerable to the success of its advertisers. No one is going to continue marketing in a manner that doesn't produce returns. LinkedIn relies on a more diversified revenue model that consists of approximately 30% advertiser, 35% premium subscription, and 35% job listings. This revenue diversification provides LinkedIn more "staying power" than a primary advertising-funded model. Facebook boasts an incredible 1.11 billion monthly users, which dwarfs LinkedIn's membership. Despite the size difference, the upwardly mobile professional user base of LinkedIn creates a more powerful marketing platform than Facebook's younger audience.

LinkedIn is developing a stable of "influencers." This program consists of 300 influential high-profile users of the network such as President Barack Obama and Bill Gates. These influencers are able to syndicate their posts for increased exposure. The goal is to create an informational hub and publishing platform for original content, while adding value to the site's users.

These improvements create what's called "stickiness" in Internet parlance. Stickiness is what keeps users coming back for fresh content rather than changing to another site.

Taking a look at the second-quarter performance of the company reveals a near 60% revenue increase year over year, net income of $3.7 million compared to $2.8 million for the same time last year and a 37% increase in membership growth.

Add these advantages to the 60% annual analysts' earnings growth projection over the next five years and it adds up to a lucrative investment opportunity.

Risks to Consider: While the diversification of LinkedIn mitigates many of the threats facing other social networks such as Facebook, risks still remain. The company remains valued on its future growth prospects. It needs to continue its rapid growth to maintain high investor interest. Investing in Linkedin right now is a bet on its continual growth.

Action to Take --> Buying shares now based on the upward momentum makes solid technical sense. However, shares are very expensive at more than $241. My target price is $330 within the next 12 months. This creates an opportunity for option leaps.

Leaps are long-term options that cost much less than the shares themselves and provide the leverage required to participate in the stock's bullish move without tying up the capital required to buy the shares directly. Just like regular options, one leap is equivalent to 100 shares. Presently, I like the January 2015 $300 strike price leaps, which are selling at $27.50 right now. Substantial profits can be made if shares of LinkedIn move above $300 by the expiration date in January 2015.

P.S. -- LinkedIn isn't the only company making noise in the tech industry. Apple just made a little $256 million move that could have huge consequences on your wallet. Click here to find out how the tech giant is threatening the entire banking industry.

5 Stocks Under $10 Set to Soar

Delafield, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

>>5 Active Trades for a Quiet Month

Just take a look at some of the hot movers in the under-$10 complex from Thursday, including Zoom Technologies (ZOOM), which is skyrocketing higher by 23%; Mandalay Digital Group (MNDL), which is soaring higher by 13%; Codexis (CDXS), which is ripping higher by 9%; and Lucas Energy (LEI), which is spiking higher by 8.5%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently skyrocketed higher after I featured it was pharmaceutical retailer and distributor China Jo Jo Drugstores (CJJD), which I highlighted in Jan. 10's "5 Stocks Under $10 Set to Soar" at $1.13 per share. I mentioned in that piece that shares of China Jo Jo Drugstores had been uptrending over the last month and change, with the stock moving higher from its low of 65 cents per share to its recent high of $1.18 a share. That uptrend was quickly pushing shares of CJJD within range of triggering a big breakout trade above some near-term overhead resistance levels at $1.18 a share to some past overhead resistance levels at $1.21 to $1.32 a share.

>>5 Stocks With Big Insider Buying

Guess what happened? Shares of China Jo Jo Drugstores didn't wait long to trigger that breakout, since the stock exploded higher on the same day my article hit the wires. This stock tagged an intraday high on January 10 of $1.90 a share and the volume during that trading session was 2.25 million shares versus its three-month average volume of 147,687 shares. That represents a monster gain of close to 70% in just one trading session for anyone who bought the stock has volume started to pour in and anticipated the breakout. Shares of CJJD might be ready to breakout again if the stock can take out some near-term overhead resistance at $1.50 with strong upside volume.

>>XXX

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

>>Should You Invest in the Government's 5 Favorite Stocks?

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Altair Nanotechnologies

One under-$10 technology player that's starting to move within range of triggering a major breakout trade is Altair Nanotechnologies (ALTI), which develops, manufactures and sells nano lithium titanate batteries and energy storage systems primarily in the U.S. and China. This stock has been on fire over the last six months, with shares up a whopping 128%.

>>4 Tech Stocks Rising on Unusual Volume

If you take a look at the chart for Altair Nanotechnologies, you'll notice that this stock has started to flirt with a near-term breakout trade today, after shares briefly traded above some resistance at $5.20 a share. That spike is starting to push shares of ALTI within range of triggering an even bigger breakout trade above some key near-term and past overhead resistance levels.

Traders should now look for long-biased trades in ALTI if it manages to break out above some near-term overhead resistance at $5.60 a share and then once it clears some past overhead resistance at $6.19 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 66,298 shares. If that breakout triggers soon, then ALTI will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to its 52-week high at $8 a share.

Traders can look to buy ALTI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.73 a share or just below its 50-day moving average of $4.53 a share. One can also buy ALTI off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

JA Solar

Another under-$10 solar player that's starting to move within range of triggering a near-term breakout trade is JA Solar (JASO), which through its subsidiaries, engages in the design, development, production, marketing and sale of solar power products based on crystalline silicon technologies. This stock has trended modestly higher over the last six months, with shares moving up by 11%.

>>5 Big Tech Stocks to Sell Now

If you take a look at the chart for JA Solar, you'll notice that this stock has started to spike higher here back above its 50-day moving average of $9.85 share with solid upside volume. Volume so far in Thursday's trading session has hit 2.12 million shares, which is just below its three-month average action of 2.57 million shares. This spike is starting to move shares of JASO within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in JASO if it manages to break out above some near-term overhead resistance at $10.66 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 2.57 million shares. If that breakout hits soon, then JASO will set up to re-test or possibly take out its next major overhead resistance levels at $12 to its 52-week high at $12.80 a share. Any high-volume move above $12.80 to $12.85 will then give JASO a chance to tag $15 a share.

Traders can look to buy JASO off any weakness to anticipate that breakout and simply use a stop that sits around some key near-term support at $8.94 a share. One can also buy JASO off strength once it starts to clear $10.66 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Dehaier Medical Systems

One under-$10 health care player that's quickly moving within range of triggering a major breakout trade is Dehaier Medical Systems (DHRM), which, through its subsidiaries, develops and distributes medical devices and sleep respiratory and oxygen therapy products in the People's Republic of China. This stock has been red hot over the last six months, with shares up a whopping 141%.

>>5 Hated Earnings Stocks You Should Love

If you take a look at the chart for Dehaier Medical Systems, you'll notice that this stock has been uptrending strong over the last three months and change, with shares moving higher from its low of $2 a share to its recent high of $4.80 a share. During that uptrend, shares of DHRM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DHRM within range of triggering a major breakout trade.

Traders should now look for long-biased trades in DHRM if it manages to break out above some near-term overhead resistance at $4.80 a share to its 52-week high a $4.85 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 volume of 104,479 shares. If that breakout triggers soon, then DHRM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6.50 to $7 a share.

Traders can look to buy DHRM off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $4.25 a share or around its 50-day moving average at $3.95 a share. One can also buy DHRM off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Oxygen Biotherapeutics

Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Oxygen Biotherapeutics (OXBT), a development-stage company, engages in developing biotechnology products that deliver oxygen to target tissues in the body primarily in the U.S. This stock has been in play with the bulls over the last six months, with shares up huge by 127%.

>>2 Biotech Stocks Spiking on Unusual Volume

If you take a look at the chart for Oxygen Biotherapeutics you'll notice that this stock has been uptrending strong over the last month, with shares moving higher from its low of $4.20 to its recent high of $8.58 a share. During that uptrend, shares OXBT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of OXBT within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in OXBT if it manages to break out above some near-term overhead resistance levels at $7.25 to $8.58 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 147,898 shares. If that breakout hits soon, then OXBT will set up to re-test or possibly take out its next major overhead resistance levels at $11.40 to $13 a share.

Traders can look to buy OXBT off weakness to anticipate that breakout and simply use a stop that sits just below its 50-day moving average of $5.79 a share. One can also buy OXBT off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Unilife

One final under-$10 healthcare player that's quickly moving within range of triggering a major breakout trade is Unilife (UNIS), which designs, develops, manufactures, and commercializes injectable drug delivery systems in the U.S. and internationally. This stock has been trending strong over the last six months, with shares up sharply by 49%.

If you take a look at the chart for Unilife, you'll notice that this stock has broken out here and taken out some near-term overhead resistance at $4.71 a share with decent upside volume. This move is quickly pushing shares of UNIS within range of triggering an even bigger breakout trade above some key near-term overhead resistance.

Traders should now look for long-biased trades in UNIS if it manages to break out above its 52-week high at $5.10 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.87 million shares. If that breakout hits soon, then UNIS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6 to $7 a share.

Traders can look to buy UNIS off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $4.25 a share or around its 50-day moving average of $4.01 a share. One can also buy UNIS off strength once it starts to take out $5.10 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Rocket Stocks to Stomp the S&P in 2014

>>4 Stocks Under $10 Making Big Moves

>>The Case for a Correction in Stocks

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

3 Takeover Targets You Can Bank On

2014 will be the year of the deal.

Private equity and hedge fund managers are on the prowl looking for bargains. With the easy money made in the market over the last few years, investors might be wise to follow the lead of these institutional managers.

In preparation for the onslaught, corporations are not sitting idly by.

Hertz (HTZ) initiated a poison pill strategy that kicks in when any investor acquires up to 10% of outstanding shares. The news sent shares soaring – not for the defense against activist investors, but the realization that Hertz cannot stop them when they arrive.

Like clockwork shortly after Hertz's move, Carl Icahn opened a position in the stock. This is a follow-up to activist investors already owning stock in the company.

As for specific targets, it is easy to see where a company might be vulnerable. To the extent shares trade for a discounted valuation, consider the stock in the crosshairs.

Whether the outcome is activist investors making and demanding changes in strategy or the private-equity route of taking the company out entirely, the endgame for investors is appreciation in stock value.

While you might not make a huge windfall, you can score a quick 10-20% gain or more with these plays.

As such, it pays to identify these takeover targets in advance.

Here are 3 to consider for your portfolios today:

Weatherford International

The oil and gas equipment servicing company already traded for a discount before the start of the year. So far in 2014 it has been straight downhill, with shares being down 7% in just a handful of trading days in the New Year.

What gives? These should be the best of times for the company with oil drilling around the globe at a peak. Of course poor management decisions started the fall from grace and thus far management has yet to prove they can get the company back on track.

Despite the poor operating performance, things are looking up for Weatherford (WFT) – that's why the selling at the start of the year is so perplexing and likely to attract a private equity or hedge fund manager. Analysts expect profits to grow by 58% next year. At current prices, the stock trades for only 11.5 times 2014 estimated earnings. That's about as cheap as it gets. An astute big boy manager is going to exploit that valuation metric in very short order. I'd get in before they do.

American Eagle Outfitters

The volatility in the apparel retail space has increased greatly over the last several months. Just last week we saw shares of Abercrombie & Fitch (ANF)soar after having been down in the dumps. On the flip side, shares of Pacific Sunwear tanked. True value is difficult to ascertain in the public equity market. That's what makes the industry ripe for private equity funds. Imagine taking over a name brand with tremendous growth potential and being able to operate without the irrational prying eyes of the public market.

One name that you can probably count on becoming a target is American Eagle Outfitters (AEO). Like Abercrombie, shares of American Eagle have fallen over the last year. Fashion-fickle teens and a challenged consumer economy have made for a tough go of it. That said, the company is an iconic brand that will be in favor again. A private equity or hedge fund manager is likely to acquire shares at these levels before they take off similarly to Abercrombie.

Norwegian Cruise Lines

This one almost seems like a no-brainer. Private equity and hedge fund managers tend to have massive egos. What better product to own than a giant cruise ship operator?

Norwegian Cruise Lines (NCLH) might be the ultimate toy for these managers and the timing looks perfect. The travel space is red hot. Consumer and business travelers are filling up capacity in a big way. Profits are growing and at a fast pace and yet shares of Norwegian trade for a low multiple of earnings. Analysts expect the company to grow profits by 63% in 2014.

At current prices shares trade for only 16 times 2014 estimated earnings. With those kind of numbers a smart big money manager is going to take notice. Aside from the pricing the demographics are strong too. The baby boom is retiring and I suspect they will be doing lots of cruising in their golden age. If so, Norwegian is a perfect company to take private – cheap price, steady growing cash flow and a growing market.

Is Groupon Enticing After Recent Headlines?

With shares of Groupon (NASDAQ:GRPN) trading around $11, is GRPN an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Groupon offers online retail services. The company provides daily deals on stuff to do, eat, see, and buy in more than 500 markets in 44 countries. It provides an online service that lets groups of people create campaigns to pool resources, including money and personal commitments to take action, and it allows users to sell products and transact business online. Groupon is poised to see rising traffic as it provides consumers with ways to save on common shopping experiences and activities.

Groupon said Monday that it acquired online flash sales fashion retailer Ideeli to expand in the apparel sector. Groupon paid $43 million in cash for Ideeli. The deal closes Monday. Ideeli will maintain its headquarters in New York and will continue to operate as a separate website. Ideeli started in 2007 and was part of a group of so-called flash sales companies that specialized in fast, daily online events that offered heavily discounted fashion apparel in limited supply. ”Ideeli extends our fashion presence and brings great relationships with many of the top brands in apparel,” said Groupon CEO Eric Lefkofsky. “Our customers have a demonstrated appetite for these offers, and by broadening our reach in this space Groupon is even better positioned as the place you start when you want to do or buy just about anything, anytime, anywhere.”

T = Technicals on the Stock Chart Are Strong

Groupon stock has been surging higher over the past several months. However, the stock is currently pulling back and may need time to stabilize. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Groupon is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Groupon options	50.31%	Hot Canadian Stocks To Watch For 2014 3%	0%

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

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

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	0.00%	-125.00%	50.00%	0.73%
Revenue Growth (Y-O-Y)	4.66%	7.11%	7.53%	29.69%
Earnings Reaction	6.42%	21.55%	11.44%	-24.24%

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

P = Weak Relative Performance Versus Peers and Sector

How has Groupon stock done relative to its peers, Facebook (NASDAQ:FB), Google (NASDAQ:GOOG), United Online (NASDAQ:UNTD), and sector?

	Groupon	Facebook	Google	United Online	Sector
Year-to-Date Return	-5.40%	4.69%	1.06%	-3.34%	-1.74%

Groupon has been a poo relative performer, year-to-date.

Conclusion

Groupon allows consumers and companies to find a happy medium when transacting for goods or services. The company said Monday that it acquired online flash sales fashion retailer Ideeli to expand in the apparel sector. The stock has been surging higher over the past several months, but is currently pulling back. Over the last four quarters, earnings and revenues have been increasing, leaving investors pleased. Relative to its peers and sector, Groupon has been a poor year-to-date performer. Look for Groupon to OUTPERFORM.

Can Boeing Continue This Bullish Run?

With shares of Boeing (NYSE:BA) now trading around $104, is BA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Boeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corporation.

On Saturday, Boeing’s 777 jet crashed in San Francisco, but luckily, the plane had several built-in safety features that helped save lives in the accident. One of the greatest features of the 777 jet is a flame-retardant cabin, and engineering that ensured the plane wouldn't break up too much after the impact. For now, it doesn’t appear as though any mechanical failure caused the crash, which is good news for Boeing after the safety issues that have plagued the company’s other aircrafts this year. As a leading provider of aerospace products and services to large corporations, not to mention the U.S. government, look for Boeing to continue to advance and develop this space and fuel aerial progress.

Hot Warren Buffett Companies To Watch For 2014

T = Technicals on the Stock Chart are Strong

Boeing stock has witnessed a very impressive move towards higher prices over the last few months. The stock is now trading near all-time high price levels, where the stock may pause a bit. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages.

As seen in the daily price chart below, Boeing is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Boeing Options	24.75%	20%	17%

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

	Put IV Skew	Call IV Skew
July Options	Flat	Average
August Options	Flat	Average

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

On the next page, let’s take a look at the earnings and revenue growth rates and what this means for Boeing’s stock.

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	18.03%	-30.91%	-7.53%	1.60%
Revenue Growth (Y-O-Y)	-2.53%	14.05%	12.87%	20.93%
Earnings Reaction	3.00%	1.27%	-0.15%	2.77%

Boeing has seen mixed earnings and mostly rising revenue figures over the last four quarters. From these numbers, it seems the markets have been pleased with Boeing’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Boeing stock done relative to its peers: Lockheed Martin (NYSE:LMT), Spirit Aerosystems (NYSE:SPR), Northrop Grumman (NYSE:NOC), and sector?

	Boeing	Lockheed Martin	Spirit Aerosystems	Northrop Grumman	Sector
Year-to-Date Return	39.23%	18.28%	32.00%	25.51%	27.56%

Well, it looks like Boeing has been a relative performance leader, year-to-date.

Conclusion

Boeing is an aerospace company that provides aircrafts and related products and services to corporations and governments worldwide. The stock has been on an explosive move higher that has taken it near previous all-time high prices. Over the last four quarters, earnings have been mixed while revenue figures have been mostly on the rise, maintaining investors’ satisfaction with the company. Relative to its peers and sector, Boeing has been a year-to-date performance leader. Look for Boeing to continue to OUTPERFORM.

Markets Hit All-Time Highs: Don't Let It Stop You From Investing

The headlines say it all: "The S&P 500 closes at an all-time high." When you include dividends reinvested, an investment in a market ETF like SPDR S&P 500 ETF (NYSEMKT: SPY  )  is up a ridiculous 160% since March of 2009.

News like this has investors nervous. And if you think about it, they should be nervous -- a run like this is bound to come to an end, right?

Actually, no. The market should -- and does -- routinely hit all-time highs. Over long time frames, the market has gone up more often than it has gone down, so it only makes sense that we see all-time highs occur with regularity.

A historical perspective
If you go back to 1950, this point becomes clear. By taking the weekly closing price of the S&P 500  (SNPINDEX: ^GSPC  ) , we see that in 37 of the past 64 years, an all-time high was hit. In other words, there's a greater-than-50% chance that in any given year, an all-time high has been reached.

What happens when investors get nervous and sell out during these periods? From time to time, they save themselves from short-term pain, as in the dot-com bubble and the Great Recession. But over the long run, some stretches of huge appreciation are completely missed.

Don't believe me? The areas represent years when an all-time high was reached.

Source: Yahoo! Finance.

Further reinforcing this point, when all-time highs are reached in a given year, notice when they occur:

When All-Time High Occurred

% of the 37 Years When All-Time Highs Were Hit

Last Week of Year	24%
Last Month of Year	41%
Last Quarter of Year	70%

Source: Yahoo! Finance.

Does this mean we are guaranteed to hit an all-time high in the last quarter, month, or week of 2013?

Absolutely not. These are averages across more than half a century. What this means is that there's a reason the end of the year has more instances of all-time highs. Put simply, because the market tends to go up more than down, it makes sense that the market would be higher later in the year, rather than earlier.

If you're a long-term investor, there's no disputing the historical evidence that you've got nothing to worry about when the market hits an all-time high. Finding great companies selling for reasonable prices remains your surest bet to invest successfully. 

I doesn't hurt, either, when you get investing tips right from the mouths of Wall Street's most informed. Our top technology analyst recently infiltrated one of the finance world's most exclusive gatherings -- and left with three incredible investment opportunities, straight from the CEOs. These are profit-building strategies Main Street isn't meant to hear about -- so act now before someone shuts us up. Click if you want "industry insider" earnings, absolutely free!

Top 10 Energy Stocks To Own For 2014

Forget Coke and Pepsi: Is Green Mountain SodaStream's Biggest Threat?

Look out, SodaStream (NASDAQ: SODA  ) shareholders! Green Mountain Coffee Roasters  (NASDAQ: GMCR  ) may have your business in its sights.

On Monday, shares of Green Mountain rose more than 6% after a Bloomberg report pointed out that the company recently applied for a trademark on the word "Karbon," which they describe as a machine "for the production of cold water, soda, still, carbonated and sparkling beverages."

Of course, this doesn't exactly mean Green Mountain will be jumping into the at-home carbonation market anytime in the very near future, and Green Mountain representatives, for their part, wouldn't comment on the specific trademark. Instead, they vaguely stated, "As we continue to grow, we are likely to seek any number of trademarks."

Par for the course
So does this mean certain doom for SodaStream over the long term? Hardly.

Remember, late last year, bottled water distributor Primo Water signed a three-year deal with Cuisinart to sell a Cuisinart-branded version of its own sparkling beverage appliances, and that hasn't stopped SodaStream from making a habit of crushing analysts' expectations each quarter since then.

Then again, Green Mountain does know a thing or two about starting small, and one would think that if any company could figure out how to penetrate a high-growth, up-and-coming industry, it'd be the team that popularized Keurig coffee brewers by convincing millions of consumers they couldn't live without one in their kitchens. All in all, that helped early investors in Green Mountain to multiply their money 44-fold over the past decade alone.

That said, shares of SodaStream had also been on a tear in 2013 until just last month, having risen more than 60% through the first half of the year -- and with good reason: With its most recent quarterly earnings beat, we saw SodaStream's revenue grow 34% year over year, thanks to a 78% gain in soda-maker sales as well as solid gas-refill and syrup unit revenue, which rose 101% and 78%, respectively.

Top Energy Stocks To Buy Right Now

Better yet, SodaStream has unveiled a slew of partnerships of its own so far this year, including new flavor partnerships, a deal with Samsung to integrate its carbonation machines into the Korean conglomerate's high-end fridges, and a potentially lucrative agreement with Whirlpool to make KitchenAid-branded carbonation machines based on SodaStream's technology.

Trouble in paradise?
Even so, SodaStream stock has fallen more than 17% over the past month as recent buyout chatter concerning a potential $2 billion deal with PepsiCo (NYSE: PEP  )  has faded.

As fellow Fool Rick Munarriz noted at the time, while SodaStream arguably represents one of the biggest long-term threats to huge traditional beverage companies like PepsiCo and Coca-Cola, it wouldn't make sense for either of the industry giants to acquire the tiny company, especially considering it would not only anger the bottlers who rely on their existing businesses, but also cannibalize their own core canned and bottled beverage sales.

Worse yet, SodaStream's most recent fall occurred after the New York Post reported it had been quietly attempting to market itself to potential suitors for at least the past three months to no avail. Curiously enough, this report even went so far as to clarify there may have been a hint of truth to the previous PepsiCo rumors, but only in that PepsiCo just wanted to acquire SodaStream's lucrative CO2-refilling business and not the actual consumer appliance operations. 

Apart from the obvious worries, then, that nobody would be interested in buying SodaStream's business, this also calls into question SodaStream management's assertions that their machines truly possess the long-term, industry-disrupting potential investors have been hoping for. 

Foolish takeaway
As for now, I'm still impressed by SodaStream's plans to increase annual sales by around 80% to $1 billion by 2016, but would love to hear what the company has to say about the acquisition rumors when they report second-quarter earnings on July 31.

Over the longer term, though, I'm still not particularly concerned over Green Mountain's potential move into at-home carbonation, and see no reason that more than one carbonation system can't thrive in the market. After all, SodaStream has so far only captured less than 1% of the 130 million households in the U.S. -- and who knows? In the end, Green Mountain may just end up validating SodaStream's business model when so many are worried about its long-term staying power.

But remember, SodaStream certainly isn't the only stock in the market with huge growth potential. If you're tired of watching your stocks creep up year after year at a glacial pace, Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.

HNW Investors’ Needs Differ as Wealth Increases: Cerulli

Contrary to popular notions, the wealthiest 1%–2% of American investors are a variegated lot.

A new report by Cerulli Associates found that while the majority of affluent investors are able to diversify their assets and wealth management advice across a wide spectrum of vehicles and services, their primary and aspirational goals, as well as privileges, vary significantly as investable assets increase.

Employing data supplied by the Federal Reserve and U.S. Census Bureau, Cerulli projected a high-net-worth marketplace of 833,530 households, those with more than $5 million in investable assets.

The report broke this marketplace into two segments: 771,120 high-net-worth households, and 62,410 ultrahigh-net-worth households, those with upward of $20 million in investable assets.

These households combined own more than $9 trillion in investable assets. Put another way, just 0.7% of all U.S. households own 31% of the country’s investable assets.

According to the report, both of these market tiers may seek and qualify for personalized services and sophisticated products, including direct hedge fund and private equity investing. However, UHNW investors are progressively pursuing the high-touch and extremely private nature of multifamily offices and private trust companies.

On the highest end of the wealth spectrum, single-family offices provide investors with unrivaled education, control and customization, including management of property and household staffing.

Cerulli said most consultants agreed that the SFO structure was reserved for the wealthiest patriarchs and matriarchs ($100 million in net worth or greater) because of annual costs typically running at $1 million, if not significantly more.

The scale and scope of services offered by mainly wirehouses and private client groups continue to dominate overall HNW assets, the report found.

However, registered investment advisors, MFOs and state-registered bank trust companies are gaining substantial traction. Cerulli said it expected these channels to continue gaining market share as they enhance their services and staffing talent.

Other major drivers include successful advisory teams making the transition into the autonomous channels, as well as many HNW investors pursuing boutique-like service models and distancing themselves from large financial institutions.

Expanding Relationships

The report found that households within all investable asset tiers continued worked with record numbers of providers in 2013. This was especially the case with HNW investors, who now have an average of 4.4 provider relationships.

Cerulli attributed most of the activity to blemished brands and reputations that many financial institutions endured during and immediately after the recession. It said investors and advisors contemplating relocating channels were increasingly pursuing boutique-like service models, such as RIAs, MFOs and state-registered trust companies.

The report found that HNW investors were not necessarily severing ties with their current providers but gradually and disproportionately shifting assets to the new provider.

Cerulli said asset managers should view this trend as encouraging since investors are dispersing assets across a wider breadth of wealth managers, platforms and product sets.

Moreover, if HNW assets continue to flow to autonomous providers, opportunities will increase exponentially because these firms truly rely on open architecture, without the common obstacle of proprietary funds presented by many legacy providers.

A following story on Cerulli’s findings will discuss common strategies wealth managers use to develop relationships with their HNW clients’ children, why they see the HNW market as more attractive than other business lines and how they’re approaching the fee-compression debate.

---

Check out Investors Eschew One-Stop Shopping for Financial Services on ThinkAdvisor.

Average 30-year mortgage rate edges up to 4.16%

WASHINGTON (AP) — Average U.S. rates on fixed mortgages rose slightly last week but remained near historically low levels.

Mortgage buyer Freddie Mac says the average rate on the 30-year loan increased to 4.16% from 4.10% last week, which was the lowest level in four months. The average on the 15-year fixed mortgage rose to 3.27% from 3.20%.

30-YEAR OR 15?: 5 questions to help you choose

Rates have been falling since September when the Federal Reserve surprised investors by continuing to buy $85 billion a month in bonds. The purchases are intended to keep long-term interest rates low.

Slower hiring in recent months has many analysts predicting that the Fed will maintain the current pace of the bond purchases into early next year, which should keep mortgage rates low for the time being.

The recent drop in mortgage rates could help boost home sales, which slowed in September after rates reached their highest averages in two years.

The decline in sales has also affected price gains. Real estate data provider CoreLogic said Tuesday that a measure of U.S. home prices rose only slightly in September from August, a sign that prices are leveling off after big gains earlier this year.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage rose to 0.8 point from 0.7 point. The fee for a 15-year loan was unchanged at 0.7 point.

The average rate on a one-year adjustable-rate mortgage fell to 2.61 percent from to 2.64 percent. The fee remained at 0.5 point.

The average rate on a five-year adjustable mortgage was steady at 2.96 percent. The fee edged up to 0.5 point from 0.4 point.

Mortgage rates remain near 4-month lows

Average rate nationwide for 30-year fixed-rate home loan

Percent30-year 0,4.4 1,4.58 2,4.51 3,4.57 4,4.57 5,4.5 6,4.32 7,4.22 8,4.23 9,4.28 10,4.13 11,4.10 12,4.16Source: Source: Freddie Mac weekly survey of about 125 lenders

Ford is Selling a Lot of Hybrids

Ford's Fusion Hybrid. Photo credit: Ford Motor Company

Here's a bit of good news for Ford (NYSE: F  ) : The Blue Oval's sales of hybrids were up 324% in the first quarter, thanks to strong sales of several new models.

Ford now has a 16% share of the U.S. market for "electrified vehicles" – electric cars and hybrids, it said on Wednesday.

And even better for Ford, many of the hybrids it's selling are loaded.

A serious push into the green-car market for Ford
Ford said that it sold 21,080 hybrid vehicles in the U.S. in the first quarter. That's not a huge number when compared to something like Ford's pickup sales, but hybrids don't (yet) represent a huge market. Market leader Toyota (NYSE: TM  ) sold 55,724 Priuses here in the first quarter, along with hybrid versions of several of its other models.

Clearly, Ford has a long way to go to catch up with Toyota on the hybrid front. But, just as clearly, the automaker that only a few years ago was known mostly for its pickups and SUVs has made good progress with its greener models in a short time.

It's already paying off for Ford. The company said on Wednesday that its hybrid and plug-in versions of the Fusion sedan and C-MAX compact were helping Ford make inroads into markets that were previously cold to the Detroit automakers – like California. Ford says that 73% of Fusion Hybrid buyers in Los Angeles, and 77% in San Francisco, are coming to Ford from another brand.

What's more, those sales are particularly profitable ones for Ford, because hybrid buyers turn out to like lots of high-tech options.

Why these sales are particularly profitable
As is true with most automakers, options packages are worth big bucks to Ford. The profit realized by the manufacturer on any given car or truck increases significantly if it's loaded with options, and Ford has put a lot of effort into offering premium options packages that have strong appeal with buyers.

Ford says that 70% of Fusion Hybrid buyers are opting for the MyFord Touch package, Ford's well-known touchscreen "infotainment" system, versus about 50% of buyers of the conventional gas-powered Fusion. Ford also says that Fusion Hybrid buyers select high-tech safety options, like its blind-spot alert and active parking assist systems, at about twice the rate of regular Fusion buyers.

That should add up to an outsized contribution to Ford's bottom line -- and another reason why this is a good business for Ford to be capturing.

Best Insurance Stocks To Invest In 2014

Competing well with Toyota
As I said above, Ford still has a ways to go to catch Toyota, still the undisputed global hybrid leader. But Ford's making progress: Ford cited data from Edmunds.com showing that the Fusion Hybrid and C-MAX Hybrid were getting "consideration" from potential buyers roughly equal to Toyota's Camry Hybrid and Prius.

The company also pointed out that it was winning those sales with incentives that have been lower than Toyota's. It's one more sign that the company once identified with gas-guzzling SUVs is doing a pretty good job of selling its new, greener self.

Is Ford a buy right now?
If you're concerned that Ford's turnaround has run its course, relax -- there's good reason to think that the Blue Oval still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place -- click here to get started now.

January Effect and 52-Week Highs/Lows: How to Beat the S&P 500

“The January effect is a real and continuing anomaly in stock-market returns, and one that defies easy explanation.”

– Financial Analysts Journal (2006)

With December half over, it’s time to start thinking about the “January Effect.” Just to be clear, I’m not talking about the deeply-flawed “First Five Days of January Indicator” which says that how a stock market performs during the first trading week of January determines how it will perform for the entire calendar year. I briefly mentioned the 5-day January Indicator in a 2011 article entitled What’s Wrong with India’s Stock Market?” As it turned out, the 5-day January Indicator accurately predicted that India’s stock market would continue underperforming for the rest of 2011, but I digress.

Unlike the dubious 5-day January Indicator, the January Effect is an academically-proven stock-market phenomenon where small-cap and underperforming stocks near the end of one calendar year suddenly reverse course and outperform the general stock market in the January of the following calendar year. That this well-publicized phenomenon continues to occur despite being well known is interesting – the efficient market hypothesis argues that such abnormal outperformance should quickly dissipate at the hands of arbitrageurs.

Jeffrey Hirsch of The Stock Trader’s Almanac calls the January Effect “Wall Street’s only free lunch.” I would argue that diversification also qualifies as a free lunch, but Hirsch’s point is well taken. Based on 38 years of data between 1974 and 2012, Hirsch has found that a portfolio of small-cap stocks hitting 52-week lows in mid-December outperform the NYSE Composite Index (^NYA) by an average 9.5 percentage points (not annualized!) per year between late December and the January/February period. Just as impressive as the magnitude of outperformance is the frequency of outperformance — these beaten-down stocks have outperformed the NYSE Composite in 33 of the 38 years (87% of the time).

Hirsch is not the only one to find this outperformance. Studies galore have reached the same conclusion, including:

Ned Davis Research: Between 1996 and 2009, a portfolio of stocks in the lowest market-cap decile of the S&P 1500 composite index that are also close to a 52-week low  outperforms the S&P 500 by an average of 7.4 percentage points between mid-December and the end of January. The outperformance is much less if you exclude December and look just at January, so investing in the strategy should not wait until January. Professors Eugene Fama and Kenneth French: Between 1927 and 2009, the lowest market-cap decile of stocks (average market cap of $100 million) performed more than eight times better in January than in the average of the 11 other months, whereas large-cap stocks actually underperformed in January compared to the average of the 11 other months.

Why do these December small-cap stock laggards persistently outperform in January? Hirsch attributes it to tax-loss selling by individual investors who want to dump losers before year-end in order to neutralize realized capital gains from their winning trades. But that is only one possibility, which is partially negated by the fact that since the passage of the Tax Reform Act of 1986, the tax year for institutional investors – which account for more than 70% of all stock trading — ends on October 31st, not December 31st.  What tax-loss selling does take place in December is limited to individual investors. Since the average individual investor often focuses his trading on low-priced and higher-volatility small-cap stocks, it makes sense that any tax-loss selling effect in December focuses on small-cap names. According to Columbine Capital, other causes of the January Effect may include:

End of the year “window dressing” by institutional investors (e.g., mutual funds) who want to eliminate embarrassing losers from their portfolio prior to their end- of-year annual reports. January investment of end-of-year employment bonuses. The postponing of the sale of winning stocks that experienced capital gains until January in order to defer taxes to the following year. 

Taking advantage of the small-cap January effect can be problematic if the only bargain stocks ready to pop in January are microcaps worth $100 million or less, as the Fama-French data suggests may be the case. Microcaps are often illiquid with wide bid/ask spreads that make trading in-and-out of them exorbitantly expensive. Gains from such microcap stocks can be statistical mirages based on nothing more than one trade being executed at the bid and the next trade being executed at the much-higher ask. Furthermore, as James O’Shaughnessy writes on page 53 of his investment classic — What Works on Wall Street (4th ed.):

Microcap stocks possess virtually no trading liquidity, and a large order would send their prices skyrocketing. Thus, while it is easy to assume that you could purchase and sell these securities at their listed price in the historical dataset, I believe that this is an illusion and unnecessarily gives an upward bias to the results of studies that allow their inclusion.

Simply buying a small-cap ETF like the iShares Russell 2000 (NYSE: IWM) of the iShares Russell Microcap (NYSE: IWC) doesn’t work. Over the past 11 years, the Russell 2000 index (median market  cap of $460 million) has declined in January seven times (64% of the time) and has actually performed worse than the S&P 500 a majority of the time (6 out of 11). The Russell Microcap index (median market cap of $152 million) has only been around for seven Januarys (since 2006) and it has underperformed the S&P 500 in four of those years (a majority of the time). December relative performance has been no better for IWM, which underperformed the S&P 500 a majority of the time over the past 11 years, but IWC has done much better in December, outperforming the S&P 500 in each of its first seven years of existence. Like I said earlier, however, microcap “gains” are suspect.

Fortunately, a 2010 academic paper has demonstrated that the January Effect is not limited to stocks that are microcaps or have plummeted in price! Based on the authors’ statistical analysis using regression equations, they were able to screen out un-investable microcaps under $250 million, as well as mortally-wounded penny stocks under $5.00 per share, and still be left with a stock universe that generates a substantial January Effect.

According to their regression analysis, the real determinant of the January Effect is a stock’s current relationship to its 52-week high as of the market close on the last trading day of November (i.e., less than two weeks ago!). The nearer to its 52-week high, the worse the stock performs in January and the closer to its 52-week low, the better it performs. Using this metric, small-cap stocks do not perform better than large-cap stocks, nor do the worst-performing stocks at 52-week lows perform better than stagnant stocks near 52-week lows.

This is GREAT news because it means that average investors can benefit from the January Effect with liquid, large-cap stocks! According to the authors of the paper, this blockbuster conclusion means that tax-loss selling by individual investors is not the primary cause of the January Effect. Rather, window-dressing by institutional investors is the primary cause:

When good news has pushed a stock’s price to, or near, a new 52-week high, then fund holders may perceive it to be a good investment.  On the other hand, when bad news pushes a stock’s price far from its 52-week high, fund holders view it as a poor investment. Using the 52-week high as an “anchor” when assessing the stock’s performance is a bias because fund holders do not rely on the stock’s entire cumulative return history, but rather they base their judgments entirely on the highly visible 52-week high reference price.

Fund managers are aware of this cognitive bias and have incentives to window-dress by selling stocks whose December prices are far from the 52-week high, and buying, or continuing to hold, those with December prices near the 52-week high. In January, after the reporting period has ended, prices reverse.

In fact, the study’s authors found that 52-week stocks with extremely poor price performance actually rebound less in January than 52-week low stocks with stagnant price performance. This makes sense to me since stocks that plunge in price usually have downward momentum that continues. Severe price plunges also suggest serious fundamental problems, whereas stocks that simply stagnant could just be undergoing a pause that refreshes. Interestingly, the authors also found that stocks near their 52-week high underperform in January, especially those that don’t have strong year-to-date price appreciation (i.e., momentum), so one can enhance the January Effect by not only buying stagnant 52-week low stocks but also shorting stagnant 52-week high stocks.

Using my trusty Bloomberg terminal, I screened for stocks that are in the bottom two deciles of their 52-week price range and which also have not declined by more than 20% year-to-date. As of December 23rd, ten promising candidates for January outperformance are listed below:

January Effect Stocks Near 52-Week Lows

Company	Stock Price	Market Cap	52-Week Price Range Hi/Low Percentile	Year-to-Date Performance	Industry
Diamond Offshore (NYSE: DO)	$55.39	$7.7 billion	3.3	-14.2%	Oil Drilling
HCP Inc. (NYSE: HCP)	$36.22	$16.5 billion	3.5	-16.0%	Healthcare REIT
American Realty Capital Properties (Nasdaq: ARCP)	$12.64	$2.4 billion	8.6	1.9%	Retail and Office REIT
Southern Co. (NYSE: SO)	$40.88	$36.1 billion	9.8	-0.1%	Electric Utility
Cooper Tire & Rubber (NYSE: CTB)	$22.01	$1.4 billion	10.3	-11.8%	Automobile Tires
CenturyLink (NYSE: CTL)	$31.36	$18.5 billion	11.8	-14.5%	Telecommunications
Quest Diagnostic (NYSE: DGX)	$54.05	$7.8 billion	13.4	-5.4%	Medical Diagnostic Tests
Kinder Morgan Energy Partners (NYSE: KMP)	$79.57	$34.9 billion	15.4	6.0%	Energy pipeline MLP
Altera (Nasdaq: ALTR)	$31.98	$10.3 billion	15.9	-5.6%	Semiconductors
ADT Corp. (NYSE: ADT)	$40.01	$8.0 billion	16.8	-12.9%	Home Security

Source: Bloomberg

My top-ten list from last year outperformed the S&P 500 by 13.3 percentage points (19.8% vs. 6.5%) between December 21st and February 15th. Furthermore, the outperformance was not caused by only one or two big winners — eight out of the ten screened stocks outperformed the S&P 500. No guarantees, but I’m hopeful the current list will also outperform the S&P 500 this year.