Where Will EMC Go Next?

With shares of EMC (NYSE:EMC) trading around $22, is EMC 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

EMC develops, delivers and supports the information technology industry's range of information infrastructure and virtual infrastructure technologies, solutions and services. The company manages its business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure. Through its categories, EMC provides a foundation for organizations to store, manage, protect, analyze and secure information, improve business agility, lower cost of ownership and enhance their competitive advantage. As businesses continue to expand and look for ways to use technology for their benefit, companies like EMC will continue to see rising profits by delivering these essential products and services.

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T = Technicals on the Stock Chart are Weak

EMC stock has seen a consistent uptrend over the last several years. Currently, the stock is struggling to trade above a key $25 to $30 area. 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, EMC is trading below its declining key averages which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
EMC Options	26.51%	40%	39%

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

	Put IV Skew	Call IV Skew
May Options	Steep	Average
June Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a normal amount of call and put option contracts and are leaning neutral to bearish 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 EMC’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for EMC 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)	-3.70%	3.64%	3.7%	20.83%
Revenue Growth (Y-O-Y)	5.75%	8.17%	5.98%	9.62%
Earnings Reaction	0.71%	-4.04%	-0.89%	2.17%

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

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P = Excellent Relative Performance Versus Peers and Sector

How has EMC stock done relative to its peers, Hewlett-Packard (NYSE:HPQ), International Business Machines (NYSE:IBM), NetApp (NASDAQ:NTAP), and sector?

	EMC	HP	IBM	NetApp	Sector
Year-to-Date Return	-11.54%	43.86%	5.11%	3.55%	4.07%

EMC has been a trailed by a wide margin, year-to-date.

Conclusion

EMC provides essential and innovative technology products to industry participants around the world. The stock has done reasonably well over the last several years but is currently seeing increased selling. Earnings and revenue figures have been steadily increasing but investors have been expecting more from the company. Relative to its peers and sector, EMC has done extremely poorly in year-to-date performance. STAY AWAY from EMC stock for now.

Consumer prices up just 0.2% in September

Higher energy costs contributed to much of the only slight increase in consumer prices last month, while food prices stayed relatively the same.

The consumer price index rose a seasonally adjusted 0.2% in September, the Labor Department said Wednesday. That's up from 0.1% in August. Higher gas, electricity and other energy costs rose 0.8%, making up about half the overall increase. The figures are the latest evidence that slow economic growth is keeping inflation tame.

WEDNESDAY STOCKS: How markets are doing

In the past year, consumer prices have increased just 1.2%. That's down from the annual gain of 1.5% as of August and the smallest 12-month gain since April.

Excluding volatile food and energy costs, core prices rose just 0.1% and are up 1.7% in the past 12 months.

With unemployment still relatively high and wage increases nearly flat, many Americans continue to struggle to pay more for most goods, making it harder in turn for retailers to charge more.

With inflation below the Fed's target of 2%, the central bank faces less pressure to scale back its $85 billion-a-month in bond purchases. The bond purchases are intended to keep long-term inflation rates low and stimulate economic growth. But critics fear it raises the risk of higher inflation.

Extremely low inflation may even increase pressure on the Fed to extend the purchases. Some Fed officials have objected to slowing the bond-buying program when inflation is well below 2%. A small amount of inflation can be good for the economy because it encourages consumers and businesses to spend and invest before prices rise further.

Paul Dales, an economist at Capital Economics, says price gains have picked up in the past few months, a sign "the Fed needn't worry too much about low inflation."

Prices for clothing and hotels fell, while airline fares, new car prices, and rents rose. Fruit and vegetable prices dropped, offsetting increases in meat, breads and dairy products.

The government shutdown! likely slowed growth in an already weak economy. Economists expect economic growth at an annual rate of between 1.5% and 2% from July through September. That would be down from a 2.5% annual rate in the April-June quarter.

And economists expect little pickup in the October-December quarter. The shutdown likely cut a quarter- to a half-percentage point from growth in the final three months of the year.

Contributing: Associated Press

Can GlaxoSmithKline Break Higher?

With shares of GlaxoSmithKline (NYSE:GSK) trading around $52, is GSK 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

GlaxoSmithKline is global health care group engaged in the discovery, development, manufacturing, and marketing of pharmaceutical products. These products include vaccines, over-the-counter medicines, and health-related consumer products. GlaxoSmithKline's principal pharmaceutical products include medicines in these areas: respiratory, antivirals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines, and HIV.

The company operates in three primary areas of business: pharmaceuticals, vaccines, and consumer health care. Through its areas of business, GlaxoSmithKline is able to positively affect the lives of many consumers around the world that require their medications.

T = Technicals on the Stock Chart are Strong

GlaxoSmithKline stock been on a strong run in recent years. The stock has whipsawed a bit but looks to be getting ready to test 52-week highs. Analyzing the price trend and its strength can be done by using key simple moving averages.

What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, GlaxoSmithKline 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 GlaxoSmithKline options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
GlaxoSmithKline Options	17.35%	3%	0%

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

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

As of today, there is 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 earnings and revenue growth rates, and what that means for Glaxo’s stock.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. The last four quarterly earnings announcement reactions can also help gauge investor sentiment on GlaxoSmithKline’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for GlaxoSmithKline 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)	-28.21%	-26.92%	-15.12%	12.86%
Revenue Growth (Y-O-Y)	-7.20%	-1.91%	-6.99%	-6.76%
Earnings Reaction	0.01%	0.73%	-0.99%	-1.21%

GlaxoSmithKline has seen decreasing earnings and revenue figures over most of the last four quarters. From these numbers, it seems the markets have had mixed feelings about GlaxoSmithKline’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has GlaxoSmithKline stock done relative to its peers, Pfizer (NYSE:PFE), Merck (NYSE:MRK), Novartis (NYSE:NVS), and the overall sector?

	GlaxoSmithKline	Pfizer	Merck	Novartis	Sector
Year-to-Date Return	21.56%	14.36%	18.32%	15.97%	16.73%

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

Conclusion

GlaxoSmithKline is a health care group that engages in many aspects of pharmaceutical business around the world. The stock has been trending higher over the last few years, and is now trading near 52-week highs. Over the last four quarters, earnings and revenue figures have been declining, which has produced mixed feelings among investors. Relative to its peers and sector, GlaxoSmithKline has been a year-to-date performance leader. Look for GlaxoSmithKline to OUTPERFORM.

Fossil - Solid Earnings Report Could Send Shares To Fresh All-Time Highs

Shares of Fossil Group (FOSL) are seeing a large jump upwards on Tuesday after the company reported a strong set of second quarter results.

With shares trading around all-time highs at the moment, I remain cautious despite the solid operating performance and the shareholder friendly strategy. The valuation is not compelling enough for me to pick up shares at the moment.

Second Quarter Results

Fossil generated second quarter revenues of $706.2 million, up 11.0% on the year before. Revenues came in ahead of consensus estimates of $691.2 million.

Net earnings rose by 18.5% to $67.7 million. Earnings per share rose by 25% on the back of share repurchases in recent time, and came in at $1.15 per share.

Second quarter earnings saw an $0.08 per share benefit as a result of a shift of marketing and systems-related expenses into the third quarter. Even when adjusting for this benefit, earnings comfortably beat consensus estimates of $0.93 per share.

CEO Kosta Kartsotis commented on the developments during the quarter, "We are pleased to continue our positive momentum and report record second quarter results that surpassed both our revenue and earnings expectations."

Looking Into The Results...

The solid revenue growth was slightly tempered by adverse currency movements which shaved off $2.3 million in second quarter revenues.

US wholesale revenues were up by 4.2%. Excluding the negative $15 million impact of sales being shifted into the first quarter, revenue growth would be quite impressive.

European revenues were up by 15.0% driven by strength in the UK and Germany. Asia-Pacific revenues rose by 17.7% while direct-to-consumer revenues rose by 16.1% driven by store openings and same-store sales growth.

Operating margins rose by 130 basis points to 15.1% on the back of a 190 basis point improvement in gross margins which topped at 57.9%. Gross margins rose on the back of an improved sales mix, and the acquisition of Skagen, among other! s.

...And The Remainder Of The Year

Third quarter sales are expected to increase between 12.5% and 13.5%. As such, revenues are expected to come in between $770 million and $776 million. Operating margins are expected to come in between 15.0% and 15.5%, while diluted earnings per share are expected to come in between $1.30 and $1.37 per share. This includes an $0.08 charge related to the shift from second quarter expenses.

The third quarter revenue guidance came in ahead of estimates of $761 million. The earnings guidance was a bit soft compared to consensus estimates of $1.46 per share.

Full-year sales are expected to increase between 11.0% and 12.0%. Operating margins are expected to come in between 16.75% and 17.25% resulting in diluted earnings per share between $6.15 and $6.35 per share.

Valuation

Fossil ended its second quarter with $313.3 million in cash and equivalents. The company operates with $341 million in total debt, for a rather flat net cash position.

Revenues for the first six months of the year came in at $1.39 billion, up 13% on the year before. Net income rose by 21% to $140 million, or $2.36 per share. Full-year revenues could come in around $3.2 billion while earnings could come in between $360 and $370 million.

Factoring in gains of 20% on the back of the earnings release, with shares exchanging hands around $127 per share, the market values Fossil at $7.4 billion. As such, operating assets are valued around 2.3 times annual revenues and 20 times annual earnings.

Fossil does not pay a dividend at the moment.

Some Historical Perspective

Long-term holders in Fossil have seen great returns over the past decade despite witnessing quite some volatility in recent years.

Shares fell from highs of $40 in 2007 to lows of $10 in 2009. Shares have risen to highs around $130 in 2011 and 2012 before they fall back a bit. The action following the strong earnings report suggests the stock will make a new attempt to set fresh! all-time! highs.

Between 2009 and 2012, Fossil has increased its annual revenues by a cumulative 85% to $2.9 billion. Net earnings advanced by 150% to $343 million.

Investment Thesis

Investors are impressed with Fossil's strong results over the past quarter and the solid outlook for the remainder of the year. As a result, Fossil raised its full-year earnings outlook to $6.15-$6.35 per share. This compares to consensus estimates of $6.17 per share.

The company's strategy to reposition low-priced jewelry with an "affordable luxury" image has boosted demand for Fossil's products, notably for its watches and handbags. Fossil sells popular brands including Diesel, DKNY, Emporio Armani and Michael Kors (KORS).

The solid financial state of the company has allowed Fossil to rapidly grow across the globe, while repurchasing its own shares. The decision to spend $169 million to repurchase 1.7 million shares during the second quarter, has been a great investment as shares have risen almost 30% ever since. The remaining $843 million of shares being authorized for further repurchases allow the company to retire 11% of its outstanding share base at current prices.

Investors are applauding Fossil's management for a very strong operating performance accompanied by a shareholder-friendly financial strategy. After the large jump following the release of the earnings report, I see few reasons to pick up shares at this point in time. Despite the solid operating performance in recent years, the current valuation at 20 times this year's estimated earnings is not compelling enough for me to pick up shares around their all-time highs.

Source: Fossil - Solid Earnings Report Could Send Shares To Fresh All-Time Highs

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Market Awaits 'Unprecedented' Reforms In China

Next month, China's leaders will outline at the Communist Party's Third Plenum precisely how they plan on slowly cracking the door open on the economy.

"We are expect some positive reform info from Communist Party leaders," said Marc Tommasi, head of international investment strategy for Manning & Napier in Rochester, NY. "I've been more constructive on China this year than consensus. I'm  not yet concerned about growth deceleration," he said. "I think a lot of that has been engineered by the government."

What are investors going to learn next month about China's new growth strategy?

Yu Zhengsheng, member of the Standing Committee of the Political Bureau of the Party's Central Committee, said the meeting would be about "unprecedented" reforms. "The reforms this time will be broad, with major strength, and will be unprecedented," Xinhua news agency reported Yu saying.

Yu's comments on the reforms are among the first from China's leaders about the Third Plenum, where President Xi Jinping is expected to press for greater economic reforms. The idea is to steer China from a reliance on government investment to a more balanced growth model driven more by consumption, services and innovation rather than exports. The meeting will mark the third time the 200-member Central Committee has gathered since a leadership transition last March.

China's economic challenges are growing, and so most pundits agree that changing the way China does business is critical for containing risks and achieving sustainable growth. The upcoming meeting provides an opportunity for the new leadership to provide guidance both to Chinese businesses and foreign investors on how Beijing plans to address these challenges.

Anoop Singh, the International Monetary Fund's director of the Asia Pacific Department, has his "wish list" for the Third Plenum.

New financial reforms are essential to contain the buildup of risks, enhance the efficiency of investment, and boost household capital income, he wrote in a blog post on the IMF website on Oct. 22.

Another issue was structural in nature. Structural measures include leveling the playing field within and across sectors through deregulation and easing barriers to entry — particularly in services.

"The biggest risk in China is politics," said Chris Ruffle, a China fund manager at the Open Door Capital Group in Shanghai.

After 30 years of unprecedented expansion, during which nearly 500 million people have been raised out of poverty, China's growth model is under stress. Pressure points are beginning to develop in the financial sector and in local government finances as state's spend their way to full employment.  While China tries to shift away from its export dependent economic model, the population is aging and the safety net is mediocre at best.  China has to build out those social services, and all that entails, from pension fund services and better  health care delivery.

Top Gold Stocks For 2014

China's strains arise from a development strategy heavily reliant on government investment in infrastructure and the relocation of surplus labor from the countryside to urban factories.

"Implementing these significant measures is a tall order and involves tough choices, including possibly accepting slower growth as the economy adjusts to the new path," wrote Singh.  "Starting now will allow China to sustain its convergence to the level of higher income economies and deliver the benefits of growth to an ever-wider cross section of its population in a way that's environmentally sustainable and sound. But delay reforms and the challenges grow larger, raising the probability of stalled convergence," he wrote.

Where Corporations Want To Invest

Hot Companies To Own In Right Now

Earlier this week, the New York Post reported that high-end retailer Saks (NYSE: SKS  ) had brought in Goldman Sachs to explore a possible sale. The company also reported its first-quarter results, and is looking fairly strong. Comparable sales grew, and earnings per share�hit analyst expectations. The combination of quarterly results and sale rumors conspired to push the stock up 11% yesterday, and overnight it rose another 18%. Is this the right time for Saks to sell, and if so, what should investors be on the lookout for?

Saks on the auction block?
There are a few reasons that a firm would want to go private, but Saks' biggest motivating factor has to be its behind-the-scenes operation. Last quarter, operating margin dropped down to 7% from 8.6% the year before. Almost all of that fall came from an increase in selling, general, and administrative costs.

A prospective sale would likely involve a private equity firm looking to capitalize on Saks' strong name and solid fundamentals. That firm would likely cut back on employees and other costs, generating a quick increase in profit. Studies have shown that when private equity is involved in a public company takeover, employment drops by 10% within two years.

Hot Companies To Own In Right Now: Response Genetics Inc.(RGDX)

Response Genetics, Inc., a life sciences company, engages in the research, development, marketing, and sale of clinical diagnostic tests and pharmacogenomic tests for use in the treatment of cancer primarily in the United States, Asia, and Europe. The company develops genetic tests that measure predictive factors for tumor response in tumor tissue samples. It offers tests for non-small cell lung cancer under the ResponseDX: Lung trade name; colorectal cancer under the ResponseDX: Colon trade name; and gastric and gastroesophageal cancer under the ResponseDX: Gastric trade name. The company also develops tests for other types of cancer that identify genetic profiles of tumors that recur after surgery. Response Genetics, Inc. offers its products through its sales force to community based oncologists, hospitals, and physician offices. In addition, it provides pharmacogenomic testing services to pharmaceutical companies. The company was formerly known as Bio Type, Inc. and cha nged its name to Response Genetics, Inc. in August 2000. Response Genetics, Inc. was founded in 1999 and is headquartered in Los Angeles, California.

Hot Companies To Own In Right Now: Animas Resources Ltd (ANI.V)

Animas Resources Ltd., a mineral resource company, engages in the acquisition and discovery of mineral deposits in Mexico. It primarily focuses on Santa Gertrudis precious metal and related deposits, and prospects. Animas Resources Ltd. was formerly known as Sonora Copper LLC and changed its name to Animas Resources Ltd. in July 2007. The company was incorporated in 2005 and is based in Vancouver, Canada.

Best Financial Companies To Own In Right Now: Iris Biotechnologies(IRSB.OB)

Iris BioTechnologies Inc., a development stage life science company, focuses on developing solutions for the detection and monitoring of monogenic and complex genomic diseases. The company provides a Nano-BioChip gene expression kit using a convergence of scientific disciplines in nanotechnology, semiconductor manufacturing, microfluidics, chemistry, molecular biology, genetics, genomics, and information technology; and BioWindows artificial intelligence system, a database comprising data fields for patient demographics information, personal and family medical history, and gene expression information. Its products assist in establishing the foundation for personalized medicine for the treatment of breast cancer. The company also intends to use its product platform to diagnose and treat patients with neurological disorders, heart disease, diabetes, and other gene-related metabolic problems. In addition, it is working on gene markers for CancerChip and specific markers assoc iated with prostrate, lung, liver, kidney, and ovarian cancers, as well as genes associated with schizophrenia, Alzheimer disease, autoimmune system disorders, and metabolic and drug metabolism disorders. The company was founded in 1999 and is headquartered in Santa Clara, California.

Hot Companies To Own In Right Now: United Financial Bancorp Inc.(UBNK)

United Financial Bancorp, Inc. operates as a holding company for United Bank that provides various banking products and services in Massachusetts. It provides a range of deposit products, including demand accounts, NOW accounts, money market accounts, savings accounts, retirement accounts, and certificates of deposits. The company?s loan portfolio consists of one- to four-family residential mortgage loans, commercial real estate loans, construction loans, home equity loans and home equity lines of credit, commercial and industrial loans, and automobile loans, as well as consumer loans comprising secured and unsecured personal loans, motorcycle and motor home loans, manufactured housing, boat loans, and pool and spa loans. In addition, it offers non-deposit investment products and financial planning services comprising mutual funds; debt, equity, and government securities; insurance products; fixed and variable annuities; financial planning for individual and commercial cu stomers; and estate planning services. Further, the company engages in buying, selling, and holding investment securities; and holding real estate assets. It operates 22 full-service banking offices and 2 financial services facilities. The company was founded in 1882 and is headquartered in West Springfield, Massachusetts.

Hot Companies To Own In Right Now: Community 1St Bk Ca (CFBN.OB)

Community 1st Bank provides various banking products and services to small and middle-market businesses, professionals, and not for profit organizations in California. The company offers various deposit products comprising checking accounts, savings accounts, health savings accounts, minor savings accounts, certificates of deposits, interest bearing demand accounts, and time deposits. It also provides a range of loan products, including commercial real estate financing, SBA loans, business credit lines, business term loans, construction loans, and business letters of credit, as well as consumer loans. In addition, the company offers personal and business credit cards, deposit courier services, and online banking, as well provides remote deposit capture and cash management accounts. It operates 2 branches in Roseville and Auburn. The company was incorporated in 2005 and is headquartered in Auburn, California.

Hot Companies To Own In Right Now: Web.com Group Inc(WWWW)

Web.com Group, Inc. provides Internet services for small- to medium-sized businesses (SMBs) in North America, South America, and the United Kingdom. It provides .com, .net, .co, .org, and .info domains, as well as domain services, including domain name registration, domain name transfers, domain name renewal, domain expiration protection, and domain privacy services; develops and supports a subscription Web service package that includes the tools and functionality necessary for a business to create and maintain online presence, as well as provide tutorials and tools for customers to edit and manage their sites. The company?s primary Do It For Me subscription offering comprise eWorks! XL, which provides domain name registration, initial site design, technical support, Webmail, online Web tools, and Internet scorecard; custom Website design services comprising map and directions pages, external links pages, Website statistics, database applications, password security, and e mail services; and social media and call center services. It also provides various Do-It-Yourself Website building and marketing solutions for SMBs, such as hosting services, Website design tools, email marketing tools, and LogoYes design and brand building tools. In addition, the company offers online marketing services, including search engine optimization, local and national search engine marketing, subscription-based services, budget-based search engine marketing, and click search engine marketing services; lead generation services consisting of Leads by Web.com to contractors, homebuilders, and remodeling professionals; and eCommerce merchant services. Web.com Group, Inc. markets its products and services through outbound and inbound telesales, online channel, affiliate network and private label partners, distribution partners, resellers, and direct sales. The company was incorporated in 1999 and is headquartered in Jacksonville, Florida.

Advisors' Opinion:

• [By Alex Planes]

  What: Shares of Web.com (NASDAQ: WWWW  ) rose more than 10% this morning -- and are still up around a 9% gain -- after the company surprised the Street with better-than-expected quarterly results and solid guidance for the rest of 2013.

• [By CRWE]

  Web.com Group, Inc. (Nasdaq:WWWW), a leading provider of internet services and online marketing solutions for small- and medium-sized businesses, will report its third quarter results for the fiscal period ended September 30, 2012 after the U.S. financial markets close on October 25, 2012.

Hot Companies To Own In Right Now: AuthenTec Inc.(AUTH)

AuthenTec, Inc. provides mobile and network security solutions for enterprise, government, and consumer markets worldwide. The company operates in two segments, Smart Sensor Solutions and Embedded Security Solutions. The Smart Sensor Solutions segment designs, develops, and sells mixed-signal fingerprint sensor semiconductors primarily used in the personal computer and mobile device markets; touch-based sensors for government and access control applications; sensors that enable users to access and control various functions on an electronic device; fingerprint sensor chipsets and modules; USB fingerprint readers; and identity management software. The Embedded Security Solutions segment provides a range of embedded security solutions, including hardware intellectual property (IP) and software for implementing in Internet protocols, such as IPsec, MACsec, and SSL/TLS for communications protection; digital rights management for multimedia content piracy prevention; and functio ns comprising secure boot and hardware-based key protection for computing platform integrity. The company primarily sells its products through direct sales force, independent sales representatives, and distributors to original equipment manufacturers, original design manufacturers, contract manufacturers, software application vendors, and service providers. AuthenTec, Inc. was founded in 1998 and is headquartered in Melbourne, Florida.

Hot Companies To Own In Right Now: First Capital Bancorp Inc.(VA)

First Capital Bancorp, Inc. operates as the holding company for First Capital Bank that offers a range of banking and related financial services to small and medium-sized businesses, professionals, and individuals in Richmond, Virginia metropolitan area. The company?s deposit products include checking, individual retirement, negotiable order of withdrawal, and savings accounts, as well as other time deposits of various types, ranging from daily money market accounts to longer-term certificates of deposit. Its loan portfolio comprises short-to-medium term commercial loans, such as secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; and consumer loans comprising secured and unsecured loans for financing automobiles, home improvements, education, and personal investments. The company also originates fixed and floating-rate mortgage, and real estate construction and acquisition loans. In addition, it offers safe deposi t boxes, cash management services, traveler?s checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, online banking services, small and medium-sized businesses courier services, and automated teller machine services. As of May 10, 2011, the company operated seven branches. First Capital Bancorp, Inc. is headquartered in Glen Allen, Virginia.

AMR Corp., US Airways Surge as Merger Support Grows

Texas isn’t the only state backing the merger of AMR Corp. (AAMRQ), the parent of American Airlines, and US Airways (LCC). Oklahoma has now voiced its support for the combination.

Agence France-Presse/Getty Images

Tulsa World reports:

Oklahoma Attorney General Scott Pruitt is continuing to press for the merger of American Airlines and US Airways, telling a court in Washington, D.C., that he intends to file for “friend of the court” status for the upcoming trial in an antitrust lawsuit brought by the Justice Department.

Pruitt’s announcement Wednesday came the same day as mayors of seven cities, all with American and US Airways hubs, sent a letter to U.S. Attorney General Eric Holder asking him to withdraw the lawsuit.

5 Best Stocks To Own For 2014

Michael Linenberg also raised US Airways to Buy from Hold. Analyst Michael Linenberg and team explain:

We are raising our rating on US Airways’s shares from Hold to Buy based on an improved fundamental outlook that, in our opinion, transcends the potential uncertainty surrounding the company’s proposed merger with American which has been blocked by the DOJ. The improvement observed in the Sep Q (e.g. pretax margin expanded 4 points to 9.5%) combined with material revisions to our 2013 and 2014 EPS estimates underlie a revised 12 month price target of $30 implying upside of 40% for LCC shares. We believe that math is too compelling to disregard despite regulatory uncertainty that may not be resolved until early 2014.

Shares of AMR Corp. have gained 9.7% to $6.91–just 3.4% from its 52-week high–while US Airways has risen 5.5% to $22.57. Southwest Airlines (LUV) has advanced 3.4% to $16.96, Delta Air Lines (DAL) has jumped 2.6% to $26.27 and JetBlue Airways (JBLU) is up 2.9% at $12.31.

Top Medical Stocks To Watch For 2014

Investors can be forgiven in thinking that Boston Scientific's (NYSE: BSX  ) on the right track. After all, this medical device stock has soared more than 58% year-to-date, rising as one of the top performers in the medical device industry in 2013. Yet underneath that rise in shares, Boston Scientific's hiding a struggling business and lagging sales.

Boston Scientific's interventional cardiology and cardiac rhythm management businesses -- its two top segments that make up more than 50% of total company revenue -- have slumped recently and saw sales decline in 2012. With pricing pressures ramping up and tough competition abounding, this company's struggling to turn its financials around. What does Boston Scientific need to do to look good as an investment again? Motley Fool contributor Dan Carroll tells you what Boston Scientific needs to focus on if this company wants to secure a bright future and reward shareholders with more of this year's stock gains.

Top Medical Stocks To Watch For 2014: 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 Bryan Murphy]

  The difference between Growlife's leadership and, say that of competitors like Cannabis Science Inc. (OTCMKTS: CBIS) or Medical Marijuana Inc. (OTCMKTS: MJNA), has been relatively well documented here at the SmallCap Network site. I think the way I - well, someone else - put it back on June 25th says it best...."Growlife is sort of the demure girl in the corner who doesn't do shots off her navel in the bar." It may not have sizzle, but it does have substance.

Top Medical Stocks To Watch For 2014: Paradigm Medical Industries Inc (PDMI)

Paradigm Medical Industries, Inc., incorporated in October 1989, develops, manufactures, markets and sells ophthalmic diagnostic instrumentation and related accessories, including disposable products. The diagnostic products that the Company manufacturers, markets and sells consist of the P60 UBM Ultrasound Biomicroscope, two perimeters - the LD 400 and the TKS 5000, and the Blood Flow Analyzer. The diagnostic products that the Company markets and sells, which are manufactured by its Italian partner, Costruzione Strumenti Oftalmici srl (CSO), are the Paramax, corneal topographers - the Paravue 300 and the Surveyor 500, and the Paracam 1000. The P60 UBM Ultrasound biomicroscope is the third-generation of UBM devices. The CSO product to be distributed and sold by the Company is the Paramax. Other CSO products to be sold by the Company are the Paravue 300, a corneal topographer with the ability to display live images on a computer monitor; the Surveyor 500, a corneal topographer with a rotating Scheimpflug camera with placido disk, and the Paracam 1000, a specular microscope for endothelial cell evaluations.

Diagnostic Eye Care Products

The Company�� diagnostic eye care products include blood flow analyzer, dicon perimeters, P60 UBM ultrasound biomicroscopes, and Paramax and other products manufactured by Costruzione Strumenti Oftalmici srl. The blood flow analyzer device measures not only intraocular pressure but also pulsatile ocular blood flow, the reduction of which may cause nerve fiber bundle death through oxygen deprivation thus resulting in visual field loss associated with glaucoma. The Company's blood flow analyzer is a portable automated in-office system that presents a method for ocular blood flow testing for the ophthalmic and optometric practitioner. The device is a portable desktop system that utilizes an Air Membrane Applanation Probe (AMAP), which can be attached to any model of standard examination slit lamp, which is then placed on the cornea of the patient! 's eye to measure the intraocular pressure within the eye.

Dicon perimeters consist of the LD 400 and the TKS 5000, and software consisting of Field Lin FieldView and Advanced Field View. Perimeters are used to determine retinal sensitivity testing the visual pathway. Perimetry is reimbursable worldwide. The Dicon perimeters feature kinetic fixation and voice synthesis in 27 different languages. The LD 400FT, or Fast Threshold Autoperimeter, is the successor to the LD 400. The device is an autoperimeter used to measure patient visual fields. The LD 400FT is identical in hardware to the LD 400 but it uses new software to enable a threshold test. The P60 biomicroscope represents the third-generation of UBM devices. The Paramax is to be sold in North America on an exclusive basis. The Paramax performs tests for the early screening and follow up of pathologies, such as glaucoma, age related macular degeneration, vascular retinal degeneration, and other optic nerve diseases.

Surgical Products

The Company�� surgical products include Precisionist Thirty Thousand, Ocular Surgery Workstation and Photon Laser System. The Precisionist Thirty Thousand is the Company's core phaco surgical technology. As of December 31, 2009, the Precisionist is not manufactured by the Company. The system features a graphic color display and on board computer and graphic user interface linked to a soft key membrane panel for flexible programmable operation. The system provides real-time on-the-fly adjustment capabilities for each surgical parameter during the surgical procedure for high-volume applications. In addition, the Precisionist provides one hundred pre-programmable surgery setups, with a second level of subprogrammed custom modes within each major surgical screen (ultrasound phaco and

irrigation/aspiration modes).

The Ocular Surgery Workstation comprises the base system of the Precisionist

Thirty Thousand and is the first system, to the Company's knowledge,! which us! es the expansive capabilities of today's advanced computer technology to offer seamless open architecture expandability of the system hardware and software modules. The Workstation utilizes an embedded open architecture computer developed for the Company and controlled by a software system developed by the Company that interfaces with all components of the system. Ultrasound, fluidics (irrigation), aspiration, venting, coagulation and anterior vitrectomy (pneumatic) are all included in the base model.

The Photon laser cataract system is designed to be installed as a seamless plug-in upgrade or add-on to the Company's Precisionist' Ocular Surgery Workstation. The Photon laser utilizes the on board microprocessor computer of the Workstation to generate short pulse laser energy developed through the patented LCP to targeted cataract tissue inside the eye, while simultaneously irrigating the eye and aspirating the diseased cataract tissue from the eye. In addition to the cataract surgery equipment, the Company's surgical systems are designed to utilize accessory instruments and disposables. These include replacement ultrasound tips, sleeves, tubing sets and fluidics packs, instrument drapes and laser cataract probes. The Company focuses on expanding its disposable accessories as it penetrates the cataract surgery market and expands the treatment applications for its Workstation.

The Company competes with Sonomed, Tomey, Nidek, OTI and Quantel.

Hot Value Companies To Watch For 2014: Spectrum Pharmaceuticals Inc.(SPPI)

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

Advisors' Opinion:

• [By Rich Smith]

  Spectrum Pharmaceuticals (NASDAQ: SPPI  ) has found itself a new Executive Vice President, a new Chief Financial Officer, and a new Principal Accounting�Officer. They're all the same person.

Top Medical Stocks To Watch For 2014: Inovio Pharmaceuticals Inc (INO)

Inovio Pharmaceuticals, Inc., incorporated on June 29, 1983, is engaged in the development of a new generation of vaccines, called synthetic vaccines, focused on cancers and infectious diseases. The Company's SynCon technology enables the design of universal vaccines capable of providing cross-protection against existing or changing strains of pathogens, such as influenza and human immunodeficiency virus (HIV). The Company's electroporation delivery technology uses brief, controlled electrical pulses to increase cellular uptake of the vaccine. Its clinical programs include cervical dysplasia (therapeutic), avian influenza (preventive), prostate cancer (therapeutic), leukemia (therapeutic), hepatitis C virus (HCV) and HIV vaccines. It is advancing preclinical research and clinical development for a universal seasonal/pandemic influenza vaccine, as well as preclinical work for other products, including malaria and prostate cancer vaccines. Its partners and collaborators include University of Pennsylvania, Drexel University, National Microbiology Laboratory of the Public Health Agency of Canada, Program for Appropriate Technology in Health/Malaria Vaccine Initiative (PATH/MVI), National Institute of Allergy and Infectious Diseases (NIAID), Merck, ChronTech, University of Southampton, United States Military HIV Research Program (USMHRP), the United States Army Medical Research Institute of Infectious Diseases (USAMRIID) and HIV Vaccines Trial Network (HVTN). As of December 31, 2011 it owned 16.1% interest in VGX Int��.

Inovio�� Solution

The Company�� synthetic vaccine platform consists of its SynCon vaccine design process and electroporation delivery technology. It has developed a preclinical and clinical stage pipeline of vaccines. The Company�� synthetic vaccines are designed to prevent a disease (prophylactic vaccines) or treat an existing disease (therapeutic vaccines). Its synthetic vaccine consists of a deoxyribonucleic acid (DNA) plasmid encoding a selected antigen! (s), which is introduced into cells of humans or animals with the purpose of evoking an immune response to the encoded antigen. The Company�� synthetic vaccines are designed to generate specific antibody and/or T-cell responses.

The Company�� SynCon technology provides processes that employ bioinformatics, which combine extensive genetic data and sophisticated algorithms. Its design process uses the genetic make-up of a common antigen(s) from multiple strains of a virus within a viral sub-type or taxonomic group (family) of pathogens, such as HIV, hepatitis C virus (HCV), human papillomavirus (HPV), influenza and other diseases to synthetically create a new antigen for the desired pathogen target that does not exist in nature. Its synthetic vaccine candidates are being delivered into cells of the body using its electroporation (EP) DNA delivery technology.

Cancer Synthetic Vaccines

The Company has two broad types of cancer vaccines: preventive (or prophylactic) vaccines, which are intended to prevent cancer from developing in healthy people, and treatment (or therapeutic) vaccines, which are intended to treat an existing cancer by strengthening the body�� natural defenses against the cancer. Two types of cancer preventive vaccines are available in the United States. The United States Food and Drug Administration (the FDA) has approved two vaccines, Gardasil and Cervarix that protect against infection by the two types of HPV-types 16 and 18-that cause approximately 70% of all cases of cervical cancer worldwide. In addition, Gardasil protects against infection by two additional HPV types, 6 and 11, which are responsible for about 90% of all cases of genital warts in males and females but do not cause cervical cancer.

Cervarix manufactured by GlaxoSmithKline, is composed of virus-like particles (VLPs) made with proteins from HPV types 16 and 18. Cervarix is approved for use in females��ages 10 to 25 for the prevention of cervical cancer caused by! HPV type! s 16 and 18. Gardasil manufactured by Merck, is approved for use in females for the prevention of cervical cancer, and some vulvar and vaginal cancers, caused by HPV types 16 and 18 and for use in males and females for the prevention of genital warts caused by HPV types 6 and 11. The vaccine is approved for these uses in females and males ages 9 to 26. The FDA has also approved a cancer preventive vaccine that protects against hepatitis B virus (HBV) infection.

Inovio�� VGX-3100 is designed to raise immune responses against the E6 and E7 genes of HPV types 16 and 18 that are present in both pre-cancerous and cancerous cells transformed by these HPV types. E6 and E7 are oncogenes that play an integral role in transforming HPV-infected cells into cancerous cells. In March 2011, it initiated a randomized, double-blind Phase II study of VGX-3100 delivered using the CELLECTRA intramuscular electroporation device in women with HPV Type 16 or 18 and diagnosed with, but not yet treated for, cervical intraepithelial neoplasia (CIN) 2/3. The study is designed to enroll 148 subjects. In January 2011, it announced the publication of a scientific paper in the journal Human Vaccines detailing potent immune responses in a preclinical study of its SynCon vaccine for prostate cancer targeting two antigens, prostate specific antigen (PSA) and prostate specific membrane antigen (PSMA).

In January 2011, the Company announced the regulatory approval of a Phase II clinical trial (WIN Trial) to treat leukemia utilizing its new ELGEN 1000 automated vaccine delivery device. The single dose level, Phase II study, called WT1 immunity via DNA fusion gene vaccination in haematological malignancies by intramuscular injection followed by intramuscular electroporation. Cancer Vaccines encodes for hTERT, an antigen related to non-small cell lung, breast and prostate cancers. The vaccine is delivered using its electroporation delivery technology.

Infectious Disease Synthetic Vaccines

In Marc! h 2011, the Company announced the initiation of a follow-on open label, single dose Phase II clinical study in collaboration with ChronTech of the ChronVac-C HCV DNA vaccine delivered using its electroporation technology in treatment naive HCV infected individuals. Its HIV vaccines consist of candidates for HIV prevention, as well as therapy or treatment. PENNVAX-B is designed to target HIV clade B (most commonly found in the United States, North America, Australia and the European Union (EU). PENNVAX-G is designed to target HIV clades A, C and D, which are more commonly found in Asia, Africa, Russia and South America. This Phase I clinical study of PENNVAX-B (HVTN-080) vaccinated 48 healthy, HIV-negative volunteers to assess safety and levels of immune responses generated by Inovio�� PENNVAX-B vaccine delivered with its CELLECTRA electroporation device. PENNVAX-B is a SynCon vaccine that targets HIV gag, pol, and env proteins.

The Company�� VGX-3400X targets H5N1. The vaccine consists of three distinct DNA plasmids coded for a consensus hemagglutinin (HA) antigen derived from different H5N1 virus strains; a consensus neuraminidase (NA) antigen derived from different N1 sequences; and a consensus nucleoprotein (NP) fused to a small portion of the m2 protein (m2E) based on a broader cross-section of influenza viruses in addition to H5N1 and H1N1. Conventional vaccines are strain-specific and have limited ability to protect against genetic shifts in the influenza strains they target. They are therefore modified annually in anticipation of the next flu season�� new strain(s). It is focused on developing DNA-based influenza vaccines able to provide broad protection against known as well as newly emerging, unknown seasonal and pandemic influenza strains.

Animal Health/Veterinary

VGX Animal Health, Inc. (VGX AH), a majority-owned subsidiary, has licensed LifeTide, a plasmid-based growth hormone releasing hormone (GHRH) technology for swine. LifeTide is one of onl! y four DN! A-based treatments approved for use in animals and is the only DNA-based agent delivered using electroporation that has been granted marketing approval (Australia). VGX AH is also developing a GHRH-based treatment for cancer and anemia in dogs and cats. It is developing a synthetic vaccine for foot-and-mouth disease (FMD) administered by its vaccine delivery technology. The FMD virus is one of the most infectious diseases affecting farm animals, including cattle, swine, sheep and goats, and is a serious threat to global food safety.

The Company competes with Crucell N.V, Sanofi-Aventis, Novartis, Inc., GlaxoSmithKline plc, Merck, Pfizer, AstraZeneca, Inc., Novartis, Inc., MedImmune and CSL.

Advisors' Opinion:

• [By Sean Williams]

  No fairytale ending
  Fairytale endings work great in the movies, but you rarely see them come to fruition in the real world. Small-cap biopharmaceutical Inovio Pharmaceuticals (NYSEMKT: INO  ) has seen shares nearly triple since April on the heels of multiple intriguing studies, but will the glass slipper fit over the long term?

• [By Sean Williams]

  On the clinical data front, Alnylam Pharmaceuticals (NASDAQ: ALNY  ) and Inovio Pharmaceuticals (NYSEMKT: INO  ) both put investors in their happy place.

Top Medical Stocks To Watch For 2014: Dyadic International Inc (DYAI)

Dyadic International, Inc. (Dyadic), incorporated in September 2002, is a holding company. The Company is a global biotechnology company. The Company has operations at the United States and the Netherlands. Dyadic uses its technologies to conduct research and development (R&D) and commercial activities for the discovery, development, manufacture and sale of enzymes and proteins for the bioenergy, industrial enzyme, and biopharmaceutical industries. The Company derives all of its revenues from the licensing of its technologies, the sale of its enzymes and conducting research and development (R&D) activities for third parties. The Company operates in two segments: the United States operations and The Netherlands operations. The United States segment includes a subsidiary in Poland.

The United States operating segment is a developer, manufacturer and distributor of enzyme products, proteins, peptides and other bio-molecules derived from genes and a collaborative licensor of enabling technologies for the development and manufacturing of biological products and use in R&D. The Netherlands operating segment is also a researcher and developer of enzyme products, proteins, peptides and other bio-molecules derived from genes and, to date, has mainly invested in R&D activities.

Dyadic�� R&D activities focus on its fungal strains and associated technologies. Dyadic uses its Trichoderma and C1 fungal strains in the production of its industrial enzymes. Dyadic manufactures and sells liquid and dry enzyme products to global customers for use within the animal feed, pulp and paper, starch and alcohol, food and brewing, textiles, and biofuels industries.

Dyadic also utilizes a technology platform based on its patented and C1 fungus (the C1 Platform Technology), which enables the development and manufacture of proteins and enzymes for diverse market opportunities. The C1 Platform Technology can also be used to screen for the discovery of novel genes and proteins. The C1 Platf! orm Technology also has the potential of developing and producing other biological products such as antibodies, vaccines, proteins and polypeptides for the biopharmaceutical industry.

Top Medical Stocks To Watch For 2014: Uroplasty Inc (UPI)

Uroplasty, Inc., incorporated in January 1992, is a medical device company that develops, manufactures and markets products for the treatment of voiding dysfunctions. The Company�� primary focus is on two products: the Urgent PC Neuromodulation system and Macroplastique Implants. The Urgent PC system is a United States Food and Drug Administration (FDA)-approved minimally invasive, office-based neuromodulation therapy for the treatment of overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency, and urge incontinence; and Macroplastique Implants a urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency (ISD). Outside of the United States, the Company�� Urgent PC is also approved for treatment of fecal incontinence, and Macroplastique is also approved for treatment of male stress incontinence and vesicoureteral reflux.

Urgent PC Neuromodulation System

Using a small-gauge needle electrode inserted above the ankle, the Urgent PC System delivers electrical impulses to the tibial nerve that travel to the sacral nerve plexus, a control center for pelvic floor and bladder function. Components of the Urgent PC system include a hair-width needle electrode, a lead set, and an external, handheld, battery-powered stimulator. For each 30-minute, office-based therapy session, the physician or other qualified healthcare provider inserts the needle electrode in the patient�� lower leg and connects the electrode to the stimulator. Typically, a patient undergoes 12 consecutive weekly treatment sessions, with follow-up maintenance treatments as required to sustain the therapeutic effect. The Company has received regulatory clearances for sale of the Urgent PC system in the United States, Canada and Europe. It also has launched its second generation Urgent PC system.

Macroplastique

Macroplastique is designed to restore the patient�� urinary contine! nce immediately following treatment. Macroplastique is a soft-textured, permanent implant injected, under endoscopic visualization, around the urethra distal to the bladder neck. It is a composition of heat vulcanized, solid, soft, irregularly shaped polydimethylsiloxane (solid silicone elastomer) implants suspended in a biocompatible excretable carrier gel. Macroplastique does not degrade, is not absorbed into surrounding tissues and does not migrate from the implant site. The Company has sold Macroplastique for several urological indications in over 40 countries outside the United States.

Other Uroplasty Products

The Company markets outside of the United States minimally invasive products to address fecal incontinence. Its PTQ Implants offer minimally invasive, soft-textured permanent implant for treatment of fecal incontinence. The PTQ Implants are implanted circumferentially into the submucosa of the anal canal, creating a bulking and supportive effect similar to that of Macroplastique injection for the treatment of stress urinary incontinence. The PTQ is Conformite Europeenne (CE) marked and is sold outside the United States in various international markets. The Urgent PC is also CE marked and sold outside of the United States for the treatment of fecal incontinence. In addition to urological applications, the Company markets its tissue bulking material outside the United States for otolaryngology vocal cord rehabilitation applications under the trade name VOX Implants. In the Netherlands and the United Kingdom only, the Company distributes certain wound care products in accordance with a distributor agreement.

The Company competes with Pfizer Inc., Johnson and Johnson, Novartis, Allergan, GlaxoSmithKline, Carbon Medical Technologies, BioForm, Inc., Q-Med AB and Contura.

Raytheon Wins Contract to Build the President's Phone Network

The Department of Defense awarded Raytheon (NYSE: RTN  ) two contracts on Monday worth a combined $48.2 million.

In the larger of the two awards, Raytheon's Company Network Centric Systems unit will receive $34 million as a contract modification funding continued development and testing of engineering development models for air and ground fixed and transportable "command post terminals" for the Presidential and National Voice Conferencing (PNVC ) communications system. PNVC is "a satellite-based, worldwide, survivable, secure, and near toll-quality voice conferencing capability for the President, Secretary of Defense, Chairman, Joint Chiefs of Staff, and other senior national/military leaders." Work on this contract should be completed by October 2013.

Raytheon's smaller award gives its Integrated Defense System unit a $14.2 million cost-plus-fixed-fee delivery order to upgrade the Navy's AN/AQS-20A mine hunting sonar with high-frequency, wide-band, forward-looking sonar and multi-function side-looking sonar and associated components. Raytheon will work on this contract through September 2014.

 

Vanguard’s Davis: Persistent Level of U.S. Debt ‘Biggest Issue of Our Lifetime’

In an early morning keynote address Thursday, Vanguard Chief Economist Joe Davis suggested that the “biggest issue of our lifetime” is how the country deals with the persistent imbalance between our spending and our revenue, an imbalance that he suggested will not get any better for a very long time absent any tax reform.

In an interview after his presentation at Morningstar’s annual ETF Invest conference in Chicago, Davis was cautiously optimistic that one of the “viable bipartisan plans” that have been floated to fix that imbalance can be implemented.

Wistfully recalling 2011, when he said “we were close to a grand bargain,” he argued that a compromise “is needed to preserve the sustainability” of our still-fragile economic recovery.

“By all of us giving up something,” he said of plans like the Bowles-Simpson deficit reduction plan, “we all win.” If self-interest isn’t enough for Americans and their leaders to compromise, Davis suggested that “the bond market at the margins may nudge us” toward a deal with the “market’s invisible hand.”

In his speech, he said that one step toward longer-term deficit control would be to institute a balanced budget: “No country in history,” he said, “has ever had a fiscal when crisis when its budget has been balanced.” But he said in the interview that he nevertheless believes the “chances of a fiscal crisis” for the U.S. in the near term are “very low.”

Not so obliquely referencing the economic recovery and the government shutdown, Davis said in his speech and during the interview that the U.S. was still suffering from an “uncertainty tax” whose “removal would have positive effects” on the economy and the markets. He predicted “modest” economic growth next year, but below the Federal Reserve’s expectations for 2014, due to the effects of the uncertainty tax. He divulged that at Vanguard, “we monitor policyuncertainty.com daily” to keep track of the uncertainty signals.

Longer term, five to 10 years out, he sees not only glimmers of hope, but the real possibility that U.S. growth will “come into the light” and return to its historical levels, mentioning that in every decade since George Washington’s first term, the U.S. has had a healthy growth/inflation experience.

Part of the reason for that optimism, he proposed, is that we stand on the cusp of a “third industrial revolution” fueled by technology advances in everything from computing hardware and software to  the Internet, which is “permeating our society like the steam engine and electricity.” Those technologies made possible the first two industrial revolutions beginning in the 18th and 19th centuries, though their adoption took time.

Like the other industrial revolutions, this third one, he suggested, will have “humble beginnings,” arising from a trough of slow economic growth and higher unemployment leading to lower prices and wages, which helps fuel investing in the new technologies. Noting that “80% of the companies in the S&P 500 were founded during recessions or tough economic times,” he described the process as “prices plummet, adoption [of the technology] explodes,” which in turn leads to further innovation, often in places “where we least expect it.”

In the interview, he said that the “pace of global innovation is accelerating,” as evidenced by a surge in new patents worldwide, and helped by the collaborative nature of Internet-based networks.

Yes, for some in society the “creative destruction” that accompany industrial revolutions will be painful — “you can’t sugar-coat creative destruction,” he admitted — but in the long run, society benefits.

One other metric that should be instructive to policymakers: the premium on skilled labor, under which the unemployment rate of the college educated and their income is rapidly diverging from the jobless rate of the only-high-school-educated American. “The cost of education may be rising,” Davis said, “but the retun on education is higher.”

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Check out Morningstar Picks Best ETF Providers for 2013 on ThinkAdvisor.

Top 10 Performing Companies To Own In Right Now

Despite performing well on an operational level and growing sales by more than 10%, several companies in the mining and natural gas sectors failed to impress on the earnings line of their individual income statements. Investors that fail to dive a bit deeper into the results might be scared off during times like this. However, a closer look eases many concerns on a company-specific level.�

Because asset prices fluctuate, the values that they carry on a company's financial statements must be adjusted accordingly. Impairment charges frequently stem from this practice and can affect earnings and the appearance of the balance sheet. During periods of falling commodity prices, like the one metals and natural gas endured in 2012, the effects are expectedly negative. The following video details several companies in the mining and natural gas sectors that felt the ill affects of these account rules.

One company involved in both of these industries is Freeport-McMoRan. After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. FCX had a profitable copper business, and on top of this foray into a new industry it still has to contend with mining industry bellwether BHP Billiton. To help investors determine if Freeport-McMoRan is a buy or a sell, The Motley Fool has compiled a premium research report on the company. Simply click here now to access your copy today.

Top 10 Performing Companies To Own In Right Now: Horiyoshi Worldwide Inc (HHWW)

Horiyoshi Worldwide Inc. (HWI), incorporated on November 3, 2006, through its wholly owned subsidiaries, Horiyoshi the Third Limited and Horiyoshi Worldwide (UK) Limited is engaged in the business of fashion apparel design and distribution. The Company's principal activities are the design and production of the Horiyoshi and Heroes & Demons collections and the operation of its branded retail store in London, England. The Company's products are sold both in the United States and internationally in premium stores, including Harvey Nichols and Saks Fifth Avenue, and in a number of boutique and speciality stores. The Company also sells its products through its branded retail store in London, England and through its Horiyoshi and Heroes & Demons branded Websites.

The Company's product line for the Horiyoshi collection consists of three general categories of goods, which include casual wear for men, casual wear for women, and unisex accessories. The Company's menswear collection features knit cardigans and crew and v-neck sweaters made from wool, silk and cashmere, as well as hooded sweatshirts and t-shirts. The Company's women's wear collection is highlighted by short knit dresses, tank tops, leggings and scarves. The Company's accessories line features a range of jewelry, including rings, earrings, bracelets and pendants. The Company's product line for the Heroes & Demons collection consists of t-shirts for men.

Top 10 Performing Companies To Own In Right Now: Enterprise Bancorp Inc(EBTC)

Enterprise Bancorp, Inc. operates as the holding company for Enterprise Bank and Trust Company that provides various banking products and services primarily in Merrimack Valley and north central regions of Massachusetts, and southern New Hampshire. The company offers deposit products, which include personal interest checking accounts, savings accounts, money market accounts, individual retirement accounts, and term certificates of deposits to the general public; and commercial checking, business and municipal savings accounts, money market and business sweep accounts, and escrow management accounts, as well as checking and simplified employee pension accounts to the employees of its business customers. Its loan portfolio comprises commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and standby letters of credit, as well as equipment lease financing for businesses; and residential mortgage loans, ho me equity loans, residential construction loans on primary residences, secured and unsecured personal loans, and lines of credit to individuals. In addition, the company provides investment advisory and management services, including brokerage, trust, and management of various strategic investment portfolios to individuals, family groups, businesses, trusts, foundations, non-profit organizations, and endowments and retirement plans; insurance products comprising property and casualty, employee benefits, and risk-management solutions; and online banking and cash management services, as well as non-deposit investment products and services. April 22, 2011, it had 18 full-service branch offices located in Lowell, Acton, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Leominster, Methuen, Tewksbury, and Westford, Massachusetts; and in Derry, Hudson, and Salem, New Hampshire. The company was founded in 1989 and is headquartered in Lowell, Massachusetts.

Top 5 Dividend Companies To Watch In Right Now: Curlew Lake Resources Inc. (CWQ.V)

Curlew Lake Resources Inc. engages in the acquisition, exploration, and development of mineral properties, as well as in the production of oil and gas in Canada and the United States. The company explores for gold and silver. It holds a 100% interest in the Typhoon mineral claims that include 117 mineral claims in the Clear Creek District of the Yukon. The company also has interests in oil and gas properties primarily in Alberta. Curlew Lake Resources Inc. was incorporated in 1987 and is based in Langley, Canada.

Top 10 Performing Companies To Own In Right Now: Taseko Mines Limited(TGB)

Taseko Mines Limited engages in the exploration, development, and operation of mineral properties in British Columbia, Canada. The company principally holds interests in the Gibraltar copper-molybdenum mine located north of the City of Williams Lake; the Prosperity gold-copper project situated in the Clinton Mining Division, southwest of the City of Williams Lake; the Harmony gold project located on the Queen Charlotte Islands, also known as Haida Gwaii; and the Aley niobium project situated in the Omineca Mining Division. Taseko Mines Limited was founded in 1966 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Joshua Bondy]

  Taseko Mines� (NYSEMKT: TGB  ) is a relatively small miner that owns Canada's second largest open pit copper mine. The company is not profitable, but it is working on a number of interesting projects. Investing in undeveloped mines is risky, but Taseko mitigates these risks by focusing on projects in Canada where resource nationalization is a very small threat.�

• [By Alex Planes]

  This, at least, seems to indicate a superior position for SoCo over its more diversified rival. SoCo has also been investing heavily in new infrastructure to exploit its assets. In nominal terms, the company's capital expenditures are less than half Freeport's, but run six times as high as smaller competitor Taseko Mines (NYSEMKT: TGB  ) :

• [By Rich Smith]

  Vancouver, British Columbia-based Taseko Mines (NYSEMKT: TGB  ) needs to find itself a new chief financial officer. The one it had has flown the coop.

Top 10 Performing Companies To Own In Right Now: Amicus Therapeutics Inc.(FOLD)

Amicus Therapeutics Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered, small molecule drugs for the treatment of various human genetic diseases. Its drugs are known as pharmacological chaperones, which selectively bind to the target protein, enhance the stability of the protein, help it fold into the three-dimensional shape, and allow proper trafficking of the protein, thereby increasing protein activity, enhance cellular function, and reduce cell stress. The company primarily focuses on lysosomal storage disorders and diseases of neurodegeneration. Its products under development include Amigal, which is in phase III for the treatment of Fabry disease; AT2220, which completed phase I study for the treatment of Pompe disease; and Plicera, that has completed phase I study for the treatment of Gaucher disease. The company has license and collaboration agreement with Glaxo Group Limited to develop and commerc ialize Amigal. The company was founded in 2002 and is based in Cranbury, New Jersey.

Advisors' Opinion:

• [By Rick Munarriz]

  5. You've got to know when to FOLD 'em
  Investing in biotech upstarts can be pretty risky, and Amicus Therapeutics (NASDAQ: FOLD  ) investors learned that the hard way this week.

Top 10 Performing Companies To Own In Right Now: Dynex Power Inc. (DNX.V)

Dynex Power Inc., through its subsidiary, Dynex Semiconductor Limited, designs, develops, manufactures, and sells semiconductor products primarily in Canada, the United Kingdom, France, the United States, Germany, and China. The company�s products include high power bipolar discrete semiconductors, insulated gate bipolar transistor modules and dies, and electronic assemblies and components; and silicon-on-sapphire integrated circuits. Its products are used by electronic equipment manufacturers and maintenance providers in various sectors, including industrial electric power transmission and distribution, renewable and distributed power, heavy industries, and factory automation; marine propulsion and on-board systems; railway propulsion and on-board systems; aircraft power electronic systems; and space satellite applications. The company was founded in 1956 and is based in Lincoln, the United Kingdom. Dynex Power Inc. is a subsidiary of Zhuzhou CSR Times Electric Co. Ltd.< /p>

Top 10 Performing Companies To Own In Right Now: Condor Resources Inc (CN)

Condor Resources Inc. is an exploration-stage company. The Company is engaged primarily in the business of evaluating, acquiring and developing natural resource properties in Chile and Peru. As of February 29, 2012, Condor had a portfolio of 15 precious and base metals projects in Peru and Chile. The Company�� mineral exploration projects in Peru include San Martin, Soledad, Pucamayo, Condor de Oro, Chavin, Quriurqu, La Libertad and Ocros. The Company�� mineral exploration projects in Chile include Corona, Cristal, Royal, Becker and Brahma-Austral. During the fiscal year ended February 29, 2012, the Company acquired, one concession in the Provinces of Aija and Huarmey. In August 2011, Silex Peru S. A terminated its option on the Chavin concessions, and the Company regained a 100% interest in the two concessions. In March 2011, four further concessions were acquired by staking in Pucamayo, Peru.

Top 10 Performing Companies To Own In Right Now: Pure Energy Servic Com Npv (PSV.TO)

Pure Energy Services Ltd., an energy services company, provides well completion and production related services to oil and natural gas exploration and production companies in Canada and the United States. Its Canadian Completion Services segment primarily provides wire line and frac flow back services performed on new and producing oil and natural gas wells. This segment also offers cased holed electric wireline and slickline services, specialty logging services, pressure transient analysis, and well optimization and swabbing services. The company�s US Completion Services segment provides wireline and frac flowback services performed on new and producing oil and natural gas wells in the Rocky Mountain, North Dakota, and Appalachian Basin regions of the United States. This segment also offers wireline logging and perforating services; and underbalanced drilling services. Pure Energy Services Ltd. was founded in 2001 and is headquartered in Calgary, Canada. As of October 1, 2012, Pure Energy Services Ltd. operates as a subsidiary of FMC Technologies, Inc.

Top 10 Performing Companies To Own In Right Now: Celldex Therapeutics Inc(CLDX)

Celldex Therapeutics, Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States. The company markets Rotarix to treat rotavirus infection. Its lead drug candidate, rindopepimut (CDX-110), is an immunotherapeutic vaccine in Phase III clinical trial to target the tumor-specific molecule, epidermal growth factor receptor variant III, as well as in Phase II clinical trial for the indication of recurrent glioblastoma. The company?s other lead drug candidates comprise CDX-011, an antibody-drug conjugate in Phase IIb clinical trial for metastatic breast cancer and melanoma indication; and CDX-1127, a human monoclonal antibody in Phase I clinical trial for the treatment of lymphoma/leukemia and solid tumors. Its additional clinical and preclinical programs consist of CDX-1401, an Antigen Presenting Cells Targeting Technology program in Phase I/II clinical trial to tr eat multiple solid tumors; and CDX-301, an immune cell mobilizing agent and dendritic cell growth factor in Phase I clinical for treating cancer, autoimmune disease, and transplant. The company?s preclinical products include CDX-1135, a molecule for treating renal disease; and CDX-014, a human monoclonal antibody-drug conjugate for the treatment of ovarian and renal cancer. It has research collaboration and license agreements with Medarex, Inc.; Rockefeller University; Duke University Brain Tumor Cancer Center; Ludwig Institute for Cancer Research; Alteris Therapeutics, Inc.; Thomas Jefferson University; 3M Company; University of Southampton; Amgen Inc.; Amgen Fremont; and Seattle Genetics, Inc. Celldex Therapeutics, Inc. was founded in 1983 and is headquartered in Needham, Massachusetts.

Advisors' Opinion:

• [By Ben Levisohn]

  Acorda has dropped 6.3% to $33.12 today at 2pm, while MannKind has gained 5.1% to $5.37. Vertexs Pharmaceuticals (VRTX) has gained 3.3% to $73.25, Celldex Therapeutics (CLDX) has jumped 2.4% to $27.86 and Gilead Sciences (GILD) has ticked up 0.8% to $63.18.

• [By Harry Boxer]

  HARRY:  There are an awful lot of stocks that I’ve recommended this year that have done great, but a lot of them had big runs.  The stock I like now is Celldex (CLDX); another one is ACAD.

• [By Luke Jacobi]

  Celldex Therapeutics (NASDAQ: CLDX) gained 12.91 percent to $32.70 after a bullish report out of Leerink Swann.

  Shares of Pandora (NYSE: P) lost 10.11 percent to $24.26 as traders looked to take profit on the stock after shares posted a massive rally over the past 3 weeks.

Top 10 Performing Companies To Own In Right Now: Healthways Inc.(HWAY)

Healthways, Inc., through its subsidiaries, provides specialized, comprehensive solutions to assist people to maintain and enhance their health and well-being. The company?s evidence-based programs provide specific and personalized interventions for each individual in a population, irrespective of age, or health status; and delivers to consumers by phone, mail, Internet, and face-to-face interactions. It also offers wellness and disease prevention solutions through total population screening, well-being assessments, and supportive interventions; access to health improvement programs, such as fitness solutions, weight management, chiropractic, and complementary and alternative medicine; and educational materials and personal interactions with trained nurses and other healthcare professionals to create and sustain healthier behaviors for individuals who are in the early stages of chronic conditions. In addition, the company operates care enhancement and coaching centers; fi tness centers; and provides health improvement programs and services in Brazil, Australia, and France. Healthways, Inc. delivers its programs to various customers, including health plans, employers, integrated healthcare systems, hospitals, physicians, and government entities in the United States, the District of Columbia, and Puerto Rico. The company was founded in 1981 and is headquartered in Franklin, Tennessee.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By Holly LaFon]

  The last company I want to mention is HealthWays (HWAY), which was once a small-cap growth stock favorite. Due to increasing changes in the U.S. healthcare industry, as well as confusion around the implementation of ObamaCare, the company recently expanded its business to not just physical wellness but to social and emotional wellness, health, and nutrition.

Most IRA, 401(k) Balances Reached Precrisis Levels in 2011

The Investment Company Institute released on Thursday a pair of studies that show how far investors have come from the 2008 financial crisis.

A major indicator of how much better off savers are is their account balance, and IRA and 401(k) balances are looking much better than they were a few years ago, the studies found.

The study, “IRA Investor Profile: Traditional IRA Investors’ Activity, 2007–2011,” found that by 2011, IRA account balances for anyone younger than 70 were back up to their precrisis levels.

In 2007, the average account balance for investors between 25 and 59 was $53,620. After a steep drop in 2008, it climbed steadily to $57,550 in 2011.

The average balance for investors between 60 and 69 followed the same trajectory: $138,860 in 2007, increasing to $143,560 in 2011.

The oldest investors had a rougher ride. Their average balance in 2007 was over $186,000. After the 2008 drop-off, they started a slow climb, but 2010 saw another drop, falling from almost $171,000 to $164,230 in 2011.

IRI noted the seemingly less successful recovery in older participants’ account balances was likely to due to withdrawals. “Compared with the younger groups of traditional IRA investors,” according to the report, “these traditional IRA investors had almost no contribution activity (indeed, for most of them during most of the time analyzed they would not have been allowed to contribute), lower rates of rollover activity and much higher rates of withdrawal activity (since they were generally required to take withdrawals).”

Following the recession, the number of investors who were contributing to IRAs dropped, falling from 10.4% of investors in 2008 to 9% in 2011. Rollover activity slackened, too, with 3.2% of investors rolling over an account in 2011, down from 4.3% in 2008.

“Consistent investors in traditional IRAs largely stayed the course in investing in their traditional IRAs, reacting moderately to financial stresses during and since the financial crisis,” Sarah Holden, senior director of retirement and investor research at ICI, said in a statement. “Average account balances generally have bounced back for the consistent investors, and the data show only slight changes in these investors’ contribution, rollover and withdrawal rates.”

A report released jointly by ICI and the Employee Benefit Research Institute found average balances in 401(k) plans have recovered by almost a quarter. Between 2007 and 2011, balances increased 23.5%, the report found, despite the financial crisis cutting balances by nearly 35% between 2007 and 2008.

“The data confirm that, even through tough economic times, the discipline of 401(k) plans — staying the course by investing and continuing contributions — served savers well,” Paul Schott Stevens, ICI president and CEO, said in a statement. “Dollar-cost averaging and putting away money paycheck by paycheck have made a big difference in the bottom line for these savers.”

Participants and employers continuing to make contributions to their retirement plans was one factor in the increase, but EBRI/ICI found investment gains and reduced loan activity also contributed to the increase.

However, plans that received consistent contributions performed better than those benefiting only from better markets and fewer loans. Participants who contributed consistently had average account balances 60% higher at the end of 2011 than the average balance for all participants in the EBRI/ICI 401(k) database. The median balance for the consistent group was more than twice the median balance for the entire database.

Interestingly, younger participants with smaller initial balances saw more growth than older participants with larger initial balances.  “The percent change in average account balance of participants in their 20s was heavily influenced by the relative size of their contributions to their account balances and increased at a compound average rate of 41% per year between year-end 2007 and year-end 2011.”

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Check out Evensky’s 10 Tips for Retirement Success on ThinkAdvisor.

Tesla Rises as Jefferies Sees No Long Term Damage from Fire

Last week, Tesla’s (TSLA) shares hit a bump on the road. Today, Jefferies is out defending the company.

Who can forget the negative headlines that bombarded Tesla last week? The big news was the battery fire and the accompanying video that made the rounds. But there was also the downgrade from Baird, negative comments from technical analysts and even Toyota Motor (TM) disparaging the market for electric cars. Tesla’s shares fell 5.2% last week.

Jefferies analyst Elaine Kwei is out defending the shares today and even raised her price to $210 from $160. For starters, she believes the attention given to the fire is overdone:

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Last week a Tesla Model S caught on fire after a freak accident in which a large metal object punctured one of the battery modules in the front of the car. On Friday afternoon CEO Elon Musk posted an explanation surrounding the incident: 1) the car performed as designed and enabled the driver to exit safely; 2) the probability of a vehicle fire in a conventional vehicle is 5x greater than in a Tesla; and 3) the firefighters on the scene may have unintentionally spread the fire. TSLA believes it is unlikely that the incident will merit an NHTSA investigation, and the company does not anticipate making any design changes to the vehicle. The owner of the car plans to buy another Tesla.

Then there’s the matter of Toyota. Kwei believes the rejection of electric cars by the big automakers is a boon for Tesla. She writes:

The chairman of Toyota, Takeshi Uchiyamada, recently stated that he believes hybrids will dominate alternative drivetrains for some time to come, and that there is no significant market for all-electric vehicles. We agree there is a limited market for compromised EVs that cost twice as much as a similar ICE vehicle, but we believe there is a market for EVs that can offer comparable (if not superior) performance and features at a given price point.

Finally, there’s the matter of the company’s sales. Kwei now believes that 5,500 of Tesla’s Model S will be delivered in the third quarter, up from 5,250.

Tesla has gained 2% to $184.65 at 11:41 a.m, while Toyota has dropped 1.5% to $126.05, General Motors (GM) has fallen 0.7% to $35.44 and Ford (F) has declined 1.2% to $16.89.

Shutdown ends, but small businesses lost big

The 16-day shutdown cost an estimated $33 million in lost tourist money around the Great Smoky Mountains National Park.

NEW YORK (CNNMoney) The government shutdown hit business owners across the country in unexpected ways.

Rafting outfits, wedding photographers and firms with government contracts were examples of small businesses that took a hit during the 16-day shutdown. Now that the impasse has ended, they're relieved -- but angry at the unnecessary toll it took on their businesses.

The shutdown mandated the closure of the nation's national parks, including the Great Smoky Mountains, which covers more than 800 square miles in North Carolina and Tennessee. It's the country's most visited national park, and tourism brings in millions of dollars to area businesses every year.

Steve Morse, an economist with Western Carolina University, estimates that the first 10 days of the shutdown cost more than $33 million in lost visitor spending to businesses located within 60 miles of the park.

"About 80% of that money would have trickled down to restaurants, hotels, souvenir shops, gas stations, rafting and other outdoor recreational businesses," said Morse.

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One of those business owners, Jeff Smith, estimates that he lost $20,000, or 10% of his annual revenue, because of the shutdown. "That money is gone. We can't recover it this year and that's a shame for a small business like ours," said Smith, who runs the Jonathan Creek Inn in Maggie Valley, N.C., 15 minutes from Smoky Mountains National Park.

October is especially crucial for the inn because it's the peak tourist month. Tens of thousands of tourists come from surrounding citie! s to take in the fall foliage.

"We're just hoping that the leaves are still vibrant and the rest of October is good," he said.