Fed Sinks Dow as J.C. Penney Jumps and Lowe's Falls

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

Stocks sold off in the late afternoon for the third day in a row today as investors were spooked by the minutes of the Federal Reserve Open Market Committee's latest meeting. As a result, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and S&P 500 both closed down 0.4%.

What seemed to throw investors off in the Fed's notes was the following line: "Many members stressed the data-dependent nature of the current asset purchase program, and some pointed out that, if economic conditions warranted, the Committee could decide to slow the pace of purchase at one of its next few meetings."

Reading the Fed's tea leaves has proven a fool's errand in the past, and it seems a little ridiculous for the market to fear a taper in the "next few meetings," which could be four months from now or even later. Still, the Fed's loose monetary policy has been a major reason for the stock market's jump this year, as it's kept down bond rates and boosted the economy. The Fed's next meeting will take place on Dec. 17-18.

Recent economic reports have been mostly positive and today was no exception as retail sales, excluding automobiles, increased 0.4% in October, beating expectations of 0.1%, while the Consumer Price Index was essentially flat, helped by falling gas prices, an encouraging sign for spending.

The drumbeat of retailer earnings reports continued today as J.C. Penney (NYSE: JCP  ) jumped 8.4% after a promising earnings report. After several terrible quarters, the department-store chain seems to finally be recovering, reporting same-stores up 0.9% in October. Results were still ugly with a 5.1% drop in sales and a loss of $1.81 per share, but the ship now seems headed in the right direction at least. CEO Myron Ullman was optimistic about the future, saying he expected sequential and year-over-year improvements in comparable sales and gross margin in the fourth quarter.

Home-improvement retailer Lowe's (NYSE: LOW  ) wasn't as lucky as its shares fell 6.2% on a weaker-than-expected outlook. Overall, it was a strong report for the Home Depot rival as same-store sales grew 6.2%, and earnings per share jumped 34.3% to $0.47, but that missed the Street's expectations of $0.48. Lowe's also raised its full-year EPS guidance to $2.15 from $2.10, but that was below the analyst mark at $2.19. The housing sector has boomed this year, lifting retailers and homebuilders alike, and Lowe's shares are still up 30% year to date. Today's drop seems to be more of a valuation-based correction rather than a long-term sign.

Finally, Staples (NASDAQ: SPLS  ) shares were off 1.6% today after its own earnings report failed to impress. The nation's leading office-supplies retailer warned of negative trends in demand for core office supplies, which shouldn't be surprising given the secular shift to digital communication. Management intends to focus on other categories, but that seems like a questionable strategy given its strength in office products. Earnings per share of $0.42 matched expectations, but revenue fell 3.8% to $6.11 billion, below the consensus at $6.18 billion. Given the fading relevance of office retail and the consistent emptiness of these stores, I'd avoid this sector.

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Where Will Yahoo Go Post-Earnings?

With shares of Yahoo (NASDAQ:YHOO) trading around $35, is YHOO 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

Yahoo is a technology company that provides search, content, and communication tools on the Web and on mobile devices worldwide. It operates Yahoo.com, which offers Yahoo Search, Yahoo News, Yahoo Sports, Yahoo Finance, Yahoo Entertainment and Lifestyles, and Yahoo Video. Being such a large content provider, Yahoo is able to reach a significant amount of consumers across the globe. As the Internet attracts an increasing number of participants, look for Yahoo to continue to be a major player.

Today, Yahoo reported results for the fourth-quarter and full year ended December 31, 2013. "I'm encouraged by Yahoo's performance in Q4 and 2013 overall. We saw continued stability in the business, and our investments allowed us to bring beautiful products to our users and establish a strong foundation for revenue growth," said Yahoo CEO Marissa Mayer. "In Q4, we launched the new Yahoo Mail, Yahoo Finance, and our new Flickr photo books, while quickening our pace of experimentation. We are extremely heartened by the year-over-year traffic increase we experienced in 2013, an early sign of return on our investments and the acquisitions we've made."

T = Technicals on the Stock Chart Are Mixed

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

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Yahoo options	35.27%	66%	63%

What does this mean? This means that investors or traders are buying a significant 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	Average	Average
March Options	Average	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q4	2013 Q3	2013 Q2	2013 Q1
Earnings Growth (Y-O-Y)	31.43%	-6.67%	Top Blue Chip Companies To Watch For 2015 66.67%	52.17%
Revenue Growth (Y-O-Y)	-5.94%	0.33%	-6.78%	-6.62%
Earnings Reaction	-7.09%*	-0.86%	10.34%	-0.37%

Yahoo has seen rising earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have been pleased with Yahoo's recent earnings announcements.

* As of this writing

P = Weak Relative Performance Versus Peers and Sector

How has Yahoo stock done relative to its peers, Google (NASDAQ:GOOG), AOL (NYSE:AOL), Microsoft (NASDAQ:MSFT), and sector?

	Yahoo	Google	AOL	Microsoft	Sector
Year-to-Date Return	-12.20%	-0.51%	0.29%	-1.92%	-1.71%

Yahoo has been a poor relative performer, year-to-date.

Conclusion

Yahoo is an Internet bellwether that provides a multitude of services to consumers and companies worldwide. The company today reported results for the fourth quarter and full year ended December 31, 2013. The stock has been moving higher in recent quarters but is now pulling back. Over the last four quarters, earnings have been rising and revenues have been decreasing, which has left investors pleased about recent earnings announcements. Relative to its peers and sector, Yahoo has been a weak year-to-date performer. Look for Yahoo to bounce back.

Bernanke and Yellen Taper Again – A New Chairman Is In Town

The January 29 FOMC meeting was the last meeting to be under Fed Chairman Ben Bernanke. Janet Yellen will be the new Federal Reserve Chairman going forward. The markets had been anticipating another tapering announcement, even after the first $10 billion tapering announcement was made in December.

The verdict is out, and another round of bond tapering will be coming. Janet Yellen’s new monthly purchases will drop to $65 billion from $75 billion, after having been $85 billion previously. The big news is that the Federal Reserve is also likely to continue reducing bond purchases in measured steps now that the economy has picked up.

The FOMC noted that labor market conditions are mixed but are showing improvements; household spending and business investment have advanced more quickly. Bernanke and Yellen also are telegraphing that the US economy is expected to keep expanding at a moderate pace and that unemployment will decline gradually.

Janet Yellen and team will be spending $30 billion per month to purchase mortgage-backed securities and another $35 billion per month to purchase Treasury securities. Both are down by $5 billion. It is also interesting to see that the vote this time for a tapering was unanimous, a vote pattern that we have not seen for three and a half years.

Emerging markets may have hoped for tapering to be slower, but the Fed is signaling that it wants to return to more of a normalized policy environment. Maybe the FOMC is just not too worried about the rest of the world – or maybe they have their own issues to worry about. One thing that was noticed was that much of the statement was nearly identical in outlook and in tone.

Wednesday’s news is not having any major impact on the financial markets. The S&P 500 is now lower at -16 at 1,776 and the DJIA is down 153 points at 15,775. The fulll FOMC statement is here.

Wall Street hunkers down ahead of jobs data

U.S. stock futures were bracing for the government-shutdown-delayed release of September's employment report.

Employers are forecast to have added 180,000 jobs for the month, up from 169,000 in August. The unemployment rate is expected to remain at 7.3%. The data will be released at 8:30 a.m. ET.

EMPLOYMENT: Delayed Sept. jobs report set for release

Ahead of that, Dow Jones industrial average index futures fell 0.1%, Standard & Poor's 500 index futures fell by a similar amount and Nasdaq index futures shed 0.04%.

On Monday, the S&P 500 closed up a fraction of a point at 1,744.66. The Dow edged down 7.45 points, or 0.1%, to 15,392.20. The Nasdaq rose 5.77 points, or 0.2%, to 3,920.05.

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MONDAY: Stocks close mixed; S&P 500 at all time high

Benchmark crude for November delivery was down 23 cents at $98.99 a barrel in electronic trading on the New York Mercantile Exchange. The November contract expires Tuesday.

Japan's Nikkei 225 index added 0.1%. Major benchmarks in Europe fell at a similar pace.

Housing Market's Unclear Improvement Really Affects Wood Makers

Mixed housing data, among rising interest rates are already hurting shares of companies related to the housing market. What's more, higher vitality and uncertainty related to the geopolitical risk in Syria affect the global financial markets. Let's analyze three stocks of companies directly related to the housing market through wood building products they make.

Highly Dependent on General Market Conditions And Particular Customers

Universal Forest Products Inc. (UFPI) is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products. It currently consumes about 7 percent of North American softwood lumber production per year.

On the bright side, an increase in home improvement spending and national housing starts is likely to benefit the company. Management is focusing its energy on business expansion and new product initiatives, to gain market share. Last November they purchased Nepa Pallet assets that strengthened the company's position in the Northwest region of the US. What's more, in January they have also acquired Custom Caseworks that enabled growth of industrial business through new product offerings.

On the risky side, growth could be impaired by a high volatility in the cost of lumber products from primary producers. The price of lumber products depends not only on supply and demand in the market, but also on external factors like government and environmental regulations, weather conditions, economic conditions and natural disasters. An increase in lumber costs will increase cost of inventory and eat in margins on fixed priced lumber products.

Hedge fund gurus like Joel Greenblatt and Arnold Van Den Berg sold out the stock of their portfolios. Current trailing twelve month earnings multiple is 35.5 times, compared with 33.3 times for the peer group. Thus, a Neutral recommendation on the stock anticipates that the company will perform in line with th! e broader market.

Increase Demand for Pulpwood and Biomass for Power Generation and Biofuel Production.

Plum Creek Timber Co Inc. (PCL) owns 6.4 million acres of timberland across 19 states and manages timberland and manufactures wood products. The company is structured as a REIT (Real Estate Investment Trust), and so, it is not required to pay federal income taxes on earnings generated by timber harvest activities. Other earnings, like those from its wood products and real estate segments are subject to federal income tax.

Operating in a commodity market, Plum Creek lacks a low-cost production position and so struggles to exert some pricing power. Therefore, the company tries to diversify its natural resource businesses and also looks for opportunities for oil and natural gas production, rock and mineral extraction, as well as communication and transportation.

Among Plum Creek's primary risks we can mention a prolonged weakness in residential construction, the seasonality of the forest products industry and a failure to maintain its REIT qualification. In addition, an adverse environmental legislation, poor weather conditions and natural disasters. Furthermore, wood products face increasing competition from a variety of substitute products such as non-wood and engineering wood products. Consequently, the company is under severe stress to maintain profitability. Counterweighing the demand lost from paper consumption, is an increase demand for pulpwood and biomass for power generation and biofuel production.

Plum Creek has a trailing twelve month ROE of 19.8%, compared with the industry average of 15.8%, which implies that the company reinvests its earnings more efficiently than its industry peers. Hedge fund gurus like Pioneer Investments and Steven Cohen have recently added this stock to their portfolios. Thus, I would advise investors to Hold on Plum Creek shares at the time.

Most Productive and Valuable Timberland Among the Major Timber REITs

Weyerhaeuser Co ! (WY) oper! ates four primary business segments: timberlands (owns 6.6 million acres), wood products, cellulose fibers, and real estate. Like Plum Creek, Weyerhaeuser is also structured as a REIT and is not required to pay federal income taxes on earnings generated by timber harvest activities. Weyerhaeuser exports forest products to Europe and Asia. A strong recovery in some Asian nations, such as Japan, China and Korea, will boost its export businesses. However, this highly exposes the company to foreign exchange risks.

Basically, logs are a commodity, and so Weyerhaeuser faces intense competition. Building a moat in a commodity business typically requires a low-cost production position as the prime basis for competition is selling price. On a per-acre basis, Weyerhaeuser's timberlands are exceptionally productive and profitable. With an average EBITDA (Earnings Before Interest, Tax, Depreciations and Amortization) of $78 per acre from 2004 through 2012, much higher than peers Plum Creek ($36 per acre) and Rayonier ($54 per acre). In addition, Weyerhaeuser has a large Pacific Coast position that has the most productive tree-growing region in the country.

Weyerhaeuser's sustainable improvement in income will depend on a comprehensive recovery in housing starts. Currently trading at 26.1 times its trailing twelve month earnings multiple, compared with 24.4 times for the peer group. Hedge fund gurus like Third Avenue Management, Steven Cohen and Paul Tudor Jones added this stock to their portfolios, suggesting a Neutral recommendation and anticipating the company to perform in line with the broader market.

In Brief

Although increasing interest rates will keep on making home equity loans more expensive, homeowners continue to flock to do-it-yourself centers to buy up lumber and other goods. All three stocks are capitalizing on an improving, yet not clear, forecast of the housing market to the benefit of their shareholders. Returns are expected to be close to their market benchmark, so th! ese compa! nies do not look so alluring at the time.

Disclosure: Damian Illia holds no position in any stocks mentioned.

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Treasurys extend rise after confidence data

NEW YORK (MarketWatch) — Treasury prices climbed Tuesday, sending yields lower after housing and consumer-confidence data showed waning optimism about economic growth.

The 10-year Treasury note (10_YEAR)  yield, which moves inversely to price, fell 3 basis points on the day to 2.677%. The 30-year bond (30_YEAR)  yield fell 3 basis points to 3.698%, and the 5-year note (5_YEAR)  yield fell 2 basis point to 1.432%.

Conference Board data on Tuesday showed that a consumer confidence index fell to 79.7 in September from a revised 81.8 in August. That beat economists' projections of a drop to 79.5, but registered at the lowest in four months on renewed worries about wages and job availability.

Home prices rose by a seasonally adjusted 1% in July, according to Federal Housing Finance Agency data Tuesday, an 8.8% jump from the same period a year ago. The S&P/Case Shiller 20-city composite index showed a 1.8% rise in July, the smallest jump since March.

Click to Play On Wall Street, consumers are key

Polya Lesova takes a look at today's market action, including three stocks to watch.

The consumer and housing results come as the bond market is once again on alert for data that could shed light on when and how the Federal Reserve acts to scale back the pace of its $85 billion in monthly bond buys, which had been used to help stimulate economic growth. The central bank's decision not to taper at its policy meeting last week surprised many market participants, who saw bonds sell off sharply during the summer in anticipation of Fed action.

Given the Fed's dovish tone, some are now projecting yields to move lower.

"On a risk-adjusted basis, we believe that Treasurys offer good value as yields recede following the recent rise," said HSBC Global Research strategists, led by Fredrik Nerbrand, global head of asset allocation, in a note. "Our fixed-income strategists expect the 10-year U.S. Treasury yield to fall to 2.1% over the next 12 months. Such a move should have a sizeable impact on the entire financial landscape."

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Meanwhile, New York Fed President William Dudley said on CNBC Tuesday that markets should not have been surprised by the Fed's decision to hold off on tapering.

The 2-year note yield (2_YEAR)   traded on Tuesday at 0.334%, down half a basis point on the day, ahead of an auction of $33 billion of the notes. The auction represents a reduction of $1 billion from last month's sale of 2-year notes, and $2 billion from prior sales as the U.S. government's reduced deficit decreases the amount of borrowing.

Given the recent decline in yields, some analysts expect mediocre auction demand.

"Relative value does not look super compelling, as curves (short end vs. belly) have remained steep," said Stanley Sun, strategist at Nomura Securities, in a note. "The 2-year yields are also getting close to June [Federal Open Market Committee] levels and should require some concession pre-auction. Net, we expect only an average auction as the pros roughly balance the cons."

The Treasury Department will also sell $35 billion of 5-year notes on Wednesday and $29 billion of 7-year notes on Thursday.

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

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This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

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Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

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With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

FactSet Research Systems

My first earnings short-squeeze trade idea is integrated financial information and analytical applications provider FactSet Research Systems (FDS), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect FactSet Research Systems to report revenue of $218.93 million on earnings of $1.21 per share.

The current short interest as a percentage of the float FactSet Research Systems is pretty high at 15.7%. That means that out of the 40.10 million shares in the tradable float, 6.31 million shares are sold short by the bears. This is a high short interest on a stock with a relatively low float. Any bullish earnings news could easily spark a sharp short covering rally for shares of FDS post-earnings.

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From a technical perspective, FDS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last few weeks, with shares ripping higher from its low of $101.07 to its intraday high of $112.89 a share. During that move, shares of FDS have been consistently making higher lows and higher highs, which is bullish technical price action.

If you're bullish on FDS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $112.90 a share (or its intraday high on Monday if greater) with high volume. Look for volume on that move that registers near or above its three-month average action of 397,438 shares. If that breakout hits, then FDS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $120 to $125 a share.

I would simply avoid FDS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support level $110 a share with high volume. If we get that move, then FDS will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $107.72 a share to $101.07 a share.

Apogee Enterprises

Another potential earnings short-squeeze play is Apogee Enterprises (APOG), a designer and developer of value-added glass products, services and systems, which is set to release its numbers on Wednesday after the market close. Wall Street analysts, on average, expect Apogee Enterprises to report revenue of $187 million on earnings of 23 cents per share.

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The current short interest as a percentage of the float for Apogee Enterprises is pretty high at 4.1%. That means that out of the 26.40 million shares in the tradable float, 1.16 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 10.3%, or by 107,864 shares. If the bears are caught pressing their bets into a strong quarter, then shares of APOG could jump sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, APOG is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $22.13 a share to its high of $29.42 a share. During that uptrend, shares of APOG have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of APOG within range of triggering a near-term breakout trade.

If you're in the bull camp on APOG, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $29.42 a share to its 52-week high at $30.26 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 196,572 shares. If that breakout hits, then APOG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40 a share.

I would simply avoid APOG or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $28 a share to its 50-day moving average at $27.41 a share with high volume. If we get that move, then APOG will set up to re-test or possibly take out its 200-day moving average at $25.89 a share.

Cracker Barrel Old Country Store

One potential earnings short-squeeze candidate is Cracker Barrel Old Country Store (CBRL), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Cracker Barrel Old Country Store to report revenue of $668.68 million on earnings of $1.35 per share.

Just recently, Wunderlich initiated coverage of Cracker Barrel Old Country Store with a hold rating and a $106 per share price target.

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The current short interest as a percentage of the float for Cracker Barrel Old Country Store is notable at 4.6%. That means that out of the 18.46 million shares in the tradable float, 1.08 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 10.3%, or by 100,000 shares. If the bears are caught pressing their bets into a bullish quarter, then shares of CBRL could rip sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, CBRL is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months and changes, with shares moving higher from its low of $78.33 to its intraday high of $106.65 a share. During that uptrend, shares of CBRL have been making mostly higher lows and higher highs, which is bullish technical price action.

If you're bullish on CBRL, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $106.65 a share (or its intraday high on Tuesday if greater) with high volume. Look for volume on that move that hits near or above its three-month average action of 141,938 shares. If that breakout triggers, then CBRL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $110 to $115, or even $120 a share.

I would avoid CBRL or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $102 a share with high volume. If we get that move, then CBRL will set up to re-test or possibly take out its 50-day moving average of $99.62 a share to more near-term support levels at $96.32 to $94.85 a share.

Clarcor

Another earnings short-squeeze prospect is Clarcor (CLC), a provider of filtration products, filtration systems and services, which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Clarcor to report revenue of $298.74 million on earnings of 66 cents per share.

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The current short interest as a percentage of the float for Clarcor sits at 3.1%. That means that out of the 49.90 million shares in the tradable float, 1.56 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 14.1%, or by about 192,000 shares. If the bears are caught pressing their bets into a solid quarter, then shares of CLC could soar sharply higher post-earnings as the bears jump to cover some of those short positions.

From a technical perspective, CLC is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $52.29 to its intraday high of $57.07 a share. During that uptrend, shares of CLC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CLC within range of triggering a major breakout trade.

If you're bullish on CLC, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $56.75 to its 52-week high at $57.31 a share (or its intraday high on Wednesday if greater) with high volume. Look for volume on that move that hits near or above its three-month average action of 170,683 shares. If that breakout triggers, then CLC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65 a share, or even $70 a share.

I would avoid CLC or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support at $56 to its 50-day moving average of $55.24 share with high volume. If we get that move, then CLC will set up to re-test or possibly take out its next major support levels at $54 to $53 a share, or even its 200-day moving average at $51.90 a share.

Tower Group International

My final earnings short-squeeze play today is property and casualty insurance player Tower Group International (TWPG), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Tower Group International to report revenue of $421.10 million on a loss of 52 cents per share.

The current short interest as a percentage of the float for Tower Group International is pretty high at 7.9%. That means that out of the 53.23 million shares in the tradable float, 2.90 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low float. If the bulls get the earnings news they're looking for, then this stock could easily spike sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, TWGP is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last month and change, with shares plunging from its high of $22.04 a share to its 52-week low of $13.39 a share. During that move, shares of TWGP have been consistently making lower highs and lower lows, which is bearish technical price action. That move also saw shares of TWGP gap down sharply from around $21.50 to $16 a share. This action has pushed shares of TWGP into oversold territory, since the stock's current relative strength reading is 25.38.

If you're in the bull camp on TWGP, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $13.39 to $14.36 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 568,536 shares. If that breakout triggers, then TWGP will set up to re-test or possibly take out its next major overhead resistance levels at $16.59 to its 50-day moving average at $17.77 a share.

I would avoid TWGP or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 52-week low at $13.39 a share with high volume. If we get that move, then TWGP will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible targets off that move are $12 to $11 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 REITs That Call Bernanke's Bluff

>>5 Stocks Ready for Breakouts

>>Why Wall Street Got Apple Wrong

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.

U2 to debut song in Super Bowl commercial

U2 will perform a new song during Super Bowl XLVIII – but it won't be during the halftime show. The band will sing the tune Invisible in a Super Bowl commercial.

U2 and Bank of America said Thursday that they will combine in a charitable fundraising effort that kicks off during the Big Game on Feb. 2. U2 frontman Bono made the announcement with Bank of America CEO Brian Moynihan at the World Economic Forum in Davos, Switzerland.

The 60-second Super Bowl ad will feature U2 singing and will invite viewers to download a limited edition of the song on iTunes.

DAVOS: Other celebs at forum

VOTE: Sign up to vote on Super Bowl ads

The download will be free during the game and for the following 24 hours. During that time, Bank of America will donate $1 for every download -- up to $2 million -- to the Global Fund to Fight AIDS, Tuberculosis and Malaria.

Best Casino Stocks To Watch For 2015

Other Super Bowl marketers plan to use music to connect with consumers. Bud Light says one of its Super Bowl ads "will feature the world debut of a new song from a well-known artist." During Super Bowl week, Bud Light will host concerts iin New York City with performers such as Foo Fighters and Fall Out Boy.

Car company Kia says music will play a big role in its Super Bowl ad. On Thursday, Audi posted on YouTube a teaser video for its Super Bowl ad with singer Sarah McLachlan.

Ad time for this year's game on Fox has been sold out since the beginning of January. Some 30-second slots went for as much as $4 million. Other game advertisers include Volkswagen, Jaguar, Dannon, Doritos, Cheerios and retailer H&M.

U2 performed in the Super Bowl halftime show in 2002.

Top 5 Low Price Stocks To Own Right Now

On my blog I��e published over 100 stocks with safe haven characteristics. For sure no stock is safe and no dividend is guaranteed, but there are some shares with a higher risk and bigger volatility which I don�� like. I�� looking for low yielding stocks with solid debt ratios and modest growth perspectives with a proven business model and a long-term dividend growth history.

Today, I produced a screen with the following core criteria:

- Market Capitalization over USD 10 billion
- Debt-to-Equity Ratio below 0.5
- Beta Ratio Below one

In order to get the top yielding results with cheap expected P/Es, I selected only those stocks with a forward P/E of less than 15 as well as a dividend yield of more than 3 percent. Only 13 stocks fulfilled my safe haven characteristics of which two are high-yields and seven are recommended to buy. Many telecoms are part of the results.

The sector is definitely low priced and there is a huge rumor about takeovers. I also have shares of AT&T and Rogers in my Dividend Yield Passive Income Portfolio.

Top 5 Low Price Stocks To Own Right Now: CPB Inc. (CPF)

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides commercial banking services to businesses, professionals, and individuals in Hawaii. Its deposit products include non-interest bearing and interest-bearing demand deposits, savings and money market deposits, time deposits, time certificates of deposit, and checking accounts. The company�s loan portfolio comprises residential, commercial, commercial mortgage, and construction loans to small and medium-sized companies, business professionals, and real estate developers, as well as consumer loans. It also offers debit cards, Internet banking, cash management services, traveler�s checks, safe deposit boxes, international banking services, night depository facilities, and wire transfers. In addition, the company offers wealth management products and services, such as non-deposit investment products, annuities, insurance, investment management, asset custody, and general consultation and planning services; and trust and retail brokerage services. It operates 34 branches and 120 ATMs in the state of Hawaii. The company was founded in 1954 and is based in Honolulu, Hawaii.

Top 5 Low Price Stocks To Own Right Now: Threshold Pharmaceuticals Inc.(THLD)

Threshold Pharmaceuticals, Inc., a biotechnology company, engages in the discovery and development of drugs targeting the microenvironment of solid tumors for patients living with cancer. The company?s products include TH-302, a novel drug candidate which is in Phase 1, Phase 1/2, and Phase 2 clinical trials for cancer. It has a license agreement with Eleison Pharmaceuticals, Inc. to develop and commercialize glufosfamide for the treatment of cancer in humans and animals. The company was founded in 2001 and is headquartered in Redwood City, California.

Hot Penny Stocks To Invest In 2014: Oncolytics Biotech Com Npv (ONC.TO)

Oncolytics Biotech Inc., a biotechnology company, focuses on the development of oncolytic viruses as potential cancers therapeutics. The company develops REOLYSIN, a human cancer therapeutic. Its clinical program includes various human trials comprising a Phase III clinical trial in head and neck cancers using REOLYSIN, its proprietary formulation of the human reovirus. Oncolytics Biotech Inc. was founded in 1998 and is headquartered in Calgary, Canada.

Top 5 Low Price Stocks To Own Right Now: Active Power Inc.(ACPW)

Active Power, Inc., together with its subsidiaries, designs, manufactures, and markets critical power quality solutions. It provides various products that deliver continuous clean power; and protects customers from voltage fluctuations, such as surges and sags, and frequency fluctuations, as well as offer temporary power to bridge the gap between a power outage and the restoration of utility power. The company offers the CleanSource UPS, a battery free uninterruptible power supply (UPS) system that integrates UPS electronics and flywheel energy storage system into one compact cabinet. Active Power, Inc. also provides the CleanSource DC, a battery-free replacement for lead-acid batteries used for bridging power; CoolAir products; and GenSTART, a battery-free starting modular system for customer?s diesel generator. In addition, it offers continuous power systems, which incorporates its UPS products with switchgear and a generator sold in a containerized package, and markete d under the PowerHouse brand name. Further, the company provides customer support services, including infrastructure needs assessment, vetting and validation, alignment with business objectives, system design, deployment, and start-up and commissioning, as well as service, support, and monitoring. It serves data centers, manufacturing, technology, broadcast and communications, financial, utilities, healthcare, government, and airport industries. The company sells its products through direct sales force, manufacturer?s representatives, distributors, strategic IT partners, and original equipment manufacturer partners in the United States, Europe, the Middle East, Africa, the Asia Pacific, and North America. Active Power, Inc. was founded in 1992 and is headquartered in Austin, Texas.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 electrical components and equipment player that's starting to move within range of a near-term breakout trade is Active Power (ACPW), which designs, manufactures and markets power solutions that provide business continuity and protect customers in the event of an electrical power disturbance. Its products deliver clean power, protecting customers from voltage fluctuations. This stock has hasn't done much so far in 2013, with shares off by 6.7%.

  If you take a look at the chart for Active Power, you'll notice that this stock recently formed a double bottom chart pattern at $2.82 to $2.80 a share. Since forming that bottom, shares of ACPW have started to uptrend and move back above its 50-day moving average of $2.94 a share. That move is quickly pushing shares of ACPW within range of triggering a near-term breakout trade.

  Market players should now look for long-biased trades in ACPW if it manages to break out above some near-term overhead resistance levels at $3.14 to $3.23 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 87,166 shares. If that breakout hits soon, then ACPW will set up to re-test or possibly take its next major overhead resistance levels at $3.65 to $3.76 a share. Any high-volume move above those levels will then give ACPW a chance to tag its next major overhead resistance levels at $4 to $4.20, or even $4.50 a share.

  Traders can look to buy ACPW off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $2.94 a share, or near its double bottom zone at $2.80 a share. One can also buy ACPW off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 5 Low Price Stocks To Own Right Now: Luxottica(LUX.MI)

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of house brand and designer lines of prescription frames and sunglasses; sports eyewear products; and men?s and women?s apparel, footwear, and accessories. This segment offers its products under house brands, such as Ray-Ban, Oakley, Arnette, ESS, K&L, Luxottica, Mosley Tribes, Oliver Peoples, Persol, Revo, Sferoflex, and Vogue; and licensed brands comprising Anne Klein, Brooks Brothers, Bvlgari, Burberry, Chanel, Chaps, Club Monaco, D&G, Dolce & Gabbana, DKNY, Donna Karan, Miu Miu, Polo Ralph Lauren, Paul Smith, Prada, Ralph Lauren, Ralph, Salvatore Ferragamo, Stella McCartney, Tiffany & Co., Tory Burch, Versace, and Versus. This se gment serves retailers of mid- to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, and duty-free shops, as well as independent optometrists and ophthalmologists. The Retail Distribution segment operates optical retail stores under the brand names of LensCrafters, Pearle Vision, Sears Optical, Target Optical, OPSM, Laubman & Pank, Budget Eyewear, and GMO; and sunglass and luxury retail stores under the brand names of Sunglass Hut, ILORI, Optical Shop of Aspen, Oliver Peoples, David Clulow, Bright Eyes, and Oakley O' Stores and Vaults. This segment operates approximately 7,100 optical and sun retail stores. Luxottica Group also operates E-commerce Web sites, including sunglasshut.com, oakley.com, and ray-ban.com. The company was founded in 1961 and is headquartered in Milan, Italy. As of January 31, 2012, Luxottica Group S.p.A. operates as a subsidiary of Delfin S.�r.l.

Market Crash: 7 steps to keep in mind

The 'August' fall in the stock market still has many of us at the edge of our seats. With their wealth and dreams on the line, who wouldn�t be! And after the last US market crash during late 2007, all people want to do is keep their wealth safe. While this fall doesn�t seem as bad as the recession right now, many of us are already in a state of flux, unsure of what we should do.

Over the past few weeks, several people have been asking the same question

� �What should I do now?� Does one take their money out and start preparing for a market meltdown or should they stay put and continue investing? It has been observed that an overwhelming majority of people wanted to just stop investing and keep their money safe.

While 'protecting' your investment is the most natural thing to do, following up on your dreams and goals is also an important aspect of life itself. Realizing those dreams is what we live and earn for. And putting a halt to them is not the answer. Here are seven things you shouldn�t do when you find yourself in this situation:

Don�t proceed without planning: Things may seem bad at the moment, but pulling out of your investment without a second thought is as dangerous as self medication. If you do find yourself in such a situation, plan on how you would like to retreat your investments. Abruptly stopping all payments on the same, will not only cause disharmony in your money matters but also put an end to all your dreams.

Don�t panic: Panic is the most natural state of mind, when things go haywire. If you do find yourself in this situation, have a calm discussion about how you should proceed. Panicking will only cause more grievances and force you to make bad decisions.  An apt move to make at this point would be to speak openly to a certified financial planner who will be able to guide you in the best possible manner.

Don�t end your financial plan: Investing during times of financial crunch, especially for retirement, may sound unreasonable to many, but remember that this investment is being done for your future. If you are currently investing in a plan, try to continue the same instead of putting it to a complete halt. You can always rework your monthly investment to suit your financial needs.

Don�t get carried away with the market: The volatility of the market may scare you and your financial plans, but it is best not to be carried away by this fear.

Don�t get emotionally carried away if you see the market falling and avoid taking impulsive decisions. Keeping your money safe is the key.

Don�t be influenced by short term losses: The term loss itself will set of various alarms in your head. If you find your investments and stock options under this position, try not to get ahead of yourself. If you have used a particular tool for a long term plan, then these losses would not affect very heavily on your plans or your investments.
 
Do not ignore the importance of family in financial decisions: The breadwinner of the family is usually the one to make decisions. However, it is important that you keep your family in the loop of the current situations, as it is also their financial future that depends on this. You may not be able to change the outcome of the markets, but you can keep your family�s future safe.

Don�t give up: One cannot stress on this enough. You cannot give up on the idea of having a financially secure future, just because the present situation seems murky. Remember to always have a contingency plan that will help you during such situations. This would ensure that your present and your future safety are withheld. This situation will pass, and all you need to remember is that there are people who can guide you and support you in times of financial turmoil.

While it�s easier said than done you can protect your own future through these simple methods. All you need to do is just keep the faith. 

How Do You Estimate a Stock's Intrinsic Value?

Someone who reads my articles asked me this question: Geoff,

How do you estimate intrinsic value…do you do a DCF or some other method?

John

That's a great question. And a very hard one to answer. Let's start with the easy part: do I use a DCF?

No. I never use a Discounted Cash Flow analysis (DCF).

Why not?

A DCF is a pretty complicated and subjective approach that draws your attention away from the variables that matter. I've said before that the things to focus on – the variables to use in your analysis – are numbers that are:

1. Constant

2. Consequential

3. Calculable

Constant means the numbers you use should have some amount of durability. Don't use last year's sales growth rate. Can you use the 10-year sales growth rate?

Probably.

You wouldn't want to do that for a homebuilder or a company that is in the business of selling some commodity that has seen tremendous price growth over the last 10 years. But you could certainly incorporate long-term growth in a market, technology, population, etc. It'll be easier to do this for some companies than for other companies. Focus on the companies where you know what matters and where the things that matter can be measured.

Any attempt at valuation involves assumptions on your part. One good rule: don't project faster growth over the next 10 years than the company achieved over the last 10 years. It's not enough to add a big margin of safety to the end of your appraisal process. You should incorporate conservatism into every level of your analysis. So, always assume growth is at least a little bit slower as the company ages. The bigger a company gets, the more likely it becomes that its rate of growth will be lower in the future than it was in the past.

Consequential means you only want to focus on numbers that matter. Don't worry about variables that don't move the needle. Focus on things like free cash flow, earnings, dividends, and book va! lue. And on the long-term trend in sales, EBITDA, and book value. For companies where book value doesn't matter – don't use it.

When valuing a company based on its ability to generate cash earnings – focus on free cash flow, earnings, EBITDA, and sales. When valuing a company based on its ability to grow its asset value – focus on book value, earnings, revenue, and leverage.

The top line matters at (almost) all companies. So always pay attention to sales and sales growth.

Usually, these are the things that matter. But sometimes other things matter more. Obviously, there are sometimes hidden assets, court cases, promising new drugs, etc. that don't appear in a company's financial statements at all. If you're looking at a company where one of those things overshadows the usual financial metrics – then toss the usual financial metrics out. Focus on what matters. Use common sense. Always keep the company's value to a private owner – a 100% buyer – at the front of your mind.

Calculable just means that the things you focus on need to be things you can measure and play around with. Numbers you can "crunch". Numbers you can put in simple formulas.

For example, an operating margin is calculable when you pair it up with a price-to-sales ratio and a tax rate. There's usually not a lot of uncertainty about those figures, so margins can be very helpful in any intrinsic value estimate – to the extent you think the margins are stable.

What's not calculable?

If a company grew 35% a year over the last 10 years – there's not much you can do with that information. Sure, it matters. And sure you can adjust that rate down in the future. But isn't that just being arbitrary. Are you really using the growth rate at all if you do that? Couldn't you just as easily pluck a rate from thin air?

It's very hard to quantify something like 35% revenue growth. I always bring this point up when people want to know my view of Apple (AAPL). My ! view of A! pple is that I can see a lot of its qualities for what they are – but I have a really hard time putting what I know about Apple into numbers. I don't want to say Apple's value is incalculable. A lot of people obviously do calculate the company's value. I just find it very hard to value because I know what matters at Apple – I just don't feel comfortable quantifying the things that matter and plugging them into some formula.

Intrinsic value estimate are tough. In fact, they're tougher than what's usually need to make oodles of money in specific stocks.

The best bargains are often obvious. A net-net is obvious. A great insurance company selling below tangible book value is obvious. A wide moat, growing, consistent company selling at 11 times earnings is obvious.

Buying stocks like those can make you rich. And buying them doesn't require making an actual intrinsic value estimate. It just requires recognizing that the stock's price is lower than some conservatively calculated value.

Coming up with a truly honest intrinsic value estimate is very hard. A truly honest intrinsic value estimate shouldn't be overly conservative but it still shouldn't cause you to buy stocks that will lose you loads of money.

That's a lot to ask.

There are some formulas out there. You can use a DCF. GuruFocus has a perfectly good DCF calculator you can use. After you type in a stock's ticker symbol, "DCF" is one of the tabs you can click on. Go ahead. Play around with it. It's a good tool. And a good way to get a feel for how a DCF works and exactly what assumptions are important. It's also good at showing you how much a few changes to your assumptions can radically change the intrinsic value estimate you get.

That's the biggest problem with most intrinsic value calculations. You have to make some assumptions you're comfortable with and some assumptions you're a lot less comfortable with. When you buy a stock – you want it to be because of assu! mptions y! ou are totally comfortable with.

So, I want to stress that there's a difference between the rationale for buying a stock – your proof that it's cheap – and an intrinsic value estimate. Sometimes, an intrinsic value estimate might show a stock is very cheap. And yet you shouldn't buy that stock.

That's because the reliability of your assumptions is key.

Like I said, there are many formulas out there. I talk about Ben Graham a lot. So, I'll show you one of Graham's formulas:

V = EPS * (8.5 +2g)

"V" means intrinsic value. And "g" means growth rate.

Graham intended for this formula to be a way of showing what price a stock would trade at given a level of expected growth (and thus also what level of growth was expected of a stock trading at a certain price). He didn't intend his formula to be used as the sole criterion for buying stocks. And Graham didn't propose the formula as some sort of universal intrinsic value equation.

But it's a decent starting point. It's a formula you can look at for any stock you're interested in.

Let's look at Warren Buffett's recent purchase of IBM (IBM) using Ben Graham's formula.

V = $13.25 * (8.5 + 2(7))

Here, I'm using IBM's 10-year sales growth rate of 7% as its expected future growth rate. You can argue with this. But let's see how it works with that backwards looking number.

V = $13.25 * (8.5 + 14)

Well, 8.5 + 14 is telling us that 22.5 is the right P/E multiple for IBM according to Ben Graham. Does that sound right?

Actually, it sounds a little high to modern ears. But, there's a dividend issue here. The P/E multiple you're willing to pay for a stock should depend on its future growth in per share earnings and its future dividend payments.

If a company had a high dividend payout ratio and was growing at 7% a year – a P/E ratio of 22.5 sounds fine to me. On the other hand, if a company was retaining all of its earnings and still only! growing ! its earnings per share by 7% a year – I'm not sure a P/E of 22.5 would make sense.

Later in his life, Graham developed a more complicated formula that incorporated interest rates into the equation. Personally, I find the way he did it kind of clunky and not necessarily much of an improvement. Graham recognized a legitimate concern – the risk that changes in the level of interest rates would cause changes in the level of P/E ratios – but he didn't do a really good job of addressing it.

If you just Google "intrinsic value formula" you will be overwhelmed by the number of results. Most of them are attributed to one investor or another – often Ben Graham or Warren Buffett – but none of them are as practical as you'd expect.

There's a good reason for this. The toughest part of developing an intrinsic value formula is making it "one size fits all". Different companies get their value from different places. Some companies have amazing brands, some own priceless real estate, some have big investment portfolios, others have lots of cash flow which they plow back into the business, others pay all their cash out in dividends, still others eschew dividends entirely and focus on share buybacks, while yet other companies are focused on fabulous sales growth today that will hopefully turn into amazing earnings down the road.

These are the things you can measure. But they don't allow you to make an apples to apples comparison.

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The future cash flows – which a DCF uses – are what matters. Future cash flows are what allows you to make an apples to apples comparison. It's a universal approach. But it involves a lot of guesswork. You can't measure future cash flows. You can only project them.

The things you can measure: earnings, dividends, past growth rates, and current interest rates also matter. Personally, I think ! those are! the things to focus on. Because those are things you can measure.

Moving on to a DCF does more to improve your appraisal in theory than in practice. A DCF leaves the toughest part to you. It tells you to project future cash flows.

The hard part of an intrinsic value estimate is getting from the things you know: earnings, dividends, past growth rates, interest rates, etc. to the future you don't know.

My own view is that it's better to start on firm practical ground – actual observable data in the present day – than to try to get on the best theoretical ground by using a DCF.

I'm interested in what works in practice. And I don't think a DCF does.

To me, a DCF isn't a very useful tool beyond just reminding you of the important principle that cash today is worth more than cash tomorrow.

In most cases, the actual number crunching of a DCF does not leave an investor with a clearer understanding of what a stock is worth.

That's because the danger in every DCF lies in the assumptions you are making.

Ask Geoff a Question About How to Estimate a Stock's Intrinsic Value
Check out the Ben Graham Net-Net Newsletter

BioDelivery Announces $20M Debt Financing - Analyst Blog

BioDelivery Sciences International, Inc. (BDSI) recently secured a loan from partner, MidCap Financial, LLC. Through this agreement, BioDelivery Sciences has ensured a debt financing of $20 million in the form of a senior secured loan.

The senior secured loan will mature after 3 years with the interest payable only for the first 6 months. MidCap Financial has also issued a warrant to purchase 357,143 shares of BioDelivery Sciences common stock under the terms of the agreement. The exercise price of these shares is $4.20, which is the 20-day volume-weighted average share price of BioDelivery Sciences' common stock before the loan expires.

The debt financing will significantly strengthen BioDelivery Sciences' cash position. The company has a series of pipeline events lined up, including the New Drug Application (NDA) submission for Bunavail.

Last month BioDelivery Sciences completed a successful pre-NDA meeting with the Food and Drug Administration (FDA) for Bunavail's approval for the maintenance treatment of opioid dependence. The company plans to seek US approval of Bunavail for the above indication in mid-summer this year. BioDelivery Sciences expects Bunavail to generate peak sales of over $250 million.

Moreover, BioDelivery Sciences also expects to complete two phase III studies on BEMA buprenorphine, being developed for the treatment of chronic pain. The company has a license and development agreement with Endo Health Solutions Inc. (ENDP) for BEMA buprenorphine. The completion of the second phase III study on the candidate will trigger milestone payments from Endo Health Solutions.

BioDelivery Sciences presently carries a Zacks Rank #4 (Sell). However, pharma stocks such as Jazz Pharmaceuticals (JAZZ) and Targacept, Inc. (TRGT) currently look better positioned with a Zacks Rank #1 (Strong Buy).

Top 10 Casino Stocks For 2014

 Some critics of our current monetary system will tell you that it tends to make speculators out of everyone...   After all, our current monetary system allows the Federal Reserve to "bail out" folks who make terrible lending and borrowing decisions... And the argument goes, if you can't trust the government to maintain a sound currency, you're less likely to park your savings in that currency. You're more likely to make risky bets on stocks, real estate, and bonds. Less sophisticated people are more likely to gamble with their money in lotteries and casinos.   That's the theory... But let's consult the market to see if it's working in real life...   Let's look at the Market Vectors Gaming Fund (NYSE: BJK). This fund is a broad bet on the world's largest casino and gambling stocks. Its largest holding is mega-casino-operator Las Vegas Sands.

Top 10 Casino Stocks For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Sean Williams]

  Competition can also be a bit of a concern for Las Vegas Sands. Wynn Resorts (NASDAQ: WYNN  ) presents formidable competition in Macau because of its attractiveness to upper-income earners. Also, the prospect of legalized online gaming could put Las Vegas Sands at a distinct disadvantage, since its CEO, Sheldon Adelson, has no desire to align his company's plans for such a future. Should online gaming be legalized, social-media dud Zynga (NASDAQ: ZNGA  ) could become a stud with the infrastructure already in place to help reap the rewards of the $36 billion global online gaming industry. Then again, without online gaming, Zynga is a muddled mess ... but that's an entirely different story altogether.

• [By Travis Hoium]

  Cotai is no doubt the hottest area of Macau for gaming and Wynn Resorts' (NASDAQ: WYNN  ) results from the first quarter are another data point showing one of the downsides to this trend. Macau's gaming revenue overall was up 14.8% in the first quarter, but Wynn's revenue was only up 4.4% because its only resort is on the Macau Peninsula. Casinos won't average 14.8% growth across the board because Las Vegas Sands' (NYSE: LVS  ) Sands Cotai Central added some capacity vs. last year but we definitely see gaming dollars moving to Cotai, which hurts Wynn.

• [By Jon C. Ogg]

  It looks like Wynn Resorts Ltd. (NASDAQ: WYNN) is going to keep its high-end domestic growth ambitions localized to Las Vegas, Nevada. Even if it wants to expand domestically, it will be doing so elsewhere other than in Pennsylvania. The company issued a press release on Monday afternoon confirming the end of its local application in that state.

• [By Steve Symington]

  After all, even if additional states continue to pass legislation legalizing online gambling, you can bet Zynga will face intense competition from other well-funded competitors. Michael also noted there's a chance recent rumors of a Zynga partnership with Wynn Resorts (NASDAQ: WYNN  ) could turn out to be true.

Top 10 Casino Stocks For 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Seth Jayson]

  Boyd Gaming (NYSE: BYD  ) reported earnings on April 24. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share.

• [By Travis Hoium]

  Even if a federal bill does pass, there's no guarantee Zynga would win. Online poker is all about gaining a critical mass of users, and it's a uphill battle. MGM Resorts (NYSE: MGM  ) and Boyd Gaming (NYSE: BYD  ) have already partnered with bwin.party for a U.S. online gaming venture. Bwin.party is one of the largest real-money online poker companies in the world, and with PokerStars likely shut out of the U.S. in the near future, this would be a formidable opponent. Caesars Entertainment (NASDAQ: CZR  ) has also had its eyes on online poker for some time, and with the World Series of Poker brand, it has a big draw for players. Caesars thinks so much of online poker that it's spinning off its "growth" assets, and online games are a key part of the new company.

• [By Travis Hoium]

  Earnings from Boyd Gaming (NYSE: BYD  ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�

10 Best Warren Buffett Stocks For 2014: Nevada Gold & Casinos Inc (UWN)

Nevada Gold & Casinos, Inc., incorporated on April 7, 1977, is primarily a gaming company involved in financing, developing, owning and operating gaming projects. Through the Company's wholly owned subsidiary, Gold Mountain Development, LLC, the Company owns approximately 268 acres of undeveloped land in the vicinity of Black Hawk, Colorado. On January 27, 2012, through the Company's wholly owned subsidiary, NG South Dakota, LLC, the Company acquired A.G. Trucano, Son & Grandsons, Inc. (South Dakota Gol). On July 18, 2011, through the Company's wholly owned subsidiary, NG Washington III, LLC, the Company acquired Red Dragon mini-casino in Mountlake Terrace, Washington (Washington III). On May 25, 2012, the Company sold all of the assets, including rights in the Colorado Grande name and gaming-related liabilities, of the Colorado Grande Casino to G Investments, LLC (GI).

Commercial Gaming Projects

The Company owns and operates 10 gaming facilities in Washington, and a slot machine route operation in South Dakota. These properties are wholly owned and operated by the Company: the Crazy Moose Casinos in Pasco and Mountlake Terrace, Washington, the Coyote Bob�� Casino in Kennewick, Washington, the Silver Dollar Casinos in SeaTac, Bothell and Renton, Washington, the Club Hollywood Casino in Shoreline, Washington, the Royal Casino in Everett, Washington, the Golden Nugget Casino in Tukwila, Washington, and the Red Dragon Casino in Mountlake Terrace, Washington (Washington Gold), and the South Dakota Gold slot route operation in Deadwood, South Dakota.

Commercial Casino Projects

The Company own two mini-casinos operating in Mountlake Terrace. The Red Dragon mini-casino, located in western Washington State, has a total of 15 table games, including Player Banked Poker, Baccarat, and other banked table games. The mini-casino is located within 14 miles of downtown Seattle. South Dakota Gold is a slot machine route that operates over 900 slots at approximate! ly 20 locations in Deadwood, South Dakota, which represent about 24% of the total number of slot machines in that market. Deadwood is a town of 1,300 residents located in the Black Hills, South Dakota, in the southwest corner of the state.

Top 10 Casino Stocks For 2014: NanoTech Entertainment Inc (NTEK)

NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.

The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.

The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.

Advisors' Opinion:

• [By Bryan Murphy]

  Call them hunches (because that's all they are), but now would be a great time to get out of a NanoTech Entertainment, Inc. (OTCMKTS:NTEK) position and/or get into an ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). NTEK looks like its reached its maximum potential - for the time being - while ACAD looks like it's ready to start rolling higher again.

• [By Peter Graham]

  Nyxio Technologies Corp (OTCMKTS: NYXO), COREwafer Industries Inc (OTCMKTS: WAFR) and NanoTech Entertainment, Inc (OTCMKTS: NTEK) are three small cap stocks in some very diverse industries. In fact, one of these stocks just bought a 3D ice sculpture business. So will investors see their investment melt with that small cap stock�along with the other two? Here is a closer look to help you decide for yourself:��

Top 10 Casino Stocks For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  Now what: Online gaming is slowly being legalized across the U.S., with Nevada, New Jersey, and Delaware being the first to allow it. Boyd has a potentially lucrative partnership with bwin.party and MGM Resorts (NYSE: MGM  ) , which could lead to huge profit growth, as I pointed out over a year ago. I wouldn't buy on this analyst upgrade alone, but the potential for online gaming is too big to ignore. I've built some estimates before (which can be seen here) and there's huge upside for both Boyd Gaming and MGM Resorts, but only if its legalized nationally. Until then, the potential for online gaming is minimal for Boyd.
  
  Interested in more info on Boyd Gaming? Add it to your watchlist by clicking here.

• [By M. Joy, Hayes]

  Industry trends
  Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

• [By Travis Hoium]

  The steady economic recovery in the U.S. has helped MGM Resorts (NYSE: MGM  ) , Las Vegas Sands (NYSE: LVS  ) , and Wynn Resorts (NASDAQ: WYNN  ) turn Las Vegas from a drag to a positive line on the income statement. But for each, Macau continues to be the most important.

• [By Travis Hoium]

  The next step
  The top end of the market has been doing well over the past two years, and Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) have been the beneficiaries. Las Vegas Sands's Las Vegas�revenue was up 7% in the first quarter, while Wynn's�was up 6.6%. But MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) haven't seen the same success in the lower end of the market.

Top 10 Casino Stocks For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Dan Radovsky]

  Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

• [By Travis Hoium]

  What: Shares of Ameristar Casinos (NASDAQ: ASCA  ) and Pinnacle Entertainment (NYSE: PNK  ) fell as much as 11% today after the government brought into question the merger of the two companies.

Top 10 Casino Stocks For 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Top 10 Casino Stocks For 2014: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

Top 10 Casino Stocks For 2014: Caesars Entertainment Corp (CZR)

Caesars Entertainment Corporation, incorporated on November 2, 1989, is a diversified casino-entertainment provider. The Company�� business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc. (CEOC), although certain material properties are not owned by CEOC. As of December 31, 2012, it owned, operated, or managed, through various subsidiaries, 52 casinos in 13 United States states and seven countries. The majority of these casinos operate in the United States, primarily under the Caesars, Harrah��, and Horseshoe brand names, and in England. In November 2012, the Company sold its Harrah's St. Louis casino to Penn National Gaming, Inc. In December 2012, the Company purchased all of the net assets of Buffalo Studios, LLC, a social and mobile games developer and owner of Bingo Blitz.

The Company�� casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. The Company�� land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa and one in Uruguay. As of December 31, 2012, its facilities had an aggregate of approximately three million square feet of gaming space and approximately 43,000 hotel rooms. In southern Nevada, Caesars Palace, Harrah�� Las Vegas, Rio All-Suite Hotel & Casino, Bally�� Las Vegas, Flamingo Las Vegas, Paris Las Vegas, Planet Hollywood Resort and Casino, The Quad Resort & Casino (formerly the Imperial Palace Hotel and Casino), Bill�� Gamblin��Hall & Saloon, and Hot Spot Oasis are located in Las Vegas and draw customers from throughout the United States. Harrah�� Laughlin is located near both the Arizona and California borders and draws customers primarily from! the southern California and Phoenix metropolitan areas and, to a lesser extent, from throughout the United States through charter aircraft. In northern Nevada, Harrah�� Lake Tahoe and Harveys Resort & Casino are located near Lake Tahoe and Harrah�� Reno is located in downtown Reno. These facilities draw customers primarily from northern California, the Pacific Northwest, and Canada.

The Company�� Atlantic City casinos, Harrah�� Resort Atlantic City, Showboat Atlantic City, Caesars Atlantic City, and Bally�� Atlantic City, draw customers primarily from the Philadelphia metropolitan area, New York, and New Jersey. Harrah�� Philadelphia (formerly Harrah's Chester) is a combination harness racetrack and casino located approximately six miles south of Philadelphia International Airport and draws customers primarily from the Philadelphia metropolitan area and Delaware. The Company�� Chicagoland dockside casinos, Harrah�� Joliet in Joliet, Illinois, and Horseshoe Hammond in Hammond, Indiana, draw customers primarily from the greater Chicago metropolitan area. In southern Indiana, it owns Horseshoe Southern Indiana, a dockside casino complex located in Elizabeth, Indiana, which draws customers primarily from northern Kentucky, including the Louisville metropolitan area, and southern Indiana, including Indianapolis. In Louisiana, the Company owns Harrah�� New Orleans, a land-based casino located in downtown New Orleans, which attracts customers primarily from the New Orleans metropolitan area. In northwest Louisiana, Horseshoe Bossier City, a dockside casino, and Harrah�� Louisiana Downs, a thoroughbred racetrack with slot machines, both located in Bossier City, cater to customers in northwestern Louisiana.

The Company owns the Grand Casino Biloxi, located in Biloxi, Mississippi, which caters to customers in southern Mississippi, southern Alabama, and northern Florida. Harrah�� North Kansas City dockside casino draws customers from the Kansas City metropolitan ar! ea. Harra! h�� Metropolis is a dockside casino located in Metropolis, Illinois, on the Ohio River, drawing customers from southern Illinois, western Kentucky, and central Tennessee. Horseshoe Tunica, Harrah�� Tunica, and Tunica Roadhouse Hotel & Casino, dockside casino complexes located in Tunica, Mississippi, are approximately 30 miles from Memphis, Tennessee and draw customers primarily from the Memphis area and, to a lesser extent, from throughout the United States through charter aircraft. Horseshoe Casino and Bluffs Run Greyhound Park, a land-based casino and pari-mutuel facility, and Harrah�� Council Bluffs Casino & Hotel, a dockside casino facility, are located in Council Bluffs, Iowa, across the Missouri River from Omaha, Nebraska. At Horseshoe Casino and Bluffs Run Greyhound Park, the Company owns the assets other than gaming equipment, and leases these assets to the Iowa West Racing Association (IWRA), a nonprofit corporation, and it manages the facility for the IWRA under a management agreement expiring in October 2024. The license to operate Harrah�� Council Bluffs Casino & Hotel is held jointly with IWRA, the qualified sponsoring organization.

The Conrad Resort & Casino located in Punta Del Este, Uruguay (the Conrad), draws customers primarily from Argentina and Uruguay. In November 2012, the Company announced that it had entered into a definitive agreement with Enjoy S.A. (Enjoy) to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., its subsidiary, which owns and operates the Conrad, and the Company will become a 10% shareholder in Enjoy upon consummation of the agreement. Upon the closing of the transaction, which is subject to certain conditions, including the receipt of all regulatory and governmental approvals, Enjoy will assume primary responsibility for management of the Conrad. Enjoy will have the option to acquire the remaining stake in Baluma S.A. between years three and five following closing. The cl! osing of ! the transaction remains subject to a number of conditions, including regulatory and governmental approvals in both Uruguay and Chile.

The Company owns four casinos in London: the Sportsman, the Golden Nugget, The Playboy Club London, and The Casino at the Empire. Its casinos in London draw customers primarily from the London metropolitan area, as well as international visitors. The Company also owns Alea Nottingham, Alea Glasgow, Alea Leeds, Manchester 235, Rendezvous Brighton, and Rendezvous Southend-on-Sea in the provinces of the United Kingdom, which primarily draw customers from their local areas. Pursuant to a concession agreement, it also operates two casinos in Cairo, Egypt, The London Club Cairo (which is located at the Ramses Hilton) and Caesars Cairo (which is located at the Four Seasons Cairo), which draw customers primarily from other countries in the Middle East. Emerald Safari, located in the province of Gauteng in South Africa, draws customers primarily from South Africa. It owsn and operates Bluegrass Downs, a harness racetrack located in Paducah, Kentucky.

The Company owns three casinos for Indian tribes: Harrah�� Phoenix Ak-Chin, located near Phoenix, Arizona, Harrah�� Cherokee Casino and Hotel, and Harrah�� Rincon Casino and Resort, located near San Diego, California. The Company manages Caesars Windsor, located in Windsor, Ontario, which draws customers primarily from the Detroit metropolitan area, Horseshoe Cleveland casino in Ohio, which it manages for Rock Ohio Caesars LLC (ROC), a venture with Rock Ohio Ventures, LLC (Rock Gaming), in which it has a 20% equity interest, and the Horseshoe Cincinnati casino in Ohio for ROC for a fee under a management agreement that will expire in March 2033. It also has a minority interest in Sterling Suffolk Racecourse, LLC (Suffolk Downs), which owns a horse-racing track in Boston, Massachusetts, and the right to manage a future gaming facility. The Company also owns ans operates a golf course on 175 acres of prime real! estate t! hrough a land concession on the Cotai strip in Macau.

Advisors' Opinion:

• [By Travis Hoium]

  The recovery in Las Vegas is gaining steam, and after 6.4% growth in May and 4.3% growth over the past year, the gaming companies there have some room to breathe. MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) have the most to gain, but Wynn Resorts (NASDAQ: WYNN  ) and Las Vegas Sands (NYSE: LVS  ) will benefit as well. In the following video, gaming analyst Travis Hoium covers who will benefit the most from Las Vegas' growth and one stock to stay away from.�

• [By AlphaStreetResearch]

  Caesars Entertainment Corporation (CZR) is a highly overvalued gaming, hotel, and entertainment company with deteriorating fundamentals on all levels in a highly competitive environment. The company's stock has seen a massive run to the upside on the coattails of other casino and entertainment companies in the space. A considerable catalyst for the push higher in these stocks is the good news coming out of Macau, but this is an area where Caesars has absolutely no exposure and will be locked out of for the foreseeable future after failing to take appropriate licensing measures. Below is our introduction into the business model, its weaknesses, and the new selling or shorting opportunity that exists for CZR after the recent appreciation in share price. Investors will soon realize that there is little upside value in this company and that there are much better opportunities in this space. The company is now amidst a major struggle from a debt standpoint with major deadlines approaching over the next year and a half. The company is in no position to thrive going forward unless major steps are taken to overhaul the company's capital structure. Caesars Entertainment has a market cap of $3.19 Billion after the stock has moved up over 225% year to date and reports its next quarter on October 31, 2013. With this in mind, we value CZR at $21.00 by year-end of 2013 and $14.00 by August 1, 2014, a decrease of 40% from current levels. We will later highlight:

• [By Travis Hoium]

  Even if a federal bill does pass, there's no guarantee Zynga would win. Online poker is all about gaining a critical mass of users, and it's a uphill battle. MGM Resorts (NYSE: MGM  ) and Boyd Gaming (NYSE: BYD  ) have already partnered with bwin.party for a U.S. online gaming venture. Bwin.party is one of the largest real-money online poker companies in the world, and with PokerStars likely shut out of the U.S. in the near future, this would be a formidable opponent. Caesars Entertainment (NASDAQ: CZR  ) has also had its eyes on online poker for some time, and with the World Series of Poker brand, it has a big draw for players. Caesars thinks so much of online poker that it's spinning off its "growth" assets, and online games are a key part of the new company.

Top 10 Casino Stocks For 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

• [By Paul Ausick]

  Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.