Post Office Says It Lost $5 Billion in the Last Year

Andrew Harrer/Bloomberg via Getty Images The U.S. Postal Service says it lost $5 billion over the past 12 months. It's the seventh straight year the agency has reported a net loss. Postal officials say the loss increases the urgency for Congress to let them end Saturday mail delivery and reduce payments for retiree health benefits. The Postal Service has struggled for years with declining mail volume and required payments of $5.6 billion annually in health care costs for future retirees. It has defaulted on three of those payments. Revenue from package delivery continued to grow, rising 8 percent last year. But that's not enough to offset losses in first class mail, which has been the post office's most profitable service.

UnitedHealthcare Medicare Advantage cuts doctors

Dorathy Senay's doctor had some bad news after her last checkup, but it wasn't about her serious blood disorder called amyloidosis. Her Medicare Advantage managed care plan from UnitedHealthcare/AARP is terminating the doctor's contract Feb. 1.

She is also losing her oncologist at the prestigious Yale Medical Group — the entire 1,200 physician practice was axed.

Senay, 71, of Canterbury, Conn., is among thousands of UnitedHealthcare Medicare members in 10 states whose doctors will be cut from their plan network.

The company is the largest Medicare Advantage insurer in the country, with nearly 3 million members. More than 14 million older or disabled Americans are enrolled in Medicare Advantage plans, an alternative to traditional Medicare that offers medical and usually drug coverage but requires members to use the plan's network of providers.

"I have a rare incurable disease, and these doctors have saved my life," said Senay. "I am in good hands, and I will not change doctors."

UnitedHealthcare has begun telling members about the network changes. But there is now about one week before the Dec. 7 deadline for choosing new coverage next year. Timing is crucial since once they sign up, most Advantage beneficiaries are locked into their plans for the year. Losing a doctor does not constitute an exception to the rule. Insurers can drop providers any time with 30 days advance notice to members.

Top 10 Undervalued Companies To Watch For 2014

Several medical associations are encouraging doctors to appeal the cancellations, which could make it more difficult for seniors to choose a plan in the time remaining. Neither Medicare, which oversees the Advantage plans, nor UnitedHealthcare would disclose how many providers will be dropped.

The American Medical Association and 39 state affiliates, along with 42 medical specialty and patient advocacy groups, have urged ! Medicare chief Marilyn Tavenner to extend the enrollment deadline and require insurers to reinstate the doctors for another year. Medicare has told the Connecticut attorney general that it will not postpone the deadline.

UnitedHealthcare spokeswoman Jessica Pappas said in a written response to questions, "While these changes can be difficult for patients and their doctors, they are necessary to meet rising quality standards, slow the increase in health costs and sustain our plans in an era of Medicare Advantage funding cuts." However, the doctors dropped from Medicare Advantage plans can still treat patients covered under other UnitedHealthcare policies.

The Affordable Care Act phases in reductions in government payments to Medicare Advantage plans — $156 billion over 10 years — to bring the program into line with the costs of caring for seniors in traditional Medicare.

Medicare officials review the private plans every year to make sure they comply with network adequacy and other requirements, but the agency did not approve the reconfigured networks resulting from the new provider cancellations. Spokesman Raymond Thorn said the agency "is currently reviewing UHC and other plans' provider networks and closely monitoring all areas that have experienced disruptions to ensure that beneficiaries have full, transparent and timely information and access to needed care."

While Medicare officials would not disclose how many provider terminations they are scrutinizing, state medical groups have provided some tips for investigators. The Ohio State Medical Association estimates that UnitedHealthcare has canceled contracts with hundreds of Ohio doctors effective Jan. 1. The cancellations include most of the orthopedic surgeons in Dayton, the only hand specialty practice serving the Cincinnati area, a large gastroenterology practice with 2,500 patients that also provides most of the inpatient care at five Cincinnati-area hospitals, and the largest practice of retina specialists ser! ving 600 ! UnitedHealthcare members, many with macular degeneration, in central and southern Ohio. In Connecticut, UnitedHealthcare is terminating about 2,250 physicians, including 810 specialists, Feb. 1, said Mark Thompson, executive director of the Fairfield County Medical Association, prompting the medical associations in Fairfield and Hartford counties to file a federal lawsuit to stop the cancelations.

In New York City, UnitedHealthcare's contracts with about 2,100 physicians will be canceled, affecting some 8,000 patients, according to the Medical Society of New York.

In Florida, UnitedHealthcare has dropped the state's only National Cancer Institute-designated cancer treatment facility, the Moffitt Cancer Center, and its 250 physicians in Tampa.

Senay was able to find another Advantage plan that includes her doctors, with the help of Tammy Harris, a Medicare counselor with Connecticut's senior health insurance information program.

Harris said not everyone will be so lucky. Elderly patients worry about traveling long distances to reach new doctors, she said.

"If they have to drive to New Haven," she said, "it's like going to the moon."

Kaiser Health News is an editorially independent program of the Henry J. Kaiser Family Foundation, a non-profit, non-partisan health policy research and communication organization not affiliated with Kaiser Permanente.

Jim Cramer's Top Stock Picks: AAPL PPG ETN WLL AMZN

Top 10 China Companies For 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Here are some of the hot stocks Jim Cramer talked about on Friday's "Mad Money" on CNBC:

AAPL data by YCharts

Apple (AAPL): Cramer said he expects to see increased gross margins from Apple when the company reports next Monday.

PPG data by YCharts

PPG (PPG): Cramer said this global chemical and coatings manufacturer remains best in show.

ETN data by YCharts

Eaton (ETN): The world's economy is starting to look a little brighter, said Eaton's CEO, and that made Cramer once again recommend this electrical giant.

WLL data by YCharts

Whiting Petroleum (WLL): Need another reason to invest in the American oil revolution? How about Whiting's 20-cents-a-share earnings beat on a 56% rise in revenue?

AMZN data by YCharts

Amazon.com (AMZN): Cramer congratulated Amazon for another job well done and told the skeptics it's time to move on.

To read a full recap of "Mad Money" on CNBC, click here.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL and ETN. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

What You Need To Know About Binary Options Outside The U.S.

Binary options are a simple way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards of these often misunderstood instruments. Binary options are different from traditional options. If traded, one will find these options have different payouts, fees and risks, not to mention an entirely different liquidity structure and investment process. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these "exotic options." This article is based on binary options issued outside the U.S. In June 2013, the U.S. Securities and Exchange Commission warned investors about the potential risks of investing in binary options and charged a Cyprus-based company with selling them illegally to U.S. investors.

What Are Binary Options?
Binary options are classed as exotic options, yet binaries are extremely simple to use and understand in terms of functionality. Providing access to stocks, indices, commodities and foreign exchange, a binary option can also be called a fixed-return option. This is because the option has an expiry date/time and also what is called a strike price. If a trader wagers correctly on the market's direction and the price at the time of expiry is on the correct side of the strike price, the trader is paid a fixed return regardless of how much the instrument moved. A trader who wagers incorrectly on the market's direction ends up losing a fixed amount of her/his investment or all of it.

If a trader believes the market is going higher, she/he would purchase a "call." If the trader believes the market is going lower, she/he would buy a "put." For a call to make money, the price must be above the strike price at the expiry time. For a put to make money, the price must be below the strike price at the expiry time. The strike price, expiry, payout and risk are all disclosed at the trade's outset. The payout and risk may fluctuate as the market moves, since a call that is "in the money" by a great degree stands a good chance of finishing in the money if there is a short time to expiration. Yet, the pay rate out and risk locked in by the trader when the trade was taken will stand at expiration. This means different traders, depending on when they enter, may have different payouts.

Binary Option Example
A trader is watching the market, and based on her/his analysis predicts the market is going higher, except she/he is not sure by how much. The trader decides to buy a (binary) call option on the S&P 500 index. Suppose the index is currently at 1,800 and she/he finds a binary option through a broker that offers this strike price that expires before the end of the day. Since binary options are available on all sorts of time frames - from minutes to months - and with all sorts of strike prices, the trader has no problem finding one to buy. She/he finds one that offers a 60% payout if the option expires above the strike price (call option), but if the price is below 1,800 at the expiry time, she/he will lose 90% of the investment.

The trader can invest almost any amount, although this will vary from broker to broker. Often there is a minimum such as $10 and a maximum such as $10,000 (check with the broker for specific investment amounts). The trader invests $100 in a call that will expire in 30 minutes. After 30 minutes, the trader will know if she/he has made or lost money. The price at expiry may be the last quoted price, or the (bid+ask)/2. Each broker will specify expiry price rules, and the trader cannot generally cash out or exit the trade before expiration.

In this case, when the option expired the last quote on the S&P 500 was 1,802. Therefore, our trader made a $60 profit (or 60% of $100). Had the price finished below 1,800, she/he would have lost $90 (or 90% of $100). If the price had expired exactly on the strike price, it is common for the trader to receive her/his money back with no profit or loss, although each broker may have different rules as it is an over-the-counter (OTC) market. The broker transfers profits and losses into and out of the trader's account.

The Upside and Downside
There is an upside to these trading instruments, but the upside requires some perspective. A major advantage is that the risk and reward are known. It does not matter how much the market moves in favor or against the trader, there are only two outcomes: win a fixed amount or lose a fixed amount. Also, there are generally no fees, such as commissions, with these trading instruments (brokers may vary). The options are simple to use, and there is only one decision to make: Is the underlying asset going up or down? There are also no liquidity concerns, because the trader never actually owns the underlying asset, and therefore brokers can offer innumerable strike prices and expiration times/dates, which is attractive to a trader. A final benefit is that a trader can access multiple asset classes in global markets generally anytime a market somewhere in the world is open.

At first glance, it seems like an easy way to get rich. Yet there is a downside, and one point in particular, which violates what is often considered a cardinal trading rule. The major drawback of binary options is that the reward is always less than the risk. This means a trader must be right a high percentage of the time to cover losses. While payout and risk will fluctuate from broker to broker and instrument to instrument, one thing remains constant: Losing trades will cost the trader more than she/he can make on winning trades.

Another disadvantage is that the OTC markets are unregulated, and there is little oversight in the case of a trade discrepancy. While brokers often use a large external source for their quotes, traders may still find themselves susceptible to unscrupulous practices, even though it is not the norm. Another possible concern is that no underlying asset is owned; it is simply a wager on an underlying asset's direction. The money invested cannot be withdrawn nor the trade exited until the expiry time/date. Starting in 2008, some options exchanges such as the Chicago Board Options Exchange (CBOE) began listing binary options. The SEC regulates the CBOE, which offers investors increased protection compared to OTC markets.

The Bottom Line
Binary options are an alternative for speculating or hedging but come with advantages and disadvantages. The positives include a known risk and reward, no commissions, innumerable strike prices and expiry dates, access to multiple asset classes in global markets and customizable investment amounts. The negatives include non-ownership of any asset, little regulatory oversight and a winning payout that is always less than the loss on losing trades. Traders who use these instruments need to pay close attention to their individual broker's rules, especially regarding payouts and risks, how expiry prices are calculated and what happens if the option expires directly on the strike price. Traders should read through all the broker's information and be aware of all risks before making trades.

Top Penny Stocks To Own For 2014

In commemoration of Earth Day, retailer ANN INC (NYSE: ANN  ) , the parent company of Ann Taylor and LOFT, says that not only has it already met its goal two years early of reducing its "carbon footprint" by 9% by 2015 but it's doubled it. And ANN isn't done "greening" yet.

ANN announced yesterday that an analysis of its year-end 2012 results shows that it has already reduced carbon emissions by 20% compared to what it was emitting in 2008. The company explained that introduction of more energy efficient LED lighting in its nearly 400 stores, plus changing energy usage "behavior" among its associates, helped it to meet (and exceed) its goal ahead of schedule.

What's more, rather than rest on its laurels, ANN says it's doubling down on its success by setting a new 2015 goal: 30% shrinkage in its carbon footprint in comparison to 2008. In other words, that's even more than its original 8% goal and on top of the 20% improvement it's already achieved.

Investors, however, weren't particularly impressed. ANN shares traded mostly flat on Monday, losing a penny in value to close at $28.03.

Top Penny Stocks To Own For 2014: Kulicke and Soffa Industries Inc.(KLIC)

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes, and power modules. It also services, maintains, repairs, and upgrades its equipment. The company operates in two segments, Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, heavy wire wedge bonders, stud bumpers, and die bonders. Its Ball bonders are used to connect very fine wires, primarily made of gold or copper, between the bond pads of the semiconductor device or die, and the leads on its package; Heavy wire wedge bonders are used in the power semiconductor and automotive power module markets; and Die bonders are used to attach a die to the substrate or lead frame, which will house the semiconductor device. This segment?s Stud bumpers mechanically apply bumps to die, while still in the wafer format, for some variants of the flip chip assembly process. The Expendable Tools segment manufactures and sells various expendable tools for a range of semiconductor packaging applications. Its products include capillaries, bonding wedges, and saw blades. The company?s customers primarily comprise semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, and automotive electronics suppliers in the United States and the Asia/Pacific region. Kulicke and Soffa Industries sells its products through manufacturers? representatives and distributors. The company was founded in 1951 and is headquartered in Singapore.

Advisors' Opinion:

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Kulicke and Soffa Industries (NASDAQ: KLIC  ) has earned a coveted five-star ranking.

Top Penny Stocks To Own For 2014: The Hackett Group Inc.(HCKT)

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in the United States and western Europe. The company offers executive advisory programs, benchmarking, business transformation, and technology consulting services, as well as shared services, offshoring, and outsourcing advice. Its executive advisory programs consists of advisor inquiry, an inquiry service used by clients for access to fact-based advice on proven approaches and methods to increase the effectiveness of selling, general, and administrative processes (SG&A); best practice research, a research that provides insights into the proven approaches in use at organizations; peer interaction program comprising member-led Webcasts, annual Best Practice Conferences, annual Member Forums, membership performance surveys, and client-submitted content; and best practice intelligence center, an online, searchable repository of practices, performance metrics, conference presentat ions, and associated research. The company?s bench marking services conduct studies in the areas of SG&A, finance, human resources, information technology, procurement, enterprise performance management, shared service centers, and working capital management. These services are used by clients to establish priorities, generate organizational consensus, align compensation to establish performance goals, and develop the required business case for business and technology investments. Its business transformation programs help clients to develop coordinated strategy for achieving performance improvements across the enterprise; and Hackett Technology Solutions help clients choose and deploy the software applications that meet their needs and objectives. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in January 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.

Advisors' Opinion:

• [By ValueArtifex]

  One such situation currently in the process of unfolding this month is a Dutch Tender by The Hackett Group (HCKT). I will briefly discuss the underlying business, what exactly a Dutch Auction (or in this case, a Tender) is, what options investors have when approaching this situation and how it could play out.

Top 10 Cheap Companies To Watch For 2014: Sterlite Industries(India)

Sterlite Industries (India) Limited operates as a non-ferrous metals and mining company in India and internationally. It engages in the smelting and processing of copper and production of copper byproducts. The company?s primary products consist of copper cathode and continuos cast rods, as well as by products comprise sulphuric acid, phosphoric acid, hydrofluoro silicic acid, gypsum, ferro sand, and slime. It also owns the Mt. Lyell copper mine at Tasmania in Australia, as well as owns various zinc assets, including Skorpion Zinc in Namibia; Black Mountain Mines in South Africa; and Lisheen Mines in Ireland. In addition, the company produces aluminum from its bauxite mines. Its aluminum products include aluminum ingots and wire rods; rolled products, such as coils and sheets; and vanadium sludge as a by-product. Further, the company smelts and produces lead and zinc, as well as produces and sells sulphuric acid to fertilizer manufacturers and other industries; and silver ingots primarily to industrial users. It operates three lead-zinc mines in the state of Rajasthan, northwest India. Additionally, it involves in power generations business. As of March 31, 2011, the company had a power generation capacity of 1,041 MW from its thermal power plants and wind power plants. The company was formerly known as Sterlite Cables Limited and changed its name to Sterlite Industries (India) Limited in 1986.The company was incorporated 1975 and is based in Mumbai, India. Sterlite Industries (India) Limited is a subsidiary of Vedanta Resources plc.

Advisors' Opinion:

• [By Sy Harding]

  Those largest holdings include Taiwan Semiconductor, Petroloeo Brasileiro (Brazil), China Mobile, China Construction Bank, CNOOK (China Offshore Drilling), Gazprom OAO (Russia), America Movil (Mexico), Sasol Ltd. (South Africa), Hon Hai Precision (Taiwan), and Infosys (India).

Top Penny Stocks To Own For 2014: S1 Corporation(SONE)

S1 Corporation provides payments and financial services software solutions in the United States and internationally. The company operates in three segments: Banking: Payments, Banking: Large Financial Institution (FI), and Community Financial Institution (FI). The Payments segment provides ATM and retail point-of-sale driving, card management, and merchant acquiring solutions to financial institutions, retailers, and transaction processors of various sizes globally. The Banking: Large FI segment offers consumer banking, small business and corporate online banking, trade finance, and mobile banking solutions to large banks globally; branch and call center banking solutions to large banks outside of the United States; and software, custom software development, hosting, and other services to State Farm Mutual Automobile Insurance Company. The Banking: Community FI segment provides consumer and small business online banking, mobile banking, voice banking, and branch and call c enter banking solutions to community and regional banks, and credit unions in the United States. The company also provides various professional services, such as project management, implementation, custom software development, integration, educational, and Web design services; and customer support services. In addition, it offers hosting services comprising systems outsourcing, data center hosting, and operational management and control across a range of personal, small business and corporate Internet banking, mobile, voice, and payment processing applications. The company primarily serves banks, credit unions, retailers, and transaction processors. S1 Corporation was founded in 1934 and is headquartered in Norcross, Georgia.

Top Penny Stocks To Own For 2014: United Community Bancorp(UCBA)

United Community Bancorp operates as the holding company for the United Community Bank that provides banking products and services to individuals and businesses in southeastern Indiana. It offers a range of deposit instruments, including noninterest-bearing demand accounts, such as checking accounts; interest-bearing accounts, consisting of NOW and money market accounts; regular savings accounts; and certificates of deposit, as well as municipal deposits. It also originates one- to four-family residential real estate, multi-family real estate, and nonresidential real estate and land loans, as well as construction and commercial loans. In addition, the company provides a range of consumer loans consisting of home equity loans and lines of credit, as well as loans secured by savings accounts or certificates of deposit (share loans); new farm and garden equipment, automobile, and recreational vehicle loans; and secured and unsecured personal loans. The company is headquartere d in Lawrenceburg, Indiana. United Community Bancorp is a subsidiary of United Community MHC.

Top Penny Stocks To Own For 2014: NetSol Technologies Inc.(NTWK)

Netsol Technologies, Inc. designs, develops, and markets software products for the automobile finance and leasing, banking, healthcare, and financial services industries worldwide. It offers NetSol Financial Suite, which is an end-to-end solution that covers the leasing and finance cycle. The NetSol Financial Suite consist of software applications comprising Point of Sale, a front office processing system for the finance sector; Credit Application Processing System to handle the incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System to manage and maintain a contract; Wholesale Finance System to automate and manage the floor plan/bailment activities of dealerships; and Fleet Management System to handle fleet management needs. The NetSol Financial Suite also includes LeasePak that develops Web-enabled and Web-based tools for the leasing technology industry. In addition, the company offers LeaseSoft Portals and Modul es; enterprise wide information systems, such as LRMIS, MTMIS, and Hospital Management Systems; accounting outsourcing services; and career and technology programs. Further, it provides portfolio management systems for the financial services industry; and consulting, custom development, systems integration, and technical services for the healthcare, insurance, real estate, and technology markets. Additionally, the company offers business intelligence, independent system review, information security, and software process improvement consulting services; maintenance and support, and project management services; and solutions for the defense and military forces. It serves Fortune 500 manufacturers, automakers, financial institutions, utilities, technology providers, and government agencies. The company was formerly known as NetSol International, Inc. and changed its name to NetSol Technologies, Inc. in March 2002. NetSol Technologies, Inc. was founded in 1997 and is based in Ca labasas, California.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 stock that's quickly pushing within range of triggering a near-term breakout trade is Netsol Technologies (NTWK), which designs, develops, markets and exports proprietary software products to customers in the automobile finance and leasing, banking, health care and financial services industries internationally. This stock is off to a strong start in 2013, with shares up by 28%.

  If you take a look at the chart for Netsol Technologies, you'll notice that this stock has been downtrending badly for the last two months, with shares sliding sharply lower from its high of $12.10 to its recent low of $7.03 a share. During that downtrend, shares of NTWK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NTWK have started to stabilize and reverse its downtrend, since the stock has started to make higher lows and higher highs over the last few weeks. This move is quickly pushing shares of NTWK within range of triggering a near-term breakout trade.

  Market players should now look for long-biased trades in NTWK if it manages to break out above some near-term overhead resistance at $7.74 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 225,909 shares. If that breakout hits soon, then NTWK will set up to re-test or possibly take out its next major overhead resistance levels at $8.71 to its 50-day moving average at $9.16 a share. Any high-volume move above those levels will then give NTWK a chance to tag its 200-day at $10.20 to more resistance at $10.45 a share.

  Traders can look to buy NTWK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $7.20 or $7.03 a share. One can also buy NTWK off strength once it clears $7.74 a share with volume and then simply use a stop that sits a comfortable percentage fr

• [By CRWE]

  NetSol Technologies (Nasdaq:NTWK), a provider of global IT and enterprise application solutions, reported that Mercedes-Benz Leasing Company Ltd. (China), went live with the NetSol Financial Suite (NFS(tm)).

Can Yahoo Head Higher After Earnings?

With shares of Yahoo (NASDAQ:YHOO) trading around $33, 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.

Yahoo reported third quarter earnings after the bell on Tuesday, and the company's net revenue was down due to ad revenue, which fell 7 percent year over year. There is still a lot of optimism for Yahoo surrounding the company's investment in Chinese e-commerce giant Alibaba, which is planning an IPO. During the earnings call, Yahoo announced that it would sell fewer shares than originally planned when Alibaba goes public, which will allow it to capitalize on its investment if Alibaba's shares rise post-IPO, Reuters reports.

T = Technicals on the Stock Chart Are Strong

Yahoo stock has been exploding to the upside in the last several months. The stock is currently trading near highs for the year and looks poised to continue. 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 above its rising key averages, which signal neutral to bullish price action in the near-term.

Top Oil Stocks For 2014

(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	36.25%	26%	25%

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

	Put IV Skew	Call IV Skew
November Options	Flat	Average
December Options	Flat	Average

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

On the next page, let’s take a look at the earnings and revenue growth rates and 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 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-6.67%	66.67%	52.17%	-2.15%
Revenue Growth (Y-O-Y)	0.33%	-6.78%	-6.62%	1.64%
Earnings Reaction	-0.61%*	10.34%	-0.37%	-3.00%

Yahoo has seen mixed earnings and revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Yahoo’s recent earnings announcements.

* As of this writing

P = Excellent 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	66.83%	26.70%	12.19%	30.29%	24.60%

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

Conclusion

Yahoo is an Internet bellwether that provides a multitude of services to consumers and companies worldwide. A recent earnings announcements had investors expecting a little more from the company. The stock has been moving higher in recent quarters and is now trading near highs for the year. Over the last four quarters, earnings and revenues have been mixed which have produced conflicting feelings among investors about earnings announcements. Relative to its peers and sector, Yahoo has been a year-to-date performance leader. Look for Yahoo to OUTPERFORM.

Time Warner, Comcast Tie-up Meant to Gain Leverage over Producers

The country's two largest cable operators, Comcast Corp. (NASDAQ: CMCSA) and Time Warner Cable Inc. (NYSE: TWC) have reportedly had discussions in the past few months related to a combination. Time Warner took the lead in an apparent attempt to forestall a bid from Charter Communications Inc. (NASDAQ: CHTR).

Time Warner, the country's second largest cable operator with some 11.4 million subscribers, apparently prefers a tie-up with Comcast, the country's biggest cable company with 22 million subscribers. Time Warner has seen the writing on the wall, and so has Charter: only the very large will survive. Time Warner lost 306,000 cable TV subscribers in the third quarter. Comcast lost nearly 130,000 and total cable subscriber numbers are down more than 350,000 compared with last year.

Charter had about 4.2 million residential cable subscribers at the end of the third quarter, a net loss of 143,000 in the past 12 months.

Cable subscriber numbers are down by nearly 10 million since reaching a peak of nearly 67 million in 2001 according to research firm SNL Kagan. Streaming video customer numbers are headed in the other direction, from 14.5 million in 2001 to 46.8 million in 2012, not far behind the 56.4 million total cable customers.

And it's not just lost subscriber revenue, but lost leverage over content providers. Time Warner blamed its disputes with CBS Corp. (NYSE: CBS) and Journal Communications over retransmission fees for its subscriber losses in the third quarter. Content producers like CBS are demanding higher retransmission payments from cable and satellite providers and dwindling subscriber numbers knock a sizeable chunk off providers' take.

A number of pay-TV operators have been saying for some time now that the industry needs to consolidate. Charlie Ergen, CEO of Dish Network Corp. (NASDAQ: DISH) has been among the most outspoken on the issue even though he has failed in a number of efforts to consolidate. Competitor DirecTV (NASDAQ: DTV) is not interested in a merger and Ergen's attempts to acquire either Clearwire or Sprint were utter flops.

The Wall Street Journal cites unnamed sources familiar with the situation as saying that discussions between Time Warner and Comcast have not been formal and that similar talks have taken place occasionally over the past several years. Charter has talked with Bank of America, Barclays, and Deutsche Bank about putting together a financing package presumably to make a bid for Time Warner.

Time Warner's shares have jumped about 10% on Friday to a new 52-week high of $132.75. The stock's 52-week low is $84.57.

Shares of Comcast rose to a new 52-week high of $49.15 against a low of $35.90, and Charter's shares rose about 2% to $129.29 in a 52-week range of $68.44 to $144.02.

Sprint Finishes Last in Consumer Reports Service Survey

Michael Sohn/APSprint CEO Dan Hesse Sprint has been ranked last among U.S. cellphone service operators in a customer satisfaction survey by the influential Consumer Reports organization, scoring dismal marks for measures ranging from voice to 4G reliability. No-frills carrier Consumer Cellular received the highest overall score of 88 out of 100, followed by U.S. Cellular (USM) with 75. Sprint received the lowest score of 59, faring the worst in terms of value, voice, text and 4G services. The annual ratings were based on a September survey of 58,399 cellphone service subscribers by the Consumer Reports National Research Center, which publishes widely followed surveys and reviews of everything from cars to refrigerators. In last year's survey, Sprint (S) trailed only Verizon Wireless among the four major carriers. Verizon Wireless (VZ) (VOD) ranked highest again this year with a score of 71. T-Mobile US (TMUS) rated 65 and AT&T (T) 64, according to survey results released Thursday. The rankings are based on ratings for voice, text and 4G, taking into account the occurrence of problems and adjusted for frequency of use. Sprint has been revamping its network after years of customer losses. The company, which is 80 percent owned by SoftBank, warned in October that customer defections would remain high in coming quarters. The company reported a decline in third-quarter revenue as it lost more subscribers than expected following the shutdown of its older network. "Our latest cell service satisfaction survey revealed a somewhat precipitous decline by Sprint that shuffled the rankings of the major standard service providers," Glenn Derene, Electronics Content Development Team Leader for Consumer Reports, said in a statement.

Mint made the Mac App Store's Best of 2012 list for a reason. This simple, clean app shows how much you are spending in each category of your budget by monitoring all of your transactions. We love signing in and getting a quick, dirty rundown of where our money has gone over the last week, and using their personalized budget tools to stay on track. We highly recommend adjusting your budgets for summer months. You might spend less on transportation when the weather is nice, and chances are you could use that extra cash to flesh out that restaurant tab, right?

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Wild ‘55 Lincoln concept car could fetch $2 mil…

Back in the golden age of big American concept cars, wonder machines that spoke to an era of almost unlimited dreams and prosperity, came one especially beautiful Lincoln.

The 1955 Indianapolis Exclusive Study showed what can happen when one of the better Italian design houses is set loose on one of the outlandishly huge chassis of the era. The result is a big car that combined American swagger with continental flair.

In this case, the body comes from Gian Carlo Boano, a promising young designer of the era, and the car itself is going on the block Thursday at the Art of the Automobile Event being held jointly by RM Auctions and Sotheby's in New York. The one-off Lincoln is valued at $2 million to $2.5 million.

The car made its big debut at the 37th Salone dell'Automobile in Turin in 1955. At the time, Lincoln, Ford's premium division, couldn't have been hotter, as the hit song Hot Rod Lincoln would later attest.

Like so many cars of the mid '50s, the Indianapolis, as it was simply known, was designed with a fighter jet in mind. It had the tail meant to evoke jet nozzles and sported both exhaust pipes and a mock air scoop on the sides. RM says that for as big as the car was, it was essentially designed for two people.

It had leather seats and a dashboard that covered up most the key instruments until it was tilted open. Inside and out, it was an example of how to let a designer's imagination run wild.

"Even today, it remains virtually impossible to focus on any singular detail of the Indianapolis's design; the critic's eye catches a line and is drawn to follow it across the car. It is an engrossing automobile," RM Auctions writes in its description.

After it was shown in Turin, the Indianapolis was purchased by Ford and brought to the U.S. It was later owned by a collector who had it for three decades and had it fully restored.

17 Oil and Gas Stocks to Sell Now

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The ratings of 17 Oil and Gas stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Phillips 66 (NYSE:) is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. Phillips 66 is an advantaged downstream energy company. It operates through the following businesses segments: Refining and Marketing, Midstream and Chemicals. The Refining and Marketing segment purchases, refines, markets and transports crude oil and petroleum products in the United States, Europe … In Portfolio Grader’s specific subcategories of Earnings Growth and Earnings Revisions, PSX also gets F’s. .

This week, PDC Energy’s (NASDAQ:) rating worsens to a D from the company’s C rating a week ago. PDC is an oil and gas company with drilling and production operations in the Rocky Mountains, the Appalachian Basin, and Michigan. The stock gets F’s in Earnings Revisions and Cash Flow. As of Nov. 15, 2013, 13.1% of outstanding PDC Energy shares were held short. .

This is a rough week for EOG Resources, Inc. (NYSE:). The company’s rating falls to D from the previous week’s C. EOG Resources is in the business of the exploration, development, production, and marketing of natural gas and crude oil. The stock gets F’s in Earnings Growth, Earnings Momentum, and Margin Growth. The stock price has dropped 7.8% over the past month, worse than the 1.7% decrease the S&P 500 has seen over the same period of time. The stock currently has a trailing PE Ratio of 41.90. .

Suncor Energy (NYSE:) ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). Suncor Energy is an integrated energy company in Canada. The stock gets F’s in Earnings Momentum and Earnings Surprise. .

Enbridge Energy Partners, L.P. Class A (NYSE:) experiences a ratings drop this week, going from last week’s D to an F. Enbridge Energy Partners transports crude oil and natural gas liquids to refineries in the midwestern United States and eastern Canada. The stock gets F’s in Earnings Growth, Earnings Revisions, and Earnings Surprise. Cash Flow and Sales Growth also get F’s. The trailing PE Ratio for the stock is 48.90. .

PVR Partners, L.P.’s (NYSE:) rating weakens this week, dropping to a D versus last week’s C. Penn Virginia Resource Partners owns and operates a network of natural gas pipelines and processing plants which provide gathering, transportation, compression, processing, dehydration and related services to natural gas producers. The stock price has fallen 6.7% over the past month. The stock’s trailing PE Ratio is 100.80. .

Slipping from a C to a D rating, Green Plains Renewable Energy, Inc. (NASDAQ:) takes a hit this week. Green Plains Renewable Energy constructs and operates dry mill, fuel-grade ethanol production facilities. The stock gets F’s in Earnings Growth, Earnings Revisions, and Margin Growth. As of Nov. 15, 2013, 17% of outstanding Green Plains Renewable Energy, Inc. shares were held short. .

This week, Chevron Corporation (NYSE:) drops from a C to a D rating. Chevron gives management and technological support to international subsidiaries that operate petroleum, chemicals, mining, power generation, and energy services. The stock also gets an F in Sales Growth. .

The rating of ONEOK Partners, L.P. (NYSE:) slips from a C to a D. ONEOK Partners is engaged in the gathering, processing, storage, and transportation of natural gas in the United States. The stock also gets an F in Sales Growth. .

Continental Resources, Inc. (NYSE:) earns an F this week, moving down from last week’s grade of D. Continental Resources explores for, develops, and produces oil and natural gas properties in the United States. The stock receives F’s in Earnings Growth, Earnings Momentum, Cash Flow, and Sales Growth. Investors seem to agree with the downgrade and have pushed down the share price 5.2% over the past month. .

Teekay Corporation (NYSE:) experiences a ratings drop this week, going from last week’s C to a D. Teekay is a provider of international crude oil and petroleum product transportation services. The stock receives F’s in Earnings Momentum, Earnings Revisions, and Earnings Surprise. Equity and Cash Flow also get F’s. .

Slipping from a D to an F rating, Frontline (NYSE:) takes a hit this week. Frontline owns a fleet of very large crude carriers and Suezmax tankers that transport crude oil and oil products between ports. The stock gets F’s in Earnings Revisions, Equity, Cash Flow, and Sales Growth. As of Nov. 15, 2013, 12.7% of outstanding Frontline shares were held short. .

This week, Endeavour International Corporation (NYSE:) drops from a D to an F rating. Endeavour International is an international oil and gas exploration and production company that acquires, explores, and develops energy reserves. The stock gets F’s in Equity and Cash Flow. Share prices fell 37.2% over the past month. As of Nov. 15, 2013, 20.7% of outstanding Endeavour International Corporation shares were held short. .

This is a rough week for North European Oil Royalty Trust (NYSE:). The company’s rating falls to F from the previous week’s D. North European Oil Royalty Trust is involved in gas and oil production. It holds overriding royalty rights in certain concessions or leases in the Federal Republic of Germany. The stock also gets an F in Sales Growth. .

This week, SandRidge Energy, Inc.’s (NYSE:) rating worsens to an F from the company’s D rating a week ago. SandRidge Energy explores and produces natural gas and crude oil. The stock gets F’s in Earnings Growth, Earnings Momentum, and Equity. Cash Flow and Margin Growth also get F’s. Investors seem to agree with the downgrade and have pushed down the share price 13.5% over the past month. As of Nov. 15, 2013, 10.5% of outstanding SandRidge Energy, Inc. shares were held short. .

The rating of Gevo (NASDAQ:) slips from a D to an F. Gevo operates as a technology development company for biobutanol. The stock gets F’s in Equity, Cash Flow, and Sales Growth. As of Nov. 15, 2013, 16.4% of outstanding Gevo shares were held short. .

Teekay Offshore Partners L.P. (NYSE:) earns a D this week, falling from last week’s grade of C. Teekay Offshore Partners LP provides marine transportation and storage services to the offshore oil industry. The stock also rates an F in Sales Growth. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

3 reasons Warren Buffett bought Exxon Mobil

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 hit another record high on Thursday, with the S&P 500 and the narrower, price-weighted Dow Jones Industrial Average gaining 0.48% and 0.35%, respectively. Both indexes are sitting at all-time highs.

Institutional money managers must report their stock positions to the SEC within 45 days of the end of each calendar quarter, and Warren Buffett's bricks-to-railroad conglomerate, Berkshire Hathaway (BRK-B), follows the same rule. The most noteworthy change Buffett made to Berkshire's portfolio is the addition of a sizable new position – 40.1 million shares valued at $3.4 billion -- in energy super-major Exxon Mobil (XOM) . In fact, Buffett constituted roughly three-quarters of the position in the second quarter and obtained confidential treatment from the SEC in his previous filing as he continued to build the position.

In many ways, Exxon Mobil is an obvious choice for Berkshire's portfolio; here are three reasons Buffett selected it:

It's just plain cheap

At 11.8 times estimated earnings per share for the next 12 months, Exxon Mobil shares trade at a 23% discount to the S&P 500's forward earnings multiple; meanwhile, it pays a 2.7% dividend yield against just 2% for the index. Furthermore, the valuation was lower when Buffett was building his position -- the stock's average forward earnings multiple was 11.3 in the second quarter and just 10.8 in the third quarter -- the sort of multiples that ought to generate some interest when they are associated with one of the best managed, most profitable companies in the world.

Exxon Mobil is the second-largest company in the world by market value

The reported value of Berkshire's stock holdings per today's filing is a staggering $92 billion. In addition, Berkshire generates a flood of cash on a permanent basis that Buffett mus! t attempt to allocate profitably. (Berkshire's operating cash flow for the first nine months of 2013 was $20.7 billion.)

As such, when it comes to publicly traded stocks, Buffett can't waste his time on minnows; he needs to focus exclusively on hooking the largest groupers in the corporate ocean. With a market value of $407 billion, Exxon Mobil -- the world's second most valuable company -- is just such a catch. Exxon Mobil's size and liquidity enabled Buffett to make it his largest new position since he put more than $10 billion to work in another mega-cap issue, IBM, in 2011.

Exxon Mobil has longevity

Warren Buffett will only invest in businesses that have genuine staying power; for a long-term investor with a multi-generational time horizon, permanence is a very attractive quality.

Buffett's confident that Exxon Mobil shares that characteristic. We know this because in his 2011 shareholder letter, he argued against buying gold by comparing the far-in-the-future value of all the world's existing gold stock in the world and a hypothetical portfolio of productive assets with the same current value made up of "all U.S. cropland..., plus 16 Exxon Mobils." In the conclusion of his argument, he writes:

A century from now... Exxon Mobil will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions...

A century is a long time, but there is every reason to believe Exxon Mobil will be churning out gobs of cash -- and returning it to shareholders -- for the next several decades. That's not a bad start for a buy-and-hold investor, particularly when it is bought at the right price.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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Panera CEO Will Spend This Week Living on a Food Stamp Budget

Best Safest Companies To Invest In Right Now

Michael L Abramson/Getty Images For the next week, Ron Shaich will live well below his means: The Panera Bread (PNRA) CEO embarked on a quest Saturday to spend a week living on food stamps. "As part of Hunger Action Month, I decided to take the SNAP Challenge," Shaich announced on LinkedIn last week. "For one week, beginning Saturday, September 14, 2013, I will live on just $4.50 a day, the average daily benefit per person provided by the Supplemental Nutrition Assistance Program (SNAP; formerly known as Food Stamps)." A number of liberal politicians, including Newark Mayor Cory Booker have taken the SNAP Challenge, publicly documenting their quest to eat on less than $5 a day (the weekly allowance is $31.50). The challenge has become a popular way to see how the other half lives, call attention to hunger issues and protest budget cuts.

The Best Foreign DRIPs

Best Stocks To Watch Right Now

The most important reason to consider foreign stocks is that by doing so, you broaden your opportunity set. The larger the fishing pond, so to speak, the more chances you have of catching big fish, suggests Chuck Carlson, editor of DRIP Investor.

Thus, for the same reason that investors should consider small, mid, and large US companies, so too, should they include foreign stocks when searching for attractive opportunities.

To be sure, investing overseas has some risks, such as political and economic risk, currency risk, and interest rate and inflation risk. There is also information risk; there have been instances of fraudulent accounts with some foreign companies.

Due to these risks, the investment vehicle of choice for investing overseas has been mutual funds and exchange-traded funds.

Despite these risks, owning quality foreign stocks makes good investment sense. Over the long-term, growth in certain foreign economies should outstrip that of the US, and owning that growth should help your portfolio.

Another reason to look abroad is that a number of quality foreign stocks currently offer very competitive dividends and yields.

For investors who prefer to own individual stocks—and I put myself in that category—it is as easy to buy certain foreign stocks as it is US stocks, via the hundreds of foreign companies offering American Depositary Receipt (ADR) direct-purchase plans.

Buying individual foreign stocks became easy for any US investor with the advent of American Depositary Receipts. ADRs are securities that trade on US exchanges and represent ownership in shares of foreign companies.

Investors buy and sell ADRs just as they buy and sell US stocks. ADRs are quoted in US dollars and pay dividends in US dollars. And those dividend payments, in many cases, receive the current preferential tax treatment afforded qualified dividends paid by US companies.

One of my favorites is Baidu (BIDU), the Chinese search-engine company. You may recall I selected Baidu as one of my favorite turnaround stocks at the beginning of 2013.

The stock was trading for around $100. After a weak first half of the year, the shares have caught fire in the last two months.

While competition seems to be growing in its primary market, I remain a fan of these shares and expect this volatile stock to trend higher over the next 12 months.

For investors looking for growth but also income, I especially like three health-care related stocks—Fresenius Medical (FMS), Novo Nordisk (NVO), and Smith & Nephew (SNN).

Fresenius, based in Germany, is a world leader in kidney dialysis services. Novo Nordisk, based in Denmark, is a huge player in diabetes treatment. United Kingdom-based Smith & Nephew is a leader in orthopedic implants.

All of these areas represent growing segments within the global health-care market. I would feel comfortable owning any or all of these stocks.

I've highlighted my favorite ADRs. These stocks typically score well in our Quadrix stock-rating system, and have decent track records, and strong market positions.

Subscribe to DRIP Investor here…

More from MoneyShow.com:

Following in the Steps of John Templeton

Emerging Markets ETFs: Turnaround Plays

Foreign ETFs: Four Perspectives

'Mighty' Dollar – Data Defends A December Taper

US dollar bulls had all the fun last week. The 17-member single currency came under a three-prong attack – two from the world's primary reserve currency and the other one was a calculated self-inflicted wound. Stateside, non-farm payrolls and GDP for Q3 both exceeded expectations. Furthermore, Draghi and company at the ECB decided to cut its cash rate -0.25% to new historical lows. So far, the verbatim list has contributed to the rally of the ‘mighty buck' against the hapless EUR and other G10 currencies.

However, today the silence is deafening in the currency market as we “remember” and this has allowed the EUR to creep higher. The price action is going against the majority expectations and positions. The partial US market holiday for Veterans Day seems to have temporarily sapped the market momentum, again putting pressure on investor's weak shorts positions.

There is exactly very little on offer to wholly convince consistent active trading. Historically, the first full trading day after a non-farm report tends to end up being the month's quietest trading session. Combined with the partial shutdown for US Memorial Day, today so far is shaping up to be no different. Investors should expect some of the currency moves to have both volume and volatility concerns. The latest EUR demise began on the final day of October when the flash CPI print came in well under the wire at +0.7% vs. +1.1%. The EUR bulls should not be holding out for any upward revisions. History indicates that the flash print is very much “bang-on.”

China's inflation, IP growth both accelerated over the weekend. Inflation is now registered at an eight-month high (+3.2%, y/y) last month, and just below market consensus for +3.3%. One of the bigger contributions to headline numbers continues to be food inflation (+6.5%, y/y), which added +2.1% directly to the headline, while non-food inflation remained at +1.6% and service inflation increased to +3.1%. The PBoC has a tough job maintaining perception.

Will Chinese policy leaders avoid symbolically significant measures, such as interest rate or the reserve requirement ratio to curb their problems or will they continue to drain liquidity through open market operations? Tighter monetary policy has been highlighted by new loan data at CNY506.1b compared with a forecast of CNY600b. The PBoC is obviously worried about inflation in Q4. According to analysts “the slow growth of new loans has been matched by slower growth in the total social-financing aggregate.” This is a broad measure of liquidity throughout the Chinese economy. Obviously the APAC members feel anything that China may implement that impedes growth first.

Meanwhile, Chinese industrial production (IP) growth accelerated to +10.3%, y/y in October, beating the consensus of +10.0%. On seasonally adjusted basis, IP grew by +0.9% mom, higher than its prior of 0.7%. The Yuan was largely steady earlier this morning, as the PBoC guided the currency slightly stronger (6.1390). State banks continue to buy the USD, curbing a rapid Yuan rise. Investors will be expecting headlines from the Third Plenum over the coming weeks – possible financial and economic reform. The four-day meeting officially ends tomorrow. But. Will wide range reform follow that will suit foreign investors? Major reforms are difficult to implement even in an authoritarian system.

The highlight of the week will be Janet Yellen's Senate hearing on Thursday. It should again be the “war of the word” where a percentage of the market expects her to restate her most recent message that “tapering does not mean tightening,” with potential references to forward guidance as a policy tool – by day's end the market continues to search for clarity. The dollar continues to be in safe hands and especially after last weeks US data a December taper remains on the cards, further supporting the “mighty buck” against both the EM and G10 currencies.

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The post ‘Mighty' Dollar – Data Defends A December Taper appeared first on MarketPulse.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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Originally posted here...

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Nouriel Roubini Warns of Bubbles in the Economic Broth

Noted bubble expert Nouriel Roubini, professor at NYU’s Stern School of Business and chairman of Roubini Global Economics, channeled PIMCO’s Bill Gross late last month by employing a soup metaphor to warn of economic woes to come.

The problem, Roubini noted, is the tradeoff between restoring robust growth and maintaining financial stability. The former requires policies that would potentially lead to economic bubbles while the latter does little to stimulate employment.

He begins by noting the alphabet soup of measures central banks been “served up” in recent years: ZIRP (zero-interest-rate policy); QE (quantitative easing, or purchases of government bonds to reduce long-term rates when short-term policy rates are zero); CE (credit easing, or purchases of private assets aimed at lowering the private sector’s cost of capital); and FG (forward guidance, or the commitment to maintain QE or ZIRP until, say, the unemployment rate reaches a certain target).

“And yet, through it all, growth rates have remained stubbornly low and unemployment rates unacceptably high, partly because the increase in money supply following QE has not led to credit creation to finance private consumption or investment,” Roubini wrote on the Project Syndicate website.

Instead, he added, banks have hoarded the increase in the monetary base in the form of idle excess reserves.

“There is a credit crunch, as banks with insufficient capital do not want to lend to risky borrowers, while slow growth and high levels of household debt have also depressed credit demand," he writes. "As a result, all of this excess liquidity is flowing to the financial sector rather than the real economy.”

Indeed, Roubini argued, the U.S. stock market and many others have rebounded more than 100% since the lows of 2009; issuance of high-yield junk bonds is back to its 2007 level; and interest rates on such bonds are falling.

“The collapse from 2007 to 2009 of equity, credit and housing bubbles in the United States, the United Kingdom, Spain, Ireland, Iceland and Dubai led to severe financial crises and economic damage.”

So, are we at risk of another cycle of financial boom and bust?

The trouble is that if macroeconomic policies advocated by central banks don’t work, the interest rate “would have to serve two opposing goals: economic recovery and financial stability. If policymakers go [slowly] on raising rates to encourage faster economic recovery, they risk causing the mother of all asset bubbles, eventually leading to a bust, another massive financial crisis, and a rapid slide into recession.”

If they try to prick bubbles early on with higher interest rates, he countered, they will crash bond markets and kill the recovery, causing much economic and financial damage. It’s a case of “damned if they do and damned if they don’t.”

“For now, policymakers in countries with frothy credit, equity, and housing markets have avoided raising policy rates, given slow economic growth,” he concluded. "With asset prices continuing to rise, many economies may have had as much soup as they can stand."

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Check out these related stories on ThinkAdvisor:

Fire victim backs Tesla as Feds deepen probe

A Tennessee physician whose Tesla became the third to catch on fire after an accident says he stands by the car even as federal investigators say they are working with the electric car maker over the incidents.

Tesla posted an account of the accident on its website from the driver, which the automaker identifies as Juris Shibayama, whose car caught on fire near Smyrna, Tenn.

He writes out how was unable to swerve to avoid a trailer hitch in the highway, how it went underneath his Model S sedan and a fire resulted. And how he stands behind the Tesla.

"This experience does not in any way make me think that the Tesla Model S is an unsafe car. I would buy another one in a heartbeat," he writes in the post on Tesla's website.

But it's yet to be seen what federal investigators think. They are now taking a look at Tesla after this third incident. In the first, another driver struck an object that pieced the car's armored battery pack and started a fire. In the second case, a driver crashed his car and fled the scene. And now the Tennessee case.

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NHTSA has issued its usual statement of a preliminary investigation. But it did issue a tougher statement Friday indicating that's its not just gathering details of the accident from authorities, but is in touch with the automaker directly.

"NHTSA is in close communication with Tesla and local authorities gathering information about the incident to determine if additional action is necessary," the statement said.

In the incident, Shibayama says he was driving home from work when he struck the hitch at about 70 miles per hour. He felt the thud, which was followed less than a minute later by a warning message: "Car needs service. Car may not restart."

Just hoping to reach home, he says he continued to drive but didn't get a lot farther. In another minute, up popped a message saying "Pl! ease pull over safely. Car is shutting down." He got over and soon smoke was pouring out from underneath, followed by the fire that destroyed the front half of the car.

Still, Shibayama says he is grateful he was driving a Tesla. "Had I not been in a Tesla, that object could have punched through the floor and caused me serious harm," he writes.

Tesla's stock took a drubbing last week following the report of the third fire and an earnings report that left some, but not all, disappointed. It lost nearly 22% over its value over three days, closing at $137.95 on Friday.

Salix Pharma to Acquire Santarus

NEW YORK (TheStreet) -- Gastrointestinal drugmaker Salix Pharmaceuticals (SLXP) announced it will acquire smaller biopharmaceutical company Santarus (SNTS) in a deal worth $2.6 billion. The purchase agreement of $32 a share provides a 39% premium to Santarus' average 30-day closing price. The transaction is expected to be finalized by the first quarter 2014.

In response, Salix shares gained 9.4% to $77.99 and Santarus soared 37.2% to $31.86 in after-hours trading.

Salix said the acquisition will help position the combined entity as the largest U.S. gastroenterology-focused drug company with annual product revenue of $1.3 billion.

"We are extremely pleased with the Santarus acquisition, which is transformative for Salix both commercially and financially, fulfilling many of our strategic needs, while providing immediate and significant accretion in 2014 and beyond," said Salix CEO Carolyn Logan in a statement. As part of the deal, the companies will merge salesforces, combine product portfolios and expand the number of health care prescribers in their database. The deal's revenue diversification will benefit its bottom line as no one product is expected to bring in more than 50% of total revenue (this, as Ariad Pharmaceuticals learnt late October, is an important consideration).  After the bell, San Diego-based Salix reported third-quarter earnings of 89 cents a share on $238.2 million in revenue. Earnings came in 3 cents higher than analysts surveyed by Yahoo! Finance had expected though revenue, a 29% increase on a year earlier, missed estimates by $1.5 million.

5 things to know about Twitter’s IPO

When the markets open Thursday morning, Twitter will officially become a public company.

The microblogging service begins trading on the New York Stock Exchange starting at 9:30 a.m. ET under the ticker symbol TWTR. Here are five things you need to know about Twitter's IPO.

1. The magic number is $26. Twitter priced shares at $26 a pop, above the $23-$25 that had been predicted. The $26 price values the company at $18.34 billion. That's more than Macy's, which has a market capitalization of $17 billion, and Bed Bath & Beyond, which is around $16 billion. According to markets service Dealogic, Twitter becomes the second largest Internet IPO by an American company, trailing only Facebook. It's also the third-largest U.S. IPO this year.

2. A busy debut. As with many high-profile IPOs, Twitter will see plenty of activity on day one at the stock exchange. "We're going to see enormous trading volume," says Global X Funds CEO Bruno del Ama, who expects a bump in Twitter's share price by the close of the markets. Once the initial Twitter buzz hits, the company's share price will eventually fall back down. "In a few days after the IPO, you're going to start seeing the stock price settling down a little bit," says del Ama.

3. The world's newest billionaires. Twitter co-founder Evan Williams, owner of the largest stake in the company, will reap the most rewards from the IPO launch. He's expected to rake about $1 billion. If the stock price doubles, fellow co-founder and Square CEO Jack Dorsey would join Williams in the billionaires club. On March 21, 2006, Dorsey posted the world's first tweet: "Just setting up my twttr."

4. How prepared is the NYSE? There is some concern Twitter's arrival could feature the same scattered technical glitches that plagued Facebook when it joined the Nasdaq last spring. However, following a successful test run, the NYSE appears confident it can handle the extra volume. "We are being very methodical in our planning for Twitter's IPO, and are working to! gether with the industry to ensure a world-class experience for Twitter, retail investors and all market participants," said NYSE spokeswoman Marissa Arnold in a statement.

5. Should you get shares of Twitter? There are several ways for regular investors to snag Twitter shares, from working with a brokerage firm to buying through a mutual fund. But should you? As USA TODAY"s Matt Krantz explains, if you don't know how to buy shares of IPOs, then don't try. But even if you do invest regularly, you might want to hold off. As Krantz notes: "If the large, wealthy investors aren't snapping up the shares, you should ask why not."

Follow Brett Molina on Twitter @bam923

Check out: Top seven investment mistakes

Last week, on a road trip from Bangalore to Pondicherry, I wondered why investors do not plan the same way as holiday-makers. After all, they are the same individual. We normally think about where we wish to reach, and at what time. Which is the mode of transport to use, and where will we stay? Of course, what�s the total budget planned for the holiday? This gave rise to the first list of common mistakes that investors make. 

Not having a planned financial goal: If we do not know where we wish to reach, we�ll never know when we have. There are speed breakers on our journey, traffic lights and �dashing� pedestrians. We may be a bit delayed in reaching, with a higher fuel consumption (investments may not deliver the desired returns); but we should never lose sight of the final destination.

Taking more risks than that are necessary: It is imprudent to budget three hours to complete a 300 km road journey on Indian roads, where the maximum speed limit is 80 km/ hour. There is a possibility that you may reach faster: conversely, you may not reach at all. Keep a close watch on your asset allocation.

Targeting maximum returns on all investments at all times: How often have changed lanes to the �faster-moving� one in city driving only to realize that our original �investment� was better!  It will be unwise to bet the savings that we need for a committed payment in the next three months in the equity market, irrespective of the euphoria prevailing. Equities are only meant for the long-term.

Aiming for maximum safety: October 2008 was as close to doomsday as we may possibly imagine. We proceed albeit at a slower pace when the road is dotted with potholes; but we do not abandon driving altogether. For financial goals that are some distance away (three years or plus), we need to benchmark investments suitably, rather than comparing them on a weekly basis. Keep in mind your returns post-tax and net of inflation.

Relying on tips -- and neighbours: When one of my colleagues boasted of his conquests in trading, I was at first envious of him. Then I wanted to emulate him. As I grew wiser, I realized that he would only publicize his successes, and never his failures. Don�t we get tips of what to buy and when, but never when to sell? And that�s how dud stocks adorn our demat statements.

Do- it- Yourself Mania: Ever wondered where India would have been if the world did not seek outsourcing? Handing over what you can�t do best to an expert is an accepted norm. But with the recent media explosion, we do feel that we have the ammunition to manage finances on our own. My mantra is that three conditions need to co-exist: detailed understanding of finance; (full) time at our disposal; and ability to remove our emotions from our investment decisions (can sell poor selections at a loss) --- only then can we do without a qualified financial advisor.

Each one of us believes he is unique. Yet, we are checking if our list of investment mistakes matched that of others. And therein is the seventh mistake. With the New Year around the corner, it seems a good time to discard this baggage and start afresh.

(The author is the Managing Director and Chief Financial Planner of International Money Matters Pvt Ltd)

Get An Academic Finance Career

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If you've ever sat through a college class thinking that you could do as well as your professor, you're not alone. While teaching is a lot harder than it looks, there aren't many jobs where you can work nine months a year, do something you enjoy, get holidays, Christmas and spring break off, and earn a six-figure salary at the same time. To many it sounds like paradise, but like our friends the economists say, there is no free lunch. You may enjoy finance and investing as a student, but it is a long way from the student's desk to the professor's.

Teaching classes is only one part of a college professor's ongoing responsibilities. Depending on the school where they work, professors will also have committee meetings and research requirements. The old adage applies to business school professors as much as it does for anyone else in academics: it's publish or perish. Depending on the type of school where they work, professors could be asked to publish as many as two to three academic articles per year.

Why Do Business School Professors Have Such High Salaries?
Not to slight English or history professors, but there aren't many private sector jobs available for them, and there certainly aren't as many students lining up at every major college across the United States to get a master's degree in history as there are for the Master of Business Administration (MBA) degree. These two types of demand apply to finance professors and other disciplines like accounting.

What About the Supply of Professors?
While business school professors are in high demand, there is not a lot of supply. By some estimates, there are only 350 new grads each year and almost 500 new job openings (remember, Wall Street wants some of these people as well). Many Ph.D. programs in finance aren't very big and are also not found at many schools. There are very few smaller public universities, nearly no liberal arts schools and only a select number of the larger schools that even have finance Ph.D. programs. Many states have only one or two programs. In the existing programs, only a handful of students - often only five to 10 - are admitted every year. Another issue regarding the supply of business professors is that many college professors in the U.S. are baby boomers who earned their Ph.D.s in the 1960s and 1970s and will be retiring within the next 10 years. For those entering the field, this may mean big opportunities down the line.

What Does This Career Actually Entail?
Depending on the school where they teach, professors usually have a fairly flexible weekly schedule. The type of workload and research expectations should be an important factor when considering where to work. Here are a few points to consider: A typical teaching load is two to four classes per semester; these classes could involve instructing both undergrad and master level students. If the school has a Ph.D. program, the professor will likely be teaching these classes and/or advising these students.
Professors conduct their own research (often with graduate students assisting) for submission to academic publications and possibly to industry sources. The more prestigious the university, the more research tends to be emphasized over teaching.
Even though most students never see this side of their professor's work, professors also serve on faculty committees and advise students. For Ph.D. students, the professor might serve on dissertation committees, working on research with the students and helping to provide guidance in other ways. Many smaller state and local schools are teaching oriented, while more prestigious schools will expect a lot more in the way of research output. At top-rated schools, "teacher of the year" awards don't carry nearly as much weight as publications in the top journals. Parents of college-bound students should note this as well when considering where to send junior next fall.

Sounds Good, so Where Do I Sign Up?
Well, now that you know all about how to become a finance professor, there's just one small problem; in order to teach, you need a Ph.D. Sure, you can teach as an adjunct instructor for the thrill of teaching and a little extra money, but without a Ph.D. you can't get tenure or a good salary ($80,000 $120,000 per year for a nine-month contract). The traditional strategy is to go to the best school you can get into, and go out of state from where you want to end up. The out-of-state strategy is helpful due to factors of supply and demand. If one is in Iowa for example, then there are many more University of Iowa Ph.Ds looking for jobs than University of Michigan grads. In academics, intellectual diversity is big, but so is prestige.

If you want to work at an Ivy League school and get paid more than $200,000 per year, you'll a Ph.D. from an equivalent school. The general rule in academics is that you can always go down a notch for work, and usually sideways, but almost never upwards – unless you win the Nobel Prize or another prestigious award. The problem is that everyone in the field knows this and the spots for these usually small programs are extremely tough to get – often much more selective than for top MBA or undergrad spots.

What's Involved in Getting a Ph.D. in Business?
Depending on one's other graduate education, expect to complete four to five years of school before getting the opportunity to teach those eager young minds. During this schooling, you'll take advanced math courses, such as linear/matrix algebra and finite math, as well as a number of statistics-type courses such as econometrics, regression, multivariate and time-series analysis. This is required in order to do the statistical research for your dissertation and other independent research after graduation. This emphasis on math and statistics may be the single biggest hindrance for most considering this field.

The Bottom Line
If you want to go to a school that is in the mid to upper tier, then your Ph.D. work will have more in common with a math major than a money manager (unless you work at a quantitative hedge fund). If teaching is your passion and perhaps you don't really want to do research with your time, then plan on a teaching-oriented school. One handy rule is that if a university has a Ph.D. program in one or more business fields (not just finance), then research is usually emphasized. If not, then it's likely more of a teaching university. Even if you don't like research, plan on publishing some articles in academic journals if you want to get tenure.

Probe expands into JPMorgan hiring practices in China

JPMorgan has disclosed a wider probe into its Hong Kong hiring practices.

NEW YORK (CNNMoney) JPMorgan has disclosed a widening probe into its hiring practices in China.

Three months ago, it said in a quarterly filing that the Securities and Exchange Commission's division of enforcement was seeking information and documents relating to its hiring practices in Hong Kong.

On Friday it disclosed in a filing that the Justice Department and other authorities are also looking into the matter. The bank also provided more details about the hiring practices being examined.

The filing said the probe is looking into "hiring practices relating to candidates referred by clients, potential clients and government officials." It's also investigating consultants hired by the bank.

A bank spokesman was not immediately available for comment.

In August, the New York Times reported that a confidential U.S. government document detailed that the matter involved the son of a former top Chinese banking regulator and the daughter of a Chinese railway official. But the Times reported that the document doesn't accuse the bank of any wrongdoing and does not suggest that the employees weren't qualified to hold the positions.

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JPMorgan has been the subject of numerous investigations by U.S. and overseas regulators so far this year, and has paid out billions of dollars in fines.

Most recently it agreed to pay $5.1 billion to Fannie Mae and Freddie Mac to resolve claims stemming from the housing bubble. It also agreed to about $1 billion in fines to settle charges related to the "London whale" trading debacle. It has agreed to pay $410 million for manipulating electricit! y markets, nearly $400 million in fines and restitution for credit card practices, and has agreed to billions more in payments to homeowners to settle complaints about improper foreclosure practices.