3 Tech Stocks Rising on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Read More: Warren Buffett's Top 10 Dividend Stocks

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Read More: 5 Stocks Insiders Love Right Now

Voxeljet AG

Voxeljet AG (VJET) provides three-dimensional printers and on-demand parts services to industrial and commercial customers. This stock closed up 8.5% at $19.90 in Wednesday's trading session.

Wednesday's Volume: 764,000

Three-Month Average Volume: 649,529

Volume % Change: 50%

From a technical perspective, VJET ripped substantially higher here right above some near-term support at $17.56 with above-average volume. This stock recently formed a double bottom chart pattern at $17.88 to $17.56. Following that bottom, shares of VJET have started to spike sharply higher and it's breaking out above some near-term overhead resistance at $19.48. Market players should now look for a continuation move to the upside in the near-term if VJET manages to take out Wednesday's intraday high of $19.95 with strong volume.

Traders should now look for long-biased trades in VJET as long as it's trending above Wednesday's intraday low of $18.30 or above some more near-term support at $17.56 and then once it sustains a move or close above $19.95 with volume that's near or above 649,529 shares. If that move kicks off soon, then VJET will set up to re-test or possibly take out its next major overhead resistance levels at $21.64 to $22. Any high-volume move above those levels will then give VJET a chance to tag $24.

Read More: Warren Buffett's Top 25 Stocks for 2014

VMware

VMware (VMW) provides virtualization infrastructure solutions in the U.S. and internationally. This stock closed up 3.2% to $101.83 in Wednesday's trading session.

Wednesday's Volume: 3.18 million

Three-Month Average Volume: 1.34 million

Volume % Change: 115%

From a technical perspective, VMW jumped notably higher here and broke out above some near-term overhead resistance at $99.36 with above-average volume. This uptick higher on Wednesday pushed shares of VMW inside of its previous gap-down-day zone from April that started at $107.32. Market players should now look for a continuation move to the upside in the short-term if VMW manages to take out Wednesday's intraday high of $102.31 with high volume.

Traders should now look for long-biased trades in VMW as long as it's trending above $99.36 or above Wednesday's intraday low of $98.99 and then once it sustains a move or close above $102.31 with volume that hits near or above 1.34 million shares. If that move gets underway soon, then VMW will set up to re-fill the rest of that gap from April that started at $107.32. Any high-volume move above $107.32 will then give VMW a chance to tag $110 to its 52-week high at $112.89.

Read More: 8 Stocks George Soros Is Buying

Synchronoss Technologies

Synchronoss Technologies (SNCR) provides cloud solutions and software-based activation for connected devices worldwide. This stock closed up 2.4% at $40.68 in Wednesday's trading session.

Wednesday's Volume: 747,000

Three-Month Average Volume: 361,990

Volume % Change: 134%

From a technical perspective, SNCR jumped notably higher here with strong upside volume flows. This stock gapped up sharply higher on Tuesday from around $34 to $41.40 with monster upside volume. Shares of SNCR had a continuation move higher on Wednesday with another day of strong volume. This move is quickly pushing shares of SNCR within range of triggering a near-term breakout trade. That trade will hit if SNCR manages to take out Wednesday's intraday high of $41 to its 52-week high at $41.40 with high volume.

Traders should now look for long-biased trades in SNCR as long as it's trending above Wednesday's intraday low of $39.67 or above $38 and then once it sustains a move or close above those breakout levels with volume that this near or above 361,990 shares. If that breakout triggers soon, then SNCR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Dividend Stocks Ready to Pay You More

>>3 Stocks Under $10 to Trade for Breakouts

>>3 Big M&A Stocks on Traders' Radars

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. 


22 Tips to Transform Your Financial Life After a Divorce

As a divorce financial adviser, I'm often brought in to work with clients who are still going through a split, but I'm just as often brought in afterward. Newly single clients are typically concerned about their finances and want to make sure they have enough for their immediate needs, and that they'll have enough when they retire. Even my very wealthy clients -– those with millions of dollars after a divorce –- have the same nagging questions and fears keeping them up at night. To help them, I've developed this divorce financial checklist. Considering that many divorce proceedings last a year or longer, once the marital settlement agreement is reached, you may want to take a long break from paperwork, lawyers or even thinking about your finances. That's a normal reaction. But resist it: There are some things you need to examine soon to make sure you're protected and on the right track financially. So go through this checklist to be sure nothing has slipped through the cracks. Once you're done, you'll have financial peace of mind -- and you'll be able to sleep like a baby.

Weird Al's new album has been pirated 40,000 times

'Mandatory Fun,' the latest album by Weird Al, is topping the charts -- and getting pirated like mad too. NEW YORK (CNNMoney) Weird Al Yankovic's latest album, "Mandatory Fun," is topping charts -- but not just the charts the parody musician is happy about.

Sure, "Mandatory Fun" is the top-selling album on Amazon, No. 3 on iTunes and the first comedy album to top the Billboard 200 in more than half a century. But Weird Al's new album has also been downloaded illegally more than 40,000 times on BitTorrent, according to tracking firm Musicmetric.

That means "Mandatory Fun" is on its way to piracy platinum, if there were such a thing.

Illegal copies of "Mandatory Fun" make up more than a quarter of the album's total downloads. Weird Al has sold 104,000 legal copies in its first six days, said Billboard, citing figures from Nielsen SoundScan.

Last year, Beyoncé Knowles' self-titled album was illegally downloaded 240,000 times in the first two weeks.

Like many artists, Weird Al has long accepted piracy as a reality that he has little control over. In 2006, Yankovic wrote the parody ballad called "Don't Download This Song," with lines like, "Don't take away money from artists just like me -- how else can I afford another solid gold Humvee?"

In 2000, he wrote on his website that he has "very mixed feelings" about piracy.

"On one hand, I'm concerned that the rampant downloading of my copyright-protected material over the Internet is severely eating into my album sales and having a decidedly adverse effect on my career," Yankovic wrote. "On the other hand, I can get all the Metallica songs I want for FREE! WOW!!!!!"

  T-Mobile CEO on music, Amazon and Sprint

The secret behind Weird Al's success this time around: An "#8videos8days" stunt, in which he made one music video every day for eight days, publishing them on YouTube, College Humor and others.

Among them were parodies of Pharrell's "Happy" and Lorde's "Royals."

"If you'd told me 30 years ago this would happen, I never would've believed it," Weird Al said on Twitter. "If you'd told me 2 WEEKS ago, I never would've believed it."

The last time a comedy album secured a No. 1 spot on the chart was Allan Sherman's "My Son, the Nut," which spent eight weeks there in 1963. Anyo! ne remember "Hello Muddah, Hello Faddah?"

Why Basic Energy Services, Inc Dropped Today

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

What: Shares of oil and gas industry service company Basic Energy Services, Inc (NYSE: BAS  ) fell as much as 12% after reporting earnings.

So what: Revenue was up 9%, to $359.7, and swung from a $4.2 million loss a year ago to a $2.4 million, or $0.06 per share, profit. Revenue topped the $357.4 million estimate from Wall Street, and adjusted earnings of $0.13, which exclude one-time items, were $0.04 better than estimates. The drop was strange given the solid results, but investors had clearly set their expectations even higher.

Now what: Demand for Basic Energy Services was up across the board, as oil and gas prices remained relatively high. The Permian Basin continues to be a strong point and, with drilling expanding there, it should be for the foreseeable future. Right now, the value is what's concerning because the company is barely back to profitability; but if momentum picks up, this could be a good value for investors.

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5 Stocks Under $10 Set to Soar

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

Read More: 5 Large-Cap Stocks to Trade for Earnings Season Gains

Just take a look at some of the big movers in the under-$10 complex from Thursday, including Point.360 (PTSX), which is soaring higher by 18%; 8x8 (EGHT), which is ripping to the upside by 12.6%; Amicus Therapeutics (FOLD), which is trending up by 9%; and India Globalization Capital (IGC), which is jumping higher by 8%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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

Read More: 5 Stocks Insiders Love Right Now

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

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

China Finance Online

One under-$10 technology player that's starting to trend within range of triggering a big breakout trade is China Finance Online (JRJC), which provides integrated financial information and services in the People's Republic of China and Hong Kong. This stock has been hit hard by the bears so far in 2014, with shares off sharply by 32%.

If you take a glance at the chart for China Finance Online, you'll see that this stock has started to flirt with a big breakout trade today, since shares have challenged some near-term overhead resistance at $4.28 a share. That action is starting to push shares of JRJC within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in JRJC if it manages to break out above some near-term overhead resistance levels at $4.45 to its 200-day moving average at $4.55 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 476,848 shares. If that breakout triggers soon, then JRJC will set up to re-test or possibly take out its next major overhead resistance level at $5.10 a share. Any high-volume move above that level will then give JRJC a chance to make a run at $6.40 a share.

Read More: 3 Huge Tech Stocks on Traders' Radars

Traders can look to buy JRJC off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $3.82 a share. One can also buy JRJC off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Quantum Fuel Systems Technologies Worldwide

An under-$10 alternative energy player that's starting to move within range of triggering a near-term breakout trade is Quantum Fuel Systems Technologies (QTWW), develops, produces and sells natural gas fuel storage systems and integrates vehicle system technologies in the U.S., Germany, Canada, India, Spain and Taiwan. This stock has been destroyed by the bears so far in 2014, with shares off sharply by 30%.

If you take a look at the chart for Quantum Fuel Systems Technologies Worldwide, you'll notice that this stock has been basing and consolidating right above its 50-day moving average of $4.82 a share. Shares of QTWW are now starting to bounce a bit higher right above some near-term support levels at $5 to its 50-day at $4.82 a share. That bounce is beginning to push shares of QTWW within range of triggering a near-term breakout trade a key downtrend line.

Market players should now look for long-biased trades is QTWW if it manages to break out above some near-term overhead resistance levels at $5.50 to $5.73 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 1.27 million shares. If that breakout gets underway soon, then QTWW will set up to re-test or possibly take out its next major overhead resistance levels at $6.13 to its 200-day moving average of $6.69 a share. Any high-volume move above those levels will then give QTWW a chance to tag $7 to $7.50 a share.

Read More: 5 Stocks Set to Soar on Bullish Earnings

Traders can look to buy QTWW off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.82 a share. One can also buy QTWW off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

J.C. Penney

Another under-$10 stock that's starting to move within range of triggering a major breakout trade is J.C. Penney (JCP), which sells merchandise through department stores in the U.S. This stock has been red hot over the last six months, with shares soaring higher by 33%.

If you take a glance at the chart for J.C. Penney, you'll notice that this stock has formed a major bottoming chart pattern over the last three months, with shares finding buying interest each time it has dipped below $8 a share. Shares of JCP are now starting to spike higher here right off its 50-day moving average of $8.81 a share. That spike is starting to push shares of JCP within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in JCP if it manages to break out above some key near-term overhead resistance levels at $9.52 to $9.93 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 16.89 million shares. If that breakout hits soon, then JCP will set up to re-test or possibly take out its next major overhead resistance levels at $10.30 to $12 a share.

Read More: 3 Stocks Spiking on Big Volume

Traders can look to buy JCP off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8.50 to its 200-day moving average at $8.13 a share. One can also buy JCP off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Biodel

An under-$10 specialty biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Biodel (BIOD), which is focused on the development and commercialization of treatments for diabetes in the U.S. This stock has been hit hard by the sellers so far in 2014, with shares off by 30%.

If you look at the chart for Biodel, you'll see that this stock has been downtrending over the last two months, with shares moving lower from its high of $2.51 to its recent low of $1.85 a share. During that downtrend, shares of BIOD have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BIOD have recently formed a double bottom chart pattern at $1.87 to $1.85 a share. This stock is now starting to bounce higher off those support levels and it's quickly moving within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in BIOD if it manages to break out above some key near-term overhead resistance at $2 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 150,944 shares. If that breakout kicks off soon, then BIOD will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.13 to around $2.20 a share. Any high-volume move above those levels will then give BIOD a chance to tag its 200-day moving average at $2.53 a share to even $3 a share.

Read More: 4 Biotech Stocks Breaking Out on Big Volume

Traders can look to buy BIOD off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.85 a share. One can also buy BIOD off strength once it starts to take out $2 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

National Bank of Greece SA

One final under-$10 banking player that looks ready to trigger a big breakout trade is National Bank of Greece (NBG), which offers diversified financial services primarily in Greece. This stock has been rocked hard by the sellers so far in 2014, with shares down sharply by 38%.

If you take a glance at the chart for National Bank of Greece SA, you'll notice that this stock has been downtrending badly for the last two months, with shares moving lower from its high of $4.16 to its recent low of $3.25 a share. During that downtrend, shares of NBG have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NBG have now formed a possible double bottom chart pattern at $3.29 to $3.25 a share. This stock is starting to rebound higher off those support levels and it's quickly moving within range of triggering a big breakout trade.

Read More: 3 Stocks Under $10 to Trade for Breakouts

Traders should now look for long-biased trades in NBG if it manages to break out above its 50-day moving average of $3.56 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action 5.86 million shares. If that breakout materializes soon, then NBG will set up re-test or possibly take out its next major overhead resistance levels at $3.90 to $3.97 a share, or even $4.16 to $4.50 a share.

Traders can look to buy NBG off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $3.25 a share. One can also buy NBG off strength once it starts to take out $3.56 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Hedge Funds Hate These 5 Stocks -- Should You?

>>5 Rocket Stocks Ready for Blastoff

>>5 Defense Stocks to Trade for Gains

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.

Foot Locker Continues to Be Bullish

Comfort comes first in an athlete's mind, especially while choosing any apparel. So the apparel giants are on a constant innovating spree to create a significant market niche for them. Due to falling raw material prices and upcoming sports events, the athlete footwear industry is gaining momentum. The total size of the U.S. footwear industry approximately stands at $53.7 billion.

Founded in 1879, Foot Locker (FL) is a global retailer of shoes and apparel, operating 3,473 primarily mall-based stores (including 193 Runners Point Group stores) in the United States, Canada, Europe, Australia and New Zealand.

Headquartered in New York City, Foot Locker is an athletic footwear and apparel retailer. To improve overall performance in the long-run, the company has undertaken several initiatives.

Results Recently

Quarterly earnings have notched up for the last 15 years. Per-share earnings in the first quarter ending May 3 jumped 22% to $1.11 a share. Total revenue was up 14% to nearly $1.9 billion and same-store sales in the quarter advanced 7.6%.

Sneakers have also been fueling sales at Kids Foot Locker, which has shown mid-teen to 20% growth the past few quarters. Globally, sales have been strong in European markets. Foot Locker acquired Runners Point to gain exposure to the German market. The acquisition is already proving to be a worthwhile one as the division saw a 14% gain in sales.

Over the past four years, Foot Locker has seen its net income grow by 727.1% from $48 million to $397 million. This made Foot Locker gain a better position. FL's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been successful management of debt levels.

The company has demonstrated a pattern of positive earnings per share growth over the past two years. Apart from delivering strong top-line and bottom-line growth, the company is also known for its shareholder-friendly moves. In fiscal year 2013, the company bought back 6.4 million shares worth $229 million, which includes 1.6 million shares repurchased in the fourth quarter.

Management hiked the quarterly dividend by 10% and approved capex of $220 million for the year 2014.

Over the past 5 years Foot Locker has been an incredible comeback story. Shares have now climbed nearly 14x in value since the bottom in 2009.

What to Expect

On the women's side, Foot Locker is testing a fitness concept called Six:02, which carries yoga pants, work-out wear and other related apparel. Six:02 now has nine stores open and an e-commerce site. The company pointed out that it will roll out many more stores next year.

FL is planning to expand further in Europe. The company is in plans to expand its children's business through new Kids Foot Locker stores. Foot Locker's aggressive expansion to new European markets could help drive sustainable long-term growth as the company increases its scale in Europe.

After delivering robust performance in 2013, Foot Locker believes that by continuing to exploit opportunities like children's business, e-commerce, vendor partnerships (store-in-store), and improved product assortments, and development of its store banner.com will give a strong foothold in the coming years. Further, the company is concentrating on long term plans which include European expansion, store remodels, heavier technological investments, and an increased focus on its women's business.

To End

Foot Locker's customers are going especially wild for colorful basketball shoes, the fastest growing category in the athletic footwear market. The management of FL told that the passion for basketball is even spreading to soccer-obsessed Europe.

The company's expansive strategies have shown robust growth, and the market share of it has been improved as well. In terms of management of its financial resources, Foot Locker's overall performance has proved very efficient.

Finally, the demand for sports shoes will continue to increase in the near future as Americans and Europeans are more focused on exercising and getting healthy. I am therefore pretty bullish that this global retailer will not let its valued investors as well as customers down in the near future.

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Model Portfolios	DCF Calculator
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Apple Investors Can Ignore the China Central Television Warning

Popular Posts: This Year’s 5 Hottest Marijuana Stocks5 Solar Stocks Shining Bright in 20145 Great American Stocks to Buy Recent Posts: Apple Investors Can Ignore the China Central Television Warning Gold Prices Poised to Continue Their Breakdown What Yahoo Stock Needs From Tuesday’s Earnings Report View All Posts Apple Investors Can Ignore the China Central Television Warning

Uh-oh. Just when Apple (AAPL) was on the verge of becoming the name to beat in China’s fast-growing smartphone market, the state’s television network poured water on those smoldering coals. Now the world’s most recognizable consumer technology name faces a huge hurdle in the lucrative market … or does it?

What if the Chinese government’s media arm cried “foul” and nobody actually cared? As it turns out, this is apt to be the shape of things. AAPL stocks owners need not worry about the red flag (no pun intended) China began to wave late last week.

Apple Products Pose a Security Threat? Source: Flickr

On Friday, state-run TV network China Central Television (CCTV) declared the iPhone’s location-tracking feature posed a national security concern. Specifically, it was allegedly troubling to some Chinese officials that the iPhone records its owner’s travels — in order to populate the “frequent locations” index – and could be used nefariously were someone to gain access to the wrong/right person’s smartphone logs.

It’s a stretch, though it’s not entirely inconceivable that knowing the approximate whereabouts of the nation’s movers and shakers at certain times of the day could prove valuable. Perhaps if the iPhone’s owner worked for a key agency and was known to be visiting a particularly sensitive location, it’s possible someone could connect the proverbial dots. In a nation that’s wildly crowded, however, knowing an individual’s vicinity at a particular point in time isn’t exactly earth-shattering data.

Whatever the case, in a country known for censorship in a world where the mere perception of impropriety — even a silly one like this — isn’t easy to forget, this kind of scandal could really crimp Apple at a critical time, right? Well, if it were a different TV network, maybe. When it’s the CCTV making the claim, however, even the Chinese are now rolling their eyes.

AAPL Stock Owners Have Nothing to Worry About

If this all seems a little familiar, there’s good reason — CCTV has worked diligently in the recent past to shame Western companies doing business in China. For instance, in October the network blasted Starbucks (SBUX) for what China Central Television described as price gouging. The beef was, a latte that cost $3.26 in Chicago cost $4.40 in China.

While twenty years ago such a report might have inspired a new wave of nationalism, in late-2013 it simply sparked a backlash against CCTV itself. Instead of inciting boycotts of the world’s most popular coffee chain, Chinese citizens were asking why the TV network was focusing on coffee prices and ignoring much bigger problems like pollution, corruption, and high housing costs. On Weibo (China’s version of Twitter), nearly 30,000 comments like “CCTV, can we talk about China’s housing and gas prices and other basic living costs before we discuss expensive coffee?” appeared shortly after the story aired.

Apple has been in China’s hot-seat before as well. In March of last year, the American maker of iPhones was specifically targeted as part of the annual Consumer Rights Day (yes, it’s a real thing) festivities led by China Central Television. Using undercover operatives and secret cameras to record conversations, CCTV was able to validate claims that Apple didn’t offer the legally-required length of warranty it was supposed to provide to Chinese customers, nor did it perform adequate warranty service. In conjunction with the report, several Chinese celebrities appeared to chime in on Weibo around the same time, bashing Apple.

Problem: The whole shebang appears to have been one big stunt designed to villainize Apple. When thousands and thousands of Chinese citizens recognized the timing of the Weibo posts — and who posted them — were part of a well-orchestrated and biased media attack, not only did Apple not suffer a marred reputation, the company actually garnered an army of Chinese sympathizers.

Bottom Line

The point is, CCTV has effectively lost its credibility, and it’s unlikely anyone is taking the latest warning from the television network seriously. Indeed, odds are good nobody was really surprised the iPhone keeps a log of where their owners are at any given time. How else is a “frequent locations” app supposed to work? (The feature can be disabled, by the way.)

The governmental-control ploys that may have worked in China in the 1980s depended on consumers not being able to communicate with one another, and not being able to point out obvious government-generated message gaffes.  The ploys also hinged on less-than-savvy Chinese citizens who never even asked if it was possible the state-run media might have an agenda other than seeking the truth. In an era of the unstoppable and somewhat-unregulated flow of information, though, China Central Television can’t afford to be anything less than honest and accurate … since someone else always knows the truth.

As for Apple, no, none of this is apt to impact the value of AAPL stock. The company survived its early-2013 drubbing, and Starbucks overcame the attempted shaming effort from November as well. Last week’s outcry will be little more than an amusing memory a week from now.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

U.S. Markets Regain Losses from Last Week

The Dow Jones Industrial Average rebounded from last week's losses to reach near record high levels on Monday, July 14. The Dow Jones Industrial Average finished the day up 0.66% at 17,055.42, off 12.84 points from its previous high of 17,068.26 on July 3. The S&P 500 also gained, adding 0.49% to end the day at 1,977.10. The S&P 500's 2014 high is 1,985.44.

A Goldman Sachs report released on Friday, July 11 revised its outlook for the U.S. markets. In a MarketWatch discussion on Goldman Sachs' report it notes that the S&P 500 will end the year around 2,050. This outlook for the S&P 500 index was revised up from a previous report by Goldman Sachs which had the S&P 500 index ending the year at 1,900. Goldman Sachs continues to remain bullish on S&P 500 growth through the end of the year. Beyond 2014 Goldman Sachs holds its estimate basically unchanged with the S&P 500 leveling off to reach 2,100 in 2015 and 2,200 in 2016.

The day's trading was highlighted by Citigroup (C) which reported earnings that beat analysts' expectations and a settlement for $7 billion that would keep it from ongoing legal issues. The settlement for Citigroup pertains to the packaging and disclosure of certain mortgage-backed securities. The financial company's earnings beat and settlement report were received favorably by the market which pushed its stock price higher, ending the day up 3.02% at $48.42. The S&P 500 Financial sector was up 0.62%. This news comes one day ahead of significant DJIA financial company earnings reports by JPMorgan (JPM) and Goldman Sachs (GS) on July 15.

In the DJIA financial stocks Visa (V) and Goldman Sachs led the index higher. Visa was up 1.86% ending at $221.03 and Goldman Sachs was up 1.33% ending the day at $167. Laggers in the index included Merck (MRK) which was down 0.44% to $58.18 and Wal-Mart (WMT) which was down 0.35% to $76.55.

In the S&P 500 the Energy sector was up 0.89% and the Technology sector gained 0.72%. The Financial sector followed with a gain of 0.62%.

About the author:JulieYoung789Julie Young is a Chicago-based financial journalist with nine years of experience in the financial services industry. She primarily writes article publications on financial market news and economic trends. Julie holds a Master of Science degree in Finance from Boston College and a Bachelor of Science degree in Finance from the University of Arkansas.

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Gilead Sciences: How Big a Beat?

UBS analyst Matthew Roden and team are feeling pretty bullish on Gilead Sciences (GILD) heading into earnings on July 23:

Special to The Chronicle

In the large caps, estimates look beatable across the board, none more than GILD, where we are now 26% ahead of consensus (we raise our PT to $115)…Based on strong Rx trends for Gilead’s Sovaldi, we increase our 2Q sales est. by $1.3bn to $3.25bn (that's not a misprint), $650m above consensus. Also not fully appreciated is the 3Q settlement of the 2014 convert in cash, amounting to a 39m share repo…

Gilead’s not the only biotech benefiting from Roden’s largess. He expects a beat from Biogen Idec (BIIB) and raised his target to $130. He predicts good things from Amgen (AMGN), as well.

Shares of Gilead Sciences have dropped 0.9% to $86.41 at 10:01 a.m. today, while Biogen Idec has fallen 1.4% to $321.25 and Amgen has ticked down 0.1% to $120.06.

Tesla Motors: China Tax Break ‘Significant Additional Stimulus,’ Deutsche Bank Says

Deutsche Bank’s Rod Lache and team assess the impact of China’s decision to waive a 10% purchase tax for electric vehicles on Tesla Motors (TSLA):

Reuters

Since the auto purchase tax rate is equivalent to 10% of a car’s price (excluding the 17% value-added tax), this represents a significant additional stimulus for Tesla demand in the world's largest Auto market. Recent data points have suggested that China demand for Tesla's Model S has been exceedingly strong. During recent meetings with Tesla management, we confirmed that wait times for the Model S have been rising (now 4 months in the U.S. and Europe, and 6 months in China), despite the sequential ramp-up in production. The China wait time is noteworthy, and we've seen indications that Tesla has been rapidly ramping up deliveries to this market…

Although Tesla's are priced somewhat higher in China than in the U.S., the difference is entirely due to taxes and shipping (the vehicle starts at $83,600 including $3,600 shipping; VAT adds another $17,700; Customs, duties, and other taxes amount to approx. $10,000 (down from $19,000 previously)). Nonetheless, given significantly higher markups for other luxury brands, the purchase price of a Tesla is somewhat lower than for a Mercedes E class or BMW 7 Series (In the U.S. the Model S is priced closer to S Class and 7 Series).

Shares of Tesla fell 1.6% to $219.46 today.

FOMC To End QE In October; The Container Store Shares Slide

Related BZSUM AeroVironment Surges On Upbeat Results; The Container Store Shares Slide Markets Edge Higher; Alcoa Profit Beats Street View

Nearing the close on Wednesday, the Dow traded up 0.41 percent to 16,971.72 while the NASDAQ surged 0.60 percent to 4,417.68. The S&P also rose, gaining 0.41 percent to 1,971.72.

Leading and Lagging Sectors

On Wednesday, the telecommunications services sector proved to be a source of strength for the market. Leading the sector was strength from Internet Gold Golden Lines (NASDAQ: IGLD) and NQ Mobile (NYSE: NQ).

Utilities shares fell around 0.23 percent in trading on Wednesday. Top losers in the sector included Vectren (NYSE: VVC), down 1.47 percent, and Atmos Energy (NYSE: ATO), off 0.80 percent.

Top Headline

FOMC Minutes were released at 2PM EDT today.  The Members believe investors were "too complacent on risks" and stated that QE will end with a $15BN reduction in monthly purchases come Oct. 2014 if the current outlook on the economy holds.  Most Members also saw broadly balanced jobs, growth, and inflation risks.

Equities Trading UP

AeroVironment (NASDAQ: AVAV) shares shot up 12.76 percent to $34.91 after the company reported upbeat fiscal fourth-quarter results. AeroVironment reported its quarterly earnings of $0.35 per share on revenue of $73.5 million.

Shares of Alcoa (NYSE: AA) got a boost, shooting up 6.03 percent to $15.75 after the company reported stronger-than-expected fiscal second-quarter results. Alcoa posted its adjusted earnings of $0.18 per share on revenue of $5.85 billion. However, analysts were projecting earnings of $0.12 per share on revenue of $5.63 billion.

Lexicon Pharmaceuticals (NASDAQ: LXRX) shares were also up, gaining 6.05 percent to $1.66. Lexicon and JDRF have collaborated for Phase 2 clinical trial of LX4211 in Type 1 Diabetes.

Equities Trading DOWN

Shares of The Container Store Group (NYSE: TCS) were down 9.38 percent to $24.53 after the company reported a wider-than-expected fiscal first-quarter loss and issued a downbeat forecast for full year 2014.

Salix Pharmaceuticals (NASDAQ: SLXP) shares tumbled 3.01 percent to $133.15 after the company agreed to merge with a unit of Cosmo Pharmaceuticals SpA.

MSC Industrial Direct Co (NYSE: MSM) was down, falling 4.79 percent to $88.91 after the company reported Q3 earnings of $1.06 per share on revenue of $720.50 million. The company also issued a weak Q4 earnings outlook.

Commodities

In commodity news, oil traded down 1.20 percent to $102.16, while gold traded up 0.68 percent to $1,326.00.

Silver traded up 0.63 percent Wednesday to $21.26, while copper fell 0.21 percent to $3.25.

Eurozone

European shares were mixed today. The eurozone’s STOXX 600 fell 0.08 percent, the Spanish Ibex Index gained 0.49 percent, while Italy’s FTSE MIB Index surged 0.79 percent. Meanwhile, the German DAX gained 1.18  percent and the French CAC 40 rose 0.42 percent while UK shares tumbled 0.34 percent.

Economics

The MBA reported that its index of mortgage application activity gained 1.9% in the week ended July 4.

Crude stockpiles declined 2.4 million barrels for the week ended July 4, the US Energy Information Administration reported. However, analysts were expecting a drop of 3 million barrels. Gasoline supplies climbed 600,000 barrels, while distillate stockpiles rose 200,000 barrels.

Posted-In: Earnings News Guidance Emerging Markets Eurozone Futures FDA M&A

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Wotif Group Acquisition Positive For Expedia

Expedia (EXPE), an online travel company in the United States and internationally announced the acquisition of Wotif Group on July 6, 2014. This article discusses the acquisition, the positives from the acquisition and the other growth triggers for Expedia, which make the company an attractive long-term investment option.

Acquisition of Wotif Group

On June 6, 2014, Expedia announced the acquisition of Wotif Group for a consideration of $658 million or $3.09 per share. The acquisition is a positive step by Expedia and is likely to bring significant long-term benefits.

Wotif Group is an Australian-based online travel company with Asia-Pacific region with a portfolio of leading travel brands. Wotif Group operates online travel brands in the Asia-Pacific region including, Wotif.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com, GoDo.com.au and Arnold Travel Technology. The company's multi-product portfolio focuses primarily on hotel and air, offering consumers more than 29,000 bookable properties in destinations around the world.

One of the biggest positives for Expedia is an increased exposure to the Asia pacific region, which is a high growth region as compared to developed markets. Expedia has been looking to expand its presence in Asia Pacific and the acquisition fits perfectly in the company's strategy to target high growth markets.

In one of my earlier articles, I had discussed the long-term prospects for make MakeMyTrip (MMYT) and also the growth the company has witnessed with strong presence in India. An increasing presence in the Asia Pacific region will boost Expedia's growth as well and the acquisition is a positive step in that direction. Priceline (PCLN) has also adopted a similar growth strategy for expanding in the Asia Pacific and it is working for the company.

I believe that Expedia will be on a look-out for more interesting acquisitions in Asia Pacific. The company seems to be on an acquisition spree as the company acquired Escape Group in June 2014 as well. Escape Group is one of Europe's leading online car rental reservation companies.

Positive Clarification on eLong (LONG)

There were rumours in the recent past that Expedia is considering selling its 65% stake in eLong. On July 7, 2014, Expedia announced that the talk on selling the stake was indeed a rumour and Expedia remains a long-term investor in eLong to support eLong's drive to become the leading Chinese travel site.

This is another positive announcement coming from Expedia in the last few days. I do believe that eLong has the potential to become one of the leading travel sites in China. eLong is already the second largest online travel company in China. The fact that eLong is backed by the world's largest online travel company is encouraging and eLong will continue to enjoy strong funding support for its expansion activities in China.

Strong Fundamentals To Support Acquisition Spree

Expedia has a strong balance sheet and cash flow position and this will support the company's aggressive acquisition spree and expansion into high growth markets. As of December 2013, Expedia had a cash balance of $1 billion. Further, the company had a low debt to capitalization of 36%, giving the company sufficient room to take debt for expansion or acquisition.

For the year ended December 2013, Expedia also had an operating cash flow position of $763 million as compared to cash interest payment of $84 million. Therefore, debt servicing is not a concern at all for the company.

Besides the growth from emerging markets and the capital appreciation benefits from that, Expedia also has a current annual dividend of $0.6 per share and a dividend yield of 0.8%. I believe that the company's dividend payout will also increase in the future with strong operating cash flows.

Conclusion

Expedia is certainly not complacent with its current position as the world's leading online travel company. The company is actively looking for new growth opportunities and attractive acquisitions. I believe that Asia Pacific will play a key role in the company's growth with the acquisition of Wotif Group.

Analyst estimates peg Expedia's earnings growth for 2014 and 2015 at 33% and 23% respectively. The stock, with a strong growth outlook, is a buy for the long-term. However, broad markets are trading at stretched levels and investors can buy the stock in a staggered investment style than bulk to average out on any decline.

About the author:Faisal HumayunSenior Research Analyst with experience in the field of equity research, credit research, financial modelling and economic research

Currently 0.00/512345 Rating: 0.0/5 (0 votes)

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1,000 Days and Counting: How Long Can the Bull Market Last?

Andrew Burton/Getty Images One thousand days and counting. That's how long it's been since the Standard & Poor's 500 index (^GPSC) suffered a correction. That means the S&P 500 hasn't suffered a 10 percent drop from its recent high level mark since October of 2011. What does that mean for investors? Should they take their profits now, or does this long-running bull market have more room to maneuver? One thousand days is a long time for the bull market to run without interruption, but it's not unprecedented, and it doesn't necessarily mean another correction is right around the corner. The bull market of the 1990s ran for 2,553 days without a correction. "When the market does something unusual it is a good idea to be on your guard," said Hugh Johnson, chairman of the Albany, New York-based money management firm Hugh Johnson Advisors. "For the market to have performed as well as it has without a significant correction is pretty unusual," said Johnson, "but I'm not doing anything about it." Most analysts say the 1,000 day mark isn't significant in their fundamental analysis of the market, but they acknowledge that it is psychologically important for investors. The current streak is double the average span without a 10 percent pullback. About one year after the current bull market began in 2009, there was 16 percent correction in 2010. The most recent correction came in 2011, when the market slumped by a steep 19.9 percent, and there was a close call in 2012 when it fell 9.9 percent. According the Stock Trader's Almanac, the average bull market includes two periods of correction, so the current rally isn't unusual in that regard. Many market pros and anxious investors have been anticipating another correction for quite some time, but the market has continued to plow ahead, setting record after record. So far this year, the S&P 500 has rung up 25 record highs, the latest one coming on Thursday. It went into the 3-day weekend just shy of the unprecedented 2,000 level. In addition, the Dow Jones industrial average (^DJI) topped the 17,000 mark for the first time. That means if you invested in an S&P index fund back when the current bull run began in March of 2009 -- and not traded in and out of that position -- you would have nearly tripled your investment. But Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, says the current bull "gets no respect." The financial media -- in print and on TV -- is filled with gloom and doom forecasts. A recent Wall Street Journal headline proclaimed "Some See Clouds Forming," while some market prognosticators warn that a market collapse is just around the corner. They contend the market cycle has run its course, that the market is way overvalued when you examine corporate profits and other key measures, and that unrest in the Middle East, Ukraine and other hot spots could explode. But most forecasters say that unless there is a major economic crisis (which seems very unlikely after the recent string of upbeat economic data) or a geo-political catastrophe, then the current bull market is likely to continue into next year. Jeffrey Hirsch, editor of the Stock Trader's Almanac, studies historical trends in the market. He expects stocks to trade sideways or retreat a bit during the usual "summer doldrums" of July and August, and then resume their advance later this year and into next year. "I don't see the market rolling over until 2016," said Hirsch, noting that presidential election years "tend to be horrible." Johnson, the veteran money manager who has helped guide investors through many bull and bear market cycles, says he is "on guard" but not worried at this point. He says the market hasn't been overrun by widespread optimism. "You don't run for cover, but you can build some defenses into your portfolio." If you're worried about a downturn, he says you can sell economically sensitive stocks like housing, and buy safer issues like utilities and household product stocks. Many analysts even say a market correction, which is inevitable at some point, is healthy for the long term bull to continue. It gets stocks from levels that are seen as slightly overvalued back into a more fairly priced range. And as Johnson notes, that would provide for "more upside potential with better buying opportunities."

3 Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Hated Earnings Stocks You Should Love

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Rocket Stocks to Buy in July

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Vince Holding

Vince Holding (VNCE) is engaged in the design, merchandise, wholesale, and retail of contemporary fashion brands products. This stock closed up 3% at $36.62 in Monday's trading session.

Monday's Volume: 503,000

Three-Month Average Volume: 290,238

Volume % Change: 65%

From a technical perspective, VNCE spiked notably higher here right above some near-term support at $34.76 with above-average volume. This spike higher on Monday is starting to push shares of VNCE within range of triggering a near-term breakout trade. That trade will hit if VNCE manages to take out Monday's intraday high of $36.87 to its all-time high of $38 with high volume.

Traders should now look for long-biased trades in VNCE as long as it's trending above Monday's intraday low of $35.55 or above some key near-term support at $34.76 and then once it sustains a move or close above those breakout levels with volume that's near or above 290,238 shares. If that breakout kicks off soon, then VNCE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $48.

Qunar Cayman Islands

Qunar Cayman Islands (QUNR) operates online travel commerce platform for travel service providers (TSPs) and display advertisers in the People's Republic of China. This stock closed up 2.7% at $28.55 in Monday's trading session.

Monday's Volume: 2.47 million

Three-Month Average Volume: 693,350

Volume % Change: 301%

From a technical perspective, QUNR jumped higher here with heavy upside volume flows. This stock has been uptrending over the last week, with shares moving higher from its low of $22.11 to its intraday high of $29.16. During that move, shares of QUNR have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if QUNR manages to take out Monday's intraday high of $29.16 with high volume.

Traders should now look for long-biased trades in QUNR as long as it's trending above Monday's intraday low of $26.90 or above $26 and then once it sustains a move or close above $29.16 with volume that's near or above 693,350 shares. If that move gets underway soon, then QUNR will set up to re-test or possibly take out its next major overhead resistance levels at $31.20 to $31.35, or even $33 to $32.72 to $33.70.

Dicerna Pharmaceuticals

Dicerna Pharmaceuticals (DRNA), a biopharmaceutical company, focuses on the discovery and development of treatments for liver diseases and cancers based on a proprietary RNA interference technology platform in the U.S. and internationally. This stock closed up 19.9% at $22.57 in Monday's trading session.

Monday's Volume: 665,000

Three-Month Average Volume: 174,164

Volume % Change: 394%

From a technical perspective, DRNA gapped up sharply higher here and broke out above some near-term overhead resistance levels at $18.84 to $21.50 with monster upside volume. This gap to the upside also triggered right above DRNA's 50-day moving average of $17.55. Market players should now look for a continuation move to the upside in the short-term if DRNA manages to take out Monday's intraday high of $23.39 with high volume.

Traders should now look for long-biased trades in DRNA as long as it's trending above Monday's intraday low of $20.30 and then once it sustains a move or close above $23.39 with volume that's near or above 174,164 shares. If that move kicks off soon, then DRNA will set up to re-test or possibly take out its next major overhead resistance levels at $27.50 to $30.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Big Stocks Getting Big Attention

>>5 Dividend Stocks That Want to Pay You More

>>5 Stocks Ready for Breakouts

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.

The "20% Catalyst" That Will Send These Shares into the Stratosphere

We love the General Electric Co. (NYSE: GE) investment story.

In fact, we've been telling our readers of Private Briefing about it for months.

We're going to talk about it again today - with good reason.

The already strong investment case for GE just got even stronger.

On Friday, the French government finally backed General Electric's $17 billion offer for the power and electrical-grid businesses of Alstom SA (OTC ADR: ALSMY).

And that's not all...

In a surprise move, France also said it would take a 20% stake in the French engineering giant.

It's a complicated deal.

But it could serve as an additional "catalyst" for the GE share-price rally we've been predicting.

Here's why...

All the Hallmarks of a Lucrative Deal-Making Frenzy

We've been telling you about the industrial heavyweight since we first recommended it in the Jan. 21 Private Briefing report "The Secret Reason This Stock Could Zoom."

As we'll show you in a minute, this is a company that just has a lot going for it right now. GE is slimming down. And we've even seen some insider buying - a bullish sign with a stock that's down from its highs.

The Alstom deal is another reason to buy the stock.

GE has been pursuing Alstom's power businesses since making a bid in April. The move caught the French government badly off guard, kicking off a controversy and bidding war that eventually included Germany's Siemens AG (OTC ADR: SIEGY) and Japan's Mitsubishi Heavy Industries Ltd (TYO: 7011).

Last Friday morning, in fact - in a last-ditch bid to win Alstom - the Siemens/Mitsubishi partnership boosted their joint offer for the company.

But GE came away the winner.

French Economy Minister Arnaud Montebourg said General Electric and Alstom will create three joint ventures (JVs) in the areas of steam turbines, renewable energy, and electrical grid.

The deal also gives GE Alstom's gas-turbine business - a coup for the U.S. company because the unit's business and technology is held in high regard.

As part of the complicated deal, GE agreed to sell its rail-signaling business to Alstom. That unit was valued at $1.4 billion.

The French government is also buying in to Alstom - in fact, will become its single-largest shareholder - by acquiring a stake from the Bouygues family. With an ownership stake of 29%, the Bouygues group currently is Alstom's biggest stockholder.

The government's decision - which is drawing criticism - is designed to give France leverage over GE, which has promised to preserve Alstom's brand name, jobs, and status as an icon of French engineering and technology, The New York Times reported.

"We have reached agreements with Alstom's management that will create an alliance between our companies in both spirit and practice," said GE CEO Jeffrey Immelt. "The alliance will retain and strengthen France's presence in the energy business and reinforce Alstom Transport. It creates jobs, establishes headquarters decision-making in France, and ensures that the Alstom name will endure."

But Immelt didn't lose sight of why he pursued the deal in the first place. Experts are valuing the deal at only 7.9 times cash flow (as measured by so-called "EBITDA") for the 12 months ending in September. That's cheap - especially when you consider that GE is paying a bargain premium of only 25% for Alstom.

So Immelt is justified in claiming the deal is a good one for his company's shareholders.

"This proposed alliance also preserves the value of this deal for GE investors," Immelt said. "Our synergies remain intact. It is immediately accretive to our earnings, furthers the transition of our portfolio towards industrial businesses, and broadens our product and service offerings for customers."

And when you look at the details of the deal, it's pretty clear that GE is getting what it came for.

A (Very) Well-Crafted Plan

The GE/Alstom deal achieves three key goals. Let's take a look at them one at a time.

The deal will:

Create an Alliance for the Energy Transition: GE and Alstom will establish two 50/50 joint ventures - one in the power-grid area and the second in renewables - to strengthen France's and Alstom's presence in energy and support its energy transition. In the power-grid area, GE and Alstom will combine their French power-grid properties to create an entirely new business. In the renewables area, the two firms will create a France-based business that includes Alstom's offshore-wind-power and hydroelectric-power businesses. Create a Global Nuclear and French Steam Alliance: This business will focus on the production and servicing of equipment for nuclear power plants, as well as the development and sales of new nuclear equipment around the world. There will also be a France-only initiative involving steam-turbine-equipment sales and services. Strengthen Alstom Transport: This agreement calls for GE to sell its top-ranked signaling business to Alstom. GE's signaling business is a leading provider of on-board and wayside signaling systems and communications solutions for the global rail industry. There will also be numerous "collaboration agreements" for the U.S. market involving services, technology, supply chains, and manufacturing and commercial support. The Catalyst That Will Ignite the Shares

In reports we've given you in January, February, and earlier this month, we've detailed the reasons GE's shares are ready to rally.

The Alstom deal adds another bullish catalyst: The new assets will add immediately to earnings.

During its fiscal 2013 financial year, Alstom's power and grid businesses generated $20.2 billion in sales and $1.7 billion in operating income. In the near term, GE says the buyout will add as much as 10 cents a share in 2016. In the long run, GE says the new assets will create more than $1.2 billion in "cost synergies."

Over the last couple of years, GE has been streamlining its business - divesting poor performers and adding growth businesses. It's going to benefit from the looming spin-off of its consumer-finance unit.

And Immelt has his eye on long-term growth, too.

As Private Briefing readers saw in our April report "Guess Who's Going to Be the 'Google' of the 'Internet of Everything'," GE is actually transforming itself into an "applications-software" company that will benefit in a huge way from the IoE.

All in all, this is a major global industrial/technology company that's poised for a strong rebound - meaning you're getting a shot at the stock at just the right time. We think that makes it a great "safety play" if the current record run in U.S. stocks were to sputter - or even stall.

Citigroup Stock Is Wandering in No-Man’s Land

Citigroup Stock Is Wandering in No-Man’s Land

Editor's note: This column is part of our Best Stocks for 2014 contest. Greg Harmon's pick for the contest is Citigroup (C).

It is halfway through the year, and the prospects for Citigroup still aren’t looking good.

Recall at the end of the first quarter that the stock price had recovered from a failed breakout and held at the bottom of the support range near $46. Then I suggested Citigroup was a stock to look at occasionally, but not worth buying unless it moved out of the range to the upside, and possibly a stock to trade on the short side below the range.

Citigroup stock did fall below the range in early April, but only for a day, before recovering back into the range. That breakdown was a technical signal to buy, but even that petered out after a week.

Click to Enlarge

So Citigroup’s stock price remains in no-man's land, stuck between $46 and $54.

The economy has not created any inflation to date, which is what Citigroup needs to see a rising yield curve and better prospects for growth. But to the close observer, it has actually gotten even worse.

The technical analyst would look now and see that all of the price action (outside of three weeks in 2014) has been below the 200-day simple moving average, as noted in the red box. This is in major contrast to the last six months of 2013, where C shares always were above this line.

This is what makes the picture more bearish going forward. Citigroup still is in a zone where there’s no edge to trade or invest either way. If you do keep C stock on your radar, then your focus should be on the short side for now.

In the Best Stocks for 2014 contest, which looks at a stock’s performance throughout all of 2014, I am still “long” the stock, so I am resolved to bringing up the rear unless one of the other stocks encounters some kind of accounting scandal.

Good thing that stop-loss kicked off in the real world back in early January.

As of this writing, Greg Harmon did not hold a position in any of the aforementioned securities.

Is This a Good Time to Invest in Stratasys?

A few days back, I was reading a news article that described the ongoing research about 3D printed homes and it surprised me to a considerable extent. Well, it is true that the notion of 3D printed homes is far-fetched but it is possible and more than the probability of achieving such a goal, the story highlighted the massive potential embedded in the 3D printing industry. Stratasys, the global leader in 3D printing also has a highly optimistic outlook regarding the future prospects of this industry.

A step forward

Recently, the company unveiled its game changer product, a multi-material 3D printer that combines colours with multi-material printing in a single run and is expected to revolutionize aspects of product design and manufacturing processes. This printer is estimated to reduce the time required to bring prototypes into the market by approximately 50 percent which is a remarkable feat. Innovation is the indispensable fuel that keeps a technology company running and Stratasys has exhibited a strong culture of efficient innovation.

Getting big with Makerbot

Analysts on the Wall Street have criticized Stratasys' slow responsiveness to market changes and competitive dynamics. The acquisition of Makerbot, for which the company paid around $403 million has been claimed an overvalued deal as the company paid around 40 times the initial valuation of Makerbot. Though Stratasys had made an excess payment to an extent for acquiring Makerbot, it was the best way to enter the consumer 3D printing markets. The acquisition absolutely fits into Stratasys' plan of owning the 3D printing space.

Additionally, Makerbot's 3D printers start at a price of around $2K while Stratasys cheapest printer cost $10K and this acquisition would give Stratasys the much needed pricing leverage that is needed to stay in consumer 3D printing markets. The decision to buy out Makerbot is also valid because one of Stratasys' oldest and fiercest competitor 3D systems (the pioneer of this industry) is already a major player in consumer 3D printing business. Makerbot's recent deal with Dell to offer 3D printers and scanners to small and mid-sized businesses marks the start of benefits that will accrue to Stratasys in the long run.

The duel with 3D systems

As I mentioned above, one of Stratasys' biggest rivals and dominant player in the industry is 3D systems. The company is the initiator of the 3D printing concept and has maintained its position in the industry by creating multiple entry barriers in form of pricing strategies, litigation and robust product portfolio.

Of late the confidence in 3D systems has been on a decline as the company has made some erratic acquisitions in the past in a bid to achieve quick growth but these have not churned out any commendable result. Apparently, 3D systems has overestimated the rate of this industry's growth and hence, invested in ideas that are ahead of time.

The stock plummeted 15% in a day after the announcement of 2013 guidance because like the company itself, investors have also put immense confidence in the scope of 3D printing. As such, the unloading of shares will continue till the market completely discounts the overvaluation factor.

It can be noted that the recent price fall in 3D systems cannot be construed as a sign of a bursting 3D bubble because the aspects of 3D printing industry growth do not align with that of an overvalued bubble. I agree that the stock faced a price correction but the reason behind it is the company's fast-moving acquisition spree that is yielding insignificant results. Also, unlike the dot-com bubble of 2000, the 3D printing industry has much lesser players and robust entry barriers in place which will push the companies to set realistic goals and achieve them.

Take caution

Stratasys has also delivered a cautionary guidance especially with respect to operating expenses which will see a healthy increase during the year 2014. However, the synergy from Objet and Makerbot deals has instilled confidence in the management in respect of sales and revenue.

Though the guidance from Stratasys has a rosy outlook, it has also contained investor expectations. It is quite clear that Makerbot will be the cornerstone of growth for Stratasys in 2014 as the former has an established product portfolio in the consumer 3D printing space along with a strong research and development team. Hence, Makerbot can work towards establishing dominance on the consumer side by offering an affordable range of printers.

Final words

3D printing industry is currently in its early stages and investors have flocked to this sector because of the glamorous future opportunities. As a result, misguided valuation has become a buzz word in the industry and it is becoming difficult to measure the actual worth of these opportunities. Even Stratasys is trading at a 50x multiple based on EPS guidance provided by the company for 2014.

In my opinion, it is prudent to hold off putting money in Stratasys for a while and understand the full impact of integration of Makerbot to its product portfolio because the latter sells its printers at lower operating margins. Thus, a full-fledged integration of Makerbot and clarity in prospects of this industry will be a good point for entry of investors.

About the author:Riddhi KharkiaA practicing Chartered Accountant based out of India. I have keen interest in analyzing tech stocks that are driven by value.

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MORE GURUFOCUS LINKS

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

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