Yellen: Economy Will Need Fed’s Support for ‘Some Time’

Federal Reserve Chair Janet Yellen, easing investor concern that interest rates may rise earlier than previously forecast, said the central bank’s unprecedented stimulus will be needed for “some time.”

Yellen, citing the examples of three people struggling to find work, used a speech to a community development conference in Chicago to make the case for continued Fed stimulus, which has included more than five years of interest rates near zero and trillions in bond purchases.

“This extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policymakers at the Fed,” Yellen said in her remarks to a Fed community development conference. “The scars from the Great Recession remain, and reaching our goals will take time.”

Stocks rose as Yellen highlighted the Fed’s commitment to spur the economy and put 10.5 million unemployed Americans back to work. Share prices fell on March 19, when she said in a press conference that the Fed might start raising the benchmark interest rate above zero about six months after ending its bond purchase program. Yellen didn’t mention a timetable today.

“It is an indirect pushback,” said Ward McCarthy, chief financial economist at Jefferies LLC in New York. “I don’t think she could directly contradict what she said at the press conference, so she did the next best thing, which was to paint a picture of a Fed that is going to be accommodative for a long, long time.”

Stagnant Wages

Large numbers of partly unemployed workers, stagnant wages, lower labor-force participation and longer periods of joblessness show that “there remains considerable slack in the economy and the labor market,” Yellen said.

The Standard & Poor’s 500 Index rose 0.6% to 1,868.55 at 11:38 a.m. in New York. The yield on the 10-year Treasury note was up two basis points, or 0.02 percentage point, to 2.74%.

The Federal Open Market Committee has kept the benchmark interest rate near zero since December 2008 and sought to cut borrowing costs and fuel growth through bond buying that has more than quadrupled its assets to $4.23 trillion.

While policy makers have slowed the pace of their monthly asset purchases over the past three gatherings to $55 billion from $85 billion, Yellen said the central bank’s “commitment is strong” to helping sustain progress in the job market.

“Recent steps by the Fed to reduce the rate of new securities purchases are not a lessening of this commitment, only a judgment that recent progress in the labor market means our aid for the recovery need not grow as quickly,” she said. “Earlier this month, the Fed reiterated its overall commitment to maintain extraordinary support for the recovery for some time to come.”

Human Cost

Yellen, 67, has focused on the labor market and the human cost of unemployment for much of her career as an academic and central bank official. After three years as Fed vice chair, she was sworn in last month to succeed Ben S. Bernanke. The FOMC said in a policy statement this month that rates will likely remain low for a considerable time after the bond buying program ends. The committee said it will weigh a “wide range of information,” including labor-market measures, in deciding when it will eventually begin raising rates.

Unemployment was 6.7% in February, up from the 6.6% level in January that was the lowest since October 2008. The economy added 175,000 jobs in February, more than economists projected, following the weakest two-month hiring gain in more than a year in December and January.

Yellen departed from the style of her recent predecessors by citing three individuals by name and discussing in her speech how their struggles with joblessness “tell us important things that the unemployment rate alone cannot.” Yellen spoke to them by phone, Fed Spokeswoman Michelle Smith said.

Claims Processing

Yellen cited Dorine Poole, who lost a claims processing job and struggled to find work after two years of unemployment. She said Jermaine Brownlee, a plumber and construction worker, “scrambled for odd jobs and temporary work” and still makes less than before the recession. Vicki Lira lost two jobs, was homeless at times, and now serves food samples part time at a grocery store.

“They are a reminder that there are real people behind the statistics, struggling to get by and eager for the opportunity to build better lives,” Yellen said. “Their experiences show some of the uniquely challenging and lasting effects of the Great Recession.”

--With assistance from Kim Chipman in Chicago and Peter Cook in Washington.

NVIDIA to Return $1 Billion to Investors This Year

Graphics specialist and mobile chip maker NVIDIA (NASDAQ: NVDA  ) intends to return $1 billion of capital to investors this fiscal year, the company announced today.

The return will be in the form of share repurchases as well as dividends, including $100 million in stock being repurchased in the current quarter.

The company launched its quarterly dividend program in November 2012, and has since returned $200 million to shareholders to date. That total includes $100 million in stock buybacks and $100 million in dividends so far. Most of the $1 billion will be through the company's repurchase program. The company's quarterly dividend is $0.075 per share, amounting to about $50 million a quarter.

CEO Jen-Hsun Huang expressed confidence in NVIDIA's cash-generating capabilities, saying its strategies are gaining traction.

link

When the White House starts giving investment advice, we're all in trouble

Bloomberg, Getty Images, iStock, Gerardo Tabones

When the White House starts dishing out advice about investing in the global equity markets, apparently short-sellers don't listen. And why should they?

On March 18, press secretary Jay Carney said that the only investments worth making in Russian equities are wagers that the market will decline.

Anyone paying attention wisely wasn't really paying attention. The Russian equity market, as measured by the Market Vectors Russia ETF (RSX), the largest U.S. exchange traded fund tracking the Russian market, was down 8.7% since the start of the Crimean crisis in late February but since Mr. Carney's vague and somewhat confusing statement, it's up 2.4%.

In fact, some are even calling the “blood on the streets” of Russia's stock market a buying opportunity.

The Market Vectors Russia Small-Cap ETF (RSXJ) has fallen by 15.7% since Russia started its advance on Crimea, but has gained back 1.7% since Mr. Carney said investors should avoid the Russian market.

Over those same periods, the S&P 500 Index has been essentially flat.

To be fair, it was never clear whether Mr. Carney was suggesting that investors help the U.S. government punish Russia by dumping and/or shorting Russian stocks, or whether he was giving investors a friendly heads-up that U.S. and European sanctions could eventually hurt the Russian economy and, ultimately, its equity markets.

Whatever, it's clear that the short-sellers didn't take the bait.

According to Bloomberg, the percentage of shares of RSX borrowed for shorting has fallen to 14% of the total stock, which is down from 17% the day Mr. Carney spoke, and a record 21% on March 3.

“I don't believe whether a U.S. investor invests in Russia will have any impact on the Russian stock market, but telling people to get out of the stock market is manipulative,” said Bill Mann, portfolio manager at Motley Fool Asset Management.

Mr. Mann pointed out that in addition to being manipulative, such statements also expose a certain level of ignorance regarding the way equity markets work.

“Selling a stock is a derivative and largely neutral response, because the only way out of a stock is to sell it to somebody else who wants to buy it,” he said.

Mr. Mann generally avoids allocating to Russian equities in the two funds he manages because he isn't comfortable with the way a third of the country's public companies are owned by the government and another third are owned by Russian oligarchs.

But even if he liked specific Russian stocks, Mr. Mann said. he wouldn't avoid them based on a White House effort to whip up some populist campaign to punish Russia.

“The stock market ultimately f! ollows the performance of the businesses, and a stock price at any point is just an equilibrium,” Mr. Mann said. “If you can impact the performance of those businesses, you will deeply impact the stock, and if that's what the White House meant to say, maybe that's what should have been said.”

If what we're seeing is the start of regular theme of investment advice coming from White House spokespeople, maybe it's time for a new market barometer to basically do the opposite of what's being advised.

But, at the very least, it opens a new can of challenges for the White House.

“What are they going to do when things start to improve, tell short-sellers to cover their positions?” said Joseph Witthohn, vice president of product development at Emerald Asset Management.

“The White House should not ever be in the advice business on something this serious,” Mr. Witthohn added. “They shouldn't be looking for U.S. investors' help in manipulating the economies of other nations.”

GM adds 824,000 vehicles to recall

  Mary Barra's new GM apology NEW YORK (CNNMoney) General Motors is expanding its ignition switch recall to add 824,000 cars sold in the U.S. between 2008 and 2011, the company said Friday.

Until today the recall included the Chevrolet Cobalt and HHR, the Pontiac G5 and Solstice, and Saturn Ion and Sky through model year 2007. Now the company is including all model years of those vehicles because faulty switches could have been installed as a repair after owners purchased one of the newer models.

About 95,000 faulty switches were sold to dealers and wholesalers and about 90,000 of those were used to make repairs, the company said.

The new recall adds to the 1.4 million vehicles already recalled in the United States.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags. At least 12 deaths have been attributed to the issue. Although GM has recalled the vehicles, it has said they are still safe to drive if owners remove any extra weight from key rings.

"Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn't practical," said CEO Mary Barra in statement. "Out of an abundance of caution, we are recalling the rest of the model years," she said.

GM has been criticized for how it has handled the recall because it has admitted that some employees were aware of problems with the ignition switch in small cars at least as early as 2004. Barra will testify before a U.S. congressional subcommittee on April 1 as part of an investigation into the automaker's handling of the flawed ignition switch.

Owners who may have had a suspect part installed in their cars will receive a letter the week of April 21, according to the company. GM (GM, Fortune 500) dealers will replace the ignition switch for free and customers who had paid to have the switch replaced previously will be eligible for a reimbursement.

The National Highway Traffic Safety Commission urges impacted drivers to have their vehicles repaired promptly after receiving the notification from GM. In the meantime, the group advises them to follow GM's recommendation to use only the ignition key with nothing else on the key ring when driving the vehicle.

Finding Opportunity in Brazil’s Unruly Politics

The Brazilians haven't been able to catch a break lately. The markets have been rattled by slowing economic growth in the country and both the Fédération Internationale de Football Association (FIFA) and the International Olympic Committee have been complaining about slow progress in preparing for their upcoming events.

FIFA has been particularly vocal as it has become clear that Brazil doesn't have a laboratory which is properly certified for handing drug testing, forcing the World Anti-Doping Agency to fly specimens from World Cup players to Switzerland for screening.

The biggest blow came on Monday when S&P downgraded the country's credit rating to BBB-, just a single notch above junk and on par with Spain and Russia. The one saving grace is that S&P now calls its outlook stable rather than negative, which means further cuts aren’t likely over the near term.

That's cold comfort for President Dilma Rousseff, who along with her government has been desperately trying to stimulate the Brazilian economy ahead of her October reelection bid. Over the past two years they have implemented a number of tax cuts and aggressive social spending programs in attempt get the country's growth rate closer to 2008's 17.8 percent than this year's forecast of just 1.7 percent. They've subsidized credit to families in the country's low-income housing program, eliminated the tax on foreign investors buying Brazilian bonds, eased reserve requirements on banks, reduced a host of income taxes, and invested in the nation's ports and dozens of other programs, with most of these initiatives financed through state-owned banks.

Those measures have spawned a boom in inflation and a deteriorating fiscal position, but they have yet to produce much growth. While you could argue that growth could be even worse in the absence of those measures, what growth there is hardly offsets the fact tha! t Brazil has failed to meet its own primary surplus goals, experienced a surge in debt levels and dug into external accounts as the country's deficit has widened. Government debt is likely to rise to 45 percent of gross domestic product in the near term, according to S&P.

The downgrade is a serious blow to Rousseff, who won office campaigning against what she called the weak fiscal management of her predecessor. After casting herself as the good steward of the country's resources, many of her economic policies have stymied rather than create growth. So while Fitch and Moody's have said that they don't plan downgrades of their own ahead of the Brazilian elections, S&P's move alone will give her opponents more ammunition, as if they didn't already have enough.

So far, though, public opinion polls still show Rousseff well ahead of her challengers, Aécio Neves of the Social Democratic Party and Eduardo Campos of the Socialist Party, but the slates aren't yet set in stone. Under Brazilian election law, candidates are chosen internally in a closed primary system. Neves and Campos have been "pre-selected," but challengers could emerge in party conventions to be held in June. That isn't likely, but even so the conventions will galvanize the parties and the election will begin to really heat up.

Despite these economic troubles, Rousseff will point to the fact that plenty of foreign companies are investing in the country. Volkswagen AG (Frankfurt: VOW) has announced that it will invest more than $4 billion in developing new vehicles and technologies in its local market operations over the next four years, while Bain Capital has agreed to buy a leading Brazilian health insurer for about $4.3 billion. In all, foreigners have invested more than $65 billion over the trailing year.

But that hasn't resulted in a huge benefit for many Brazilians. While those investments have created jobs and incomes for urbanites, about 19 percent of Brazil's population lives ! in rural ! areas largely unaffected by that foreign investment. That block of voters could radically alter the course of the election and they're likely to emerge as a powerful force. That's especially true since many urbanites are increasingly discontent, as evidenced by continued, though sporadic, street protests throughout the country.

This year's elections will prove much more competitive than they appear now, giving Brazil a chance to change economic direction and perhaps implement badly needed reforms. The question is, will Brazil’s leaders seize this opportunity? If they do, investors will find new avenues to profit in this vast country.

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 Stocks Ready for Breakouts

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 Toxic Stocks to Sell Now

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

Flowers Foods

Flowers Foods (FLO) produces and markets bakery foods in the U.S. This stock closed up 3.4% at $21.37 in Friday's trading session.

Friday's Volume: 4.19 million

Three-Month Average Volume: 1.19 million

Volume % Change: 249%

From a technical perspective, FLO jumped higher here right off its 50-day moving average of $20.65 with above-average volume. This move is starting to push shares of FLO within range of triggering a major breakout trade. That trade will hit if FLO manages to take out its 200-day moving average of $21.76 to some more key overhead resistance levels at $22.10 to just above $22.50 with high volume.

Traders should now look for long-biased trades in FLO as long as it's trending above its 50-day moving average of $20.65 or above more support at $20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.19 million shares. If that breakout starts soon, then FLO will set up to re-fill some of its previous gap-down-day zone from last November that started near $25.

Littelfuse

Littelfuse (LFUS) designs, manufactures and sells circuit protection devices for use in the automotive, electronic and electrical markets worldwide. This stock closed up 4% at $96.20 in Friday's trading session.

Friday's Volume: 380,000

Three-Month Average Volume: 85,323

Volume % Change: 366%

From a technical perspective, LFUS jumped sharply higher here right above its 50-day moving average of $92.04 with heavy upside volume. This move pushed shares of LFUS into breakout and new 52-week-high territory, after the stock took out some near-term overhead resistance at $96.07. Market players should now look for a continuation move higher in the short-term if LFUS manages to take out its new 52-week high at $97.40 with high volume.

Traders should now look for long-biased trades in LFUS as long as it's trending above Friday's low of $92.70 and then once it sustains a move or close above $97.40 with volume that's near or above 85,323 shares. If that move gets underway soon, then LFUS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $105 to $110.

B/E Aerospace

B/E Aerospace (BEAV) designs, manufactures, sells and services cabin interior products for commercial aircraft and business jets in the U.S. and internationally. This stock closed up 1.5% at $87.98 in Friday's trading session.

Friday's Volume: 2.29 million

Three-Month Average Volume: 1 million

Volume % Change: 123%

From a technical perspective, BEAV trended modestly higher here with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $74.48 to its recent high of $88.17. During that uptrend, shares of BEAV have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Friday is now starting to push shares of BEAV within range of triggering a big breakout trade. That trade will hit if BEAV manages to take out some key overhead resistance levels at $88.17 to its 52-week high at $88.43 with high volume.

Traders should now look for long-biased trades in BEAV as long as it's trending above $86 or $85 and then once it sustains a move or close above those breakout levels with volume that's near or above 1 million shares. If that breakout starts soon, then BEAV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $95 to $100.

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 Stocks Under $10 to Trade for Breakouts

>>5 Stocks Insiders Love Right Now

>>5 Big Trade Signals After Yellen's Surprise Message

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.

IBD Securities America Names Assistant of the Year

Independent broker-dealers’ business revolves around their representatives, but for the 13th year in a row, IBD Securities America has honored a sometimes-overlooked but crucial member of an advisor's team — the sales assistant. Barbara Pal, an administrative assistant for advisor Bradley Schlang at Cedar Brook Financial Partners in Cleveland, has been named Securities America’s annual assistant of the Year for 2013. Pal, who joined Cedar Brook in 2007, will be honored at Securities America’s Connect! national conference in San Francisco this June.

Schlang, a CFP and IAR for Securities America Advisors in addition to being a registered rep with Securities America, said in a statement that “every time we have been hit with a challenge, Barbara immediately goes into solution mode.” To qualify for the honor, assistants are nominated by a Securities America advisor, have a minimum of two years experience and must show specific instances of service above and beyond expectations to clients, advisors and the firm. 

Last month, Pal was named to Securities America’s Sales Assistant Advisory Board, a group of 10 assistants who provide “suggestions and feedback on company improvements,” according to the IBD.

That board is just one of the many programs provided to both new and experienced sales assistants by Securities America, including an annual two-day conference called Assistant University, a specific track for assistants at the broker-dealer’s national conference and additional in-person and electronic educational and support programs.

---

Check out Securities America Reps Get Mobile Check Deposit Tool on ThinkAdvisor.

3 Energy Stocks to Buy for the Upcoming Infrastructure Boom

Popular Posts: Bring In Big Income With These 5 High-Yield REITs5 Energy Stocks to Profit From Mammoth Marcellus Output2 Energy Stocks Cracking Into Britain’s Fracking Frenzy Recent Posts: 3 Energy Stocks to Buy for the Upcoming Infrastructure Boom Bring In Big Income With These 5 High-Yield REITs Socially Responsible Investing Is Starting to Beat the Market View All Posts

As we've noted countless times before, the fracking revolution has completely changed the game for America's energy sector. Energy companies continue to use the technique along with other advanced horizontal drilling methods to unearth a huge abundance of oil and natural gas.

In fact, the U.S. has quickly overtaken Russia as the number one producer of natural gas and could possibly pass Saudi Arabia in terms of oil production in the near future.

That surge has made many energy firms the stocks to buy as this production growth has taken hold. It also creates an interesting and potentially expensive problem: the need for more infrastructure.

In order to move and process all of this immense bounty, we are going to need plenty of new pipelines, fractionators and other pieces of energy logistics. Building all of this vital infrastructure is going to cost a pretty penny and take years to complete.

That means some of the best stocks to buy could be the firms doing that heavy lifting and construction.

More Than Half A Trillion Dollars

North America's energy landscape is currently a crisscrossed map of distribution bottlenecks, broken connections and pricing discrepancies. Eliminating those issues is key to even begin thinking about using our newfound bounty.

At the same time, the bulk of America's new sources of plentiful supply are coming from areas that have not historically been known for energy production. Areas such Michigan's Antrim shale and Ohio's Utica are becoming hotbeds of production. To take advantage of and gather these unconventional resources, new pipelines and infrastructure must be built.

Adding in new liquefied natural gas (LNG) export terminals and various processing plants so that we can actually use what we produce bumps the amount of needed infrastructure up even further. And building all of this won't be a cheap undertaking. No, it's actually going to be very expensive indeed.

According to an updated study by consultancy group ICF International, America will need to spend roughly $30 billion per year on new midstream infrastructure through 2035. That's about 3 times the amount that ICF predicted at the start of the shale boom and equates to a monster $641 billion in total spending on pipelines, pumps and gather facilities.

Let that number sink in for second — $641 billion.

The key is attaching all of the new and upcoming shale fields into our current pipeline network. For example, despite being one of the most prolific producing regions in the country, producers in North Dakota's Bakken continue to ship their product via more expensive rail cars rather than pipelines.

At the same time, the majority of natural gas in the region is flared off during production as there is no ways to get that product to market. ICF predicts that nearly 35,000 miles of new transmission pipelines will be need to be built as well as 303,000 miles worth of gas gathering lines in order to connect fields like the Bakken and Marcellus to trunk lines.

Overall, ICF estimates that this amount of spending will be critical to helping North America's energy boom move forward. Without it, the movement's potential will be constrained.

That’s why the stocks to buy could be the construction and engineering firms that focus on building energy infrastructure. Here are three of the best stocks to buy for America’s upcoming infrastructure boom:

3 Stocks To Buy Chicago Bridge & Iron Company (CBI)

While it's not based in Chicago and it doesn't build bridges, Chicago Bridge & Iron Company (CBI) could be one of the best energy infrastructure stocks to buy for building out America's shale boom. The firm is a petrochemical construction powerhouse and has been involved in a variety petroleum-related projects — including the design and construction of some of the world's largest onshore and offshore pipeline projects, LNG facilities and refineries.

CBI has been racking up new contracts like crazy. The latest include a $6 billion LNG export facility contract with Sempra Energy (SRE) and a $100 million contract to build pipelines & propane dehydrogenation unit for Enterprise Products Partners (EPD).

Those hefty contract wins, plus the forward P/E of just 14 — make CBI one of the best stocks to buy.

KBR (KBR)

Spun-off from oil service stock Halliburton (HAL), KBR (KBR) could an interesting "value" pick for building outAmerica's energy boom.

Like CBI, KBR specializes in a variety of oil and gas infrastructure projects — including LNG and gas-to-liquids (GTL) facilities. However, unlike CBI stock, KBR has recently run into a bit of trouble lately.

The firm reported terrible earnings and KBR stock sunk nearly 13.5% on the news. Currently, KBR stock trades for cheaper forward P/E than CBI, and it sports a higher dividend at 1.2%. At the same time, KBR continues to gain new contracts in the midstream and downstream segments of the energy markets. It has posted recent wins in oil sands processing as well as new natural gas-based fertilizer units.

Despite its recent troubles, KBR is still one of the better stocks to buy if you want to play the prospective infrastructure boom.

MasTec (MTZ)

While it isn't as big as KBR or CBI, MasTec (MTZ) is quickly becoming of the best energy stocks to buy. Shares of the construction firm recently hit 10-year highs.

MTZ continues to diversity away from its traditional core construction market of electric transmission and telecomm work. Its new focus has been pipelines, pipelines and more pipelines. Recent buys of private and smaller midstream-focused rivals has made MTZ into a pipeline specialist.

Those buys have translated into some serious earnings and profit growth at the firm. Oil & gas operation revenue jumped a whopping 103% during the last reported quarter.

Meanwhile, MTZ's backlog of new projects jumped 23% versus last year to stand at $4.1 billion. That backlog of new midstream and pipeline projects is currently greater than the firm’s market cap. All in all, MTZ is small. But the small stature could make it one of the best energy stocks to buy in today's market.

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

Madoff aides convicted in Ponzi trial

Joann Crupi, a former employee of Bernard L. Madoff Investments Securities LLC, exits federal court in New York Bloomberg News

Five former aides to Bernard Madoff who spent decades working for his firm were found guilty of helping run the biggest Ponzi scheme in U.S. history, a $17.5 billion fraud exposed by the 2008 financial crisis.

The three men and two women, hired by Mr. Madoff with little financial experience, were convicted on all counts. The defendants failed to persuade a federal jury in Manhattan they were ignorant of the fraud despite being part of the inner circle at his New York-based firm.

Hatched in the 1970s, Mr. Madoff's fraud targeted thousands of wealthy investors, Jewish charities, celebrities and retirees. It unraveled in 2008 when the economic crisis led to more withdrawals than Mr. Madoff could afford to pay out. In addition to $17.5 billion in principal, it erased about $47 billion in fake profit that customers thought was being held in their accounts.

Today's verdict, after five months of testimony and four days of deliberations, is a major victory for the U.S. government, coming in the only criminal trial brought in the five years since the scam was revealed. Mr. Madoff refused to cooperate with prosecutors.

Some clients learned they lost their life savings after Mr. Madoff's confession and arrest on Dec. 11, 2008, leading to criticism of regulators who repeatedly overlooked the scam. Mr. Madoff, 75, pleaded guilty the next year and is serving 150 years in a North Carolina prison.

BEGAN PROBE

Prosecutors began probing Mr. Madoff's highest-ranking employees soon after his arrest. While the con man claimed to have carried ou

Celgene, Gilead and a Truckload of Patent Trouble

Shares of Gilead (GILD) and Celgene (CELG) have tumbled today after both companies revealed that they were facing patent pressures.

For Gilead, Idenix Pharmaceuticals (IDIX) filed a patent-infringement lawsuit that appears to target Gilead’s Sovaldi (someone please correct me if I’m wrong). For Celgene, it was the decision of a New Jersey court to schedule a hearing on a patent case for April 29, earlier than expected. It hasn’t helped that the UK’s National Institute for Health and Care Excellence also said that Celgene’s Revlimid doesn’t work well enough to be covered for “second line treatment of multiple myeloma.”

Bernstein’s Geoffrey Porges doesn’t expect the outcome of Celgene’s hearing to have a major impact:

Overall, the outcome of the case will likely not be impacted by the outcome of the Markman hearing. Revlimid is currently protected by some two dozen patents in the US. Our attorney consultants believe that the polymorph patent 7465800 (or ’800 patent) is a particularly solid pillar in the “dome” of patents that Celgene has built around Revlimid. Our outlook for Revlimid sales remains unchanged, we continue to project product sales growth from $9bn in 2015 to $16bn in 2019, and $21bn 2023. Based on our analysis of consensus expectations 2, we estimated that the stock had been already discounting a ~30% chance that Revlimid will lose its patent protection by 2019…

We continue to rate Celgene Outperform, with a target price of $214. We believe that the market’s concern about Revlimid’s patent protection and NICE recommendations is overdone. We see no reason to change our revenue and earnings forecasts for the stock and recommend investors add to positions on this temporary weakness.

Shares of Celgene have fallen 3.5% to $150.54, while Gilead has dropped 3.2% to $75.51 and Idenix Pharmaceuticals has declined 0.6% to $6.90.

To Grow RIA Business, Add Retirement Plan Service: Fidelity

Advisors who offer retirement plans see them as part of their broader wealth management services rather than a dedicated business, leaving many scrambling to keep up with fiduciary rules, build scale and grow relationships with their clients, according to research from Fidelity.

However, some advisors have gone beyond accommodating retirement plans to deliberately growing their business. Earlier research from Fidelity shows that there are opportunities for advisors who focus on retirement plans. The 2013 Fidelity Plan Sponsor Attitudes Survey found 84% of sponsors relied on an advisor in 2013.

“We’ve found that many of them have thought about growing in this space, but never took the time and never really knew how to do that, to have an intentional growth strategy,” Meg Kelleher, executive vice president and head of the retirement advisors and recordkeepers segment for Fidelity Institutional Wealth Services, told ThinkAdvisor on Wednesday.

She noted that many of these “accommodating” advisors have just a handful of plans because a client has asked for their help based on their other expertise. For example, “Someone in their high-net-worth book of business says, ‘Boy, I love what you’re doing for me with my personal wealth. Can you help me with the 401(k) plan that I’m responsible for in my company?’ And the advisor would say yes because they wanted to work closely with the high-net-worth individual and they do a good job with the plan, but they never sat back and said, ‘Hmm, if I have one to three plans, why not have 15 to 20? But how do I do that and how do I scale that business? How do I know that would be a good return on my investment?’”

To help answer those questions, Fidelity is launching a three-step program that helps advisors diagnose whether retirement plan clients are right for their practice; develop a deliberate approach to grow that part of their business; and connect with the clients and prospects that will help them grow.

Kelleher said that as they were developing the program, Fidelity analyzed its client base to see how they were running their practice, “looking at everything from how they tell their firm’s story to succession planning, how to segment their clients, how to do strategic planning.”

“We also did the research at the end of last year to make sure that as we built this program, it had a really informed view and that we were building something that would be valuable to the advisor,” she said. “It’s almost impossible to pick up a publication now that doesn’t have something about retirement. We knew there wasn’t a shortage of information for these advisors, but what we would hear from them is they didn’t know how to digest it to create an actionable plan.”

Kelleher acknowledged that working in the retirement plan business was not for everyone. “If you only have a few plans and it’s not core to you, you could easily say it’s not the right model,” she said. “What I think we’re going to see is those firms that make that decision, if they want to grow, they have to invest the time and resources or it could be a distraction.”

Some of the research Fidelity conducted in developing the program identified common attributes among high-performing retirement plan advisors. “Those advisors are very bullish on the market,” Kelleher said. “They experienced really significant growth over the last five years and are very bullish on the growth that they believe they’ll achieve over the next five. They also have been very deliberate, and that’s really the key message of this program: If they want to accelerate their growth, they have to be deliberate.”

As for advisors who do decide to expand their retirement plan business, Kelleher doesn’t anticipate they will abandon their other wealth management services, either. In fact, advisors who have added retirement business have said it’s increased referrals.

“We see some advisors who have been building out their retirement practice who will talk about how the high-net-worth business actually feeds referrals for the retirement business. Also, on the retirement side, there are referrals that go from the folks in the plan who are looking for additional support that get referred over to the wealth management side,” Kelleher said. “Those firms that have both, they can get referrals that fuel the growth on both sides.”

Ford's gleaming makeover

Forget over-the-top reality TV shows and hitting up Vimeo for cool time-lapse videos. If you want to see a true extreme makeover, take a look at the difference between Ford's (F) balance sheet at the end of 2008, versus the just-ended fiscal 2013 year.

Shortly after coming on board as CEO in 2006, Alan Mulally launched the "One Ford" plan, a clearly stated, four-point corporate strategy. One of the goals of this still-current plan is for Ford to "Finance our plan and improve our balance sheet." This commitment is fascinating, as so few corporations seem to reference their balance sheets when discussing business strategy. At the time the plan was launched, Ford truly needed to face its overextended debt load and lack of resources on hand to finance sustainable growth.

Let's review the areas of notable change in Ford's resources between 2008 and the present. Unless otherwise stated, we'll focus primarily on Ford's automotive balance sheet -- the portion of the balance sheet that does not include Ford's financial services arm.

Attacking large liabilities and long-term debt

In 2007, Ford began an arduous process to reduce both its mammoth retirement liabilities and its long-term debt. It established and funded a Voluntary Employee Beneficiary Association (VEBA), the result of negotiations with its workforce, which transferred some retirement liabilities off Ford's books. Ford also issued billions of dollars of common stock between 2008 and 2013 to convert and restructure its long-term debt load. The company has also used operating cash flow to pay down debt and reduce the associated interest expense.

There's nothing wrong with keeping cash in the bank

What's Ford done with the profits it's generated since 2008? At least $9.4 billion of those profits have appeared on the automotive balance sheet as a combination of cash and marketable securities. The company now keeps just under $5 billion in cash on hand, with another $20.1 billion invested in marketable securities. This ! is a 60% increase in cash and securities from the $15.7 billion totals the company presented on its books at the end of 2008. Building up healthy cash balances again will serve Ford handsomely, as it gives the company more flexibility to pursue small acquisitions, as well as invest in product innovation.

Detail of Ford logo courtesy Dominic Alves under Creative Commons License. The Ford logo was famously collateralized under the company's huge borrowings in the mid-2000s, and was finally released from collateral liens in 2012.

Optimizing Inventory

Ford's inventory line item is one of the places where the company's progress really gets illuminated. Inventory at 12/31/2013 was recorded at $7.7 billion, nearly $1 billion less than the amount of automotive inventory shown at 12/31/2008. Sales climbed during the period, and Ford's automotive revenue is now about $10 billion more than 2008 levels (at $139.3 billion for the year just ended), so you would expect higher inventory on the balance sheet with increased revenue, correct?

The easy answer is yes, but by tying production as closely as possible to actual demand, a savvy manufacturer can avoid tying up excessive amounts of resources in raw materials and finished goods. Ford has made a practice of building to demand levels rather than churning out finished vehicles to place ad hoc with dealers. Thus, the company is turning its annual inventory about 15% faster than in 2008, and it's also managing the inputs of production more efficiently. While Ford is on track to reduce its global vehicle platforms from 15 to nine by 2016, the company actually produced 85% of global vehicle volume on just nine core platforms last year, so for all practical purposes, the automaker is already at its platform goal.

If there's one place to be skeptical of Ford's balance sheet, which is related to inventory, it's Ford's automotive payables, which were 1.7 times inventory in 2008, but have expanded to 2.3 times inventory at the end of 2013. The ris! e in paya! bles is partially explained by the fact that Ford's trade payables tend to balloon at year-end, during December plant shutdowns, when production halts, but supplier costs continue to accrue. But higher average AP balances indicate some lengthening of days payable outstanding. This is a recent practice common among Fortune 500 companies: By shifting supplier payments back by even a few days, companies can marginally improve cash flow.

Deferred tax assets are a finance team's best friend

In certain situations, utter failure can result in balance sheet strength. This occurs when a company with steep losses carries forward net operating losses and tax credits, as Ford has done from its years in the red in the early and mid 2000s. As a result, Ford now has a net tax-deferred asset of $12.7 billion on its consolidated balance sheet. Out of this number, $8.0 billion derives from tax losses and credits that the company will be able to utilize against taxable income in the coming years. While Ford will still record income tax expense on its books, the actual cash paid to Uncle Sam for taxes should be quite low for at least the next couple of years, if not further, depending on Ford's profitability.

Shareholder equity is a great way to keep score on a balance sheet's progress

Ultimately, how do you measure if a company is managing its balance sheet well? If the company is profitable, over time, you will see a clear correlation between increased assets and a reduction of liabilities on the other side of the ledger. After all, the basic equation that governs the balance sheet is not any different from when you or I present a personal financial statement to a bank, to get a car loan or mortgage. Simply expressed,

Assets - Liabilities = Equity

A well-run company that generates profit will place a priority on converting those profits to cash. With cash, it will reduce non-productive liabilities, increase capital investment, and invest a prudent amount of the remainder wisely in mar! ketable s! ecurities. At the end of each year, the balance sheet position of any company is a snapshot of that organization's fiscal health, and a healthier complexion should be reflected in the Shareholder's Equity account.

In 2008, Ford's total (consolidated) Shareholder's Equity was plunged so deeply underwater that financial analysts had to don diving gear just to find it, at negative $14.5 billion. Six short years later, equity is a positive $26.4 billion. Factor out $10.5 billion of common stock issued for debt conversions and restructuring, and you'll still find a $30.4 billion positive swing. That's an extreme makeover that veteran shareholders can surely appreciate.

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.

<SCRIPT language='JavaScript1.1'SRC="http://ad.doubleclick.net/adj/N4538.USAToday/B2304017.8;abr=!ie;sz=550x300;ord=[timestamp]?"></SCRIPT><NOSCRIPT><AHREF="http://ad.doubleclick.net/jump/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?"><IMGSRC="http://ad.doubleclick.net/ad/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?" BORDER=0 WIDTH=550 HEIGHT=300ALT="Advertisement"></A></NOSCRIPT>

Bring In Big Income With These 5 High-Yield REITs

Popular Posts: 5 Energy Stocks to Profit From Mammoth Marcellus OutputTime to Buy Dr. Copper? 3 Plays for a Red-Metal ReboundPetrobras – Is PBR Stock Finally a Buy? Recent Posts: Bring In Big Income With These 5 High-Yield REITs 2 Energy Stocks Cracking Into Britain’s Fracking Frenzy CHK Stock Keeps the Asset Sales Coming View All Posts

Despite the recent gains and rebounds in the housing market, the housing bubble completely changed the way we live.

In the wake of the housing bubble and the recession, more and more Americans are abandoning the traditional goal of owning a white-picket fence in favor of renting. Either through financial hardship or via choice, America is quickly becoming a "renter nation" when it comes to housing. According to real estate group Green Street, of the 5.5 million estimated new households that will form over the next three years, roughly 70% of them will choose to become renters.

That's a huge number — one that could provide plenty of profits for investors who bet on the right horses. In this case, we're talking about real estate investment trusts, or REITs.

Enacted in the 1960s by Congress, REITs were created to let average investors make investments in large-scale, income-producing commercial real estate. And I do mean income. REITs are required by law to spit out 90% of their taxable income back to shareholders annually. That results in some huge dividend yields.

Now, these big dividend yields aren't considered "qualified" for tax purposes — meaning they don’t get taxed as normal income. That makes REITs and their big dividend yields perfect holdings for an IRA or other tax-deferred account.

With that said, here's five of the best REIT plays for our growing “renter nation”:

AvalonBay Communities

When it comes to apartment REITs, AvalonBay Communities (AVB) is one of the largest. The firm has direct or indirect ownership in a massive 273 apartment communities, or roughly 81,500 different apartments or townhomes. The bulk of these buildings are located in markets with a high barrier to entry — Washington D.C., for example — and feature a stable and generally high-income renter's base.

However, AVB isn't done growing.

The REIT recently broke ground on another 13 new communities and has an additional 26 optioned for development rights. Aside from that organic construction, AVB partnered to real estate magnate Sam Zell to purchase Archstone from Lehman Brothers out of bankruptcy for $6.5 billion. That move gave AVB a stake in 66 additional properties.

Those new apartments will continue to help boost AVB's cash flows and its dividend yield. Already, AvalonBay saw its full-year 2013 funds from operations (FFO) rise 14% on the backs of these new units. That windfall helped the REIT raise its dividend 8.4% for the first quarter of this year.

AVB currently has a treasury-beating dividend yield of 3.2%.

Home Properties

While Home Properties (NYSE: HME) isn't as large as AvalonBay, the two REITs share a similar strategy — namely, focusing on the profitable East Coast. For HME that means owning multifamily properties in Washington D.C., Boston, Baltimore, Philadelphia and New York: places where the average home price is around $340,000 and potentially out of reach for many families.

And like its much larger rival, HME is quickly expanding in these key markets.

Since 2011, Home Properties has spent about $600 million on property acquisitions to expand its umbrella in these markets. That expansion continues today, as Home Properties has unveiled an aggressive plan to spend around $250 million more this year on additional purchases of multifamily communities.

However, the difference in the two REITs is that HME is willing to “flip” properties that don't necessarily meet its criteria for long-term ownership. That strategy helps boost cash flows and provides HME with additional funds to purchase more properties down the road.

It also results in a plenty of dividends for investors. HME currently yields 4.8%.

Investors Real Estate Trust

Most people wouldn't be shocked to find out that an average 2-bedroom apartment costs nearly $3,000 per month to rent in places like New York City or San Francisco. However, that is also the going price for a similar apartment in North Dakota.

Why? The boom in Bakken shale drilling. For various REITs it's a gold mine — and one company that’s definitely taking advantage of this trend is Investors Real Estate Trust (IRET).

IRET specifically focuses on the upper Midwest and North Dakota, putting it right in the center of Bakken shale country. In fact, its corporate office is the next county over from the epicenter of the Bakken boom.

Overall, IRET owns and manages a diversified portfolio properties including 72 apartment buildings in the region. High incomes and housing demand from the Bakken, from both rig workers and landowners, has helped IRET realize plenty of cash flows and rising rents from its stable of properties.

And while IRET has been flowing that cash back to investors since 1971 as dividends, the strong apartment demand in North Dakota should help the firm boost its dividend even higher in the future.

Currently, IRET has a dividend yield of 6.0%.

Associated Estates Realty Corporation

Some of the best bargains can be had in smaller REITs. A prime example is Ohio-based Associated Estates Realty Corporation (AEC).

The firm (which incidentally was the first publicly traded apartment REIT) owns 53 multifamily properties throughout the South, Mid-Atlantic and Midwest. The key for AEC has been the fact that it has been transitioning away from lower-income housing toward higher-valued and more "luxury" apartments. That's helped AEC see rising community income growth than many of its rival REITs — which gives AEC the ability to charge higher rents.

AEC has also begun expanding its property holdings in these key markets; given its smallish size, the firm should be able to grow its top and bottom line quite easily.

As these projects take hold, analysts expect AEC's FFO to be flat throughout this year. But it should rise about 6% during 2015. That will help AEC strengthen its 4.4% dividend yield.

iShares Residential Real Estate ETF

Given just how powerful the rental trends are becoming, investors may be better suited in a wide swath of apartment REITs. To that end, the iShares Residential Real Estate ETF (REZ) may actually be the better choice.

The exchange-traded fund (ETF) tracks 36 different REITs … including all of the ones on this list. REZ also includes exposure to the various public storage REITs like Extra Space Storage (EXR). Those firms have also been seeing huge demand as renters need additional space for all of their stuff … especially if they've downsized from previous homeownership.

REZ has had pretty good performance, managing to return more than 15% annually over the last five years. The ETF also kicks out a 3.55% dividend yield. Costs for the broad REIT fund clock in at a relatively inexpensive 0.48% — or $48 per $10,000 invested.

Overall, REZ may be the best way to capitalize on the REITs catering to our new “renter nation.”

At the time of publication, Levitt had no positions in the securities mentioned.

2 Big Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Stocks Insiders Love Right Now

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Rocket Stocks Worth Buying This Week

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Plug Power

Nearest Resistance: $12

Nearest Support: $6

Catalyst: Technical Setup

>>5 Stocks Poised for Breakouts

Shares of small-cap fuel cell company Plug Power (PLUG) continue to go berserk on high volume this week, today bouncing around 7% after triggering an SEC circuit breaker on selling in yesterday's session. PLUG has been a favorite for traders over the last few months shares are up almost 300% since the calendar flipped to January, following bullish guidance and speculation that fuel cell demand will skyrocket.

While less-experienced traders should stay away from the volatility in PLUG, a bounce off of trend line support is looking like an interesting entry opportunity for those with higher risk appetites. If you decide to jump in here, keep a tight stop in place.

Horizon Pharma

Nearest Resistance: N/A

Nearest Support: $14

Catalyst: Vidara Acquisition

>>5 Stock Charts Screaming "Buy" in March

Last up is Horizon Pharma (HZNP), a small-cap drug maker that's up 15% in this afternoon's session after news that the firm was buying Vidara Therapeutics in a reverse merger. The deal would give Horizon big tax advantages from a new Irish domicile, as well as adding Vidara's Actimmune treatment to the firm's pipeline.

There's no two ways about it: HZNP has been an outstanding name to own for the last six months and change. In that time, shares have rallied a mind-boggling 440%, and with relative strength continuing to move higher in an uptrend, this buoyant stock isn't showing any technical leaks right now. Yes, shares have moved far quite fast, but an absence of selling pressure here means that there's further to go.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>Hedge Funds Are Selling These 5 Stocks -- Should You?

>>5 Big Health Care Stocks to Trade for Gains

>>5 Hated Earnings Stocks You Should Love

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Payments, Payroll, and Profits

To the surprise of many, interest rates have backed off a bit so far this year. However, I think you will see some upward pressure on interest rates this year, especially in the second half of the year, suggests Chuck Carlson, editor of DRIP Investor.

That upward pressure could provide a nice bump for certain companies that benefit from higher rates.

Cass Information Systems (CASS) provides invoice management, audit, and payment services for companies in a variety of industries. The company disburses approximately $35 billion annually for its clients.

Part of Cass Information's net income comes from interest on the balances generated during their clients' payment-processing cycles. Thus, higher interest rates would generate greater interest income on clients' funds that Cass holds.

The stock has dipped in recent trading, but the price decline is offering an attractive entry point in these shares. I own the stock and view it as a solid play among small-cap DRIPs. (The stock's market capitalization is approximately $600 million.)

Cass has a direct-purchase plan in which any investor may buy the first share and every share of stock directly from the company. Minimum initial investment is $250.

Another stock I own that benefits from higher rates is Paychex (PAYX). The firm provides payroll processing and other human resources services primarily for small- and mid-sized companies. Paychex, too, holds clients' funds, primarily for taxpaying.

Thus, it generates float off the client funds it holds for disbursement. The stock, yielding well over 3%, has pulled back in recent trading and is a buy at current prices.

Paychex offers a direct-purchase plan whereby investors may buy the first share and every share directly from the company. Minimum initial investment is $250. The plan is especially fee-friendly. There is no enrollment fee and no fee to buy shares in the plan.

Subscribe to DRIP Investor here…

More from MoneyShow.com:

Inflation Protection for Global Investors

Three Top-Ranked Funds for Rising Rates

The Case for Strategic Income

Following Heightened Demand, Alcoa, Inc. Investing to Increase Wheel Production in Hungary

Today, Alcoa (NYSE: AA  ) announced it will be increasing and expanding its investment in a Hungary plant that produces its forged aluminum truck wheels following heightened demand across Europe for the product.

Dura-Bright EVO surface-treated truck wheel. Source: Alcoa.

Alcoa plans to invest $13 million in the plant in Székesfehérvár, Hungary, in an effort to double its production of the wheels by the end of 2015. The firm highlighted the reason behind the decision was the result of increased demand for the wheels, which require less maintenance, and are also more durable and lightweight than previous models. Alcoa rolled out is new surface-treated Dura-Bright EVO wheel in January.

"Demand for Alcoa's forged aluminum wheels continues to grow in Europe, as emissions regulations drive up the need for stronger, lighter and easier-to-maintain wheels that increase payload, reduce maintenance costs and enhance sustainability," noted Tim Myers, president of Alcoa Wheel and Transportation Products, in the company's press release. "Additional capacity at our manufacturing facility in Hungary positions us to capture this growth."

Alcoa began construction on the expansion of the product line at the beginning of this year, and it anticipates to be fully completed by the early part of next year. In addition to the $13 million investment from Alcoa, the Hungarian government will also put $4.4 million toward the project, which will create 35 new permanent jobs and 215 additional temporary ones during construction, according to the company.

"One of the most important players of the Hungarian-American economic cooperation's success story is Alcoa, bringing innovation-based, high added-value production into Hungary," added Péter Szíjjártó, Hungary's state secretary for foreign affairs and external economic relations.

Nu Skin: Asessing the Collateral Damage

The FTC’s decision to investigate Herbalife (HLF) came with collateral damage for all multi-level marketers, including Nu Skin (NUS) and Usana Health Sciences (USNA).

REUTERS

Deutsche Bank’s Bill Schmitz Jr and team explain why Nu Skin could come through OK:

With [Nu Skin] busy with ongoing internal investigation, cooperation with Chinese government and working to get 10K filed next week (which we view as highly likely), investor and public relations efforts are understandably on hold. However, we remind investors that Nu Skin has a consent decree with the FTC from the 1990s where it agreed to follow explicit rules on product efficacy and earnings opportunity claims and has closely worked with the agency over the last several years (like most direct sellers) to ensure ongoing compliance. Historically, these seemingly binary events, after reviewing past circumstances and resolutions, have proven lucrative for investors and we believe that continues to be the case in this instance. With [Nu Skin's] stock trading below 7x conservative CY15 EBITDA and still compelling growth opportunities once the dust settles, we maintain our Buy and $110 target.

Shares of Nu Skin have dropped 1.2% to $72.31, while Herbalife has gained 2.4% to $58.67 and Usana Health Sciences has ticked up 0.4% to $72.03.

Weatherproof Profits: Plays on Climate Change

Politics aside, Benjamin Shepherd looks at the long-term investment implications of global climate change. The editor of the Inflation Survival Letter also highlights two companies poised to benefit from this trend.

Steve Halpern: We're here with Benjamin Shepherd, editor of the newsletter Inflation Survival Report. How are you doing today, Ben?

Benjamin Shepherd: Good, and it's actually the Inflation Survival Letter.

Steve Halpern: Oh, I'm sorry. Forgive me.

Benjamin Shepherd: That's fine.

Steve Halpern: Before we turn to specific investment ideas, would you tell our listeners about Inflation Survival Letter and your overall strategy and the longer-term goals behind the publication?

Benjamin Shepherd: Sure, we actually launched this past November. It's our belief that we're seeing rising inflationary pressures in the US economy as it returns to growth and continues to return to health following the massive recession of a few years back.

We've seen the price of food double over the past ten years. We're seeing wages not keeping up with the rising costs so, really, our goal is to help people hedge their investment portfolios to keep up and exceed these rising costs.

Basically, we do that by focusing on companies and industries that have some built-in resistance to inflation, because they have the power to pass those cost increases through to consumers or end users.

We also really pay a lot of attention to valuation. It's very important that you not overpay for assets, especially income-generating assets, which we use quite a bit to add an extra cushion against inflation.

Steve Halpern: Now, you recently explored a fascinating subject in your newsletter; climate change. And you looked at the potential investment implications of what is a very long-term trend. Could you expand on that for our listeners?

Benjamin Shepherd: Sure, climate change is actually something that's really overlooked, particularly in the context of inflation.

When people think about inflation, they tend to think about the monetary policy side of things, governments printing money, but the other leading cause of inflation is, primarily, supply shocks, and climate change has the potential to be the mother of all supply shocks.

We've already seen that as far as green prices go, just over the past few years with the massive droughts that we experienced in the Midwest, droughts and fires in Russia and Ukraine, fires and massive flooding in Australia, and all of those forces have combined to drive a more than 30% average increase in the cost of grains, just over the past few years and, ultimately, that causes a whole host of price increases.

Obviously, there are the foodstuffs themselves, things like cereal. The price of meat goes up with the higher cost of grain.

Even the cost of gasoline goes up because of the ethanol mandates, so climate change really has the potential to have a huge impact on investors' portfolios and it's really a stealth impact because people generally just don't think about it.

Steve Halpern: Now, one investment idea in the sector that you like is the area of water management. Could you tell us about Lindsay Corp. (LNN)?

Benjamin Shepherd: Sure, Lindsay Corp. is a large conglomerate. It operates primarily in two main markets. The first is highway infrastructure.

Page 1 | Page 2 | Next Page The expert featured in this column, Benjamin Shepherd, may or may not own positions in any investment vehicle mentioned here. The views and opinions expressed are his or her own.

U.S. stocks fall most in 5 weeks; Treasurys rally

NEW YORK (MarketWatch) — U.S. stocks ended Thursday with the worst declines in more than five weeks, with the S&P 500 closing below a key technical level and turning negative year-to-date. Investors flocked to safety, bidding up Treasurys.

Strategists pointed to stretched fundamentals that made the market ready for an overdue correction. Technology and industrial sector stocks led the losses on the benchmark while all 30 components of the Dow industrials finished the day lower.

The S&P 500 (SPX)  closed 21.86 points, or 1.2%, lower at 1,846.34 and erased modest gains for the year. The Dow Jones Industrial Average (DJIA)  dropped 231.19 points, or 1.4%, to 16,108.89, falling for the fourth consecutive day.

SPX

The Nasdaq Composite (COMP)  shed 62.91 points, or 1.5%, at 4,260.42.

As selling of stocks intensified, traders sought safe havens. Gold (GCJ4) nudged up, while Treasurys rallied. The yield on the 10-year note (10_YEAR)  dropped 8 basis points to 2.65% as investors bought up government debt. The implied volatility on the S&P 500 as measured by the CBOE Vix index, dubbed "Wall Street fear gauge" jumped 12.1% to the highest level since early February.

Read the recap of our live stock market coverage.

Uri Landesman, president at Platinum Partners, says fund managers had been expecting a correction even as markets have been resilient up to this point.

"At these levels markets cannot tolerate any bad news. Fundamentals have been so stretched that we think we will have a significant correction by the end of this month," Landesman said.

"We are watching at what level the S&P 500 closes today, if it goes below 1,850 it might turn into the beginning of the correction," he added.

Earlier, a pair of better-than-expected economic reports, which showed a surprise drop in the number of people claiming unemployment benefits and an uptick in retail sales in February supported stocks. Then gains quickly turned into losses.

In the absence of major economic news, investors will focus on the Fed's policy-setting meeting, scheduled for March 18-19, at which the central bank is expected to keep up the pace of monetary stimulus reduction.

Investors are keeping an eye on a vote in Crimea this weekend when citizens will decide whether to stay with Ukraine or join Russia. Read also: Stock investors look past jobs to Yellen, Ukraine

Overseas markets

Asian markets were mixed, with the Nikkei 225 index (JP:NIK)  ending slightly lower, and the Hang Seng Index (HK:HSI)  falling 0.7% after data showed China's industrial production slowed in the January-February period, while retail sales in January eased.

The Shanghai Composite (CN:SHCOMP)  rose 1%. Some attributed this to comments by Chinese Premier Li Keqiang, who said he was confident the Chinese economy would meet its 7.5% growth goal for this year.

Rieder: Obama avoids press, goes between ferns

So what's the deal with President Obama's appearance on Zack Galifianakis faux talk show Between Two Ferns?

Was it a brilliant ploy to induce young people to sign up for health insurance under the Affordable Care Act, which Obama plugged heavily during the unusual mano a mano? The video, which went viral, quickly became the leading source of traffic for the ACA website, HealthCare.gov.

Or did the appearance on the comedy website funnyordie.com diminish Obama and demean the office of the presidency, as the president's legion of nonfans on the right are predictably complaining?

Abraham Lincoln would never have done such a thing, Fox's Bill O'Reilly huffed. Washington Post columnist Kathleen Parker worried, "How can we hope to be taken seriously when the world sees our president in such silly circumstances?" Rep. Randy Weber, R-Tex., took to Twitter to say that rather than wasting time with such nonsense, Obama should be busy getting to the bottom of what happened at Benghazi.

I'd say it's a little late to be getting worked up about presidents making pop culture drop-ins. Once Bill Clinton played Heartbreak Hotel on the saxophone on The Arsenio Hall Show, that ship had pretty much sailed. And that was 22 years ago. Sure, doing deadpan comedy shtick with the likes of Galifianakis takes us somewhat past sitting down with Letterman or Leno, but that's a matter of degree.

Besides, these people are presidents, not monarchs. They are human beings, not higher beings. And in this age where we learn pretty much everything about everyone, whether we'd like to or not, it's impossible to maintain any illusion to the contrary,

REM RIEDER: Obama should widen access to media

The Ferns appearance was a strategic one. Team Obama needs to get more healthy young people to sign up for health care to make the numbers work. Ferns has a decidedly young demographic. So better to be asked what it's like to be the last black president by a rumpled guy from the Hangover movies than sit dow! n with Brian Williams.

The episode had three millions viewers in the first few hours after it went live Tuesday morning, leading to all those visitors to the healthcare website.

I'd argue that such appearances are good for Obama for another reason. Just as they call Alabama the Crimson Tide, they call Ronald Reagan the Great Communicator. I'd call Obama the erratic communicator.

When he's at the top of his game, the president is truly formidable. His soaring rhetoric had so much to do with his winning the presidency in the first place. And while he's quite powerful in those mega-event set pieces, he also can be effective in casual settings. While the Ferns appearance was no doubt heavily scripted, the president's delivery was superb — and very, very funny.

Let's face it, Obama's cool factor was one of the keys to his rapid ascent.

But there's another Obama, one that was painfully on view during the first presidential debate in 2012. There's the professorial, smartest-guy-in-the room Obama, the clipped, grudging Obama, the I'd-rather-be-anywhere-in-the-world-but-here Obama. Showing his appealing side, showing the he can be loose, is good politics for him.

But there is one aspect of this episode that troubles me. It would be fine if Obama mixed his appearances with Charles Barkley and Jon Stewart with interviews with traditional hard news reporters. But that's not something Obama likes to do.

One of the byproducts of the age of Twitter is a world in which politicians have less and less need for the traditional media. They can get their message out without the middleman, connecting directly with the voters via social media and mixing in appearances at soft venues a la Between Two Ferns. And the president is taking full advantage of that.

Obama hasn't granted an interview to The Washington Post since 2009. His last interview with The New York Times was last July. He also has cut back on informal give and take sessions with the White House press corps.

Why doe! s that matter? Because White House correspondents and other beat reporters at legacy news outlets are much more versed in the subjects at hand, much better equipped to challenge the president on critical issues. And that's vital in a democracy.

I'm a huge Barkley fan, but I'm not sure Sir Charles is the guy I want questioning the president about National Security Agency surveillance or what to do about Ukraine.

Conservatives have railed for years that the mainstream media are in love with Obama. But if that's the case - and it's a debatable proposition, particularly these days - one thing is clear: President Obama doesn't love them back.

Advanced Micro Devices (AMD): Finding Some Love or at Least Some Appreciation? NVDA & INTC

Move over Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA), small cap and often unloved chip stock Advanced Micro Devices, Inc (NYSE: AMD) has been seeing more action and perhaps more appreciation over the past few trading secessions. I should note that we previously had an open position in Advanced Micro Devices in our SmallCap Network Elite Opportunity (SCN EO) portfolio from roughly last summer up until late January when we locked in a small loss. Since it's a trading portfolio, we got out because shares sank once more after its latest earnings report - something they had already done after three previous earnings reports. But if you are an investor or trader with a longer term horizon one way or the other, you might want to consider the following news about AMD:

CEO Interview on CNBC. CEO Rory Read appeared on CNBC's Fast Money last Thursday to say that the company makes about 30% of its sales from selling chips into devices other than PCs – up from about 4% when he joined in 2011. He added:

"We used to be in the PC consumer segment, where every six months, you're running, you're running… On this one, what we're trying to do is create these long-term strategic relations, like we did with Xbox One and Microsoft, like we did with Sony. Those are the plays that are going to create the long-term transformation to AMD."

He noted that they are going into the commercial PC space where the lead times is much longer than the six months in consumer market.

Friday's Trading Action. On Friday, Advanced Micro Devices jumped more than 6% to briefly hit the $4 level on no apparent news beyond the Thursday CNBC interview. According to Schaeffer's Daily Option Blog, AMD calls were the options of choice as they were trading at seven times the average intraday pace and outpaced puts by a 10-to-1 margin while the most active strike was the July 4.50 call as 8,958 contracts traded.

Monday's Option Trading Action. Schaeffer's Daily Option Blog also noted that on Monday, put volume had soared to more than five times the typical intraday pace during the afternoon with the July 4 strike leading the pack as 12,000 contracts traded at an ask price of $0.51 apiece. The breakeven for these in-the-money puts is $3.49.

AMD as the Most Underappreciated 2014 Turnaround Story. On Monday, it was reported that Wedbush analyst Betsy Van Hees had reiterated an Outperform rating on AMD and went so far as to call it the "most underappreciated 2014 turnaround story." Specifically, she commented:

"We are incrementally more positive on AMD and believe it is the most under appreciated turnaround story in our universe following our well received investor meetings last week with SVP and CTO Mark Papermaster and Corporate VP of IR Ruth Cotter."

She also added:

"The PC market is changing and so is AMD who we believe during 2013 righted the ship through restructuring, impressive end market diversification, and flawless product executions positioning the "turnaround AMD" for strong Y/Y earnings and revenue growth in 2014. We reiterate our OUTPERFORM and recommend investors with a higher risk/reward tolerance continue to buy the stock. Our 12-month PT of $5 is based upon about 10x our 2015 pro forma EPS estimate of $0.37 plus $1.43 in cash per share."

Share Performance. On Monday, Advanced Micro Devices fell 3.54% to $3.81 plus the stock is down 1% since the start of the year, up 48.8% over the past year and up 78% over the past year. Here is a look at its long term performance verses that of Intel Corporation and NVIDIA Corporation:

Finally, here is a look at the latest technical charts for all three chip stocks:

Given all the above news, we can probably expect a very active trading week and maybe AMD will finally find some love and appreciation by investors.

SmallCap Network Elite Opportunity (SCN EO) has an open position in AMD. To find out what other open positions SCN EO currently has, and to learn why so many traders and investors are relying on this premium subscription service, click here to find out more.

Broadridge Financial Acquires Advisor Publishing Firm Emerald for $60 Million

Broadridge Financial Solutions (BR) announced Wednesday that it had agreed to purchase Emerald Connect LLC for $60 million in cash from StoneRiver Group (the former Fiserv Insurance Solutions company), which is owned by Fiserv Inc. and the private equity firm Stone Point Capital.

Emerald, founded in 1986 as a seminar marketing firm by Craig Faulkner, who now runs Faulkner Publishing, has built its seminar business over the years into providing print newsletter services and additional marketing tools for advisors, including websites, seminars, email and direct mail services and social media.

Emerald will be integrated into Broadridge’s Forefield operations, which creates compliance-approved content similar to Emerald.

In a statement, Broadridge’s president for Investor Communication Solutions (ICS), Robert Schifellite, said the Emerald-Forefield offerings will take advantage of the growth in independent advisors to  “reach nearly 100,000 advisors” and will allow Broadridge to “deliver additional practice management and productivity tools to these financial professionals.”

In December 2010, Broadridge acquired Forefield, a Worcester, Mass.-based firm founded by Ronald Newton and led by longtime CEO Brent Delehey and President Bill Davenport. Broadridge paid $19.6 million for Forefield. Davenport remains the general manager of Forefield, and James Walsh continues to run its editorial operations.

At the time of its 2010 acquisition by Broadridge, we wrote that “Forefield’s expertise is typified by James Walsh, JD, its editor-in-chief," who has written about topics like the alternative minimum tax (AMT) for Investment Advisor.

Broadridge itself, based in Lake Success, N.Y., provides a range of outsourcing services to broker-dealers, banks, mutual funds and corporate issuers worldwide, including securities processing, proxy voting and data aggregation.

Andrew Besheer, president for Customer Communications, a unit within Broadridge’s ICS division, will run the consolidated businesses. Emerald has offices in San Diego and Duluth, Minn., and employs more than 120 people. 

On Feb. 6, Broadridge reported a 75% jump in net earnings to $28 million for the second quarter of its 2014 fiscal year ended Dec. 31, 2013, on a 6% increase in total revenues to $521 million (compared to the same period in the prior year). diluted earnings per share for the quarter increased 69% to $0.22 per share from $0.13 per share for 2013’s Q2. Revenues for its ICS division, where Emerald (and Forefield) will be placed, rose 6% to $346 million in the quarter. 

Commenting on the results at the time, Richard Daly, Broadridge’s president and CEO, said, “Our first six months’ financial performance has also enabled us to accelerate strategic investments to be made this year into our solutions related to the  three key macro trends that Broadridge is uniquely positioned to address: the digitalization of investor communications; cost/capability mutualization; and intelligence created from our unique data.” 

Top 5 Semiconductor Stocks To Watch For 2015

Popular Posts: 9 Biotechnology Stocks to Buy Now6 Oil and Gas Stocks to Buy Now16 Oil and Gas Stocks to Sell Now Recent Posts: 10 Best “Strong Buy” Stocks ��STZ MGAM CSGP and more 8 Biotechnology Stocks to Sell Now 7 Semiconductor Stocks to Sell Now View All Posts

Five biotechnology stocks are moving up in their overall rating this week, according to the Portfolio Grader database. Every one of these is graded an “A” (“strong buy”) or “B” overall (“buy”).

Top 5 Semiconductor Stocks To Watch For 2015: Ambarella Inc (AMBA)

Ambarella, Inc., incorporated on January 15, 2004, is a developer of semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company combine its processor design capabilities with its video and image processing, algorithms and software to provide a technology platform. It sells solutions into the camera and infrastructure markets, with approximately 27 million system-on-a-chips (SoCs) shipped since our inception. In the camera market, its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, Internet Protocol (IP), security cameras, digital still cameras (DSCs), telepresence cameras, camcorders and pocket video cameras. In the infrastructure market, its solutions manage IP video traffic, broadcast encoding and IP video delivery applications. In 2012, the Company released its Wireless Camera Developers Kit. In 2012, it also launched S2 SoC, which enables Ultra High-Definition IP security cameras.

The Company sells its solutions to original design manufacturers (ODMs), and original equipment manufacturers (OEMs), globally. In the camera market, its video processing solutions are designed into products from OEMs, including Robert Bosch GmbH and affiliated entities, Samsung Electronics Co., Ltd. and Woodman Labs, Inc., doing business as (d/b/a) GoPro, or GoPro, who source its solutions from ODMs, including Ability Enterprise Co., Ltd., Asia Optical Co. Inc., Chicony Electronics Co., Ltd., DXG Technology Corp., Hon Hai Precision Industry Co., Ltd. and Sky Light Digital Ltd. In the infrastructure market, its solutions are designed into products from OEMs, including Harmonic Inc., Motorola Mobility, Inc. (owned by Google, Inc.) and Telefonaktiebolaget LM Ericsson, who source its solutions from ODMs, such as Plexus Corp.

AmbaClear

The Company�� image signal processing architecture, known as AmbaClear, incorporates advanced algorithms to convert raw senso! r data to high-resolution still and high-definition video images concurrently. Image processing algorithms include sensor, lens and color correction, demosaicing, which is a process used to reconstruct a full color image from incomplete color samples, noise filtering, detail enhancement and image format conversion.

AmbaCast

The Company�� HD video processing architecture, known as AmbaCast, incorporates advanced algorithms for motion estimation, motion-compensated temporal filtering, mode decision and rate control. It supports all three compression profilesbaseline, main and highas specified in the H.264 standard. Its solutions for the broadcast infrastructure market allow OEMs to offer both the H.264 and MPEG-2 encoding formats.

Design Methodology

The Company test and verify its algorithms on its architectural model prior to implementing algorithms in hardware. Its advanced verification methodology validates its approach through simultaneous modeling of architecture, algorithms and the hardware itself.

SoC Solution

The Company�� SoC designs integrate HD video processing, image processing, applications processing and system functions onto a single chip, delivering video and image quality with features, including advanced wireless connectivity. In addition, its SoCs integrate mixed signal (analog/digital) functionality and high speed interfaces required for interfacing to advanced high-speed CMOS sensors and industry standard interfaces, such as USB 2.0 and HDMI 1.4. Its A7L SoC, which it introduced in September 2011, is fabricated in edge 32 nanometer (nm) process technology and integrates AmbaClear and AmbaCast technology.

Software Development Kit for Connectivity

The Company�� video streaming technology enables the camera�� image to be previewed on a smartphone. To enable this functionality, end customers deploy its Wireless Camera Developer�� Kit, or the Kit, which enables the design of ca! meras tha! t combine still photography and Full HD video with wireless video streaming to smartphones. The Kit is available for its A7L SoC product family, providing full 1080p60 HD video with photography and low power consumption.

The Company competes with CSR Plc, Fujitsu Limited, HiSilicon Technologies Co., Ltd., Texas Instruments Incorporated, Canon Inc., Panasonic Corporation, Sony Corporation, Novatek Microelectronics Corp., Sunplus Technology Co. Ltd., Intel Corporation, Magnum Semiconductor, Inc., Texas Instruments Incorporated, Broadcom Corporation, NVIDIA Corporation, Qualcomm Incorporated and Samsung.

Advisors' Opinion:

• [By Rich Smith]

  Ambarella just crashed
  Following a Street.com report detailing insider selling at Ambarella (NASDAQ: AMBA  ) earlier this week, and a downgrade of the stock to hold by Needham & Co. earlier this morning, shares of the high-def "system-on-a-chip" semiconductor maker are plunging, down nearly 8% at last report. Should investors be worried?

Top 5 Semiconductor Stocks To Watch For 2015: Celestica Inc (CLS)

Celestica Inc. (Celestica), incorporated on September 27, 1996, is a provider of supply chain solutions globally to original equipment manufacturers (OEMs) and service providers in the communications, consumer, computing and diversified end markets. The Company has operating network in Americas, Asia and Europe. The products and services it provides serve a range of end products, including smartphones; servers; networking, wireless and telecommunications equipment; storage devices; aerospace and defense electronics, such as in-flight entertainment and guidance systems; healthcare products; audiovisual equipment; printer supplies; peripherals; semiconductor capital equipment, and a range of industrial and green technology electronic equipment, including solar panels and inverters. In June 2011, Celestica acquired the semiconductor equipment contract manufacturing operations of Brooks Automation, Inc. In September 2012, the Company acquired D&H Manufacturing Company. D&H is a manufacturer of precision machined components and assemblies, primarily for the semiconductor capital equipment market.

Celestica offers a range of services, including design, manufacturing, engineering, order fulfillment, logistics and after-market services. The Company uses enterprise resource planning and supply chain management systems to optimize materials management from suppliers through to its customers.

Its global design services and solutions architects are focused on opportunities that span the entire product lifecycle. It also leverages its CoreSim Technology to minimize design revisions. It has developed its Green Services to help its customers comply with environmental legislation, such as those relating to the removal of hazardous substances and waste management/recycling. Its services help the customers design, prototype, introduce, manufacture, test, ship, takeback, repair, refurbish, reuse, recycle and properly dispose of end-of-life (EOL) products. Prototyping is a critical early-stage p! rocess in the development of new products. It uses technologies in the assembly and testing of the products. Its failure analysis capabilities concentrate on identifying the root cause of product failures and determining corrective actions. It has a management system that focuses on continual process improvement.

The Company competes with Benchmark Electronics, Inc., Flextronics International Ltd., Hon Hai Precision Industry Co., Ltd., Jabil Circuit, Inc., Plexus Corp. and Sanmina-SCI Corporation.

Advisors' Opinion:

• [By Seth Jayson]

  Celestica (NYSE: CLS  ) reported earnings on April 23. Here are the numbers you need to know.

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

Best Value Stocks To Watch For 2015: Camtek Ltd (CAMT)

Camtek Ltd. (Camtek), incorporated in 1987, designs, develops, manufactures and markets automated solutions dedicated for enhancing production processes and yield for the semiconductor manufacturing and packaging and the printed circuit board (PCB) and integrated circuit (IC) substrate industries. Camtek also designs, develops, manufactures and markets automated optical inspection (AOI), systems and related products. The Company�� AOI systems are used to enhance both production processes and yields for manufacturers in the semiconductor manufacturing and packaging industry and PCB and IC Substrate industry. Through the acquisition of Printar's assets, it also engaged in developing, manufacturing, sale and marketing of direct digital material deposition systems and inks for the PCB industry, with two major fields of activity: Solder Mask and Legend. In addition, through the acquisition of Sela, it is also engaged in the development, manufacturing and marketing of automated scanning electron microscope (SEM) and transmission electron microscope (TEM) sample preparation equipment, primarily for the semiconductor industry.

As of December 31, 2011, the Company had sold more than 2,500 AOI systems in 34 countries worldwide. The Company's PCB customer base includes the majority of the 100 PCB manufacturers worldwide. As of December 31, 2011, it had sold over 300 Falcon systems to more than 25 semiconductor manufacturers, among them outsourced semiconductor assembly and test (OSAT), integrated device manufacturers (IDM) and wafer level packaging subcontractors, including eight out of the top 10 semiconductors companies.

Camtek�� AOI systems consist of an electro-optical assembly unit, either movable or fixed, which consists of a video camera, precision optics and illumination sources. The electro-optical unit captures the image of the inspected product; a precise, either movable or fixed table, that holds the inspected product, and an electronic hardware unit, which operates the! entire system and includes embedded components that process and analyze the captured image by using its algorithms. Its systems can also compile and communicate statistical reports of inspection findings through the customer�� factory information system. The Company offers a range of systems for automated optical inspection of semiconductor wafers, IC substrates and PCBs. These systems are used to enhance production yields and assist in controlling manufacturing processes at wafer fabrication, test and assembly houses, and PCB plants worldwide.

The Company�� Falcon systems are designed for the back end market of the semiconductor industry. The Falcon�� advanced algorithms and inspection capabilities enable its dedicated models to detect defects in the die, which, if left undetected, may cause failure. The Condor is designed to meet the current and future inspection needs of the semiconductor industry. The Condor, through algorithms and advanced hardware configuration, is designed to enhance two dimensional (2D) and three dimensional (3D) detection abilities and increased throughput. The Condor family includes models for: 3D and 2D metrology and inspection of bumped-wafer prepared for packaging in the flip-chip technology; 2D metrology and inspection of finished wafers at the end of their manufacturing process and in test houses; Post-dicing inspection of frame-mounted wafers at assembly and packaging facilities, where it adds the value of detecting dicing-related damage, and inspection and metrology of micro-electro mechanical systems (MEMS) and other special applications.

Condor 5LED is an AOI system designed to provide solutions to a range of requirements that are to light emitting diode (LED) semiconductor manufacturers. The LED market�� special inspection requirements are characterized by 3-6 inch wafers, each of which may contain between 100 to over 200 thousand LED devices per wafer. Typically, the wafer is made of a translucent compound semiconductor, such as g! allium ar! senide, gallium phosphide and/or indium phosphide. The Gannet system is designed for the front end market of the semiconductor industry.

The Company�� AOI products for this industry consist of five product lines: the Phoenix, Dragon and Orion for the inspection of inner and outer layers of PCB panels and ultra-fine-line IC substrate; large area masks (LAM) dedicated for inspection of artwork; and the Pegasus for final inspection (AFI) of IC substrates and high density interconnect (HDI) panels. The Phoenix product family, introduced in November 2011, is designed to support a range of the demanding PCB and IC substrate applications, while keeping in pace with the dynamic technology changes in the industry. The Phoenix product family is enhanced with Spark - Camtek's and detection engine providing high detection capabilities, while minimizing false calls.

Dragon systems are high-throughput, automation-ready systems for inspection of all PCB types in a mass production environment. Dragon models are optimized for specific PCB technology ranges - from mainstream circuits of typically 100 (microns) conductor line width, up to high density substrates having 12 (microns) wide conductive lines. All Dragon models are designed to interface with automated material handling mechanisms provided by the Company or other automation suppliers. Orion systems are stand-alone AOI systems for high volume inspection of all PCB types designed to operate in inspectify mode of operation. Inspectify is a mode of operation enabling the operator to perform verification immediately after inspection on the same system, thus saving time and eliminating handling-related defects.

LAM is specially designed for main-stream LAM inspection. It offers unparalleled detection ability on LAM with down to 25 (microns) line/space width technology. The LAM incorporates advanced technology innovations to ensure the level of detection that these masks require at this critical production stage. Camtek offers! various ! stand-alone verification systems that enable verification of panels after inspection. The Pegasus line includes systems for automated inspection of finished IC substrates that are subsequently used in packaging of ball grid array (BGA) and Chip Scale Package (CSP) devices. The Pegasus inspects both sides of the substrate, detecting process and mechanical defects, in particular in the gold-plated areas, where the substrate will interconnect with the silicon die or the PCB, and in the solder-mask areas. Pegasus models handle substrates in strip format in magazines.

GreenJet is a SM digital printing system aimed to replace the conventional SM application lines for prototypes and high mix low volume production. The GreenJet system offers manufacturers flexible and digital SM printing technology solution. The LGP system incorporates PCB digital legend printing technologies with specially developed heat curable ink, resulting in output and system performance. Camtek has developed the inks for both LGP and GreenJet, which involves different chemicals mixed together in order to reach the required ink characterization.

The Company competes with Rudolph Technologies Inc., KLA-Tencor Corporation, Topcon Corporation, Toray Industries, Inc., Hitachi Ltd., Nidec Tosok Corporation., FEI Company, SII Nanotechnology Japan, Carl Zeiss, Inc., Orbotech Ltd., Dainippon Screen Manufacturing Company, Lloyd-Doyle Limited, Gigavis Co. Ltd., ATI Electronics Pty Ltd., Shirai Electronics Industrial Co. Ltd., First EIE SA and MicroCraft K.K.

Advisors' Opinion:

• [By Paul Ausick]

  Shares of tech industry testing and inspection systems maker Camtek Ltd. (NASDAQ: CAMT) closed at $1.89 on November 7th, the day the company announced third-quarter earnings. It closed at $2.65 last Friday and skyrocketed to a high of $6.43 on Tuesday before dropping back to around $4.00 in Wednesday trading.

• [By James E. Brumley]

  Investors who've made a point of keeping tabs on the 3D printing craze this year will know that a pair of small caps in this space - Camtek LTD (NASDAQ:CAMT) and Voxeljet AG (NYSE:VJET) - have dominated the headlines in just the past few weeks. For CAMT, the big news was the recent announcement that it would be the first 3D printer maker to develop a product that could print circuit boards. As for VJET, news that it was going to greatly expand its on-demand-printing capacity (for customers that need smaller occasional jobs but don't want to buy a printer of their own) lit the stock up quite nicely.

• [By Paul Ausick]

  Then there�� Camtek Ltd. (NASDAQ: CAMT) with a far more modest forward multiple of 17.6 as of today. But Camtek doesn’t have a 3D printer for sale yet, it only referred to a 3D printer during its November earnings conference call, saying that it was still too early for the company to estimate the impact of a planned 2014 introduction for its 3D printing device that will produce printed circuit boards (PCBs).

• [By James E. Brumley]

  It took about three nanoseconds for the market to fall in love with Camtek LTD (NASDAQ:CAMT) a couple of days ago after it announced it would soon be introducing a 3D printer that could print circuit boards; the mere mention of the term "3d printers" is enough to incite bullish hysteria. And, it only took another three nanoseconds for the market to begin comparing CAMT to VJET... the ticker symbol for the equally-obscure (until recently anyway) 3D printer company called Voxeljet AG (NYSE:VJET). Indeed, Camtek LTD was posed as "the next Voxeljet AG", which is nothing less than amazing because nobody is all that clear yet on what the real Voxeljet is. But, just for the record, enthusiasts and shareholders better hope CAMT isn't following in the footsteps of VJET, as the rug got pulled out from underneath Voxeljet AG a few days ago, shocking anyone and everyone who drank the Kool-Aid.

Top 5 Semiconductor Stocks To Watch For 2015: GigOptix Inc (GIG)

GigOptix, Inc. (GigOptix), incorporated on March 2008, is a supplier of semiconductor and electro-optical component products that enables high-speed end to end data streaming over optical fiber and wireless telecommunications and data-communications networks globally. The Company's products convert signals between electrical and optical formats for transmitting and receiving data over fiber optic networks and between electrical and high speed radio frequencies to enable the transmission and receipt of data over wireless networks. The Company is creating both optical telecommunications and data-communications applications for fast growing markets in 10 giga bytes per second (Gbps), 40Gbps and 100Gbps drivers, receiver integrated circuits (IC), electro-optic modulator components and multi-chip-modules (MCM), as well as E-band wireless data-communications applications for high speed mobile backhaul and other high capacity wireless data transport applications. During the year ended December 31, 2011, the Company shipped over 150 products to over 200 customers.

The Company offers a portfolio of 10Gbps and 40Gbps electro-optical products and is developing market for 100Gbps products. The Company provides bundled solutions that consist of a few of its products, such as modulator and driver. The Company also offers a comprehensive portfolio of Monolithic Microwave Integrated Circuit (MMIC) and application-specific integrated circuit (ASIC) products to support E-band wireless communication and defense markets. The Company has also developed 10Gbps vertical cavity surface-emitting laser (VCSEL) drivers and receivers for aerospace as well as outdoor, non-temperature controlled environments that enables higher capacity in its customers' next generation flight and data center systems.

The Company has a portfolio of products for telecommunications , data-communications, defenses and industrial applications designed for optical speeds from 3Gbps to over 100Gbps and for wireless frequencies! from zero giga hertz (GHz) to 86GHz. The Company's products support a range of data rates, protocols, transmission distances and industry standards.

The Company's portfolio consists of the product ranges, such as laser and modulator drivers for 10Gbps, 40Gbps and 100Gbps applications; receiver amplifiers or Trans-impedance Amplifiers (TIAs) for 10Gbps, 40Gbps and 100Gbps applications; VCSEL driver and receiver chipsets for 14 and 12 channel parallel optics applications from 3Gbps to 10Gbps; Electro-optic modulators based on the Company's TFPS technology suitable for various 40Gbps and 100Gbps modulation schemes, such as differential phase shift keying (DPSK), differential quadrature phase shift keying (DQPSK), RZ-DQPSK and DP-QPSK; wideband monolithic microwave integrated circuit (MMIC) amplifiers with flat gain response; high frequency MMIC Power Amplifiers with high gain and output power; high frequency passive attenuators and filters in small form factors, and standard cell, and structured ASIC and hybrid ASIC designs and manufacturing service for multiple markets offering information technology acquisition review (ITAR) compliance for defense applications. The Company designs and market products that amplifies electrical signals during both the transmission (amplifiers and optical drivers) and reception (TIAs) of optical signals as well as modulate optical signals in the transmission of data.

The Company's optical drivers amplify the input digital data stream that is used to modulate laser light either by direct modulation of the laser or by use of an external modulator that acts as a precise shutter to switch on and off light to create the optical data stream. The Company supplies an optimized component for each type of laser, modulator and photo-diode depending upon the speed, reach and required cost. The Company's microwave and millimeter wave amplifiers amplify small signal radio signals into more signals that can be transmitted over long distances to establish high t! hroughput! data connections or enable radar based applications. The Company's ASIC solutions are used in a number of applications such as defense and test and measurement applications to enable the high speed processing of complex signals.

The Company's product portfolio is designed to cover the range of solutions needed in these different modules. The Company's product portfolio consists of five product lines: GX Series, which includes serial drivers and TIA ICs devices for telecom and data-com markets; HX Series, which includes multi-channel driver and TIA ICs for short reach data-com and optical interconnect applications; LX Series, which includes TFPS modulators for high speed telecom and defense applications; EX Series, which includes amplifiers, filters and attenuators for microwave applications in defense and instrumentation, and CX Series, which includes family of ASIC solutions for custom integrated circuit design.

GX Series

The GigOptix GX Series of products services both the telecom and data-com markets with a broad portfolio of drivers and transimpedence amplifiers that address 10Gbps, 40Gbps and 100Gbps speeds over distances that range from 100 meters to 10,000 kilometers. The GX Series devices are used in FiberChannel, Ethernet, synchronous optical networking (SONET)/ synchronous digital hierarchy (SDH) components and those based upon the optical internetworking forum (OIF) standards.

HX Series

The GigOptix HX Series of products service the high performance computing (HPC), data-com and consumer markets with a portfolio of parallel VCSEL drivers and TIAs that address 3Gbps, 5Gbps,10Gbps, 14Gbps, 16Gbps and 25Gbps channel speeds over 100-300 meters distances in four and 12 channel configurations. The HX Series devices are used in HPC formats, Infiniband, Ethernet and optical high definition multimedia interface (HDMI) components.

LX Series

The GigOptix LX Series of products service the 40Gbps and above telecom! market f! or Mach-Zehnder modulators. The LX Series devices are based on the Company's TFPS EO material technology.

EX Series

The GigOptix EX Series of products leverages the high performance products acquired in the Endwave acquisition. In addition, it also includes the die and design techniques developed for the GX Series telecom and data-com drivers for related defense and instrumentation applications.

CX Series

The GigOptix CX Series of products offers a portfolio of distinct paths to digital and analog mixed signal ASICs with the capability of supporting designs of up to 10M gates in technologies ranging from 0.6 through 65nm. The CX Series uses the Company's technology in Structured and Hybrid ASICs to enable a generic ASIC solution that can be customized for a customer using only a few metal mask layers. The CX Series also offers ASIC services, including Analog and Mixed Signal IP into designs and taking customers designs from RTL or gate-level net list definitions to volume production with third party foundries.

The Company competes with TriQuint, Rohm, InPhi, Centellax, Semtech, Vitesse, M/A-Com, Avago, Emcore, Tyco Electronics, IPtronics. Avago, Emcore, Tyco Electronics, JDSU, Oclaro, Sumitomo, Fujitsu, Emcore, Oclaro, Hittite, Sumitomo, Hittite, RFMD, Northrop Grumman, On -Semiconductor, eSilicon, Open Silicon, Faraday, Toshiba and eASIC.

Advisors' Opinion:

• [By Bryan Murphy]

  It's admittedly overbought and due for a slight dip thanks to today's surge. But when you take a step back and look at GigOptix Inc. (NYSEMKT:GIG), there's actually a lot to be excited about if you've been mulling a trading in GIG. The trick will be getting the timing right.

Top 5 Semiconductor Stocks To Watch For 2015: Xilinx Inc (XLNX)

Xilinx, Inc. (Xilinx), incorporated on February 5, 1984, designs, develops and markets programmable platforms. These programmable platforms have a number of components, including integrated circuits (ICs) in the form of programmable logic devices (PLDs), including Extensible Processing Platforms (EPPs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx and various third-party verification and IP cores. In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support. The Company�� PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform logic functions, and EPPs. Xilinx�� products are offered to electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive and data processing. The Company sells its products globally through independent domestic and foreign distributors and through direct sales to original equipment manufacturers (OEMs) by a network of independent sales representative firms and by a direct sales management organization. In January 2011, the Company acquired AutoESL Design Technologies, Inc. In August 2012, the Company acquired embedded Linux solutions provider PetaLogix.

Product Families

The 7 series devices that comprise the Company�� 28-nanometer (nm) product families are fabricated on a high-K metal gate 28-nm process technology. These devices are based on an architecture, which enables design and IP portability and re-use across all families, as well as provides designers the ability to achieve the appropriate combination of I/O support, performance, feature quantities, packaging and power consumption to address a range of applications. The 7 series devices consist of! three families: Virtex-7 FPGA, Kintex-7 FPGAs and Artix-7 FPGAs. The Zynq-7000 family is the family of Xilinx EPPs. The Virtex-6 FPGA family consists of 13 devices and is the sixth generation in the Virtex series of FPGAs.

Virtex-6 FPGAs are fabricated on a high-performance, 40-nm process technology. There are three Virtex-6 families: Virtex-6 LXT FPGAs, Virtex-6 SXT FPGAs and Virtex-6 HXT FPGAs. The Spartan-6 family is the PLD industry�� 45-nm high-volume FPGA family, consisting of 11 devices in two product families: Spartan-6 LX FPGAs and Spartan-6 LXT FPGAs. The Virtex-5 FPGA family consists of 26 devices in five product families: Virtex-5 LX FPGAs for logic-intensive designs, Virtex-5 LXT FPGAs for high-performance logic with serial connectivity, Virtex-5 SXT FPGAs for high-performance DSP with serial connectivity, Virtex-5 FXT FPGAs for embedded processing with serial connectivity and Virtex-5 TXT FPGAs for high-bandwidth serial connectivity. Prior generation Virtex families include Virtex-4, Virtex-II Pro, Virtex-II, Virtex-E and the original Virtex family. Spartan family FPGAs include 90-nm Spartan-3 FPGAs, the Spartan-3E family and the Spartan-3A family. Prior generation Spartan families include Spartan-IIE, Spartan-II, Spartan XL and the original Spartan family.

Design Platforms and Services

The Company offers three types of programmable platforms. The Base Platform is the delivery vehicle for all of its new silicon offerings used to develop and run customer-specific software applications and hardware designs. The Base Platform consists of FPGA silicon; Integrated Software Environment (ISE) Design Suite design environment; integration support of optional third-party synthesis, simulation, and signal integrity tools; reference designs; development boards and IP. The Domain-Specific Platform targets one of the three primary Xilinx FPGA user profiles: the embedded processing developer; the DSP developer; or the logic/connectivity developer. The Market-S! pecific P! latform enables software or hardware developers to build and run their specific application or solution. Built for specific markets, such as automotive, consumer, aerospace and defense, communications, audio, video and broadcast, industrial, or scientific and medical, the Market-Specific Platform integrates both the Base and Domain-Specific Platforms.

During April 2012, Xilinx introduced the Vivado Design Suite. Vivado supports Xilinx 7 series FPGAs and Zynq EPPs. Xilinx and various third parties offer hundreds of no charge and fee-bearing IP core licenses covering Ethernet, memory controllers Interlaken and PCIe interface, as well as domain-specific IP in the areas of embedded, DSP and connectivity, and market-specific IP cores. The Company also offers development kits, including hardware, design tools, IP and reference designs. Xilinx offers a range of configuration products, including one-time programmable and in-system programmable storage devices to configure Xilinx FPGAs. These programmable read-only memory (PROM) products support all of the Company�� FPGA devices. Xilinx and certain third parties have developed and offer a ecosystem of IP, boards, tools, services and support through the Xilinx alliance program. Xilinx also works with these third parties to promote its programmable platforms through third-party tools, IP, software, boards and design services. Xilinx engineering services provide customers with engineering, ranging from hands-on training to full design creation and implementation.

The Company competes with Altera Corporation, Lattice Semiconductor Corporation and Microsemi Corporation.

Advisors' Opinion:

• [By Monica Gerson]

  Xilinx (NASDAQ: XLNX) is estimated to post its Q2 earnings at $0.53 per share on revenue of $588.28 million.

  Universal Forest Products (NASDAQ: UFPI) is projected to post its Q3 earnings at $0.54 per share on revenue of $625.77 million.

• [By Lee Jackson]

  Xilinx Inc. (NASDAQ: XLNX) was recently raised to an overweight rating at Morgan Stanley (NYSE: MS) and should be able to contain any earnings degradation as a result from lowered orders from Cisco. The consensus price target for the stock stands at $47, and investors are paid a 2.2% dividend.

Top 5 Semiconductor Stocks To Watch For 2015: ARM Holdings PLC (ARMH)

ARM Holdings plc (ARM), incorporated on October 16, 1990, designs microprocessors, physical intellectual property (IP) and related technology and software, and sells development tools. As of December 31, 2012, the Company operated in three business segments: the Processor Division (PD), the Physical IP Division (PIPD) and the System Design Division (SDD). ARM licenses and sells its technology and products to international electronics companies, which in turn manufacture, markets and sells microprocessors, application-specific integrated circuits (ASICs) and application-specific standard processors (ASSPs) based on ARM�� technology to systems companies for incorporation into a range of end products. It also licenses and sells development tools directly to systems companies and provides support services to its licensees, systems companies and other systems designers.

ARM processor architecture and physical IP is used in embedded microprocessor applications, including cellular phones, digital televisions, mobile computers and personal computer peripherals, smart cards and microcontrollers. ARM�� principal geographic markets are Europe, the United States and Asia Pacific. ARM�� product offering includes microprocessor Cores: RISC microprocessor cores, including specific functions, such as video and graphics IP and on-chip fabric IP; embedded software; physical IP; development tools, and support and maintenance services.

Processor Division

The PD encompasses those resources that are centered on microprocessor cores, including specific functions, such as graphics IP, fabric IP, embedded software IP and configurable digital signal processing (DSP) IP. Service revenues consist of design consulting services and revenues from support, maintenance and training.

Physical IP Division

The PIPD is focused on building blocks for translation of a circuit design into actual silicon. During the year ended December 31, 2012, the Company�� total av! erage PIPD headcount was 557. ARM is a provider of physical IP components for the design and manufacture of integrated circuits, including systems-on-chip (SoCs). ARM Artisan physical IP products include embedded memory, standard cell and input/output components. Artisan physical IP also includes a limited portfolio of analog and mixed-signal products. ARM�� physical IP components are developed for a range of process geometries ranging from 20 nanometer - 250 nanometer. ARM licenses its products to customers for the design and manufacture of integrated circuits used in complex, high-volume applications, such as portable computing devices, communication systems, cellular phones, microcontrollers, consumer multimedia products, automotive electronics, personal computers and workstations and many others.

ARM�� embedded memory components include random access memories, read only memories and register files. These memories are provided in the form of a configurable memory compiler, which allows the customer to generate the appropriate configuration for the given application. ARM�� memory components include many configurable features, such as power-down modes, low-voltage data retention and fully static operation, as well as different transistor options to trade off performance and power. In addition, ARM�� memory components include built-in test interfaces that support the industry test methodologies and tools. ARM memory components also offer redundant storage elements.

ARM�� memory components are designed to enable the chip designer maximum flexibility to achieve the optimum power, performance, and density trade-off. ARM offers standard cell components that are optimized for high performance, high density or ultra high density. ARM logic products deliver optimal performance, power and area when building ARM Processors, Graphics, Video and Fabric IP along with general SoC subsystem implementation. ARM delivers physical interface for a range of DDR SDRAM (double-data rate s! ynchronou! s dynamic random-access memory) applications ranging from mission critical applications to low-power memory sub-systems. Silicon on Insulator (SOI) products is an alternative methodology to traditional semiconductor fabrication techniques.

System Design Division

The SDD is focused on the tools and models used to create and debug software and system-on-chip (SoC) designs. ARM�� software development tools help a software design engineer deliver products right the first time. Engineers use these tools in the design and deployment of code, from applications running on open operating systems right through to low-level firmware. The ARM Development Studio is a hardware components that allow the software designer to connect to a real target system and control the system for the purposes of finding errors in the software. The ARM DSTREAM unit allows the software developer to control the software running on the prototype product and examine the internal state of the prototype product. ARM Development Boards are ideal systems for prototyping ARM-based products. The ARM Microcontroller Development Kit supports ARM-based microcontrollers and 8051-based microcontrollers from companies, such as Analog Devices, Atmel, Freescale, Fujitsu, NXP, Samsung, Sharp, STMicroelectronics, Texas Instruments and Toshiba. The ARM Microcontroller Development Kit is used by developers who are building products and writing software using standard off-the-shelf microcontrollers.

The ARM Microprocessor Families

ARM architecture processors offers a range of performance options in the ARM7 family, ARM9 family, ARM11 family, ARM Cortex family and ARM SecurCore family. The ARM architecture gives systems designers a choice of processor cores at different performance/price points. The ARM7 offers 32-bit architecture capable of operating from 8/16-bit memory on an 8/16-bit bus through the implementation of the Thumb instruction set. The ARM9 family consists of a range of microprocessors in ! the 150-2! 50MHz range. Each processor has been designed for a specific application or function, such as an application processor for a feature phone or running a wireless fidelity (WiFi) protocol stack. The ARM9 family consists of a range of microprocessors in the 150-250 megahertz range. The ARM11 family consists of a range of microprocessors in the 300-600 megahertz range. ARM Cortex family is ARM�� family of processor cores based on version 7 of the ARM Architecture. The family is split into three series: A Series, A Series and M Series.

Advisors' Opinion:

• [By Maynard Paton]

  LONDON -- The shares of�ARM Holdings� (LSE: ARM  ) (NASDAQ: ARMH  ) soared 73 pence, or 8%, to 942 pence during early London trade this morning after the FTSE 100 member announced first-quarter profits had surged 58%.

• [By Travis Hoium]

  Intel (NASDAQ: INTC  ) is finally gaining traction in mobile with the announcement that the Galaxy Tab 3 will be powered by an Intel chip. For years, the company has been virtually shut out of mobile as Qualcomm�and ARM-based� (NASDAQ: ARMH  ) �chips took a vast majority of market share. But with this design win and the 14-nanometer Broadwell chip on the way next year, it's time to get bullish on Intel's mobile future. In the video below, Fool contributor Travis Hoium discusses why he likes the stock right now.�

Top 5 Semiconductor Stocks To Watch For 2015: Applied Materials Inc.(AMAT)

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. The company?s Silicon Systems Group segment offers a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. This segment provides systems that perform primary processes used in chip fabrication, including atomic layer deposition, chemical vapor deposition, physical vapor deposition, electrochemical deposition, rapid thermal processing, chemical mechanical planarization, wet cleaning, and wafer metrology and inspection, as well as systems that etch or inspect circuit patterns on masks used in the photolithography process. Its Applied Global Services segment offers products and services designed to enhance the performance and productivity, and reduce the environmental impact of the fab operations of semiconductor, liquid crystal displays (LCDs), and solar P V manufacturers. The company?s Display segment provides products for manufacturing thin film transistor LCDs for televisions, personal computers (PCs), tablet PCs, smartphones, and other consumer-oriented electronic applications. Its Energy and Environmental Solutions segment offers manufacturing systems for the generation and conservation of energy, as well as manufacturing solutions for wafer-based crystalline silicon applications. This segment also provides roll-to-roll vacuum Web coating systems for deposition of a range of films on flexible substrates for functional, aesthetic, or optical properties; and roll-to-roll machine for depositing ultra-thin aluminum films for flexible packaging applications. The company serves manufacturers of semiconductor wafers and chips, flat panel LCDs, solar PV cells and modules, and other electronic devices. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.

Advisors' Opinion:

• [By Associated Press]

  Obama planned to visit Manor New Tech High School near Austin, where the curriculum is based on science, technology, engineering and math. He'll hold separate meetings with middle-class workers and technology entrepreneurs, and visit Applied Materials (NASDAQ: AMAT  ) , a high-tech company whose products help make goods like smartphones, flat-screen TVs, and solar panels more affordable, according to its website.

• [By Paul Ausick]

  We have tracked the key short interest changes as of September 30 in the following semiconductor leaders: Intel Corp. (NASDAQ: INTC), Advanced Micro Devices Inc. (NYSE: AMD), Micron Technology Inc. (NASDAQ: MU), SanDisk Corp. (NASDAQ: SNDK), Qualcomm Inc. (NASDAQ: QCOM), ARM Holdings PLC (NASDAQ: ARMH), Broadcom Corp. (NASDAQ: BRCM), Marvell Technology Group Ltd. (NASDAQ: MRVL), Nvidia Corp. (NASDAQ: NVDA), Texas Instruments Inc. (NASDAQ: TXN) and Applied Materials Inc. (NASDAQ: AMAT). We also chose to look at how the Market Vectors Semiconductor ETF (NYSEMKT: SMH) has held up.

• [By Nathalie Tadena]

  Applied Materials Inc.(AMAT) swung to fiscal fourth-quarter profit on double-digit revenue growth and stronger margins. The company, which supplies costly machines that help turn silicon wafers into computer chips, also gave a mostly cautious outlook for the current quarter.

• [By Rick Munarriz]

  Applied Materials (NASDAQ: AMAT  ) provides gear, services, and software to assist in the making of advanced semiconductors, flat panel displays, and solar photovoltaic products. Another thing it does is make analysts look like perpetual underachievers. If analysts say that the company posted a profit of $0.13 a share in its latest quarter, I'll whip out a "greater than" sign. History's on my side!

Top 5 Semiconductor Stocks To Watch For 2015: NeoPhotonics Corp (NPTN)

NeoPhotonics Corporation, incorporated on October 31, 1996, is a designer and manufacturer of photonic integrated circuit (PIC)-based modules and subsystems for bandwidth-intensive, high-speed communications networks. The Company has a portfolio of over 300 products, including products that enable data transmission at 10 gigabytes per second, 40 gigabytes per second and 100 gigabytes per second, agility products, such as reconfigurable optical add/drop multiplexers (ROADMs) that allocate bandwidth to adjust for volatile traffic patterns, and access products that provide high-bandwidth connections to more devices and people over fixed and wireless networks. In October 2011, the Company acquired Santur Corporation. In June 2013, it announced first shipments of optical transceiver modules out of its new, high capacity factory in Dongguan, Guangdong Province, China.

The Company�� products are categorized in 34 product families. The Company sells its products to the network equipment vendors globally, including ADVA AG Optical Networking Ltd., Alcatel-Lucent SA, Ciena Corporation (including its recent acquisition of Nortel�� Metro Ethernet Networks business), Cisco Systems, Inc., FiberHome Technologies Group, ECI Telecom Ltd., Telefonaktiebolaget LM Ericsson, Fujitsu Limited, Harmonic, Inc., Huawei Technologies Co., Ltd., Mitsubishi Electric Corporation, NEC Corporation, Nokia Siemens Networks B.V. and ZTE Corporation.

The Company competes with Finisar Corporation, JDS Uniphase Corporation, MRV Communications, Inc., NTT Electronics Corporation and Sumitomo Electric Device Innovations, Inc.

Advisors' Opinion:

• [By Anders Bylund]

  Close competitor NeoPhotonics (NYSE: NPTN  ) soared 15% higher. Larger rival JDS Uniphase (NASDAQ: JDSU  ) jumped 7.9% to become the fastest gainer on the S&P 500. If Ciena can beat its own expectations in selling Internet backbone equipment to a bevy of major telecoms, its chief rivals must eventually follow suit. JDS is only one month removed from its latest quarterly report, which sent shares diving 7% overnight (but all was forgiven a week later). NeoPhotonics also reported in early May, but didn't make any waves then.

Top 5 Semiconductor Stocks To Watch For 2015: Advanced Semiconductor Engineering Inc (ASX)

Advanced Semiconductor Engineering, Inc. is principally engaged in the manufacture, assembly, processing, testing and distribution of integrated circuits (ICs). The Company provides semiconductor packaging and testing services, including plastic leaded chip carriers (PLCCs), quad flat packages (QFPs) and flip chip packaging technology, among others, which are applied in the manufacture of household electrical appliances, communication devices, automobile components, personal computers, set top boxes, servers, memory integrated circuits (ICs), mobile phones, digital cameras, game consoles, projectors, high definition (HD) televisions, wireless communication network products and power management ICs, among others. The Company operates its businesses primarily in Taiwan, Europe and the Americas. In August 2010, the Company acquired a 100% interest in EEMS Test Singapore.

The Company is focused on packaging and testing logic semiconductors. The Company offers its customers turnkey services, which consist of packaging, testing and direct shipment of semiconductors to end users designated by its customers. The Company�� global base of over 200 customers includes semiconductor companies across a range of end use applications, including Altera Corporation, ATI Technologies, Inc., Broadcom Corporation, Cambridge Silicon Radio Limited and Microsoft Corporation. During the year ended December 31, 2008, the Company�� packaging revenues accounted for 77.7% of its net revenues and its testing revenues accounted for 20.1% of its net revenues.

Packaging Services

The Company offers a range of package types to meet the requirements of its customers, with a focus on packaging solutions. Within its portfolio of package types, the Company focuses on the packaging of semiconductors. These include advanced leadframe-based package types, such as quad flat package, thin quad flat package, bump chip carrier and quad flat no-lead package, and package types based on substrates, such a! s flip-chip ball grid array (BGA) and other BGA types, as well as other packages, such as wafer-bumping products. Leadframe-based packages are packaged by connecting the die, using wire bonders, to the leadframe with gold wire. The Company�� leadframe-based packages include quad flat package (QFP)/ thin quad flat package (TQFP), quad flat no-lead package (QFN)/microchip carrier (MCC), advanced quad flat no-lead package (AQFN), bump chip carrier (BCC), small outline plastic package (SOP)/thin small outline plastic package (TSOP), small outline plastic j-bend package (SOJ), plastic leaded chip carrier (PLCC) and plastic dual in-line package (PDIP). Substrate-based packages employ the BGA design, which utilizes a substrate rather than a leadframe. It also assembles system-in-a-package products, which involve the integration of more than one chip into the same package. The Company�� substrate-based packages include Plastic BGA, Cavity Down BGA, Stacked-Die BGA, Flip-Chip BGA and land grid array (LGA).

The Company�� wafer-level packaging products include wafer level chip scale package (aCSP) and advanced wafer level package (aWLP). The Company offers module assembly services, which combine one or more packaged semiconductors with other components in an integrated module to enable functionality, typically using surface mount technology (SMT) machines and other machinery and equipment for system-level assembly. End use applications for modules include cellular phones, personal digital assistant (PDAs), wireless local area network (LAN) applications, bluetooth applications, camera modules, automotive applications and toys.

The Company provides module assembly services primarily at its facilities in Korea for radio frequency and power amplifier modules used in wireless communications and automotive applications. Interconnect materials connect the input/output on the semiconductor dies to the printed circuit board. Interconnect materials include substrate, which is a multi-layer m! iniature ! printed circuit board. The Company produces substrates for use in its packaging operations.

Testing Services

The Company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, final testing of logic/mixed-signal/radio frequency (RF) and memory semiconductors and other test-related services. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis. The Company provides final testing services for a variety of memory products, such as static random access memory (SRAM), dynamic random access memory (DRAM), single-bit erasable programmable read-only memory semiconductors and flash memory semiconductors.

The Company provides a range of additional test-related services, including burn-in testing, module sip testing, dry pack, tape and reel, and electric interface board and mechanical test tool design. The Company offers drop shipment services for shipment of semiconductors directly to end users designated by its customers.

Advisors' Opinion:

• [By Jeff Reeves]

  Advanced Semiconductor Engineering�(ASX) builds and distributes integrated circuits and other electronics. It�� not as sexy as some mobile chipmakers, but thankfully it doesn�� have to be — ASX is simply capitalizing on the general demand for microchips in everything from cars to computers to TVs.

• [By David Dittman]

  Crown Resorts is a buy all the way up to USD16.50 on the Australian Securities Exchange (ASX) using the symbol CWN and on the US over-the-counter (OTC) market using the symbol CWLDF.

Top 5 Semiconductor Stocks To Watch For 2015: Aeroflex Holding Corp (ARX)

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company�� solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices. It also manufactures a range of RF and microwave wireless radio and avionics test equipment and solutions particularly for the wireless, avionics and radio test markets. The Company operates in two segments: Aeroflex Microelectronics Solutions (AMS) and Aeroflex Test Solutions (ATS). In August 2010, it acquired Advanced Control Components. In September 2013, the Company announced the sale of its Aeroflex Test Equipment Services (ATES) business to Trescal Limited. In February 2014, Aeroflex Holding Corp announced the acquisition of Shenick Network Systems.

Aeroflex Microelectronic Solutions

AMS offers a range of microelectronics products and is a provider of specialty products for the space, avionics, defense, commercial wireless communications, medical and other markets. RadHard products are specifically designed to tolerate high radiation level environments, which otherwise can degrade electronic components. The Company principally operates on a fabless semiconductor manufacturing model, outsourcing virtually all front-end semiconductor fabrication activities to commercial foundries. AMS offers a range of complementary products that provide connectivity and computing functionality for applications. Its product portfolio includes RF, microwave and millimeter wave products, including discrete components, ICs, monolithic microwave ICs and multi-chip modules.

AMS designs and manu! factures application specific, analog and mixed-signal devices for use in medical, industrial and intelligent sensors. The Company�� AMS products are used in over 100 space, avionics and defense platforms, including the Wideband Global Satellite Communications satellites, the Geostationary Operational Environmental satellites, the Advanced Extremely High Frequency satellites, the Boeing 777 airliner's databus, the F-16's modular mission computer, the B-1 flight controls upgrade and the Terminal High Altitude Area Defense program. Its AMS products are also used in wireless communications platforms, including WCDMA and LTE cellular base station systems, as well as point-to-point broadband radio applications. In the medical area, our products are used by two of the top four manufacturers of CT scan equipment.

AMS provides HiRel standard and custom integrated circuits and circuit card assembly for the aerospace, altitude avionics, medical, x-ray cargo scanners, critical transportation systems, nuclear power controls, global positioning systems (GPS) receivers, networking and telecommunication markets. AMS' HiRel products include transceivers, analog multiplexers, clock management generators, MSI logic products, battery electronics units, voltage regulators, high-speed power controllers, MIL-STD 1553 bus controllers, remote terminals, bus monitors, microcontrollers and microprocessors, RadHard Pulse Width Modulation Controllers, RadHard Resolver-to-Digital and memory modules. HiRel Microelectronics/ Semiconductors have a typical life cycle of 10-20 years.

AMS provides a set of standard and application specific RF/microwave diodes and semiconductor devices. Microwave semiconductor products offered include diodes, amplifiers, resistors, inductors, capacitors, switches, and integrated devices. RF and Microwave active components and subsystems offered include PIN diode-based microwave control components, variable attenuators, phase shifters, limiters, time delay units and Multi-Funct! ion Micro! wave assemblies. AMS offers resistor products, which include a variety of low and high reliability power surface mounted passive devices for the wireless infrastructure and defense markets with applications in isolators, circulators, single and multi-carrier power amplifiers and circuits. Passive components offered include attenuators, terminations, adapters, DC blocks, and other components for commercial, military and laboratory applications. Other products include power amplifiers, up and down converters, mixers, filters and micro-receivers operating to over 40 giga hertz (GHz). RF and Microwave components have a typical life cycle of 5-15 years. The Company�� motion control products provide complete and integrated motion control solutions for space (both military and commercial), military, avionics, and industrial customers. Its product line offerings include actuators and mechanisms, electronic controllers, slip rings and twist capsules, DC motors and Gimbal Systems. Motion control products have a typical life cycle of 10-20 years.

Aeroflex Test Solutions

ATS is a provider of a line of specialized test and measurement hardware and software products, primarily for the space, avionics, defense, commercial wireless communications and other markets. ATS products and their applications include wireless test equipment, which is used to develop and test handsets and base stations; military radio and PMR test equipment, which is used by radio manufacturers and military, police, fire, and emergency response units to test handheld radios; avionics test equipment, which is used in the design, manufacture and maintenance of electronics systems for aircraft; synthetic test equipment, which is used to test satellites and transmit / receive modules prior to launch and deployment, and general purpose test equipment, including spectrum analyzers and signal generators.

Wireless Test Equipment is used by wireless service providers and equipment manufacturers to test wireless ! handsets ! and base stations. The Company offers a range of cellular tests across a range of wireless standards and communication frequencies, including 2G and 3G, with particular capability in EDGE protocols, and the new 4G LTE/LTE(A) protocols. Products include a range of system, protocol, physical layer and parametric test solutions, such as the TM500 test mobile, RF synthesizers, digitizers and combiners, and application software. In addition, ATS provides PXI-based products which are modular scalable solutions for the handset manufacturing environment. Product applications include research and development, conformance, manufacturing/production, installation and commissioning, field service, and network optimization.

ATS Radio Test Equipment is used by radio manufacturers and military, police, fire and emergency response units to test handheld radio units. ATS provides TErrestrial Trunked Radio (TETRA), and Project 25 (P25), radio test equipment, addressing both mobile and repeater test applications. TETRA is a global standard for private mobile radio (PMR), systems used by emergency services, public transport and utilities. P25 is a standard for digital radio communications for use by federal, state, private, and local public safety agencies in North America. Its military communications testing systems are primarily used by the United States military to test complex voice and data frequency hopping radios and accessories. Military radio and PMR test equipment has a typical life cycle of 5-20 years.

Avionics test equipment is used in the design, manufacture, test and maintenance of commercial, civil and military airborne electronic systems, or avionics. ATS equipment provides the stimulus and signals necessary for certification, verification, fault finding and diagnosis of airborne systems on the ground. For civil and commercial aviation, it has test solutions for various transponder modes, communications frequencies, emergency locator transmitters, weather radars and GPS systems. F! or milita! ry aviation, it has test solutions for microwave landing systems, tactical air navigation, enhanced traffic alert and collision avoidance systems, various identification friend or foe, or IFF, transponder/interrogator modes and IFF monopulse antenna simulation. ATS also provides customized avionics test solutions to support manual and automatic test equipment for manufacturing, repair and ground support operations. Avionics test equipment has a typical life cycle of 8-15 years.

Synthetic test systems test several attributes through one box and can take multiple complex measurements simultaneously. ATS provides synthetic test environment that allows digital, analog, RF/microwave and power test of circuits, modules, subsystems and complete systems for commercial, military, and aerospace customers. ATS' STI 1000C+ and TRM 1000C products offer synthetic microwave test systems optimized for testing Transmit/Receive modules and satellite payloads in a factory setting. Its SMART^E and SMART^E 5300 products offer a modular approach for implementing multi-function configurable and reconfigurable test systems. Synthetic test solutions products have a typical life cycle of 10-15 years.

ATS offers a variety of general purpose test solutions including microwave test solutions, counters and power meters. ATS microwave test solutions cover frequency ranges from 1 megahertz (MHz) to 46 gigahertz (GHz), with various tracking, offset, continuous wave, modulated source, fault location, and group delay configuration options provided. ATS power meters are designed for field use, automated test equipment requirements and standard bench applications. General purpose test solutions have a typical life cycle of 4-7 years.

The Company Competes with Agilent Technologies, Honeywell, BAE Systems, Hittite Microwave Corporation, ILC / Data Devices Corporation, Microsemi, Anaren, Anite, Anritsu, Rohde & Schwarz, Spirent and National Instruments.

Advisors' Opinion:

• [By Rich Smith]

  The Department of Defense issued some 22 separate contract awards Thursday, totaling just under $1 billion in combined value. Not all of them went to publicly traded defense contractors, of course, but enough of them did to be worth mentioning. Here are a few of the lucky winners:

Top 5 Semiconductor Stocks To Watch For 2015: Broadcom Corporation(BRCM)

Broadcom Corporation designs and develops semiconductors for wired and wireless communications. It provides a portfolio of system-on-a-chip (SoC) and software solutions for the manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices, which enable the delivery of voice, video, data, and multimedia content to the home, office, and mobile environment. Its broadband communications products include cable modem SoCs; femtocell SoCs; MPEG/AVC/VC-1 encoders and transcoders; xDSL, passive optical network, and cable modem customer premises equipment and central office solutions; powerline networking SoCs; digital cable, direct broadcast satellite, terrestrial, and Internet protocol (IP) set-top box integrated receiver demodulators; high definition television and standard definition TV SoCs; and Blu-ray disc SoCs. The company?s mobile and wireless products comprise Wi-Fi and Bluetooth SoCs, wireless connectivity com bo chips, global positioning system SoCs, multimedia processors, applications processors, power management units, VoIP SoCs, mobile TV SoCs, and near field communications tags. Its infrastructure and networking products include Ethernet copper transceivers, Ethernet controllers and switches, backplane and optical front-end physical layer devices, security processors and adapters, and broadband processors. The company markets and sells its products through direct sales force, distributors, and manufacturers? representatives in the United States, as well as through regional offices, and a network of independent distributors and representatives in Asia, Australia, Europe, and North America. The company was founded in 1991 and is headquartered in Irvine, California.

Advisors' Opinion:

• [By WALLSTCHEATSHEET]

  Broadcom provides wireless and wired semiconductor technologies to businesses and consumers worldwide. A recent earnings release has investors disappointed with the company. The stock has struggled in recent years and is currently trading near lows for the year. Over the last four quarters, earnings have decreased while revenues have increased, which has left investors to expect more from the company. Relative to its peers and sector, Broadcom has been a weak year-to-date performer. WAIT AND SEE what Broadcom does this coming quarter.

• [By John Divine]

  Chip maker Broadcom (NASDAQ: BRCM  ) was one of the S&P's more notable decliners, sliding 3.6% as investors reacted to news that the company is losing an important customer. Broadcom will no longer be used by Samsung as the combo-chip provider for the newest Samsung Galaxy S 4 mini smartphone, according to a Barclays analyst. The combo chip, which allows for Bluetooth and Wi-Fi WLAN compatibility, is now being supplied by Broadcom rival Qualcomm, according to the report.

• [By Ashraf Eassa]

  After the "scary" drop from $66 to $61.38 or so, the sentiment briefly turned negative on the name. When you run into these kinds of drops, just head on over to StockTwits, and you'll see the same "twits" parroted over and over again. In Qualcomm's case, they went something like:

  <Technical Analysis Mumbo Jumbo> THIS SEES $53!Broadcom (BRCM) will eat Qualcomm's lunch, Qualcomm going below $60!They missed estimates! What a lousy company!

  And it went on and on. Smart money, while perhaps slightly perturbed by the drop in QCT operating margins, recognized that the QTL profit stream was still great, and further recognized that the company had now raised full-year guidance twice... precisely due to QCT market share leadership. Just because Qualcomm missed the overly-optimistic analyst estimates doesn't mean that the shares deserved that kind of whack for more than a week or two.

• [By Ashraf Eassa]

  Finally, it will be an uphill battle for Intel to compete with Qualcomm on the modem side of things, although recent hiring and R&D increases suggest that Intel is making a serious effort. It is not clear if the "Merrifield" platform will ship with an LTE-Advanced modem (which both Broadcom (BRCM) and Qualcomm will be shipping in this timeframe). I am expecting a highly integrated part known as "6331" during 2014, which will put the modem on the same die as the apps processor, although it is clear that Intel's modem efforts have significantly lagged its apps processor efforts significantly thus far. I also expect that Intel will need to fill out its portfolio with low power WiFi connectivity as consuming the majority of the bill of materials in this space will be key to driving high margin revenue growth. This can likely be developed in-house by leveraging existing WiFi IP, although I would not be surprised to see further acquisitions.

Top 5 Semiconductor Stocks To Watch For 2015: On Track Innovations Ltd (OTIV)

On Track Innovations Ltd. (OTI) designs, develops and markets solutions based on its secure contactless microprocessor-based smart card technology to address the needs of a range of markets. The Company�� products combine the benefits of both microprocessors and contactless cards. In addition to contactless microprocessor-based smart cards, it also sells products that are based on other card technologies. The Company has focused on the development of its technologies and its products based on its technological platform that consists of smart cards, smart card readers, software tools and secure communication technology. As of December 31, 2012, it offers three lines of solutions, each of which constitutes a complete system, as well as components (such as smart cards and readers) that we sell to original equipment manufacturers (OEMs), for incorporation into their own products. OTI�� three vertical markets include Payment Solutions, Petroleum Systems and SmartID Solutions. Advisors' Opinion:

• [By Markman Advisors]

  Public companies leveraging their patent portfolios, (aka "patent plays"), are getting the market's attention. Companies such as Vringo (VRNG), ParkerVision (PRKR), MGT Capital (MGT), Worlds Inc. (WDDD.OB) and others have presented trading opportunities due to their volatility while retaining the chance for a big payoff to those investors who stay the course. Yet there exist viable patent plays that are still undiscovered. Some of these so called "plays," which are not getting enough attention, are actually real companies making and selling real products or services in contrast to pure patent monetization companies. Some known examples are Single Touch Interactive (SITO.OB) and Blue Calypso (BCYP.OB). This article is focused on another one of these patent plays, On Track Innovations Ltd. (OTIV).

• [By Roberto Pedone]

   

   

  One under-$10 technology player that's starting to trend within range of triggering a major breakout trade is On Track Innovations (OTIV), which designs, develops and markets contactless microprocessor-based smart card solutions to customers in Africa, Europe, the Far East, the Americas and Israel. This stock has been red hot over the last three months, with shares up a whopping 134%.

  If you take a look at the chart for On Track Innovations, you'll notice that this stock has been trending sideways and consolidating over the last month and change, with shares moving between $2.70 on the downside and $3.74 on the upside. Shares of OTIV have now started to spike higher off some near-term support at $3 a share and it's quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

  Traders should now look for long-biased trades in OTIV if it manages to break out above its 52-week high at $3.74 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 volume of 626,538 shares. If that breakout triggers soon, then OTIV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5.50 a share.

  Traders can look to buy OTIV off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $3.20 or at $3 a share. One can also buy OTIV off strength once it starts to clear its 52-week high at $3.74 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 5 Semiconductor Stocks To Watch For 2015: Peregrine Semiconductor Corp (PSMI)

Peregrine Semiconductor Corporation (Peregrine), incorporated in February 1990, is engaged in the design, manufacturing and marketing radio frequency integrated circuits (RFICs) for the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets. The Company is provider of RFICs. Its products include RF switches-antenna, RFswitches-broadband and general purpose, digital attenuators, synthesizers, mixers/upconverters, prescalers, variable gain amplifiers, digitally tunable capacitors, DC-DC converters and power amplifiers. Its UltraCMOS technology enables the design, manufacture, and integration of multiple radio frequency (RF), mixed signal, and digital functions on a single chip. Its solutions target a range of applications in the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets.

As of December 25, 2010, The Company offers a portfolio of more than 120 RFICs, including switches, digital attenuators, mixers/upconverters, and prescalers, and it is developing power amplifiers (Pas), digitally tunable capacitors (DTCs), and DC-DC converters. During the fiscal year ended December 25, 2010, its products were sold to more than 1,400 module manufacturers, original equipment manufacturers (OEMs), contract manufacturers, and other customers, including such companies as Amalfi Semiconductor, Inc., The Boeing Company, EPCOS AG, Ericsson AB, Hitachi Media Electronics Company, Ltd., Hitachi Metals, Ltd., Humax Co., Ltd., Itron, Inc., LG Innotek Co., Ltd., Mini-Circuits, Inc., Motorola, Inc., Murata Manufacturing Company, Ltd., Planet Technology Corp., Rockwell Collins, Inc., Rohde & Schwarz, Inc., SIPAT Co., Ltd., Skyworks Solutions, Inc., Sony Corporation, Source Photonics, Inc., and Thales Alenia Space.

RF switches-antenna

RF Switches are utilized in the RF section of mobile devices to route RF signals between! the antenna and the handset core, through one or more signal paths. For mobile handsets, its switch products offer up to 10 RF signal paths with integrated digital bus support and onboard voltage regulation.

RFswitches-broadband and general purpose

The Company�� broadband and general purpose RF switches deliver combination of broadband linearity, settling time, and isolation while routing RF signals to their respective transmit or receive paths. Its attributes are being used by the OEMs of LED and plasma digital televisions (DTVs), set top box, cable infrastructure, test and measurement devices

Digital Attenuators

The Company provides digital step attenuators that are used to control the amplitude of an RF or analog signal. The products include digital control circuitry integrated with an RF attenuator core and are used in third generation (3G) and fourth generation (4G) cellular base stations, repeaters, and point-to-point nodes.

Synthesizers

The Company�� frequency synthesizers provide an electronic system for generating any of a range of frequencies from a single fixed timebase or oscillator. Its synthesizers provide low-power, ultra-low phase noise, programmable frequency synthesis for defense, broadband, industrial, and wireless infrastructure markets.

Mixers/Upconverters

The Company�� mixers/upconverters are used to translate encoded voice/data signals from one frequency to another to enable radio transmission. Its mixers / upconverters are incorporated into mixer modules and provide industry linearity, which is a metric to maximizing wireless data transmission rates. These attributes are critical in 3G and 4G cellular base station designs.

Prescalers

The Company�� prescalers operate in the C, X, and Ku bands to divide the frequency of a wireless signal in order to extend the operating range of a synthesizer beyond its base capability. Its prescalers complem! ent its f! requency synthesizer line, providing its customers with design.

Variable Gain Amplifiers

The Company�� Variable Gain Amplifiers (VGAs) are used in both the receiving and transmitting path of a radio system to maintain a signal�� strength at a level necessary for other circuits to operate optimally. Its DVGA is the monolithic integrated circuit (IC) to integrate three functional blocks, including digital attenuators, RF/IF amplifiers and a common serial interface onto a single IC.

DC-DC Converters

The Company�� frequency-configurable DC-DC converters efficiently perform voltage conversion using a high frequency switching technique that minimizes system noise. Its DC-DC converters are designed to enable a distributed power management architecture designed for satellite applications, replacing inefficient drop out regulators and central converters.

Power Amplifiers

The Company�� PAs amplify RF signals in order to generate the necessary power required to establish a radio link between a base station and a mobile device. With its UltraCMOS technology the Company has the ability to integrate its PAs on a single chip with other RF, mixed signal, and digital components.

The Company competes with Hittite, M/A-COM, NEC, Renesas, RFMD, Skyworks, Sony, Toshiba and TriQuint Semiconductor.

Advisors' Opinion:

• [By Lee Jackson]

  Peregrine Semiconductor Corp. (NASDAQ: PSMI) is a lesser known name that is a top stock to buy at Deutsche Bank. The company recently released a new radio frequency (RF) switch specifically designed for broadband cable systems. With HD content exploding, this could be a huge home run for the company. Deutsche Bank has a $14 price target for the stock, the same as the consensus target.