Hot Energy Companies To Buy For 2015

Hot Energy Companies To Buy For 2015: Contango Oil & Gas Co (MCF)

Contango Oil & Gas Company (Contango) is an independent natural gas and oil company. The Companys core business is to explore, develop, produce and acquire natural gas and oil properties onshore and offshore in the Gulf of Mexico in water-depths of less than 300 feet. Contango Operators, Inc. (COI), its wholly owned subsidiary, acts as operator on its properties.

Offshore Gulf of Mexico Activities

Contango, through its wholly-owned subsidiary, COI and its partially owned affiliate, Republic Exploration LLC (REX), conducts exploration activities in the Gulf of Mexico. COI drills, and operates its wells in the Gulf of Mexico, as well as attends lease sales and acquires leasehold acreage. As of August 24, 2012, the Company's offshore production was approximately 83.5 million cubic feet equivalent per day, net to Contango, which consists of seven federal and five state of Louisiana wells in the shallow waters of the Gulf of Mexico. These 12 operate d wells produce through the four platforms: Eugene Island 24 Platform, Eugene Island 11 Platform, Ship Shoal 263 Platform, Vermilion 170 Platform and Other Activities.

This third-party owned and operated production platform at Eugene Island 24 was designed with a capacity of 100 million cubic feet per day and 3,000 barrels of oil per day. This platform services production from the Companys Dutch #1, #2 and #3 federal wells. From this platform, the gas flows through an American Midstream pipeline into a third-party owned and operated on-shore processing facility at Burns Point, Louisiana, and the condensate flows through an ExxonMobil pipeline to on-shore markets and multiple refineries. As of August 24, 2012, it was producing approximately 22.5 million cubic feet equivalent per day, net to Contango, from this platform. The Company finished laying six inches auxiliary flowlines from the Dutch #1, #2, and #3 wells to its Eugene Island 11 Platform a! nd is in the process of redirecting production from the Eugene Island 24! Platform to the Eugene Island 11 Platform.

The Companys Company-owned and operated platform at Eugene Island 11 was designed with a capacity of 500 million cubic feet equivalent per day and 6,000 barrels of oil per day. These platforms service production from the Companys five Mary Rose wells, which are all located in state of Louisiana waters, as well as its Dutch #4 and Dutch #5 wells, which are both located in federal waters. From these platforms, it can flow its gas to an American Midstream pipeline through its eight inches pipeline and from there to a third-party owned and operated on-shore processing facility at Burns Point, Louisiana. It can flow its condensate through an ExxonMobil pipeline to on-shore markets and multiple refineries.

The Companys gas and condensate can flow to its Eugene Island 63 auxiliary platform through its 20 inches pipeline, which has been designed with a capacity of 330 million cubic feet equivalent per da y and 6,000 barrels of oil per day, and from there to third-party owned and operated on-shore processing facilities near Patterson, Louisiana, through an ANR pipeline. As of August 24, 2012, it was producing approximately 44.6 million cubic feet equivalent per day, net to Contango, from this platform.

The Companys owned and operated platform at Ship Shoal 263 was designed with a capacity of 40 million cubic feet equivalent per day and 5,000 barrels of oil per day. This platform services natural gas and condensate production from our Nautilus well, which flows through the Transcontinental Gas Pipeline to onshore processing plants. As of August 24, 2012, it was producing approximately 3.0 million cubic feet equivalent per day, net to Contango, from this platform. As of June 30, 2012, the Company owed a 100% working interest and 80% net revenue interest in this well and platform.

The Companys owned and operated platform at Vermilion 170 was d! esig ned! with a capacity of 60 million cubic feet equivalent per ! day and 2! ,000 barrels of oil per day. This platform services natural gas and condensate production from its Swimmy well, which flows through the Sea Robin Pipeline to onshore processing plants. As of August 24, 2012, it was producing approximately 13.4 million cubic feet equivalent per day, net to Contango, from this platform.

On July 10, 2012, the Company spud its South Timbalier 75 prospect (Fang) with the Spartan 303 rig. It has a 100% working interest in this wildcat exploration prospect. On July 3, 2012, the Company spud its Ship Shoal 134 prospect (Eagle) with the Hercules 205 rig. The Company purchased the deep mineral rights on Ship Shoal 134 from an independent third-party. It has a 100% working interest in this wildcat exploration prospect. On December 21, 2011, the Company purchased an additional 3.66% working interest (2.67% net revenue interest) in Mary Rose #5 (previously Eloise North). The Company has a 47.05% working interest (38.1% net revenue int erest) in Dutch #5.

Offshore Properties

During the fiscal year ended June 30, 2012 (fiscal 2012), State Lease 19396 expired and was returned to the state of Louisiana. As of August 24, 2012, the interests owned by Contango through its affiliated entities in the Gulf of Mexico, which were capable of producing natural gas or oil included Eugene Island 10 #D-1, Eugene Island 10 #E-1, Eugene Island 10 #F-1, Eugene Island 10 #G-1, Eugene Island 10 #I-1, S-L 18640 #1, S-L 19266 #1, S-L 19266 #2, S-L 18860 #1, S-L 19266 #3 and S-L 19261, Ship Shoal 263, Vermilion 170 and West Delta 36. As of August 24, 2012, interests owned by Contango through its related entities in leases in the Gulf of Mexico included Eugene Island 11, East Breaks 369, South Timbalier 97, Ship Shoal 121, Ship Shoal 122, Brazos Area 543, Ship Shoal 134 and South Timbalier 75.

Onshore Exploration and Properties

As of August 24, 2012, the Company had! invested! in A lta Energy Canada Partnership (Alta Energy) to purchase over! 60,000 a! cres in the Kaybob Duvernay. Contango has a 2% interest in Alta Energy and a 5% interest in the Kaybob Duvernay project. On April 9, 2012, the Company announced that through its wholly owned subsidiary, Contaro Company, it had entered into a Limited Liability Company Agreement (the LLC Agreement) to form Exaro Energy III LLC (Exaro). The Company owns approximately a 45% interest in Exaro. Exaro has entered into an Earning and Development Agreement (the EDA Agreement) with Encana Oil & Gas (USA) Inc. (Encana) to provide funding to continue the development drilling program in a defined area of Encanas Jonah field asset located in Sublette County, Wyoming.

As of June 30, 2012, the Exaro-Encana venture had three rigs drilling, has completed five wells and achieved first production. As of August 24, 2012, the Company had invested to lease approximately 25,000 acres in the Tuscaloosa Marine Shale (TMS), a shale play in central Louisiana and Mississippi.

Advisors' Opinion:

• [By John Udovich]

  Yesterday, small cap Energy XXI (Bermuda) Limited (NASDAQ: EXXI)announced a deal to acquireEPL Oil & Gas Inc (NYSE: EPL) to create the largest publicly held independent oil producer on the Gulf of Mexico shelf, meaning it might be a good idea to look at other small cap Gulf oil stocks like W&T Offshore, Inc (NYSE: WTI), Stone Energy Corporation (NYSE: SGY) and Contango Oil & Gas Company (NYSEMKT: MCF). Energy XXIs CEO John Schiller has talked about the details of the acquisitionwith Jim Cramer on CNBC's "Mad Money" and he noted thatEPL Oil & Gas offers areas of expertise that EXXI currently lacks. However, investors who missed out onyesterdays 29% surge for EPL Oil & Gasmay want to check out these other small cap Gulf Oil stocks:

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/hot-energy-compani! es-to-buy! -for-2015.html

Top International Companies To Invest In 2015

Top International Companies To Invest In 2015: Fiesta Restaurant Group Inc (FRGI)

Fiesta Restaurant Group, Inc. (Fiesta Restaurant Group), incorporated on April 27, 2011, owns, operates and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana. The Company's Pollo Tropical restaurants offer a range of tropical and Caribbean inspired food, while the Company's Taco Cabana restaurants offers a range of fresh, authentic Mexican food. As of December 30, 2012 , the Company owned and operated a total of 251 restaurants across four states, which included 91 Pollo Tropical and 160 Taco Cabana restaurants. The Company franchises its Pollo Tropical restaurants internationally. As of December 30, 2012 , the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on several college campuses in Florida. As of December 30, 2012 , the Company had eight Taco Cabana franchised restaurants located in Georgia, New Mexico and Texas.

Pollo Tro pical

The Company's Pollo Tropical restaurants offer tropical and Caribbean inspired menu items, featuring grilled chicken marinated in the Company's blend of tropical fruit juices and spices. The Company's diverse menu also includes a line of TropiChops (a casserole bowl of grilled chicken, roast pork or grilled vegetables served over white, brown or yellow rice and red or black beans and topped with a range of condiments and sauces), a range of chicken sandwiches, wraps, salads, roast pork, grilled ribs and wings offered with a range of salsas, sauces and Caribbean style made from scratch side dishes, including black beans and rice, Yucatan fries and sweet plantains, as well as menu items, such as french fries, corn and salads. The Company also offers Hispanic desserts, such as flan and tres leches, and at certain locations, the Company offers a range of sangria, wine and beer.

The Company's Pollo Tropical resta! urants feature signature dining ar eas. In additiona, the Company's Pollo Tropical restaurants ! provide its guests the option of take-out, as well as the convenience of drive-thru windows. The Company's Pollo Tropical restaurants are open for lunch, dinner and late night orders seven days per week. As of December 30, 2012, its company-owned Pollo Tropical restaurants were freestanding buildings. The Company's typical free-standing Pollo Tropical restaurant ranges from 2,800 to 3,500 square feet and provide interior seating for approximately 70 guests. As of December 30, 2012 , the Company owned and operated a total of 91 Pollo Tropical restaurants, of which 89 were located in Florida and two were located in Georgia. The Company is franchising its Pollo Tropical restaurants internationally. As of December 30, 2012, the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on college campuses in Florida. The Company also has agreements for the future development of franchis ed Pollo Tropical restaurants in Tobago, Aruba, Curacao, Bonaire, Guatemala and India.

Taco Cabana

The Company's Taco Cabana restaurants serve Mexican food, including flame-grilled beef and chicken fajitas served on sizzling iron skillets, quesadillas, hand-rolled flautas, enchiladas, burritos, tacos, fresh-made flour tortillas, a selection of made from scratch salsas and sauces, customizable salads served in a Cabana bowl, traditional Mexican and American breakfasts and other Mexican dishes. The Company's Taco Cabana restaurants also offer a range of beverage choices, including soft drinks, frozen margaritas and beer.

The Company's Taco Cabana restaurants feature interior dining areas, as well as semi-enclosed and outdoor patio areas. In addition, the Company's Taco Cabana restaurants provide its guests the option of take-out. The Company's freestanding Taco Cabana restaurants average approxi! mately 3,! 500 square feet (exclusive of th e exterior dining area) and provide seating for approximatel! y 80 gues! ts, with additional outside patio seating for approximately 50 guests. As of December 30, 2012, its company-owned Taco Cabana restaurants were freestanding buildings. As of December 30, 2012, the Company owned and operated 160 Taco Cabana restaurants, of which 156 are located in Texas and four in Oklahoma.

Advisors' Opinion:

• [By GURUFOCUS]

  Fiesta Restaurant Group (FRGI) was the Fund's best performing position in the fourth quarter and for all of 2013. Over the past year the stock g ained over 240 percent and added 212 basis points of return. The fast-food chain has con tinued to restructure after spinning off Burger King restaurants and is now successfully ach ieving organic growth. We continue to believe the stock is undervalued and expect further growth ahead.

• [By Roberto Pedone]

  Fiesta Restaurant Group (FRGI) owns, operates and franchises fast-casual restaurants under the Pollo Tropical and Taco Cabana brand names. This stock closed up 10.5% to $34.73 in Friday's trading session.

  Friday's Volume: 552,000
  
  Three-Month Average Volume: 220,525
  
  Volume % Change: 140%

  From a technical perspective, FRGI ripped sharply higher here right off some near-term support at $30.89 and back above its 50-day moving average of $34.23 with strong upside volume. This move pushed shares of FRGI into breakout territory, since the stock took out some near-term overhead resistance at $33.14. Shares of FRGI are now starting to move within range of triggering another key breakout trade. That trade will hit if FRGI manages to take out some near-term overhead resistance at $35.73 with high volume.

  Traders should now look for long-biased trades in FRGI as long as it's trending above its 50-day at $34.23 or above $33 and then once it sustains a move or close above $35.75 with volume that hits near or above 220,525 shares. If tha! t breakou! t hits soon, then FRGI will set up to re-test or possibly take out its all-time high at $38.84. Any high-volume move above that level will then give FRGI a chance to trend north of $40.

• [By Seth Jayson]

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

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-international-companies-to-invest-in-2015.html

Best Transportation Stocks To Buy For 2015

Best Transportation Stocks To Buy For 2015: DryShips Inc (DRYS)

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocea n Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.

As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of fou! r Aframax and on e Suezmax tankers.

The Companys drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk ves sels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.

Drybulk Operations

The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.

Offshore Drilling Operations

In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko! Cote dIv! oire Com pany (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).

The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShipss wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryS hips also has contracts to provide offshore drilling services and drilling units.

Tanker Operations

The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.

Advisors' Opinion:

• [By Jon C. Ogg]

  DryShips Inc. (NASDAQ: DRYS) has been addicted to raising capital via share sales in the past, and shares are facing real pressure on Monday based on yet another stock offering. The shipping player announced on Friday after the closing bell that it entered into an equity offering sales agreement with Evercore Group to sell up to $200 million of common shares in the company.

• [By David Hanson]

  10. DryShips (NASDAQ: DRYS ! ; ) ! Some pundits and investors called Buffett crazy when he plowed over $30 billion into a railroad. Could Buffett further increase Berkshire's exposure to the industrial transportation and logistics business by buying stake in an ocean transporter? Maybe, but it won't be via DryShips. The company has been flailing in the wind since the financial crisis as it has struggled to generate free cash flow. Solvency questions have been raised, and the debt-heavy balance sheet will strike fear into the hearts of equity investors.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/best-transportation-stocks-to-buy-for-2015-2.html

10 Best Consumer Stocks To Watch For 2015

10 Best Consumer Stocks To Watch For 2015: Elecsys Corporation(ESYS)

Elecsys Corporation provides data acquisition systems, machine to machine (M2M) communication technology solutions, and custom electronic equipment for critical industrial applications in the United States and internationally. The company designs and manufactures wireless remote monitoring and telemetry solutions to the energy infrastructure sector, as well as other industrial markets under the Pipeline Watchdog and NTG brand names. It also provides process monitoring, data communication, and cyber security solutions under the SensorCast, Director, and zONeGUARD brand names; smart asset tagging solutions based on radio frequency identification (RFID) technologies, which include custom tags, readers, and software under the brand name of eXtremeTAG; custom electronic design and manufacturing services (EDMS) under the DCI brand name; and ultra-rugged handheld computing solutions, as well as handheld computers, printers, peripherals, and application software under the brand na me of Radix. In addition, the company designs, manufactures, and tests a range of electronic assemblies, including circuit boards, high-frequency electronic modules, microelectronic assemblies, and turn-key products; and provides liquid crystal displays (LCDs) devices and modules, and hardware and software design services to its original equipment manufacturers (OEMs) partners, as well as offers integrated data collection and reporting solutions. It primarily serves energy infrastructure, safety and security systems, industrial controls, irrigation and water management, transportation, military, and aerospace markets. Elecsys Corporation was founded in 1991 and is headquartered in Olathe, Kansas.

Advisors' Opinion:

• [By John Udovich]

  Small cap machine-to-machine (M2M) stock Elecsys Corp (NASDAQ: ESYS) jumped 8.99% yesterday and is up 254% over the past year, meaning it might be time to take a closer look at the stock an! d its performance verses other small cap M2M stocks like Digi International Inc (NASDAQ: DGII), Numerex Corp (NASDAQ: NMRX) and Sierra Wireless, Inc (NASDAQ: SWIR). First of all though, I should mention that machine-to-machine (M2M) broadly refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type and this can be through any type of technology ranging from instruments to networks to applications that create connections between devices.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-consumer-stocks-to-watch-for-2015.html

Drug maker wants to sell Cialis over the counter

INDIANAPOLIS — The maker of erectile dysfunction drug Cialis wants its pill sold to men without a prescription.

Under a licensing deal between Eli Lilly and Co. (LLY) and French drugmaker Sanofi (SAN), Cialis could become the first prescription drug for male impotence to be sold over the counter. The plan still needs approval from regulators, who would weigh the risks of allowing the drug to be sold without a doctor's visit.

The two companies hope for a 2018 launch of what they're calling Cialis OTC. That's the same year patents for Cialis are expected to expire in the United States and Europe, allowing cheaper generics to take over and effectively dry up Lilly's considerable profits from the drug.

Cialis generated $2.16 billion in sales last year and was Lilly's fourth best-selling drug.

2014: Erectile drug may help boys with muscular dystrophy
2013: Cialis receives EU approval for new use

A plan to sell Cialis over the counter would allow the Indianapolis drugmaker to continue to profit from the drug as an impotence treatment.

Lilly didn't reveal financial details of the deal with Sanofi. Under the deal, Sanofi will be responsible for commercializing nonprescription Cialis wherever it receives approval while Lilly will manufacture Cialis for Sanofi. The drug, sold in tablet form, is made by Lilly in Puerto Rico.

Men don't want to go through the hassle and sometimes discussions with doctors. There is a need to self-diagnose.

Dave Ricks, Eli Lilly and Co.

Cialis has been prescribed to more than 45 million men since its launch in Europe in 2002 and in the United States a year later. The drug has been widely used and proven to be safe and effective, so it's a good candidate to sell over the counter, said Dave Ricks, a senior vice president at Lilly.

In addition, over-the-counter sales would be a safer option for men than buying illicit forms of Cialis online without a prescription, Ricks said. He said many of the Cialis tablets advertised online! are fake or adulterated.

A large unmet demand exists for over-the-counter Cialis because many men suffering from impotence don't feel comfortable talking to a doctor about the problem, Ricks said.

"Half of (American) men over 40 suffer ED," Ricks said. "But the current market (for prescription ED drugs) only represents a fraction (of potential patients). Men don't want to go through the hassle and sometimes discussions with doctors. There is a need to self-diagnose. We think that (over-the-counter) availability is key to helping guys" with impotence.

The first prescription erectile dysfunction drug to market was Pfizer's Viagra, introduced in the late 1990s. Pfizer applied in Europe several years ago to sell Viagra over the counter but later withdrew its request.

Eli Lilly's Cialis orange tablet was the second erectile dysfunction the FDA approved.(Photo: Eli Lilly and Co.)

Lilly said Sanofi will take the lead in pursuing regulatory approval to sell Cialis over the counter. One concern for regulators will be that Cialis isn't supposed to be taken with medicines called nitrates often prescribed for chest pain. The combination can cause a dangerous drop in blood pressure.

Regulators also might be concerned that impotence is sometimes a sign of other medical problems, which won't be discovered if men are allowed to buy Cialis without a checkup.

Best Safest Stocks To Watch Right Now

Potentially, regulators could approve over-the-counter sales of Cialis only at certain doses and for some indications, Ricks said.

Lilly said it struck a deal with Sanofi to take the lead in Cialis OT! C because! Sanofi has experience in conducting consumer studies and gaining approval for over-the-counter formulations of other brand drugs, including allergy medications Nasacort and Allegra.

Top 10 India Stocks To Invest In Right Now

Top 10 India Stocks To Invest In Right Now: Stewart Information Services Corporation(STC)

Stewart Information Services Corporation provides title insurance and related information services required for settlement by the real estate and mortgage industries. It operates in two segments, Title Insurance-Related Services and Real Estate Information. The Title Insurance-Related Services segment offers services that include searching for and examining documents, such as deeds, mortgages, wills, divorce decrees, court judgments, liens, paving assessments, and tax records, as well as provides titles insurance for residential and commercial properties, undeveloped acreage, farms, ranches, and water rights. This segment serves attorneys, builders, developers, home buyers and home sellers, lenders, and real estate brokers. The Real Estate Information segment offers products and services, which primarily include lender services, title technology, foreign and domestic government services, mapping, title information, Internal Revenue Code Section 1031 tax-deferred property e xchanges, pre-employment services, and online filing and transaction management. Its customers include mortgage lenders and servicers, mortgage brokers, mortgage investors, government entities, commercial and residential real estate agents, land developers, builders, title insurance agencies, and others interested in obtaining property information, as well as accountants, attorneys, investors, and employers. The company has operations primarily in the United States, Canada, the United Kingdom, central Europe, Mexico, central America, and Australia. Stewart Information Services Corporation was founded in 1893 and is based in Houston, Texas.

Advisors' Opinion:

• [By James Fink]

  My housing pick is Houston-based Stewart Information Services (STC), a 120-year-old real estate business founded in 1893, that is still! owned and managed by the founding family.

• [By Ben Levisohn]

  Tower Group has dropped 12% to $3.88 today at 11:39 a.m., while Stewart Information Services (STC) has dipped 0.1% to $31.16, the Navigators Group (NAVG) has fallen 1.4% to $54.78 and HCI Group (HCI) has gained 1% to $38.16.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-india-stocks-to-invest-in-right-now.html

Defense seeks lenient sentence for Martoma

NEW YORK — Lawyers for Mathew Martoma have asked a federal judge to impose a lenient sentence on the former SAC Capital trader for his conviction on what prosecutors called history's most profitable insider-trading conspiracy.

Martoma, an ex- financial lieutenant to billionaire hedge fund executive Steven Cohen, deserves punishment less harsh than the 15.7-year to 19.6-year prison term proposed by probation officials, defense attorney Richard Strassberg argued in legal memo filed late Tuesday.

Calling such punishment "irrational," Strassberg argued the recommendation was wrongly based on total SAC Capital gains from the insider trading, rather than Martoma's personal profits.

The attorney urged U.S. District Court Judge Paul Gardephe to weigh Martoma's devotion to his family and history of helping others. He also argued against any financial fines, and filed more than 100 support letters from the former trader's relatives and friends.

"Mr. Martoma is not perfect, but he is a good man," wrote Strassberg. "To prevent a sentence disparity; to recognize his lower level of culpability relative to other insider trading cases; to credit his lifetime of volunteer and charitable work ... we respectfully request leniency in his sentence."

Martoma, 40, was convicted in February of conspiracy and two counts of securities fraud. Prosecution evidence showed he ingratiated himself with two doctors who gave him secret and disappointing information from tests on an experimental drug to treat Alzheimer's disease.

Martoma then called Cohen, setting in motion an SAC Capital sell-off that allegedly generated $276 million in profits gained and losses avoided, prosecutors charged.

The verdict, handed up by a seven-woman, five-man jury in Manhattan federal court, theoretically means the Florida father of three faces up to five years in prison term on the conspiracy count, and up to 20 years on each securities fraud charge. But the sentencing decision rests with Gardephe, who presided! over the nearly month-long trial.

Top 10 Forestry Stocks To Invest In 2015

Federal prosecutors are scheduled to file their punishment recommendation before Martoma's scheduled June 10 sentencing.

Martoma was the eighth SAC Capital employee found guilty on insider-trading charges. The convictions played a central role in the hedge fund's guilty plea to similar charges in a record $1.8 billion November settlement that permanently bars it from handling investments for outsiders.

Martoma, who did not testify at trial, maintained he did nothing wrong. But prosecutors charged he obtained an illegal trading edge between 2006 and 2008 by getting secret evidence from drug trials on a drug being developed by pharmaceutical firms Elan and Wyeth.

Dr. Sidney Gilman, an Alzheimer's disease expert and the prosecution's star witness, told jurors he met regularly with Martoma through a company that linked matched financial professionals with expert researchers. Gilman, who chaired the safety monitoring committee for the Alzheimer's drug trial, admitted he gave inside information to Martoma because he came to regard the trader as a friend.

Dr. Joel Ross, a clinical investigator on the drug trial, similarly testified that he shared confidential information from the drug testing with Martoma.

Martoma's defense focused on challenging both doctors' credibility and accuracy. In particular, cross-examination questioning by Strassberg showed Gilman initially had no recollection of a key meeting in his University of Michigan office to discuss the drug trial results.

But federal prosecutors presented records of cell phone calls and other evidence that appeared to buttress the testimony of Gilman and Ross.

Cohen was not charged in the case ​— though Gilman testified that federal investigators once told him the SAC Capital founder was their ultimate target.

Cohen instead faces ! an admini! strative proceeding by the Securities and Exchange Commission for allegedly failing to provide proper supervision of Martoma and other employees who became involved in insider trading.

5 Best Media Stocks To Own Right Now

Bloomberg L.P., the financial data and news empire controlled by former New York City Mayor Michael Bloomberg, laid out Wednesday its expansion strategy under new media group chief Justin Smith, targeting a broader audience with new topic-specific websites, international licensing of its magazines and more video.

In a blog post, Smith, who came on board last year as CEO of Bloomberg Media Group, said his unit needs to maximize "a series of unique corporate advantages," including a business model that doesn't rely on advertising. "Bloomberg Media's greatest potential has yet to still be realized," he wrote. "As our traditional competitors buckle under their own legacy weight, we are unencumbered."

While it employs more than 2,400 journalists, nearly all of its revenue -- about $8.3 billion in 2013 -- comes from selling data-rich desktop terminals to time-sensitive finance professionals. "Seizing this opportunity will require long-term investment and a large appetite for transformation, risk, as well as a tolerance for intermittent failure," wrote Smith, who gained his digital-media guru reputation at Atlantic Media.

5 Best Media Stocks To Own Right Now: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:

• [By John Emerson]

  At the time, NDS Group was 80% owned by News Corp (NWSA) and they were providing the smart cards for all Direct TV (DTV) receivers. Further, they were one of only three smart card providers and one of their competitors, Canal Plus a Vivendi subsidiary, was struggling with maintaining the security of their smart card systems which they were providing to non-News Corp television companies throughout Europe. It seems that the access codes on their systems were turning up on the internet and bootleggers were stealing the signals. EcoStar, which would later be spun off by DISH, was making the same claims back in the 1990s. Both companies maintained that News Corp, acting through its subsidiary NDS Group, was the culprit. To make a long story short, Canal Plus filed a multi-billion dollar lawsuit against News Corp and later on EcoStar would follow suit.

• [By Rich Smith]

  Andrew Harrer/Bloomberg via Getty Images They say that imitation is the sincerest form of flattery. So, Comcast (CMCSA), consider yourself flattered, because Time Warner Cable (TWC) is copying off your homework. A couple of weeks ago, we told you about Comcast's "Great New Secret Cable Plan" to try to halt the exodus of subscribers from its services. The Comcast plan allows subscribers to sign up for: A menu of 45 or so of the most-watched, most useful cable channels The premium pay-TV channel HBO -- plus included HBO GO service for mobile devices High-speed Internet access at speeds up to 25 Mbps A subscription to XFINITY Streampix, Comcast's service for streaming video of complete seasons of popular television shows from recent years past... ... all for the low, low price of just $40 or $50 a month (depending on location). The plan was "secret" because Comcast didn't make much of an effort -- or really effort -- to publicize it. There's hardly even a mention of the plan on the company's website. In other words, it seems like Comcast would prefer to keep the new plan hush-hush so you continue paying for one of their more expensive bundles. However, word of Comcast's under-the-radar new plan get out -- nearly 5,500 DailyFinance readers printed, emailed, commented on, Tweeted, or Facebooked our story on Comcast's "Internet Plus" bundle last month. So Comcast competitor Time Warner did what any good competitor does: It copied the model and, this week, began offering a similar plan of its own: Dubbed "Starter TV with HBO," Time Warner's plan is an even more slimmed-down version of Comcast's idea. It features: "20+" cable channels, including the five biggies -- ABC, CBS, NBC, Fox, and PBS HBO and HBO GO and... well, actually, that's about it. At $30 a month, Time Warner handily undercuts Comcast's Internet Plus offer on price. And yet, it's hard not to wonder if customers aren't still overpaying. For one thing, Time Warner's Starter TV with HBO offer

• [By WALLSTCHEATSHEET]

  DirecTV is a digital television entertainment company that offers satellite services to consumers and companies across the nation. Despite multiple reports on Thursday saying the NFL and DirecTV have reached a new agreement to keep the exclusive Sunday Ticket package on satellite television, the league says no deal has been reached. The stock has been trending higher in recent years and is now trading slightly below all time highs. Over the last four quarters, earnings and revenues have been rising, leaving investors pleased about recent earnings announcements. Relative to its peers and sector, DirecTV has been an average relative performer year-to-date. Look for DirecTV to OUTPERFORM.

5 Best Media Stocks To Own Right Now: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Michael Calia]

  Comcast Corp.(CMCSA) is much more likely to work with Charter Communications Inc.(CHTR) on a bid for Time Warner Cable Inc.(TWC) than to pursue an offer on its own, said a person familiar with the situation–a major boost to Charter’s hopes of winning the takeover battle.

• [By Tim Beyers]

  There's reason to be optimistic. Grimm is an audience favorite -- a 2012 People's Choice award nominee, to be specific -- that's also a draw for Comcast's (NASDAQ: CMCSA  ) NBCUniversal, capturing nearly 7 million viewers per episode last season. AMC Networks has enjoyed similar (OK, greater) success with the comics-sourced hit�The Walking Dead.

Top 5 Beverage Companies To Buy For 2015: Thomson Reuters Corp(TRI)

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.

Advisors' Opinion:

• [By Monica Wolfe]

  Thomson Reuters (TRI)

  On Feb. 11, Thomson Reuters declared a dividend of $0.330 per share, representing 3.80% dividend yield for the company. This dividend is payable on March 17 to shareholders of the record at the close of business on Feb. 24, 2014.

5 Best Media Stocks To Own Right Now: Time Warner Inc.(TWX)

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Rick Munarriz]

  Wedbush Securities analyst Michael Pachter -- a notorious bear who's been burned with his $65 price target on Netflix that he recently raised to $80 -- argued on Yahoo!'s Breakout last week that Netflix isn't a fitting rival to Time Warner's (NYSE: TWX  ) HBO because it doesn't own its original programming the way HBO does with Game of Thrones or The Sopranos.

• [By Roger Conrad]

  They've again, outspent the next—AT&T has outspent numbers three through 15 in the US communications market, and that three through 15 includes companies like Comcast (CMCSA), Sprint (S), T-Mobile USA (TMUS), Time Warner (TWX), so some rather large companies that have been making a lot of noise in the press, but AT&T continues to outspend them, outspend pretty much everybody except for Verizon—they're pretty much neck and neck.

• [By Tim Beyers]

  At a venue well known for dramatic revelations, Man of Steel director Zack Snyder made what might be the biggest reveal of all at this year's San Diego Comic-Con: Time Warner (NYSE: TWX  ) will bring Batman and Superman together in 2015.

• [By Tim Beyers]

  Promise: The bigger idea, of course, is to use television to expand the range and scope of the DC Cinematic Universe so that when Wonder Woman appears in 2015's Batman vs. Superman, a significant portion of the mythos will have already been established elsewhere. That, in turn, should make it easier for studio parent Time Warner (NYSE: TWX  ) to focus on epics rather than origin stories.

5 Best Media Stocks To Own Right Now: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Advisors' Opinion:

• [By Will Ashworth]

  The proposed merger of Comcast (CMCSA) and Time Warner Cable (TWC) will create a cable distribution colossus with 30 million subscribers. That’s almost seven times as many customers as its next biggest rival. Content providers worry that a bigger Comcast means less room for negotiation when it comes to fees.�For bigger firms such as Disney (DIS), it could actually be a blessing rather than a curse.

• [By Charles Sizemore]

  AT&T�� purchase of DirecTV is very much a ��e too��merger following the $45 billion union of Comcast (CMCSA) and Time Warner Cable (TWC) to form a TV and internet juggernaut. From the looks of things, it looks as if AT&T�� motivation was a fear of being left behind by its larger rivals. The move will massively expand AT&T�� pay TV presence; at 20 million, DirecTV has roughly four times as many TV subscribers as AT&T.

• [By Louis Navellier]

  Comcast, as you probably know, is a huge player in media, entertainment and communications. It is perhaps best known for Comcast Cable, which beats out Time Warner Cable (TWC) as the largest cable operator in the U.S.

• [By Steven Russolillo]

  By comparison, retail giant Target Corp.(TGT) has a $39 billion market cap, Yahoo Inc.(YHOO) has a $41.1 billion market value and Time Warner Cable(TWC) has a market cap of $37.6 billion.

2 Big Reasons for Ultrashort Bond Funds

With ultrashort bond funds, it all depends on the definition of modest.

We don’t cover many of these funds anymore,” said Sarah Bush, senior mutual fund analyst with Morningstar, told ThinkAdvisor recently. "Ultrashorts were yielding too little and got really small, and we just felt we needed to deploy our resources elsewhere.”

But when Bush took a second look, she found a surprise.

“The category has experienced modest inflows really since the beginning of the recovery in 2009,” she explained, adding that this includes the massive bond fund outflows seen in June.

A closer look at Morningstar data reveals modest net flows of $4.4 billion and $2.3 billion in 2010 and 2011, respectively, for corresponding total assets of $35.4 billion and $37.8 billion.

But in 2012 the asset class took off, comparatively, racking up $9.5 billion in net flows and $48.4 billion in total assets. So far, this year looks even better, with $5.4 billion in net flows and $54 billion in assets through July.

So why ultrashorts, and why now? The answer is yield, of course, and interest rates.

In an investing environment where the dual problems of low yield and increasing interest rate risk dominate headlines daily, ultrashort bond funds might be the trick.

Best Regional Bank Companies To Own For 2015

“If [investors] have a 10% or 20% allocation to cash because they’re defensive or they’re looking for better entry points into the equity or fixed income markets and they don’t want to earn zero in a money-market fund, then an ultrashort fund makes sense,” says Charles Melchreit, manager of Pioneer Investments Multi-Asset Ultrashort Income Fund (MCFRX).

Another appeal, in particular, is their flexibility.

For instance, Melchreit’s fund, co-managed with Seth Roman and Jonathan Sharkey, is “massively diversified” in that it hits a lot of different levers across a lot of different sectors.

 “I don’t think that’s as unusual now as it once was within this space," he said. "We’re looking to invest in sectors that are not terribly correlated. Most sectors have some correlation, but we’re really trying to take advantage of any imperfect correlations that we can in the short-duration space.”

The fund has a heavy focus on risk management and trying to manage net asset value volatility so it doesn’t experience massive swings.

“The ultrashort world is now using a lot of different sectors in corporates and mortgages and even bank loans, money-market instruments and cat bonds," Melchreit said, "all of which appeal to different investors and present for us as an investment manager different pools of liquidity.”

Meaning if faced with a period of high redemptions, he has a choice of which securities to sell.

---

Check out an Ultra-Strong Case for Ultra-Short Funds on ThinkAdvisor.

Is that online bargain a deal, or a steal?

Bargain hunters beware: Your online auction purchase might be stolen goods.

Retailers estimate that one-third of auction and blog sites' listings for "new in box" or "new with tags" items are actually goods that were stolen through organized retail theft or otherwise fraudulently obtained, according to a new National Retail Federation report.

Nearly two-thirds — 61.1% — of the 76 retail loss prevention executives surveyed reported seeing an increase in such "e-fencing" over the past year.

"Thieves are preying on people looking for the best price," said Rich Mellor, senior advisor for asset protection at the NRF.

What thieves pick comes down to two attributes: "small box, big value," said Mark Turnage, chief executive of OpSec Security, which has monitored online sites for stolen items on behalf of clients. Commonly stolen items include razor blades, makeup, skincare products, baby formula, over-the-counter medications and tooth-whitening strips. Thieves also lift small gadgets such as disposable cellphones, digital cameras and electric shavers.

Hot Forestry Stocks To Invest In Right Now

HACKING AMERICA: Beware of malicious ads that can harm computers without a click

CYBER THREAT: Your new Android has been hacked, now what?

PASSWORD, PIN?: Some banks are now using voice identification for security

Gift-card buyers may be an unwitting link in the retail-theft chain, too. About three-quarters of retailers told the NRF they see thieves returning stolen merchandise to get store credit, which the thieves then sell on the secondary market. Shoppers would encounter those as secondhand gift cards, probably loaded with an odd dollar amount.

Even if you're not concerned about the long-term, broader effect of organized retail theft on your wallet—retailers may account for such losses when setting prices and determining discount promotions — there are plent! y of reasons for shoppers to worry right now about whether they're buying stolen goods.

Health and safety concerns are paramount for ingested goods — including over-the-counter meds and baby formula. "You have no idea what the storage conditions have been," said Turnage. Products may be expired, or have been stored at temperatures too high or low, making them less effective and unsafe to consume, he said.

There's also a slim chance of legal consequences for possessing stolen property. "Certainly, theoretically, someone who buys stolen property from an online vendor is just as liable as someone who buys it out of the back of a truck," said Stuart P. Green, a law professor at Rutgers University. Depending on how the local or state law is written, not knowing it was stolen isn't always a defense.

That said, the odds of being arrested are low. "As a matter of enforcement, it's bound to be harder to pursue people who are doing that," said Green, author of Thirteen Ways to Steal a Bicycle: Theft Law in the Information Age. Law enforcement is more likely to go after the thieves themselves, as well as the websites facilitating the transaction.

Spotting a steal

Retailers have been working with law enforcement and various websites to reduce the number of listings involving stolen goods, Mellor said. An eBay spokesman said the company has dedicated teams to mitigate listings of stolen property and other fraud. "We utilize a combination of sophisticated detection tools, enforcement and strong relationships with brand owners, retailers and law enforcement agencies to effectively combat fraudulent activity and present our customers with a safe, trusted shopping experience," he said.

Still, it's worth approaching online purchases from unknown retailers and individuals with caution:

"The very first warning flag that should go off for the consumers is quantity," said Turnage. Someone selling one or two new items might have legit reasons—they were an unwanted (and unreturnab! le) gift,! for example. But thieves tend to list in bulk, something you'd spot looking at that seller's other current and recent listings. "Nobody goes into a store and buys two gross [i.e., two dozen dozen] and says, 'Oh, I bought too much, I'll go home and sell them online,'" he said.

Big discounts of 25% off or better can also be a red flag, said Mellor. There shouldn't be the same price cut on a brand new item as for one that's already been opened or gently used.

It can also help to scrutinize packaging, in photos and (if you do choose to buy) upon arrival. Thieves often blur out existing expiration dates or re-sticker them to make the product look current. But this tactic isn't foolproof. "The thieves are very good about changing labels on product," said Mellor.

© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Top 5 Financial Companies To Watch For 2015

Top 5 Financial Companies To Watch For 2015: Invesco Dynamic Credit Opportunities Fund (VTA)

Van Kampen Dynamic Credit Opportunities Fund (the Fund) is a diversified, closed-end management investment company. The Fund focuses to invest primarily in loan and debt instruments (and loan-related or debt-related instruments) (collectively, credit securities) of issuers that operate in a variety of industries and geographic regions located throughout the world. The Fund's investment adviser is Van Kampen Asset Management (the Adviser). The Fund's investment subadviser is Avenue Europe International Management, L.P. (the Subadviser).

The Fund will invest at least 80% of its net assets (including borrowings for investment purposes) in any combination of credit securities, including senior secured floating rate and fixed-rate loans (Senior Loans); second lien or other subordinated or unsecured floating rate and fixed-rate loans or debt, and other debt obligations, including high-yield, high-risk obligations (such as securities that are rated below investment g rade by a nationally recognized credit rating organization or unrated securities that are deemed to be of comparable quality). The Fund may also invest up to 20% of its assets in structured products, including collateralized debt and loan obligations (collectively, structured products). The Fund may also invest in swaps, including credit default, total return, index and interest rate swaps. To the extent that the Fund invests in structured products or swaps that adjust exposure to credit securities, such investments will be counted for purposes of the Fund's 80% policy.

The Fund may invest in credit securities of any credit quality, and may invest without limitation in obligations below investment grade. Any of the Fund's investments may be issued by non-stressed, stressed and distressed issuers, including issuers in bankruptc! y, provided that with respect to the portion of the Fund's assets to be managed by the Subadviser, the Subadviser will generally not inve st in securities that at the time of investment have a total! yield above the applicable Avenue-Credit Thresholds. The Fund may invest in credit securities of any maturity or duration, and although the Fund will not be managed for maturity or duration, given the nature of the Fund's portfolio, the Fund's portfolio will likely have a low average duration (generally, four years or less). In addition, the Fund may invest up to 20% of its assets in equity securities obtained through debt restructurings or bankruptcy proceedings. The Fund may utilize credit securities derivative instruments.

Advisors' Opinion:

• [By John Dowdee]

  The following 10 funds satisfied all of these conditions:

  BlackRock Float Rate Strategies (FRA). This CEF sells at a discount of 3%, which is low compared to an average premium of 2% over the past year. The distribution has been managed at 6.1% and a small amount (less than 10%) has been return of capital (ROC). However, this has not negatively affected net asset value (NAV) so has not been destructive. The fund holds 447 securities, with 90% in floating rate loans. FRA utilizes 27% leverage and has an expense ratio of 1.7%, including interest payments. Eaton Vance Floating Rate (EFR). This CEF sells at a 1% premium, which is low compared to an average premium of 5% over the past year. The distribution is 6.2%, none of which was ROC. The fund holds 800 securities, with 90% in floating rate loans. About 85% of the securities are from U.S. companies. EFR utilizes 35% leverage and has an expense ratio of 1.8% including interest payments. ING Prime Rate Tr ust (PPR). This CEF sells for a premium of 2%, which is below the average premium of 5%. It has a distribution of 6.8%, none of which was ROC. The fund has 350 holdings, virtually all in senior loans and from US companies. PPR utilizes 29% leverag! e and has! a high expense ratio of 2.1%, including interest payments. Invesco VK Dynamic Credit Opportunities (VTA). This CEF sells for a discount of 5%, which is below the average discount of 1%. It has a distribution of 7.1%, none of which was ROC. The fund has 495 holdings, with 76% in floating rate loans. About 25% of the loans are from non-US companies. VTA utilizes a relatively low 20% leverage but still has a high expense ratio of 2.1%, including interest payments. Invesco VK Senior Income (VVR). This CEF sells for a discount of 1%, which is below the average premium of 3%. It has a distribution of 7.1%, none of which was ROC. The fund has over 500 holdings, with 89% in floating rate loans. Almost all (95%) securities are from US companies. VVR ut
• [By Harry Domash, Publisher, DividendDetective and Winning Investing]

  If you're worried about rising interest rates then Invesco Dynamic Credit Opportunities, ticker (VTA), invests in below investment-grade floating rate bank loans. In other words, these are called senior loans.

  They're bank loans that adjust their payouts based on prevailing interest rates, so if interest rates go up, these loans will pay higher dividends, so this is a good hedge if you are concerned about rising interest rates.

  Another one that's really performed, and it's paying a 6.9% yield right now, Guggenheim Strategic Opportunities, ticker (GOF), that's actually Claymore Guggenheim, holds corporate and government backed, that it's mostly investment-grade and it's paying a 10.1% yield right now, which is pretty high. Those are three that I could recommend right now.

  Steven Halpern: Well, we really appreciate you joining us today and sharing your expertise. Thank you.

  Harry Domash: You're welcome.

  Subscribe to the Dividend Detective here...

source from Top Stocks Blog:http://www.topstocksblog.com/top-5-financial-companies-to-watch-for-2015.html

Buy Big Banks on Breakup Potential?

This year’s been a painful one for JPMorgan Chase (JPM), Citigroup (C) and Bank of America (BAC)–even if they’re gaining today. MKM Partner’s David Trone has the perfect prescription for upside: Break them up.

Bloomberg News

Bank of America has dropped 6.1% so far this year, while JPMorgan has fallen 7.3% and Citigroup has slipped 10%. Trone explains why he thinks Bank of America, JPMorgan and Citigroup not only should but will split up into their component parts:

…we believe the break-up of the universal banks is inevitable — not a question of “if,” but “when.” Clearly, current management teams do not agree with us, and are consistently defending the model, despite all evidence to the contrary. This simply represents the age-old “agency problem,” whereby managements do what’s best for them, not shareholders. However, in due course, we believe shareholder value will win out. We believe it is only a matter of time before activists come knocking on the door of one of the universal banks.

Hot Building Product Stocks To Buy For 2015

Trone’s recommendation comes with a caveat: Don’t expect Bank of America, JPMorgan and Citigroup to break up anytime soon. “For patient multi-year investors, we recommend the universal bank stocks because we believe they will ultimately be split-up, thus releasing significant pent-up shareholder value,” Trone says. “However, we see little chance of this emerging with the next twelve months.”

Still, he does think Bank of America, Citigroup and JPMorgan Chase can gain 20% during the next 12 months, helped by a US economy that “continues to grow at a modest pace.” He iniated all three at Buy.

Shares of Citigroup have gained 0.7% to $46.87 at 3:22 p.m., while JPMorgan Chase has risen 0.9% to $54.19 and Bank of America has advanced 0.7% to $14.64.

Qualcomm: Moving Into Wearables to Hunt for Growth

Qualcomm (QCOM) surprised everyone with its plan to enter the wearable gadgets market. It has launched the first iteration of its smart watch called Toq. The watch is designed to serve as a second display to smartphone. This can be considered a smart move looking at the woes of Intel due to a shrinking PC market.

Investors actually never thought of Qualcomm entering into the market so quickly given its deep entrenchment into the mobile computing space, just like Intel was tied up with chips & processors for the PC market and diversified very late. Perhaps, Qualcomm might be having such "smart surprises" in store for the future aimed at pleasing investors.

Strong as It Is

Qualcomm is strongly present in the mobile computing space and was an early mover in the 4G LTE connectivity field. The recent quarterly performance of the company has improved considerably. Qualcomm exceeded the consensus estimate for adjusted EPS excluding special items. The company increased its MSM shipment growth by 22% and shipped 172 million MSM (Mobile Station Modem) chips as compared to the same quarter last year.

Qualcomm's Snapdragon 800 quad core chipset supports 3G/4G LTE modem with ultra HD graphics. In addition, it also offers a better battery life and faster clock speeds of up to 2.2 GHz. This makes it popular in the high-end smartphone segment. The company will also supply Snapdragon 800 processors to Samsung for Galaxy S4 LTE-A phones.

The company is strongly attached to Apple's iPhone and iPad products as well as many Android-based devices, including the best-selling products from Samsung (OTC:SSNLF), Sony (SNE), HTC to name a few. It also surpassed Nvidia's (NVDA) Tegra line of chips in the second iteration of the Nexus 7 tablet from Google. Therefor, Qualcomm is well positioned for growth even under different competitive and market scenarios.

The deployment of 4G LTE gaining momentum in the emerging markets of China and India should push the demand for Qualcomm's Snapdragon 800 quad core processors. Qualcomm is planning to gain through its partnership with Bharti Airtel, the largest telecom operator in India. Given the fact that India has a huge telecom market with only 2% penetration of broadband service puts exciting opportunity for the company.

Moving Into More Markets

All major players in the smart devices industry are making moves to gain a foothold in the Chinese market being the largest market for smartphones. China Mobile (CHL), the world's largest telecom operator, has plans to deploy around 20,000 TD-LTE base stations by the end of 2013. It has selected Snapdragon and Gobi-based LTE-TD smart phones, since they are highly compatible with its network. Going forward this is bound to create a huge growth opportunity for Qualcomm.

The penetration of smartphones in emerging markets is extremely low at just only 10% of the total population, according to Gartner. The global smartphone demand is expected to grow at an annual compounded rate of 20% from 2012 to 2017. Gartner is expecting a huge annual increase of 67.9% for the tablets in 2013 as this segment continues to gain market share at the expense of the declining PC market.

2014 is already being forecasted as a breakthrough year for smartwatches. Qualcomm plans to launch its own smart watch called Toq in the fourth quarter of 2013. Canalys projects that smartwatches sales will be exploding by the end of 2014 when vendors will ship more than 5 million units, a 900% increase from the number of units Canalys expects vendors to ship this year.

Broadcom and NVIDIA Could Be Worries

In the wireless segment, Broadcom (BRCM) is a major competitor of Qualcomm. Around 50% of Broadcom's revenue comes from this segment. But Broadcom has already lost a huge chunk of low-cost smartphone market to Qualcomm. Qualcomm's connectivity chips were chosen for the Motorola Moto X above Broadcom's products and the Samsung Galaxy S IV Mini. In addition, Broadcom's main earning technology is 3G solutions which are expected to be replaced in the next few years by 4G LTE solutions where Qualcomm already is a leader.

Most of the analysts still remain very bullish on Broadcom even after disappointing earnings primarily because the stock is undervalued. However, one should think that if the stock is really undervalued then why has negative sentiment persisted for so long?

Broadcom's market sentiment could further deteriorate if Apple decides to use Qualcomm's connectivity chips. The new RF360 Front End Solution chip of Qualcomm is expected to allow the iPhone to run on all 2G, 3G and 4G LTE networks and thereby allow Apple to save on costs which would become critical for the mid-range/low-end market segment.

Nvidia is another competitor of Qualcomm in the mobile computing space through its Tegra processors, with the latest launch of Tegra 4. Nvidia has partnered with th Chinese smartphone manufacturer Xiaomi, which is quite popular in China through sales of its iPhone beating handset.

Xiaomi appointed Hugo Barra, of Google to lead the company's international business development and prepares to take on Apple and Samsung overseas. In a long run, Xiaomi's win is an important win for Nvidia.

Microsoft's Surface 2 tablets will also be powered by Nvidia's Tegra 4 platform. This is another important win although the Surface tablets are yet to gain popularity in the tablet market. Windows RT was a failure. There's a rumor in the tablet space that Nvidia is coming up with its own Tegra 4 powered tablet later this year.

Conclusion

In the mobile segment, Qualcomm is way ahead of peers. The company commands a major share of the global baseband market and plans to extend its expertise further by entering into the next popular emerging category of smartwatches. Therefore, investors looking for an ultimate investment opportunity in mobile must consider Qualcomm for their portfolios.

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

Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

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

MORE GURUFOCUS LINKS

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

QCOM STOCK PRICE CHART 79.88 (1y: +25%) $(function(){var seriesOptions=[],yAxisOptions=[],name='QCOM',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1369717200000,64.07],[1369803600000,64.11],[1369890000000,64.18],[1369976400000,63.48],[1370235600000,63.23],[1370322000000,63.71],[1370408400000,63.15],[1370494800000,62.97],[1370581200000,62.1],[1370840400000,62.03],[1370926800000,61.66],[1371013200000,61.11],[1371099600000,61.96],[1371186000000,61.38],[1371445200000,62.07],[1371531600000,62.38],[1371618000000,61.91],[1371704400000,60.92],[1371790800000,60.67],[1372050000000,59.885],[1372136400000,61.81],[1372222800000,61.27],[1372309200000,61.08],[1372395600000,61.09],[1372654800000,60.96],[1372741200000,60.92],[1372827600000,60.91],[1373000400000,60.95],[1373259600000,59.99],[1373346000000,59.39],[1373432400000,60.44],[1373518800000,61.3],[1373605200000,62.02],[1373864400000,61.28],[1373950800000,61.85],[1374037200000,62.65],[1374123600000,61.115],[1374210000000,61.46],[1374469200000,62.21],[1374555600000,62.3],[1374642000000,61.39],[1374728400000,63.42],[1374814800000,64.61],[1375074000000,64.24],[1375160400000,64.51],[1375246800000,64.562],[1375333200000,65.27],[1375419600000,66.75],[1375678800000,66.25],[1375765200000,65.59],[1375851600000,65.21],[1375938000000,66.35],[1376024400000,66.27],[1376283600000,66.46],[1376370000000,67.25],[1376456400000,66.96],[1376542800000,66.95],[1376629200000,66.9],[1376888400000,66.33],[1376974800000,66.71],[1377061200000,66.57],[1377147600000,67.13],[1377234000000,67.15],[1377493200000,66.95],[1377579600000,66.021],[1377666000000,66.56],[1377752400000,66.71],[1377838800000,66.28],[1378184400000,66.75],[1378270800000,67.28],[1378357200000,67.83],[1378443600000,68.02],[1378702800000,69.299],[1378789200000,70.09],[1378875600000,68.09],[1378962000000,68.81],[1379048400000,68.58],[1379307600000,68.09],[1379394000000,69.42],[1379480400000,69.64],[1379566800000,69.46],[1379653200000,69.06],[1379912400000,68.98],[1379998800000,68.51],[1380085200000,68.75],[1380171600000,68.87],[1380258000000,6! 7.38],[1380517200000,67.32],[1380603600000,67.49],[1380690000000,67.68],[1380776400000,67.11],[1380862800000,68.02],[1381122000000,67.19],[1381208400000,66.35],[1381294800000,65.71],[1381381200000,66.84],[1381467600000,67.55],[1381726800000,67.75],[1381813200000,68.17],[1381899600000,68.87],[1381986000000,68.7],[1382072400000,68.402],[1382331600000,68.77],[1382418000000,68.92],[1382504400000,67.04],[1382590800000,66.94],[1382677200000,68.27],[1382936400000,68.54],[1383022800000,68.93],[1383109200000,69.04],[1383195600000,69.49],[1383282000000,69.9],[1383544800000,69.57],[1383631200000,69.005],[1383717600000,69.74],[1383804000000,67.09],[1383890400000,67.45],[1384149600000,67.62],[1384236000000,68.51],[1384322400000,70.03],[1384408800000,71.22],[1384495200000,72.17],[1384754400000,71.94],[1384840800000,71.84],[1384927200000,71.03],[1385013600000,71.71],[1385100000000,72.96],[1385359200000,72.49],[1385445600000,73.65],[1385532000000,73.56],[1385704800000,73.58],[1385964000000,73.

IRS Says It Will Revise Rules on Political Nonprofit Groups

The U.S. Internal Revenue Service said Thursday that it will revise proposed rules governing nonprofit groups’ involvement in politics.

The rules, released last year, were an attempt to provide guidance for how much political activity groups organized under section 501(c)(4) of the U.S. tax code could engage in without risking loss of their tax exemption or being forced to reveal their donors.

The IRS disclosed in May 2013 that it gave some Tea Party groups seeking tax-exempt status extra scrutiny because of their names, not their activities. President Barack Obama forced out acting IRS commissioner Steven Miller, and several other senior executives left their jobs, including Lois Lerner, who was the agency’s director of exempt organizations.

The rules, designed to provide clearer guidelines for IRS employees, were part of the government’s response to the issue.

Some actions would be considered political involvement, including advertising, voter guides, voter-registration drives, get-out-the-vote campaigns, Internet references to candidates and some appearances by candidates at groups’ events.

Under the proposed rules, a group would risk losing its tax-exempt status by engaging in too many of those activities, though the rules didn’t define what would be considered too much.

After the IRS released the new rules, groups across the political spectrum objected with more than 150,000 comments, calling them too broad and an attack on free speech. Opponents included the American Civil Liberties Union and the American Family Association.

Republicans called on the IRS and the Treasury Department to start over. Until today, the IRS had said it was planning a public hearing in the next few months.

“It is likely that we will make some changes to the proposed regulation in light of the comments we have received,” the IRS said in a statement Thursday. “Given the diversity of views expressed and the volume of substantive input, we have concluded that it would be more efficient and useful to hold a public hearing after we publish the revised proposed regulation.”

The statement doesn’t specify how extensive the changes will be, when a new rule would be released or when it would take effect.

IRS Commissioner John Koskinen has previously said it was very unlikely that the process would be completed this year.

The 501(c)(4) groups, including Crossroads Grassroots Policy Strategies, have become increasingly prominent in U.S. elections. According to the Center for Responsive Politics, they spent $256 million on the 2012 election, more than three times what they spent in 2008.

Such groups are different from super-political action committees, or Super PACs, which disclose their donors.

The tax law says 501(c)(4) groups must be organized “exclusively” to promote social welfare. The IRS has said politics can’t be such a group’s primary purpose, leading to conflicts over how to measure politics and primary purpose.

 

Coal: To Buy or Not to Buy

There’s been a bit of bullishness creeping into the coal stocks during the last few months. Is it time for the group to rally?

Bloomberg

During the past three months, Consol Energy (CNX) has gained 11%, Peabody Energy (BTU) has risen 3.4% and Cloud Peak Energy (CLD) has dropped just 0.8%. (Arch Coal (ACI), it should be noted, has plunged 11% during that time period.) Is this the start of a good thing?

Macquarie’s Luke McFarlane and Aldo Mazzaferro see positive signs for the coal stocks:

We continue to interpret the two diverging stories in the US thermal market; with
utilities and rails believing coal is still available and being delivered, while coal
producers note higher demand and order books which are close to full…Coal producers in the [Powder River Basin] continue to see material year over year demand growth, with one noting a 30% increase in PRB utility nominations through April…

McFarlane and Mazzaferro call Consol Energy their top pick, and give Outperform ratings to Cloud Peak Energy–”a good opportunity to buy a well positioned PRB pure play heading into the summer,” McFarlane and Mazzaferro note–and Peabody Energy–”cash flows from [Peabody's PRB operations can support its depressed met operations." They give Arch Coal a Neutral rating, as they're concerned about its cash burn.

Nomura's Curt Woodworth and team have their doubts about the Powder River Basin rally:

In our view, the market has been over exuberant about the possibility of a [Powder River Basin Coal] price spike, as inventories are now simply closer to normal levels and any pockets of tightness are likely to fade by year end. As such, we believe further downside risks exist to Arch Coal and Peabody Energy.

Investors have their doubts too, by the looks of things. Shares of Peabody Energy have fallen 2.9% to $17.53 at 2:46 p.m. today, while Arch Coal has cropped 2.1% to $3.78, Cloud Peak Energy has declined 1.2% to $18.22 and Consol Energy is off 0.9% at $44.11.

Nadex Binary Options Are Probably Taxed As Swap Contracts With Ordinary Gain Or Loss Treatment

By Robert A. Green, CPA, with help from our tax attorney Mark Feldman, and Darren Neuschwander, CPA

Traders are increasingly getting involved with Nadex and other “binary options” and they've been asking us how they are taxed. Are they taxed like securities (capital gains), futures (60/40 capital gains) or swap contracts (ordinary)?

Binary options are “bets” on the direction of an underlying financial instrument or the outcome of a financial event during a time frame chosen in the bet, which could be an hour or several months or more. Picture playing roulette with the spinning wheel and the ball landing on red (you win!) or black (you lose). It's an all or nothing bet based on how much you put down.

While binary options certainly have elements of gambling, we don't think the IRS can apply gambling-loss-limitation tax treatment. Gaming commissions regulate gambling on games of chance, whereas the SEC and CFTC regulate financial exchanges, including Nadex. We consider binary options on regulated exchanges like Nadex to be another faction of the ever-expanding trading marketplace. Clearly there are risks, especially when you fray from registered brokers and regulated exchanges.

Public companies and hedge funds often use swap contracts by making bets or swap payment agreements to manage risk. What's the difference? Most “derivatives” are privately negotiated agreements, often handled by investment bankers (yet Dodd-Frank now wants them to be cleared on futures exchanges). Nadex binary options originate on the exchange with price discovered and regulated clearing. For “risk on and risk off” trades, a manager can protect his portfolio without rushing to sell underlying securities, options or futures positions, which could cause a further drop in price. Binary options have a seat at the table.

Tax treatment is unclear
Unfortunately, the IRS has not issued specific guidance on tax treatment of binary options. Nadex does not provide tax information. Nadex says the CFTC designates its binary options as “swap contracts.” While a regulator's statements are informative, they are not dispositive for tax treatment.

Regulators weigh in
Read “SEC warns investors about binary options." It includes a good explanation of how binary options work. According to the article, “Binary options are securities in the form of options contracts whose payout depends on whether the underlying asset — for instance a company's stock — increases or decreases in value. In such an all-or nothing payout structure, investors betting on a stock price increase face two possible outcomes when the contract expires: They either receive a pre-determined amount of money if the value of the asset increased over the fixed period, or no money at all if it decreased.”

The SEC called binary options “securities” and “option contracts.” It's also possible they call swaps securities, too. The CFTC regulates Nadex and swaps and the CFTC labels Nadex binary options swap contracts.

Probable tax answer
We think the probable answer is binary options should be treated like swap transactions with ordinary gain or loss treatment.

Binary options resemble swap contracts; they don't involve ownership or trading of securities, futures, equity options or other types of “capital assets.” Each party makes a bet on a future development or event, with one party agreeing to make one or more fixed payments to the other party if the future event transpires. They are different from capital assets, where one party sells a capital asset with the other party investing in it. The investor owns an asset, which he can sell at any time for a capital gain or loss. The asset's price fluctuates based on market movements. Once a binary option contract is executed, the trigger for which party wins or loses is determined and the payment and “expiry” expiration date is fixed.

While many swaps contracts generally require multiple payments, binary options may only have one swap payment and that difference is not a material factor to us.

“If it were a swap payment, then it would seem to me that it should be treated the way a periodic or non-periodic swap payment is treated (ordinary income) rather than the way a termination payment is treated (capital gains under Section 1234A),” our tax attorney Mark Feldman says. “A termination payment (for all parties to a notional principal contract) is defined as ‘a payment made or received to extinguish or assign all or a proportionate part of the remaining rights and obligations of any party under a notional principal contract' and includes a payment made between the original parties to the contract (an extinguishment), a payment made between one party to the contract and a third party (an assignment), and any gain or loss realized on the exchange of one notional principal contract for another. This is not a payment to close out a position. Rather, the deal all along involved just one payment.”

A better label would be “binary swaps”
The Internal Revenue Code refers to “options” in many contexts. We believe the term “option” should have the same meaning throughout the Internal Revenue Code. Section 1234(a) refers to “an option to buy or sell property.” Binary options and swaps do not involve an option to buy or sell property.

Labeling the product “binary options” misleads users and confuses the tax treatment issue. Binary options are very different from equity options (securities) and non-equity options (Section 1256 contracts), which are both capital assets.

When you buy an equity option, you own the right — deemed a capital asset — to purchase a stock at a set price on a set date in the future. You can either sell that option before its expiration for a capital gain or loss or hold through expiration, either letting the option contract expire worthless or exercising your right to buy the stock. There is ownership of an asset, transferability, fluctuation in price and optionality.

Optionality means “The value of additional optional investment opportunities available only after having made an initial investment. The short-term payoff for this is modest, but the optionality value is enormous.” We don't think binary options have optionality per this definition; there is no further investment opportunity from the fixed payments conditional on future events or developments. There are no further strings or investments attached.

Here's another example of confusing labels: “Single-stock futures” are taxed as securities, not futures.

Can you use Section 1256 treatment?
If you have significant income from binary option transactions, you may seek to use Section 1256 to reduce your tax rate up to 12% using the lower 60/40 capital gains tax rates.

The general approach to getting into Section 1256 is to first look on the list of what's included: regulated futures contracts, broad-based indexes and options on those indexes, options on futures, certain foreign currency contracts and non-equity options. The ticket to entry to Section 1256 is often non-equity options. If an option is not an equity option, then perhaps it's a non-equity option. If we believed a binary option were a true option, we might be tempted into this line of reasoning. But we feel binary options aren't options.

The Dodd Frank tax reform law from 2010 called for swap contracts negotiated privately to be cleared on a qualified board of exchange. The Dodd Frank law clearly states that swap contracts may not use Section 1256 tax treatment. (Read our September 2012 blog “Tax Treatment for Swaps.”)

“The Nadex binary options are a challenge to tax advisors because they have certain characteristics of Section 1256 contracts (such as being listed on a qualified board or exchange) but the primary regulator, the CFTC, treats the contracts as swaps and not options and that is a very substantial hurdle to overcome for Section 1256 contract,” NYC tax attorney Roger D. Lorence says.

Tax compliance for binary options
The good news is taxpayers may deduct ordinary losses from gross income with exemption from capital loss limitations and wash sale loss deferral rules. It's generally a big tax benefit to deduct your losses when incurred.

It's like the default tax treatment for forex contracts in Section 988, which also have ordinary gain or loss treatment directly from gross income. As we point out in our extensive forex tax content, if a trader lacks trader tax status, he may wind up with some wasted losses if he has negative taxable income. In that case, he wouldn't have a business NOL or a capital loss carryover. Short-term capital gains are taxed like ordinary income.

There's more good news on accounting and reporting: Summary reporting is allowed. There's no need for line-by-line reporting as is required for securities transactions reported on Form 8949.

U.S. brokers probably won't include binary options on Form 1099-Bs since they are not “covered securities” or Section 1256 contracts — securities are reported on one 1099B and Section 1256 contracts are reported on a different 1099. Equity options are supposed to be covered securities starting with 2014 under the cost-basis-reporting transition rules, although it's more likely to be extended to 2015. Foreign brokers don't issue 1099s.

Swaps require mark-to-market tax treatment.

Trader tax status issues
Can trader tax status (business expense treatment) be used for expenses related to a high volume and frequency of binary options transactions, perhaps done on an intra-day basis? Probably. The expiry date could be in one hour and Nadex allows traders to enter and exit existing contracts. Regular trader tax status rules should apply.

Bottom line
The conservative approach is to treat binary options as swap contracts with ordinary gain or loss treatment. There's no capital asset involved, so why attempt to use capital gain or loss treatment? The IRS guards against people using Section 1256 when they should not as those tax breaks are highly coveted. So unless the IRS provides clear guidance allowing Section 1256 on binary options, why take that undue risk for back taxes, interest and penalties?

More reading

We recommend these blog articles, too. We focused on tax treatment, not risks and scams in the binary options marketplace. For sure, stay clear of the Internet sites that aren't registered and regulated and heed the warnings of the regulators. Nadex seems safe.

http://financesonline.com/binary-options-trading-nadex-or-nada-sec-warns/ has this quote up top. “To date, only one entity that offers binary options has been granted status as a designated contract market — the North American Derivatives Exchange, Inc (Nadex). All other entities that are offering binary options that are commodity options transactions are doing so illegally.”

http://financesonline.com/binary-options-trading-an-all-or-nothing-gamble/ and http://www.forbes.com/sites/investor/2010/07/27/dont-gamble-on-binary-options/

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

Posted-In: Options Markets

Originally posted here...

  Most Popular What Are The Two Most Exciting 3D Printing Stocks? 7 Stocks To Watch Ahead Of Lockup Expirations And PDUFA Dates Will Google's Project Ara Smartphone Give Apple A Run For Its Money? Shares Of Dish Respond To Rumors Of Verizon Soft Talks Morgan Stanley Makes The Case For Tesla Intercept Pharmaceuticals Tumbles On Safety Concern Allegations Related Articles () GoPro Going Public: Will You Invest? - Real Time Insight Simon Strengthens Ties with Customers - Analyst Blog CACI Secures New Army Contract - Analyst Blog McDermott Inks Gulfport Spoolbase Deal - Analyst Blog Global Payments Expands with Auto Dealer - Analyst Blog Headwaters Acquires Gerard Assets for $28M - Analyst Blog Around