Should You Let Your Winners Run Or Take Profits Off The Table?

Carl Icahn had big things in mind when he invested in Netflix Netflix last year at the behest of two hungry young investors helping manage his money, but even the irascible billionaire admits that a 457% gain exceeded his expectations. His response to the windfall is a lesson for investors big and small.

Icahn revealed last week that he slashed his Netflix holdings by more than half – over the objections of the two money managers who prompted the initial investment, son Brett Icahn and David Schechter – even though he still believes the stock could go higher.

"[A]s a hardened veteran of seven bear markets I have learned that when you are lucky and/or smart enough to have made a total return of 457% in only 14 months it is time to take some of the chips off the table," Icahn wrote.

Considering the broader market's big gains – the S&P 500 sits near record levels and is up almost 24% this year – and the tremendous advances in certain stocks like Netflix, investors are no doubt wondering if they should follow Icahn's lead or let their winners run.

Best Tech Companies To Watch For 2014

Most professional money managers, like Icahn, will tell you that a blanket "let your winners run" philosophy is no kind of investment strategy. The general argument is that prudent investing requires a price target and the discipline to hit eject (or at least pull out profits) when a stock reaches that figure.

5 Best Biotech Stocks To Buy Right Now

Shares of Life Technologies (NASDAQ: LIFE  ) jumped in January, when the company announced it was looking for a potential buyer, and it may now be close to a decision, with solid offers having come in both from Blackstone Group (NYSE: BX  ) and Thermo Fisher Scientific (NYSE: TMO  ) . What will this biotech decide, and how will it affect investors? In this video, Motley Fool health-care analyst David Williamson gives us a breakdown of the offers on the table, and how investors could be affected depending on the outcome.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

5 Best Biotech Stocks To Buy Right Now: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

5 Best Biotech Stocks To Buy Right Now: Pharmacyclics Inc (PCYC)

Pharmacyclics, Inc., incorporated on April 19, 1991, is a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. The Company's clinical development and product candidates are small-molecule enzyme inhibitors designed to target biochemical pathways involved in human diseases. As of June 30, 2011, it had three drug candidates under clinical development and a number of preclinical lead molecules. This includes an inhibitor of Bruton�� tyrosine kinase (Btk) (PCI-32765) in Phase II studies in hematologic malignancies; a Btk inhibitor lead optimization program targeting autoimmune indications, an inhibitor of Factor VIIa (PCI-27483) in a Phase II clinical trial in pancreatic cancer, and a histone deacetylase (HDAC) inhibitor (PCI-24781) in Phase I and II clinical trials in solid tumors and hematological malignancies as of June 30, 2012.

As of June 30, 2012, the Company developed ibrutinib, which has demonstrated clinical activity and tolerability in Phase I and Phase II clinical trials in a variety of B-cell malignancies, including chronic lymphocytic leukemia (CLL) and a number of non-Hodgkin�� lymphoma (NHL) subtypes. CLL, mantle cell lymphoma (MCL), follicular lymphoma (FL), diffuse B-cell lymphoma (DLBCL) and multiple myeloma (MM) are specific indications of its current or planned Phase Ib/II and Phase III development program. had development programs for B-cell malignancies and autoimmune diseases. For malignant indications it has developed PCI-32765, which has demonstrated clinical activity and tolerability in Phase I and Phase II clinical trials in a range of B-cell malignancies, including chronic lymphocytic leukemia (CLL) and a number of non-Hodgkin�� lymphoma (NHL) subtypes. CLL, mantle cell lymphoma (MCL), follicular lymphoma (FL), diffuse large B cell lymphoma (DLBCL) and multiple myeloma (MM) are specific indications of its Phase II development. It has developed an assay! to measure occupancy of Btk in PBMCs using a cell-permeable fluorescently-labeled derivative of PCI-32765.

Factor VII is an enzyme that becomes activated (FVIIa) by binding to the cell surface protein tissue factor (TF), a protein found in the body that helps to trigger the process of blood clotting in response to injury. TF is over expressed in many cancers including gastric, breast, colon, lung, prostate, ovarian and pancreatic cancers. In these tumors, the FVIIa/TF complex induces intracellular signaling pathways by activating protease activated receptor 2 (PAR-2), another cell-surface protein. This in turn increases the expression of interleukin-8 (IL-8), a protein produced by white blood cells and other immune cells in response to pathogenic stimulation, and vascular endothelial growth factor (VEGF), a signal protein produced by cells that stimulate the growth of blood vessels. Both proteins play an important role in tumor growth and metastases as well as angiogenesis (growth of new blood vessels). FVIIa/TF complex also initiates the coagulation (a process by which blood forms clots) processes implicated in the high incidence of thromboembolic (the process by which the blood clots within a blood vessel) complications seen in patients with TF-expressing cancers. Thromboembolic events are a cause of death in patients with cancer and anticoagulant treatment has been shown to improve survival in a variety of cancers (Klerk et al. JCO. 2005).

PCI-27483 Factor VIIa Inhibitor

The Company�� Factor VIIa inhibitor PCI-27483 is a first-in-human small molecule inhibitor that selectively targets FVIIa. As an inhibitor of FVIIa, PCI-27483 has two potential mechanisms of action: inhibition of intracellular signaling involved in tumor growth and metastases and inhibition of early coagulation processes associated with thromboembolism.

Factor VIIa PCI-27483 Clinical Development Update

A multicenter Phase I/II of PCI-27483 in patients with locally a! dvanced o! r metastatic pancreatic cancer that are either receiving or are planned to receive gemcitabine therapy has completed enrollment. The Phase II portion of the study randomized patients to receive either gemcitabine alone or gemcitabine plus PCI-27483 (1.2 mg/kg twice daily). The objectives are to assess the safety of FVIIa Inhibitor PCI-27483 at pharmacologically active dose levels, to assess potential inhibition of tumor progression and to obtain initial information of the effects on the incidence of thromboembolic events. Due to a paradigm shift away from the use of gemcitabine alone for the treatment of pancreatic cancer, enrolling patients in this randomized study has been challenging. PCYC is evaluating other alternatives for development of this agent.

A multicenter Phase I/II of PCI-27483 in patients with locally advanced or metastatic pancreatic cancer that are either receiving or are planned to receive gemcitabine therapy has completed enrollment. The Phase II portion of the study randomized patients to receive either gemcitabine alone or gemcitabine plus PCI-27483 (1.2 mg/kg twice daily). PCI-27483 is covered by United States patents and patent applications and counterpart patents and patent applications in fourteen ex-United States territories, including Europe, Canada, Mexico, Japan, China, India, South Korea, Australia and Brazil.

Advisors' Opinion:

• [By Dan Caplinger]

  Yet J&J isn't satisfied with what it already has. Last week, the company joined with Pharmacyclics (NASDAQ: PCYC  ) to seek approval for their lymphoma drug ibrutinib. J&J will get a 50% share of any profit from the venture, and J&J cited a Piper Jaffray estimate that just one of its indications could produce sales of more than $4 billion.

• [By Sean Williams]

  We've witnessed first-hand what a crapshoot the space can be. Four years ago,�Pharmacyclics (NASDAQ: PCYC  ) looked like just another biotechnology company that was going to waste away into nothing with its share price trading for less than $1. In the years since, it's forged nearly a $1 billion licensing partnership with Johnson & Johnson (NYSE: JNJ  ) for its relapsed/refractory mantle cell lymphoma and chronic lymphocytic leukemia drug hopeful, Ibrutinib, and delivered some of the strongest overall response rates ever witnessed in trials for these two diseases. Shares of Pharmacyclics closed yesterday above $80 per share.

• [By Sean Williams]

  What's perhaps more remarkable is the fact that Pharmacyclics (NASDAQ: PCYC  ) has three of those 23 approved breakthrough therapy designations for its lead experimental drug, ibrutinib. Ibrutinib, which is also licensed to Johnson & Johnson (NYSE: JNJ  ) subsidiary Janssen Pharmaceuticals, was designated as a breakthrough therapy for patients with chronic lymphocytic leukemia, mantle cell lymphoma, and Waldenstrom's macroglobulinemia. The big potential indication here is CLL, which is the most common adulthood leukemia and occurs in 113,000 people in the U.S. By comparison, MCL diagnoses number about 5,000 each year.

10 Best Value Stocks To Watch For 2014: Cannabis Science Inc (CBIS.PK)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

5 Best Biotech Stocks To Buy Right Now: InterMune Inc.(ITMN)

InterMune, Inc., a biopharmaceutical company, engages in the research, development, and commercialization of therapies in pulmonology and fibrotic diseases. In pulmonology, the company focuses on therapies for the treatment of idiopathic pulmonary fibrosis (IPF), a progressive and fatal lung disease. It markets pirfenidone, an orally active drug that inhibits the synthesis of TGF-beta under the Esbriet name in the European Union, as well as in a Phase III clinical trial in the United States. Pirfenidone is also approved for the treatment of IPF in Japan, where it is marketed by Shionogi & Co. Ltd. under the Pirespa trade name. The company?s research programs focus on the discovery of small-molecule therapeutics and biomarkers to treat and monitor serious pulmonary and fibrotic diseases. InterMune, Inc. was founded in 1998 and is headquartered in Brisbane, California.

Advisors' Opinion:

• [By Brian Pacampara]

  What: Shares of biotechnology company Intermune (NASDAQ: ITMN  ) surged 13% today after its quarterly results and outlook topped Wall Street expectations.

• [By Rich Smith]

  On Thursday, the Securities and Exchange Commission charged a former vice president of finance, accounting officer, and controller of InterMune (NASDAQ: ITMN  ) with insider trading.

• [By Sean Williams]

  InterMune (NASDAQ: ITMN  )
  InterMune shares may have exploded higher by 30% over the past week, but there's certain to be a lot of nail-biting on the part of shareholders as we head into earnings season. The reason has been the slow acceptance of the company's idiopathic pulmonary fibrosis drug, Esbriet, based on its pricing in the EU. In previous quarters Esbriet sales have disappointed in a big way, but are expected to rise by 134% to nearly $13 million from last year, though losses are still anticipated to come in at $0.70 per share. Following its recent pop, Esbriet sales had better hit the mark, otherwise InterMune shareholders are probably going to be in for a long day.

• [By Lee Jackson]

  InterMune Inc. (NASDAQ: ITMN) continues to soar on the strength of global sales of its top drug Esbriet. The company is still seeking FDA approval to sell Esbriet in the United States. Before approval can take place, the company is awaiting top-line results from the phase 3 ASCEND study. InterMune expects to release these results during the second quarter of 2014. This could be a huge catalyst. UBS has a $15 price target, which should rise soon, and the consensus is at $16.

5 Best Biotech Stocks To Buy Right Now: Dyadic International Inc (DYAI)

Dyadic International, Inc. (Dyadic), incorporated in September 2002, is a holding company. The Company is a global biotechnology company. The Company has operations at the United States and the Netherlands. Dyadic uses its technologies to conduct research and development (R&D) and commercial activities for the discovery, development, manufacture and sale of enzymes and proteins for the bioenergy, industrial enzyme, and biopharmaceutical industries. The Company derives all of its revenues from the licensing of its technologies, the sale of its enzymes and conducting research and development (R&D) activities for third parties. The Company operates in two segments: the United States operations and The Netherlands operations. The United States segment includes a subsidiary in Poland.

The United States operating segment is a developer, manufacturer and distributor of enzyme products, proteins, peptides and other bio-molecules derived from genes and a collaborative licensor of enabling technologies for the development and manufacturing of biological products and use in R&D. The Netherlands operating segment is also a researcher and developer of enzyme products, proteins, peptides and other bio-molecules derived from genes and, to date, has mainly invested in R&D activities.

Dyadic�� R&D activities focus on its fungal strains and associated technologies. Dyadic uses its Trichoderma and C1 fungal strains in the production of its industrial enzymes. Dyadic manufactures and sells liquid and dry enzyme products to global customers for use within the animal feed, pulp and paper, starch and alcohol, food and brewing, textiles, and biofuels industries.

Dyadic also utilizes a technology platform based on its patented and C1 fungus (the C1 Platform Technology), which enables the development and manufacture of proteins and enzymes for diverse market opportunities. The C1 Platform Technology can also be used to screen for the discovery of novel genes and proteins. The C1 Platf! orm Technology also has the potential of developing and producing other biological products such as antibodies, vaccines, proteins and polypeptides for the biopharmaceutical industry.

Consumer Reports pans Lexus IS 250, Infiniti Q50

Consumer Reports says the heavily advertised 2014 Lexus IS 250 and technology-laden Infiniti Q50 are among the worst expensive sport sedans.

That means they'll drop off the lists of the many shoppers who closely follow the magazine's ratings in their search for a vehicle.

Lexus IS 250:

Though the IS 250 was ranked "good" overall, it had "the worst road test score posted by any Lexus sedan in recent memory. Other competitors posting higher overall road test scores include the BMW 328i, Mercedes-Benz C250, Lincoln MKZ 2.0 EcoBoost and Volvo S60 T5," CR says.

The publication chose to test the IS 250 rather than its sportier sibling, the IS 350, because it is the version most people buy. Lexus says about 80% of buyers go for the less expensive 250, which has a smaller, more economical engine.

ANOTHER VIEW: USA TODAY Test Drive calls IS 350 a strong performer

CR says it "found the Lexus IS 250 is neither sporty nor luxurious."

Optional, weight-adding, all-wheel-drive and the modest, 204-horsepower of the Consumer Reports test car meant that "acceleration lacks punch," while gas mileage was "disappointing at 21 mpg overall in CR's own tests"

CR also criticized IS 250's handling and ride as "short on finesse, with vague-feeling steering that doesn't telegraph much feedback. Road noise is elevated, and the ride is neither plush nor tied-down."

It found the car cramped. "The interior is very tight, even when considered against the modest standards for sports sedans, with a narrow cabin, wide center console and large overhanging dashboard."

And it did not like the console-mounted controller for the infotainment screen: "In addition, the IS 250's controls now include the fussy, distracting mouse-like controller found in other Lexus models."

Inifiniti's redesigned 2014 Q50 sedan went on sale in the U.S. since July at a slightly lower price than the outgoing model. It is the new version of the current G37 and is the first Infiniti renamed in the move to all Q (car) and QX (crossover) names.  Infiniti WieckFullscreen In addition to the gasoline model, the Q50 will offer this Sport Hybrid model, a hybrid designed for performance and sportiness, but still is expected to be rated 36 mpg on the highway.  Infinti WieckFullscreen The Q50 has three new Infiniti tehcnologies: an adaptive steering system with electronic control, a camera-based active lane control system and a predictive forward collision warning system that senses the relative velocity and distance the vehicle ahead -- and also the vehicle ahead of that one.  Infinti WieckFullscreen The Inifiniti Q50's interior features upscale design and materials.  InfinitiFullscreen The Q50's interior includes a version of the "zero gravity" seats first used in the redesigned 2013 Nissan Altima -- seats developed using NASA research into the neutral posture the body adopts in a zero gravity environment.  Infiniti WieckFullscreen The Q50 will have the first application of "InTouch," Infiniti's next-generation communications technology with dual touch-screens.  InfinitiFullscreen The new Q50 offers a 3.7-liter, 328-hp. V6 with rear- and all-wheel drive and a 302-hp., 3.5-liter hybrid. With its 67-hp electric motor, the performance=oriented hybrid system's net horsepower is 360.  Infinti WieckFullscreen The Q50 sport sedan offers 13.5 cubic feet of trunk space.  Infinti WieckFullscreen The distinctive front light pod includes LED headlights as well as LED running lights.  Infinti WieckFullscreen The rear LED combination lights on the new Q50.  Infiniti WieckFullscreen The Q50 went on sale first in the U.S. and is being rolled out for global markets.  Infiniti WieckFullscreen While the 2014 Q50 was aimed to be the redesign of the 2013 G37 shown here and replace it in the lineup, Infiniti has decided to cut the price and keep making and selling the G sedan, too, to compete with cheaper entry level models from rivals such as BMW.  Infiniti WieckFullscreenLike this topic? You may also like these photo galleries:ReplayAutoplayShow ThumbnailsShow CaptionsLast SlideNext Slide

Infiniti Q50:

The Q50 replaces the G37 in the brand's line, as Infiniti shifts all its models to "Q" names.

While CR rated the car "very good," and was "very quick, even with the added weight of the optional all-wheel-drive system," the magazine says, the Q50 "has taken a step back from its excellent predecessor," and ranked near the bottom among its premium sports sedan rivals.

"The Infiniti G has been one of Consumer Reports' highest-rated sedans for many years, but after its 2014 redesign and transition to the new Q designation, this car seems to have lost its way," said Jake Fisher, director of CR's automotive testing.

CR says: "The Q50 isn't as much fun to drive as the G37. Handling is mundane, due in part to dull steering.

"The underwhelming driving experience strips the car of much of its sporty legacy. The Q50 also doesn't ride well and isn't particularly quiet.'

Infiniti has promoted the car's high-tech luxury, but CR ! found "it! s new InTouch dual-screen controls are slow to respond, and interior quality is nothing special."

Even if the cars had scored better, they could not have made CR's "recommended" list because they are too new to have the required average or better reliability in CR's annual reader ownership surveys, in addition to doing well in CR's tests and getting good scores in government and industry crash tests.

Rieder: Can rich tech guys save journalism?

At a conference last month, journalist and entrepreneur Steve Waldman had an interesting suggestion for financing nonprofit news sites: How about if winners in the new economy reached for their checkbooks?

Waldman nominated Apple, Google and Verizon. But some new economy winners are already deeply involving themselves in trying to secure journalism's future.

Amazon founder and CEO Jeff Bezos has purchased The Washington Post. And now eBay founder Pierre Omidyar is planning to launch an entirely new news organization starring journalist Glenn Greenwald, of Edward Snowden leak fame.

Since the digital revolution blew up the economic model of traditional newspaper journalism, there has been endless discussion about where the money might come from to foster the public service journalism that's critical in a democracy.

Well, part of the answer seems to be: very rich dudes. And rich digital dudes look like a particularly promising subset. There is no shortage of Silicon Valley luminaries who have become very, very wealthy. And clearly some of them are journalistically inclined.

Omidyar's interest in journalism has been clear for quite some time. He has supported various initiatives through philanthropy and three years ago launched Honolulu Civil Beat, an online, for-profit news outlet that covers Hawaii.

In a post on his Omidyar Group website, Omidyar said that over the summer he, too, had explored the possibility of buying The Washington Post. That was the catalyst for his new venture. It got him thinking about what he could do if he used a similar amount of money not to buy the Post but rather to build something from scratch. (Bezos bought the Post for $250 million.)

And while Greenwald is a high-profile get, Omidyar is not thinking just about investigative reporting. He says the as-yet-unnamed news outlet "will cover general interest news, with a core mission around supporting and empowering independent journalists across many sectors and beats. The team will bui! ld a media platform that elevates and supports these journalists and allows them to pursue the truth in their fields."

Omidyar stresses that the initiative is in its early stages. He says he doesn't know yet "how or when it will be rolled out, or what it will look like."

As the eBay founder explored his plunge into news, he decided to talk to Greenwald to determine what journalists like him "needed to do their jobs well." While Greenwald has been reporting for the British newspaper The Guardian and previously wrote for the website Salon, he is much more an independent operative than a typical staff reporter.

Turned out that Greenwald, his collaborator Laura Poitras and Jeremy Schall of The Nation magazine were also contemplating creating a journalism entity. So it made perfect sense for Omidyar to team up with them.

Greenwald, who calls his new if undefined gig a "once-in-a-career dream journalistic opportunity," is an example of a relatively new digital era phenomenon, the journalist as franchise. In July, ESPN lured statistics whiz Nate Silver away from The New York Times. Silver had won acclaim for his spot-on predictions about the 2012 presidential election on his FiveThirtyEight blog. And speaking of dream jobs, Silver's mission is to put together a team to cover sports, culture, economics and tech, not to mention appear on ABC News in campaign season.

Omidyar told New York University journalism professor Jay Rosen, who writes the PressThink blog, that he and Greenwald haven't even talked about what the celebrity journalist's role will be. They just know they want to do this together.

Omidyar also told Rosen that the enterprise would be digital-only, and that his determination to launch it was intensified by concern over the Obama administration's harsh crackdown on leaks and the revelations of wholesale surveillance by the National Security Agency.

(I contacted Omidyar for an interview, but a spokeswoman told me that he wasn't granting any aside from h! is conver! sation with Rosen, whom he has consulted about the start-up. She referred me to Rosen's and Omidyar's posts.)

So, is this ownership by rich dudes a good thing or a bad thing? Depends on the rich dude. The Omidyar/Greenwald collaboration sounds very exciting. For one thing, $250 million is serious money. You can buy a lot of journalism with that.

Omidyar seems seriously interested in furthering the cause of good journalism. And Greenwald is obviously very smart and very driven. Yes, he has a political agenda, which is always troubling. But he has done an enormous public service with his work on the Snowden revelations about government snooping.

It reminds me of Bob Woodward's defense of using information from anonymous sources. The issue, he says, isn't the type of source, it's the quality of the information.

But the rich dude model certainly has its pitfalls. I started my journalism career at The Philadelphia Inquirer when it was owned by Walter S. Annenberg, later, the U.S. ambassador to the Court of St. James. It was a mediocre-at-best paper that Annenberg used to reward his friends and punish his enemies.

Today, the Inquirer is owned by not just one but by six rich dudes. And the ugly situation there, with bitter infighting pitting owner against owner and publisher against editor, is truly disheartening.

But make no mistake: The Omidyar emergence, along with forays into the newspaper business by Bezos, investor nonpareil Warren Buffett and free-spending Orange County Register owner Aaron Kushner, are very hopeful signs.

Why active equity managers should be scared of Gundlach, Gross

If actively managed equity mutual fund managers aren't shaking in their boots yet, maybe they should be, because bond superstars Bill Gross and Jeffrey Gundlach seem to have figured out this whole beating-the-stock-market thing.

Both Mr. Gross' Pacific Investment Management Co. and Mr. Gundlach's DoubleLine Capital have made pushes into actively managed equities in the last three or so years. But where Pimco has really shined, and DoubleLine is likely to, is with enhanced index funds.

These enhanced index funds combine alternatively weighted stock indexes, or so-called “smart” beta, with an absolute return fixed-income strategy managed by the bond gurus. The strategy gives the funds two potential sources of alpha that can produce returns that beat a vanilla stock benchmark.

So far, the strategy has been shooting the lights out, even though it's largely gone unnoticed.

10 Best Small Cap Stocks To Buy Right Now

The $3.1 billion Pimco Fundamental IndexPlus Absolute Return Fund (PXTIX) has a five-year annualized return of 35.42% as of Nov. 21, far outpacing the S&P 500's 20.17% annualized return and the 24.83% returns of the fundamentally weighted Research Affiliates index it uses as its foundation.

In fact, it ranks as the top-performing large-cap fund over that time period, according to Morningstar Inc.

This year, even with head winds facing the fixed-income portion of the strategy, the Pimco fund has a 31.71%, ahead of its underlying index's 31.17% return and the S&P 500's 28% return.

Those winds haven't made much of a dent because the bond portion of the strategy is looking only to outperform cash, or zero at today's interest rates, so Mr. Gross doesn't have to take on excessive duration to generate a positive return.

DoubleLine just launched its first enhanced index fund, the DoubleLine Shiller Enhanced Cape Fund (DSENX), at the end of October, so it doesn't have much of a track record yet. But, if you think the manager who's added 300 basis points of alpha to the Barclays U.S. Aggregate benchmark over the past three years can beat cash, it's a good bet he's going to add a similar boost to the fund's underlying index.

The Shiller Barclays CAPE U.S. Sector Index on which the DoubleLine fund is based hasn't been around as long as the Research Affiliates fundamental indexes, but an exchange-traded note that tracks it is up 30.52% year-to-date, suggesting it has the same potential to beat the S&P 500.

The two alternatively weighted strategies actually are quite similar. They take different routes, but essentially each is looking for undervalued companies.

The Research Affiliates fundamental index looks at factors such as book value, cash flow and reven! ue to find companies that are likely to outperform.

The Shiller Barclays CAPE U.S. Sector Index uses the research of Nobel laureate Robert Shiller to determine the four sectors of the U.S. stock market that are most undervalued and invests across them equally.

It's important to remember that even though the funds are managed primarily by bond gurus and invest in bonds (the indexes are bought through total return swaps), these are equity funds at heart and have equity risk attached to them.

The Pimco Fundamental IndexPlus Absolute Return Fund lost 43% in 2008, for instance.

Still, when it comes to beating stock benchmarks over a longer time frame, it seems like an adviser might be better off with a bond manager than a stock manager.

Top Biotech Companies To Invest In 2014

NEW YORK (TheStreet) -- The broader market was essentially unchanged on a slow Monday of trading. 

Regarding the market entering "bubble territory," Tim Seymour, managing partner of Triogem Asset Management, said on CNBC's "Fast Money," that the market isn't necessarily in a "bubble" yet, but that it is starting to become a bit worrisome. 

He added that the amount of IPOs flooding the market could be a cause for concern. 

Josh Brown, a financial adviser at Ritholtz Wealth Management, reminded investors that the retail "mom and pop" players haven't been in the market for a while, so the rush to get in isn't that surprising. 

Guy Adami, managing director of stockmonster.com, said there are still a few solid secular trends playing out and he liked Visa (V) and Mastercard (MA). He warned investors to be careful with biotech stocks.  Seymour said the valuation for consumer staples is getting stretched, especially compared to their growth rates. He likes companies with exposure to emerging markets, like Pepsico (PEP) and Mondelez (MDLZ), and would be a seller of Doctor Pepper Snapple (DPS) and General Mills (GIS).  Brown called consumer staples the "ultimate irony" because it is considered the "safe-haven" of equities, but will likely feel a lot of pain when interest rates rise and money starts to flow out the stocks.  Liz Dunn, associate director of Macquarie Capital, was a guest on the show who said J.C. Penney (JCP) has enough liquidity to make it though most of 2014 and needs to maintain positive comp-sales. She added that she's cautious on Kohl's (KSS) and preferred more luxurious brands like Polo Ralph Lauren (RL), Coach (COH), and Nordstrom (JWN). 

Top Biotech Companies To Invest In 2014: Navidea Biopharmaceuticals Inc (NAVB)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-center Phase II trial and three multi-center Phase II trials inv! olving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has been studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Advisors' Opinion:

• [By Keith Speights]

  3. Navidea Biopharmaceuticals (NYSEMKT: NAVB  )
  Some investors were likely befuddled by Navidea's stock action earlier this year. The company received FDA approval in March for Lymphoseek, its radiopharmaceutical agent used for imaging lymph nodes in patients with breast cancer or melanoma. That was great news, but shares dropped quickly and still haven't returned to previous levels.

• [By Sean Williams]

  Diagnostics can also play an important role in early and late-stage breast cancer diagnoses. Navidea Biopharmaceuticals (NYSEMKT: NAVB  ) had Lymphoseek, its external lymph-node imaging and intra-operative lymphatic mapping diagnostic device, approved by the Food and Drug Administration earlier this year to help doctors stage cancer. Discovering whether breast cancer has invaded adjacent lymph nodes has never been easier or safer thanks to Lymphoseek, and it can dramatically aid physicians in determining the best course of action for breast cancer patients.

• [By Sean Williams]

  Another prime example here would be Navidea Biopharmaceuticals' (NYSEMKT: NAVB  ) Lymphoseek which is an injectable agent used in external lymph-node imaging and intra-operative lymphatic mapping. In English this means it will dramatically improve the staging and treatment options for patients with breast cancer. Being that breast cancer was also listed as a commonly misdiagnosed cancer, this is a big step in the right direction for patient care.

Top Biotech Companies To Invest In 2014: Merck & Company Inc.(MRK)

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company?s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women's health and endocrine. This segment also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines. Its Animal Health segment discovers, develops, manufactures, and markets animal health products. This segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fish. The Consumer Care segment develops, manufac tures, and markets over-the-counter, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment?s foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Advisors' Opinion:

• [By Dividend]

  Merck (MRK) has a market capitalization of $138.39 billion. The company employs 81,000 people, generates revenue of $47.267 billion and has a net income of $6.299 billion. Merck�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.343 billion. The EBITDA margin is 47.27 percent (the operating margin is 18.49 percent and the net profit margin 13.33 percent).

Top 10 Performing Stocks To Buy Right Now: Telik Inc (TELK)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Top Biotech Companies To Invest In 2014: Biogen Idec Inc(BIIB)

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Its marketed products include the AVONEX for the treatment of relapsing multiple sclerosis (MS); RITUXAN for treating relapsed or refractory, CD20-positive, and B-cell Non-Hodgkin?s lymphoma (NHL); TYSABRI to treat relapsing MS; FUMADERM for the treatment of severe plaque psoriasis in adult patients; and FAMPYRA, an oral compound for the improvement of walking in adult patients with MS with walking disability. Biogen Idec Inc.?s products under Phase III consist of PEGylated interferon beta-1a designed to prolong the effects and reduce the dosing frequency of interferon beta-1a; BG-12 for the treatment of MS; Daclizumab, a monoclonal antibody in relapsing MS; Long-lasting factor IX and VIII fusion protein for the treatment of hemophilia B; GA101, a monoclonal antibody for t he treatment of chronic lymphocytic leukemia and NHL; and Dexpramipexole, an orally administered small molecule for the treatment of amyotrophic lateral sclerosis. The company?s Phase I clinical trial products include Anti-LINGO for use in multiple sclerosis, Neublastin for use in neuropathic pain, CD40L for use in systemic lupus erythematosus, ANTI-TWAEK humanized monoclonal antibody for TWEAK, and BIIB037 for use in Alzheimer's disease; and Phase II clinical trial product comprises OCRELIZUMAB, a humanized monoclonal antibody for treating CD20. It has collaboration agreements with Genentech, Inc.; Elan Pharma International, Ltd; Acorda Therapeutics, Inc.; Portola Pharmaceuticals, Inc.; Swedish Orphan Biovitrum AB; Abbott Biotherapeutics Corp; and Vernalis plc. The company was formerly known as IDEC Pharmaceuticals Corporation and changed its name to Biogen Idec Inc. in November 2003. Biogen Idec Inc. was founded in 1985 and is headquartered in Weston, Massachusetts.

Advisors' Opinion:

• [By James E. Brumley]

  When investors think of companies fighting the good fight in the multiple sclerosis space, Biogen Idec (NASDAQ:BIIB) or Novartis (NYSE:NVS) almost always come to mind. And well they should. Gilenya, an MS therapy from Novartis, generated revenues of $1.2 billion last year, while multiple sclerosis drugs Tysabri, Avonex, and most-recently, Tecfidera, from Biogen Idec are all current or future blockbusters. Tysabri generated sales of $1.6 billion in 2012, and the recently-approved Tecfidera saw sales of nearly $200 million in Q2 (and it's still gaining steam). There's always something bigger and better than those MS drugs in the works, however, and TNI Biotech Inc. (OTCMKTS:TNIB) is one of the names NVS and BIIB need to be proverbially watching over their shoulders.

Top Biotech Companies To Invest In 2014: Amarantus Bioscience Holdings Inc (AMBS)

Amarantus BioScience Holdings, Inc., formerly Amarantus BioSciences, Inc., incorporated on March 22, 2013, is focuses on developing intellectual property and proprietary technology in order to develop drug candidates and diagnostic blood tests to diagnose and treat human diseases. The Company owns the intellectual property rights to a therapeutic protein known as Mesencephalic-Astrocyte-derived Neurotrophic Factor (MANF), owns the intellectual property rights to biomarkers related to oncology and neurodegeneration named BC-SeraPro and NuroPro respectively, has a license to an Alzheimer�� disease blood test named LymPro, and owns a number of proprietary cell lines called PhenoGuard. MANF was the first therapeutic protein discovered from a PhenoGuard Cell Line. In December 2012, the Company acquired neurodegenerative diagnostic portfolio from Power3 Medical Products. On March 22, 2013, the Company was merged with into Amarantus Bioscience Inc.

The Company also owns an inventory of 88 cell lines that Amarantus refers to as PhenoGuard Cell Lines. MANF is a protein that corrects protein misfolding. The Company�� MANF product development effort is centered on a therapy for Parkinson�� disease.

Advisors' Opinion:

• [By Bryan Murphy]

  I've taken bullish swings on - and been wrong to do so - Amarantus BioScience, Inc. (OTC:AMBS) before. My most recent bullish call on the budding biotech name was in April... a rally that fizzled shortly after I said it was just getting started. Somehow though, I find myself coming back to AMBS as a breakout candidate. This time, however, it's for a slightly different reason.

• [By Bryan Murphy]

  Two weeks ago I penned some bullish thoughts on Amarantus BioScience, Inc. (OTC:AMBS). In simplest terms, I liked the way the stock had spent some time in consolidation mode, and looked like was testing the upper boundary of that zone - I figured a breakout from AMBS was imminent. So I waited... and waited.... and waited. Nothing. A week and a half later, I let the stock fall off my mental radar. As it turns out, I should have been a little more patient. Amarantus BioScience finally did the deed yesterday, and is following through today.

Don't Get Greedy (or euphoric) With Galena Biopharma (GALE)

The last two weeks have been absolutely fantastic ones for Galena Biopharma Inc. (NASDAQ:GALE). Shares have soared from $2.37 to the current price of $3.32 - a 40% pop - rewarding investors who had been patiently waiting through late October for the runup to take hold. Congratulations if that's you. But, if that was you, then now might be a great time to take the money and run with the trade, as GALE looks poised to make a sizeable pullback. More on that in a moment.

If the ticker GALE rings a bell, it might be because yours truly posted a conditionally-bullish outlook on the biotech stock back on November 11th. It was all but bullish. The only final condition I needed to see to deem the stock as trade-worthy was a move above the horizontal ceiling at $2.49. As it turns out, Galena Biopharma shares closed above that line the very next day (the 12th), which would have triggered any buy orders that had been on the fence up until that point. Sure enough, that move was the beginning of a good-sized rally, culminating in today's 10% surge.

It's easy to get excited about the rally now, and perhaps even jump on board. But, that would be a big mistake. In fact, now's the time to be getting off the Galena Biopharma Inc. train if you were lucky enough to heed my advice a couple of weeks ago.

I know what you're thinking - I'm crazy for getting off now. Just hear me out.

First and foremost, the sheer size of the gain from GALE over the past couple of weeks is inviting to a lot of would-be profit-takers. Rather than ride out a dip, it might be prudent to take what you can get while you can get it. If you're still a fan after a pullback, you can always step back into Galena Biopharma later, and at a much lower price to boot.

The second reason here and now is a good time to walk away with your gain on GALE is the fact that the stock is close to (though not right at) a couple of different possible resistance lines. One of them is the horizontal resistance line stemming from the early-2012 peak around $3.54. The other technical resistance line is the rising ceiling that tags the two major peaks we've seen this year. Granted, Galena Biopharma Inc. shares aren't quite there yet (the $3.54 area for both technical ceilings), but there's not enough distance between where we are now and there to merit risking staying in an overbought stock that could begin to struggle real soon.

For long-term fans and followers of GALE, don't worry - this is strictly a short-term call on the stock. After a good pullback, Galena is going to be buy-worthy again, as it's still in a broad uptrend fueled by rising support lines and a "two steps forward and one step back" pattern.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter.

Yahoo adds $5 billion to stock buyback

Yahoo CEO Marissa Mayer has announced a $5 billion buyback expansion, which will add to current shareholder goodwill.

NEW YORK (CNNMoney) Yahoo CEO Marissa Mayer has given shareholders a reason to smile: The company is boosting its stock buyback by another $5 billion.

Shares of Yahoo rose 1.7% in after-hours trading Tuesday on the announcement. The company also revealed it will sell $1 billion in debt, with notes that mature in 2018. About $200 million of the proceeds from that debt will be used for stock buybacks.

Yahoo's (YHOO, Fortune 500) shares are already up 74% so far this year, and the $5 billion buyback expansion will likely add to that shareholder goodwill.

With Tuesday's announcement, Mayer & Co. are doubling the separate $5 billion stock buyback that Yahoo embarked upon in May 2012. Yahoo said in its last quarterly earnings statement that as of Sept. 30, it had repurchased all but $324 million of that amount.

Related story: How Yahoo's acquisitions fit into Mayer's master plan

That original buyback program included Yahoo repurchasing 40 million of its shares from activist investor Third Point. Yahoo also helped fuel that buyback by selling part of the stake it owns in Chinese e-commerce giant Alibaba.

Top 10 High Tech Stocks For 2014

Mayer's appointment as CEO helped inject excitement into Yahoo, and moves like buybacks and big acquisitions have helped boost the company's profile. But stock analysts still see Yahoo's existing 24% stake in Alibaba as the major driver of Yahoo's own stock value.

  Forget Marissa. Alibaba fuels Yahoo surge

Alibaba, whose nine distinct businesses span all parts of the e-commerce chain, is preparing for an initial public offering -- plans that have helped keep Yahoo's stock high.

Top Penny Stocks To Invest In 2014

It was an ugly day from the get-go, and we have none other than Japan to thank for today's sizable swoon in the S&P 500 (SNPINDEX: ^GSPC  ) .

Many investors had expected the Bank of Japan to provide further easing measures, but outside of announcing a $1.4 trillion stimulus program two months ago, it�didn't offer any additional assurances to investors. That didn't sit particularly well with U.S. investors, who are already concerned that the Federal Reserve is going to roll back its $85 billion in bond purchases sooner rather than later and slow the U.S. economy to a crawl.

By the time roll call was done at the end of the day, the optimists were notably absent, with the S&P 500 falling by 16.68 points (-1.02%), to close at 1,626.13. In spite of today's negativity, three stocks decisively bucked the trend to the upside.

Video game and gaming accessories retailer GameStop (NYSE: GME  ) once again topped the list, up 7.8%, after an official announcement from Microsoft (NASDAQ: MSFT  ) that it will not charge users a fee to play used games on its next-generation console, the Xbox One. This news comes on the heels of Sony�also announcing that it would allow users to play used games on its new PlayStation 4. This is a key win for GameStop which generates a vast portion of its profits from the purchasing and reselling of used games. In addition, it also clears the way for next-generation console sales -- such as the Xbox One -- to soar as penny-pinching gamers will no longer have to worry as much about paying top dollar for new games.

Top Penny Stocks To Invest In 2014: Smith Micro Software Inc.(SMSI)

Smith Micro Software, Inc. designs, develops, and markets software products and services primarily for the mobile computing and communications industries worldwide. The company operates in two segments, Wireless, and Productivity and Graphics segments. The Wireless segment develops mobile connectivity, mobile information management, and mobile security solutions, including QuickLink Mobile that provides mobile users to connect a notebook or other wireless device to wireless wide area networks (WWANs) and wireless local area networks (WLANs) or Wi-Fi hotspots; QuickLink Mobility suite, which allows connectivity for the user operating on WWANs, corporate local area networks (LANs), and Wi-Fi networks; and QuickLink Media for managing the media on the mobile devices. It also provides SendStuffNow, which secures cloud-based large file delivery solution; Device Management suite that provides intelligent, automated mobile device provisioning, and configuration; and push-to-talk, visual voicemail, and mobile video solutions. The Productivity and Graphics segment develops various software products for the consumer, prosumer, and professional markets. It provides StuffIt Deluxe, a lossless compression solution for documents and media; CheckIt Diagnostics and CheckIt Netbook suite, a diagnosis and troubleshooting solution for hardware and system problems; Poser, a solution for creating 3D character art and animations; Anime Studio, an animation tool for professional and digital artists; and Manga Studio, a solution for creating manga and comic art. This segment distributes its products through online stores, and third-party wholesalers, retailers, and value-added resellers. The company serves mobile network operators, original equipment manufacturers, device manufacturers, and enterprise businesses, as well as directly to consumers. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.

Top Penny Stocks To Invest In 2014: Sirius XM Radio Inc.(SIRI)

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Michael Lewis]

  Industry juggernaut Liberty Media (NASDAQ: LMCA  ) is a busy, busy organization -- acquiring and spinning off companies at an impressive clip. While it has recently taken the reins over satellite-radio company Sirius XM (NASDAQ: SIRI  ) , it has also spun out the largest premium cable company available, Starz (NASDAQ: STRZA  ) . Liberty gives investors plenty of options (no pun intended) to evaluate with its myriad of subsidiaries, not to mention the parent company itself. And still, the company has a sizable cash hoard and the ability to tap capital markets for another substantial acquisition. Though at this point it is mere speculation, where could Liberty be heading next?

• [By Rick Munarriz]

  Investors continue to warm up to Sirius XM Radio (NASDAQ: SIRI  ) , and that's bad news for those holding the 380.3 million shares sold short.

• [By Bill Maurer]

  Sirius XM (SIRI):

  More than 27 million shares of Sirius were covered early in July, continuing the recent downward trend, as seen below. Since short interest hit a high of more than 414 million in February, 88.4 million shares have been covered, more than 21%. Short interest in Sirius is at its lowest point in 8 months.

• [By Rick Munarriz]

  Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ: SIRI  ) moved sharply higher on the week, climbing 10% to close at $3.72. The media darling's gain was well ahead of the general market.

Best Stocks To Watch Right Now: Flexsteel Industries Inc.(FLXS)

Flexsteel Industries, Inc., together with its subsidiaries, engages in the manufacture, import, and market of residential and commercial upholstered and wooden furniture products in the United States. Its upholstered and wooden furniture products include sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture. The company distributes its products for use in home, office, hotel, and other commercial applications through its sales force and various independent representatives, as well as to various national and regional chains. Flexsteel Industries, Inc. was founded in 1929 and is based in Dubuque, Iowa.

Advisors' Opinion:

• [By Dividends4Life]

  Memberships and Peers: LEG is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: Hooker Furniture Corp. (HOFT) with a 2.4% yield, Flexsteel Industries Inc. (FLXS) with a 2.7% yield and Ethan Allen Interiors Inc. (ETH) with a 1.4% yield.

• [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 Flexsteel Industries (Nasdaq: FLXS  ) , whose recent revenue and earnings are plotted below.

Top Penny Stocks To Invest In 2014: Computer Sciences Corporation(CSC)

Computer Sciences Corporation provides information technology (IT) and professional services to governments and commercial enterprises. The company?s IT outsourcing services comprise operating customer?s technology infrastructure, including systems analysis, applications development, network operations, desktop computing, and data center management services; business process outsourcing; managing transactional business functions for clients, such as procurement and supply chain, call centers and customer relationship management, credit services, claims processing and logistics. It also offers cloud computing and cyber security protection services. In addition, the company provides range of services in the areas of infrastructure as a service, software as a service (SaaS), business process as a service, platform as a service, and other technologies. Further, its IT and professional services consist of systems integration, including designing, developing, implementing, and i ntegrating information systems; and management consulting, technology consulting, and other professional services, consist of advising clients on the strategic acquisition and utilization of IT and on business strategy, security, modeling, simulation, engineering, operations, change management, and business process reengineering. Additionally, the company licenses software systems, including SaaS offerings for the financial services and other industry-specific markets; and provides a range of end-to-end business solutions. It has its operations primarily in North America, Europe, Asia, and Australia. The company was founded in 1959 and is based in Falls Church, Virginia.

Advisors' Opinion:

• [By Rich Smith]

  The biggest of these contracts, a sizable $179.9 million, one-year award with the potential to swell to $899.5 million if the four "option-year" extensions are exercised, is to be split among 13 separate firms:

  Booz Allen Hamilton (NYSE: BAH  ) CACI (NYSE: CACI  ) Technologies Computer Sciences Corp (NYSE: CSC  ) General Dynamics (NYSE: GD  ) One Source Honeywell (NYSE: HON  ) Technology Solutions Engility Corp. Lockheed Martin Science Applications International Corp. URS Federal Services and four privately held firms.

  Under the awarded indefinite-delivery/indefinite-quantity (IDIQ), cost-plus-fixed-fee, performance-based umbrella contract, all 13 firms will be able to compete to perform task orders for the U.S. Navy, providing "integrated cyber operations services" to Space and Naval Warfare Systems Center Atlantic.

• [By Rich Smith]

  Among the larger contracts awarded was a $157.3 million maximum cost-plus-fixed-fee contract hiring Computer Sciences Corporation (NYSE: CSC  ) subsidiary DynPort Vaccine Company LLC to develop a "prophylactic and medical countermeasure to prevent the effects of organophosphorus nerve agents" -- essentially, an antidote to nerve gas.

Top Penny Stocks To Invest In 2014: Crown Crafts Inc.(CRWS)

Crown Crafts, Inc., through its subsidiaries, offers infant and toddler products primarily in the United States. Its products include crib and toddler bedding, blankets, nursery accessories, room d

Top Penny Stocks To Invest In 2014: Wonder Auto Technology Inc.(WATG)

Wonder Auto Technology, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of electrical parts, suspension products, and engine components. It offers starters, alternators, engine valves, and tappets in the People?s Republic of China, South Korea, and Brazil, as well as airbags and seatbelts in People?s Republic of China. The company?s products are primarily used in a range of passenger and commercial automobiles. It also manufactures and sells rectifier and regulator products for use in alternators; and various rods and shafts for use in shock absorbers, alternators, and starters. Its customers include automakers, engine manufacturers, and auto parts suppliers. Wonder Auto Technology, Inc. is headquartered in Jinzhou City, the People?s Republic of China.

Top Penny Stocks To Invest In 2014: Ruth's Hospitality Group Inc.(RUTH)

Ruth?s Hospitality Group, Inc., together with its subsidiaries, operates restaurants in the United States and internationally. It operates the Ruth?s Chris Steak House, Mitchell?s Fish Market, Columbus Fish Market, Mitchell?s Steakhouse, and Cameron?s Steakhouse restaurant concepts in the full-service dining industry. The company?s restaurants cater to families, special occasion diners, and business clientele. As of December 27, 2009, it owned or operated 152 restaurants, including 64 company-owned Ruth?s Chris Steak House Company restaurants, 66 Ruth?s Chris Steak House franchise restaurants, 19 company-owned Mitchell?s Fish Markets, and 3 company-owned Mitchell?s Steakhouse restaurants. The company was formerly known as Ruth?s Chris Steak House, Inc. and changed its name to Ruth?s Hospitality Group, Inc. in February 2008. Ruth?s Hospitality Group, Inc. was founded in 1965 and is headquartered in Heathrow, Florida.

Advisors' Opinion:

• [By Seth Jayson]

  When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Ruth's Hospitality Group (Nasdaq: RUTH  ) .

• [By Rick Aristotle Munarriz]

  AP, Rockstar GamesGrand Theft Auto V has been a big winner for Take-Two Interactive. When it releases its earnings this week, we'll find out just how big. You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From earnings reports out of Apple to a deal on burritos on Halloween, here are some of the items that will help shape the week that lies ahead on Wall Street. Monday -- An Apple a Day: Last Tuesday Apple (AAPL) had the ear of consumers as it introduced new iPads, iMacs, and an updated operating system. Monday afternoon it will be time to sway investors with its fiscal fourth quarter report. Apple is still the top dog in consumer electronics, but iPad, iPod, and Mac sales have been slipping lately. Apple's iPhone is the only product category growing, and the end result is that analysts see flat revenue growth at Apple on declining profitability. Apple's quarter ended with the welcome news that it had sold 9 million iPhone 5s and iPhone 5c devices in their initial weekend of availability. Now it's time to see if it was enough to save Apple's quarter. Tuesday -- Game On: After years of sluggish sales the video game console industry showed signs of life last month. Take-Two Interactive's (TTWO) Grand Theft Auto V was a smashing success, helping push the industry to a rare monthly gain. Things will get even more interesting next month when the Xbox One and PlayStation 4 hit the market. The market will get a good read on the state of the industry on Tuesday as Take-Two Interactive and the larger Electronic Arts (EA) report fresh earnings. It may be too early for either company to have reliable projections on how the new consoles will fare, but any insight would be incremental at this point. Wednesday -- Face to Facebook: One of last year's most prolific IPOs was Facebook (FB). The leading social networking website operator went public at $38, but a few months later the stock was -- like th

Top Penny Stocks To Invest In 2014: Trailer Bridge Inc.(TRBR)

Trailer Bridge, Inc., an integrated trucking and marine freight carrier, provides freight transportation services between the continental United States, Puerto Rico, and the Dominican Republic. It provides services through southbound containers and trailers, as well as through marine vessels that are configured to carry 48 inch and 53 inch long, and 102 inch wide high-cube equipment. The company also involves in moving new and used automobiles, non-containerized or freight not in trailers, and freight moving in shipper owned or leased equipment. It offers highway transportation services in the continental United States; and marine transportation services between Jacksonville, Florida, San Juan, Puerto Rico and Puerto Plata, and the Dominican Republic. The company also provides rail transportation services. In addition, it engages in chartering its vessels that are not in liner service to third party operators. The company ships furniture, consumer goods, raw materials for manufacturing, electronics, new and used automobiles, and apparel to Puerto Rico; healthcare products, pharmaceuticals, electronics, shoes and recyclables from Puerto Rico; raw materials for manufacturing to the Dominican Republic; and apparel, raw materials for manufacturing, and recyclables from the Dominican Republic. As of December 31, 2010, it operated a fleet of 141 tractors comprising of 79 company owned units and 62 leased and owner operator units; 2 736' triple-deck ro/ro ocean-going barges and 5 triplestack box carriers; and 3,957 high cube containers, 3,157 chassis, 164 high-cube trailers, and 299 vehicle transport modules, as well as leased 435 chassis and 531 high-cube containers. Trailer Bridge, Inc. was founded in 1991 and is headquartered in Jacksonville, Florida.

Q&A with Commerce Secretary Penny Pritzker

Penny Pritzker, an entrepreneur who launched Classic Residence by Hyatt among other companies and whose family co-founded Hyatt hotels, has been U.S. Commerce secretary since June. Last week, she unveiled the Commerce Department's "open for business" agenda aimed at growing jobs and improving the Obama administration's relationship with businesses.She spoke with USA TODAY reporter Paul Davidson about her vision. Excerpts from the interview, edited for space and clarity.

Q. Businesses have long complained of high taxes and excessive federal regulations. Your new slogan, "Open for Business," suggests you're trying to do things differently and strengthen ties to the business community. How so?

A. Why has there been this kind of frustration level and how do we change the perception? Because the reality is that what the business community is interested in is trade, immigration reform, corporate tax reform, greater investment in innovation, digital access, infrastructure — things like that. The issues that the business community is concerned with and where the administration is focused are not that different. It's the perception.

What was interesting to me is 98% of the people I met (while visiting businesses nationwide) came with an open mind and said this is a new day, this is a new Commerce secretary. So what I wanted to do is say I am your chief commercial advocate within the Administration. Tell us what your issues are and we'll see if we can help you. And we're going to be customer-focused.

Q. One priority you've set is closing the skills gap by funding programs that better match workers with open jobs. How is that different from what you're doing today?

A. Skills training needs to be industry led. Businesses need to define what they need so training providers can offer up the right training. That has not necessarily been the case. We have to train people for jobs that are open. One of the things I heard from business leaders around the country is, "I'm struggling to ! find a work force so I can grow."

One thing I've learned is that the solutions are local. Either regions or counties or states have to come together and decide where are they focused. And they need to get the business community and trainers to come together and say here are the things that we need. Here's the curricula, the credentials, the career pathway. And they need to be clear about it. And it needs to be demand driven. And frankly one of the challenges is that workforce funding today is not very flexible.

Q. Economic development efforts have been criticized as the government picking winners and losers and often getting it wrong. You say that one of your planned investments in manufacturing will transform economic development by making federal agencies more responsive to localities. How will this be different?

A. Say you're a local area. You may need funding for infrastructure, you may need R&D for a university, you may need training, you need different kinds of development support (to attract businesses). It might be the mayor and universities and the local transportation authority and various training organizations. Put together a vision for your area so that economic development funding is coordinated and not piecemeal. So when federal government is giving a grant or some kind of support it's not a bridge to nowhere — it's part of an overall strategic plan.

Q. Speaking of infrastructure, President Obama, as well as both Democrats and Republicans in Congress, say the country badly needs to upgrade its infrastructure to improve business investment and the economy. But how is that going to happen, especially with Congress still focused on cutting spending?

A. What President Obama has suggested as part of the business tax reform is a one-time (tax reduction) that goes with (bringing foreign earnings back to the U.S.). He's saying let's take some of that (tax income) and spend it on infrastructure.

Where we have money is with digital infrastructure (fro! m the 200! 9 economic stimulus). We've laid over 100,000 miles of broadband across the country — putting in the kind of infrastructure that would not otherwise get done in the private sector.

Q. President Obama has talked about streamlining regulations but businesses often complain that they're becoming more cumbersome, especially with new environmental rules. What are you doing to get rid of unnecessary regulations?

A. The president has a regulatory look-back initiative. There's been 500 initiatives taken under that effort with about $10 billion of positive impact.

What we're doing here at Commerce are two major regulatory efforts. One is patent and trade. We're trying to work down our regulatory backlog (of patents) so we can become more effective and efficient at giving clearer patents so they're less vulnerable to litigation and also give people their patents more quickly.

The second is around export control reform. For certain items in the U.S. you need a license to export. We are taking over thousands and thousands of items that are thought of as having a national security issue, making them easier to get licenses for.