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.