SEC’s White Pleads for Advisor Exam Funds; Rep. Waters ‘Pushing Hard’ for User Fees Bill

As Securities and Exchange Commission Chairwoman Mary Jo White gave lawmakers on Tuesday stark statistics about the limited number of examiners the agency has to oversee advisors, Rep. Maxine Waters, D-Calif., said that she was “pushing very hard” to secure support for her user fees bill to fund advisor exams.

During her testimony before the House Financial Services Committee, White reiterated the agency’s need for adequate resources.

“I need funding to carry out my job, which I do not have now,” White told lawmakers. “Bottom line is that we are under-resourced for the responsibility that we have, and it’s a great concern to me.”

White underscored the importance of boosting the number of advisor exams, stating that from fiscal 2001 to fiscal 2014, advisors’ assets under management jumped almost 200% to $55 trillion. In 2004, the SEC, she said, “had 19 examiners per trillion dollars in investment adviser assets under management. Today, we have only eight.”

Last year, White said that the SEC was in a position to only examine 9% of registered investment advisors. “More coverage is plainly needed, as the industry itself has acknowledged,” she said.

In fiscal year 2013, examiners conducted approximately 1,615 examinations, including 438 broker-dealers, 964 investment advisors, 99 investment company complexes, 42 transfer agents, 17 clearing agencies and five municipal advisors. The staff also conducted 50 market oversight program inspections.

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Last year, White also said that the SEC filed 140 actions against investment advisors, “several” of which resulted from risk-based investigations, which she described as “proactive measures to identify misconduct at an early stage so that timely action can be taken and investor losses minimized.”

But White told ThinkAdvisor in a recent interview that while the risk-based exams allow the agency to be “a lot smarter” in singling out advisors to examine, she said “that’s just not sufficient coverage.”

President Barack Obama’s 2015 budget proposal would give the SEC $1.7 billion, a 26% boost from the agency’s 2014 enacted level, and would allow the agency to add 316 staffers to the agency’s Office of Compliance Inspections and Examinations, with 240 of those examiners devoted solely to overseeing advisors.

The SEC’s fiscal year 2015 budget request, White told lawmakers, “would permit the SEC to increase its examination coverage of investment advisors who everyday investors are increasingly turning to for investment assistance with retirement and family needs.”

Rep. Waters’ user fees bill, the Investment Adviser Examination Improvement Act of 2013, H.R. 1627, would allow the SEC to collect user fees to fund advisor exams. Waters, ranking member on the committee, reintroduced the bill last April; it has garnered little support among the Republican-controlled committee.

Neil Simon, vice president of government affairs for the Investment Adviser Association, said in early March that IAA and other planning groups are “working hard” to get a bipartisan user fees bill introduced in the Senate that mirrors Waters’ bill.

Rep. Spencer Bachus, R-Ala., the former chairman of the House Financial Services Committee who now serves as chairman emeritus, told White during the Tuesday hearing that despite his failed attempts to get a bill passed supporting a self-regulatory organization to help boost advisor exams, that she continue exploring options to increase advisor exams.

The "advisor community," Bachus said, "seems to embrace" the user fees concept. "I would urge you to continue to keep this [advisor exams issue] as a priority, and that all of us will work together to resolve this."

During the nearly three-hour hearing, White also said the she has spoken with Labor Secretary Thomas Perez about the SEC’s fiduciary rulemaking process as well as the department’s rule to amend the definition of fiduciary under the Employee Retirement Income Security Act.

Rep. Gwen Moore, D-Wis., told White that while the DOL appears to be “plowing ahead” on its fiduciary rule, “it’s my opinion that there’s more expertise within the SEC” and the two agency’s rules “should be harmonized.”

Moore asked White if the SEC is providing its expertise to the DOL. White replied that the SEC is providing its expertise concerning impacts of a DOL fiduciary rulemaking on the broker-dealer model. “I’ve ratcheted up that collaboration” between the SEC and DOL, White said, adding however that “at the end of the day, we are two different agencies” operating under two different statutes.

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Check out Mary Jo White: The 2014 IA 25 Extended Profile on ThinkAdvisor.

Have Investors All Gone Completely Mad?: StockTwits

NEW YORK (TheStreet) -- A wild ride in stocks today saw more brutally painful losses for the names hit hardest recently -- yet also powerful bounces far off the day's lows.

A quick perusal of sentiment scores for some popular names leads one to ask: who's right?

Many stocks have witnessed ugly declines in recent weeks, yet bullish sentiment remains stubbornly elevated. Something's got to give. Are the remaining bulls about to capitulate and send these stocks even lower? Or have the weak hands already puked, leaving these stocks in the stewardship of the smartest and strongest (read: non-leveraged, better capitalized) remaining players?

Let's discuss some stocks in need of more definitive signals: Facebook (FB) is 22% off highs set in early March. The stock broke to its lowest levels since the peak this morning. Yet sentiment scores in at 82% bullish, in fact higher than two weeks ago! Twitter  (TWTR) is 45% off highs set in December, and also touched new "bear market" lows this morning. Yet bulls have actually been increasing their level of bullishness in recent weeks -- weighing in today at 73%!

Stock quotes in this article: FB, TWTR, FEYE, PLUG 

Sentiment has been eroding slightly in FireEye  (FEYE). Yet that sentiment is far less harsh than the gut-wrenching way in which its share price has plummeted -- down 60% since its highs less than eight weeks ago!

Granted, Plug Power  (PLUG) had an astonishingly fast run-up in price from December through early March. But today, investors are smarting from a 60% pullback since those early March prices. Yet, bullish sentiment clocks in at 75%!

Much has been written about John Q. Public and his general apathy towards the stock market since the 2008 to 2009 financial wipeout. This obviously doesn't jibe with stock market indices more than doubling during the five years since then. On the flip side, we're seeing individual stocks maintaining rather bullish sentiment scores, despite suffering extremely painful losses. Who's right? Is everyone wrong? Have we all lost our minds? Follow me on StockTwits: @chicagosean At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: FB, TWTR, FEYE, PLUG 

Can Pfizer Discover Higher Prices?

With shares of Pfizer (NYSE:PFE) trading around $29, is PFE an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pfizer is a biopharmaceutical company that discovers, develops, manufactures, and sells medicines for people and animals worldwide. The company manages its operations through five segments: Primary Care; Specialty Care and Oncology; Established Products and Emerging Markets; Animal Health and Consumer Healthcare, and Nutrition. Pfizer's main products include human and animal biologic and small molecule medicines and vaccines, nutritional products, consumer healthcare products, and products for the prevention and treatment of diseases in livestock and companion animals. Illness and disease is something that plagues people and animals around the world. Pfizer is in constant development, attempting to improve its products in order to help people and animals struggling around the world. So long as health is a main concern for people and animals, Pfizer stands to see significant profits.

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T = Technicals on the Stock Chart are Strong

Pfizer stock has been on a strong path towards higher prices in recent years. The stock is now trading at price levels not seen since the mid-2000s and does not show significant signs of slowing. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Pfizer is trading slightly above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Pfizer options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Pfizer Options	22.97%	66%	63%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
July Options	Flat	Average
August Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Pfizer’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Pfizer look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	58.33%	358%	-10.42%	30.30%
Revenue Growth (Y-O-Y)	-12.37%	-6.65%	-15.85%	-8.66%
Earnings Reaction	-4.46%	3.20%	-1.28%	1.39%

Pfizer has seen improving earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about Pfizer’s recent earnings announcements.

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P = Excellent Relative Performance Versus Peers and Sector

How has Pfizer stock done relative to its peers, Merck (NYSE:MRK), Sanofi (NYSE:SNY), Novartis (NYSE:NVS), and sector?

	Pfizer	Merck	Sanofi	Novartis	Sector
Year-to-Date Return	16.03%	16.19%	12.68%	13.60%	14.35%

Pfizer has been a relative performance leader, year-to-date.

Conclusion

Pfizer provides discovers and develops valuable pharmaceutical products for consumers and animals all around the world. The stock has been on a powerful surge higher and is now trading at price levels not seen since the mid-2000s. Over the last four quarters, investors have had mixed feelings about the company, as earnings have improved and revenues have been decreasing. Relative to its peers and sector, Pfizer has been a year-to-date performance leader. Look for Pfizer to continue to OUTPERFORM.

Oldsmobile's gone 10 years, but all's not…

LANSING, Mich. — The car, like the brand, like the plant, is a collective memory.

Ten years ago Tuesday, a dark cherry Alero sedan drove off the line at what was then General Motors Corp.'s Lansing Car Assembly plant. It was the last Oldsmobile, the sendoff to a nameplate founded here more than a century ago by the son of a machinist.

It was a bitter farewell, but one tempered with the promise of new auto jobs here for years to come in the form of new plants making other GM brands. Oldsmobile, a pioneer in the business of making cars, had watched its sales slump and its models become ordinary. They simply weren't distinct enough to stand out from GM's other car lines or draw younger buyers.

Many criticized the Detroit automaker's decision to kill the Oldsmobile division and thought dropping other brands made more sense. But GM had been forging ahead with its decision long before the shutdown.

Lansing had been synonymous with Oldsmobile since 1897, when Ransom Eli Olds founded the Olds Motor Vehicle Co. after experimenting with horseless carriages in his father's River Street shop. Olds' original company would become GM's second brand, after Buick, in 1908.

2004: Last Oldsmobile rolls off the line
2000: GM to phase out Oldsmobile

Oldsmobile lives these days in Boomers' garages, dated photographs, curated museums and the stories of old-timers who still say, years after they retired and long after the plants came down, that they worked for Oldsmobile — not GM.

"The name is fading. You don't see Oldsmobiles anymore. And in the town that created them, you're getting generations now who have no frame of reference for it," said Diana Tarpoff, an East Lansing, Mich., resident and Olds' great-granddaughter. "You're going to have a whole new generation very soon who has no memory of it."

Diana Tarpoff of East Lansing, Mich., is one of R.E. Olds' great-granddaughters and president of the R.E. Olds Foundation, which is celebrating its 100th year.(Photo: Greg DeRuiter, Lansing (Mich.) State Journal)

On a recent weekday afternoon, Steve Delaney flipped through historical Oldsmobile photos in several three-ring binders at a table in a mostly empty Harry's Place, a neighborhood bar and restaurant across the street from GM's old Fisher Body plant.

Out the window, the grassy remnants of the demolished plant stand empty.

"Growing up here, I never intended to work for Oldsmobile. I didn't want to work at the factory," said Delaney, now an electrician at GM's Lansing Delta Township assembly plant and a United Auto Workers Local 602 leader.

His classmates' parents were dentists or lawyers. His father was a pipefitter but not for an automaker. Delaney assumed he would go to college, study business administration and join the professional ranks. But in 1971 after a year at Central Michigan University, he had used up the money he'd saved for school.

He applied to auto manufacturers and suppliers, figuring he would work for a year to earn enough to return to classes. But Oldsmobile called with a job, and he stayed.

"You could graduate from high school, hire into Oldsmobile and walk into the middle class overnight," said Delaney, who would land an apprenticeship as a skilled tradesman. "I'm probably better off now than if I had gone back to school for three more years and come out as a teacher."

Today, an auto job still is a decent way to earn a living, even at GM's lower entry-level wage, he said. But it doesn't promise the same financial advantages Oldsmobile once did.

It took a lot for people here to get the mindset to get over the loss of Oldsmobile. It was the end of an era.

-

Oldsmobile's demise was solidified during this past decade as GM razed Fisher ! Body and ! several other outdated local plants a few years before the 2009 bankruptcy.

Old-timers thought the end of Oldsmobile spelled death for Lansing as an auto town.

"There are young kids who come into where we're working now and their dad(s) worked for Oldsmobile," said Alex Hernandez, a third-generation GM worker who, along with his father and grandfather, worked at Fisher Body. "It's like working in a coal town or a steel mill town.

"There would be no Lansing without Oldsmobile," Hernandez said. "He had a dream and he did it in this town."

He, of course, is Olds himself, who quit his stake in the company he founded before it joined what was then was a fledgling General Motors. GM adopted the Oldsmobile name and folded the company and its Buick line into what would become a collection of carmaking names with pioneering roots — Cadillac, Chevrolet and Pontiac among them.

Oldsmobile rode high through the 1980s, selling more than 1 million vehicles per year. Some of its cars remain among the most recognizable in the U.S. auto industry — the Curved Dash Olds, Cutlass, Cutlass Supreme and 442, to name a few.

But Olds saw its sales tumble through the 1990s to just a few hundred thousand.

Paul Armbrustmacher polishes the insignia of a finished 1999 Oldsmobile Alero for display at the 1998 Detroit Auto Show.(Photo: Rod Sanford, Lansing (Mich.) State Journal)

By its centennial mark in 1997, some analysts were predicting the brand's image problems could be insurmountable. A late-1980s ad campaign meant to lure younger buyers by pitching the cars as "not your father's Oldsmobile" would backfire. The stodgy image only deepened.

Delaney and Hernandez said the line suffered from design problems: I! ts cars w! ere indistinct compared with GM's other nameplates. Oldsmobile was too "cookie-cutter," Delaney said — essentially a clone of other GM cars but with a different name.

The New York Times, in a review of the Alero nearly two months after Oldsmobile had ended, was more blunt.

"Not a terribly bad car nor an especially good one, the Alero's white-bread mediocrity is typical of the small to midsize cars that Detroit has churned out for years," it wrote. "The Alero is, in fact, a virtual twin of the Pontiac Grand Am. Both are transportation devices, cars for people who don't like cars very much."

By 2000, GM said it was ready to close the door on Oldsmobile. Other divisions — Pontiac and Saturn — would follow. Still others, such as Saab and Hummer, would be sold off.

GM now has four nameplates, all of which have at least one vehicle built here: Buick, Cadillac, Chevrolet and GMC.

"Part of it was just simple math," said Mark Phelan, a Detroit Free Press auto critic. "GM had about 50% more brands than it needed.

Oldsmobile owners line up in 1998 at Oldsmobile headquarters in Lansing, Mich., for a car show.(Photo: Rod Sanford, Lansing (Mich.) State Journal)

"They couldn't come up with distinctive visions for them. It became hard to say what was the difference between Oldsmobile and Buick," Phelan said. "Oldsmobile became associated with old stodgy vehicles because GM didn't have the money to invest in really good new product lines, contemporary product lines, for all of the brands it had."

On April 29, 2004, that dark cherry Alero left the line with Lansing Car Assembly's two most senior employees behind the wheel. Workers were allowed to bring their own cameras into the plant and thousands of pe! ople sign! ed their names underneath the hood.

That Alero was on display at the R.E. Olds Transportation Museum here for several years. It now has a permanent residence in GM's Heritage Center in Sterling Heights, Mich.

"Their goal was to build the vehicle with the same level of quality that the first one off the line came with — a lot of, 'Let's make this one the best,'" said GM spokeswoman Kim Carpenter, who worked in Lansing's plants at the time and now manages East Coast communications in New York.

"In my opinion, they identified with being world-class automakers," Carpenter said. "For them, the brand was vitally important, but they knew other opportunities would come."

"The post-mortems for this venerable car company may someday reveal that GM tried to fit Oldsmobile's round peg into GM's square hole; and the fit, not the product, was the problem. Or, perhaps, the name and the product line simply could not keep pace with the changing tastes of American drivers. We only know this final chapter, while not wholly unsurprising, is poignant. Oldsmobile's imminent demise is like watching an old friend die slowly. And that hurts."

— Lansing State Journal editorial, Dec. 13, 2000

"It took a lot for people here to get the mindset to get over the loss of Oldsmobile," Lansing Mayor Virg Bernero said. "It was the end of an era. The end of Oldsmobile wasn't the end of GM."

Employment never will approach the more than 20,000 people who worked at GM plants in the 1970s, he said, but that shouldn't be the sole indicator of the health of the region's manufacturing sector.

The $4 million R.E. Olds Foundation, which Olds started 100 years ago to give back some of the earnings from his inventions, donates close to $200,000 annually in grants to community organizations that serve children and families, animal welfare and conservation, among other things.

The museum in Lansing that bears his name is full of photos and vehicles, including an original Curved Dash Oldsm! obile on ! loan from Michigan State University. But its director says it became harder to raise funds once the cars disappeared from the road.

Debbie Stephens, one of Olds' great-granddaughters, said she continues to find photos and Olds memorabilia in boxes her mother left after she died two years ago. She plans to visit Lansing this summer to present some of them.

Since Oldsmobile production stopped, "it really hasn't been in the limelight the way I feel it should be and my family feels it should be," said Stephens, 61, who lives in the Columbus, Ohio, suburb of Dublin. "We all have a common purpose: To keep the automotive history alive because it, obviously, it affects every single person everywhere."

Workers are doing their best to preserve it. The mission statement at GM's Lansing Delta Township plant begins with the words: "Building on our heritage."

It was drafted April 28, 2004, the day before the Alero's last day.

"Everyone knows what that heritage is," said Delaney, who works at the plant. "That pride and workmanship that started with Oldsmobile is still here."

The 4 Rules of Earnings Season, Plus Tips: Buy Under Armour Next Week, Dump Amazon A.S.A.P.

"Every battle is won before it's ever fought." -- Sun Tzu

NEW YORK (TheStreet) -- The hyper-active and borderline desperate Twitter (TWTR) feeds for Under Armour (UA) and Amazon (AMZN) illustrate the gap between what many shareholders think is a positive earnings report and what actually is.

Immediately after reporting earnings on Thursday, shares in Under Armour, Amazon and Microsoft (MSFT) popped higher, but only Microsoft continued higher. All three increased revenue. From an operational point of view, they all executed extremely well. But their performance diverged.

Let's examine the differences and how investors can empower their portfolios with other holdings and profit from future earnings releases. The first rule of earnings season is to never chase a stock unless you're taking a stop loss. If your trading desk doesn't include a Bloomberg terminal or another equally fast wire subscription in unison with computer-directed trading, you're fighting a losing battle. The second rule is that only the uninformed focus exclusively on if the company beat or missed earnings expectations. Earnings results are just that, results that report what happened BEFORE. But the market focuses on what WILL happen. Big-money Wall Street fund managers -- the whales that move a stock price -- review last quarter's results only up to the point the data aids in predicting future expectations. While many are satisfied if Under Armour, Amazon and Microsoft outperform their previous quarter, fund managers closely scrutinize margin trends, forward guidance, growth rates (or lack thereof), competitive influences, management changes, cash flow, dilution and other factors. They are painting a picture of the next quarter, the next year and beyond. The third rule is that one quarter doesn't matter. That's a hard one for many to understand in the heat of battle. Patterns can't be found in sample sizes of one. Fund managers plug a given company's results into spreadsheets and compare the results with previous quarters to find hidden patterns and trends.

Stock quotes in this article: TWTR, UA, AMZN, MSFT 

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"Every battle is won before it's ever fought," said Sun Tzu, and we all know it. But do we live it?

Are you reading the SEC filings and taking the time to understand what's happening below the surface level? Keep in mind that a company and its stock are two decidedly different things. For example, Under Armour and Amazon increased revenue, demonstrating strong demand for their offerings, and yet the stock fell.

For investors, it's more pertinent to understand the stock than the company. It may appear counter-intuitive at first, but investment decisions should focus on the stock first and company second. Understanding the stock requires a full comprehension of the company filings.

Reading Qs and Ks (quarterly and annual reports) may be an insomnia cure for people who don't respond to strong medication -- a hat tip to Robin Williams -- but they're gold mines of information. Anyone can read the reports. But understanding what to look for, and how to read past a presentation that is sometimes more useful to management goals than investors, separates those in the know and others playing a guessing game. If you want to know what to look for, I suggest picking up Wiley's Financial Statement Analysis: A Practitioner's Guide, by Martin Fridson and Fernando Alvarez. It's a great read for non-finance majors. Plus it will be worth its weight in gold the first time and every time it helps you find information buried within an earnings report. The fourth rule, and this one is broken on a daily basis for reasons I don't understand, is that if it's common knowledge, it's priced in and doesn't matter. Using Amazon for even one moment, everyone knows that the company has an advantage over small bookstores. Amazon has invested heavily into its logistics system and is able to move books and other products from supplier to your home at a lower cost than most others can. Every bit of public information is already priced into the stock. Unless you know something almost everyone else doesn't, the information isn't valuable. In fact, relying on common information is often detrimental. Under Armour's earnings release demonstrated enormous growth, but everyone and their brother already expected it. As a result, when the company didn't crush the already mile-high expectations, the stock quickly sold off, causing an avalanche of sellers rushing for the exits. As an independent investor, your greatest advantage is focusing on industries you already know about. If you're in the sportswear industry and can see trends before they show up on analysts' spreadsheets, you have an edge over money managers. I don't mean inside information that regulations prohibit insiders from trading on. If you work in a medical office and notice a new product or an improvement to an old product that you like and others like, it's probably worth your time to investigate the company that produces it. Now let's go full circle and examine the chart patterns for our three earnings-related stocks.

Stock quotes in this article: TWTR, UA, AMZN, MSFT 

If you're stuck in Under Armour, I think your prospects are much brighter than with Amazon. But don't expect the price decline to bottom before Monday. It normally takes two or three days for an earnings disappointment similar to Under Armour's to become fully discounted. The sweet spot to buy on the dip is late Monday or Tuesday for a more conservative entry.

Amazon's problem is it doesn't generate a return on investment. I've written many articles about the perils of buying momentum stocks lacking a meaningful return on investment. The only thing keeping the shares above $200 right now is a belief that someday it will monetize its revenue. Everyone worth their salt knows that it's easy to generate lots of revenue in retail if you're willing to sell at the lowest cost. But the moment a retailer tries to increase margins, sales fall off a cliff.

I suggest taking advantage of up days as an opportunity to scale back or exit.

At the time of publication, Weinstein had no positions in any of the securities mentioned. Follow @RobertWeinstein This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: TWTR, UA, AMZN, MSFT 

Consumer Optimism Slips on Taxes, Economic Concerns

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Craig Warga/Bloomberg via Getty Images U.S. consumers felt less confident about their finances last month, attributable in part to the looming April 15 tax deadline, a new survey finds. The Consumer Bankers Association and AOL (AOL) monthly Finance Optimism Index fell 3.6 points to -6.2, the organizations said Thursday. An index value below zero indicates that greater number of those who responded to the poll felt pessimistic than optimistic about their personal finances. Results of the survey suggest April's impending federal income tax deadline combined with other factors, including sluggish job growth and swiftly rising food prices, meant more Americans overall were feeling their budgets squeezed in March. The CBA and AOL Finance Optimism Index tracks optimism through agreement with four statements in a survey: I am optimistic about my personal financial future. I am worried about my current financial situation. The news I've been hearing in the past few weeks about Americans' personal finances has been generally positive. I am worried that the current economic and political situation is going to affect my personal finances. The poll results were in line with another measure of consumer confidence in the U.S. economy -- the final March survey of consumer sentiment by the University of Michigan, which showed consumers trimming spending as their faith in a growing economy waned. Another measure, however, showed Americans felt more upbeat. The Conference Board last month said its index of consumer attitudes rose to its highest level since January 2008. Still, while the Conference Board survey found consumers were more upbeat about the overall economy and employment prospects, findings suggested that Americans were concerned about their ability to earn more money and rising prices.

Should You Hunt or Fish for Profits With Sportsman's Warehouse Holdings (SPWH)? CAB, DKS & BGFV

Last Thursday, outdoor sporting goods retailer Sportsman's Warehouse Holdings Inc (NASDAQ: SPWH) had an IPO that was priced below expectations, meaning its worth taking a closer look at the stock along with the performance of peers like mid cap Cabelas Inc (NYSE: CAB) and Dicks Sporting Goods Inc (NYSE: DKS) and small cap Big 5 Sporting Goods Corporation (NASDAQ: BGFV).

What is Sportsman's Warehouse Holdings?

Founded in 1986 as a single retail store in Midvale, Utah, small cap Sportsman's Warehouse Holdings says it has the largest outdoor specialty store base in the Western United States and Alaska (47 stores across 18 states) that's focused on "meeting the everyday needs of the seasoned outdoor veteran, the first-time participant and every enthusiast in between." The company adds that its mission is to provide a one-stop shopping experience that equips customers with the right hunting, shooting, fishing and camping gear to maximize their enjoyment of the outdoors. 

As for potential peers, mid cap Cabelas Inc is the world's largest direct marketer of hunting, fishing, camping and related outdoor merchandise; mid cap Dicks Sporting Goods was founded by an avid fisherman who wanted to sell fishing gear but has evolved into a full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel and footwear in a specialty store environment; and small cap Big 5 Sporting Goods Corporation offers athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment.

What You Need to Know or Be Warned About Sportsman's Warehouse Holdings

Last Thursday, Sportsman's Warehouse Holdings priced its IPO at $9.50 per share (instead of the $11 to $13 price range) with 8,333,333 shares of common stock being sold by the company and 4,166,667 shares being sold by affiliates of Seidler Equity Partners III, L.P. that raised approximately $70.3 million. The company intends to use all of the net proceeds to repay amounts outstanding under its term loans.

Sportsman's Warehouse Holdings' prospectus noted that the company competes in a large, growing and fragmented outdoor activities and sporting goods market which it believes to be underserved by full-line multi-activity retailers. The company believes that the US outdoor activities and sporting goods retail sales totaled over $50 billion in 2012 and that growth in the US outdoor activities and sporting goods market is driven by several key trends, including:

An expanding demographic focused on healthy and active lifestyles; Successful new product introductions centered around enhancing performance and enjoyment while participating in sporting and outdoor activities; The resilience of consumer demand for purchases in these categories versus other discretionary categories.

Stores can vary in size from 30,000 to 65,000 gross square feet and the company has had success leasing existing sites as well as constructing new build-to-suit sites. The company also believes that over the longer term, its retail concept has the potential to expand to more than 300 locations throughout the United States.

The prospectus noted that Sportsman's Warehouse Holdings has reported revenues of $467,435k (Thirty-Nine Weeks Ended November 2, 2013), $337,927k (Thirty-Nine Weeks Ended October 27, 2012), $526,942k (fiscal 2013), $376,551k (fiscal 2012) and $311,363k (fiscal 2012) along with $14,339k (Thirty-Nine Weeks Ended November 2, 2013), $14,104k (Thirty-Nine Weeks Ended October 27, 2012), $28,074k (fiscal 2013), $33,694k (fiscal 2012) and $5,244k (fiscal 2012). It should be noted though that Sportsman's Warehouse Holdings has a rather high debt load of $288,910k – a reason why the offering will be used to pay off debt to help lower interest expenses.

Finally, investors should be aware that affiliates of Seidler control a majority of outstanding common stock, meaning the Sportsman's Warehouse Holdings is a "controlled company" that is exempt from some of the NASDAQ Stock Market corporate governance requirements, including requirements that:

• a majority of the board of directors consist of "independent directors" as defined under The NASDAQ Stock Market corporate governance standards;

• our director nominees be selected, or recommended for our board of directors' selection, either (1) by a majority of independent directors in a vote by independent directors, pursuant to a nominations process adopted by a board resolution, or (2) by a nominating and governance committee comprised solely of independent directors with a written charter addressing the nominations process; and

• the compensation of our executive officers be determined, or recommended to the board for determination, by a majority of independent directors in a vote by independent directors, or by a compensation committee comprised solely of independent directors.

However, a majority of the board of directors along with the audit committee and a compensation committee will be comprised solely of independent directors; but the nominating and governance committee will not be comprised solely of independent directors.

Share Performance: Sportsman's Warehouse Holdings vs. CAB, DKS & BGFV

On Tuesday, small cap Sportsman's Warehouse Holdings rose 1.68% to $9.66 for a market cap of $453.56. Here is a look at the long term performance of Cabelas Inc, Dicks Sporting Goods and Big 5 Sporting Goods Corporation:

As you can see from the above performance chart, mid cap Cabelas Inc and Dicks Sporting Goods has been a steady performer since the end of the financial crisis while Big 5 Sporting Goods Corporation has given investors a more mixed performance.

Finally, here is a look at the latest technical charts for all three outdoors sporting goods retailers:

The Bottom Line. Despite the disappointing IPO pricing, small cap outdoors sporting goods retailer Sportsman's Warehouse Holdings does appear to at least be holding onto its IPO price. Given the growth of the outdoor sporting goods market along with the steady performance of Cabelas Inc and Dicks Sporting Goods, investors might want to have the Sportsman's Warehouse Holdings on their watch list. 

Will Wal-Mart's Bite Be Sharper Than D.C.'s Bark?

When you lie down with dogs, you get fleas. For the past decade Wal-Mart (NYSE: WMT  ) has been greasing the skids for its entrance into the Washington, D.C., market by lavishing local charities and politicians with cash and lobbyists. According to The Washington Post, the discount retailer donated as much as $3.8 million to local food banks while a lobbyist has been kept on a $10,000-a-month retainer to caress and massage the pols. Forbes notes that Wal-Mart held photo ops with First Lady Michelle Obama and sponsored African-American cultural tours to play to local community leaders.

Wal-Mart had big plans for the D.C. area, doubling the number of stores to six it planned to open, thereby increasing the number of jobs it would provide the city from 1,200 to 1,800. And the District needs it. It has an unemployment rate a full percentage point higher than the national average, more than one-fifth the population is below the poverty level, and almost 11% of its residents have income below 50% of the poverty level.

But what has Wal-Mart gotten in return for its largesse and having the audacity of wanting to provide jobs, food, and clothing to the district's residents? Politicians just passed legislation to require Wal-Mart to pay a so-called "living wage" of $12.50 an hour, 50% more than the city's current minimum wage. Although the legislation is couched in terms of applying to any employer with more than $1 billion in revenues and stores of at least 75,000 square feet, there aren't so many such businesses rushing in to set up shop in D.C., so it's obvious it's targeted at the retailer.

Wal-Mart shouldn't have been surprised. The U.S. Chamber of Commerce ranks D.C. as the worst place in the country in terms of business friendliness.

For it's part, the retailer says that if the proposal becomes law it will abandon its plans for development in the District -- it's already reportedly scrapped plans for the three stores that aren't yet under construction -- because the costs associated with it no longer make the projects viable. It's not alone.

Over the years, retailers from Wal-Mart to Target to Home Depot have had to face down the threat of a living wage, or a rate higher than the federally mandated minimum, such as when Chicago passed a similar bill two years ago. At the time, Target threatened to leave the city and only Mayor Daley's veto of the measure prevented that from happening.

Although many are critical of Wal-Mart's supposed low wages, the average full-time rate is $12.78 an hour. That may be below the likes of the $17-an-hour wage media darling Costco (NASDAQ: COST  ) employees make, but the two companies are very different. Wal-Mart, at 4,400 stores (including Sam's Clubs), has 10 times as many stores as Costco, while carrying 140,000 SKUs compared to just 4,000 at its rival big-box store. Wal-Mart also employs some 1.4 million people while Costco has just 160,000. Moreover, the customers it serves are lower-income people than the average $85,000-a-year income of the upper-middle-class Costco shopper.

For the products and services Wal-Mart provides, it does a great job and provides its workers a decent wage for doing so. Efforts like those in D.C. to forcibly increase the salaries only ends up ensuring that no one has a job. Let's just hope that like in Chicago, every dog has his day and D.C. Mayor Vincent Gray follows Daley's playbook and vetoes this boneheaded bill.

While Wal-Mart squares off with the District, the retail space is in the midst of the biggest change since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Google Inc. (GOOGL) Q1 Earnings Preview: Simply A Bullish Surprise

Google Inc. (NASDAQ:GOOGL) will hold its quarterly conference call to discuss first quarter 2014 financial results on Wednesday, April 16th at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). The live webcast of Google's earnings conference call can be accessed at investor.google.com/webcast.html. A replay of the webcast will be available through the same link following the conference call. Google will release earnings prior to the conference call.

Wall Street anticipates that the internet information provider will earn $6.39 per share for the quarter, which is $0.60 more than last year's profit of $5.79 per share. iStock expects GOOGL  to beat Wall Street's consensus number. The iEstimate is $6.45, six cents more than expected.

Sales, like earnings, are expected to grow, rising a healthy 11.10% year-over-year (YoY). Google's consensus revenue estimate for Q1 is $15.52 billion, more than last year's $13.97 billion.

Google is a global technology company. The Company's business is primarily focused around key areas, such as search, advertising, operating systems and platforms, enterprise and hardware products. The Company generates revenue primarily by delivering online advertising. The Company also generates revenues from Motorola by selling hardware products. The Company provides its products and services in more than 100 languages and in more than 50 countries, regions, and territories.

We don't know how to write it in 100 diffident languages, but Google's business is fairly straightforward. As the description says, "The Company generates revenue primarily by delivering online advertising." In fact, online advertising accounted for 92.8% of the search giant's revenue.

To find the money and get a sense of what GOOGL's earnings per share might look like, all you have to do is focus on search trends and spends.

Fortunately, there are companies whose business it is to keep track for such things. One such resource is Kenshoo. The firm reports that advertiser revenue increased 12% year-over-year in the first quarter of 2014.

Last year, Google's Q1 advertising revenue was $12.951 billion. Increase that by 12% and we get ad revenue for Q1 2014 of $14.505 billion. The remaining chunk of Google's sales comes from Motorola Mobile, which we expect will generate about $1.16 billion in sales for the quarter, add 'em up and iStock projects Q1's top line to be $15.668 billion, which would be a mild upside surprise.

If Google hits Wall Street's forecasted net-margin of 13.68% for the first quarter, then EPS would come in at $6.45 on a non-diluted basis and $6.39 on a diluted basis. We think margins could be a little higher as Kenshoo cost-per-click was up 2% to $0.59, plus Google's net-margin is usually much higher than 13.68%.

Overall: Google Inc. (NASDAQ:GOOGL) revenue should be a little hotter than Wall Street expects based on Kenshoo's analysis. While the iEstimate and our non-diluted calculation suggest EPS of $6.45 (just a coincidence), we think there is plenty of wiggle room for net-margin to be higher than projected, which could make $6.45 the worst case scenario?

How IRS Phonies Target Tax Filers After April 15 Deadline

Getty Images The deadline for filing your taxes was April 15, but tax scammers have no deadline. In a quest for personal information and money even after filing deadlines, scammers often impersonate the Internal Revenue Service. "The IRS encourages taxpayers to be vigilant year round against phone and email scams that use the IRS as a lure," the IRS said in a statement emailed to CNBC.com. "These scams won't likely end with the filing season so the IRS urges everyone to remain on guard," the IRS said in the email. Can You Trust Caller ID? Since October, the IRS has been warning Americans about a sophisticated phone scam that remains pervasive and frequently targets immigrants. The scam has cost the victims more than $1 million, and there have been roughly 20,000 reports of the scam, according to a Treasury Inspector General for Tax Administration press release. The scam begins with a phone call claiming to be from the IRS. Usually the scammer will say either the call recipient is entitled to a big refund, or they owe money that must be paid immediately. If the recipient refuses to pay, the scamming caller often becomes hostile and threatens jail time or a revocation of the individual's drivers' license. The phone scam is so sophisticated that the scammers are able to outsmart caller ID technology so that the IRS's number appears. Adding to the appearance of legitimacy, the scammers will offer fake IRS badge numbers and often know the last four digits of the victim's Social Security number. When receiving one of these calls, "people have to step back and take a deep breath," said Laura Iwan, senior vice president of programs for the Center for Internet Security, a nonprofit that focuses on cybersecurity. She suggests targeted individuals immediately contact the IRS to see if the original call was legitimate. Other signs the call may be from a scammer include the caller asking for payment using a pre-paid debit card or wire transfer, or asking for a credit card number. The IRS will not ask for this type of payment, nor will they ask for your credit card number over the phone. Additionally, the IRS's primary correspondence method is through the U.S. Postal Service. Watch Out for Phishing Emails While the phone scams are a new threat, phishing emails continue to be a pervasive scam tactic. These phishing emails sometimes contain links to websites that are infected with malware, and purport to be from the IRS and try to convince you to volunteer your personal information. "We definitely see more phishing, often with a malware component [after April 15]. The messages may pretend to be from the IRS, or one of the popular companies people tend to use for e-filing their taxes," said Roel Schouwenberg, principal security researcher at Kaspersky Lab in an email to CNBC.com. Like the scam phone calls, these phishing emails will either promise the taxpayer a refund or claim the taxpayer owes money and usually threatens dire consequences if not paid, said Iwan of the Center for Internet Security. The IRS will not initiate contact with taxpayers by email or any other form of electronic communication. If you receive an email claiming to be from the IRS, you should avoid clicking on any links or opening any attachment. You should also report the email to the IRS by forwarding it to phishing@irs.gov. Be Careful Where You Store Your Taxes More than 90 percent of Americans now electronically file their taxes, according to the IRS. While computers have expedited tax return preparation, security experts warn they are a risky place to store your personal tax data. "Tax returns are a treasure trove. They contain everything someone needs to steal yours and your spouse's identity. They can be easily stolen," Schouwenberg said. Iwan suggests once you file, store your taxes on an external hard drive or flash drive. You should also make sure you have up-to-date anti-virus, anti-malware, and firewall software. If you believe you are the victim of identity theft, contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245.

The Bulls Aren’t Pinned

Last year was superlative for investors as the S&P 500 finished the year up by nearly 30 percent, the Dow jumped 26.5 percent and the technology heavy Nasdaq skyrocketed by 38.3 percent. After that jaw-dropping performance in 2013, this year has been something of a disappointment so far.

Stocks sold off sharply at the beginning of 2014, largely due to fears of slowing growth in the emerging markets. China has been a particular concern as manufacturing has slowed markedly of late as the country works to transition from an export powerhouse to a consumption-driven economy.

Quality of earnings has also been a concern here on our own shores, despite the fact that 7 out of 10 companies in the S&P 500 beat earnings estimates for the fourth quarter. Of the 82 S&P 500 companies that have reported first quarter earnings so far, fully two-thirds of them have shown earnings above the mean estimate; according to data provider FactSet, that's well below the 71 percent historical average.

While the pace of earnings beats is slowing, the real concern is languishing revenues. Earnings growth has outpaced revenue growth for several quarters now as cost-cutting and improved efficiency has driven higher profits. Of the reporting companies in the first quarter so far, there has been a 50-50 split between companies beating revenue estimates and missing them. On average, reported sales have come in 0.3 percent below expectations. Without growing revenue, how much longer can rising earnings last?

One of the heaviest weights, though, has been the Federal Reserve. While Chairwoman Janet Yellen has repeatedly said the Fed will provide as much support as the economy needs to sustain growth, she has also said that asset purchases will likely finish winding down in the fourth quarter, and hinted that interest rates may rise in 2015.

While on the face of it that should be relatively good news – it'! s a pretty clear indication that the Fed believes the economy is improving – I suspect it has the markets somewhat unnerved, considering rates have essentially been at zero percent for five years and it has been almost nine years since the last hike. It seems as though folks are worrying that any rate hike would bring this bull market to an end.

So far, though, we're yet to see a major correction and, historically speaking, a bull run has never ended after only the first bump up in interest rates. If the future holds true to the past, if Yellen et al increases rates sometime in the first half of next year as many seem to be predicting, that would actually put us about a third of the way through the bull cycle.

While market participants are clearly jittery, so far there aren't any clear signals that any of the major indexes are preparing to turn a corner. In fact, it looks like we're still following the template of years past when the Fed stayed too accommodative for too long. Initial jobless claims are back below pre-recession levels and even the housing market is almost back to where it was before everyone started flipping houses.

Odds are the Fed is going to end up creating another asset bubble as it did in 1993, helping to fuel the dot-com mania (anything looking familiar there?) and the trauma of the housing bubble in 2003. Add in the fact that the European Central Bank is likely to maintain its own accommodative stance to prevent deflation, the Bank of Japan is running a zero interest rate policy all of its own, and China is still deploying selective stimulus measures – another bubble is almost an inevitability.

Yes, a correction can and probably should come but the bulls will keep on running.

A Map to Turn Fear into Profit

Last Monday, I shared a chart with Money Map Report subscribers and suggested they may want to batten down the hatches because I saw a 30- to 40-point drop happening by the end of the week.

Now I want to share that same chart with you plus a new one - and encourage you to do the same thing.

The shellacking the markets took last Thursday is the most powerful warning sign we've seen yet that things are not what they seem in the financial markets. For lack of a better term, it's a bearish omen, despite Monday's recovery.

Today I want to talk about what that means for your money and what you can do about it in the name of protecting your money and, more importantly, the pursuit of profits.

Contrary to what you might believe, not all bears are bad news.

Let's start with the chart....

The Real Reason Black Monday Still Resonates So Clearly

I find the old adage that a picture is worth a thousand words is really true, especially when you look carefully at market charts over widely disparate time frames. That's because you can easily see similarities that are otherwise not apparent.

This helps you prepare ahead of time for contingencies that others will not see until it's too late.

For example, many people have convinced themselves that things are different today in our post-financial crisis world. They cite everything from the "brave new world" we live in to the "rapidly changing technology" and even the Fed's "innovative financial policies" as rationale. Things, they say, are different this time.

So why is it that today's bull market is eerily similar to another famous bull market? And why are traders worried that we'll have a repeat of Black Monday in 1987 a month from now?

Short version... because the charts point to very similar dynamics over almost identical time frames.

Even if investors don't recall the data, they recall the angst from Black Monday 27 years ago.

Psychologists say this is because of the way the amygdala works. That's the part of the brain that activates in response to emotionally charged circumstances, especially those that provoke fear.

I think it's simply the collective knowledge of one generation being passed involuntarily to the next as part of a critical survival instinct, which is why even those who were not investing then feel the fear now.

To draw a parallel, saber-toothed tigers haven't existed for more than 12,000 years. Yet, the thought of them prowling around still causes an involuntary reaction, not to mention a totally irrational "grab-your-spear-and-run-for-the-cave" reaction in most people.

The bull market that started in March 2009 is now up 169% through Friday. That's nearly step for step with the rally that began in 1982 and immediately before the biggest single-day drop in market history on Oct. 19, 1987 - a day we now refer to as "Black Monday."

Many technicians, myself included, are concerned that we could have a repeat 30 days from now.

A Tempered View of a Correction

Marc Faber, who publishes the Gloom, Boom and Doom Report, took it up a notch after last Thursday's trading, saying that he thinks stocks will "drop by 20% to 30% in the near future." With guys like that out there, who needs saber-toothed tigers?!

Anyway, don't let that put you off track. While another Black Monday is theoretically possible, the far more probable scenario is a market correction of 5% to 10%. And that's not a bad thing.

It's long overdue and would be a welcome sign that things are, in fact, working normally. People forget that nothing goes up forever. Markets have to buy and sell for there to be price discovery. Up and down is part of the process. That's why Monday's rally is only part of the story.

If you look at a chart of the S&P 500, a correction like what I am suggesting points to a drop from roughly 1850, where we are now, to approximately 1757, should we get it.

It's worth noting that in order to arrive there, the markets would have to take out key support at 1820ish before coming into contact with the 200-day moving average that, not coincidentally, is farther below.

Will we get there?

I have no idea. Nobody does. But I do know that many of the computers that account for 70% or more of the overall trading volume on today's exchanges are programmed to sell when the markets break below key support levels. Until that happens, the volatility we are experiencing right now is just statistical noise.

If this gives you pause, take a deep breath.

We have talked many times about how and why market volatility creates tremendous opportunity. I know it's not comfortable, but that's your amygdala talking again.

Logically speaking, a sizeable correction is long overdue and should be celebrated because the business cases behind many of the best companies remain intact and completely unaffected by how the stock markets move. It's your chance to buy a $50 steak at Peter Luger's in NYC at a substantial discount.

I can think of any number of reasons why.

For instance, productivity is hitting all-time highs because of technology and innovation. Businesses are cash flush with trillions of cash being put to work. Interest rates remain low - albeit totally for artificial reasons thanks to the Fed, but low nonetheless.

And globalization continues, with the benefits flowing right to the bottom line on some 60+% of the S&P 500, while also charging into economies growing at 6% to 8% a year. Those same economies are where some 75% of the world's population lives today.

Your Specific Profit Plan

Here's what I want you to do today:

Double-check your trailing stops. If the markets do continue to fall, chances are you're going to have the opportunity to capture plenty of profits just like Money Map Report subscribers have in the past. You are using them... right? (If not, click here to find out about getting a copy of the Money Map Method, where I share how to maximize profits and minimize losses using them.) If the markets continue to rise, you're going to go along for the ride and you just raise your stops to ensure you capture even larger profits, which is, after all, kinda the point. Add an inverse fund to your portfolio right now. My favorites include the Rydex Series Trust Inverse S&P 500 Strategy Fund Class Investor (MUTF: RYURX) fund or the ProShares Short S&P 500 (NYSE ARCA: SH). Both appreciate as the S&P 500 falls. Studies show that 3% to 5% of overall investable assets can provide some substantial reinforcement for your portfolio, not to mention some healthy profits, too. Get your buy list ready. If you wanted to buy Tesla Motors Inc. (Nasdaq: TSLA) at $150 or Amazon.com Inc. (Nasdaq: AMZN) at $250, you just may get your chance. Other companies may be similarly discounted - and I'll be back in subsequent columns with some names and ideas I hope you find helpful.

No investor has to suffer the ravages of a bear market if they're properly prepared.

Best regards for great investing,

Keith

Morgan Stanley Sees Post-Winter Loan Growth, With Retail Sales Tailwind

It's been a busy week for financials. Aside from earnings from BofA and beats from both Charles Schwab (SCHW) and Citi, banks and credit card companies reported March credit summaries on Tuesday.

Overall, net charge offs increased month-over-month at most institutions, including Capital One Financial (COF), Bank of America (BAC) J.P. Morgan (JPM), and Citigroup (C), while Discover Financial Services (DFS) saw NCOs flat and American Express (AXP) recorded a decline.

Morgan Stanley's Betsy Graseck and Manan Gosalia have a review of the metrics out, in which they note: "Loan growth improved at AXP/COF/DFS, growing 1% m/m on avg, after two consecutive weak months (-3% m/m in Feb/Jan). We expect this rebound from weather related weakness will continue through 2Q14, with 2H14 spend picking up from improving  consumer balance sheets. Mixed results on NCOs. NCOs increased m/m at C/JPM, declined at AXP, and came in relatively flat at BAC/COF/DFS. On average, NCOs increased 6bps m/m, in-line with seasonality of up 4bps. Early stage delinquencies were relatively flat and in-line with seasonal trends on average. Total delinquencies declined at 5 out of 6 issuers, but the average decline of 7bps was a touch lighter than the typical seasonal decline of -11bps."

They boosted their first-quarter EPS estimate on Capital One by 8 cents on its lower NCOs, and also noted that further gains for retail sales provide positive momentum for the current quarter: "March retail sales (ex auto, gas and building materials) rose +0.9% m/m, better than MSe +0.5%. Feb sales were also revised upward (+0.5% vs. prior +0.3%). Expect spending accelerates in 2Q14."

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

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This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

>>5 Stocks Poised for Breakouts

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Acacia Research

My first earnings short-squeeze play is patented technologies player Acacia Research (ACTG), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Acacia Research to report revenue $16.92 million on earnings of 4 cents per share.

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The current short interest as a percentage of the float for Acacia Research is extremely high at 20.3%. That means that out of the 49.75 million shares in the tradable float, 10.01 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.5%, or by about 520,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of ACTG could easily rip sharply higher post-earnings as the bears jump to cover some of their trades.

From a technical perspective, ACTG is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $12.13 to its recent high of $18.29 a share. During that uptrend, shares of ACTG have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of ACTG are now pulling back to its 50-day moving average, and if that level holds, the stock could be setting up to run higher post-earnings.

If you're bullish on ACTG, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 200-day at $17.51 and then once it takes out more near-term overhead resistance at $18.29 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 673,777 shares. If that breakout triggers post-earnings, then ACTG will set up to re-fill its previous gap-down-day zone from last October that started just above $20 a share. If that gap gets filled with strong upside volume flows, then ACTG will set up to tag $23 to $25 a share.

I would simply avoid ACTG or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average at $15.14 a share to more near-term support levels at $14.38 to $14.12 a share with high volume. If we get that move, then ACTG will set up to re-test or possibly take out its next major support levels at $13.14 to $13.01 a share, or even its 52-week low at $12.23 a share.

SanDisk

Another potential earnings short-squeeze trade idea is data storage products player SanDisk (SNDK), which is set to release its numbers on Wednesday after the market close. Wall Street analysts, on average, expect SanDisk to report revenue $1.49 billion on earnings of $1.25 per share.

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Just recently, Sterne Agee wrote in a note to investors that many semiconductor stocks are attractive following their recent declines. The firm said the fundamental medium to long-term outlook for semiconductor stocks hasn't changed. The companies in the sector should benefit from strong product sales, market share gains and earnings leverage. Sterne Agee thinks SanDisk should benefit from improved supply/demand dynamics in the flash memory market.

The current short interest as a percentage of the float for SanDisk is rather high at 8.4%. That means that out of the 224.14 million shares in the tradable float, 18.94 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of SNDK could easily soar sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, SNDK is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been downtrending over the last few weeks, with shares moving lower from its high of $85.37 to its recent low of $73.11 a share. During that move, shares of SNDK have been making mostly lower highs and lower lows, which is bearish technical price action. That being said, shares of SNDK have managed for now to find support and form a double bottom at $73.03 to $73.11 a share.

If you're in the bull camp on SNDK, then I would wait until after its report and look for long-biased trades if this stock manages to break out back above its 50-day moving average of $76.11 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 4.15 million shares. If that breakout hits, then SNDK will set up to re-test or possibly take out its 52-week high at $85.37 a share.

I would simply avoid SNDK or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $73.11 to $73.03 a share with high volume. If we get that move, then SNDK will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $66.91 a share to $65 a share.

Home Loan Servicing Solutions

Another potential earnings short-squeeze candidate is mortgage investment player Home Loan Servicing Solutions (HLSS), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Home Loan Servicing Solutions to report revenue of $204.44 million on earnings of 53 cents per share.

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The current short interest as a percentage of the float for Home Loan Servicing Solutions is pretty high at 8.3%. That means that out of the 70.02 million shares in the tradable float, 5.77 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.3%, or by about 288,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of HLSS could easily spike sharply higher post-earnings as the shorts jump to cover some of their positions.

From a technical perspective, HLSS is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways over the last few weeks, with shares moving between $20.90 on the downside and $22.03 on the upside. A high-volume move above the upper-end of its recent range post-earnings could triggering a decent breakout trade for shares of HLSS.

If you're bullish on HLSS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 200-day at $21.93 a share and then once it clears more near-term overhead resistance at $22.03 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 758,450 shares. If that breakout starts post-earnings, then HLSS will set up to re-test or possibly take out its next major overhead resistance levels at $24 to its 52-week high at $25.59 a share. Any high-volume move above those levels will then give HLSS a chance to tag $30 a share.

I would avoid HLSS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at its 50-day moving average of $20.94 a share to more near-term support at $20.90 a share with high volume. If we get that move, then HLSS will set up to re-test or possibly take out its next major support level at its 52-week low of $19.47 a share.

Select Comfort

Another earnings short-squeeze prospect is sleep solutions services provider Select Comfort (SCSS), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Select Comfort to report revenue of $274.27 million on earnings of 32 cents per share.

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5 Best Quality Stocks To Own Right Now

The current short interest as a percentage of the float for Select Comfort is pretty high at 7.8%. That means that out of the 53.57 million shares in the tradable float, 4.20 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low tradable float. Any bullish earnings news could easily spark a sharp short-covering rally for shares of SCSS post-earnings.

From a technical perspective, SCSS is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been consolidating and trending sideways for the last two months and change, with shares moving between $16.51 on the downside and $18.60 on the upside. A high-volume move above the upper-end of its recent range post-earnings could easily trigger a big breakout trade for shares of SCSS.

If you're bullish on SCSS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $17.96 a share to $18.60 to $18.66 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 992,268 shares. If that breakout hits post-earnings, then SCSS will set up to re-fill its previous gap-down-day zone from January that started just above $21 a share. If that gap gets filled with strong upside volume flows, then SCSS could easily tag another gap high of $24 a share.

I would simply avoid SCSS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops below some key near-term support levels at $16.79 to $16.61 a share with high volume. If we get that move, then SCSS will set up to re-test or possibly take out its next major support level at its 52-week low of $15.31 a share.

Linear Technology

My final earnings short-squeeze play is semiconductor player Linear Technology (LLTC), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Linear Technology to report revenue of $350.01 million on earnings of 48 cents per share.

>>5 Big Trades to Survive a Roller Coaster Market

The current short interest as a percentage of the float for Linear Technology stands at 4.4%. That means that out of the 233.16 million shares in the tradable float, 10.29 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of LLTC could easily jump sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, LLTC is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last few weeks, with shares moving lower from its high of $51.77 to its recent low of $46.28 a share. During that move, shares of LLTC have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of LLTC have for now formed a double bottom at $46.28 to $46.44 a share. If that bottom holds post-earnings, then shares of LLTC could break out and trade higher.

If you're in the bull camp on LLTC, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $48 to $49.13 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 2.71 million shares. If that breakout hits, then LLTC will set up to re-test or possibly take out its 52-week high at $51.77 a share. Any high-volume move above that level will then give LLTC a chance to tag $55 to $60 a share.

I would avoid LLTC or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below that double bottom support zone at $46.44 to $46.28 a share with high volume. If we get that move, then LLTC will set up to re-test or possibly take out its next major support level at its 200-day moving average of $42.35 a share to $40 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

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>>3 Big-Volume Stocks in Breakout Territory

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Coke aims for cool with new 146-flavor dispenser

ATLANTA — One machine can't fix all that's wrong with the soft drink industry. But Coca-Cola's Freestyle machine — which can dispense 146 different flavors — is giving Coke the one thing it needs most of all: buzz.

Freestyle is not a beverage formula, but a formula for survival in the $76 billion soft-drink industry awash in competition and growing consumer rejection.

This teen-targeting, touch-screen dispenser flavors self-created beverages in micro-doses. It may be Coke's best hope to keep Millennials fully engaged, socially involved and buying fizzy drinks at a time industry sales are falling faster than water down the drain.

USA TODAY received special permission to tour Freestyle's super-secret offices — which limit entry to about 100, badge-wearing Freestyle employees — for a sneak peak at Freestyle's future. The brand's laser focus: attracting Millennials. Freestyle is part of Coke's never-ending quest to pander to the young-and-techie. Freestyle's even got an app in the works for next fall that will let folks pre-mix and match their drinks on their cellphones. Then, when they hold their devices up to a Freestyle machine, they'll receive the exact drink that they've mixed in their app.

After five years in the marketplace, Freestyle is at a critical crossroads as it evolves from the new kid on the block to an incredibly costly hit or miss. Coke won't say what it's invested in Freestyle — whose original code name was Project Jet. But Freestyle ranks as one of the largest equipment investments the company has ever made. Coke's Freestyle may be one of the industry's most high-profile, most expensive and most widely watched attempts to stay relevant.

Coke, itself, is at a crossroads. On Tuesday, Coca-Cola unveils its results for the first quarter of 2014, and they are not expected to be pretty. In a new report, Morgan Stanley analyst Dara Mohsenian says sentiment on Coke is "very negative." Its stock is down about 10% from its 52-week high. Coca-Cola's c! arbonated soft-drink volume fell 2.2% in 2013, and the drop is only getting steeper, Beverage Digest, the trade magazine reported last week. Similar industry numbers have left the cola giants throwing everything they can at the wall, from wacky new drinks to uncanny new ways to dispense them — such as Freestyle.

THE POWER OF YOUTH

"Freestyle is an admission by Big Soda that they have to endorse a young drinker's consciousness," says Tom Pirko, CEO of Bevmark Consulting.

Put another way: Freestyle oozes the "technology cool factor," says John Sicher, publisher of Beverage Digest.

The dispenser — which dresses the new technology in sleek, curvy styling — is really a sensory overload, dressed up like a snazzy Coke machine. Its facade looks mobile-esque — and eminently touchable. If its curves seem a bit sports car like, that's because its Italian designer, Pininfarina Studios, may be best-known for styling Ferraris and Maseratis. Even the sound of the drink pouring out is amplified by the echo-chamber-like, hollow serving area. The sound seems to urge: Drink up.

Freestyle needs to be a hit. Its off-and-on roll-out, which began every-so-slowly, has recently gained some momentum as there are currently 19,000 machines in about 10,500 locations globally, including most domestic Burger Kings. But Coke Freestyle is still missing industry kingpin McDonald's as a major partner — which has recently begun to test it in some New York City locations. Freestyle is increasingly catching the eye of Millennials, who are its consuming future.

"Freestyle is a game-changer," says Jennifer Mann, vice president and general manager of Coca-Cola Freestyle, while taking a reporter on a tour of the Freestyle's offices, semi-hidden across the railroad tracks from Coke's main building. "This is one of the largest investments in innovation in the history of the company."

More important she notes, "This is a way to grow the brand." Some fast-food chains that have installed Fre! estyle �! � including Burger King, Five Guys, Moe's Southwest Grill and some Wendy's locations — have seen an average 6% to 8% increase in beverage purchases, says Mann.

At Moe's Southwest Grill, which has Freestyle in about 400 of its 450 locations, Freestyle is boosting same-store sales by 4% to 6% annually, says Paul Damico, president. "We're converting water-only customers into beverage customers," he says. "I love this machine."

But Freestyle is not a match for Chick-fil-A, which prides itself on handing customers their first drink, says Woody Faulk, vice president of innovation at the chicken chain. McDonald's executives declined to talk about their ongoing Freestyle test. And Burger King is keeping mum about its experience, too.

Pepsi is certainly paying attention. Last year it began pilot tests of its own Pepsi Touch Tower dispenser with an interactive, digital touch-screen small enough to sit on a counter-top.

SALES INSIGHTS

Coke's growth from Freestyle could come as much from the data collection as anything else, says Mann. The company's recent decision to roll out Fanta Cherry at retail in June, for example, was made only after it became a hot selection on Freestyle.

The top-sellers: Diet Coke with Raspberry; Coke with Orange and Diet Seagram's Ginger Ale with Vanilla. Sound good enough to drink?

"This is not the same old fuddy-duddy Coke," says Pirko. Even then, he notes, it's taken Coke way too long to establish the Freestyle machines in the marketplace. "The slower they go, the more people will think it's a confusing gimmick."

Is Freestyle too little too late? That depends on whom you ask. Some teens flatly insist that they make their fast-food decisions based on whether the restaurant has a Freestyle machine.

"It makes it more exciting to go to a restaurant," says Abigail Vickers, 15, a ninth-grader, visiting the popular World of Coca-Cola exhibit over spring break along with her folks from Warner Robins, Ga.

But Abigail's mother,! Elise, s! ays that she is way too intimidated to even touch the Freestyle machine. "I'd have no idea what to do with it," she confesses, with a shrug.

COLLEGE CONNECTION

Freestyle is a hit on campus at Kennesaw State University, says Gabriana Wallace, a 21-year-old biochemistry major there. The variety cuts down on student complaints in the cafeteria, she says. "You get to be a little adventurous," she says.

Indeed, Freestyle is really a device that encourages folks to play with their beverages. That wasn't its original purpose. When it first came out — at the time with 100 flavor options — Freestyle was strictly about variety.

But since then, it's spiraled to become something more akin to a Millennial play pen. The key, says Mann, is that Freestyle not only gives young folks control of what beverages they drink — but it gives them control of dispensing it.

Not there haven't been problems. Like congestion. Sometimes it's caused by folks having too much fun with the machine, and other times it's caused by the confusion of those who simply can't figure out how to use it.

What's next for Freestyle?

Coke's keeping pretty mum on that. CEO Muhtar Kent has called Freestyle a "long-term play."

But the number of Freestyle offerings will likely continue to increase, as will the play value, says Mann.

The most common Freestyle-related question Coke gets from consumers: When will it be available in my town?

Back at the bustling World of Coca-Cola exhibit, where six Freestyle machines are attracting lots of visitors this spring break, one little boy, who looks to be about 6-years-old, confidently shows his mother how to use the machine. He creates his drink on the touch-screen, watches the beverage descend and drinks it down in about six gulps. He smiles with lips that have turned an orange-ish shade of purple.

With a hopeful look, he begs his mom, "Can I try it again?"

This, of course, is Freestyle's very purpose.

Another young co! nvert.

Houston, Facebook Has a Problem

Last week, women activists came together and called on Facebook (NASDAQ: FB  ) to remove photos that glorify domestic violence against women, including rape. In order to force a change in policy, the collaborators called on Facebook users to contact advertisers whose ads appear next to these heinous depictions. By the time Facebook responded to the over 50,000 tweets and 5,000 emails, the damage had already been done. Fifteen advertisers had pulled their campaign from the social media network, including Nationwide U.K. and Nissan U.K.

In this video, Fool contributor Steve Heller explains why he believes that Facebook could have an even bigger problem on its hands.

After the world's most-hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.

Best Growth Companies To Invest In Right Now

Best Growth Companies To Invest In Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Monica Gerson]

  Medifast (NYSE: MED) is expected to post its Q4 earnings at $0.36 per share on revenue of $80.83 million.

  Full House Resorts (NASDAQ: FLL) is estimated to post a Q4 loss at $0.06 per share on revenue of $33.24 million.

• [By Monica Gerson]

  Analysts expect Medifast (NYSE: MED) to post its Q4 earnings at $0.36 per sha! re on revenue of $80.83 million. Medifast shares surged 2.19% to close at $26.08 on Friday.

• [By John Udovich]

  Last Friday, small cap dieting stock Weight Watchers International, Inc (NYSE: WTW) lost weight for investors when shares tumbled 27.73% to $22.10, meaning its probabaly a good idea to take a closer look at the stock along with other small cap weight loss or dieting stocks like NutriSystem Inc (NASDAQ: NTRI), Medifast Inc (NYSE: MED) and Reliv International, Inc (NASDAQ: RELV). Why did Weight Watchers International loose weight last Friday? The company reported its fourth straight quarterly sales decline as fewer people attended meetings and bought its products and also projected earnings that trailed analysts' estimates with the blame being placed on new mobile applications and bracelets that track calories – thus hurting traditional diet companies.

source from Top Stocks Blog:http://www.topstocksblog.com/best-growth-companies-to-invest-in-right-now-2.html

Hot India Companies To Buy Right Now

Hot India Companies To Buy Right Now: Infosys Technologies Limited(INFY)

Infosys Ltd. provides information technology (IT) and consulting services worldwide. It offers IT services, such as application, architecture, independent validation and testing, information management, infrastructure, packaged application, SOA, systems integration, and knowledge services; product engineering services, manufacturing process and plant solutions, and product lifecycle management services; and consulting services in the areas of information and technology strategies, product innovation, next generation commerce, process excellence, and learning and complex change. The company also provides business process outsourcing solutions in the areas of business platforms, customer service outsourcing, finance and accounting, human resources outsourcing, legal services, sales and fulfillment, and sourcing and procurement outsourcing. In addition, it offers collaborative analytics solutions; digital consumer platform; Finacle universal banking solution; iProwe, a Web ac cessibility assessment product; mConnect, a real-time enterprise middleware; and research and analytical support services. Further, the company offers unified communications and collaboration solution that streamlines business processes between employees, customers, and suppliers; iTransform that helps healthcare organizations accelerate transition to new platforms; and supply chain visibility and collaboration product suite. It serves aerospace and defense, airlines, automotive, banking, capital markets, communication services, consumer packaged goods, manufacturing, education, energy, healthcare, high technology, hospitality and leisure, insurance, life sciences, logistics and distribution, publishing, resources, utilities, and retail industries. Infosys Ltd. has a strategic partnership with Alstom SA. The company was formerly known as Infosys Technologies Limited ! and changed its name to Infosys Ltd. on June 16, 2011. Infosys Ltd. was founded in 1981 and is headquartered i n Bengaluru, India.

Advisors' Opinion:

• [By Robert Martin]

  Infosys (INFY), Housing Development Finance and Reliance Industries LTD are the top three holdings, with weightings between 8% and 10.5%. Of course, just about any India ETF will have a heavy  allocation to Infosys and Reliance. However, INDA dedicates a lower percentage to energy than some of the alternatives, and instead leans more on IT and consumer spending.

• [By Aaron Smith]

  The government accused software developer Infosys (INFY) of using workers with B-1 visas, which only allow temporary entry into the U.S. for business purposes, to perform skilled labor jobs.

• [By Brian Stoffel]

  That helps explain why Accenture and IBM, the industry's two biggest players, have been able to gobble up so much market share. But there's a second tier of technology-consultants -- in terms of sheer size -- as well. That's where Cognizant, as well as its main competition -- Infosys (NYSE: INFY  ) and Wipro (NYSE: WIT  )  -- come in to play.

• [By Michael Flannelly]

  Shares of Infosys Ltd (INFY) spiked in pre-market trading on Friday after the software company posted second quarter earnings and revenues that beat Wall Street expectations.

  The India-based company posted a second quarter net income of $383 million, or 67 cents per share, down from $431 million, or 75 cents per share, posted in the same period last year.

  The company’s earnings per American Depository Share, or ADR, came in at 73 cents per share. According to analysts at Thomson Reuters, the company was expected to earn 70 cents per share in the quarter.

  Infosys’ quarterly revenues came in at $2.066 billion, up from the $1.797 billion posted in the same quarter last year. On average, analysts were expecting the company to s! ee $2.01 ! billion in revenues.

  “During the quarter we witnessed broad-based volume growth, robust client additions, five large deal wins and increased sales momentum of our big data and cloud offerings. This growth is a result of our focus on execution, which helps our clients achieve their objectives.” said S. D. Shibulal, CEO and Managing Director.

  “We will continue with planned investments and initiatives to explore new avenues of growth. We remain watchful of the sustainability of improving global economic fundamentals”, he added.

  Looking ahead, the company sees revenues growing between 9% and 10% in fiscal 2014.

  Infosys shares were up $2.72, or 5.41%, during pre-market trading on Friday. The stock is up 18.87% year-to-date.

source from Top Stocks Blog:http://www.topstocksblog.com/hot-india-companies-to-buy-right-now.html