How much does Thanksgiving dinner cost?

Here's another reason to be thankful this holiday season — the cost of putting Thanksgiving dinner on the table is down slightly from last year.

But don't bank on those savings for any big Black Friday splurges. The average Turkey Day dinner will cost $49.04, or just 44 cents less this year than it did in 2012. And while every penny counts, if you need to do any traveling to belly up to the big meal, increases in airline and train tickets mean that 44 cents won't get you very far.

The good news is that after some steep price hikes during the economic downturn about five years ago, food prices have remained mostly stable this year. It's a welcome change from 2011, when the cost of Thanksgiving dinner jumped $5.73, up from $43.47 in 2010, according to the annual informal survey of consumer grocery prices performed by the American Farm Bureau Federation.

The group estimates the cost by averaging non-sale food prices around the country based on feeding 10 people a meal of turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, carrots and celery, pumpkin pie with whipped cream, and coffee and milk. And yes, their estimates account for the need for those all-important leftovers.

The credit for this year's slight drop in price goes to stable commodity and fuel prices, both strong drivers of the prices consumers pay at the store, says Ricky Volpe, a research economist with the USDA's Economic Research Service. He says overall grocery prices are down about one-tenth of a percent since January.

One exception — poultry. Though the Farm Bureau didn't detect a price increase in turkey since last year (they actually found the price for a 16-pound bird down 47 cents), Volpe says consumers shouldn't be surprised if that component of the meal jumps as much as 5% over last year. Higher demand and feed prices are to blame.

However, you might save a bit of cash on gas when you head to the grocer to get your turkey. At the moment, drivers are paying about 25 cent! s less per gallon than they were a year ago, with a national average of $3.19, according to travel tracker AAA. And while the group hasn't issued a prediction for gas prices the week of Thanksgiving, they say that in recent years prices generally have dropped in the weeks leading up to the holiday.

Need another reason to drive? The average domestic airfare is up 9.5% from last Thanksgiving to $313, according to the Airlines Reporting Corp., which tracks tickets sold by online and by traditional travel agencies. Meanwhile, Amtrak prices in September (the most recent month for which data were available) were up more than 4% over a year ago.

Consumers won't be able to do much about the cost of travel, but there's always plenty of ways to spend less — and a lot more — on food.

The Farm Bureau estimate budgets $2.18 for a dozen brown-and-serve dinner rolls. But if you're willing break out a recipe and bake your own, a home cook could cut almost a dollar off that price. On the flip side, if you'd prefer to leave the cooking to others and purchase a ready-to-eat meal from a grocer, expect to pay a premium for the convenience, maybe $75 or more.

Likewise, if your tastes lean to the organic or heirloom end of the food spectrum, you won't find turkey for $1.36 a pound as the Farm Bureau did. Budgeting two or three times that is a safer bet.

And since it's impossible to escape holiday creep, we might as well break the bad news about your Christmas roast. Beef prices are at or near record highs this year, so you can expect to pay as much as 2.5% more than last year for that succulent rib roast you've been waiting all year for.

Beth J. Harpaz and Scott Mayerowitz contributed.

Top 5 Canadian Companies To Watch For 2014

Here are today's top news headlines from�Fool.com. Check back throughout the day as this list is updated, and follow us on Twitter at�TMFBreaking.

Stillwater CEO to Step Down

Consumer Credit Oozes Up 0.4%

Sagent Recalls Anesthesia Drug Dosages

Salesforce Hires a President

Integrys Applies for 6% Natural Gas Rate Increase

FedEx Increasing Freight Shipping Rates by 4.5%

iRobot, Cisco Team to Develop Video-Conferencing Robot

ECB Defends Bond Program Before German Hearing

AT&T Increases Wait for Subsidized-Phone Upgrade Eligibility

Dollar Tree Names New President

Duke Energy's New Indiana Coal Facility Begins Operation

Elan Rejects Latest Royalty Pharma Offer

McDonald's May Comps Rise 2.6%

AstraZeneca to Acquire Pearl Therapeutics for Up to $1.15 Billion

Sprint to Launch Its Own Smartphone

Canadian Solar Lands $301 Million Contract to Help Build Solar Power Plant

Top 5 Canadian Companies To Watch For 2014: ENI S.p.A. (E)

Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company also involves in the production and sale of electricity; refining and marketing of petroleum products; and production and sale of petrochemical products and hydrocarbons. In addition, it engages in the offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies. It has a strategic partnership with Gazprom for the joint development of projects in the upstream oil and gas markets. Eni SpA operates in Europe, Africa, Asia and Oceania, and the Americas. The company was founded in 1953 and is headquartered in Rome, Italy with an additional office in San Donato Milanese, Italy.

Advisors' Opinion:

• [By Sarfaraz A. Khan]

  Second, most of the unexplored and lucrative areas lie in the Middle East and Africa, a region which is known for its unstable business environment. For instance, Mozambique is home to enormous gas reserves and has been going on a path to prosperity over the last eight years, which is evident in its 7% GDP growth rates. Leading oil companies, such as Eni SpA (E) and Anadarko Petroleum (APC) have billions at stake in the country. However, the sudden termination of a peace deal by a rebel group recently has raised question marks over the country�� ability to attract investment.

Top 5 Canadian Companies To Watch For 2014: Everest Re Group Ltd.(RE)

Everest Re Group, Ltd., together with its subsidiaries, underwrites reinsurance and insurance in the United States (the U.S.), Bermuda, and international markets. The company operates in five segments: U.S. Reinsurance, U.S. Insurance, Specialty Underwriting, International, and Bermuda. The U.S. Reinsurance segment writes property and casualty reinsurance, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies within the United States. The U.S. Insurance segment offers property and casualty insurance primarily through general agents, brokers, and surplus lines brokers in the U.S. The Specialty Underwriting segment writes accident and health, marine, aviation, and surety business within the U.S. and worldwide through brokers and directly with ceding companies. The International segment offers non-U.S. property and casualty reinsurance. The Bermuda segment provides reinsurance and insurance to worldwide property and cas ualty markets and reinsurance to life insurers through brokers and directly with ceding companies, as well as offers reinsurance to the United Kingdom and European markets. The company was founded in 1973 and is based in Liberty Corner, New Jersey.

Advisors' Opinion:

• [By Marc Bastow]

  Reinsurance and insurance underwriters Everest Re Group (RE) raised its dividend 56% to 75 cents per share, payable on Dec. 18 to shareholders of record as of Dec. 4.
  RE Dividend Yield: 1.92%

• [By John Emerson]

  Last August, I purchased Everest Re (RE) when it fell within the value parameters outlined in today's article. I wrote an article about the stock titled: Everest Re: Low Risk High Reward http://www.gurufocus.com/news/143388/everest-re-low-risk-high-reward

Best Cheap Stocks To Buy For 2014: Information Services Group Inc.(III)

Information Services Group, Inc. operates as a fact-based sourcing advisory company principally in the Americas, Europe, and the Asia Pacific. It provides strategic consulting, benchmarking and analytics, managed services, and research services with a focus on information technology, business process transformation, and enterprise resource planning. The company serves financial services, telecom, healthcare and pharmaceuticals, manufacturing, transportation and travel, and energy and utilities industries; and state and local governments and airport and transit authorities. Information Services Group, Inc. was founded in 2006 and is based in Stamford, Connecticut.

Top 5 Canadian Companies To Watch For 2014: Higher One Holdings Inc.(ONE)

Higher One Holdings, Inc. provides technology and payment services in the United States. It offers a suite of disbursement and payment solutions for higher education institutions and their students. The company provides OneDisburse Refund Management product that offers higher education institutional clients with a technology service for streamlining the student refund disbursement process. It also offers CASHNet Payment suite that includes software-as-a-service products and services, such as ePayment to securely accept online payments for tuition, charges, and fees from students through credit card, pinless debit, and ACH; eBill to automate payer billing and processing functions; MyPaymentPlan to personalize students? payment plans; eMarket that allows academic, athletic, and other departments to take alumni donations, sell event tickets and other merchandise, and accept payments of event and conference registration fees; and Cashiering to operate and manage cashiering fu nctions, back office payments, and campus-wide departmental deposits. In addition, the company provides OneDisburse ID, which offers an option to combine the company?s debit card with the institution?s ID cards; OneDisburse Payroll to distribute payroll and other employee-related payments; OneDisburse PLUS product to distribute Parent PLUS loan refunds to parents on behalf of the school; and Financial Intelligence to students with an online class. Further, it provides student-oriented banking services to campus communities. Additionally, the company offers OneAccount product for students, as well as faculty, staff, and alumni, with an FDIC-insured online checking account and a debit MasterCard ATM card. Higher One Holdings, Inc. was founded in 2000 and is headquartered in New Haven, Connecticut.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By Roberto Pedone]

  One under-$10 business services player that looks poised for a run higher is Higher One (ONE), which provides technology-based refund disbursement, payment processing and data analytics services to higher education institutions and students. It also provides banking services to campus communities. This stock has been hit hard by the bears so far in 2013, with shares down by 26%.

  If you take a look at the chart for Higher One, you'll notice that this stock has been downtrending badly for the last three months, with shares plunging from its high of $11.93 to its recent low of $6.97 a share. During that downtrend, shares of ONE were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ONE have recently formed a double bottom chart pattern at $7.05 to $6.97 a share. This stock has now started to rebound sharply off that double bottom and move within range of triggering a near-term breakout trade.

  Traders should now look for long-biased trades in ONE if it manages to break out above some near-term overhead resistance at $7.85 a share and then once it clears its 50-day moving average at $8.11 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 196,360 shares. If that breakout triggers soon, then ONE will set up to re-test or possibly take out its next major overhead resistance levels at $9 to its 200-day moving average of $9.77 a share. This stock could even tag $11 a share if that 200-day gets taken out with volume.

  Traders can look to buy ONE off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.39 a share, or below $7 a share. One can also buy ONE off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 5 Canadian Companies To Watch For 2014: CF Industries Holdings Inc. (CF)

CF Industries Holdings, Inc., through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. It operates in two segments, Nitrogen and Phosphate. The Nitrogen segment principally offers ammonia, granular urea, urea ammonium nitrate solution, urea liquor, diesel exhaust fluid, and aqua ammonia. The Phosphate segment primarily offers diammonium phosphate and monoammonium phosphate. The company also owns 50% interests in the GrowHow UK Limited, a nitrogen products producer in the United Kingdom; Point Lisas Nitrogen Limited, an ammonia producer; and KEYTRADE AG, a global fertilizer trading company. CF Industries Holdings� customers include cooperatives and independent fertilizer distributors primarily in the midwestern United States. The company was founded in 1946 and is headquartered in Deerfield, Illinois.

Advisors' Opinion:

• [By Neha Chamaria]

  Some months back, closest competitor, CF Industries (NYSE: CF  ) announced plans to pump a massive $3.8 billion through 2016 on new nitrogen units in Louisiana and Iowa that will increase its nitrogen�volumes by one-third from the current level. What's important to note is the location of these projects ��the Midwest region. That's also where Agrium's greenfield project is based.

• [By Marc Bastow]

  Nitrogen and phosphate fertilizer manufacturer CF Industries (CF) raised its quarterly dividend 150% to $1 per share, payable Nov. 29 to shareholders of record as of Nov. 15.
  CF Dividend Yield: 1.85%

• [By Greg Quinn]

  The company�� strength in faster-growing western Canadian provinces, bolstered by employment in mining and oil-sands projects, has helped it grow, said Derek Dley, vice president of equity research at Canaccord Genuity (CF) in Toronto.

Twentysomethings, Read This Before Moving Out of Mom and Dad’s Place

The economy hasn't been easy on twentysomethings. Job growth is abysmal, and a college degree no longer guarantees a job right out of school.

For many college graduates, moving back in with mom and dad was the easy answer. Some 21% of college graduates aged 18-34 live at home with their parents. But moving out may not be as easy as packing your bags to find a new place to live.

Here's a few things you should know:

Apartments are as full as ever
One thing few realize is that competition for rental property is as tough as the job market. Reuters reported that the third-quarter vacancy rate for apartments fell to 4.2%, to the lowest level in more than a decade.

For every 25 apartments, there's only one opening. And for each opening, there are several families, singles, and roommates looking for a new dig.

Source: Calculated Risk Blog

With vacancy rates so low, landlords have piles of applicants to shuffle through. Sam Dogen, a real estate investor and blogger at Financial Samurai, told me that he looks carefully through each application and their credit report:

The credit report is like a window to someone's financial soul. I look through every line item carefully to see if there are any delinquencies and ask the prospective tenants to explain their side of the story if I see potential. Given the average credit score for rejected mortgage applicants is roughly 729, I have a tendency to look for tenants with credit scores in the 730 or higher.

Historically, apartments have been a solution for many who couldn't buy a home on their own. But with the rental market so tight, you may find that units are only open to people with credit fit for a prime mortgage.

Just enough income isn't enough
When apartments can afford to be choosy, they can increase their income requirements. Many apartment building operators are looking for tenants that have a gross annual income (income before taxes) equal to three times annual rent. Thus, to rent an apartment at $1,000 per month, future renters would need $36,000 in annual gross income.

This is particularly difficult for twentysomethings to achieve in areas with a high cost of living. While student loans may have funded a dorm room in college, you'll need to show that you have the income to more than afford an apartment. Some select communities require as much as six months to one year at the same job, which can come back to bite twentyomethings who have recently accepted a new position.

Student loan debt can crimp rental affordability
Don't bank on a landlord to skip over your credit report. A landlord can see how much debt you have, who you owe it to, and extrapolate from the numbers how much you're paying to service the debt. If you have $26,000 in student loan debt like the average 2013 graduate, your monthly payments will come to about $292 per month.

Landlords know that payments on credit cards and student loans are money that you won't have to pay rent. Paying down credit cards and refinancing student loans -- if possible -- will help you boost your creditworthiness while reducing the amount of cash that you send to lenders, making you a better future tenant.

References help
Offering advice to landlords, Dogen told me "a prospective tenant might look cordial and pretty on the outside, but do not skip out on verifying employment ... and interviewing their previous roommates and landlord."

Many fresh graduates may not have a reference worthy of an application. If you paid your rent late in college, you might not want to put your previous landlord down as a reference. But without references, some may be unwilling to offer their place to a twentysomething. Face it: When landlords have a choice between a mature husband and wife and a fresh graduate, the older folks have an edge.

Moving out takes time
The simple reality is that moving out isn't as easy as picking a new place to live; a new place to live has to pick you. With so many people chasing too few apartments in communities all around the United States, waiting to firm up your career and personal finances can give you a leg up on getting the place you'd love to live in.

Start investing today
Millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, too scared to invest and put their money at further risk. Yet those who've stayed out of the market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal-finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Where Have all the Shoppers Gone?

Recently, not just one, but three major retail outlets announced disappointing third quarter sales numbers, and MoneyShow's Jim Jubak, also of Jubak's Picks, wonders if this might be indicating shoppers' sentiment this holiday season.

Nobody expects Sears Holdings (SHLD) to report earnings growth—and the company didn't disappoint last Thursday, when it announced a $534 million loss for the three months that ended on November 2 and a 3.1% drop in same store sales.

But last Thursday, Target (TGT) and Abercrombie & Fitch (ANF) also reported disappointing third quarter sales.

Which certainly suggests that the better-than-expected retail sales growth for October, reported by the Census Bureau earlier last week, is going to turn out—at best—to be very spotty indeed. At 0.4% growth in October, this isn't a tide running strong enough to lift all boats.

Target, at least, has a one-time excuse. The company's expansion into Canada is proving to be really, really rough going. Costs for expanding into Canada, and discounts Target had to offer to move excess inventory at its 124 Canadian stores, took 29 cents a share out of earnings for the quarter.

This excuse doesn't explain, however, why the company reduced guidance in the fourth quarter for US same store sales to flat, which would put results below Wall Street expectations.

Abercrombie & Fitch looks like it may have lost its fashion edge, just when it needs that boost to carry it through a tough holiday retail season. For the third quarter, US same store sales fell 14% year over year. You can see the company's problems in its inventory numbers for the quarter. Total inventory rose 22% from the third quarter of 2012. This continues a pattern of over-buying, leading to inflated inventories, and to subsequent price-cutting and promotions that eat into profit margins.

A comment from the Credit Suisse analyst report on Abercrombie earnings nails the problem at the company—but also suggests a wider problem for the retail sector (and the economy as a whole). "We believe," the analyst wrote, "the company can no longer sell jeans at a $70-160 price point to teen consumers who have comparable options at $30-50."

And if teens are now price-conscious, I'm left wondering who isn't in this economy.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did not own shares of Abercrombie & Fitch, Sears Holdings or Target as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here.

5 Under-$10 Stocks Moving Much Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Bio-Rad Laboratories

Bio-Rad Laboratories (BIOS) manufactures and supplies the life science research, health care, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials. This stock closed up 0.61% to $8.29 in Tuesday's trading session.

Tuesday's Range: $8.10-$8.31

52-Week Range: $7.97-$17.62

Tuesday's Volume: 710,000

Three-Month Average Volume: 1.33 million

From a technical perspective, BIOS rose modestly higher here right above its 52-week low of $7.97 with lighter-than-average volume. This stock has been downtrending badly for the last three months, with shares plunging from its high of $17.62 to its low of $7.97. During that move, shares of BIOS have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of BIOS into oversold territory, since its current relative strength index reading is 27.43. Oversold can always get more oversold, but it's also an area where a stock can explode higher form.

Traders should now look for long-biased trades in BIOS as long as it's trending above its 52-week low of $7.97 and then once it sustains a move or close above Tuesday's high of $8.31 with volume that hits near or above 793,930 shares. If we get that move soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance level at $9.22. Any high-volume move above $9.22 will then give BIOS a chance to make a large move back towards its 50-day moving average of $11.20 to more resistance at $12.

Mecox Lane

Mecox Lane (MCOX) offers a selection of products apparel, accessories and home and health care products through its online platform and third party e-commerce websites. This stock closed up 13.5% to $4.10 in Tuesday's trading session.

Tuesday's Range: $3.62-$4.18

52-Week Range: $1.67-$7.88

Tuesday's Volume: 274,000

Three-Month Average Volume: 238,211

From a technical perspective, MCOX exploded higher here right above some near-term support at $3.42 and back above its 50-day moving average of $4 with above-average volume. This stock has been trending sideways and consolidating over the last two months, with shares moving between $3.23 on the downside and $4.58 on the upside. This spike on Tuesday is quickly pushing shares of MCOX within range of breaking out above the upper-end of its recent range. That trade will hit if MCOX manages to clear Tuesday's high of $4.18 and then above more resistance at $4.58 with high volume.

Traders should now look for long-biased trades in MCOX as long as it's trending above its 200-day at $3.24 and then once it sustains a move or close above those breakout levels with volume that hits near or above 238,211 shares. If that breakout hits soon, then MCOX will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 52-week high at $7.88.

China Techfaith Wireless Communication Technology

China Techfaith Wireless Communication Technology (CNTF) engages in the original design, development and sale of handsets. This stock closed up 16.5% to $1.62 in Tuesday's trading session.

Tuesday's Range: $1.40-$1.62

52-Week Range: $0.93-$1.94

Tuesday's Volume: 1.65 million

Three-Month Average Volume: 283,565

From a technical perspective, CNTF exploded higher here right above its 50-day moving average of $1.32 with heavy upside volume. This move also pushed shares of CNTF into breakout territory, since the stock took out some near-term overhead resistance at $1.58. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $1.11 to its intraday high of $1.62. During that move, shares of CNTF have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in CNTF as long as it's trending above its 50-day at $1.32 and then once it sustains a move or close above Tuesday's high of $1.62 to more resistance at $1.70 with volume that hits near or above 283,565 shares. If we get that move soon, then CNTF will set up to re-test or possibly take out its 52-week high at $1.94. Any high-volume move above $1.94 will then give CNTF a chance to tag $2.50 to $2.70.

Roundy's

Roundy's (RNDY) is a food retailer in the state of Wisconsin. This stock closed up 2.5% to $9.14 in Tuesday's trading session.

Tuesday's Range: $8.87-$9.15

52-Week Range: $3.69-$9.87

Tuesday's Volume: 444,000

Three-Month Average Volume: 388,666

From a technical perspective, RNDY jumped higher here right above its 50-day moving average of $8.70 with above-average volume. This stock recently formed a double bottom chart pattern at $7.83 to $8.05. Following that bottom, shares of RNDY have started to uptrend and move back above its 50-day. That move has now pushed shares of RNDY within range of triggering a big breakout trade. That trade will hit if RNDY manages to take out some near-term overhead resistance levels at $9.25 to $9.32, and then once it takes out its 52-week high at $9.87 with high volume.

Traders should now look for long-biased trades in RNDY as long as it's trending above its 50-day at $8.70 or above more support at $8.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 388,666 shares. If that breakout triggers soon, then RNDY will set up to enter new 52-week-high territory above $9.87, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $10.63 to its all-time high at $12.33.

Acorn Energy

Acorn Energy (ACFN) provides digital solutions for energy infrastructure asset management. This stock closed up 1.8% to $8.83 in Tuesday's trading session.

Tuesday's Range: $3.23-$3.44

52-week Range: $2.85-$9.90

Tuesday's Volume: 362,900

Three-Month Average Volume: 201,151

From a technical perspective, ACFN rose modestly higher here and broke out above some near-term overhead resistance at $3.38 with lighter-than-average volume. This stock has been downtrending badly for the last two months and change, with shares plunging lower from its high of $9.90 to its 52-week low of $2.85. During that downtrend, shares of ACFN have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of ACFN have started to rebound sharply off that $2.85 low and off oversold conditions with heavy upside volume flows. The current relative strength index reading for ACFN is 25.48. Oversold can always get more oversold, but it's also an area where a stock can rip sharply higher from.

Traders should now look for long-biased trades in ACFN as long as it's trending above its 52-week low of $2.85 and then once it sustains a move or close above resistance at $3.50 with volume that hits near or above 196,718 shares. If we get that move soon, then ACFN will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to its 50-day moving average of $5.80.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Catering to Customers in the Software Industry

Innovation and friendliness are two stewards that software developers value highly in order to retain and attract customers. Applications that are easy to navigate and to use have proved to be highly valued by users. Some companies were able to meet the challenge and deliver tailor made products, among them are: Sap Aktiengesellschaft (SAP) and Adobe Systems (ADBE). But, does catering to customer preferences generate profits?

Developing Cloud Customers

Headquartered in Germany, and with regional offices around the globe, SAP is a leading software solutions developer. The firm also provides consulting, training, and other services for the wide range of products offered. The latest product introductions have been very well received in the Americas, the most important market to the firm. Also, SuccessFactors and Ariba have provided the company with one of the best cloud portfolios in the industry.

On the upside, the open ecosystem strategy continues to fare well for the company. Innovation has been one of the stewards behind the strategy, allowing partners to develop additional customer value. The strategy has the consequence of sharing innovation responsibilities, allowing the firm to draw feedback from small to big companies that are in constant dialogue with customers. In turn, positive results measured by growth have been observed among the companies five segments: analytics, cloud, mobile and database, and technology.

SAP also implemented a specific strategy for market expansion. The approach is systematic and implies selecting a region, then a market, and finally an industry. By default, there can be great differences between markets in the same region. The company identifies those that are growing the fastest, and then directs investments through its go-to-market coverage model to effectively sell industry-specific solutions.

SAP is financiallymoderate because cash has dwindled amid recent acquisitions, and stands close to debt levels.Currently trading at 21.1times i! ts earnings, the stock packs a 55% discount to the industry average. I share the positive sentiment demonstrated by Frank Sands, Jim Simons, Steven Cohen and Chris Davis' latest position increments. I value the emphasis placed on customer needs, and the company's partnerships for product development.

Subscribing Cloud Customers

With a base in Mountain View, Calif., and branches across the U.S., Europe and Asia, Adobe provides graphic design, publishing and imaging software. Last quarter results have been good overall, and management made public its encouraging forward revenue guidance. Nonetheless, analysts continue to question the firm's decision to move to a subscription-based service. They argue that revenues will be affected in the short term, aggravated by slow recovery at end markets and high exposure to the European market.

In addition to switching to a subscription-based service, Adobe has also entered the cloud business decisively. According to the company, the new business model allows for more pricing options and flexibility to users. Even the Creative Solutions platform, the most important product when it comes to revenues, has been switched to the cloud-subscriptions based model. Amid revenue shortcomings in the short term, positive long-term outlook is based on predictable revenues. And the cloud based system is expected to be a positive catalyst for overall performance.

To counter competition and ease the loss of market share in the web design segment, Adobe has revamped investment on HTML 5. Updates have been done to the company's products to ease interaction with HMTL 5, and an additional set of tools have been developed. The digital market place is however, a new ground to the firm. A series of acquisitions, being Omniture the latest, continues to tell the interest paid by the firm to this growing segment.

Adobe's finances are strong. Trading at 58.1 times its earnings, the stock carries a 23% premium to the industry average. The largest gurus h! olding a ! position in the company, Dodge & Cox, have not modified his positions through 2013. His standstill however, does not align with my optimism. The company has made simple tweaks to a business model that is bound to deliver profits.

Clouding Is Not Enough

I like both companies because they pay attention to what the clients' needs are, and make a profit with a tailor made service. I do not mean to say the companies will develop a product for each client, but serving to industry wide preferences is a very positive point in my balance. I understand that SAP goes a step further by developing partners and increase feedback, and prefer it for a prospective investment.

Disclosure: Vanina Egea holds no position in any of the mentioned stocks.

Dow Hits Another Record, but Lumber Liquidators and Fresh Market Tumble

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

You wouldn't be remiss to think a rising stock market is now one of life's guarantees alongside death and taxes. Week after week this year, stocks have moved inexorably higher, despite a weak economy, the government's recurring inability to make the most basic decisions, and federal spending cuts. Today, the S&P 500 closed above 1,800 for the first time today, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) moved further into uncharted territory north of 16,000, both scoring their seventh straight weekly gains. Even the Nasdaq is less than a percentage point from hitting 4,000, after gaining more than 30% this year. Yesterday's enthusiasm about Janet Yellen's preliminary confirmation and a strong unemployment claims report seemed to carry over to today, lifting the S&P 500 0.5% and the Dow up 0.3%.

Despite the broad market gains, not every stock was a winner today. Shares of Lumber Liquidators (NYSE: LL  ) were getting taken to the woodshed, falling 12% after Whitney Tilson, head of the Kase Capital Management hedge fund, announced a short position in the high-flying wood-flooring specialist. At an investor conference, Tilson noted a government investigation into potentially illegal timber imports by Lumber Liquidators, and suggested the company's gross margins, which have improved to better than 40% lately, were too good to be true. The hedge fund manager also cited a report from the non-profit Environmental Investigative Agency that said Lumber Liquidators' purchases "have fueled rampant illegal logging in Eastern Russia." Shares of the flooring retailer had more than doubled this year before today's drop, riding the broader housing recovery.

The Fresh Market (NASDAQ: TFM  ) also took one on the chin, falling 19% after an across-the-board poor quarterly earnings report. The Whole Foods rival reported flat per-share profit growth at $0.23, missing estimates of $0.26. Sales also fell short, growing 13% to $364 million, and same-store sales improved only modestly by 3.1%. Management cited "increasingly challenging economic conditions" for the rough quarter, but the company's outlook also came up weak as the Fresh Market guided for full-year EPS of $1.42.-$1.47, below the consensus at $1.53. For a company that calls itself "high growth" and a stock that's priced similarly, Fresh Market will need bottom-line growth above 10% to keep shares from falling even more.

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On Fannie, Freddie Reform, Wall Street Is Left of Maxine Waters

NEW YORK (TheStreet) -- It is a strange world when the call to keep bailed-out mortgage finance giants Fannie Mae  (FNMA) and Freddie Mac  (FMCC) alive and preserve the government's legacy contribution to American homeownership comes not from Washington liberals but from Wall Street.

Practically every reform proposal being considered in Congress supports the winding down of the government-sponsored entities or GSEs, ending the implicit government subsidy that fueled an unsustainable growth in homeownership in the run up to the bubble.

Yet, big institutional investors are arguing that the companies, which are now making record profits and will have paid out dividends almost equal to the $188 billion in bailout money by December, should be rehabilitated and privatized.

"In this country we fix valuable businesses by restructuring; we do not simply throw them away," Fairholme Fund's Bruce Berkowitz said last week. The billionaire investor is proposing that the mortgage insurance businesses of the agencies be recapitalized and spun off into two private, state-regulated insurance companies. The new companies would be capitalized with $34.6 billion from the conversion of the GSE's junior preferred stock to common shares. At least another $17 billion of new capital would be raised from the junior preferred stockholders in a rights offering. The proposal was touted as an answer to the broad bipartisan call for more private capital in the private sector, but the likelihood of it being accepted appears slim. "An offer of this nature would not be in the public interest," Senator Bob Corker (R.,Tenn) told Bloomberg in an email. "Without meaningful legislative reform we would still have dominant entities owned by the private sector but operating with an implied government guarantee, leaving taxpayers at great risk." Berkowitz is one of a small group of professional investors who, in recent years, have scooped up Fannie Mae and Freddie Mac common and preferred shares for pennies on the dollar. Early investors bet that the companies would return to profitability and repay the government, a la AIG (AIG), but their hopes were quashed when the Treasury amended the bailout agreement in 2012. Under the revised terms of the agreement,the companies had to sweep almost all of their profits to the Treasury as dividends. This effectively prevented them from building capital that would allow them to repay the government.

Berkowitz and other investors including hedge fund Perry Capital have filed lawsuits against the Treasury, arguing that it violated shareholder property rights when it amended the agreement. The Treasury says it has acted appropriately. Despite the likelihood of a long-drawn legal battle with the government, the investor interest in GSE shares has only grown. On Friday, activist investor Bill Ackman's Pershing Square Capital Management disclosed that it had a roughly 10% stake in Fannie and Freddie common shares. The fund said in a filing that it would be in discussions with the management and the government about the restructuring of the companies. The Fannie/Freddie trade may have attracted major league investors but political analysts believe the bets could backfire as there is no appetite in Washington to a) return the agencies to their former avatars as publicly- traded companies with a federal charter and b) allow Wall Street firms to profit off their restructuring.

Both the Corker-Warner bill, the bipartisan reform effort put forward by the Senate Banking Committee and the PATH bill, advanced by House Financial Services Committee Chairman Jeb Hensarling, call for a new mortgage finance system to replace the GSEs.

What's surprising is that these proposals to kill Fannie and Freddie, two agencies that helped subsidize homeownership for decades, have elicited little protest from the far left.

Even Congresswoman Maxine Waters (D.,Calif.), the House Financial Services Committee's top ranking Democrat, who was once an avid supporter of Fannie Mae and Freddie Mac, appears to have accepted a future without the agencies and is proposing an alternative model.

"Both sides of the aisle absolutely believe that we have got to do reform because of what happened with the subprime meltdown that we experienced in this country," she said at a recent housing policy forum organized by the Bipartisan Policy Center. "But I have to tell you, even if I wanted to say 'look how well Fannie and Freddie are doing, let's just leave them alone and let them keep going,' we are past that point now. We can't do that. Despite the fact that they are doing well, everyone remembers what happened. They remember the debt, they remember the meltdown, they remember the foreclosure and the fact that Fannie and Freddie undermined their own [underwriting] criteria when they were challenged." Waters is expected to introduce a proposal that calls for a cooperative-owned securities issuer that would address the "perverse incentives created by Fannie Mae and Freddie Mac's ownership structure of private shareholders." So what makes these big investors think the government will change its mind, given that even the most liberal policymakers are against the status quo? Perhaps they believe that it is only a matter of time before policymakers are swayed by populist sentiment. Winding down and replacing the GSEs with a brand new, untested housing finance model could be hugely disruptive to the mortgage market and could destabilize housing, they argue. Does the government really want to risk rocking the housing market, which has just begun to recover? Even if the government was to continue offering a limited guarantee, analysts say the cost of mortgage credit may rise as much as 100 basis points as private capital would demand a higher return for their risk than the GSEs.

Policymakers who promise reform have the tough job of explaining to their constituents that their mortgage rates are going to go up.

Sure, that may be the price taxpayers have to pay for a safer housing market. But political observers also know how difficult it is to roll back subsidies.

Consider the recent efforts to raise flood insurance premiums to repair the finances of the National Flood Insurance Program. The Briggert-Waters Flood Insurance Reform Act of 2012 was a bipartisan plan that instructed the Federal Emergency Management Agency or FEMA to phase out subsidies so that premiums more accurately reflect risk.

About 20% of policyholders are likely to see their premiums increase annually, though only a fraction of them will see really steep hikes. But there is a big push to delay the implementation of the rules from none other than Maxine Waters, who co-authored the reform bill. "I am outraged by the increased costs of flood insurance premiums that have resulted from the Biggert-Waters Act," she said in a statement. "I certainly did not intend for these types of outrageous premiums to occur for any homeowner. When I agreed to coauthor this legislation, our goal was to create a bipartisan solution to repair our National Flood Insurance Program. Neither Democrats nor Republicans envisioned it would reap the kind of harm and heartache that may result from this law going into effect." It is not hard to see this kind of pushback happening in the debate over housing finance reform.

Investors are betting that as the cost of mortgage reform sinks in, there will be a shift in thinking in Washington. Housing reform measures would likely be diluted and an increasing number of politicians might favor just "rebranding" Fannie and Freddie. That sounds plausible, especially if it happens to be an election year. But in trying to advance a populist agenda in Washington, Wall Street seems to have underestimated their own unpopularity. "We believe the prospects for significant recoveries on the GSE junior preferreds is inversely proportional to the amount of lobbying and public pressure fund managers exert. No matter the type of fund -- hedge, mutual, or private equity -- the bulk of lawmakers will publicly distance themselves from any proposal which could be framed as "enriching" money managers no matter its merits," Isaac Boltansky, an analyst with Compass Point said in a note last week. "Simply put: Wall Street is not viewed as a sympathetic constituency in D.C. and that fact will not change as the 2014 midterm election comes into focus."

Right now in D.C. it  apparently pays to be anti-Wall Street even more than it does to be pro-homeownership.

-- Written by Shanthi Bharatwaj in New York.
Follow @Shavenk

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Top 10 Blue Chip Stocks To Invest In 2014

In my early days as a dividend growth investor, I focused exclusively on the list of dividend aristocrats. It included 50 or so solid blue chips, each of which had managed to boost dividends for at least a quarter of a century. I liked the fact that this was a short list, which made screening for potential candidates for inclusion in my portfolio very easy.

As I kept digging however, I learned more about the historical changes in the S&P Dividend Aristocrats Index. I was very surprised to learn that some companies had been eliminated from the index, despite the fact that they kept increasing distributions. I also noticed that there were many companies which had raised dividends for over 25 years in a row, yet they were never included in the index, for whatever strange reason. Luckily, I had found the dividend champions lists, maintained by David Fish. While his list is as complete as possible, I would still advise income investors to get their hands dirty with as much information as possible, before eliminating an idea from their list for further research due to a low streak of consecutive dividend increases.

Top 10 Blue Chip Stocks To Invest In 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Daniel Sparks]

  Analysts expect Apple (NASDAQ: AAPL  ) to report revenue of $35.02 billion for the company's third quarter, according to Fortune's preliminary survey. As Fortune's Philip Elmer-DeWitt points out, that's the exact same number Apple reported in the year-ago quarter. Is zero growth Apple's new norm? Or, even worse, is decline Apple's future? Possibly -- but there are still a few potential growth drivers left for Cupertino's tech giant.

• [By Andrew Tonner]

  Shares of Apple (NASDAQ: AAPL  ) are limping into the second part of the calendar year, a period that is critically important for the company. As is typically the case, investors and consumers expect Apple to have some very big items in its product portfolio both in the short term and long term. So what's most likely to hit the market in the next six months, and what could that potentially mean for Apple and its investors? Fool contributor Andrew Tonner weighs in on some of the biggest Apple storylines to watch for during the rest of the year.

• [By Doug Ehrman]

  Recently both BGR�and MacRumors�reported on what are alleged to be leaked pictures of the new Apple (NASDAQ: AAPL  ) iPhone 5S, expected to be released later this fall. If the pictures are legitimate, while much of the functionality remains uncertain, it is clear that the newest member of the iPhone family will be the same size as the iPhone 5. Given a recent report by Fast Company�-- outlining that screen size is one of the three most important features as reported by consumers -- the failure by Apple to make the screen bigger should be of concern to investors.

Top 10 Blue Chip Stocks To Invest In 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Shauna O'Brien]

  On Wednesday, Philip Morris International Inc. (PM) announced that its board has approved a 10.6% increase to its quarterly dividend.

  PM has increased its dividend from 85 cents to 94 cents per share, or $3.76 annually.

  The dividend will be paid on October 11 to shareholders of record on September 26. The stock will go ex-dividend on September 24.

  Philip Morris shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.

Top 10 Cheap Stocks To Invest In Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Matt Thalman]

  Shares of IBM (NYSE: IBM  ) are down 1.3% today, perhaps because of the disappointing fourth-quarter results Oracle (NYSE: ORCL  ) posted yesterday. This is especially troubling because, as my colleague Alex Dumortier noted earlier today, the fourth quarter is historically Oracle's best in terms of sales. Investors may be concerned that this slowdown for Oracle will prove a trend for the� whole IT sector, includes Big Blue. Investors have been concerned about IBM growth prospects moving forward. The stock has struggled in 2013, rising only 1.85% year to date to make it the fourth-worst-performing Dow component of the year.

• [By Chris Hill]

  Dollar General's (NYSE: DG  ) first-quarter profits rose rose 3%, but the retailer cut guidance for the full year. Business market software maker ExactTarget (NYSE: ET  ) rose more than 50% after Salesforce.com (NYSE: CRM  ) agreed to buy the company for more than $2.3 billion. Zynga (NASDAQ: ZNGA  ) held firm after shares tanked on Monday in the wake of the company announcing it's cutting 18% of its staff. And IBM (NYSE: IBM  ) buys a company to better compete in the cloud computing space. In this installment of Investor Beat, our analysts discuss four stocks making big moves.

• [By Dan Caplinger]

  One of Accenture's biggest areas of growth has been in technology-related consulting, with the company having become the No. 2 IT consulting company in the world, trailing only rival IBM (NYSE: IBM  ) . Accenture's ability to take advantage of diversity in its employee ranks comes from its lack of a physical corporate headquarters, allowing employees to work in their home countries, and thereby attracting the most talented workers available in a given area. In particular, Accenture has focused much of its attention on India, with more than a quarter of its employees hailing from the subcontinent.

• [By Investometrica]

  If there is a reason I hear a lot for investing in IBM (IBM) nowadays, it is the popular 'argument from authority' fallacy: "Warren Buffett owns 67 million shares. Therefore I should own the stock."

Top 10 Blue Chip Stocks To Invest In 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Demitrios Kalogeropoulos]

  With casual-dining rivals such as McDonald's (NYSE: MCD  ) and Dunkin' Brands (NASDAQ: DNKN  ) pushing deeper into its coffee space, Starbucks (NASDAQ: SBUX  ) is set to push back. The company will be rolling out an expanded food menu soon. Fool contributor Demitrios Kalogeropoulos discusses why this makes sense for Starbucks, and what kind of boost it could give to the company's sales.

• [By Dan Caplinger]

  Unfortunately, the biggest news for Yum! this quarter has been bad. An outbreak of avian flu in China has resulted in fewer customers venturing out to Yum!'s eateries in the emerging-market nation. With KFC and its other restaurants in China accounting for more than half of the company's overall sales, Yum! has already warned that the outbreak has affected its results, with same-store sales in China down a whopping 13% in March on a 16% drop at KFC. McDonald's (NYSE: MCD  ) has seen some negative impact as well, but its smaller footprint in China and its less extensive reliance on chicken products has helped it avoid the full brunt of the declines. Despite Yum!'s efforts to educate consumers about its food's safety, China could keep hitting Yum!'s results for some time.

Top 10 Blue Chip Stocks To Invest In 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By John Maxfield]

  In terms of individual stocks, shares of Chevron (NYSE: CVX  ) are headed higher in afternoon trading after the oil giant reported first-quarter earnings (link opens PDF) before the bell. While the oil giant saw its revenue and net income decline by 6.4% and 4.5%, respectively, its earnings per share managed to come in ahead of estimates. For the three months ended March 31, the company earned $3.31 per share compared to the consensus estimate of $3.09 per share. Like ExxonMobil, which reported yesterday, Chevron's top and bottom lines were the latest victims of falling global oil prices.

Top 10 Blue Chip Stocks To Invest In 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By Jon C. Ogg]

  Colgate-Palmolive Co. (NYSE: CL) was raised to Overweight from Equal Weight and the price target is now $68 (versus a $59.93 close) at Morgan Stanley.

Top 10 Blue Chip Stocks To Invest In 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Sean Williams]

  The biggest concern for the two largest credit card processing companies -- MasterCard and Visa (NYSE: V  ) �-- is whether or not consumer spending is growing or slowing. If global dollars transacted and volumes are falling, that would mean less processing revenue for these giants. However, I can't actually recall the last time we saw a steady decline in credit card usage since the deep recession of 2009.

The Interesting Value ETF You Don't Know

NEW YORK (TheStreet) -- This past spring First Trust restructured its Strategic Value Index Fund and renamed it the First Trust Capital Strength ETF (FTCS).

The new fund falls into the "smart beta" category I have written about recently. Such funds use custom screens to select components from broad-based indices in an effort to outperform their benchmarks. [Read: Investment Ideas From Day 1 of the NY Value Investing Congress]

FTCS starts by identifying the 500 largest U.S. stocks that have at least $5 million in daily trading volume. The ETF screens those 500 stocks to find the ones with at least $1 billion in cash or short-term investments, a ratio of market cap to long-term debt of less than 30% and a return on equity greater than 15%. From there, it scores the stocks for volatility, and the fund purchases equal amounts of the 50 stocks that have the lowest volatility.

FTCS also has rules to avoid being overly concentrated in any single sector, capping exposure at 30%. The index is reconstituted quarterly. The current sector makeup favors industrials, at 20%, followed by consumer services at 19%, health care at 17%, consumer goods at 17% and tech at 10%. The fund has no exposure to utilities or telecom. Omitting those two sectors is logical because they tend to be very debt-heavy. FTCS is oriented toward large-cap stocks, so most of the names in the fund should be familiar to you, such as MasterCard (MA), Qualcomm (QCOM) and Nike (NKE). Interestingly, defense contractors make up 8% of the fund, which could smooth out the ride for FTCS if the situation in Syria escalates into a situation that is bad for the markets in general but good for defense stocks. First Trust has said that it converted its more traditional large-cap value fund into the Capital Strength fund after realizing that many investors are concerned about how fast the market has gone up in recent years and worried that the fundamentals do not necessarily support the big rally. [Read: 5 Breakout Trades to Take Ahead of the Fed] First Trust says that companies with the attributes identified by FTCS will better weather a large downturn or a period of increased volatility because those companies have more options with their cash and less financial risk because of their low debt.

Although First Trust hasn't said as much, it's also possible that it made the conversion after deciding that the original fund's lack of assets -- $37 million -- indicated the market didn't need another basic large-cap value fund.

Although the capital strength process yields a value tilt, it is not a carbon copy of other large-cap value funds offered by competitors.

The iShares S&P 500 Value ETF (IVE), the Power Shares Dynamic Large Cap Value Portfolio (PWV) and the Vanguard Mega Cap Value ETF (MGV) all have weightings greater than 20% in the financial sector compared to just 8% for FTCS. The other funds have much less exposure to the industrial sector than FTCS. [Read: Ex-JPMorgan Traders Could Face 20 Years in Prison]

Since FTCS started trading in its current incarnation these differences have not mattered because all four of these funds have traded in lockstep. Historically the industrial sector tends to decline more than the broad market during the bear phase of the cycle and then bounces back more than the broad market in new bull markets. Although First Trust seeks to offer a fund that is more resilient to bear market declines, the fund may not in fact do that if it still has its heaviest weighting in the industrial sector when the next large decline comes. At the time of publication, Nusbaum had no positions in securities mentioned. Follow @randomroger This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

This contributor reads: Credit Writedowns Pragmatic Capitalist Mike Shedlock Barry Ritholtz John Hussman On Twitter, this contributor follows: TheStalwart ETF Database zerohedge financial acrobat

EPA Reduces Ethanol Requirement, Archer Daniels Midland Falls

Hear that sound? That’s the sound of Archer-Daniels-Midland’s (ADM) shares running out of gas.

Associated Press

Archer’s stock has dropped 3.1% to $40.70 after reports that the EPA would cut the amount of ethanol required to be added to gasoline. The Wall Street Journal has the details:

The Environmental Protection Agency on Friday proposed for the first time to ease an annual requirement for ethanol in gasoline, acknowledging that mandated levels specified in a 2007 law are difficult, if not impossible, to meet.

The EPA is asking refiners in 2014 to blend 15.2 billion gallons of renewable fuel—most of it ethanol—into U.S. gasoline supplies. That is about 16% less than what Congress specified in a 2007 renewable fuels law. The law gives EPA the ability to lower the requirement.

Archer isn’t the only stock being hit today. Bunge (BG) has dropped 0.3% to $81.91, while Andersons (ANDE) has fallen 2.2% to $81.55.

Archer was already weak after reports that Australia would block its takeover of GrainCorp.

The Common-Size Analysis Of Financial Statements

A common-size financial statement is simply one that is created to display line items on a statement as a percentage of one selected or common figure. Creating common-size financial statements makes it easier to analyze a company over time and compare it with peers. Using common-size financial statements helps investors spot trends that a raw financial statement may not uncover.

All three of the primary financial statements can be put into a common-size format. Financial statements in dollar amounts can easily be converted to common-size statements using a spreadsheet, or they can be obtained from online resources like Mergent Online. Below is an overview of each and a more detailed summary of the benefits, as well as drawbacks, that such an analysis can provide investors.

Balance Sheet Analysis

The common figure for a common-size balance sheet analysis is total assets. Based on the accounting equation, this also equals total liabilities and shareholders' equity, making either term interchangeable in the analysis. It is also possible to use total liabilities when focusing on liabilities to indicate where a company's obligations lie and whether it is being conservative or risky in managing its debts.

The common-size strategy from a balance sheet perspective lends insight into a firm's capital structure and how it compares to rivals. An investor can also look to determine an optimal capital structure for an industry and compare it to the firm being analyzed. Then he or she can conclude whether debt is too high, excess cash is being retained on the balance sheet, or inventories are growing too high. The goodwill level on a balance sheet also helps indicate the extent to which a company has relied on acquisitions for growth.

Below is an example of a common-size balance sheet for technology giant International Business Machines - IBM (NYSE:IBM). Running through some of the examples touched on above, we can see that long-term debt averages around 20% of total assets ove! r the three-year period, which is a reasonable level. It is even more reasonable when observing that cash represents around 10% of total assets, and short-term debt accounts for 6% to 7% of total assets over the past three years.

It is important to add short-term and long-term debt together and compare this amount to total cash on hand in the current assets section. It lets the investor know how much of a cash cushion is available, or if a firm is dependent on the markets to refinance debt when it comes due.



Analyzing the Income Statement

The common figure for an income statement is total top-line sales. This is actually the same analysis as calculating a company's margins. For instance, a net profit margin is simply net income divided by sales, which also happens to be a common-size analysis. The same goes for calculating gross and operating margins. The common-size method is appealing for research-intensive companies, for example, because they tend to focus on research and development (R&D) and what it represents as a percent of total sales.

Below is a common-size income statement for IBM. We will cover it in more detail below, but notice the R&D expense that averages close to 6% of revenues. Looking at the peer group and companies overall, according to a Booz & Co. analysis, this puts IBM in the top five among tech giants and the top 20 firms in the world (2013) in terms of total R&D spending as a percent of total sales.



Common Size and Cash Flow

In similar fashion to an income statement analysis, many items in the cash flow statement can be stated as a percent of total sales. This can give insight on a number of cash flow items, including capital expenditures (capex) as a percent of revenue. Share repurchase activity can also be put into context as a percent of the total top line. Debt issuance is another important figure in proportion to the amount of annual sales it helps generate. Because these items are calculated as a percent of sales, they help indicate the extent to which they are being utilized to generate overall revenue.

Below is IBM's cash flow statement in terms of total sales. It generated an impressive level of operating cash flow that averaged 19% of sales over the three-year period from 2010 to 2012. Share repurchase activity was also impressive at more than 11% of total sales in each of the three years. You may also notice the first row, which is net income as a percent of total sales, which matches exactly with the common-size analysis from an income statement perspective. This simply represents the net profit margin.



How is This Different from the Regular Financial Statements?

The key benefit of a common-size analysis is it allows for a vertical analysis by line item over a single time period, such as a quarterly or annual period, and also from a horizontal perspective over a time period such as the three years we analyzed for IBM above. Just looking at a raw financial statement makes this more difficult. But looking up and down a financial statement, using a vertical analysis, allows an investor to catch significant changes at a company on his or her own. A common-size analysis helps! put an analysis in context (on a percentage basis). It is the same as a ratio analysis when looking at the profit and loss statement.

What the Common-Size Reveals

The biggest benefit of a common-size analysis is that it can let an investor identify large or drastic changes in a firm's financials. Rapid increases or decreases will be readily observable, such as a rapid drop in reported profits during one quarter or year. In IBM's case, its results overall have been relatively steady. One item of note is the Treasury stock in the balance sheet, which has grown to more than a negative 100% of total assets. But rather than alarm investors, it indicates the company has been hugely successful in generating cash to buy back shares, which far exceeds what it has retained on its balance sheet.

A common-size analysis can also give insight into the different strategies that companies pursue. For instance, one company may be willing to sacrifice margins for market share, which would tend to make overall sales larger at the expense of gross, operating or net profit margins. Ideally the company that pursues lower margins will grow faster. While we looked at IBM on a stand-alone basis, like the R&D analysis, IBM should also be analyzed by comparing it to key rivals.

The Bottom Line

As the above scenario highlights, a common-size analysis on its own is unlikely to provide a comprehensive and clear conclusion on a company. It must be done in the context of an overall financial statement analysis, as detailed above. Investors need to also be aware of temporary versus permanent differences. A short-term drop in profitability could only indicate a short-term blip, rather than a permanent loss in profit margins.

Two Buys with Very Low Risk

Two of our current recommended positions, both exchange-traded funds, qualify as very low risk investments, notes J. Royden Ward, editor of Cabot Benjamin Graham Value Investor.

iShares MSCI USA Minimum Volatility Index ETF (USMV) seeks investment results that correspond to the price and yield performance of the MSCI USA Minimum Volatility Index.

The ETF invests at least 90% of its assets in securities of the Index or in depositary receipts representing securities in the Index.

USMV is currently selling at a very small 0.14% discount to its net asset value. The price to earnings ratio (P/E) of the stocks contained in the ETF is 25.0, and the price to book value ratio (P/BV) is 5.41.

Both ratios are a little high, but beta, which is a measure of volatility, is a low 0.78. Management fees total 0.15%.

USMV is very well-diversified, with risk spread out over 134 holdings. The largest position consumes only 1.65% of the total portfolio.

The ten largest holdings in order of size are: TJX, Paychex, ADP, General Mills, Johnson & Johnson, PepsiCo, Bristol-Myers, Lockheed Martin, Chubb, and Eli Lilly.

The five largest sectors are: HealthCare, Financials, Consumer Staples, Information Technology, and Consumer Discretionary.

A recent report by Morningstar concluded: "in nearly every market studied, low-volatility stocks have outperformed high-volatility stocks." USMV is a great addition to everyone's portfolio. I expect USMV shares to reach my Min Sell Price of 47.00 within two years.

Meanwhile, the SPDR S&P Dividend ETF (SDY) holds all the companies in the S&P 1500 Index that have raised their dividends every year for the past 20 years.

The objective of SDY is to include companies that have increased their dividends consistently. Only 85 qualify out of 1,500 companies!

Companies with pristine dividend records tend to produce solid earnings and sustainable business models. Also, management is less likely to engage in reckless capital spending if one of the goals of management is to protect and grow the company's dividend.

SDY is currently selling at a very small 0.02% discount to its net asset value. The P/E ratio of the stocks contained in the ETF, based on current EPS, is 19.1, and the P/BV ratio is 2.74. Both ratios are reasonable, and the beta is below average at 0.77. Management fees total 0.35%.

SDY is quite well diversified with risk spread out over 85 holdings. The largest position is only 2.70% of the total portfolio.

The ten largest holdings in order of size are AT&T, HCP, Consolidated Edison, Abbvie, National Retail Properties, Nucor, Clorox, Chevron, Air Products, and Emerson Electric.

The five largest sectors are: Consumer Staples, Industrials, Consumer Discretionary, Financials, and Utilities.

SDY is a great substitution for bonds because of its 2.8% yield and steady performance. I expect SDY to reach my Min Sell Price of 103.00 within two years.

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Hey, Schwab, here’s how to increase the number of female advisers in your ranks

The Charles Schwab Corp. is looking for ways to boost the number of female financial advisers among its ranks after a survey found that 40% of its firms don't have a single woman advising clients.

The solution is not something quick, easy or particularly well-demonstrated by other financial firms. It's also something that Schwab's female financial advisers likely will have to lead.

Schwab has formed a task force to tackle the issue, but several female advisers attending the Schwab Impact Conference in Washington D.C. this week said the first step should be to get their male counterparts to recognize that they should have a woman on their team — and that they should make an effort to find one.

“We need to convince men that hiring a woman adviser can be a game changer for their business,” said Peggy Ruhlin, chief executive of Budros Ruhlin & Roe Inc.

Firms should demand that recruiters bring in qualified female candidates when they are looking to hire an adviser, she said. Many recruiters would have to up their game to do so, as only about 8% of client-facing advisers are women, according to Cerulli Associates Inc.

Another female adviser suggested that registered investment advisers try to hire “refugees” — the term she used for women who burn out while working for wirehouses and sometimes leave the industry altogether. These women should be targeted to join or start RIAs, she said.

Financial adviser Michelle Higgins said women need to be mentoring other women in the business and helping them advance their careers. She also said female advisers should be reaching out to financial planning schools to show female students that there are successful women in this industry.

Women also will have to discuss some of the cultural difficulties they face in the financial services business and debunk certain perceptions, including that clients don’t want financial help from women.

Female advisers at the Schwab conference told stories like a male colleague commenting, “I’d love to hire some gals” and of others who don’t want to hire a woman because she might get pregnant and take time off.

Ms. Ruhlin said it can be enlightening to a male colleague in certain circumstances when she suggests that he “think about if that were your daughter.” She asks him whether he would have considered certain decisions fair if someone else had done the same to his child.

A Record Year for MLP IPOs

There were 14 MLP IPOs in 2007. Until this year, that was the record, but so far in 2013 there have been 15 MLP IPOs with perhaps more to come before year end. One of the more recent IPOs was Sprague Resources (NYSE: SRLP), which debuted on Oct. 25.

Sprague Resources is engaged in the purchase, storage, distribution and sale of refined petroleum products. The partnership also provides storage and handling services for a broad range of materials. Sprague is one of the largest independent wholesale distributors of refined products in the Northeast US, owning and/or operating a network of 15 terminals located throughout the Northeast. These have a combined storage capacity of  9.1 million barrels for refined products and other liquid materials, and 1.5 million square feet of materials handling capacity.

Location of Sprague Resources LP’s terminals. Source: SRLP SEC filing

In the IPO, Sprague sold 8.5 million common units initially priced at $18, but the price has slipped since. The partnership forecasts a minimum quarterly distribution of $0.4125 per unit, or $1.65 per unit annually. As the most recent closing price of $17.60, that translates into a minimum annual yield of 9.4 percent.

Arc Logistics Partners (NYSE: ARCX) opened for trading on Nov. 6. This midstream partnership was formed by Lightfoot Capital to own, operate, develop and acquire a diversified portfolio of complementary energy logistics assets. The partnership is engaged in the terminalling, storage, throughput and transloading of crude oil and petroleum products. It intends to grow the business through the optimization, organic development and acquisition of terminalling, storage, rail, pipeline and other energy logistics assets that generate stable cash flows.

The 6 million common unit IPO opened flat at $19. ARCX plans to pay a minimum quarterly distribution of $0.3875 per unit each quarter, or $1.55 on an annualized basis. At the recent closing price of $19.04, this translates into an annual yield of 8.1 percent.

Midcoast Energy Partners (NYSE: MEP) is an Enbridge Energy Partners (NYSE: EEP)-backed LP that went public on Nov. 7. The partnership is a pure-play US natural gas and NGL midstream business with a 39 percent controlling interest in Midcoast Operating, a limited partnership that owns a network of natural gas and NGL gathering and transportation systems, natural gas processing and treating facilities and NGL fractionation facilities primarily located in Texas and Oklahoma. Midcoast Operating also owns and operates natural gas, condensate and NGL logistics and marketing assets that support its gathering, processing and transportation business.

The business primarily consists of gathering unprocessed and untreated natural gas from wellhead locations and other receipt points, processing the natural gas to remove NGLs and impurities at processing and treating facilities and transporting the processed natural gas and NGLs to intrastate and interstate pipelines for transportation to customers and market outlets. The partnership also markets natural gas and NGLs to wholesale customers.

The IPO raised $333 million by offering 18.5 million shares at $18. This was below the expected range of $19 to $21. MEP’s partnership agreement provides for a minimum quarterly distribution of $0.3125 per unit for each whole quarter, or $1.25 per unit on an annualized basis. At the recent closing price of $17.83 this equates to an annual yield of 7.0 percent.

The Refining MLP Bloodbath

I warned last week that refiners would report relatively poor earnings for Q3, and refinery MLPs could take a hit, presenting a buying opportunity. On Nov. 6 Alon USA Partners (NYSE: ALDW) reported a loss for the third quarter of $16.1 million, or ($0.26) per unit, compared with net income of $120.4 million for the same period last year. Paul Eisman, CEO and president, cited the deteriorating margins that I discussed in last week’s issue: “Our third quarter results were impacted by a volatile and deteriorating margin environment resulting primarily from decreasing discounts for West Texas crude oil.”

As a result, the partnership announced that there would be no money available for a quarterly distribution. Unit prices fell nearly 10 percent immediately after the earnings release, and continued to drift lower from there before today’s 9 percent rebound.

Calumet Specialty Products Partners (Nasdaq: CLMT) also reported a net loss for the quarter of $34.8 million, or ($0.54) per diluted unit, compared with net income of $42.4 million, or $0.69 per diluted unit, for the same quarter in 2012. Units traded down nearly 13 percent for the week.

Northern Tier Energy (NYSE: NTI) will report earnings this week. The partnership closed last week down less than 1 percent, but interested investors should find a cheaper entry point this week as earnings will undoubtedly be disappointing.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

Nouriel Roubini Warns of Bubbles in the Economic Broth

Noted bubble expert Nouriel Roubini, professor at NYU’s Stern School of Business and chairman of Roubini Global Economics, channeled PIMCO’s Bill Gross late last month by employing a soup metaphor to warn of economic woes to come.

The problem, Roubini noted, is the tradeoff between restoring robust growth and maintaining financial stability. The former requires policies that would potentially lead to economic bubbles while the latter does little to stimulate employment.

He begins by noting the alphabet soup of measures central banks been “served up” in recent years: ZIRP (zero-interest-rate policy); QE (quantitative easing, or purchases of government bonds to reduce long-term rates when short-term policy rates are zero); CE (credit easing, or purchases of private assets aimed at lowering the private sector’s cost of capital); and FG (forward guidance, or the commitment to maintain QE or ZIRP until, say, the unemployment rate reaches a certain target).

“And yet, through it all, growth rates have remained stubbornly low and unemployment rates unacceptably high, partly because the increase in money supply following QE has not led to credit creation to finance private consumption or investment,” Roubini wrote on the Project Syndicate website.

Instead, he added, banks have hoarded the increase in the monetary base in the form of idle excess reserves.

“There is a credit crunch, as banks with insufficient capital do not want to lend to risky borrowers, while slow growth and high levels of household debt have also depressed credit demand," he writes. "As a result, all of this excess liquidity is flowing to the financial sector rather than the real economy.”

Indeed, Roubini argued, the U.S. stock market and many others have rebounded more than 100% since the lows of 2009; issuance of high-yield junk bonds is back to its 2007 level; and interest rates on such bonds are falling.

“The collapse from 2007 to 2009 of equity, credit and housing bubbles in the United States, the United Kingdom, Spain, Ireland, Iceland and Dubai led to severe financial crises and economic damage.”

So, are we at risk of another cycle of financial boom and bust?

The trouble is that if macroeconomic policies advocated by central banks don’t work, the interest rate “would have to serve two opposing goals: economic recovery and financial stability. If policymakers go [slowly] on raising rates to encourage faster economic recovery, they risk causing the mother of all asset bubbles, eventually leading to a bust, another massive financial crisis, and a rapid slide into recession.”

If they try to prick bubbles early on with higher interest rates, he countered, they will crash bond markets and kill the recovery, causing much economic and financial damage. It’s a case of “damned if they do and damned if they don’t.”

“For now, policymakers in countries with frothy credit, equity, and housing markets have avoided raising policy rates, given slow economic growth,” he concluded. "With asset prices continuing to rise, many economies may have had as much soup as they can stand."

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Kellogg to cut 7% of workforce to reduce costs

BATTLE CREEK, Mich. -- Kellogg Co. will cut its global workforce by 7% over the next four years as part of an effort to cut costs, with the cereal maker citing weaker-than-expected sales for the third quarter of 2013.

It also lowered its outlook for the year.

The reduction effort, dubbed Project K, will produce cash savings expected to reach an annual run-rate of between $425 million and $475 million in 2018. The program's expected after-tax rate of return is about 30%. Alistair Hirst, the company's senior vice president of its global supply chain, told analysts Monday that the program will result in consolidation of plants and production lines.

It is "not an exercise in head-count reduction," he said, and the move is difficult but "necessary for the long-term health of the business."

The Battle Creek, Mich.-based company said in a statement that some employee notifications will take place this week.

Kellogg(K), the maker of Frosted Flakes and Special K, did not provide details on how Battle Creek workers would be affected by the program, but CEO John Bryant said that the company remains committed to the local community. He cited recent investments in its research and development facility, donations to area charities and the local impact of the company's Pringles acquisition.

"This is our hometown, we've been here for 106 years and our goal is to build a strong Kellogg Company long-term," said Bryant.

That strategy, he said, will ultimately help both Kellogg and Battle Creek.

Kellogg has more than 2,000 employees in Battle Creek, according to economic development group Battle Creek Unlimited's website. It is the city's largest employer, ahead of international auto suppliers based in the area.

“This is our hometown, we've been here for 106 years and our goal is to build a strong Kellogg Company long-term.”

— John Bryant, CEO of Kellogg Co.

According to FactSet, the company has a total of 31,000 employees, suggesting the company ! plans to cut about 2,170 jobs.

In a conference call, Bryant said that the program would help the company's efforts to reinvest in Kellogg's cereal business, increase brand-building and build "global category teams." Savings related to the program are expected to be minimal in 2013, he said.

Company executives also said that for the latest quarter it earned $326 million, or 90 cents a share. Not including one-time items, it earned 95 cents a share, which was above the 89 cents a share Wall Street expected.

A year earlier, the company earned $318 million, or 89 cents a share.

Revenue slipped to $3.72 billion and was short of the $3.73 billion analysts expected.

Kellogg's morning foods business in the U.S. has continued to struggle, falling by 2.2% in the quarter and suffering from disappointing cereal sales. The company again touted the success of its Pringles purchase last year, hoping the brand will build a bigger presence in its international markets. Its U.S. snacks sales, however, fell by 2.5%.

Kellogg stock closed up 43 cents Monday at $62.72 on the New York Stock Exchange.

Contributing: The Associated Press

Ocwen Steps To The Plate

The US real estate market is gaining some much needed momentum, and that’s great news for homeowners, real estate agents, and yes, stock market investors.

According to the National Association of Realtors, existing home sales were 10.7 percent higher in September than a year earlier. In addition, the average US home value was up 10 percent on a year-to-year basis, the 10th consecutive month of double-digit home price increases, the NAR reports.

“Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” says Lawrence Yun, chief economist at the NAR. “Expected rising mortgage interest rates will further lower affordability in upcoming months.”

Investors are pouring into the real estate market, too.

According to RealtyTrac.com, investor-only property purchases have totaled 950,000 since the end of 2011, with a value of over $1 trillion.

More than 78 percent of those purchases were “clean-up buys” of either underwater homes or foreclosed homes that help the housing market to recover. With fewer distressed properties on the market, the mortgage market is dealing with fewer troubled homeowners, and as a result is seeing the greatest activity since 2008, the launching point of the Great Recession.

For stock investors, a healthier mortgage market means more robust profits for select companies ideally positioned in the real estate sector.

Here’s one vote for Ocwen (NYSE: OCN), an Atlanta-based mortgage loan servicer.

Ocwen is trading at $53 and offers all the signs of a show horse ready to jump out of the gate and add another 20 percent to 25 percent of stock appreciation in the next six months.

Some of those reasons are already listed above, as a healthier mortgage market should boost Ocwen, which saw revenues double in the third quarter of 2013, to $531 million, from $232 million ! one year earlier.

Ocwen did see some financial headwinds in the last quarter, but they should be temporary. Most of the trouble centered around the company’s $2.5 billion purchase of servicing rights (totaling $78 billion) from OneWest Bank, and its recent purchase of the assets of Homeward Residential and Residential Capital, which weighed against the bottom line.

Ocwen chief executive officer Bill Erbey, speaking at an October 31 earnings call to analysts and reporters, said third quarter results were negatively impacted by the purchases, but said the firm would rebound going forward, primarily due to the stable transition on the OneWest and ResCap purchases, and to a burgeoning mortgage market.

“Revenue was suppressed due to delays, that have now been resolved, in boarding the OneWest transaction,” he said. “[Q3 profit margins were] below historical levels due to the timing involved in transitioning ResCap and OneWest. We feel very comfortable that once we have completed the ResCap transition to the Ocwen technology platform, we will return to our historical margins.”

Recently, those margins had been off the charts. Ocwen has doubled its revenue inflows thanks to a mortgage market once again flexing its muscles, and also due to deals that add $200 billion in mortgage servicing rights to Ocwen’s portfolio.

Analysts point to increased servicing and sub-servicing fees, in addition to revenues on loans held for sale and other income, all positive factors that should remain stable over the next few quarters. Another “under the radar” profit center is loan modifications, where Ocwen wrote-up 32,051 loan modifications, up 14 percent on a year-to-year basis.

All in all, it’s an attractive package that’s raising some well-financed eyebrows. John Armitage, chief at London-based Egerton Capital, a London-based hedge fund with $11 billion in assets, chose Ocwen as one of his “highlight” stocks over t! he past m! onth.

Armitage says that Ocwen is ideally positioned in a stronger mortgage market, and is picking up contract after contract to service mortgage loans. All that contract activity should grow more abundant as the market continues to pick up momentum.

Then there’s Oppenheimer equity analyst Ben Chittenden, who agrees with company management that the less-than-stellar Q3 earnings were merely “timing related”.

“Although the results were somewhat disappointing from a quarterly perspective, we don’t think that it changes (Ocwen’s) long-term story and is more of a timing issue,” he says. Chittenden advises investors to use any share pricing softness as a sign to snap up shares of Ocwen.

Overall, the Ocwen story seems like a short-term slowdown against the backdrop of a long-term growth story, largely tied to a once-again vibrant mortgage market.

Historically, that’s a buying opportunity for opportunity-minded investors. With banks and lenders increasing their mortgage activity, Ocwen looks like a nice addition to your holiday stocking this year.

Brian O’Connell is an investment analyst at Investing Daily. He has appeared as an expert financial commentator on CNN, NPR, Fox News, Bloomberg, CNBC, C-Span, CBS Radio, and many other media broadcast outlets.