Government Made $1.3 Billion in Improper Disability Payments

Justin Sullivan/Getty Images By STEPHEN OHLEMACHER Social Security made $1.3 billion in potentially improper disability payments to people who had jobs when they were supposed to be unable to work, congressional investigators said in a report Friday. The Government Accountability Office estimated that 36,000 workers got improper payments from December 2010 to January 2013. The numbers represent less than 1 percent of beneficiaries and less than 1 percent of disability payments made during the time frame. But GAO said the overpayments reveal weaknesses in Social Security's procedures for policing the system. "The report lays out clear, common-sense steps that the agency can and should take in order to avoid improper payments," said Sen. Tom Carper, D-Del., chairman of the Senate Homeland Security and Governmental Affairs Committee. "However, if we're serious about preventing waste and fraud and ensuring that these critical benefits get to the people who need and deserve them, Congress must also do its part and provide needed resources and access to basic anti-fraud data to the Social Security Administration." The Social Security Administration said its accuracy rate for disability payments is more than 99 percent. But the agency noted that even small errors translate into big numbers. "We are planning to do an investigation, and we will recoup any improper payments from beneficiaries," Social Security spokesman Mark Hinkle said. "It is too soon to tell what caused these overpayments, but if we determine that fraud is involved, we will refer these cases to our office of the inspector general for investigation." More than 8.2 million disabled workers received disability payments in December 2010, a figure that has grown to nearly 9 million. Last year, the agency paid out $137 billion in disability payments. Before people can receive disability benefits, there is a 5-month waiting period in which they can, in general, earn no more than about $1,000 a month. The waiting period is to ensure that beneficiaries have long-term disabilities. Using a federal wage database, investigators checked whether a sample of disability beneficiaries had worked and earned significant wages during the waiting period, the report said. They found that most of the improper payments went to people who worked during the five months they waited for payments to begin. Once people start receiving benefits, they can return to work and still get benefits during a trial work period, in an attempt to re-enter the workforce. Using the same wage database, investigators checked whether another sample of disability beneficiaries earned significant wages after their trial work period had ended, the report said. Based on their findings, the GAO estimated the amount of improper payments and the number of people receiving them. Citing a potential weakness, the report said Social Security might not detect a person who worked during the waiting period if the period started in one year and ended in another. For example, if Social Security starts paying benefits in February, the agency might not detect significant wages earned the previous November because they weren't earned in the same year that benefits were awarded, the report said. In a written response to the report, the Social Security Administration agency questioned whether GAO overestimated the amount of overpayments. The agency said investigators did not determine whether the work activity qualified as an unsuccessful attempt to return to work, or whether there were any other special circumstances. The report comes as Social Security's disability program faces a financial crisis. If Congress doesn't act, the trust fund that supports the disability program will run out of money in 2016, according to projections by Social Security's trustees. At that point, the system will collect only enough money in payroll taxes to pay 80 percent of benefits, triggering an automatic 20 percent cut in benefits. Congress could redirect money from Social Security's much bigger retirement program to shore up the disability program, as it did in 1994. But that would worsen the finances of the retirement program, which is facing its own long-term financial problems. "This report demonstrates just how little importance the Social Security Administration places on policing its disability rolls," said Sen. Tom Coburn of Oklahoma, the ranking Republican on the Senate Homeland Security and Governmental Affairs Committee. "SSA has known for years that it could prevent millions of dollars in improper disability payments using quarterly wage records, but chose not to."

This Gold ETF Lets You Tap Into the Yellow Metal the Easy Way

Investors tend to buy gold as a hedge or safe haven against economic, political or currency risk. For example, recent events that have pushed gold higher include renewed tension in the Middle East and concerns about U.S. government debt.

There are a number of ways for investors to hold gold. For instance, you could buy physical gold, shares of gold mining companies or units of a gold ETF.

A Gold ETF Enjoys Certain Advantages Over Stocks and Bullion

As we point out in our free report, “Top ETFs to Own Now,” holding physical gold comes with additional costs, including for storage and/or insurance, that can seriously erode any gains you make from investing in gold.

And while mining stocks have performed well when gold prices are on the upswing, they’re just as prone to the various costs and risks that other mining companies face, such as cost overruns, political resistance to a project or an acquisition that goes sour. Any of these factors can cause them to plunge, no matter what the gold price is doing.

The drawbacks of holding bullion and buying gold mining stocks have increased the appeal of investing in a gold ETF, particularly the SPDR Gold Trust (NYSE: GLD). The gold ETF was launched in November 2004 with the intention of allowing investors to tap into the gold market without having to take delivery of gold itself, and to let them buy and sell their interest through stock exchanges.

This Gold ETF Is Backed by the Real Thing

Unlike many other gold-focused ETFs, the fund doesn’t use futures or derivatives, nor does it hold shares of gold miners. The gold ETF simply buys gold bullion at spot prices and stashes the metal in underground vaults buried deep below the streets of London. Its sole assets consist of gold bullion and, from time to time, cash.

That lends to a high degree of price stability based on the value of the underlying gold. Unlike many metals ETFs, which frequently trade at large discounts or premiums to net asset value, SPDR Gold Shares rarely trade much higher or lower than one-tenth of an ounce of gold, because there’s never a question of what’s underlying the shares.

No Safe Required

This gold ETF is one of the easiest ways to invest in gold without installing a floor safe. And despite all the convenience the fund offers, it sports a very reasonable expense ratio—just 0.4%. Even if you were to hold physical bullion, it’s unlikely you could do it any more cheaply.

Industry Landscape Opens Doors For Pharmaceutical Company Polydex

Polydex Pharmaceuticals (POLXF.PK) Limited, through its subsidiaries, engages in the development, manufacture, and marketing of biotechnology-based products for the human pharmaceutical market. It is also involved with manufacture of bulk pharmaceutical intermediates for the veterinary pharmaceutical industry worldwide. It primarily offers Dextran and Dextran derivative products.

On The Cusp of a New Period of Growth

Shares of POLXF have risen sharply in recent months. In early June 2013 shares were trading around $0.30. Today shares are trading at around $1.10. The answer to what fueled this sharp rise in share price is simple. After several years of lackluster bottom-line growth on a quarterly and annual basis, the company posted substantial EPS growth during its fiscal 2014 first and second quarters.

POLXF Sales, Income and adjusted EPS - First Half Fiscal 2014 vs. 2013 (Year Ends January 31)

(Click to enlarge)

POLXF Revenue and adjusted EPS History - 2004 to 2013

(Click to enlarge)

At the time of our initial report, sent to our GeoInvesting Premium members on 7/19/2013, POLXF had only released its fiscal 2014 first quarter results. We wondered, was the first quarter performance an aberration or a sign that the company is about to enter a period of sustained growth? We stated we believed that several factors support a scenario that put the company in a position to achieve substantial bottom-line growth over the next several quarters. After reporting strong fiscal second quarter results earlier this week, it looks as if POLXF is on the right direction.

Another positive development has occurred since the time of our initial report which should reduce the risk profile of the company. The company has renewed its exclusive 10-yea! r supply agreement with Sparhawk Laboratories, Inc. to purchase bulk quantities of materials necessary for production of 20% Bulk Iron Dextran Solution for the United States veterinary industry. A previous agreement with Sparhawk was set to expire on March 2014.

The following management commentary from recent press releases sums up the POLXF story:

"The company's reputation for producing high quality, unique Dextran products continues to grow throughout the world. New customer audits of the company's facilities and practices has led to an expanding client base, along with the return of customers who temporarily sourced less expensive but inconsistent Dextran products from China. The company received a number of urgent requests for product and has responded to the best of its ability."

"President and CEO George Usher is encouraged that the economy appears to be stabilizing, and more specifically that the global hog market appears to be rebounding, therefore increasing demand for iron Dextran. We are experiencing a dramatic increase in orders and customer audits of our facilities and manufacturing practices. These audits help assure our customers that they can rely on us for a consistent supply of the highest grade product available, reflected in the increased demand across our product portfolio, with interest in the liquid and the higher margin powdered products."

"Demand for product is steady and our order book is full for many months to come" said George Usher, President and CEO. The Company has also been developing new formulations of product for potential new market opportunities."

"We are very pleased with our strong customer relationships and related demand for product," says George Usher, President and CEO of the Company. "Our partnerships with customers in the development of new products, combined with collaborated capital funding has resulted in encouraging financial returns for the first half of thi! s year an! d holds great promise for the future."

Understanding Dextran

POLXF manufactures and supplies Dextran and Dextran derivatives. Without getting too technical we learned that Dextran is a molecule with various properties that make it ideal for a variety of uses. Specifically, Dextran can be used as an adjuvant, an emulsifier and as a drug delivery agent.

Adjuvants (Vaccine production). Dextran is used as a food source for bacteria in vaccine production.

Emulsifier/ Binding Agent. Thickening agent when used with other matter, such as in making ice cream, or the manufacturing of cosmetic lotions.

Delivery Agent (making a chemical, mineral, etc. biologically available). In this case, when matter such as Iron is added to Dextran the compound helps the body absorb the intended matter. An example of this would be in addressing the anemic conditions of newborn swine with an Iron/Dextran compound.

Dextran can also be used as a standalone substance in certain instances, such as a blood plasma volume expander or a moisture retaining ingredient in cosmetic applications. Dextran is very safe and is made from sugar. When it is not used as a standalone, a particular compound is referred to as a Dextran derivative.

From one of the company's two websites:

"Inert Dextran and its derivatives are widely used in biological and biochemical research. Dextran has been described for use in the production of foodstuffs. Its value lies in its capacity to prevent crystallization, improve moisture retention, improve body and maintain flavour and appearance. Dextran is an excellent ingredient in cosmetic preparations, such as conditioning, due to its moisture retaining properties in creams, foams and gels, for example, and in the manufacture of shaving cream."

Brief Background:

Prior to 2004 the company operated 2 divisions:

Manufacturing Dextran-based materials to supply to the veterinary and human pharmaceutical arena. Cu! stomers w! ould then incorporate into finished products.

Manufacturing finished dosage form veterinary products for the U.S. Market.

The company sold its veterinary finished product division in March of 2004 ...

"Management considered the finished goods veterinary pharmaceuticals industry to be a highly competitive, mature industry, and believed that meaningful growth in this industry would require significant investment in new product development. Management believed that the Company could expect to obtain a higher return on investment by focusing on its current Dextran Products business and on human pharmaceutical research and development projects."

... and currently operates three product divisions from its manufacturing plant in Toronto:

Iron Dextran derivative ((liquid form).)- Addresses iron deficiency in the swine market.

Diethylaminoethyl Dextran (DEAE) and Dextran Sulfate derivatives (both powdered form)- Used for a variety of Pharmaceutical and Biotechnology purposes including the production of Vaccines. ( acts as a vaccine production stimulator)

Bulk Dextran/pure form (powder form)- Pharmaceutical/Biotechnology Sold in powder form

Due to reasons we will explain later, the company was unable to grow its business post 2004 as it had hoped, and was eventually delisted to the Pink Sheets in 2010. POLXF shares actually rose from $5.00 in July 2005 to a high of around $10.50 in April 2006 when revenues were approximately $6.0 million, even though the company was losing money on an adjusted basis. The rise in shares occurred over excitement of the potential use of one of its research projects (Cellulose Sulphate). The company had been conducting clinical trials for a birth control gel product to prevent pregnancy and HIV prevention. Birth control trials completed phase 2 with favorable results. However, the HIV trials were halted by its research partner.

Here is a reference from the January 31, 2007 10-K:

"The ! Independe! nt Review Board in conjunction with CONRAD, WHO, FHI and Polydex announced the halting of Two Phase III clinical trials to assess the effect of Ushercell on vaginal HIV acquisition which had been started in six clinical trial sites located in India and Africa. The trials were halted due to a possible higher than expected incidence of HIV. An investigation is now underway to determine the cause, with a report due towards the end of fiscal year 2009."

Funding stopped for both projects. Accordingly, shares dropped sharply and continued to decline over time. However, the current irony is that shares are well below its 2006 highs even though the company looks to be poised to achieve significant EPS gains in its current fiscal year 2014 and 2015. An article was later published in the New England Journal of Medicine showing that the initial findings were not nearly as negative as first assumed.

Five Reasons for Optimism

1. Improving Competitive Landscape. According to the company, certain negative market trends have already reversed or are currently reversing. For several years, competition from large and small suppliers/manufacturers had put pressure on pricing and margins. But two things happened.

First, a very large competitor out of Demark (Pharmacosmos) made a strategic decision to stop supplying Iron Dextran and solely used its supply to manufacture its own finished products. Second, the 2008 global recession eliminated many of POLXF's competitors. Conversely, the global recession had a negative effect on many of POLXF's customers who abandoned the company and looked to China for their Dextran supplies. Ultimately, many of these customers have returned to the company due to quality issues of the Dextran supply coming out of China.

2. New Market Opportunities. Currently, 60% of the company's revenues are derived from its Dextran derivative iron product. 20% of revenues come from derivative Dextran products like Dextran sulfate and DEAE Dextran. The remainder co! mes from ! bulk/pure Dextran.

The company has opportunities to meaningfully expand its market reach. For example, it can develop additional derivatives of Dextran and has an opportunity to increase the sale of bulk dextran. There are also significant opportunities to use Dextran in the cosmetic and food industries where the company does not have a big market presence.

The reduction in the amount of competition has provided the company with an opportunity to pick up new customers who need new sources of supply.

Regarding other products, although not worth getting excited about yet, at some point in the future the company could readdress the potential for its Cellulose Sulphate birth control product. And we do not believe the company will revisit its HIV project. We were surprised to learn that over $80 million from 3rd parties (Including the Gates foundation, World Health Organization, Family Health International, and a partner conducting the clinical trials) had been devoted to this cellulose sulfate project.

3. Expanding Margins. Certain factors should lead to expanding margins. The company is placing increased focus on targeting customers that require the company's higher margin products such as, bulk powdered Dextran product and powdered Dextran derivatives. The company is also seeing higher demand for its powder product from the reduction of the number of competitors supplying Dextran.

Furthermore, in 2012 (FY2012) the company encountered an efficiency problem with its manufacturing capabilities due to a faulty piece of equipment. The company set out to upgrade/improve its production equipment/process. The plan to address this problem did not go as smoothly as the company had hoped which is why the company reported a loss in FY2013 after reaching profitability in FY2012 for the first time since the company sold its veterinary division in 2004. This issue has been resolved.

4. Earnings. The culmination of the first 3 reasons for optimism should begin to lead to improvem! ents in s! ales and earnings. The company's FY2014 first half results are an indication that its efforts to improve margins are working.

Sales increased 43% to $3.30 million. Net income turned positive, increasing from a loss of $226,959 to a gain of $472,301. Diluted EPS increased to $0.14, reversing a prior year loss of $0.07. This is significant because the company has had a history of reporting quarterly losses and has not reported EPS greater than $0.04 on a quarterly basis in recent history and has now done so in both quarters of fiscal 2014. EBITDA increased to $562,868 compared to negative EBITDA of $77,457 in the prior year period.

Although quarterly sales are still within the company's post-2004 historical range, enhanced production efficiencies and management's focus to increase revenue contribution from higher margin products have dramatically helped to improve the bottom line. However, fiscal 2014 second quarter revenues did break out of this range. Ultimately, the company will have to expand its manufacturing capacity and/or outsource its production in order for it to begin realizing substantial revenue growth; a situation we feel will gradually begin to occur toward the end of 2013.

The near-term goal is for the company to continue to achieve quarterly EPS numbers at a level higher than its depressed historical performance while maintaining current or slightly higher revenue levels. In a nutshell, we think the POLXF's fiscal 2014 (ending in January) will be a year of moderate revenue growth and significant EPS growth, and that FY2015 will be a year when the company begins to experience an uptick in revenue growth as a result of increases in production capacity to meet the needs of its current and new customers. FY2016 should be a year when the company begins to introduce new products. We think the company has a good chance of achieving EPS north of 0.20 for FY2014 (fully taxed).

We see little reason for the stock not to be trading at a PE between 10-15 on this estimate, leadin! g to a ne! ar-term price target of $2.00-$3.00.

5. Tier One Pink. Many investors ignore companies that trade on the Pink Sheets. However, some of our best multi-baggers have arisen from investments made in what we like to call Tier One Pinks ("TOP"). Of the several criteria we set to qualify a Pink Sheet stock as a TOP candidate, two are often essential:

The company must be a revenue generating enterprise. The company must maintain financial transparency and communicate with its shareholders.

POLXF passes both of these litmus tests. The company is already a revenue generating enterprise. Furthermore, it is beginning to step up its efforts to communicate with shareholders. On June 25, 2013 the company announced that it…

"…has updated the company website at http://www.Polydex.com with an aim to provide greater transparency and other helpful information to shareholders, investors and interested parties alike. The company's new website includes greater access to financial reports, recent news releases and company information as it becomes available, and includes links to current stock quotes and charts. Shareholders and visitors can also subscribe to receive News Releases directly from the Company website."

An in-depth review of the company's product line can be viewed at http://www.Dextran.ca. It is also worth noting that the POLXF's CEO and external investor relations contact are easily reachable.

Caveats:

Investors who buy shares of POLXF will have to ignore the company's negative equity and large accumulated deficit. This circumstance was the result of prior management (pre-1889) spending large amounts of capital on research and development with little emphasis on marketing initiatives to drive sales. The new management team goal to increase top line growth was then challenged for many years due to competitive pressures that are finally beginning to abate.

Is there a chance that the Denmark company decides to become a su! pplier of! bulk Iron Dextran once again?

It is essential that the company expands its production capacity to increase sales to current and new customers and push out new products.

Dilutive funding to expand production capacity. In the end, we believe that spending capital, through internal or external sources, could lead to a significant return on investment.

Management's goal to increase sales of powder Dextran and powdered Dextran derivatives may not occur as fast as the company would like or at an amount to consistently benefit margins.

China could address its Dextran quality issues.

The company may be unable to maintain a level of EPS near its first quarter 2014 performance.

The company's recent turn in fortune has been driven by market/industry dynamics. At this point, we are not totally convinced management's moves have had a big impact on the turnaround. Only time will tell.

This is somewhat of a high risk play. The company's recent turn in fortune has been driven by market/industry dynamics. At this point, we are not totally convinced management's moves have had a big impact on the turnaround. Only time will tell.

Source: Industry Landscape Opens Doors For Pharmaceutical Company Polydex

Disclosure: I am long POLXF.PK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. (More...)

Top 10 Growth Companies To Own In Right Now

On this day in economic and business history ...

Two members of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) got started on their path to business leadership on April 21, and one former member reached one of the most impressive milestones of its industry. Each has a radically different business model, but all three recognized the importance of marketing to their continued growth from an early stage. Let's take a look at these events, and at one other important milestone that occurred on a far earlier April 21.

Big Pharma's foundations
Pfizer (NYSE: PFE  ) traces its origins to 1849, when two German cousins founded Charles Pfizer & Company in Brooklyn to sell a flavored antiparasitic medicine. However, it was not until April 21, 1900, that Pfizer became a corporation rather than a partnership by filing papers in the state of New Jersey. By then it was already a leader in the chemical industry, but it would be nearly another half-century before Pfizer transformed into the pharmaceutical leader we know today.

Top 10 Growth Companies To Own In Right Now: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By Jonathan Yates]

  Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

Top 10 Growth Companies To Own In Right Now: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:

• [By Matt Brownell]

  AOL When we spoke to Crocs (CROX) CEO John McCarvel back in January, we couldn't help but notice his choice of footwear: He wasn't wearing Crocs. But we couldn't really hold it against him. McCarvel was in town to accept an innovator award from the National Retail Federation, and Crocs didn't really make anything appropriate for the occasion. You can't wear Crocs with a suit, right? Well, that's not entirely true. As it turns out, Crocs now offers a number of shoes that are a bit more on the dressy side. They've got loafers, for instance, which could work at the country club. And for the office they've got the "Tummler" shoe, which combines the molded rubber clogs with a black leather slip-on dress shoe. As the website explains, it's meant to be a "work shoe you can live with." Around the same time we came across the Crocs dress shoe, we also became aware of another product that tries to combine stay-at-home comfort with office-appropriate wear: Dress pants-style sweatpants. These have all the comfort and warmth of a pair of sweatpants, but are designed like a pair of dress slacks, complete with back pockets, belt loops and pinstripes. Together, the Crocs dress shoes and sweatpants dress pants suggest a new paradigm for office wear: Dressy enough to pass muster with your boss, but comfortable enough that you can feel like you're having a pajama day working from home. But could you really pull this off in an office environment? To find out, I got a pair of each, then put them on and headed down to the offices of StyleList, Aol's fashion experts. I modeled my office wear for a panel of three StyleList editors: Ellen Thomas, Logan Sowa and Abby Silverman. Their first reaction was telling -- two of them didn't realize that I'd actually changed into the sweatpants. That, I thought, meant that I could get away with wearing sweatpants without anyone noticing. But on closer inspection, doubts started to emerge. "I don't think I'll ever be inclined to think this is

Hot Cheap Stocks To Watch Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Advisors' Opinion:

• [By David Fried, Editor, The Buyback Letter]

  Insurance holding company CNO Financial Group (CNO) and its insurance subsidiaries��rincipally Bankers Life and Casualty Company, Washington National, and Colonial Penn Life Insurance Company��erve pre-retiree and retired Americans.

Top 10 Growth Companies To Own In Right Now: MEDIFAST INC(MED)

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

Advisors' Opinion:

• [By Jon C. Ogg]

  Medifast Inc. (NYSE: MED) saw its stock down 5% in evening trading on Tuesday after the weight loss player had soft sales and guided expectations lower. Shares were still indicated down about 5%, but volume has not yet started.

Top 10 Growth Companies To Own In Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By John Persinos]

  One dominant company in the handling, treatment, and disposal of solid waste is Waste Management (WM). With this industry leader, investors are paying for market dominance, relative predictability, good dividends, and high cash flow.

Top 10 Growth Companies To Own In Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:

• [By Lauren Pollock]

  ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.

Top 10 Growth Companies To Own In Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Joseph Hogue]

  Enter Intuitive Surgical (Nasdaq: ISRG) and Da Vinci, a robotic arm that allows surgeons to operate with just a single incision less than an inch in size.

• [By John Udovich]

  Yesterday, small cap medical robotics stock MAKO Surgical Corp (NASDAQ: MAKO) soared 82.19% after it was announced that Stryker Corporation (NYSE: SYK) would acquire it���meaning it might be time to take a closer look at large cap medical robotics leader Intuitive Surgical, Inc (NASDAQ: ISRG) along with small caps Accuray Incorporated (NASDAQ: ARAY) and Hansen Medical, Inc (NASDAQ: HNSN). MAKO Surgical Corp�markets both its RIO Robotic Arm Interactive Orthopedic System and proprietary RESTORIS family of implants to surgeons for a procedure called MAKOplastythat provides a less invasive method for knee resurfacing and a new procedure for Total Hip Arthroplasty.�Stryker Corporation, whose medical technologies include reconstructive, medical and surgical, and neurotechnology and spine products, agreed to pay $1.65 billion or $30 a share for a massive 86%�premium for MAKO Surgical Corp. That�� sounds great for investors unless you are an investor who go in the stock back in 2011 and early 2012 when shares hit as high as the�$43 level.

Top 10 Growth Companies To Own In Right Now: Sara Lee Corporation(SLE)

Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf

Top 10 Growth Companies To Own In Right Now: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Top 10 Growth Companies To Own In Right Now: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

The Five-Year Drought for Savient Pharmaceuticals Shares May Finally be Ending (SVNT)

Since 2008's implosion from the stock, the interest in Savient Pharmaceuticals Inc. (NASDAQ:SVNT) has been waning. There was a brief burst of bullishness in September of last year, which stirred the bullish pot a little. But, when SVNT started to fade in October of that year - just as quickly as it had perked up - what lingering hopes there were for the stock finally started to melt away. By the middle of this year, pretty much everyone had written Savient Pharmaceuticals off as a lost cause. Big mistake. Over the last few days, SVNT has almost wiggled its way buck into a bullish zone.

First things first. Savient Pharmaceuticals Inc. is, as the name implies, a biopharma developer. The company's claim to fame is KRYSTEXXA, which is a treatment for refractory chronic gout. Yes, there's a market for it. About 8 million people in the United States alone with gout, and the number grows about 4% per year. Globally, the gout market should drive $1.8 billion in annual sales by 2019. Though SVNT is only aiming for the United States and then European market (initially), that's a majority of the opportunity.

So what happened back in 2008 to torpedo a rising-star stock? The safety of KRYSTEXXA was called into question. Though it's not necessarily the end of a world for a drug to show safety issues, for Savient, the worries never really went away.... for investors, or regulars. That is, it never went away, perhaps until now.

While echoes of KRYTEXXA's risks are still ringing, there may be a (relative) light developing at the end of the tunnel. That's what the chart's saying anyway, which may be foretelling of good news in the near future. In fact, SVNT has almost become a buy because of its recent bullish clues.

The nearby daily chart says it all. In July SVNT shares made a higher low, and as of today the stock's above the 100-day moving average line (gray). That's a big deal. It tried to clear that line in June, and in early July, but the market held it back. The third effort this week, however, seems to be getting traction, largely fueled by support at the 20-day and 50-day moving average lines. It all says the tide has turned in favor of Savient Pharmaceuticals.

To be fair, there's still plenty of risk here, so don't jump in blindly. But, along with the chart's budding bullishness, the chatter and rhetoric surrounding the company is also perking up, and is mostly positive. It's not a long-term holding, but this all points to some very solid short-term bullishness as long as SVNT can log a close above the 100-day moving average line at $0.68 just once today or next week.

If you'd like to get more trading ideas and analysis like this, become a subscriber to the daily SmallCap Network newsletter. You'll get stock picks, market calls, and more. 
 

How To Invest Like Bill Ackman

In some ways, Bill Ackman invests like he's riding a bicycle.

In the summer of 2012, Ackman joined fellow hedge fund manager Daniel Loeb and half-dozen other cyclists on a very long bike ride. Although Ackman, a fierce competitor, was admittedly out of shape for such a ride, he pulled out to lead the pack early, only to eventually fall well behind the others. One participant noted, "I've never had an experience where someone has gone from being so aggressive on a bike to being so hopelessly unable to even turn the pedals... (Ackman's) mind wrote a check that his body couldn't cash."  

Some activist investors like to start with a small position or take a "backseat" role, but Ackman starts out in high gear: He takes on management directly and generally looks for a board seat immediately. Ackman does all his research upfront -- as seen from some of his multi-hundred-slide presentations -- before taking a stake, and he has a goal in mind before even approaching management.

He's come a long way over the past decade, now that he's running Pershing Square Capital Management, a premier activist hedge fund. The general consensus is that he has a loud and outspoken personality -- though it's not always put that nicely -- but there's no denying that he tends to do fairly well as an activist investor.

Bill Ackman's Biography
Ackman's confidence dates to his high school days, where he wagered his father, a real estate executive, $2,000 that he would get a perfect score on the SAT. He didn't get a perfect score -- he missed only four questions -- but he also didn't lose any money, as his dad backed out of the bet the night before.

Ackman earned undergraduate and MBA degrees at Harvard University. While at Harvard, Ackman had the foresight and good fortune to take a class taught by Marty Peretz, who later provided half a million dollars in seed money for Ackman to launch his first hedge fund. After getting his MBA in 1992, Ackman teamed with former classmate David Berkowitz to form the Gotham Partners hedge fund.

	CNN Money
	Ackman's come a long way over the past decade, now that he's running Pershing Square Capital Management

Gotham failed a decade later after a bad investment in a golf course operator, but Ackman was back in the hedge fund world the following year, starting Pershing with a mere $54 million. His returns at Pershing have been so great that he has amassed a fortune of more than $1.2 billion, over half of which he plans to give away to charity as part of the Giving Pledge, in which Warren Buffett has taken a leading role.

The media has had a fascination with Ackman lately that has been nothing short of amazing. Vanity Fair's piece in March 2013 added fuel to the fire, painting Ackman as an extremely competitive, larger-than-life character. This competitiveness and his "smartest guy in the room" mentality have earned Ackman a number of critics among fellow hedge fund managers.

Bill Ackman's Investment Strategy And Big Wins -- And Losses
Ackman has taken activism to the next level, superseding some of his hedge fund cohorts by targeting high-profile large-cap companies. As any good deep value activist investor does, Ackman runs a niche portfolio, generally owning fewer than 10 companies, with a high concentration of his portfolio invested in his top two or three picks. 

One of Ackman's biggest wins came as Gotham Partners was closing. While winding down his first hedge fund, Ackman was also researching mortgage insurer MBIA (NYSE: MBI). Ackman challenged MBIA's triple-A rating, alleging that the company was guaranteeing untested asset-backed securities. His allegations drew the attention of New York's attorney general, who investigated Ackman for six months but eventually dropped the investigation. Ackman began shorting MBIA in 2004 at around $60 and rode the stock all the way down to $8 before closing out his short.

Another one of Ackman's biggest wins, and a stock he still owns, is General Growth Properties (NYSE: GGP). Ackman snatched up GGP shares for $0.35 back in 2008 when the mall operator was struggling to stay out of bankruptcy. Since then, the stock has made Ackman nearly 100 times his invesment.

Conversely, some of Ackman's biggest blunders have been in the retail space. This includes his latest half a billion-dollar loss on struggling retailer J.C. Penney (NYSE: JCP). Ackman sold his entire 18% stake in JCP after a public letter to the board calling for a new chairman caused immense backlash, and it became apparent that the retailer's issues might be more deeply rooted than in management alone. 

Other big blunders include Target (NYSE: TGT) and the now-bankrupt bookstore Borders. Ackman lost some 90% of his fund's Target investment after the financial crisis hit, sending Target's shares into freefall. Ackman was hoping to persuade Target to spin off the vast amount of property it owned into a real estate investment trust (REIT). Borders slipped into bankruptcy after Ackman was unable to find a buyer and his attempt to merge Borders with Barnes & Noble failed.

In his latest investor letter, Ackman notes that he and Pershing "have had three failures on the long side: Borders Group, Target, and J.C. Penney. Clearly, retail has not been our strong suit, and this is duly noted."

Bill Ackman's Portfolio: What's He Holding Now?

As of June 30, 2013. Pershing's position in APD is now more than twice what it was at the end of the second quarter, and the fund no longer owns JCP. 

Ackman and Pershing's largest position remains Canadian Pacific Railway (NYSE: CP). Back in 2011, Ackman launched a campaign to oust CP's CEO and install the former CEO of rival railroad company Canadian National. Ackman was successful, and the stock has been on a tear ever since, nearly tripling from his original investment. 

His second largest position is actually a combination of a call position and stock ownership in Procter & Gamble (NYSE: PG). Ackman got active in P&G in 2012 and immediately began pushing for cost cutting and overhead reduction; soon after, P&G's CEO stepped down. Ackman's key thesis is that P&G could see earnings per share (EPS) of $6 in fiscal 2016 and should trade upward of $120 by then, not bad considering he paid about $65 for the stock.

After returning only 12.4% net of fees in 2012, compared with the S&P 500's 16%, Ackman and Pershing are back with a vengeance, starting his newest activist campaign in Air Products (NYSE: APD). Ackman's multi-billion-dollar investment puts Pershing's ownership of Air Products at 9.8%. Ackman had hoped to funnel even more capital into the company, but the Air Products implemented a poison pill with a 10% threshold.

In a trade that has turned into a proverbial clash of the hedge fund titans, Ackman is still on the short side of Herbalife (NYSE: HLF) -- only the sixth short position in Pershing's history -- and it's estimated he could be down as much as $300 million on the trade. Ackman continues to stand by his short, defending it against major hedge funds on the long side, which include Carl Icahn and George Soros. Ackman built his short position in late 2012 after publicly calling Herbalife a pyramid scheme. Ackman has also launched a website and put together a 334-slide presentation to support his thesis. Ackman also engaged in a war of words during a half-hour CNBC segment with Icahn, who has said that Herbalife could turn out to be the mother of all short squeezes. 

Action to take --> Ackman's activist campaigns appear to have run their course for a number of his top holdings, including Canadian Pacific, General Growth and Beam (NYSE: BEAM). For investors looking to invest in stocks that could still benefit from Ackman's activist expertise, I would consider Air Products and Procter & Gamble. Ackman appears to be sticking with what he knows; one of his biggest wins of late was at Canadian Pacific, an industrial stock, and so it's no surprise his newest campaign is at yet another industrial company, Air Products. Both P&G and Air Products should also be big benefactors of a rebounding economy. If you really want to invest like Ackman, be on the lookout for next year's planned IPO of Pershing Square Holdings, which will allow investors to invest in Ackman's hedge fund through a shell company.

Friday Closing Bell: Markets Wobble, but Hold Opening Gains

Source: thinkstockAugust 23, 2013: U.S. markets opened higher this morning most likely due to a big jump in shares of Microsoft Corp. (NASDAQ: MSFT) on news the CEO Steven Ballmer will retire. The only economic data released today sent markets down sharply for a while. July new home sales were well off expectations and far below June sales. The rate on 10-year Treasury notes fell which perked up stocks again, but markets closed with only a modest gain.

European markets once again closed higher today, while Latin American and Asian markets closed mixed.

Monday's calendar includes the following data releases and events:

8:30 a.m. – Durable goods orders 10:30 a.m. – Dallas Fed manufacturing survey 11:30 a.m. – 3- and 6-month Treasury bill auctions

We also broke out the top Wall Street calls with analyst upgrades and downgrades. Here are the closing bell levels for Friday:

S&P500 1,663.45 (+6.49; +0.39%) DJIA 15,010.36 (+46.62; +0.31%) NASDAQ 3,657.79 (+19.09; +0.52%) 10YR TNOTE 2.818% (+0.59375) Gold $1,370.80 (+25.20; +1.83%) Euro/Dollar: 1.3381 (+0.0025; +0.19%)

Big earnings movers: Pandora Media Inc. (NYSE: P) is down 12.9% at $18.90 after a decent earnings reports was spoiled by a weak outlook<<LINK>>. Net 1 UEPS Technologies Inc. (NASDAQ: UEPS) is up 46.6% at $10.69 after beating estimates on EPS and revenues, raising its outlook for the third quarter, and posting a new 52-week high of $11.20. Aeropostale Inc. (NYSE: ARO) is down 20.2% at $8.76, following a new 52-week low of $8.66, after a big earnings miss.

Stocks on the move: Facebook Inc. (NASDAQ: FB) is up 5.2% at $40.63, a new 52-week high, on a positive note from analysts at J.P. Morgan. Dendreon Corp. (NASDAQ: DNDN) down 9.1% at $2.90 after posting a new 52-week low of $2.85.

Notable earnings reports currently on tap for next week: Qihu 360 Technology Co. Ltd. (NASDAQ: QIHU), Avago Technologies Ltd. (NASDAQ: AVGO), LDK Solar Co. Ltd. (NYSE: LDK), Tiffany & Co. (NYSE: TIF), Joy Global Inc. (NYSE: JOY), Campbell Soup Co. (NYSE: CPB), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), Krispy Kreme Doughnuts Inc. (NYSE: KKD), and ReneSola Ltd. (NYSE: SOL).

In all, 65 stocks put up new 52-week highs today, while just 28 stocks posted new lows.

Something Big That Can Set Pandora Apart From Apple

NEW YORK (TheStreet) -- On Wednesday afternoon, I received an invite from Pandora (P) for a concert next week in Hollywood with a local LA-based band called The Mowglis.

Here's the key paragraph from the email: The Mowglis were selected by analyzing Pandora data to identify rising stars among Chevrolet's target audience in Los Angeles. Then, targeted LA Pandora listeners were invited to RSVP to the show though a Chevy branded banner, where they entered their name and email to be placed on a guest list for the free show, admission on a first-come basis.

Now that's what I'm talking about.

Pandora doesn't do this type of thing often enough. It's one advantage it has -- sort of -- over Apple (AAPL) as an Internet radio option. It's not that Apple can't put on these types of local events. Of course, just about anything Pandora can do is within Apple's scope. But I'm doubtful Apple will want to waste its time acting as what amounts to a promoter of local bands and music scenes. The company will probably stick to grand spectacles such as the massive iTunes Music Festival. For Pandora, Internet radio isn't a side business; it's the company's core. And it's in Pandora's interest to aggressively promote local music the way it is in LA next week. It means cash from huge national sponsors such as General Motors (GM). It can help the company hook more local advertising dollars, which ultimately, given the power of its targeting ability, is its bread and butter. And, of equal importance, it can create goodwill, showing the music industrial complex what a great partner and artist advocate Pandora can be. A great partner to established names as well as all flavors of independents. Pandora can moderate the success Apple has chipping away (or crushing or killing) at its franchise by not only being a better partner to musicians, but providing a more localized platform for its users. That's the key. If you love music and Pandora sends you invites to seemingly "secret" shows, you might identify with it at a level Apple could, but probably will not spend time trying to touch. Pandora needs to expand its capabilities to become a bigger part of its users' lives. That might mean an acquisition or two and, most definitely, a broadening of its strategy into something more than "just" personalized radio. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.

5 Tech Stocks in Breakout Territory With Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Insiders Love Right Now

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Set to Soar on Bullish Earnings

With that in mind, let's take a look at several stocks rising on unusual volume today.

SouFun

SouFun (SFUN) operates a real estate Internet portal in China, providing marketing, listing and other value-added services and products related to real estate and home furnishing. This stock closed up 9.8% to $49.88 in Wednesday's trading session.

Wednesday's Volume: 2.16 million

Three-Month Average Volume: 727,108

Volume % Change: 257%

>>5 Stocks Under $10 in Breakout Territory

From a technical perspective, SFUN exploded higher here right above some near-term support at $44.71 with strong upside volume. This stock has been uptrending strong for the last two months and change, with shares moving sharply higher from its low of $22.29 to its recent high of $53.77. During that move, shares of SFUN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SFUN within range of triggering a big breakout trade. That trade will hit if SFUN manages to take out some near-term overhead resistance levels at $51 to its 52-week high at $53.77 with high volume.

Traders should now look for long-biased trades in SFUN as long as it's trending above support at $44.71, and then once it sustains a move or close above those breakout levels with volume that hits near or above 727,108 shares. If that breakout hits soon, then SFUN will set up to enter new 52-week-high territory above $53.77, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

Responsys

Responsys (MKTG) is a provider of email and cross-channel marketing solutions that enable companies to engage in relationship-based marketing across interactive channels. This stock closed up 9.4% to $16.31 in Wednesday's trading session.

Wednesday's Volume: 1.79 million

Three-Month Average Volume: 421,794

Volume % Change: 317%

>>5 Shareholder Yield Champs to Beat the S&P

From a technical perspective, MKTG gapped sharply higher here and broke out above some near-term overhead resistance at $15.54 with monster upside volume. This move is quickly pushing shares of MKTG within range of triggering a big breakout trade. That trade will hit if MKTG manages to take out Wednesday's high of $16.49 to its 52-week high at $16.93 with high volume.

Traders should now look for long-biased trades in MKTG as long as it's trending above Wednesday's low of $15.44 or above its 50-day at $14.47 and then once it sustains a move or close above those breakout levels with volume that hits near or above 421,794 shares. If that breakout triggers soon, then MKTG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its all-time high at $18.19 to north of $20.

Gartner

Gartner (IT) is an information technology research and advisory company. This stock closed up 1.6% at $57.81 in Wednesday's trading session.

Wednesday's Volume: 1.60 million

Three-Month Average Volume: 459,018

Volume % Change: 276%

>>5 Hated Earnings Stocks You Should Love

From a technical perspective, IT bounced modestly higher here right off some near-term support at $56.55 with strong upside volume. This stock has been trending sideways inside of a consolidation chart pattern for the last month and change, with shares moving between $55.75 on the downside and $59.95 on the upside. Shares of IT are now starting to move within range of triggering a breakout trade above the upper-end of its sideways trading price action. That trade will hit if IT manages to clear its 50-day moving average at $58.84 and then once it takes out more resistance at $59.95 with high volume.

Traders should now look for long-biased trades in IT as long as it's trending above some near-term support levels at $56.55 or $55.75 and then once it sustains a move or close above those breakout levels with volume that's near or above 459,018 shares. If that breakout hits soon, then IT will set up to re-test or possibly take out its 52-week high at $63.

Demandware

Demandware (DWRE) provides software-as-a-service e-commerce solutions that enable companies to easily design, implement and manage their own customized e-commerce sites, including Web sites, mobile applications and other digital storefronts. This stock closed up 6% at $47.38 in Wednesday's trading session.

Wednesday's Volume: 822,000

Three-Month Average Volume: 326,322

Volume % Change: 150%

>>5 Stocks Ready for Breakouts

From a technical perspective, DWRE soared sharply higher here back above its 50-day moving average of $45.07 with above-average volume. This move pushed shares of DWRE into breakout territory, since the stock cleared some near-term overhead resistance levels at $45.67 to $47.24. Shares of DWRE are now quickly moving within range of triggering another big breakout trade. That trade will hit if DWRE manages to take out Wednesday's high of $47.76 and then once it clears its all-time high at $49.11 with high volume.

Traders should now look for long-biased trades in DWRE as long as it's trending above its 50-day at $45.07 or above more near-term support at $44 and then once it sustains a move or close above those breakout levels with volume that's near or above 326,322 shares. If that breakout hits soon, then DWRE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.

Marin Software

Marin Software (MRIN) provides a cloud-based revenue acquisition management platform, offering integrated digital advertising management solutions for search, display, social media and mobile advertising. This stock closed up 6.1% at $13.03 in Wednesday's trading session.

Wednesday's Volume: 466,000

Three-Month Average Volume: 114,298

Volume % Change: 275%

>>5 Rocket Stocks to Buy as Mr. Market Climbs

From a technical perspective, MRIN spiked sharply higher here back above its 50-day moving average of $12.63 with heavy upside volume. This spike higher is coming after shares of MRIN pulled back from its August high of $14.37 to its recent low of $11.50. It looks like the downside volatility for MRIN could be over in the short-term and the stock is now moving within range of triggering a near-term breakout trade. That trade will hit if MRIN manages to take out Wednesday's high of $13.45 and then once it clears more key resistance levels at $14.11 to $14.37 with high volume.

Traders should now look for long-biased trades in MRIN as long as it's trending above its 50-day at $12.63 or above more support at $12 and then once it sustains a move or close above those breakout levels with volume that's near or above 114,298 shares. If that breakout hits soon, then MRIN will set up to re-test or possibly take out its next major overhead resistance levels at $16 to $18.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Making Big Moves

>>Why Wall Street Got Apple Wrong

>>5 Breakout Trades to Take

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

EnerSys Announces Acquisition of Purcell Systems for $115 Million (ENS)

Early on Wednesday, industrial battery manufacturer EnerSys (ENS) entered into an agreement to acquire Purcell Systems for $115 million.

EnerSys expects the transaction to be accretive to its earnings by 15 to 20 cents per share in the first year. The company will finance the purchase of the Spokane, Washington-based company with existing cash and credit facilities.

Purcell Systems is a manufacturer of “thermally managed electronic equipment and battery cabinet enclosures for customers globally in telecommunication, broadband, utility, rail and military applications.”

EnerSys shares were inactive during pre-market trading on Wednesday. The stock is up 48.1% year-to-date.

Becton Dickinson Gains on Piper Jaffray Upgrade

Becton Dickinson (BDX) has gained 1.2% to $101.97 this morning after Piper Jaffray raised the stock to Overweight from Neutral. Analysts William Quirk and David Clair explain why they’re optimistic about the medical technology company:

Associated Press

Observations from multiple diagnostic conferences all suggest significant interest in microbiology investment. This interest spans track systems (Kiestra), new identification technologies (Maldi/BioTyper) and Molecular (gram +/- assays). When considering AST (antimicrobial susceptibility testing) recall from Siemens, we believe BD’s microbiology business is poised to accelerate its performance over the next several years. Combined with a delayed JNJ/Ypsomed pen needle launch and incremental European safety adoption, we believe numbers for BD will continue to climb…

They also raised their price target to $117 from $91.

While Becton has gained today, Johnson & Johnson (JNJ) has dropped 0.6% to $88.50, Medtronic (MDT) has fallen 1%to $53.43, Boston Scientific (BSX) has declined 0.9% to $11.79 and Edwards Lifesciences (EW) is off 1.2% at $70.90.

Can General Electric Continue This Bull Run?

With shares of General Electric (NYSE:GE) trading around $22, is GE an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

General Electric is a diversified industrial, technology, and financial services company that operates worldwide. The products and services of the company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. General Electric’s segments include: Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. General Electric is a leading provider of a wide range of products and many are essential in daily lives of consumers and companies around the world.  So long as economies exist, General Electric will continue to see a rise in profits by providing key products on an ongoing basis.

T = Technicals on the Stock Chart are Mixed

General Electric stock has seen a consistent uptrend since establishing lows during the 2008 Financial Crisis. The stock has been displaying higher highs and higher lows and looks poised to continue this pattern. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, General Electric is trading around key averages which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
General Electric Options	18.88%	0%	0%

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

	Put IV Skew	Call IV Skew
May Options	Average	Average
June Options	Average	Average

As of today, there is an average demand from call and put buyers or sellers, neutral over the next two months. To summarize, investors are buying a very small amount of call and put option contracts and are leaning neutral over the next two months.

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	17.24%	8.72%	50%	-17.14%
Revenue Growth (Y-O-Y)	-0.49%	3.57%	2.79%	2.46%
Earnings Reaction	-4.05%	3.47%	-3.41%	0.35%

General Electric has seen increasing earnings and revenue figures over most of the last four quarters. From these figures, the markets have had mixed feelings about General Electric’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has General Electric stock done relative to its peers, Siemens (NYSE:SI), United Technologies (NYSE:UTX), Koninklijke Philips Electronics (NYSE:PHG), and sector?

	General Electric	Siemens	United Technologies	Koninklijke Philips Electronics	Sector
Year-to-Date Return	6.12%	-5.03%	11.43%	3.54%	8.71%

General Electric has been an average performer, year-to-date.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

Conclusion

General Electric provides a wide range of products to companies and consumers participating in an array of industries around the world. The stock has been making excellent gains in recent years but has slowed down to consolidate a bit. Earnings and revenue figures have increased for most of the last four quarters, however, investors have had mixed feelings about the recent earnings announcements. Relative to its peers and sector, General Electric has been an average year-to-date performer. WAIT AND SEE what General Electric does this coming quarter.

Hot Insurance Companies To Watch In Right Now

He also says that investors should be certain about their time horizon and end goal because it makes it easier in financial planning. He further adds that investors should look to distribute their investments over the year instead of doing it as one single lumpsum.

His top bets among equity mutual funds are DSP Blackrock Top 100 and ICICI Pru Dynamic plan . ��n the fixed income side there is ICICI regular savings plan ,��he added.

Below is an edited transcript of his interview. Also watch the accompanying video.

Q: Investor wants to invest Rs 25,000 per annum and aims to make Rs 800,000 in 10-15 years. His age is 32 and has a Bajaj Allianz Life Insurance policy with a premium of Rs 25,000 per annum and sum assured of Rs 125,000. How should he allocate his money?

Hot Insurance Companies To Watch In Right Now: American International Group Inc.(AIG)

American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.

Advisors' Opinion:

• [By Victor Mora]

  AIG is an international insurance provider that is still seeing a recovery from �the 2008 Financial Crisis. The stock has been coasting higher over the last couple of years but may be coming up against some selling pressure soon. Over the last four quarters, earnings have been decreasing and revenue figures have been mixed. However, investors in the company have been optimistic about the earnings reports. Relative to its peers and sector, AIG has been a year-to-date performance leader. WAIT AND SEE what AIG does in coming quarters.

• [By Andrew Feinberg]

  52-Week High: $37.67
  
  52-Week Low: $22.19
  
  Annual Revenue: $70.6 billion
  
  Projected 2013 Earnings Growth: -17.7% 
  
  When American International Group (symbol: AIG) announced strong third-quarter results, CEO Robert Benmosche said the insurer might not buy back any more AIG shares held by the U.S., as it had earlier said it might. The stock sank on the news, but investors missed the bigger picture. AIG trades at about 50% of its book value of $69 per share, while its peers typically trade at about book value. AIG could eventually earn $6 per share and trade at, or close to, its rising book value.

Hot Insurance Companies To Watch In Right Now: Cincinnati Financial Corporation(CINF)

Cincinnati Financial Corporation engages in the property casualty insurance business in the United States. Its Commercial Lines Property Casualty Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers? compensation. It also offers specialty packages, including coverages for property, liability, and business interruption for specific industry classes, such as artisan contractors, dentists, or street businesses. In addition, this segment provides contract and commercial surety bonds, fidelity bonds, and director and officer liability insurance, as well as machinery and equipment coverage. The company?s Personal Lines Property Casualty Insurance segment offers coverage for personal auto and homeowners, as well as other insurance products, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. Cincinnati Financial?s Excess and Surplus Lines Property Casualty Insurance s egment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, including products and completed operations; and commercial property insurance, which insures loss or damage to buildings, inventory, equipment, and business income from causes of loss, such as fire, wind, hail, water, theft, and vandalism. The company?s Life Insurance segment provides term insurance; universal life insurance; whole life insurance; and worksite products, which include term, whole life, universal life, and disability insurance offered to employees through their employer. This segment also markets disability income insurance, deferred annuities, and immediate annuities. Its Investment segment invests in fixed-maturity investments, equity investments, and short-term investments. Cincinnati also offers commercial leasing and financing services. The company was founded in 1950 and is headquarte red in Fairfield, Ohio.

Best Gold Stocks To Watch Right Now: MGIC Investment Corp (MTG)

MGIC Investment Corporation (MGIC), incorporated June 21, 1984, is a holding company and through wholly owned subsidiaries is a private mortgage insurer in the United States. As of December 31, 2012, its principal mortgage insurance subsidiaries, Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Indemnity Corporation (MIC), were each licensed in all 50 states of the United States, the District of Columbia and Puerto Rico. During the year ending December 31, 2012, the Company wrote new insurance in each of those jurisdictions in MGIC and/or MIC. The Company capitalized MIC to write new insurance in certain jurisdictions where MGIC no longer meets, and is unable to obtain a waiver of, those jurisdictions��minimum capital requirements. Private mortgage insurance covers losses from homeowner defaults on residential mortgage loans, reducing and, in some instances, eliminating the loss to the insured institution if the homeowner defaults.

Mortgage Insurance

Primary insurance provides mortgage default protection on individual loans and covers unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure. Primary insurance is written on first mortgage loans secured by owner occupied single-family homes, which are one-to-four family homes and condominiums. Primary insurance is also written on first liens secured by non-owner occupied single-family homes, which are referred to in the home mortgage lending industry as investor loans, and on vacation or second homes. Primary coverage can be used on any type of residential mortgage loan instrument approved by the mortgage insurer.

When a borrower refinances a mortgage loan insured by the Company by paying it off in full with the proceeds of a new mortgage that is also insured by it, the insurance on that existing mortgage is cancelled, and insurance on the new mortgage is considered to be new primary insurance written. Therefore, continuation of its coverage fr! om a refinanced loan to a new loan results in both a cancellation of insurance and new insurance written. When a lender and borrower modify a loan rather than replace it with a new one, or enter into a new loan pursuant to a loan modification program, its insurance continues without being cancelled assuming that the Company consent to the modification or new loan.

The borrower�� mortgage loan instrument requires the borrower to pay the mortgage insurance premium. There are several payment plans available to the borrower, or lender, as the case may be. Under the monthly premium plan, the borrower or lender pays it a monthly premium payment to provide only one month of coverage. Under the annual premium plan, an annual premium is paid to it in advance, and it earns and recognizes the premium over the next 12 months of coverage, with annual renewal premiums paid in advance thereafter and earned over the subsequent 12 months of coverage. Under the single premium plan, the borrower or lender pays it a single payment covering a specified term exceeding twelve months.

Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan, which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. In general, the loans insured by it in Wall Street bulk transactions consisted of loans with reduced underwriting documentation; cash out! refinanc! es, which exceed the standard underwriting requirements of the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively GSEs); A- loans; subprime loans, and jumbo loans.

Other Products and Services

The Company has participated in risk sharing arrangements with the GSEs and captive mortgage reinsurance arrangements with subsidiaries of certain mortgage lenders, which reinsure a portion of the risk on loans originated or serviced by the lenders, which have MGIC primary insurance. It provides information regarding captive mortgage reinsurance arrangements to the New York Department of Insurance (known as the New York Department of Financial Services), the Minnesota Department of Commerce and the Department of Housing and Urban Development, (HUD). It performs contract underwriting services for lenders, in which it judges whether the data relating to the borrower and the loan contained in the lender�� mortgage loan application file comply with the lender�� loan underwriting guidelines. It also provides an interface to submit data to the automated underwriting systems of the GSEs, which independently judge the data. These services are provided for loans, which require private mortgage insurance, as well as for loans that do not require private mortgage insurance. It provides mortgage services for the mortgage finance industry, such as portfolio retention and secondary marketing of mortgages.

The Company competes with Federal Housing Administration, Veterans Administration, PMI Mortgage Insurance Company, Genworth Mortgage Insurance Corporation, United Guaranty Residential Insurance Company, Radian Guaranty Inc., CMG Mortgage Insurance Company, and Essent Guaranty, Inc.

Hot Insurance Companies To Watch In Right Now: AmTrust Financial Services Inc (AFSI)

Amtrust Financial Services, Inc., incorporated on November 7, 1990, is a holding company. The Company is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. The Company operates in four business segments: small commercial business, specialty program and personal lines reinsurance. The Company transacts business through 11 insurance company subsidiaries: Technology Insurance Company, Inc. (TIC), Rochdale Insurance Company (RIC), Wesco Insurance Company (WIC), Associated Industries Insurance Company, Inc. (AIIC), Milwaukee Casualty Insurance Company (MCIC), Security National Insurance Company (SNIC), AmTrust Insurance Company of Kansas, Inc. (AICK) and AmTrust Lloyd�� Insurance Company of Texas (ALIC). In January 2013, the Company acquired First Nonprofit Companies, Inc. In February 2013, the Company's subsidiary acquired Car Care Plan (Holdings) Limited (CCPH) from Ally Insurance Holdings, Inc.

Small Commercial Business

Small Commercial Business segment provides workers��compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores, physicians and other professional offices, and commercial package and other property and casualty insurance products to small businesses. The Company is authorized to write its Small Commercial Business products in all 50 states. The Company distributes its policies through a network of over 8,100 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Commercial package products provide a range of insurance to small businesses, including commercial property, general liability, inland marine, automobile, workers��compensation, and umbrella coverage.

The Company maintains Small Commercial Business property and casualty claims operations in several of its domestic offices and the commercial package claims operation is separated into four processing units: casualty, propert! y, cost-containment/recovery and a fast-track physical damage unit. As of December 31, 2012, its Small Commercial Business property and casualty claims were approximately 61% automobile and 13% property and inland marine with the remaining 26% involving general liability and umbrella losses.

Specialty Risk and Extended Warranty

The Company��Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods in the United States and Europe, and certain niche property, casualty and specialty liability risks in the United States and Europe, including general liability, employers��liability and professional and medical liability. specialty risk business primarily covers, such as legal expenses in the event of unsuccessful litigation; property damage for residential properties; home emergency repairs caused by incidents affecting systems, such as plumbing, wiring or central heating; latent defects that materialize on real property after building or completion; payment protection to insureds if they become unable to meet financial obligations under finance contracts; guaranteed asset protection (GAP) to cover the difference between an insurer�� settlement and the asset value in the event of a total loss, and general liability, employers��liability, public liability, negligence of advisors and liability of health care providers and medical facilities.

The Company's extended warranty business covers selected consumer and commercial goods and other risks, including personal computers; consumer electronics, such as televisions and home theater components; consumer appliances, such as refrigerators and washing machines; automobiles (excluding liability coverage); furniture, and heavy equipment. The Company also serve as a third party administrator to provide claims handling and ca! ll center! services to the consumer products and automotive industries in the United States and Canada. It underwrites the specialty risk coverage on a coverage plan-level basis, which involves substantial data collection and actuarial analysis, as well as analysis of applicable laws governing policy coverage language and exclusions.

Specialty Program

The Company�� Specialty Program segment provides workers��compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous group of small and middle market companies. The type of risk covered by this segment is similar to the type of risk in Small Commercial Business but also covers, to a small extent, certain higher risk businesses. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment primarily include industries, such as retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2012, the Company underwrote 77 programs through 44 independent wholesale and managing general agents. Workers��compensation insurance consists approximately 33% of this business during the year ended December 31, 2012.

Personal Lines Reinsurance

The Company�� Personal Lines Reinsurance Segment has a 20% participation in the Personal Lines Quota Share, by which it receive 10% of the net premiums of the personal lines business. The Personal Lines Quota Share provides that the reinsurers, severally, in accordance with their participation percentages, will receive 50% of the net premium of the GMACI Insurers and assume 50% of the related net losses.

Hot Insurance Companies To Watch In Right Now: ING Groep NV (ING)

ING Groep N.V. (ING), incorporated in 1991, is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In February 2011, the Company divested its real estate investment operation ING Real Estate Investment Management (ING REIM) to CB Richard Ellis Group Inc. In June 2011, the Company sold Clarion Partners. In July 2011, ING announced the completion of the sale of Clarion Real Estate Securities. During the year ended December 31, 2011, the Company divested its interests in ING Car Lease and ING IM Philippines. In February 2012, Capital One Financial Corp. acquired ING Direct business in the United States from the Company.

In June 2011, ING had completed the sale of its interest in China�� Pacific Antai Life Insurance Company Ltd. In June 2011, ING announced the completion of the sale of real estate investment manager of its United States operations, Clarion Partners, to Clarion Partners management in partnership with Lightyear Capital LLC. In October 2011, ING announced that it had completed the sale of REIM�� Asian and European operations to CBRE Group Inc. In December 2011 ING completed the sale of its Latin American pensions, life insurance and investment management operations.

Retail Netherlands

Retail Banking reaches its individual customers through Internet banking, telephone, call centers, mailings and branches. Using direct marketing methods, it is a provider of current account services an! d payments systems to provide other financial services, such as savings accounts, mortgage loans, consumer loans, credit card services, investment and insurance products. Mortgages are offered through a tied agents sale force and direct and intermediary channels. ING Bank Netherlands operates through a branch network of approximately 280 branches. It offers a range of commercial banking activities and also life and non-life insurance products. It also sells mortgages through the intermediary channel.

Retail Belgium

ING Belgium provides banking, insurance (life, non-life) and asset management products and services to meet the needs of individuals, families, companies and institutions through a network of local head offices, 773 branches and direct banking channels (automated branches, home banking services and call centers). ING Belgium also operates a second network, Record Bank, which provides a range of banking products through independent banking agents and credit products through a multitude of channels (agents, brokers, vendors).

ING Direct

ING Direct offers a range of financial products, such as savings, mortgages, retail investment products, payment accounts and consumer lending products. It operates in Canada, Spain, Australia, France, Italy, Germany, Austria and the United Kingdom. In June 2011, ING Group announced the sale of ING Direct USA to Capital One Financial Corporation.

Retail Central Europe

Retail Central Europe has a presence in Poland, and Romania and Turkey. ING in Poland is an Internet bank. During 2011, ING Bank Turkey launched the Orange account, the variable savings product. ING in Turkey also launched a mobile phone banking application. ING Bank Romania carried out its Internet banking site, Home��ank. In September 2011, a mobile version of the Home��ank Website was introduced.

Retail Asia

Retail Banking has a presence in Asian markets of India, China and Thailand. As o! f Decembe! r 31, 2011, the Company had 44% interest in ING Vysya and 30% interest in TMB Bank in Thailand. Bank of Beijing (BoB), in which ING has the largest single interest (16.07%) is a commercial bank in China. ING provides principally risk management and retail banking to BoB.

Commercial Banking

ING Commercial Banking supports the banking needs of its corporate and institutional clients to invest both retail and commercial bank customer deposits. It is a commercial bank in its home markets in the Benelux, as well as in Germany, Central and Eastern Europe. In addition to the banking services of lending, payments and cash management and treasury, it also provides solutions in other areas, including specialized and trade finance, derivatives, corporate finance, debt and equity capital markets, leasing, factoring and supply chain finance. Payments and Cash Management (PCM) and General Lending are its some of the product lines. Structured Finance (SF) is a specialist commercial lending business, providing loans to support capital intensive investments and working capital. It is managed in three groups: the Energy, Transport and Infrastructure Group; the Specialized Financing Group; and International Trade and Export Finance. Leasing and Factoring (L&F) provides financial and operating leasing services for a range of equipment, as well as receivables financing and other factoring solutions for commercial banking clients. The Financial Markets (FM) is the global business unit that manages ING�� financial markets trading and non-trading activities. FM is managed along three business lines: ALCO manages the interest rates exposures arising from the traditional banking activities, Strategic Trading Platform incorporates the primary proprietary risk taking units, and Clients and Products is the primary customer trading facilitation business line.

Real Estate

During 2011, Real Estate Finance (REF) maintained its credit portfolio. Real Estate Development (ING RED) and! Real Est! ate Investment Management (ING REIM) has a controlled wind down of activities.

Insurance Benelux

Duirng 2011, Nationale-Nederlanden introduced bank pension savings products and annuities. ING Life Belgium introduced a new Universal Life product. Nationale-Nederlanden also received a license from the Dutch Central Bank to launch a defined contribution DC company pension product PPI in Europe. NN Services introduced a processing and information technology system (business process management layer) for several legacy lines of retail Life businesses. NN Services IT manages all the closed book business of Nationale-Nederlanden. ING�� life insurance products in the Benelux consist of a range of traditional, unit-linked and variable annuity policies written for both individual and group customers. ING is also a provider of (re-insured) company pension plans in the Netherlands.

NG Benelux��non-life products, mainly in the Netherlands, include coverage for both individual and commercial/group clients for fire, motor, disability, transport and third party liability. Nationale-Nederlanden has also a central product manufacturing service for property and casualty insurance, which has developed products for ING Bank in Belgium and ING Bank in the Netherlands. ING offers a range of disability insurance products and complementary services for employers and self-employed professionals (such as dentists and general practitioners).

Insurance Central and Rest of Europe

Insurance Central and Rest of Europe has life insurance companies in Hungary, Poland, the Czech and Slovak Republics, Romania, Bulgaria, Greece, Spain and Turkey. It has pension funds in Poland, Hungary, the Czech and Slovak Republics, Bulgaria, Romania and in Turkey. ING offers a range of individual endowment, unit linked, term and whole life insurance policies designed to meet specific customer needs. It also has employee benefits products, as well as pension funds, that manage individu! al retire! ment accounts for individuals. The latter comprise both mandatory and voluntary retirement savings.

Insurance United States (Excluding US Closed Block Va)

ING Insurance US offers retirement services (primarily defined contribution plans), life insurance, fixed annuities, employee benefits, mutual funds, and broker-dealer services in the United States. ING Insurance US operates four businesses: Retirement Plans, Individual Retirement, Individual Life and Employee Benefits. ING Insurance US�� Retirement Plans business is a contribution providers, which offers a range of retirement solutions to all sizes and types of employers, including businesses for-profit ranging from start-ups to large corporations, public and private school systems, higher education institutions, state and local governments, hospitals and healthcare facilities, and not-for-profit organizations. ING Insurance US�� Retirement Plans business is a provider of defined contribution (DC) retirement plans in the United States based on assets under management and administration.

Insurance US Closed Block Va

ING US Closed Block VA consists of variable annuities issued in the United States that are primarily owned by individuals and were designed to address the demand for tax-advantaged savings, retirement planning, and wealth-protection. These annuity contracts were sold in the United States, primarily through independent third party distributors, including wirehouses and securities firms, independent planners and agents and banks.

Insurance Asia/Pacific

ING Insurance Asia/Pacific (IAP) is a provider of life insurance products and services. It is a life insurer in the region, with nine life operations in eight markets. IAP has ip operations in Japan and South Korea, operates a nt business in Malaysia, and is well in China, Hong Kong, Macau, India and Thailand. In April 2011, IAP, together with Public Bank Berhad and Public Islamic Bank Berhad, launched a joint ! venture i! n Malaysia, ING PUBLIC Takaful Ehsan Berhad, which will develop Takaful insurance products. In June 2011, IAP completed the sale of its 50% interest in Pacific-Antai Life Insurance Company Limited (PALIC).

The business units of IAP offer select types of life insurance, wealth management, and retail products and services. These include annuities, endowment, disability/morbidity insurance, unit linked/universal life, whole e, participating life, group life, accident and health, term life and employee benefits. In Hong Kong non-life insurance products (including medical, motor, fire, marine, personal accident and general liability) are also offered.

Insurance Latin America

ING completed the sale of its pensions, life insurance and investment management operations on December 29, 2011. These operations were in Chile, Colombia, Mexico, Peru and Uruguay.

ING Investment Management

ING IM is an investment manager of ING Group with activities in Europe, the Americas, Asia-Pacific and the Middle East. In October 2011, ING IM sold ING IM Australia. ING IM provides a range of actively-managed strategies, investment vehicles and advisory services in all major asset classes and investment styles. It delivers a range of investment strategies and services to ING�� global network of businesses and third-party clients.

Advisors' Opinion:

• [By Victor Mora]

  ING is a financial services company providing service to consumers and companies around the world. The company is being forced to sell its South Korean life insurance unit by European regulators. The stock is now trading near highs for the year and looks poised to continue. Over the last four quarters, earnings have been mixed while revenues have been decreasing, however, investors in the company have been pleased with the company’s recent announcement. Relative to its peers and sector, ING has been an average year-to-date performer. Look for ING to OUTPERFORM.

Hot Insurance Companies To Watch In Right Now: Fairfax Financial Holdings Ltd (FRFHF.PK)

Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited.

Hot Insurance Companies To Watch In Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Hot Insurance Companies To Watch In Right Now: Prudential Financial Inc.(PRU)

Prudential Financial, Inc., through its subsidiaries, offers various financial products and services in the United States, Asia, Europe, and Latin America. The company operates through three divisions: The U.S. Retirement Solutions and Investment Management, The U.S. Individual Life and Group Insurance, and The International Insurance and Investments. The U.S. Retirement Solutions and Investment Management division provides individual variable and fixed annuity products, as well as offers retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. This division also provides investment management and advisory services to the public and private marketplace. The U.S. Individual Life and Group Insurance division offers individual variable life, term life, and universal life insurance products; and group life, long-term and short-term group disability, long-term care, and group corporate-, bank-and trus t-owned life insurance products to institutional clients. This division also sells accidental death and dismemberment, and other ancillary coverages, as well as provides plan administrative services; and offers preferred provider and indemnity dental coverage plans to clients. The International Insurance and Investments division provides international individual life insurance products in Japan, Korea, and other foreign countries; and offers proprietary and non-proprietary asset management, investment advice, and services to retail and institutional clients internationally. In addition, the company engages in real estate brokerage franchise business, which involves marketing its franchises to the real estate companies. Further, it provides institutional clients and government agencies with various services in connection with the relocation of their employees. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

Advisors' Opinion:

• [By Matthew Scott]

  Retiring Baby Boomers could make Prudential Financial (NYSE: PRU) a strong performer for years to come. Insurance products like its line of guaranteed income annuities have given it an edge over rivals and it continues to make inroads into other areas of investing. Prudential’s stock price increased more than five times over the last two years, jumping from $11.20 on March 9, 2009 to $61.58 at the end of the first quarter.

• [By Victor Mora]

  Prudential Financial is a financial services company that provides�life insurance, annuities, retirement-related services, mutual funds and investment management. The company is attempting to fight the designation as a “systematically important financial institution” as it comes with increased regulation. The stock has been trending higher and looks to continue this path. Over the last four quarters, earnings have been decreasing while revenue figures have been improving which has produced mixed feelings among investors. Relative to its strong peers and sector, Prudential Financial has been an average year-to-date performer. Look for Prudential Financial to continue to OUTPERFORM.