Google Is Set To Transform The Online Video Streaming Industry

Google (GOOG) acquired YouTube in 2006 for about $1.6 billion. Since then, the company has been investing heavily to popularize the site and also to improve its content and delivery qualities. It has been trying various ways, like advertisements and paid channels, to monetize YouTube's assets. Launched in May this year the paid channel program is the latest attempt of the company to create a revenue stream beyond advertisements.

Paid channels:

YouTube partner program is the program that enables over a million content creators to earn revenue from their content on YouTube.

On May 9, 2013, YouTube announced a major addition to its YouTube partner program. It introduced a pilot program for paid channels with selected partners. Under paid channels, the content creators can charge a fee from the users who want to access their content. YouTube allowed its initial hand picked partners to charge a subscription fee (starting at $0.99 per month) from its users.

Some of the initial paid channels include: Acorn TV, which offers ad-free British TV programs at $4.99 per month; National Geographic Kids, at $2.99 a month or $30 a year; and PrimeZone Sports, at $2.99 per month.

After the initial success of the program, on October 22, 2013, the company extended this program and allowed most of its partners who have over 10000 existing subscribers to join the program provided that the partner is located in the following countries: Australia, Brazil, Canada, France, Japan, Mexico, South Korea, Spain, the U.K., and the U.S.

The partner also must meet the following eligibility requirements (as mentioned on google.com):

Your account is in good standing.You meet the general criteria for YouTube partnership.You have verified your account by phone.You have an approved AdSense account linked to your YouTube account.You own a free channel with at least 10,000 active subscribers.

Further, every channel will have to provide a 14-day free trial so that users can get the idea of the content.

By launching this program/service, the company will now give the professional content creators an opportunity to stream their content to their target users in a totally personalized way, as this essentially is a self-service platform. YouTube will provide the content delivery infrastructure and also will act as the link between the partners and the potential subscribers.

As YouTube said in its blog post.

We'll be rolling paid channels out more broadly in the coming weeks as a self-service feature for qualifying partners. And as new channels appear, we'll be making sure you can discover them, just as we've been helping you find and subscribe to all the channels you love across YouTube.

Online video-streaming industry:

The online video-streaming industry is the one of the fastest growing industries. According to the data compiled by comScore: "187 million Americans watched more than 48 billion online content videos in July".

Rising Internet penetration, high data-transfer speed, rapidly growing sales of smartphones and tablets, availability of quality content, anytime on-demand availability are some of the key factors behind this growth.

With about 40 million subscribers, Netflix (NFLX) is the clear leader in the online streaming industry. Companies like Amazon (AMZN), Hulu and YouTube (Google) are well known for their online video-streaming services and are competing in the industry. Some other players also operate in the industry. For example, Comcast offers streaming service by the name of Xfinity Streampix; Dish Network (DISH) is using Blockbuster to enter the streaming business; Intel (INTC), the semiconductor manufacturer, is trying to enter in a big way.

Conclusion:

With the full launch of this anytime, anywhere, subscription-based video-streaming program, the company is all set to transform YouTube as well as the online video-streaming industry.

YouTube so far is a video sharing site which allows its users to upload their videos! to the s! ite and share them with the other site users. After the launch of this program, the site will transform to a content delivery platform rather than a just a content sharing site. From now on, the site will act as a content delivery platform for the professional content creators. The program in a way will allow every serious content creator to compete with Netflix, Hulu, etc. Now, the content creators can just concentrate on the creativity, and the site will take care of all the content delivery related needs. The partners just need to create and upload their content, and the site will make sure that the content gets delivered to the subscriber on anytime, anywhere basis.

Preferred destination for content creators:

With the launch of this program, YouTube will become a preferred destination for professional content creators. This program will provides multiple benefits to the content creators like:

Readily available infrastructure and users.Royalty-based revenue stream.Mobile access.

Readily available infrastructure and users:

For any content creator who wants to join the online video-streaming industry, the biggest problems are the lack of delivery infrastructure and users. With the launch of this program, the company provides the solution for the both problems. Now, any serious content creator can use the YouTube's delivery platform to deliver its content to its users on a subscription basis. Moreover, YouTube's one-billion users are larger enough for any quality content creator to get the required subscribers.

Royalty-based revenue stream:

This program will allow the content creators to earn royalty revenue along with the advertisement revenues. Royalty-based revenue stream is preferred by the big content creators, as it normally gives better returns. Moreover, it's up to the content owner to decide how much fee it wants to charge.

Mobile access:

YouTube has a significant mobile presence. Its 40% traffic originates from both phones and tablets.

As me! ntioned i! n its Q3 2013 Results - Earnings Call Transcript:

We've also making great progress across devices with Youtube. Almost 40% of Youtube's traffic now comes from mobile, up from 6% two years ago.

This significant presence of YouTube in the mobile segment along with the program will attract much more content creators because the growth of online video-streaming industry almost correlates with the growth in the use of mobile devices, as the mobile devices are the most preferred platform for the on-demand viewing.

Benefits for the company:

For the company this program will bring multiple benefits like:

Another revenue stream.Rapid build-up of content

Another revenue stream:

This program will open another revenue stream for the company that is also without any copyright issues because the content owners will have full control over their content.

Rapid build-up of content:

The company is not only trying to monetize its existing assets, but also is trying to build-up the content more rapidly by making YouTube a preferred destination for the content creators (explained above).

Effect on the industry and competitors:

The industry and customers will see the entry of many new players with lots of original and exclusive content. For competitors, the program comes as the worst possible news, as it will immensely increase the competition. The only positive for the competitors is the fact that now Google/YouTube is least expected to come with its own exclusive content in the market. Taking everything into account, the program will make the industry more competitive and the existing players more worried.

All in all, an excellent development for the company and its investors.

Disclaimer: Investments in stock markets carry significant risk, stock prices can rise or fall without any understandable or fundamental reasons. Enter only if one has the appetite to take risk and heart to withstand the volatile nature of the stock markets.This article reflects t! he person! al views of the author about the company and one must consult its financial adviser before making any decision.

Source: Google Is Set To Transform The Online Video Streaming Industry

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Stocks to Watch: Cummins, Actavis, Huntsman

Among the companies with shares expected to actively trade in Tuesday’s session are Cummins Inc.(CMI), Actavis(ACT) PLC and Huntsman Corp.(HUN)

Cummins’ third-quarter earnings edged up 0.9% as the supplier of engines for heavy-duty trucks reported weaker revenue growth than expected and the cut its full-year sales outlook. Shares slipped 5.5% to $127.55 premarket.

Actavis’ third-quarter earnings fell 14%, despite double-digit revenue growth, as the generic drug maker was hit by higher acquisition-related charges and other items. The company raised its per-share earnings estimate for the year. Shares climbed 4.4% to $152.25 premarket.

Huntsman Corp.’s third-quarter earnings fell 45% as the chemical manufacturer logged an increase in operating expenses and weaker margins, though revenue improved slightly more than expected. Shares edged up 2.5% to $22.25 premarket.

After giving a downbeat revenue forecast three months ago, Xylem Inc.'s(XYL) results weren’t nearly as bad as feared. But the water firm during the summer saw a “strong performance in emerging markets and better-than-expected activity in Europe.” The cherry on top is Xylem undoing some of July’s cut to 2013 estimates. Shares surged 11% to $32.20 premarket.

Archer Daniels Midland Co.'s(ADM) third-quarter revenue declined, while its earnings more than doubled as an accounting credit boosted the U.S. grain trader and processor’s results. The bottom line just missed expectations, sending shares down 2.1% to $39 premarket.

LyondellBasell Industries N.V.'s(LYB) third-quarter earnings edged up 0.8% as the plastics and chemicals company reported stronger profits in its olefins and polyolefins segments, though results were weaker in its intermediates and refining businesses. Results missed estimates, sending shares down 2% premarket to $74.

Vertex Pharmaceuticals Inc.(VRTX) plans to reduce its global work force by 15% amid declines in the number of patients being treated with its Incivek drug, as the company also reported that its third-quarter loss widened and it cut its revenue view for the year. Shares dropped 2.4% to $76 premarket.

Nutrisystem Inc.'s(NTRI) better-than-expected adjusted third-quarter profit sent shares higher, as the weight-loss products company also struck a cautiously optimistic tone about the upcoming diet season. Shares climbed 9.2% to $16.40 in premarket trading, as results for the period exceeded the muted expectations Nutrisystem outlined in July.

Seagate Technology Inc.'s(STX) fiscal first-quarter earnings fell 27%, pressured by sliding revenue at the data-storage company. Shares fell 3.7% to $48 in premarket trading as results missed expectations.

Tableau Software Inc.'s(DATA) third-quarter profit increased more than sixfold driven by another surge in revenue. Revenue jumped 90% to $61.1 million in the quarter as the company reported growth in customer accounts. Shares of Tableau rose 10% to $69.50 premarket as the results beat expectations.

Michael Kors Holdings Ltd.(KORS) will replace NYSE Euronext Inc.(NYX) in the S&P 500 after trading closes Friday as IntercontinentalExchange Inc.'s(ICE) deal to acquire NYSE is expected to close soon. Shares rose 3.3% to $78.90.

Best Low Price Stocks To Own For 2014

When Google (NASDAQ: GOOG  ) announced its new Chromecast device yesterday, tech sites exploded with initial reviews. Wired even called it "Google's Miracle Device." I wouldn't go that far just yet, but there are two reasons why the small stick could disrupt its streaming competitors.

Priced to sell
The first and probably the most obvious selling point for the Chromecast is its ridiculously low price: $35. That's significantly lower than Apple TV and even $15 less than Roku's cheapest streaming box. Google chose the perfect price point for launching such a device, considering its Google TV has never taken off and Apple TVs and Rokus already dominate the market.

Source: Google.

If Google had come in the $50 to $100 range, the device would've had to come with much more features, and couldn't be just the basic Wi-Fi device-pairing system that it is. As it stands, Chromecast is a simple way to stream music, movies, and video a from a user's PC, Android, or iOS device.

Best Low Price Stocks To Own For 2014: Silicon Graphics International Corp(SGI)

Silicon Graphics International Corp. provides computing and storage, and data center solutions, as well as related customer support and professional services. The company offers scale up servers; scale out servers; work group servers; data storage systems; and software products for technical computing, as well as data center infrastructure products, including ICE Cube Air, a modular data center that augments or replaces traditional brick-and-mortar data centers; and MobiRack, a line of mobile, all-in-one data center cabinets for field deployments. Its products and services are used by the scientific, technical, and business communities for solving challenging data-intensive computing, data storage, and management problems. The company also develops system applications, such as simulating global climate changes, accelerating engineering of new automotive designs, supporting homeland security initiatives, real-time fraud detection, streaming media from Internet-video to film , and gaining business intelligence through data-mining to defense and strategic systems, weather and climate, physical and life sciences, energy, aerospace and automotive, media and entertainment, semiconductor design and manufacturing, financial services, data centers, and business intelligence and data analytics markets; and enterprise class features for the Linux operating system that provide a standard Linux operating environment. Silicon Graphics International Corp. markets and sells its systems, technologies, software, and services to enterprises in approximately 25 countries through direct and indirect sales force, including distributors, original equipment manufacturers, system integrators, value added resellers, and channel partners. The company was formerly known as Rackable Systems, Inc. and changed its name to Silicon Graphics International Corp. in May 2009. Silicon Graphics International Corp. was incorporated in 2002 and is headquartered in Fremont, Californi a.

Advisors' Opinion:

• [By Seth Jayson]

  Silicon Graphics International (Nasdaq: SGI  ) is expected to report Q3 earnings on April 30. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Silicon Graphics International's revenues will grow 7.7% and EPS will expand 27.3%.

• [By Alex Planes]

  What: Shares of Silicon Graphics (NASDAQ: SGI  ) are up by roughly 8% today after having risen as much as 15% by midday. The fluctuations of today's pop seem to be based on swings between a strong earnings report from the company and a bit of underwhelming forward guidance.

Best Low Price Stocks To Own For 2014: Canterbury Park Holding Corporation(CPHC)

Canterbury Park Holding Corporation conducts pari-mutuel wagering operations and hosts unbanked card games at its Canterbury Park racetrack and card room facility in Shakopee, Minnesota. The company operates in three segments: Horse Racing, Card Room, and Concessions. The Horse Racing segment operates year-round pari-mutuel wagering on simulcast horse races, and live thoroughbred and quarter horse races held on a seasonal basis. The Card Room segment offers unbanked card games, which include poker and casino games. The Concessions segment provides food and beverage services for simulcast and live racing, and the card room, as well as for the special events. The company also offers facilities for special events, such as snowmobile races, arts and crafts shows, trade shows, concerts, fundraisers, automobile shows and competitions, vehicle and boat storage, and private parties. In addition, it provides advertising signage space; leases excess parking lot space for various aut omotive activities and vehicle storage; and sells various daily pari-mutuel publications. Canterbury Park Holding Corporation was founded in 1994 and is based in Shakopee, Minnesota.

Advisors' Opinion:

• [By Monica Wolfe]

  Lastly, Gabelli increased his position in Canterbury Park Holding (CPHC). Gabelli upped his stake 3.18% by purchasing a total of 13,824 shares. He bought these shares at an average price of $11.11 per share, and since then the price per share is up about 3%. Gabelli now holds 447,944 shares, representing 10.74% of the company�� shares outstanding.

• [By Sally Jones]

  Canterbury Park Holding Corporation (CPHC) ��Market Cap $46.35 Million

  Canterbury Park Holding Corporation is up 2% over 12 months. The company has a market cap of $46.35 million; its trades around $11.16 with a P/E ratio of 59.30 and a P/B of 1.70.

Best Value Stocks To Own Right Now: Molycorp Inc (MCP)

Molycorp, Inc. (Molycorp) is a rare earth oxide (REO) producer in the Western hemisphere. The Company owns developed rare earth projects outside of China. The Company also owns rare earth oxide and rare metal producer in Europe. The Company is the producer of rare earth alloys in the United States. It has three operating segments: Molycorp Mountain Pass, Molycorp Tolleson and Molycorp Sillamae. On April 1, 2011, the Company acquired 90% interest in AS Silmet located in Sillamae, Estonia. On April 15, 2011, it acquired Santoku America, Inc. On October 24, 2011, it acquired the remaining 9.9% interest in Molycorp Sillamae. On August 22, 2011, Molycorp opened an office in Tokyo, Japan to provide customer support, as well as consulting and technical services to its customers in Japan. In June 2012, the Company acquired Neo Material Technologies Inc.

The Company sells and transports a portion of the REOs it produces at its Molycorp Mountain Pass and Molycorp Sillamae facilities to customers for use in their particular applications. The remainder of the REOs are processed into rare earth metals and rare earth alloys. The Company produces rare earth metals outside of the United States through third-party tolling arrangements and through tolling at its Molycorp Sillamae facility. A portion of these metals is sold to end-users, and it processes the rest into rare earth alloys at its Molycorp Tolleson facility in Arizona. These rare earth alloys can be used in a variety of applications, including but not limited to electrodes for nickel metal hydride battery production; samarium cobalt (SmCo), magnet production, and neodymium-iron-boron (NdFeB) magnet production.

Molycorp Sillamae sells products to customers in Europe, North and South America, Asia, Russia, and other former Soviet Union countries. At the Molycorp Mountain Pass facility, the Company owns an open-pit mine containing rare earth deposits outside of China. In addition to the mine, its Molycorp Mountain Pass facility includ! es associated crushing, milling, flotation and separation facilities. Its Molycorp Mountain Pass facility is located approximately 60 miles southwest of Las Vegas, Nevada near Mountain Pass, San Bernardino County, California.

The Company�� Molycorp Sillamae facility consists of various manufacturing, research and administration buildings located on 67 acres of land at 2 Kesk Street, Sillamae, Estonia, 200 kilometers from Tallinn, the Estonian capital. The Company�� Molycorp Tolleson facility includes various manufacturing, research, and administration buildings situated on seven acres of land at 8220 West Harrison Street, Tolleson, Arizona, which is just south of Interstate 10 about 15 miles west of Phoenix, Arizona's Sky Harbor Airport. As of December 31, 2011, its Molycorp Tolleson facility had the installed capacity to produce approximately 1,350 tons of ingot cast alloys and 750 tons of strip cast alloys per year.

Advisors' Opinion:

• [By Doug Ehrman]

  On an adjusted basis, Molycorp (NYSE: MCP  ) crushed analyst expectations, beating on both earnings and revenues. Despite favorable comments from the company regarding the duration of 2013, analysts have maintained a grim view of the stock for the rest of the year. This didn't prevent the stock from surging nearly 25% in after-hours trading 芒�� although this push pulled back a bit, seeing shares trade up about 17% during Friday morning trading. The question for investors now is where do shares actually go given the sharp disconnection between the company's message and that of analysts.

• [By Doug Ehrman]

  Rare-earth materials have been in a slump and the companies in that sector are no different. Molycorp (NYSE: MCP  ) is down roughly 40% year to date, so the question remains: Is the stock finally cheap enough to buy. Furthermore, with the potential of a new rare-earth deposit in Wyoming going to competitor Rare Element Resources (NYSEMKT: REE  ) , Molycorp faces several challenges.

• [By Doug Ehrman]

  While most of us take water pretty much for granted, cleaning it and making it safe is big business that could spell significant profits for investors. Ecolab (NYSE: ECL  ) , the world's largest provider of services and chemicals used in water treatment, recently announced its plans to expand across the globe. Similarly, despite the depressed prices we have seen for rare earth materials, Molycorp (NYSE: MCP  ) is finding a measure of success in water treatment.

Best Low Price Stocks To Own For 2014: Georox Resources Inc. (GXR.V)

Georox Resources Inc., a natural resources exploration company, engages in the acquisition, exploration, and development of petroleum and natural gas properties in western Canada. It has interest in the Silverdale property in Alberta; Coteau Lake property in southeastern Saskatchewan and northeast Montana; and a property in the Pouce Coupe area, NW Alberta. The company was formerly known as Oromonte Resources Inc. and changed its name to Georox Resources Inc. in August 2008. Georox Resources Inc. was incorporated in 2003 and is headquartered in Kelowna, Canada.

Best Low Price Stocks To Own For 2014: Southern Cross Goldfields Ltd(SXG.AX)

Southern Cross Goldfields Limited engages in the exploration and development of mineral properties primarily in Western Australia. The company has approximately 3,300 square kilometers of permits under license or agreements in the Central Yilgarn gold and nickel province. It holds interest in the Parker Range gold project located in Southern Cross; the Marda gold project located in Marda-Diemals greenstone Belt; and the Bullfinch North nickel project located in the Southern Cross greenstone belt. The company was incorporated in 2007 and is based in West Perth, Australia.

Best Low Price Stocks To Own For 2014: Cementir(CEMI.MI)

Cementir Holding SpA, through its subsidiaries, manufactures and distributes cement, aggregates, and concrete products worldwide. The company offers various grey cement products, including traditional Portland cement, composite Portland cement, blast furnace cement, pozzolanic cement, and composite cement. It also provides white Portland cement that is used in dry white and colored mixtures as a binder in various types of mortar; and used in concrete for panels, balconies, cornices, ornaments, paving stones and flags, sculptures, and swimming pools, as well as used to produce road signs, tunnel linings and ramps, kerbs, road-markings, and medium barriers. In addition, the company offers ready-mix concrete; and pre-cast concrete products that are used in civil engineering projects and transport industries. Further, it extracts and distributes aggregates, such as sand, gravel, or crushed stones used as structural construction components. The company was incorporated in 1947 and is headquartered in Rome, Italy.

Historical Returns For U.S. Stock/Bond Allocations, And Choosing Your Allocation

Asset allocation has a larger impact on overall results than specific security selection. Researchers argue about the degree of impact, but all agree the impact is major. Asset allocation comes first, and then security selection within asset categories.

Apart from cash reserves for expected withdrawals, or as dry powder for tactical purchases, the primary assets in allocation are stocks and bonds. Let's look at the 37-year history from 1976-2012 for various allocation levels between US bonds and US stocks.

Good proxy ETFs for US stocks would be IWV (Russell 3000) or VTI (CRSP US Total Market Index). For US bonds, good proxy ETFs would be AGG or BND, both tracking the Barclay's Aggregate Bond Index.

First let's look at a summary for each of three allocation risk levels: 60/40 stock/bonds, 80/20 and 20/80.

You will notice in Figures 1-3 that higher stock allocations produced higher mean returns, but also higher volatility, more loss years, and more severe worst years, as well as higher best years.

On the other end of the scale, higher bond allocations produced lower mean returns, but also lower volatility, fewer loss years, and less severe worst years and more modest best years. The venerable 60/40 allocation has an in-between set of attributes.

Note: The "-2 SD" and "+2 SD" show the return levels that are two standard deviations on either side of the 37-year mean return. In theory, two standard deviations encompasses almost 98% of probable prices, with only slightly more than a 1% probability of prices outside of either side of that range. Infrequently prices move outside the 2 standard deviation range, as they did in the 2008 crash, which was out several standard deviations (a "black swan").

The 60/40 allocation has a +/- 2 Std Dev return range of negative 12% to positive 32%, versus the 80/20 with a negative 18% to positive 39%, versus the 20/80 with a negative 4% to positive 22%. The 60/40 had 5 loss years out of 37. The 80/20 h! ad 6 loss years out of 37, but the 20/80 had only 2 loss years.

The actual worst year experiences of the 60/40 and 20/80 were within their probable price ranges, but the 80/20 stock/bond mix went in to Black Swan territory by going well beyond negative 2 standard deviations in the 2008-2009 crash.

Caution: Interest rates have declined for over 30 years, from a peak in 1981 to historical lows in 2013, resulting in both interest return and capital gain return for bonds. For the next several years interest rates are likely to rise, resulting in negative capital gains. Therefore, the historical data is probably overstating the potential for allocations involving bonds until rates normalize (perhaps at 10-year Treasuries yielding 4% to 5%).

Figure 1 (60/40 Stocks/Bonds):

Figure 2: (80/20 Stocks/Bonds):

Figure 3: (20/80 Stocks/Bonds):

Detailed Results By 11 Allocation Risk Levels:

We present data here for 11 levels of risk from Fully Aggressive (100% stocks) to Fully Conservative (100% bonds) and 9 mix levels between. We call the range from 60/40 stocks/bonds to 40/60, Balanced-Aggressive to Balanced-Conservative. Outside of those ranges, we call the allocation either Conservative to some degree or Aggressive to some degree.

The tables assume annual rebalancing at year-end, with no tax or transaction cost impact (most like rebalancing in a tax deferred or tax exempt account).

Figure 4 shows the nominal geometric mean return for the 11 risk levels over 37 years through 2012 ranged from 8.18% to 10.89%, with worst years from negative 2.92% to negative 37.14%. The volatility (standard deviation) for bonds is less than the mean return, but for stocks is significantly greater than the mean ! return.

Figure 4:

(click to enlarge)

Figure 5 shows the geometric mean return for periods of various length leading up to Dec. 31, 2012. The data show bond returns generally declining as periods grow shorter; and stock returns for 3 years about the same as for 37 years, with returns for 5 through 25 years lower (5 years being only 1.79%).

Figure 5:

(click to enlarge)

Figure 6 shows the return for the various allocations on a calendar year basis from 2006 - 2012. All are positive except for 2008, with only 100% and 90% bonds being positive that year.

Figure 6:

(click to enlarge)

Figure 7 shows the number of years out of 37 that returned at least x% (from 3% to 10%) by allocation mix.

This is particularly interesting for personal planning, if you are in or near the distribution stage of portfolio life.

For individuals thinking of their retirement draw rate in the 3% to 4% range, no allocation achieved that level of return in all years.

Note: these data do not show the impact of structuring a portfolio with dividend growth stocks that history shows outperform stocks overall, and that may be necessary to deal with future inflation; nor do they show the probable under-performance of bonds for the next few years as rate rise.

Figure 7:

(click to enlarge)

What Large Investment Organizations Recommend? (Target Date Funds):

Fund organizations try to solve the allocation choice with target date funds, which are based on the year in which the portfolio goes from being one of accumulation to one of distribution -- going from more aggressive in early accumul! ation yea! rs to progressively more conservative as the distribution phase is near or present.

Review of the few dozen organizations that offer target date funds show wide variation in what each believes to be appropriate for each portfolio life stage.

Such funds have as a weakness that they assume some standardized, universal investor who may not be the same as you - with different levels of accumulation, different needed/desired standard of living in retirement, different levels of wages or entrepreneurial income at the same time portfolio withdrawals are being made, different emotional limits on how much volatility can be tolerated, how much you want to focus on preservation versus growth, whether you wish to leave an estate or consume all portfolio assets during your lifetime, and other factors.

While too generic, these funds do provide some third party perspective that can sometimes serve as a reality check --something from which to deviate with purpose and conviction to customize an allocation to your specific circumstances..

Vanguard is one of the target date fund providers. Here is how they allocate between the three primary asset categories (Equities, Debt, and Cash).

Figure 8:

You can see the progressive move toward bonds and reduction in stocks as the withdrawal stage approaches, with high stocks and low bonds when the withdrawal stage is distant; as well as minimal cash liquidity in early years, and larger cash liquidity in later years.

During the distribution stage, it can be helpful to have enough cash to fund the difference (if any) between expected annual withdrawals and expected annual dividend and interest income.

T. Rowe Price takes a more aggressive approach to target date investing for those near or recently in the withdrawal stage, as you can see in Figure 9 in the green shaded rows for target dates 2010 and 2015 compared to the green shaded rows on! Figure 8! for the Vanguard funds.

Figure 9:

Other fund sponsors have yet different allocations for the same target dates. There is no agreed appropriate allocation, and perhaps the design teams have different profiles of the investors they are serving at each target date. These funds and other allocation models are primarily useful as thought provokers and as a reality check, but not necessarily as automatic investment options. Customization to your particular circumstances is appropriate.

Rebalancing Frequency

Returns vary based on the use or non-use of rebalancing and the frequency and/or triggers for rebalancing. There are debates about the return value of rebalancing, but the more certain utility of rebalancing is maintaining a volatility (risk) level for the portfolio.

The data that we provide above assumes annual rebalancing and no tax or trading costs impact . The rebalancing approach is more correct for IRA. 401-k, 403-b, foundation, pension plans and similar accounts, but is generally illustrative for all accounts (with acknowledgement that current taxation eats into capital somewhat in regular accounts).

Emotional Interference With Rebalancing

The theory of rebalancing is that you sell-down winners that have exceeded their allocation target, and buy-up assets that are below their target level. Ideally, all assets do well, but one does better than the other. Sometimes, though, one asset does badly, and instead of having faith in the long-term, our fears take over and we fail to rebalance, thus not achieving the theoretical results that rebalancing history suggests.

Example: When the stock market crashed in 2008-2009, a dutiful rebalancer would have reduced bond holdings and increased stock holdings to maintain allocation policy levels. However, at that time the world seemed like it was going down the drain, and many (perhaps most) "practitioners" of rebala! ncing wen! t to cash or bought more bonds. They did not achieve the same result as historic rebalancing data shows.

Taxation

The comparative benefit of stocks and bonds may be dependent on ever changing tax regimes, and on the type of account (taxable, tax deferred or tax exempt) in which the assets are held. The efficiency of rebalancing is also impacted by the tax status of the portfolio account.

Bottom line -- allocation models are just, models. Investors should be aware of the models and their implications, and then devise what fits their circumstances best.

Annual Stock and Bond Returns for 73 Years From 1936 Through 2009

The actuarial consulting firm Callan produced some interesting long-term return charts for stocks and bonds for NASRA (National Association of State Retirement Administrators). The full report is available at this link.

The first Callan chart in Figure 10 shows the real (excess of inflation) return of US stocks and US bonds for 10-year rolling periods and 30-year rolling periods from 1936 through 2009. The data for the last 35 years is for the Russell 3000 stocks and the Barclays Aggregate Bond index [prior periods are backfilled with Ibbotson data].

Bonds - Over 10-year rolling periods bonds ranged from roughly negative 5% to positive 10% real return, with a 73-year average of positive 2%. Over 30-year rolling periods, bonds averaged a 1.4% real yield, with what looks like a low of less than negative 2% and a high of about 5%.

Stocks - Over 10-year rolling periods, stocks averaged 7.4% real returns, with a range of about negative 5% to positive 20%. Over 30-year rolling periods, stocks also averaged 7.4% real returns, with a range of about negative 5% to positive 12%.

Figure 10:

(click to enlarge)

Inflation or deflation has been all over the lot, but has a 3.5% to 3.9% long-term average. Add the inflation rate to! the real! return of stocks and bonds to compute the long-term average nominal returns.

Figure 11:

(click to enlarge)

What Is The Overall Allocation By Retail Investors?

Mutual fund holdings give one view on individual holdings. As of 2012, the Investment Company Institute reports US mutual fund assets consisted of 45% stock funds, 25% bond funds, 23% money market funds, and 7% hybrid funds. US assets were 49% of holdings, with Europe representing 30% and the balance in the rest of the world.

That is pretty much the Balanced-Moderate risk level in our eleven level scale.

Figure 12:

(click to enlarge)

The American Association of Individual Investors surveys regularly, and focuses on all security types. Currently they report 62.05% stocks (30.67% funds and 31.38% individual stocks), 17.24% bonds (13.50% funds and 3.74% individual bonds) and 20.71% cash.

Figure 13:

They also provide the long-term history of their survey as shown in Figure 14 for data since 1987. Stocks are slightly above the long-term average, bonds are materially below, and cash is high.

Figure 14:

(click to enlarge)

Three Level Conservative, Moderate and Aggressive Allocation According To iShares:

These three ETFs from iShares are based on the S&P Target Risk models. They invest in a collection of other iShares ETFs to achieve these allocations with diversification among sub-classes.

Figure 15:

Posture	Symbol	% Stocks	% Bonds	% Cash
Conservative	AOK	30.45	69.48	0.07
Moderate	AOM	44.58	55.30	0.12
Aggressive	AOA	82.24	17.69	0.07

Five Level Allocation Portfolios Run By Ibbotson:

Ibbotson runs portfolios of ETFs targeting five risk levels that they call:

Conservative 80/20 (debt/equity)Income & Growth (60/40)Balanced (40/60)Growth (20/80)Aggressive Growth (10/90)

Figure 16 shows how they choose to populate each risk level with types of ETFs.

Figure 16:

(click to enlarge)

Balance of Total Investable World Stocks And Bonds Market-Cap:

As a matter of curiosity you might want to know how the total outstanding market-cap of investable stocks and bonds looks at this time. That is what everybody in the work owns as one giant asset allocation. Vanguard put out a nice pie chart for that to accompany their corresponding ETFs.

The world allocation is 46% stocks and 54% bonds, as shown in figure 17.

Figure 17:

Vanguard enables you to capture the world in either three or four ETFs.

Three ETFs would be:

VT(total world stocks)BND (total US bonds) -- actually excludes muni bonds and a few othersBNDX (total international bonds)

Four ETFs would be:

VTI (total US stocks)VXUS (or VEU) (total international stocks)BNDBNDX

You can expand out from there to ever more granular sub-divisions.

QVM Allocations:

For accounts were we are one of several managers, our allocation is 90% to 100% stocks, due to the mandate.

As of this writing, for accounts we manage as the only manager, they are predominantly for high net worth i! nvestors ! in the later stages of asset accumulation or in the withdrawal stage. In those cases, our current allocation for bonds and cash range from 25% to 33% (with cash between 5% and 10%), and for equities from 67% to 75% -- moderately aggressive.

In addition to allocating among what we call Super Classes [Loaning ("debt"), Owning ("equities") and Reserving ("cash")], we prefer to also allocate according to Role within the portfolio, consisting of Broad Core, Income Core and Reserving, as illustrated by the matrix in Figure 18:

Figure 18:

Allocation Ranges:

Super Classes tend to be in the 30/70 to 70/30 range for Owning (mostly stocks) and for Loaning (mostly bonds) depending on account/Client specifics. Reserving (mostly money market funds) tends to be from 0% to 10% depending on account/Client specifics.

Portfolio Roles tend to have minimum and maximum allocations of from 30% to 70% for Broad Core; 30% to 50% for Income Core, and 0% to 20% for Tactical opportunity. The minimum and maximums and target levels are determined by account specifics and are codified in the Investment Policy along with the SuperClass allocations.

Our security selection approach at this time for bonds is to bias toward shorter duration, variable rates, more credit risk than interest rate risk, and reduced bond allocation in favor of a combination of tactical cash and high quality dividend growth stocks. For stocks, we favor US over international stocks, and European over other international stocks. We emphasize high quality, dividend growth stocks.

Disclosure: QVM has no positions in any names security as of the creation date of this article (July 30, 2013). We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article, and are not compensated by Seeking Alpha in any way relat! ing to th! is article.

General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.

Source: Historical Returns For U.S. Stock/Bond Allocations, And Choosing Your Allocation

Why Wendy's Shares Got Gobbled Up

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

What: Shares of Wendy's  (NASDAQ: WEN  ) climbed 10% today after the fast-food restaurant operator posted strong quarterly results and announced a plan to sell about 425 restaurants by mid-2014. 

So what: The stock has soared over the past year on optimism over its rebranding initiatives, and today's second-quarter results -- EPS of $0.03 on a 260-basis-point operating margin increase -- only reinforce those good vibes. Additionally, management's decision to sell 425 company-owned restaurants to franchisees should give Wendy's a much more stable revenue stream from a higher percentage of royalty and rent income. 

Now what: In connection with the sales plan, Wendy's approved a 25% bump in its quarterly dividend and also authorized a share repurchase program for up to $100 million. "The dividend increase and share repurchases are important elements of our financial management strategy," CFO Steve Hare said. "We are committed to continuing to deploy capital to drive the organic growth of our restaurant business, in addition to returning cash to shareholders." With the stock now up a whopping 80% over the past year and trading at a forward P/E of 30, however, much of that growth might already be baked into the valuation.  

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

Why You've Missed Out on the Market's Biggest Gains

Investors buy funds that track the S&P 500 (SNPINDEX: ^GSPC  ) because the index includes 500 of the biggest, best-known companies in the U.S. stock market. Yet at least recently, the best-known stocks in the index actually haven't contributed as much to the market's gains as some of the lesser-known, smaller stocks that barely make their way into the index.

Small is in
Take a look at the following chart, showing the gains in three different stock indexes:

S&P 500, S&P 100, and Russell 2000 data by YCharts.

The line in the middle, weighing in with a gain of almost 18%, represents the full S&P 500. Slightly below that is the S&P 100, which includes the 100 biggest stocks in the S&P 500. As you can see, the S&P 100 has underperformed the broader S&P 500 by more than a percentage point, showing that the companies at the smaller end of the large-cap universe have contributed more to the broader index's performance than the top megacaps included in the benchmark.

Moving further still down the size spectrum, the Russell 2000 (RUSSELLINDICES: ^RUT  ) has put in the best performance of all, crushing the megacap S&P 100 by more than five percentage points and topping the S&P 500 by almost four percentage points.

Why are big stocks falling behind?
Typically, small-cap stocks tend to do better during times of economic growth. That's because unlike the largest, most mature companies, small-caps tend to be younger and more nimble in taking advantage of changing conditions and jumping on profitable opportunities. Moreover, precisely because they're smaller, they have a lot further to grow, attracting investors who don't want the limited upside of blue-chip megacap stocks.

On the other hand, large-cap stocks gain in popularity during times of slower growth and recession. Without the massive financial resources that large caps have, smaller companies are much more vulnerable to adverse economic conditions, and although their size can make it easier for them to adapt, they nevertheless face the challenge of surviving through credit crunches and other capital-market disruptions.

How to score better gains
If you think that the bull market has further to go, then investing in smaller stocks can make a big difference in your overall returns. Whether you go with the simple index-tracking investment iShares Russell 2000 (NYSEMKT: IWM  ) or pick individual stocks on your own, adding small-cap exposure to your portfolio can help you appreciate the growth power of up-and-coming companies as they find their market niches and start to prosper.

Small caps aren't the first companies that come to mind when you think about government bailouts, but two small-cap companies with long-term government deals have managed to securing some monstrous, guaranteed profits -- all while limiting any risk exposure they have. We outline how they're taking advantage in our special, 100% free report "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Just click here to get instant access to the names of both companies, and start reaping the profits right alongside them!

Top 10 Undervalued Stocks To Buy Right Now

Over the years, studies have consistently shown that investing in both domestic equities and foreign stocks reduces portfolio risk while enhancing returns. In addition, the primacy of the US equity markets has greatly diminished with its share of global stock market capitalization declining steadily. This is why investors can no longer limit themselves to domestic investments. By holding widely diversified portfolios selected after careful research, global mutual funds offer a secure an attractive opportunity for investors looking at this category.

Below we will share with you 5 top rated global mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds.

Oppenheimer Global Value A (GLVAX) invests in undervalued securities issued by domestic and foreign companies. The fund does not impose any limit on investment in foreign securities of any country. Funds are invested irrespective of the company�� market cap. This global fund returned 44.66% over the last one year period

Top 10 Undervalued Stocks To Buy Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Eric Volkman]

  Tupperware Brands (NYSE: TUP  ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.

• [By Oliver Pursche]

  European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP  ) has earned a coveted five-star ranking.

Top 10 Undervalued Stocks To Buy Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By WWW.DAILYFINANCE.COM]

  Alamy HOUSTON -- Halliburton says it lost $18 million in the first quarter, pulled down by $637 million in charges related to its role in the 2010 Gulf of Mexico oil spill. But it made money if unusual items are excluded, beating Wall Street expectations. The oil services company's loss amounted to 2 cents a share. That compares with net income of $627 million, or 68 cents a share, a year earlier. Halliburton Co. (HAL), which is in talks to settle claims against it related to the oil spill, said that excluding the charges it posted adjusted earnings of 67 cents a share. That beat the 57 cents that analysts expected. The Houston company, which provides a variety of services for the petroleum industry, is benefiting from a boom in U.S. oil production, which is at the highest level in more than two decades. At the same time, Halliburton's natural gas business has slowed as drillers slowed production due to falling prices for the fuel. Revenue rose slightly to $6.97 billion from $6.87 billion. Analysts expected $6.88 billion. Halliburton shares jumped $1.44, or 3.9 percent, to $38.65 in premarket trading an hour before the market opening. Halliburton is the biggest provider of oil field services in North America, including hydraulic fracturing, a technology that has helped unlock large supplies of oil and natural gas from shale rock formations in the U.S. North American revenue fell 11 percent to $3.71 billion, while operating income tumbled 43 percent to $605 million. Dave Lesar, the company's chairman, president and CEO, said a drop in Halliburton's rig count and pricing pressures in North America were more than offset by the company's growing international business. International revenue increased 21 percent from a year ago. For the full year, Halliburton still expects total international revenue growth in the "low teens," he said. Rival Schlumberger Ltd. (SLB), which has a larger international business, said Friday that its revenue climbed in region

• [By David Smith]

  A mixed quarter
  These shortfalls did not occur in a quarter in which the services group has languished and generally disappointed at earnings time. Indeed, the figurative chieftain of the group, Schlumberger (NYSE: SLB  ) , reported precisely a week earlier that it not only had topped the forecasts of the Wall Street seers, but in fact had also outdone the prior year's results. Baker Hughes (NYSE: BHI  ) didn't accomplish the latter feat, but it topped the analysts' prognostications and even managed to radiate an air of optimism about the North American onshore picture, recently the bane of the group's existence.

Hot Canadian Stocks To Buy Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Nikolaj Gammeltoft]

  Caterpillar (CAT) slid 4.2 percent to $82.06 for the steepest loss in the Dow. Earnings for the world�� largest maker of mining and construction machinery trailed analysts��estimates for a third straight quarter and cut its forecast as mining-equipment sales declined on slower commodity demand from emerging markets.

Top 10 Undervalued Stocks To Buy Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Jon C. Ogg]

  Deutsche Bank is making a change in its coverage of dollar store themes on Monday: Dollar Tree Inc. (NASDAQ: DLTR) was raised to Buy from Hold and Family Dollar Stores Inc. (NYSE: FDO)�was downgraded to Hold from Buy, but the price target was raised to $74 from $70.

• [By Dan Moskowitz]

  The shiniest dollar
  Many investors and analysts like to debate which dollar store offers the best investment opportunity. The truth is that Dollar General, Dollar Tree Stores (NASDAQ: DLTR  ) , and Family Dollar Stores (NYSE: FDO  ) are all likely to be quality long-term investments.

4 Stocks Under $10 Making Big Moves

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

>>5 Hated Earnings Stocks You Should Love

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

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

>>5 Stocks Poised for Breakouts

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

Comstock

Comstock (CHCI) is a multi-faceted real estate development and services company. This stock closed up 7.1% to $2.10 in Tuesday's trading session.

Tuesday's Range: $2.00-$2.17

52-Week Range: $0.48-$3.65

Tuesday's Volume: 74,000

Three-Month Average Volume: 105,114

>>5 Dogs of the Dow to Stomp the Market

From a technical perspective, CHCI bounced higher here right above its 50-day moving average of with lighter-than-average volume. This move briefly pushed shares of CHCI back above its 200-day moving average of $2.13, before the stock closed just below that level at $2.10. Shares of CHCI are now quickly moving within range of triggering a big breakout trade. That trade will hit if CHCI manages to take out Tuesday's high of $2.17 to some past overhead resistance at $2.20 with high volume.

Traders should now look for long-biased trades in CHCI as long as it's trending above its 50-day at $1.94 and then once it sustains a move or close above those breakout levels with volume that hits near or above 105,114 shares. If that breakout hits soon, then CHCI will set up to re-test or possibly take out its next major overhead resistance levels at $2.60 to $2.80, or possibly $3.

Sandstorm Gold

Sandstorm Gold (SAND) is a growth focused resource based company that seeks to complete gold purchase agreements with gold mining companies that have advanced stage development projects or operating mines. This stock closed up 6.1% to $5.51 in Tuesday's trading session.

Tuesday's Range: $5.24-$5.54

52-Week Range: $4.71-$14.76

Tuesday's Volume: 729,000

Three-Month Average Volume: 685,886

>>5 Rocket Stocks to Buy Now

From a technical perspective, SAND ripped higher here right above some near-term support at $5 with above-average volume. This move is quickly pushing shares of SAND within range of triggering a near-term breakout trade. That trade will hit if SAND manages to take out its 50-day moving average at $5.75, and then once it clears some near-term overhead resistance at $6.21 with high volume.

Traders should now look for long-biased trades in SAND as long as it's trending above some near-term support at $5 and then once it sustains a move or close above those breakout levels with volume that hits near or above 685,886 shares. If that breakout hits soon, then SAND will set up to re-test or possibly take out its next major overhead resistance levels at $7 to $7.50.

Ur-Energy

Ur-Energy (URG) is an exploration stage junior mining company engaged in the identification, acquisition, exploration, evaluation and development of uranium mineral properties in the U.S. and Canada. This stock closed up 5.9% to $1.07 in Tuesday's trading session.

Tuesday's Range: $1.01-$1.08

52-Week Range: $0.70-$1.39

Tuesday's Volume: 339,000

Three-Month Average Volume: 399,831

>>5 Big Stocks to Trade for Big Gains

From a technical perspective, URG spiked sharply higher here right off its 200-day moving average at $1 and right into its 50-day moving average at $1.07 with decent upside volume. This move is quickly pushing shares of URG within range of triggering a near-term breakout trade. That trade will hit if URG manages to take out some near-term overhead resistance at $1.08 with high volume.

Traders should now look for long-biased trades in URG as long as it's trending above its 200-day at $1 or above some more near-term support at 96 cents and then once it sustains a move or close above $1.08 with volume that hits near or above 399,831 shares. If that breakout hits soon, then URG will set up to re-test or possibly take out its next major overhead resistance levels at $1.16 to $1.22. Any high-volume move above those levels will then give URG a chance to tag its 52-week high at $1.39.

Prosensa

Prosensa (RNA) is engaged in the discovery and development of RNA-modulating therapeutics for the treatment of rare genetic disorders. This stock closed up 5.4% to $4.43 in Tuesday's trading session.

Tuesday's Range: $4.24-$4.44

52-Week Range: $4.16-$34.55

Thursday's Volume: 151,000

Three-Month Average Volume: 601,600

>>5 Stocks With Big Insider Buying

From a technical perspective, RNA ripped higher here right above its recent low of $4.16 with lighter-than-average volume. This stock has been downtrending badly for the last month, with shares moving lower from its high just above $7.50 to its low of $4.16. During that downtrend, shares of RNA have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of RNA into oversold territory, since its current relative strength index reading is 23.70. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.

Traders should now look for long-biased trades in RNA as long as it's trending above that recent low of $4.16 and then once it sustains a move or close above some near-term overhead resistance levels at $4.50 to $5 with volume that hits near or above 601,600 shares. If we get that move soon, then RNA will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $7. Any high-volume move above $7.50 will then give RNA a chance to re-fill some of its previous gap down zone from September that started at $24.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Do You Own These Blue-Chips? Sell Them!

>>3 Stocks Rising on Big Volume

>>5 Stocks Poised to Pop on Bullish Earnings

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.

General Dynamics Q3 earnings rise on cost control

General Dynamics, an aerospace and defense giant, said Wednesday its third quarter net earnings rose 8.5% from a year ago to $651 million as it reined in cost amid the Pentagon's belt-tightening.

Its earnings per share of $1.84 beat analysts' estimate of $1.68.

The revenues for the Falls Church, Va.-based company, whose products include tanks, ships and business aircraft, fell to $7.8 billion from $7.9 billion a year ago. Its operating cost was cut back by $190 million from a year ago.

Shares of General Dynamics fell 2.4% in late morning trading to $86.05.

Its combat systems division – which makes amphibian landing vehicles, combat vehicles, munitions and mortar weapons, took the brunt of the government spending cutback, with its sales down 30% from a year ago to $1.9 billion.

The sales growth of its marine systems division, which makes warships and submarines, was flat, up 1.6% to $1.7 billion. Its operating profit fell 8.6%.

The decline in government spending was offset by the aerospace division's performance. The maker of Gulfstream business jet aircraft reported a 17% increase in sales for the quarter.

Its total backlog of orders at the end of third-quarter was valued at $47.9 billion. Some important contracts the company won during the quarter include $200 million to continue production and support of armored fighting vehicles for the U.S. Army, $150 million for continued production of Abrams tanks for a foreign customer and a $280 million deal to repair and maintain U.S. Navy warships.

"General Dynamics performed well in the third quarter, reflecting our focus on the basics of operational excellence," said General Dynamics CEO Phebe Novakovic, said in a statement.

Best Safest Stocks For 2014

Spanish bonds have declined quite sharply since the past several days and the previous session was no exception either, as spread between the 10-year Spanish yields relative to benchmark German bunds widened the most since the Euro was created. The yield spread against 10-year German bunds widened to more than 500 basis points, a record high, as concerns grew that Spain�� lenders will need additional financial support to weather Europe�� debt crisis. Meanwhile, global risk aversion is pushing the German bunds to a record low, which in turn is adding more pressure on the yield spread to widen.

As long as the ongoing banking concerns in Spain persists, Spanish government securities are likely to continue weakening further while demand for the safest assets such as German bunds would pick up. This in turn could lead to further increase in spread between the securities of Euro zone�� largest and 4th largest economy.

The below graph shows the spread of Spanish 10-year bond over German bund for the last 3 months

Best Safest Stocks For 2014: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By Louis Navellier]

  If we look at the sector using Portfolio Grader, we see that many of the big names in the group like Flour (FLR), Granite Construction (GVA) and KBR incorporated (KBR) are rated ��ell.��The anticipated spending for both government and private industry simply hasn�� materialized, and the companies are not seeing revenue or profit growth.

• [By Louis Navellier]

  Fluor Corporation (FLR) is one of the world�� leading heavy construction and engineering firms. I don’t want to imply that this is a bad company because it is actually a very good one. However, Fluor has divisions including Oil & Gas, Industrial Infrastructure, Government, Global Services and Power. Virtually all of them are seeing limited spending as a result of the global slowdown and reduced government spending around the world. The stock is up more than 23% this year, but earnings are actually down on flat revenues. Analysts have been lowering their estimates for the rest of this year as well as 2014, and the stock is currently rated as a by Portfolio Grader. When the economy recovers, I expect will see this company’s fundamentals improve substantially … but until that happens investors should avoid the stock.

• [By The Energy Report]

  JH: One of the areas where the U.S. for decades has been the leading technological power is in small nuclear reactors. We've used them on our aircraft carriers and on our nuclear submarines safely and efficiently. The U.S. has an advantage in understanding small modular nuclear reactors. One of the companies that we have followed for a long time that's working on that is Babcock & Wilcox Co. (BWC). There's also Fluor Corp. (FLR), which is working on small modular nuclear reactors. President Obama and the Department of Energy are funding research on the implementation of small modular nuclear reactors.

• [By CRWE]

  Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

Best Safest Stocks For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Best Tech Stocks To Own Right Now: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Cole Campbell]

  Under Armour (NYSE: UA  ) has performed tremendously in the stock market since it first went public in 2005, and it looks to sustain its rapid rate of growth over the coming years. With a market cap that is roughly one-tenth of its rival Nike's, Under Armour has plenty of room to grow and increase its market share in the athletic apparel and footwear market. The company continues to innovate by introducing new products and materials, such as its recent "Alter Ego" line of shirts that have sold extremely well.

• [By Steve Symington]

  If you ever wondered how long�Under Armour� (NYSE: UA  ) would be able to maintain its current torrid pace of growth, the company's founding CEO Kevin Plank wants you to know they're only just getting started.

• [By WALLSTCHEATSHEET.COM]

  Under CEO Kevin Plank�� guidance, Under Armour has established a growing domestic presence. With revenue growth of more than 20 percent each quarter, the company continues to resonate with American consumers. However, it faces an uphill battle in trying to compete with giants Nike and Adidas in European and Asian markets, both of which have already established strongholds abroad. Additionally, niche player Lululemon could threaten Under Armour�� female customer base in the U.S.

Best Safest Stocks For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Selena Maranjian]

  Brazilian oil giant Petrobras (NYSE: PBR  ) plunged 37%, burdened by significant debt. Bulls have been heartened by rising production numbers as some offshore rigs are brought back into service, and some are hopeful that solid car sales in Brazil will boost Petrobras' business. But others point out the Brazilian government's heavy influence on the company's fortunes.

• [By Taylor Muckerman]

  All 1.4 million cars that were sold between January and May have to fuel up somehow, and that is where Brazilian powerhouse Petrobras (NYSE: PBR  ) comes in to the picture. As the largest energy company in the country, Petrobras' gasoline sales would�presumably�follow a similar growth trajectory as auto sales once the retirement of old vehicles is taken into consideration. If the gap between international fuel prices is allowed to be closed ��the recent diesel price hike in March assisted with this ��then revenue from the company's downstream could really take off.

• [By Arjun Sreekumar]

  Several oil majors have even plowed billions of dollars into prospecting areas offshore Africa, despite the risk of unexpected actions by conflict-ridden governments. For instance, Chevron (NYSE: CVX  ) has acquired exploration blocks in Liberia and Sierra Leone, while Royal Dutch Shell (NYSE: RDS-A  ) and Brazilian oil giant Petrobras (NYSE: PBR  ) are jointly exploring deepwater acreage off the coast of Tanzania.

• [By Matt DiLallo]

  For perspective, estimates for Brazil's major offshore pre-salt reserves indicate the potential for 70-100 barrels of oil equivalent, or boe. The country's national oil company,�Petrobras� (NYSE: PBR  ) , is still in the early stages of developing those reserves; its current goal is to reach production of 1 million barrels of oil per day by 2016. However, the company is still in the process of collecting information and mapping the pre-salt region, a project that won't be complete until 2018. What that means is that this play has a long way to go until we know the full extent of the resource potential, but its already producing impressive results.�

BHP Billiton ups iron-ore view after record output

SYDNEY--BHP Billiton Ltd. (BHP) raised its outlook for iron-ore production this fiscal year as it reported record output from its expanding mining hub in Australia's resource-rich Pilbara region.

The world's largest mining group said it now expects to produce 212 million metric tons of the steelmaking ingredient at its Australian mines in the year through June, up on previous guidance of 207 million tons. The guidance figures include the share of minority venture partners.

BHP has been lifting production capacity in the Pilbara region of Western Australia to feed Asian economies like China with iron ore, which goes into steel for skyscrapers and industries like auto manufacturing.

Iron-ore miners have faced volatile commodity prices over the past 18 months as China's economy slowed, raising concerns that demand for the commodity will ease. Recent demand data has proved surprisingly strong, though. China's iron-ore imports in September were a record 74.6 million metric tons, up 15% on year.

Signs that China's demand remains healthy is helping support iron-ore prices at a time when prices of other industrial commodities like coal and nickel remain weak. Prices have rebounded 22% to US$134.40 a ton since hitting a low in late May, although they are 7.2% lower than the start of the year.

BHP is one of the world's largest producers of the commodity, competing with miners like Rio Tinto PLC (RIO) and Brazil's Vale SA (VALE). Last week, Rio Tinto also reported record quarterly iron-ore production.

BHP said in a stock exchange filing Tuesday its own iron-ore output was up 2% in the three months through September compared with the immediately prior quarter, at 48.8 million tons. Output was up 23% on-year.

Analysts at Canadian investment bank Canaccord Genuity had tipped a 3.8% quarter-on-quarter fall, to 45.9 million tons, while UBS AG expected a 6% decline. J.P. Morgan analyst Lyndon Fagan this week increased his forecast to a 2% increase, to 48.8 million tons, citing strong shipment data from Australia's major iron-ore export facilities at Port Hedland.

BHP ships from Port Hedland, along with smaller rivals Fortescue Metals Group Ltd. (FMG.AU) and Atlas Iron Ltd. (AGO.AU).

BHP's plans to raise output from its Pilbara operations to 212 million tons this fiscal year, from 187 million tons in the year through June, comes at a time when rivals like Rio and Fortescue are also expanding mines or bringing new pits into operation. Rio Tinto expects to make a decision by the end of the year on whether to invest around US$5 billion in further expanding its Australian mines, a move seen as a litmus test of confidence in China's resources demand.

Chief Executive Andrew Mackenzie said Tuesday a focus on boosting productivity was "already yielding strong results", especially in the iron-ore business. Mr. Mackenzie took over as chief executive from Marius Kloppers in May, pledging a "laser-like" focus on costs and productivity.

BHP stripped out US$2.7 billion in costs last financial year and is targeting an almost 30% reduction in capital expenditure this year after spending peaked at US$22.9 billion.

In addition to iron ore, the miner's most profitable business, BHP has since turned its attention to markets like petroleum and copper--as well as fertilizer ingredient potash--where profit margins tend to be bigger.

BHP said Tuesday it produced more oil and natural gas during the quarter, as it started up additional wells at its U.S. operations. Output was a record 62.7 million barrels of oil equivalent, it said. It kept full-year guidance unchanged at 250 million barrels.

Copper production was up 6% on-year at 403,300 tons on increased output from its Escondida mine in Chile, which is the world's biggest mining operation for the industrial metal.

Among BHP's other commodities, output of metallurgical coal for use in steelmaking was up 14% on-year at 10.2 million tons, while coal used in energy generation was up 3% at 19.6 million tons. Production of metals including lead and silver were lower on-year, it said, citing lower grades.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Financial Stocks Lead the Dow Higher

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is rebounding following some positive economic reports that have helped quell investors' fears. As of 1:15 p.m. EDT the Dow is up 91 points, or 0.62%, to 14,773. The S&P 500 (SNPINDEX: ^GSPC  ) was up 15 points to 1,587.

There were five U.S. economic releases today.

Report

Period

Current

Previous

Durable-goods orders	May	3.6%	3.6%
FHFA home price index	April	7.4%	7.2%
New-home sales	May	476,000	454,000
Consumer confidence index	June	81.4	74.3
Case-Shiller Home Price Index	April	2.5%	1.4%

The key report here is durable-goods orders, which grew a seasonally adjusted 3.6% in May, slightly below analyst expectations of 3.8%. Excluding the transportation sector, durable-goods orders only rose 0.7%, down from 1.7% growth in April. Rising durable-goods orders are a positive sign for the economy, showing that businesses and consumers are confident enough to invest in goods that are expected to last longer than three years. When consumers and businesses turn pessimistic on the economy, durable-goods orders drop, as they can usually be put off for some time.

The other economic releases all had to do with the gradually strengthening housing market. Last week's comments from Federal Reserve Chairman Ben Bernanke, coupled with a credit crunch in China, set off a wave of selling in the bond markets, pushing up rates across the board. Mortgage rates saw an especially big jump: A month ago buyers could get a 30-year fixed mortgage with a 3.75% interest rate, but the same mortgage now carries a rate of 4.51%. The question is whether the housing market will continue on its upward trend now that mortgage rates have jumped. There's now way to know for sure what will happen, but as members of the Federal Reserve have been emphasizing, the Fed will continue its quantitative easing until the economy does pick up.

While home buyers are not happy about higher rates, one group that's cheering is banks. Today's Dow leader is Bank of America (NYSE: BAC  ) , up 2.5%, while JPMorgan Chase (NYSE: JPM  ) is up 1.9%. Low rates have been both a benefit and a challenge for banks. Historically low rates lead many people to refinance their mortgages, leading to fees for the banks. However, banks' business models depend on their ability to take in deposits at low cost and lend out at higher rates, and that model is difficult when the Fed is working to keep long-term rates low.

In the short term, banks will be hit by rising rates as refinancing activity drops. But over the medium term, they're set to do better as rates rise, increasing the spread between their loan rates and the rate at which they can borrow money.

The 2 Biggest Questions Going Into Apple's iPad Event on Tuesday

Apple's (NASDAQ: AAPL  ) event this Tuesday has been confirmed. The company is expected to launch a new version of its full-sized iPad and iPad Mini. Let's look at what we know and, more importantly, what we don't know. Despite the company's hyperactive rumor mill, there are still several intriguing mysteries.

Apple's redesigned Mac Pro. Source: Apple website.

What we (probably) know
The event will probably revolve around the iPad. The new iPad will reportedly adopt the form-factor of its smaller counterpart and be about 20% lighter and thinner. Both iPads are rumored to adopt Apple's new A7 processor -- a huge upgrade for the iPad Mini, which previously used the iPad 2's A5, though the full-sized iPad will reportedly get the typical graphics boost, so it will technically utilize the A7X.

Other new products to make it to the stage are likely to include Apple's redesigned Mac Pro and new set of 13-inch and 15-inch Retina MacBook Pros.

Apple TV
Whether Apple will launch a new version of its Apple TV, however, is less certain. An Oct. 18 report that Amazon.com's France and Germany sites had sudden unavailability of Apple's most recent version of the device, with planned availability on Oct. 23, sparked speculation that Apple will upgrade the device on Tuesday. But Amazon U.S. and Apple's U.S. online store still show availability. Even more, AppleInsider's Katie Marsal reports that there's a "surprisingly large stock of Apple TV" in Apple's indirectly retail channels.

On the other hand, as Marsal explains, Apple sometimes dumps its remaining inventory into its direct channels before product introductions, a move that could leave retailers well stocked (depending on Apple's remaining inventory). Marsal notes that, according to AppleInsider's source, Apple TV inventory is the highest it has been in months. So is the high level on inventory a sign of the current version's end?

The Apple TV is certainly due for an update. It's been a whopping 592 days since Apple last refreshed the set-top box. Even more, the competition has stepped up its game. Google's Chromecast, in particular, continues to be the best-selling item in electronics on Amazon's online store. And the Roku is outselling the Apple TV on Amazon, too.

A new cover?
Apple's tagline on the press invitations for the event suggests Apple may be planning to launch some sort of new cover.

Press invitations for Apple's Oct. 22 media event. Source: MacRumors.

Though no leaks have surfaced hinting at a new cover this Tuesday, the invitation's tagline certainly makes a solid case for its potential existence.

Apple does hold several interesting patents for its Smart Cover that have yet to make it to market. One patent Apple applied for allows a Smart Cover to charge an iPad wirelessly via inductive charging. The filing notes that the cover itself could possibly charge by being plugged into a conventional power source or even via solar cells incorporated into the cover.

Apple patent application for inductive charging in cover. Source: MacRumors.

Another Apple patent filing has a flexible display built right into the Smart Cover. The cover could be used to display notifications or even a keyboard.

Apple patent application for a flexible display built into cover. Source: Liliputing.

It's worth noting that many Apple patents never make into products. But these patents undoubtedly show the company's interest in innovating its covers.

Will Apple surprise us?
Given Apple's recent struggle to grow revenue and EPS, year over year, Apple could use a pinch of surprise in its product launch event recipes. What do you think? Will Apple finally refresh its Apple TV? Will Apple launch an innovative, new cover?

What's Apple's next big move?
Apple has a history of cranking out revolutionary products -- and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.