Is Opko Health the Perfect Penny Stock?

If there is one thing that distinguishes Opko Health's (NYSE: OPK  ) chairman and CEO Dr. Phillip Frost, it's that he likes to buy things. From his company's stock to rolling up companies under the medical device maker's big tent, Frost is willing to put his money where his mouth is.

The latest acquisition is Cytochroma, a small drug maker with two drug candidates in late-stage trials. The first drug, Replidea, treats secondary hyperparathyroidis -- or the secretion of too much hormones in the neck -- in patients with end-stage renal disease and insufficient vitamin D, while the second drug, Alpharen, treats hyperphosphatemia in dialysis patients.

Although surgery is the typical standard of care for secondary hyperparathyroidism, doctors may also treat it with Amgen's (NASDAQ: AMGN  ) Sensipar (also called Mimpara in Europe) that generated $243 million in global revenues for the biotech in the third quarter, a 27% increase over the year-ago period. Sensipar raked in $694 million over the first nine months of 2012, a 17% year-over-yeargain.

Hyperphosphatemia is an excess of phosphates in the blood, and it can be caused by the opposite of secondary hyperparathyroidism: The phosphate levels rise because production of the parathyroid hormones is too low. One of the treatments for the condition is sevelamer, which Sanofi (NYSE: SNY  ) markets under the name Renagel and which generated $312 million in the first six months of 2012, more than double the year before.

So it would seem that if Opko can continue shepherding Replidea and Alpharen through the FDA's regulatory labyrinth, it ought to have two drugs on its hands that could provide it with some meaningful revenues once they're commercially launched.

We're not done yet
Of course, that's just the latest bit of buying Opko's done. A week or so before Cytochroma, it purchased a Brazilian biopharmaceutical and diagnostics company, giving it immediate entry into the largest South American market. And that came on the heels of the purchase of a CLIA lab, Prost-Data, which runs 18 phlebotomy sites throughout the U.S. CLIA labs perform tests on humans and are regulated by the Centers for Medicare and Medicaid Services. Opko anticipates the lab will support its near-term commercial launch of its novel biomarkers and associated algorithm for the detection of prostate cancer.

Opko does have new products coming to market, such as a new Alzheimer's diagnostic test that it's partnered with Bristol-Myers Squibb (NYSE: BMY  ) . The two just recently expanded their collaboration beyond just Alzheimer's, but LabCorp (NYSE: LH  ) has licensed that particular test to develop in North America and the United Arab Emirates.

About face!
As for his company's stock, Frost buys a little bit every day or so, tens of thousands of shares at a clip. Over the course of time, he's amassed a holding that represents about 40% of the 298 million outstanding shares, or a 120-million-share portfolio. The notable thing, however, is that he hasn't bought any in more than two weeks as the stock soared at one point to over $7 a stub (with many of his purchases in recent months at $5 or below, he's doing quite well).

Many believe Frost is grooming Opko for its own acquisition, as he did with Key Pharmaceuticals in the mid-1980's when Schering-Plough (now a part of Merck) bought it out, and then with Ivax, which Teva Pharmaceuticals ended up acquiring almost two decades later.

I've been leery of Frost's growth-by-acquisition strategy because it's all fine and dandy until it's not. Acquisitions often run into trouble because there's difficulty blending corporate cultures or any of a number of potential problems. Until those arise, the growth achieved looks wonderful, and then suddenly it doesn't anymore.

Yet I've also warned against shorting the stock, too, as many seem want to do. It still has more than 17% of its float sold short, which could easily cause a squeeze and may indeed have played a role in the stock's 34% gain this past month.

Let me know below if you think Opko's got its eye on the ball here or will get bought out before its buying binge causes it indigestion.

For nearly 100 years, Merck's cutting-edge research has led to a number of medical breakthroughs. Today, however, this pharma stalwart is staring down a steep patent cliff and facing generic competition for its top-selling drug. Will Merck crumble under its own weight, or will it continue to pay dividends to investors for another century? To find out if this pharma giant has the stamina to keep its Bunsen burners alight, grab your copy of our�brand new premium research report�today. Our senior biotech analyst Brian Orelli, Ph.D., walks you through both the opportunities and threats facing Merck, and the report comes with a full 12 months of updates. Claim your copy now by�clicking here.

�

Why Quantum Shares Leapt Higher

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 Quantum (NYSE: QTM  ) have leapt higher today by as much as 11% after the company reported earnings.

So what: Revenue in the quarter was $159 million, a sequential gain of 8%. Non-GAAP net income was $5 million, or $0.02 per share. Analysts were expecting the company to break even for the quarter, while sales were right on target with forecasts.

Now what: CEO Jon Gacek said that growth in revenue helped boost adjusted profits more than expected, and the company also saw record sales of its DXi deduplication offering, which saw sales jump 19% from a year prior. At the same time, the company has scaled back spending in order to save costs and help the bottom line, even as it invests in new product development. Next quarter should see revenue of $145 million to $150 million.

Interested in more info on Quantum? Add it to your watchlist by clicking here.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just�click here�to access the report and find out the name of this under-the-radar company.

Will Advisory Board Beat These Analyst Estimates?

Advisory Board (Nasdaq: ABCO  ) is expected to report Q3 earnings on Feb. 6. 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 Advisory Board's revenues will increase 15.7% and EPS will grow 30.4%.

The average estimate for revenue is $115.7 million. On the bottom line, the average EPS estimate is $0.30.

Revenue details
Last quarter, Advisory Board chalked up revenue of $110.8 million. GAAP reported sales were 21% higher than the prior-year quarter's $91.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.31. GAAP EPS of $0.21 for Q2 were 40% higher than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 48.5%, 40 basis points better than the prior-year quarter. Operating margin was 11.0%, 10 basis points worse than the prior-year quarter. Net margin was 6.8%, 110 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $449.1 million. The average EPS estimate is $1.21.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 78 rating the stock outperform, and 34 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Advisory Board a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $46.38.

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• Add Advisory Board to My Watchlist.

January car sales aim for a 5-year high

L.A. Auto Show Volkswagen�s 2013 Beetle.

SAN FRANCISCO (MarketWatch) � The stock market is off to a good start this year. So are car sales, which are looking to rack up their best January since 2008.

The auto industry rolls out its latest monthly sales numbers on Friday. The analysts are predicting U.S. vehicle and light truck sales will come in about 15% higher than in January 2012. That would put sales on track for a seasonally adjusted annual rate, or SAAR, of 15.3 million new vehicles.

If the predictions hold up, it would be the best January in five years, further evidence that the industry is back on its feet after the brutal beating it took during the financial crisis.

Click to Play The Super Bowl indicator

Baltimore Ravens or San Francisco 49ers: Which team is the market rooting for? Photo: AP

�Auto makers are kicking off the year strong, staying true to disciplined incentive spending as many curtailed their spending in January as the current lineup of products speak for themselves,� said Kirsten Andersson, an analyst at TrueCar.com.

Other factors helping the industry include the stock market�s strongest January since 1989. Read about the stock market's early jump on 2013

So what might be tapping the brakes? Unemployment, which continues to creep lower but is still high at 7.8%.

Consumer confidence is also a little shaky. The Conference Board reported this week consumer confidence fell to 58.6, its lowest level since November 2011, following expiration of the payroll tax cut.

But those concerns seem for the time to be left outside car dealers� doors.

Edmunds.com analysts are predicting 1,045,587 vehicles were sold In January. That�s up 14.5% from a year ago but down 22.8% from December, which is typically a better month anyway thanks to holiday sales and year-end clearances.

Another thing missing in his January: Hurricane Sandy replacement sales. Most folks who lost cars in the storm have already bought a new ones.

TrueCar takes a slightly more optimistic view than Edmunds.com, estimating overall sales in January, including fleet sales, will reach 1,050,938 units, up 15.1% from a year earlier.

/quotes/zigman/264304/quotes/nls/f F 12.95, +0.02, +0.15% Ford Motor Co.

Among the top-selling brands, TrueCar sees the biggest year-on-year gain being made by Volkswagen XE:VOW DE:VOW3 , up 26.5%, Honda HMC , up 21.1%, and Toyota Motor Corp. TM , up 19.7%.

Edmunds.com adds Ford Motor Co. F to the list of biggest percentage gainers, predicting a 20.6% sales gain for the company compared with a year ago.

The biggest seller in terms of units remains General Motors Co. GM , with TrueCar and Edmunds.com looking for sales of 191,000 to 195,000, about 15% more than GM sold in January 2012.

Is 2014 Too Late to Leave the U.S.?

The Ex-PATRIOT Act lies like a coiled snake on a table in the U.S. Senate. The longer title of this unenacted bill from 2012 is the Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy Act. Its self-description is, "A bill to amend the Internal Revenue Code of 1986 to provide that persons renouncing citizenship for a substantial tax avoidance purpose shall be subject to tax and withholding on capital gains, to provide that such persons shall not be admissible to the United States, and for other purposes."

The Ex-PATRIOT Act seeks to impose a perpetual exit tax and a re-entry ban on “specified expatriates.” A specified expat is anyone with a net worth of at least $2 million or a tax liability averaging at least $148,000 over the last 5 years. A renunciation of citizenship would be automatically viewed as a tax dodge. The person would need to prove his innocence to the IRS to become exempt from a permanent and annual 30% tax on all earnings from U.S. investments. The net worth level at which the tax triggered would undoubtedly sink over time and, perhaps, quickly so.

(Even the Nazis were not so extreme. Until 1941, the third Reich used the Reichsfluchtsteuer (Reich Flight Tax) to charge emigrating Jews a one-time 25 percent exit tax. Schumer wants 30% in perpetuity.)

The Ex-PATRIOT Act would also ban “former citizens” from U.S. soil unless he received a waiver. The waiver requirements are to be determined at a later date. Current expats have no legal right to return, but they are rarely banned from doing so. 

The Act was introduced in May 2012 by Senator Charles Schumer (D-NY), read twice, and referred to the Senate Committee on Finance. It is likely to pass in 2013.

THE LIKELIHOOD OF PASSAGE

Reason #1. When the Act emerged from the Democrat-dominated Senate, John Boehner – the Republican leader in the House of Representatives -- was luke-warm. He would back the Act if it was “necessary,” he stated. But he asked, is this really necessary? Since then, the two parties have feuded bitterly over a budget bill, with the Republicans accused of serving millionaires at the expense of America. The mud stuck. Boehner caved; despite a vow to never do so, he allowed taxes on millionaires to rise. 

If he opposes the Ex-PATRIOT Act, Republicans will be excoriated for pandering to jet-set tax evaders. Democrats will chortle with joy. In fact, they have already played the embarrassment card. A co-sponsor of the Act challenged Boehner through a press conference, “Washington needs to work together in a bipartisan manner. I request that you introduce the Ex-PATRIOT Act in the United States House of Representatives and call for an immediate vote on this important legislation.” The political dynamic favors passage of the Act in both the Senate and the House.

Reason #2. The average trapped American is resentful of expats...and, most especially, rich ones. As long as the rate of expatriation was small, it could be dismissed as an aberration. After all, who would flee from the land of the free? That was something Europeans did. But the annual rate of expatriation has been rising sharply since Obama's first term (2009-2012). In 2008, 231 Americas went through the complex and expensive process of officially leaving. In 2009, 750 left; in 2010, 1534; in 2011, 1782. These are official numbers from the Taxpatriate Lists published by the IRS. 

The real numbers would be much, much higher. Consider a series of Zogby International polls conducted between 2005 to 2007. The polls focused on households, not individuals, and excluded households in which any member went abroad as a part of work for the government or a private company. Zogby found that “1.6 million U.S. households had already determined to relocate abroad; an additional 1.8 million households were seriously considering such a move, while 7.7 million more were 'somewhat seriously' contemplating it.” Zogby concluded, “If the data collected in the seven polls...are fairly representative of the current decade, then, by a modest estimate, at least 3 million U.S. citizens a year are venturing abroad."

The polls were pre-Obama. If the post-Obama rate of household relocation tracks the Taxpatriate List rate, then household relocation increased more than eight-fold from 2008 to 2011. No one knows the real numbers but the “expat problem” is now too large to ignore.

[Editor's Note: If you would like to become part of this "problem"...then take this necessary step to free yourself from the increasing burden of belonging to the US...]

Reason #3. Even if the expat numbers remained small, Eduardo Saverin was a game-changer. On May 11, 2012, a Global Post headline announced, “Eduardo Saverin, Facebook co-founder, to renounce his US citizenship ahead of IPO.” Bloomberg estimated that Saverin might well save $67 million in taxes by renouncing prior to Facebook going public. 

One week later, on May 17, Schumer announced the Ex-PATRIOT Act as a direct response to Saverin's “outrage.” Even Boehner was politically compelled to denounce Saverin. Then Denise Rich – a prominent songwriter, socialite and political fundraiser – went expat for tax advantages. And, now, it is rock legend Tina Turner. The United States cannot permit mega-rich and famous people to make expatriation trendy, especially not for tax reasons. 

Reason #4. The Ex-PATRIOT Act is another in what seems to be an irresistible juggernaut of repression against expatriates and Americans abroad. 

Some of the totalitarian measures are well known, such as the Foreign Account Tax Compliance Act. Others fly under the radar. For example, a provision was buried in an unrelated and 1676-paged Transportation Bill entitled “Moving Ahead for Progress in the 21st Century Act” (MAP21). Section 40304 allows the IRS to unilaterally revoke the American passport of anyone it believes "owes" $50,000 or more in taxes. There is no hearing or due process. The IRS can now prevent Americans from fleeing abroad by slamming shut the exit door. And that's that.

Reason #5. Expats and unobtrusive Americans abroad have no hand. Politicians do not care about exiles who do not vote or about people who expose “America, the beautiful” as a lie. Politicians need to demonize them as being greedy, unpatriotic, and thieving elitists. By accusing expats of their own sins, the politicians create a scapegoat.    

CONCLUSION

As it is currently written, the Ex-PATRIOT Act would not be retroactive in its tax provisions. But 2013 may be the last year to use the old tax code. If you are thinking about leaving the U.S., then do it NOW! The legislative pipeline in Congress has been clogged during much of 2012. Do not wait until measures like the Ex-PATRIOT Act or another Section 40304 pass the blockade and land directly into your life. 2014 may be too late. 

*Post courtesy of Wendy McElroy at the Dollar Vigilante.

Wendy McElroy is a renowned individualist anarchist and individualist feminist. She was a co-founder along with Carl Watner and George H. Smith of The Voluntaryist in 1982, and is the author/editor of twelve books, the latest of which is "The Art of Being Free". Follow her work at http://www.wendymcelroy.com.

 

U.S. Rig Count Increases by 11 This Week

HOUSTON (AP) -- Oilfield services company Baker Hughes (NYSE: BHI  ) says the number of rigs actively exploring for oil and natural gas in the U.S. increased by 11 this week to 1,764.

The Houston-based company said in its weekly report Friday that 1,332 rigs were exploring for oil and 428 for gas. Four were listed as miscellaneous. A year ago, Baker Hughes counted 1,997 working rigs.

Of the major oil- and gas-producing states, Texas gained seven rigs, Oklahoma six, Alaska and California gained three, and North Dakota two.

Louisiana lost three rigs, while Arkansas, Pennsylvania, and Wyoming each lost one. The count in Colorado, New Mexico, and West Virginia was unchanged.

The rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.

Top Stocks For 2/1/2013-13

AAR (NYSE:AIR) reported second quarter fiscal year 2011 consolidated sales of $447.1 million and net income of $16.8 million, or $0.42 per diluted share. For the second quarter of the prior fiscal year, the Company reported sales of $328.7 million and net income of $13.3 million, or diluted earnings per share of $0.34.

Sales to government and defense customers increased 46% over last year and were principally driven by sales at the Company’s airlift services business, which was acquired in the fourth quarter of fiscal 2010, and growth at the Company’s defense logistics business. Sales to commercial customers increased 27% versus the second quarter of fiscal 2010, reflecting an improving commercial airline environment.

Included in the results for the second quarter are $6.5 million in sales and a $2.0 million pre-tax loss ($0.03 per diluted share) at the Company’s Amsterdam component repair facility. Subsequent to the close of the second quarter, the Company concluded that it will exit its Amsterdam component repair facility and is currently evaluating a number of strategic alternatives associated with the business unit, including the sale of the unit. The Company expects to report this business as a discontinued operation beginning with the third quarter of fiscal 2011.

AAR is a leading provider of products and value-added services to the worldwide aerospace and government/defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through four operating segments: Aviation Supply Chain; Government and Defense Services; Maintenance, Repair and Overhaul; and Structures and Systems.

AAR � named one of the “Most Trustworthy Companies” for 2010 by Forbes magazine.

 

 

GreenHouse Holdings, Inc. (OTCQB:GRHU), a San Diego, California-based integrated energy solutions provider and developer of eco-friendly infrastructure, announced the results of operations for the third quarter of Fiscal Year 2010 and is providing a shareholder update.

Management is pleased with our operational and financial growth,” stated Chris Ursitti, CEO of GreenHouse Holdings. “Life Protection Inc. and the pending acquisition of Control Engineering, Inc. will provide the company with a strong foundation of growth while positioning us as a market leader within the energy efficiency and load reduction arena. In addition to expanding operations within the residential, commercial and governmental markets, we also anticipate expansion from our industrial clients as we deploy our Automated Demand Response products. We are confident that these developments will rapidly increase earnings, expand margins and allow us to achieve our ultimate goal of increased shareholder value.”

Revenues for the three months ended September 30, 2010 were approximately $1,724,000 compared to approximately $1,671,000 for the three months ended September 30, 2009, an increase of approximately $53,000 or 3%. This increase was due to increased sales of our energy efficient products and services to residential customers as a result of our expansion of our sales and marketing infrastructure.

Revenues for the nine months ended September 30, 2010 were approximately $4,428,000 compared to approximately $3,486,000 for the nine months ended September 30, 2009, an increase of approximately $942,000 or 27%. This increase was due to increased sales of our energy efficient products and services to residential customers as a result of our expansion of our sales and marketing infrastructure.

Mr. Ursitti continued, “Throughout the fiscal year, GreenHouse worked to diversify our clientele, and forged strong industry relationships with well recognized global corporations. We believe these accomplishments were vital steps in positioning the company for both near term growth and long term sustainability. Going forward, we remain committed expanding clean, cost saving energy solutions operations both domestically and internationally while also expanding market presence within our emerging governmental services division.”

GreenHouse provides systems that are financially sound and sustainable to residential, commercial, and industrial and government markets around the globe. GreenHouse provides energy-efficiency products, energy management systems, eco-friendly infrastructure, scalable waste-to-fuel bio-fuel and closed loop systems, as well as other proprietary technologies and products that are utilized to provide a greener and safer future for millions of people.

Why Virtusa Shares Popped

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 Virtusa (NASDAQ: VRTU  ) are resting comfortably on a 6% gain this afternoon, after rising nearly 10% in morning trading behind a solid earnings report.

So what: Virtusa reported $86.5 million in third-quarter revenue with $0.29 in adjusted earnings per share. Both numbers squeaked ahead of analyst expectations, which sought $85.6 million on the top line and $0.28 in EPS. For the upcoming quarter, Virtusa expects $88.8 million to $90.8 million on the top line and $0.30 to $0.32 in EPS. Both numbers are roughly in line with what analysts sought, though the high end of Virtusa's revenue guidance exceeds the $88.8 million consensus. For the full fiscal year, Virtusa's EPS guidance of $1.05 to $1.07 hits the consensus on the top end and exceeds the consensus $331.0 million with an estimated range of $332 million to $334 million

Now what: Virtusa's been moving higher for years now, and so has its EPS. However, this latest pop puts the stock near its 52-week high, and its P/E has been trending higher for months. Investors may want to consider whether the company's expected growth rate will keep it moving in the right direction, or if a short-term pullback is in store for better values.

Want more news and updates? Add Virtusa to your watchlist now.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just�click here�to access the report and find out the name of this under-the-radar company.

Tablets: Apple Holds onto Top Spot in Q4, Says IDC

In case you missed it, market research firm IDC this afternoon reported that shipments of tablet computers in Q4 rose by 75%, year over year, to 52.5 million units, and 74% from Q3′s level, meeting the firm’s expectations for a “very strong quarter.”

Apple‘s (AAPL) iPad saw its share of tablet sales fall from 52% a year earlier to 43.6%, even though its unit volume rose by 48% to 23 million units. Samsung Electronics (005930KS) passed Amazon.com (AMZN) for the number two spot, with 7.9 million units and 15% share, a volume increase of 263%.

Amazon’s own shipments of the Kindle Fire Tablet, which Amazon this week said it was its best-selling product in Q4, again, probably totaled 6 million units, IDC estimates. (Amazon declines to disclose unit shipment numbers.) That gave Amazon 11.5% share, down from 15.9%, on a 27% rise in volume. And in fourth place, Asustek Computer� (2357tw) had the strongest increase of any vendor in the top ranks, with shipments up 402% at 3.1 million units.

Telenav Beats on Revenue, Matches Expectations on EPS

Telenav (Nasdaq: TNAV  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Telenav beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Telenav booked revenue of $50.6 million. The five analysts polled by S&P Capital IQ expected to see net sales of $49.9 million on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $53.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.02. The four earnings estimates compiled by S&P Capital IQ averaged $0.02 per share. GAAP EPS of $0.02 for Q2 were 91% lower than the prior-year quarter's $0.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.6%, 1,670 basis points worse than the prior-year quarter. Operating margin was 2.9%, 1,920 basis points worse than the prior-year quarter. Net margin was 1.8%, 1,750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $50.0 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $196.6 million. The average EPS estimate is $0.00.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 109 members out of 114 rating the stock outperform, and five members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Telenav a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Telenav is hold, with an average price target of $7.20.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Telenav makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Telenav to My Watchlist.

Painting the Picture for 2013: Sherwin-Williams Earnings

Paint-maker Sherwin-Williams (NYSE: SHW  ) reported fourth-quarter and full-year earnings which was within the company's recently bumped-up guidance range. The company which had guided to earn between $6.35-$6.55 for the year turned in earnings of $6.49 a share. It had already blown past its original annual guidance by the end of the third quarter.�

Sherwin's sales in the quarter were $2.22 billion and slightly ahead of analyst estimates of $2.19 billion. The company saw both higher paint sales volumes and higher selling prices. This contributed to gross margins widening from 42.8% to 45.5%.

Looking ahead to 2013, the company expects earnings to be in a range of $7.45-$7.55 a share. The company also sees sales growing in the mid-single digits. That guidance does exclude the effects of the company's proposed Comex acquisition which has yet to close giving additional upside to earnings in the year ahead.

The Comex deal is just one in a string of deals in the industry which will give it quite a different look in 2013. Joining Sherwin-Williams in stocking up for the housing recovery is�PPG Industries (NYSE: PPG  ) �which will also soon be closing on its acquisition of AkzoNobel's North American architectural coatings business. That's on top of DuPont's (NYSE: DD  ) performance coatings business soon to be in the hands of private equity giant Carlyle Group (NASDAQ: CG  ) .�

These ownership changes within the industry come at a time when the housing market really appears to have turned a corner. The numbers being reported by homebuilders and the industry's suppliers have all been quite positive. Not only are builders selling more homes but they are being sold for higher prices. Homebuilder PulteGroup (NYSE: PHM  ) , for example saw closings rise 20% with the average selling price rising by 6% in its most recent quarter's report.

Housing starts last December jumped 12.1% to an annual rate of 954,000 which trounced estimates and was well ahead of November's pace of 854,000 starts. This logically means just one thing for paint-makers: increased sales and earnings. However, a lot of this is already priced into both homebuilders and suppliers.�

At 21 times projected 2013 earnings, Sherwin-Williams does seem a bit pricey given the company's economically sensitive business. The stock has risen 67% over the past year so much of the easy money would appear to have already been made. In order to continue to outperform from here, the company needs to execute flawlessly, and even at that, it's beholden to the continued strength of the housing market.

A cheaper way to play housing
One company supplying a vital building material is copper producer Freeport-McMoRan. After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan's stock looks cheap at around 10 times earnings. FCX has a very profitable copper business, which will benefit from the recovery in housing as well as the�strengthening�of China's growth. To help investors determine if Freeport-McMoRan is a buy or a sell, we've compiled a brand new premium report on the company! Click here now to gain instant access!

Is it Groundhog Day for the markets?

At first glance, the markets look healthy, the economy is okay, and the FOMC continues to stimulate, so everyone thinks this asset rally will continue with their support. However, behind the scenes something else is happening, and it may cause the "Stimulus Bubble" we are in today to burst.

The bubble we are in now is not unlike the Internet Bubble or the Bubble leading up to the credit crisis. Each of those had similarities to today, none more pronounced than their impact on equity prices. At the peak of the Internet Bubble, the S&P was at 1520, at the peak of the Credit Bubble the S&P was at 1560, and here it is again just over 1500.

Market performance since 2000 (13 years):

• � Dow (DIA): +20%

• � S&P 500 (SPY): 0%

• � NASDAQ (QQQ): -20%

Although the purpose of this article is to reveal material truths about the bubble we are in today, the real question might actually be if this is Groundhog Day (the movie, that is). After each of those prior two peaks, the S&P turned down and tested the 800 range before finding legs.

Of course the bursting of those prior two Bubbles caused the markets to come down (each bubble burst for different reasons), and in hindsight, we can easily see the overvalued nature of the markets back then, but back then, when investors were in the middle of it, most did not see what was right in front of their eyes. The aftermath was painful for investors from all walks of life who did not pay attention.

We know that the bursting of those prior two bubbles caused the declines, so if we are in a "Stimulus Bubble" today, what might cause this bubble to burst? We know that the government has been spending at a fevered pace since this crisis began, and we know the FOMC has been printing money on a seemingly endless basis to improve economic conditions, but the economy is still weak in the face of that. I have a very tangible explanation, and it will help answer the important question posed above.

Being an economist by nature I turn to what I know best to find out why the economy is weak in the face of these capital infusions. My Investment Rate indicator will help explain the divergence between aggressive stimulus and what should be very strong economic growth. The answer lies within the root of all economies, and that is people. According to The Investment Rate, the economy is in a natural state of weakness, this is demographic, and no one can stop it from coming, but the endless spending and printing has thus far sheltered the economy from the natural weakness that would otherwise be there.

In fact, one might argue that if they stopped stimulating, and if the endless spending began to abate, that may be exactly what begins the bursting of this Stimulus Bubble."

If that is true, then it deserves more attention, so I have used the economic background I have to find more information on the real net-current stimulus in our economy given the combination of fiscal and monetary policies that exist today. In a Special Report I offer to clients I disclosed a little known fact: Given the changes to fiscal policy that occurred on Jan. 1, 2013, the net real stimulus of fiscal and monetary policies is negative. To be exact, these are now, and for the first time in as long as most of us can remember, a monthly drain on the liquidity within our economy by $5.2 billion per month.

I will leave it up to the readers of this article to determine whether that constitutes the beginning of the bursting of this Stimulus Bubble, the information contained in this article discloses information that very few people recognize, but like Groundhog Days of years past if we can see what lies ahead we can use it to our advantage, just like Bill Murray did in that classic movie.

Aviat Networks Beats on Both Top and Bottom Lines

Aviat Networks (Nasdaq: AVNW  ) reported earnings on Jan. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 28 (Q2), Aviat Networks beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share shrank.

Gross margins contracted, operating margins expanded, net margins grew.

Revenue details
Aviat Networks reported revenue of $129.0 million. The two analysts polled by S&P Capital IQ foresaw a top line of $123.8 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $105.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The two earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS were -$0.09 for Q2 compared to -$0.22 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.0%, 50 basis points worse than the prior-year quarter. Operating margin was 4.0%, 680 basis points better than the prior-year quarter. Net margin was -4.1%, 810 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $118.3 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $482.0 million. The average EPS estimate is $0.26.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 66 members out of 78 rating the stock outperform, and 12 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Aviat Networks a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aviat Networks is outperform, with an average price target of $3.50.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Aviat Networks fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Aviat Networks to My Watchlist.

5 Stocks Growing Their Dividends by 20% per Year

Dividend investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with a steadily rising income stream that essentially equates to a raise every year. And, well, who doesn't like a raise?

But there are other reasons to value dividend growth so highly, and they're well supported by research. For instance, a study by C. Thomas Howard �published in Advisor Perspectives found that, for every percentage point a stock's yield rises, its annual return increases by 0.22 percentage points if it's a large cap, 0.25 if it's a mid cap, and 0.46 if it's a small cap.

Even better, Howard found that dividend-growing stocks outperformed dividend cutters by 10 percentage points per year from 1973 to 2010, and beat both flat- and no-dividend stocks. And the icing on the cake is that Howard showed that this outperformance came with a third less volatility. Higher returns, less volatility-induced stress, and a steadily growing income stream -- what's not to love?

With that in mind, here are five stocks that have grown their dividends by more than 20% annually over the last three years:

Company	3-Year Annualized Dividend Growth Rate
Cliffs Natural Resources (NYSE: CLF  )	92.2%
Walgreen (NYSE: WAG  )	26%
Guess (NYSE: GES  )	23.5%
Wisconsin Energy (NYSE: WEC  )	21.1%
Textainer Group (NYSE: TGH  )	21%

Source: S&P Capital IQ

Had you invested in these companies three years ago, you would have enjoyed total dividend increases ranging from 77% to 610%. And, importantly, all of these companies grew their payout much faster than the rate of U.S. inflation during that time�, thereby protecting (and growing) your purchasing power.

But more important to investors today is to identify the companies that will grow their dividends substantially in the years ahead. In fact, it's possible that companies such as the ones mentioned above, that have substantially grown their dividends in the past, will have to cut their future payouts if their business prospects begin to dim. On the other hand, companies like Apple (NASDAQ: AAPL  ) �, which have recently initiated dividend programs, have low payout ratios and tremendous earnings growth prospects, are well positioned to grow their dividends for many years.

If you're interested in hearing more about the opportunities that are likely to allow Apple to substantially increase its cash payouts to investors in the years ahead, as well as the threats that could place those dividend distributions in peril, I encourage you to read this detailed report on Apple,�written by�The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker. To get instant access to his latest thinking on Apple, simply click here now.

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Is the market right about Amazon?

Amazon misses on revenue, earnings, consensus, does worse than last year, and rockets up almost 9% after hours with a hat trick, a big improvement in operational income and margins.

But wait, I thought revenue growth was the only real metric for evaluating an aggressive growth stock with almost negligible book value relative to price. Oh, well, if they miss on revenue, let's find some metric, any measure that they improved dramatically. Do fundamentals matter when it comes to Amazon?

Let's check in with the sell-side fundamental analysts. According to Nasdaq.com, 23 of 30 analysts have it as a buy. It must have good fundamentals. Finviz.com has the analyst target at 294. Recent analyst upgrdes have raised the target to 290, 300 and 310.

Like all aggressive growth stocks, Facebook and LinkedIn come to mind; price targets are based not on current fundamental metrics but on projected growth way out into the future. Usually the dreams about the future carry price wildly higher. But once that growth stalls, price begins to drop, and Apple comes to mind. But not Amazon. It is in a class all by itself.

Perhaps if we check further, we might find some confidence in the wild expectations folks have for a rather mundane retail company that people like to use because it is so convenient. It's a great company, people love their service, and product lines and maybe some day Amazon will make nice big fat profits.

Meanwhile it's growing like gangbusters, or should we say was growing? Now the operational profits are growing instead of revenue. Does that mean Amazon becomes more like Apple and Google and less like Facebook and LinkedIn? In which case does it ever drop like Apple?

At this writing in the afterhours market on Tuesday, price is at 284, up 24. If the 12-month target is 310, as some recent analyst believes, you are only looking at an implied return of 9%. It is hardly worth buying at these prices even if you believe the analysts� expectations for this stock. The StockpickerUSA.com system, which has a value bias, gives Amazon only one star and rates it a sell.

Let's check the big institutional owners of this stock as of September on nasdaq.com. You will find that plenty of the largest and most respected institutions holding very large positions and increasing their holdings. Obviously, the portfolio managers agree with the sell-side analysts. But things may change if revenue growth falters and Amazon cannot justify the enormous forward PE of 153, which is out there on the moon.

Now we are ready to look at the chart for some answers. The chart is saying that Amazon is overbought in an uptrend and the upper Keltner band is at 282 and the lower band is at 252 on the daily chart, but 225 on the weekly chart.

My guess is that the price move up hits resistance here at 284 as it did last time and by the end of February is testing the lower daily Keltner band. The previous high at 265 will provide the first support when price tests the downside. Prior to earnings, that is what price was doing and what it will do again..

(Nothing in this article recommends Amazon as a buy or sell. Fundamental analysts and technical charts can be wrong. Do your own due diligence and check with a professional financial adviser before acting on the statements in this article.)

Top Stocks For 1/31/2013-2

TaxMasters, Inc. (TAXS.OB), the IRS tax relief company and a leading provider of tax representation services, recently completed shooting a new television ad that will begin airing this fall.

TaxMasters television commercials are identifiable almost immediately. Featuring the founder and CEO, Patrick Cox, the typically 30-second spots deliver a direct and clear message to taxpayers who are experiencing difficulties with the IRS. The television ads have varied slightly over the years, but stick to the same core messaging delivered by the easily recognizable tax expert with a beard, Patrick Cox.

“TaxMasters has a strong presence on cable � not only because of its services, but because of its well-known spokesperson, Patrick Cox. Because it is a powerful way to reach potential clients, the company owns daytime advertising on cable for the tax representation industry,” said Roby Wilson, owner of MaXXimedia, the agency that produces TaxMasters ads and handles its media placement. “His messaging is clear and the appeal is simple. If you have a notice from the IRS, it’s serious and TaxMasters can help. The consistency of messaging has built incredible brand recognition for TaxMasters and face recognition for Patrick Cox. He can’t go anywhere without someone asking, ‘Hey, aren’t you that tax guy?’”

The new ad campaign will premier on major cable networks this fall. Wilson indicated that while the graphics and colors will change, the messaging will remain largely consistent with Cox’s original ads. MaXXimedia and TaxMasters are exploring new advertising concepts to debut in 2011.

“Since 2004, we’ve found that TV is a very effective channel for reaching our audience. Many taxpayers who find themselves in the IRS’ spotlight simply don’t know companies like TaxMasters exist until they see our ads,” said Alex Clamon, VP of Sales and Marketing with TaxMasters. “We’ll continue to reach out to them to provide a complete suite of tax relief, compliance and audit practices designed to help individuals and small businesses.”

Green Dot Corporation (NYSE: GDOT), a leading prepaid financial services company, reported financial results for its second quarter ended June 30, 2010.

“We are happy to report strong year-over-year growth, including a 48% increase in Non-GAAP Total Operating Revenues to $92.8 million and a 20% increase in Non-GAAP Net Income to $15.5 million,” said Steve Streit, Green Dot’s Chairman, President and Chief Executive Officer. “Also, as a pioneer in the prepaid market and after nearly a decade building our business, we are proud to have accomplished a successful IPO. Today, Green Dot is a well known and trusted brand to millions of Americans, having issued well over 12 million general purpose reloadable card accounts since our founding.”

On July 27, 2010, the Company completed its initial public offering of 5,241,758 shares of Class A common stock at an offering price of $36.00 per share. Since all of these shares were sold by existing stockholders, the Company did not receive any proceeds from the sale of shares.

In July 2010, the Company signed an agreement with Circle K to join the Company’s network of retail distributors. Circle K is the nation’s second largest convenience store chain and has over 3,000 company and franchised locations.

Green Dot is a leading prepaid financial services company providing simple, low-cost and convenient money management solutions to a broad base of U.S. consumers. Green Dot also owns and operates the Green Dot Network, a leading prepaid card reloading network in the United States. Consumers can access the Green Dot Network and use it for a wide variety of transactions, including cash loading onto prepaid cards and adding funds to a PayPal account through MoneyPak(R). Green Dot sells its cards and offers reload services nationwide at approximately 50,000 retail stores, including Walmart, Walgreens, CVS, Rite Aid, 7-Eleven, Kroger, Kmart, Meijer, and Radio Shack, which provide consumers convenient access to its products and services. Green Dot’s products include MasterCard and Visa branded prepaid debit cards and the Green Dot MoneyPak.

Cash Store Financial (NYSE:CSFS) is the only broker of short-term advances and provider of other financial services in Canada publicly traded on the Toronto Stock Exchange. The Company also trades on the New York Stock Exchange. Cash Store Financial operates more than 530 branches across Canada under the banners: The Cash Store and Instaloans. Cash Store Financial also operates two branches in the UK under the banner, The Cash Store.

The Cash Store and Instaloans act as brokers to facilitate short-term advances and provide other financial services to income-earning consumers who may not be able to obtain them from traditional banks. Cash Store Financial also provides a private-label debit card (the Freedom card) and a prepaid credit card (the Freedom MasterCard) as well as other financial services.

Cash Store Financial employs approximately 2,000 associates and is headquartered in Edmonton, Alberta.

Cash Store Financial recently celebrated its listing on the New York Stock Exchange by ringing the bell to open trading. Chairman and CEO, Gordon J. Reykdal, was joined in the ceremony by members of Cash Store Financial’s board of directors, executive officers and senior management team.

AAR Wins Army Medical Logistics Contract

On Wednesday, defense contractor AAR Corp (NYSE: AIR  ) announced�that it has won a logistics contract to manage medical supplies for the U.S. Central Command in Iraq, Afghanistan, Kuwait, Qatar, and the United Arab Emirates. The contract, for which no value was named, has a one-year base term, plus the option of two subsequent single-year renewals.

In a press release describing the award, AAR noted that this is the first time it has been asked to manage inventories of medical supplies for a defense customer. Ordinarily, its focus is on providing parts and logistics support for aircraft and ground equipment -- but the experience should be transferable.

Responding to the award, AAR Aviation Services Group Vice President for Inventory, Management and Distribution John Holmes said:

We appreciate the confidence the U.S. Army has in AAR Defense Systems and Logistics to run this important program in support of the warfighter.

Despite news of the award, AAR shares declined 1.9% in Wednesday trading to close at $19.21.

Five reasons bad GDP news is misleading

MARKETWATCH FRONT PAGE

The economy is not falling apart, despite what you may be thinking after today�s report that U.S. gross domestic product contracted at a 0.1% annual rate. Rex Nutting gives five reasons the GDP report wasn�t a disaster. See full story.

Is Facebook growing fast enough?

Facebook�s revenues are growing at a fast pace. But, writes Mark Hulbert, they aren�t growing fast enough to support their current stock price. See full story.

Amazon gets boost on profitability surprise

Amazon�s shares jump as operating profit, a key measure of online retailer�s business, climbs 56% in the fourth quarter. See full story.

Selling health insurance by the pound

As companies struggle to curb rising health-care costs, they are increasingly pointing a finger at workers� ballooning bellies. Obesity-related health problems account for a big chunk of medical claims, insurance experts say, leading some executives to believe the best way to trim their budgets is to get workers to trim their own fat first. See full story.

U.S. economy shrinks 0.1% in fourth quarter

Data show the economy shrinking 0.1% in the fourth quarter, down for the first time since the recession, but See full story.

MARKETWATCH PERSONAL FINANCE

As companies struggle to curb rising health-care costs, they are increasingly pointing a finger at workers� ballooning bellies. Obesity-related health problems account for a big chunk of medical claims, insurance experts say, leading some executives to believe the best way to trim their budgets is to get workers to trim their own fat first. See full story.

Tellabs, in the Spotlight Soon

Tellabs (Nasdaq: TLAB  ) is expected to report Q4 earnings on Jan. 31. 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 Tellabs's revenues will wane -20.7% and EPS will wither -100.0%.

The average estimate for revenue is $251.2 million. On the bottom line, the average EPS estimate is $0.00.

Revenue details
Last quarter, Tellabs booked revenue of $264.4 million. GAAP reported sales were 20% lower than the prior-year quarter's $329.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.02. GAAP EPS were -$0.01 for Q3 compared to -$0.36 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 39.2%, 210 basis points worse than the prior-year quarter. Operating margin was 0.5%, 340 basis points better than the prior-year quarter. Net margin was -1.5%, 3,790 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.06 billion. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 388 members out of 434 rating the stock outperform, and 46 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Tellabs a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tellabs is hold, with an average price target of $4.03.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Tellabs fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Tellabs to My Watchlist.

Agilent: Deutsche Bank Launches Coverage With Buy Rating

Deutsche Bank analyst Ross Murken this morning launched coverage of Agilent (A) with a Buy rating and $41.50 price target.

“Agilent is the premier global measurement company, having transformed itself over the last ten years from a highly cyclical test/measurement provider to a technology leader across life sciences, chemical analysis, communications and electronics,” he writes in a research note. “A offers attractive exposure to high-growth end markets, is supremely positioned in China/Asia-Pac (~37% of revs) and presents a disciplined approach to [return on invested capital]. Given the appeal of A’s new business mix, margin/returns profile and valuation we initiate our Buy rating,”

A is up 37 cents, or 1.1%, to $33.04.

Disclosure: My wife is a former Agilent employee; we own a position in the company�s shares.

Isis Aces its Test

While there had been some doubt if�Isis (NASDAQ: ISIS  ) and its partner Sanofi (NYSE: SNY  ) would have their inherited cholesterol disorder drug Kynamro approved, news today that it received FDA approval shot Isis shares up 10%, while competitor Aegerion (NASDAQ: AEGR  ) was down 2% on the news. In this video, Motley Fool health-care analyst David Williamson tells us some of the headwinds and tailwinds investors can expect for the drug, and how well he sees it competing with Aegerion's Juxtapid in the same space.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report, "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

Why World Fuel Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fuel logistics company World Fuel Services (NYSE: INT  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at World Fuel, and see what CAPS investors are saying about the stock right now.

World Fuel facts

�	�
Headquarters (founded)	Miami (1984)
Market Cap	$3.1 billion
Industry	Oil and gas refining and marketing
Trailing-12-Month Revenue	$38.3 billion
Management	CEO Michael Kasbar (since 2012) CFO Ira Birns (since 2007)
Return on Equity (average, past 3 years)	15.6%
Cash/Debt	$139.4 million / $287.2 million
Dividend Yield	0.4%
Competitors	BP Marine Mercury Air Group Sun Coast Resources

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 321 members who have rated World Fuel believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, 2good2betrue, tapped World Fuel as a particularly timely opportunity:

[A]s I read about this company and what they do, I like where they are going and their acquisitions seem to jive with their core competency. I put my low end target as [$50 per share] with an opportunistic target of [$55] which should come about when their latest acquisition starts to show up in their financials.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, World Fuel may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

1 Thing Worth Watching at Alere

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Alere generated $167.4 million cash while it booked a net loss of $379.4 million. That means it turned 6.2% of its revenue into FCF. That sounds OK.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Alere look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 92.5% of operating cash flow coming from questionable sources, Alere investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 5.6% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 44.7% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Looking for alternatives to Alere? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

• Add Alere to My Watchlist.

Wednesday’s movers: BlackBerry 10 fails RIM

SAN FRANCISCO (MarketWatch) � Shares of Amazon.com Inc. rose on Wednesday along with Chesapeake Energy Corp., while Research In Motion Ltd. trended on Twitter as it launched the BlackBerry 10 device.

Top tickers trending Enlarge Image

$RIMM : U.S.-listed shares of Research In Motion RIMM first rallied and then slumped 12% as its BlackBerry 10 failed to impress investors on first glance. In a move that underscores efforts to reclaim its old glory, the company also decided to rename itself BlackBerry. RIM unveils new BlackBerry 10

The company also named singer Alicia Keys as global creative director in a bid to reach out to younger consumers.

@chicagosean: $NOK sees $RIMM�s Alicia Keys and raises them one Abba.

@danshep55: $rimm names alisha keys global director lol. jay-z will prob be next ceo ..really?

@claytoncohn: $RIMM ticker changing to $BBRY Monday ... biggest change to BlackBerry since ... the BlackBerry.

$BA: Boeing Co. BA shares initially lost ground after it reported fourth-quarter earnings fell to $978 million, or $1.28 a share, from $1.39 billion, or $1.84 a share, a year earlier. Boeing profit down 30%

However, the blue chip stock recovered as Chief Executive Jim McNerney said during a conference call that Boeing doesn�t expect a financial impact from the 787 Dreamliner�s battery troubles and reiterated that the production of new planes continues even while the in-service Dreamliners remain grounded. Boeing cautious on 787 Dreamliner probe

Gainers

Amazon AMZN shares closed up 4.8%, rallying a day after the online retailer surprised with strong operating income for the fourth quarter. Read: Amazon gets boost on profitability surprise

Click to Play Apps for BlackBerry 10?

Besides the usual suspects like Twitter and Facebook, what apps should BlackBerry 10 (or any new smartphone) have available at its launch? Photo: Getty Images

Shares of Avery Dennison Corp.AVY gained 6.4% as fourth-quarter profit rose sharply and as the company announced a deal to sell two businesses for $500 million. The label and tag maker posted an unaudited profit of $49 million compared with $22.2 million a year ago.

Chesapeake Energy CHK shares added 6%. The company on Tuesday announced the retirement of Aubrey McClendon, its co-founder and CEO. Activist investor Carl Icahn responded with praise for the departing executive. �I am confident that history will prove that Aubrey has been correct about the value of natural gas in general and the value of Chesapeake in particular,� Icahn said. Read statement from Carl Icahn

Robert Half International Inc. RHI shares rose 6.6% to lead the gainers after the staffing services company said fourth-quarter earnings rose to 42 cents a share from 30 cents a year earlier.

Decliners

JDS Uniphase Corp. JDSU slid 5.1% ahead of its earnings release. The company is scheduled to report fiscal second-quarter earnings of 14 cents a share on $424.2 million in revenue.

Peabody Energy Corp. BTU shares fell 6.4%, the biggest loser on the S&P 500 SPX . The coal producer said Tuesday it swung to an adjusted loss of $1.12 a share from a profit of 98 cents a share in the year-ago period. The stock was also downgraded by CLSA to sell from underperform on lower metallurgical coal price forecasts.

Why Telecom Stocks Took the Dow Higher Today

These are interesting times in the smartphone market. Telecom investors are reaping the rewards of all this industry buzz: AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) are two of the Dow's top five gainers today.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is trading up in general, rising 0.5% as of 1:45 p.m. EST. But AT&T gained 2%, and Verizon jumped 1.3%, leaving all but a handful of Dow tickers firmly in the dust. Neither Ma Bell nor Big Red reported earnings last night -- they both got that item off the agenda last week.

No, the big telecom stocks are driven by frenzied sector interest today.

Former smartphone king Research In Motion (NASDAQ: RIMM  ) wants to reclaim that long-lost title, and it hopes to do it with a new line of BlackBerry 10 devices. The first wave of these will be unveiled tomorrow morning, and RIM investors have been licking their chops. Share prices may have fallen 14% over the last three days, but RIM is still a 30% gainer in the new year.

Apple (NASDAQ: AAPL  ) left investors disappointed last week, and the reigning king of high-end smartphones is down 10% in 2013. But today, Cupertino introduced a new spin on the full-sized iPad, this time with more storage and a higher price tag. Yes, both Verizon and AT&T will sell these new devices and take a cut of the profits.

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Today's gains notwithstanding, the big telecoms have still underperformed their Dow peers in January. RIM and Apple will do their best to help reverse the graph in 2013.

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons both to buy and to sell Apple, as well as what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thoughts on Apple, simply click here now.

The Best Way to Clean Your Glasses

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Nearly 50% of Americans wear corrective glasses, according to the trade group Vision Council. And most of them are guilty of the biggest crime in lens care: Exhaling onto their lenses, then wiping the fog off with their shirt sleeves. But does this really damage your lenses? Teri Geist, an optometrist in Omaha, Neb., and chairwoman for the American Optometric Association, weighs in.

Simple Solution

Though there are countless products on the market claiming to wipe streaks away, the AOA recommends the most basic of options: kitchen-sink soap. The best way to clean your glasses, says Dr. Geist, is to run them under warm water and put a tiny drop of dishwashing detergent on the tip of your fingers to create a lather on the lens. Then rinse with warm water, and dry with a clean, soft cotton cloth.

"Everyone uses their shirt cloth�worst thing!" she says. "Your shirttail almost certainly carries dust, and that has the potential of scratching your lens."

Glass vs. Plastic

Of the 69.1 million Americans who bought prescription spectacles last year, most purchased plastic lenses; glass has gone out of fashion as safety concerns have arisen. Unlike that hard surface, plastic is soft and can scratch easily.

Once lenses are scraped up, "there is no way to buff that scratch out," says Dr. Geist. Attempting to clean glasses when dry only exacerbates the problem, since a wet surface is slicker than a dry one. "People breathe on their glasses then grab a Kleenex or paper towel or napkin because they're convenient, but the rough fibers that they're comprised of might leave debris behind," Dr. Geist says. She adds that special microfiber cloths are good for dry touch-ups during the day, but aren't a stand-in for a thorough, soapy cleaning. Neither is your breath.

Reflecting on the Problem

Lenses typically have some form of protective coating and should never come into contact with ammonia, bleach, vinegar or window cleaner. "Those chemicals can break down the coating or just strip them," says Dr. Geist. "You know those bubbles you sometimes see on your lens? Those are caused by 'cleansing' solutions." Avoid the problem by requesting anti-glare and UV coatings that are embedded within the lens, which can cost about $100 more than regular-coated lenses.

Clean Lines

Natural oils from your hands, eyelashes and face can lead to a lot of buildup each day, reducing lenses' effectiveness. Leaving spectacles on a sink or vanity, where hair spray and perfume can fly through the air, adds to the residue. The AOA recommends washing glasses every morning, paying special attention to the frames and earpieces, where hair product and makeup tend to rub off. Whatever you do, don't use the most handy form of water to clean your lenses. "Some people use spit, but don't," urges Dr. Geist. Though dirty glasses won't cause an eye infection, saliva "is not the best hygiene method, and it just won't work very well," she says. Soap, warm water and a dry cloth are all you need, once a day, to keep glasses optimally clean and functional. "I have had patients who say they can't see well, but it turns out it is just the scratches," says Dr. Geist.

Will HCA Holdings Beat These Analyst Estimates?

HCA Holdings (NYSE: HCA  ) is expected to report Q4 earnings around Feb. 3. 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 HCA Holdings's revenues will grow 6.0% and EPS will wane -11.7%.

The average estimate for revenue is $8.93 billion. On the bottom line, the average EPS estimate is $0.83.

Revenue details
Last quarter, HCA Holdings logged revenue of $8.89 billion. GAAP reported sales were 11% higher than the prior-year quarter's $8.00 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.77. GAAP EPS of $0.78 for Q3 were much higher than the prior-year quarter's $0.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.0%, 50 basis points worse than the prior-year quarter. Operating margin was 12.5%, 20 basis points better than the prior-year quarter. Net margin was 4.0%, 320 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $35.35 billion. The average EPS estimate is $3.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 60 members out of 66 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give HCA Holdings a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HCA Holdings is outperform, with an average price target of $33.52.

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Teledyne to Buy Danish Underwater 3-D Imaging Company

On Tuesday, Teledyne (NYSE: TDY  ) announced that it has agreed to purchase Danish marine acoustic imaging-software maker RESON A/S.

In a statement, Teledyne described RESON as "a leading provider of multibeam sonar systems and specialty acoustic sensors for hydrography, global marine infrastructure, and offshore energy operations." Of particular interest to the defense contractor may be RESON's sonar systems in use on autonomous underwater vehicles, a nascent field in military technology.

RESON is Teledyne's third 3-D imaging acquisition in the past year, and one the company hopes will provide it with increased capabilities in "ocean depth survey, shallow water and coastal zone imaging, terrestrial and airborne mapping, and even deep space science applications."

Financial terms were not disclosed, nor was specific information on RESON's financials. Teledyne did say, however, that RESON has grown its revenues "more than 50% over the last two years." Meanwhile, Teledyne's own revenue growth rate during the same period was a none-too-shabby 29%.

Shares of Teledyne are nonetheless down 0.6% on the news, at $69.58.

Can United States Steel Beat These Numbers?

United States Steel (NYSE: X  ) is expected to report Q1 earnings around Feb. 1. 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 United States Steel's revenues will wither -10.5% and EPS will wither -55.2%.

The average estimate for revenue is $4.63 billion. On the bottom line, the average EPS estimate is $0.30.

Revenue details
Last quarter, United States Steel notched revenue of $4.49 billion. GAAP reported sales were 6.9% lower than the prior-year quarter's $4.82 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.35. GAAP EPS were -$0.35 for Q4 against -$1.58 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 6.0%, 240 basis points better than the prior-year quarter. Operating margin was -0.9%, 280 basis points better than the prior-year quarter. Net margin was -1.1%, 330 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $18.89 billion. The average EPS estimate is $1.57.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,949 members out of 2,105 rating the stock outperform, and 156 members rating it underperform. Among 478 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 439 give United States Steel a green thumbs-up, and 39 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United States Steel is hold, with an average price target of $25.82.

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PLX Technology Misses on Revenues but Beats on EPS

PLX Technology (Nasdaq: PLXT  ) reported earnings on Jan. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PLX Technology missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP loss per share contracted.

Gross margins dropped, operating margins expanded, net margins increased.

Revenue details
PLX Technology booked revenue of $23.4 million. The three analysts polled by S&P Capital IQ predicted revenue of $24.9 million on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $25.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The two earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.01 for Q4 versus -$0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.4%, 70 basis points worse than the prior-year quarter. Operating margin was 5.7%, 2,840 basis points better than the prior-year quarter. Net margin was -2.6%, 1,850 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $25.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $111.2 million. The average EPS estimate is $0.24.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 39 members out of 52 rating the stock outperform, and 13 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give PLX Technology a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PLX Technology is outperform, with an average price target of $5.83.

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Retirement income shortcuts not always best route

When faced with thorny, complex problems, we all want simple, easy-to-understand solutions.

That is especially true when those difficult issues are emotionally charged.

For example, trying to sort out your various retirement goals and developing an investment plan to achieve them is complicated enough. But add on the fear of financial insecurity, and the result can be paralyzing.

So it is understandable when people rely on simple retirement maxims to get past their insecurities and fears. Unfortunately, those adages are often a poor fit once you have examined your specific goals and circumstances.

Here are a few of the most common retirement-planning shortcuts that may work in some cases but may not always serve you well.

Shortcut: The investments in your retirement account should track your progress toward retirement: an aggressive stance in your youth, a more conservative mix as you get closer to retirement age. This fairly logical concept is based on the potentially false assumption that your retirement account is actually going to be used primarily to fund your retirement. However, the account may actually serve an entirely different goal. In a comprehensive financial plan, you are likely to develop multiple goals — retirement, wealth transfer and charitable giving — and each of these goals can be targeted by locating certain types of accounts in specific wealth structures.

If you are retired, your goal for a retirement account may in fact be to generate income. In that case, a conservative posture may make sense in order to protect your principal. But what if the ultimate goal for the account is to build assets to pass to your children? In that case, you would likely be better served by maintaining a growth posture in that account throughout your retirement years in order to maximize your children's eventual inheritance. Additionally, you might choose to use a Roth individual retirement account. Because Roth IRAs don't require you to take minimum distributions, they are ideally suited to an investment strategy targeting long-term growth throughout your retirement. What if your family has charitable goals in mind? Traditional IRAs and 401(k) accounts are tax-efficient for retirement purposes but very inefficient when it comes to estate taxes (after estate taxes are paid, your children will still pay ordinary income taxes on future distributions). For this reason, 401(k)s and traditional IRAs are good candidates to pass to a charity in your estate plan, as the charity will be exempt from paying taxes on distributions. Given enough forethought about your family's charitable-giving strategy, this account could be designated for a specific charity and then invested according to the charity's investment goals, as opposed to family considerations that would cease to be relevant.

Shortcut: High-growth investments should be held in retirement accounts because they are tax-deferred, and income investments should be held elsewhere. This may make sense before your retirement years, but once you begin taking required distributions, you pay ordinary income tax on these distributions (at least for non-Roth retirement accounts), often at a higher rate than capital gains taxes. Put more simply, if your returns in a retirement account this year are all capital gains and you take a distribution from that account in the same year, your distribution will still be taxed at the higher ordinary income tax rate, obviously an undesirable outcome. In this scenario, as you transition into your retirement years, it might make more sense to hold taxable bonds in your retirement account, where you will pay ordinary income taxes on interest as you normally would, while holding your equity investments in personal accounts that will be taxed at lower capital gains tax rates. Although this sounds counterintuitive after a lifetime of instructions to the contrary, it often makes sense. Again, it is essential to engage in regular planning discussions so that you can understand how the changes in your life circumstances provide a clear map to logical changes in your portfolio positioning.

Shortcut: “Set and forget” a bond portfolio to generate retirement income. Sometimes, all the planning in the world can't protect us from fundamental market shifts that challenge long-held investment assumptions. Many retired couples have spent their entire lives investing in bonds to generate income, but because yields are so low, they are gravitating toward bonds that carry significantly increased risk for only a small amount of additional income. These actions leave their portfolios vulnerable to loss of principal — the exact opposite of what many investors expect from a bond portfolio. Given today's yields, retirees may need to consider much more creative — and perhaps less liquid — strategies to generate income.

This is a particularly stark example of how dangerous it can be to settle for simple solutions to complex problems. Of course, it is tempting to look for a “set and forget” solution for your portfolio during retirement, but in our work with clients, we don't think that retirement is some sort of finish line in terms of investment planning. Instead, the transition to retirement should be accompanied by more, rather than less, strategic-planning work, as this period of time is often marked by significant evolution of your lifestyle, and your estate and charitable goals. Structuring one's portfolio, locating assets in the right kinds of accounts and trusts, and watching your mix of investments are all critical activities leading up to and persisting in retirement. In the end, there are no simple solutions. Rigorous and disciplined planning is the only real way to truly get past our fears and achieve the security that is so important to all of us.

Dune Thorne is a wealth manager at Brown Advisory Inc.

Plum Creek Improves Q4 and Full-Year Results

Plum Creek Timber (NYSE: PCL  ) released Q4 and 2012 results that showed marked improvements in both revenue and profitability. The quarter's revenue was $354 million, and the company netted $79 million ($0.49 per diluted share). The latter represented a sharp upside surprise, as the company indicated last autumn that EPS would come in at $0.25-$0.30. The bottom line was nearly 30% higher on a year-over-year basis.

For fiscal 2012, the company's net profit was $203 million ($1.25 diluted EPS) on revenue of $1.34 billion. Both were higher than the previous year's figures of $193 million and $1.19 billion, respectively.

Plum Creek also provided guidance for 2013. It anticipates "continued demand growth" in several crucial product categories, leading to a net income of $1.25-$1.50 per share for the year. It anticipates Q1 EPS of $0.28-$0.33.

Alcoa in Strategic Partnership With COMAC

On Monday, Alcoa (NYSE: AA  ) announced that its Alcoa Fastening Systems (AFS) subsidiary has signed a strategic technology and commercial cooperation agreement with Commercial Aircraft of China.

The Chinese company, commonly referred to by the acronym "COMAC," is the maker of one of the first of a new batch of homegrown commercial airliners in China -- the C919, sized to compete with Airbus' A320 and Boeing's (NYSE: BA  ) venerable 737. Alcoa says that by partnering with COMAC -- as it has already in the past -- "reinforces Alcoa's presence in one of the world's fastest-growing aerospace markets."

AFS President Vitaliy Rusakov characterized its relationship with COMAC as that of "a key partner ... in the development and production of its commercial C919 aircraft." In a statement, AFS clarified that it will provide the Chinese company "technical assistance in fastener and assembly tooling selection, joint design consideration, and quality system management," including assistance with "engineering, design, and training.

In return, it expects to sell COMAC a lot of fasteners for the new plane.

Alcoa shares, however, didn't respond as expected to the announcement, actually declining 1.4% to end the day at $8.90.

More Expert Advice from The Motley Fool

Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Representing 14.7% of 2011 global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160B by 2017. Based on this prospective and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant simply click here to get started.