Boeing to Boost 737 Annual Production to 560 Planes

The Boeing Co. (NYSE: BA) announced on Thursday afternoon that the company would raise production of its 737 family of single aisle planes to 47 new aircraft a month (564 a year) in 2017. The company currently builds 38 planes a month at its plant in Renton, Washington plant and that number will grow to 42 planes a month in the first half of 2014.

Boeing said it is laying a "foundation" for the transition to its new 737 MAX aircraft which are scheduled for first delivery in the third quarter of 2017. The 737 is arguably the single most popular airplane ever built. Boeing claims it has built and has orders for a total of 11,200 of the planes with 3,400 orders still to be filled.

Ever since the troubles the company had getting its 787 Dreamliner into service — and the problems that have arisen since it began delivering the planes — one has to wonder if the company has a chance of keeping to its schedule for the 737 MAX. Last week Boeing announced an order worth $20.7 billion for 200 of its 737 MAX aircraft from China's three largest airlines.

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The competitor to the 737 MAX is the Airbus 320neo which is scheduled for delivered a full two years earlier than the new Boeing plane. If Airbus can deliver a hot new product on time and on budget, Boeing could have a difficult time keeping all those orders on its books.

Top Warren Buffett Stocks To Own For 2014

Someone who reads my articles asked me this question:

Hi Geoff,

I wanted to ask you if you could give me an example of valuing a company with "Owner Earnings" that Buffett speaks about in his annual reports��I would like to know how do you believe he accounts for the valuation of the company if it is indeed growing?... what does he do if the company is indeed growing earnings (or free cash flow) at a 15% - 20% clip or better?

Since I�� not really going to answer the question you asked ��simply because I don�� think Warren Buffett values stocks that way ��I will give you a helpful rule of thumb for valuing fast growing businesses. We��l use your example of a company growing 20% a year. Growth rates above 20% a year are hard to sustain. So there�� little point incorporating them into a valuation.

Top Warren Buffett Stocks To Own For 2014: Akorn Inc.(AKRX)

Akorn, Inc. engages in the manufacture and marketing of diagnostic and therapeutic ophthalmic pharmaceuticals products, niche hospital drugs, and injectable pharmaceuticals in the United States and internationally. It offers products in various specialty areas, including ophthalmology, antidotes, anti-infectives, pain management, anesthesia, and vaccines. The company?s Ophthalmic segment markets diagnostic products, including mydriatics and cycloplegics, anesthetics, topical stains, gonioscopic solutions, angiography dyes, and others primarily for use in the office setting. This segment also offers therapeutic products, such as antibiotics, steroids, steroid combinations, glaucoma medications, decongestants/antihistamines, and anti-edema medications to wholesalers, chain drug stores, and other national account customers; and non-pharmaceutical products, which include various artificial tear solutions, preservative-free lubricating ointments, and eyelid cleansers. In addit ion, the Ophthalmic segment provides a line of over-the-counter dry eye and other eye health products principally under the TheraTears brand name through a chain drug stores and big box retailers, as well as directly to optometrists, ophthalmologists, and other eye care practitioners and clinics. The company?s Hospital Drugs and Injectables segment provides a line of niche hospital drug and injectable pharmaceutical products comprising antidotes, anti-infectives, controlled substances for pain management and anesthesia, and other pharmaceutical products to hospitals through the wholesale distribution channel. Its Contract Services segment manufactures ophthalmic and injectable pharmaceutical products for third party pharmaceutical customers based on their specifications. The company serves physicians, optometrists, hospitals, wholesalers, group purchasing organizations, pharmacy chains, and other pharmaceutical companies. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of Akorn (NASDAQ: AKRX  ) �-- a hybrid generic and branded drug developer -- shed as much as 15% of their value after the company reported disappointing first-quarter results.

Top Warren Buffett Stocks To Own For 2014: Matrix Service Company(MTRX)

Matrix Service Company provides construction, and repair and maintenance services primarily to the energy and energy related industries in the United States and internationally. The company operates in two segments, Construction Services, and Repair and Maintenance Services. The Construction Services segment offers aboveground storage tanks for the bulk storage/terminal industry, capital construction for the downstream petroleum industry, and specialty construction, as well as electrical/instrumentation services, such as civil/structural, mechanical, piping, electrical and instrumentation, millwrighting, and fabrication for various industries. This segment focuses on renovations, retrofits, modifications, and expansions to existing facilities, as well as construction of new facilities. The Repair and Maintenance Services segment provides aboveground storage tank repair and maintenance services, including tank inspection, cleaning, and American Society of Mechanical Enginee rs code repairs; planned major and routine maintenance for the downstream petroleum industry; specialty repair and maintenance services; and electrical and instrumentation repair and maintenance. It serves integrated oil companies, independent petroleum refiners, power companies, engineering firms, general contractors, and petrochemical and industrial gas companies, as well as pipeline, terminal, and oil and gas marketing companies. The company was founded in 1989 and is headquartered in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of energy service provider Matrix Service (NASDAQ: MTRX  ) jumped 10% today after an analyst upgraded the stock.

  So what: Analysts at Sidoti upgraded the stock from "neutral" to "buy" today. This was the only news out about the stock and drove traders to push volume to nearly twice its three-month average. �

Hot Financial Stocks To Invest In 2014: Leggett & Platt Incorporated(LEG)

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. Its Residential Furnishings segment offers bedding components, such as innersprings and wire forms; furniture components, including steel mechanisms, springs, seat suspensions, steel tubular seat frames, bed frames, ornamental beds, and power foundations; and structural fabrics, carpet underlay materials, and geo components. This segment serves manufacturers of finished bedding products or upholstered furniture. The company?s Commercial Fixturing & Components segment provides shelving, counters, showcases, and garment racks; standardized shelvings; point-of-purchase displays; and bases, columns, back rests, casters, and frames. This segment offers its products to retail chains and specialty shops; brand name marketers; distributors of consumer products; and office, institutional, and commercial furniture manufacturers. Its Industrial Materials segment provides steel rod s, drawn wires, steel billets, fabricated wire products, welded steel tubing, and fabricated tube components to bedding and furniture, and mechanical spring makers; automotive seating, and lawn and garden equipment manufacturers; and waste recyclers, waste removal businesses, and medical supply businesses. The company?s Specialized Products segment offers manual and power lumbar support and massage systems; seat suspension systems; automotive control cables; low voltage motors; actuation assemblies; formed metal and wire components; quilting machines; machines for shaping wire into springs; industrial sewing/finishing machines; van interiors; and docking stations, as well as specialty trailers for telephone, cable, and utility companies. It serves bedding and automobile seating manufacturers. The company sells its products through its sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is based in Carthage, Missouri.

Advisors' Opinion:

• [By Oliver Pursche]

  I think the first step will be an increase in share-buybacks and an increase in dividends. As such, I am once again overweighting large-cap multinationals, including some great European names. My favorites include Novartis (NVS) , Legget and Platt (LEG) and Visa (V) .� Of course, the potential risk is that the cash horde remains and even grows, likely creating a deeper negative interest rate environment ��something that surely would be damaging to our economy.

Top Warren Buffett Stocks To Own For 2014: Unite Group(UTG.L)

The UNITE Group plc engages in the development and management of student residential accommodation in the United Kingdom. It provides accommodation to approximately 40,000 students with 39,739 bed spaces in 129 properties across 24 university towns and cities. The company was founded in 1991 and is based in Bristol, the United Kingdom.

Top Warren Buffett Stocks To Own For 2014: Conceptus Inc.(CPTS)

Conceptus, Inc. designs, develops, and markets minimally invasive devices for reproductive medical applications primarily in the United States, France, and rest of Europe. It primarily provides Essure, a permanent birth control system that delivers an insert into a woman?s fallopian tubes. The company sells its products through direct sales personnel and distributors primarily to physicians and hospitals. Conceptus, Inc. was founded in 1992 and is headquartered in Mountain View, California.

4 Tech Stocks Rising on Unusual Volume

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

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

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

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

AOL

AOL (AOL) is a global Web services company whose business consists of online content, products and services that it offers to consumers, publishers and advertisers. This stock closed up 1.4% to $36.69 in Wednesday's trading session.

Wednesday's Volume: 4.52 million

Three-Month Average Volume: 1.15 million

Volume % Change: 285%

From a technical perspective, AOL jumped modestly higher here back above its 50-day moving average of $36.29 with heavy upside volume. This move is quickly pushing shares of AOL within range of triggering a major breakout trade. That trade will hit if AOL manages to take out some near-term overhead resistance levels at $38.48 to $40 with high volume.

Traders should now look for long-biased trades in AOL as long as it's trending above its 50-day at $36.29 or above more support at $35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.15 million shares. If that breakout hits soon, then AOL will set up to re-fill its previous gap down zone from May that started at $42.12. Any high-volume move above $42.12 will then give AOL a chance to tag $45 to $50.

VimpelCom

VimpelCom (VIP) provides voice, data and other telecommunication services through an array of wireless, fixed and broadband internet services, as well as selling equipment and accessories. This stock closed up 4.4% at $10.32 in Wednesday's trading session.

Wednesday's Volume: 2.62 million

Three-Month Average Volume: 1.03 million

Volume % Change: 230%

Shares of VIP ripped higher on Wednesday after Deutsche Bank upgrade the stock to buy from hold citing valuation following the company's second-quarter results.

From a technical perspective, VIP ripped higher here back above its 50-day moving average of $10.09 with strong upside volume. This stock recently formed a double bottom chart pattern at $9.75 to $9.78. Following that bottom, shares of VIP have started to spike higher and quickly move within range of triggering a near-term breakout trade. That trade will hit if VIP manages to take out some near-term overhead resistance levels at $10.64 to $11 with high volume.

Traders should now look for long-biased trades in VIP as long as it's trending above its 50-day at $10.09 or above more support at $9.78 and then once it sustains a move or close above those breakout levels with volume that this near or above 1.03 million shares. If that breakout triggers soon, then VIP will set up to re-test or possibly take out its next major overhead resistance levels at $11.38 to $11.82.

WebMD Health

WebMD Health (WBMD) provides health information services to consumers, physicians and other health care professionals, employers and health plans through its public and private online portals and health-focused publications. This stock closed up 1.6% at $33.70 in Wednesday's trading session.

Wednesday's Volume: 1.32 million

Three-Month Average Volume: 690,686

Volume % Change: 170%

From a technical perspective, WBMD spiked modestly higher here with strong upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $25.18 to its recent high of $35.28. During that move, shares of WBMD have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WBMD within range of triggering a major breakout trade. That trade will hit if WBMD manages to clear its 52-week high at $35.28 with high volume.

Traders should now look for long-biased trades in WBMD as long as it's trending above $32 or $31 and then once it sustains a move or close above its 52-week high at $35.28 with volume that's near or above 690,686 shares. If that breakout hits soon, then WBMD will set up to enter new 52-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $43.

Geospace Technologies

Geospace Technologies (GEOS) designs and manufactures instruments and equipment used by the oil and gas industry in the acquisition and processing of seismic data as well as in reservoir characterization and monitoring activities. This stock closed up 0.29% at $72.35 in Wednesday's trading session.

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Wednesday's Volume: 620,000

Three-Month Average Volume: 158,544

Volume % Change: 270%

From a technical perspective, GEOS spiked higher here and briefly traded back above its 50-day moving average of $75.28 with strong upside volume. This stock has been downtrending badly for the last five months, with shares plunging from its high at $111.36 to its recent low of $65.31. During that move, shares of GEOS have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of GEOS have started to rebound over the last month from $65.31 to its recent high of $79.91. That rebound could be setting up GEOS to reverse its downtrend and begin a more sustained uptrend.

Traders should now look for long-biased trades in GEOS as long as it's trending above Wednesday's low of $70.40 and then once it breaks out above some near-term overhead resistance levels at $77.83 to $79.91 with volume that's near or above 158,544 shares. If that breakout hits soon, then GEOS will set up to re-test or possibly take out its 200-day moving average of $84.97. Any high-volume move above $84.97 will then give GEOS a chance to tag its next major overhead resistance levels at $90 to $93.

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

-- Written by Roberto Pedone in Delafield, Wis.

Can Microsoft Use Windows 8.1 to Springboard Search?

While much ink has been spilled regarding Microsoft's (NASDAQ: MSFT  ) release of Windows 8.1, the latest version of the operating system is targeting more than fixes to existing problems. Through a new feature called "smart search," users will be given search results from both the Internet and the local machine. This is significant for the company, because it will allow Bing ads to be returned as well, giving the company the ability to target search terms even more precisely.

In the following video, Fool.com contributor Doug Ehrman discusses the ramifications of this new feature for both users and the company, as well as why investors should care.

Search is just one of the areas that more and more players are becoming interested in as a basis of differentiation. It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

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Citigroup Selling Servicing Rights as Banks Shrink Role

The U.S. mortgage market's largest lenders are pulling back amid looming regulations and a drop in refinancing that fueled record profits last year.

Citigroup Inc. (C), the third-biggest U.S. bank, is selling mortgage-servicing rights on $63 billion of loans, or about 21 percent of its total contracts at midyear, according to two people briefed on the matter, who asked not to be identified because the sale is private. Wells Fargo & Co. (WFC), the largest home lender, began marketing rights on $41 billion of government-backed home loans in September.

Banks are scaling back from the almost $10 trillion market for mortgage servicing rights, or MSRs, amid looming Basel III regulations. That's attracting private-equity firms and hedge funds to assets that can increase in value when borrowing costs rise and giving them increased control over the rights to collect Americans' monthly mortgage payments. Lenders such as Bank of America Corp. (BAC) are also cutting home-loan staff after refinancings dropped more than 60 percent since May, according to the Mortgage Bankers Association.

"Three years from now, banks will be making fewer real-estate loans and servicing will be smaller," said Chris Whalen, managing director at Carrington Investment Services LLC in Greenwich, Connecticut. "You will see the whole industry shift."

The Citigroup servicing rights offer would be the New York-based lender's largest potential sale of this type since the 2008 financial crisis, according to Guy Cecala, publisher of Inside Mortgage Finance, a trade journal. More than 80 percent of the loans are performing, according to the people.

Book Value

"It's opportunistic," said David Stephens, the chief financial officer at Denver-based United Capital Markets Inc., who added that he didn't have knowledge of the Citigroup offering. "The market's improved to the point where they can actually sell it at their book value. They won't have a gain or loss."

10 Best Low Price Stocks To Watch Right Now

Shannon Bell, a Citigroup spokeswoman, declined to comment on the potential sale.

Citigroup owned the servicing rights on $301 billion of mortgage balances at the end of June, according to the lender's quarterly securities filing. The bank valued those contracts at $2.52 billion at midyear.

Basel Rules

Servicers collect payments from borrowers and pass them on to mortgage lenders or investors, minus fees. They also handle foreclosures when borrowers don't pay. Banks are seeking to reduce the assets amid impending global financial regulations agreed to by the Basel Committee on Banking Supervision, which forces banks to pledge more capital for servicing rights.

Citigroup's Tier 1 common ratio under Basel III stood at 10.4 percent at the end of September. Risk-weighted assets under the regulations shrunk to $1.16 trillion from $1.19 trillion.

MSRs are trading for between 4 and 5 times the 25 basis-point servicing fee, according to Stephens. If Citigroup gets a similar price it may collect $630 million to $788 million in the sale, he said.

Wells Fargo is seeking to take advantage of demand that's higher than "six months ago or a year ago," and the bank will test the market as a risk-management exercise, CFO Timothy Sloan said this month during a conference call with investors. Tom Goyda, a spokesman for San Francisco-based Wells Fargo, declined to comment on the company's potential sale of MSRs.

$1 Trillion

Servicing rights on at least $1 trillion of mortgages will trade in the next two years, Jay Bray, chief executive officer of Nationstar Mortgage Holdings Inc. (NSM), a servicer majority owned by Fortress Investment Group LLC (FIG), said last month. The private-equity firm said in July it raised a $1.1 billion fund to buy the contracts.

In addition to a widening pool of buyers, rising mortgage rates this year boosted the appeal of MSRs since higher costs discourage homeowners from refinancing. This prolongs the length of the contracts.

A reduction in new mortgages also restricts the creation of more servicing agreements. Origination volume will decline about 8 percent this year to $1.6 trillion from 2012, according to the Mortgage Bankers Association. The group forecasts it will fall to $1.1 trillion next year.

The homeownership rate declined to 65 percent in the first half of this year from a peak of 69.2 percent in June 2004. The level is expected to stabilize at about 63 percent, according to Morgan Stanley (MS) analyst Haendel St. Juste.

Foreclosure Practices

Federal and state investigations of foreclosure practices also led to new regulations that drove up costs. Last year the five largest servicers -- Wells Fargo, JPMorgan Chase & Co. (JPM), Bank of America, Citigroup and Ally Financial Inc. (ALLY) -- agreed to pay $25 billion to settle a government probe of servicing misconduct.

Banks accelerated sales in 2012 with servicer Residential Capital LLC, a unit of Ally, selling a $374 billion portfolio to Ocwen Financial Corp. (OCN) and Walter Investment Management Corp. for $3 billion.

Bank of America sold rights to more than $200 billion this year and OneWest Bank FSB said in June it has agreed to sell $78 billion.

Charlotte, North Carolina-based Bank of America is also reducing staff after third-quarter revenue in the mortgage division fell by almost half to $1.58 billion. The lender is cutting about 1,300 more jobs in its mortgage division, two people with direct knowledge of the plans said yesterday. The latest round of reductions means the bank will dismiss about 3,000 people involved in making home loans in the fourth quarter.

Wells Fargo has cut more than 6,200 positions since midyear, and No. 2-ranked JPMorgan has said it may dismiss 15,000. Both reported third-quarter mortgage revenue declines of more than 40 percent.

"We're reverting to the mean in terms of the volume of housing finance," Whalen said. "Without levels of credit creation that were excessive and reckless this is what the market looks like."

When Will The Pain End For Caterpillar?

Tweet 0 Disqus Email Print Feedback Share Tweet 0 Disqus Email Print Feedback 0 Disqus When Will The Pain End For Caterpillar? October 23, 2013 | Filed Under » Earnings Recap, Equity, Heavy Construction, Industrial Equipment Wholesale Tickers in this Article » CAT, GE, UTX, BA, GS, After reporting weaker-than-expected results earlier this year because of a drop-off in orders for mining equipment, Caterpillar (NYSE:CAT) CEO Doug Oberhelman sounded an optimistic note, telling CNBC, "We don't want to be overly optimistic but it certainly feels better than the last two springs."

Unfortunately, things haven't gotten better for the Peoria, Illinois-based company. The company today reported earnings that were far worse than analysts expected and slashed its outlook for the year. The numbers were so bad that CNBC's Herb Greenberg nominated Oberhelman to win the title of worst CEO of the year. That assessment, though, may be overly harsh.

For one thing, Oberhelman doesn't seem like he's sugarcoating the company's problems. He called 2013 "a painful year" in the company's earnings release, but he added that there are "encouraging signs" for 2014.

"The rest of the business is hanging in there," Oberhelman said to CNBC.

Commodities have gone through cycles of booms and busts for decades. The forces of supply and demand balance each other out, and when that happens Caterpillar stands to benefit. Of course, the tricky part is figuring out when that rebound will occur.

"It (mining) comes back," said Eli Lustgarten, an analyst with Longbow Securities, to CNBC. "It just takes time."

The time, though, is right for investors to add Caterpillar to their portfolio because the shares have gotten too cheap to ignore.

For one thing, the shares are trading at a price-to-earnings multiple of about 14, well under their five-year average high of 39.9. That's cheaper than other industrial companies such as General Electric (NYSE:GE) (18), United Technologies (NYSE:UTX) (19) and Boeing (NYSE:BA) (23). Wall Street has an average 52-week price target on Caterpillar of about $92, about 9.5% above where it currently trades.

Investors, though, should be aware that the road ahead for Caterpillar will not be easy.

According to Caterpillar, sales from its Resource Industries division, which serves the mining sector and is the company's largest, are expected to plunge 40% this year. The company's other businesses, Power Systems and Construction Industries aren't doing great either. Sales in both divisions are expected to fall 5% in 2013, though these businesses should hold their own if the economy doesn't falter.

Mining giants such as Rio Tinto (NYSE:RIO) and BHP Biliton (NYSE:BHP) are slashing their capital expenditures because of weak commodities prices, which many analysts expect to continue. Both Goldman Sachs and Credit Suisse Group expect gold prices to continue their losses into 2014, according to Bloomberg News. The declines in gold are expected to pull down prices for silver. UBS expects the metal to fetch an average of $24 an ounce, down 17.2% from an earlier forecast in 2013 and $25 in 2014 (16.7% lower from a previous estimate). Earlier this month, Chile raised its estimate for the global surplus of copper by 40%. The largest copper producer expects prices in 2014 to fall to $3.15 per pound versus $3.15 in 2013, according to Reuters.

The Bottom Line

Caterpillar is the type of stock that illustrates Warren Buffett's famous quote "be fearful when others are greedy and greedy when others are fearful." There are many examples of stocks that people have left for dead that have roared back. Many pundits argued that Best Buy was stuck in a race for customers with Amazon that i! t couldn't win. Netflix was written off after angering customers with an ill-advised price increased. Both have surged more than 200% this year. Though no one can predict that Caterpillar will equal that performance, the stock should do better than it is today.

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.

Icahn sells about 3 million shares in Netflix

Activist investor Carl Icahn on Tuesday sold about 3 million shares of Netflix Inc. (NFLX) , or more than half his stake, reaping a large profit in the process.

Netflix's share price has more than quintupled since Mr. Icahn originally invested in the company at $58 a share just more than a year ago, Icahn Enterprises LP (IEP) said.

In a tweet Mr. Icahn issued on Twitter, which was verified by an Icahn representative, the investor said he sold a block of Netflix shares.

The tweet came around the time of a Securities and Exchange Commission filing that showed Mr. Icahn had sold about 3 million shares in the online streaming and DVD rental company.

Icahn Enterprises, however, said that it believes the stock "remains significantly undervalued," calling Netflix "one of the great consumer bargains of our time."

Mr. Icahn still owns about 2.7 million shares in Netflix, according to the SEC filing.

Netflix on Monday reported that its third-quarter profit more than quadrupled as it continued to add subscribers across the globe.

Shares of the company were down 1.9% at $316.40 in after-hours trading. The stock has more than tripled this year alone.

Write to Michael Calia at michael.calia@wsj.com

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

Microsoft Stock Has a 29% Margin of Safety

The common premise goes like this: Since much of Microsoft's (NASDAQ: MSFT  ) business benefits from PC sales, which are declining, don't invest in Microsoft.

That view doesn't satisfy me. It doesn't take price into consideration. And even a company amid unfortunate circumstances can be a great stock when the price is right. So let's stop guessing. What is Microsoft really worth?

Microsoft's business
When you break down Microsoft's business, revenue comes from five main divisions: 

Source: SEC filings.

Though its entertainment and devices division combined with its online services account for a substantial sum of the company's revenue, online services currently runs at a loss, and entertainment and devices runs on a slim profit.

Operating profit, therefore, paints a much clearer picture of Microsoft's business:

Source: SEC filings.

Though the above chart is only the company's most recent quarter, the annual picture looks similar -- for fiscal 2012, entertainment and devices had a very small profit and online services had a loss, too.

Estimating growth
Now that we have identified Microsoft's most meaningful business segments (Windows, server and tools, and Microsoft business), we can take a look at their respective growth rates to decide on an estimate for Microsoft's future growth. Since Microsoft provides necessary adjustments for quarterly revenue in its quarterly filings, revenue will be the most useful indicator. 

Division

Percentage of Operating Profit

Q3 Revenue Growth

Windows	35%	0%
Sever and tools	20%	11%
Microsoft business	42%	5%

Source: SEC filings. Revenue growth rates are after adjustments, from the year-ago quarter.

Declining PC sales or not, Microsoft is growing, albeit slowly. Again, these growth rates are fairly close to Microsoft's fiscal 2012 year-over-year revenue growth rates. Analysts expect growth, too, with a consensus estimate for almost 9% growth per annum for the next five years.

But let's be conservative. Maybe the Microsoft bears are partially right. What chance does Microsoft have in a mobile environment with Apple and Google dominating it? In our discounted cash flow valuation I'll bet on a flat 3% growth rate (in line with the historical rate of inflation) for Microsoft's free cash flow, per annum.

Using a 10% discount rate, Microsoft shares have a value of approximately $48.50. In other words, at $34.60 Microsoft stock, trades at a 29% margin of safety.

So it's time to buy Microsoft stock?
Not necessarily. A discounted cash flow valuation should never replace high quality analysis and simple business savvy. But it's a great starting point. And it does a great job of taking emotions out of the game.

That said, if you have a very good understanding of Microsoft's business, and you are certain that it can grow free cash flow at 3% or greater per year, Microsoft stock might be worth considering. A 29% margin of safety is nothing to sneeze at.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Hot Growth Companies To Buy For 2014

In 2009 I called China the “Michael Jackson economy,” meaning that it was kept going by artificial stimulants, but that inevitably their cumulative effects would cause serious, and perhaps fatal problems. They mask the effect of the underlying ailment, and have severe side effects. China responded to the 2008 financial crisis by engaging in massive stimulus, and has inflated credit bubbles whenever growth stuttered in the past several years. Moreover, allocation of credit and investment in the economy is subject to substantial direct and indirect government control. Local governments invest massive amounts in infrastructure and housing projects, and the banking system is tilted to direct credit to large state enterprises that invest primarily in heavy industry-steel manufacture and shipbuilding, for instance.

This “investment” can prop up GDP statistics, but they are recorded at cost, not value. (I recommend this David Henderson piece about the perversity of GDP fetishism, and how GDP can grossly mis-measure well-being.)

Hot Growth Companies To Buy For 2014: MEDIFAST INC(MED)

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

Advisors' Opinion:

• [By Holly LaFon] ast produces, distributes and sells weight and health management products with the brand names Medifast, Take Shape for Life, Hi-Energy Weight Control Centers and Woman�� Wellbeing.

  Its return on assets in the third quarter of 2011 was 19.6%, which has been increasing in the past several years. The average return on assets for the specialty retail industry is 10.48% for the trailing 12 months.

  The company�� total assets amounted to $94 million in 2010, which increased from $62.8 million in 2009. Net income also increased to $19.6 million in 2010 from $12 million in 2009.

  Boston Beer Inc. (SAM)

  Boston Beer Inc. is the largest brewer of handcrafted beers in America. Boston Beer is a growing company that recently saw a large increase in its return on assets. It increased from 19.3% in 2010 to 29.7% in 2011, and was negative as recently as 2008. The average return on assets for the beverages industry in the trailing 12 months is 9.47%.

  In 2011, the company�� total assets increased to $272.5 million from $258.5 million in 2010. Net income increased to $66 million from $50 million.

  Alliances Resources Partners (ARLP)

  Alliance Resources Partners is a coal producer and marketer primarily in the eastern U.S. Its ROA has been increasing since 2008 and increased to 22.5% in 2011 from 21.4% in 2010. The average return on assets for the oil, gas & consumable fuels industry in the trailing 12 months is 24.47%.

  In 2011, its total assets increased to $1.7 billion from $1.1 billion in 2010. Its net income increased to $389 million from $321 million.

  Factset Research Systems Inc. (FDS)

  Factset researches global market trends and develops analytical tools for investors. Of all of GuruFocus��5-star predictable companies, it has the highest return on assets at 27%. ROA has been increasing over the past several years. The average return on assets for the software industry for the trailing 12 m

• [By Jon C. Ogg]

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

Hot Growth Companies To Buy For 2014: CNO Financial Group Inc. (CNO)

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

Advisors' Opinion:

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

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

• [By Jonas Elmerraji]

  Up first is CNO Financial Group (CNO), a mid-cap financial stock that's rocketed close to 60% higher since the calendar flipped over to January. Yup, it's been a great year for the market, but it's been a far better one for investors who own CNO. But that strong performance isn't showing any signs of slowing yet. In fact, CNO looks primed for even more upside in the fourth quarter.

  That's because CNO is currently forming a bullish pattern called an ascending triangle. The ascending triangle pattern is formed by a horizontal resistance level above shares -- in this case at $14.75 -- and uptrending support to the downside. Basically, as CNO bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above that $14.75 resistance level. When that breakout happens, it's time to become a buyer.

  ACCO's price action isn't exactly textbook. After all, the pattern is coming in at the bottom of a downtrend, not after an uptrend. But ultimately, that doesn't change the trading implications of a move through that $7.50 level.

  Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Ascending triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

  That $7.50 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant. The move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

  Don't be early on this trade.

Top 5 Undervalued Companies To Invest In Right Now: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Doug Ehrman]

  As brick-and-mortar retailers continue to look for ways to level the playing field in terms of customers' data�relative to their online brethren like Amazon.com, they're experimenting with an increasing number of technologies. A recent New York Times article detailed how Nordstrom (NYSE: JWN  ) recently ended such a test with Euclid Analytics that used customers' smartphones to track their movements within stores; in-store signs detailing the practice drew negative customer feedback, leading to the end of the experiment.

• [By Andrew Marder]

  Then and now
  We won't dwell on the past, since it's not going to help us predict the future, but it would be silly not to hit the highlights. Starting at the top, Macy's has increased its revenue for four years running, and it hit $27 billion in 2012. Earnings per share have kept up as well, rising from $0.78 in 2009 to $3.29 last year. That's a 321% increase over four years. To put some context around that, Nordstrom (NYSE: JWN  ) has grown earnings per share by 78% over the same period.

Hot Growth Companies To Buy For 2014: Crocs Inc.(CROX)

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

Advisors' Opinion:

• [By Matt Brownell]

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

• [By Chris Hill]

  Visa (NYSE: V  ) and Under Armour (NYSE: UA  ) hit new all-time highs. General Motors (NYSE: GM  ) appears to be turning the corner in Europe. And second-quarter profits for Crocs (NASDAQ: CROX  ) fell a whopping 43%. In this installment of Investor Beat, Motley Fool analysts David Hanson and Jason Moser discuss four stocks making moves on Thursday.

Hot Growth Companies To Buy For 2014: Intuitive Surgical Inc.(ISRG)

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

Advisors' Opinion:

• [By Brian Stoffel]

  After the market closed yesterday, Intuitive Surgical (NASDAQ: ISRG  ) �-- maker of the da Vinci Robotic Surgical System -- announced preliminary results for the second quarter that caused shares to plunge as much as 17% today.

• [By Joseph Hogue]

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

• [By Rich Duprey]

  With $721 million remaining on an existing share repurchase authorization, robotic-surgery specialist Intuitive Surgical (NASDAQ: ISRG  ) said it will add another $779 million to the buyback program, bringing the total to approximately $1.5 billion.

Jefferies Initiates Coverage on Safeway at “Hold” (SWY)

On Monday, Jefferies announced that it has initiated coverage on Safeway Inc. (SWY).

The firm has started coverage on SWY with a “Hold” rating and $32 price target. This price target suggests a 1% upside from Monday’s closing price of $31.49.

Analyst Mark Wiltamuth noted: “In June/July, Safeway valuation was in a confused state with the core grocery business trading at only 4.0x EV/EBITDA after adjusting for the recent Canada sale and removing Blackhawk value/”

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“With the arrival of an activist, valuation has now reached 5.1x. Marking to market, we believe Safeway needs to turn around declining EBITDA to move the stock from here. We’re not convinced the company’s three sales initiatives will do it.”

Safeway shares were mostly flat during pre-market trading Tuesday. The stock is up 74% YTD.

David Einhorn Comments on Green Mountain Coffee Roasters

We added to our short position in Green Mountain Coffee Roasters (GMCR). Although the company again missed the consensus estimate for sales, bullish analysts scrambled to lower forward revenue forecasts while insisting that all is well in mudville. Attention quickly shifted away from the results when new CEO Brian Kelley announced on the Q3 earnings call that GMCR would hold its first ever investor day in September. When asked what prompted the decision, Mr. Kelley said, "I think a number of people on our team have found that an investor day that is crisp, but thorough on the key issues can be very valuable to help people understand our company. And I think it's – that's the core purpose is to help you understand our company better.

"The evening before the invitation-only event on September 10, the New York Times reported that there was a large discrepancy between the number of K-Cups the company says it has sold and the numbers implied using data from the tracking firm IRI. For years there have been questions about misconduct within GMCR's distribution and accounting departments. This new information raised the possibility that this activity is continuing, with GMCR potentially booking hundreds of millions of dollars of non-existent K-Cup sales.

We watched the company's live investor day webcast, waiting to see how Mr. Kelley would fieldany inquiries on the matter. Despite a lengthy Q&A session, the questions never came. We later heard that Mr. Kelley was asked about it during a break and essentially told investors that for the New York Times to be right, then you'd have to believe that he was in on it.

That's a non-denial denial worthy of Nixon Attorney General John Mitchell. Mr. Kelley, a former Coke executive, was hired to replace Larry Blanford in late 2012. Prior to his tenure at Coke, Mr.Kelley spent five years as the CEO of SIRVA, Inc., a relocation services company whose shares_collapsed during his tenure and were delisted or 'relocated' from the NYSE shortly thereafter. ! A subsequent lawsuit that was settled alleged that when Mr. Kelley was told of a reserve shortfall at a subsidiary, he, together with other defendants, refused to take a charge to earnings and instead raised earnings guidance. The suit referred to Mr. Kelley as "a spin doctor due to his ability to twist negative information about SIRVA."

Three years ago, GMCR stopped disclosing the number of K-Cups sold, which is comparable to Ford not disclosing the number of cars and trucks it sells. One analyst (the only one who is publicly bearish on the stock) tried to derive K-Cup sales volume by multiplying the number of brewers GMCR says are in use by the number of K-Cups GMCR states are used per machine. At the investor day, Mr. Kelley derided this derivation: "So, you're applying straight math that we don't do." The analyst pressed and Mr. Kelley suggested that the investor day was neither the time nor the place: "We're not going to get into that here. That is not the intent, and we're not going to go into that, the model, in that kind of detail here." Not here? Then where? Apparently basic sales data is not GMCR's cup of tea and does not meet the criteria for an investor day Q&A that promised to be thorough on the key issues. It is impossible to reconcile GMCR's piecemeal disclosures with its financial statements, and the new CEO repudiates straight math. If the core purpose of the investor day was to help people understand the company better, perhaps the next question should have been, "Are you in on it, Mr.Kelley?" GMCR's investor day also highlighted several other holes in the bull case:

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On the one hand, GMCR reports to have sold 30 million brewers into the at-home market.On the other hand, the company claims that the installed base is only 16 million brewers.According to the company, 26%-32% of all brewers ever sold are not in home use.

Mr.Kelley sai! d many we! re "gifted to someone else." Insinuating that Keurig brewers are gifts that remain unopened is certainly a unique marketing strategy as the holiday season approaches, but it reinforces the small-installed-base narrative which in turn supports the bull story in two ways: (1) it implies that the market is not saturated; and (2) it counters analysis that would otherwise indicate that the attachment rate (estimated daily K-Cup consumption per brewer) is falling. Setting aside the implausibility that so many brewers are purchased and not used (our work suggests that many were never sold in the first place), if millions of machines are sitting in people's closets (who are unlikely to be future customers), the market is far more saturated than the company would like everyone to believe.

In 2011, GMCR management claimed that it couldn't meet K-Cup demand due to inadequate manufacturing capacity. At the investor day, management stated that it is using only 31% of its capacity in 2013 and used only 29% in 2012. We can't reconcile the company's prior claims that it had a capacity shortage in 2011 and then had so much surplus capacity in 2012. Between 2011 and 2013, gross margins expanded from 38% to 42%. How can a manufacturer go from operating at full capacity to only a small fraction of capacity without underutilization negatively impacting margins? Moreover, 31%utilization implies that GMCR has enough capacity to meet its growth plans through the balance of the decade. Given this, it is hard to see why management plans to add even more. Though GMCR has reduced its capital spending this year, it still spends almost twice as much as other packaged goods companies, and indicated that next year capital spending "might tick up a little bit" more than sales.

GMCR intends to offer a new brewer in late 2014. Management said that the new brewer would be able to discern between GMCR-manufactured K-Cups and non-licensed K-Cups,hinting that this would allow the company to close the system and freeze out the n! on-licens! ed competition. Management declined to say whether it would program the new brewers to do so. Closing the system would enable GMCR to reclaim its monopoly priceson K-Cups. However, it is unclear why consumers would want to switch from an opensystem offering more choices and lower prices to a closed system with fewer choices andhigher prices. Last year, GMCR introduced the Vue, which flopped for this reason.Conversely, if the new machine does not close the system, then it won't change thecompetitive dynamic where K-Cups are becoming commoditized and GMCR is losingmarket share. We have heard that GMCR management privately suggested to one largeshareholder that the threat to re-close the system is a bluff to try to convince competitors to become licensed partners.

From David Einhorn's Greenlight Capital third quarter 2013 letter.

Related links:Third quarter 2013 letter

Will BP Stock Find a Strong Bid?

With shares of BP (NYSE:BP) trading around $41, is BP an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

BP is an integrated oil and gas company. The firm provides its customers with fuel for transportation, energy for heat and light, lubricants, and the petrochemicals products used to make items like paints, clothes, and packaging. It operates in two business segments: exploration and production, and refining and marketing. BP provides energy products to consumers and companies worldwide. Without the oil and gas products provided, many consumers and businesses would not be able to operate on a daily basis.

BP had a recent victory in court as the Fifth U.S. Circuit Court of Appeals in New Orleans decided recently that the claims administrator for the government, Patrick Juneau, needs to be more discriminating about claims related to BP's 2010 Deepwater Horizon oil spill, Reuters reports. The court also ruled to stop payments on claims that don't meet the new, stricter standards. After the spill, BP agreed to be responsible for economic losses but has complained that it's been forced to pay claims for people and businesses that were not harmed by the disaster.

T = Technicals on the Stock Chart Are Mixed

BP stock has not made significant progress in recent years. The stock is currently trading near mid-prices for the year so it may need to spend a little more time here. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, BP is trading between its key averages, which signal neutral price action in the near-term.

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(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
BP Options	22.31%	96%	95%

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

	Put IV Skew	Call IV Skew
October Options	Flat	Average
November Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	233.67%	192.30%	-78.97%	8.03%
Revenue Growth (Y-O-Y)	-0.74%	10.06%	7.51%	-4.72%
Earnings Reaction	-3.20%	2.28%	1.35%	2.78%

BP has seen increasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have mostly been pleased with BP’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has BP stock done relative to its peers, Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Royal Dutch Shell (NYSE:RDSA), and sector?

	BP	Chevron	Exxon Mobil	Royal Dutch Shell	Sector
Year-to-Date Return	0.16%	7.93%	-1.18%	-7.25%	1.16%

BP has been an average relative performer, year-to-date.

Conclusion

BP is an oil and gas company that supplies energy products and services worldwide. The company saw a victory at the Fifth U.S. Circuit Court of Appeals in New Orleans recently, which may be a positive catalyst for the company. The stock has not made significant progress in recent years and is now trading near mid-prices for the year. Over the last four quarters, earnings have been rising while revenues have been mixed, which has left investors mostly pleased about recent earnings announcements. Relative to its weak peers and sector, BP has been an average year-to-date performer. WAIT AND SEE what BP does in coming quarters.

Tipping Flight Attendants: A Surprisingly Common and Controversial Practice

Sure, you tip your restaurant server and your hairdresser and cab drivers. You might even offer your postal carrier a holiday bonus. But did you know that flight attendants frequently get tipped, too?

That's the finding of a question asked at Airfarewatchdog.com, where about 27% of roughly 900 respondents said they had, "as a thank you for doing a good job" or "for going out of the way to make me more comfortable." Nearly three quarters, 73%, said they don't tip flight attendants.

The practice is controversial, though.

For one thing, some point out that one typically tips after a service has been performed, in recognition of a job well done. When money is given to a flight attendant, it's often done at the beginning of a flight in the hope of ensuring good service. Thus, some call it a "bribe."

In 2006, an article  in Budget Travel magazine featured "confessions" of a flight attendant, noting that tips or gifts are "greatly appreciated." Some responses to the article came from other attendants, one of whom noted: "I am a flight attendant who has worked for [a] major carrier for 23 years. I have never and will never accept a tip from a passenger no matter how much he 'insists'. The 'free round', that your flight attendant confessed to, is not hers to give." She added, "one person in uniform does not speak for all of us."

In addressing the topic, travel writer  Caroline Costello has noted, "There isn't much of an economic foundation" for tipping flight attendances, as they "aren't dependent upon tip income in order to achieve a livable wage." (Per 2010 data  from the Bureau of Labor Statistics, the median salary is $37,740.)

TravelSort.com points out  that tips can be insulting to the many attendants who consider themselves professionals (after all, their job involves a lot of public safety responsibility, not just serving drinks), and that it isn't even likely to foster good repeat service, as few of us are regularly served by the same staff. Many airlines don't permit their employees to accept tips, anyway.

If you encounter exceptional service in an airplane, consider getting the attendant's name and sending a letter to management. A commendation that sits in an attendant's file for years can be more powerful in the long run than a few dollars pressed into a hand that many not even welcome them.

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Potash Corp. Drops 2% as Buyers Wait Out Plunging Prices

This should have been a good day for the potash companies. China said growth during the first nine months of the year would be above 7.5%, and that’s helped send metal, mining and resource stocks heading higher.

Bloomberg

But on this day of all days, Potash Corp. of Saskatchewan (POT)–try saying that without starting to stutter–lowered its earnings forecast for the third quarter to 41 cents, down from its previous estimate of 45 to 60 cents. Analyst had been forecasting 48 cents, according to FactSet.

Raymond James analysts Steve Hansen and Daniel Chew explain the reason for the lower guidance:

Stemming from the recent BPC fall-out, POT's revised guidance reflects the acute market uncertainty and lingering turmoil battering global potash markets. Specifically, with potash prices moving sharply lower across most export regions, buyers seem intent on deferring purchases with the hope of securing lower prices and improved macro visibility in the future. Consistent with this view, we note that competing potash bellwethers Mosaic (MOS) and Agrium (AGU) both recently lowered their 2013 global shipment forecasts.

Potash has dropped 1.6% to $31.23 at 12:59 p.m., and its dragging down other potash companies with it. Mosaic has fallen 2.3% to $45.21, Intrepid Potash (IPI) has dipped 0.5% to $15.14 and CF Industries (CF) has declined 1.2% to $204.47. Agrium has buckled the weakness by gaining 0.6% to $82.85.

Bonds Are Riskier Than Ever. Here's Why.

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AP, Jacquelyn MartinThe U.S. Treasury Building in Washington. In investing, bonds have always had a reputation for being the safe choice. Compared to the wild oscillations one can get in the stock market, bonds appear stable and downright boring: They make predictable interest payments and eventually return the invested principal to their buyers at maturity. Lately, though, some troubling trends have turned against bond investors. In particular, two recent events have shown just how willing the government entities that issue bonds are to put investors at risk of losing their investments. The Debt Ceiling And You The government shutdown in Washington has affected millions of Americans, with an estimated 800,000 federal workers having been furloughed, and many private businesses and their employees suffering from the collateral damage of shutdowns of government agencies and of federally-owned landmarks like national parks. But of greater importance to investors around the world is the debt ceiling debate. Under current law, the government sets a limit on the total amount of debt that it is allowed to incur. At the current rate of borrowing, the national debt will hit that limit later this month. Until recent years, most investing analysts assumed -- correctly -- that lawmakers would raise the debt ceiling as necessary without much fuss. Now, though, there's a very real possibility that Congress won't take action, which could cause the U.S. to default on some of its debt. Investors have reacted to that possibility. Rates on the shortest-term Treasury bills available have jumped eightfold in just the past week as those who invest in that short-term debt have to factor in the risk that they might not be repaid on time when their Treasury bills mature next month. Moreover, foreign bondholders aren't happy with Congress's shenanigans over the debt situation. Chinese officials noted recently that they wanted the U.S. government to protect the safety of its bond holdings in light of the debt-ceiling deadline. Similarly, Japan, which is the second-largest foreign bondholder of U.S. Treasuries behind China, wants reassurance that a U.S. debt crisis won't jeopardize its strategy of weakening the Japanese yen against the dollar. Regardless, members of Congress haven't seemed deterred by the potential impact of a bond default on investors. Despite tens of millions of Americans having a stake in Treasury debt either directly through their investments or indirectly because of the Treasury holdings that entities like pension funds own, their elected representatives aren't rushing to resolve the debt ceiling issue. Striking a Balance Indeed, governments seem more willing than ever to let bondholders shoulder a share of the burdens created by our still-shaky economy. At the local level, the bankrupt city of Stockton, Calif., issued its plan to exit legal bankruptcy proceeds late last month. The plan included forcing bond investors to accept a substantial reduction in the amount of interest they would receive on their bonds, as the city has said that it can pay less than 20 percent of the $2.9 million in annual bond-financing costs. Bondholders won't be the only ones hurt by that bankruptcy. Stockton also intends to raise sales taxes in the city and has already reduced services and made employee cuts before the bankruptcy was filed. The plan does preserve pension payments to retirees, although retired workers will lose health-insurance subsidies they previously received. Bond investors do have the right to fight the plan in bankruptcy court, arguing that they're being treated unfairly. Increasingly, though, the concept of "fairness" that bankrupt cities and towns espouse includes having bondholders suffer losses. That's contrary to past experience, in which bond investors could expect repayment in full before other stakeholders got any recovery. Bonds: Know the Risks If you thought bonds were risk-free, recent events should have you rethinking that assessment. Before you add bonds to your portfolio, make sure you understand the real and growing possibility that you might not get repaid in full or on time. Even if the debt-ceiling debate gets resolved favorably this time around, the trend toward less protection for bond investors could nevertheless continue in the future.

Top 10 High Tech Stocks To Watch Right Now

Comcast Corporation (CMCSA) ��the largest cable MSO in the U.S. ��is offering its Home Pass automated authentication service to Xfinity TV customers. This innovative and hassle-free account access service has successfully passed Comcast�� trials.

The new Home Pass solution offers immediate access to subscribers of Xfinity.com/TV website from their home itself without any user name and password. This uniqueness of the solution will not only save time but also the trouble of remembering the password.

Last year, during London Olympics, Comcast had put the new Home Pass service on trial and has received a warm response.

Comcast has also launched Facebook Connect, which connects customers to the Comcast.net account through their Facebook accounts. Moreover, the company also offers a secondary email authentication solution which allows the user to stay connected for 30 days at a stretch.

Comcast is continuously launching new products and services in order to retain its subscribers as well as to safeguard its position against popular pay-TV operators like Time Warner Cable (TWC), Cablevision Systems Corp. (CVC) and DirecTV (DTV).

Top 10 High Tech Stocks To Watch Right Now: Pampa Energia S.A.(PAM)

Pampa Energia S.A., through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina. It has an installed hydro electricity generation capacity of approximately 2,217 megawatts. The company also joint-controls the operation and maintenance of the high-tension transmission network covering 10,613 kilometers (km) of own lines, as well as 6,110 km of high-tension lines belonging to Empresa de Transporte de Energ� El�tricapor Distribuci� Troncal de la Provincia de Buenos Aires Sociedad An�ima Transba S.A. It distributes electricity to approximately 3.5 million residential, commercial, and industrial customers. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energia S.A. in September 2008. Pampa Energia S.A. was incorporated in 1945 and is headquartered in Buenos Aires, Argentina.

Top 10 High Tech Stocks To Watch Right Now: Cedar Shopping Centers Inc (CDR)

Cedar Shopping Centers, Inc., real estate investment trust, engages in the ownership, operation, development and redevelopment of supermarket-anchored community shopping centers and drug store-anchored convenience centers in the United States. As of December 31, 2007, it owned 118 properties, aggregating approximately 12.0 million square feet of gross leasable area primarily in Pennsylvania, Massachusetts, Virginia, Ohio, Connecticut, New Jersey, Maryland, Michigan, and New York. Cedar Shopping has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 1984 and is based in Port Washington, New York.

Advisors' Opinion:

• [By Bill Smith]

  Valuation
  Lastly, because of the negative perception the entire industry has received, prices in this sector have been absolutely pummeled. ESI now trades at the lower end of all of its historical valuation bands: P/E, P/B, and P/S.
  
  Bullish Points
  Guru ownership and avg price: ESI owned by Hussman ($76.15), Weitz ($75.32), and Greenblatt ($73.29)Over 35% of shares are short, potential short squeezeStock buyback plan: ESI reduced outstanding shares by 19% yoy at the end of the 4th quarter. They repurchased 370K shares in 3Q11.The business model is scalable; the incremental cost to educate each additional student is low, leading to high marginsESI acquired Daniel Webster College, giving them a regional accreditation which they can use to broaden their reach in online classes
  Bearish Points
  High costs of education, in general, rightly or wrongly attract government intervention and could squeeze margins over time. Total student debt surpassed credit card balances, and sits at $1 Trillion as of the end of 2011.Subject to compliance with Dept of Education's 90/10 rules, which states a college can't collect more than 90% of revenue from students participating in federal loan programs.Cohort Default Rate (CDR): for-profit colleges must monitor the federal loan default rates of students who graduate or leave the school. If a school's CDR exceeds 25% for 3 consecutive years, or 40% in any one year, its students won't be eligible for federal financial aid.ESI competes on quality of product which is measured by graduation rates and ability to secure employment. For 2010, 70% of ESI graduates got employment in positions using skills taught in their program of study within 1 year. As of Oct 2011, this rate was 600 bp higher. The average annual salary reported by employed 2011 grads was $32K, compared to $32.4K for 2010 grads.With an improving economy, there's a potential ESI would see declining new student enrollmentsOver 35% of shares are short
  Summary

Top Safest Companies To Invest In Right Now: Safeguard Scientifics Inc.(SFE)

Safeguard Scientifics, Inc. is a private equity and venture capital firm specializing in expansion financings, growth capital, management buyouts, recapitalizations, industry consolidations, corporate spinouts, growth stage, and early stage financings. The firm prefers to make investments in companies engaged in the technology and life sciences sectors. Within the technology sector, it invests in software as a service, technology enabled services, internet/new media, financial services information technology, healthcare information technology and selected business services with capital requirements of up to $25 million. Within the life sciences sector, the firm invests in molecular and point-of-care diagnostics, medical devices, regenerative medicine, and specialty pharmaceuticals, and selected healthcare services. It invests throughout United States and Southeastern Canada. The firm primarily invests between $10 million and $25 million in growth equity financing and betwe en $5 million and $10 million in early-stage financing. It typically invests in the capital structures including owner financed and bootstrapped companies, corporate division or business unit, and venture capital-backed seeking a growth partner. The firm prefers to be the largest shareholder in its portfolio companies, with ownership in the range of five percent to 50 percent. However, it may occasionally take a majority or smaller stake in its portfolio companies. It prefers to invest in companies having proprietary technology and intellectual property. The firm prefers to take a Board seat in its portfolio companies. It was formerly known as Lancaster Corporation. Safeguard Scientifics, Inc. was founded in 1953 and is based in Wayne, Pennsylvania with an additional office in Weston, Massachusetts.

Top 10 High Tech Stocks To Watch Right Now: Westfield Financial Inc.(WFD)

Westfield Financial, Inc. operates as a bank holding company for the Westfield Bank that provides various community banking products and services to businesses and individuals in Massachusetts. The company offers various deposit products, including regular savings deposits comprising passbook and statement savings accounts; NOW accounts; noninterest-bearing demand accounts; money market accounts; certificates of deposit; and time deposits. Its loan portfolio primarily consists of commercial and industrial loans, such as business installment loans, vehicle and equipment financing, lines of credit, and other commercial loans; commercial real estate loans to finance the purchase of real property, and construction loans to developers of commercial and residential properties; residential real estate loans; home equity loans; and consumer loans that consist of automobile loans, secured passbook loans, credit lines tied to deposit accounts to provide overdraft protection, and uns ecured personal loans. The company also offers commercial products and services, which include commercial deposit accounts, cash management services, Internet banking, sweep accounts, ATM network, remote deposit, and night deposit services. It operates 11 banking offices in Agawam, East Longmeadow, Holyoke, Southwick, Springfield, West Springfield, and Westfield, Massachusetts; and 12 free-standing ATM locations in Feeding Hills, Holyoke, Springfield, West Springfield, and Westfield, Massachusetts. The company was founded in 1853 and is based in Westfield, Massachusetts.

Advisors' Opinion:

• [By Dividends4Life]

  Memberships and Peers: PBCT is a member of the S&P 500 and a member of the Broad Dividend Achievers��Index. The company's peer group includes: Bank of America Corporation (BAC) with a 0.3% yield, Brookline Bancorp, Inc. (BRKL) with a 3.7% yield and Westfield Financial Inc. (WFD) with a 3.5% yield.

Top 10 High Tech Stocks To Watch Right Now: Intek Spa(TEKI.MI)

Intek SpA engages in acquiring and managing companies. It invests in a portfolio of investments in companies that focuses on industrial, financial, and services areas. The company is headquartered in Ivrea, Italy.

Top 10 High Tech Stocks To Watch Right Now: MECOM GROUP ORD GBP0.00608588(MEC.L)

Mecom Group plc engages in content and consumer business activities in Europe. It publishes regional daily newspapers, free door-to-door newspapers, and magazines. The company operates approximately 70 newspaper Websites and standalone niche Websites, 165 hyper-local Websites, and 4 print plants for printing publications, as well as owns 9 paid-for dailies and approximately 200 free-sheet titles in the Netherlands. It also has a portfolio of 2 national daily paid-for titles; 1 national daily free-sheet; a weekly national paid-for newspaper; 1 national business magazine; 7 local daily news and 47 local weekly newspapers under the name of Berlingske Lokale Medier; and 1 partly owned regional newspaper operating under the name of JydskeVestkysten, as well as operates 38 Websites, 39 hyper-local Websites, 9 mobile sites, 11 online TV channels, 5 print plants, and 1 national and 3 local radio stations in Denmark. In addition, the company has 30 newspapers, such as dailies, week lies, and free-sheets; 46 Websites; and 3 print plants in Norway; and operates Rzeczpospolita, a national daily newspaper; business daily Parkiet; and 10 regional newspapers in Poland, as well as owns 17 titles; and operates 30 Websites, 37 hyper-local Websites, and 7 small print plants. Mecom Group plc is headquartered in London, the United Kingdom.

Top 10 High Tech Stocks To Watch Right Now: NSTAR(NST)

NSTAR, through its subsidiaries, engages in sale, distribution, and transmission of electricity and natural gas to commercial, industrial, and residential customers in Massachusetts. The company distributes and transmits electricity at retail to an area of approximately 1,702 square miles covering Boston and 80 surrounding cities and towns, including Cambridge, New Bedford, and Plymouth, as well as the geographic area comprising Cape Cod and Martha?s Vineyard. It also distributes natural gas to communities in central and eastern Massachusetts, including the Hyde Park area of Boston, Cambridge, Dedham, Framingham, New Bedford, Plymouth, Somerville, and Worcester covering an area of approximately 1,067 square miles. In addition, the company installs, owns, operates, and maintains a wholesale transport network for other telecommunications service providers in the metropolitan Boston area to deliver voice, video, data, and Internet services. As of December 31, 2010, its prima ry and secondary electrical distribution and transmission system consisted of 22,735 circuit miles of overhead lines; 13,286 circuit miles of underground lines; 257 substation facilities; and approximately 1,178,000 active customer meters, as well as its natural gas system included approximately 3,140 miles of gas distribution lines; 190,850 services; and 279,300 customer meters. The company serves approximately 1.4 million customers in Massachusetts, including approximately 1.1 million electric distribution customers in 81 communities and approximately 300,000 natural gas distribution customers in 51 communities. NSTAR was founded in 1886 and is based in Boston, Massachusetts.

Top 10 High Tech Stocks To Watch Right Now: Mungana Goldmines Limited(MUX.AX)

Mungana Goldmines Limited operates as a mineral exploration company in Australia. The company primarily explores for gold. It principally holds interests in Mungana and Red Dome gold deposits located in the Chillagoe region of North Queensland. Mungana Goldmines Limited was founded in 2009 and is based in Brisbane, Australia.

Top 10 High Tech Stocks To Watch Right Now: America's Car-Mart Inc.(CRMT)

America?s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. It primarily sells older model used vehicles and provides financing for its customers. As of February 3, 2012, the company operated 112 automotive dealerships in 9 states. The company was founded in 1981 and is based in Bentonville, Arkansas.

Advisors' Opinion:

• [By tonyg34]

  In a recent interview right here on GuruFocus, Tom Gayner of Markel (MKL) had a few things to say about CarMax (KMX). This prompted me to give the company a closer look. What follows is a business analysis. We will save considerations of stock analysis, such as price, for a later discussion.
  
  I think that is a business that will continue to grow. I don't see any reason why you can't have a Carmax in a lot of towns way beyond what they're talking about right now. I think being the number one dealer, and having the number one market share in used car arena gives you great information on what transaction prices are. Then you work on the process to be as quick and as cost efficient in fixing the car and getting it sold, and have the confidence from customers when you offer warranties on the products. Those factors create a virtuous cycle. The more you do, the more you can do, the better the pricing is, the more the customers like you, the more your brand matters. The company will be around for a good long time. The management has done a very good job of creating the system and executing it.
  CarMax was formed as a unit of Circuit City in 1993 and was spun off in 2002. Used-car sales account for about 80% of revenue. Competitors include, but certainly are not limited to, AutoNation (AN) and America's Car-Mart (CRMT) as well as private party sellers.

Top 10 High Tech Stocks To Watch Right Now: Vanoil Energy Ltd. (VEL.V)

Vanoil Energy Ltd., an oil and gas company, engages in the identification, acquisition, exploration, and evaluation of oil and gas properties in Kenya and Rwanda. The company owns 100% interests in the 3A and 3B blocks that cover approximately 24,912 square kilometers in Kenya. It also owns oil and gas concessions covering approximately 1,631 square kilometers in the northwestern part of the Rwanda. Vanoil Energy Ltd. was founded in 2009 and is headquartered in Vancouver, Canada.

Nike Inc (NKE): What To Watch At Oct. 9 Analyst Day

Nike, Inc. (NYSE:NKE) is expected to hold its analyst day on Oct.9. The event, which comes after the recent first quarter earnings beat of 8 cents, should be an additional catalyst for the shares.

Oregon-based Nike is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.

Nike is expected to reiterate its long-term targets for high single digit revenue and mid-teens EPS growth at the analyst day.

Meanwhile, the market expects to hear Nike's plans about how the US division can maintain its recent strength. At Nike's 2011 analyst day, it guided for developed markets (including the North America market) to grow revenues at mid single digits over the long term. Since that time, Nike has grown its North America revenues by more than 20 percent, partly boosted by the acquisition of the NFL apparel license.

A key question from investors is whether the company can continue to drive double digit growth after two years of rapid growth and already high market share.

"Ongoing share gains, increasing shelf space at key retailers, pricing power and solid innovation should support continued double digit revenue growth in the US, in our view," UBS analyst Michael Binetti wrote in a note to clients.

Nike continues to gain share in the US athletic footwear market. It is currently gaining 200-300bp of market share on top of 500-600bp of share gains a year ago. In addition, the ongoing shift of US retail capacity towards athletic footwear/apparel bodes well for Nike.

In recent months, several investors have asked whether the company has altered its US distribution strategy—perhaps implying an incremental push in downstream distribution (e.g. promotional retail channels like department stores or national shoe chains) to prop up growth rates.

"Our analysis of NPD US footwear data suggests that the percentage of Nike's incremental revenues from the premium! athletic/sporting goods retail chain has been consistently increasing—from 67% in 2011 to 78% in 2013 YTD," Binetti said.

While the unit volume growth opportunity at department stores and national shoe chains is certainly part of Nike's US distribution strategy, the company does a excellent job of leading with pinnacle innovation in the premium athletic retail channel to reinforce long-term consumer loyalty for the brand—and adds additional growth through the promotional channel secondarily.

At its analyst day, Nike should also showcase its upcoming product pipeline—potentially including further iterations of low cost manufacturing techniques like those developed for FlyKnit.

Meanwhile, Nike's commentary on the Status of the China recovery is key. At Nike's 2011 analyst day, the company forecasted China revenues to double to $3.4 billion by fiscal 2015 from its fiscal 2010 base of $1.7 billion.

However, China revenues (ex-forex) have been negative in each of the last four quarters, and Nike does not expect China to sustainably return to positive growth until FY15.

"Our current forecasts only assume $2.8B in China revenues by FY15 (compared to the $3.4B implied target from the 2011 analyst day)," Binetti noted.

That said, Nike has made progress in China by clearing inventories and investing in more productive assets to differentiate its retail locations from a crowded athletic space in China.

There are signs that revenues are poised to return to sustained positive growth—and with regional margins that are 465bp below prior peak—should translate to an accelerating EPS contribution from Nike's China business in coming quarters.

While Nike will likely have to push out its target for $3 billion plus in Chinese revenues, the market expects positive comments about the pace of the transformation of the market in China at the analyst day.

Top 10 Heal Care Stock! s To Buy ! For 2014

"We believe cancellation rates and returns from retailers (which have been significant drags to China region margins) stabilized significantly in the quarter. With retail sell-ins and sell-throughs seemingly becoming more balanced lately, we look forward to Nike's updated comments on when the China market can return to sustained positive revenue growth," Binetti said.

As of the end of the first quarter, Nike had $5.5 billion in cash and cash equivalents on its balance sheet accounting for about 9 percent of its current market cap. Investors may be interested in hearing details around the company's plan for its huge cash balance next week.

The company has an $8 billion share repurchase authorization. While the company has a history of preferring to deploy capital to drive top line growth, the Street will be curious to hear the company's updated thinking on share repurchases and the dividend.