7 Suggestions for Retirees Running Low on Money

Alamy You know you should save for retirement. How much, when and what strategies to use are exhaustively dispensed by financial planners, accountants, economists and personal finance columnists. But what if you're a retiree who's sure you're going to be around for a long time -– but your money isn't? It's a universal fear. In a 2010 Allianz Life Insurance poll of 3,257 people ages 44 to 75, 61 percent said they fear running out of money during retirement – more than they fear death. As you've probably guessed, you don't have a lot of great options. Gene Diederich, CEO at Moneta Group, a wealth management firm in St. Louis, lays out the path for most people: "There is often not much they can do but be frugal with their spending, take a part-time job, consider a reverse mortgage and get with a financial planner to maximize the return on their remaining nest egg." Still, those ideas – and the ones below – may help remove some of the tarnish on your golden years. Downsize Your Home and Transportation If you've been living larger, start living smaller. The most obvious strategy is to sell your house, especially if the home is paid off and you'll receive substantial income from it. "I know it's hard to let go of the family home, or the home you have felt comfortable in for many years. However, the upside to getting rid of this big expense is the reduced stress and financial relief you will gain in knowing you have more cash now available," says Leslie Tayne, a financial attorney and debt specialist who runs Tayne Law Group in New York City. Or sell one car, if you and a spouse have two. Save on Medications With Patient Assistance Programs "The average retired person over the age of 80 takes approximately 11 medications a day," says Sandra Nohavicka, a licensed clinical social worker at the Visiting Nurse Service of New York, the largest nonprofit home health care agency in the U.S. She says anyone with high co-payments or those who have hit the "doughnut hole" –- in Medicare Part D, the point where medication is full price –- should check out needymeds.com, which offers information about patient assistance programs. "Some of my patients get one or all of their high cost medications for free," she says. Turn Back the Clock on Social Security If you're younger than 70 and started collecting Social Security within the last 12 months, "you can repay everything back to Social Security, and it'll be like you never claimed it," says Kenn Tacchino, a professor of financial planning at Widener University in Chester, Pa. "And then you delay claiming it until you're 70." It makes a lot of sense to wait, assuming you're in good health and will be around a while to enjoy that regular stream of income. Here's why: If you claim Social Security at age 62, you'll receive 75 percent of your retirement benefits. Hold off until age 66, and you get 100 percent. But if you wait until age 70, you'll receive 132 percent of your benefits. Every year you wait up until age 70, you'll receive 8 percent more. Earn Supplementary Income by Being a Landlord Sure, you could try going back to work full time or get a part-time job, but what about renting out a room or sharing your place? It wouldn't necessarily have to be with a stranger –- a friend or family member might know someone. Cut Financial Help to Adult Children It likely won't be a big money saver, but this is a good time to talk with adult children who are draining your resources, Tayne advises. "It's time to be frank with the kids," she says. "You have limited funds and while you love and care for them, you can only do so much for them while ensuring you still have enough to support yourself." Consider a Reverse Mortgage You've probably seen or heard the commercials. Reverse mortgages allow homeowners to leverage the equity in their house to get a stream of revenue flowing back in, right now. "They always get a bad rap because of the fees," Tacchino says. But he says reverse mortgages can still can be a good option for some retired people who want to maintain their lifestyle and remain in their home. You'd likely want to get a government-issued home equity conversion reverse mortgage, he says. There are essentially three ways you get income from your house, he says: "You can get a line of credit, receive your money in monthly payments or in the form of a lump sum." On the plus side, he says, it might be the perfect solution for an individual or couple who want to live in their house as long as they can and don't mind that there won't be a home to pass onto the children. Which isn't to say you should do this. "You're still having to maintain the house, pay taxes and utilities as well as other maintenance," Tayne says. "All of this is likely to make less sense further into retirement years." But it depends on the person. You may be in your 90s and find shoveling snow or mowing the lawn good, healthy exercise. You may think it's better to pay someone else to do it. Or you may be nodding your head in agreement with Tayne. If you like the idea of a reverse mortgage,you would be smart to consult a financial planner, which leads to the next bit of advice. Consult a Financial Planner -- or Another Professional If you have ample assets but are afraid of what's to come, Tacchino says, "I would always suggest looking for a planner. Retirement can get complicated, and the right planner can help you manage your money so it lasts longer." If you're truly broke, start getting into the habit of asking for advice from every service or organization you can think of. For instance, Nohavicka suggests that any retiree who has served in the armed forces ask about benefits from their local Veterans Administration office.

Express Scripts Holding Company (ESRX): Should You Own ESRX in 2014?

Express Scripts Holding Company (NASDAQ:ESRX) could deliver relative outperformance in 2014 as the upcoming generic wave should offer a two-fold opportunity for pharmacy benefit managers (PBMs).

Headquartered in St. Louis, Express Scripts provides integrated pharmacy benefit management services, including network-pharmacy claims processing, home delivery, specialty benefit management, benefit-design consultation. The company also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services. It manages more than a billion prescriptions each year for tens of millions of patients.

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Express Scripts could capitalize on the robust generic drug pipeline, and an under-levered balance sheet to generate solid future earnings growth. Express Scripts is poised to benefit from the generic drug pipeline in 2014, and thereafter as generics become multisource as well as favorable pricing amidst the pharmacy benefit management selling-season.

UBS analyst Steven Valiquette noted that the company's under-levered balance sheet enables the potential for significant share buybacks while remaining acquisition synergies could drive incremental earnings growth.

Like all segments of the drug distribution supply chain, PBMs have benefited from the increased number of generics launched in 2012 while higher overall generic utilization rates sustained profitability for the group in 2013.

[Related -How To Profit From The Shutdown Aftermath]

PBM stocks may benefit most in 2014 from the upcoming 2015 generic wave. Valiquette currently projects that about $29 billion of branded drugs will 'go generic' in 2014, which represents a nice acceleration from the $14.7 billion in branded drugs that are estimated to have gone generic in 2013.

Looking ahead to the next generic launch cycle beginning in 2014, PBMs will see enhanced profitability as initial limited-source generic launches roll off exclusivity in the latter half of 2014, and the greater amount of multi-source generic drug launches benefit the group in 2015.

PBMs also stand to benefit from an aging population and subsequent growth in Medicare Part D enrollment, greater use of generic drugs and increased drug utilization/compliance as a means to control overall healthcare costs, and implementation of healthcare reform (Affordable Care Act).

Most importantly, the composition of the 2014 generics launches includes a large amount of 'exclusivity' generics, which should bode well for the drug distributors' profitability in particular.

Valiquette believes much of the upside was already captured in the drug distributors' share price appreciation during 2013 as investors tend to bake this into valuations in the calendar year before the actual occurrence.

Drug distributors' shares also saw an added lift due in part to the global generic procurement deals struck among the industry players during 2012/13, including the Walgreen / Alliance Boots / AmerisourceBergen joint venture; and the Cardinal Health / CVS collaboration.

While the 2014 generic launch cycle is expected to be more favorable for drug distributors, 2015 generic launch activity is anticipated to favor PBMs. Relative to 2014 launches, the magnitude of multi-source generic launches will increase year-over-year.

Valiquette sees the combination of a greater proportion of 2015 'multi-source' generic launches (about $14 billion) and the 2014 'exclusive' generic launches (about $21 billion) converting to multi-source as enhancing PBM profitability in 2015, and believe this will get priced into PBM stocks in calendar 2014. He anticipates prescription drug volume will grow in the 2 to 4 percent range over the next several years.

The multi-source generic launch opportunity for PBMs in 2015 will also be strengthened by the conversion of exclusive generic launches to 2014 to multi-status in 2015, thereby adding to the generic tail wind for the PBM group.

Express Scripts is yet to provide initial 2014 EPS guidance, which has held the stock back in recent months. The recent positive guidance given by CVS at the company's Analyst Day and other industry participants (UNH) suggest that there should be minimal concerns for PBM industry profitability in 2014 related to macro factors (health reform, private exchanges, etc.).

Furthermore, the mail-order Rx channel looks poised to show its greatest increase in generic launch activity ever in 2014 with about $7.3 billion in generic launch volume (equivalent branded sales) up from just $2.2 billion in mail channel generic launches in 2013 and $5.1 billion in 2012. Following the acquisition of Medco, Express Scripts is now the largest PBM by claim volume, with the largest prescription mail order operation.

Valiquette believes that the generic launch activity within the mail channel should remain above recent industry levels over the next several years

ESRX, which has a market cap in excess of $58 billion, also scores on the valuation front. It is currently one of the least expensive stocks in the sector, trading 14.7 times its forward earnings. Rival, Catamaran Corporation (NASDAQ:CTRX) trades 20.4 times and CVS Caremark (NYSE:CVS) trade 15.4 times.

Collectively, with the generic trends combined with its relatively low valuation, ESRX is in the best position to outperform the group in 2014. The stock has gained 33 percent in the last year and traded between $53.05 and $73.44 during the past 52-weeks.

Why Big Ass Fans pays 30% above national average

Carey Smith, left, and a production associate at Big Ass Fan's manufacturing plant in Lexington, Ky.

NEW YORK (CNNMoney) Carey Smith grew up familiar with a hard day's work. He started selling Christmas cards door to door at age nine and moved on to setting newspaper type, cleaning hospital bedpans and washing shirts.

"I come from a blue-collar family," Smith said. "My mother used to work for a company that gave employees a ham at the holidays as a bonus. It really bothered her to work so hard all year and get a $5 ham as a 'thank you'."

Employees of Big Ass Fans don't have to worry about that. Based in Lexington, Ky., the company sells fans for homes, factories and businesses in 80 countries. In 2012, Smith's 481 workers were paid about 30% more than the U.S. median of $45,790 -- and 50% more than Kentucky's median of $38,940.

And in 2013, Big Ass Fans rewarded all factory employees with a $1-per-hour raise.

There has been a lot of controversy lately over whether to raise the minimum wage. But Smith insisted his practices are "just good business."

Smith's policy of paying employees well goes back to a remark he heard in his 20s when he worked for an insurance company. A senior executive said the insurer could afford to pay people much more than they did -- but since employees were willing to accept low wages, why bother?

The comment, and the attitude behind it, rankled Smith so much that he began thinking of starting an enterprise "where employees could share in the company's financial success," Smith said.

And Big Ass Fans does just that. Smith pays out about 30% of the company's annual profits as bonuses (nary a ham in sight). While they dipped a bit during the recession, Smith takes pride in the fact that no employees were laid off.

Not only is the no-layoffs policy good for company morale, Smith says it also saves Big Ass Fans thousands of dollars in recruiting and training new employees.

Workers have returned the favor by sticking around, and not just for high pay. To head off boredom and burnout, Big Ass Fans encourages people to move from one job to another.

Matt Nader, for instance, joined Big Ass Fans as a salesman when it launched it in 1999. Although he was successful, he tired of it after a few years. So Smith put him in charge of supply-chain management, where he's thriving. That kind of flexibility helps Big Ass Fans maintain a retention rate of about 90%, far outpacing the 63% national average. It's also helped them dramatica! lly increase productivity over the last four years.

And revenues? They've gone up even more. From 2009 to 2012, sales jumped from $34 million to $87 million. In 2013, that figure shot up to about $122 million.

"We couldn't have increased revenues almost sixfold in five years if we weren't rewarding people well and keeping them around," Smith said.

Is General Mills a Good Portfolio Play?

With shares of General Mills (NYSE:GIS) trading around $49, is GIS an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

General Mills supplies branded and unbranded food products to the food service and commercial baking industries. The companys products include ready-to-eat cereals, refrigerated yogurt, ready-to-serve soups, dry dinners, shelf stable and frozen vegetables, ice creams and frozen desserts, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grains, fruit and savory snacks, and various organic products, including granola bars, cereals, and soups. General Mills, Inc. sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, commercial and noncommercial food service distributors and operators, restaurants, and convenience stores, as well as to drug, dollar, and discount chains.

General Mills said it will no longer use genetically modified organisms to make its signature breakfast cereal, Cheerios, because of consumer demands. The company made the announcement in a blog post Thursday saying it would no longer source genetically modified corn and sugar to make the breakfast cereal rings. It said whole grain oats, the chief ingredient, was never available in genetically modified varietals. "Why change anything at all? It's simple. We did it because we think consumers may embrace it," Tom Forsythe, vice president of global communications for General Mills, said in the blog post.

T = Technicals on the Stock Chart Are Mixed

General Mills stock has been surging higher in the past couple of years. However, the stock is currently pulling back and may need time to stabilize before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, General Mills is trading below its rising key averages, which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
General Mills options	16.66%	20%	18%

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

	Put IV Skew	Call IV Skew
February Options	Steep	Average
March Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bearish 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 General Mills’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for General Mills look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	2.44%	-14.63%	12.24%	3.45%
Revenue Growth (Y-O-Y)	-0.12%	7.95%	8.48%	7.55%
Earnings Reaction	0.30%	0.74%	-0.47%	2.56%

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

P = Weak Relative Performance Versus Peers and Sector

How has General Mills stock done relative to its peers, Post Holdings (NYSE:POST), Kellogg (NYSE:K), PepsiCo. (NYSE:PEP), and sector?

	General Mills	Post Holdings	Kellogg	PepsiCo.	Sector
Year-to-Date Return	-1.68%	0.16%	-0.90%	-0.70%	-1.78%

General Mills has been a poor relative performer, year-to-date.

Conclusion

General Mills produces and markets branded consumer foods in the United States and internationally. The company said it will no longer use genetically modified organisms to make its signature breakfast cereal, Cheerios, because of consumer demands. The stock has been surging higher over the past couple of years, but is currently pulling back. Over the past four quarters, earnings have been mixed while revenue figures have been increasing, which has produced conflicting feelings among investors. Relative to its peers and sector, General Mills has been a poor relative performer year-to-date. WAIT AND SEE what General Mills does this quarter.

4 Stocks Under $10 Making Big Moves

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

>>5 Stocks Ready to Explode Higher

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

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

>>5 Oversold Stocks Ready to Rebound

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

Adamis Pharmaceuticals

Adamis Pharmaceuticals (ADMP), a biopharmaceutical company, engages in the development and commercialization of specialty pharmaceutical products in the therapeutic areas of oncology, immunology and infectious diseases, and allergy and respiratory. This stock closed up 0.94% to $6.45 in Thursday's trading session.

Thursday's Range: $6.17-$6.45

52-Week Range: $3.40-$17.00

Thursday's Volume: 128,000

Three-Month Average Volume: 71,305

From a technical perspective, ADMP trended modestly higher here right above some previous support levels at $6.15 to $6.20 with above-average volume. This stock has been trending sideways and consolidating for the last month and change, with shares moving between $6.15 on the downside and $7.25 on the upside. Shares of ADMP are now starting to trend within range of triggering a big breakout trade. That trade will hit if ADMP manages to take out its 50-day moving average of $6.89 to some more near-term overhead resistance levels at $7.10 to $7.25 with high volume.

Traders should now look for long-biased trades in ADMP as long as it's trending above those key near-term support levels at $6.20 to $6.15 and then once it sustains a move or close above those breakout levels with volume that hits near or above 71,305 shares. If that breakout hits soon, then ADMP will set up to re-fill some of its previous gap-down-day zone from December that started near $9.

Response Genetics

Response Genetics (RGDX), a life science company, engages in the research, development, marketing, and sale of pharmacogenomic tests for use in the treatment of cancer primarily in the U.S., Asia, and Europe. This stock closed up 1.4% to $1.44 in Thursday's trading session.

Thursday's Range: $1.37-$1.50

52-Week Range: $1.09-$2.93

Thursday's Volume: 461,000

Three-Month Average Volume: 330,847

From a technical perspective, RGDX bounced modestly higher here right off its 50-day moving average of $1.34 with strong upside volume. This move is starting to push shares of RGDX within range of triggering a major breakout trade. That trade will hit if RGDX manages to take out Thursday's high of $1.50 and then once it clears more key overhead resistance levels at $1.66 to its 200-day moving average at $1.68 with high volume.

Traders should now look for long-biased trades in RGDX as long as it's trending above its 50-day at $1.34 or above $1.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 330,847 shares. If that breakout hits soon, then RGDX will set up to re-test or possibly take out its next major overhead resistance levels at $2 to $2.20, or even $2.30 to $2.45.

SGOC Group

SGOCO Group (SGOC) engages in designing and developing LCD/LED monitors, TVs, and other application-specific products for sale primarily to the flat-panel display market in China. This stock closed up 6.7% to $3.48 in Thursday's trading session.

Thursday's Range: $3.24-$3.60

52-Week Range: $0.70-$8.33

Thursday's Volume: 410,000

Three-Month Average Volume: 372,995

From a technical perspective, SGOC ripped higher here back above its 50-day moving average of $3.40 with above-average volume. This stock recently formed a double bottom chart pattern at $2.95 to $2.98. Following that bottom, shares of SGOC have now started to spike sharply higher and move within range of triggering a big breakout trade. That trade will hit if SGOC manages to take out some near-term overhead resistance levels at $3.61 to $3.87 and then $4.20 with high volume.

Traders should now look for long-biased trades in SGOC as long as it's trending above Thursday's low of $3.24 or above $3 and then once it sustains a move or close above those breakout levels with volume that hits near or above 372,995 shares. If that breakout hits soon, then SGOC will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to $5.50.

Delcath Systems

Delcath Systems (DCTH) operates as a specialty pharmaceutical and medical device company focusing on the field of oncology. This stock closed up 4.8% to 32 cents per share in Thursday's trading session.

Thursday's Range: $0.30-$0.33

52-Week Range: $0.22-$2.19

Thursday's Volume: 3.49 million

Three-Month Average Volume: 3.96 million

From a technical perspective, DCTH bounced notably higher here right off its 50-day moving average of 29 cents per share with decent upside volume. This stock recently formed a major bottom chart pattern, after shares of DCTH found buying interest over the last month at around 28 to 29 cents per share. Shares of DCTH are now starting to move within range of triggering a big breakout trade above a key downtrend line. That trade will hit if DCTH manages to take out some near-term overhead resistance levels at 33 cents to its 50-day moving average at 36 cents per share and then once it clears more resistance at 37 cents to 39 cents per share with high volume.

Traders should now look for long-biased trades in DCTH as long as it's trending above some key near-term support at 28 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.96 million shares. If that breakout hits soon, then DCTH will set up to re-test or possibly take out its next major overhead resistance levels at 47 cents to 55 cents per share.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Set to Soar

>>5 Tech Stocks to Trade for Gains This Week

>>5 Dividend Stocks That Want to Give You a Raise in 2014

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com.

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

5 Best Railroad Stocks To Watch Right Now

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, regional freight railroad operator Genesee & Wyoming (NYSE: GWR  ) has earned a respected four-star ranking.

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

Genesee & Wyoming facts

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Headquarters (founded)

Greenwich, Conn. (1899)

Market Cap

$4.8 billion

Industry

Railroads

5 Best Railroad Stocks To Watch Right Now: Alliance Financial Corporation (ALNC)

Alliance Financial Corporation operates as the bank holding company for Alliance Bank, N.A., which provides various financial products and services to commercial, retail, government, and investment management customers in New York. Its deposit products include interest and non-interest bearing checking accounts, money market accounts, savings accounts, time deposit accounts, and individual retirement accounts. The company?s loan portfolio comprises residential and commercial mortgage loans, business lines of credit, working capital facilities, and business term loans, as well as installment loans, home equity loans, and personal lines of credit to individuals. It also provides personal trust, employee benefit trust, investment management, custodial, and financial planning services; financial counseling and brokerage services; and equipment lease financing services, as well as involves in residential real estate activities. In addition, Alliance Financial offers safe deposi t boxes, wire transfers, collection services, drive-up banking facilities, night depositories, automated teller machines, telephone banking, and Internet banking services. As of April 14, 2010, it operated 29 offices in Cortland, Madison, Oneida, Onondaga, and Oswego counties, as well as a trust administration center in Buffalo, New York. The company was founded in 1984 and is based in Syracuse, New York.

5 Best Railroad Stocks To Watch Right Now: STARWOOD PROPERTY TRUST INC.(STWD)

Starwood Property Trust, Inc., a real estate investment trust, primarily focuses on originating, investing in, financing, and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments. It also focuses to invest in commercial properties subject to net leases, residential mortgage loans, and residential mortgage-backed securities. SPT Management, LLC serves as the manager of Starwood Property Trust, Inc. The company qualifies as a real estate investment trust for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust was founded in 2009 and is headquartered in Greenwich, Connecticut.

Advisors' Opinion:

• [By Chris Hill]

  In this installment, our analysts discuss some of the day's big movers and shakers.�Shares of Level 3 Communications (NYSE: LVLT  ) rise after Deutsche Bank initiates coverage with a buy rating. Trading in Herbalife (NYSE: HLF  ) is halted after the company's auditor resigns. Cliffs Natural Resources (NYSE: CLF  ) gains ground on the news that inflation in China is slowing. And Starwood Property Trust (NYSE: STWD  ) declines after the real estate company announces a secondary stock offering.�

• [By Doug Fabian]

  This fund is pegged to the FTSE NAREIT All Mortgage Capped Index, a benchmark measure that includes top names in the space such as Annaly Capital (NLY), American Capital Agency Corp. (AGNC), Starwood Property Trust (STWD) and Two Harbors Investment Corp. (TWO).

• [By Amanda Alix]

  Other companies are currently mulling single-family REIT IPOs, too. Colony recently announced�that it plans to spin off its Colony American Homes, which owns over 9,500 homes with average monthly rents of $1,277. Barry Sternlicht, CEO of commercial mortgage investment REIT Starwood Property Trust (NYSE: STWD  ) has also said that he is seriously considering�spinning off his company's real estate holdings into a single-family REIT within the next few months.

Best Warren Buffett Companies To Buy For 2015: Echo Global Logistics Inc (ECHO.O)

Echo Global Logistics, Inc. (Echo) is a provider of technology enabled transportation and supply chain management services. Its Web-based technology platform compiles and analyzes data from its network of over 24,000 transportation providers to serve its clients' shipping and freight management needs. Its technology platform, composed of Web-based software applications and a database, enables it to identify excess transportation capacity, obtain competitive rates, and execute thousands of shipments every day. It focuses on arranging transportation across truckload (TL) and less than truck load (LTL), and it also offers small parcel, inter-modal (which involves moving a shipment by rail and truck), domestic air, expedited and international transportation services. Its logistics services include rate negotiation, shipment execution and tracking, carrier management, routing compliance, freight bill audit and payment and performance management reporting, including executive dashboard tools. Effective January 1, 2011, the Company acquired Nationwide Traffic Services, LLC. (Nationwide) Effective July 1, 2011, the Company acquired Advantage Transport, Inc. (Advantage). Effective December 1, 2011, the Company acquired the stock of Trailer Transport Systems (TTS). In June 2012, the Company acquired Plum Logistics, LLC. In July 2012, it acquired all of the assets of Shipper Direct Logistics, Inc. In October 2012, the Company acquired Sharp Freight Systems, Inc.

The Company�� clients fall into two categories, enterprise and transactional. Its enterprise clients outsource their transportation management function to Echo. It enters into multi-year contracts with its enterprise clients. As part of its value proposition, it also provides core logistics services to these clients, including the management of both freight expenditures and logistical issues surrounding freight to be transported. It provides transportation and logistics service s to its transactional clients on a shipment-by-shipment ba! s! is. It is a non-asset-based provider of technology enabled transportation and logistics services. Through its carrier network, it provides transportation services using a range of modes of transportation.

Transportation Services

The Company provides Truckload (TL) services across all TL segments, including dry vans, temperature-controlled units and flatbeds. Using its LaneIQ technology, it provide advanced dispatch, communication and data collection tools and capacity information to its clients on a real-time basis. The Company provides less than truckload (LTL) services involving the shipment of single or multiple pallets of freight. Using its RateIQ 2.0 technology, it obtains real-time pricing and transit time information for every LTL shipment from its database of LTL carriers. It provides small parcel services for packages of all sizes. Using its EchoPak technology, it delivers cost saving opportunities to its clients. Inter-modal transportation is the shipping of freight by multiple modes, using a container that is transferred between ships, railcars or trucks. It offers inter-modal transportation services for its clients, which utilizes both trucks and rail. The Company provides domestic air and expedited shipment services for its clients when traditional LTL services do not meet delivery requirements. It uses ETM track and trace tools for up to date information to its clients through EchoTrak. The Company provides air and ocean transportation services for its clients, offering a comprehensive international delivery option to its clients.

Logistics Services

In addition to arranging for transportation, the Company provides logistics services, either on-site (in the case of some enterprise clients) or off-site, to manage the flow of those goods from origin to destination. Its core logistics services include rate negotiation; procurement of transportation, both contractually and in the spo t market; shipment execution and tracking; carrier manag! emen! t, ! report! ing and compliance; executive dashboard presentations and detailed shipment reports; freight bill audit and payment; claims processing and service refund management; design and management of inbound client freight programs; individually configured Web portals and self-service data warehouses; enterprise resource planning (ERP) integration with transactional shipment data, and integration of shipping applications into client e-commerce sites. Customers communicate their freight needs, typically on a shipment-by-shipment basis, to the individual or team responsible for their account. Customers communicate with it by means of telephone, fax, Internet, e-mail, or Electronic Data Interchange (EDI).

Technology Platform

The Company�� ETM technology platform allows it to analyze its clients' transportation requirements and provide customized shipping recommendations. It collects and store pricing and market capacity data in its ETM database from each inte raction with carriers, and its database expands as a result of these interactions. It has also developed data acquisition tools, which retrieve information from both private and public transportation databases, including subscription-based sources and public transportation rate boards, and incorporate that information into the ETM database. Its clients communicate their transportation needs to it electronically through its EchoTrak web portal, other computer protocols, or by phone. ETM generates pricing and carrier information for its clients by accessing pre-negotiated rates with preferred carriers or using present or historical pricing and capacity information contained in its database. If a client enters its own shipment, ETM automatically alerts the appropriate account executive. After the carrier is selected, either by it or the client, its account executives use its ETM technology platform to manage all aspects of the shipping process.

The Company�� Fast Lane is an Internet-based Web portal, which allows! its carr! i! ers to vi! ew shipments available for tender, update equipment availability and preferred lanes, check on the status of all unpaid invoices, unbilled shipments, shipments in transit and other information used to resolve any billing discrepancies. There is also a mobile FastLane application, which allows carriers to view similar information remotely. eConnect is a set of tools, which allows the Company�� clients and carriers to interact directly with ETM electronically through any of several computer protocols, including EDI, extensible markup language (XML) and file transfer protocol (FTP). The eConnect tools serve as an electronic bridge between the other elements of its ETM technology platform and its clients' enterprise resource planning (ERP), billing, accounts receivable, accounts payable, order management, back office and e-commerce systems. Through eConnect, its clients are able to request shipping services and receive financial and tracking data using their existing systems.< /p>

EchoTrak is an Internet-based Web portal, which connects and integrates its clients with ETM. By entering a username and password, its clients are able to enter orders, display historical and active shipments in the ETM system using configurable data entry screens sorted by carrier, price, delivery date, destination and other relevant specifications. EchoTrak also generates automatic alerts to ensure that shipments are moving in accordance with the client specifications and timeline. There is also a mobile EchoTrak application, which allows customers to perform similar functions remotely. RateIQ2.0 is a pricing engine, which manages LTL tariffs and generates rate quotes and transit times for LTL shipments. RateIQ2.0 also provides integrated tools to manage dispatch, communications, data collection and management functions relating to LTL shipments. LaneIQ is a pricing engine, which generates rate quotes for TL shipments. LaneIQ also provides integrated tools to manage dispatch, communications, headhaul and! backhaul! data ! collectio! n and management functions relating to TL shipments. EchoPak is a small parcel pricing and audit engine. For each small parcel shipped, EchoPak audits carrier compliance with on-time delivery requirements and pricing tariffs. In addition, EchoPak tracks information for each parcel and is able to aggregate and analyze that data for clients. For instance, clients are able to view shipments by date, business unit, product line and location, and clients can access information regarding service levels and pricing.

The Company�� Shipment Tracking stores shipment information en-route and after final delivery. The shipment data is acquired through its carrier EDI integration, allowing its clients to track the location and status of all shipments on one screen, regardless of mode or carrier. Final delivery information is permanently archived, allowing it to provide its clients with carrier performance reporting by comparing actual delivery times with the published tran sit time standards.

Document Imaging allows the Company to store digital images of all shipping documents, including bills of lading and delivery receipts. CAS (Cost Allocation System) automatically audits carrier invoices against its rating engine and accounts payable accrual system. If the amounts match, the invoice is automatically released for payment. If the amounts do not match, the invoice is sent to various administrative personnel for manual processing and resolution. CAS also integrates to its general ledger, accounts receivable and accounts payable systems. Accounting includes its general ledger, accounts receivable and accounts payable functions. Accounting is integrated with CAS and EchoIQ. EchoIQ stores internally and externally generated data to support its reporting and analytic functions and integrate all of its core applications with ETM. ETM supports its logistics services, which it provides to its clients as part of its value proposition. Its ETM technology platform is able to trac! k individ! ual shipmen! ts and pr! ovide customized data and reports throughout the lifecycle of the shipment, allowing it to manage the entire shipping process for its clients. It also market Flex TMS.

The Company competes with C.H. Robinson Worldwide, Total Quality Logistics, UPS, FedEx, Schneider, Conway, JB Hunt and ABF.

5 Best Railroad Stocks To Watch Right Now: Harmony Gold Corp (H.V)

Harmony Gold Corp., a junior mining company, engages in the acquisition, exploration, and development of mineral properties worldwide. The company was formerly known as Avantec Technologies Inc. and changed its name to Harmony Gold Corp. in August 2009. Harmony Gold was incorporated in 1999 and is based in Vancouver, Canada.

5 Best Railroad Stocks To Watch Right Now: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

5 Best Railroad Stocks To Watch Right Now: DRDGOLD Ltd (DRD)

DRDGOLD Limited (DRDGOLD), incorporated on February 16, 1895, is a South Africa-based surface gold retreatment company. DRDGOLD operates in a single segment, Ergo. Ergo is a surface retreatment operation and treats old slime and sand dumps to the south of Johannesburg�� central business district, as well as the east and central Rand goldfields. The operation consists of four plants: Brakpan, Crown, City and Knights. Included in the Ergo segment is the East Rand Proprietary Mines Limited (ERPM) surface operation comprise the Cason retreatment operation. Ergo is evaluating the viability of processing surface uranium- and sulphur-bearing tailings on the east and central Rand goldfields of South Africa. The Company�� business includes Crown Gold Recoveries (Pty) Limited (Crown), Ergo Mining (Pty) Limited (Ergo JV) and ErgoGold are jointly referred to as ERGO and ERPM. On June 1, 2012, the Company disposed of its 74% interest in and loan claims against Blyvoor.

The Company�� focus is on the recovery of lower-risk, lower-cost, higher-margin ounces. As of October 9, 2012, 68% of production comes from surface retreatment operation. The company holds a 74%-interest in operating subsidiary Ergo Mining Operations (Proprietary) Limited. Crown is the gold surface tailings retreatment facility, reprocessing the large and numerous sand and slimes dumps along the reefs that stretch from east to west just to the south of Johannesburg�� central business district (CBD). Crown�� major project is Top Star, a tailings dam to the south of Johannesburg�� CBD. ERPM is situated on the Witwatersrand Basin near the town of Boksburg, 25 kilometers to the east of Johannesburg. The Ergo as a joint venture between DRDGOLD and Mintails Limited. Wholly owned by the DRDGOLD group, Ergo has a network of surface rights that provide access to a further 600 million tons of surface tailings deposited across the western, central and eastern Witwatesrand. Ergo has three tailings deposition facilities. ERPM continues ! as a surface retreatment operation. It holds 65% of ErgoGold through the contribution of its Elsburg Tailings Complex.

Advisors' Opinion:

• [By Maria Levitov]

  The MSCI Emerging Markets Index added 0.3 percent to 1,033.97, after jumping to the highest level in five months yesterday. AngloGold Ashanti Ltd. and DRDGold Ltd. (DRD) drove South Africa�� benchmark equity index to a record, while the Philippine Stock Exchange Index led gains among developing-nation gauges. Russia�� Micex Index (INDEXCF) slumped 1.3 percent as oil companies plunged. The real strengthened on speculation Brazil�� central bank will raise its target rate next month.

• [By Roland Head]

  DRDGold (NYSE: DRD  ) climbed 4.2% to $6.25 last week. Rather than mining gold, this South African firm is focused on large-scale reprocessing of the tailings, or waste piles, of large gold mines in order to extract the gold that was not captured by the original mining process. This business is heavily mechanized and requires a relatively small workforce, giving DRDGold some protection from the rising labor costs that are reducing the profitability of many South African mining firms.

• [By Monica Gerson]

  DRDGOLD (NYSE: DRD) shares fell 4.09% to reach a new 52-week low of $4.66. DRDGOLD's trailing-twelve-month profit margin is -1.61%.

  InnerWorkings (NASDAQ: INWK) shares dipped 34.83% to touch a new 52-week low of $6.19 after the company reported downbeat Q3 results and issued a weak FY13 outlook.

• [By Zahra Hankir]

  The MSCI Emerging Markets Index decreased 1.5 percent to 995.30, extending its slump for the week to 3.2 percent. Benchmark stock gauges from South Africa to Russia and China dropped more than 1 percent, while the Borsa Istanbul National 100 Index posted the second-biggest decline among the 94 world equity gauges tracked by Bloomberg. DRDGold Ltd. (DRD) and AngloGold Ashanti Ltd. decreased at least 3.7 percent in Johannesburg as the precious metal drove losses in commodities.

5 Best Railroad Stocks To Watch Right Now: Akamai Technologies Inc.(AKAM)

Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally. The company offers application and cloud performance solutions to enhance the operation of the applications used by enterprises to connect with their employees, suppliers, and customers. Its solutions include Web Application Accelerator, which enables enterprises to run various applications; and IP Application Accelerator that is designed to optimize the performance, availability, and real-time sensitivity associated with IP-enabled applications delivered over Internet-related protocols. The company also provides video and software solutions that are designed to enable enterprises to execute their large file management and distribution strategies, which include media delivery solution to entertainment industry; and electronic software delivery solution that handles the distribution of s oftware for its customers. In addition, it offers Website optimization services for accelerating business-to-consumer Websites that integrate collaborative content and applications into their online architecture; security and protection solutions that address the Internet security requirements; and network operator solutions, which provide custom solutions to commercial and government customers. Further, the company provides mobile content adaptation solution; and advertising decision solutions that enable advertisers, agencies, publishers, and networks to buy and sell advertising, as well as network data feeds, Website analytics, and business performance management services. It markets and sells its services and solutions through direct sales and services organization; and through active channel partners. Akamai Technologies, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  Akamai Technologies provides technology products and services to a growing user base in a number of industries around the world. The stock has been performing well in recent years and looks to be getting ready to see higher prices. Earnings and revenue numbers have been shows excellent signs of growth which has really pleased investors. Relative to its strong peers and sector, Akamai Technologies has been an average year-to-date performer. Look for Akamai Technologies to continue to OUTPERFORM.

• [By Rex Moore]

  But investors should also pay attention to less obvious beneficiaries. Among these are Akamai Technologies (NASDAQ: AKAM  ) , which creates and refines the technology, and Amazon.com, which could see increased sales.

• [By Bryan Murphy]

  The winds of change are blowing within the patent-enforcement world. If you don't believe it, just ask Google Inc. (NASDAQ:GOOG), Akamai Technologies, Inc. (NASDAQ:AKAM), and Soverain Software LLC. All three companies recently found themselves on the losing end of a court decision - the appeals court, to be specific - that likely could have come out very differently were we in the patent-enforcement environment from just a couple of years ago. Things are a bit tougher for patent owners now. That change, however, may be a very good thing for patent-protection company Endeavor IP Inc. (OTCBB:ENIP) and ENIP shareholders.

5 Best Railroad Stocks To Watch Right Now: Goodrich Petroleum Corporation (GDP)

Goodrich Petroleum Corporation, an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas. The company holds interest in the Eagle Ford Shale Trend located in South Texas; the Haynesville Shale and Cotton Valley Taylor Sand in northwest Louisiana and East Texas; and the Tuscaloosa Marine Shale located in southwest Mississippi and southeast Louisiana. It owns working interests in 392 producing oil and natural gas wells located in 32 fields in 8 states. As of December 31, 2012, the company had estimated proved reserves of approximately 254.0 billion cubic feet of natural gas, 5.1 million barrels of crude oil or other liquid hydrocarbons (MMBbls) of natural gas liquids, and 8.1 MMBbls of oil and condensate. Goodrich Petroleum Corporation was founded in 1995 and is based in Houston, Texas.

Advisors' Opinion:

• [By Canadian Value]

  A study by the World Bank identified Malaysia and Thailand as having the largest household debts, as a share of gross domestic product (GDP), among Asia's developing economies.

5 Best Railroad Stocks To Watch Right Now: Home Inns & Hotels Management Inc.(HMIN)

Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• [By Seth Jayson]

  Home Inns & Hotels Management (Nasdaq: HMIN  ) reported earnings on May 13. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Home Inns & Hotels Management missed estimates on revenues and beat expectations on earnings per share.

5 Best Railroad Stocks To Watch Right Now: Reece Australia Ltd (REH.AX)

Reece Australia Limited engages in the import, wholesale, distribution, marketing, and retail of plumbing and bathroom products in Australia and New Zealand. The company�s bathroom products include accessories, basins, bath spouts, baths, spas, heated towel rails, hot water units, mirrors, showerbases, shower cubicles and bath screens, shower outlets, taps, toilets and bidets, vanities and bathroom furniture, wastes and plugs, and water flow control products. Its plumbing products comprise hot water units, rainwater tanks, pipe and fittings, clips and pipe supports, valves, pumps, tools and hardware, workwear and safety gears, macerators, water filters, air conditioning units, ducting and ventilation products, fire service, tap and cistern spares, gas spares, commercial bathroom ware, material safety data sheets, and hydronic heating and flashing products. The company also offers kitchen and laundry products consisting of kitchen and bathroom appliances, kitchen sinks, la undry trough and cabinets, and taps. In addition, it provides heating, ventilation, air conditioning, and refrigeration (HVAC-R) products and services to HVAC-R contractors; and irrigation products, such as turf, agricultural sprays and drippers, valves, pipe and fittings, pumps, automatic controllers, professional outdoor lighting, and a range of water saving products for the landscape, commercial, and agricultural industries. Further, the company offers various products and services for underground pipe networks, including water mains, gas mains, sewer mains, telecommunications, electrical, and fire services; and onsite services for builders, commercial plumbers, and developers. It serves customers in the trade, retail, professional, and commercial markets through a network of 453 trading outlets. The company was formerly known as H.J. Reece Limited and changed its name to Reece Australia Limited in 1987. Reece Australia Limited was founded in 1919 and is based in Burwood, Australia.

5 Best Railroad Stocks To Watch Right Now: Bodycote Int(BOY.L)

Bodycote plc, through its subsidiaries, provides thermal processing services worldwide. The company offers a range of heat treatment services and specialist metal joining services, including heat treatment services, and specialist processes, such as Kolsterising, low pressure carburizing, electron beam welding, vacuum and honeycomb brazing, plasma processing, cryogenic treatments, boronising, Corr-I-Dur, nitrocarburising, hydrogen annealing, and hardening of stainless steels. Its surface engineering services include ceramic and thermal spray coatings, thermal diffusion, duplex coatings, and organic coatings for durability, anti-corrosion, wear resistance, enhanced hardness, and electrical conductivity. The company also provides hot isostatic pressing services that eliminate porosity in castings and consolidate encapsulated powders to give dense wrought materials. In addition, it offers precision machining and surface finishing services, such as milling, jig/form grinding, wire/spark erosion, turning/hard turning, design, tooling jigs and fixtures, prototype manufacture, and manufacture of low volume and specialist parts. Bodycote plc serves the aerospace and defense, agricultural, automotive, construction, consumer products, electrical, telecom and IT, general engineering and hydraulics, medical, mining, oil and gas/offshore, power generation, rail, tooling, and water industries. The company was formerly known as Bodycote International plc and changed its name to Bodycote plc in April 2008. Bodycote plc was founded in 1923 and is headquartered in Macclesfield, the United Kingdom.

5 Best Railroad Stocks To Watch Right Now: Royal Caribbean Cruises Ltd.(RCL)

Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisi�es de France. The Royal Caribbean International brand provides various itineraries and cruise lengths with options for onboard dining, entertainment, and other onboard activities primarily for the contemporary segment. It offers surf simulators, water parks, ice skating rinks, rock climbing walls, and shore excursions at each port of call, as well as boulevards with shopping, dining, and entertainment venues. The Celebrity Cruises brand operates onboard upscale ships that offer luxurious accommodations, fine dining, personalized services, spa facilities, venue featuring live grass, and glass blowing studio for the premium segment, as well as resells computers and other media devices. The Pullmantur brand provides an array of onboard activities and serv ices to guests, including exercise facilities, swimming pools, beauty salons, gaming facilities, shopping, dining, complimentary beverages, and entertainment venues serving the contemporary segment of the Spanish, Portuguese, and Latin American cruise markets. The Azamara Club Cruises brand offers various onboard services, amenities, gaming facilities, fine dining, spa and wellness, butler service for suites, and interactive entertainment venues for the up-market segment of the North American, United Kingdom, German, and Australian markets. The CDF Croisieres de France brand offers seasonal itineraries to the Mediterranean; and various onboard services, amenities, entertainment venues, exercise and spa facilities, fine dining, and gaming facilities for the contemporary segment of the French cruise market. As of December 31, 2011, the company operated 39 ships with a total capacity of approximately 92,650 berths. Royal Caribbean Cruises Ltd. was founded in 1968 and is headqua rtered in Miami, Florida.

Advisors' Opinion:

• [By Ben Levisohn]

  Carnival�(CCL) has fallen 7.6% to $34.56 in early trading this morning after the company reported a profit of $1.38, above forecasts for $1.32, but issued disappointing guidance. It’s also dragging down shares of�Royal�Caribbean�Cruises (RCL), which have fallen 3.1% to $38.18.

• [By Shauna O'Brien]

  On Friday, Royal Caribbean Cruises Ltd. (RCL) released its fourth quarter financial results, which came in above analysts’ estimates. The company also announced that it has boosted its outlook for 2014.

  RCL’s Earnings in Brief

  RCL reported earnings of��$7.02 million, or 3 cents per share, compared to a loss of $392.80 million, or $1.80 per share, last year. Adjusted earnings were 23 cents per share, which came in above analysts’ estimate of 18 cents per share. Revenue for the quarter was $1.85 billion, in-line with analysts estimates. The company raised its outlook for 2014 to a range of $3.20-$3.40 per share, from its prior outlook of $3.06-$3.19 per share.

  CEO Commentary

  Richard D. Fain, chairman and CEO of RCL noted:”Six months ago we said we thought we had reached an inflection point and these figures clearly bear that out.�It has been a challenging year, but the fact that we have achieved our guidance from a year ago nicely demonstrates the strength of our�business.�Despite the lingering impact of 2013′s negative media coverage on 2014, the year ��and what it portends for future returns ��is looking highly promising.”

  RCL’s Dividend

  RCL paid its last quarterly dividend of 25 cents on January 2. The company is expected to announce its next dividend in February. In September, RCL raised its dividend from 12 cents to 25 cents per share.

  Stock Performance

  Royal Caribbean shares were up $1.97, or 4.18%, during pre-market trading Monday.

No crystal ball needed to build diverse portfolio

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: What's the best stock of each 10 sectors?

A: Investors building a diversified basket of stocks know they're often best off owning stocks in each of the 10 sectors. But some investors might wonder why buy several stocks in the sectors, and why not just own the best ones?

It's a reasonable question. Investors new to the idea of diversifying wonder why anyone would want to own a large group of stocks, rather than just the top-notch ones. The answer is very practical. It's impossible to know, ahead of time, which stocks in each sector will be the best in the future.

For some investors, the best stock would be the one with the greatest growth opportunities ahead of it. But others would eschew these fast growers, seeing them as overpriced, and instead look for those with the most reasonable valuations.

Top 10 Stocks For 2015

TRACK YOUR STOCK: Get real-time quotes with our free Portfolio Tracker

That's the problem with the strategy you're asking about. There's

not really a good way to predict which stock in each sector will be the best. That's the bad news. The good news is that you don't need to. Beginning investors can simply invest in the Standard & Poor's 500 and get exposure to all 10 sectors. This strategy eliminates the need to pick the best stock in every sector, since you'll own every stock in every sector.

Picking the stocks that will do the best in a sector can be tricky, if not impossible, even for analysts who focus on individual sectors. Investors are often best off just owning them all, or at least as many as they can while keeping their costs low.

Johnson Controls Moves Into ‘Buy’ Territory

Popular Posts: Ring in the New Year Right – 3 Best Booze Stocks to Buy NowThe Gold Market Stinks! 14 Gold Stocks to Sell3 ‘Best of the Best’ Stock Picks for 2014 Recent Posts: Johnson Controls Moves Into ‘Buy’ Territory Boeing Stock Continues to Soar for Investors 6 New Year's Resolutions for Investors View All Posts

Welcome to the Stock of the Day!

Johnson Controls (JCI) has been in the spotlight lately, having just released its sales and earnings guidance for 2014. While the outlook came below analyst expectations, there have been a lot of positive things said about the auto parts maker. Is it time to buy JCI? Find out now.

Company Profile

Founded in 1885, Johnson Controls is a diversified technology and industrial company that specializes in four areas: Building efficiency, facilities management, automotive and advanced batteries and automotive components. The company employs 170,000 worldwide and serves customers in some 150 countries.

Shareholder Value

JCI recently went ex-dividend on December 12. Shareholders of record will receive 22 cents per share on January 6. This quarter’s dividend represents a 16% increase over the prior quarter, and the company has increased its payout by nearly 70% in the past three years. The stock currently yields 1.6%. The company also recently started a $3.65 billion stock buyback program, another bonus to shareholders.

Earnings Outlook

Looking ahead to FY 2014, Johnson Controls expects earnings between $3.15 to $3.30 per share on $43.8 billion in sales. This represents between 18.4% and 24.1% annual earnings growth and 2.6% sales growth.

However, this was on the lower end of analyst estimates, which had called for $3.31 EPS on $44.29 billion in sales. Since the company released its 2014 projections, the analyst community has revised its consensus earnings estimate down to $3.26 per share. While this still represents solid earnings growth, JCI isn’t looking quite as good in the new year as it had been.

Current Ratings

JCI spent the first six months of the year at a D-rated sell. That all changed in July, when the stock suddenly jumped to a B-rated buy. What happened? Well, part of it was that the company’s fundamentals firmed up. JCI receives an A for earnings momentum and a B for return on equity. But there’s still more work to be done–the company receives C-ratings on sales growth, operating margin growth, earnings growth, analyst earnings revisions and cash flow.

Hot Insurance Companies To Invest In 2014

So JCI gets a C-rating for its Fundamental Grade. JCI receives a B for its Quantitative Grade, indicating that institutional buying pressure has also improved of late.

Bottom Line: As of this posting I consider JCI a B-rated Buy.

Is Tesla Motors a Good Portfolio Play?

With shares of Tesla Motors (NASDAQ:TSLA) trading around $140, is TSLA 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

Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores as well as over the Internet. Consumers and companies are looking to save at the pump, and what better way to do so than with electric vehicles?

With Tesla shares sliding in early Thursday trading, the news of a garage fire in California is overcoming the recent announcement that Tesla will be adding capacity at its Fremont, California, factory to produce 35,000 more vehicles per year — not to 35,000, but 35,000 more vehicles. The state of California is negotiating tax breaks for Tesla that will allow the company to save about $37.4 million toward the purchase of $415 million worth of equipment to facilitate the expansion, as the state is confident that the investments will provide an economic boon down the road that will be greatly more beneficial for California than the tax money collected up front. Tesla is slated to roll 21,500 units of its Model S sedan off the line this year, so the added capacity would allow the company to more than double its current production rate. Moreover, it will help alleviate concerns and fears that the company's current output will hinder its future opportunities for meaningful growth.

T = Technicals on the Stock Chart Are Mixed

Tesla Motors stock has been pulling back over the last couple of months. The stock is currently trading sideways and may need time to stabilize before heading higher. 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, Tesla Motors is trading between its rising key averages, which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Hot Medical Companies To Own For 2014 Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Tesla Motors options	56.57%	30%	28%

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

	Put IV Skew	Call IV Skew
January Options	Average	Average
February Options	Average	Average

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

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

E = Earnings Are 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 Tesla Motors’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Tesla Motors look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-86.96%	105.62%	113.95%	-1.27%
Revenue Growth (Y-O-Y)	1102.65%	1420.08%	1762.78%	677.88%
Earnings Reaction	-14.50%	14.34%	24.39%	-8.77%

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

P = Excellent Relative Performance Versus Peers and Sector

How has Tesla Motors stock done relative to its peers, General Motors (NYSE:GM), Toyota Motor (NYSE:TM), Ford Motor (NYSE:F), and sector?

	Tesla Motors	General Motors	Toyota Motor	Ford Motor	Sector
Year-to-Date Return	317.60%	39.89%	27.15%	18.19%	29.41%

Tesla Motors has been a relative performance leader, year-to-date.

Conclusion

Tesla Motors offers electric vehicles that consumers and companies are opting for over other luxury vehicles. The company will be adding capacity at its Fremont, California, factory to produce 35,000 more vehicles per year. The stock has been pulling back and is currently trading sideways. Over the last four quarters, earnings have been mixed while revenues have been rising, which has left investors pleased. Relative to its peers and sector, Tesla Motors has been a year-to-date performance leader. WAIT AND SEE what Tesla Motors does this quarter.

Hot Value Stocks To Buy Right Now

Alamy Jos. A. Bank Clothiers' offered to buy bigger rival Men's Wearhouse for about $2.3 billion to create a men's apparel heavyweight with more than 1,700 stores -- a proposal that Men's Wearhouse swiftly rejected. The offer of $48 a share in cash is a 36 percent premium to the closing price of Men's Wearhouse shares on Tuesday. Men's Wearhouse (MW) shares opened at $43.35 on the New York Stock Exchange, after hitting $47 before the bell. Jos. A. Bank's (JOSB) shares were up 5.4 percent at $43.90 on the Nasdaq. The offer, which comes at a time of intense competition in the men's suit market, would be funded by a combination of cash-on-hand, debt and new equity, including a $250 million investment by Golden Gate Capital, Jos. A. Bank said. However, Men's Wearhouse said the non-binding offer undervalued the company and could raise anti-trust issues. The "highly opportunistic" proposal also didn't reflect the company's growth strategy and upside potential, Bill Sechrest, lead director of the Men's Wearhouse board, said in a statement. "The challenging second quarter results led to a 12 percent decline in Men's Wearhouse's stock price, which Men's Wearhouse believes doesn't fairly reflect the intrinsic value of Men's Wearhouse shares," the company said. Men's Wearhouse shares, which hit a year-high of $41.02 in August, last traded above the offer price exactly six years ago. The Fremont, Calif.-based clothier had a market value of about $1.68 billion, compared with Jos. A. Bank's $1.17 billion, as of Tuesday's close. The company sells discount suits through 1,137 stores, its website shows. Jos. A. Bank, with more than 600 stores, is a century-old seller of men's tailored and casual clothing, according to its website. 'I Guarantee It' Men's Wearhouse was founded in 1973 by George Zimmer, known to U.S. TV audiences for his advertising catchphrase "you're gonna like the way you look -- I guarantee it". The company fired Zimmer in June, saying he had pushed to take the company private and effectively demanded to be reinstated as the company's sole decision-maker. Zimmer denied he had pushed for a sale, insisting he only presented that suggestion to the board as an option Men's Wearhouse struck a deal the following month to buy designer brand Joseph Abboud for about $97.5 million. Zimmer owned about 3.7 percent of Men's Wearhouse as of July 22, making him the eighth-biggest shareholder. Net income at Men's Wearhouse more than doubled to $130.4 million over the four years to Feb. 2, while Jos. A. Bank's earnings seesawed over the period to reach $79.7 million. Men's Wearhouse cut its full-year earnings forecast last month, saying weak economic conditions were hurting sales. Jos. A. Bank, which makes heavy use of promotions, also reported a drop in quarterly sales, but said it expected results to improve. Its shares have fallen about 2 percent so far this year, while those of Men's Wearhouse have risen about 13 percent. Jos. A. Bank, based in Hampstead, Maryland said in June it was considering strategic opportunities to enhance shareholder value, including acquisitions. The company said a deal with Men's Wearhouse would "immediately and significantly" add to earnings. Jos. A. Bank is being advised by Goldman Sachs (GS) and Financo. Its legal advisers are Skadden, Arps, Slate, Meagher & Flom, and Guilfoil Petzall & Shoemake.

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

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

Advisors' Opinion:

• [By Dan Caplinger]

  What's interesting is how that tug-of-war is playing out among individual companies. Among the gainers in the Dow this morning is Caterpillar (NYSE: CAT  ) , which is up 1.1%. As I predicted earlier this week, Caterpillar followed through on its long streak of annual dividend increases with a 15% hike yesterday. Yet the move likely also reflects optimism about the U.S. economy, as Caterpillar retains a key domestic presence despite the importance of international markets like China. The stock has been stuck in the doldrums for a while now, so signs of life are a positive not just for Caterpillar investors but for the broader industrial sector.

• [By Monica Gerson]

  Analysts at JP Morgan downgraded Caterpillar (NYSE: CAT) from ��verweight��to ��eutral.��The target price for Caterpillar has been lowered from $105 to $90.

Hot Value Stocks To Buy Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Dan Caplinger]

  Another issue that Varco has to face is the specter of increasing competition. Cameron International (NYSE: CAM  ) has arisen as a big player in the drilling and production systems space, with a particular emphasis on subsea applications like blowout preventers. With Cameron sporting a recent partnership with Schlumberger (NYSE: SLB  ) , the combination will have both the expertise and the financial resources to challenge Varco in that niche. More broadly, up-and-coming Forum Energy (NYSE: FET  ) has sought to emulate Varco's broad-based services menu, offering remotely operated vehicles for deepwater inspection and construction as well as pipe and cementing materials and a range of subsea systems and equipment. Forum has posted solid results in its brief history, taking steps to continue its fast growth trajectory.

• [By Tony Daltorio]

  The biggest oilfield service companies should get a big lift from the boom, Moors said. That includes Schlumberger Ltd. (NYSE: SLB), Halliburton Co. (NYSE: HAL), Weatherford International Ltd. (NYSE: WFT), and Baker Hughes Inc. (NYSE: BHI).

• [By Richard Moroney, Editor, Dow Theory Forecasts]

  Founded in 1926, Schlumberger (SLB), operates in all major facets of oilfield services, essentially covering the lifespan of reservoirs that house natural gas and oil.

Top 5 Low Price Companies To Watch In Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Traders Reserve]

  I do believe as Wal-Mart gets hurt, the dollar stores will do a little better ��especially Dollar General (DG), but don�� overlook� Dollar Tree (DLTR). Wall Street is worried about Costco (COST) but I believe it will actually outperform expectations. Costco seems to have figured out how to grow much faster than Wal-Mart and still provide affordable health insurance for most employees.

Hot Value Stocks To Buy Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By John Kell]

  Among the companies with shares expected to actively trade in Wednesday’s session are Dow Chemical Co.(DOW), Tupperware Brands Corp.(TUP) and Yahoo Inc.(YHOO)

• [By Brian Pacampara]

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

BBY Stock vs. RSH Stock: Is Either Struggling Retailer Worth Your Cash?

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It’s beginning to look like electronics retailers Best Buy (BBY) and Radio Shack (RSH) are in a race to the bottom. Sure, JCPenney (JCP) and Sears Holding (SHLD) are the poster boys for retail incompetence these days, but BBY and RSHare giving those department stores a run for the money.

BBY stock and RSH stock have been bleeding for years, caught between the rock of Amazon (AMZN) and the hard place of Walmart (WMT). Neither retailer can compete with online prices, or always low prices. As such, both BBY and RSH are suffering from the dreaded “showrooming” syndrome. That’s where customers research a purchase in person at a store, only to buy it online at a lower price later.

Really, there’s only reason to care about BBY stock or RSH stock. See, when stocks get clobbered as hard as these guys, there the potential for a huge killing on a rebound — even if it’s incredibly unlikely.

Best Buy stock is a great example of this phenomenon, as shares more than tripled last year after being all but written off in 2012. Radio Shack stock, meanwhile, actually put up some market-beating gains in the aftermath of the last recession. Its turnaround may not be probable, but it is possible.

Let’s take a look at BBY stock and RSH stock to see if either is worth a dime of your portfolio:

BBY Stock Goes From Worst to First … to Worst Again

It’s hard to believe it now, but Best Buy (BBY) had an incredible 2013. Indeed, shares of BBY stock gained 237% last year, making it the third best-performing stock in the S&P 500. Even more amazing was that Best Buy stock came back after a horrid 2012, when it fell 50% because it looked dangerously close to going bust.

Easy come, easy go. A rotten holiday selling season flipped the sentiment on BBY stock like a switch. Best Buy sales fell 2.6% year-over-year to for the nine weeks ended Jan. 4, while comparable-store sales dropped 0.8% over the period. Compounding the pain was the fact that Best Buy got into a price war with Walmart during the holidays, meaning margins were squeezed even more than usual.

Those terrible numbers forced Best Buy to lay off 950 employees and sparked the worst selloff in BBY stock in more than a decade. We’ve just begun February and Best BuY stock is already down 42% for the year-to-date.

Whatever hope there was last year that Best Buy’s painful restructuring might actually work was dashed on the shoals of holiday sales. It’s going to take a miracle for BBY stock to gain any traction anytime soon.

Hey RSH Stock, the 80s Called. They Want Their Share Price Back

Radio Shack’s (RSH) Super Bowl commercial was pretty cute, but it also served as a reminder that RSH stock has been a rathole for decades. Radio Shack stock went for around $7 a pop in the mid-80s. Today it costs less than $2.50.

Heck, RSH stock has lost 96% since hitting its all-time high back in 1999. At this point, a complete refresh of its stores — as promised in the Super Bowl ad — looks akin to putting lipstick on a pig.

RSH stock rose just 23% last year, lagging the broader market by 7 percentage points. For the year-to-date, it’s off 4%, which is actually slightly better than the S&P 500. But maintaining that sliver of outperformance seems like a long shot. Radio Shack has logged seven straight quarters of losses, and the upcoming quarters are projected to be losers too.

About the best thing you can say for RSH stock is that the company is expected to report a narrower loss in 2014 vs. the year-ago period. Analysts, on average, forecast a loss of $1.27 a share again last year’s loss of $2.09. Progress, yes, but still no profits.

Radio Shack has a new management team charged with turing around the retailer. New store formats and cutting the number of stocked items are supposed to help. But, as Warren Buffett famously said: Turnarounds seldom turn.

The Verdict: BBY Stock or RSH Stock

If you’re looking for some 2014 losers to harvest for tax losses, you might as well buy both BBY stock and RSH stock, just in case one of them confounds expectations and actually posts a gain.

It’s very hard to make a long case on either of these names. The most interesting thing about them is that they have held on so long when the playbook is to go bust. Just look at what happened to Circuit City.

Then again, as Best Buy stock proved last year, it only takes a little progress on the turnaround front to generate some triple-digit-percent gains.

BBY stock is almost certainly not going to post another year like last year. The easy money has been made. RSH stock isn’t a screaming buy, either, but it has gained interest from Litespeed, a hedge fund based in New York, which took an 8% stake in the stock.

For that reason and no other, hedge fund interest makes Radio Shack stock look like the better bet for 2014. Of course, what both BBY stock and RSH stock really need is for Carl Icahn to get involved.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.