GM Canceled Ignition-Switch Fix in 2005 Due to Costs

David McNew/Getty Images General Motors (GM), after months of studying ignition-switch failures in the Chevrolet Cobalt, canceled a proposed fix in 2005, when a project engineering manager cited high tooling costs and piece prices, according to documents obtained by U.S. congressional investigators. A separate opportunity to address the defect was passed over by the National Highway Traffic Safety Administration in 2007, when it opted not to open a formal defect investigation even after an agency official had said a probe was justified, according to an interview between current NHTSA officials and staff members of the House Energy and Commerce Committee. Those decisions and this year's recall of 2.6 million small cars for faulty ignition switches are set to be the main focus of congressional hearings Tuesday and Wednesday. GM Chief Executive Officer Mary Barra and acting NHTSA Administrator David Friedman are being asked to explain the handling of years of complaints about stalling cars and disabled air bags that have now been linked to the switches and tied to 13 deaths. "Lives are at stake, and we will follow the facts where they take us as we work to pinpoint where the system failed," Representative Fred Upton, the chairman of the House Energy and Commerce Committee, said in a statement Sunday. GM opened an engineering inquiry about the Cobalt ignition switch in November 2004, after customers complained the engine "can be keyed off with knee while driving," according to a problem-tracking system document obtained by House investigators. Four months later, the Cobalt project engineering manager rejected a key slot change, citing cost and long lead times. "None of the solutions presents an acceptable business case," according to a GM memo cited by the House committee. 'Early Warning' The chief of NHTSA's Defects Assessment Division emailed other officials in the Office of Defects Investigation in September 2007, saying owner complaints from 2005 and "early warning" data about warranty repairs and injuries justified a probe, according to the memo from the committee. "Notwithstanding GM's indications that they see no specific problem pattern, DAD perceives a pattern of non-deployments in these vehicles that does not exist in their peers," the official said, according the memo issued before a committee hearing on vehicle defects. NHTSA chose not to open a formal defect investigation in 2007 after reviewing the air-bag data. In 2010, after a special crash investigation report was filed with NHTSA about a May 2009 Cobalt crash, the agency again considered a defect probe focused on the car's air bags. For a second time, the agency backed off after further reviewing data, according to the memo. 'At Stake' Barra and Friedman are scheduled to appear before Upton's committee Tuesday, and a Senate committee Wednesday. "As we have stated previously, the agency reviewed data from a number of sources in 2007, but the data we had available at the time did not warrant a formal investigation," a NHTSA spokesman, Nathan Naylor, said. "Recent data presented by GM provides new information and evidence directly linking the ignition switch to the air-bag non-deployment. That's why we are aggressively investigating the timing of GM's recall." The ignition-switch defect in six GM models including the Cobalt and Saturn Ion has been linked to the deaths in at least 31 crashes. GM recalled about 1.6 million cars worldwide in February, and an additional 971,000 last week. "We deeply regret the events that led to the recall," a GM spokesman, Greg Martin, said in an emailed statement. "We are fully cooperating with NHTSA and the Congress, and we welcome the opportunity to help both have a full understanding of the facts." Barra's Leadership GM approved production of the ignition switch in 2002 even though testing showed torque in the part fell short of the company's original specifications, the part's supplier, Delphi Automotive Plc, told House investigators. The congressional hearings present a test of leadership for Barra, who took over as GM's first female CEO on Jan. 15 and said she first learned the details of the recall two weeks later. Barra and other top executives are trying to remake the image of the Detroit-based automaker after last year shedding the final vestiges of U.S. government ownership linked to its 2009 bankruptcy. Barra has apologized for the slow response that resulted in deaths. GM has also hired an outside investigator to probe the delay and has created a vice president position in charge of global vehicle safety, as Barra has sought to shore up GM's image and reinforce the automaker's message that it's recreating itself after its $50 billion taxpayer-funded bailout. Firestone, Ford Upton has said he wants to know why regulations already in place didn't catch the GM problems sooner. Upton led the probe in 2000 over highway deaths linked to Firestone tires on Ford Motor's (F) Explorer sport-utility vehicles. Upton, 60, was the lead House author of the Transportation Recall Enhancement, Accountability and Documentation Act, or Tread Act. The 2000 law boosted communication between carmakers and the government and increased NHTSA's ability to collect data, with automakers required to report more potential threats such as defect claims or lawsuits, and recalls in other nations.

Are You Paying Too Much of America's Taxes?

Let's face it: Nobody likes paying taxes. Those complex forms, the confusing rules ... and then there's the whole awful matter of surrendering a good chunk of your income to the government. Even if you move to one of the states with no income taxes, you'll invariably have to pay the federal government something -- unless you've got a fantastic (or particularly devious) tax attorney.

One of the biggest political battles in recent memory is over whether high earners are paying their "fair share" of the tax burden. Without taxes, the government wouldn't be able to support itself -- but are America's wealthiest taxpayers doing enough to support the government? Is it fair that some groups pay less than others? Should the burden shift from one group to another? These are all difficult questions for anyone to answer, but you'll hopefully find enough information here to at least come closer to an answer -- and if you've already found your answer, you might find a reason to change your mind.

First, let's take a look at how important your taxes are to the federal government, based on the current year's revenue projections from the White House budget:

Where Does the Government's Funding Come From? | Create infographics

Individual income taxes are the bulk of the U.S. government's revenue. In fact, when you consider all the taxes that rely on income but don't count as a direct income tax, the working American supports by far the largest part of federal spending:

Income and Everything Else | Create infographics

But not all taxpayers are taxed equally. Let's see how much different taxpayers at different income levels are paying relative to their share of America's paycheck pie. Don't forget to click on both buttons in the chart to see the difference between each group's share of income and its share of taxes:

Who Earns, Who Pays? | Infographics

But how much money do you really need to make each year to reach these tax brackets? The Urban-Brookings Tax Policy Center broke down just what it took to get into various tax brackets in 2011. Based on their numbers, and the effective average tax rate of each bracket, we can get some idea of how much might be left over for you:

Tax Bracket

Income Cutoff*

Effective Tax Rate

What's Left Over?

Top 1%	$506,553	23.4%	$388,020
2nd-5th percentile	$200,026	17.2%	$165,622
6th-10th percentile	$154,131	12%	$135,635
11th-25th percentile	$85,811	8.7%	$78,345
26th-50th percentile	$42,327	6%	$39,787
Bottom 50%**	$19,375	2.4%	$18,910

Sources: Urban-Brookings Tax Policy Center and The Tax Foundation.
*Includes all filing types.
**75th percentile used (bottom percentile is effectively zero income).

While high-earning taxpayers will have a larger chunk taken out, they're still left with a much larger chunk of income free and clear. Most higher-income taxpayers make excellent use of this extra income with investments, as more than 90% of the highest 10% of earners maintain a retirement account, and 48% own individual stocks. Contrast that with the poorest 20% of earners, only 11% of whom hold a retirement account and 4% of whom owned any stock.

Of course, this tax picture doesn't fully account for Social Security and Medicare taxes. What would a taxpayer in these brackets have to pay for these two mandatory programs, and how much would really be left over? We'll be calculating this on the assumption that the taxpayer isn't self-employed, which would double their payroll tax rates:

Tax Bracket

Pre-Payroll Tax Income

Payroll Taxes**

What's Really Left Over?

Top 1%	$388,020	$14,394	$373,626
2nd-5th percentile	$165,622	$9,949	$155,673
6th-10th percentile	$135,635	$9,284	$126,351
11th-25th percentile	$78,345	$5,993	$72,352
26th-50th percentile	$39,787	$1,037	$38,750
Bottom 50%^	$18,910	$475	$18,435

Sources: Urban-Brookings Tax Policy Center and The Tax Foundation.
*Includes all filing types.
**Social Security payroll tax has an income ceiling of $113,700.
^75th percentile used (bottom percentile is effectively zero income).

Because of the Social Security tax ceiling, taxpayers around the 10th percentile of income feel the payroll tax weight the most -- as a percentage of gross income, a 10th-percentile taxpayer would wind up paying twice as much in payroll taxes as someone in the top 1%.

Now that we've got an idea of who pays, let's see what, exactly, they're paying for.

U.S. Federal Budget | Infographics

There are two huge categories in the federal budget that don't get labeled very clearly. Most of the undefined "mandatory spending" represents other forms of income security, such as unemployment compensation, the supplemental nutrition assistance program (SNAP), and the like. Veterans' benefits are also part of this category. Non-defense discretionary spending is pretty broad, but its major expenditures can be broken down in a relatively straightforward way. Here's how Brookings fellow Isabel Sawhill analyzes it:

I estimate that out of the total nondefense domestic discretionary spending in 2012, 44% was for competitiveness purposes (mostly education, training, and transportation), another 12% was for low-income programs, 13% was for public safety and disaster relief, and 11% was for veterans. The remainder ... is only 4% of total federal spending. ... [M]ost of it is what I would call "overhead" -- salaries and office space for the people who run the government, administer the laws, promulgate and enforce the regulations, prepare Social Security checks, monitor fraud, respond to Congressional and citizen requests, and so forth. Even relatively efficient organizations have overhead rates that are as high or higher than 4%.

The difference between what the government spends and what it takes in is projected to be $973 billion this year. Social Security, Medicare, and Medicaid will have a shortfall of $703 billion -- much of which is due to Medicaid, which doesn't get its own payroll tax. There are a number of ways to handle the Social Security shortfall, but even the strongest efforts at reform only seem capable of closing the gap by more than $100 billion. What could we do to get rid of that awful deficit? Don't forget to click every button in the following chart:

How Can We Reduce the Deficit? | Create infographics

None of these quick-and-dirty fixes comes close to solving the problem, except for a broad 20% spending cut -- and the impact of that reduction in spending would probably cause tax revenue to shrivel. You can't take more than $700 billion out of the economy all at once without causing a whole lot of problems. But let's say your taxes suddenly increased by 10% (not your tax rate, just the total amount of income taxes you paid). Someone in the top 1% would be paying nearly $12,000 more but would still have more than $360,000 in net after-tax income. Someone just edging his or her way into the top half of the income scale would wind up paying about $250 more -- but that person's total after-tax income would only be a tenth as much as the top one-percenter.

It's not quite as easy as saying "I should pay less" or "they should pay more." There are many different ways that the government might solve the deficit problem, or at least get closer to it. Most of these methods, unfortunately, will probably involve some manner of higher taxes. Should we expect everyone to pay more, or are some people paying too much already?

Making the right financial decisions today makes a world of difference in your golden years, but with most people chronically under-saving for retirement, it's clear not enough is being done. Don't make the same mistakes as the masses. Learn about The Shocking Can't-Miss Truth About Your Retirement. It won't cost you a thing, but don't wait, because your free report won't be available forever.

Why I Finally Added 3D Systems to My Portfolio

Last week, I finally decided to purchase my first shares of additive manufacturing specialist 3D Systems (NYSE: DDD  )  for my personal portfolio.

It certainly wasn't a hasty decision; I've kept the company in my sights for the better part of the last two years, and even initiated an outperform CAPScall on the stock last September.

While that call has outperformed the broader market by more than 12% so far, those of you who've kept track probably know 3D Systems has taken investors on one heck of a ride since then:

DDD data by YCharts

So why did I finally take the plunge? It surely wasn't the valuation, especially considering 3D Systems was trading around 70 times trailing earnings even after falling more than 30% from the 52-week-high it had set less than three months ago. Though that pullback admittedly made my decision a little easier, it merely brought the price down from "absurd" to something closer to "terribly expensive." Still, the stock looks much more palatable now that shares are trading at a much more respectable 24 times forward earnings estimates.

This, in part, highlights the fact that the real allure of 3D Systems lies in its future ability to play a central role in redefining manufacturing as we know it. Even so, many prospective investors remain skeptical as truly wide-scale adoption currently seems out of reach given 3-D printing's relatively limited consumer utility.

On one hand, I suppose you can't blame them, since many 3-D printed products find their place behind the scenes in niche markets like medical implants and custom parts for motorcycles, cars, and the aerospace industry.

To be sure, 3D Systems is one of only a few companies beginning to place significantly more focus on the consumer market with its Cube line of desktop printers. However, the devices are limited to using just two types of plastic printing materials, and they've only recently graduated to printing in up to three colors:

 

3D Systems' CubeX Trio personal printer. Source: 3D Systems

Baby steps in 3-D printing
Big whoop, right? It's nice to see a change from the same old monochrome trinkets, but why should anyone be excited about a gimmicky hobbyist printer which starts at around $1,300 and can only let us make trinkets?

To answer that question, remember what our fellow Fool Isaac Pino reminded us a few weeks ago: high-end production 3-D printers from companies like 3D Systems, Stratasys (NASDAQ: SSYS  ) , and ExOne (NASDAQ: XONE  ) are capable of using dozens of materials to print infinitely more complicated items including shoes, saws, guitar bodies, and other functioning tools with moving parts. Heck, 3-D bioprinting specialist Organovo (NYSEMKT: ONVO  ) is currently working feverishly on perfecting the process of designing and creating functional human tissue which -- putting inevitable regulatory hurdles for using the technology aside -- could obviously change the health care world as we know it.

Then there's iRobot (NASDAQ: IRBT  ) , which filed a patent recently for what it's calling a Robotic Fabricator, or a 3-D printer which can print and assemble a robot without the need for human interaction. While we likely won't see this awesome invention implemented anytime soon, it also serves as another reminder of the industry's potential.

Now 3D Systems isn't directly involved in every one of the above-mentioned innovations, but remember that the steam propelling additive manufacturing in general has been building for decades. And 3D Systems, for its part, boasts the most comprehensive portfolio of 3-D printing solutions out of any other company, largely thanks to multiple acquisitions over the last few years.

Foolish final thoughts
This doesn't mean 3D Systems will be the only company to benefit in the space. To the contrary, I also own shares of iRobot and fully intend to add Stratasys to my portfolio down the road.

In the end, I'm convinced its only a matter of time until 3-D printing solidifies its place as a permanent fixture in our everyday lives. Unless some miraculous unforeseen event manages to change my opinion, I plan on holding shares of 3D Systems in my portfolio for decades to come.

If you'd still like to learn more about 3D Systems to help you decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell the stock today. To start reading, simply click here now for instant access.

Top 5 Up And Coming Companies To Invest In 2014

Today, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) closed higher by 138 points, or 0.91%, and now sits at 15,318. The move higher came as the Federal Reserve began its two-day meeting in which the fate of its stimulus programs is up for debate. Most market participants are figuring that the central bank's bond-buying programs will remain in place with no changes -- hence why the markets have risen the past three days -- but we won't know if those guesses are correct until tomorrow. And that unknown and uncertainty have wreaked havoc on the markets for the past six days, sending the Dow lower by more than 100 points for the first three days and now higher by more than 100 points for the last three sessions.

The Dow's move higher today helped raise nearly all ships, as only two (Microsoft and Merck) of its 30 components ended the trading session in the red while a number of the 28 other stocks increased by more than 1%. Let's take a look at a few of the big winners.

Top 5 Up And Coming Companies To Invest In 2014: Kinder Morgan Management LLC (KMR)

Kinder Morgan Management, LLC is a limited partner in Kinder Morgan Energy Partners, L.P (KMP), and manages and controls its business and affairs pursuant to a delegation of control agreement. Kinder Morgan G.P., Inc., of which Kinder Morgan, Inc. indirectly owns all of the outstanding common equity, is the general partner of Kinder Morgan Energy Partners, L.P. (KMP). Kinder Morgan G.P., Inc., pursuant to a delegation of control agreement among the Company, Kinder Morgan G.P., Inc. and KMP, has delegated to the Company, to the fullest extent permitted under Delaware law and KMP�� limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to the general partner�� right to approve specified actions.

KPM is a pipeline limited partnerships in the United States. KMP owns an investment in or operates approximately 28,000 miles of pipelines and 180 terminals. Its pipelines transport products, such as natural gas, crude oil, gasoline, and CO2, and its terminals store petroleum products and chemicals and handle materials like coal. Almost all of Kinder Morgan assets are owned by KMP, KMP operates in five business segments : Natural Gas Pipelines, Products Pipelines, CO2, Terminals and Kinder Morgan Canada.

Kinder Morgan is a transporter and marketer of carbon dioxide in North America. It delivers approximately 1.3 billion cubic feet per day of CO2 through about 1,300 miles of pipelines. It is an oil producer in Texas, producing over 55,000 barrels of oil per day at the SACROC Unit and the Yates Field in the Permian Basin. In addition to CO2 pipelines and oil producing fields, this business segment owns interests in and operates CO2 source fields, natural gas and gasoline processing plants, and a crude oil pipeline. Kinder Morgan owns and operates approximately 24,000 miles of gas pipelines in the Rocky Mountains, the Midwest and Texas. Through its Products Pipelines business unit, it transports over two million barre! ls per day of gasoline, jet fuel, diesel, natural gas liquids and other fuels through more than 8,000 miles of pipelines. The Company also has approximately 50 liquids terminals in this business segment that store fuels and offer blending services for ethanol and other products.

Kinder Morgan have more than 180 terminals that store petroleum products and chemicals, and handle bulk materials like coal, petroleum coke and steel products. Kinder Morgan operates a number of pipeline systems and terminal facilities in Canada including the Trans Mountain pipeline, the Express and Platte pipelines, the Cochin pipeline, the Puget Sound and the Trans Mountain Jet Fuel pipelines, the Westridge marine terminal, the Vancouver Wharves terminal in British Columbia and the North Forty terminal in Edmonton, Alberta.

Advisors' Opinion:

• [By Aaron Levitt]

  For investors, the recent drop in all three shares — along with Kinder Morgan Management LLC (KMR) �� have put them all near their 52-week lows and at some of the highest dividend yields not seen in years. At these prices, you��e still getting strong dividend growth — about 5% for KMI — along with the chance to own the largest pipeline network in North America.

• [By Dimitra DeFotis]

  Kinder Morgan’s corporate structure is convoluted.�Kinder Morgan� is the general partner, which reaps distributions from underlying businesses. It pays a 4.2% yield. �Kinder Morgan Energy Partners,�the main pipeline MLP enterprise, �pays a 6.5% yield in the form of a cash distribution like most MLPs. �Kinder Morgan Management�(KMR) was created to pay distributions in shares given the tax-and-accounting headaches of MLPs. But KMR still offers tax deferrals. Following an acquisition, Kinder also controls�El Paso Pipeline Partners�(EPB), whose yield is 5.7%. Kinder’s chief financial officer said that the enterprises could be combined at some point. Post from the industry’s biggest conference in May�here.

• [By Dan Caplinger]

  Kinder Morgan (NYSE: KMI  ) will release its quarterly report on Wednesday, and investors have high expectations for growth from the company. With its ownership interest in Kinder Morgan Energy Partners (NYSE: KMP  ) and Kinder Morgan Management (NYSE: KMR  ) , Kinder Morgan continues to take advantage of the need for energy producers to transport their oil and gas to market.

• [By Albert Alfonso]

  (click to enlarge)
  Kinder Morgan Energy Partners is part of the Kinder Morgan family of companies with a combined enterprise value of over $115B. Kinder Morgan, Inc (KMI) is Kinder Morgan Energy Partners' general partner and has incentive distribution rights and owns about 10% of the partnership. Another way to own Kinder Morgan Energy Partners is via Kinder Morgan Management (KMR), whose shares are pari passu with Kinder Morgan Energy Partners and has an equal distribution but pays its dividend in additional shares instead of cash. This in effects acts as a dividend reinvest program.

Top 5 Up And Coming Companies To Invest In 2014: James River Coal Company(JRCC)

James River Coal Company, through its subsidiaries, engages in mining, processing, and selling thermal and metallurgical coal in eastern Kentucky, southern West Virginia, and southern Indiana. It conducts its mining operations in Bell County, Bledsoe, Blue Diamond- Buckeye, Blue Diamond-Leatherwood, Hampden, McCoy Elkhorn, Laurel Mountain, and Triad mining complexes. As of December 31, 2011, the company had 8 mining complexes, including 25 underground mines, 12 surface mines, and 14 preparation plants, as well as controlled approximately 362.8 million tons of proven and probable coal reserves in Central Appalachia and Midwest regions. It sells its coal to utility, steel, and industrial markets. The company was founded in 1988 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

• [By Dan Caplinger]

  James River Coal (NASDAQ: JRCC  ) will release its quarterly report on Friday, and the hard-hit coal producer doesn't look likely to escape the big losses that have plagued it for a long time. With analysts seeing James River Coal earnings stuck in the red for the foreseeable future, investors have to wonder how much longer the company can sustain ongoing losses of this magnitude.

Top 5 Biotech Stocks To Buy For 2014: Barclays PLC (GRN)

Barclays PLC (Barclays) is a global financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. The Company�� operations include its overseas offices, subsidiaries and associates. The Company operates in eight segments: UK Retail and Business Banking (UK RBB), Europe Retail and Business Banking (Europe RBB), Africa Retail and Business Banking (Africa RBB), Barclaycard, Barclays Investment Bank, Barclays Corporate Banking, Wealth and Investment Management, and Head Office and Other Operations. Advisors' Opinion:

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iPath Global Carbon ETN (NYSEMKT: GRN  ) has received the dreaded one-star ranking.

• [By Todd Shriber, ETF Professor]

  Big winners (up at least 5%): VelocityShares 3x Inverse Natural Gas ETN (NYSE: DGAZ), iPath Global Carbon ETN (NYSE: GRN), ProShares UltraShort DJ-UBS Natural Gas (NYSE: KOLD) and the ProShares MSCI UltraShort Mexico (NYSE: SMK).

• [By Todd Shriber, ETF Professor]

  Big losers (down at least 5%): Direxion Daily Gold Miners Bear 3X Shares (NYSE: DUST), iPath Global Carbon ETN (NYSE: GRN), iShares MSCI Emerging Markets Value ETF (NYSE: EVAL) and the PureFunds ISE Mining Service ETF (NYSE: MSXX).

Top 5 Up And Coming Companies To Invest In 2014: ICU Medical Inc.(ICUI)

ICU Medical, Inc. engages in the development, manufacture, and sale of medical technologies used in infusion therapy, oncology, and critical care applications. The company?s product line includes custom infusion systems, closed delivery systems for hazardous drugs, needleless infusion connectors, catheters, and cardiac monitoring systems. Its products enhance patient outcomes by preventing bloodstream infections, protecting healthcare workers and patients from exposure to infectious diseases or hazardous drugs, and monitoring the cardiac output of critical care patients. The company offers intravenous (I.V.) therapy lines consisting of a tube running from a bottle or plastic bag containing an I.V. solution to a catheter inserted in a patient?s vein for use in hospitals and ambulatory clinics; CLAVE product, a needleless I.V. connection device, which would be used with conventional peripheral or central vascular access systems for venous and arterial applications; custom infusion sets. It also provides critical care products that monitor vital signs and specific physiological functions of key organ systems, including disposable pressure-sensing devices, blood sampling systems, angiography kits, sensory catheters, pulmonary artery thermodilution catheters, and multi-lumen central venous catheters. In addition, the company provides TEGO for use in dialysis; a line of oncology products, including Spiros male luer connector device; the Genie vial access device; and custom I.V sets and ancillary products for chemotherapy. ICU Medical, Inc. sells its products to medical product manufacturers and independent medical supply distributors, as well as directly to the end customers worldwide. The company was founded in 1984 and is headquartered in San Clemente, California.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of ICU Medical (NASDAQ: ICUI  ) �-- a medical device maker in the fields of infusion therapy, oncology, and critical care -- soared as much as 17% on a report that the company could be exploring a sale.

• [By Seth Jayson]

  ICU Medical (Nasdaq: ICUI  ) is expected to report Q2 earnings around July 16. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ICU Medical's revenues will increase 8.0% and EPS will expand 4.8%.

• [By CRWE]

  ICU Medical, Inc. (Nasdaq:ICUI), a leader in the development, manufacture and sale of innovative medical devices used in infusion therapy, oncology and critical care applications, reported that Company management will be presenting at the UBS Global Life Sciences Conference to be held on September 19-20, 2012, at the Grand Hyatt Hotel, New York.

Top 5 Up And Coming Companies To Invest In 2014: STEC Inc.(STEC)

STEC, Inc. designs, manufactures, and markets enterprise-class flash solid-state drives (SSDs) for use in high-performance storage and server systems. Its solid-state drive products include ZeusIOPS SSDs, which provide enterprise-class data storage solutions; and MACH-class SSDs that are small form factor storage solutions for mission-critical systems in various industries. The company?s flash cards and flash module products comprise ATA PC Cards for equipment requiring standard form factors and moderate capacities, such as data recorders, avionics systems, and telecommunication applications; CompactFlash products, which provide interoperability with systems based on the PC Card ATA standard by using a passive adapter; flash modules; secure digital memory cards; USB flash drives; and single chip drives. It also offers dynamic random access memory (DRAM) products, which include dual in-line memory modules (DIMMs), small-outline DIMMs, mini-registered DIMMs, very low profile registered DIMMs, and fully-buffered DIMMs for computing, communications, and industrial applications. In addition, the company provides integrated circuit tower stacked components for thin small outline package and ball grid array semiconductor packages for use on memory modules and within high capacity flash products; DRAM modules with stacked components for use primarily in high-performance servers, workstations, switches and routers, and other custom systems; and flash products with stacked components. It sells its products through direct sales force and original equipment manufacturer distributors in the United States and internationally. STEC, Inc. was founded in 1990 and is headquartered in Santa Ana, California.

Advisors' Opinion:

• [By Tim Brugger]

  HGST, a wholly owned subsidiary of Western Digital (NASDAQ: WDC  ) , has entered into an agreement whereby HGST will acquire a 100% ownership stake in sTec (NASDAQ: STEC  ) in an all-cash transaction valued at $340 million, equal to $6.85 a share, the companies announced today.

Point: Here Are 17 Million Good Reasons to Raise the Minimum Wage

Getty ImagesSen. Elizabeth Warren, (D-Mass.) I have 17 million reasons for wanting to increase the minimum wage. Yes, 17 million -- the number of children whose lives would be a little more secure if their moms and dads earned at least $10.10 an hour. When I was in junior high, my daddy had a heart attack. He was home for a while, the medical bills piled up, and we lost our family station wagon. So my mother did what she had to do: She went to work answering the phones at Sears. The job paid only minimum wage, but it was enough to make sure we could keep our home. No one should work full time and live in poverty. In 1968, the minimum wage was high enough to keep a family of three out of poverty. In 1980, the minimum wage was at least high enough to keep a family of two out of poverty. Today, the minimum wage leaves a working parent with one child in poverty. This is fundamentally wrong. For a long time, as our country got richer, both investors and workers made more money. The pie got bigger and we all got a little more. But now the benefits go to those at the top. If minimum wage had kept up with increases in productivity, it would be $22 an hour today. But it didn't -- and today millions of hard-working moms and dads work full-time and still live in poverty. Who would benefit from a minimum wage increase? The numbers tell the story: 88 percent are adults, and one in four has kids. More than 15 million women would see their pay go up, including 4.8 million working mothers -- more than one-fifth of all working mothers with a child under the age of 18. Raising the minimum wage is good economics. It means that people will have more money to spend, and that helps propel the economy forward and give a much-needed boost to many small businesses. Besides, with a higher minimum wage, fewer people will need to count on food stamps or other kinds of government assistance to feed their families. A higher wage means people can provide more for themselves.

So why have the Republicans refused to budge on the minimum wage? Who are they protecting? Certainly not the families and their 17 million children who would be helped. Who doesn't want an increase in the minimum wage? Businesses that have already made it big don't want any increase in wages that might cut into their profits. The system is rigged in their favor, and they have an army of lawyers and an army of lobbyists to make certain that the system stays tilted their way. Powerful interests might need to be dragged kicking and screaming to raise the minimum wage, but I'm going to keep fighting along with the rest of the Democratic caucus in the U.S. Senate. This is an economic issue, but it is also a moral imperative.

When I was growing up, full-time work would keep your family out of poverty. Now, the game is rigged against working families. It doesn't have to be this way. For more than a generation now, the middle class has been squeezed, chipped at, and hammered. A higher minimum wage will help build a stronger foundation to grow America's middle class. Raising the minimum wage is one way we can start to level the playing field for working families. We should be honoring and rewarding work, and we should be making sure that families who work full time have the chance to raise themselves out of poverty. It's time to increase the minimum wage for hardworking men and women across the country. When I think about the minimum wage, I think about my mom and what she did for us. And then I think about the 17 million kids whose moms or dads could do more for their families, if they just had a fighting chance.

A Perfect Trade for Increased Volatility: TVIX

DELAFIELD, Wis. (Stockpickr) -- U.S. equities are under selling pressure today, with the Dow Jones off by more than 50 points and the S&P 500 down by 13 points. The tech-heavy Nasdaq is taking the brunt of the selling, plunging by a whopping 70 points.

>>5 Toxic Stocks to Sell Now

It's been a long time since the market has had a healthy correction. When you look at the chart for the SPDR S&P 500 ETF Trust (SPY), you'll notice that we now have a failed breakout from the recent test of the SPY's highs. The selling for stocks could easily pick up the pace to the downside if the SPY takes out its 50-day moving average of $182.59 a share with high volume soon.

The PowerShares QQQ (QQQ) which represents a basket of the biggest Nasdaq stocks, has also failed to take out its recent highs and is now breaking below its 50-day moving average of $88.19 a share with heavy downside volume. The iShares Russell 2000 (IWM), a popular ETF to follow the small-cap market, has also failed to take out its recent highs and is breaking down here. The IWM is quickly approaching its 50-day moving average of $115.45 a share.

>>5 Stocks Under $10 Set to Soar

Considering that the QQQ has now broken below its 50-day moving average, which is bearish technical price action. The next stop for 50-day breaks could very well be coming for the SPY and the IWM. If that does occur, then we're going to see volatility in the markets pick up dramatically. This could be a good time to look for ways to play an increase in volatility if U.S. equities are finally getting ready for the much-needed correction. This could be a meaningful correction since we haven't had one in a very long time.

If volatility is now getting set to spike dramatically higher, then one trading vehicle that could be a great way to play this is with the VelocityShares Daily 2x VIX (TVIX).

This ETF was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. The TVIX is a more highly leveraged way to play a spike in volatility, but this by no means is a trading vehicle you invest in for the long-term. This is purely something you use if you think volatility can spike dramatically in the short-term, which could lead to some quick profits. If the markets want to correct in a meaningful way, then you can use the TVIX for a trade since volatility and fear should spike notably in that environment.

It's hard to apply straight technical analysis to leveraged ETFs and especially to VIX-based ETFs. That being said, the chart for the TVIX has shown over the last month and change a bottoming pattern, with shares forming a triple bottom chart pattern at $6.62, $6.95 and $7.05 a share. As long as that bottom holds, then we have a technical situation here that could be setting the TVIX up for a major breakout trade. If that breakout does trigger, then the TVIX has a great chance to spike sharply higher.

>>5 Stocks Ready for Breakouts

Traders should now look for long-biased trades in TVIX as long as its trending above those major support zones at around $7.05 to $6.62 a share and then once it breaks out above some key near-term overhead resistance levels at $8 to $8.68 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 9.04 million shares. If that breakout gets underway soon, then TVIX could easily hit $11 to $12 a share.

Keep in mind that we're going to need some elevated fear to creep back into the markets and all of those major indices must take out their 50-day moving averages in order for volatility to dramatically spike and give the TVIX some momentum to send it significantly higher from current levels. It's key that we get closes below those 50-day moving averages as well, not just intraday breaks. Also, if we get any rebound rallies in equities, look for those rallies to fail at lower highs for potential entry points into the TVIX for the coming correction.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

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>>5 Big Trade Signals After Yellen's Surprise Message

>>Hedge Funds Are Selling These 5 Stocks -- Should You?

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.

Gym faces lawsuit over Muslim head covering

ALBUQUERQUE, N.M. (AP) — A gym in Albuquerque refused to let a Muslim woman wear her religious head covering when she tried to work out, according to a new lawsuit against the company.

An attorney for Tarainia McDaniel, 37, recently filed the lawsuit in a New Mexico district court stemming from a 2011 clash at a Planet Fitness that prevented McDaniel from using the gym while wearing the head covering, even though court documents said another Planet Fitness in the area had previously let her do so, theAlbuquerque Journal reports.

McDaniel joined the New Hampshire-based gym chain Planet Fitness in Albuquerque on a two-year contract and later transferred to another location, according to the lawsuit.

On Oct. 3, 2011, she was turned away at her new gym and was told the informal head covering didn't meet its dress code, the lawsuit states. The gym had a sign that said "no jeans, work boots, bandanas, skull caps or revealing apparel."

McDaniel said she asked to be allowed to wear the informal head covering to accommodate her Muslim faith, and she even asked if she should come back wearing a formal head covering known as the hijab, according to the lawsuit.

But the gym denied her requests, the lawsuit states.

Planet Fitness attorney Erika Anderson said the head covering violates the gym's dress-code policy. "My client's position is that they didn't know the head covering was for religious purposes," Anderson said.

Anderson said she could not comment further on pending litigation.

In a statement, the company said gyms take into account members' religious affiliations. "At Planet Fitness, our policy is, and has always been, that members are allowed to wear head scarves for religious reasons in our clubs," the company said.

McDaniel's civil lawsuit, filed under the New Mexico Human Rights Act and the Unfair Practices Act, alleges that Planet Fitness illegally based the decision to deny her access upon her religion, or alternatively upon her race — she is Af! rican-American — and that the gym had no legitimate reason to deny her entry.

Planet Fitness, in its formal answer to the claims, denies violations of either the Human Rights Act or Unfair Practices Act. It says McDaniel failed to participate in good faith and that the company has legitimate business reasons for its practice as well as measures to prevent discrimination.

Planet Fitness has run into other controversies about its rules.

The KTVU TV station in Oakland, Calif., reports that a woman on Wednesday was asked to cover up while working out at a Planet Fitness in Richmond, Calif., because her body was too intimidating to others at the gym. A Planet Fitness spokesperson told the station that the company "strives to make everyone feel comfortable" and says the dress code is at the discretion of the staff and manager.

In 2006, Albert Argibay of Beacon, N.Y. was escorted by police officers from a gym for grunting, which is against Planet Fitness' rules for maintaining a non-intimidating atmosphere.

According to McDaniel's deposition, she said the Quran "is pretty specific on covering your hair" and dressing modestly in clothes that fit loosely.

In the deposition, Anderson asked if McDaniel recalled the sign posted at Planet Fitness that said "no jeans, work boots, bandanas, skull caps or revealing apparel."

According to the transcript, McDaniel acknowledged seeing the sign. But she added, "I already (had) made it known before I signed the contract that I covered my hair. I had on (what) I call a head covering. I guess for the sake of the record, they're referring to it as a head covering."

When Anderson asked if she told them she was Muslim, McDaniel replied, "I sure did."

In 2013, a federal appeals court dismissed claims by an Oklahoma Muslim woman who said she was not hired by retailer Abercrombie & Fitch because her headscarf conflicted with the company's dress code. The Equal Employment Opportunity Commission alleged in a lawsuit that Sam! antha Ela! uf, then 17, wasn't hired in 2008 at an Abercrombie store in Tulsa's Woodland Hills Mall because her hijab violated the retailer's "Look Policy."

But the 10th U.S. Circuit Court of Appeals said Elauf never told Abercrombie she needed a religious accommodation, even though she was wearing the headscarf during her interview.

The Ohio-based company changed its policy four years ago. It recently settled similar lawsuits in California.

Housing Starts Fall, But Permits Rebound

Patrick T. Fallon/Bloomberg via Getty Images Housing starts in the U.S. were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction. The 0.2 percent decrease to 907,000 homes at an annualized rate last month followed a revised 909,000 pace in January, figures from the Commerce Department in Washington showed Tuesday. The median estimate in a Bloomberg survey called for a 910,000 rate after a previously reported 880,000 in January. Warmer temperatures, a pickup in demand during the spring selling season and limited housing supply may help fuel further gains in new residential construction. The outlook for the industry later this year depends on whether hiring picks up enough to overcome higher mortgage rates and home prices. "We will see improvement as the year goes on and weather improves," said David Sloan, a senior economist at 4cast in New York and the top-ranked forecaster of starts in the last two years, according to data compiled by Bloomberg. "The pace of increase will be fairly moderate. It suggests we're going to get respectable economic growth, but maybe not a strong acceleration." Estimates of 82 economists surveyed by Bloomberg ranged from 792,000 to 986,000. The February pace was the slowest in four months. Another report showed consumer prices rose 0.1 percent in February for a second month, according to the Labor Department. More than half the increase was due to higher food costs. Stock-index futures held earlier gains after the figures, with the contract on the Standard & Poor's 500 Index maturing in June rising 0.4 percent to 1,857.4 at 8:43 a.m. in New York. Building Permits Permits filed for future projects increased 7.7 percent to a 1.02 million pace in February, the most since October and reflecting a surge in applications for apartment-building construction. One-family home-building permits dropped for a third straight month to the lowest level in a year. The median forecast in the Bloomberg survey called for a 960,000 rate. Work on single-family houses rose 0.3 percent to a 583,000 rate in February from 581,000 the prior month. Construction of multifamily projects such as condominiums and apartment buildings decreased 1.2 percent to an annual rate of 324,000. Two of four regions showed increases in groundbreaking last month, led by the Midwest and South. February ended with its coldest final week since 2003, according to Berwyn, Pennsylvania-based weather data provider Planaytics Inc., The second week of the month was the snowiest such period since 2007. Winter Weather Inclement weather has extended beyond builders. It also kept customers from visiting car dealerships and retailers, weighing on sentiment. The University of Michigan's measure of U.S. consumer confidence declined to a four-month low in March, data last week showed. Confidence among U.S. homebuilders rose less than forecast in March, with more builders reporting bad conditions than good. The National Association of Home Builders/Wells Fargo index of builder sentiment climbed to 47 this month from 46 in February, a report from the Washington-based group showed yesterday. Readings below 50 mean more survey respondents signaled poor market conditions. Beyond weather, borrowing costs have increased for buyers. The rate on a 30-year fixed mortgage from Freddie Mac rose to 4.37 percent in the week ended March 13, up from 3.63 percent a year earlier. Homebuilder Hovnanian Enterprises (HOV), which reported a wider loss for its fiscal first quarter as inclement weather extended construction times and slowed demand, sees better times ahead for the industry. 'Temporary Pause' "We believe this is a temporary pause in the industry's recovery," Ara Hovnanian, chief executive officer New Jersey's largest homebuilder, said in a statement on March 5. "Based on the level of housing starts across the country, we continue to believe the homebuilding industry is still in the early stages of recovery." Lean inventories will probably keep builders busy. A report from the Commerce Department last month showed the months' supply of new homes declined to 4.7 in January, the fewest since June, from 5.2 at the end of 2013. Lowe's (LOW), the Mooresville, N.C.-based home-improvement retailer, also remains optimistic about the outlook for the housing industry.

FAA projects growth in more people flying more…

More people will fly more miles each year over the next two decades, according to a Federal Aviation Administration projection released Thursday.

The number of annual passengers will grow 0.8% in 2014, to reach 745 million, according to the FAA. The total will continue to grow to 1.15 billion in 2034, according to the projection.

At the same time, the amount of miles that passengers pay to fly will rise an average of 2.8% a year, to grow a total of 76% over the next two decades, according to the FAA projection.

FAA Administrator Michael Huerta said the agency is working to improve safety through efforts such as shifting air-traffic control from ground-based radar to more precise satellite-based tracking, a project called NextGen.

"With healthy growth projected in air travel, the FAA has a tremendous opportunity to make a major difference in the industry," Huerta said.

Airport executives said the report signaled that more passengers would need more services.

Todd Hauptli, CEO of the American Association of Airport Executives, said the report helped justify a proposed increase in the federal cap on fees that airports charge each passenger for construction projects, to $8.50 from $4.50, and for more Customs and Border Protection officers for international arrivals.

"The forecast data released by FAA today makes abundantly clear that domestic and international aviation traffic growth is a reality that will soon add hundreds of millions of people to already crowded airports and international arrival halls," Hauptli said.

President Obama proposed raising the airport fee to $8, in exchange for removing large airports from a federal grant program. But Congress has been reluctant to raise the fee, which last changed in 2000.

"The aviation forecast is strong and we predict the use of our airports and airplanes will only rise, which is why we are committed to investing in aviation and taking the steps necessary to maintain improvement in the industry," Transport! ation Secretary Anthony Foxx said.

Three Biggest Investment Mistakes

Riley Asset Management's Ned Riley shares what he thinks are the three biggest mistakes that investors make.

TERRY:  I’m Terry Savage from MoneyShow.com.  We’re talking today with Ned Riley of Riley Assistant Management, and before that he was the Senior Chief Investment Strategist for State Street Global Advisors; big, huge firm, so you’ve been around the industry for a while.  I’ve heard you talk about what people do wrong, so give us today the three biggest mistakes investors always make and keep making.

NED:  One is emotion.  They, unfortunately, no matter how many times you tell them don’t sell when things are depressed, don’t buy when everything is just ballooned up and clearly been inflated by the markets.  The biggest mistake is we’re all emotional.  I mean, we are basically living off of the media; we’re living off of the press.  We listen to Wall Street too much to be candid, and unfortunately, that which is being fed to us now is more of a short-term trading orientation rather than longer term.

TERRY:  Let me apply that.  In early 2014, January was just miserable.  What now?  I mean, are we saying well, the market’s too high, we’ve been through 13,000, 14,000, 15,000, 16,000; are we in that inflated time when investors should be taking some profits off the table?

NED:  I don’t think so Terry.  I think this is a secular bull market and secular basically implied somewhere between five and 10 years, and I think this market will head higher over the next four to five years.  It’ll be driven primarily by liquidity in the system.  The public will come back into this market.  They will be selling bonds to buy stocks, which will be another mistake that they had made, but they have enough money available and a very low allocation – two equities – so I think they have to build that up.

TERRY:  All right, so emotions the first big mistake.  Second big mistake?

NED:  not challenging enough.  I am a contrarian by nature, so I have to challenge everything that I hear and see coming out of Wall Street.

TERRY:  So be skeptical.  Third biggest mistake?

NED:  Trying to do it by yourself.  Individuals will try to think that this is a practice that they can do very easily, and I always say to somebody, look it, don’t perform a hot operation on me, because you’re not a skilled heart surgeon.

TERRY:  So get good advice.

NED:  Get good advice, sound advice, and one that’s long term in nature, and not necessarily trading oriented, because trading doesn’t pay off in the long run.

TERRY:  Okay, that is good advice from Ned Riley of Riley Asset Management.  I’m Terry Savage from MoneyShow.com.

Curbing the High Cost of Retirement Medical Care

The cost of medical care continues to rise and to be the wild card in retirement plans. Reports and studies update the estimates of the cost of retirement medical care each year. They show the cost to be high and also very unpredictable for individual retirees and couples. The studies focus on average or median costs. In your planning you have to be aware that individual costs vary greatly because of differences in personal health, geography, and insurance coverage. Your retirement medical costs can be substantially higher or lower than the overall forecasts.

We're talking about out-of-pocket costs, those expenses that aren't covered by Medicare. People on average incur higher medical costs than these estimates, but Medicare picks up some of the costs. These estimates are of what you'll have to pay.

A couple retiring in 2013 and incurring median drug expenses during retirement would need to save $151,000 to have a 50% chance of covering their lifetime costs for prescription drugs only, according to the latest study from the Employee Benefit Research Institute. Those who incur among the highest medicine expenses are likely to need over $220,000. The good news in the report is that the prescription drug expense estimates are lower than last year's because of a reduction in the rate of growth of medical and drug costs.

Remember those estimates are only for prescription drug costs. To have a high probability of paying all non-covered medical costs after age 65, EBRI estimates a couple age 65 today with a high level of medical expenses will need savings of $360,000. (You can see that for the average person prescription drugs is the largest medical expense not covered by Medicare.)

How will these costs be paid? EBRI estimates that Medicare covers about 62% of medical costs for beneficiaries. (I've seen other reports estimate that Medicare pays only about 50% of costs.) Another 13% comes from p! rivate insurance and about 12% is paid by the retirees. The rest is paid by state programs, employer retirement benefits, and other sources.

Of course, there are steps you can take to reduce both the out-of-pocket medical costs and the uncertainty of your exposure to the medical costs.

* Those not already retired should take steps to establish good health habits, including participating in any employment or community wellness programs.

* When you're eligible for a health savings account, take advantage of the option and fund it with the maximum amount each year. Contributions to HSAs are deductible if made by you and excluded from gross income if made by your employer. Earnings on the account compound without taxes, and all amounts withdrawn from the account are tax-free when withdrawn to pay for qualified medical expenses. It's a good way to build a tax-advantaged retirement fund for medical expenses.

* Enroll in Medicare when first eligible. For most of us that's when we turn 65. You pay a penalty for life if you decide later to sign up for Medicare Part B or the Part D Prescription Drug Coverage after your initial enrollment period expires.

* Sign up for Part D Prescription Drug Coverage. This is private insurance that is partially subsidized by the government. Prescription drugs are the largest medical expense for most of those age 65 and older. A good policy reduces your out-of-pocket costs and the uncertainty of how much you'll pay should you have an above-average or catastrophic need for medicine.

When you don't have much need for prescription drugs at the start of retirement, sign up for a barebones, low-cost policy. You always can switch to a more robust policy during a future open enrollment period if you need it and will avoid the premium penalty for signing up for Part D late.

* Consider a Medicare Supplement policy. When you're in traditional Medicare (not Medicare Advantage), there are a number of deductibles, copayments, and coverage g! aps. A Me! digap policy will cover some of them and reduce your uncertainty. There are 10 different Medigap policies to choose from, so you can look for the right trade off for you between premiums and better coverage.

* Shop around. I can't stress this enough. Recent studies have found that premiums for identical coverage for the same person can vary by 100%. There are people paying twice as much for Part D and Medigap policies than they should because they didn't shop around. The insurance industry counts on a combination of inertia and people disliking insurance shopping. It costs people a lot of money.

* Have flexibility. A retirement plan needs a cushion and some flexibility because of the uncertainty of medical expenses. You should minimize fixed expenses so that spending changes can be made in case uncovered medical expenses arise.

* Plan for long-term care. Medicare won't cover much of any long-term expenses you incur, and most of you won't qualify for Medicaid. You probably don't want to rely on Medicaid for long-term coverage anyway, because the level of care by facilities accepting primarily Medicaid usually is considered to be of lower quality than at others.

I recommend most people plan on using several sources to pay for LTC. Part of the cost can be funded from savings. There probably are expenses you incur now that you won't if you need LTC, and that money also can be used to help pay for LTC.

To pay for the bulk of the coverage, you should consider obtaining either a stand alone LTC policy or an annuity or life insurance policy with a long-term care rider. Or you can combine both types of coverage. Tapping the equity in your home through either a reverse mortgage or a sale can be a good way to plan for extended long-term care expenses. By using all these tools, you'll have a solid plan to cover any LTC you need.

I've covered all these strategies and more in detail in past issues of Retirement Watch. You also can find strategies in my books, includ! ing Perso! nal Finance for Seniors for Dummies.

5 Stocks Insiders Love Right Now

DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.

>>5 Stocks Set to Soar on Bullish Earnings

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

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The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.

At the end of the day, it's large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.

>>3 Stocks Under $10 Making Big Moves

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look five stocks whose insiders have been doing some big buying per SEC filings.

Ameresco

One industrial goods player that insiders are jumping into here is Ameresco (AMRC), which provides energy efficiency solutions for facilities in the U.S., Canada and Europe. Insiders are buying this stock into notable weakness, since shares are down by 19% so far in 2014.

Ameresco has a market cap of $355 million and an enterprise value of $443 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 154 and a forward price-to-earnings of 27.50. Its estimated growth rate for this year is 260%, and for next year it's pegged at 55.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $17.17 million and its total debt is $116.20 million.

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The CEO just bought 65,470 shares, or about $491,000 worth of stock, at $7.50 per share. That same CEO also just bought 166,130 shares, or about $1.28 million worth of stock, at $7.75 per share.

From a technical perspective, AMRC is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply from around $9.75 to $8 a share with heavy downside volume. This stock has continued to trend lower following that gap with shares hitting a recent low of $7.41 a share. That move has pushed shares of AMRC into oversold territory, since its current relative strength index reading is 27.27. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.

If you're bullish on AMRC, then I would look for long-biased trades as long as this stock is trending above its recent low of $7.41 and then once breaks out above some near-term overhead resistance levels at $7.88 to $8.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 126,932 shares. If that breakout gets underway soon, then AMRC will set up to re-fill some of its previous gap-down-day zone that started at $9.75 a share.

Visa

Another credit services player that insiders are active in here is Visa (V), which is a payments technology company, operates as a retail electronic payments network worldwide. Insiders are buying this stock into decent strength, since shares are up 16% over the last six months.

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Visa has a market cap of $143 billion and an enterprise value of $135 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 28.79 and a forward price-to-earnings of 21.72. Its estimated growth rate for this year 17%, and for next year it's pegged at 17.2%. This is a cash-rich company, since the total cash position on its balance sheet is $4.09 billion and its total debt is zero. This stock currently sports a dividend yield of 0.70%.

A director just bought 1,575 shares, or about $350,000 worth of stock, at $222.70 per share.

From a technical perspective, V is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom chart pattern at $219.59 to $218.56 a share. Following that bottom, shares of V have spiked higher back above its 50-day moving average of $222.94 a share That spike is starting to push shares of V within range of triggering a big breakout trade.

If you're in the bull camp on V, then I would look for long-biased trades as long as this stock is trending above its 50-day at $222.94 or above support at $218.56 and then once it breaks out above some near-term overhead resistance levels at $228.39 to $228.48 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 3.06 million shares. If that breakout materializes soon, then V will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $235.08 a share.

MDC Partners

One advertising and marketing player that insiders are warming up to here is MDC Partners (MDCA), which provides marketing, activation and communications and marketing solutions and services worldwide. Insiders are buying this stock into solid strength, since shares are up 37% over the last six months.

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MDC Partners has a market cap of $1.17 billion and an enterprise value of $1.63 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 27.61. Its estimated growth rate for this year is 129.4%, and for next year it's pegged at 35.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $102.01 million and its total debt is $665.13 million. This stock currently sports a dividend yield of 3.4%.

The CEO just bought 30,000 shares, or about $636,000 worth of stock, at $21.48 per share. The vice president also just bought 10,000 shares, or about $214,000 worth of stock, at $21.22 per share.

From a technical perspective, MDCA is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $20.55 to its recent high of $23.37 a share. During that move, shares of MDCA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MDCA within range of triggering a near-term breakout trade.

If you're bullish on MDCA, then I would look for long-biased trades as long as this stock is trending above support at $22 or at $21 and then once it breaks out above some near-term overhead resistance levels at $23.37 to its 50-day moving average of $23.90 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 218,542 shares. If that breakout kicks off soon, then MDCA will set up to re-test or possibly take out its next major overhead resistance levels $25.99 to its 52-week high at $26.62 a share.

Ladenburg Thalmann Financial Services

One financial player that insiders are loading up on here is Ladenburg Thalmann Financial Services (LTS), which provides brokerage and advisory, investment banking, equity research, institutional sales and trading, asset management and trust services. Insiders are buying this stock into major strength, since shares are up 80% over the last six months.

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Ladenburg Thalmann Financial Services has a market cap of $573 million and an enterprise value of $553 million. This stock trades at reasonable valuation, with a price-to-sales of 0.73 and a price-to-book of 2.94. Its estimated growth rate for this year is 200%. This is not a cash-rich company, since the total cash position on its balance sheet is $55.12 million and its total debt is $64.65 million.

A director just bought 100,000 shares, or about $298.430 worth of stock, at $2.98 per share.

From a technical perspective, LTS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last two months, with shares moving higher from its low of $2.32 to its intraday high of $3.20 a share. During that uptrend, shares of LTS have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LTS within range of triggering a big breakout trade.

If you're bullish on LTS, then I would look for long-biased trades as long as this stock is trending above its 50-day moving average at $2.76 or above more support at $2.68 and then once it breaks out above some key overhead resistance levels at $3.31 a share to its 52-week high at $3.54 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 346,440 shares. If that breakout hits soon, then LTS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $4 to $4.50 a share, or even $5 a share.

Dresser-Rand

One final stock with some large insider buying is Dresser-Rand (DRC), which designs, manufactures, sells and services rotating equipment solutions to the oil, gas, chemical, petrochemical, process, power generation, military and other industries worldwide. Insiders are buying this stock into modest weakness, since shares are off by 11% over the last six months.

Dresser-Rand has a market cap of $4.2 billion and an enterprise value of $5.2 billion This stock trades at a reasonable valuation, with a trailing price-to-earnings of 25.57 and a forward price-to-earnings of 17.07. Its estimated growth rate for this year is 10.7%, and for next year it's pegged at 21.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $190.40 million and its total debt is $1.29 billion.

The CEO just bought 18,400 shares, or about $1 million worth of stock, at $54.75 per share.
From a technical perspective, DRC is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped up sharply from around $54 to $59.70 a share with strong volume. Following that gap, shares of DRC sold off and filled that gap back to it its recent low of $54.10 a share. Shares of DRC have now started to bounce off that $54.10 low and it's starting to move within range of triggering a near-term breakout trade.

If you're bullish on DRC, then look for long-biased trades as long as this stock is trending above key support at $54 and then once it breaks out above some near-term overhead resistance at $56.39 to its 50-day moving average at $56.93 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.03 million shares. If that breakout triggers soon, then DRC will set up to re-test or possibly take out its next major overhead resistance levels at $59 to its 200-day moving average of $59.72 a share. Any high-volume move above its 200-day and $60.50 will then give DRC a chance to tag $63 to $64 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Stocks Under $10 to Trade for Breakouts

>>2 Stocks Spiking on Unusual Volume

>>5 Big Health Care Stocks to Trade for Gains

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.

13 Lucky Stocks To Buy On Dips

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Not again” is the sentiment I’m hearing from investors today.So if you’re feeling about the same, take heart that you’re not alone. Last Thursday marked the steepest drop in U.S. stocks in over a month, placing the S&P 500 in the red for 2014 so far.

The drops were driven by two primary factors: (1) Worries about Russia’s posturing over Ukraine and its Crimea region and (2) Weaker-than-forecast data from China for January and February. In both cases, Wall Street is simply reacting emotionally.

I know it can be worrisome (and even difficult) to experience a market day like that. If you’re feeling nervous, the best thing you can do is sit tight in your stocks. This is not the time to make a knee-jerk reaction, like selling out of your positions. That’s the fastest way to ensure you lose. Instead, here’s what you can do:

If you subscribe to any of my newsletters, you’re already on the right track. I test and retest all of my formulas and data daily in order to recommend only the top companies in anticipation that the market would begin to narrow and have emotional swings just like we experienced today.

I consider my Buy List stocks to be the best on the market, whether you’re looking to invest in blue chips, up-and-comers, or emerging market plays. If you’re not currently a subscriber or are invested in a stock that’s not on any of my Buy Lists, not to worry. My free Portfolio Grader stock screening tool rates some 5,000 stocks by fundamental health and quantitative strength and is a great resource during times of uncertainty.

So if you’re feeling nervous, run all of your positions through Portfolio Grader and take note of their letter grades. If one is an A-, B-, or C-rated stock, you should be in good shape to continue holding it. If it is a D- or F-rated stock, you should consider selling that position into strength. Like I said, I never advocate selling in a panic, but you can wait for the market to bounce back before taking profits.

If you’re more risk tolerant, a drop is a buying opportunity. What we saw was a kneejerk reaction to news that doesn’t really affect most top companies combined with profit taking. So I’m going to go out there and take this opportunity to pick up premium stocks on the cheap and I advise you do the same.

To get you started, here are 13 of the top-rated Portfolio Grader stocks that pulled back last week:

After Market: Stocks Finish Wild Week with a Whimper

Stocks bounced in and out of the plus column before picking a direction on Friday. Unfortunately, the path chosen was down again, though not far. The Dow Jones industrial average (^DJI) extended its losing streak to five days, dropping another 43 points. The Standard & Poor's 500 (^GSPC) fell 5 and the Nasdaq composite (^IXIC) lost 15 points. In all, each of the major averages lost in the neighborhood of a quarter of a percent Friday, and all lost ground for the week. Meanwhile, another once-popular teen retailer took a tumble. Shares of Aeropostale (ARO) tumbled 20 percent after the retailer posted a wider than expected quarterly loss. The stock is now down 60 percent over the past year. But investors were buying some other retailers. Zumiez (ZUMZ), also geared toward teens, rose 2½ percent despite forecasting a loss in the current quarter. A couple of chains geared toward women did well. Ulta Salon (ULTA) gained nearly 6½ percent as earnings topped expectations. Ann (ANN), best known for its Ann Taylor stores, rose 7½ percent. And Coach (COH) gained 2 percent. Other gainers today: Green Mountain (GMCR), maker of Keurig, was up 7 percent, after expanding its deal with Starbucks. Liberty Media (LSTZA) ended its deal to buy those shares of Sirius XM (SIRI) it doesn't already own. Both stocks gained on the news; Liberty up 7 percent, Sirius up 2 percent. And Castlight Health (CSLT) soared nearly 150 percent above its $16 a share IPO price. The company, which helps workers choose healthcare benefits, stands to gain from Obamacare. On the downside: Tesla (TSLA) lost another 3 percent on reports that New York could become the fifth state to block the company from selling direct to consumers. Still, Tesla has a pretty good track record. It's stock has soared more than 500 percent over the past year. Biotechs continued to lose ground. Celgene (CELG) fell 4 percent on a double dose of bad news. British regulators reportedly plan to reject the company's application to market a cancer treatment there. And a U.S. judge will hear a challenge to the company's patent on that same drug. What to Watch Monday: The Federal Reserve Bank of New York releases its survey of manufacturing conditions within New York state at 8:30 a.m. Eastern time. The Treasury Department releases foreign holdings of U.S. debt for January at 9 a.m. The Federal Reserve reports industrial production for January at 9:15 a.m. The National Association of Home Builders releases March housing-market data at 10 a.m. .

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Beer Man: Bricks & Barley falls short

Beer Man is a weekly profile of beers from across the country and around the world.

This week: Bricks & Barley Irish-Style Dry Stout

Stevens Point Brewing Co., Stevens Point, Wis.

www.copps.com/bricksandbarley.aspx

Bricks and Barley is the name Roundy's Supermarkets uses for its house-brand beers to supply its Wisconsin-based Copps and Pick 'n Save grocery stores. It contracts with the Stevens Point brewery to produce the beers. Roundy's also operates Rainbow Foods in Minnesota and Mariano's Fresh Market in Illinois.

The B&B stout started out as a passable attempt at the style. It had the flavor profile consisting of chocolate, coffee and roasted barley notes. It drank and finished very dry, with the dryness lingering for several minutes after tasting.

Things went downhill from there, however, as the cold beer warmed up. The aroma was mostly roasted malt and lemon citrus, the latter very off-putting. The lemony sharpness was also prominent in the flavor and at odds with the style.

The head disappeared immediately, making the beer look like a cola. The stout finished by leaving a chalky sensation in the mouth, intensified by the dryness. There was also a metallic aftertaste to go along with the lingering sharp citrus. The chalkiness stuck in my mouth like napalm for a long time — more than an hour.

There are much better stouts out there, including new seasonal releases New Glarus Coffee Stout and Central Waters Peruvian Morning. Comparing B&B's stout with these two world-class Wisconsin beers is like swatting a fly with a sledgehammer.

New Glarus' offering would be a good beer even without the excellent, fresh, dark-roast coffee flavor. Its body was oily and creamy, nicely carbonated and topped with a thick, rocky head. Its malt flavors were perfectly balanced between the chocolate, roasted barley and darker malts, with some caramel malt also showing up.

The bitterness was mostly from the roasted malt and coffee, not hops, and mixe! d well with the slight sweetness. A clean finish nicely ended the sampling.

The Peruvian Morning also was a delight. It uses roasted coffee in what is essentially Central Waters' Satin Solitude Imperial Stout that is bourbon barrel-aged. Vanilla, oak, coffee, dark fruits, bourbon and the base imperial stout flavors all merge into ungodly goodness. This was the sweetest of the three stouts, but in the right amount to blend with the bourbon character and not a cloying, unpleasant sweet.

Many beers are available only regionally. Check the brewer's website, which often contains information on product availability. Contact Todd Haefer at beerman@postcrescent.com. To read previous Beer Man columns Click here.