Abbott Laboratories to Acquire Veropharm (ABT)

After an M&A packed morning, Abbott Labs (ABT) announced on Monday afternoon that it is acquiring Russian Pharmaceutical company Veropharm.

The definitive agreement will see Abbott Labs acquire Limited Liability Company Garden Hills, which has a controlling interest in Veropharm. The price of the sale will be between $395 million and $495 million, depending on how much of Veropharm Garden Hills owns at the time. Garden Hills currently owns 80% of Veropharm, but is expected to own 95% by the time the deal closes. The deal is expected to close in the fourth quarter. In May, Abbott Labs announced that it was acquiring CFR Pharma for $3.3 billion.

Abbott stocks ended the day down 12 cents, or 0.29%, but were climbing slightly higher in after hours trading. YTD, the company’s stock is up 6.85%.

ABT Dividend Snapshot

As of Market Close on June 23, 2014

Click here to see the complete history of ABT dividends.

How to Avoid Getting Ripped Off While Traveling

When you're traveling, you're likely thinking about all the ways you can have fun – not about the ways your identity can get stolen, your vacant home can get ransacked or your credit cards can get swiped. However, you are more at risk of becoming a victim of theft while on vacation because your mind is on the pool rather than what you need to do to protect yourself, says Adam Levin, founder of Identity Theft 911 and Credit.com.

SEE ALSO: What to Do If You're a Victim of Identity Theft

That's why you need to take precautions before you leave town as well as while you're traveling to safeguard your finances and your personal information. Here are several preventive measures you should consider:

Before you go on vacation

Contact your bank and credit-card companies to let them know where you are going and how long you will be there. This will help prevent your financial institutions from freezing your accounts for unusual activity.

Clean out your wallet. Levin recommends taking no more than two credit or debit cards with you. Keep one card in the hotel safe, or well hidden in your room if no safe is available, so you'll have a way to pay for things if the card you're carrying is stolen. Leave other personal information, such as your Social Security card, at home (see 8 Things Not to Keep in Your Wallet). Keep a list of the phone numbers for your credit-card company and your bank separate from your wallet. If traveling abroad, make sure you have numbers with actual area codes since toll-free lines won't work internationally.

Make copies of important documents such as your passport, driver's license, health insurance card and tickets. Having access to the information will make it much easier to get replacements in the event of loss or theft. Give a trusted friend or family member copies as well.

Get your gadgets ready to travel. Remove unnecessary files that contain personal information from your phone, tablet or laptop so thieves won't have access to this information if they steal your device, says Rip Mason, CEO of LegalShield. Download an app to help you track your phone's location and erase data if it's lost or stolen (see 3 Simple Steps to Secure Your Smart Phone).

Prepare your home. If you leave your house unattended, make it look like someone is still there. Keep some lights on or set a timer, and put a hold on your mail and newspapers. If someone agrees to collect your mail for you, Levin says make sure it's a person you trust not to open it. A week's worth of mail can be rife with account numbers, balances and other personal information.

Don't share vacation plans on social media. Announcing on Facebook that you're taking a trip is like extending an invitation for people to burglarize your home. And wait until you return from vacation to post pictures of your trip. For more, see 5 Facebook Posts That Put You at Risk.

While you're traveling

Be selective about ATMs. Levin says travelers should avoid generic ATMs, which might be set up by thieves to steal account information. He also says that you shouldn't use bank ATMs that aren't physically connected to a financial institution. That's because it's easier for thieves to access stand-alone ATMs and install skimming devices that can capture card information. For more, see How to Guard Against Card Skimmers.

Avoid public Wi-Fi connections. It's smart to check your accounts for suspicious activity while you're traveling, but Mason says that you should avoid using public Wi-Fi to access your financial accounts online. If you do, you're putting your usernames, passwords and other personal information at risk of being stolen. These shared networks make it easy for hackers to see everything you're doing. Use your phone's 3G or 4G service to access the Web for a more secure connection.

Guard against hotel scams. One travel scam on the rise, says Mason, is receiving a call on your hotel room's phone supposedly from the front desk. The caller will claim he needs your credit-card information again even though you already gave it at check-in. If you receive such a call hang up and go down to the front desk in person to see if the information is in fact needed again. Mason says travelers should also be suspicious of restaurant menus slipped under hotel doors. If you place a phone order, the person on the other end of the line could use your credit-card number to make fraudulent charges. Insist on paying in cash, or ask the front desk for legitimate delivery menus.

Your vacation home isn't your castle. Keep in mind that many people – from housekeeping to maintenance to property managers – can go through your hotel room or rental property during the day, Levin says. So don't leave out computers, jewelry, money or anything displaying personal information. Put valuable items in the room safe or hotel safe. If you're staying at a property without access to a safe, be creative about where you hide things.

Sell These 5 Toxic Stocks Before the Drop

BALTIMORE (Stockpickr) -- So much for yesterday's rally. Stocks faded all afternoon on Wednesday, shedding the gains that they earned to start the session. That one-day observation wouldn't be so noteworthy if not for the fact that Mr. Market has been on repeat mode for the last several weeks.

>>5 Big Charts Ready to Break Out in May

And while stocks continue to churn sideways, the worst thing you can do is sit on your hands. That's because the market's biggest gains often don't come from picking the right stocks, they come from not owning the wrong ones. That's especially true this week.

Today I'll show you five big "toxic" names you need to unload before the next leg down.

Just to be clear, the companies I'm talking about today aren't exactly junk. By that, I mean they're not next up in line at bankruptcy court. But that's frankly irrelevant; from a technical analysis standpoint, sellers are shoving around these toxic stocks right now. For that reason, fundamental investors need to decide how long they're willing to take the pain if they want to hold onto these firms in the weeks and months ahead. And for investors looking to buy one of these positions, it makes sense to wait for more favorable technical conditions (and a lower share price) before piling in.

>>5 Stocks Under $10 Set to Soar

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

So without further ado, let's take a look at five toxic stocks you should be unloading.

General Motors

First up is General Motors (GM), a widely owned name that's done nothing but disappoint in 2014. Since the calendar flipped to January, GM has dropped 14.7%, underperforming the broad market by a big margin. And as we get deeper into May, there's reason to believe that GM is setting up for another leg down.

Charts don't get much simpler than the one in GM -- the stock is currently bouncing its way lower in a textbook downtrending channel. The setup is formed by a pair of parallel trend lines: a resistance line above shares and a support line below them. Those two lines on the chart provide traders with the high-probability range for GM's shares to stay within. When it comes to trend channels, up is good and down is bad; it's really as simple as that.

This week, as GM presses up against to the top of the channel for a fifth time, it makes sense to sell (or short) its next move lower. For investors waiting on a buying opportunity in GM, I'd recommend avoiding shares until the downtrend gets taken out. This stock could still move a lot lower before that happens.

Republic Airways Holdings

We're seeing the exact same setup right now in shares of a much smaller name: regional airline Republic Airways Holdings (RJET).

During a broad rally in the rest of the airline industry, RJET hasn't just missed the upside -- it's actually dropped close to 30% since last July. And as RJET tests trend line resistance for a fifth time over the course of this downtrend, it makes sense to sell the next bounce lower.

Waiting for that move down before clicking "sell" is a critical part of risk management, for two big reasons: It's the spot where prices are the highest within the channel, and alternatively it's the spot where you'll get the first indication that the downtrend is ending. Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring that sellers are still in control before you unload shares of RJET.

Yes, waiting for the bounce means leaving some money on the table in RJET, but it greatly increases the probability that you're putting yourself on the right side of the trade.

Brunswick

The last year or so has looked a lot stronger for shares of Brunswick (BC): The diversified mid-cap has rallied more than 24% since last summer. But that rally could be coming to an end for BC in May, and it's time to think about taking gains.

That's because Brunswick is currently forming a double top, a bearish reversal pattern that looks just like it sounds. The double top is formed by a pair of swing highs that max out at approximately the same price level. The sell signal comes when the trough that separates the two highs gets violated. For BC, that breakdown level is right at $40, a price level that's getting tested this week.

If shares are still hanging out below $40 early in today's session, consider it a confirmed sell signal. Momentum, measured by 14-day RSI, provides some foreshadowing for downside in BC. While price was steady over the two tops in Brunswick, our momentum gauge failed to do the same. That's a big red flag.

Towers Watson

Towers Watson (TW) is another name that's looking "toppy" after a big run higher in the past year. Shares of TW are up more than 44% over the trailing 12 months, besting the performance of the S&P 500 nearly three times over. But that rally could be coming to a screeching halt thanks to a classic technical reversal pattern in shares. Put simply, TW looks toxic right now.

Towers Watson is currently forming a textbook head and shoulders top, a bearish reversal pattern that indicates exhaustion among buyers. The setup is formed by two swing highs that top out at approximately the same level (the shoulders), separated by a higher high (the head). The sell signal comes on a move through TW's neckline, which is currently right above $100. If TW can't catch a bid above $100, it becomes a sell.

Another indicator, relative strength (not to be confused with RSI), is the side signal that's pointing to downside in TW in May. Relative strength has been trending lower since January, indicating that TW is woefully underperforming the broad market in 2014.

It's tempting, but don't discount the head and shoulders pattern just because of its name. After all, the only thing that matters is its efficacy: a recent academic study conducted by the Federal Reserve Board of New York found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits [that] would have been both statistically and economically significant."

Pfizer

Last up is Pfizer (PFE). The pharmaceutical giant is forming the exact same setup as the one in TW right now -- and while the chart may not be quite as pretty in PFE, the trading implications are exactly the same. Pfizer broke through its neckline at $29.50 earlier in the week. Now a pullback is giving shorts a second chance at a low-risk entry on this stock.

Why the significance at $29.50? Whenever you're looking at any technical price pattern, it's critical to keep buyers and sellers in mind. Patterns like head and shoulders setups and double tops are a good way to quickly describe what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That horizontal $29.50 neckline level in PFE is the spot where there's previously been an excess of demand for shares; in other words, it's a price where buyers have been more eager to step in and buy shares at a lower price than sellers were to sell. That's what makes a breakdown below support so significant -- the move means that sellers are finally strong enough to absorb all of the excess demand at the at price level.

For the best risk/reward tradeoff, wait for the next move lower before selling PFE.

To see this week's trades in action, check out the Toxic Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Stocks Insiders Love Right Now

>>Fight the Selling With These 5 Trades

>>5 Short-Squeeze Stocks Poised to Pop

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Mid-Afternoon Market Update: Crude Oil Slides 3%; Gilead Sciences Shares Spike Higher

Related BZSUM Mid-Day Market Update: Ambarella Slips On Analyst Downgrade; Juno Therapeutics Shares Surge Mid-Morning Market Update: Markets Edge Higher; Carl Icahn Discloses Stake In Manitowoc

Toward the end of trading Monday, the Dow traded up 0.01 percent to 18,054.77 while the NASDAQ climbed 0.06 percent to 4,809.67. The S&P also rose, gaining 0.16 percent to 2,092.14.

Leading and Lagging Sectors

On Monday, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Aqua America Inc. (NYSE: WTR) and MDU Resources Group Inc. (NYSE: MDU).

In trading on Monday, telecommunications services shares were relative laggards, down on the day by about 0.35 percent. Meanwhile, top decliners in the sector included Cellcom Israel Ltd. (NYSE: CEL), down 5 percent, and Partner Communications Company Ltd. (NASDAQ: PTNR), off 3.9 percent.

Top Headline

Activist investor Carl Icahn disclosed a 7.7 percent stake in Manitowoc Company Inc (NYSE: MTW) on Monday, according to a 13D filing.

Based on the 13D filing, Icahn intends to hold discussions with the company's management and Board of Directors relating to the separating of the company's Crane and Food service segments into two separate companies.

Equities Trading UP

The Manitowoc Company, Inc. (NYSE: MTW) shares shot up 7.89 percent to $22.57 on report of Icahn stake. Carl Icahn reported a 7.77% stake in Manitowoc, according to a 13D filing. Based on the 13D filing, Icahn intends to hold discussions with the company's management and Board of Directors relating to the separating of the company's Crane and Food service segments into two separate companies.

Shares of Revolution Lighting Technologies, Inc. (NASDAQ: RVLT) got a boost, shooting up 30.86 percent to $1.68 after the company announced a strategic distribution partnership with Fastenal.

Gilead Sciences Inc. (NASDAQ: GILD) shares were also up, gaining 3.02 percent to $96.62. Gilead reported amended deals with J&J's Janssen to develop PREZISTA-based single-tablet regimen for the treatment of people living with HIV. Morgan Stanley upgraded Gilead Sciences to Overweight.

Equities Trading DOWN

China Xiniya Fashion Limited (NYSE: XNY) shares tumbled 2.49 percent to $2.35 after the company reported a Q3 loss per ADS of $0.59, versus earnings per ADS of $0.02 in the year-ago quarter.

Shares of Ambarella, Inc. (NASDAQ: AMBA) were down 4.55 percent to $53.39 after Needham downgraded the stock from Hold to Underperform.

Skyworks Solutions Inc. (NASDAQ: SWKS) was down, falling 3.13 percent to $72.16 after Needham downgraded the stock from Buy to Hold.

Commodities

In commodity news, oil traded down 3.03 percent to $53.07, while gold traded down 1.05 percent to $1,182.80.

Silver traded down 2.18 percent Monday to $15.80, while copper rose 0.27 percent to $2.82.

Eurozone

European shares closed mixed today. The eurozone’s STOXX 600 rose 0.11 percent, the Spanish Ibex Index tumbled 0.84 percent, while Italy’s FTSE MIB Index tumbled 1.15 percent. Meanwhile, the German DAX rose 0.05 percent and the French CAC 40 climbed 0.51 percent while UK shares gained 0.36 percent.

Economics

The Dallas Fed manufacturing business index fell to 4.10 in December, versus a prior reading of 10.50. However, economists were expecting a reading of 9.00.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Management M&A

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Related Articles (BZSUM + AMBA) Mid-Day Market Update: Ambarella Slips On Analyst Downgrade; Juno Therapeutics Shares Surge Ranking Needham's Latest Semiconductor Downgrades By PEG Ratio Mid-Morning Market Update: Markets Edge Higher; Carl Icahn Discloses Stake In Manitowoc Monday Social Sentiment Roundup: PNC Financial, Manitowoc, BioMarin Pharmaceutical Are All Moving Needham Downgrades 7 Semiconductor Stocks, Upgrades 1 Morning Market Losers Around the Web, We're Loving... World Cup Championship of Binary Options! Huanity's Last Great Hope: Venture Capitalists

Nucor Corporation (NUE) Dividend Stock Analysis

Linked here is a detailed quantitative analysis of Nucor Corporation (NUE). Below are some highlights from the above linked analysis:

Company Description: Nucor Corporation is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas.

Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:

1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number

NUE is trading at a premium to all four valuations above. The stock is trading at a 85.8% premium to its calculated fair value of $28.51. NUE did not earn any Stars in this section.

Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%

NUE earned one Star in this section for 2.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 40 consecutive years.

Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:

1. NPV MMA Diff.
2. Years to > MMA

The negative NPV MMA Diff. means that on a NPV basis the dividend earnings from an investment in NUE would be less than a similar amount invested in MMA earning a 20-year average rate of 3.68%. If NUE grows its dividend at 0.7% per year, it will never equal a MMA yielding an estimated 20-year average rate of 3.68%.

Memberships and Peers: NUE is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers™ Index and a Dividend Champion. The company's peer group includes: Commercial Metals Company (CMC) with a 2.4% yield, Steel Dynamics Inc. (STLD) with a 2.3% yield and United States Steel Corp. (X) with a 0.7% yield.

Conclusion: NUE did not earn any Stars in the Fair Value section, earned one Star in the Dividend Analytical Data section and did not earn any Stars in the Dividend Income vs. MMA section for a total of one Star. This quantitatively ranks NUE as a 1-Star Very Weak stock.

Using my D4L-PreScreen.xls model, I determined the share price would need to decrease to $29.17 before NUE's NPV MMA Differential increased to the $500 minimum that I look for in a stock with 40 years of consecutive dividend increases. At that price the stock would yield 5.1%.

Resetting the D4L-PreScreen.xls model and solving for the dividend growth rate needed to generate the target $500 NPV MMA Differential, the calculated rate is 6.9%. This dividend growth rate is well above the 0.7% used in this analysis, thus providing no margin of safety. NUE has a risk rating of 1.50 which classifies it as a Low risk stock.

NUE is the largest U.S. steel producer with one of the most modern and efficient operations in the nation. The company has a diverse product mix. The industry should continue to consolidate leading to more stable pricing. NUE is exposed to cyclical markets such as non-residential construction.

Minimills, such as those operated by NUE, are able to quickly adjust production levels to meet demand. Its strategy is to become more vertically integrated which should generally produce less volatile production costs.

Financially, NUE has a very low ratio of debt to total capital. The stock is trading at a significant premium to my calculated fair value price of $28.51, and its free cash flow payout is now negative, down from 876%. This gives me great concern as to the sustainability of its dividend, so for now I will carefully monitor my position.

Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Full Disclosure: At the time of this writing, I was long in NUE (2.0% of my Dividend Growth Portfolio). See a list of all my dividend growth holdings here.

Related Articles:
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Real Time Picks	Buffett-Munger Screener
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Thursday Analyst Moves: Bank of America Corp, Analog Devices, Inc., Duke Energy Corp, More (BAC, ADI, DUK, More)

On Thursday before the closing bell, analysts marked 2014′s first day of trading by upgrading and downgrading some big name dividend paying companies. Below, we look at all of the information that is relevant for dividend investors.

Analog Devices Downgraded at Wells Fargo and Goldman Sachs

Wells Fargo Goldman Sachs downgraded Analog Devices (ADI) to “Market Perform” from “Outperform” based on a valuation call. Goldman Sachs downgraded ADI to “Sell” due to ADI falling behind its peers when it comes to growth, while still carrying a high va

Jim Beam born to Jack Daniels

Jim Beam Leathers was born on November 14, to Jack Daniels Leathers and Lydia Leathers. NEW YORK (CNNMoney) Here's one baby name that probably won't make it on this year's most popular list: Jim Beam.

But for one Louisiana family, baby Jim Beam will fit in quite well. His father, Jack Daniels Leathers, 31, is also named after a stiff drink.

It's somewhat of a tradition for the family, he told the Houma Courier in Houma, Louisiana, earlier this week.

The day Leathers was born, his father happened to be drinking a glass of the well-known whiskey and suggested the name, Leathers told CNNMoney. His mother agreed, after calling a local store to double check the correct spelling. (His birth certificate actually reads: Jack Daniel's Leathers.)

And when Jack's own son was born on November 14, he wanted to keep booze in the family name.

"It builds character to be a little different," he said.

Fortunately his wife, Lydia Leathers, 23, thought it was a good idea. In fact, the couple discussed naming a son Jim Beam on their very first date.

And if more children come along, they already have some names on tap. Evan Williams, after the bourbon, for a boy, and Sherry if it's a girl.

  Are we in a bourbon bubble?

Advisors, Investors Confident About Future: Schwab

RIAs are more confident and optimistic about their businesses for the future, according to Schwab Advisor Services. The firm published its 13th semiannual Independent Advisor Outlook Study on Wednesday, finding that advisors are confident and aware of the challenges they face.

One of those challenges is what to do about the women and younger clients who will soon be the bulk of their client base. About two-thirds of respondents said women, Gen X and Gen Y clients will be the “driving force” of their profitability in five years.

That realization doesn’t mean advisors are actively addressing those clients yet. More than two-thirds of respondents said asset growth was their top priority for the next few years and that profitability is coming from high-net-worth clients, boomers and retirees.

“Positioning their firms for sustainable long-term growth means RIAs have to balance the demands of running a successful business today with the need to make investments and take proactive steps to attract and meet the needs of a new generation of clients,” Bernie Clark, executive vice president and head of Schwab Advisor Services, said in a statement. “RIAs have significant opportunity with the clients who are right here, right now. But they also have to keep their eye on how best to navigate the unchartered territory that lies ahead – it is a delicate but important equilibrium.”

While the vast majority of advisors said they were interested in working with their clients’ children, one of the barriers to doing so is that they don’t think they have enough assets to make it worth their while. Living in a different area and wanting to use another advisor are also barriers to working with clients’ children.

Another challenge to future profitability is more competition from other RIAs and other types of firms that are trying to emulate RIA firms. Consequently, 72% of advisors are focusing on differentiating their firms. One way they’re doing so is by building a talented team of advisors at their firms. More than half of respondents said they need to hire more diverse advisors, and 46% said they needed more young advisors. However, many are struggling to find qualified people, and when they do, to train them.

Schwab also polled investors in a separate survey to gauge their attitudes and found they are similarly confident. Almost 60% of advisors and 65% of investors think the S&P 500 will continue to rise over the next six months. They differ, though, on how they’ll reach their goals. Nearly half of investors say it will be easy for their advisor to reach their investment goal in the current market—the same percentage of advisors who say it will be difficult.

Three-quarters said they were confident about making decisions with their advisor. The investor survey found clients are worried about volatility, interest rates, inflation and tax increases, and have brought those subjects up with their advisors.

Investors are clearly drawn to advisors who can provide holistic planning services, the survey found. Ninety-two percent said they wanted an advisor who could evaluate their entire financial picture. Trust is also important, and 85% of investors want to know how their advisor is compensated.

“Building trusted relationships with clients is an RIA sweet spot. The independent model allows advisors to offer what investors want – collaboration, customization, transparency and accountability,” said Clark. “This invaluable combination sets RIAs apart from more conflicted models and positions them very competitively for success.”

The investor survey found a significant gap in where clients put their trust. Seventy-two percent said they put their trust in individual advisors, compared with 42% who said they trust financial services companies as a whole.

More advisors anticipate consumer spending will increase than the last time the survey was conducted in July 2012, but they also expect household debt will increase with it.

The advisor survey asked which sectors will perform best in the next six months and found 40% of advisors expect health care will perform well. Information technology also had high expectations, though less than in last year’s survey.

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Check out Servicemembers, Civilians Less Worried About Economy on AdvisorOne.

1 Stock to Buy in June

Every month, I do my level best to help the world invest better by publicly calling out the company that I'll be buying to add to my Roth IRA. I've been doing this for almost two years, and my picks have returned a total of almost 23%, beating the S&P 500 by just under 3 percentage points.

Last week, I introduced five companies I was considering as my stock pick for the month: Nuverra Environmental, Apple , IPG Photonics   (NASDAQ: IPGP  ) , Dangdang, and SodaStream . Today, I'm going to tell you about the company I'm picking, the reasons why, and offer access to a special free report at the end of the article.

June's winner is...
As soon as trading rules allow, I'll be adding shares of laser maker IPG Photonics to my Roth IRA. To review the basic argument I laid out in my previous article: IPG's shares took a hit after earnings were announced in early May. The reason was that margins were compressed and Wall Street was worried about the company's long-term profitability.

But after listening to the conference call, it became clear that this margin compression was a conscious decision to forgo short-term profitability for long-term market share. IPG offered its lasers to customers at discounted rates in order to drive adoption. I believe that once buyers see how the company's fiber-optic lasers are superior to the carbon-based variety that dominate most industries now, they'll become lifelong customers of IPG -- willing to pay full price for all their future purchases.

What's so special about these lasers?

Source: IPG Photonics. 

If you aren't familiar with lasers, the carbon-based variety has been the industry standard for years. IPG was a first mover in developing fiber-optic lasers. Although at first fiber-optic lasers were more expensive and less powerful, technological progress has changed the situation considerably.

In fact, the progression of fiber-optic lasers follows a well-documented path for many disruptive innovators.

Source: Author, based on The Innovator's Dilemma by Clayton Christensen.

Here, the blue line represents carbon-based lasers, while fiber-optic lasers are the red line. We likely just passed the inflection point now where red is beating blue.

Right now, 88% of IPG's sales come from the materials processing industry -- which focuses on cutting and welding large pieces of metal. The rest is made up by the advanced applications, communications, and medical industries.

The latter three make up interesting growth opportunity for IPG. Because the company claims that its lasers are more powerful, energy efficient, reliable, and cheaper than what the rest of the industry has to offer, IPG could easily diversify its customer base over the coming decade.

Speaking of the rest of the industry...
Of course, just because IPG was the first major company to design fiber-optic lasers doesn't mean it's impervious to competition. There are four other major players in the fray, but none has the focus and scope that IPG offers. Specifically, IPG focuses on fiber-optic lasers exclusively, and is vertically integrated -- meaning that all parts are made and assembled in house -- which helps bring the price of IPG's lasers down.

Rofin-Sinar (NASDAQ: RSTI  ) , Coherent (NASDAQ: COHR  ) , Newport (NASDAQ: NEWP  ) , and JDS Uniphase (NASDAQ: JDSU  ) all offer fiber-optic lasers as well.

When it comes to JDS, its important to realize that the company's focus is far broader than IPG's, focusing primarily on communications solutions. Although that covers an area where IPG competes, communications accounted for just 4% of IPG's sales in 2012.

That leaves Rofin, Coherent, and Newport as the primary competition. But a huge weakness each of these companies have is that they also count heavily on carbon-based lasers for a bulk of their revenue. That means that the company's attention is split, and that in order to develop fiber lasers, they will have to cannibalize their traditional carbon-based offerings.

In 2012, Rofin-Sinar noted that revenues were down significantly for carbon lasers, while the only segment producing positive trends were fiber optics.

Coherent recently reported that revenue for its material processing fiber-optic lasers jumped 16% from the previous year. That's not bad, but it's nowhere near the 29% increase IPG experienced in the same sector over the same time frame.

And Newport announced that net sales actually dropped during the first quarter of 2013 by 16%, which caused earnings to plummet almost 60%! 

Clearly, though I'm sure the lasers these companies offer are fine, they aren't as advanced as IPG's, and the corporate structure doesn't allow for such focused marketing and development of the new wave of lasers.

How to proceed
As I said, when trading rules allow, I'll be buying about $450 worth of IPG stock, as that's 1/12th the allowance for a Roth IRA.  I think today's price-to-earnings ratio of about 20 underestimates the long-term possibilites for this leading disruptive innovator.

If disruptive innovators are what you're interested in, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.

The Stocks That Missed Today's Rally

A relatively calm week ends with a rather calm Friday, as investors had little economic data to trade on and earnings season begins to come to an end. Today, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) rose by 35 points, or 0.24%, the S&P 500 rose by 0.43%, and the Nasdaq increased by 0.80%. While the Nasdaq remained in the black throughout the trading session, the S&P 500 didn't cross the breakeven mark for good until around 1 p.m. EDT, and it took the Dow until just minutes left in the trading session to pull itself out of the red.

Only seven of the Dow's 30 components ended the day in the red, and four of them moved lower primarily due to lower commodity prices. You can read about the other three losers below.

Shares of JPMorgan Chase (NYSE: JPM  ) were down as much as 0.81%, but ended the day just 0.16% lower. The likely catalyst was a letter from two board members asking shareholders to keep Jamie Dimon as chairman and CEO of the company. Today's plea comes after a number of proxy advisory firms have issued recommendations that the chairman and CEO positions be split and held by two individuals. While the letter came from just two members, JPMorgan's board of directors believes unanimously that Dimon should remain in both roles. 

Despite a rating and price upgrade yesterday, shares of Boeing (NYSE: BA  ) moved lower today. Analyst Zafa Khan from Societe Generale changed Boeings rating from sell to hold and increased his price target from $86 per share to $95. Khan believes now that the 787 has been approved for flight and the company is on schedule to produce 10 a month, Boeing should be able to generate strong cash flow. Khan also stated that with the generated income, it will be able to maintain its current buyback program and likely continue dividend increases.  

The only other Dow component that fell today was American Express (NYSE: AXP  ) . Shares fell 0.19%, ostensibly on news that CFO Daniel Henry is planning to retire once a suitable replacement is found. My colleague Jessica Alling noted earlier today that this should come as no surprise considering the 63-year-old's age. Additionally, while shareholders never want to see turnover at the top, this is the best kind of turnover there is: someone simply ready to stop working, not being pushed out or leaving for another company.

More Foolish insight

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal or if finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, check out The Motley Fool's premium research report on the company. Click here now for instant access.

The Hepatitis C Drug Developer That Crushed Gilead Sciences, Inc. in 2014 (Hint: It's Not AbbVie)

For shareholders of Gilead Sciences (NASDAQ: GILD  ) it's practically been a dream year. Shares rose close to 40%, tacking on roughly $45 billion in market value, following the successful approval and launch of oral hepatitis C drugs Sovaldi and Harvoni.

Source: Gilead Sciences.

Gilead's giant leap forward
Sovaldi and Harvoni both represent major breakthroughs in HCV patient quality of care in that neither Sovaldi (geared toward genotype 2 and 3 HCV) nor Harvoni (targeted at genotype 1) require the use of IV interferon, a medicine that commonly causes flu-like symptoms in users for the duration of treatment (often 12 to 24 weeks). Additionally, Harvoni, which is nothing more than a cocktail drug of Sovaldi and ledipasvir, can be given without the need for a ribavirin. In short, we're seeing convenience improve and side effects lessen in a big way.

Yet, Sovaldi and Harvoni brought something else to the table that was sorely needed for HCV patients: improved efficacy. In many instances Sovaldi and Harvoni delivered sustained virologic responses of 90% or higher. In other words, patients had a good chance of being cured of HCV, a chronic and potentially debilitating disease, compared to perhaps half of all patients just three years ago based on the old standard of care.

Because Harvoni was approved in mid-October, we don't have specific sales data on it as of yet. However, Sovaldi sales have been off the charts. In just its first nine months on pharmacy shelves, Sovaldi has delivered $8.55 billion in sales, the fastest ramp-up on record. Furthermore, at the pace Sovaldi sales are on this year, it could wind up being the second best selling drug of 2014. What's more, it's possible that Harvoni could be the better selling drug of the two once it's fully ramped up.

This hepatitis drug developer crushed Gilead in 2014
Despite Gilead's incredible performance, one hepatitis C drug developer had its stock perform even better.

Before reading any further, do you have any guesses?

Did you say AbbVie or Enanta Pharmaceuticals? If so, keep guessing.

Maybe Merck with its combo of MK-5172 and MK-8742? Not quite. Bristol-Myers Squibb with daclatasvir? Nope! Johnson & Johnson with Olysio? Still not it!

Give up?

With a gain year-to-date of 328% -- that's three hundred and twenty eight percent -- clinical-stage HCV-focused Achillion Pharmaceuticals (NASDAQ: ACHN  ) absolutely crushed Gilead in total return this year. Amazingly, it did so without having a single product on pharmacy shelves.

Why Achillion scorched higher in 2014
There are a number of reasons why Achillion shares have found new life in 2014 after struggling mightily in the previous year.

First, hepatitis C is a global disease that affects 150 million people according to the World Health Organization. Even Gilead, AbbVie, Bristol-Myers Squibb, Merck, and Achillion combined couldn't treat everyone in a matter of just one or two years. In just the first nine months since the entry of Sovaldi, Gilead managed to treat just 117,000 patients. Therefore the implication is the market potential exists for a handful of players, including Achillion, to prosper.

Source: Achillion Pharmaceuticals, June 2014.

Secondly, the results for Achillion's NS5A inhibitor ACH-3102 have been fantastic thus far, even if the patient pool is small. In November Achillion announced a combination study involving ACH-3102 and Gilead's Sovaldi that was administered without ribavirin to 12 genotype 1 patients. As presented at the American Association for the Study of Liver Diseases annual meeting, all 12 patients experienced a sustained virologic response (i.e., no detectable levels of disease) after a 12-week treatment course.

Lastly, Achillion has received what I refer to as a "buyers boost" since all of its complementary clinical-stage rivals have now been bought out. Gilead Sciences purchased Pharmasset in 2011, netting it Sovaldi; Bristol-Myers Squibb purchased Inhibitex and got burned badly on that deal since its lead drug wound up being scrapped for safety reasons; and Merck gobbled up Idenix Pharmaceuticals for a 239% premium from its prior-day closing price. The opinion among investors is that Achillion is next to be purchased. Considering its steady phase 2 combination results and the massive scope of the HCV market, the idea of a buyout isn't out of the question.

Caveat emptor
While Achillion was an absolute superstar in 2014, there's a chance it may not fare as well next year.

Source: Flickr user Eugene Zemlyanskly.

For starters, it's never a good idea to allow a rumor to be the basis of your investment thesis. Although many of its peers have been bought out, there are no guarantees that Achillion will find a suitor willing to pay a premium for ACH-3102 and the company's remaining HCV pipeline. Many large pharmaceutical companies are already working on HCV products of their own, meaning Achillion's pipeline may not be needed. If the buyout rumors surrounding Achillion die down, its share price could falter.

Also, Achilion's had a shaky past with the Food and Drug Administration. Achillion's sovaprevir wound up on clinical hold by the FDA for nearly a year due to safety concerns, echoing similar problems experienced by rival Idenix. It's concerning that the company has yet to successfully get any of its developing drugs past phrase 2.

That being said, Achillion is clearly a name to watch going forward, especially if ACH-3102 meets or exceeds current expectations. I, for one, won't be looking for a repeat performance in 2015 and much prefer Gilead Sciences here. Still, there's big move potential for both buyers and short-sellers that should command the attention of Wall Street and investors.

1 great healthcare stock to buy for 2015 and beyond
Healthcare stocks soared in 2014, and 2015 is shaping up to be another great year for stocks. But if you want to make sure you're buying one of the best healthcare stocks, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here.

How Google Conquered My Life - and Why Bookmarks Is Next

Shutterstock This past weekend TechCrunch broke the story that Google (GOOG) was adding Google Bookmarks, which gives you a new tool to organize and store content from around the web. I've been using Pocket for over a year to do that -- and I love it. In fact, I am so happy with it that I recently upgraded to its premium paid version. And despite that, I have no doubt that within a short time, I'll have dumped it for Google Bookmarks. Even though I was initially reluctant to get on the Google bandwagon, it has slowly become a ubiquitous part of my everyday life, paralleling the way in which the tech giant's products have taken over the Internet. Lessons from the Real and Virtual Worlds As a young man, I swore I'd never get married, have kids, or switch to web-based email, and yet somehow, all three of these came to pass. The marriage thing I'm convinced had to do with some sort of Haitian voodoo root my wife must have been mixing in my food. The proof is there for all to see in the zombified look on my face in our wedding album. The kids? Well, I'm 75 percent sure I know how I ended up with my two beautiful tax deductions. But not unlike the events that once led me to wake up in a Ramada Inn covered in shaving cream, I'm a little hazy about how I ended up on Gmail. On Cloud Nine with Gmail Prior to Gmail, webmail was terrible. Beginning with the Prodigy network back in the early '90s, I had tried all sorts of email services and even the best of them were clunky and not very user friendly. So Outlook became my email program of choice, and I remember thinking that there was no way Google's new cloud product could ever make me leave Microsoft (MSFT) But less than one month after trying Gmail, I was hooked. And that's the proper term, because Gmail was the "gateway software" that got me addicted to all sorts of Google products. Chrome took the place of Internet Explorer. Then I began using Google Calendar, followed closely by Drive and Docs. Yahoo (YHOO) maps gave way to Google maps. YouTube got a unified log-in making third-party video services obsolete. Hangouts killed Skype. I even joined Google+. And now, I have an Android smartphone and tablet, and use less-known Google products like Tasks. From Evernote to Keep The moment I suspected that Google had won was when, after using Evernote for a couple years and liking it, I switched over to Keep in less than a week and didn't even miss a beat. The moment I it had won came when I didn't even blink before deciding to move to Bookmarks despite my love of Pocket. And why wouldn't I? Google has the resources to make almost any product it chooses to focus on a category killer, and one that will seamlessly integrate with all its other products. So assuming it doesn't orphan Bookmarks -– something it did with Google Reader, which I am just now getting over –- it only makes sense for me to use it and every other product Google produces. The only reason I could see that people would have an issue using Google products would be if they had concerns about their privacy. But as someone who assumes that everybody already knows everything about everyone already, that's a non-issue for me. Only iTunes and MS Word Remain Now I've only got two anchor products left that keep me from becoming a 100 percent Google user: iTunes and MS Word. However, Google Play tells me I can store up to 20,000 songs, stream millions more from its catalog and bring my iTunes collection over seamlessly, so now I am taking its free trial to determine if the Apple (AAPL) cord can be completely cut. Convincing me to leave that venerable word processing program seems to be much harder. This is especially true since it has become more intransigent by its recent -– though initially awkward -– integration into Microsoft's OneDrive cloud storage. But then again, I once said that about Outlook. And marriage. And kids. More from Brian Lund
•The Day I Truly Realized What 'Financial Compatibility' Means •The Moment I Realized I Had to Get Conservative and Diversify •Grandma Taught Me Just How Expensive Old Age Can Be

Hello Ello (Peace out, Facebook!)

Ello doesn't require your picture or your name to sign up. NEW YORK (CNNMoney) Say hello to Ello, the ad-free social network capitalizing on the perception that it's the "anti-Facebook."

Earlier this month, the social media giant made headlines for suspending the accounts of several gay and transgender entertainers. The rationale? The accounts weren't in the holders' "real" names.

"The more they know about you, the more money they make," said Ello co-founder Paul Budnitz regarding Facebook. "I, quite frankly, don't care."

The platform, which is still in beta, launched just over a month ago with roughly 90 people and is still invite-only. This week, the site has seen an incredible surge in the amount of invite requests. He didn't specify the total number, but said that requests and approvals together often totaled 40,000 an hour.

Budnitz said they didn't expect the site to grow so quickly and are still developing its features. (He acknowledged this could mean a little bit of downtime).

According to Budnitz, Ello has "really been embraced by the LBGT community," as well as artists and performers.

Ello wants its users to feel more like people and less like data points. Users are free to be whoever they want so long as they abide by basic rules, like no bestiality or impersonation of public figures, according to Budnitz.

To join, all you need is an invite from a friend and an email address.

"We're not geo-locating, we're stripping IP addresses, we don't ask your name, your gender or sexual orientation. All I care about is that you obey the rules of Ello," said Budnitz, who is one of its seven founders.

About a year ago, they started the platform as a private social network for friends of friends to share their artwork and communicate. Eventually, they had 1,000 friends of friends who wanted in to the network, so they decided to open up the circle.

They received a $435,000 seed investment from FreshTracks Capital, a Vermont-based VC firm. (Budnitz also lives in Vermont, but other founders are located in Colorado.)

But how does a non-ad supported platform survive once the funding runs dry?

"Isn't it just so sad? Rather than cheering on a new model that actually makes things better, people have to say, 'You can't change things,'" said Budnitz. "Our business model is really ! simple, and proven. It's like an app store."

By that, Budnitz means they'll upsell users on special features to customize their Ello experience -- and he's confident that he'll be able to monetize the platform this way.

"We literally have thousands of people writing to us with feature suggestions, saying: these are the things I'd pay for."

The top request so far? People wanting to control a professional and personal profile with one log-in. Budnitz says they're likely to roll that out in the future and charge a one-time fee of $2.

Life of Crime: S&P 500 Closes Week at Record High; Small Caps Surge

How quiet is this week? So quiet that Box Office Mojo doesn’t appear to have bothered predicting who will win the box-battle this week. For good reason: Not much of note is opening. There’s Pierce Brosnan’s The November Man, a spy thriller in the mold of his old James Bond flicks, but it’s gotten terrible reviews, so we’ll skip that. Susan Surandon stars in The Calling as a detective hunting for a serial killer, and while it’s gotten better reviews than The November Man, serial-killer flicks have never been a favorite of mine. Hard-boiled novelist Elmore Leonard, however, is. His novel The Switch has been adapted as Life of Crime, and it stars Jennifer Aniston, Tim Robbins and the artist formerly known as Mos Def. The film asks what would happen if a scumbag real-estate developer’s wife had been kidnapped–and he didn’t want her back? The New York Times’ Ben Kenigsberg writes that “as a late-summer caper movie, it hits the spot.” The Los Angeles Times’ Kenneth Turan notes that “Life of Crime has the authentic Leonard snap, crackle and pop.”  The Wrap’s Inkoo Kang says that Life of Crime “doesn’t inspire ardor, but it certainly boasts above-average intelligence and a streak of knowing unpredictability that make the dark comedy a pleasurable morsel of escapism.” That’s good enough for me and since it’s playing on demand as well as in theaters, i look forward to watching it once the kids fall asleep.

Roadside Attractions

The market certainly lacked snap, crackle and pop this week. Trading volume was the lowest of the year, and if it hadn’t been for the S&P 500 finally closing above 2,000 we might have forgotten it already. The S&P 500 rose 0.8% to 2,003.37 this week–its 32nd record high of 2014. The Dow Jones Industrial Average gained 0.6% to 17,098.38, while the Nasdaq Composite advanced 0.9% to 4,580.27, a new 52-week high. The small-company Russell 2000 jumped 1.2% to 1,174.35.

Highlight’s of the week included more geopolitical turmoil–can we call Russia’s Ukrainian “incursion” and invasion yet?–as well as stellar unemployment claims data and an upward revision to second-quarter GDP. ISI Group’s Dennis DeBusschere thinks the latter have helped offset the former:

Markets continue to grind higher despite the increase in geopolitical risk. The better claims, GDP revision and housing data are likely helping U.S. markets. Better growth, even in the face of tighter Fed policy, should continue to be positive for equities.

Wells Capital’s Jim Paulsen notes that markets where both earnings and valuations rise, as they are now, are exceedingly rare. He explains why that fact worries him:

Since 1950, the U.S. stock market has experienced 15 periods of significant valuation enhancement…In only two market cycles, the late 1990s and today, has the stock market been driven higher by a simultaneous rise in both earnings and the P/E multiple. Consequently, although the character of the current stock market run during the last couple years is not unique, it is certainly rare…

Today, "growth without inflation/Fed tightening consequences" is at the epicenter of the ongoing stock market run. In our view, economic growth has upshifted in the last 18 months, growing more broadly and consistently than at any time in this recovery. For example, excluding the weather distorted first quarter, real GDP growth has been between 3.5% and 4.5% in three of the last four quarters! Despite this upshift in economic performance, however, bond yields have declined steadily this year and most inflation measures remain benign. Consequently, both the Federal Reserve and investors seem to be assuming the recovery can continue to grow at a healthy clip without overheated consequences. Ergo, earnings are rising because economic growth is reasonably strong while the P/E multiple continues to be boosted by lower bond yields and low inflation.

Investors should consider whether and for how long this economic recovery can continue "without" overheating consequence. As long as it does, the relatively rare rising P/E-earnings stock market rally should persist. However, in our view, the pace of real economic growth is now probably sustaining near 3% and with the labor market and factory utilization rates firming, inflation and interest-rate pressures will likely soon intensify. If improved economic reports and worsening inflation evidence does force the Federal Reserve to quicken its exit strategy, even if earnings continue to do well, the stock market may be headed for an intermediate period of P/E multiple contraction.

Citigroup’s Tobias Levkovich thinks the stock market is about to get more uncomfortable even as it heads higher:

The S&P 500 has put up a respectable year thus far with more than 8% appreciation but the going could get tougher for the rest of 2014. Equities have defied many expectations by continuing to climb with only very modest consolidations of gains, led primarily by sustained earnings growth in the face of skepticism about corporate margins not to mention geopolitics. Yet, with economic data showing signs of strength, there is also growing anxiety by underperforming fund managers that further index appreciation may be possible by year-end…

A normalized earnings yield gap analysis still suggests that there is a 93% chance the S&P 500 is up by mid-2015 with a median double- digit gain. In addition, a new valuation aggregate of seven factors implies that the equity market is only slightly overvalued with a typical 8%+ gain. In this sense, expectations for market appreciation in sync with 7%-like EPS growth over the next year appear quite reasonable, though big surges by year-end almost would require a bubble-like swelling of money flows.

The way this year is going, I wouldn’t be surprised to see that happen.

What? A Margin Call?

If you have ever traded anything on margin besides Nadex, you know how disturbing a margin call can be. Even if you’ve never had one, the mere thought of having one may have kept you up at night.

There’s all those little, picky terms to understand like margin call, maintenance margin, initial margin, day trading margin, Reg T margin, portfolio margin etc.. that are hard to understand and remember. Then there are rules on day trading margin and when you have to be out before a broker will force liquidate your position and charge you a fee for the liquidation. Some even charge you for every contract they automatically close.

You may have worried about brokerage fees, margin requirements and brokerage accounts and wondered which portion of your money fit into which part of your account. When you trade products like futures, forex, stocks, ETFs, and even some options strategies, you have to worry about all of these things.

A margin call happens when the excess cash in your initial account falls below a certain amount or percentage, because of changes in the market that you have an order in. It can also happen at a certain time of day, on day trading margin, before the markets close, if you do not have the money to hold the trade into the close on initial or Reg T margin.

There is even a caveat that forewarns you that margins are subject to change based on market conditions and the guidelines set up by the exchange. Whether you’re a rookie or a veteran trader, you already know that market conditions change. So this is not a reassuring thought that the exchanges could increase the capital requirements on you at any time. If you have an order that goes against what you thought would happen, money is taken from your margin account to make up the difference.

Once that happens, the excess cash can quickly be negative and you may receive a call from your broker asking / demanding you to deposit more! Or they may just liquidate your position. If they don’t or can’t liquidate it, (think over night gap, over the weekend gap, flash crash, news etc.,) then you could end up owing more than what you put in your account and be in debt to the broker.

If you would prefer to avoid this scary situation, you can trade the capped risk option products on the Nadex exchange. Nadex offers both spreads and binaries and every product has capped risk! With Nadex, you always know your risk and reward when you enter any trade.

There are no margins to keep you worrying about where to find that extra money you need to suddenly deposit into your account. On Nadex, the full risk is debited up front and the margin is never increased no matter what the market conditions become. You get massive leverage but without uncapped risk. Hence, no margin calls!

If you trade binaries, you always know that your payout will be either 0 or 100. If you want to make more than that, you can trade more contracts, or trade spreads. Spreads, unlike binaries, are not an all or nothing trade. (Note on binaries on Nadex you can exit before expiration to limit loss or capture profits).

Each spread has different width and value which vary from 30 to 1000 ticks/pips wide. All spreads tick in an increment of 1 (1 or .01 or .001 or .0001), so you know your maximum risk upon entry into any trade. If you enter a trade to buy 20 ticks above the floor, your risk will be 20 dollars, will never increase and that is all the margin you have to put up to place the trade. If you enter a trade with the width of 200, your risk and reward will fall somewhere in between 0 and 200.

If you choose a spread with the width of 1000, you know your risk and reward will fall somewhere between 0 and 1000. It is very easy to figure out. There will never be a margin call! When trading on Nadex, you can always exit at any time, until expiration, in order to limit your losses or take your profits. All contracts have defined risk. Since all contracts have a floor and ceiling, you know the amount you can lose or gain.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Apple Banks on Desire for Rugged iPhone 6 Screen

Any previous estimates of iPhone 6 sales need to be tossed out.

Evidence that Apple Inc.'s (Nasdaq: AAPL) next-generation smartphone will include a virtually unbreakable sapphire screen will push sales far beyond earlier expectations, which means that Apple stock at below $100 is significantly undervalued.

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The Cupertino, Calif.-based tech giant used sapphire covers for the camera and fingerprint-reading home button in the iPhone 5s, but a sapphire screen is a major upgrade. Not only is it almost perfectly transparent with no distortions or discolorations of any kind, it's also next-to-impossible to scratch or crack.

That's the sort of must-have feature that by itself could induce huge demand. How many people do you know that have had their smartphones' screens scratched by the keys in their pocket, or cracked after an accidental drop?

But when you combine this nearly indestructible screen with the other upgrades we know about (such as bigger screen sizes and new health and fitness monitoring capabilities), it's obvious the iPhone 6 will exceed the sales of any previous model by a large margin.

So how do we know about this remarkable sapphire screen?

Rumors like this often come from sketchy sources in AAPL's Asian supply chain, but in this case we actually have video evidence, one from blogger Marques Brownlee and another made in China.

Both were able to get a sample of the iPhone 6 screen, and both spared no effort in trying to inflict damage. The screen withstood the scratching of keys, severe bending, being struck with a hammer, exposure to flame, and repeated jabbing with a large, sharp knife. In every case, the iPhone 6 screen emerged without a scratch.

Only the folks who made the Chinese video were able to destroy the sapphire screen - by running over it with a car.

With the iPhone 6 virtually guaranteed to be a runaway hit, let's look at how it will affect AAPL stock.

What the iPhone 6 and Its Sapphire Screen Will Do for Apple Stock

AAPL knows it has a winner on its hands. Taiwan's Business Weekly did an extensive analysis of Apple's iPhone supply chain and this week estimated that Apple's initial iPhone 6 order will exceed 68 million units.

That's a stunning number when you consider that Apple sold a total of 51 million iPhones - including all models - in the December quarter (the iPhone 5s and iPhone 5c debuted Sept. 11).

If Apple follows precedent, the iPhone 6 will debut near the end of the September quarter, setting up what should turn out to be a record December quarter.

And while AAPL has many profitable businesses, for now the iPhone is the primary revenue engine, accounting for about half of the company's revenue and more than half of its profits.

If the iPhone 6 raises total iPhone sales by 25% in the year following its launch, it will add about $26 billion in revenue, which is big enough to affect even Apple's top line, at $176 billion over the past 12 months.

Previous estimates had put the iPhone 6's impact on the AAPL stock price at about 10%; the sapphire screen should add several more percentage points. Currently trading at about $95, Apple stock should easily blow past its all-time high ($101.74) this summer on its way to somewhere around $110 by the end of the year.

Beyond its fruitful impact on Apple stock, the sapphire screen will affect two other companies - one positively, the other negatively.

The company that gets dinged is Corning Inc. (NYSE: GLW), which makes the Gorilla Glass that Apple has used in the iPhone, iPad, and iPod Touch until now. As Apple adopts the sapphire screens throughout its mobile product lines, Corning will lose a significant chunk of business.

Not surprisingly, Corning has been openly critical of sapphire screens, saying they cost too much (although it can't criticize the thickness or weight - the sapphire displays are thinner and lighter than Gorilla Glass).

But Apple is very good at getting components as cheaply as possible, which brings us to the winning company in this transition: GT Advanced Technologies Inc. (Nasdaq:
GTAT).

Apple made a deal last year with GT Advanced to open and operate a manufacturing facility for sapphire components in Mesa, Ariz. (which happened in February). The factory at present is capable of producing about 200 million sapphire displays a year - just about what Apple will need.

But if Apple starts using the sapphire screens in its other devices, GT Advanced will need to expand its operations. It represents a lot of new business for GTAT, although an exclusivity clause will prevent the company from selling to Apple rivals like Samsung Electronics Ltd. (OTCMKTS: SSNLF).

It also means Apple will be able to use those sapphire screens as a unique selling point for years to come - a smart move that's also bound to pay off.

What's your take on the impact of the iPhone 6 on Apple stock? Do you agree it will have a major impact? Speak your mind on Twitter @moneymorning or Facebook.

UP NEXT: There's yet another catalyst for Apple stock that is just now gaining traction, but unlike the iPhone this one has received very little attention. It's a technology that could change the very way people shop and interact with businesses. It's called iBeacon...

Related Articles:

International Business Times: iPhone 6 Release Date: Sapphire Screen Unbreakable, Withstands Knife Stab

Will The Galaxy S5 Beat The iPhone 6?

There have been a lot of rumors and a lot of alleged leaks about a higher-end Samsung (SSNLF) Galaxy S5 hitting the market soon. This version, dubbed the Galaxy S5 Prime, is said to sport 3GB of RAM (up from 2GB in the current S5) and a quad-HD (2560x1440) display, up from 1920x1080 on the pain S5. It is also said to sport either a next-generation Exynos processor coupled with an Intel XMM 7260 modem ora Qualcomm (QCOM) Snapdragon 805 paired presumably with the latest MDM9x35 modem from Qualcomm.

What are the odds that this model even exists? We very recently saw news of the LG G3's 2560x1440 display hit the Web over the last week or so, and given that LG is probably going to play up this feature, Samsung is also likely to want to be able to keep up in the smartphone "resolution wars." Interestingly enough, though, the LG G3 will apparently sport a 5.5-inch 2560x1440 panel. If the rumors around Samsung's phone are correct, the S5 Prime should offer even higher pixel density at the same resolution on a 5.1-inch display.

That being said, such a phone is likely to be extremely expensive to make. Samsung already launched the Galaxy S5 (which had a larger screen than the S4, faster/likely more expensive processor, and other enhanced goodies) for about $100 less than the Galaxy S4 debuted at. This means if the company wants to preserve its margins here, it will either need to sell the purported S5 Prime for significantly more than the current S5, or the S5 Prime won't really sport these BoM-cost-ballooning features.

Should Apple worry? The big question then is whether Apple (AAPL) -- which has been on an absolute roll with its iPhone products lately -- has anything to be worried about vis-a-vis an even higher end, premium-tier Galaxy S5. While Samsung would handily win the "spec wars" with three times the RAM and a much sharper display, it's important to note that Apple's key differentiation point isn't necessarily the hardware, but the harmony of the hardware and the software.

For customers who prefer the ease of use of iOS, there is simply no alternative to Apple, and mainstream customers who are "used to" iOS have a rich library of iOS apps and are also probably hooked into iTunes won't switch to a Samsung/Android phone. It is this differentiation via software (which is R&D intensive but very COGS-friendly) that helps Apple not only maintain its share of the high end, but also allows it to do so with fantasticprofitability.

Conclusion Samsung, LG, and the hordes of Android vendors can bring in the flashiest displays and biggest "on-paper" specifications, but for many users, iOS and the ecosystem that surround it are what make Apple's phones worth the premium, not necessarily the hardware. Any company can buy an obscenely expensive, high-resolution panel and put a ton of RAM in its phones, but not any company can build the ecosystem, the brand, and the customer loyalty that Apple has.

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Crude Oil Drops Below $75; Major Oil Stocks Follow

It has happened. U.S. oil prices dropped below $75 a barrel for the first time in more than three years amid continued pressure from over supply and soaring production.

Big oil companies, services companies and offshore drillers felt the pain as share prices fell in response. The Energy Select Sector SPDR ETF (XLE) fell 2.28% 0.35% to close at $85.60 as companies from Exxon Mobil (XOM) to Halliburton (HAL) to Diamond Offshore (DO) followed crude prices lower.

Light, sweet crude for December recently traded at $75.38, a 2.3% decline, after earlier falling as low as $74.93 a barrel, Brent, the global benchmark, traded down $1.98, or 2.46%, to $78.40 a barrel.

The Brent contract for January delivery fell $1.97, or to $79.15 a barrel.

Barron's predicted $75 oil earlier this year (see "Here Comes $75 Oil," March 29). The commodity has been in a downward slide for months as U.S. production has soared and global demand has waned. More recently, prices have been hurt by worries that OPEC would maintain its collective output target at its Nov. 27 meeting.

Even recent remarks by Saudi Arabia Oil Minister Ali al-Naimi dismissing talk of an oil price war among producers did nothing to stem the slide.

Among the U.S. majors, ConocoPhillips (COP) fell 1.6% to $70.03, followed by a 1.3% decline by Chevron (CVX) and Exxon's 1.15% fall.

Services companies and offshore drillers suffered sharper drops. Halliburton fell 2% to $51.60. Meanwhile, Transocean (RIG) fell 3.75% to $26.07, while Diamond Offshore and Seadrill (SDRL) each fell 3.5%. Noble (NBL) fell 2.86% to $53.63.

Last week, my colleague Ben Levisohn weighed in on the impact of falling oil prices on the offshore drillers. Read his post here.

Morning Movers: Time Warner Jumps on Earnings Beat; Devon Energy, EOG Gain

Stocks are surging this morning after the Republican Party took control of Congress yesterday.

Bloomberg

S&P 500 futures have gained 0.6%, while Dow Jones industrial Average futures have risen 0.5%. Nasdaq Composite futures have advanced 0.6%.

Midstates Petroleum (MPO) has surged 21% to $3.46 after the independent E&P company easily topped analyst earnings forecasts.

Jamba (JMBA) has tumbled 9% to $11.74 after the juice store missed the Street’s earnings and revenue expectations. Jamba also announced a $25 million share buyback program.

EOG Resources (EOG) has jumped 5.3% to $59.05 after the oil & gas company beat earnings and revenue forecasts and upped its full-year production outlook. Devon Energy (DVN), meanwhile, has gained 3.5% to $58 after the independent energy exploration & production company also surprised to the upside and boosted its production guidance.

Time Warner (TWX) has risen 4% to $78 after the media company beat earnings and revenue forecasts and lifted its full-year earnings guidance.

Sprint Is About to Pass the No. 3 Title to T-Mobile

Earlier this year, T-Mobile (NYSE: TMUS  ) CEO John Legere made a prediction: the Un-Carrier would overtake Sprint (NYSE: S  ) in total subscribers by year's end. Sprint released earningsMonday night, and Legere's forecast is inching closer to becoming a reality.

Sprint shareholders are losing patience with the company's turnaround, with shares down 22% at the low today. How bad were the results?

T-Mobile is catching up in a big way
Total revenue was $8.5 billion, and Sprint saw an operating loss of $192 million during the third quarter. The company saw a total net loss of $765 million, and Sprint continues to bleed postpaid subscribers, the most valuable customers in the industry.

Specifically, the No. 3 (for now) carrier saw 336,000 retail postpaid subscribers jump ship, along with 20,000 retail prepaid subscriber losses. A small silver lining is that Sprint added 840,000 wholesale connections, enough to grow total connections to just over 55 million. Still, postpaid connections are where it matters, and Sprint fell short in this department.

Meanwhile, T-Mobile just reported its strongest growth in the company's history, adding 2.3 million total customers during the third quarter. Of that total, 1.4 million were branded postpaid additions. That puts T-Mobile's total subscriber base at 52.9 million -- within spitting distance of Sprint.

Source: SEC filings.

At this rate, it's entirely possible that T-Mobile will overtake Sprint as the No. 3 domestic carrier next quarter if it can maintain its momentum, and there's no reason to doubt Legere now. T-Mobile's postpaid customer churn continues to trend lower, while Sprint's is heading the opposite direction.

One of these days
New CEO Marcelo Claure acknowledged that the company's pricing plans were too cumbersome and uncompetitive, particularly given the intensifying competition within the industry right now. Claure revamped Sprint's pricing structure just weeks after being named CEO in August.

Sprint is expecting higher costs due to increased upgrade volumes in the current quarter, although the company still expects wireless revenues to be under pressure from mounting postpaid customer losses. Sprint is still expected to meet its 800 MHz and 2.5 GHz LTE deployment targets this year, and 2014 capital expenditures should be nearly $6 billion.

Sprint's purported turnaround has been a decade in the making, yet the company has made little meaningful progress. Former CEO Dan Hesse failed to revitalize the company, and now Claure is taking a shot. Still, one of these days, investors are going to run out of patience.

$19 trillion industry could destroy the Internet
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