Rieder: Edward Snowden's powerful impact

In his speech Friday announcing reforms of government surveillance, President Obama went out of his way to play down the role of Edward Snowden, the former National Security Agency contractor whose leaks brought covert NSA snooping to light. And what he did have to say was hardly complimentary.

"Given the fact of an open investigation, I'm not going to dwell on Mr. Snowden's actions or motivations," the president said. "Moreover, the sensational way in which these disclosures have come out has often shed more heat than light, while revealing methods to our adversaries that could impact our operations in ways that we may not fully understand for years to come."

But the fact that Obama, a vigorous supporter of the NSA's efforts, felt compelled to rein in the surveillance was vivid evidence of Snowden's powerful impact.

It's true that Obama plans to leave in place the heart of the data gathering. For example, vast amounts of information about the telephone calls of ordinary Americans will still be collected. But the data will be held by a third party -- details remain to be worked out -- and the NSA will need to seek permission from the Foreign Intelligence Surveillance Court before accessing information. That's a sharp contrast to the way it has been doing business.

Obama also tightened rules for when the U.S. can monitor foreign leaders, a procedure that has caused the nation no shortage of diplomatic blowback, and called for creation of a panel to represent privacy and civil liberties interests in certain instances before the surveillance court.

And while vigorously defending the NSA, Obama did acknowledged the need to strike a balance between security concerns and privacy.

MORE: Obama seeks to end NASA holding of metadata

MORE: Battle over spying just beginning

The president did not go nearly as far as staunch opponents of the NSA snooping would like. That was hardly a surprise.

But the fact that he did agree to the need for reforms, however modes! t, was entirely due to the Snowden disclosures. And it underscores the value of what Snowden has done.

The former NSA contractor, in temporary exile in Russia and facing espionage charges should he return to the U.S., remains an extremely polarizing figure, detested as a security-endangering traitor by some as unabashedly as he is embraced by civil liberties and privacy advocates.

But the information he disclosed -- carefully, working with top news organizations -- has played an important public service, exposing shadowy practices the American people needed to know about and triggering a vital debate we needed to have.

The matter is hardly settled. There are members of Congress on both the left and the Libertarian right who want to go much further than the president has.

And that's how these fundamental questions need to be sorted out, through the political process, not by unaccountable people behind closed doors.

Is WhatsApp Simply an AIM Alternative for Millennials and Social Media?

Facebook Inc. (NASDAQ: FB) is getting a great company in the WhatsApp buyout. How much it paid for it is another matter, and a matter that is being highly debated at this moment.

WhatsApp Messenger is a cross-platform mobile messaging app that allows you to exchange messages without having to pay for SMS. In short, this is just a revamped ICQ, AOL Instant Messenger and other chat services offered by Google, Yahoo! and even Facebook itself.

In short, it is textless texting, as far as what you have to pay your cellphone provider.

The notion that this was bought for $19 billion is hard to stomach. Can we dare compare 2014 dollars to 1990s money? Arguably not, but you have to recall that dot-com giants were starting to spring up with crazy multiples on revenue and no earnings. Many had no revenues, or at least limited revenues, because the online advertising world simply was not advanced enough nor widespread enough to support the valuations back then.

AOL Inc. (NYSE: AOL) acquired the Israel-based messaging solutions provider Mirabilis for some $287 million back in 1998. AOL’s AIM was already becoming well accepted at the time, but then AIM became perhaps the de facto communications service outside of phones and email for many years. AOL was also to make contingent payments thereafter, but what was ultimately paid in total is so long ago that it is almost immaterial. Still, at the time of the purchase ICQ claimed only about 12 million registered ICQ users at the time.

AOL still has AIM, but the actual ICQ instant messaging service was sold back in 2010 to Digital Sky Technologies Ltd. in Russia for close to $187.5 million — with close to 32 million registered users at the time. AIM has been around since about 1997, and you can run AIM on your smartphones.

So, what is WhatsApp really worth? The company’s blog post on the acquisition claims that the communication service now supports more than 450 million monthly active users worldwide and more than 320 million daily active users.

We won’t bother using the ICQ metrics with any crazy valuation comparisons, because anyone would say that it is simply a different metric entirely. The 450 million monthly active users comes to roughly $35.55 per user, and that is before the extra $3 billion markup on top of the $19 billion price tag.

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We are just dealing with different metrics these days. Facebook shares are down only 2.5%, and its market cap is just shy of $170 billion after the drop, so it lost only about a fraction of the price tag being paid for WhatsApp. AOL’s market cap is only about $3.45 billion, but admittedly there is an age gap issue here.

Mark Zuckerberg is undeniably a visionary. How much this really worth requires a lot of vision — lots and lots of vision.

Child safety report: Recalls ineffective

Just 10% of children's products are returned or fixed during safety recalls, according to a first-of-its-kind report out Tuesday from a children's safety advocacy group.

Such a low number of successfully recalled products means many commonly used items that could injure or kill children likely remain in use, according to the new report from Chicago-based Kids in Danger.

"The return rate of recalls is really abysmal," said Nancy Cowles, KID's executive director. "The government makes announcements, but people don't hear about them or don't respond."

Children's product companies and regulators wait too long to recall products and the practice has contributed to infant and children's deaths, the report says. It typically takes 13 reports of design flaws and two injuries to recall products, KID says.

A recall is a refund, repair or replacement, says Scott Wolfson, communications director at the Consumer Product Safety Commission. Companies can choose which of the the three remedies they use.

Product recalls in the report include unstable dressers, the Nap Nanny infant recliner and baby monitor power cords.

Julie Vallese, a spokeswoman for the Juvenile Product Manufacturers Association, says toys and children's products have always had low recall response rates and the issue is one several Administrations have grappled with. Household appliances tend to have the highest rates.

The study is really looking at the wrong thing, too, says Vallese.

Last year, federal regulators and the former maker of the Nap Nanny recalled all of the company's infant recliners following five deaths and 92 incidents of babies hanging or falling out of the products. The Consumer Product Safety Administration recommends all consumer! s stop using them.(Photo: CPSC)

"Return rates for products are a poor indicator of recall effectiveness since a variety of factors affect how consumers decide to respond," says Vallese, a former spokeswoman for the Consumer Product Safety Commission. "Many products may no longer be in use or have already been disposed of by consumers."

Cowles thinks a lack of publicity is the larger problem. Companies and CPSC distribute joint press releases about recalls and companies that have websites have to post the information online. After that, it's up to the company to share information about a recall on social media and through other platforms.

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Children's product companies are trying to improve recall awareness, Vallese says. JPMA launched an education campaign last year called "It's Not Hard To Fill Out The Card," urged consumers to fill out the registration card for juvenile products.

"It is important to fill it out, so companies can notify a consumer quickly and effectively if a product they have purchased is recalled," says Vallese.

There were 63 recalls in 2013 involving companies that used a Facebook or Twitter page within six months prior to the recall. Of these, the manufacturer only mentioned their product recall on Facebook in nine of those cases and the recalls were only mentioned on Twitter eight times, the report says.

Many people say they hear of about two to three recalls per year, when there are typically over 100 recalls on children's products alone made yearly, Cowles said. In 2013, there were 113 children's products recalled.

"Research has show that consumers need to hear about recall methods multiple times before they take action," said Wolfson.

That makes social media so much more so important in our mobile society, Wolfson said. CPSC is pressing companies to use social media more often to make people aware! of their! recalls.

Charley Pereira of North Carolina became an advocate for child safety after his 10-month-old daughter Savannah was strangled by the cord of her baby monitor in 2010, a death that helped prompted recalls of some monitors. He has fought for stricter rules for the way baby monitors are created and succeeded in stopping companies from portraying baby monitors at an unsafe distance in advertising.

Pereira also worked to add safety labels to products to reduce their risks - and the need to be recalled. He said that many companies are hesitant to put safety labels on products because they believe it will make people too afraid to purchase them.

Cowles wants to see companies promote their recalls that way they promote their products.

"I think social media is like any other tool a company has at their disposal," said Cowles. "They should use it in the same way they would use it for advertising."

Contributing: Jayne O'Donnell

3 Stocks Breaking Out on Big Volume

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

>>5 Stocks Poised for Breakouts

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

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

>>5 High-Yield Stocks Ready to Pay You More in 2014

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

PGT

PGT (PGTI) engages in the manufacture and supply of residential impact-resistant windows and doors. This stock closed up 6.3% to $10.88 in Friday's trading session.

Friday's Volume: 1.51 million

Three-Month Average Volume: 551,829

Volume % Change: 173%

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From a technical perspective, PGTI ripped higher here right above its 50-day moving average of $9.91 with above-average volume. This move pushed shares of PGTI into breakout territory, since the stock took out some near-term overhead resistance at $10.75. Shares of PGTI are now quickly moving within range of triggering another big breakout trade. That trade will hit if PGTI manages to take out some key overhead resistance levels at $11 to its 52-week high at $11.69 with high volume.

Traders should now look for long-biased trades in PGTI as long as it's trending above Friday's low of $10.24 or above its 50-day at $9.91 and then once it sustains a move or close above those breakout levels with volume that hits near or above 551,829 shares. If that breakout hits soon, then PGTI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15.

Rexford Industrial Realty

Rexford Industrial Realty (REXR) is a real estate investment trust that specializes in acquiring, owning and operating industrial properties in Southern California infill markets. This stock closed up 3.9% to $13.33 in Friday's trading session.

Friday's Volume: 370,000

Three-Month Average Volume: 117,694

Volume % Change: 184%

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From a technical perspective, REXR jumped higher here right above some near-term support at $12.80 with above-average volume. This move briefly pushed shares of REXR back above its 50-day moving average of $13.37. Shares of REXR closed just below its 50-day at $13.33. This move is quickly pushing shares of REXR within range of triggering a major breakout trade. That trade will hit if REXR manages to take out some key overhead resistance levels at $13.52 to $13.86 and then once it clears more resistance at $13.97 to $14.04 with high volume.

Traders should now look for long-biased trades in REXR as long as it's trending above near-term support at $12.80 and then once it sustains a move or close above those breakout levels with volume that hits near or above 117,694 shares. If that breakout hits soon, then REXR will set up to re-test or possibly take out its all-time-high at $14.60. Any high-volume move above that level will then give REXR a chance to trend well north of $15.

Medtronic

Medtronic (MDT) manufactures and sells device-based medical therapies worldwide. This stock closed up 1.9% to $58.34 in Friday's trading session.

Friday's Volume: 12.57 million

Three-Month Average Volume: 3.97 million

Volume % Change: 220%

>>5 Ways You Can Trade Like a Hedge Fund in 2014

From a technical perspective, MDT gapped up sharply here right off its 50-day moving average of $57.18 with strong upside volume. This move pushed shares of MDT into breakout territory, since the stock took out some near-term overhead resistance at $57.92. Shares of MDT are now quickly moving within range of triggering another big breakout trade. That trade will hit if MDT manages to clear some more near-term overhead resistance levels at $58.56 to its 52-week-high at $58.85 with high volume.

Traders should now look for long-biased trades in MDT as long as it's trending above Friday's low of $53.01 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.97 million shares. If that breakout hits soon, then MDT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $65 to $67.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Must-See Charts: 5 Trades to Take

>>5 Stocks With Big Insider Buying

>>4 Tech Stocks Under $10 in Breakout Territory

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.

Tom Perkins: Taxes will lead to 'economic extinction' of the 1%

Fortune's Adam Lashinsky and Tom Perkins during an appearance Thursday in San Francisco.

SAN FRANCISCO (CNNMoney) Tom Perkins -- venture capitalist and co-founder of the VC firm Kleiner Perkins Caufield & Byers -- spoke with Fortune's Adam Lashinsky at San Francisco's Commonwealth Club Thursday night.

The event, entitled "The War on the 1%," focused on the issue of income inequality. Perkins, 82, not only revealed his opinions on social, fiscal, and monetary policy, but he also clarified his views on how taxes are being used as a weapon against the wealthy 1% as a whole.

Perkins' infamous Jan. 24 letter to the editor published in the Wall Street Journal compared modern discrimination against America's rich to Nazi Germany's treatment of the Jews. He also claimed that the 1% currently faces a "rising tide of hatred" akin to Kristallnacht. He has since apologized for his extreme comparison, and he said at the event, "Kristallnacht should never have been used. The Holocaust is incomparable." However, Perkins maintained his stance that the wealthy are persecuted, particularly in San Francisco where the Occupy movement, outrage over city gentrification, and protests against Google employee buses illustrate a "demonization of the rich."

Ultimately, the biggest issue Perkins claimed to have with the treatment of the 1% is taxes. "I wouldn't say taxation is a form of persecution," he said. "But the extreme progressivism of the tax system is." He cited statistics about the tax contributions that wealthy Americans make -- including that the top 1% pays more taxes than the bottom 90% combined --and said that the top 1% is carrying the government. "Government is a giant beast that has to be fed, and it's fed with taxes," he said. "And taxes will go up and up and up."

Perkins pegged the problem of the American taxation system on failures in social, fiscal, and monetary policy. The income gap has roots in the War on Poverty, Perkins said, which he wished "had not been such a fiasco." He blamed Lyndon B. Johnson's social programs for an increase in out-of-wedlock birthrates and low-income single parent households. Fiscally, Perkins said that the government spends too much money on entitlement programs, an issue highlighted by the debt that the U.S. accrues as a result. "We're on a knife edge with this incredible debt that can't be paid back," Perkins said. Finally, Perkins views on monetary policy were that historically low interest rates have led to a boom in tech startups. Which, according to Perkins, is a bad thing. "An incredible amount o! f money has flowed into venture capital," he said. So, when students drop out of college and move to Silicon Valley to start companies or design software, "There's so much money [in Silicon Valley], that they can keep failing and failing, so they aren't learning in college anymore."

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Up until the evening of the event -- which Perkins said offstage will probably be his last -- the series of dramatic exchanges between Perkins and the press led Kleiner Perkins and other venture capitalists to distance themselves from his inflammatory statements. "Tom Perkins has not been involved in KPCB in years," Kleiner Perkins tweeted after the letter was published. "We were shocked by his views expressed today in the WSJ and do not agree." Perkins was disappointed by KPCB's response. "They could have chosen not to say anything, but instead they threw me under the bus," he said at the event.

When challenged to say, in 60 seconds, how he would change the world, Perkins made a playfully controversial response. He suggested that, in the tradition of Thomas Jefferson's voting land owners and Margaret Thatcher's idea of only allowing taxpayers to vote, "The Tom Perkins system is: you don't get the vote if you don't pay a dollar in taxes. But what I really think is it should be like a corporation. You pay a million dollars, you get a million votes. How's that?" To which the audience responded with laughter. Perkins later said offstage that what he meant was that, with 50% of registered U.S. voters not paying taxes, "we got ourselves into a mess."

Though Perkins apologized for the use of his Holocaust analogy, he did circle back to the reason for his original thinking at the event. "I think the parallel holds," he said. "The typical Germa! n had nev! er met a Jew." To which Lashinsky suggested, "So perhaps the typical Occupy protester has never met someone who rides a Google bus."

The last question an audience member asked at the end of the event was what the 1% fears. While the Jews of Nazi Germany feared deportation and extermination, what was it that made Perkins afraid of "the war on the 1%?"

Perkins said the fear is higher taxes until there is no 1%. "It's an economic extinction, not a physical one."

Ways to Save Money In Paris

Paris, the City of Light. Too bad it's not exactly light on the wallet. After having spent a few months living there, the French capital is without a doubt my favorite city. And while it's not too hard to convince people to want to go to Paris, it's a tad more difficult to convince them that they don't have to go broke doing so. So to help those with dreams of seeing the Eiffel Tower and Champs-Élysées on a budget, here are my 11 favorite money-saving tips.

See Also: How to Save Money in Walt Disney World

Book hotels outside the city center. Generally speaking, the closer you get to the center of town, the more expensive real estate becomes. To save on lodging, pick a hotel in a less central neighborhood (arrondissement). For instance, a standard room at a Holiday Inn in Paris near Notre Dame (about as central as you can get) is going for $320 (€234) per night in early April. By comparison, a standard room at the Place d'Italie location in the 13th arrondissement is just $213 (€156) per night. Likewise, the standard room at the Gare de l'Est hotel in the 10th arrondissement is $230 (€168) per night. Both are less than two miles away from Notre Dame on foot, and both are incredibly close to metro stops -- though I can attest that the walk from Place d'Italie to Notre Dame through the famous Latin Quarter is quite lovely. (Prices are based on a conversion rate of €1 = $1.37.)

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Buy a multiday metro pass. A one-way ride on a metro train or RER train in Zone 1 will cost $2.32 (€1.70). But if you expect to ride multiple times per day, a Passe illimité (unlimited travel ticket) or Navigo Découverte card will be the way to go. Unlimited passes are available from all metro ticket machines and manned ticket booths, and they offer unlimited rides for one day ($14.81/€10.85), two days ($24.09/€17.65), three days ($32.89/€24.10) or five days ($47.33/€34.70) in Zones 1 through 3, with reduced prices for children. The one-day pass pays for itself after six rides, the two- and three-day passes make sense after about five rides a day, and the five-day pass is the way to go if you'll ride more than four times a day.

Navigo cards can also be purchased in most metro stations; make sure to have the $6.82 (€5) card fee and a small photo (such as an extra passport photo) to hand over. Navigos are good for a full week at a time, but the week always starts on Monday. So if you get to Paris midweek, it's best to pay for single rides or buy an unlimited pass until Monday rolls around again. The Navigo Découverte is $27.90 (€20.40) for access to Zones 1 through 2 for the week. When you add the card fee, the Navigo pays for itself after 15 rides, or about two rides per day.

If you don't think you'll ride the metro that much, another option is to buy a book of ten tickets (carnet de 10) for $18.70 (€13.70), which drops the cost to $1.87 (€1.37) per ticket. But when you consider that a train ride from, say, the Eiffel Tower to the Centre Pompidou will cost $2.32 (or less), compared with approximately $19.75 (€14.50) for a cab, it only makes sense to take the metro.

Rent a bike. Get some fresh air and get around town in mild weather with the Vélib' bike share program. You'll be able to rent a bike from any of the 1,800, 24-hour, self-service kiosks, then return it to the same station or any other.

Subscribe online at the Vélib' Web site or at any of the terminals using your credit card. (Some locations accept only chip-enabled cards.) These temporary memberships cost $2.32 (€1.70, or about the same as one metro ride) for a day or $10.94 (€8, or about four metro rides) for a week. Rides of 30 minutes or less are free, but after that it's $1.36 (€1) for the first additional half hour, $2.73 (€2) for the second additional half hour and $5.46 (€4) for every half hour after that. The additional charges are automatically deducted from the card you signed up with.

Buy a museum pass. Take advantage of 60 museums and monuments around town with a Paris Museum Pass, which offers unlimited entry for two days ($57.32/€42), four days ($76.43/€56) or six days ($94.17/€69), without having to wait in line. Entrance fees to Parisian landmarks range from about $9.55 to $27.30 (€7 to €20). So the two-day pass will save money if you think you'll visit about four or more sites in those two days. To make the four-day pass worthwhile, you'll need to visit one or two sites a day, and the six-day pass starts saving you money after one site a day. See where to buy a Paris museum pass.

Note free museum days. If your trip happens to coincide with the first Sunday of the month, the Journées du Patrimoine (national heritage days in September) or the Nuit Blanche (an all-night art festival in October), then you're in luck. Most of the museums in Paris are open free of charge on those days. Check out a list of museums you can visit free on first Sundays from Time Out Paris.

Skip the top of the Eiffel Tower. Want to get a view of Paris from on high? Do so from the steps of the Sacré Cœur at the top of Montmartre -- it's free. If you still want to say you climbed the Eiffel Tower, get a ticket for the second-floor observation deck. While a trip to the top will cost an adult $20.47 (€15), second-floor access is just $12.28 (€9) for adults and $10.24 (€7.50) for youths. If you're okay with a little exercise, take the stairs instead of the elevator and the ticket price drops to $6.82 (€5) for an adult and $5.46 (€4) for a youth. Speaking of youth…

Lower Government Deficit Comes With Mixed Encouragement

The U.S. Treasury released its Budget statement for January 2014 on Wednesday afternoon. The deficit of $10.4 billion was far narrower than the $30.8 billion deficit expected by Bloomberg. It even came close to beating all deficit estimates from economists.

January’s full treasury report shows $296 billion in total receipts versus $306 billion in outlays. Growth is helping to trim the government’s deficit. The current fiscal deficit of $184 billion for 2014 is basically $100 billion less than the same Treasury deficit that we had seen at the same time a year ago.

Receipts are up 8.2%. Economic growth is helping, but last month’s end of the nation’s extended unemployment benefits has shaved about $7 billion off of the deficit. Spending was shown to be down 2.8%.

There are many things to point to which could create an exception, but this is a monthly number that not many readers want to go too deep into. Just keep in mind that at the end of January the debt held by the public was just over $12.3 trillion and the total government debt including $4.98 trillion in intragovernmental holdings came to $17.29 trillion.

Again, good news… even if the real good news would be that we could start working that deficit down rather than just keeping score by the deficit growing at slower dollar amounts than in the past.

Rackspace CEO Departure Trumps Revenue Beat

Rackspace Hosting Inc. (NYSE: RAX) was supposed to have its earnings report out after the close of trading on Monday. The big news is not that Rackspace managed to beat revenue expectations - Rackspace also announced that Lanham Napier has retired from the company as Chief Executive Officer and as a member of the Board of Directors.

Rackspace's co-founder and Chairman Graham Weston has been appointed as CEO while the company searches for a long-term successor. Weston provided capital for the formation of Rackspace in 1998 and he served as CEO from July 1999 to August 2006.   Rackspace earnings came in at $0.14 in earnings per share on sequential revenue growth of 5% and 16% annual growth to $408.1 million. Estimates from Thomson Reuters were $0.14 EPS and $404.5 million in revenue.

Here is where the revenue beat comes under question – fourth quarter net revenue was positively impacted by currency exchange rates when compared to the previous quarter by $4.2 million and positively impacted when compared to the fourth quarter of 2012 by $0.8 million. So suddenly the beat is not by as much as it looks on the surface, even if it is still a beat.

Rackspace also said that its total server count rose to 103,886, up from 101,967 servers at the end of the previous quarter. The company’s Rackers – employees – grew to 5,651 as of December 31, 2013 versus 5,450 in the previous quarter.

The CEO retirement announcement said that Mr. Napier “plans to invest in and advise other entrepreneurial companies following a decision to step away from public company executive leadership.” The release also said that he will remain a consultant to Rackspace for the next several months to ensure a smooth transition.

Before you just consider this a straight retirement, investors have to consider that Mr. Napier is listed as being only 43 years of age in Yahoo! Finance. Wall Street does not really seem convinced that this company’s woes are over. Shares closed up 2.1% at $40.36 on Monday, but the stock was indicated down 12.5% at $35.40 in the after-hours session. Keep in mind that this stock has recovered from a low of close to $33, but this stock is still down almost half from its peak in 2013 of $75.37.

Jim Cramer's Top Stock Picks: WFM STJ WYN ECOM

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Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Here are some of the hot stocks Jim Cramer talked about on Friday's "Mad Money" on CNBC:

WFM data by YCharts

Whole Foods Markets (WFM): Cramer said things might be ready to turn at Whole Foods now that expectations have been reset.

Stock quotes in this article: WFM, STJ, WYN, ECOM 

STJ data by YCharts

St. Jude Medical (STJ): St. Jude has revolutionary technology that no one can match, said Cramer.

Stock quotes in this article: WFM, STJ, WYN, ECOM 

WYN data by YCharts

Wyndham Worldwide (WYN): Sometimes a declining stock is a buying opportunity, said Cramer, especially when that declining stock is Wyndham.

Stock quotes in this article: WFM, STJ, WYN, ECOM 

ECOM data by YCharts

ChannelAdvisor (ECOM): With more shoppers going online, ChannelAdvisor's platform for online retailers is in demand, said Cramer.

To read a full recap of "Mad Money" on CNBC, click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

Stock quotes in this article: WFM, STJ, WYN, ECOM  At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

Fed will cut bond purchases by $10B in January

The Federal Reserve said Wednesday it will modestly pare back its extraordinary easy-money program, citing recent momentum in the economy and job market.

It marks the first big step toward unwinding the massive stimulus the Fed has pumped into the economy since the 2008 financial crisis and Great Recession.

STOCKS WEDNESDAY: Markets react to Fed news

FIRST TAKE: Fed move demonstrates economy's growing strength

FED STATEMENT: Full text

In a statement after a two-day meeting, the Fed said, that starting in January, it will buy $75 billion a month in government bonds, down from $85 billion a month since October 2012. The Fed will purchase $40 billion in Treasury bonds, down from $45 billion previously, and $35 billion in mortgage-backed securities, down from $40 billion. The purchases are intended to hold down interest rates and spur economic and job growth.

Fed policymakers said they would likely continue to trim the purchases "in further measured steps at future meetings." But they added the purchases "are not on a preset course" and they could adjust the pace based on the labor market outlook, inflation and the program's risks.

The Fed's policymaking committee "sees the improvement in economic activity and labor market conditions (since it began the purchases in September 2012) as consistent with growing strength in the broader economy," the Fed said. The jobless rate has fallen to 7% last month from 8.1% in fall 2012.

Boston Fed President Eric Rosengren was the lone dissenter. With unemployment still elevated and inflation well below the Fed's target, Rosengren believes that tapering "is premature until incoming data more clearly indicate that economic growth is likely to be sustained above its potential rate," the statement said.

Many economists expected that, along with tapering, the Fed would lower its unemployment threshold for how long it will keep its benchmark short-term interest rate near zero from 6.5% to 6%. That would stress that taper! ing does not signal an earlier rise in short-term rates.

Although the Fed did not formally lower the threshold, it added that it expects to keep the benchmark rate near zero "well past the time that the unemployment rate declines below" 6.5%, especially if projected inflation continues to run below" the Fed's 2% target. Inflation, excluding food and energy, has been running at a 1.1% annual rate—the sign of a still-sluggish economy.

The Fed slightly upgraded its economic outlook. It now expects the economy to grow at a 2.2% to 2.3% annual rate this year, up from its September forecast of 2% to 2.3%. It predicts the economy will grow 2.8% to 3.2% in 2014, vs. its previous projection of 2.9% to 3.1%.

The unemployment rate is projected to fall to 6.3% to 6.6% by the end of next year, lower than its previous forecast of 6.4% to 6.8%. The Fed expects the jobless rate to be 5.8% to 6.1% by the end of 2015.

Just a handful of the 34 economists USA TODAY surveyed last week predicted the Fed would reduce the bond purchases this week, but a slight majority said the tapering would begin by January, while many others picked March.

The question of when the Fed will begin to trim the purchases has transfixed Wall Street for months. The Feds stunned financial markets in September by putting off the tapering amid weaker economic data and stood pat again in October. But the odds of the Fed acting in December rose recently as reports showed a strengthening economy.

Monthly job growth has averaged a solid 200,000 the past four months despite the federal government shutdown. In November, housing starts increased at the fastest pace in nearly six years and manufacturing output posted its strongest growth since late 2012.

Congress is poised to pass a two-year budget deal that would alleviate uncertainty among businesses over tax and spending policy.

At the same time, inflation has been running well below normal, theoretically giving the Fed more flexibility to keep the stimul! us going ! and await more signs that the economy will continue to improve.

Since September 2012, the Fed each month has purchased $45 billion in Treasuries and $40 billion in mortgage-backed securities to push down long-term interest rates and stimulate more home and car purchases and business investment. The low rates also have driven investments to riskier assets, fueling a stock market rally.

But Fed policymakers have grown increasingly concerned about the risks of the bond-buying, such as eventual high inflation and the formation of bubbles in real estate, junk bonds and other assets.

Since the Fed began signaling in May that it may soon begin to dial down the purchases, interest rates have drifted higher, with 30-year fixed mortgage rates rising to 4.42% from 3.35%. The rising rates helped convince the Fed to delay tapering in September.

Further complicating the picture is that Fed Chairman Ben Bernanke plans to step down when his term ends in January. Vice Chair Janet Yellen, who has been nominated to succeed him, has expressed an even more pro-growth approach but must deal with a policymaking committee with diverse views of the stimulus.

来自猎头tina的来信

Icahn Eyes eBay

One of our favorite stocks has caught the attention of activist investor Carl Icahn, explains Geoffrey Seiler, editor of BullMarket.com.

eBay (EBAY) disclosed that Carl Icahn had accumulated a 0.82% stake in eBay and proposed a non-binding shareholder proposal to split-off PayPal as a separate unit.

The board rejected the split-off proposal, saying it has examined that idea in detail in the past, and believes keeping PayPal together with eBay's Marketplace unit is in the best interests of shareholders.

It believes PayPal is better able to leverage the company's technology capabilities, commerce platforms, and relationships with retailers, brands, and large merchants worldwide, as part of eBay.

As to its results, the company earned $850 million, or 65 cents per share, up 13% from $751 million, or 57 cents per share, a year earlier. Adjusted earnings rose 15% to $1.07 billion, or 81 cents a share.

Hot Bank Companies To Buy Right Now

The result was in line with the analyst consensus. Revenue jumped 13% to $4.53 billion, just below the $4.54 billion consensus.

eBay generated $1.43 billion in free cash flow during the quarter. It ended the quarter with cash, equivalents, and investments of $12.8 billion, and $4.12 billion in debt. Net cash was approximately $6.62 per share. During the quarter, the company repurchased $254 million of its stock. The company's board also authorized another $5 billion for share repurchases.

Looking first at the operating results, eBay delivered an OK quarter, given challenges, such as the shortened holiday season for the Marketplace unit. PayPal once again delivered solid growth.

In both cases, we think the growth in active users, up 14% year over year at Marketplace and 16% for PayPal, points to continued momentum for the businesses.

Icahn is not the first investor to suggest PayPal should be spun-off. One of the arguments is that PayPal would likely command a higher multiple on its own; it would also open PayPal up to be a takeover target.

Our view of Icahn's investment is that it is, mostly, a positive for shareholders, but a distraction for management. Icahn doesn't always get everything he wants, but he's been pretty successful at bidding up the price of companies he has a stake in.

His investment in eBay, at the least, should help raise the floor price a bit and it certainly will lead to a vigorous debate over the merit of his proposal. Meanwhile, eBay remains one of our favorite stocks for the long-term and we continue to rate it a Buy. Our target is $64.

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Why the Pop?

Citigroup Jumps on the Allergan Bandwagon

Another analyst has jumped on the Allergan (AGN) bandwagon.

Getty Images

Citigroup’s Liav Abraham and team upgraded Allergan to Buy from Neutral, skipping Outperform in between. They explain why:

Following the recent removal of the Restasis and Lumigan overhangs, we are reassured regarding the organic longer-term growth profile of [Allergan]. The stock offers the most attractive growth amongst the peer group (10% and 17.5% 3-year sales and [earnings-per-share  compound annual growth rate] vs. the peer group averages of 7% and 12%). Our 2014e-2016e sales and EPS estimates are 2-15% ahead of the Street.

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Risk-reward skewed to the upside; we prefer to be buyers of the name – Despite the recent share price appreciation, [Allergan's] current 2015e earnings multiple of 17.5x remains only slightly above the peer group average of 16x, despite the company's robust sales and earnings profile. The risk-reward profile remains skewed to the upside: our bear case [target price] represents 17% downside to our base case, vs. 25% upside for our bull case.

Since Dec. 24, Allergan has been upgraded by Wells Fargo and Sun Trust Robinson Humphrey, while getting imitated at Buy at RBC Capital Markets.

Shares of Allergan have gained 2.5% to $114.78 today at 3:44 p.m., while Merck (MRK) has risen 2.4% to $53.33, Hospira (HSP) has ticked up 0.1% to $42.51 and Eli Lily (LLY) has advanced 0.7% to $53.04.

Top 5 Dividend Stocks To Invest In 2015

According to GuruFocus Insider Data, these are the largest CEO sales during the past week: Texas Instruments, Amazon, Johnson Controls and L Brands.

Texas Instruments, Inc. (TXN): Chairman, President & CEO Richard K Templeton sold 700,000 Shares

Chairman, President & CEO of Texas Instruments, Inc. (TXN) Richard K Templeton sold 700,000 shares on July 30 at an average price of $38.79. Texas Instruments has a market cap of $44.17 billion; its shares were traded at around $39.94 with a P/E ratio of 24.45 and P/S ratio of 3.60. The dividend yield of Texas Instruments, Inc. stocks is 2.45%. Texas Instruments, Inc. had an annual average earnings growth of 7.2% over the past 10 years. GuruFocus rated Texas Instruments, Inc. the business predictability rank of 2-star.

Texas Instruments Inc. reported their 2013 second quarter results with revenues of $3.05 billion and net income of $660 million, or $0.58 per share.

Chairman, President & CEO Richard Templeton sold 700,000 shares of TXN stock on July 30 at the average price of 38.79. Sr. Vice President & CFO Kevin March sold 200,000 shares of TXN stock in April, May and July. Director Christine Whitman, Sr. Vice President David Heacock赂 SVP, Secretary & Gen Counsel Joseph Hubach, Sr. Vice President John Szczsponik Jr and Director Daniel Carp sold 440,725 shares of TXN stock in July and August.

Top 5 Dividend Stocks To Invest In 2015: PetroChina Company Limited(PTR)

PetroChina Company Limited produces and distributes oil and gas in the People?s Republic of China. It operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. The Exploration and Production segment explores, develops, produces, and markets crude oil and natural gas, oilsands, and coalbed methane. As of December 31, 2010, it had 11,278 million barrels of proved reserves of crude oil; and 65,503 billion cubic feet of proved reserves of natural gas. The Refining and Chemicals segment engages in the refining of crude oil and petroleum products; and production and marketing of petrochemical products, derivative petrochemical products, and other chemical products. This segment?s product line comprises processed crude oil, gasoline, kerosene, diesel, ethylene, synthetic resins, synthetic fiber materials, polymers, synthetic rubber, and urea. The Marketing segment involves in the marketing of refined products and tradi ng businesses. It operated 17,996 service stations. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and the sale of natural gas. It had a total length of 56,840 kilometers (km) of oil and gas pipelines, including 32,801 km of natural gas pipelines, 14,782 km of crude oil pipelines, and 9,257 km of refined product pipelines. The company was founded in 1988 and is headquartered in Beijing, the People?s Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.

Advisors' Opinion:

• [By Tyler Crowe]

  At the same time, having an OPEC-type price controller would certainly limit how much the U.S. could potentially export at an economically feasible level. Gazprom signed a 30-year deal with PetroChina (NYSE: PTR  ) that will supply the Chinese company with 3.7 billion cubic feet per day of gas starting in 2018, just about the same time when the majority of the other major LNG facilities around the world are expected to come on line. If Russia could get some of these natural gas exporting countries to sign on to this "OPEC of gas" idea, it could change the game.�

• [By Jonas Elmerraji]

  First up is Chinese oil and gas giant PetroChina (PTR). Saying PetroChina has seen a rough 2013 is an understatement. Year-to-date, shares of the $203 billion firm have slipped more than 22% at the same time that the S&P 500 has been in rally mode. But shareholders could be in store for a reprieve this winter thanks to a bullish setup that's been forming in shares of late.

  PetroChina is currently forming an ascending triangle bottom, a trading setup that's formed by a horizontal resistance level to the upside at $118 and uptrending support below shares. Basically, as PTR bounces between those two levels, it's getting squeezed closer and closer to a breakout above the $118 price ceiling. When that breakout happens, it's time to be a buyer.

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

  That $28 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers had been more eager to step in and take gains than buyers were to buy. That's what makes this week's breakout above it so significant. The move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

  If you decide to take the Pandora trade, I'd recommend keeping a protective stop at the 50-day moving average.

• [By vaninaegea]

  I find the analysis and comparison between companies with base in different geographies an entertaining exercise that offers a singular perspective upon future prospects. In other words, business activities are approached from diverse angles according to social, political, and economical background. Hence, Petroleo Brasileiro (PBR) and PetroChina (PTR) do compete in the same segments, but results are separated by a gamut of particularities.

Top 5 Dividend Stocks To Invest In 2015: Torch Energy Royalty Trust(TRU)

Torch Energy Royalty Trust, a grantor trust, holds net profits interests, to receive payments from the working interest owners. Its working interest owners include Torch Royalty Company, Torch E&P Company, Samson Lone Star Limited Partnership, and Constellation Energy Partners LLC. The trust is entitled to receive 95% of the net proceeds attributable to oil and natural gas produced and sold from wells on the underlying properties, including Chalkley Field in Louisiana; the Robinson?s Bend Field in the Black Warrior Basin in Alabama; Cotton Valley Fields in Texas; and Austin Chalk Fields in central Texas. Torch Energy Royalty Trust was founded in 1993 and is based in Wilmington, Delaware.

Hot Medical Companies To Own For 2014: RGC Resources Inc.(RGCO)

RGC Resources, Inc., through its subsidiaries, engages in the distribution of natural gas in Virginia. It is primarily involved in the regulated sale and distribution of natural gas to residential, commercial, and large industrial and transportation customers through underground mains and service lines in Roanoke, Virginia, and the surrounding localities. The company also provides non-regulated services. In addition, it offers information technology consulting services, as well as utility and regulatory consulting services to other utilities. The company operates approximately 1,045 miles of transmission and distribution pipeline; owns and operates eight metering stations; and a liquefied natural gas storage facility located in Botetourt County. RGC Resources, Inc. was founded in 1912 and is based in Roanoke, Virginia.

Top 5 Dividend Stocks To Invest In 2015: Vivo Participacoes S.A.(VIV)

Telecomunicacoes de Sao Paulo S.A.-TELESP provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Its services include local voice services, such as activation, monthly subscription, measured service, and public telephones; intraregional, interregional, and international long-distance voice services; data services comprising broadband services; pay TV services through direct to home satellite technology and land based wireless technology multichannel multipoint distribution service; and network services, such as interconnection and rental of facilities, as well as other services consisting of extended maintenance, caller identification, voice mail, cell phone blockers, computer support, and antivirus for Internet service subscribers. The company also offers multimedia communication services, such as audio, data, voice and other sounds, images, and texts and other information. In addition, it provides interc onnection services to cellular service providers and other fixed telecommunications companies through the use of its network. Further, the company offers telecommunications solutions and IT support designed to address the needs and requirements of companies operating various types of industries, including retail, manufacturing, services, financial institutions, and government. Telecomunicacoes de Sao Paulo S.A.-TELESP provides its products and services through person-to-person sales, telesales, indirect channels, Internet, and door-to-door sales. As of December 31, 2010, its telephone network included 11.3 million fixed lines in service, including residential, commercial, and public telephone lines; 3.3 million broadband clients; and 0.5 million pay TV clients. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil. Telecomunicacoes de Sao Paulo S.A.-TELESP is a subsidiary of Telefonica S.A.

Advisors' Opinion:

• [By Dividend]

  Here are the top yielding stocks from the screening results:
  
  Telefonica Brasil (VIV) has a market capitalization of $25.08 billion. The company employs 19,614 people, generates revenue of $15.201 billion and has a net income of $1.994 billion. Telefonica Brasil�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.198 billion. The EBITDA margin is 34.20 percent (the operating margin is 21.26 percent and the net profit margin 13.12 percent).

• [By Inyoung Hwang]

  Royal Mail (RMG) Group Ltd. jumped the most in a month after the U.K. postal service that listed its shares in October said first-half earnings almost doubled. Vivendi SA (VIV) advanced 1.9 percent after saying it will replace its chairman once it spins off its wireless business. Accor SA dropped 3.9 percent after saying it will separate the operation and ownership of hotels into two businesses.

• [By Jon C. Ogg]

  Telefonica Brasil, S.A. (NYSE: VIV) is one of the top telecom and communications players in Brazil. At $20.10, its 52-week range is $17.91 to $27.71.

• [By Sofia Horta e Costa]

  Vivendi (VIV) rose 2.7 percent to 17.15 euros. Music, pay-TV, European cinema and Internet in Brazil will make up a new media group based in France after the split with phone unit SFR, according to a statement yesterday.

Top 5 Dividend Stocks To Invest In 2015: R.R. Donnelley & Sons Company(RRD)

R.R. Donnelley & Sons Company provides pre-media, printing, logistics, and business process outsourcing products and services to private and public sectors worldwide. The company operates primarily in the commercial print portion of the printing industry, with related product and service offerings designed to offer customers solutions for communicating their messages to target audiences. Its products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial print, direct mail, forms, labels, office products, statement printing, pre media, and logistics services. The company also offers business process outsourcing services that comprise transactional print and outsourcing services, statement printing, direct mail, and print management services; and product configuration, customized kitting, and order fulfillment for technology, medical device, and other companies. It distributes its products to end-users through the United Sta tes postal services, retail channels, electronically, or by direct shipment to customer facilities. R.R. Donnelley & Sons was founded in 1864 and is based in Chicago, Illinois.

Advisors' Opinion:

• [By Eric Volkman]

  RR Donnelley (NASDAQ: RRD  ) will pay a quarterly dividend of $0.26 per share of its common stock on June 3 to shareholders of record as of April 26, the company announced this week.

• [By Selena Maranjian]

  Among holdings in which Caxton Associates increased its stake was R. R. Donnelley (NASDAQ: RRD  ) . Commercial printer Donnelley provides labels, packaging, and more to the private and public sector. It prints many thousands of forms for the SEC, too, and bought Edgar Online. Bears worry about its steep debt load, though the company is free-cash-flow positive. Some also worry about a possible reduction of its dividend, which recently yielded nearly 8%. To succeed, the company needs to do more digital business. To that end, it recently sealed an eBook deal with Harlequin.

Top 5 Dividend Stocks To Invest In 2015: Linear Technology Corporation(LLTC)

Linear Technology Corporation, together with its subsidiaries, designs, manufactures, and markets a line of linear integrated circuits. The company's products include amplifiers, comparators, voltage regulators, voltage references, monolithic filters, linear regulators, DC-DC converters, power over Ethernet controllers, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, Advisors' Opinion:

• [By Marc Bastow]

  Analog integrated circuits and products manufacturer Linear Technology (LLTC) raised its quarterly dividend 3.8% to 27 cents per share, payable Feb. 26 to shareholders of record Feb. 14. This marks the 22nd consecutive annual dividend increase for Linear.
  LLTC Dividend Yield: 2.33%

• [By Dividends4Life]

  This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
  
  Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.
  
  Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.
  
  Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.
  
  BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.
  
  ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.
  
  Omega Healthcare Investors Inc. (OHI) is a real es

Top 5 Dividend Stocks To Invest In 2015: Horizon Lines Inc.(HRZ)

Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.

Top 5 Dividend Stocks To Invest In 2015: People's United Financial Inc.(PBCT)

People?s United Financial, Inc. operates as the bank holding company for People?s United Bank that provides commercial banking, retail and business banking, and wealth management services to individual, corporate, and municipal customers. Its Commercial Banking segment provides commercial and industrial lending, commercial real estate lending, and commercial deposit gathering services, as well as equipment financing, cash management, correspondent banking, and municipal banking services. The company?s Retail and Business Banking segment offers consumer and business deposit gathering services; consumer lending products, including residential mortgage, home equity, and indirect auto lending; business lending; and merchant services. Its Wealth Management segment provides trust services, corporate trust, brokerage, financial advisory services, investment management services, and life insurance and other insurance services, as well as private banking services. The company also offers online and telephone banking, and investment trading services, and automated teller machine (ATM) services. As of March 31, 2011, it operated a network of approximately 341 branches, including full-service supermarket branches, investment and brokerage offices, and commercial banking offices, as well as approximately 518 automated teller machines in Connecticut, Vermont, New York, New Hampshire, Maine, and Massachusetts. The company was founded in 1842 and is headquartered in Bridgeport, Connecticut.

Advisors' Opinion:

• [By Rick Munarriz]

  I went out on a limb last week, and now it's time to see how that decision played out.

  I predicted that People's United Financial (NASDAQ: PBCT  ) would close higher on the week. The regional banker had come up short on the bottom line in its two previous quarters, and the prior week closed with uninspiring earnings news out of the banking behemoths. People's United managed to match expectations on an operating basis, but the market was skeptical of financial services institutions this week. People's United Financial shares closed lower on the week. I was right. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, the market was rocked hard this week, and secondary stocks led the way down. The Nasdaq fell 2.7% on the week. The Dow managed to close just 2.1% lower. I was wrong. My final call was for United Rentals (NYSE: URI  ) to beat Wall Street's quarterly profit target. The provider of equipment rentals with 836 outlets across the country has been beating Wall Street estimates consistently over the past year. Why should that end? Analysts were looking for a profit of $0.47 a share during the quarter, and it came through with adjusted net income of $0.58. I was right.

  Two out of three? I can do better than that.

Top 5 Dividend Stocks To Invest In 2015: AvalonBay Communities Inc. (AVB)

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. As of January 31, 2009, the company owned or held a direct or indirect ownership interest in 164 operating apartment communities comprising 45,728 apartment homes in 10 states and the District of Columbia. It also held a direct or indirect ownership interest in 14 communities under construction, as well as held rights to develop an additional 27 communities. The company?s markets are located in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Midwest, the Pacific Northwest, and the Northern and Southern California regions of the United States. AvalonBay Communities has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1978 and is based in Arlington, Virginia.

Advisors' Opinion:

• [By Rich Duprey]

  Real estate investment trust�AvalonBay Communities� (NYSE: AVB  ) �announced yesterday�its second-quarter dividend of $1.07 per share, the same rate it paid last quarter after raising the payout 10%, from $0.97 per share.

• [By Shauna O'Brien]

  KeyBanc announced on Thursday that it has boosted its rating on AvalonBay Communities Inc (AVB) to “Buy.”

  The firm has upgraded AVB from “Hold” to “Buy,” and has given the company a $139 price target. This price target suggests a 15% upside from the stock’s current price of $120.55. KeyBanc has also upgraded residential REIT UDR, Inc. (UDR) and has cut its rating on Essex Property Trust Inc (ESS).

  Analyst Karin Ford noted: “We upgrade the Apartment REIT vertical from Market-Weight to OVERWEIGHT based upon attractive valuation levels that overlook the potential for accelerating fundamentals, as the impact of new supply wanes and continued employment gains support greater rental demand into ’15.

  “We believe the short-cycle nature of the apartment vertical’s leases place it relatively well within an env’t of rising rates driven by an imprv�� economy; the group’s underperformance YTD and current relative valuation level (4% discount to REIT sector on AFFO multiple) reflects concern over slowing fundamentals amid elevated new supply. We think new supply should peak in late-’14 and give way to accelerating absorption trends.”

  AvalonBay Communities shares were mostly flat during pre-market trading Thursday. The stock is down 11% YTD.

• [By Matt DiLallo]

  Some buyers are now experiencing a sense of urgency, which might cause a pause at some point. Rapidly increasing home prices might even scare some buyers away and force them to continue renting. Apartment companies like AvalonBay Communities (NYSE: AVB  ) and Brookfield Property Partners' (NYSE: BPY) Fairfield Residential are already benefiting from higher occupancy rates, meaning rising home prices could lead to even higher rents.

Top 5 Dividend Stocks To Invest In 2015: H.J. Heinz Company (HNZ)

H. J. Heinz Company manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. The company primarily offers ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition, and other food products. It sells its products through its sales organizations, independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience stores; bakeries; pharmacies; mass merchants; club stores; foodservice distributors; and institutions, including hotels, restaurants, hospitals, health-care facilities, and government agencies. The company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

Advisors' Opinion:

• [By Matt Koppenheffer]

  There's a lot that's not surprising about the acquisition. The size, if anything, is small. Buffett's been very vocal about his desire to make "elephant"-sized purchases. Nor is it surprising that the conglomerate is expanding its reach with a steady utility business. These types of businesses add stability to the insurance and consumer-goods-heavy Berkshire. And it shouldn't be all that surprising that the price for NV Energy doesn't look all that cheap. If the�Heinz� (NYSE: HNZ  ) deal reminded us of anything, it's that Buffett is willing to shell out a "full" price for a good buy.

• [By Eric Volkman]

  McGraw-Hill Financial's (NYSE: MHFI  ) S&P Dow Jones Indices has brought in a pair of big-name stocks to replace issues on two of its signature products. After the close of trading on June 6, both the S&P 100 and the 500 will be home to General Motors (NYSE: GM  ) . The stock replaces Heinz (NYSE: HNZ  ) , which was recently acquired by a consortium led by Berkshire Hathaway (NYSE: BRK-B  ) .

• [By CRWE]

  H.J. Heinz Company (NYSE:HNZ) reported a conference call and Webcast for Securities Analysts and Media (listen only) to discuss the Company�� first-quarter Fiscal 2013 results and its Fiscal 2013 outlook at 8:30 a.m. Eastern time on Wednesday, August 29, 2012.

Top 5 Dividend Stocks To Invest In 2015: Kimberly-Clark Corporation(KMB)

Kimberly-Clark Corporation, together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The Personal Care segment provides disposable diapers, training and youth pants, and swimpants; baby wipes; and feminine and incontinence care products, and related products. It offers its products primarily for household use under various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, and Poise. The Consumer Tissue segment offers facial and bathroom tissue, paper towels, napkins, and related products for household use under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, and Page brands. The K-C Professional & Other segment offers facial and bathroom tissue, paper towels, napkins, wipers, and a range of safety products for the away-from-home marketplace und er Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare, and Jackson brand names. The Health Care segment offers disposable health care products, such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products, and other disposable medical products under the Kimberly-Clark, Ballard, and ON-Q brand names. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. It markets its products through wholesalers, distributors, and direct sales. The company was founded in 1872 and is based in Dallas, Texas.

Advisors' Opinion:

• [By Dan Caplinger]

  Procter & Gamble (NYSE: PG  ) will release its quarterly report on Friday, and investors have watched the stock hit new all-time record highs in November before falling back in the past two months. Despite the optimism, Procter & Gamble earnings face pressure from international giant Unilever (NYSE: UL  ) as well as domestic rivals Colgate-Palmolive (NYSE: CL  ) and Kimberly-Clark (NYSE: KMB  ) . The question facing investors is whether P&G can sustain its longtime competitive advantages against its rivals and bolster its growth.

• [By Markus Aarnio]

  Procter & Gamble's competitors include Johnson & Johnson (JNJ) and Kimberly-Clark Corporation (KMB). Here is a table comparing these companies.

• [By Dan Caplinger]

  Kimberly-Clark (NYSE: KMB  ) will release its quarterly report next Monday, and early expectations are for the consumer-products giant to produce reasonable growth. But given the recent declines in its stock, can Kimberly-Clark earnings grow fast enough to make investors happy?

• [By Keith Speights]

  Additional competition comes from Kimberly-Clark (NYSE: KMB  ) . The company is more well-known for its consumer products such as diapers, paper towels, and tissues, but it also has a large health care business segment. Last year, Kimberly-Clark generated sales topping $1.6 billion from its medical devices, surgical products, and infection prevention products. While this total represented less than 8% of total sales, the company intends to shift more resources to the health care unit in the future.�

Top 5 Dividend Stocks To Invest In 2015: United Community Bancorp(UCBA)

United Community Bancorp operates as the holding company for the United Community Bank that provides banking products and services to individuals and businesses in southeastern Indiana. It offers a range of deposit instruments, including noninterest-bearing demand accounts, such as checking accounts; interest-bearing accounts, consisting of NOW and money market accounts; regular savings accounts; and certificates of deposit, as well as municipal deposits. It also originates one- to four-family residential real estate, multi-family real estate, and nonresidential real estate and land loans, as well as construction and commercial loans. In addition, the company provides a range of consumer loans consisting of home equity loans and lines of credit, as well as loans secured by savings accounts or certificates of deposit (share loans); new farm and garden equipment, automobile, and recreational vehicle loans; and secured and unsecured personal loans. The company is headquartere d in Lawrenceburg, Indiana. United Community Bancorp is a subsidiary of United Community MHC.

Top 5 Dividend Stocks To Invest In 2015: Chimera Investment Corporation (CIM)

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. Its targeted asset classes include agency or non-agency RMBS; prime, jumbo prime, and Alt-A mortgage loans; first or second lien loans secured by multifamily properties, mixed residential or other commercial properties, retail properties, office properties, or industrial properties; and asset-based securities (ABS), including commercial mortgage-backed securities, debt and equity tranches of collateralized debt obligations, and consumer and non-consumer ABS. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its share holders. Chimera Inve stment Corporation was founded in 2007 and is based in New York, New York.

Advisors' Opinion:

• [By Dan Caplinger]

  Berkshire isn't the only company where book value plays an important role. In the mortgage REIT realm, the value of the investment portfolio for a given mortgage REIT reduced by the REIT's outstanding debt, sometimes referred to as net asset value rather than book value, gives valuable information about its relative valuation. Industry leader Annaly Capital (NYSE: NLY  ) currently sports a price-to-book ratio of 0.96 based on its most recently provided figures, reflecting in part investor skepticism about whether the REIT's agency-issued mortgage-backed securities will hold their value once the Federal Reserve stops making extensive bond purchases as part of its quantitative easing program. By contrast, Annaly's non-agency-issued counterpart, Chimera Investment (NYSE: CIM  ) , sports a price-to-book ratio of nearly 1.1, indicating a significant premium to the REIT's stated net asset value that could be due to the fact that the Fed hasn't focused its efforts on the alternative securities that Chimera tends to choose for its portfolio.

Top 5 Dividend Stocks To Invest In 2015: Cornerstone Progressive Return Fund(CFP)

Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.

Advisors' Opinion:

• [By Dan Caplinger]

  But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

  Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

  When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top 10 IRA Rollover Destinations

Investors are expected to rollover about $280 billion into IRAs this year, with almost 10% of affluent investors moving assets, according to Market Strategies International. Almost a quarter of investors have at least one retirement account with a former employer. Those accounts hold about a quarter of those investors’ assets, too.

Where, though, are those assets going?

MSI identified the top 10 firms investors choose to roll their assets into. The report found low fees and expenses were the top criteria for investors choosing a rollover destination.

Interestingly, an existing relationship with the firm was only the fourth most important factor, the report found. Respondents cited an easy rollover process and a firm with a good reputation as more important criteria than having an existing relationship.

“Opportunities exist in this very competitive market for the providers who acknowledge investor fee sensitivity and make it easy, especially for existing customers, to transfer idle retirement plan assets into a rollover IRA,” Julia Johnston-Ketterer, senior director and author of the Investor Rollover Assets in Motion study, said in a statement.

MSI surveyed more than 4,100 investors with at least $100,000 in investable assets for the report.

Keep reading for the top 10 rollover destinations:

10. T. Rowe Price

9. Edward Jones

8. JPMorgan Chase

7. Wells Fargo Advisors

6. Ameriprise

5. USAA (United Services Automobile Association)

4. Charles Schwab

3. E*Trade

2. Vanguard

1. Fidelity Investments

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