Mortgage Rates Steady, Little Changed in Latest Survey

Ben Margot/AP WASHINGTON -- Average U.S. long-term mortgage rates were stable to slightly higher this week, remaining near their lows for the year. Mortgage company Freddie Mac said Thursday that the nationwide average for a 30-year loan was 4.13 percent, unchanged from last week. The average for the 15-year mortgage, a popular choice for people who are refinancing, edged up to 3.26 percent from 3.23 percent last week. Mortgage rates are below the levels of a year ago, having fallen in recent weeks after climbing last summer when the Federal Reserve began talking about reducing the monthly bond purchases it was making to keep long-term rates low. The government reported Thursday that sales of new homes in the U.S. plunged by 8.1 percent in June, a sign that real estate continues to be a weak spot in the economy. Home sales had been improving through mid-2013, only to stumble over the past 12 months due to a mix of rising prices, higher mortgage rates and meager wage growth. At 4.13 percent, the rate on a 30-year mortgage is down from 4.53 percent at the start of the year. Rates have fallen even though the Fed has been trimming its monthly bond purchases. Fed Chair Janet Yellen told Congress last week that the purchases likely will end completely at the end of October. But at the same time, Yellen said during congressional testimony that the Fed still sees the need to keep its benchmark short-term rate at a record low near zero to give the economy support.

Earth to Lucy: What’s Going on With This Market?

What if we used all out brains (and please, be nice with jokes about your friendly neighborhood blogger not using any of his)? Luc Besson takes the myth that humans only use 10% of our brains, and adds Scarlett Johansson and comes up with Lucy, a $40 million film that could top the box office this week. In the movie, an evil gangster sews a new designer drug into Johannson’s belly, making he a drug mule. But when the drug leaks, it causes her to start using her brain–all of it Mayhem ensues. Reviews range from lukewarm– Slate’s Dana Stevens doesn’t recommend the move but notes it’s a choice “you might not regret if you dial your expectations down (or your drug intake up)”–to why not–The New York Times’ Manohla Dargis calls Lucy “an entertaining workout” that lays “waste to both men and any semblance of story sense”–to heck yeah–Vulture.com’s David Edelstein calls it “an outlandishly entertaining mixture of high silliness and high style.” Imagine what Besson could have done if he’d just used more of his brain.

Universal Pictures

If only we had that kind of brain power Lucy does, we’ obviously have been able to make sense of this week’s market moves. But alas: The S&P 500 finished the week little change at 1,978.34, while the Dow Jones Industrial Average fell 0.8% to 16,960.57. The Nasdaq Composite gained 0.4% 4,449.56, while the small-company Russell 2000 fell 0.6% to 1,144.34. Stranger still: The market received some fairly solid news–including the fewest jobless since 2006–and couldn’t capitalize on it. Part of the problem was some high-profile earnings disappointments from the likes of Caterpillar (CAT) and Boeing (BA), which would weigh more heavily on the price-weighted Dow. What a mess.

Despite some of those big misses, Marketfield’s Michael Shaoul likes what he sees from earnings and large-cap stocks:

As the Q2 2014 earnings season has progressed to the point that a third of the companies in the S&P 500 index have reported, it has produced corporate data that is broadly supportive of the current equity market, with 77% of companies reporting bottom line surprises and 66% top line wins. It is too early to state how earnings are breaking across sectors but we are encouraged by the general tone of releases and interested to see that input costs, including that of labor, are clearly becoming more of a factor than they have been in recent quarters. Given the help from earnings we have not been surprised to see the S&P 500 index edge close to the 2000 level and at Wednesday's record close of 1987.01 we are within 1% of this target. Whether we will have the momentum to break through and extend gains over the rest of summer still remains to be seen but overall the action within the large cap index can only be described as constructive.

Strategas Research Partners’ Nicholas Bohnsack and Ryan Grabinski explain that the S&P 500 isn’t as fair valued as it looks:

A sluggish top-line has produced an elevated price-to-sales ratio for the S&P 500 and nearly all of its component sectors. Down the cap spectrum, the valuation optics is far more extended. Concerns on elevated P/Sales ratios have likely been held in check by the current P/E framework we highlight…the Index trades 17.7x TTM and 15.7x NTM earnings. Consider, however, the material impact so-called financial engineering has had on bulking up the denominator of the P/E equation, resulting in a lower, seemingly "fair" quotient. To the extent to which the c-suite has largely exhausted their ability to pad the bottom-line, top-line growth remains below trend (running ~3.1% Y/Y through 1H vs. 1H '13 vs. a full-year consensus range of +4.5-5.0%), and the Street begins to soften the implied growth rate of forward estimates, the fuel tank for cyclical multiple expansion may be half empty.

Russell Investment’s Andrew Pease wonders if “a lack-of-fear index” is needed:

Franklin Roosevelt famously said "the only thing we have to fear is fear itself." Right now, the thing to fear is, actually, the lack of fear…

…volatility at current levels has historically been a pre-condition for higher volatility. So it's reasonable to expect volatility to increase at some stage. The challenge is to identify catalysts. Geopolitics is always a risk, but the signal we are on alert for is a hawkish shift in Fed language. This could happen if the rise in U.S. core inflation over the first half of the year continues. We're not forecasting this—our models predict core inflation will stay close to 2% through 2015—but an inflation surprise could shake markets out of their current complacency.

Something has to, right?

David Lam Awaits Payday from Private Equity Deal

BY JANE A. PETERSON

In what was touted as Southeast Asia's biggest private equity deal of 2014, KKR agreed in May to acquire Singapore-listed packaging firm Goodpack for $1.1 billion. The transaction, which awaits court and regulatory approvals, brings a long-awaited payday for Goodpack founder David Lam, who can cash out his 32% stake for $350 million but has an option to buy shares later. Despite the windfall, Lam still falls short of returning to the upper echelon of Singapore wealth; he was last featured on our list in 2008 at No. 40 with a net worth of $120 million. That year, when the financial crisis slammed Goodpack's shares, Lam failed in an attempt to sell his company. A year later, after he outlined plans to diversify, the shares began to recover, but not quite enough for him to claim a spot on our ever more rarefied Singapore wealth list.

David Lam

An engineer by training, Lam, 62, designed sturdy steel containers after watching wooden crates filled with raw rubber fall to pieces when accidentally dropped from a truck. Lam signed his first client, Goodyear Tire, in 1991 and by 2000 was shipping more rubber than his wood crate rivals.

Today Goodpack has a 2.7-million-strong fleet of what is referred to as intermediate bulk containers. Goh Han Peng, an analyst at OSK-DMG, predicts strong expansion over the next decade as synthetic rubber companies proliferate in Russia and Asia. Lam, who will remain in management, sees new opportunities such as containers for auto parts.

Goodpack is KKR's first acquisition in Singapore since it opened a Southeast Asia office in 2012. Sniffing opportunities, another PE heavyweight, Blackstone, followed suit, setting up a Singapore outpost last October. The opening was attended by Deputy Prime Minister Tharman Shanmugaratnam and Blackstone Chairman Stephen Schwarzman. But nine months on, the firm has yet to ink a deal in the city-state.

Are more big buyouts in the offing? Tarun Kataria, chairman of Cityspring Management, a corporate finance advisory firm, says he doesn't foresee a flood as there are slim pickings among Singapore's listed firms. Trailing tycoons may need to find another way back.

Click here for more from this issue's Singapore Richest

Markets Steady Despite Mixed Economic Data

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U.S. stocks were little changed as economic data came in mixed.

The Commerce Department reported that new home sales fell in the month June, while initial jobless claims came in better than expected.

Investors and traders cheered positive quarterly results from Facebook and Ford, while news reports of M&A activity made Thursday's trading session rather interesting as major indices fluctuated but ended the day almost where they started.

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The Dow lost 0.02 percent, closing at 17,083.80. The S&P 500 gained 0.05 percent, closing at 1,987.96. The NASDAQ lost 0.04 percent, closing at 4,472.11. Gold lost 0.90 percent, trading at $1,292.90 an ounce. Oil lost 1.14 percent, trading at $101.94 a barrel. Silver lost 2.64 percent, trading at $20.44 an ounce.

News Of Note

Initial Jobless Claims fell 19,000 to 284,000, below the consensus of 302,000. Continuing claims declined 8,000 to 2.50 million.

July U.S. PMI Manufacturing fell to 56.3 from 57.3, falling short of estimates of 57.6.

June New Home Sales declined 8.1 percent to 406,000, below expectations of 479,000.

EIA Natural Gas Inventory rose 90 bcf, below expectations for a gain of 96 bcf.

July Kansas City Fed Manufacturing Survey rose to +9 from +6 in June. Analysts were expecting the Survey to read +6 in July.

U.S. regulators voted three to two to pass new restrictions on the money market industry to avoid a recurrence of corporate lending leading up to the 2008 financial crisis.

Analyst Upgrades And Downgrades Of Note

Analysts at Bank of America downgraded Boeing (NYSE: BA) to Neutral from Buy with a price target lowered to $140 from a previous $154. Also, analysts at JPMorgan maintained an Overweight rating on Boeing with a price target raised to $168 from a previous $167. Shares lost 1.82 percent, closing at $124.40.

Analysts at Raymond James maintained an Outperform rating on Delta Air Lines (NYSE: DAL) with a price target raised to $48 from a previous $46. Also, analysts at UBS maintained a Buy rating on Delta Air Lines with a price target raised to $52 from a previous $50. Shares lost 2.76 percent, closing at $38.07.

Analysts at Barclays maintained an Equal-Weight rating on Dow Chemical Company (NYSE: DOW) with a price target raised to $58 from a previous $54. Also, analysts at JPMorgan maintained a Neutral rating on Dow Chemical with a price target raised to $50 form a previous $48. Shares lost 0.09 percent, closing at $53.84.

Analysts at Tigress Financial downgraded EMC (NYSE: EMC) to Buy from Strong Buy. Also, analysts at Credit Suisse maintained an Outperform rating on EMC with a price target raised to $32 from a previous $30. Shares gained 0.49 percent, closing at $28.89.

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Analysts at Benchmark downgraded Electronic Arts (NASDAQ: EA) to Hold from Buy with a price target raised to $41.82 from a previous $41.01. Also, analysts at EVA Dimensions upgraded Electronic Arts to Hold from Underweight. Shares gained 2.22 percent, closing at $36.84.

Analysts at Jefferies maintained a Buy rating on Facebook (NASDAQ: FB) with a price target raised to $100 from a previous $85. Meanwhile, analysts at JMP Securities maintained an Outperform rating on Facebook with a price target raised to $90 from a previous $83. Also, analysts at Nomura maintained a Buy rating on Facebook with a price target raised to $82 from a previous $78. Shares hit new 52-week highs of $76.90 before closing the day at $74.98, up 5.18 percent.

Analysts at Stifel Nicolaus upgraded PepsiCo (NYSE: PEP) to Buy from Hold. Also, analysts at Barclays maintained an Overweight rating on Pepsi with a price target raised to $95 from a previous $91. Meanwhile, analysts at Jefferies maintained a Buy rating on Pepsi with a price target raised to $103 from a previous $102. Shares gained 1.20 percent, closing at $91.91.

Analysts at Credit Suisse maintained an Outperform rating on TripAdvisor (NASDAQ: TRIP) with a price target lowered to $120 form a previous $125. Also, analysts at UBS maintained a Neutral rating on TripAdvisor with a price target raised to $98 from a previous $87. Shares lost 5.19 percent, closing at $101.79.

Equities-Specific News Of Note

U.S. authorities are investigating UBS (NYSE: UBS) over possible money laundering and tax fraud in France. Shares gained 1.32 percent, closing at $18.48.

MGIC Investment (NYSE: MTG) announced that its CEO Curt Culver will retire from the company on March 1, 2015. Shares lost 0.38 percent, closing at $7.97.

Vale (NASDAQ: VALE) announced that its second quarter iron ore output rose 13 percent from a year ago to 79.4 million metric tons. Shares gained 1.53 percent, closing at $14.56.

Elliot Management disclosed a 6.7 percent stake in Interpublic Group (NYSE: IPG) and intends to push the came to sell itself. Shares gained 1.51 percent, closing at $20.15.

eBay (NASDAQ: EBAY) plans to offer a $3.5 billion bond sale for general operating activities and to pay down outstanding short-term debt. Shares gained 1.08 percent, closing at $53.23.

McDonald's (NYSE: MCD) announced it will continue using its Chinese meat supplier despite a government inspection claiming that it used expired meat. Shares finished the day unchanged at $95.35.

Wal-Mart (NYSE: WMT) announced that its U.S. CEO Bill Simon will leave the company and replaced with Greg Foran as of August 9. Shares lost 0.83 percent, closing at $76.35.

Verizon (NYSE: VZ) plans to sell $2 billion in 2020 notes, $4.5 billion in 2046 notes and $5.5 billion in 2054 notes. The proceeds will be used to exchange offers for 11 debt series. Shares gained 0.27 percent, closing at $51.05.

Freeport McMoRan (NYSE: FCX) will resume concentrate shipments from Indonesia. The company will pay higher royalties of four percent on copper sales after paying between 1.5 percent and 3.5 percent under the old deal with the government. Shares lost 2.65 percent, closing at $37.53.

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Morgan Stanley (NYSE: MS) was fined $275 million because of misrepresentation of underlying MBS loans. Shares hit new 52-week highs of $33.60 before closing the day at $33.40, up 0.15 percent.

Winners Of Note

This morning, Nokia (NYSE: NOK) reported its second quarter results. The company announced an EPS of $0.08, beating the consensus estimate of $0.06. Revenue of $3.96 billion beat the consensus estimate of $3.91 billion. During the quarter, the company saw its telecom equipment unit's revenue drop eight percent from a year ago to 2.57 billion euros, marking an improvement from the 17 percent decline in the previous quarter. The company noted that its sales were impacted by contract exists and divestment, lower maintenance and implementation work and declining 3G orders, which was only partially offset by rising 4G and core network orders. Mobile broadband equipment revenue rose six percent to 1.36 billion euros. Gross margin for the quarter improved by 40bps to 44 percent. The company confirmed it will begin a share buyback program soon. Shares hit new 52-week highs of $8.35 before closing the day at $8.32, up 8.33 percent.

This morning, Under Armour (NYSE: UA) reported its second quarter results. The company announced an EPS of $0.08, beating the consensus estimate of $0.07. Revenue of $610.0 million beat the consensus estimate of $574.37 million. Net income for the quarter at $18 million was unchanged from a year ago despite a 35 percent rise in apparel net revenue. Footwear net revenue rose 34 percent from a year ago to $110 million, while accessories net revenue rose 18 percent to $60 million. The company saw its gross margin improve by 90bps to 49.2 percent. Under Armour issued guidance and sees its fiscal year 2014 revenue being $2.98 billion to $3 billion and an operating income of $343 million to $345 million. Shares hit new 52-week highs of $70.25 before closing the day at $69.55, up 14.71 percent.

According to Bloomberg, SodaStream (NASDAQ: SODA) is in talks with an unnamed investment firm to be taken private for $40 per share. Shares gained 9.45 percent, closing at $31.63.

BlackBerry's (NASDAQ: BBRY) CEO John Chen said that it is talking with other companies to form a potential partnership. Shares gained 5.60 percent, closing at $10.38.

According to Bloomberg, Zillow (NASDAQ: Z) is interested in acquiring Trulia (NYSE: TRLA). A source told Bloomberg that the price tag on a deal could be $54 per share, reflecting a $2 billion valuation. Shares of Zillow hit new 52-week highs of $157.61 before closing the day at $145.76, up 15.25 percent. Shares of Trulia also hit new 52-week highs of $57.00 before closing the day at $53.74, up 32.43 percent.

Decliners Of Note

This morning, Precision Castparts (NYSE: PCP) reported its first quarter results." The company announced an EPS of $3.31, missing the consensus estimate of $3.35. Revenue of $2.53 billion missed the consensus estimate of $2.58 billion. Net income for the quarter rose to $482 million from $438 million in the same quarter a year ago, as sales rose seven percent from a year ago because of a positive impact from a full quarter of Permaswage and two months of Aerospace Dynamics International. Forged Products sales rose to $1.096 billion from $1.065 billion a year ago because of higher regional/business jet sales and flat large commercial and military sales. However, oil and gas shipments fell by nine percent in the quarter, but the company did note that it is winning sizable new orders and shipments will ramp up over the next 12 months and beyond. Shares lost 5.53 percent, closing at $236.21.

This morning, D. R. Horton (NYSE: DHI) reported its third quarter results. The company announced an EPS of $0.32, missing the consensus estimate of $0.49. Revenue of $2.15 billion beat the consensus estimate of $2.08 billion. Net income for the quarter fell to $113.1 million from $146 million in the same quarter a year ago, as the company saw a $54.7 million pre-tax charge for inventory impairments. Closings for the quarter rose 28 percent to $2.1 billion and 19 percent in homes to 7,676. Backlog for the quarter rose 26 percent in value to $3.3 billion and 15 percent in homes to 11,365. Home sales gross margin in the quarter fell to 20.7 percent from 21.4 percent in the same quarter a year ago. Shares lost 11.53 percent, closing at $21.94.

Earnings Of Note

This morning, Ford (NYSE: F) reported its second quarter results. The company announced an EPS of $0.40, beating the consensus estimate of $0.38. Revenue of $37.40 billion beat the consensus estimate of $36.13 billion. Net income for the quarter rose to $1.31 billion from $1.23 billion in the same quarter a year ago, as all automotive business units were profitable and demonstrated improvements from a year ago, except South America. North America achieved a record quarterly performance for pre-tax profit of $2.44 billion compared to $2.32 billion a year ago despite an estimated market share loss of 1.2 points to 15.3 percent. Europe Wholesales saw a pre-tax profit of $14 million compared to a loss of $306 million a year ago while pre-tax profit in Asia-Pacific rose to $159 million from $130 million a year ago, partly because of a 26 percent year over year wholesale volume in China. The company guided its North American profits to be lower than 2013 and for Asia-Pacific's profit to be higher than a year ago. Shares gained 0.34 percent, closing at $17.84.

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This morning, Dunkin' Brands Group (NASDAQ: DNKN) reported its second quarter results. The company announced an EPS of $0.47, in line with the consensus estimate. Revenue of $190.90 million missed the consensus estimate of $198.54 million. Net income for the quarter rose to $46.2 million from $40.8 million in the same quarter a year ago, as same-store sales rose 1.8 percent at Dunkin' Donuts restaurants and rose 4.2 percent at Baskin-Robbins. The company noted that a cold and rainy start to the spring season contributing to lower growth figures, but same-store sales gradually improved throughout the quarter as June average weekly sales was the highest ever. Dunkin' Brands did, however, lower its full year fiscal 2014 guidance and expects its EPS to be $1.73 to $1.77, down from a previous guidance of $1.73 to $1.83. Revenue is guided to grow at five percent to seven percent instead of a prior guidance of six percent to eight percent. Shares lost 4.42 percent, closing at $42.01.

This morning, General Motors (NYSE: GM) reported its second quarter results. The company announced an EPS of $0.58, missing the consensus estimate of $0.59. Revenue of $39.6 billion missed the consensus estimate of $40.59 billion. Net income for the quarter fell to $0.2 billion from $1.2 billion in the same quarter a year ago after taking a hit of $1.2 billion in recall-related costs and $200 million in restructuring costs. The North American division saw its EBIT decline to $1.4 billion from $2 billion a year ago, while the European division saw an adjusted loss widen to $300 million from $100 million a year ago. GM Financial saw its pre-tax earnings flat from a year ago at $300 million. As a whole, General Motors' margins were flat from a year ago at 9.3 percent. Shares lost 4.46 percent, closing at $35.74.

After the market closed, Visa (NYSE: V) reported its third quarter results. The company announced an EPS of $2.17, beating the consensus estimate of $2.10. Revenue of $3.16 billion beat the consensus estimate of $3.15 billion. Shares were trading lower by 2.71 percent at $216.70 following the earnings release.

After the market closed, Starbucks (NASDAQ: SBUX) reported its third quarter results. The company announced an EPS of $0.67, beating the consensus estimate of $0.66. Revenue of $4.15 billion beat the consensus estimate of $4.14 billion. Shares were trading lower by 0.70 percent at $79.89 following the earnings release.

After the market closed, Amazon.com (NASDAQ: AMZN) reported its second quarter results. The company announced an EPS loss of $0.27, missing the consensus estimate of a loss of $0.15. Revenue of $19.34 billion was in line with the consensus estimate. Shares were trading lower by 5.02 percent at $340.60 following the earnings release.

Quote Of The Day

"This was a good quarter for us." - Facebook CEO Mark Zuckerberg commenting on the company's second quarter results.

Posted-In: Earnings News Guidance Econ #s Economics After-Hours Center Markets Movers Best of Benzinga

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

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5 Stocks Insiders Love Right Now

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

>>Hedge Funds Hate These 5 Stocks -- Should You?

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

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

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

>>Warren Buffett's Top 25 Stocks for 2014



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

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

>>5 Stocks Ready for Breakouts

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

Accelerate Diagnostics

One health care player that insiders are active in here is Accelerate Diagnostics (AXDX), which focuses on developing and commercializing instrumentation for the rapid identification and antibiotic susceptibility testing of infectious pathogens. Insiders are buying this stock into major strength, since shares are higher by 67% so far in 2014.

>>3 Stocks Under $10 to Trade for Breakouts

Accelerate Diagnostics has a market cap of $857 million and an enterprise value of $820 million. This stock trades at a premium valuation, with a price-to-book of 22.14. This is a cash-rich company, since the total cash position on its balance sheet is $38.56 million and its total debt is just $267,000.

A director just bought 20,000 shares, or about $397,000 worth of stock, at $19.89 per share. A beneficial owner also just bought 20,000 shares, or about $430,000 worth of stock, at $19.96 per share.

From a technical perspective, AXDX is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock recently fell sharply from $31.86 to its low of $18.71 a share. During that drop, shares of AXDX have been consistently making lower highs and lower lows, which is bearish technical price action. That said shares of AXDX have started to bounce off that $18.71 low and it's now starting to trend within range of triggering a near-term breakout trade.

If you're bullish on AXDX, then I would look for long-biased trades as long as this stock is trending above its recent low of $18.71 or above its 200-day at $17.25 and then once breaks out above some near-term overhead resistance at $21.42 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 219,627 shares. If that breakout starts soon, then AXDX will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $24.31 to $26 a share.

Colfax

A diversified machinery player that insiders are jumping into here is Colfax (CFX), which provides gas-and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide. Insiders are buying this stock into modest strength, since shares are up 8% so far in 2014.

>>5 Hated Earnings Stocks You Should Love

Colfax has a market cap of $8.5 billion and an enterprise value of $9 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 45 and a forward price-to-earnings of 22. Its estimated growth rate for this year is 12.7%, and for next year it's pegged at 32.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $482.18 million and its total debt is $1.15 billion.

A director just bought 7,447 shares, or about $500,000 worth of stock, at $31.59 per share.

From a technical perspective, CFX is currently trending above its 200-day moving average and well below its 50-day moving average, which is neutral trendwise. This stock is starting to bounce higher right off its 200-day moving average and it's quickly moving within range of triggering a major breakout trade that could push the stock into a previous gap-down-day zone.

If you're in the bull camp on CFX, then I would look for long-biased trades as long as this stock is trending above its 200-day at $66.41 or above more near-term support at $65.72 and then once it breaks out above some near-term overhead resistance levels at $69 to $70 with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 544,194 shares. If that breakout begins soon, then CFX will set up to re-fill some of its previous gap-down-day zone from earlier this month that started at $73 a share.

Alcoa

One basic materials player that insiders are active in here is Alcoa (AA), which produces and manages primary aluminum, fabricated aluminum, and alumina. Insiders are buying this stock into major strength, since shares are up sharply by 41% so far in 2014.

Alcoa has a market cap of $20 billion and an enterprise value of $26 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 21. Its estimated growth rate for this year is 78.8%, and for next year it's pegged at 37.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.18 billion and its total debt is $8.06 billion. This stock currently sports a dividend yield of 0.80%.

A director just bought 30,120 shares, or about $498,000 worth of stock, at $16.54 per share.

From a technical perspective, AA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $10.81 to its intraday high of $17.22 a share. During that uptrend, shares of AA have been consistently making higher lows and higher highs, which is bullish technical price action. That said, shares of AA have now entered overbought territory, since the stock has a relative strength index reading of 77.

If you're bullish on AA, then you might be best served waiting for this stock to pull back off overbought levels. Bulls can look to buy AA off weakness on a pullback back towards its 50-day moving average of $14.61 a share.

Blue Capital Reinsurance

One financial player that insiders are jumping into here is Blue Capital Reinsurance (BCRH), which offers collateralized reinsurance in the property catastrophe market. Insiders are buying this stock into notable strength, since shares are up by 13% over the last six months.

>>3 Stocks Rising on Big Volume

Blue Capital Reinsurance has a market cap of $174 million and an enterprise value of $43 million. This stock trades at cheap valuation, with a forward price-to-earnings of 8.6. Its estimated growth rate for this year is 822.6%, and for next year it's pegged at 2.7%. This is a cash-rich company, since the total cash position on its balance sheet is $129.40 million and its total debt is zero. This stock currently sports a dividend yield of 6.4%.

A beneficial owner just bought 38,200 shares, or about $760,000 worth of stock, at $19.90 to $19.93 per share. That same beneficial owner also just bought 23,500 shares, or about $464,648 worth of stock, at $19.71 per share.

From a technical perspective, BCRH is currently trending above its 50-day moving average, which is bullish. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $17.15 to its recent high of $20.05 a share. During that move, shares of BCRH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BCRH within range of triggering a big breakout trade.

If you're bullish on BCRH, then I would look for long-biased trades as long as this stock is trending above its 50-day at $18.35 and then once it breaks out above some near-term overhead resistance levels at $20.05 to its all-time high at $21.02 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 55,887 shares. If that breakout hits soon, then BCRH will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30 a share.

Synergy Resources

One final stock with some decent insider buying is Synergy Resources (SYRG), which acquires, explores, develops, produces and exploits crude oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. Insiders are buying this stock into big strength, since shares are up sharply by 29% so far in 2014.

Synergy Resources has a market cap of $931 million and an enterprise value of $918 million. This stock trades at a cheap valuation, with a trailing price-to-earnings of 52 and a forward price-to-earnings of 15. Its estimated growth rate for this year is 111.10%, and for next year it's pegged at 107.90%. This is barley a cash-rich company, since the total cash position on its balance sheet is $47.98 million and its total debt is $37 million.

A director just bought 20,000 shares, or about $241,000 worth of stock, at $12.05 per share.

From a technical perspective, SYRG is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently found some buying interest right around $11.75 to $11.60 a share. Shares of SYRG are now starting to bounce higher off those support levels and it's starting to trend back above its 50-day moving average. That move is quickly pushing shares of SYRG within range of triggering a major breakout trade.

If you're bullish on SYRG, then look for long-biased trades as long as this stock is trending above some near-term support levels at $11.60 to $11.50 and then once it breaks out above some near-term overhead resistance levels at $12.73 to its 52-week high at $14.11 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 845,800 shares. If that breakout gets underway soon, then SYRG will set up to enter new 52-week-high territory above $14.11 a share, which is bullish technical price action. Some possible upside targets off that move are $17 to $18 a share.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Hot Stocks to Trade (or Not)

>>5 Dividend Stocks Ready to Pay You More

>>Beat the S&P With 5 Stocks Everyone Else Hates

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.

Oculus Rift Meets Professor X at Comic-Con

This photo provided by Oculus Rift/Fox shows a scene from "X-Men: Days of Future Past" virtual reality experience. Comic-Con attendees will have an opportunity to enter the mind of Professor X. Fox has created an "X-Men" virtual reality experience especially for the pop-culture extravaganza, which kicks off Thursday in San Diego. (AP Photo/Oculus Rift/Fox)

SAN DIEGO (AP) -- Comic-Con attendees will have a once-in-a-lifetime chance to enter the mind of Professor X.

20th Century Fox has created an "X-Men"-themed virtual reality stunt especially for the pop-culture convention, which kicks off Thursday in San Diego. The interactive digital experience utilizes the Oculus Rift virtual reality headset, which is not yet available to consumers, to simulate the fictional Cerebro technology used to track down mutants by the character portrayed by Patrick Stewart and James McAvoy in the "X-Men" films.

The 360-degree, 90-second virtual adventure will take place on the Comic-Con show floor inside Fox's booth, where attendees will sit in a replica of Professor X's wheelchair and virtually hunt shape-shifting mutant Mystique in the San Diego Convention Center. Each experience will be recorded and made available for users to share on social media.

Fox is using the VR stunt to promote the Oct. 14 Blu-ray release of "X-Men: Days of Future Past." At its booth on the Comic-Con show floor, the studio will sell limited-edition copies of a Blu-ray box set that includes all the "X-Men" films.

It won't be the only use of an Oculus Rift headset at Comic-Con. Outside the convention center at an interactive zone at Petco Park, Fox is also employing the VR technology to transport users to the fictional town depicted in the TV series "Sleepy Hollow." The second season of the supernatural series is set to debut on the network this fall.

Fox's use of the technology at Comic-Con is the latest example of how Oculus is making in-roads with Hollywood. HBO similarly used the technology to promote "Game of Thrones" with a virtual rendition of the fantasy series' icy 700-foot-tall wall during a recent exhibition.

During a demonstration of the "X-Men" experience to The Associated Press ahead of its Comic-Con debut, the short interactive film narrated by a Patrick Stewart sound-a-like mimicked what it might look like to roll into the iconic domed Cerebro chamber depicted in the "X-Men" films and harness Professor X's telepathic powers to spot characters like Wolverine in a crowd.

Over the past three years, Oculus' immersive VR technology, which covers users' eyes and reacts to head movement, has received considerable attention from video game developers, but it hasn't been released yet for consumers. Facebook purchased the company behind the technology earlier this year for $2 billion.

Several networks, studios and publishers use Comic-Con to hype their upcoming entertainment releases with premieres, panels, autograph sessions, one-time-only stunts and interactive attractions in downtown San Diego. This year's promotional efforts include Ubisoft's "Assassin's Creed: Unity" obstacle course and Paramount and Pizza Hut's full-size replica of the Pizza Thrower vehicle -- complete with a working pizza-tossing cannon -- from "Teenage Mutant Ninja Turtles."

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Morgan Stanley Does the Expected

After surprisingly strong earnings from Goldman Sachs (GS), Citigroup (C) and JPMorgan Chase (JPM), it shouldn’t come as much of a surprise that Morgan Stanley (MS) beat earnings forecasts too.

Getty Images

The Wall Street Journal has the goods on Morgan Stanley’s earnings:

On a per-share basis, which reflects the payment of preferred dividends, Morgan Stanley’s profit was 94 cents, or 60 cents when stripping out accounting adjustments and adjusting for a tax benefit. Analysts polled by Thomson Reuters had expected adjusted earnings of 55 cents a share.

Revenue rose 1.1% to $8.61 billion. Revenue excluding accounting adjustments edged up 2.2% to $8.52 billion, coming in above analyst estimates for $8.19 billion.

Citigroup’s Keith Horowitz and Christopher Larmoyeux are anything but wowed by Morgan Stanley’s results:

Ex DVA, MS reported operating EPS of $0.91 vs our $0.54 estimate and consensus of $0.55. Relative to our estimate, the top-line came in 6c higher due to better than expected I-Banking. FICC trading was in-line while Equities were modestly higher. MS received a ~30c benefit from a lower tax rate which explained the majority of the 37c beat. GWM revenues were in-line as was the 21% PT margin. Overall comp ratios were also in-line with expectations.

With the majority of the revenue beat coming from a tax benefit and a beat in investment banking, which was largely expected given what competitors have reported, we expect only to see modest outperformance today.

Shares of Morgan Stanley have gained 1.3% to $32.91 at 9:56 a.m., while JPMorgan Chase has dropped 0.2% to $58.57, Goldman Sachs has advanced 0.2% to $170.77 and Citigroup is off 0.2% at $49.74.

Fossil Fuels Are Not the New Subrime, Just Ask Continental Resources

Thanks to a recent report, some are wondering if the fossil fuel industry is the new subrime bubble. There are oil and gas firms that have spent their cash poorly, but this does not mean that the entire industry is a basket case. Continental Resources (NYSE: CLR  ) is an example of an E&P that is making profitable investments while avoiding $100 million dry holes.

What does skyrocketing U.S. fixed investment in oil and gas really mean?
In the past decade investments in oil and gas have grown from less than 5% of private U.S. fixed investment to close to 20%, but don't get too scared. The collapse of the U.S. housing market pushed residential construction from 50% to below 30% of fixed private investment. The end result is that part of rising private U.S. fixed investment is energy simply due to the original subrime housing market. 

The other side of the equation is that the oil and gas industry is marked by large upfront capital expenditures followed by reduced maintenance capex. Billions are being spent to drill wells, upgrade pipeline networks, and reorganize refineries, but these investment levels will fall.

Do not compare aggregated numbers (apples) to dis-aggregated numbers (oranges)
Comparing challenged global oil production levels to rising U.S. fixed private investment in oil and gas is like comparing apples to oranges. U.S. fixed private investment in oil should be compared to U.S. oil production. 

US Crude Oil Production data by YCharts

The above chart shows how U.S. oil and gas investment has grown, and how oil production has grown as well. The growth in horizontal rigs has sent production upward and allowed for profitable investments in new fields.

Continental Resources is a prime example of successful upstream capex. The company is not some wildcatter haphazardly putting holes in the ground. Continental Resources has proven acreage in North Dakota and Oklahoma. From 2010 to 2013 its annual production grew from under 15 million barrel of oil equivalent (mmboe) to 35 mmboe.

Continental Resources trades at an enterprise value (EV) to proven reserves ratio close to its peers' respective ratios. It is not cheap, but at an EV/proven reserves of around $31.67 per boe it is not at a nosebleed valuation.

Continental Resources is not the only company cutting costs and growing production. In one year Chesapeake Energy (NYSE: CHK  ) cut its average Utica well cost from $7.7 million to $6.7 million, and it hopes to cut well costs even further in 2014. In 2013 it boasted a 20% rate of return on its operated Utica wells. While the oil industry as whole has issues, U.S. natural gas drillers were forced to rationalize their operations after the 2012 price crash. The end result is Chesapeake already faced bankruptcy once, and it has no desire to be stuck in a similar position.

There are big oil and gas problems, but they are not found in established U.S. shale plays
Small U.S. E&Ps are developing proven acreage in an established market, but not all companies are as lucky. Royal Dutch Shell (NYSE: RDS-A  ) spent $5 billion on Arctic drilling in the past seven years with little to show for it.

Additionally Shell's upstream segment faces big challenges. Its Rotterdam and Singapore refineries have very low margins. Neither facility has access to cheap landlocked U.S. crude. Thanks to generous refining capacity the Asian market is especially challenging.

Shell is working to improve its operations. It shut down its Arctic drilling program in 2013 and 2014, but a history of expensive failures is not reassuring. 

Not all big oil firms are in Shell's position. Instead of charting relativity new waters, Statoil (NYSE: STO  )  simply moves up the Norwegian Continental Shelf to develop its Arctic assets. One of its major strengths is that its majority shareholder is a national government that puts long-term interests in front of short term profiteering. Statoil also has acreage in some of the top U.S. shale plays. In Q1 2014 its equity production brought in 49.4 mboepd in the Bakken and 31 mboepd in the Eagle Ford. 

The oil and gas industry is not the next subrime
The oil and gas industry is not one homogeneous body. While Shell's Arctic drilling program has had many challenges, it is not representative of the entire industry. The smaller U.S. E&Ps Continental Resources and Chesapeake are not cheap, but they are developing fields at a profit. The bigger firm Statoil is slowly developing its northern assets in order to optimize capex.

Do you know this energy tax "loophole"?
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CBRL or BOBE – Which Home-Cooked Stock Is Better?

Popular Posts: Take Buffett’s Advice: 5 Vanguard Funds to BuyThe Best Ways to Buy the Alibaba IPOBest Vanguard Funds to Buy for Target Date 2035 Retirement Recent Posts: CBRL or BOBE – Which Home-Cooked Stock Is Better? Revisiting the Global Sports Stocks Portfolio Best Vanguard Funds to Buy for Target Date 2035 Retirement View All Posts CBRL or BOBE – Which Home-Cooked Stock Is Better?

A little over a year ago, I suggested that Cracker Barrel (CBRL) was a better buy than Bob Evans Farms (BOBE) because it was the stronger of the two restaurant chains.

With Bob Evans reporting fiscal fourth-quarter earnings Tuesday, it’s time to take another look.

Since my call, CBRL and BOBE have seriously underperformed the S&P 500, and they’ve both failed to keep pace with their restaurant peers. To make matters worse, both continue to face serious criticism from institutional investors, which keeps them from focusing on their businesses.

Putting aside all of the acrimony surrounding both of these stocks, it's important for investors to focus on the facts. The numbers don't lie.

A year from my buy recommendation, I'll address both companies' strengths and weaknesses. By the end you'll know whether CBRL or BOBE is the better buy — and why.

CBRL Strengths

Cracker Barrel’s Q3 2014 comparable restaurant sales decreased 0.6%, but it still delivered the company’s 10th consecutive quarter of outperforming its casual dining peers. According to the Knapp-Track Casual Dining Index, CBRL has beaten its peers by an average of 320 basis points per quarter since Q2 2012.

Investors surely have noticed this steady performance. Since CEO Sandra Cochran initiated six strategic priorities on Sept. 13, 2011, CBRL has gained 153% compared to 115% for the S&P 600 restaurant index and 68% for the S&P 500.

One of the ways Cracker Barrel intends to grow its business is by introducing market-level pricing across its 627-store chain. Company research suggests that CBRL guests don't have a problem with tiered pricing. As a result, the company expects to increase prices 2% to 3% annually over the next three years.

Price increases in combination with a total dedication to controlling costs can keep the earnings tap growing despite obvious economic headwinds affecting store traffic.

Speaking of costs, the company's introduced a new store prototype that saves $50,000 per location on the upfront investment and another $200,000 in annual operating costs once open. In addition, it looks to generate $50 million in annual operating cost savings from the existing 627 stores over the next three years. As a result of finding these efficiencies, the average new unit is generating $5.1 million in revenue, 6% more than it targeted as part of this initiative.

Take care of the pennies, and the pounds will take care of themselves.

CBRL Weaknesses

Cracker Barrel expects to grow its top line by approximately 4% annually over the next three years based on relatively flat same-store sales traffic and the price increases mentioned earlier. That's tough sledding, especially if guests don't take kindly to those price increases and the average guest check goes down rather than up.

It's a stretch given its core customers are travelers more willing to spend while on the road, but it’s a consideration.

Argus Research recently lowered its rating on CBRL from "buy" to "hold" based on slow growth for family/casual dining stocks, increased competition and rising commodity costs. In terms of commodity costs, CBRL expects about 2% to 3% inflation over the next three years, which will hinder its ability to grow margins. Cracker Barrel’s Q3 2014 adjusted operating margin (excludes special shareholder meeting costs) was 7.2%, and it expects to hit 8% by the end of 2017. If commodity inflation rears its ugly head at the same time some of its guests reject higher pricing, it's possible that operating margins will decline.

Again, it's not a sure thing. but it could happen.

BOBE Strengths

As I stated in my article from last year, I like BOBEs vertical integration. The restaurants drive customers to its BEF Foods foodservice division and vice versa. CEO Steve Davis said this about its two operating units in its Q4 earnings release: "Fiscal 2015 is the year we expect to begin reaping the rewards of the recent capital investments we made in Bob Evans Restaurants and BEF Foods."

Next Page

If BEF Foods hadn't had supplier issues in fiscal 2014, it would have grown revenue by 10% to $383 million. In 2015, BEF expects revenues to grow by at least 16% year-over-year. In terms of operating profits, it expects to generate margins upward of 10% by the end of fiscal 2016.

BEF might only currently generate 26% of overall revenue, but it's growing and should become a more important piece of the Bob Evans puzzle.

On the restaurant front, Bob Evans completely finished its Farm Fresh Refresh Program in April at all 230 locations. That's going to be a huge boost to its cash flow generation given each store's remodel cost approximately $225,000. All the major restaurant chains are upping their presentation, and BOBE is no different. With a new bakery and takeout counter in every location, the revenue from each store is sure to grow.

BOBE's goal is to generate 25% of its restaurant sales from the bakery and takeout — in 2013, it did about 11.5% of overall revenue. When it started the remodel program in 2011, off-premise sales accounted for less than 8.5% of its overall business.

With 61% of restaurant meals off-premise rather than dine-in, the remodel presents a huge opportunity.

BOBE Weaknesses

Sow costs have increased by 70% over the past four years, impacting BOBE to the tune of $64 million. With sausages accounting for 30% of its overall sales mix (down from 43% in 2009,  this remains an ongoing concern, although hog prices are expected to moderate by the end of 2014.

Sandell Asset Management has been in a proxy battle with BOBE for more than a year. Last September, it sent a letter to the board of directors outlining its opinions regarding BOBE management and its stock. Sandell proposed that BOBE sell or spinoff BEF Foods along with the real estate it owned (sale-leaseback) using the funds from those two transactions to repurchase its shares.

That never went anywhere.

At the time of the letter, Sandell estimated the three moves could justify a stock price between $73 and $84 per share. Today it sits below $50. Sandell wants four board seats (BOBE offering two) and all three changes implemented. Steve Davis and the board want nothing to do with Sandell.

The proxy battle is going to get nasty, and I should think so after Bob Evans blamed a good deal of its 4.1% decline in Q4 2014 same-store sales on the weather.

It's a terrible excuse that no retail executive should ever use.

Bottom Line

At the end of the day, I don't think much has changed at the two companies over the past year except that the competition has heated up and restaurant-goers have become far pickier about where they choose to eat given the promotional environment we currently find ourselves.

If I could only pick one stock, I’d go with CBRL. That said, Tom Sandell makes a very compelling argument why BOBE is in need of change.

If you've got a speculative streak in you, I'd also place a few bucks on BOBE.

Change is just around the corner.

As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.

China targets Apple for location-tracking apps

A CCTV report said that iPhone features can potentially put China's state secrets at risk. NEW YORK (CNNMoney) China's state-run media is slamming Apple for the iPhone's ability to track users' locations.

The government-controlled CCTV network reported Friday that Apple (AAPL, Tech30) devices record users' every move and message.

"We simply don't know what their motive is in collecting this information," the anchor said.

The CCTV report goes on to mention that those iPhone features can potentially put China's state secrets at risk.

The report doesn't mention that all smartphones have apps that can track users, including those made by Chinese manufacturers Huawei, Xiaomi and ZTE.

Related story: Chinese hackers broke into U.S. federal employee network

China's vast and growing technology industry is a source of great national pride.

From time to time, the country targets foreign companies such as Apple for various reasons:

China wants to back its own companies. The United States has its free market, but in China, the government owns or exerts control over key industries, including network operators and device makers. The government sometimes creates suspicion against non-Chinese products to boost domestic companies.

China wants to avert NSA spying. Apple has computer servers in the United States, which means the U.S. government can make secretive information demands on its data. Such information might indicate where hidden government facilities are located, according to Alex McGeorge, head of threat intelligence for cybersecurity firm Immunity.

China wants better access to spy on its own people. The country already practices mass snooping on its citizens to clamp down on free speech, political dissent and religion. Steering customers away from iPhones and toward Chinese smartphone companies gives the government more access.

"They want the data from the tracking," said Bryan Cunningham, a lawyer who advised the Clinton and Bush administrations on cybersecurity.

  Transformers is #1 film in China...ever

This latest attack! bodes poorly for the iPhone maker. China is home to the world's second biggest population at 1.3 billion people, and it's an important revenue stream for Apple.

The company did not respond to requests for comment.

Related story: China targets Nikon in annual expose

CCTV has previously accused Apple of poor customer service and warranty standards.

Many foreign firms have been hurt when Chinese state-controlled media go after them. It's led to a decline in sales or government investigations. In some cases, firms have even changed their policies after such attacks or issued recalls.

Volkswagen (VLKAF) recalled 384,141 vehicles in China after a 2013 consumer rights' broadcast. State media have also targeted Starbucks (SBUX), Japan's Nikon, British drug giant GlaxoSmithKline (GLAXF) and French dairy company Danone (DANOY) in recent years.

3 Big-Volume Stocks in Breakout Territory

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 Insiders Love Right Now

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

Unusual volume>>5 Stocks Hedge Funds Love This Summer

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

CME Group

CME Group (CME), through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. This stock closed up 0.7% to $71.58 in Wednesday's trading session.

Wednesday's Volume: 3.07 million

Three-Month Average Volume: 1.46 million

Volume % Change: 122%

From a technical perspective, CME bounced modestly higher here right off its 50-day moving average of $70.48 with above-average volume. This spike higher on Wednesday is starting to push shares of CME within range of triggering a major breakout trade. That trade will hit if CME manages to take out some key near-term overhead resistance levels at $72.49 to its 200-day moving average of $73 with high volume.

Traders should now look for long-biased trades in CME as long as it's trending above its 50-day moving average at $70.48 or above more support near $69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.46 million shares. If that breakout hits soon, then CME will set up to re-test or possibly take out its next major overhead resistance levels at $75 to $77.

Anacor Pharmaceuticals

Anacor Pharmaceuticals (ANAC), a biopharmaceutical company, focuses on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. This stock closed up 1.6% to $17.29 in Wednesday's trading session.

Wednesday's Volume: 1.37 million

Three-Month Average Volume: 433,181

Volume % Change: 195%

From a technical perspective, ANAC jumped higher here right off both its 50-day moving average at $15.97 and its 200-day moving average of $16.25 with strong upside volume flows. This move higher on Wednesday is starting to push shares of ANAC within range of triggering a big breakout trade. That trade will hit if ANAC manages to take out Wednesday's intraday high of $17.35 and then once it clears more key near-term overhead resistance at $18.73 with high volume.

Traders should now look for long-biased trades in ANAC as long as it's trending above its 50-day at $15.97 and then once it sustains a move or close above those breakout levels with volume that hits near or above 433,181 shares. If that breakout triggers soon, then ANAC will set up to re-test or possibly take out its next major overhead resistance levels at $21.27 to its 52-week high at $23.07.

CBS Outdoor Americas

CBS Outdoor Americas (CBSO) leases advertising space on out-of-home advertising structures and sites in the U.S., Canada and Latin America. This stock closed up 4% at $32.66 in Wednesday's trading session.

Wednesday's Volume: 34.44 million

Three-Month Average Volume: 1.95 million

Volume % Change: 1989%

From a technical perspective, CBSO spiked sharply higher here back above its 50-day moving average of $31.96 and into breakout territory above some near-term overhead resistance at $32.50 with monster upside volume flows. Market players should now look for a continuation move to the upside in the short-term if CBSO manages to take out Wednesday's intraday high of $33.05 with high volume.

Traders should now look for long-biased trades in CBSO as long as it's trending above its 50-day at $31.96 or above more support near $31.50 and then once it sustains a move or close above $33.05 with volume that hits near or above 1.95 million shares. If that breakout gets underway soon, then CBSO will set up to re-test or possibly take out its next major overhead resistance level at its all-time high of $35.69.

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:

>>3 Big Stocks on Traders' Radars

>>3 Stocks Under $10 Moving Higher

>>5 Tech Stocks to Trade or Gains This Week

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.

The BioScience Profit Outlook for the Rest of 2014

With just six months left on my 2014 bioscience "profit calendar," things are really starting to look promising for the second half of 2014. There are huge opportunities in several subsectors of the bioscience market in particular.

That said, some bioscience analysts are saying there's a bubble. And it's scaring a lot of bioscience investors out of great positions in the market.

That's why last week I shared my complete bioscience market outlook for the rest of 2014 with my paid members - to help them see the real market story.

Today I want to share with you some of my thinking, expectations, and predictions, as well as my strategy to get us tapped into a segment of the bioscience market we haven't even touched yet.

This segment has been tremendously profitable for some of the world's biggest drug companies, and I think there are going to be some killer profits for us there, too...

Outlook for Q3/Q4 2014

For the rest of this year, we have a number of great opportunities coming our way, but of course, a lot will depend on the overall health of the biosciences industry during that time. Over the past few months, some analysts have been rubbing their worry beads over the pullback in FDA approvals for 2013, the possibility that we might be experiencing a bioscience sector "bubble," and the market correction that took place a few months back.

My take? There's nothing but great sailing ahead. Here's why.

What We Mean When We Say "Bioscience Sector"

The "bioscience sector" is actually a group of subsectors that includes pharmaceuticals, biologics and biosimilars, generics, and medical devices. In brief:

Pharmaceuticals are bioactive "small molecule" drugs, designed and synthesized in laboratories. Often, they're based on brand new molecules engineered by researchers, although sometimes they're known substances combined in novel ways. The FDA requires that new pharmaceuticals undergo a rigorous series of preclinical (animal) and clinical (human) studies for safety and effectiveness, as well as ongoing and final assessments by the agency.

Much of our investment strategy in BioScience Millionaire is based around events in this "regulatory gauntlet," such as data releases and FDA reviews, which can cause dramatic changes in stock price.

Despite dire predictions from some analysts, R&D in new pharmaceuticals is robust. This type of drug currently represents about 80% of all medications, with biologics representing the other portion. Today, there are roughly thousands of new drugs under study in the U.S. alone.

Biologics are "large molecule" compounds created naturally by living organisms and are used in the same way as pharmaceuticals. Biosimilars are more or less the generic versions of biologics. Because biologics tend to be very complex, a biosimilar may not be an exact molecular copy of an originator drug, but it treats the same condition in a similar way. Also, biosimilars are not always the natural product of a living organism, but rather the result of recombinant DNA technology. These drugs undergo the same regulatory development process as pharmaceuticals.

The market for biologics is expanding vigorously. By 2016, they are predicted to account for 24% of sales in the world market, double that of 2004. These drugs are innovative medicine and are sign of great health in the industry.

Generics are knockoffs of brand-name drugs. According to the FDA, they must be "...the same as brand-name drugs in dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use." Before a generics manufacturer can produce a copycat, all patent and other exclusivity protections for the original drug must expire. Generics do not have to undergo safety and effectiveness trials, and so are much, much cheaper to produce. The timing of their regulatory gauntlet is much less disciplined than that of pharmaceuticals and biologics, so it's impractical to base an investment strategy around catalysts in this subsector.

Over the past two years, many brand-name drugs have fallen off the so-called "patent cliff," making them available to generics manufacturers. This year, 2014, a number will lose protection. In 2015, however, that number will drop sharply, curbing the addition of new generics on the market.

Still, they represent an ever-growing portion of the market. Generics account for about 80% of all prescriptions written in the U.S., and they're extremely important in keeping medical costs under control.

They can also make a significant contribution to a bioscience portfolio, and we'll be taking a closer look at them in the second half of this year.

Medical devices, like everything else used to treat human illness, need to undergo a regulatory approval process before being allowed on the market in the U.S. and in most other parts of the world. The FDA approved just over 30 new devices in 2013, which included everything from surgical sealants to ceramic hips.

Thus far, in 2014, the agency is approving devices at approximately the same pace as 2013.

Medical devices represent a significant, if somewhat smaller part of the larger bioscience sector, and continue to attract the interest of both business and investors.

An Evolving Sector

So the industry is thriving. But it's also changing.

Where once, big multi-billion dollar pharmaceutical companies did the lion's share of the R&D, that job now falls more and more often to small cap, biotech R&D companies, while the big guys wait in the wings to do licensing deals or outright mergers/acquisitions as drugs reach the later stages of development.

And that makes sense. Many of the big pharma firms have lost product to the patent cliff, and the cost of maintaining a big developmental pipeline is astronomical-from $4 to $11 billion to get a single drug to market. So they're turning to the little guys for new innovations.

Reign of the Orphans

Target markets are also undergoing transformation. Many drugs currently under study treat rare, so-called orphan diseases. In the U.S., that means illnesses that affect fewer than 200,000 people. Drugs to treat these diseases receive special treatment from regulators, including tax breaks and an extended period of market exclusivity. And because orphan diseases are often chronic, life-threatening, and affect few people, drug companies can - and really must - ask a very high price for them.

That's a very different model from drugs like Lipitor, which brought in more than $17 billion in total by selling large numbers of moderately priced pills to large numbers of people. But those big blockbusters are going the way of the patent cliff now, and orphan drugs are proving a very profitable substitute. By 2018, they're expected to account for well over $100 billion in sales - a whopping 16% of the total brand-name drug market.

The orphan model offers other advantages well:

When a disease is rare, you don't need to test as many patients in clinical trials, which saves money. These diseases tend to respond better to experimental medications, so there's a higher chance of finding the pot of gold at the end of the rainbow: FDA approval. Better clinical outcomes make new drugs more valuable - a critical factor for insurance companies to consider when deciding on reimbursement. FDA Approvals Are Back on Track

For drug approvals in the United States, 2012 was the best year since 1997, with 39 drugs passing FDA muster, five of which are forecast to become blockbusters by 2017. In 2013, however, that number plunged to 27 approvals, which caused some industry mandarins, such as Fierce Biotech's editor John Carroll, to start wringing their hands and predicting the end of the world for the sector.

So far in 2014, however, the agency has approved two dozen new drugs and devices, with 31 PDUFAs currently remaining on the schedule between now and the end of the year. To paraphrase Mark Twain, the news of bioscience's death has been greatly exaggerated.

What Bubble?

So now, what about the biotech bubble some analysts believe they have identified?

Those analysts are seeing monsters under the bed. And as we adults all know, there are no monsters under the bed.

The Nasdaq Biotechnology Index (NBI) gained 20% in January/February 2014, then plunged 24% over the next six weeks, only to regain 16% by early this month.

So what's going on? The market breathes in, and the market breathes out. After an overall gain of 130% over the past three years, an adjustment should come as no surprise to anyone. But that's all it is. There's no bursting bubble.

If there were, price per share (PPS) would now be too high, especially among large-cap pharmaceuticals - the stocks that lead the industry. But that's not what the numbers say. For those of you unfamiliar with technical indicators, a number called a price to earnings ratio (P/E) is often used to valuate PPS. But a more accurate indicator is a price-earnings-growth ratio (PEG), which also takes into account the expected future growth rate of a company or industry.

Currently, the PEG for the bioscience sector is around 1.0, where it's been since the market crash in 2008. If there were a bubble, by this time, that number would have reached 2.0 or higher.

The fact is, investors are not buying smoke and mirrors as they were during the dot-com bubble of 2001 and the housing bubble of 2001-2005. They're not driving up prices through speculation and purchasing Internet companies that are nothing more than a mailbox number or mortgages that aren't worth the paper they're written on.

Bioscience investors are putting their money into companies making good drugs with solid data that meet critical needs in the real world. They're helping fuel R&D into terrible and terrifying diseases, and they're funding the distribution of those products into a waiting market.

There is no bubble here. There is real value. And that value continues to increase.

Full Speed Ahead

According to the Evaluate Pharma annual report, brand-name prescription drug sales will grow globally at a rate of nearly 4% per year between now and 2018.

So the bioscience sector is healthy and full of potential for investors.

As I mentioned above, there has been a recent strong upward trend in the number of orphan drug approvals, and I expect that trend to continue. According to the FDA Office of Orphan Products Development (OOPD), 400 of these drugs have been approved since 1983 (by contrast, only 10 such drugs had been approved in the period 1973-1983).

We'll also look for opportunities in ophthalmology, pain management, neurological/psychiatric drugs, cancer (especially liquid tumors, breast cancer, and melanoma), and perhaps most of all, in diseases of old age, such as chronic kidney disease, osteoporosis, hypertension, cardiovascular disease, and type-2 diabetes.

Why diseases of aging? As the Baby Boom generation crosses retirement age, our older adult population is becoming the most rapidly expanding demographic in our society. According to the U.S. Administration on Aging, by 2030, the elderly population in this country will have doubled its size from the year 2000. And those people will be living longer, as average life expectancy continues to increase.

It's a simple equation: more elderly people living longer = vastly expanded medical needs. They will need more care, but also better medications to treat chronic and intractable conditions in order to give them more active years and greater enjoyment of life.

So all in all, it's a great time to invest in bioscience, and I anticipate we're going to find some great investment treasures going forward.

PK Grills: Reigniting America's Passion for Simple Barbecue

#fivemin-widget-blogsmith-image-430233{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-430233,#postcontentcontainer #fivemin-widget-blogsmith-image-430233{width:570px;height:411px;display:block} For Paul James, grilling has always been about more than making a meal. It's about family. The Little Rock, Arkansas, lawyer remembers dozens of relatives gathering in his Uncle Tag's backyard in Memphis, Tennessee, where the sweet smell of barbecue often filled the smoky air. The families were large -- James is the second oldest of 11 children -- so dinners that started indoors often spilled over into the yard as the grilling got going. Every family member had a twist on barbecue, but Uncle Tag's technique was legendary. It started with a special aluminum charcoal grill he used to prepare his signature fall-off-the-bone pork shoulder and melt-in-your-mouth hamburgers. Sleek and silver, the simple design of Tag's trusty PK Grill -- the PK stands for Portable Kitchen -- didn't have the bells and whistles of today's modern versions. It had just four vents -- two on top and two on the bottom -- to create an outdoor convection oven. This allowed backyard chefs to grill meats quickly at high heats or smoke them slowly all day. All it took for Uncle Tag to cook a perfect meal was simply adjusting the interior airflow. James remembered his uncle's grill so fondly that when he saw one at a Little Rock garage sale almost 30 years later in the mid-1990s, he bought it on the spot. He paid just $25, and soon friends and family would reminisce at every cookout about the grills being handed down from one generation to the next. They'd even tell tales of them being the subject of divorce and estate disputes. But they also wondered why it was impossible to buy a new PK Grill, as it seemed they'd slipped out of production some time in the 1970s. James never could come up with a good answer to that question. So he decided to reignite PK Grills himself. Chapter 1: Back to Life James, now 58, is a lawyer by training and trade, so when he decided to research PK Grills' rise and fall, he focused on it like an attorney putting a case together for trial. He discovered that PK Grills had passed through a number of hands, including cookware manufacturers Regal Ware and then Sunbeam. Both big companies had made PK Grills in Little Rock until it no longer fit their business models. In the 1970s production stopped, and none of the original molds survived. But James did discover that Char-Broil, based in Columbus, Georgia, had bought the business' intellectual property as well as the Portable Kitchen name. James put his legal skills to use, negotiating with Char-Broil to buy the PK name. Then he crafted an agreement with Regal Ware to create new molds, working with one of its employees who remembered making the original grills. Together, they reverse engineered the design and created a new production process. Next James had to find suppliers for the other parts of the grill -- grates, handles, stands, vent controls, etc., Determined to make everything for the new PK Grill company with materials crafted in America, he looked for manufacturers close to Little Rock.

This country can't lose its ability to make and produce products. There are other people employed because of what we do.

"This country can't lose its ability to make and produce products," he says of his dedication to making things in America. "There are other people employed because of what we do." Despite James passion for PK, he was still paying the bills by running his law office. To keep his two work lives separate, James rented a small office space from a friend, got a new phone number, and plugged the phone in at what he jokingly called PK World Headquarters. Within a half hour, the phone rang. "Oh, I'm so glad to find you," James remembers the relieved voice on the other end of the line saying. Startled, James figured someone had the wrong number. "Who are you looking for?" he asked. But the customer was, in fact, looking for James. He'd found the brand-new PK Grill phone number through a directory assistance call. The resurrected company's first customer was calling from Beaumont, Texas, and he needed replacement parts for an aging, but beloved, grill. Though James hadn't yet made a grill, much less located replacement parts, he took down the customers' information and gave him what was soon to be a standard response: "We're working on it." Chapter 2: No Two Grills the Same At that point, there was no "we" in PK Grills, and James needed help fast. So he called his sister, Martha James, 46, in Washington, D.C., where she had worked in political offices and marketing for years. He'd reached out before with ideas for other businesses and Martha had always declined. Either the business, or the timing, didn't feel right. Credit: Elizabeth AllenThe PK Grill: a sleek and simple design. This time, she says, was different. Like her brother, Martha remembered the backyard parties and distinctive-looking grills. Plus, she was intrigued that the company was already fielding phone calls from potential customers. And honestly, she was ready for a shift closer to home and further from politics. "Grills don't talk," she jokes. "And nobody loves their politicians like they love their grills." She moved to Little Rock in 1998 and got plenty of practice repeating the "we're working on it" mantra as the business moved from that small office with a phone and an answering machine to a space where the different pieces of the grill could all be combined, packaged and shipped: an 8,000-square foot warehouse not far from the William J. Clinton Library in Little Rock. At first the company sold grills and replacement parts through a handful of small retailers around the country and via the Internet. Its first big break occurred when L.L. Bean featured the iconic PK Grill in its catalog. As PK's only full-time employee, Martha has built every aspect of the business. She manages inventory, coordinates production and takes orders. She also listens to hours of stories about PK Grills. She sorts through unprompted pictures and letters grill owners send to the company Some are in search of a grate or a handle. All of them love their grills. "We try to help everyone keep them going," she says. "We know how good they are." That's because right behind her office, the grills take shape in the warehouse where Avery Allen puts the parts together. Allen pulls in pallets of shrink-wrapped and shiny grill shells shipped from a foundry just a few hours' drive from Little Rock. He carefully checks each one, and If it doesn't meet his standards, he sends it back. Every shell starts as molten aluminum, which is poured by hand into a permanent mold, an exacting practice no longer common in the U.S. In fact, the first two foundries that supplied PK Grills with the shells have since gone out of business. Because of the production process, no two grills are the same. But they all have to seal perfectly. "I think that's the secret of our grill," Paul James says. It's also what makes grill production labor-intensive and expensive. Allen, 46, inspects and smooths every PK Grill, thousands of them now, in greater quantities every year, then screws in vent switches and sands off any remaining rough edges. He does all this after he puts in a full shift as a bus driver for nearby schools. Allen remembers one 24-hour period when he returned to the warehouse after school to finish putting together 140 grills. PK Grills, which retail for $299.99, now sell online and in 59 retailers in 23 states from New Jersey to Washington. By 2013, as orders kept increasing and the parts supply chain got more complicated, the James siblings realized that they needed help to turn what started as a hobby for Paul into something bigger, something sustainable. "I wanted partners," he says. Chapter 3: The 62-Year-Old Startup To keep PK growing, Paul and Martha James turned to family again for help -- and it happened after a barbecue. Brian Taylor got his first exposure to a PK Grill when he was dating the James' sister, Shannon. He not only fell in love with the grill, he fell in love with the girl. For a long time, he was simply a trusted adviser as the brother and sister vetted potential partners. At the time, Taylor, 38, was considering what to do next after working at Alltel, a cellphone company that was once a primary employer in Little Rock. The company had changed hands and shifted focus. So Taylor and two colleagues, Jeff Humiston, a lawyer, and Scott Moody, a marketing pro, decided they wanted to join forces and stay in the town where they were raising their families. They faced a choice: continue to work in the corporate world, managing hundreds of employees and millions of dollars, or take a more entrepreneurial path. "I've always spent a lot of time fantasizing about what it would be like to start something small from scratch," Taylor says. PK Grills offered the three men a different kind of opportunity -- one that none of them expected, but all of them embraced. Credit: Elizabeth ReevesEmployee Avery Allen fashions a grill at PK Grills' plant in Little Rock, Ark. So in the spring of 2014, Taylor, Humiston and Moody officially became partners in PK Grills. Instead of suits and ties, they come to work in T-shirts and flip-flops and set up their laptops at one plain, long table in the front room of the cavernous warehouse. "In a lot of ways, this is being executed like a startup," says Moody, 43 -- but it's a start-up that has 62 years of heritage. That thought inspired Moody as he redesigned the PK Grill website. Prominently displayed on the site are stories and photos submitted by grill owners because, after all, the stories of these grills are best told by the people who own them. One big problem the "startup" is currently tackling centers around the grills' quality -- specifically that it's almost too good. PK Grills don't wear out -- it's a reason owners love them so much. So the three men are playing around with different types of paints, colors and even sizes of grills to attract new customers. And to expand PK Grill's offerings, they also launched a line of accessories, from grill sets and roasting racks to T-shirts and ball caps,. The plan is to build an infrastructure that could handle exponential growth by the end of the year, which judging by this year's sales isn't unthinkable. Sales in May 2014 exceeded sales in May 2013 by 70 percent. Building that infrastructure in America won't necessarily be easy. The grills are expensive to produce and are particularly time-consuming to build. That makes production hard to scale. They could follow the advice they've often heard and "go to China." But none of the family nor the extended community that forms PK Grills -- from Allen who builds the grills to the former corporate executives who are wrestling with the future -- are willing to give up being able to stamp "Made in America" on the box. "In a lot of ways, we are putting a stake in the ground, saying this is built in America," Moody says. "Right now, it's a little trendy. Five to 10 years from now, I hope people still see the value. That's been the legacy of the grill from the beginning."

New GM Recall Raises Questions About Auto-Parts Safety

Carlos Osorio/APGM's latest recall includes some newer models, including the 2013-14 Cadillac CTS. DETROIT -- The ignition switch recalls now engulfing General Motors (GM) and Chrysler are raising new questions about the safety of the parts across the American auto industry. GM's safety crisis deepened dramatically Monday when the automaker added 8.2 million vehicles in North America to its ballooning list of cars recalled over faulty ignition switches. GM has now issued five recalls for 17.1 million cars with defective switches, spanning every model year since 1997. On the same day, Chrysler recalled almost 700,000 vehicles in North America because its ignition switches -- like GM's -- can slip from the "run" to the "accessory" position while driving. The Chrysler action expands an earlier recall of 2010 Chrysler Town and Country and Dodge Grand Caravan minivans and Dodge Journey crossovers. Models from 2007 to 2009 are now included. GM's debacle caused other manufacturers to investigate their own switches and other potential defects. A recent spate of air bag recalls is probably tied to those internal investigations, said Karl Brauer, a senior industry analyst with Kelley Blue Book. The government is also reviewing the switches. Brauer said he doesn't think the ignition switch recalls will expand across the industry. Manufacturers all have their own switch designs and use different suppliers. But the possibility is there, and buyers should be aware of the potential for cars to slip into the wrong mode. If a car comes out of the "run" position, the power steering and brakes can stop working, which can cause drivers to lose control. The air bags also won't function. GM has urged drivers to remove excess items from their key chains that could weigh down the keys. "I think the ignition switch thing is fairly specific to GM, but it will be interesting to see. Were other companies letting their standards fall?" Brauer said. GM's latest recalls involve mainly older midsize cars and bring its total recalls in North America to 29 million this year, surpassing the 22 million recalled by all automakers last year. The new GM recalls cover seven vehicles, including the Chevrolet Malibu from 1997 to 2005, the Pontiac Grand Prix from 2004 to 2008, and the 2003-2014 Cadillac CTS. The company is aware of three deaths, eight injuries and seven crashes involving the vehicles, although it says there's no clear evidence that faulty switches caused the accidents. Air bags didn't deploy in the three fatal accidents, which is a sign that the ignition was out of position. But air bags may not deploy for other reasons as well. A GM spokesman couldn't say Monday if more recalls are imminent. But this may be the end of the recalls associated with a 60-day review of all of the company's ignition switches. At the company's annual meeting earlier in June, CEO Mary Barra said she hoped most recalls related to that review would be completed by the end of the month. Huge Number of Recalls Brauer said the number of recalls -- while huge -- may be a good thing for the company in the long run. "I think there's a new standard for what GM considers a potential safety defect, and Mary Barra has no tolerance or patience for potential safety defects that are unresolved," he said. In a statement Monday, Barra said the company "will act appropriately and without hesitation" if any new issues come to light. Lance Cooper, a Marietta, Georgia, attorney who is suing GM, said he expects even more recalls. A company funded investigation of the ignition switch problems by former U.S. Attorney Anton Valukas found that GM had a dysfunctional corporate culture in which people failed to take responsibility to fix the problems, Cooper said. "Cars got made that were defective. The buck kept getting passed, and this is what happened as a result," Cooper said. The announcement of more recalls extends a crisis for GM that began in February with small-car ignition switch problems. GM recalled 2.6 million older small cars worldwide because of the switches. Drawing Government Scrutiny The problem has drawn the attention of the National Highway Traffic Safety Administration, the government's road safety agency. On June 18, the agency opened two investigations into ignition switches in Chrysler minivans and SUVs, and acknowledged that it's looking at the whole industry. The agency is looking into how long air bags remain active after the switches are moved out of the run position. In many cases, the answer is less than a second. GM's recalls on Monday bring this year's total so far to more than 40 million for the U.S. industry, far surpassing the old full-year record of 30.8 million from 2004. The latest recalls came the same day the company's compensation consultant, Kenneth Feinberg, announced plans to pay victims of crashes caused by the defective small-car switches. Attorneys and lawmakers say about 100 people have died and hundreds were injured in crashes, although Feinberg said he didn't have a total. Feinberg said the company has placed no limit on how much he can spend in total to compensate victims. But victims of the new set of recalls announced Monday can't file claims to the fund, which deals only with the small cars. In the original recall, the ignition switches didn't meet GM's specifications but were used anyway, and they slipped too easily out of the "run" position. The vehicles recalled Monday have switches that do conform to GM's specifications. In these cases, the keys can move the ignition out of position because of jarring, bumps from the driver's knee or the weight of a heavy key chain, GM says. The cars recalled Monday will get replacement keys. The small cars recalled in February are getting new ignitions. The Detroit company said it plans to take a $1.2 billion charge in the second quarter for recall-related expenses. Added to a $1.3 billion charge in the first quarter, that brings total recall expenses for the year to $2.5 billion. GM also announced four other recalls Monday covering more than 200,000 additional vehicles. Most are to fix an electrical short in the driver's door that could disable the power locks and windows and even cause overheating.