QUALCOMM, Inc. (QCOM): Continues To Press Ahead In LTE Race

Qualcomm, Inc. (NASDAQ: QCOM) continues to press ahead in the LTE race as it is seeing excellent results from its 20 nanometer chip tape-outs. Moreover, the company is planning multiple tape-outs of 16 nanometer parts at its primary foundry.

In the $5 billion LTE baseband market, competitors lag behind the company, which makes CDMA chips that power the leading smartphones and tablets. Qualcomm had 97 percent share of the LTE baseband market in the first quarter and a 59 percent share of the baseband market overall, according to Strategy Analytics. The other players in the market include Intel (12 percent) and MediaTek (10 percent).

"While we understand some of Qualcomm's largest competitors are moving down nodes as well, we believe that Qualcomm's positive early results from both 20 and 16 nanometer node developments are constructive and combined with their extended lead in LTE, bode well for their longer term outlook," Deutsche Bank analyst Brian Modoff wrote in a client note.

As of now LTE competition is likely delayed until 2015. In other words, competitors could continue to lag with LTE, with volumes not likely until 2015. Mediatek suggests it will have an LTE baseband by the first quarter of 2014, but this will only be a discrete, single mode LTE chipset. A true multimode chipset will likely not be ready until the latter part of 2014, and a lot of work remains between now and this target.

With regard to Broadcom Corporation (NASDAQ:BRCM), the company is struggling with its LTE multi-mode effort, and the shipments are not expected until the back half of next year at the earliest, as well.

"With Broadcom, our checks suggest that they could attempt to introduce a working product at CES, at the beginning of 2014, but this will be the same modem that Renasas tried to market unsuccessfully at Mobile World Congress earlier this year," Modoff wrote.

Intel Corporation (NASDAQ:INTC) is considered Qualcomm's other formidable competitor. Intel is now shipping an LTE-enable! d chipset into the Samsung's Galaxy Tab 3.

Though this is a step in the right direction, it is still a data-only modem and the whole solution is put into a battery-rich tablet. In terms of actual design wins with LTE-enabled phones, there appears to be little traction so far as Intel continues to struggle with each the Atom processor, the multi-mode modem and the transceiver.

Although Intel has recently bolstered its capabilities with two separate purchases of older Motorola assets, there is still work to be done with both of these. The company released a stand-alone LTE chipset earlier in the year that was not well-received by handset OEMs.

While the Infineon 2G/3G/HSPA modem is operational and has been for some time, the ongoing issue seems to be the integration of this with the single-mode based LTE modem.

"As for Intel, there are still questions as the company is attempting to pull together multiple assets from various acquisitions," Modoff noted.

Meanwhile, Qualcomm is making progress on its RF 360 franchise. Qualcomm RF360 front end integrates every RF component - universal power amplifier, antenna switch, envelope power tracker, dynamic antenna tuner and the industry's first 3D-RF packaging - into a single RF Front End that's engineered to support multiple 3G/4G LTE standards. It enables OEMs to design thinner, battery friendly devices that deliver higher performance using less power.

Management has suggested that their front-end chipset will ship in a top-tier handset by the end of this year. Setting semantics aside, this first generation will not be meaningful to revenues, but the next iterations would boost revenues.

"As Qualcomm releases its second and third generation, we believe it will be incremental to the top-line and evidence of their ability to continue to increase their share of handset content," Modoff added.

Further, the company continues to make good progress on its efforts to develop 28 nanometer RF front ends, with first products samples targeted for the end of next year.

Top 10 Stocks To Watch For 2014

Express Scripts Holding (Nasdaq: ESRX  ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Express Scripts Holding's revenues will wither -7.9% and EPS will grow 25.0%.

The average estimate for revenue is $25.50 billion. On the bottom line, the average EPS estimate is $1.10.

Revenue details
Last quarter, Express Scripts Holding reported revenue of $26.06 billion. GAAP reported sales were much higher than the prior-year quarter's $12.13 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

Top 10 Stocks To Watch For 2014: Vantex Resources Ltd (VAX.V)

Vantex Resources Ltd, a junior mining exploration company, engages in the acquisition, exploration, production, and development of gold properties in Canada. It principal project include the Galloway gold project that comprises approximately 2488 hectares, 63 claims, and 3 mining concessions located in the Dasserat Township, Abitibi district of Quebec. The company was formerly known as Vantex Oil, Gas and Minerals Ltd and changed its name to Vantex Resources Ltd in February 2004. Vantex Resources Ltd was founded in 1987 and is based in La Prairie, Canada.

Top 10 Stocks To Watch For 2014: Research in Motion Ltd (BBRY)

Research In Motion Limited, incorporated on March 7, 1984, is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services, it provides platforms and solutions for seamless access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. The Company's technology also enables an array of third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data and third-party support programs.Its portfolio of products, services and embedded technologies are used by thousands of organizations and millions of consumers around the world and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools and other software and hardware.

On March 25, 2011, the Company purchased 100% of the shares of a company whose technology is being incorporated into the Company�� developer tools. On April 26, 2011, the Company purchased certain assets of a company whose acquired technologies will be incorporated into the Company�� products. In June 2011, the Company acquired Scoreloop. On March 8, 2012, the Company acquired Paratek Microwave Inc. During the fiscal year ended March 3, 2012 (fiscal 2012), the Company purchased 100% interests of a company, whose technology will be incorporated into its technology; whose technology offers cloud-based services for storing, sharing, accessing and organizing digital content on mobile devices; whose technology is being incorporated into an application on the BlackBerry PlayBook tablet; whose technology offers a customizable and cross-platform social mobile gaming developer tool kit, and whose technology will provide a multi-platform BlackBerry Enterprise Solution for managing and securing mobile devices for enterpris! es and government organizations.

On April 24, 2012, the Company launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in Indonesia. April 18, 2012, it launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in India. On April 17, 2012, it announced availability of the BlackBerry Bold 9790 smartphone in Spain. On April 3, 2012, it launched BlackBerry Mobile Fusion, and launched four BlackBerry smartphones powered by the BlackBerry 7 operating system (OS) in Cambodia, which included BlackBerry Bold 9900, BlackBerry Bold 9790, BlackBerry Curve 9360 and BlackBerry Curve 9380. On April 2, 2012, it announced the availability of BlackBerry App World, the official application store for BlackBerry smartphones in Brunei, and it announced availability of the BlackBerry Bold 9790 and BlackBerry Curve 9380 smartphones for Cell C customers in South Africa. On March 27, 2012, it launched of the BlackBerry solution in Benin Republic. On March 15, 2012, it launched of BlackBerry services in China. On March 7, 2012, it launched the BlackBerry service in Angola.

The Company's primary revenue stream is generated by the BlackBerry wireless solution, consists of smartphones and tablets, service and software. BlackBerry service is provided through a combination of its global BlackBerry Infrastructure and the wireless networks of its carrier partners. On February 21, 2012, it released the BlackBerry PlayBook OS 2.0 software. It generates hardware revenues from sales, primarily to carriers and distributors. During fiscal 2012, the Company launched the wireless fidelity (WiFi)-enabled BlackBerry PlayBook tablet in 44 markets around the world. On July 21, 2011, the BlackBerry PlayBook tablet received Federal Information Processing Standard 140-2 certification.

BlackBerry Smartphones and Tablets

BlackBerry smartphones uses wireless, push-based technology that delivers data to mobile users��business and consumer applications. BlackBerry s! martphone! s integrate messaging including instant messaging, email and SMS; voice calling; Webkit browser; multimedia capabilities; calendar, and other applications. During fiscal 2012, it introduced 10 new smartphones and launched software updates to both its smartphone and tablet platforms. BlackBerry smartphones are available from hundreds of carriers and indirect channels, through a range of distribution partners, and are designed to operate on a variety of carrier networks, including HSPA/HSPA+/UMTS, GSM/GPRS/EDGE, CDMA/Ev-DO, and iDEN.

During fiscal 2012, its BlackBerry smartphone and tablet portfolio included BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series and The BlackBerry PlayBook tablet. Its BlackBerry Bold series includes BlackBerry Bold 9900 and 9930 and BlackBerry Bold 9790. The Company�� BlackBerry Torch series include BlackBerry Torch 9810 and All-Touch BlackBerry Torch 9850 and 9860. The Company's BlackBerry Curve series include BlackBerry Curve 9350/9360/9370 and All-Touch BlackBerry Curve 9380 Smartphone. The BlackBerry PlayBook tablet features the BlackBerry PlayBook OS 2.0. The BlackBerry PlayBook offers a seven-inch high definition display, a dual core one gigahertz processor, dual high definition cameras, multitasking and a Web browsing.

BlackBerry Enterprise Solution

BlackBerry Enterprise Server is software that acts as the centralized link between BlackBerry smartphones, enterprise systems, business applications and wireless networks. BlackBerry Enterprise Server integrates with enterprise messaging systems including Microsoft Exchange, IBM Lotus Domino and Novell GroupWise to synchronize with BlackBerry smartphones to provide mobile users with wireless access to e-mail, calendar, contacts, notes and tasks. It also provides access to business applications and enterprise systems. In addition, it provides security features and offers administrative tools. BlackBerry Enterprise Server is required for certain other enterprise ! solutions! , such as BlackBerry Mobile Voice System (for bringing desk phone functionality to BlackBerry smartphones); BlackBerry Clients for Microsoft Office Communications Server, IBM Lotus Sametime and Novell GroupWise Messenger (for enterprise instant messaging); IBM Lotus Connections (for enterprise social networking); IBM Lotus Quickr (for document sharing and collaboration); and Chalk Pushcast Software (for corporate podcasting).

The Company�� BlackBerry Mobile Fusion provides a Web-based interface that allows enterprises to provision, audit, and protect mobile devices including BlackBerry smartphones, BlackBerry PlayBook tablets, and devices that use iOS and Android. BlackBerry Balance helps enterprises support the Bring Your Own Device (BYOD) trend. BlackBerry Enterprise Server Express is free server software that synchronizes BlackBerry smartphones with Microsoft Exchange or Microsoft Windows Small Business Server. BlackBerry Enterprise Server Express works with Microsoft Exchange 2010, 2007 and 2003 and Microsoft Windows Small Business Server 2008 and 2003 to provide users with wireless access to e-mail, calendar, contacts, notes and tasks, as well as other business applications and enterprise systems behind the firewall.

BlackBerry Mobile Voice System (BlackBerry MVS) allows organizations to converge office desk phones and BlackBerry smartphones. BlackBerry MVS is consists of three components: BlackBerry MVS Client, BlackBerry MVS Services, and BlackBerry MVS Server. It unifies fixed and mobile voice communications. Hosted BlackBerry services bring the BlackBerry Enterprise Server features, functionality, and security capabilities in a package that is managed for end users. Hosted BlackBerry services are conveniently handled and supported by a BlackBerry certified partner from the BlackBerry Alliance Program, giving small and medium -sized enterprise (SME) enterprises the support and convenience they need.

Service

The Company generates service rev! enues fro! m billings to RIM's BlackBerry subscriber account base. It generates service revenues primarily from a monthly infrastructure access fee charged to a carrier or reseller, which the carrier or reseller in turn bills the BlackBerry subscriber.

BlackBerry Technical Support Services

BlackBerry Technical Support Services are a suite of annual technical support and software maintenance programs. The programs are designed to meet the customer�� BlackBerry support needs by offering a contact for BlackBerry wireless solution technical support directly from the Company.

Non-Warranty Repairs

The Company generates revenue from its repair and maintenance program for BlackBerry smartphones that are returned to it by the carrier, the reseller, or the customer. It generates revenue for repair after the expiration of the contractual warranty period.

The Company competes with Apple Inc., Microsoft Inc., Nokia Corporation, Dell, Inc., Fujitsu Limited, General Dynamics Corporation, Hitachi America, Ltd., HTC Corporation, Huawei Technologies Co. Ltd., LG Electronics Mobile Communications Company, Mitsubishi Corporation, Motorola Mobility Holdings, Inc., NEC Corporation, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Corporation, ZTE Corporation, IBM Corporation, Microsoft Corporation, Notify Technology Corporation, Openwave Systems Inc., Seven Networks, Inc., Sybase, Inc. and Good Technologies.

Advisors' Opinion:

• [By Jon C. Ogg]

  BlackBerry Ltd. (NASDAQ: BBRY) was raised to Hold from Sell at Canaccord Genuity, but only now that a first buyout offer has put in a likely floor.

• [By Rebecca McClay]

  Note: Are the best investments for 2013's second half in your portfolio? We have our experts' picks here - check them out now.
  
  In other tech stock news today, Blackberry Ltd. (Nasdaq: BBRY) is rallying more than 2% as investors anticipate that the Microsoft deal means Blackberry, too, may be acquired as it evaluates strategic alternatives.

• [By Roberto Pedone]

  BlackBerry (BBRY) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. This stock closed up 10.4% to $10.78 in Monday's trading session.

  Monday's Volume: 92.69 million
  
  Three-Month Average Volume: 22.71 million
  
  Volume % Change: 301%

  Shares of BBRY ripped higher on Monday after the company said it had formed a committee to explore strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment.

  From a technical perspective, BBRY gapped sharply higher here and broke out above some near-term overhead resistance levels at $9.88 to $9.93 with heavy upside volume. This move has now pushed shares of BBRY within range of triggering another big breakout trade. That trade will hit if BBRY manages to take out its gap down day high from late June at $10.98 and then once it clears its 50-day moving average at $11.14 with high volume.

  Traders should now look for long-biased trades in BBRY as long as it's trending above $10 or $9.88 and then once it sustains a move or close above those breakout levels with volume that hits near or above 22.71 million shares. If that breakout hits soon, then BBRY will set up to re-fill some of its previous gap down zone from June that started at $15.09. Some possible upside targets if BBRY gets into that gap with volume are its 200-day at $12.80 to $13.50.

• [By Alex Jordon]

  With BlackBerry (BBRY) apparently now "in play", you're hearing all the "what-if" scenarios:

  *What if Cisco (CSCO) . .

Best Warren Buffett Stocks For 2014: Dynavax Technologies Corporation(DVAX)

Dynavax Technologies Corporation, a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious diseases. The company's lead product candidate includes HEPLISAV, a Phase 3 investigational adult hepatitis B vaccine designed to provide protection with fewer doses than current licensed vaccines. It also develops Universal Flu vaccine, a Phase 1b clinical trial vaccine for influenza prevention; SD-101, a Phase Ib clinical trial hepatitis C therapy; DV-601, a Phase Ib clinical trial hepatitis B therapy; AZD1419, a preclinical asthma therapy; and DV1179, a Phase 1 trial autoimmune and inflammatory disease therapy. Dynavax Technologies Corporation has strategic alliance with GlaxoSmithKline plc to discover, develop, and commercialize DV1179 and other endosomal toll-like receptor inhibitors for diseases, such as lupus, psoriasis, and rheumatoid arthritis; and develop a TLR8 inhibitor for the treatment of multiple autoimmune and i nflammatory diseases, as well as has research and license agreement with AstraZeneca to discover and develop TLR9 agonist-based therapies for the treatment of asthma and chronic obstructive pulmonary disease. The company was founded in 1996 and is based in Berkeley, California.

Top 10 Stocks To Watch For 2014: Cardia Technologies Ltd(CNN.AX)

Cardia Bioplastics Limited engages in the development, manufacture, and marketing of sustainable resins derived from renewable resources for packaging and plastic products industries. The company offers biohybrid resins, a blend of renewable thermoplastic materials and traditional polyolefins; and compostable resins and biodegradable materials for various applications, such as films, coatings and laminates, injection moldings, blow moldings, and extrusions. It also designs, develops, and produces ready to use finished goods, including films and bags. In addition, the company?s products are also used in the flexible packaging applications, including flexible films for food and non-food applications, shrink wrap, protective packaging films, carrier bags, waste management bags, and sacks. It operates in Australia, the Americas, Europe, and Asia. The company was formerly known as Cardia Technologies Limited and changed its name to Cardia Bioplastics Limited in July 2009. Card ia Bioplastics Limited was founded in 2002 and is based in Hawthorn, Australia.

Top 10 Stocks To Watch For 2014: AXT Inc(AXTI)

AXT, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes compound and single element semiconductor substrates for use in wireless communications, lighting display applications, fiber optic communications, and solar cell. It offers semi-insulating substrates made from gallium arsenide, which are used in power amplifiers and radio frequency integrated circuits of wireless handsets, direct broadcast televisions, high-performance transistors, and satellite communications applications. The company also provides semi-conducting substrates made from gallium arsenide that are used for applications in light emitting diodes, lasers, and optical couplers; substrates made from indium phosphide used in broadband and fiber optic communications; and substrates made from germanium used in satellite and terrestrial solar cells, and for optical applications. It manufactures its semiconductor substrates using its proprietary vertical gradient freeze technol ogy. In addition, the company, through its joint venture agreements, manufactures and sells gallium, arsenic, germanium, germanium dioxide, paralytic boron nitride crucibles, and boron oxide. AXT, Inc. sells its products through direct sales force in the United States, as well as through independent sales representatives in France, Germany, Japan, South Korea, Taiwan, and the United Kingdom. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was founded in 1986 and is headquartered in Fremont, California.

Top 10 Stocks To Watch For 2014: QAD Inc.(QADA)

QAD Inc. provides enterprise software applications, and related services and support for manufacturing companies worldwide. The company offers QAD Enterprise Applications, an integrated suite of software applications, which support the business processes. Its QAD Enterprise Applications include suites, such as QAD Financials to manage and control fiscal business processes at various levels; QAD Customer Management suite for manufacturers to acquire new customers and retain customers through service and support; QAD Manufacturing that offers solutions in the areas of planning and scheduling, cost management, material control, shop floor control, and reporting in various mixed-mode manufacturing environments; and QAD Supply Chain that fulfills materials planning and movement requirements. The QAD Enterprise Applications also comprise QAD Service and Support product suite that handles service calls, manages service queues, and organizes mobile field resources, as well as prov ides project management support; QAD Enterprise Asset Management, an integrated plant operation solution to manage assets from inception through operations and replacement; QAD Transportation Management, which addresses the needs of distributors and manufacturers in the areas of global trade management, freight management, and trade compliance; QAD Analytics that helps in analyses, decision-making, and performance management; and QAD QXtend toolset for open interoperability. The company also provides services, including customer support, implementation services, on demand and application management services, migration and upgrade services, and business process management services. It serves various industries, such as automotive, consumer products, food and beverage, high technology, industrial products, and life sciences industries. The company sells its products directly; and through distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.

Top 10 Stocks To Watch For 2014: Whiting USA Trust I(WHX)

Whiting USA Trust I is a REIT. The trust was founded in 2007 and is based in Austin, Texas.

Advisors' Opinion:

• [By Roberto Pedone]

  Another name that's starting to move within range of triggering a big breakout trade is Whiting USA Trust I (WHX). This stock hasn't done much so far in 2013, with shares up just 4.5%.

  If you look at the chart for Whiting USA Trust I, you'll notice that this stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $3.65 to its intraday high of $4.87 a share. During that move, shares of WHX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now spiked shares of WHX back above both its 50-day and 200-day moving averages, which is bullish. Shares of WHX are now quickly moving within range of triggering a big breakout trade.

  Traders should now look for long-biased trades in WHX if it manages to break out above some near-term overhead resistance levels at $4.90 to $5.04 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 321,220 shares. If that breakout triggers soon, then WHX will set up to re-test or possibly take out its next major overhead resistance levels at $6.23 to $8.01 a share.

  Traders can look to buy WHX off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $4.12 a share. One can also buy WHX off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 10 Stocks To Watch For 2014: Darling International Inc. (DAR)

Darling International Inc. provides rendering, recycling, and recovery solutions to the food industry worldwide. It operates in two segments, Rendering and Restaurant Services. The Rendering segment engages in collecting and processing animal by-products and converting these into useable oils and proteins utilized by the agricultural, leather, and oleo-chemical industries. This segment offers various products, such as meat and bone meal, and bleachable fancy tallow. The Restaurant Services segment involves in the collection of used cooking oils from food service establishments and recycling them into similar products, such as high-energy animal feed ingredients and industrial oils. This segment provides grease trap servicing; and schedules services, such as fat and bone, and used cooking oil collection, as well as trap cleaning services for contracted customers. The company primarily sells its products to producers of oleo-chemicals, soaps, pet foods, leather goods, livest ock feed, and bio-fuels through commodities brokers, company agents, and directly. It was formerly known as Darling-Delaware Company, Inc. and changed its name to Darling International Inc. in December 1993. The company was founded in 1882 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By Jon C. Ogg]

  Darling International Inc. (NYSE: DAR) was raised to Buy from Hold and the price target was raised to $25 from $22 at Canaccord Genuity.

  Hasbro Inc. (NASDAQ: HAS) was raised to Buy all the way from Sell by Citigroup.

Top 10 Stocks To Watch For 2014: Calix Inc(CALX)

Calix, Inc. provides broadband communications access systems and software for fiber and copper-based network architectures that enable communications service providers (CSPs) to connect to their residential and business subscribers. The company?s Unified Access portfolio comprises hardware and software products, which include C-Series platform, and E-Series platforms and nodes. The C-Series platform is a C7 multiservice and multiprotocol access platform that supports various basic voice and data services, as well as advanced, high-speed, and packet-based services, including gigabit Ethernet, GPON and DSL, and advanced applications, such as IPTV offered by CSPs. The E-Series platforms and nodes consist of chassis-based platforms, and fixed form factor nodes that support various advanced IP-based services, and enable CSPs to implement advanced Ethernet transport and aggregation; and voice, data, and video services over fiber and copper-based network architectures. The compan y?s Unified Access portfolio also includes P-Series Optical Network Terminals, which auto-detect the bandwidth of the network and enable CSPs to change line rates and features without truck rolls or hardware replacements; and Calix Management System, a server-based network management software, which enables CSPs to remotely manage their access networks and scale bandwidth capacity to support advanced broadband services and video. Calix, Inc. markets its access systems and software to CSPs in North America, the Caribbean, and Latin America directly. The company was founded in 1999 and is headquartered in Petaluma, California.

Top 10 Stocks To Watch For 2014: Carbon Energy Ltd(CNX.AX)

Carbon Energy Limited focuses on producing clean energy and chemicals feedstock from Underground Coal Gasification (UCG) syngas. UCG is an alternative coal mining method that converts coal into gas underground using a series of boreholes operated remotely from the surface. The company also holds the right to explore and lease coal tenements in Wyoming, the United States, and Montana/North Dakota, the United States. In addition, it has a joint venture with Hema Endustri to develop UCG projects in the Amasra coal tenements located on the coast of the Black Sea in northern Turkey. The company was formerly known as Metex Resources Ltd and changed its name to Carbon Energy Limited in June 2008. Carbon Energy Limited is headquartered in Milton, Australia.

Advisers can report elder financial abuse without violating client privacy

Investment advisers and brokers who suspect that elderly clients are the victims of financial abuse can report it to appropriate government agencies without worrying about violating their privacy, according to guidance issued by federal financial agencies Tuesday.

Under the Gramm-Leach-Bliley Act, a financial firm cannot disclose a client's information to a third party without telling the client and giving him or her a chance to decline to release the information.

In a conference call with reporters, federal regulators clarified that notifying local, state or federal officials about suspicions of elderly clients being ripped off is protected under the law.

“Reporting suspected elder financial abuse to the appropriate authorities is typically the right thing to do and generally will not violate the Gramm-Leach Bliley Act,” said Richard Cordray, director of the Consumer Financial Protection Bureau.

The elderly are attractive targets because they often have accumulated assets and sometimes suffer from diminished mental capacity, Mr. Cordray said.

Employees of financial institutions “may be able to spot irregular transactions, abnormal account activity, or unusual behavior that signals financial abuse sooner than anyone else can,” he said. “When seniors fall victim to theft by a trusted family member or a scam, they may be too embarrassed or too frail to pursue legal action — so it is critical that other folks are looking out for them, too.”

WARNING: These Stocks Will Crush You (Strong Sell)

Log in to your brokerage account... Call your broker... Request a plan prospectus from your pension administrator... Jump online and review the holdings in your "target retirement" funds, ETFs, variable annuities...

Do whatever it takes to find out - today - how much exposure you have to real estate investment trusts (REITs), and mortgage REITs in particular.

Then get rid of as many of them as you can.

The Market Vectors Mortgage REIT ETF (MORT) is down 24% in less than five months. And a number of its components are down more than 30%.

But it's going to get worse. A lot worse. And that's why I'm issuing a warning, because practically every "properly diversified" portfolio in America cashes these REIT checks.

Many people depend on them.

This is dangerous, especially when two of the most widely held mortgage REITs also happen to be two of the worst.

To be sure, aside from the one (big) exception you'll see today, a longtime high-yield darling is about to get crushed...

The REIT Spoiler

You can pin this one on the U.S. Federal Reserve, too...

Thanks largely to its pernicious tinkering of monetary policy - first via artificially low interest rates and then via direct injection of capital into the financial system to the tune of $85 billion per month of direct bond buying ($45 billion specifically spent on mortgage-backed securities) - the Fed has created an environment in which interest rates are destined to rise.

In fact, the mere mention by Ben Bernanke back in May that the Fed will soon "taper" its bond-buying program now has caused interest rates, as measured by the benchmark 10-year Treasury Note, to rise to their highest levels in more than two years.

With the biggest buyer moving out of the market, MBSs are sure to take a hit. Moreover, the pace of rate increase has been anything but subtle, with the 10-year yield spiking to 2.90% - a 40% jump in three months.

Because mortgage REITs generate income by essentially borrowing money at short-term rates and then investing in higher-yielding MBSs, any significant increase in the cost of borrowing can devastate mortgage REIT book value.

And they're about to lose their safety net...

As the Fed has basically, and repeatedly, told the markets that tapering is a fait accompli, it means that the buyer of last resort for MBS is about to remove - or at least slowly pull back - the MBS safety net.

Adding more uncertainty to the mortgage REIT equation is so-called "agency risk."

The current debate over the fate of mortgage-related agencies Fannie Mae and Freddie Mac, and the future limited role these embattled agencies could play in the MBS space, also has caused the smart money to jettison mortgage REITs.

Two of the worst mortgage REITs to own right now also happen to be two of the most widely held ones, and they are Annaly Capital Management Inc (NYSE: NLY-C) and Two Harbors Investment Corp. (NYSE: TWO).

In the case of Annaly, the fund invests primarily in MBSs guaranteed by Fannie and Freddie, so it's little wonder why the exodus from this fund has sent NLY cascading some 25% over the past three months. As for Two Harbors, the spin-off of its equity-REIT Silver Bay Realty operations in May turned it into much more of a conventional MBS play. The market saw this, got spooked, and the result was a 20% smackdown over the last three months.

So, are there any REITs that still are okay to own these days? The short answer is yes...

The REIT Exception: Safe and "Substantial" Income

Vornado Realty Trust (NYSE: VNO) is a traditional REIT.

Unlike mortgage REITs, Vornado actually invests directly in prime real estate properties such as office buildings, and the rents from these properties are what Vornado uses to generate income for unitholders.

That income is substantial, as the company owns buildings in the best, highest-rent locations around the country, including economically vibrant New York City, San Francisco, and Washington, D.C.

Vornado doesn't pay 10%-plus on your principal, of course, like NLY and TWO. It gives you something much more powerful: the ability to keep your principal, just in case you ever want your money back.

Fed Minutes Confirm Bond Purchase Tapering in 2013, Ending in Mid-2014

The Federal Reserve has released the official minutes from the July 31 FOMC meeting. As many have expected, the minutes are showing that the Fed members are more or less ready to begin tapering the $85 billion in asset purchases and there was also a discussion about whether or not the FOMC should change the forward guidance about how long the Fed will keep interest rates so low.

While this signals a start of the tapering of the $85 billion in bond buying each month and signals a potential beginning of the end for Fed Funds at 0.00% to 0.25%, the reality is that this should have been expected. We also have an issue with the “official minutes” getting to influence the same stock and bond markets twice within three weeks rather than when it was released six weeks after the fact in the prior years.

24/7 Wall St. maintains that the FOMC Minutes in the manner they are released now should be banned. Here are the comments that should stand out as far as future interest rate and monetary policy:

First, almost all participants confirmed that they were broadly comfortable with the characterization of the contingent outlook for asset purchases that was presented in the June postmeeting press conference and in the July monetary policy testimony… if economic conditions improved broadly as expected, the Committee would moderate the pace of its securities purchases later this year. And if economic conditions continued to develop broadly as anticipated, the Committee would reduce the pace of purchases in measured steps and conclude the purchase program around the middle of 2014. Second, participants considered whether it would be desirable to include in the Committee’s policy statement additional information regarding the Committee’s contingent outlook for asset purchases. Finally, the potential for clarifying or strengthening the Committee’s forward guidance for the federal funds rate was discussed. In general, there was support for maintaining the current numerical thresholds in the forward guidance.

The long and short of the matter is that Ben Bernanke and the Fed heads all get to reiterate or alter their views in a carefully thought out period. Keep in mind that this has been being written for roughly three weeks and pertains to the July 31 meeting. We have seen more than twenty economic releases since this FOMC meeting, yet somehow the market gets tricked into thinking this is something new.

The S&P 500 dropped to down almost 7 points and the DJIA is down about 70 points. The 10-year Treasury yield is roughly 2.81%.

5 Year Lows: Anworth Mortgage Asset Corporation, Cantago Oil & Gas Company, Sequenom and North American Palladium

According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: Anworth Mortgage Asset Corporation, Cantago Oil & Gas Company, Sequenom Inc and North American Palladium Ltd.

Anworth Mortgage Asset Corporation (NYSE:ANH) Reached the 5-year Low of $4.73

The prices of Anworth Mortgage Asset Corporation (NYSE:ANH) shares have declined to close to the 5-year low of $4.73, which is 49.3% off the 5-year high of $8.340. Anworth Mortgage Asset Corporation is owned by 1 Guru that we are tracking. Among them, 1 have added to their positions during the past quarter. 2 reduced their positions. Anworth Mortgage Asset Corporation has a market cap of $676.247 million; its shares were traded at around $4.73 with a P/E ratio of 8.02 and P/S ratio of 6.42. The dividend yield of Anworth Mortgage Asset Corporation stocks is 12.68%.

Anworth Mortgage reported their 2013 second quarter results. The Company reported net income of about $23 million.

Contango Oil & Gas Company (AMEX:MCF) Reached the 5-year Low of $36.82

The prices of Contango Oil & Gas Company (AMEX:MCF) shares have declined to close to the 5-year low of $36.82, which is 54.6% off the 5-year high of $69.750. Contango Oil & Gas Company is owned by 3 Gurus we are tracking. Among them, 2 have added to their positions during the past quarter. 0 reduced their positions. Contango Oil & Gas Company has a market cap of $559.478 million; its shares were traded at around $36.82 with a P/E ratio of 35.60 and P/S ratio of 4.41.

Cantango Oil & Gas Company announced their 2013 fiscal year-end results with revenues of $127.2 million and net income(loss) per diluted share of $0.64.

John Rogers kept his position in Cantago Oil & Gas Company. He owns about 3 million shares as of June 30, 2013.

Sequenom (NAS:SQNM) Reached the 5-year Low of $2.81

The prices of Sequenom (NAS:SQNM) shares have declined to close to the 5-year low of $2.81, which is 91.2% off the 5-year high of $29.140. Sequen! om is owned by 3 Gurus we are tracking. Among them, 0 have added to their positions during the past quarter. 2 reduced their positions. Sequenom has a market cap of $326.477 million; its shares were traded at around $2.81 with and P/S ratio of 2.50.

Sequenom reported their 2013 second quarter results. The Company reported net income of $31.02 million and revenues of $34.9 million.

North American Palladium (AMEX:PAL) Reached the 5-year Low of $1.02

The prices of North American Palladium (AMEX:PAL) shares have declined to close to the 5-year low of $1.02, which is 88.7% off the 5-year high of $7.990. North American Palladium is owned by 1 Guru we are tracking. Among them, 1 have added to his position during the past quarter. 0 reduced their positions. North American Palladium, Ltd. has a market cap of $200.717 million; its shares were traded at around $1.02 with and P/S ratio of 1.17.

North American Palladium Ltd. declared revenues of $33.2 million and net loss from continuing operations of $26.3 million for their 2013 second quarter results.

Go here for the complete list of 5-year lows.

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Shutdown and default: What are the odds?

No House Speaker wants a government shutdown or U.S. default on his watch. That's why some believe John Boehner's gambit to satisfy rebels in his caucus who insist on defunding Obamacare could hurt his legacy.

NEW YORK (CNNMoney) The uncertainty created by the budget standoff on Capitol Hill is turning everyone into an oddsmaker.

Will the government shut down? Will the Treasury Department be forced to default on some of the government's legal obligations?

CNN: House votes to defund Obamacare

CNNMoney compiled the most recent odds given by four seasoned political observers.

As a group they agree a shutdown is more likely than a default, but they are by no means unified as to the chances for either.

Greg Valliere, chief political strategist, Potomac Research Group

Chance of a shutdown: Less than 50% but rising

Chance of a default: 10%, up from 5% a few days ago.

House Republican leaders have "capitulated to their rebellious troops, moving closer to a government shutdown and a debt crisis that even Karl Rove argues could do great damage to the Republican Party," Valliere wrote in a research note.

Sean West, U.S. policy director, Eurasia Group

Chance of a shutdown: 20%

Chance of a default: "Infinitesimal"

If a shutdown happens, West said, "it would be an accident because nobody in power actually wants it. ... The biggest risk is of a miscalculation: That risk has gone up as both sides play hardball, with no responsible adult herding the key stakeholders together."

As for defaulting, "It's impossible to believe Congress would let it happen." The "fail safe," he said, is House Speaker John Boehner, who won't want a default on his watch.

Stan Collender, budget expert and former Democratic Hill ! staffer

Chance of a shutdown: 70%

Chance of a default: 10% to 20%

Collender cites a long list of reasons for his high shutdown odds in his blog Capital Gains and Games. Among them, there's no charismatic leader who can overcome the partisan warfare. President Obama and Boehner have too little sway with their own parties. Senate Minority Leader Mitch McConnell, who has served as a deal closer in prior budget standoffs, is now weakened by the fact that he's facing a primary challenge by a Tea Party candidate.

Plus, for many House Republicans, the "negative political impact" of the shutdowns in the mid-1990s is "a distant (or nonexistent) memory."

But the biggest complication is that this year's fight isn't really about the budget -- it's about Obamacare. And that makes it harder to strike a budget deal that can avert a shutdown or default, he argues.

Jim Kessler, senior vice president for policy at Third Way, a Democratic-leaning centrist think tank; and former Democratic Hill staffer

Chance of a shutdown: 75%

Chance of a default: 50%

"As bad as a shutdown is, it's not as devastating as a default and I think Republicans are willing to go there. It would be bad, but the sun will still rise in the morning," Kessler said.

  What happens in a government shutdown

As for raising the country's borrowing limit, Kessler also finds it hard to be sanguine.

During the 2011 debt ceiling fight, he could see a way out. This time he sees more chance for "chaos than resolution."

"I think there's a very real possibility that we default on some obligations, experience very bad market turmoil, and then quickly pass a debt deal that could possibly cost Boehner his speakership."

Capital One: Bank Stress Test Winner

NEW YORK (TheStreet) -- Capital One (COF) was the winner among stocks of large U.S banks on Tuesday, with shares rising over 2% to close at $69.13.

Capital One was among the large bank holding companies that on Monday disclosed the results of their mid-year stress tests, based on the latest "severely adverse" scenario provided by the Federal Reserve.

This is the third round of stress tests this year for Capital One at the holding company level, following the Dodd-Frank Act Stress Tests (DFAST) in early March that gauged the ability of the largest 18 U.S. bank holding companies to maintain Basel 1 Tier 1 common equity ratios of at least 5.0% through 2014 under the scenario of a terrible economic recession. The Comprehensive Capital Analysis and Review (CCAR) later in March applied the big banks' capital deployment plans to the same dire scenario.

Capital One said that under the new "severely adverse" scenario that includes a 4% decline in GDP over six quarters, with the unemployment rate increasing to 11.7% over eight quarters, along with a 21% drop in home prices and a 60% decline in stock prices of nearly 60%, it would post cumulative net losses of $2.3 billion for nine quarters through the second quarter of 2015, with a minimum Tier 1 common equity ratio of 9.9%. That was a solid improvement from the minimum Tier 1 common equity ratio of 9.2%resulting from the CCAR test. The latest stress tests were based on March 31 financial statements. "Today's data release reinforces our view that COF has the ability to ask for a higher level of capital return in the next CCAR process given the fact that the company remains comfortably capitalized even in a stress scenario," KBW analyst Sanjay Sakhrani wrote late Monday in a note to clients. The analyst reiterated his "outperform" rating for Capital One, with a price target of $79.00. Please see JPMorgan, Other Big Banks Juiced by Mid-Year Stress Tests for much more detail on the solid mid-year stress tests, along with results for the "big six" U.S. banks. These include Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS), in addition to JPMorgan (JPM). Morgan Stanley showed the greatest improvement in its minimum Tier 1 common equity ratio under the mid-year stress tests from the CCAR tests, with the ratio rising to 9.5% from 6.7%.

Sterne Agee analyst Todd Hagerman in a note late Monday wrote "the industry in general has made meaningful strides to catch up with the Fed's ever-increasing standards and expectations" for the 2014 regulatory stress tests in March. Latest Regulator Leaks Concerning JPMorgan

Following numerous reports that JPMorgan was ready to pay fines of up to $700 million or $800 million to settle with the Department of Justice and federal bank regulators over misconduct related to the "London Whale" hedge trading losses last year, The Wall Street Journalon Tuesday reported that the Commodity Futures Trading Commission was also conducting a London Whale-related investigation.

According to the report -- which as usual cited unnamed sources, as the regulators seek to gain as many anti-JPM headlines as possible -- the CFTC is "focusing on a giant trading position that enforcement officials believe distorted prices and misled investors," during 2012.

The Journal also wrote that despite the reported large settlement, JPMorgan -- the company, and not individual employees, some of whom have already been indicted over the London Whale fiasco -- was still facing possible criminal charges from the Justice Department Investors were less than thrilled, sending JPMorgan's down a nickel to close at $53.09. The KBW Bank Index (I:BKX) rose 0.5% to close at 64.53, with all 24 index components ending with gains, except for JPM and Wells Fargo, which was down three cents to close at $42.86. All Eyes on the Fed Investors Wednesday afternoon will be focused on the next statement from the Federal Open Market Committee and Federal Reserve Chairman Bernanke's press conference, following the committee's two-day policy. The issue on Wednesday is whether or not the central bank will begin to curtail its "QE3" balance-sheet expansion, which has included monthly net purchases of $85 billion in long-term securities since last September. "No doubt the conversation among Fed officials will center around labor market conditions and whether or not the economy is strong enough to support a rollback in monthly asset purchases," according to Sterne Agee chief economist Lindsey Piegza. In a note to clients on Tuesday, Piegza wrote "there is a clear juxtaposition between strength and weakness in the numbers creating quite the quandary for the Fed. The market is anticipating a 'taper light' announcement of $5-$10bn, suggesting the Fed is unsure of the economy's underlying momentum but also an unwillingness to continue to grow the Fed's balance sheet indefinitely." RELATED STORIES: Next Banking Crisis an 'Easy Call': Mayo Ex-JPMorgan Traders Could Face 20 Years in Prison Banks Foresee Endless Profits Five Years After Crisis JPMorgan, Other Big Banks Juiced by Mid-Year Stress Tests SEC Charges 23 Funds With Short-Selling Violations on Stock Offerings Homebuilder Confidence Still High but Buyer Optimism Wanes -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

As Home Prices Rise, Borrowers Value Their Mortgage Again

NEW YORK (TheStreet) -- Paying down a mortgage has become priority for consumers again, reversing a trend in the housing downturn.

According to a new study by TransUnion, consumers in financial distress are placing increased value on paying their mortgage ahead of their credit cards for the first time since the housing bubble burst.

TransUnion studies the "payment hierarchy" of consumers. Essentially, they look at how consumers choose to prioritize payments when they are in financial distress, which provides an insight into which type of loans typically see delinquencies first.

Traditionally, mortgage and auto loans have always received top priority. For most consumers, auto loans comes first because most people are highly dependent on their cars for their livelihood. The mortgage is a big financial and emotional investment for many as well. Credit cards, therefore, typically came third. But in 2008, that hierarchy reversed. Consumers still paid their auto loans, but as home prices plummeted and unemployment rose their preferences shifted. They started paying their credit cards first, because healthy credit lines provided liquidity for consumers facing the prospect of job loss and declining paychecks. Whereas they no longer saw value in paying for an asset that was rapidly depreciating in value. So while mortgage delinquencies soared at banks, credit card portfolios actually performed much better. But with housing stabilizing over in 2012, consumers are going back to the traditional payment hierarchy. The TransUnion study found a strong link between the payment behavior of consumers and the housing prices. According to Toni Guitart, VP of Research and Consulting at TransUnion, the delinquency spread between mortgages and credit cards has converged as home prices have risen. The differences in payment behavior in different geographies also validated the link. For instance, in Los Angeles, where home prices crashed after the bubble burst but has seen rapid appreciation recently, the delinquency spread between mortgages and credit cards peaked at 4% but has recently converged to nearly equal levels. On the other hand, Dallas, which was insulated from the housing crisis and has had stable price conditions, have seen no changes in payment behavior.

So what does this all mean for banks?

Improvement in the economy has already led to a strong improvement in credit quality. So overall delinquencies have been declining and are low.

In mortgages, recent originations have been of strong quality, so the new problem loan rates are low. But the TransUnion study also shows that consumers, regardless of when the loan was originated, are now placing more importance in paying their mortgage.

So this might have some implications on how they reserve for future mortgage losses. JPMorgan Chase (JPM) recently said it would release $500 million in reserves for credit card losses in the second half of 2013. It would also release $1.2 billion in mortgage loss reserves. Still, this data was end of 2012 and while the housing market has recovered, things could change if the recovery falters. -- Written by Shanthi Bharatwaj in New York. >Contact by Email. Follow @shavenk

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.