TD Bank to Pay SEC $15M for Aiding Ponzi Schemer

The Securities and Exchange Commission on Monday charged TD Bank and a former executive with violating securities laws in connection with a massive South Florida-based Ponzi scheme conducted by Scott Rothstein, who is now serving a 50-year prison sentence.

The SEC alleges that TD Bank and its then-regional vice president Frank A. Spinosa defrauded investors by producing misleading documents and making false statements about accounts that Rothstein held at the bank and used to perpetuate his scheme.

Without admitting or denying the SEC’s findings, TD Bank agreed to pay $15 million and cease and desist from committing or causing any violations of Sections 17(a)(2) and (3) of the Securities Act. The SEC filed a complaint against Spinosa in U.S. District Court for the Southern District of Florida.

The SEC coordinated the filing of its cases with the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network, which today announced their own actions against TD Bank.

The SEC says that Spinosa falsely represented to several investors that TD Bank had restricted the movement of the funds in these accounts when, in fact, Rothstein could transfer investor money however he desired. Spinosa also orally assured investors that certain accounts held balances totaling millions of dollars, but each account actually held zero to $100.

“Financial institutions are key gatekeepers in the transactions and investments they facilitate and will be held to a high standard of accountability when their officers enable fraud,” said Andrew J. Ceresney, co-director of the SEC’s Division of Enforcement, in a statement. “TD Bank through a regional vice president produced false documents on bank letterhead and told outright lies to investors, failing in its gatekeeper role.”

Eric Bustillo, director of the SEC’s Miami Regional Office, added in the same statement that “Spinosa played a key supporting role in Rothstein’s Ponzi scheme by providing false comfort to investors that their money was safe and secure in the accounts at TD Bank. He enabled Rothstein to con investors into believing he couldn’t move their money when he could, and that the bank was holding money that it wasn’t.”

A TD Bank spokesperson told ThinkAdvisor that TD Bank has reached agreements with the OCC, SEC and FINCEN. "These agreements resolve each agency’s concerns regarding TD’s customer relationship" with Rothstein. TD Bank, the spokesperson said, "is pleased to resolve these regulatory concerns and to put the Rothstein matter behind us. TD works very closely with our regulators to ensure that it complies with all applicable laws and regulations."

In previous enforcement actions, the SEC has charged two feeder funds to the Rothstein Ponzi scheme.

According to the SEC’s order and complaint, Rothstein claimed to represent plaintiffs who had reached purported legal settlements that were confidential and payable over time by large corporate defendants.

He claimed that the purported plaintiffs were willing to sell their periodic payments to investors at a discount in exchange for one lump-sum payment.

“The legal settlements were fake and the plaintiffs and defendants were not real. Rothstein told investors that the purported defendants had deposited the entire settlement amounts into attorney trust accounts. Rothstein opened 22 such accounts at Commerce Bank and TD Bank (the two merged in 2008) from November 2007 to October 2009,” the SEC states.

This Automobile Company May Be a Buy

Tesla Motors Inc. (TSLA) designs, develops, manufactures, and sells electric vehicles, and advanced electric vehicle powertrain components. Tesla cars are manufactured in a far different manner than traditional vehicles. They have one standard battery platform on which they can mount varying motors and bodies. The company stands at an advantage in achieving production efficiencies with its swappable production strategy.

Financials

Tesla's growing valuation now stands at $20.6 billion. This has infused the company with capital to aggressively invest in Superchargers, production, and international expansion. While Tesla has 1 percent of Ford Motor Company's (F) U.S. monthly sales, the electric car company already has nearly a third of Ford's $64 billion market capitalization. Tesla is now worth more than Suzuki Motor Co (SZKMF), Mazda Motor Corp (MZDAY), and Fiat, the majority owner of Chrysler Group, according to data compiled by Bloomberg. The stock has almost quadrupled in value this year, so it's not surprising that most analysts believe the stock is too richly valued to buy at its current levels. With a forecast of 25% for Q4, Tesla has been continually growing its gross profit margins well above, and beyond what Ford and General Motors Company (GM) are capable of.

Growth Opportunities

The company's CEO, Elon Musk announced that the company is working on developing a driverless car. The car is supposed to get ready within three years. It is not alone in developing self-driving vehicle technology. The new Mercedes-Benz S550 offers the most advanced production self-driving car systems, including adaptive cruise control that can handle stop-and-go traffic, and a system called Traffic Assist, which steers the car at low speeds. When the Model S launched last year, it was missing one feature-set commonly found among its luxury competitors: driver assistance features such as adaptive cruise control, blind spot monitoring, or lane departure warning. The company appears to! be addressing that lack, according to a recent statement by Musk.

The company plans to sell its first all-electric SUV, the Model X, next year. The Model X will be similarly transformational in rethinking the SUV or crossover. The 10-year-old car maker is currently targeting delivery of just 21,000 luxury sedans this year. Overseas, Tesla just opened a factory in the Netherlands, where eager Dutch, Belgian, and French customers are taking delivery of the hotly awaited Model S. Even though the company has yet to price the car in the market, at least 300 prospective customers have plunked down deposits of $5,000 to $42,500 to reserve Tesla in Hong Kong.

Tesla filed an application to trademark the "Model E" name last month. It's widely believed that this will be the name for the next generation of Tesla after the current Model S sedan and next year's Model X crossover. Musk has discussed having a more economically priced car on the market by 2017, which just so happens to be around the time that this driverless technology becomes available. So it's possible this technology would only be in the Model S and Model X, but not the more accessibly priced Model E.

Being a Game Changer

Tesla's charging stations aren't the typical electric vehicle charging station. On average, Tesla's Superchargers are about 16 times faster than most public charging stations. In fact, Model S owners can get a 50% battery charge in just 20 minutes at a Supercharging station. Its $20-billion valuation means that management has even more cash than they had planned for to make the necessary investments, or even ramp up production and expansion more rapidly. Musk says the company should hit its 25% gross profit margin target, excluding zero-emission vehicle credits, by the fourth quarter of 2013. Tesla's business model of selling directly to consumers is another factor that sets Tesla apart from traditional automakers.

My Takeaway

It is one of the most innovative and forward-thinking companies in t! he auto i! ndustry today. Tesla's future is largely dependent on its ability to continue innovating. U.S. markets are saturated. Tesla and other automakers are looking for international customers for explosive growth, particularly in China. An investor may get rich with this growing trend as the automakers are poised to surge with China's middle class. China is already the world's largest auto market - and it's set to grow even bigger in coming years.

Entering the vehicle market without the normal constraints and biases that bog down traditional manufacturers has helped this California-based company become a wild success in the car market. All these factors are building the foundation for the company's eventual mass-market affordable car. And each factor helps to secure Tesla's spot among the big automotive companies, and change the auto industry forever.

Top 10 Biotech Companies To Watch In Right Now

Even though the equity strategy team at UBS has downgraded U.S. equities to Neutral from Outperform, they remain very positive on large cap biotechnology names. Acknowledging in their recent report that the U.S. downgrade was as much a valuation call as anything, they also feel that there is a degree of event risk to U.S. stocks that may be less likely to affect the biotechnology sector.

Despite relative outperformance of the large cap biotech group over the past two years, the UBS team sees the new product cycles and attendant mid- to long-term growth as a strong basis for valuation. In fact, they note that valuation is currently at the low end of historical ranges. Here are the top large cap biotechnology stocks to buy from UBS.

Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) has been on fire through the summer and continues to be a target of takeover rumors. While the company only has one drug on the market,�Soliris, which treats two rare diseases, big pharmaceutical companies may indeed have Alexion in their sights. The UBS price target for the stock is $126. The Thomson/First Call estimate is $122.

Top 10 Biotech Companies To Watch In Right Now: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

Top 10 Biotech Companies To Watch In Right Now: Algeta ASA (ALGETA)

Algeta ASA is a Norway-based biotechnology company engaged in the development of targeted cancer therapies based on its alpha-pharmaceutical platform. The Company�� principal product is Alpharadin for the treatment of bone metastases resulting from castration-resistant prostate cancer. The Company�� pipeline also includes Alpharadin for the treatment of bone metastases resulting from breast cancer, a combination of Alpharadin with Taxotere for the treatment of bone metastases resulting from prostate cancer and Thorium-227 showing various cancer indications. The Company develops Alpharadin in a development and marketing cooperation with Bayer Schering Pharma. Algeta ASA is active through the two wholly owned subsidiaries, Algeta Innovations AS and Algeta UK Limited. On April 12, 2012, the Company announced that it estabilished a subsidiary active in the United States, Algeta US.

Best Blue Chip Stocks To Own Right Now: Neoprobe Corporation(NEOP)

Neoprobe Corporation, a biomedical company, engages in the development and commercialization of precision diagnostics that enhance patient care and improve patient benefit. The company is developing and commercializing targeted agents aimed at the identification of occult (undetected) disease. Neoprobe?s two lead radiopharmaceutical agent platforms, Lymphoseek and RIGScan are intended to help surgeons better identify and treat certain types of cancer. Lymphoseek is a diagnostic imaging agent intended for radiolabeling and administration in radiodetection and visualization of the lymphatic system draining the region of injection for delineation of the lymphatic tissue; and RIGScan is an intraoperative biologic targeting agent consisting of a radiolabeled murine monoclonal antibody. The company has a biopharmaceutical development and supply agreement with Laureate Biopharmaceutical Services, Inc. to support the initial evaluation of the viability of the CC49 master working c ell bank, as well as the initial steps in re-validating the commercial production process for the biologic agent used in RIGScan CR. The company was founded in 1983 and is based in Dublin, Ohio.

Top 10 Biotech Companies To Watch In Right Now: RXi Pharmaceuticals Corp (RXII)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidiary Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Top 10 Biotech Companies To Watch In Right Now: Scancell Holdings PLC (SCLP)

Scancell Holdings PLC is a United Kingdom-based company. The Company�� principal activity of the consists of the discovery and development of monoclonal antibodies and vaccines for the treatment of cancer. In April 2012, the Company completed recruitment to the Phase 1 clinical trial of SCIBI. In May 2012, the Company commenced recruitment and treatment of the first patient in the second part of it Phase 1/2 clinical trial of SCIBI. The Phase 2 part of the trial is conducted in five United Kingdom centers in Nottingham, Manchester, Newcastle, Leeds, and Southampton. On August 15, 2012, the Company announced the development of a platform technology, Moditope.

Top 10 Biotech Companies To Watch In Right Now: Cannabis Science Inc (CBIS.PK)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Top 10 Biotech Companies To Watch In Right Now: Gentium SpA(GENT)

Gentium S.p.A., a biopharmaceutical company, focuses on the development and manufacture of its primary product candidate, defibrotide, an investigational drug based on a mixture of single-stranded and double-stranded DNA extracted from pig intestines. It develops defibrotide for the treatment and prevention of hepatic veno-occlusive disease (VOD), a condition that occurs when veins in the liver are blocked as a result of cancer treatments, such as chemotherapy or radiation, that are administered prior to stem cell transplantation. The company has completed a Phase III clinical trial of defibrotide for the treatment of severe VOD in the United States, Canada, and Israel; and a Phase II/III pediatric trial in Europe for the prevention of VOD. It also offers sulglicotide that is developed from swine duodenum, and has ulcer healing and gastrointestinal protective properties in South Korea; and urokinase, which is made from human urine to treat various vascular disorders, such as deep vein thrombosis and pulmonary embolisms. The company was formerly known as Pharma Research S.r.L. and changed its name to Gentium S.p.A. in July 2001. Gentium S.p.A. was founded in 1993 and is headquartered in Villa Guardia, Italy.

Top 10 Biotech Companies To Watch In Right Now: Medivation Inc.(MDVN)

Medivation, Inc., a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of castration-resistant prostate cancer, Alzheimer?s disease, and Huntington disease. The company?s product candidates under clinical development include MDV3100, which is in Phase 3 development for the treatment of castration-resistant prostate cancer; and dimebon, which is in Phase 3 clinical trial for the treatment of Alzheimer?s disease and Huntington disease. It has collaboration agreements with Pfizer Inc. to develop and commercialize dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. The company was founded in 2003 and is based in San Francisco, California.

Advisors' Opinion:

• [By Lee Jackson]

  Medivation Inc. (NASDAQ: MDVN) is a top stock to buy and makes the UBS Key Call list as well. The company expects to present top line phase 3 data from the crucial PREVAIL trial of Xtandi in castration-resistant metastatic prostate cancer. UBS is highly confident the trials will prove successful. Its price target for the stock is $74, and the consensus target is $69.50.

Top 10 Biotech Companies To Watch In Right Now: Nektar Therapeutics(NKTR)

Nektar Therapeutics, a clinical-stage biopharmaceutical company, engages in developing a pipeline of drug candidates that utilize its PEGylation and polymer conjugate technology platforms. The company?s product pipeline consists of drug candidates across various therapeutic areas, including oncology, pain, anti-infectives, anti-viral, and immunology. Its research and development activities involve small molecule drugs, peptides, and other potential biologic drug candidates. The company?s proprietary drug candidates in clinical development comprise NKTR-118, a peripheral opioid antagonist, which has completed Phase II clinical trail for the treatment of opioid-induced constipation; BAY41-6551 that has completed Phase II clinical trail to treat gram-negative pneumonias; NKTR-102, a topoisomerase I inhibitor-polymer conjugate, which is in Phase II clinical trail for multiple cancer indications, including breast, ovarian, and colorectal; and NKTR-105 that is in Phase I clinica l trail to treat solid tumors. Its preclinical products consists of NKTR-119 (Opioid/NKTR-118 combinations) for the treatment of pain; NKTR-181 (abuse deterrent, tamper-resistant opioid) to treat pain; NKTR-194 (non-scheduled opioid) for the treatment of mild to moderate pain; NKTR-171 (tricyclic antidepressant) to treat neuropathic pain; and NKTR-140 (protease inhibitor candidate) to treat HIV. The company has collaboration with Bayer Healthcare LLC to develop BAY41-6551 (NKTR-061, Amikacin Inhale), which is an inhaled solution of amikacin, an aminoglycoside antibiotic; and a license agreement with AstraZeneca AB for the development and commercialization of Oral NKTR-118 and NKTR-119. In addition, Nektar Therapeutics has various license, manufacturing, and supply agreements for its technology with biotechnology and pharmaceutical companies, such as Affymax, Amgen, Baxter, Roche, Merck, Pfizer, and UCB Pharma. The company was founded in 1990 and is headquartered in San Franc isco, California.

Advisors' Opinion:

• [By Luke Jacobi]

  Nektar Therapeutics (NASDAQ: NKTR) were down 23.90 percent to $10.54 after the company reported that the results from Phase 2 trial of NKTR-181 missed primary efficacy endpoint.

Top 10 Biotech Companies To Watch In Right Now: AMAG Pharmaceuticals Inc.(AMAG)

AMAG Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of a therapeutic iron compound to treat iron deficiency anemia (IDA). Its principal product includes Feraheme (ferumoxytol) injection for intravenous (IV) use, which was approved for marketing in the United States in June 2009 by the U.S. Food and Drug Administration, for use as an IV iron replacement therapy for the treatment of IDA in adult patients with chronic kidney disease (CKD). The company is pursuing marketing applications in the European Union, Canada, and Switzerland for Feraheme for the treatment of IDA in CKD patients. AMAG Pharmaceuticals was founded in 1981 and is based in Lexington, Massachusetts.

5 Stocks Ready to Break Out

DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.

One example of a successful breakout trade I flagged recently was specialty retailer Aeropostale (ARO), which I featured in Sept. 16's "5 Stocks Ready for Breakouts" at around $8.90 a share. I mentioned in that piece that shares of ARO had recently been downtrending badly from $15.73 to its 52-week low of $7.78 a share. During that trend, shares of ARO were making lower highs and lower lows, which is bearish price action. Shares of ARO were just starting to spike higher off that $7.78 low and it was quickly moving within range of triggering a major breakout trade. That trade was set to hit if ARO managed to clear its gap down day high of $9.55 a share.

Guess what happened? Shares of ARO didn't wait long to trigger that breakout, since the stock broke out above its gap down day high the following day with monster upside volume. Shares of ARO gapped up big to the upside and the stock hit an intraday high of $10.47 a share. That represents a quick gain of 20% for anyone who bought shares of ARO in anticipation of that breakout.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

First Solar

One solar player that's starting to move within range of triggering a near-term breakout trade is First Solar (FSLR), which designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology. This stock has been in play with the bulls so far in 2013, with shares up sharply by 30%.

If you take a look at the chart for First Solar, you'll notice that this stock has been uptrending modestly over the last month, with shares moving higher from its low of $35.59 to its intraday high of $41.07 a share. During that uptrend, shares of FSLR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FSLR back above its 200-day moving average, and it's quickly pushing the stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in FSLR if it manages to break out above its 50-day at $42.04 a share and then once it clears its gap down day high from August at $42.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 4.67 million shares. If that breakout hits soon, then FSLR will set up re-fill some of its previous gap down zone that started near $49 a share.

Traders can look to buy FSLR off any weakness to anticipate that breakout and simply use a stop that sits right below its 200-day at $38.34 a share, or below more support at $37.50 a share. One can also buy FSLR off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Vanda Pharmaceuticals

Another biotechnology player that looks poised to trigger a big breakout trade is Vanda Pharmaceuticals (VNDA), which is focused on the development and commercialization of clinical-stage drug candidates for central nervous system disorders. This stock has been on fire so far in 2013, with shares up a whopping 258%.

If you take a look at the chart for Vanda Pharmaceuticals, you'll notice that this stock has recently broke out above some near-term overhead resistance levels at $12.34 to $12.66 a share with solid upside volume. So far, this breakout has held and now shares of VNDA are quickly moving within range of triggering an even bigger breakout trade.

Traders should now look for long-biased trades in VNDA if it manages to break out above its 52-week high at $13.30 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 908,467 shares. If that breakout hits soon, then VNDA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17 a share.

Traders can look to buy VNDA off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $12 a share. One could also buy VNDA off strength once it takes out $13.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Boyd Gaming

One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.

If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.

Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 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 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.

Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

SunEdison

Another semiconductor player that's starting to move within range of triggering a near-term breakout trade is SunEdison (SUNE), which provides technology solutions to corporations, utilities, governments and chip manufacturers to transform lives around the world. This stock has been red hot so far in 2013, with shares up big by 150%.

If you look at the chart for SunEdison, you'll notice that this stock recently formed a double bottom chart pattern at $7.08 to $7.13 a share. Following that bottom, shares of SUNE have started to spike higher and move within range of its 50-day moving average at $8.30 a share and close to triggering a near-term breakout trade.

Traders should now look for long-biased trades in SUNE if it manages to break out above its 50-day at $8.30 a share and then once it takes out more key resistance levels at $8.35 to $8.41 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 5.81 million shares. If that breakout triggers soon, then SUNE will set up to re-fill some of its previous gap down zone from August that started at $10 a share. If this stock gets into that gap with volume, then this stock could easily re-test or take out its 52-week high at $10.47 a share.

Traders can look to buy SUNE off any weakness to anticipate that breakout and simply use a stop that sits right below those double bottom support levels at $7.13 to $7.08 a share. One can also buy SUNE 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.

TriQuint Semiconductor

My final breakout trading prospect is TriQuint Semiconductor (TQNT), which designs, develops and manufactures advanced high-performance RF solutions for the devices and networks that carry voice, video and data. This stock is a favorite target of the bulls so far in 2013, with shares up huge by 68%.

If you look at the chart for TriQuint Semiconductor, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $7.41 to its recent high of $8.28 a share. During that uptrend, shares of TQNT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TQNT within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in TQNT if it manages to break out above some near-term overhead resistance levels at $8.28 a share to its 52-week high at $8.29 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.96 million shares. If that breakout triggers soon, then TQNT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $11 to $12 a share.

Traders can look to buy TQNT off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $7.69 a share, or below more support at $7.40 a share. One could also buy TQNT off strength once it clears those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Schorsch isn't done after Investors Capital

Fresh off Wednesday morning’s announcement of one broker-dealer acquisition, Nicholas Schorsch said that he will continue to pursue potential deals to expand and diversify his group of business.

RCS Capital Corp., one of Mr. Schorsch’s companies, agreed to acquire Investors Capital Holdings Ltd., which controls an independent broker-dealer with 550 reps and advisers. The deal marks the second independent-broker-dealer acquisition of the year for Mr. Schorsch, who is executive chairman of the board of RCS Capital.

Although he would not name specific targets, Mr. Schorsch said RCS Capital remains in the hunt for deals.

“I can’t tell you we’re done,” Mr. Schorsch said in an interview. “We’d love to look at insurance and other platform sponsors that are producing product.”

As with other recent acquisitions, Mr. Schorsch is keeping the management team of Investors Capital in place. He said that Tim Murphy will remain as chief executive.

RCS Capital is paying a significant premium for Investors Capital. In a filing with the Securities and Exchange Commission, RCS Capital said it expects to acquire the publicly traded Investors Capital Holdings for about $52.2 million, or $7.35 per share. Many holders of Investor Capital stock bought shares from its founder, Ted Charles, in 2011 for $4.25, when he retired and sold his stake. The expected offering price by RCS Capital represents a 73% premium over that price.

Mr. Schorsch noted that the sale of Mr. Charles’ shares represented less than half the company and that RCS Capital is buying the entire company.

“We paid what the company is worth in today’s market,” he said. Investors Capital “has grown its earnings and assets under management. The company has changed dramatically in the last three years.”

One immediate benefit to RCS Capital, which trades on the New York Stock Exchange under the symbol RCAP, will be savings from Investors Capital when it no longer has the expense of meeting regulatory guidelines as a public company, Mr. Schorsch said.

Speculation regarding the sale of Investors Capital, which sports 550 affiliated registered representatives and advisers, has been building for the past month. Early in September, Investors Capital Holdings, the holding company for the broker-dealer, saw a sizable spike in trading and in one day saw trading volume top 430,000 shares. The microcap stock typically trades closer to 13,000 shares per day.

Wednesday morning, trading in Investors Capital shares was heavy, with more than 100,000 shares changing hands before noon. The share price ! ranged between $5.60 and $6.80, still below Mr. Schorsch's expected acquisition price.

Mr. Schorsch, already a dynamo in the nontraded-REIT business, on an acquisition tear.

On Tuesday, he announced his first foray into mutual funds, which will gain him the potential to widen the distribution of his array of investment products. Hatteras Funds, a boutique alternative investments mutual fund firm with $2 billion in assets and six funds will be acquired by a subsidiary of RCS Capital.

Mr. Schorsch is CEO of American Realty Capital, which currently sponsors close to 12 illiquid nontraded-investment programs. Those are predominantly nontraded real estate investment trusts.

Among other deals, RCAP Holdings LLC, which is controlled by Mr. Schorsch, in June announced that it would acquire First Allied Holdings Inc., which included First Allied Securities Inc. and The Legend Group.

Combined, First Allied and Investors Capital have more than 2,000 affiliated financial advisers and registered reps. That makes Realty Capital one of the largest networks of such reps and advisers in the financial advice industry.

JPMorgan Chase's Rumored Settlement Is Bad for Investors

NEW YORK (TheStreet) -- I usually roll my eyes when I hear people talking about "evil" bankers and how they caused the financial crisis and how they price credit card fees too high.

In an article Tuesday, I shared my opinion that the government -- not Wall Street -- caused the housing crash.

But JPMorgan's (JPM) rumored agreement to reportedly pay at least a $750 million fine has me questioning whether bank executives are getting free passes on some bad behavior.

But to answer that, we have to ask another question, "Is JPMorgan really paying the fine?" The answer is no, the shareholders are paying for it, even though they didn't commit a crime or violate regulations. Some current investors weren't even shareholders at the time the alleged events took place. Two of three key players were indicted. Javier Martin-Artajo and Julien Grout have been charged with securities fraud, wire fraud, conspiracy, making false filings with the Securities and Exchange Commission and falsifying books and records. Not only is it appropriate for prosecutors to charge individuals, it's the direction prosecutors should take. The third person is Frenchman Bruno Iksil, better known as the "London Whale" because of his portfolio size. Iksil doesn't face sanctions or punishment for any wrongdoing, although he was Martin-Artajo and Grout's boss. Iksil avoided possible prosecution by entering into an immunity agreement in exchange for assisting prosecutors. Iksil may have had little or no involvement with any of the alleged criminal activity, but here's the problem with the SEC's shakedown (and that's what it truly is, a shakedown, of JPMorgan's shareholders). JPMorgan is allegedly paying a fine, in part, because "JPMorgan" didn't supervise the traders adequately. Wasn't that Iksil's job? If not, wasn't it someone else's responsibility to monitor the activity if regulations called for it? Whoever that person or people are, they should open up the checking account and write a check. In May, Goldman Sachs (GS) was fined $875,000 because a trader named Glenn Hadden violated a rule governing position size. Hidden paid a fine of $80,000 and was suspended from trading for 10 days. We don't know whether Hidden took a vacation during the suspension, but at the time of the suspension, he was working for Morgan Stanley (MS).

How is that equitable? Hadden is the one who supposedly violated a rule, and yet the supervisor's shareholders pay the largest fine, a fine that won't mean anything to anyone next year in terms of deterrence. Where is Hadden's supervisor in the story and why isn't that person opening up the checkbook?

The problem is (almost) everyone loves the current situation. The SEC loves headline-grabbing fines from companies, while the people who commit the violations often walk untouched. The only people who don't love this situation are the shareholders.

This type of punishment doesn't create much incentive for traders or their supervisors to exhibit self-control.

It's time for a re-examination of the system. At the time of publication, Weinstein had no positions in stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences. In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

Boeing Rings Out the Old C-17 and Rings in the New 777-9X

CHICAGO (TheStreet) -- Even as Lufthansa became the launch customer for Boeing's (BA) new 777-9X, the airplane maker also apparently was sealing the fate of the three-decades-old C-17 cargo aircraft.

Lufthansa said Thursday it would be the launch customer for 34 of the Boeing 777-9x, a new 400-seat plane that will be delivered around the end of the decade. Lufthansa's announced 59-jet order also will include 25 Airbus A350-900 jets. On Wednesday, Boeing said it would discontinue C-17 production and close its Long Beach plant in 2015, potentially idling 3,000 workers. [Read: US Airways/American Workers' Merger Blitz Is Unique, Expert Says]

Richard Aboulafia, a aviation consultant with the Teal Group, said that in sum the two announcements indicate that "the defense market is heading down and the civil aviation market is heading up."

He said both announcements indicate that Boeing continues to allow the market to determine what products it will produce, and he questioned whether C-17 production will actually end in 2015. The C-17 announcement, he said, is more an announcement to potential buyers that "this is the last chance" to order. "The Saudis are natural customers -- they haven't ordered any -- and the Indians could order another batch," Aboulafia said. Boeing has delivered 257 C-17s since 1991. The U.S. Air Force has been the primary customer, taking 223 of them; the other 34 have gone to six countries and to NATO's Strategic Airlift Capability initiative. Sterne Agee analyst Peter Arment wrote Thursday that Boeing has 22 C-17s left to build, "but only 13 are officially sold so we do expect new international orders for the final nine aircraft." UBS analyst David Strauss said the C-17 contributes about 30 cents a share in annual earnings. Boeing said it would take a charge of less than $100 million in the third quarter for the production halt. "Our customers around the world face very tough budget environments." said Dennis Muilenburg, CEO of Boeing Defense, Space & Security, in a prepared statement. "While the desire for the C-17's capabilities is high, budgets cannot support additional purchases in the timing required to keep the production line open. "What's more, here in the United States the sequestration situation has created significant planning difficulties for our customers and the entire aerospace industry," Muilenburg said. "Such uncertainty forces difficult decisions like this C-17 line closure." As for the Lufthansa order, Aboulafia said the 777-9X "has a very promising design and will be a huge seller." Once again, he said, "Boeing had to be dragged kicking and screaming to a launch decision" just as it was when American (AAMRQ) ordered the first 737 MAX in 2011 before final design was completed. He said Boeing "takes the most passive approach" to selling aircraft, letting airlines make key decisions on timing. [Read: 5 Stocks Under $10 Set to Soar] The philosophy worked, of course, when Boeing listened to its customers and designed the 787, a smaller, long-range aircraft, while Airbus designed the A380, a very large, long-range aircraft that has not sold nearly as well. Boeing said Thursday that the "the launch of the 777X family is targeted for later this year (with) entry into service around the end of the decade." The 777-9X will have around 400 seats. "With its new engines and an all-new composite wing design, the 777X will be the largest and most-efficient twin engine jet in the world with 20% lower fuel consumption and 15% lower operating costs than today's 777," said John Wojick, senior vice president of global sales, in a prepared statement. Boeing shares were up 97 cents to $119.37 in mid-morning trading on Thursday. Shares hit an all-time high of $120.38 earlier in the day. Follow @tedreednc -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed

Boeing Projects Surge in China’s Airplane Demand (BA)

The Boeing Company (BA) reported on Thursday that it is now predicting demand for 5,580 new airplanes in China over the next 20 years.

The company now sees China’s fleet tripling in the next 20 years and expects the country to purchase approximately $780 billion worth of aircrafts during that period. The increase in demand will be caused primarily by a rise in China and Asia based tourism.

The rise in tourism will likely grow demand for single aisle airplanes. The company expects the Next-Generation 737 and the new 737 MAX to improve current capabilities, fuel efficiency and maintenance costs.

Randy Tinseth, vice president of marketing for BA, commented: “Thanks to strong economic growth and increased access to air travel, we project China traffic to grow at nearly 7 percent each year.”

“China is a key market for Boeing. Our current and future products will allow our customers to meet the growing demand with the most efficient airplanes.”

Boeing shares were mostly flat during Thursday morning trading. The stock is up 41% YTD.

1 Oil Company Makes a Big Bet on American Natural Gas

Whenever you hear that a major oil company like Royal Dutch Shell (NYSE: RDS-A  ) is spending big on American natural gas, you probably assume that it means the company will be drilling for gas. That isn't the case here. Instead, Shell is looking at building a natural gas processing facility that would turn natural gas into synthetic gasoline and diesel. While some other countries have facilities like this up and running, this would be the first attempt at a gas-to-liquids facility on a commercial scale in the United States.

Will this facility be profitable in the States? Will it help turn Shell around after recent disappointing results? Tune in to the following video, where fool.com contributor Tyler Crowe answers these questions and looks at one big winner from these natural gas developments.

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