Pier 1 Imports Exports Guidance

Pier 1 Imports (NYSE: PIR  ) has cut full-year guidance for the second time in as many months. Like many other retailers, it blames the exceptionally severe winter weather for the reduced foot traffic that the company experienced this winter. Pier 1 was even forced to close some of its locations temporarily, which hurt the company's sales even further.

In this segment from Friday's Investor Beat, host Chris Hill and Motley Fool analyst Ron Gross discuss Pier 1, and the trend of retailers citing the weather for this quarter's troubles. They also talk about why the market gives some companies a pass with this excuse, but why it didn't let Pier 1 off the hook this time.

Now here are two retailers that are dominating the competition
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform, and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Why Starz (STRZA) Closed Friday Higher

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NEW YORK (TheStreet) -- Starz (STRZA) closed higher on Friday after reporting positive subscription growth and better-than-expected earnings over the fourth quarter.

By market close, shares had added 5.6% to $31.15.

The broadcasting network recorded quarterly net income of 62 cents a share, 17 cents higher than analysts surveyed by Thomson Reuters had expected. Net income jumped 42% from a year earlier to $73.34 million.

Boosting profits, the company reported sequential growth for its Starz service of 1% and year-over-year growth of 5% to end December at 22.2 million subscribers. Its Encore service showed flat growth to end at 34.9 million subscribers. Quarterly sales fell 2% to $414.7 million due to a lack of big releases in its distribution segment and fewer in-production projects in its animation segment. Total revenue missed consensus of $430 million. Must Read: Charter Communications Swings to a Profit in 4Q

Stock quotes in this article: STRZA 

Apple vs. Tesla Motors - Which Would You Rather Invest In?

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According to technology pundits, Apple (NASDAQ: AAPL) is either one major product launch away from reclaiming its title as the world’s most important consumer technology company, or the company is hopelessly floundering without the leadership of the late Steve Jobs.

Apple has been notably silent in recent years as far as revolutionary product launches go, a fact that has left many technology experts scratching their heads. It seems everyone’s latest pastime is guessing what the Cupertino-based company will do next. Speculation has ranged from the company gearing up to release wearable technology, such as a watch, to the company investigating getting into the medical technology business.

One of the most interesting points of speculation is that Apple is considering taking over Tesla Motors (NASDAQ: TSLA), makers of the hottest electric cars in America. Let's take a look at how both companies comparatively performed in 2013 and into 2014.

Related: Disney vs. 21st Century Fox - Which Stock Entertains You More In 2014?

Apple stock opened 2013 at $553.82. The stock had been on a significant downswing at the time, a slide that continued for practically the entire year. Apple traded in negative territory for the better part of 2013, and even dipped down below $400 in April and June before pulling back closer to the stock’s 2013 opening price. It wasn’t until late November that Apple finally pulled into positive territory for the year.

By the end of December, Apple traded back to almost exactly where it had begun the year, and closed at $561.02 for a negligible yearly gain. Going into 2014, Apple stock dipped under $500 in late January, before bumping up close to $550 in most recent trading.

Tesla Motors began 2013 trading at $35.00. The company’s stock was able to move steadily higher throughout much of the year, until it began to pull back in the fall and reaching $194.50 per share on September 30, an amazing rise of over 400 percent for 2013. When the company finally began to drop, due to pressure from negative news stories related to the company’s batteries catching fire, investors had already locked in monumental returns. However, Tesla was able to stop the slide of its stock value and finish the year at $150.

2014 saw more good fortune for Tesla, as the company’s stock continued to gain value and shot past its 2013 yearly highs in mid-February.

Apple has struggled in recent years. The company that was touted as one of the most likely to cross the $1,000 per share threshold just a few short years ago is now struggling to maintain half that price. Many analysts fault a lack for innovative product launches for Apple’s lack of stock value growth. As has happened so many times in the past, the Wall Street rumor mill has begun to churn with talk of a mega merger – this time between Apple and Tesla. Only time will tell if the rumors prove true.

In the meantime, it looks like Tesla is the better bet from a stock value growth perspective.

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(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The Liquidmetal Technologies Pendulum is Swinging the Other Way Now (LQMT)

While it may be melodramatic to say my following of Liquidmetal Technologies Inc. (OTCBB:LQMT) has been something of a 'saga', it wouldn't be unfair to say it's one of those small cap stocks that's had its fair share of twists and turns. Yours truly turned explicitly bullish on LQMT back on November 22nd, after the stock broke above a key falling resistance lines. Then, on January 14th, I made a point of saying the rally had run its course, and it was time to lock in your 47% gain on Liquidmetal Technologies and walk away... at least for a while.

So why look at it again now? Well, in simplest terms, that 'while' is up. It's time to wade back in, as this is once again one of the market's better-looking small cap stocks.

In retrospect, the decision to shed LQMT in mid-January was premature. The stock closed at 23 cents that day, but ended up hitting a high of 40 cents a week and a half later. Ouch. On the other hand, it would have taken unlikely precision to get out of Liquidmetal Technologies at that maximum profit, because it didn't last more than a few minutes. In fact, the bulls ended up turning tail and running the next day, kick-starting a move all the way back to a low of 18 cents in the middle of last week.... which is why it's worth revisiting now.

In the same sense that the January 27th peak was a one-day wonder, the February 12th plunge may have exhausted all the potential selling, setting up a trade-worthy bullish swing. And sure enough, the bullish floodgates were opened two trading days later, confirming the tide had turned. Specifically, on Friday of last week, LQMT popped in a big way, and did so on the highest volume we've seen in months. That's a huge and not-often seen clue within the world of small cap stocks.

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It's also constructive that Liquidmetal made the reversal effort right at the key 100-day moving average line (gray), and very near the 20 cent-mark, which was a key ceiling back in November; ceilings have a way of becoming floors later on, and vice versa.

 

Bottom line? The bulls ARE interested again. Of this there can be no doubt. Given the chart's history, now that the bulls are interested again - perhaps more so than they've been in years - this new rally should get lots of traction.

Yes, Liquidmetal Technologies shares have peeled back from their high today, but that could have been expected after the bullish opening gap. In fact, it may be a good thing, in that the quick pullback burned off any overbought pressure before it had time to build up... one of the key headaches small cap stocks are known for.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

General Motors’ Sales Shocker: How Bad Was It Really?

Bad enough to create a buying opportunity in General Motors’ (GM) stock, says RBC Capital Markets Joseph Spak.

Bloomberg

Spak explains why he still likes General Motors despite last Friday’s disappointing December sales announcement:

GM sales disappointing but not thesis changing – take advantage of sell-off. While GM sales of -6% y/y were shy of Street expectations calling for +1.5% y/y growth, we wouldn’t read too much into one month of sales. Further, we believe GM did a better job holding the line on incentive spending in the month which means more profitable sales. To wit, GM average incentive/unit was up +4% y/y, below the industry increase of +7% y/y and well below Ford (F) at 24% y/y, Toyota (TM) at +8% y/y, Honda (HMC) at +17% y/y and Nissan (NSANY) at +13% y/y. For 4Q13, GM US sales were +6% y/y, which is above our NA wholesale forecast of +4% y/y. Yes, there are some adjustments when comparing monthly sales to wholesale units, but we believe, net, our volume assumptions are ok. On the other hand, we have increased confidence in our 4Q13 NA price factor.

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Shares of General Motors have gained 1.1% to $40 today at 1:39 a.m., while Ford Motor has risen 0.3% to $15.56, Honda Motor has advanced 0.3% to $40.81, Nissan Motor has jumped 3% to $17.19 and Toyota Motor has slid 0.2% to $120.26.

AIG profit can’t stop share slide

Insurance giant AIG Inc. swung to a profit, but it wasn't enough to win over investors.

The company's shares were down Friday, breaking from the better fortunes of rivals whose shares have risen steadily this week.

Bloomberg Enlarge Image

American International Group (AIG)  said late Thursday that it swung to a profit in the fourth quarter, and it announced plans to raise its dividend and buy back more of its own shares. But analysts were concerned about weakness in the property and casualty line, where the bank needs to cut costs if it wants to get consistent underwriting profits, said Sandler O'Neill analyst Paul Newsome. With no major catastrophes, like last year's superstorm Sandy, analysts had expected more improvement in the unit's "severe losses," said Evercore analyst Mark Finkelstein.

AIG shares fell as much as 3% Friday. They were down 64 cents, or 1.3% to $48.95 in the afternoon.

Marsh & McLennan Cos Inc. (MMC) and MetLife Inc. (MET) have been rising since those companies reported earnings earlier this week.

Nationstar Mortgage Holdings Inc. (NSM) was down nearly 2%. The mortgage servicer had jumped 5% Wednesday. It told investors then that it expected a fourth-quarter loss from one-time charges, but reaffirmed its full-year earnings predictions, said Jefferies analyst Daniel Furtado.

Companies like Nationstar have grown tremendously in recent years by buying the rights to service mortgages from big banks. Ben Chittenden, an analyst at Oppenheimer & Co., estimates that Nationstar, Ocwen Financial Corp. (OCN) and Walter Investment Management (WAC) have grown their combined servicing books from $141 billion in the first quarter of 2011 to $1 trillion in the third quarter of 2013.

But there are concerns that the rapid growth is about to peter out, because the banks decide to stop selling or because regulators put the kibosh on the deals, Chittenden said. The Wall Street Journal broke the news last week that New York financial regulators had blocked an agreement where Ocwen planned to buy the rights to service $39 billion of loans from Wells Fargo & Co. (WFC) The state's Department of Financial Services has reportedly been investigating Ocwen over alleged abusive behavior toward homeowners, the Journal said.

The bearish argument on the mortgage servicers, Chittenden wrote recently, "seems to be the prevailing viewpoint."

Nationstar was down 52 cents to $29.16.

Bond insurer MBIA Inc. (MBI)  was down, giving up some of its gains from the day before. The stock leapt more than 5% Thursday after the Journal reported that MBIA would settle a legal dispute with Nomura Holdings Inc., allowing it to put to rest another chunk of legal exposure related to soured mortgage-backed securities.

MBIA slipped 8 cents, or 0.6%, to $12.59.

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Anonymous Critic Urges Judge to 'Kill' SAC Plea Deal

At least one person isn't happy about the pending insider trading settlement between the government and SAC Capital Advisors LP and isn't afraid to make that known — anonymously.

In an anonymous email to U.S. District Judge Laura Taylor Swain, who is presiding over the criminal portion of SAC's settlement, the critic had harsh words for the Justice Department and SAC’s billionaire founder Steven A. Cohen.

"LTS, you must be tough like [Judge] Rakoff, kill the plea deal now that SAC trader Mathew Martoma is convicted to force DoJ to put Steve Cohen behind bars," the person wrote. "His billions were made by insider trading and stolen from investors."

Mr. Martoma, a former SAC portfolio manager, was convicted of insider trading earlier this month in Manhattan federal court and was among the six employees whose actions SAC accepted responsibility for in a November plea deal.

Mr. Cohen has not been accused of criminal wrongdoing. A spokesman for Mr. Cohen and SAC did not immediately respond to a request for comment.

A spokeswoman for the Manhattan U.S. Attorney’s office, which is handling the matter, declined to comment.

The hedge-fund giant pleaded guilty to insider trading in November and now Judge Swain is weighing whether to approve a $900 million criminal penalty. That amount is part of a landmark $1.8 billion settlement, which also includes a $900 million civil forfeiture reduced to $284 million, because of funds SAC had already paid to the Securities and Exchange Commission. Another judge approved the civil portion in November.

The email, which Judge Swain put on the docket Thursday, gave no indication of the sender's identity. Judge Swain is set to rule on the criminal portion of the hedge fund’s settlement in a hearing in Manhattan federal court next month.

There is still some risk that the deal could collapse. Judge Swain’s only option is to give the settlement a thumbs-up or a thumbs-down. If she rejects the deal, SAC Capital is free to withdraw its guilty plea, the result of a unique clause in the settlement terms.

Judge Swain, known as a careful and deliberate jurist, said during SAC's November plea hearing she wanted to take time to review the agreement and a report to be filed by the federal probation office, among other things, before making a decision. A clerk for Judge Swain declined to comment Friday.

This unidentified emailer invoked the name of another Manhattan federal Judge, Jed Rakoff, who has a penchant for intervening in corporate settlements. In 2011, Judge Rakoff blocked a $285 million civil settlement between the SEC and Citigroup, in part because he objected to a decades-old practice by the SEC in which Citigroup was allowed to neither admit nor deny wrongdoing as part of the deal.

The U.S. Court of Appeals for the Second Circuit subsequently questioned whether Rakoff had the authority to do so and the matter is pending.

4 Stocks Breaking Out on Big Volume

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

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

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

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

Criteo

Criteo (CRTO), together with its subsidiaries, operates as a technology company that enables e-commerce companies to leverage large volumes of granular data to engage and convert their customers. This stock closed up 4.4% at $38.76 in Wednesday's trading session.

Wednesday's Volume: 620,000

Three-Month Average Volume: 186,518

Volume % Change: 358%

From a technical perspective, CRTO spiked sharply higher here with strong upside volume. This move briefly pushed shares of CRTO into breakout territory, since the stock flirted with or took out some near-term overhead resistance levels at $37.65 to $38.95. Shares of CRTO closed just below that second breakout level of $38.95 to finish the trading session at $38.76. Market players should now look for a continuation move higher in the short-term if CRTO manages to take out Wednesday's high of $40.57 with high volume.

Traders should now look for long-biased trades in CRTO as long as it's trending above Wednesday's low of $38.14 or above $37 and then once it sustains a move or close above $40.57 with volume that's near or above 186,518 shares. If we get that move soon, then CRTO will set up to re-test or possibly take out its all-time high at $45.

PTC

PTC (PTC) engages in the development, marketing and support of product lifecycle management software solutions and related services worldwide. This stock closed up 2.3% at $37.34 in Wednesday's trading session.

Wednesday's Volume: 1.70 million

Three-Month Average Volume: 715,954

Volume % Change: 132%

From a technical perspective, PTC ripped higher here and broke out above some near-term overhead resistance at $36.79 with strong upside volume. This move is quickly pushing shares of PTC within range of triggering an even bigger breakout trade. That trade will hit if PTC manages to take out Wednesday's high of $37.51 to its 52-week high at $38.50 with high volume.

Traders should now look for long-biased trades in PTC as long as it's trending above $36 to $35 or it 50-day at $34.43 and then once it sustains a move or close above those breakout levels with volume that's near or above 715,954 shares. If that breakout hits soon, then PTC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Cutera

Cutera (CUTR) is engaged in the design, development, manufacture, marketing and servicing of laser and light-based aesthetics systems for practitioners worldwide. This stock closed up 8.5% at $10 in Wednesday's trading session.

Wednesday's Volume: 421,000

Three-Month Average Volume: 75,071

Volume % Change: 537%

From a technical perspective, CUTR ripped sharply higher here right off its 50-day moving average of $9.52 with heavy upside volume. This move pushed shares of CUTR into breakout territory, since the stock took out some near-term overhead resistance at $9.77. Shares of CUTR are now starting to trend within range of triggering an even bigger breakout trade. That trade will hit if CUTR manages to take out Wednesday's high of $10.19 to some more key overhead resistance levels at $10.43 to $10.61 with high volume.

Traders should now look for long-biased trades in CUTR as long as it's trending above its 50-day at $9.52 and then once it sustains a move or close above those breakout levels with volume that's near or above 75,071 shares. If that breakout hits soon, then CUTR will set up to re-test or possibly take out its next major overhead resistance levels at $12.19 to $13.

Ironwood Pharmaceuticals

Ironwood Pharmaceuticals (IRWD), is a pharmaceutical company, which discovers, develops and intends to commercialize differentiated medicines. This stock closed up 4.2% at $13.61 in Wednesday's trading session.

Wednesday's Volume: 3.02 million

Three-Month Average Volume: 1.01 million

Volume % Change: 250%

From a technical perspective, IRWD jumped sharply higher here right above its 50-day moving average of $12.33 with above-average volume. This spike is starting to push shares of IRWD within range of triggering a major breakout trade. That trade will hit if IRWD manages to take out Wednesday's high of $13.75 and then once it clears more near-term overhead resistance levels $14.57 to $15.05 with high volume.

Traders should now look for long-biased trades in IRWD as long as it's trending above $13 or above its 50-day at $12.33 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.01 million shares. If that breakout hits soon, then IRWD will set up to re-test or possibly take out its next major overhead resistance levels at $16 to $18, or even its 52-week high at $19.67.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Big Stocks on Traders' Radars

>>5 Oversold Stocks Ready to Rebound

>>3 Stocks Under $10 Making Big Moves

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

OXiGENE Has Wiggled Its Way Into an Uptrend (OXGN)

There's no denying that OXiGENE Inc. (NASDAQ:OXGN) has, if nothing else, an interesting pipeline. And for many investors, the prospect of one or two budding winners in development is more than enough reason to jump into a biotech stock. In the case of OXGN, however, there's a far more direct - and no less speculative - reason to become a shareholder. That reason? The stock's going higher.... seriously.

If the name rings a bell, it may be because OXiGENE is the outfit developing Zybrestat and a Phase 1 drug called OXi4503. The bulk of the ailments both drugs are taking aim at are some form of cancer, targeting the disease through vascular disruption. That's a ten-dollar term for a process that specifically restricts the blood flow from tumor cells, cutting off the oxygen and nutrients that are required of any cell to continue living. The drug works well enough against thyroid cancer to be allowed into Phase 3 trials, with a handful of other cancers in Phase 2 trials with Zybrestat. And to call a spade a spade, it's progress on the drug-development front that's put some bullish pressure on OXGN over the last several weeks. In fact, the stock's progress has been so solid lately that it has become the compelling part of the story here. See, the recent bullishness has hammered out some huge technical bullish clues.

The weekly chart of OXGN really puts things in perspective. Though you can't see it on the chart, this stock has been in trouble since 2010. What you can see on the chart is from where the 200-day moving average line (green) was coming from as it enters the char on the left side in early 2012; this stock was valued around $300 in early 2010, and was trading in the $1400 area in 2005 (pre-split pricing). Point being, this stock has been beaten down pretty severely... until the last few months. Beginning in September, things changed. That's when the stock started to make higher lows, and started to move above its key moving average line for the first time in years. In fact, it's moved above those lines in three separate waves now, with the current strength being the third one. As they say, though, the third time is the charm. Given the progress we've seen thus far, odds are good that this time, OXiGENE are going to keep rolling.

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It's not just a weekly chart that has a lot of bullish implications, however. The daily chart of OXGN tells the same story.

Ever heard that periods of low volatility (for the market, and for stocks) are followed by periods of high volatility, and vice versa? Well, up until September of last year, OXiGENE Inc. was in a volatility phase... a bearish one. In September, that volatility was reeled in, and shares of OXGN entered a low volatility phase, stuck between a mildly rising support line and a mildly falling resistance line. It's a lot of up and down, but on a net basis, there was no progress - a period of low volatility. As evidence of that reality, notice how all the short-term moving averages have converged with all the longer-term moving averages line all right around $2.70. We haven't seen this kind of convergence in years.

You know what that means? It's time for a volatility to ramp up again, only this time, the budding undertow says that volatility is going to be bullish.

Bottom line: Sometimes you have to just trust what the chart is telling you. Time to wade into OXiGENE Inc.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Holy Cow, GMO’s Grantham Likes Tesla!

GMO’s Jeremy Grantham, not usually noted for his bullishness, is effusive in his praise of Tesla (TSLA), the car, and hints at the possibility of a bright future for Tesla, the company. He writes:

Reuters

I recently took a drive in a GMO colleague's Tesla from New York to Boston. Now, I am about as far from a car freak as you will easily find. I just turned in a 12-year-old Volvo that unfortunately had been sideswiped, for otherwise it was good for years more. But I have to say that my recent Tesla journey was my #1 car experience ever. Three years ago I test drove a Tesla in Boston and it was a tinny, rattly, super-expensive toy. Its battery alone cost $50,000! Last month, its chief engineers suggested its cost today is $22,000. In three years they and other experts are confident that the battery will be less than $15,000 and probably its weight will have fallen also….at $10,000 to $15,000 per battery in three years plus some economies of scale, there will probably be a $40,000 vehicle that even die-hard cheapskates like me will have to buy. (Our stopgap Jetta diesel, which gets an honest 41 miles to the gallon, was $24,000.) One can easily see that in 10 years there could be a new world order in cars…

(Full disclosure: I regrettably have owned no shares in Tesla.)

Grantham’s ruminations on Tesla came in the context of whether we are witnessing the end of fossil fuels. His answer: Yes. Tesla, it should be noted, isn’t the only company developing gasoline-free vehicles. Toyota Motor (TM), for one, should introduce its hydrogen-fuel-cell powered vehicle this year. But wait, there’s more. Grantham continues:

In short, with slower global economic growth, more fuel-efficient gasoline and diesel vehicles, more hybrids, cheaper electric cars, more natural gas vehicles, and possibly new technologies using fuel cells and, conceivably, methanol, it is certain that oil demand from developed countries will decline, probably faster than expected. Some emerging countries, notably China, are likely to take more dramatic and faster steps to reduce demand than we have ever thought about. Already they have 200 million electric vehicles – mostly motorbikes – almost as many as the rest of the world squared. Total global oil demand at current prices or higher is likely to peak in 10 years or so. At much lower prices we would fairly quickly lose most of our high-cost production: deep offshore, fracking, and tar sands. Times may be changing faster than we think. My guess is that oil prices will be higher than now in 10 years, but after that, who knows? The idea of "peak oil demand" as opposed to peak oil supply has gone, in my opinion, from being a joke to an idea worth beginning to think about in a single year. Some changes seem to be always around the corner and then at long last they move faster than you expected and you are caught flat-footed.

If Grantham is right the Toyota Motor and Tesla have a nice head start on companies like Ford Motor (F) and General Motors (GM).

Shares of Tesla have gained 2.6% to $178.89 at 3:39 p.m., while Toyota Motor has risen 0.2% to $115.92, Ford Motor has advanced 0.5% to $14.80 and General Motors is up 0.3% to $35.33 despite missing earnings forecasts.

What Will Time Warner Do Post-Earnings?

With shares of Time Warner (NYSE:TWX) trading around $63, is TWX an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Time Warner is a media and entertainment company. The company operates in three reporting segments: Networks, Film, and TV Entertainment and Publishing. Networks consist of television networks, premium pay, basic-tier television services, and digital media properties. Film and TV Entertainment consists of feature film, television, home video, and video game production and distribution, while Publishing consists of magazine publishing. Through its segments, Time Warner is able to move audiences around the world. With such a large and growing audience, look for Time Warner to continue to drive profits through its media and entertainment.

Time Warner today reported financial results for its fourth-quarter and full-year ended December 31, 2013. Chair and Chief Executive Officer Jeff Bewkes said that, "We had another very successful year in 2013, with Turner, Home Box Office and Warner Bros. all posting record profits while also investing for future growth. We grew Adjusted Operating Income by 8 percent and Adjusted EPS by 16 percent — our fifth consecutive year of double-digit Adjusted EPS growth.”

T = Technicals on the Stock Chart Are Mixed

Time Warner stock has been moving higher over the last couple of years. However, the stock is currently trading sideways and may need time to stabilize. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Time Warner is trading below its rising key averages which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Time Warner options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Time Warner options	25.19%	70%	68%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
March Options	Steep	Average
April Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Time Warner’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Time Warner look like and more importantly, how did the markets like these numbers?

	2013 Q4	2013 Q3	2013 Q2	2013 Q1
Earnings Growth (Y-O-Y)	-7.63%	50.00%	92.86%	27.12%
Revenue Growth (Y-O-Y)	4.91%	0.20%	10.25%	-0.57%
Earnings Reaction	0.87%*	-0.79%	-0.37%	-0.50%

Time Warner has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Time Warner’s recent earnings announcements.

* As of this writing

P = Average Relative Performance Versus Peers and Sector

How has Time Warner stock done relative to its peers, News Corp (NASDAQ:NWS), Walt Disney (NYSE:DIS), Comcast (NASDAQ:CMCSA), and sector?

	Time Warner	News Corp	Walt Disney	Comcast	Sector
Year-to-Date Return	-9.62%	-13.70%	-6.61%	2.80%	-3.47%

Time Warner has been an average relative performer, year-to-date.

Conclusion

Time Warner provides media and entertainment through a variety of mediums to consumers and businesses all around the world. The company today reported financial results for its fourth-quarter and full year ended December 31, 2013. The stock has been moving higher, but is currently trading sideways. Earnings and revenue figures have been increasing over the last four quarters, which has kept investors happy. Relative to its strong peers and sector, Time Warner has been an average year-to-date performer. WAIT AND SEE what Time Warner does this upcoming quarter.

Consumer Spending Rises Despite Stagnant Wages

Julio Cortez/AP WASHINGTON -- U.S. consumers increased their spending in October even though their wages and salaries barely increased, raising questions about how strong the economy will grow at the end of the year. Consumer spending increased 0.3 percent in October compared with September when spending rose 0.2 percent, the Commerce Department reported Friday. Wages and salaries rose a slight 0.1 percent after a much stronger 1 percent rise in September. Overall income actually fell 0.1 percent following a 0.5 percent rise in September. But September's gain was inflated by a legal settlement that boosted farm income that month, leading to a big decline in farm income in October. The personal saving rate dipped to 4.8 percent of after-tax income in October, down from 5.2 percent in September, reflecting the difference between spending and income. The rise in spending reflected gains in purchases of long-lasting manufactured goods such as autos and gains in spending on non-durable goods such as clothing and services such as rent and utilities. It meant a solid increase for the first month of the current quarter. Consumer spending is closely watched because it accounts for 70 percent of economic activity. The economy grew at a 3.6 percent annual rate from July through September, the fastest since early 2012, but nearly half the growth came from a buildup in business stockpiles, a trend that could reverse in the current quarter and hold back growth. When excluding inventories, the economy grew at a 1.9 percent rate in the third quarter, down from 2.1 percent in the spring. That's in line with the same subpar rate that the economy has seen since the Great Recession ended four years ago. Many economists believe overall economic growth will dip below 2 percent in the current October-December quarter, in part because a slowdown in inventory building will act as a drag on activity. But there have been some signs of strength including a separate report Friday showing that the unemployment rate dropped to a five-year low of 7 percent in November as the economy created 203,000 jobs. In the third-quarter, consumers increased their spending at a tepid 1.4 percent annual rate. That was the slowest since the final quarter of 2009, a few months after the recession officially ended. But the spending activity in the third quarter was held back by flat spending on services. That may have reflected an unusually mild summer, which cut demand for air conditioning. One hopeful sign: Consumers spent on goods at the fastest rate since early 2012. An inflation gauge closely watched by the Federal Reserve showed prices were flat in October and have risen just 0.7 percent over the past 12 months, well below the Fed's 2 percent target for inflation.

Satya Nadella as Microsoft CEO? That’s Just What MSFT Stock Needs

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Microsoft (MSFT) is poised to make the safe choice in naming a new Microsoft CEO, according to reports, and as boring and predictable as that may be, it very well could be the best thing for Microsoft and MSFT stock.

Reports out of Redmond, Wash., have the company naming Satya Nadella as Microsoft CEO as early as next week. That will be a disappointment to holders of MSFT stock who were clamoring for a superstar from outside the company to shake things up and lead a revolution.

After all, plenty of restive shareholders wanted the new Microsoft CEO to be someone like Alan Mulally, who is credited with working miracles first at Boeing (BA), and now at Ford (F).

But Mulally didn’t want to move. And in fact, it’s not clear that MSFT even wanted him in the first place.

Plus, the list of potential superstar CEOs is short, especially considering the needs of a place as vast and highly complex and steeped in technology as Microsoft.

Let’s face it: Even if Microsoft nabbed the most exciting candidate on the planet — and MSFT stock shot up on the news — transforming this company into something nimble that could win in the consumer space probably wasn’t going to happen anyway. That’s just not something that’s in the cards for any company with a market cap of more than $300 billion.

That’s why making Satya Nadella the new Microsoft CEO is the safest bet for MSFT stock over the long haul. It’s a long-overdue acknowledgment that MSFT is an enterprise company first and foremost … not a consumer company. MSFT is so far behind on what it takes to compete in consumer these days — be it tablets, social, mobile — that it’s never going to catch up.

Heck, as much money and energy as it has thrown at everything from search to tablets over the years, Microsoft has never come close to being relevant in those fields — much less profitable.

MSFT Stock: An Enterprise Play

Investors should take comfort in Satya Nadella as Microsoft CEO. He oversees one of Microsoft’s best-performing units by far: the server software and back-end technology business for corporate customers. He’s also in charge of cloud operations — a new and growing area in tech where MSFT still could have a chance. Microsoft’s sales of cloud services actually more than doubled in the most recent quarter.

Meanwhile, PC sales are a melting iceberg, and nothing is going to change that. MSFT stock is never going to get a boost from the tablets that are replacing PCs, because even if it had the best hardware and software, the market has already gone to Apple (AAPL) and anyone running Google’s (GOOG) Android operating system.

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Most importantly, enterprise sales already account for two-thirds of Microsoft’s revenue. By appointing Satya Nadella as Microsoft CEO, the company is only formally acknowledging the facts on the ground. MSFT’s future lies with corporate customers, not consumers.

Bottom Line

The first step toward solving a problem is to admit that you have one. That’s why this choice as CEO would be the best thing for MSFT stock. No, Microsoft isn’t going to grab onto any of the hot-growth consumer markets this way — but it wasn’t going to, anyway.

If the new Microsoft CEO embraces what the company is good at — that is, enterprise — both Microsoft and the market can come to an understanding of just what MSFT represents.

Boring, incremental growth can be plenty remunerative. Throw in buckets of cash flow, some share buybacks and a generous (and rising) dividend, and MSFT stock would have a change at being a steady, long-term outperformer.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.