To compete with robo-advisers, Nally proposes charging clients for all services

The man who leads the TD Ameritrade Inc. division serving registered investment advisers is pitching a new way for those firms to get paid as they stare down increasing competition from the online portfolio managers called robo-advisers.

Thomas Nally, president of TD Ameritrade Institutional, said firms should consider replacing the widely used fee based on assets under management with one based on total wealth under advisement.

“Don’t charge on just that one little slice of the pie. Why don’t we charge a lower basis point number on total wealth that you’re advising on so you can have the same number as some of these robo-advisers, but provide much more services?” said Mr. Nally.

According to the proposal, if an adviser provides tax or estate strategies associated with a home or business, for instance, they would assess a total fee that was linked to those assets, in addition to the client’s securities portfolio. By accounting for the wider array of assets covered, the overall fee could be lowered — making it competitive with the low headline figure advertised by online advisory firms, Mr. Nally said.

Mr. Nally’s remarks to a set of his firm’s top advisers Monday and in an interview with InvestmentNews Wednesday, reinvigorated discussion of alternative fee structures for financial advisers, a topic of years of discussion and consternation.

Some advisers see fees linked to assets under management as devaluing aspects of their service offerings beyond securities and investment manager selection, such as estate and tax planning. Others see the fee as an easy way to be rewarded for investment decisions that benefit clients and to participate, alongside those clients, in the upside of a rising market, such as the one enjoyed by U.S. stocks since 2009.

Figures on the number of advisers using fees for engagement or other alternative fee models are hard to come by. But anecdotally, the use of such models is marginal. That’s despite the advocacy of people like Sheryl Garrett, a fiduciary advocate who recommends hourly fees for advisers in her namesake network.

At the same time, in their move to transition to fee-based business and more planning-centric relationships, wir

Frequent Flyer Smiles: It's Easier to Redeem Miles

Getty Images @Lebeaucarnews Here's something those trying to cash in on frequent flyer miles or points seldom hear: It's now easier to book the flight you want to the destination you want. The annual Switchfly Reward Seat Availability Survey, which gauges the frequent flyer programs at 25 of the world's largest airlines, found seats were available for frequent flyer redemption on 72.4 percent of the flights checked. That's a 1.3 percent increase compared with the prior year. "I was surprised by this year's results," said Jay Sorensen, president of IdeaWorks consulting firm, which surveyed 7,640 flights in March. "Typically, when you see the industry recovering from financial duress, one of the things they cut back on is giving away free seats." Instead, many airlines have actually made frequent flyer seats available on more of their flights. Sorensen credits the boost to the independent credit cards many flyers now use to rack up award miles that they can redeem without restrictions. Those credit cards, like the one offered by Capitol One, have become popular with consumers, and have forced airlines to make it easier for members of their own frequent flyer programs to cash in miles or points in order to compete. "[The airlines] want to compete against the bank-issued credit cards, so this is one way for them to do that," Sorensen said. Another factor is an accounting rule that says airlines can book revenue from the sale of frequent flyer miles only after the passenger has traveled. Low-cost carriers offer the most options As has been the case in past years, low-cost carriers have the most flights offering seats for frequent flyer redemption, according to the study. On average, 95.8 percent of the low-cost airline flights surveyed had seats available. By comparison, traditional airlines had frequent flyer award seats on 65 percent of their flights. That's up 4 percent from last year, but still well below the availability offered by low-cost airlines. Airlines with the most flights with seats open for redemption

Rank	Airline	% of flights with seats open
1	Air Berlin	100
1	Southwest	100
2	Virgin Australia	99.3
3	JetBlue	92.9
4	AirAsia	92.1
5	GOL	90.7

Credit: IdeaWorks "The low-cost carriers tend to have a lot of frequency into the markets they serve, so they do have an inherent advantage," Sorensen said. The frequent flyer programs offered by airlines such as Southwest (LUV) and JetBlue (JBLU) are also younger than the programs at older, legacy carriers. As those airlines have merged and become bigger over the years, so have the number of members in their loyalty programs. That means there are more miles in those programs than in the programs offered by competitors. Among the largest airlines in the world, Delta (DAL) and United (UAL) flew in different directions in the latest report. Delta, which finished dead last in the 2013 survey, moved up to 16th place. IdeaWorks found frequent flyer seats available on 55 percent of the Delta flights it surveyed, an increase of 18.6 percent compared with last year. "I think Delta finally got around to looking at the health of their frequent flyer product and said, 'You know, we need to make some changes here,'" Sorensen said. By comparison, United Airlines slipped to 14th place in the survey. IdeaWorks found frequent flyer seats available on 71.4 percent of flights, down 8.6 percent.

Advice on Financial Independence From Around the Web

Oh, to be financially independent. The thought of having enough money that you don't need to work sounds great, right? But if you're counting on winning lottery ticket to help you achieve the good life, you might want to reconsider your approach (see 5 Better Investments Than the Lottery). Instead, consider the advice of J.D. Roth, who founded the Get Rich Slowly blog in 2006 when he was deep in debt but managed to achieve financial independence with what he calls a "three-pronged attack." See J.D.'s one-page guide to financial independence to see how he saved enough to support himself without working. And for more advice on increasing your income to gain more independence, here's what some of our favorite personal finance bloggers are saying:

SEE ALSO: Knight Kiplinger's 8 Keys to Financial Security

10 Dumb Habits That Are Keeping You From Earning More Money [Wise Bread]
"There are plenty of worlds created by others that we spend time in that rob us of our ability to produce and ultimately increase wealth."

5 Ways to Recession-Proof Your Life [Money Under 30]
"Do you have a plan in the event you lose your job? If not, this is required reading."

5 Investing Basics That Can Make You Rich [Wise Bread]
"So you want to become a better investor, build more wealth, and gain financial freedom? Great! Where do you begin?"

Financial Advice for Modern-Day Cinderellas [Alpha Consumer]
"If we're teaching women that we need somebody else to rescue us, emotionally or financially, then we're all headed for disaster."

'Getting Rich' Is a Code Word [The Simple Dollar]
"Don't let the emotional impact of your dreams (and how 'getting rich' can make them happen) get in the way of making smart decisions."

News Flash: A High Income Can't Guarantee Financial Freedom [Len Penzo dot Com]
"Those who are unable -- or unwilling -- to spend less than they earn are, by default, incapable of ever being financially free."

4 Stocks Spiking on Big Volume

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

>>5 Stocks Set to Soar on Bullish Earnings

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

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

>>5 Rocket Stocks Worth Buying This Week

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

Mentor Graphics

Mentor Graphics (MENT) supplies electronic design automation systems. This stock closed up 5.2% at $23.64 in Monday's trading session.

Monday's Volume: 1.78 million

Three-Month Average Volume: 554,255

Volume % Change: 224%

From a technical perspective, MENT ripped sharply higher here right above its 50-day moving average of $22.27 with strong upside volume. This move pushed shares of MENT into breakout territory, since the stock took out some near-term overhead resistance levels at $22.82 to $22.92. Shares of MENT also flirted with a new 52-week high on Monday, after the stock challenged its previous 52-week high at $23.72. Market players should now look for a continuation move higher for MENT in the short-term if this stock manages to take out its new 52-week high at $23.88 with high volume.

Traders should now look for long-biased trades in MENT as long as it's trending above $23 or above Monday's low of $22.48, and then once it sustains a move or close above $23.88 with volume that's near or above 554,255 shares. If we get that move soon, then MENT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $26 to $30.

Gentex

Gentex (GNTX) designs, develops, manufactures and markets proprietary electro-optic products, including automatic-dimming rearview mirrors for the automotive industry and fire protection products mainly for the commercial building industry. This stock closed up 5.1% at $32.29 in Monday's trading session.

Monday's Volume: 2.32 million

Three-Month Average Volume: 1.07 million

Volume % Change: 155%

From a technical perspective, GNTX spiked sharply higher here and broke out into new 52-week-high territory with above-average volume. This stock has been uptrending strong for the last four months and change, with shares moving higher from its low of $21.18 to its intraday high of $32.59. During that move, shares of GNTX have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if GNTX can manage to clear its new 52-week high at $32.59 with strong volume.

Traders should now look for long-biased trades in GNTX as long as it's trending above Monday's low of $30.95 or above $30 and then once it sustains a move or close above $32.59 with volume that's near or above 1.07 million shares. If we get that move soon, then GNTX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $37.

Bind Therapeutics

Bind Therapeutics (BIND) develops various targeted and programmable therapeutics. This stock closed up 4.4% at $13.47 in Monday's trading session.

Monday's Volume: 307,000

Three-Month Average Volume: 153,197

Volume % Change: 195%

From a technical perspective, BIND spiked sharply higher here and broke out above some near-term overhead resistance at $13.33 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $8.36 to its intraday high of $13.66. During that uptrend, shares of BIND have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if BIND can manage to take out Monday's high of $13.66 with strong volume.

Traders should now look for long-biased trades in BIND as long as it's trending above Monday's low of $12.94 or above its 50-day at $12.12, and then once it sustains a move or close above $13.66 with volume that's near or above 153,197 shares. If we get that move soon, then BIND will set up to re-test or possibly take out its next major overhead resistance levels at $15 to its all-time high at $15.89. Any high-volume move above those levels will then give BIND a chance to tag $17 to $20.

Valeant Pharmaceuticals

Valeant Pharmaceuticals (VRX) is a specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. This stock closed up 3.8% at $110.92 in Monday's trading session.

Monday's Volume: 2.01 million

Three-Month Average Volume: 1.12 million

Volume % Change: 84%

From a technical perspective, VRX spiked sharply higher here right above some near-term support at $105.17 and back above its 50-day moving average of $108.78 with above-average volume. This move is quickly pushing shares of VRX with range of triggering a near-term breakout trade. That trade will hit if VRX manages to take out Monday's high of $111.35 to some more near-term overhead resistance levels at $111.39 to $112.47 with high volume.

Traders should now look for long-biased trades in VRX as long as it's trending above its 50-day at $108.78 or above $107 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.12 million shares. If that breakout hits soon, then VRX will set up to re-test or possibly take out its 52-week high at $115.40. Any high-volume move above $115.40 will then give VRX a chance to tag $120.

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:

>>5 Stocks Ready to Break Out

>>3 Big Stocks on Traders' Radars

>>5 Stocks Under $10 Set to Soar

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.

Hewlett-Packard Lowers Notebook Estimates for 2014 (HPQ)

The Palo Alto-based computer manufacturer Hewlett-Packard (HPQ) announced on Monday that it expects to ship significantly fewer notebooks in the coming year.

According to an internal forecast, the company is expected to ship 21 million laptop units in 2014, which would mark a serious deterioration from 2012′s sales figure of 32 million units. Looking out even further, it was reported that HP’s 2015 sales figure could be as low as 19 million units; as far as the current year goes, most are predicting sales of fewer than 30 million units. The undeniable shift into the mobile space has resonated well for tablets, while taking a big bite out of HP’s “bread and butter” notebook division.

Hewlett-Packard shares traded sideways on Monday, gaining 0.38% on the day. The stock is up nearly 57% YTD.

Today's 3 Best Stocks

Today's economic data certainly didn't seem to indicate the broad-based S&P 500 (SNPINDEX: ^GSPC  ) would end the day higher, but further commentary from the Federal Reserve outweighed all that news to push us higher yet again.

The "will they or won't they" debate is really starting to weigh on investors. Ever since the Fed commented that it would consider paring back its bond-buying program of Treasuries and mortgage-backed securities, we've been whipsawed up and down. Leading that volatility are investors' interpretations of Fed Chairman Ben Bernanke's comments, and the comments of his Fed governors, which are getting blown out of proportion in both directions. Today, the comments leaned toward keeping QE3 in place, which seemed to please the markets.

On the flipside, economic data wasn't horrific, but it wasn't good, either. First-quarter GDP was revised down 0.1% from its previous estimate of 2.5% to 2.4% and weekly jobless claims rose nearly 3% to a seasonally adjusted 354,000. Both figures would suggest that a slower recovery than wanted is occurring in the U.S. economy.

As I mentioned, when all was said and done, the Fed more than outweighed today's negative economic data and pushed the S&P 500 higher by 6.05 points (0.37%) to finish at 1,654.41.

Powering the S&P 500 higher were shares of solar-panel producer First Solar (NASDAQ: FSLR  ) , which rose 6.6% after receiving an upgrade from Goldman Sachs to "buy" from "hold" with a price target of $64. U.S.-based solar producers like First Solar are starting to realize the advantages of their higher-efficiency panels, with import tariffs being placed on cheaper Chinese solar panels and a combination of oversupply and huge debt levels crushing China-based manufacturers. As long as subsidies remain in place for solar conversion in the U.S., you can expect alternative energies like solar to thrive.

Heading notably higher as well, up 5.5%, was medical-products supplier CareFusion (NYSE: CFN  ) which is said to be in talks as a possible acquirer of Britain-based Smiths Group's medical division. Although neither company would comment on a potential sale it would clearly be a positive for CareFusion since its revenue growth has stagnated in recent years. We should hopefully know more about these developments over the coming weeks.

Finally, storage-equipment maker EMC (NYSE: EMC  ) advanced 5.4% after expanding its share repurchase program from $1 billion to $6 billion by the end of 2015. The company commented that it plans to repurchase $3.5 billion worth of shares by the end of the second quarter of 2014. Furthermore, EMC also initiated a quarterly dividend of $0.10 to give the company a projected yield of 1.6%. While great news for shareholders and certainly a testament to EMC's amazing cash flow, it also signals to investors that its high growth days may be over. 

Can this stock continue to shine?
Investors and bystanders alike have been shocked by First Solar's precipitous drop over the past two years. The stakes have never been higher for the company: Is it done for good, or ready for a rebound? If you're looking for continuing updates and guidance on the company whenever news breaks, The Motley Fool has created a brand-new report that details every must know side of this stock. To get started, simply click here now.

Jack in the Box Beats on EPS But GAAP Results Lag

Jack in the Box (Nasdaq: JACK  ) reported earnings on May 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 14 (Q2), Jack in the Box met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share shrank significantly.

Gross margins increased, operating margins grew, net margins dropped.

Revenue details
Jack in the Box booked revenue of $355.6 million. The 16 analysts polled by S&P Capital IQ looked for net sales of $359.1 million on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $506.6 million.

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

EPS details
EPS came in at $0.33. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. Non-GAAP EPS of $0.33 for Q2 were 22% higher than the prior-year quarter's $0.27 per share. GAAP EPS of $0.30 for Q2 were 38% lower than the prior-year quarter's $0.48 per share.

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

Margin details
For the quarter, gross margin was 23.2%, 690 basis points better than the prior-year quarter. Operating margin was 8.3%, 290 basis points better than the prior-year quarter. Net margin was 3.7%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $369.2 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $1.61.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 325 members out of 364 rating the stock outperform, and 39 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Jack in the Box a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack in the Box is outperform, with an average price target of $36.38.

Does Jack in the Box have what it takes to execute internationally? Take a look at some American restaurant concepts that are generating profits in all over the globe in, "3 American Companies Set to Dominate the World." It's free for a limited time. Click here for instant access to this free report.

Add Jack in the Box to My Watchlist.

Carnival Corporation Posts Q4 Net Loss; Beats Estimates (CCL)

Before Friday’s opening bell, Carnival Corporation (CCL) released its fourth quarter earnings. The cruise ship company reported a net loss, but beat analysts’ expectations. 

CCL’s Earnings in Brief

CCL posted a net loss of $102, or 13 cents per share, compared to net income of $66 million, or 8 cents per share, a year ago. Adjusted earnings were $210 million, or 27 cents per share, up from $35 million, or 4 cents per share, last year. Revenue increased to $3.72 billion from $3.66 billion. On average, analysts expected to see adjusted earnings of 20 cents and $3.81 billion in revenue. Looking ahead, the company expects to see FY2015 non-GAAP earnings between $2.30 and $2.60 per share. Analysts expect to see EPS of $2.34.

CEO Commentary

Carnival Corporation & plc President and CEO Arnold Donald commented: “Full year earnings were significantly higher than the prior year primarily due to strong profit improvement at both our Carnival Cruise Lines and Costa Cruises brands. We enjoyed some early wins from our collaboration efforts that contributed to our improved results, particularly for onboard revenues. We worked hard to contain costs and achieved an almost five percent reduction in fuel consumption for the year as we continue to implement energy conservation measures. We also made a number of strategic decisions in fleet investments that will position us well for the future.”

CCL’s Dividend

CCL paid its last 25 cent dividend on November 21. We expect the company to declare its next dividend in January.

CCL Dividend Snapshot

As of market close on December 18, 2014

Click here to see the complete history of CCL dividends.

Carnival shares were down 37 cents, or 0.87%, during Friday morning trading. The stock is up 9.73% YTD.

Judge Approves Bankruptcy Exit Plan for Detroit

Paul Sancya/APDetroit skyline DETROIT -- A judge cleared Detroit to emerge from bankruptcy Friday, approving a turnaround plan that will require discipline after years of corruption, mismanagement and an exodus of residents brought this one-time industrial powerhouse to financial ruin. "What happened in Detroit must never happen again," Judge Steven Rhodes said in bringing the case to a close a remarkably speedy 16 months after Detroit -- the cradle of the auto industry -- became the biggest city in U.S. history to file for bankruptcy. The plan calls for cutting retiree pensions by 4.5 percent, erasing $7 billion of debt and spending $1.7 billion to demolish thousands of blighted buildings, make the city safer and improve long-neglected basic services. In signing off on the plan, Rhodes made a fervent plea to residents who expressed sorrow and disgust about the city's woes. "Move past your anger. Move past it and join in the work that is necessary to fix this city," he said. "Help your city leaders do that. It is your city."

Move past your anger. Move past it and join in the work that is necessary to fix this city.

The Motor City was brought down by a combination of factors, including misrule at City Hall, a long decline in the auto industry, and a flight to the suburbs that caused the population to plummet to 688,000 from 1.2 million in 1980. The exodus has turned entire neighborhoods into desolate, boarded-up landscapes. With more square miles than Manhattan, Boston and San Francisco combined, Detroit didn't have enough tax revenue to cover pensions, retiree health insurance and buckets of debt sold to keep the budget afloat. "Detroit's inability to provide adequate municipal services runs deep and has for years. It is inhumane and intolerable, and it must be fixed," the judge said. Rhodes praised decisions that settled the most contentious issues in the bankruptcy case, including a deal to prevent the sell-off of world-class art at the Detroit Institute of Arts and a consensus that prevented pension cuts from getting even worse for thousands of retirees. He said the pension deal "borders on the miraculous," though he acknowledged the cuts could still cause severe misfortune for some. Politicians and civic leaders, including Michigan Gov. Rick Snyder, hailed Friday's milestone. Museum leaders said it means "there are good days ahead for our city," while Detroit Regional Chamber President and CEO Sandy K. Baruah declared Detroit to be "on the cusp of a new era and primed to reinvent itself in a way many people did not think possible." "Exiting bankruptcy so effectively and thoughtfully has wiped out decades of mismanagement and created a historic opportunity to move the city without mortgaging its future," Baruah said. The case concluded in lightning speed by bankruptcy standards. The success was largely due to a series of deals between Detroit and major creditors, especially retirees who agreed to accept smaller pension checks after the judge said they had no protection under the Michigan Constitution. Also, bond insurers with more than $1 billion in claims dropped their push to sell off art and settled for much less. It took more than two years for a smaller city, Stockton, California, to get out of bankruptcy. San Bernardino, a California city even smaller than Stockton, is still operating under Chapter 9 protection more than two years after filing. Rhodes had to accept Detroit's remedy or reject it in full, not pick pieces. His appointed expert, Martha "Marti" Kopacz of Boston, said it was "skinny" but "feasible," and she linked any future success to the skills of the mayor and City Council and a badly needed overhaul of technology at City Hall. The most unusual feature of the plan is an $816 million pot of money funded by the state, foundations, philanthropists and the Detroit Institute of Arts. The money will forestall even deeper pension cuts and also avert the sale of city-owned art at the museum -- a step the judge warned "would forfeit Detroit's future."

Oil’s Plunge Came at a Bad Time for Seadrill

Citigroup’s Mukhtar Garadaghi and Nikhil Gupta explain why the fall in oil prices is bad news for Seadrill (SDRL):

Kommersant via Getty Images

The rapid fall in oil price has coincided with budgeting season for the industry and is likely to have lasting implications, with more pronounced effects for the services sector. Capital discipline is likely to gain further focus, with our Oil Vision database pointing to 30% lower activity levels stress testing projects at $70/bbl vs $100/bbl. For OFS, an industry dependent on continued sanctioning of new investment this is likely to lead to reduced visibility, lower asset utilisations and hence lower margins in the near and medium term. Our growth estimates are lowered across the sector to reflect a slow-down in investment, especially at the top-end of the cost curve (LNG, heavy oil, parts of deepwater). This places the sector on 9x 2016E earnings (vs market at 12x), however we see 25%+ downside risk to earnings if lower commodity prices are sustained…

We downgrade Seadrill to Neutral/High Risk from Buy…A combination of disappointing exploration, further FID delays and increased oil price uncertainty lead to a 10% reduction in our medium-term rig demand forecast. Combined with significant supply added in 2015 this is likely to extend the current market weakness into 2016, which could materially affect Seadrill's ability to sign (and hence finance) the next wave of its newbuilds. We see increased risk of dividend cuts to maintain the leverage ratio within covenants.

Shares of Seadrill have fallen 43% so far this year and 17% in October alone, so it probably shouldn’t come as a surprise that its shares have gained 1.7% to $23.44 at 12:28 p.m. today–even as the price of oil continues to fall.

In fact, it’s a good day for offshore drillers all around, as Atwood Oceanics (ATW) has jumped 2.3% to $40.80, Rowan (RDC) has climbed 2.1% to $22.923 and Transocean (RIG) has advanced 0.7% to $28.98 and Noble (NE) is up 1.1% at $19.72.

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.




This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

>>5 Stocks Ready for Breakouts

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if Wall Street doesn't like the numbers or guidance.

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

>>5 Rocket Stocks to Buy for August Gains

Tesla Motors

My first earnings short-squeeze trade idea is electric vehicle player Tesla Motors (TSLA), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Tesla Motors to report revenue of $810.61 million on earnings of 4 cents per share.

The current short interest as a percentage of the float for Tesla Motors is extremely high at 26%. That means that out of the 90.33 million shares in the tradable float, 24.14 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of Tesla Motors could easily explode sharply higher post-earnings as the bears rush to cover some of their trades.

From a technical perspective, TSLA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom chart pattern at $214.27 to $213.60 a share. Following that bottom, shares of TSLA have started to trend higher right above its 50-day moving average to its recent high of $232 a share. That move has now pushed shares of TSLA within range of triggering a big breakout trade post-earnings.

If you're bullish on TSLA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $232 to $244.50 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 5.71 million shares. If that breakout hits post-earnings, then TSLA will set up to re-test or possibly take out its next major overhead resistance levels at $260 to its all-time high at $265 a share.

I would simply avoid TSLA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $218.31 a share with high volume. If we get that move, then TSLA will set up to re-test or possibly take out its next major support levels at $213.60 to around $200 a share, or even its 200-day moving average of $191.36 a share.

>>3 Stocks Spiking on Big Volume

KEYW Holding

Another potential earnings short-squeeze play is cybersecurity, cyber superiority and geospatial intelligence solutions player KEYW Holding (KEYW), which is set to release its numbers on Thursday after the market close. Wall Street analysts, on average, expect KEYW Holding to report revenue $72.90 million on a loss of 3 cents per share.

The current short interest as a percentage of the float for KEYW Holding is extremely high at 33.4%. That means that out of the 34.27 million shares in the tradable float, 11.47 million shares are sold short by the bears. This is a huge short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're expecting, then shares of KEYW could easily soar sharply higher post-earnings as the bears jump to cover some of their trades.

From a technical perspective, KEYW is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $9.71 to its intraday high of $14.37 a share. During that move, shares of KEYW have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of KEYW within range of triggering a big breakout trade post-earnings.

If you're in the bull camp on KEYW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some past overhead resistance at $15.20 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 509,624 shares. If that breakout kicks off post-earnings, then KEYW will set up to re-test or possibly take out its next major overhead resistance levels at $16 to $18, or even $19.71 to $20 a share.

I would simply avoid KEYW or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $13.21 to $13 a share with high volume. If we get that move, then KEYW will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $11.98 to $11.93, or even $11.40 to $11 a share.

>>3 Big M&A Stocks on Traders' Radars

SodaStream International

Another potential earnings short-squeeze candidate is beverage carbonation systems and related products player SodaStream International (SODA), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect SodaStream International to report revenue of $140.56 million on earnings of 31 cents per share.

The current short interest as a percentage of the float for SodaStream International is extremely high at 31%. That means that out of the 20.75 million shares in the tradable float, 6.46 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.6%, or by about 281,886 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of SODA could easily explode sharply higher post-earnings as the shorts rush to cover some of their positions.

From a technical perspective, SODA is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently exploded to the upside from around $29 to $36.53 with heavy upside volume flows. Following that one-day spike, shares of SODA have sold off sharply to its current price of around $30 a share with lighter downside volume flows.

If you're bullish on SODA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $31.50 to $32.50 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.10 million shares. If that breakout begins post-earnings, then SODA will set up to re-test or possibly take out its next major overhead resistance levels at $36.53 to $39.70, or even $42 a share.

I would avoid SODA or look for short-biased trades if after earnings it fails to trigger that breakout and then takes out its 52-week low of $28.65 a share with high volume. If we get that move, then SODA will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $25 to $20 a share.

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World Wrestling Entertainment

Another earnings short-squeeze prospect is integrated media and entertainment player World Wrestling Entertainment (WWE), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect World Wrestling Entertainment to report revenue of $156.98 million on a loss of 20 cents per share.

The current short interest as a percentage of the float for World Wrestling Entertainment is extremely high at 22%. That means that out of the 32.12 million shares in the tradable float, 7.07 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.7%, or by about 182,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of WWE could easily rip sharply higher post-earnings as the shorts move to cover some of their trades.

From a technical perspective, WWE is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending over the last two months and change, with shares moving higher from its low of $10.44 to its recent high of $13.08 a share. During that uptrend, shares of WWE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WWE within range of triggering a major breakout trade post-earnings.

If you're bullish on WWE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance at $13.08 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.25 million shares. If that breakout kicks off post-earnings, then WWE will set up to re-fill some of its massive gap-down-day zone from May that started at $20.43 a share.

I would simply avoid WWE or look for short-biased trades if after earnings it fails to trigger that breakout and then takes out some key near-term support levels at $12.09 to its 50-day moving average of $11.64 a share with high volume. If we get that move, then WWE will set up to re-test or possibly take out its next major support levels $10.77 to $10.44 a share. Any high-volume move below those levels will then give WWE a chance to re-test or take out its 52-week low of $9.62 a share.

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3D Systems

My final earnings short-squeeze play is 3D printing centric design-to-manufacturing solutions player 3D Systems (DDD), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect 3D Systems to report revenue of $162.28 million on earnings of 18 cents per share.

The current short interest as a percentage of the float for 3D Systems is extremely high at 34.5%. That means that out of the 98.72 million shares in the tradable float, 34.05 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.3%, or by about 1.71 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of DDD could easily explode sharply higher post-earnings as the shorts rush to cover some of their positions.

From a technical perspective, DDD is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been downtrending badly for the last month, with shares moving lower from its high of $69.56 to its recent low of $51.60 a share. During that downtrend, shares of DDD have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of DDD have now started to bounce higher off that $51.60 low and it's starting to flirt with its 50-day moving average of $54.28 a share.

If you're in the bull camp on DDD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $57.50 to $58.64 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 4.34 million shares. If that breakout gets started post-earnings, then DD will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of 64.90 to $69.56 a share.

I would avoid DDD or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $51.60 to $50 a share with high volume. If we get that move, then DDD will set up to re-test or possibly take out its next major support levels at $48.10 to $47.08, or even $45.42 to its 52-week low at $43.35 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Hot Stocks to Trade (or Not)

>>5 Large-Cap Stocks to Trade for Earnings Season Gains

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

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.

Reporter behind story of $72 million teen trader stays at NY Mag

NEW YORK (CNNMoney) The writer behind the story about the "$72 million teenage stock whiz" is staying put at New York Magazine.

Jessica Pressler was slated to join the Bloomberg News investigative unit, but got caught up in controversy this past week following a story she wrote about a New York City high school student who said he'd made $72 million trading stocks. (Spoiler alert: He hadn't.)

New York Magazine's editor-in-chief Adam Moss told his staff Friday in an announcement that reporter Jessica Pressler would be staying at the magazine.

"Can't say that we expected things to turn out this way, but we feel very lucky to be keeping [Pressler] on, and look forward to publishing more of her with pride," Moss wrote in the memo, which was first published by Capital New York. New York Magazine confirmed the authenticity of the memo to CNNMoney.

Pressler's profile of Stuyvesant High School senior Mohammed Islam stirred up controversy and plenty of doubters from the start.

A front page piece about the story by the New York Post and a flurry of Facebook (FB, Tech30) shares later, the improbable tale unraveled quickly. Islam told the New York Observer on Monday that he never actually made any money at all. As the criticism mounted, Pressler defended her reporting.

"I still think the piece is skeptical enough," Pressler told CNNMoney Monday. "The story says, 'This is a rumor and draw your own conclusions.'"

People began to wonder whether Pressler would move to her new job as early as Tuesday, when blogger Jim Romenesko published an email he sent to Bloomberg questioning the company's plans to hire her. A Bloomberg spokesperson declined to comment to Romenesko at the time, and Bloomberg again declined to comment Friday to CNNMoney.

Pressler seems to be taking it all in stride, tweeting Friday, "Good news is I'm staying @NYMag. Bad news is I lost a shoe at holiday party; not the worst thing this week but annoying so if you see it lmk."

5 Dividend Stocks That Want to Pay You More in 2014

BALTIMORE (Stockpickr) -- The stock market has done an about-face in the last couple of months, shifting from a sideways slump to a rally that's currently on track for double-digit gains by the end of the year. Since the start of January, the S&P 500, for instance, has rallied 5.89%. If the big index can keep it up, that's good for a 12.52% gain by the end of December.

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But capital gains are only part of the equation. If you're ignoring dividend payouts, you're doing yourself a huge disservice. In the last year, dividend payouts in among S&P 500 stocks have risen by 15.6%. That means that companies in the big index currently pay out more cash on a nominal basis than ever before.

Factoring in dividends to this year's return numbers, the S&P's gains sit at 6.96% so far, a 20% boost vs. the plain price gains alone. So, yes, dividends clearly matter for your total returns this year. But to find the biggest gains, it's not enough to simply buy names with big payouts today. You have to think about what they'll be paying tomorrow too.

So instead of chasing yield, we'll try to step in front of the next round of stock payout hikes.

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For our purposes, that "crystal ball" is composed of a few factors: namely a solid balance sheet, low payout ratio and a history of dividend hikes. While those items don't guarantee dividend announcements in the next month or three, they do dramatically increase the odds that management will hike their cash payouts to shareholders.

Without further ado, here's a look at five stocks that could be about to increase their dividend payments in the next quarter.

Microsoft

The term "dividend stock" doesn't typically come to mind when most people think about software giant Microsoft (MSFT), but with a 2.7% dividend yield today, the Windows developer is in the top tier of large-cap dividend payers. And Microsoft's dividend check looks likely to increase in 2014. Right now, the firm pays out a 28-cent quarterly dividend, but after four straight quarters of flat payouts, Microsoft looks likely to deploy more cash for dividends this fall.

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Microsoft doesn't need much of an introduction. The firm is one of the largest software makers in the world, thanks to the dominance of its Windows operating system and Office suite of productivity applications. It's also a major consumer electronics name today, thanks to the acquisition of Nokia's (NOK) handset business, an active tablet unit and a thriving gaming console franchise in the Xbox. But while the consumer devices may get a disproportionate share of ad spending, make no mistake -- Windows, Office and enterprise solutions are Microsoft's real cash cows.

From a financial standpoint, Microsoft is in stellar shape. The firm currently carries $80 billion in net cash and investments, enough to cover approximately 23% of the firm's current market capitalization. Ex-cash, Microsoft's P/E ratio drops to a thrifty 11.9. This tech titan isn't dirt cheap, but it's pretty close.

Wal-Mart

Retail giant Wal-Mart (WMT) has been a pretty poor performer in 2014. Since the calendar flipped to January, shares of Wal-Mart are down close to 5%, dragged lower by the occasional fundamental misstep. But that stalled share price doesn't reflect the progress WMT has made at its growth strategy this year. As Wal-Mart moves forward with its multi-format store plan, the firm should be able to capture enough sales growth to move the needle; for a firm with Wal-Mart's scale, that's a big deal.

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Wal-Mart is the undisputed king of retail. The firm boasts approximately 11,000 stores worldwide, primarily its namesake supercenters and Sam's Club wholesale clubs. Not only does the firm tip the scales with $476 billion in annual sales, it also manages to move those mountains of merchandise at net profit margins that consistently approach 3.5%. That's a big profit margin for a retail business, and combined with WMT's scale, it means that this firm throws off substantial cash for internal growth and investor consumption.

For years, the international segment has been Wal-Mart's weak spot. Despite the fact that Wal-Mart isn't exactly a newcomer to most of the markets that it operates in, overseas performance numbers still fall much lower than the returns WMT earns on its U.S. stores. Right now, Wal-Mart's 48-cent quarterly dividend payout adds up to a 2.6% yield.

Philip Morris International

Philip Morris International (PM) is your prototypical "sin stock." The tobacco giant operates in a recession-resistant business with sticky customers and deep net profit margins (above 28% last year). It's also a major income play, thanks to a 4.35% dividend payout at currently price levels. As I write, PM pays out a 94-cent quarterly dividend check to investors, but after four straight quarters of a flat rate, I'd expect this name to break the $1 barrier on its payout in 2014.

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Philip Morris International is the second-largest tobacco firm in the world, with approximately 28% of the ex-U.S. global market. The firm's brands include flagship Marlboro as well as second-tier names such as L&M, Parliament and Chesterfield. Philip Morris International stepped out on its own after a 2008 spin-off from Altria (MO) separated the firm's domestic and international tobacco businesses. There's no question that PM is the more attractive of the two businesses, thanks to attractive emerging market demographics and lower regulations than found here at home.

Looking at the financials, one of the biggest challenges for this stock in recent years has been the fact that, since sales are made in foreign currencies and then converted into dollars, PM's overseas earnings take a conversion hit when the dollar is strong. But even those headwinds haven't been enough to derail PM's growth trajectory. And with PM's dividend averaging 13% growth over the last three years, investors should get ready for another hike.

Duke Energy

Nothing goes together quite like dividends and utility stocks. So while I'm the first to admit that adding Duke Energy (DUK) to our list of potential dividend hikers is a bit of a layup, it doesn't change the fact that income investors should be paying attention to this name. Duke Energy is the largest utility in the U.S. -- the firm owns regulated businesses that deliver electricity and gas to approximately 7.1 million customers in the Carolinas, Indiana, Ohio, Kentucky and Florida.

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And right now, the firm's 78-cent dividend payout adds up to a 4.3% yield.

Like a handful of its peers, Duke has been selling off some of its non-regulated assets (like 7.5 gigawatts of generation capacity at its Midwestern power plants), forgoing exposure to energy commodities in favor of the steady, predictable regulated earnings. Duke's exposure to states with accommodative regulators is a big part of why it's been so eager to shed those assets. As of this writing, around 90% of Duke Energy's earnings come from regulated distribution.

Duke's dividend payouts have remained consistent, and should continue to grow, especially as DUK finds cost savings from its $29 billion acquisition of Progress Energy two years ago. The firm announces earnings on Aug. 4, which could be a dividend boost date.

Hershey

As the largest candy maker in the U.S., Hershey (HSY) commands a whopping 43% share of the domestic chocolate business. That positioning translates into some pretty sweet profits for the $21 billion food maker: Last year, HSY 11 cents out of every sales dollar into net income, $3.61 per share in total. Of that, it's paid out $1.94 per share directly to shareholders in the form of dividends over the last 12 months, adding up to a 2% yield today.

But Hershey looks primed to boost that payout amount in 2014.

Hershey's brands include names like Reese's, Kit Kat and Twizzlers in addition to its popular namesake products. In total, the firm boasts more than 80 brands sold in 70 countries. But that vast majority of sales are still generated here at home; only 15% of revenue is generated overseas. If Hershey can boost its exposure to foreign candy sales, it has the potential to log some material growth in the years ahead.

In the past several years, dividends have failed to keep pace with a double-digit sales and profit growth rate. That leaves some cushion for HSY to hike its payout without getting overextended. For now, HSY pays just under half of its quarterly net income in the form of dividends.

To see these dividend plays in action, check out the at Dividend Stocks for the Week portfolio on Stockpickr. 



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Stocks Under $10 Setting Up to Soar

>>3 Huge Stocks to Trade (or Not)

>>5 Stocks Set to Soar on Bullish Earnings

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji