Top 5 Companies To Watch For 2014

Climate change has been getting a lot of airtime lately, especially in the wake of President Obama's sweeping speech on the subject last month. Many companies have been increasingly engaged on the topic, talking more about the risks and opportunities their businesses face from the effects of a warming planet.

I've been talking a lot about climate change, too, specifically advocating for the notion that investors need to take it into account in their overall stock analyses. Judging from readers' comments questioning my intelligence and parentage, some people strongly disagree with this position!

So what if we change the discourse? What if, instead of talking about climate change, we talk about operational resilience? About business continuity? About efficiency? Because that's exactly how I heard three utilities addressing the subject today, and it was compelling.

Top 5 Companies To Watch For 2014: 8x8 Inc(EGHT)

8x8, Inc. develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications. The company offers 8x8 Virtual Office Business Telephone Service, an alternative to traditional private branch exchange systems that offers automated attendants to assist callers; extension-to-extension dialing services; direct inward dial; conference bridge, 3-way calling, music on hold, call park/pick-up, call transfer, hunt groups, and do not disturb services; voice mail, including email alerts and direct transfer to mailbox; call waiting/caller-ID; distinctive tone ringing; and optional receptionist console applications. Its products also include 8x8 Complete Contact Center, an integrated hosted call center solution that consists of skill-based routing, multi-media management, real time monitoring and reporting, voice recording and logging, historical reporting, interactive voice response, CRM integration, and contact and case management tools; 8x8 IP Telephones; 8x8 Virtual Meeting, a video Web conferencing service; and 8x8 Managed Hosting and Cloud-Based Computing Solutions. In addition, the company offers 8x8 Virtual Office Pro Unified Communications that allows subscribers to manage business communications functions online and delivers various tools, such as Microsoft Outlook contacts and corporate directory integration; virtual meeting; Virtual Office Mobile extension; fax; call recording; presence management; and a view of voicemails, recordings, FAX messages, calls, and chat history. The company markets its services under 8x8 brand to end users through direct sales force, Web site, and third party resellers primarily in the United States. As of June 30, 2011, it had approximately 25,000 business customers. 8x8, Inc. was founded in 1987 and is headquartered in Sunnyvale, California.

Top 5 Companies To Watch For 2014: Walter Energy Inc.(WLT)

Walter Energy, Inc. produces and exports metallurgical coal for the steel industry primarily in the United States. The company also produces thermal and industrial coal, anthracite, metallurgical coke, coal bed methane gas, and other related products. It principally serves electric utility and industrial customers. The company was formerly known as Walter Industries, Inc. and changed its name to Walter Energy, Inc. in April 2009. Walter Energy, Inc. was founded in 1946 and is headquartered in Birmingham, Alabama.

Advisors' Opinion:

• [By Roberto Pedone]

  One name that's quickly pushing within range of triggering a major breakout trade is Walter Energy (WLT), which is a producer and exporter of metallurgical coal for the global steel industry. This stock has been rocked by the shorts so far in 2013, with shares off sharply by 66%.

  If you take a look at the chart for Walter Energy, you'll notice that this stock has been downtrending badly for the last six months, with shares plunging from over $40 to its recent low of $9.87 a share. During that downtrend, shares of WLT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of WLT have now formed a double bottom over the last month, with shares finding buying interest as $9.87 and then at $9.96. This stock has started to rebound higher off that double bottom area, and it's now quickly moving within range of triggering a major breakout trade.

  Traders should now look for long-biased trades in WLT if it manages to break out above some near-term overhead resistance at $11.94 to its 50-day moving average of $12.39 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 9.32 million shares. If that breakout hits soon, then WLT will set up to re-test or possibly take out its next major overhead resistance levels at $14.74 to $17.50 a share. Any high-volume move above those levels will then give WLT a chance to tag $20 a share.

  Traders can look to buy WLT off any weakness to anticipate that breakout and simply use a stop that sits right below today's low of $11.59 a share, or right below $11 a share. If we get weakness below those levels, then I would key off of those double bottom levels at $9.96 to $9.87 a share. One could also buy WLT off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  This stock is loved by the bears, since the current short interest as a percentage of the float for WLT is ridiculously high at 40.7%. The bears have also been increasing their bets from the last reporting period by 4.6%, or by about 1.10 million shares. If that breakout hits soon, then WLT could see a big short-squeeze, so make sure to have this name on your breakout trading radar.

Hot Safest Stocks To Invest In Right Now: Novellus Systems Inc.(NVLS)

Novellus Systems, Inc., together with its subsidiaries, develops, manufactures, sells, and supports equipment used in the fabrication of integrated circuits. The company operates in two segments, Semiconductor Group and Industrial Applications Group. The Semiconductor Group segment provides equipment used in wafer processing, advanced wafer-level packaging, and light-emitting diode (LED) manufacturing. Its deposition systems use chemical vapor deposition (CVD), physical vapor deposition (PVD), and electrochemical deposition (ECD) processes to form transistor, capacitor, and interconnect layers in an integrated circuit; and High-Density Plasma CVD (HDP-CVD) and Plasma-Enhanced CVD (PECVD) systems employ chemical plasma to deposit dielectric material within the gaps formed by the etching of aluminum, or as a blanket film that can be etched with patterns for depositing conductive materials into the etched dielectric. This segment?s CVD Tungsten systems are used to deposit co nductive contacts between transistors and interconnects; PVD systems are used to deposit conductive aluminum and copper metal layers by sputtering metal atoms; and Electrofil ECD systems are used for depositing copper to form the conductive wiring on integrated circuits using copper interconnects. The Industrial Applications Group segment provides grinding, lapping, and polishing equipment for fine-surface optimization. It offers products for use in the semiconductor and LED manufacturing, automotive, aerospace, medical, green energy, and glass and ceramics industries, as well as manufacturers of products, such as pumps, transmissions, compressors, and bearings. The company markets its products through direct sales force and manufacturer?s representatives primarily in Europe, the United States, Korea, Japan, China, Taiwan, and southeast Asia. Novellus Systems, Inc. was founded in 1984 and is headquartered in San Jose, California.

Top 5 Companies To Watch For 2014: HMN Financial Inc.(HMNF)

HMN Financial, Inc. operates as the holding company for Home Federal Savings Bank that provides community banking services in Minnesota and Iowa. The company accepts deposits and originates or purchases loans. It offers various deposit products to retail and commercial customers, including passbook, negotiable order of withdrawal, money market, non-interest bearing checking, and certificate accounts, including individual retirement accounts. The company also provides one-to-four family residential, commercial real estate, and multi-family mortgage loans, as well as consumer, construction, and commercial business loans. In addition, it invests in mortgage-backed and related securities, the U.S. government agency obligations, and other permissible investments. HMN Financial serves the southern Minnesota counties of Fillmore, Freeborn, Houston, Mower, Olmsted, and Winona, as well as portions of Steele, Dodge, Goodhue, and Wabasha through its corporate office in Rochester, Min nesota and 10 branch offices located in Albert Lea, Austin, La Crescent, Rochester, Spring Valley, and Winona, Minnesota; and the Iowa counties of Marshall and Tama through its branch offices located in Marshalltown and Toledo, Iowa. The company was founded in 1933 and is based in Rochester, Minnesota.

Top 5 Companies To Watch For 2014: Rare Earth Metals Inc (RA.V)

Rare Earth Metals Inc., a development stage company, focuses on the acquisition and development of mineral properties in North America. The company explores for rare earth elements, niobium, beryllium, zirconium, and iron ore deposits, as well as bituminous coal deposits. Its flagship properties include the Clay-Howells Prospect consisting of 45 patented claims and 49 unpatented claims totaling 11,781 hectares located in northeast of Kapuskasing, Ontario; and the Red Wine project with a total of 1360 claim units comprising 340 square kilometers located in west central Labrador. The company is based in Thunder Bay, Canada.