Hot Small Cap Stocks To Watch For 2014

Last Friday, small cap Digital Brand Media & Marketing Group Inc (OTCMKTS: DBMM) surged 22.22% while Blue Water Global Group Inc (OTCBB: BLUU) sank 18.42% and Medina International Holdings, Inc (OTCMKTS: MIHI) sank 50%. However, one of these small caps (Blue Water Global Group) appears to be reversing course in early morning trading today. So with it and the rest of these small cap stocks either sink or swim in trading this week? Here is a closer look to help you decide on an investing or trading strategy:

Digital Brand Media & Marketing Group Inc (OTCMKTS: DBMM) is Making Progress

Small cap Digital Brand Media & Marketing Group crafts, designs and executes digital marketing strategies across multiple ad platforms and social media networks for a broad array of clients to help each of them establish a uniform brand identity across the digital universe. On Friday, Digital Brand Media & Marketing Group surged 22.22% to $0.0011 for a market cap of $40,455 plus DBMM is up 175% since the start of the year and down 89% since February 2011 according to Google Finance.

Top 10 Dividend Stocks To Own Right Now: Rackspace Hosting Inc(RAX)

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Advisors' Opinion:

• [By Monica Gerson]

  Rackspace Hosting (NYSE: RAX) shares climbed 12.87% to $34.63 in the pre-market trading session on confirmation of approach by potential buyers and partners.

• [By Investometrica]

  First, I compare the stock performance of Salesforce.com with other competitors. Although some competitors are not exactly in the same business, all of them have either a cloud computing or CRM component in their revenue: Citrix Systems (CTXS), Rackspace (RAX), SAP (SAP), Oracle (ORCL), Microsoft (MSFT), IBM (IBM), Amazon (AMZN) and VMware (VMW). Salesforce.com's one year stock performance, 13.51%, is far from the top (that is, SAS, with 31.19%) gainer. On one hand, things could have been worse, as a good number of competitors show negative returns. On the other hand, we should notice that the current stock price level has not changed that much since early 2011 ($39.2 per share). This stagnation is hard to ignore.

Hot Small Cap Stocks To Watch For 2014: Achillion Pharmaceuticals Inc.(ACHN)

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections. Its drug candidates for the treatment of chronic HCV include ACH-1625, a protease inhibitor, which is in phase IIa clinical trial for the treatment of chronic HCV; ACH-2684, a pangenotypic protease inhibitor, which is in phase I clinical trial for the treatment of chronic HCV infection; and NS5A inhibitors for the treatment of chronic HCV infection, including ACH-2928, which is to enter a phase I clinical trial, as well as various additional NS5A inhibitors in preclinical development. Its pipeline of product candidates also includes ACH-702 and ACH-2881 for drug resistant bacterial infections; elvucitabine for HIV infection; and AC H-1095 for HCV infection. The company was founded in 1998 and is based in New Haven, Connecticut.

Advisors' Opinion:

• [By Ben Levisohn]

  After big rallies by biotech stocks, the folks at Weeden wondered if the rally getting overdone.�UBS analyst Matthew Roden and team think biotech stocks like Gilead Sciences�(GILD), Celgene�(CELG),�Vertex Pharmaceuticals (VRTX),�Puma Biotechnology (PBYI) and Achillion Pharmaceuticals (ACHN) can keep running. They explain why:

Hot Small Cap Stocks To Watch For 2014: Texas Instruments Incorporated(TXN)

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company?s Analog segment offers high-performance analog products comprising standard analog semiconductors, such as amplifiers, data converters, and interface semiconductors; high-volume analog and logic products; and power management semiconductors and line-powered systems. Its Embedded Processing segment includes DSPs that perform mathematical computations to process and enhance digital data; and microcontrollers, which are designed to control a set of specific tasks for electronic equipment. The company?s Wireless segment designs, manufactures, and sells application processors and connectivity products. Its Other segment offers smaller semiconductor products, which include DLP products that are primarily used in projectors to create high-definition images; and application-specific integrated circuits. This segment also provides handhe ld graphing and scientific calculators, as well as licenses technologies to other electronic companies. The company serves the communications, computing, industrial, consumer electronics, automotive, and education sectors. Texas Instruments Incorporated sells its products through a direct sales force, distributors, and third-party sales representatives. It has collaboration agreements with PLX Technology Inc.; Neonode, Inc.; and Ubiquisys Ltd. The company was founded in 1938 and is headquartered in Dallas, Texas.

Advisors' Opinion:

• [By Dan Caplinger]

  Texas Instruments (NASDAQ: TXN  ) will release its quarterly report next Monday, but shareholders already have seen the stock soar to levels it hasn't seen in years. The question for investors, though, is whether Texas Instruments earnings can finally start growing at a fast-enough pace to justify further share-price gains in the future.

• [By Laura Brodbeck]

  Notable earnings released on Monday included:

  Netflix, Inc. (NASDAQ: NFLX) reported third quarter EPS of $0.52 on revenue of $1.11 billion, compared to last year’s EPS of $0.13 on revenue of $905.09 million. McDonald’s Corporation (NYSE: MCD) reported third quarter EPS of $1.52 on revenue of $7.32 billion, compared to last year’s EPS of $1.43 on revenue of $7.15 billion. Halliburton Company (NYSE: HAL) reported third quarter EPS of $0.83 on revenue of $7.50 billion, compared expected EPS of $0.82 on revenue of $7.50 billion. Texas Instruments Incorporated (NASDAQ: TXN) reported third quarter EPS of $0.56 on revenue of $3.24 billion, compared to last year’s EPS of $0.52 on revenue of $3.39 billion.

  Pre-Market Movers

• [By Dan Caplinger]

  Texas Instruments (NASDAQ: TXN  ) will release its quarterly report on Monday, and investors have been happy about the company's new strategy, sending the stock to its best levels since the tech boom in 2000. Yet the shrewdness of TI's strategy is that rather than going head-to-head against giants Intel (NASDAQ: INTC  ) and Qualcomm (NASDAQ: QCOM  ) , Texas Instruments has instead chosen to concentrate on its areas of greatest strength, ceding more competitive business to its rivals rather than fighting it out in a destructive price war.

Hot Small Cap Stocks To Watch For 2014: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

Advisors' Opinion:

• [By Roberto Pedone]

  One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.

  If you take a look at the chart for KongZhong, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.

  Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.

  Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Hot Small Cap Stocks To Watch For 2014: Panera Bread Company(PNRA)

Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services. The company also manufactures and supplies dough and other products to company-owned and franchise-operated bakery-cafes. As of March 29, 2011, it owned and franchised 1,467 bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe names. The company was founded in 1981 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Demitrios Kalogeropoulos]

  Panera Bread (NASDAQ: PNRA  ) is in unfamiliar territory. After logging industry-trouncing sales growth for years, its latest results put it much closer to plain old average. That could be bad news for a stock that's trading at a premium to other casual dining giants.

• [By Ben Levisohn]

  Panera Bread (PNRA) has dropped 5.5% to $154.23 after beating earnings forecasts, but reporting tepid same-store-sales growth and offering disappointing guidance.