B Y P A U L W H I T F I E L DINVESTOR'S BUSINESS DAILY

Stock indexes kept to a tight trading range Fri-day, while posting moderate gains.

The Nasdaq trotted 0.5% higher, while theS&P 500 and Dow Jones industrial averageadded 0.4% and 0.3% respectively.

The IBD 50 gained 0.3%.Volume rose on both major exchanges. The

Nasdaq enjoyed an easy comparison, thanks toThursday’s three-hour shutdown.

The Nasdaq and S&P 500 halted their two-week losing streaks. The S&P 500 barelyedged above its 50-day moving average Friday,suggesting that battle isn’t over yet.

Meanwhile, the Nasdaq crept within 1% ofits high. Investors should pay special attentionat this juncture. A shift from correction to up-trend could be near.

If an investor hasn’t put a watch list together,now is the time to do it. Scan the IBD 50, YourWeekly Review, Big Cap 20, Sector Leadersand Stock Spotlight for candidates.

If a stock shows up on multiple lists, then allthe better. Each screen gauges a stock in asomewhat different way. A stock that showsup on more than one list might have a varietyof strengths.

Also, investors should lean toward the highlyliquid stocks. One mistake rookie investorsmake is buying thinly traded stocks. Some ofthe thin stocks are so sparsely traded that thedaily action could be reflecting nothing morethan a handful of individual investors.

Stick with stocks that reflect institutional ac-

tivity.IBD ran a screen of stocks that carry a Com-

posite Rating of 90 or better and show heavyaverage daily dollar volume. The screen found12 stocks with average daily dollar volumeabove $400 million.

They are FacebookFB, Google GOOG, TeslaMotorsTSLA, NetflixNFLX, Visa V, PricelinePCLN,BaiduBIDU, Gilead SciencesGILD, TwentyfirstCentury FoxFOXA, YahooYHOO, LinkedInLNKD

and MasterCardMA.These stocks don’t constitute a buy list. They

might not make your final watch list, but theyare worth reviewing.

Few leaders moved in fast trade Friday. Face-book, though, lunged ahead 5% in volume 52%above average. The stock cleared a short con-solidation.

Economic news was mixed Friday. New-home sales in July were 19% less than theStreet expected. But second-quarter GDP fig-ures for Germany and the United Kingdommatched expectations for growth of 0.7% and0.6%.

Europe has been flashing signs of strength, adevelopment that could help U.S. stocks withsignificant European exposure.

Stocks Post Decent Gains;Nasdaq Only 1% Off High

QUESTCOR PHARMACEUTICALS (QCOR) YTD +169% o$71.8455.8M Shares 99 Comp. Rating 98 EPS 98 RS 110% ROEDEVELOPS PRESCRIPTION DRUGS TO TREAT AUTOIMMUNE AND INFLAMMATORY DIS-EASES.

Ann. EPS Growth +121% PE 17 Avg. Daily Vol 1,711,900 Debt 0%Last Qtr Eps +96%`Next Qtr Eps Est +33% Last Qtr Sales +64%3 Q's Avg Eps +84% PreTax Mgn 61%

Acc/Dis A+UpDown Vol 1.9Sup/Demand 91

3% past 66.92 three-weeks-tight entry.

B Y K E N S H R E V EINVESTOR'S BUSINESS DAILY

Another day of gains and closes near sessionhighs for major averages Friday saw moresolid performances by several Sector Leaders.

One day after FleetCor TechnologiesFLT

cleared a bullish three-weeks-tight pattern,Questcor PharmaceuticalsQCOR joined theparty with a three-weeks-tight breakout of itsown. The stock held gains nicely throughoutFriday’s session. Shares ended at 71.84, up3.41. Volume was slightly above average.

The risk with Questcor is that the companyderives nearly all its revenue from one drug:Acthar. But the drug has been a blockbuster sofar. It’s approved for 19 indications by theFood and Drug Administration, including mul-tiple sclerosis relapses, infantile spasms andrheumatic disorders. It’s also being looked atSEE QUESTCOR ON 4

00 S E E F U L L S T O R Y 00 S E E F U L L S T O R Y

I N T E R N A T I O N A L L E A D E R S I N D U S T R Y T H E M E S I B D ’ S T O P 1 0

S&P 500 INDEX1663.50+6.54 (+0.4%)

DOW JONES IND.15,010.51+46.77 (+0.3%)

NYSE VOL. (MIL)

2,535+71 (+2.9%)

NASDAQ3657.79+19.08 (+0.5%)

NASDAQ VOL. (MIL)

1,453+554 (+61.6%)

10-YEAR T-NOTE2.82%-0.08 (-2.8%)

EURO1.3384+0.0030 (+0.2%)

REUTERS CRB FUT.290.79+2.45 (+0.8%)

M A R K E T P U L S EFriday’s action:Up in rising volumeCurrent outlook:Market in correction

Crises In Emerging MarketsCrises are erupting in some of theworld’s biggest emerging mar-kets, as investor flight is boostinglocal yields and devastating localcurrencies. Brazil’s central banksaid late Thursday it will launch ahuge $60 billion currency-inter-vention plan. The real soared al-most 3% on the news — but it hadplunged 18% against the dollar inthe past four months.

Restaurants Show StrengthThe restaurant group has slid outof the top 20 since we last checkedin during late July. In that time,Darden RestaurantsDRI and PaneraBreadPNRA have continued to pullback sharply. McDonald’sMCD hasbeen in a downtrend since April.Yum BrandsYUM continues its wob-bling consolidation below a highset April 2012. There is also clearstrength in the group.

Microsoft’s Ballmer To ExitSteve Ballmer, CEO since 2000,will resign within a year. A searchcommittee including ChairmanBill Gates has no obvious internalsuccessor. MicrosoftMSFT rose 7%on hopes that a new leader will beable to revive the desktop-orient-ed software giant. Ballmer madeprogress in server software andthe XBox console, but failed togain a big foothold in mobile. Re-cently, Windows 8 and the Sur-face tablet flopped.

T H E B I G P I C T U R E S M A R T T A B L E R E V I E W

Today’s SpotlightMarketSmith WebinarPresidentW.ScottO'NeilhostsIBDchairman,WilliamJ.O'Neil,on8/27foradiscussiononthecurrentmarketandthenextsupercyclebullmarket.

IBD Radio ShowTune inSaturday at 4PM PTto learnhow touse apowerful stock list thatisa favorite of IBDfounder William J.O’Neil.

New to IBD?Checkout thisoverview of keyfeaturesand investing tools toget themostout of your subscription.

LinkedIn , Questcor RallyAs Major Indexes Rise

SPECIAL PREVIEW EDITION W W W . I N V E S T O R S . C O M MONDAY, AUGUST 26, 2013

2 MONDAY, AUGUST 26, 2013 INVESTORS.COM

Biogen’s Tecfidera May Become BlockbusterMultiple Sclerosis Pill Sales Surging

Tecfidera is the biotech’s thirdMS drug and also its third oraltreatment for MS since 2010

Apple, Samsung Win RoundA three-judge panel at D.C.’s U.S.Circuit Court of Appeals told Ap-pleAAPL and Korea’s Samsung Elec-tronics that neither must makepublic financial details submittedin their legal patent fights, rebuff-ing an advocacy group’s request.Apple fell 0.4%. In other news, theJustice Dept. recommended halv-ingaproposedinjunctionvs.Appleto 5 years for conspiring with pub-lishersovere-book prices.

Ann Q2 Profit Up SharplyThe operator of Ann Taylor andLOFT stores said EPS climbed21% to 76 cents, topping views for65 cents as the women’s apparelretailer was one of the few cloth-iers this season to post highersame-store sales. Ann Inc.ANN reve-nue rose 7.3% to $638.2 mil onstrong sales of its assortment of of-fice wear and Kate Hudson collec-tion. Sales at stores open at least ayearwereup 2.8% sofar in August.

I N T E R N E T E C O N O M Y

B Y M A R I L Y N M U C HINVESTOR'S BUSINESS DAILY

Biogen Idec hit pay dirt with the launch of itspotential blockbuster multiple sclerosis drugTecfidera.

The biotech drugmaker rang up $192 millionin sales from Tecfidera in the second quarter,its first report on the oral therapy for MS sinceits U.S. launch in April.

BiogenBIIB said $110 million of Tecfiderasales came from underlying patient demand,smashing consensus estimates for $75 million.Another roughly $82 million came from pre-ordered inventory.

“I think this was the best launch in the histo-ry of MS drug launches,” said Robert W. Baird& Co. analyst Chris Raymond.

“You’ve got the best of both worlds. It’s anoral therapy for a chronic disease, which is anadvantage. Also, the incumbent oral MS drugs,Gilenya and Aubagio, have safety-related de-terrents,” he said.

The National Multiple Sclerosis Society de-scribes MS as a chronic, often disabling dis-ease attacking the central nervous system —made up of the brain, spinal cord and opticnerves.

MS can cause anything from numbness inlimbs to paralysis or vision loss. But the organi-zation notes that new treatments and researchadvances are giving new hope to people affect-ed by MS.

Tecfidera’s safety profile, Raymond adds, is“far superior to anything that’s out there.”

Themost common adverse reactions for Tec-fidera are flushing and gastro-intestinal issuessuch as abdominal pain, according to Biogen.

Raymondexpects Tecfidera to post $680 mil-lion in global sales this year, $1.7 billion in2014, and $2.8 billion in 2016.

Trio Of Oral MS DrugsTecfidera treats people with relapsing forms

of MS, including relapsing-remitting MS(RRMS), the most common form of the dis-ease. Patients take a Tecfidera pill twice daily.Canada approved it in April, and Australia inJuly.

Tecfidera is the third oral treatment for MSto come to market. Gilenya from NovartisAGNVS won approval in 2010 and Aubagio fromSanofiSNY got the nod in 2012.

Tecfidera got off to a fast start in terms of thenumber of physicians who prescribed it andthe number of patients who went on the treat-ment, Tony Kingsley, Biogen’s executive vicepresident of global commercial operations,told IBD.

More than 3,500 physicians have prescribedit. About 25% of Tecfidera patients were noton a prior therapy, while about 75% switchedfrom a different disease-modifying MS thera-py.

Sometimes physicians may be hesitant to pre-scribe a drug that just launched, Kingsley says.

“But the broad number of physicians writingprescriptions and putting newly diagnosed pa-tients on Tecfidera are positive indicatorsabout the broad acceptance of the product inthe market, and that people think it has a verygood profile,” he said.

According to drug tracker IMS Health, Tec-fidera outperformed all other MS drugs in thefirst three months after its launch.

“In the upcoming quarters, we expect Tec-fidera new-prescription volume to remainhealthy, but (it) will moderate to more closelyreflect the underlying patient start-and-switch dynamics of the MS market,” Kingsleysaid on Biogen’s second-quarter conferencecall.

There is a wild card, however. In May, Bio-gen announced it was granted a Europeanpatent that extends until 2028 and covers theexpected EU Tecfidera label dose of 480 milli-grams. But the company also said there was anexpected delay to the launch in the EuropeanUnion as it continues talks with regulators togain clarity on Tecfidera’s regulatory data pro-tection.

Baidu Buys 59% Of NuomiChina’s top search engine will buya majority stake in the Chinesegroup-buying site for $160 mil, asit pushes deeper into the fast-growing mobile Internet. BaiduBIDU will issue stock to financethe deal. Nuomi, a unit of socialnetworker RenrenRENN, offers a ser-vice similar to GrouponGRPN. Inearly August, Baidu bought the 91Wireless app store from Netdrag-on Websoft for $1.85 bil.

German Economy Picks UpEurope’s biggest economy ex-panded at an annual rate of 2.9%in Q2 amid rising investment andconsumer spending, data fromthe nat’l statistics office showed.Germany’s rebound has helpedpull the 17-member eurozone outof its longest recession since thecurrency bloc was formed in ’99.Eurozone consumer confidencerose 1.8points to -15.6, the Europe-an Commission said.

T E C H N O L O G Y

T H E N E W A M E R I C A

R E T A I L

Tecfidera is Biogen’s third product targeting multiple sclerosis.

INVESTOR'S BUSINESS DAILY MONDAY, AUGUST 26, 2013 3

B Y K E N H O O V E RINVESTOR'S BUSINESS DAILY

Business asset management software firmTangoeTNGO broke out of a long, deep base Fri-day on heavy volume.

The base goes back to May 2012, making it a65-week cup with handle that corrected 50%.

The stock trades an average of 351,000shares a day, which is on the thin side. Inves-tors should prefer stocks that trade at least400,000 shares a day because that is what biginstitutional investors will be buying. Theyavoid the thinner names.

Mutual and hedge fund ownership, howev-

er, is rising. In the second quarter, 206 fundsowned it compared to 190 the quarter before.But none of the top growth managers with out-standing long-term track records has it, a nega-tive.

An investor has to assume they’ve looked at itand taken a pass.

The base has a serious flaw. Between Janu-ary and March of this year, the stock attempt-ed to rise, then fell back near a low. That inter-rupted the smooth flow of the cup as it carvedout a bottom near 12.

The careful chart reader would note that asthe stock was rising on the right side of thebase, all but three of the past 18 weeks were up.And the second week, which was in the han-dle, closed in the upper half, a sign of solid buy-ing support.

A look at the daily chart reveals a major up-side reversal during that week in reaction to afavorable earnings report.

Strong FundamentalsTangoe has a Composite Rating of 99, the

best possible, and is in the Computer Software-Specialty Enterprise industry group, currentlyranked sixth out of 197 tracked by IBD.

It is the No. 1 company in that group rankedby Composite Rating and EPS Rating.

Earnings in the most recent quarter rose60% from a year ago, and sales rose 28%.

Tangoe’s return on equity is 16%, slightlybelow the 17% benchmark.

But pretax margins have been rising for thepast few years, from 5.5% in 2010 to 13.1% in2012.

Nasdaq Stocks in Spotlight YTD up 30.9%, NYSE Stocks in Spotlight YTD up 33.3%, S&P 500 up 16.2%

Stock Spotlight Analysis

Stock Spotlight screens for companies with strong earnings, sales and other fundamentals while in price bases or breaking out. Performance data from prior day.

ACTAVIS INC (ACT) Group 59 o$133.8999 Comp. Rating 98 EPS RS 88 ROE 21% 130.5M SharesDEVELOPS GENERIC AND BRANDED DRUGS FOR HYPERTENSION, EL-EVATED CHOLESTEROL, CONTRACEPTION, PAIN AND OTHERS.+33% Ann. EPS Gro PE 19 Avg. D. Vol 1,197,000 Debt 163%Last Qtr Eps +42%5 Prior Qtr +21%5 Last Qtr Sales +47%2 Qtrs EPS ) 15%Eps Due 11/1R&D 7%

Acc/Dis A-Sup/Demand 70

1% past 133.10 buy point from flat base.

RESTORATION HARDWARE HLD (RH) Group 21 o$70.3798 Comp. Rating 71 EPS RS 96 ROE 63% 28.1M SharesOPERATES 73 RETAIL STORES AND 12 OUTLET STORES OFFERINGHARDWARE, BATHWARE, FURNITURE AND LIGHTING+185% Ann. EPS Gro PE 56 Avg. D. Vol 726,900 Debt 179%Last Qtr Eps +250%5 Prior Qtr +21%6 Last Qtr Sales +38%4 Qtrs EPS ) 15%Eps Due 11/28

Acc/Dis B-Sup/Demand 86

Trying to move back above 10-week line.

TANGOE INC: (TNGO) Group 6 o$20.3199 Comp. Rating 99 EPS RS 88 ROE 16% 33.4M SharesDEVELOPS ON-DEMAND LIFECYCLE MANAGEMENT SOFTWARE FORENTERPRISE COMMUNICATIONS ASSETS AND SERVICES.+152% Ann. EPS Gro PE 33 Avg. Daily Vol 351,700 Debt 0%Last Qtr Eps +60%6 Prior Qtr +67%6 Last Qtr Sales +28%

Acc/Dis A-Sup/Demand 71

Breaks out from long, deep base on solid volume..

PRIVATEBANCORP INC: (PVTB) Group 38 o$23.7386 Comp. Rating 78 EPS RS 86 ROE 6% 63.2M SharesHOLDING CO FOR THE PRIVATEBANK AND TRUST OPERATING VIA 36OFFICES IN IL, GA, MI, MO, WI AND KS.+105% Ann. EPS Gro PE 19 Avg. Daily Vol 454,700 Debt 41%Last Qtr Eps +95%6 Prior Qtr +133%6 Last Qtr Sales +2%6 Qtrs EPS ) 15%Eps Due 10/10

Acc/Dis C+Sup/Demand 54

Trading in tight fashion for four weeks. May be building base..

ULTIMATE SOFTWARE GROUP: (ULTI) Group 14 o$144.1799 Comp. Rating 98 EPS RS 91 ROE 29% 26.2M SharesDESIGNS WEB-BASED PAYROLL AND WORKFORCE MANAGEMENTSOFTWARE FOR ORGANIZATIONS IN THE U.S. AND CANADA.+52% Ann. EPS Gro PE 108 Avg. Daily Vol 171,400 Debt 0%Last Qtr Eps +62%6 Prior Qtr +146%5 Last Qtr Sales +23%9 Qtrs EPS ) 15%Eps Due 10/30R&D 18%

Acc/Dis A-Sup/Demand 56

Extended from June breakout past 116.77 in flat base; thin.

SANMINA CORP: (SANM) Group 32 o$16.4990 Comp. Rating 90 EPS RS 94 ROE 12% 79.4M SharesCONTRACT MAKER OF PRINTED CIRCUIT BOARDS, ENCLOSURES,CABLE ASSEMBLIES AND PRECISION MACHINE COMPONENTS+3% Ann. EPS Gro PE 11 Avg. Daily Vol 577,400 Debt 87%Last Qtr Eps +54%5 Prior Qtr +11%5 Last Qtr Sales -4%1 Qtrs EPS ) 15%Eps Due 10/30

Acc/Dis B-Sup/Demand 60

Consolidating gains after substantial rally..

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4 MONDAY, AUGUST 26, 2013 INVESTORS.COM

I N C O M E I N V E S T O R

B Y P A U L W H I T F I E L DINVESTOR'S BUSINESS DAILY

A company that grows through acquisitionscan step up growth fast.

This has been the strategy at B&G FoodsBGS.It’s an approach that works especially well inan environment of low interest rates.

Just recently CEO David Wenner pointedout that the company issued $700 million of se-nior notes at 4.625%, which allowed B&G to re-tire its 7.625% senior notes.

Interest rates are rising, though, and manymarket watchers see that as a trend. Will thataffect B&G?

At the July 18 earnings call, Wenner said:“You have to be a little more cautious here asinterest rates start inching up.”

A second factor works in B&G’s favor on theacquisition front. B&G is small enough that ac-quiring a niche player can help B&G’s top andbottom lines.

The big players in the packaged food group— companies like UnileverUL and GeneralMillsGIS — generally don’t compete for thesmall targets. In fact, sometimes the business-es B&G acquires are orphan brands within thebig companies.

Competition typically comes from private eq-uity firms.

At a Boston conference in 2012, Wenner said,“We are very, very good at executing on acqui-sitions.” It’s not bragging if you can do it. B&Gtypically likes to grab companies or brands in asales decline and then turn them around “togenerate modest organic growth.”

B&G’s brands include Cream of Wheat, Orte-ga and Static Guard.

Hefty Dividend,Small StrategyWorking For B&G

LinkedIn, Questcor Rise

as a treatment for ALS, often referred to as LouGehrig’s disease, a degenerative diseasethat af-fects motor neurons.

When Questcor reported second-quarter re-sults in July, the company said it shipped 7,050vials of Acthar, up 50% from a year ago. Paidprescriptions rose 35%.

Elsewhere, LinkedInLNKD outperformedagain, rising 6.12 to 240.37 in light trade. De-spite a distribution week during the weekended Aug. 16, LinkedIn has held gains nicelyafter soaring 13% during the week ended Aug.2. The company recently announced it’s mov-ing into the teen market by setting up universi-ty pages where prospective college studentscan gather information.

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