Steven Bulwa submits:

While taking stock of the current year’s results, it is time to consider how to position for the coming year. 2010 was the year of the ‘Cloud,’ led by companies like Salesforce (CRM) and Vmware (VMW), stocks that both more than doubled over the year. Other hot sectors included rare earth, Chinese internet, online video streaming and burritos! Prices of cloud stocks now look sky high as do Chinese internet offerings; so which sectors and stocks will lead in 2011? Looking over the bulwatechreport.com new technology portfolio I have selected three areas and investments that should outperform in 2011 and beyond.

Stem Cells

Stephen Castellano submits:

• Toronto-Dominion poised to buy Chrysler Financial. Toronto-Dominion Bank (TD) is said to be close to buying Chrysler Financial for $6.3B, with a deal announcement possible as soon as today. Toronto-Dominion, Canada's second-largest bank, has spent C$20B ($19.9B) expanding in the U.S., and Canadian banks are looking to buy growth after emerging from the financial crisis relatively unscathed. A sale of the auto lender would come as a relief to owner Cerberus Capital Management which made a large bet on the auto industry shortly before the financial crisis hit and is looking to salvage what it can from its failed $7.4B investment in Chrysler. Update, 7:35 ET: Toronto-Dominion officially announces the acquisition, which will be a cash payment of approximately $6.3B.
• Royal DSM buys Martek. Royal DSM (RDSMY.PK) agreed to buy nutrition supplier Martek Biosciences (MATK) for $31.50/share in cash, or $1.09B, marking a 35% premium to Martek's closing price yesterday. Royal DSM, the world's largest maker of vitamins, expects the deal to be immediately accretive to annual earnings per share by €0.15-0.20. Royal DSM CFO Rolf-Dieter Schwalb said the company will continue to look for acquisitions, and has earmarked as much as €2.5B to spend on takeovers. In Amsterdam, Royal DSM +4.4%.
• Alpha Natural bids for Massey. Alpha Natural Resources (ANR) has reportedly made a bid for rival Massey Energy (MEE). Sources said ArcelorMittal (MT) and at least one other company are also interested, but Massey's board hasn't yet decided to start a formal auction process as it considers its strategic options. Massey chairman Bobby Inman said the company's directors "are not near a decision point" as to whether to sell the company or acquire another business.
• Rio Tinto makes fresh bid for Riversdale. Rio Tinto (RIO) has reportedly formalized a new, higher offer for Australian rival Riversdale Mining, and is now willing to pay A$16/share, or around $3.75B. Rio had previously offered A$15/share. Shares in Riversdale were halted today ahead of an announcement about a takeover, though some analysts believe Rio will ultimately end up in a join venture with Riversdale, not a merger, because of opposition from some of Riversdale's main shareholders. Premarket: RIO +2.2% (7:00 ET).
• Advantest, Verigy in merger talks. Advantest (ATE) is said to be in merger talks with rival semiconductor test systems maker Verigy (VRGY), and is trying to break up Verigy's proposed merger with LTX-Credence (LTXC). However, sources said that while Verigy is open to hearing Advantest's proposal, talks aren't going particularly well. Advantest had made a $12.15/share bid for Verigy earlier in the month, and at the time Verigy said the offer was inferior to LTX-Credence's.
• SEC probes Hurd's H-P departure. The SEC is reportedly investigating Mark Hurd's departure from Hewlett-Packard (HPQ), including claims he relayed information about HP's 2008 acquisition of Electronic Data Systems before the deal was announced. The SEC is also investigating Hurd's use of corporate expenses in his dealings with an HP contractor who subsequently accused Hurd of sexual harassment. Hurd is now the co-president of H-P rival Oracle (ORCL).
• FCC poised to vote for net neutrality. The FCC now has enough votes to adopt net neutrality rules when it puts the issue to a vote today. The rules aim to prevent phone and cable companies that control broadband connections from discriminating against certain kinds of web traffic, but even the FCC members voting for the new rules say they consider them too weak, a sentiment echoed by some public interest groups. Several large web companies, including Skype (EBAY), Amazon (AMZN) and Netflix (NFLX), have previously expressed reservations about the new rules as well.
• Wine units go up for sale. Brown-Forman (BF.A, BF.B), the maker of Jack Daniel's whiskey, has reportedly put its wine business up for sale, becoming the latest wine operation to hit the auction block as parts of the industry continue to struggle. A sale is unlikely to bring in much more than a few hundred million dollars, and it's possible only parts of the business will be sold. Separately, Constellation Brands (STZ) is close to selling most of its non-U.S. wine portfolio to an unknown buyer for what is expected to be between $300M and $400M.
• Wells Fargo agrees to mortgage mods in CA. California Attorney General Jerry Brown announced a settlement with Wells Fargo (WFC), in which the bank will provide loan modifications worth around $2.4B to California homeowners with "pick-a-payment" adjustable-rate mortgages. Wells Fargo will also pay an additional $32M to borrowers who lost their homes through foreclosure. Franklin Codel, CFO of Wells' mortgage unit, said he hopes the bank can ultimately reach an agreement with all fifty states.
• Mortgage lenders may face NJ foreclosure freeze. Six leading mortgage lenders may face a possible freeze on foreclosures in New Jersey after the state's Supreme Court set a January 19 hearing to address problems related to the handling of mortgage documents. The hearing will be attended by representatives from Bank of America (BAC), JPMorgan (JPM), Citigroup (C), Ally Financial's GMAC mortgage unit, Wells Fargo (WFC) and OneWest Bank. New Jersey is the first state to take action against improper foreclosures at the level of the state supreme court, and other states may ultimately follow suit.
• Hedge funds may escape Fed oversight. The Federal Reserve doesn't believe any single hedge fund can topple the financial system, said an industry source familiar with the Fed's thinking, and therefore the industry may escape direct supervision by the Fed. The Fed is part of the newly created Financial Stability Oversight Council, which is in the early stages of determining which non-bank firms are 'systemically important' and need more rigorous oversight. The Fed's view on the issue will carry significant weight with the council, and the suggestion that hedge funds may avoid the 'systemically important' designation is welcome news to the industry which has thus far managed to avoid the stricter controls imposed on mutual funds.
• SEC probes U.S.-listed Chinese firms. The SEC has reportedly begun to investigate Chinese companies listed on U.S. stock exchanges through reverse takeovers, after hundreds of Chinese companies gained a U.S. listing by merging with dormant shell companies. As part of the investigation, the SEC is targeting individual Chinese companies for accounting violations and lax auditing practices, and is also looking into how U.S. accountants, bankers and lawyers may have facilitated the process.
• AstraZeneca halts motavizumab development. AstraZeneca (AZN) has halted the development of motavizumab, a drug for the prevention of a respiratory infection. As a result, the company will take a $445M impairment charge in the fourth quarter, but the full-year earnings forecast will remain unchanged. The discontinuation isn't totally surprising, as the drug hit several regulatory obstacles earlier in the year. Premarket: AZN -0.3% (7:00 ET).

Earnings: Monday After Close

• Adobe (ADBE): FQ4 EPS of $0.56 beats by $0.04. Revenue of $1B (+33%) in-line. Shares +7% AH. (PR, earnings call transcript)
• Darden Restaurants (DRI): FQ2 EPS of $0.54 in-line. Revenue of $1.7B (+5.2%) in-line. Shares -2.6% AH. (PR)
• Jabil Circuit (JBL): FQ1 EPS of $0.61 beats by $0.07. Revenue of $4.1B (+32%) vs. $4B. Shares +4.6% AH. (PR, earnings call transcript)
• Paychex (PAYX): FQ2 EPS of $0.37 beats by $0.02. Revenue of $512M (+3.1%) vs. $511M. Shares +0.7% AH. (PR)

Today's Markets

• In Asia, Japan +1.5% to 10371. Hong Kong +1.6% to 22994. China +1.8% to 2904. India +0.9% to 20060.
• In Europe, at midday, London +0.7%. Paris +0.5%. Frankfurt +0.6%.
• Futures at 7:00: Dow +0.3%. S&P +0.3%. Nasdaq +0.2%. Crude +0.1% to $89.44. Gold +0.05% to $1386.80.

Tuesday's Economic Calendar

• 7:45 ICSC Retail Store Sales
  8:55 Redbook Chain Store Sales
• Notable earnings before Tuesday's open: CAG, CCL, CMC, KMX
• Notable earnings after Tuesday's close: CTAS, NKE, RHT, TIBX

The SA Currents team contributed to this post.

Miriam Metzinger submits:

Stocks discussed on the Lightning Round session of Jim Cramer's Mad Money TV Program, Monday December 20.

Bullish Calls:

Apple (AAPL): "I think it is marking time...it marks time before a big run. I still think the estimates are too low. I'm still not backing away from Apple."

Miriam Metzinger submits:

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday December 20.

Who's Right About Netflix (NFLX)? With Stocks Blockbuster (BBI), Amazon (AMZN)

The Dividend Guy submits:

What will be the best dividend stocks in 2011? Where will you put your money? Before the Holidays, I wanted to leave you with my thoughts on a number of different sectors. I am about to restructure my whole dividend portfolio during the holidays (I have plenty of growth, dividends and “gamble” stocks right now). This is why I am doing a review of each sector.

Basic Materials

Miriam Metzinger submits:

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday December 17.

CEO Interview: Sean Boyd, Agnico Eagle Mines (AEM)

Dividend Growth Investor submits:

Last week pharmaceuticals giant Pfizer (PFE) raised distributions for a second year in a row. The company raised its dividend by 11.10% to 20 cents/share. Pfizer cut its dividend in 2009 from 32 to 16 cents/share after it announced that it was acquiring rival Wyeth in a 68 billion dollar buyout. The company has tried to rebuild its history of consistent dividend increases over the past two years, which is a positive thing. Astute dividend investors however know that future dividend increases are supported by strong fundamentals. In Pfizer’s case, the company has a steep cliff of patent expirations on key drugs such as Lipitor in 2011 -2013. Lipitor, for example, accounts for 22% of revenues and its US patent expires in 2011. Analysts are expecting that cheaper generic drug substitutes to Lipitor would erode Pfizer’s market share, thus hurting profitability. Pfizer has been unable to bring in any significant blockbuster drugs to the market, which would have to compensate for the losses from generic competition after patents on existing drugs expire. Instead, the company has embarked on a series of acquisitions over the past decade, by purchasing Warner-Lambert in 2000, Pharmacia in 2003 and Wyeth in 2009.

These acquisitions have resulted in major cost synergies, but in no new drugs on the market. In Pfizer’s defense, in order for a new drug to appear on the market, there is a long and expensive process coupled with several FDA approvals. This being said, I would keep monitoring Pfizer’s business conditions, in order to be prepared to add it to my portfolio once it shows a decisive turnaround.

Brandon Matthews submits:

By Brandon Matthews

There is a simple truth when it comes to Sirius XM Radio (SIRI). Had it not been the victim of an illegal naked short selling scheme three years ago, its stock today would be worth significantly more than it currently is. The scheme cost investors tens if not hundreds of billions of dollars. Many investors lost everything, and developed an ill will towards the company as a result. Sirius XM continues to heal from the wounds that were inflicted. Thanks to Patrick Byrne of Overstock.com, we now have suggested evidence of an actual conspiracy that took place, by the biggest and most trusted names on Wall Street.

Reed Hastings submits:

A great investor and a wonderful human being, Whitney Tilson recently posted an article about why he is short Netflix (NFLX). Whitney, who is a major co-donor with me to charter public schools like KIPP, writes that he has lost money betting against Netflix, and that he is still short Netflix in a big way.

At Netflix we mostly focus on building our business and letting the numbers do the talking. But Whitney is such a big-hearted donor to causes that I care about that I am writing this open letter for him to try to get him to cover his short now. My desire is to increase his odds of making money next year so he can donate even more to the charter public schools that we both think are important to our country’s future. For the record, I think short sellers are a positive force in capitalism, and I acknowledge that CEOs are generally biased in their bullishness on their respective firms.

Morningstar submits:

Energy and Capital submits:

By Nick Hodge

You can't argue against the fact that First Solar (NASDAQ: FSLR) is a juggernaut.

Miriam Metzinger submits:

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Friday December 17.

Novagold Resources (NG), Agnico Eagle Mines (AEM), AT&T (T)

Miriam Metzinger submits:

Stocks discussed on the Lightning Round session of Jim Cramer's Mad Money TV Program, Friday December 17.

Bullish Calls:

Macy's (M): "I think TJX is just okay... I prefer Macy's...Macy's is number one."

Portfolioist submits:

By Nanette Byrnes

A few weeks ago, Mel Lindauer expressed his worry that the super-low yields offered by bonds these days have people considering a questionable move: switching money out of bonds and into dividend-bearing stocks in a search for more income. "People look around and there's nowhere to turn," said Lindauer of the fixed income market. "I’m really concerned. I’m concerned that people are talking about possibly going into equities to get the 2.5% yield and forgetting about the risks in equities."

Vitaliy N. Katsenelson, CFA submits:

Updated for 2010 and in time for the holidays, here is the latest installment of my recommended books. I originally wrote this list in 2008 and again last year. I intend to keep adding to and revising it every year. It contains seven sections: Selling, Think Like an Investor, Behavioral Investing, Economics, Stock Market History, Risk and Books for the Soul. I hope you enjoy it.

In these crazy times, all one could ask for is sanity. Yes, sanity – a clear mind, free of noise, with which to face the insanity that the volatile, noisy stock market thrusts upon us. We find ourselves glued to our computer screens or CNBC, waiting to find out what the Dow’s next tick is going to be. What do we get out of it? Only a headache and wasted time.