Did AIG Just Lose Its Title As Top Hedge Fund Darling?

One of the big headlines earlier this year involved American International Group's (NYSE: AIG  ) ascension to the top spot among hedge fund holdings. Knocking the reigning darling (Apple) from its top spot, the insurer was put back in the spotlight as it made strong headway in its recovery. But with the most recent quarter's 13F-HR filings showing that some hedge funds have exited their position in the company, is it safe to say that AIG's reign is over?

Making moves
Every quarter, investment managers with over $100 million in qualifying assets have to report their holdings to the SEC. It's in these reports that investors and analysts can tally the changes in holdings from period to period. As of year-end 2012, AIG was the top holding for hedge funds, with more coming on board.

But the most recent filings show that at least four prominent names on Wall Street have either significantly reduced their holdings or exited their positions in AIG completely:

Name	Q1 2013 Reduction	Ending Position
Soros Fund Management LLC	66%	2.89 million shares
ThirdPoint LLC	27%	13.5 million shares
Appaloosa Management LP	29%	4.3 million shares
Jana Partners LLC	100%	n/a
Moore Capital Management LP	100%	n/a

Source: Bloomberg. 

With names like George Soros, David Tepper, and Louis Moore Bacon taking money out of the insurer, some might think that it signals an end to the rally AIG has been enjoying so far this year.

Up 23.99% since the beginning of the year, AIG has certainly been on a good run. With its operations running smoothly, cost reductions pushing revenues through to the bottom line, and management carefully assessing their next moves, the company is almost back to full speed. But if the hedge funds are moving away from the company, that may signal their belief that the best has already been had.

Losing out
But if you look at AIG since the end of March, by which time the hedge funds had already cut their holdings, you can see that the stock has gained 18.31%. The company's stellar first-quarter earnings were largely responsible for that share price growth, and more is yet to come.

The company has yet to reinstate its dividend or announce a share buyback plan, both of which may be other reasons the funds bowed out. But with the company performing well and management assuring that those capital disbursements are in the works, it's a wonder the money managers would miss out just because they had to wait a bit longer.

With the stock still trading below tangible book value, some other big names in value investing have increased their holdings with AIG -- namely Bruce Berkowitz and Seth Klarman. Berkowitz has been invested in the insurer since before it was cool -- you might say he's the original AIG hipster -- with projections that the holding for his Fairholme Fund would quadruple in the next five to seven years. Klarman is the manager of Baupost Group LLC, a Boston-based hedge fund firm, who is also a value investor. Both increased their holdings of the insurer, along with BlackRock (the world's biggest asset management firm) and the Vanguard Group (the No. 1 U.S. mutual fund company).

In the end...
You need to believe in the investment thesis you've developed for AIG. Since the company is well on its way past recovery mode, if you think it's too late to join in on the gains, then you should make sure to reassess and act on your results. Otherwise, if you're invested in AIG, the upcoming dividend and share buybacks (though no timing is set in stone yet) may yield you further gains if you're patient. But since you're a Foolish long-term investor, that shouldn't be a problem, right?

At the end of last year, AIG was the favorite stock among hedge fund managers. Have they identified the next big multi-bagger, or are the risks facing the insurance giant still too great? In The Motley Fool's premium report on AIG, Financials Bureau Chief Matt Koppenheffer breaks down the key issues you need to know about if you want to successfully invest in this stock. Simply click here now to claim your copy, and you'll also receive a full year of key updates and expert analysis as news continues to develop.

A New, Slightly Different Robo-Signing Scandal

Robo-signing is in the news again, and in a big way. For one thing, the New York Attorney General's office is suing Bank of America (NYSE: BAC  ) and Wells Fargo (NYSE: WFC  ) for allegedly failing to follow the conditions of the $26 billion settlement over shabby foreclosure practices, which featured the mindless signing of foreclosure documents.

The second thing is just as odious: Banks have apparently been using the same robo-signing techniques in the collection of credit card debt -- and further investigation may find other credit card issuers are involved, too.

Robo-signing, "sewer service"
The Attorney General's office announced late last week that it is bringing charges against JPMorgan Chase (NYSE: JPM  ) for using a slew of illegal maneuvers to wring non-existent debt from at least 100,000 credit card users in California. Among the dastardly procedures used by JPMorgan, the AG's office alleges, are the famous robo-signing of fraudulent documents, while neglecting to notify targeted consumers of the fact that they were being sued -- a tactic known as "sewer service."

Regulators have been eyeballing JPMorgan for some time now, ever since the Office of the Comptroller of the Currency got wind of these shenanigans from former employees. Those involved noted discrepancies such as computer databases showing different card balances than the bank was alleging, and work of dubious quality by the outside attorneys used in the debt collection process.

Last summer, The New York Times published a story about this very issue, noting that Citigroup (NYSE: C  ) , American Express (NYSE: AXP  ) , and Discover Financial were also being scrutinized for similar behavior. The accounts of consumers being sued for amounts that they claim they do not owe are harrowing, particularly since the article notes that, in credit card cases at least, many defendants don't show up in court -- resulting in an automatic win for the credit card issuer. Considering the fact that JPMorgan is accused of being remiss in notification of these suits, it's no wonder consumers aren't defending themselves.

A far-reaching problem
Doubtless, this is just the tip of the iceberg, with sanctions against Citi, American Express, and Discover sure to follow. Bank of America is likely to get tagged, as well: American Banker noted early last year that B of A sold credit card debt acquired with its MBNA purchase to a collection agency back in 2009 and 2010, even though there was evidence that the debt had dicey paperwork attached.

The U.S. Census Bureau estimated that approximately 160 million citizens used credit cards last year, and Nerdwallet notes that indebted households chalked up over $15,000 of their overall debt to credit cards. Obviously, this type of problem has the potential to touch many more consumers than did the mortgage fraudclosure scheme.

Banks aren't doing a very good job of regaining Americans' trust, and this brewing scandal certainly won't help. I would include investors in that group, as well, as many might feel increasing discomfort with the notion that some of their bank's profits are acquired in this manner. I know I would.

Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.

How Cheap Will Apple's "Cheaper" iPhone Be?

As Apple's (NASDAQ: AAPL  ) growth has tapered off during the past several quarters, analysts have turned their attention to rumors of a "low-cost iPhone." The smartphone industry still has tremendous growth ahead of it, but most of this growth will be in the low end of the market (phones that cost $200 or less unsubsidized). However, Apple's "entry-level" iPhone 4 sells for $449 unsubsidized in the U.S., which places it in the high-end smartphone category.

By contrast, Samsung (the clear leader in Google's (NASDAQ: GOOG  ) Android ecosystem) has a strong position in high-end smartphones, but it also has a substantial presence in the low-end market. The growth of mid-range and low-end smartphones has driven an explosion in Android's market penetration in the past few years. If Apple wants to reignite growth, it will need to expand its reach beyond high-end smartphones.

There are many open questions about what Apple's low-cost iPhone might look like, but the big question for shareholders is how the release of a cheaper iPhone will affect Apple's earnings (and thus, its stock price). This, in turn, depends heavily on what Apple decides to charge for the new iPhone. If the price is too low, it will have low margins and will also cannibalize sales of more expensive, higher-margin iPhones. On the other hand, if the price is too high, Apple won't be able to gain much market share. I believe that Apple will err on the high side in terms of pricing, targeting the mid-range smartphone market with a $329 or $349 price point.

The background
Apple reportedly considered introducing a low-cost iPhone as early as 2009. However, rather than building a separate, cheaper iPhone, the company decided to use older iPhones as entry-level models. Nevertheless, by early 2013, most Apple-watchers expected the company to launch a new low-cost iPhone soon, perhaps as early as this year. On Thursday, leaked photos of what could be a prototype low-cost iPhone made their way around the Internet. According to the site that originally posted the photos, this new device will have a plastic case and will share many components with the iPhone 4 and iPhone 4S.

The iPhone 4S, Apple's middle-tier offering. Photo: Apple.

According to a teardown analysis by IHS iSuppli, the total manufacturing cost of the iPhone 4S was $196 as of October 2011. That included the cost of all components and manufacturing, but not the cost of software, logistics, or patent licenses. Component prices have dropped since then, and Apple would save money by moving from an aluminum case back to plastic, as has been rumored. That said, CEO Tim Cook has adamantly stated that the company will not compromise product quality, so there is a limit to how low Apple's production costs can go. It seems possible that Apple could reduce its all-in cost to $150 or $160, but probably not much lower than that.

Hitting a price
If Apple won't be able to meet its high quality standards for less than $150 (including all manufacturing, licensing, and logistics costs), the company won't really participate in the "low-end" smartphone market, per se. One well-known Apple analyst, Piper Jaffray's Gene Munster, predicted earlier this year that Apple would introduce a $199 iPhone this summer. However, it's highly unlikely that Apple would sell a device so close to the cost of production. Resellers would also get a cut of the purchase price, leaving Apple with only $175-$180 in net revenue.

Munster recently revised his expectation and now believes that the cheaper iPhone will cost $300. However, even at that price, he expects it to "cannibalize" high-end iPhone sales. In other words, some customers who would otherwise pay up for a $449 iPhone 4 -- or an even more expensive device -- will choose the cheaper iPhone. Since the iPhone's current average selling price is more than $600, and gross margin is generally estimated above 50%, Apple earns more than $300 of profit per iPhone sold (on average). If Apple makes only $100-$120 in profit per device for the cheaper iPhone, heavy cannibalization could cause the company's earnings to shrink even if iPhone sales grow significantly.

The solution
A potential solution to this conundrum would be to price the new iPhone a little higher, at perhaps $329 or $349. That would still be significantly cheaper than the iPhone 4, and it would place the new iPhone solidly within the mid-range segment. Apple has historically focused on "aspirational" products, and a $329 or $349 price point would be within reach for many customers, while protecting Apple's profits. As my Foolish colleague Evan Niu noted earlier this month, a trade-in program in India that reduced the effective cost of the iPhone 4 from $485 to $360 (or less) caused sales to triple. That suggests that a $100-$150 price drop could have a surprisingly large impact on sales in developing markets.

In other words, I expect Apple to follow a strategy similar to its iPad Mini pricing strategy. Many observers expected Apple to fight Amazon.com's (NASDAQ: AMZN  ) $199 Kindle Fire (now $159) with a tablet priced as low as $249; instead, the base iPad Mini costs $329. Despite the big price gap, Apple couldn't keep the iPad Mini on store shelves during the holiday season because of overwhelming demand, while Kindle Fire sales growth was fairly muted. Apple offers a differentiated user experience, and people will pay more -- up to a point -- for its products. Therefore, $329 or $349 seems like the ideal price point for a cheaper iPhone.

Foolish conclusion
Apple hasn't even confirmed that it will make a cheaper iPhone yet. Nevertheless, it seems inevitable that this product is on the way in the next year or so. It may not be quite as cheap as some analysts expect, but that shouldn't hurt sales very much. If Apple can offer an iPhone at a mid-range price point while also adding major new carrier partners such as China Mobile (NYSE: CHL  ) , the company will probably return to solid earnings growth. With Apple stock having recently fallen below $400, the shares look like a great value in that scenario.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

Obama Proposes Publicly Funded Community College for All

AP KNOXVILLE, Tenn. -- President Barack Obama on Friday proposed to bring the cost of two years of community college "down to zero" for all Americans, an ambitious nationwide plan based on a popular Tennessee program signed into law by that state's Republican governor. However, the idea and its $60 billion federal price tag over 10 years would have to make the grade with a Republican Congress that is showing little appetite for big new spending programs. Obama, who plans to push the issue in his Jan. 20 State of the Union address, argued that providing educational opportunity and creating a more skilled U.S. workforce shouldn't be a partisan issue.

Community college should be free for those willing to work for it because, in America, a quality education should not be a privilege that is reserved for a few.

"Community college should be free for those willing to work for it because, in America, a quality education should not be a privilege that is reserved for a few," he said in a speech at Pellissippi State Community College. He said a high school diploma is no longer enough for American workers to compete in the global economy and that a college degree is "the surest ticket to the middle class." The White House estimated that 9 million students could eventually participate and save an average of $3,800 in tuition a year if they attend full time. Students would qualify if they attend at least halftime, maintain a 2.5 grade point average and make progress toward completing a degree or certificate program. Participating schools would have to meet certain academic requirements. At North Lake College, part of the Dallas County Community College system, student Courtney Banks said such a program would help her and also allow others to enroll in classes. "Other people, other young adults would be willing to get into school because it wouldn't be so far out of reach," she said. She added she's still trying to pay back loans from a previous school. "It costs a lot of money," she said. The White House said the federal government would pick up 75 percent of the cost and the final quarter would come from states that opt into the program -- a cost of $20 billion over 10 years. Spokesman Eric Schultz said Obama will propose new programs to pay for the federal portion in his budget next month. 'America's College Promise' Obama is calling the idea America's College Promise, modeled after Tennessee Promise, which Republican Gov. Bill Haslam signed into law last year to provide free community and technical college tuition for two years. It has drawn 58,000 applicants, almost 90 percent of the state's high school seniors. Chicago Mayor Rahm Emanuel, Obama's former White House chief of staff, has a similar program for students in his city. "If a state with Republican leadership is doing this and a city with Democratic leadership is doing this, how about we all do it," Obama said. Obama brought Tennessee's two Republican senators, Bob Corker and Lamar Alexander, with him on Air Force One for the event. But both said they thought states, not the federal government, should follow Tennessee's lead. "Creating a federal program to me is not the way to get good things to happen in education," Corker told reporters from his seat in the third row of the speech. "You're always better off letting states mimic each other." Alexander, a former education secretary who is set to take over the Senate committee that oversees education, said Washington's role should be to reduce paperwork for student aid applications. Obama said he agrees and wants to see that happen this year. Obama also was joined on the trip by Vice President Joe Biden and his wife, Jill Biden, who drew applause when she told the audience she's been teaching English at community college for 20 years and still does as second lady. "This is the moment for community colleges to shine," she said. The president and vice president also were visiting a manufacturing facility, Techmer PM in Clinton, Tennessee, to promote a second proposal to create a fund to help low-wage workers with high potential get training in growing fields such as energy, information technology and advanced manufacturing. . Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
•Market Wrap: Stocks Slip on Weak Wage Growth, Oil Price Slump •Market Wrap: After Rough Start to '15, Stocks Bounce Back •Mortgage Rates Hit New Lows, but Buyers Remain Hesitant

Verizon Communications Inc. Posts Higher Profits, but Misses EPS Estimates (VZ)

Before Tuesday’s opening bell, Verizon Communications Inc. (VZ) reported increased third quarter results, which was primarily due to an increase in subscribers in its wireless business. Despite the upside in earnings, the company was unable to meet analysts’ expectations for EPS.

VZ’s Earnings in Brief

Verizon reported third quarter earnings of $3.70 billion, or 89 cents per share, up from $2.23 billion, or 78 cents per share a year ago. Revenue rose 4.3% to $31.59 billion, from $30.28 billion last year. On average, analysts expected to see earnings of 90 cents per share and $31.58 billion in revenue. During the quarter, the company added 1.5 million new subscribers to its wireless service, beating analysts’ estimate of 1 million new subscribers.

CEO Commentary

Chairman and CEO Lowell McAdam commented: “We have great confidence heading into the fourth quarter, as Verizon continues to deliver consistently strong operating and financial results. We see continued, healthy customer demand for wireless and broadband services, and we are encouraged by the growth we are starting to see in the areas of video delivery and machine-to-machine. Our cash generation remains strong.”

VZ’s Dividend

Verizon will pay its next 55 cent dividend on November 3. The stock went ex-dividend on October 8.

VZ Dividend Snapshot

As of market close on October 20, 2014

Click here to see the complete history of VZ dividends.

Verizon shares were down 48 cents, or 0.99% during premarket trading Tuesday. The stock is down 1.38% YTD.

Why You Should Go For Western Digital

The capacity drive industry is a duopoly with Western Digital (WDC) and Seagate Technology (STX) leading the way. Both organizations were on an equivalent balance a year ago with a 43% offer of the hard-plate drive, or HDD market. In any case, Western Digital has hurried ahead with a 45% offer, while Seagate lingers behind with 40% of the business sector. Also focused around a couple of basic presumptions, I think this hole could enlarge further.

Contrast in execution

The PC business is decaying, so both Western Digital and Seagate are relied upon to see shortcoming in their businesses. In the past, both organizations were reporting marvelous development in their financials as the surges in Thailand limited supply. Be that as it may now, both capacity organizations reported a decrease in profit and income in their separate quarters.

Then again, it appears Western Digital is the particular case that's improving in a frail nature's domain. In its last reported second from last quarter, Western Digital's income was down only 1.6% year over year, while profit dropped 4%. In comparison, Seagate's income dropped 3.4% and profit fell 5%.

Contrast in essentials

A more critical take at the two monetary records likewise demonstrates Western Digital's prevalence. The organization has more money and lower obligation, with figures of $4.9 billion and $2.5 billion, individually. Thus, Western Digital's obligation is practically 50% of the measure of money. The story is the inverse for Seagate, which has obligation of $3.5 billion and money of $2.3 billion. Additionally, Western Digital's working money stream for the most recent year remains at $2.8 billion, better than Seagate's $2.4 billion.

Hence, Western Digital has a stronger accounting report and produces more money. Additionally, a lower measure of obligation implies that it need to endure lower investment costs. The organization right now yields 1.9% with a payout degree of 25%. Seagate has a higher profit yield of 3.3%, yet it has a higher payout proportion of 36%. Along these lines, Western Digital looks the more probable of the two to build the profit at a speedier rate since it is in a finer budgetary position.

Endeavor business

Western Digital is forcefully concentrating on tapping the undertaking business sector. Its venture class strong state drives, or SSDs, are seeing solid interest from clients. Along these lines, the organization is centered around growing its scope of big business SSD items - for example, SAS, Pcie, and SATA - with diverse structure variables and limits.

Western Digital's 6 TB-helium filled drive is constantly sent in volumes to a few unique gear makers over the globe. Then again, Seagate's 6 TB endeavor drive was presented in the last quarter. It's relied upon to addition force in the second a large portion of the year, when venture cloud clients embrace higher-thickness drives.

Nonetheless, Seagate has fallen behind Western Digital in this business, as the latter is seeing

Tesla Motors, Inc. Model S: Still the Safest Car on the Road

The media seems to love to cover Tesla (NASDAQ: TSLA  ) accidents. As Tesla has pointed out, several high-speed accidents that resulted in electric-car battery fires sparked more national media coverage in 2013 than the 200,000 gasoline car fires in North America during the same period. Until now, Tesla has also been able to point to the fact that there have been no deaths or serious injuries of any kind in the Model S. But the automaker (sort of) lost its bragging rights to this important streak due to a July 4 accident.

The fully electric Model S gets up to 265 miles on a full charge. Image source: Tesla Motors.

A senseless tragedy
The incident began when Joshua Slot stole a Model S from a Tesla service center in Los Angeles, according to news reports. Police began a high-speed pursuit. Though officers eventually gave up on the chase, Slot reportedly continued traveling at speeds around 100 mph, eventually colliding with three other vehicles and two street poles.

The Model S ended up split in two, with its battery ablaze. Because he wasn't using a seat belt, the driver was ejected. In critical condition, he was rushed to the emergency room. Slot died on Monday, July 7. Five other people were injured during the incident.

There is clearly nothing Tesla could have done to prevent this accident from happening.

While the statistic that the odds of a fire in a Model S are five times lower than those for the average gasoline car likely still holds true, Tesla can no longer boast a fatality-free track record for the car. But as The Verge pointed out, "few people will be pointing fingers at the electric car maker for this senseless tragedy."

The safest car ever built
Despite the severity of this incident, Tesla investors should continue to ignore reports of Model S accidents and battery fires. With about 50,000 of the vehicles on the road now, accidents are inevitable. Will we see headlines for Model S flat tires next?

Tesla's "frunk," which allows for a larger crumple zone, is one of the reasons for the Model S' unprecedented safety rating. The motor, which measures just about a foot in diameter, is seated on the rear axle. The frunk wouldn't be possible if the car were not electric. Image source: Tesla Motors.

Safety is a strong point for Tesla. In fact, the National Highway Traffic Safety Administration, which tests every vehicle sold in the U.S., concluded that that the Model S is the safest car ever. Based on the rating provided to manufacturers, the Model S' score even exceeded the safety scores of all SUVs and minivans.

If anything, Tesla's safety record (even after this recent tragedy) is a reason to hold on to the stock, not a reason to sell.

How to invest in a new, revolutionary vehicle technology
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.

Can enough money buy you eternal youth?

NEW YORK (CNNMoney) A bath in donkey's milk, the blood of children, tortoise scrotum soup -- the list of anti-aging treatments goes back centuries.

No need to go that far.

It turns out, the best kind of anti-aging treatment is inside one's own body, and the rich are taking advantage of it, exploring the latest research in new technologies, genome mapping and stem cell treatments.

Among them is Oracle billionaire Larry Ellison, a large investor of the Ellison Medical Foundation, which supports research exploring the biology that underlies aging and age-related diseases. And there's billionaire Peter Nygård, who says he wants to live forever (or die trying), and has suggested he's found the keys to immortality in stem cell research.

Some doctors agree that stem cells are a key part of chasing youth.

"If you're a wealthy guy and haven't stored your stem cells, I think you're a total idiot," said Dr. Lionel Bissoon, a New York City physician who sees a number of stressed out, wealthy patients.

They usually come to him with similar problems: "Fatigue, belly fat, erectile dysfunction, tiring very quickly ... all very common with my patients from Wall Street," Bissoon said. The short-term solution to those ailments, he says, is testosterone replacement -- which is relatively affordable at a few hundred dollars a pop -- and IV nutrition.

For the long term he recommends stem cell storage, which works as a sort of rainy day insurance. The cells are extracted, preferably when the patient is on the younger side -- around 30 is said to be a good age -- and can then be used to boost an immune system or help to rebuild damaged organs later.

Dr. Dipnarine Maharaj stores cells at his South Florida Bone Marrow Stem Cell Transplant Institute in Boynton Beach, Fla.

"People are looking! and finding ways to be able to help them to live longer to spend the money they've earned," he said. "They spend their retirement going doctor to doctor, and if we can find ways to prevent that it would be good." His clinic sees executives under a lot of stress, a fast way to damage any immune system.

He agrees that it's important to store cells before they become irreparably damaged. To collect and store stem cells at his clinic costs $15,000 for the initial extraction, which includes a year of storage. After that, storage costs $50 per month.

Stem cells aren't the only high-end solution.

Earlier this year, Malaysian billionaire Tan Sri Lim Kok Thay reportedly became one of the initial financial backers of a new genomics and cell therapy technology company called Human Longevity, dedicated to tackling age-related diseases and expanding the human life span.

Another company, Singapore-based Scéil, says it's the first to transform human cells into nearly any tissue type in the body.

"This technology has the potential to reverse, or even cure diseases and repair damaged tissues of your body," the company told CNNMoney in an email. Scéil attempts to obtain "a complete backup" of your genome from a skin sample and stores it for future use. The program costs $60,000 plus storage fees of $5,000 for 10 years, or $25,000 for a lifetime.

"The aging process can be manipulated," said Sonia Arrison, author of 100 Plus: How the Coming Age of Longevity Will Change Everything, From Careers and Relationships to Family and Faith. "We're just at the beginning. There really is going to be a revolution ... it's going to be possible and not crazy at all to have a human life expectancy of 150 years."

She said that it's already possible to use 3D printers to construct organs, and that process will only get faster and more accessible.

But all that advancement won't be available to all -- at least not at first. "Obviously the rich will get it fi! rst," she! said, comparing 3D printed organ availability to cell phones, which were once cost prohibitive to the masses. Now, six billion of the world's seven billion people have one, according to a U.N. study.

"It's how long is the timeline between the rich getting it and the poor getting it," she said.

Dr. Anthony Atala, who runs the Wake Forest Institute for Regenerative Medicine in Winston-Salem, N.C., is committed to making sure those outside the 1% get fair access to such technologies, so that "printing" organs on demand becomes something everyone can do.

"Part of the automation is making sure we lower the cost of these technologies," he said.

Why are oil prices rising?

LONDON (CNNMoney) The Islamist advance this week across northern Iraq has yet to have a major affect on the country's oil exports, so why are world prices rising?

Oil experts say the 4% price spike since June 6 -- which has taken a barrel of crude to $107 for the first time since September 2013 -- is being driven by fear that exports could be hit later this year, just as world demand peaks.

An al Qaeda splinter group occupied Iraq's second biggest city -- Mosul -- earlier this week and has pushed on towards the capital, Baghdad. The group is trying to establish an Islamic state straddling the Iraq-Syria border.

Attacks by insurgents had already shut off exports from Iraq's northern oil fields in early March, but it's the threat they could post to exports from the south -- the heart of the country's oil industry -- that's worrying traders.

"The driver [of prices] has been, what if they get to the south, which is where the bulk of Iraq's production and exports are, and what if we see disruptions there?" said Amrita Sen, chief oil analyst at Energy Aspects.

"Seasonally we are coming to the peak demand period. We know that Libya is already off line and this is why there is such impetus for an upward movement in oil prices now," she told CNN.

Demand tends to peak as U.S. and European drivers guzzle gas on their summer vacations, and then as refineries ramp up heating oil output before winter.

Libyan supplies have collapsed to about 100,000 barrels per day, from 1.4 million a year ago, as rebels occupied oil fields and major export terminals.

Iraq, which has the world's fourth largest reserves of oil, produces about 3.3 million barrels a day, making it the second biggest producer in OPEC after Saudi Arabia. Exports were running at about 2.5 million barrels per day in April.

A surge in production by non-OPEC nations, including the United States, and increased output by Saudi Arabia -- the oil market's "central banker" -- has made up for the shortfall from Libya and northern Iraq, helping markets cope with a modest acceleration in demand growth in 2014.

Still, the dependence on OPEC oil will rise later this year, according to the International Energy Agency.

The Paris-based oil market monitor said Friday it expected global demand in the second half of 2014 to average 2 million barrels per day ! more than in the first half. Demand would peak at about 94 million barrels per day in the fourth quarter.

OPEC will need to supply nearly 31 million barrels per day, one million more than the cartel's production target for 2014, which oil ministers reiterated as recently as Wednesday.

"Given that Libya is pretty much offline ... the only country that has spare capacity to meet any rise in demand is Saudi Arabia, which would have to increase production in any case in Q3," said Sen.

"If you get any supply disruption in Iraq, that is going to be the challenge for the market --- how does it counteract that?"

  Fleeing Syrians boost Iraq's economy

The IEA says 60% of the growth in OPEC crude production capacity for the next five years will come from Iraq, underscoring the risks to oil supplies in the medium term if the insurgency spreads to other parts of the country and deters foreign investors.

Sen said production was likely to fall back slightly this year as international oil companies begin to pull some of their staff out of the country because of the rising threats to their security.

Google rolling out its own driverless car

RANCHO PALOS VERDES, Calif. — Google is building a fleet of electric-powered self-driving cars that it plans to begin testing by the end of the year.

The technology giant plans to test the compact two-seat vehicles with safety drivers, Google co-founder Sergey Brin said in an interview on Tuesday night.

Brin says the cars are part of Google's effort to reengineer transportation.

"What I'm excited about is how we could change transportation today," Brin said. "If you look at people who are too old, too young, or disabled, and can't get around, that's a big challenge for them."

Google plans to build 100 to 200 prototypes.

The next stop on the road to a self-driving car http://t.co/gniIr42rmQpic.twitter.com/AkpLOpMWWB

— A Googler (@google) May 28, 2014

The Google cars do not have a steering wheel, brakes or gas pedal but come equipped with sensors and software designed to help them steer clear of accidents. The driver has a button he or she can push to stop the car in case of emergency. The cars can't go any faster than 25 miles per hour.

"We took a look from the ground up of what a self-driving car would look like," Brin said at the Code conference.

In this Sept. 2012 file photo, Google co-founder Sergey Brin gestures after riding in a driverless car with California Gov. Edmund G Brown Jr., left, and state Senator Alex Padilla, second from left, to a bill signing for driverless cars at Google headquarters in Mountain View, Calif. The California Department of Motor Vehicles on Tuesday, March 11, 2014, held a public hearing to solicit ideas on how to integrate driverless cars, sometimes called "autonomous vehicles," onto public roads.(Photo: Eric Risberg, AP)

It's unclear if Google! plans to manufacture the cars or if it will decide instead to supply the technology to carmakers. But Brin said he's hopeful regulators will agree that cars can operate safely without a driver.

So far the cars have operated without incident, Brin said. They have two feet of foam on the front and use glass instead of plastic.

Stocks Hitting 52-Week Lows

Related MDCO Mid-Morning Market Update: Markets Gain; Ford March Sales Rise 3% Morning Market Losers Related NRX Stocks Hitting 52-Week Lows

The Medicines Company (NASDAQ: MDCO) shares touched a new 52-week low of $24.17 after the company provided an update on Angiomax patent litigation.

NephroGenex (NASDAQ: NRX) shares reached a new 52-week low of $6.67. On Monday, NephroGenex posted a full-year net loss of $6.3 million, or $19.71 per share.

Bio-Path Holdings (NASDAQ: BPTH) shares declined 5.66% to touch a new 52-week low of $2.50. Bio-Path shares have jumped 349.15% over the past 52 weeks, while the S&P 500 index has gained 19.24% in the same period.

Akers Biosciences (NASDAQ: AKER) shares reached a new 52-week low of $3.85. Akers Biosciences' trailing-twelve-month ROE is -41.12%.

Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Plug Power - Getting Charged Up To Rally? Barron's Recap: Bad News For Putin The Future Of Marijuana Policy: Northwest Prana Biotech Announces Preliminary Reults of Phase 2 IMAGINE trial of PBT2 UPDATE: Whole Foods Acquires Four Stores From New Frontiers Bank of America Reiterates Underperform on 3D Systems and Lowered PT on Lower LT Margin Related Articles (BPTH + AKER) Stocks Hitting 52-Week Lows Stocks Hitting 52-Week Lows Around the Web, We're Loving...

Hong Kong stocks edge lower; Cinda soars on debut

LOS ANGELES (MarketWatch) -- Hong Kong stocks started modestly lower Thursday, tracking broad weakness in Asia, with mainland Chinese banks mixed after the release of November lending data. The Hang Seng Index (HK:HSI) lost 0.2% to 23,288.02, while the Hang Seng China Enterprises Index fell 0.4%. However, the Shanghai Composite (CN:SHCOMP) added 0.1% to 2,205.39 in choppy trade that saw it swing between positive and negative territory. Mainland Chinese banks saw mixed reaction after data showed new yuan-denominated loans rose to 624.6 billion yuan ($102 billion) in November, more than 100 billion yuan above the year-earlier figure and beating market forecasts of between 560 billion yuan and 580 billion yuan, according to the XInhua news agency. Among the top banks, Bank of China Ltd. (HK:3988) (BACHY) was up 0.3%, Bank of Communications Co. (HK:3328) (BKFCF) rose 0.2%, Agricultural Bank of China Ltd. (HK:1288) (ACGBF) traded flat, and Industrial & Commercial Bank of China Ltd. (HK:1398) (IDCBF) fell 0.6%. Shares of Aluminum Corp. of China Ltd. (HK:2600) (ACH) lost 0.7% after saying it could see a drop of up to 37% in output from a key Peruvian copper mine. Angang Steel Co. (HK:347) (ANGGF) , however, rose 1.1% after Citi raised its rating to buy from sell, while China Southern Airlines Co. (HK:1055) (ZNH) added 0.7%, with Kim Eng Securities citing news the carrier would add 6,700 flights to handle the Chinese New Year travel rush. China Cinda Asset Management Co. (HK:1359) , founded as a so-called "bad bank" to buy up trouble assets, jumped almost 21% in its first day of trade on the Hong Kong stocks exchange.

Read the full story:
Asia stocks mostly lower with Fed in focus

News organizations tread carefully with Newtown…

Major news organizations are proceeding cautiously Tuesday following the court-ordered release of the 911 calls from the Sandy Hook Elementary School shooting, in which gun shots and panicked school employees can be overheard.

NBC News said it's not airing the tapes on TV or its websites, citing the opposition against the release by victims' families and others in Newtown, Conn. Quotes and information from the calls will used in its reports.

"The families of the victims of the Newtown shootings made it public that they did not want the 911 tapes to be released. Unless there is any compelling editorial reason to play the tapes, I would like to respect their wishes," wrote NBC News President Deborah Turness in a staff memo Tuesday morning before the recordings were made available.

STORY: Chilling 911 tapes of Sandy Hook massacre released

ABC News also said it'll not air the tapes "at this time."

CNN plans to air a few parts. "We are preparing a report that will provide context to the recordings and report any new information learned," said CNN spokeswoman Barbara Levin.

Shepard Smith, managing editor of Fox News' breaking news team, told viewers this afternoon that the network will "not be airing the most gut wrenching moments from those calls."

"Out of respect for the victims, we will be very sensitive with what we do put on FOX News Channel and across all of our platforms throughout the day and in the days to come," he said.

CBS News plans to broadcast excerpts, but gunshot sounds will be not be used.

USA TODAY chose to post the tapes on its website. "We felt that a strong warning flag on each of the (segments) containing audio was enough," said David Callaway, the newspaper's editor-in-chief.

The audio recordings were made available after New Britain Superior Court Judge Eliot Prescott issued his approval Tuesday despite heavy opposition from the community and prosecutors.

The Associated Press has sought the recordings to examine the poli! ce response to the massacre, and won a ruling by the state's Freedom of Information Commission that the calls are not exempt from public information laws.

Newtown police and State's Attorney Stephen Sedensky III fought against the ruling, arguing that the calls could cause pain for victims' families and hamper investigation.

Contributing: Associated Press