Investing

Apple's (Nasdaq: AAPL) plan to launch an applications marketplace for Mac and MacBook owners is starting to crystallize. Come Jan. 6, Apple will officially roll out the Mac App Store.

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

There's no foolproof way to know the future for Dril-Quip (NYSE: DRQ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result. Rest assured: Even if you're not monitoring these metrics, short-sellers are.

The Dodd-Frank Act for financial reform included new requirements in the realm of corporate governance, including "say on pay" and "say when on pay" votes. Until now, we haven't been sure how companies would navigate this changing landscape, but a handful of businesses are now providing intriguing early indications.

This article is part of our Rising Star Portfolios Series.

Yes, things are afoot at the Brookfield series of companies. Brookfield Properties (NYSE: BPO) is carving out its Residential unit, which will be combined into Brookfield Homes (NYSE: BHS). This newly united entity will be renamed Brookfield Residential Properties.

Whether you're a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can you give your portfolio what almost no other investment can -- both income and growth.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.What: Pharmaceutical maker Akorn's (Nasdaq: AKRX) shares are up 12% today on high volume.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.What: Shares of beleaguered real estate developer St. Joe Company (NYSE: JOE) jumped as much as 13% in intraday trading on heavy volume.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.What: Shares of Vantage Drilling (AMEX: VTG) fell 10% briefly today when the stock ran out of steam from its long run higher.

Right now, two factors are combining to produce opportunities for enormous gains on specific stocks. Below, you'll find a basket of five stock option trades I put together to benefit from those circumstances, which has the potential for a 600% return.

However, before we even begin thinking about earning fat returns, let's talk defense first, with a hedge idea to protect our existing assets.