Baltimore — (TFN): How efficient are the markets? It is like asking how smart is the human race We all know the answer, but few of us are willing to suck in our pride and admit there are a few dim bulbs among us.

Judging by the sudden rise in fame of Levi Johnson or Balloon Boy’s antics, the human brain is far feebler than we give credit.

And so are the markets.

If you have taken a basic finance class anytime between 1965 and the present, you have likely studied Eugene Fama and his efficient market hypothesis.

Essentially, the University of Chicago professor created a cult-like following of investors and academicians that believe markets entirely reflect all known information and instantly react to new information.

For example:

When I told my ever-optimistic, ever-“hopeful” colleague, Laura Cadden, the news the majority of Obama’s infrastructure stimulus would finally be doled out sometime early next year

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Most investors were not expecting good news. That is why shares of Human Genome Sciences (NASDAQ:HGSI) are soaring after the company released its latest Phase III results.

It has turned out to be my mantra over the past several weeks: big surprises lead to big gains.

Last Thursday, my colleague, Laura Cadden, and I got into a discussion of Human Genome Sciences (NASDAQ:HGSI) and its investment potential.

Knowing that I started in the industry by tracking and trading unique volume patterns, she came to me after noticing a strong up-tick in trading activity last week.

At a company that normally trades just shy of eight million shares each day, a sudden surge to the fifty-million level is going to get attention.

As the group’s in-house genomics expert, Laura knew the company was closing in on a pivotal announcement concerning its lupus drug Benlysta.

After sizing up the charts, reviewing the company’s massive debt

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Under Armour (NYSE:UA) is under pressure from both sides. Analysts say it is going down, while emotional investors continue to fall in love. Somebody is going to lose.

Before the opening bell, I was chatting with my colleague, Laura Cadden. I told her of my dire outlook for Under Armour (NYSE:UA) and its overpriced and over-hyped product pipeline.

“You can’t say that,” she rebutted. “I love Under Armour.”

Because she is a Baltimore native – the home of Under Armour – it is easy to understand her affection for the company. But once I gave her a handful of figures and circled a few key spots on the stock’s chart, she tossed her emotions aside and agreed with my call.

That’s when it happened.

Shortly after sharing my opinion, in what I assumed was confidence, the news feed fires up and word hits the Street that Morgan Stanley downgraded Under Armour and

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Laura Cadden of Today’s Financial News points out that the “commodity choice for investors” is Lithium. With the high global demand and the U.S. governments’ plan to invest over $2 billion on hybrid technology,  Lithium is a smart investment.

This from Laura:

Lithium is becoming the commodity of choice for investors — for good reason. Car makers are choosing lithium-ion batteries for their much-anticipated hybrid and electronic vehicles. And the $2 billion the U.S. intends to invest in that technology will help ease the way.

At car shows globally, everybody’s talking lithium…

GM announced it would build a plant to manufacture lithium-ion (Li-ion) batteries for the Chevy Volt scheduled to debut in 2011. BMW plans to launch its remodeled Li-ion battery-powered 750i luxury sedan to the Japanese in 2010. This year, the company is producing 500 all-electric MINI Es, also with Li-ion batteries, for leasing in select cities. Toyota (NYSE:TM) hopes to launch ...

HIDDEN VALUE

Dear Value Seeker,

It could almost be comical… if our financial futures were not at stake.

Today, Fed Chairman Ben Bernanke spoke about the economic crisis and the government’s policy response.

After defending the Fed’s policies over the last 18 months, ‘Helicopter Ben’ made it clear that he isn’t about to be upstaged by Obama’s mega stimulus plan.

In my view, however, fiscal actions are unlikely to promote a lasting recovery unless they are accompanied by strong measures to further stabilize and strengthen the financial system…

More capital injections and guarantees may become necessary to ensure stability and the normalization of credit markets. A continuing barrier to private investment in financial institutions is the large quantity of troubled, hard-to-value assets that remain on institutions’ balance sheets. The presence

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Biotech companies are a great investment right now, says Laura Cadden. And support from the Obama administration will ensure this trend continues. Laura picks four small cap biotech firms set to soar.

This from Today’s Financial News:

We’ve already taken double-digit gains on Aastrom Biosciences, Inc. (NASDAQ:ASTM),  Cerus Corporation (NASDAQ:CERS), and Geron Corporation (NASDAQ:GERN).

But these stocks are by no means done with their upward momentum.

Biotech companies continue to be a great investment – and these three are some of the best out there.

As the market takes another hit and these stocks artificially deflate, I recommend that TFN investors should again pick up shares.

And I’ve found another company that I believe is on the verge of a breakout.

But first, what’s so great about the three companies I selected in November? Let’s review… Aastrom Biosciences, Inc. (NASDAQ:ASTM) develops products for the repair or regeneration of human tissue. It’s

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HIDDEN VALUE

Dear Value Seeker,

Yesterday, the “Big Three” automakers came to Washington with a plan: ask for even more money.

GM wants $18 billion, with $4 billion for December’s bills.

Chrysler says it needs $7 billion in the next few months.

Ford is after $9 billion…but only as a precaution. It feels pretty confident it can make it without help.

After all, Ford’s sales fell only 31% year-over-year in November. GM and Chrysler both saw sales for the same period tumble by over 40%.

In exchange for $34 billion in taxpayer money, the automakers promised major restructuring, reduced labor costs (that’s right, it’s promising to fire employees in return for taxpayer backing) and the sale of some product lines.

The CEOs even said they would even work for $1. (Never mind that their salaries only make up about 10% of their overall pay packages.)

But decades of waste and mismanagement aren’t forgotten

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Laura Cadden says Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) is on the verge of a big breakthrough with a drug to treat sleep disorders. She says investors that buy the stock at or below 75 cents will be in line for double-digit gains.

This from Today’s Financial News:

Maryland-based Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) has high hopes for its drug VEC-162. This treatment mimics the action of melatonin — the hormone that that regulates the body’s internal clock.

Vanda is testing the effectiveness of VEC-162 to treat sleep disorders.

Over 60 million adults in the U.S. alone suffering from some form of insomnia. Yet only about 15% seek treatment. Some fear side effects like grogginess and dry mouth.

Others are afraid of becoming reliant on a sleep aid. In fact, many such treatments, including Lunesta and Ambien, are

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Laura Cadden says Aastrom Biosciences, Inc. (NASDAQ:ASTM) is one of the hottest biotech stocks priced under $5. The company hopes to use its proprietary Tissue Repair Cell (TRC) technology to revolutionise treatment for heart disease. And it is making good progress through the trial phases. Laura says Aastrom is poised to make 20% gains in six months

This from Today’s Financial News:

Investors expect President-Elect Obama to make good on his campaign promise to lift restrictions on federally funding human embryonic stem cell research. House Speaker Nancy Pelosi has vowed to introduce legislation for a regulatory framework necessary to enable expanded stem cell research.

Biotechnology experts consider both the regulatory framework (to underpin clinical trials) and the additional funding to be crucial to the future of the American bio-pharma industry. In fact, it could ring in a new era for American stem cell

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Laura Cadden has found a small cap biotech company with huge growth potential. OpenCell BioMed Inc. (OTC:OCBM) is hoping to revolutionize dental surgery using titanium to help fix implants. Laura says investors willing to take on a risky venture could win big with ‘early-mover’ profits.

More from Today’s Financial News:

What is found in everything from pyrotechnics to toothpaste, golf clubs to spacecraft, horseshoes to joint replacements? One word… titanium.

An incredibly versatile, lightweight-yet-strong, corrosion-resistant mineral, titanium is often alloyed with other metals with beneficial results such as lowering carbon content (stainless steel) or to harden (copper).

And it’s just as good with human bone and tissue.

One of the most exciting uses of the metal is in the medical field due to its ability to osseointegrate (human bone actually integrates with it).

This growth anchors titanium medical implants to the degree that they may remain in place for up to 20 years!

Putting their money

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