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Why It Is Best To Invest In Silver?

2012-02-14T06:46:00.001-08:00

There are plenty of options for the people when they are interested to perform a trade. They can carry out the business of trading of products, manufacturing of goods and services of any sort. If people are willing to accomplish silver trading, after that, they have to know the procedure of this trade, as this business is dissimilar to the business of goods. This dear metal can be consumed in industrial metals, vehicles, jewellery and computers. Great numbers of sponsors are looking to generate money through the business of this dear metal.

There are large numbers of trading instruments in the market. This metal is valuable than the other instruments, because it is less risky than the others. There might be risks for the investors if they invest in bonds and stocks. There might be a decrease in the value of these instruments, but there is no decrease in the value of gold, copper and silver. There is always an increase in the price of these metals. If you invest on these metals, then there will be large benefits for you in the future. You are required to follow this guide when you will do the business of his commodity.

This sort of dealing looks like the dealing of stocks, on the other hand, it is different from stocks when we have a look at contract size. With the exploitation of a standard deal, people can manage 5,000 oz of the precious metal. If someone holds a mini account, then they can manage 1,000 troy ounces of this dear metal.

It is vital for the businessmen to pay their entire attention at the prices of copper and bullion, as an increase in the value of one metal might manipulate the value of other item. There is a direct link between these metals, therefore, investors must be alert and watch the values of all these dear metals. Like this, they can achieve the right picking.

It is studied that there is difference in the supply of both metals, and production of this precious metal is about 16 times more than gold. Economists theorized it that both these metals must be ! traded a t a ratio that is based on their supply. If we follow it, then there must be worth of one metal 16 times more than the other.

In the period of inflation, financiers spend in those assets that are advantageous in the upcoming days. Owing to high value of gold, financiers might not pay for it; however, financiers can utilize their money in the trade of copper and silver.

Financiers can spend in silver through the utilization of different methods. They can spend in ETFs, bullion, futures, coins and investing firms. If you are performing investment in gold bars and coins, then you have to find those vendors who can vend them at a cost which is near to original value of this metal. You are not obligatory to pay massive charges when you are purchasing this metal.

When people are carrying out silver trading, they should also think about those threats that are related with it. There might be massive profits for the people in this business; though, they can be successful only if they hold the required expertise.

If you are interested in silver prices today and investing in silver and other metals please visit our website. We have the silver price today and other useful information about investing.

Introducing the 24/7 Wall St. Wire

2012-02-12T08:09:00.003-08:00

Independent oil & gas firm McMoran Exploration Co. (NYSE: MMR) posted an unexpected profit today, leading other energy firms like Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and Hess Corp. (NYSE: HES) higher.

McMoran posted EPS of $0.19, compared with an consensus estimate for an EPS loss of -$0.13. The company attributes the good performance to its deep-drilling techniques in the Gulf of Mexico, which have allowed it to boost production substantially higher than previous expectations. Production is expected to average 130 million cubic feet of gas equivalent/day in 2012, with first quarter production at 155 million cubic feet/day. The number should rise in the second half of the year following production testing of a major well.

McMoran's shares are up nearly 5% at $13.29 in a 52-week range of $8.25-$19.26.

Subprime Crisis Again in the Spotlight as the Meltdowns of Fannie Mae and Freddie Mac Fuel Fears of a Deeper Downturn

2012-02-12T08:09:00.001-08:00

Markets do not react well to uncertainty. And for several years there has been uncertainty as to if and when the United States or some other country will attack Iran's nuclear capacity. That uncertainty seems to be drawing to a conclusion. What should investors do when it happens? And thereafter?

First, there is still a very real question as to whether an attack will happen at all. Perhaps the ever tightening sanctions will cause the Iranian leadership to back off. Or, even better, motivate the Iranian leadership to allow nuclear inspectors to inspect everywhere and to everyone's great surprise find no evidence to support the current fears and uncertainty.

That is exactly what did not happen in Iraq. Saddam Hussein also blustered about having and developing secret weapons of mass destruction and certainly threatened and rocketed Israel when the West finally attacked to eliminate them.

To the amazement of many it turned out Saddam had no nuclear bomb activities underway. Had he actually allowed the media and inspectors to fully inspect Iraq to confirm that, it's likely Saddam would be in power today - but revealed to the world and the neighbors he was trying to impress as a powerless liar. Saddam pretended to the end in order to save face and died for it.

Iran may be like Iraq - a poker player trying to take a pot with an empty hand. But it's not likely. Unlike the case with Iraq, there is just too much evidence that Iran is building nukes and intends to use them. That means war is inevitable and the markets will be affected.

How the war is fought will affect the markets.

The war is already underway. Sophisticated technology attacks have slowed Iran's nuclear development and conventional attacks on a handful of the key leaders of its scientific efforts have been undertaken with guns and car bo! mbs. And while this appears to have slowed Iran's progress it does not appear to have stopped it or changed its direction towards the peaceful uses Iran claims.

The efforts to date and the delays they have achieved have caused no great economic upheavals and have not spread a sense of uncertainty over markets worldwide. In essence, to date, markets have not been greatly affected by the escalating war between the West and Iran. That is about to change. How it will change and what it will mean for investors depends on how the war is conducted.

There are two basic possibilities

The first is that the attacks, no matter who actually does them, will be perceived as possibly being internal efforts by Iranians who seek regime change - public spirited citizens, if you will, who want to replace the current hard line government with a more moderate government so they and their children can again freely travel and study abroad and the country's economy and job market can be rid of the crippling sanctions.

If this is the approach, there will be one or two massive explosions aimed at taking out the entire Iranian leadership with the usual previously delivered Al Jazeera exclusive tape instantly explaining why they did it. If this happens the world is likely to heave a collective sigh of relief and markets will rise everywhere in the hope the nuclear threat will be terminated by the new government.

The second possibility is that one or more attacks will destroy Iran's key nuclear facilities but leave its government clerical and political leadership intact. The leadership will then, almost inevitably, attempt to placate its powerbase within the Iranian population by promising to rebuild the facilities and to retaliate against the attackers. In this case, even if the explosions are accompanied by evidence and usual taped claims on Al Jazeera suggesting they came from internal Iranian sources such as disaffected scientists or military personnel, the hard line government and ! its supp orters likely to blame outside forces, no matter whether its true or not. If this happens without simultaneous efforts to obtain regime change the world is likely to end up being more uncertain about the future than before and markets will fall everywhere once the initial euphoria ends.

In other words, attacks on Iran will either lead to a major reduction in uncertainty which causes markets to rise and gold to fall or a major increase in uncertainty that causes markets to fall and gold to rise. Accordingly, investors should buy across the board if the leaders of the current regime are successfully attacked and sell across the board if the attacks are unsuccessful or only its nuclear facilities are attacked.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

All Hail Caesar! Casino Company Jumps in Debut

2012-02-11T22:24:00.001-08:00

Caesars Entertainment (CZR) went public in an unusual stock offering today, and shares are already way above the offering price. In fact, in midday trading they were trading hands at $13.91 per share, 57% above the $9 offering price.

But the dynamics of this odd IPO make it difficult to determine just how successful it has been.

Private equity firms Apollo Global Management and TPG Capital took the company private in 2008. In the IPO today, Caesars sold 1.8 million shares, or about 1.4% of the company, on the public market. Those shares were basically granted to the company by private investors who wanted to gain some liquidity for the shares they got at the time of the leveraged buyout.

At the current share price, the company’s equity value is below $2 billion, versus about $5.4 billion when the company first tried and failed to go public in 2010.

For more on this unique IPO, read Andrew Bary’s article from yesterday on Barrons.com.

Itchy Investors Ramp Up the Risk

2012-02-10T20:09:00.001-08:00

Robert Marcotte can't afford to play it safe anymore. With interest rates likely stuck near zero for nearly three more years, the 61-year-old retired telephone-company manager is about to ramp up his holdings of stocks and municipal bonds, using money now at the bank in certificates of deposit.

"It gets me a little uneasy," says Mr. Marcotte. "Since I'm not working, I am very risk-averse, but still need to generate income."

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Brandon Thibodeaux for The Wall Street Journal

Robert Marcotte, in his home office in Arlington, Texas, tends to his cat, Easter, and to boosting his returns.

The Federal Reserve is presenting a broad swath of conservative investors, from retirees and college savers to banks and insurance companies, with a tough choice: move into riskier investments or continue coming up short from low-risk investments that aren't even keeping pace with inflation.

The central bank has held short-term interest rates near zero since late 2008 to spur the economy and help the housing market. One side effect of that policy is lower returns on savings accounts and other low-risk investments.

When the Fed announced last week that it likely will keep rates at rock-bottom levels through 2014—almost three full years from now—s! ome risk -averse investors began to abandon hopes that rates would rise soon.

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The Fed has "removed the last shred of possibility that interest rates were going to revert to normal in the near future," says Johns Hopkins University economics professor Christopher Carroll.

Many investors remain wary of the stock market. Between October 2007 and March 2009, the Standard & Poor's 500-stock index lost about half its value. The May 2010 "flash crash" erased 1,000 points from the Dow Jones Industrial Average in a matter of minutes. In 2011, stocks whipped around violently, only to finish the year relatively flat.

But the low interest rates of the past several years have taken a toll on U.S. savers. All told, Americans collected interest income from CDs, savings accounts, insurance products and other sources at a seasonally adjusted, annualized rate of $976 billion in the fourth quarter of 2011. That's down nearly a third from the peak rate of $1.42 trillion in the third quarter of 2008.

Yields on four-year CDs have fallen to 0.88% currently from 2.74% in February 2008, according to Bankrate.com. Yet inflation has averaged about 2% over the period.

In congressional testimony on Thursday, Fed Chairman Ben Bernanke acknowledged that low rates penalize savers. "We understand it's an issue for many people," he said. "That being said, our savers collectively have to hold all the assets in the! economy and a strong economy produces much better returns in general."

One worry is that some investors will take on risks they aren't prepared to handle.

Brent Burns, an investment manager who builds bond portfolios for financial planners, says that since the Fed announcement he has fielded a flurry of questions from advisers considering high-yield and international bonds, and real-estate investment trusts. "I don't think that's a fair trade" for money intended to be invested safely, he says.

The U.S. last faced a prolonged period of low rates in the 1940s and early 1950s, when the Treasury Department ordered the Fed to keep rates low so it would be easier to repay World War II borrowing, says New York University economic historian Richard Sylla. Between 1941 and 1951, one-month Treasury bills returned just 0.7% annually, well below the 5.9% inflation rate, according to investment-research firm Morningstar Inc.

Financial firms are crafting higher-yielding investments. New York Life Insurance Co. in July rolled out an annuity providing a guaranteed income stream that increases if recipients wait longer to claim it. The annuity, aimed at people nearing retirement, took in more than $220 million in its first six months, making it the company's most successful annuity launch ever, according to New York Life.

Barclays Capital says it has seen increased interest in so-called structured products—bank notes or CDs that can be created to meet investment goals, such as providing a buffer against market losses or the potential for higher income. Overall, the number of structured products that provide income grew by 15% in 2011 from a year earlier, to 5,532, according to data provider StructuredRetailProducts.com.

It isn't just retirees who are taking on more risk. Sotirios Keros, a 39-year-old pediatric neurologist in New York, says he plans to shift his emergency reserve to a long-term municipal bond fund when his CDs mature this summer. "I would still like to ke! ep that as liquid as possible and as risk-free as possible, but I'm not really happy with the available options," he says. The Fed's decision makes it clear that "there's no value in waiting" for higher rates, he says.

Michael and Jamie Singer, both in their early 30s, recently hired a financial adviser to manage some of the money intended as a down payment on their first home that had been in CDs and an online savings account.

"It was doing nothing for us," says Mr. Singer, a sales director at Internet company Indeed.com. The couple are expecting their first child in April and want to keep their investment risk "relatively low, because we have targeted [the money] for something very specific," Mr. Singer says.

Noah Rosenfarb, the Singers' financial adviser, invested money targeted for the down payment in short-term bonds, preferred stocks and dividend-paying stocks. Even if share prices fall, he says, the higher yields mean these investments are likely to provide higher returns over the next two to three years than short-term bonds.

Low rates are also pressuring life-insurance companies, which rely in part on returns from high-quality bond investments to pay their obligations. "We have about $175 billion in cash and investments, and 94% of that is conservatively invested," says Chris Blunt, executive vice president of New York Life.

After waiting three years for rates to rise, Jenny Fleming, a financial planner, is putting client funds into dividend-paying stocks. One of her clients, Margie Stewart Alford of Austin, Texas, is using dividend-paying stocks to provide interest income that might normally come from CDs. While Ms. Alford, 75, still plays Friday-night poker, she says she can't afford to boost her stock exposure too much. "At my age, I can't be a risk taker anymore," she says.

Write to Ruth Simon at ruth.simon@wsj.com

Introducing the 24/7 Wall St. Wire

2012-02-10T09:43:00.001-08:00

Ford’s (NYSE: F) earnings were disappointing, and investors paid with a 4% drop in shares in the pre-market. Although US sales were good last year, compensation costs helped keep margins down. Asia-Pacific and Europe sales were weak. Europe is to be expected. Ford should not be lagging in the hot markets in Asia

The company said that fourth quarter pre-tax operating profit was $1.1 billion, or 20 cents per share, a decrease of $189 million from fourth quarter 2010. Ford has posted a pre-tax operating profit for 10 consecutive quarters. Revenue for the period was $34.6 billion up $2.1 from the year before’s quarter

Ford reported fourth quarter net income of $13.6 billion, or $3.40 per share, an increase of $13.4 billion, or $3.35 per share, from the fourth quarter of 2010. This includes the favorable impact related to releasing $12.4 billion of the valuation allowance. Ford began to record a valuation allowance against net deferred tax assets in the third quarter of 2006, reflecting large cumulative losses incurred, as well as its financial outlook at the time. Consistent delivery over the past few years of strong improvement in the company’s business results now supports the release of almost all of the valuation allowance.

Total Automotive pre-tax operating profit in the fourth quarter was $586 million, a decrease of $155 million from fourth quarter 2010. The decrease is explained by higher costs, including higher commodity costs, higher compensation costs in North America related to the new UAW agreement (including the one-time ratification bonus), and unfavorable exchange rates. This was offset partially by favorable net pricing and volume and mix.

To be fully successful with numbers like this:

In the fourth quarter, Asia Pacific Africa reported a pre-tax operating loss of $83 million, compared with a profit of $23 million a year ago.

Douglas A. McIntyre

The 'Presidential Cycle' Is Rubbish

2012-02-09T23:34:00.001-08:00

Author: Charles Sizemore
Covestor models: Sizemore Investment Letter and Tactical ETF, Strategic Growth Allocation

Mark Twain noted that there are lies, damned lies, and statistics - and nowhere is this truer than in the investment profession.

Don't worry, this isn't another story about crooked Wall Street bankers fleecing the public. There have been enough of those written already. This is an article about a far more dangerous form of deception: lying to yourself.

The lie, of course, is that you can get money for nothing, that it is possible��and even easy��to beat the market without doing any real work.? (Plenty of investors "beat the market" by the way.? But they do it by doing the exhaustive legwork that others won't or can't do, and by taking well-placed risks that others are afraid to take.)

Today, we're going to take a look at a market cycle that, on the surface, sounds like it makes sense - but actually fails to stand up to anything resembling statistical scrutiny: the 4-Year Presidential Cycle.

According to the theory, the stock market follows a predictable �� and investable �� 4-year cycle that coincides with the presidential term.

Stocks tend to offer meager returns in the first two years of a presidential term but do particularly well in the third and fourth years.? Presumably, this is because the growth policies that a president implements upon taking office take time to have their desired effect.? And perhaps more cynically, a sitting president will pull out all of the stops to juice the economy in his last two years to make sure he gets reelected (or to make sure that his heir apparent gets elected).

All of this sounds great, of course.? And the numbers would seem to support it.? According to Investopedia, returns in year three are more than double those of any other year (see chart).

The problem is that it is absolute rubbish.

We'll start with the obvious: the president of the U! nited St ates may well be the most powerful man in the world, but he does not single-handedly control the economy or the capital markets.? In the larger scheme of things, the White House isn't all that important.? It is American business and American capitalism that generate growth, not clever policy wonks in the Oval Office.

If you absolutely had to attribute market returns to the actions of one man, I would pick the Federal Reserve chairman over the president, due to the Fed chief's control over interest rates.? But the argument that a Fed chairman would use his power to help a sitting president never made a lot of sense.? As often as not, the Fed chairman is of a different political party than the president.? Why would a Republican Fed chairman try to get a Democrat president reelected (or vice versa)?

Now, let's dig into the numbers.? In the entire history of the United States of America there have only been 44 presidents and 56 presidential terms, and for the first 100 years of the republic there was no real stock market to speak of.? The small number of traded stocks was hardly representative of the economy, which �� outside of the northeast �� was largely agrarian.

Being somewhat generous, we can say that we have usable stock market data starting around 1900.? And since 1900 there have been 18 presidents and 27 presidential terms.

Anyone who suffered through college Statistics 101 would know that statistical analysis doesn't work particularly well with sample sizes this small.? The basic rule of thumb is that you need a sample size of at least 30 observations to draw meaningful conclusions.

In other words, the Presidential Cycle is statistical noise.

Investors should be wary of pet theories that view something as complex as the stock market through so simple a lens.? Investing doesn't have to be difficult, but it does involve work. Warren Buffett has made a career out of buying companies that are simple to understand, but he still does his homework.? He ! reads th e annual reports and picks through the numbers.? And he certainly doesn't put capital at risk based on astrology-like theories that market moves are preordained by the year of a presidential term.

Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.

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Germany and France say debt talks advancing

2012-02-08T00:49:00.001-08:00

NEW YORK (CNNMoney) -- The leaders of France and Germany said Monday that progress has been made on last month's proposed deal aimed at resolving Europe's debt crisis.

The fiscal pact, designed to ensure that governments do not spend beyond their means and rack up unsustainable debts, could be signed later this month and go into effect as early as March, said German Chancellor Angela Merkel, following a meeting with French President Nicolas Sarkozy in Berlin.

Sarkozy stressed that eurozone governments should stand by their commitments to reduce deficits, adding that the agreement could be signed in the "coming days."

The terms of the pact include, among other things, a balanced budget requirement with an "automatic correction mechanism," and a provision to make national budget policies subject to EU authority "ex ante," or before the fact.

The political leaders of the 17 eurozone nations, which share the embattled single euro currency, agreed in principle to abide by the pact following a summit on Dec. 9. But the agreement is still subject to parliamentary approval in some member states.

European Union leaders will meet Jan. 30 in Brussels for their first political summit of the year as they struggle to find solutions to the debt problems at the center of Europe's economic and financial crisis.

Europe's debt crisis: 'No clear end in sight'

Merkel and Sarkozy, the leaders of the eurozone's largest economies, also reiterated their commitment to the euro currency and pledged to revive the continent's ailing economy.

"We believe in the Euro, we believe in Europe and must do everything to increase its competitiveness and foster job growth," said Merkel.

The leaders said that Greece, the nation at the heart of the crisis, should remain a member of the currency union. But they called on the government of Lucas Papademos to push through reforms necessary to secure the latest installment of bailout money for Greec! e.

Merkel and Sarkozy reiterated their support for an agreement with private sector banks and investors to "voluntarily" reduce the value of Greek government bonds by 50%, which has yet to be finalized. But they cautioned that the so-called haircuts will not be enough to solve the nation's economic and debt problems.

The leaders also discussed a proposed financial transaction tax, which France has championed as a way to overcome the crisis.

Sarkozy said the tax would never be implemented globally unless Europe and France take the first step. Critics say imposing a tax on financial transactions, such as trades of stocks or other assets, would drive capital away from European markets.

Merkel advocated imposing the tax locally, either across the European Union or euro area.

Fidelity's National Financial Announces Research Partnership With Stifel

2012-02-07T04:15:00.001-08:00

National Financial, a Fidelity Investments company, announced Tuesday that it has partnered with Stifel Nicolaus to make the company’s sell side equity research available to its 300 broker-dealers clients through Streetscape, National Financial’s online brokerage workstation.

Through the partnership, National Financial's broker-dealer clients will have access to research from multiple sectors, including consumer, financials, technology, health care and energy.

“Access to independent stock research is a critical component to helping brokers and advisors make informed, objective investment decisions on behalf of their investor,” said Richard Hart III, senior vice president of platform solutions for National Financial, said in a press release.

Stifel has 76 analysts covering over 1,100 U.S. companies, and was the highest ranked firm in The Wall Street Journal's Best on the Street survey for stock picking and earnings accuracy. The addition of Stifel to National Financial's platform gives clients access to over 20 independent research providers with more than 6,000 reports. The firm was selected for its excellent sell side research, Hart told AdvisorOne.

The new offering gives advisors "access to all research Stifel covers, in addition to our already broad offering of providers to help advisors make better decisions and be more productive in their businesses," Hart said by phone.

The offering is one more example of the company's "continued effort to give advisors the best products and services available," he added.

Through National Financial’s Streetscape workstation, research is available for a nominal per month, per user fee. A single point of access simplifies the process by eliminating the need for separate contracts with individual providers.

Aussie Hedge Fund Says it Benefited From Exposure to U.S. Sub-prime Mortgages

2012-02-06T12:49:00.001-08:00

Genzyme (GENZ) Gets an Approval for Lumizyme from the FDA

Shares of Genzyme Corporation (NASDAQ: GENZ) continued to climb this morning, leveraged by yesterday's nearly 6% hike on word from the U.S. Food and Drug Administration (FDA).

Cambridge, Massachusetts-based Genzyme recently announced that the FDA gave an approval to market Lumizyme in the U.S, making it's the first treatment to get an approval in the country to specifically treat patients with late-onset Pompe disease. The company started working on a treatment for Pompe disease 10 years ago and has already invested almost $1 billion toward developing it. Commenting on the FDA approval, Henri A. Termeer, Genzyme's chairman and CEO, said that he was happy and grateful to the FDA for approving Lumizyme ahead of its scheduled PDUFA date.

Monday Genzyme announced that the conditions for the consent decree for its Allston manufacturing plant have been finalized. These are in-line with the company's expectations that were announced in April. The company will now pay an up-front disgorgement of past profits of $175 million and will continue to ship Cerezyme?, Fabrazyme?, and Thyrogen?, which are all produced, filled and finished at the Allston manufacturing plant. The company started with the implementation of a comprehensive remediation plan to improve quality and compliance at the Allston facility, last year. It submitted a plan to the FDA in October 2009.

Genzyme's stock has a 52-week range of $45.39-$63.47.? It has a beta of 0.23. The stock ??????????? has seen support at around $47.07 and resistance at around $53.58. It is currently trading below its 50-day and 200-day moving averages. The consensus recommendation on the stock is Outperform. It has 10 Buy, 1 Outperform, 5 Hold and 2 Underperform ratings, at the moment.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or "penny stock" market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

U.S. Market On A Low As EU Summit Fails To Restore Confidence; Hot Stocks Of The Day: ADTN, DMND, ENDP, ING, LNG

2012-02-06T02:22:00.001-08:00

As the European summit deal to strengthen budget discipline in the euro zone failed to restore financial market confidence today, the U.S. market slipped to a negative zone during the mid-day session Monday.

The Dow Jones industrial average fell 1.47 percent or 178.61 points to trade at 12,005.65. The Nasdaq Stock Market Inc. composite index lost 1.63 percent or 43.02 points to trade at 2,603.83. The Standard & Poor's 500 index was down 1.68 percent or 21.14 points to trade at 1,234.05.

Hot Stocks of the Day: ADTN, DMND, ENDP, ING, LNG

Adtran Inc. (Nasdaq: ADTN) agreed to buy the fixed line broadband access business of Nokia Siemens Network. Shares of ADTN fell 6.89 percent, or $2.22, to trade at $30.03.

Shares of Diamond Foods, Inc. (Nasdaq: DMND) slumped 22.66 percent, or $9.19, to trade at $31.27 amidst reports that some walnut growers had raised concern over the snack maker's explanation of mysterious payments to them, further complicating an accounting issue that has postponed Diamond Food's plans to acquire Pringles from Procter & Gamble Co.

Endo Pharmaceuticals Holdings Inc. (Nasdaq: ENDP) shares rose 5.85 percent, or $1.99, to trade at $36 as the U.S. Food and Drug Administration approved a new version of the company's painkiller.

ING Groep NV (NYSE: ING) said it would swap 5.8 billion euros, or $7.76 billion in subordinated debt for senior loans and cash. Shares were down 8.94 percent, or $0.70, to trade at $7.13.

Cheniere Energy, Inc. (AMEX: LNG) announced its subsidiary had reached an agreement to sell natural gas to Gail India Ltd., an Indian gas transmission and marketing firm. Shares of LNG added 5.40 percent, or $0.48, to trade at $10.

Currencies and Commodities:

In the world of currency, the US dollar lost 0.26 percent against the euro, and 0.11 against the British pound. The dollar gained! 0.004 p ercent against the Japanese yen.

Commodities traded in a negative note today with oil losing 1.39 percent to trade at $98.03 per barrel. Gold prices were up 1.85 percent to trade at $1,744.50 per ounce. The Dow Jones-UBS Commodity index fell 1.89 percent, and the Reuters-Jeffries CRB index lost 1.56 percent.

Global Market:

The global markets traded in negative today as Europe remained concerned that the fiscal pact will not deter it from reconsidering the credit ratings of European Union nations. Germany's DAX was down by 3.19 percent, or 190.69 points to 5,797.70. France's CAC40 was down 2.61 percent or 82.76 points to 3,089.59. Great Britain's FTSE 100 fell 1.54 percent or 85.21 points to 5,444.36.

In the Asian market, China's Shanghai Composite closed lower by 1.02 percent, or 23.73 points to 2,291.54. Hong Kong's Hang Seng fell 0.06 percent or 10.57 points to 18,575.66. India's BSE 30 Sensex slumped 2.12 percent, or 343.11 points to close at 15,870.35.? However, Japan's Nikkei 225 was up 1.37 percent or 117.36 points to close trading at 8,653.82

Sector Scan:

The basic materials sector emerged as the market's worst performing sector by the afternoon session after losing 2.81 percent during the session. Among major movers in the sector, Steel Index ETF Fund (NYSEArca: SLX) was down 4.15 percent, or $2.11, to trade at $48.71. The Ultra Basic Materials ETF (NYSEArca: UYM) lost 5.63 percent, or $1.89, to trade at $31.71. Among major stocks, shares of Aegean Marine Petroleum Network Inc (NYSE: ANW) fell 2.44 percent or $0.11 to trade at $4.40. Shares of Tredegar Corp. (NYSE: TG) were down 2.58 percent or $0.56 to trade at $21.15. Shares of LB Foster Co. (Nasdaq: FSTR) were down 3.89 percent or $1.10 to trade at $27.20.

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Amazon Shares Tumble in After-Hours Trading as Sales Miss Estimates (AMZN)

2012-02-04T04:26:00.001-08:00

Amazon.com Inc. (NASDAQ: AMZN) shares tumbled in after-hours trading on Tuesday after the online retailer��s fourth-quarter sales missed estimates. The Seattle, Washington-based company also reported a sharp decline in fourth-quarter profit due to higher shipping costs and the money-losing Kindle Fire.?

Amazon shares fell 8.71% to $177.50 in after-hours trading on Tuesday.?

For the fourth quarter of 2011, Amazon, which is the world��s largest online retailer, reported net income of $177 million, or $0.38 per share, compared with $416 million, or $0.96 per share reported for the same period in the previous year. The company��s sales rose 35% on a year-over-year basis to $17.4 billion. Analysts had forecast the company to report sales of $18.3 billion.?

Colin Gillis, analyst at BGC Partners LP in New York, told Bloomberg that CEO Jeff Bezos is squeezing profit margins in search of growth, looking to add customers by pushing free shipping and offering its Kindle devices at cut rate prices. Gillis said that this has conditioned investors to expect strong sales increases.?

Amazon��s outlook for the current quarter also disappointed investors. The company expects first-quarter operating income to range from a loss of $200 million to a gain of $100 million. Analysts had forecast first-quarter profit of $268.1 million. Amazon expects sales in the first quarter of 2012 to come in between $12 billion and $13.4 billion.?

Bezos said that the company is grateful to the millions of customers who purchased Kindle Fire and Kindle e-reader devices during the holiday season, which made Kindle the company��s bestselling product across the U.S. and Europe. Bezos also said that the company��s millions of third-party sellers had a tremendous holiday season with 65% unit growth and now represent 36% of total units sold.?

For full year 2011, Amazon��s sales rose 41% to $48.08 billion. The company��s operating incom! e for th e full year fell 39% on a year-over-year basis to $862 million. Net income dropped 45% to $631 million in 2011.?

Speech was full of small proposals and lacked new, big ideas

2012-02-03T02:14:00.001-08:00

President Barack Obama��s third State of the Union address was disappointing, and not even a particularly good campaign speech. While he did provide the left with a nice list of small policy proposals, such as special tax rates for manufacturing, green energy and millionaires, he did not seize the moment to suggest any really big, new ideas.

One of the biggest differences between this year��s SOTU speech and last year��s was the rise in inequality as a major problem in this country. Sure, the Occupy Wall Street movement made headlines and provided great visuals, but more important, those protesters also gave oxygen to the idea that extreme inequalities of wealth are actually a problem for our democracy and for social mobility generally (a.k.a. the American Dream).

While Obama seemed as though he was going to use the speech to address inequality, he was vague at best and small at worst. The only thing he said about individual tax reform was a rehash of the millionaire��s tax idea: somehow ensuring an alternative minimum tax for people that make over $1 million annually and allowing the Bush tax cuts to expire for those households that make over $250,000.

While this basic idea is a good one, he could have proposed a more specific list of deductions and credits he would eliminate, as well as making the overall tax code more simple. He did not even specify whether he meant that capital gains would be taxed as ordinary income for the $1 million plus crowd.

In any case, he has been advocating these ideas for a while now, and they have gone absolutely nowhere with Congress. Election-year politics will only solidify the opposition.

On the corporate tax side, Obama channeled Rick Santorum��s message of giving preference to manufacturing companies. While he didn��t go so far as to eliminate taxes for them, he did say they should ��get a bigger tax cut.�� He then went on to propose a handful of other deductions and credits for ! companie s that keep jobs in America and open factories in hard-hit towns.

Although I concede that it’s almost impossible to simplify the tax code, because every deduction and credit has a constituency and a lobbyist fighting for it, Obama missed a chance to offer more comprehensive corporate tax reform. Rather, he chose just a few select industries.

Not All Bad

Overall, while I thought the speech was suboptimal, let me highlight some of its better ideas.

The two biggest headwinds in our economic recovery are unemployment and housing. Obama made the case that Washington can do for other industries what it did for Detroit: save the industry and the jobs. Although the GOP will hold up the failed Solyndra project as evidence that Obama can��t pick winners, his salvage of the auto industry is an excellent defense.

Obama also highlighted partnerships between community colleges and companies as a way of retraining the unemployed. This idea should get some bipartisan support because the GOP desperately wants to tie unemployment benefits to job training. However, if the federal government is going to foster this type of cooperation, it will require legislation and cost money. Convincing the do-nothing Congress to pass any legislation with a price tag will also trigger the ��how do we pay for it?�� hysteria that immediately ends any further discussion. Nice idea, but probably not going to happen.

Finally, on housing, Obama claims he’s ��sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates.��? He will pay for this by a ��small fee�� on the largest financial institutions, which we can be sure will lobby hard against this proposal.

Although this isn’t a bad idea — it would put money in the pockets of consumers and perhaps prevent some foreclosures — it would not address the overall problem of declining home values.! Even if an underwater homeowner is able to refinance, that doesn’t change the fact that they can’t sell their house for what they paid for it. No government program will restore lost home equity or down payments. That��s the simple and unfortunate truth.

Overall, the speech was not one of Obama��s best. He tried to emphasize fairness and equality of opportunity, but those ideas are so big that they need big policies to give them any real weight. What he proposed was small and inadequate for the problems we face.

Perhaps he simply wanted to walk the tightrope of election-year politics by placating his base and not presenting himself as too radical for independents to rally around one more time.

He assured us that we would not turn back the clock four years. ��I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place.�� Compare this to Newt Gingrich, who said earlier Tuesday that on his first day in office, he would issue executive orders that would eliminate 40% of the Obama administration��s accomplishments.

I hope that��s Obama’s plan and it works. Perhaps in a second term, unshackled by the prospect of reelection, Obama can finally be the big ideas, big reformer he was elected to be in 2008.

A full transcript of the speech can be found here.

Indiana Gov. Mitch Daniels delivers a rebuttal here.

The opinions contained in this column are solely those of the writer.

Want to share your own views on money, politics and the 2012 elections? Drop us a line at letters@investorplace.com and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.

Will $275 Billion Central Bank Injection Be Enough?

2012-02-02T15:45:00.001-08:00

By Ryan Barnes. Edited By Douglas A. McIntyre

Cardinal Health Inc. (CAH) �C Price $71.28; Break-up Value $73.50

Cardinal Health is currently in the midst of a large-scale business model transition. Their core business segment is, and has been, acting as the middleman between pharmaceutical manufacturers and end clients such as Walgreen's, CVS, and major hospital groups. But up until a few years ago they acted almost as commodity raiders, buying up excess supply from the drug makers in the hopes of selling the bulk of it later when drug prices were higher. This model worked great when Big Pharma had pricing power, but that environment is largely dead, both through generic pressure and political/social headwinds.

It didn't help matters that the SEC stepped in to question the practices in terms of consumer fairness and revenue recognition. In response, the drug wholesaling industry, largely comprised of Cardinal, Amerisource-Bergen (ABC), and McKeeson (MCK), shifted to a model of charging a flat fee for services such as packaging, distribution, and inventory management. As the largest of the three big players, Cardinal stands to benefit from this trend in the long run �C they should be able to out-execute their competitors with their larger distribution system. So far they seem to be doing just that, sporting higher operating margins than both, which is key in a business that runs on some of the thinnest margins you'll find (industry averages are 1.5 -2.5%).

There are limited break-up options now that Cardinal has sold off its worst performing segment in a $3.3 billion all cash deal last quarter. Cardinal used the proceeds to ramp up its buyback schedule, something they should be able to do a lot more of with vastly improving free cash flow numbers. Three of the four company-designated ope! rating s egments deal with services that are bundled together under the single-fee structure. These cannot be divested at this point as it's the key to their future earnings potential. There may be a fee war approaching as the new model matures, and Cardinal needs to be ready to do battle �C and it's a battle they're likely to win, which should allow them to pick up market share over the next 3-5 years.

In the most recent quarter they turned 13% revenue growth in the core segment into 19% operating income growth, so we can see the cash flow story playing out. The name of the game will be operational performance and retiring shares, the best bet for long-term shareholder value.

The one straggler segment, Medical Products Manufacturing, has solid margins but is near-meaningless to the bottom line (less than 10% of earnings). By getting rid of it, Cardinal can announce to everyone that they're in the big game to win it. A sale of this segment should go for about 1.5x sales, or $2.7b that could bolster the credit rating and be added to the share buyback pool. And with all non-core business divested, Cardinal can take its rightful place at the top of the industry multiple range, or 22x trailing earnings. In our limited breakup analysis, Cardinal is worth $73.50/share. As we can see, the company is currently fairly valued �C future shareholder gains will come incrementally as the company should outperform their rivals and start winning the biggest contracts in the industry.

Ryan Barnes

Ryan Barnes has over 10 years' experience in portfolio management and investment research, covering equities, fixed income, and derivative products. Ryan spent the past 5 years working as an institutional trader & manager for high-net worth investors, working with Merrill Lynch, Charles Schwab, Morgan St! anley, a nd many others. Ryan is currently working as a writer and financial modeling consultant on hedging and capital appreciation strategies, and does not own securities in the companies being covered.

Methodology

Teledyne Awarded $595 Million Missile Defense Agency Objective Simulation Framework Contract

2012-02-01T13:50:00.001-08:00

THOUSAND OAKS, Calif.–(CRWENEWSWIRE)– Teledyne Technologies Incorporated (NYSE:TDY) announced today that its subsidiary, Teledyne Brown Engineering, Inc., in Huntsville, Ala., was awarded by the Missile Defense Agency (MDA) its Objective Simulation Framework (OSF), an IDIQ contract with a potential value of $595 million over five years beginning September 1, 2011.

Under the contract, Teledyne will design, develop, test, implement and maintain the OSF. It will be the centerpiece test and simulation framework for all elements of the missile defense system. The OSF will be capable of supporting full scale simulations, ground tests and live fire events. For the first time, it will tie together the Digital Simulation Architecture with the Single Stimulation Framework.

��Winning this significant contract reflects well on our capabilities for designing and developing test systems for complex applications such as missile defense,�� said Robert Mehrabian, chairman, president, and chief executive officer of Teledyne Technologies. ��We expect similar test technologies will have use in other markets we serve including energy, marine, aviation, space and environmental applications.��

Teledyne Brown developed the first digital and Hardware-in-the-Loop (HWIL) test and assessment capabilities for missile defense. Through the years, Teledyne Brown developed and supported advancements in test frameworks that established ground test standards for missile defense systems. The company also developed an OSF prototype that incorporates legacy digital and HWIL capabilities to support Ballistic Missile Defense System (BMDS) test and assessment activities. Teledyne Brown has executed BMDS tests and assessments at its headquarters in Huntsville, Ala. and at other locations.

About Teledyne Technologies Incorporated

Teled yne Technologies is a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems. Teledyne Technologies�� operations are primarily located in the United States, Canada, the United Kingdom and Mexico. For more information, visit Teledyne Technologies�� website at www.teledyne.com

Forward-Looking Statements Cautionary Notice

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to a contract award. Actual results could differ materially from these forward-looking statements. Many factors, including funding, continuation and award of government programs, and cuts to defense spending resulting from future deficit reduction measures, including potential automatic cuts to defense spending that may be triggered by the Budget Control Act of 2011, could change the anticipated results. Various risks, including risks associated with government contracts, are identified in Teledyne��s 2010 Annual Report on Form 10-K.

Source: Teledyne Technologies Incorporated

Contact:

Teledyne Technologies Incorporated
Investor Contact:
Jason VanWees, 805-373-4542
or
Press Contact:
Robyn McGowan, 805-373-4540

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

Introducing the 24/7 Wall St. Wire

2012-02-01T08:47:00.001-08:00

from BioHealth Investor
The upcoming week will be a big one for Hollis Eden Pharmaceuticals (HEPH), a company I've written about previously. The company was founded in 1992 and they've not advanced a single drug to a Phase 3 clinical trial.
Their lead compound, called Neumune, prevents loss of white blood cells (neutropenia), loss of platelets (thrombocytopenia), and loss of red blood cells (anemia). This drug has been demonstrated safe in several Phase 1 clinical trials. The biggest indication for Neumune is protection against acute radiation syndrome (ARS).
Project Bioshield, a response to potential terrorist attacks, was signed into law in July 2004. One of the purviews of Project Bioshield is to develop and stockpile drugs to protect Americans from biological, chemical, and nuclear attacks. The anthrax scares in Washington DC are a chilling reminder of why this may be important: I'll leave comments about feasibility aside.
Sensing opportunity, Hollis Eden has been seeking to provide the Government (specifically the Department of Health and Human Services, HHS) with Neumune to protect against a radiation attack. At first glance, this was a smart strategy. Implementation, however, has not been so easy.
HEPH has been trading wildly (according to Yahoo Finance beta = 5.42) over the past few years, due in large part to their attempts to secure a contract for Project Bioshield. In my opinion Hollis Eden has an extremely weak pipeline, and this procurement is their last hope. Trouble is, much like Lucy pulling the football away before Charlie Brown can ever kick it, HHS keeps moving the deadline back. Initially a target date of September 30th 2006 was set, which was pushed back to November 30th, which was pushed back to January 31st��next Wednesday.
So, while I would never recommend HEPH as an investment, I think it will be a fun stock next week for day traders (take a look at Friday afternoon's minute-by-minute chart) and those looking to speculate next week. If HHS! awards a contract to Hollis Eden the stock will take a nice spike. If they don't deliver on a contract, or delay it a third time, I think the stock will take a substantial dive.
There are a couple of ways to play this. A good volatility play is a straddle with March $5 options: open interest on February options is very low, and March options, while still illiquid have a higher open interest.
Now, Project Bioshield has hit some hiccups. A debacle in which a $1B contract was cancelled sent Vaxgen's stock (VXGN.PK) to the Pink Sheets. There have also been calls, by Senators Collins and Lieberman, for a congressional investigation into Project Bioshield.
But here's another twist. A week after announcing the November delay in the HHS procurement, Hollis Eden announced it was selling $26M worth of shares at $6.50, a substantial discount then. The company had $48M in cash at the end of Q3, and were burning on average $6M per quarter: there certainly was danger of running out before the January 31st tentative date set by HHS. Waiting until after a contract award would have meant a higher share price, and a bigger infusion of cash.
One can speculate endlessly about what the secondary offering of stock means about management's confidence in obtaining the contract. To be clear, according to a November press release, Hollis Eden is "not aware of any other company that remains in the competitive range for this contract award".
Whether or not HEPH gets a contract next week is pure speculation. The stock is trading near $6, so shorting it can be risky��shorts I recommended on Avanir Pharmaceuticals (AVNR) and Encysive Pharmaceuticals (ENCY) were both in this range, and both paid off very well! This is a situation where I like to buy puts, and I have purchased some. To be clear, this is highly speculative, but I like the odds of betting on government inaction. Should be a fun week!
http://www.biohealthinvestor.com/

Top Basic Materials Sector Stock Holdings of Canyon Capital

2012-01-31T17:16:00.001-08:00

Following is information on Canyon Capital Advisors�� top holdings in the Basic Materials sector:
Chemtura Corp. (NYSE:CHMT): On 3/31/11 Canyon Capital Advisors reported holding 4,905,317 shares with a market value of $84,371,456. This comprised 5.09% of the total portfolio. On 6/30/11, Canyon Capital Advisors held 5,679,181 shares with a market value of $103,361,099. This comprised 7.85% of the total portfolio. The net change in shares for this position over the two quarters is 773,864. About the company: Chemtura Corporation manufactures plastics and other chemicals. The Company produces urethane polymers; plastic additives, including flame retardants; pool and spa products; seed treatment and miticides; and petroleum additives. Chemtura operates worldwide.
Packaging Corp. of America (NYSE:PKG): On 3/31/11 Canyon Capital Advisors reported holding 1,717,529 shares with a market value of $49,619,412. This comprised 2.99% of the total portfolio. On 6/30/11, Canyon Capital Advisors held 1,717,529 shares with a market value of $48,073,636. This comprised 3.65% of the total portfolio. The net change in shares for this position over the two quarters is 0,000. About the company: Packaging Corp of America manufactures containerboard and corrugated packaging products for use in protecting goods during shipment. The Company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.
LyondellBasell Industries NV (NYSE:LYB): On 3/31/11 Canyon Capital Advisors reported holding 263,398 shares with a market value of $10,417,391. This comprised 0.63% of the total portfolio. On 6/30/11, Canyon Capital Advisors held 263,398 shares with a market value of $10,146,091. This comprised 0.77% of the total portfolio. The net change in shares for this position over the two quarters is 0,000. About the company: LyondellBasell Industries NV is a manufacturing company. The Company produces che! micals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands.
Graphic Packaging Holding Company (NYSE:GPK): On 3/31/11 Canyon Capital Advisors reported holding 0,000 shares with a market value of $0. This comprised 0.00% of the total portfolio. On 6/30/11, Canyon Capital Advisors held 1,500,000 shares with a market value of $8,160,000. This comprised 0.62% of the total portfolio. The net change in shares for this position over the two quarters is 1,500,000. About the company: Graphic Packaging Holding Company is an integrated provider of paperboard and integrated paperboard packaging solutions to multinational beverage and consumer products companies. The Company manufactures folding cartons for frozen and non-frozen food and beverage products.

The oil exporter is moving quickly to ramp up sales to Asia

2012-01-31T12:02:00.001-08:00

TransCanada��s (NYSE:TRP) stalled Keystone XL pipeline took another interesting twist this weekend when Speaker John Boehner said Republican lawmakers will include an approval of the pipeline in a new highway bill. The Obama Administration denied the pipeline builder a permit due to various environmental concerns and put off making a decision on the project until 2013.
A provision in the payroll-tax bill forced President Obama to make an early verdict on the project, which led to its cancellation. While the pipeline may ultimately be built, investors shouldn��t focus on the politics. The real winner in this drama is the nation that is exporting the oil: Canada.
While the U.S. bickers about the fate of Keystone, Canada has made the smart decision to move forward. Canada, which accounts for over 90% of all proven energy reserves outside of the Organization of Petroleum Exporting Countries, has put out an ��open for business�� sign.
Canadian Prime Minister Steven Harper is working hard to reduce his nation��s dependency on the U.S. Currently, around 99% of Canada��s crude oil exports go south, and U.S. and many Canadian officials want to shrink that share. Harper has stressed that his country’s capacity to export energy is a national priority, and he has pledged to speed regulatory approval of energy projects. In a phone call to President Obama, the Prime Minster said that ��Canada will continue to work to diversify its energy exports.��
In order to diversify those exports, Canada has begun to look toward Asia as major buyer. According to a University of Calgary study, accessing emerging markets in Asia would help Canadian E&P companies realize a $13.60 a-barrel price gain by 2030. Harper will meet next month with Chinese President Hu Jintao to discuss energy export options.
Public support for Enbridge��s (NYSE:ENB) Northern Gateway pipeline has surged since the Keystone denia! l. The 6 50-mile pipeline would move oil from Alberta��s rich oil sands to British Columbia��s coast, where it would be exported to Asian markets via a new port. Overall, Canadian commodity exports to Asian-Pacific nations rose nearly 60% during 2011 and should continue to rise as the nation makes emerging Asia a priority.
Focusing On the Energy Superpower
With Prime Minister Harper and host of other officials focused on moving crude oil and natural gas to Asia, the time could be right to add some Canadian energy companies to your portfolio. Most U.S. investors are heavily underweighted in Canada despite its proximity and global standing. Both Enbridge and the broad-based Guggenheim Canadian Energy Income ETF (NYSE:ENY) could be good bets. Odds are that the Northern Gateway pipeline will be built and start exporting to Asia. The Guggenheim fund tracks 34 different firms, including Penn West Petroleum (NYSE:PWE), and it provides a great overall play in Canadian oil-sands E&P producers. The ETF yields roughly 2.8% and charges 0.65% in expenses.
Another value in the Canadian energy sector might be giant EnCana (NYSE:ECA). After spinning off its oil assets as Cenovus Energy (NYSE:CVE), the now pure natural gas player has seen its share price dwindle in the face of record low natural gas prices. However, the company has already begun construction near Kitimat, British Columbia, of an?LNG export facility.
Given Canada��s new fondness for Asia and Asia��s growing appetite for LNG, EnCana could be in a great future position to provide those exports. Shares currently yield over 4%. Similarly, oil-sands-focused producer Suncor (NYSE:SU) could be a great buy. Shares of Suncor have been punished due to a writedown in the value of some of its Libyan assets and the abandonment of a $1.2 billion gas project in Syria. However, no matter which pipeline is built (Keystone or Northern Gateway), Suncor should see increased demand for it! s bitume n crude.

Work-Life Balance: Can You Have It All?

2012-01-29T08:23:00.001-08:00

Excerpted from OFF BALANCE: Getting Beyond the Work-Life Balance Myth to Personal and Professional Satisfaction by Matthew Kelly. Published by arrangement with Hudson Street Press, a member of PenguinGroup (USA), Inc. Copyright (c) Beacon Publishing, 2011.

By Matthew Kelly
It is a common and childish mistake to believe that satisfaction is allabout getting what we want. In truth, we have all gotten what we want onmany occasions and not been satisfied. The very basis of satisfaction isa value structure, or a set of priorities, around which to live yourlife.
Can you have it all? Any reasonable person knows the answer tothis question is no. It is one of the earliest lessons we learn inchildhood, and yet, most of us as adults can be quite childish at times.
The reason you cannot have it all is not because you are ill equippedfor life, or lack talent, or because you don't have enough money. It issimply because one of the governing principles of the universe dictatesthat there are an infinite number of possibilities for any day, year, orlife -- and every day, year, or life is finite. And so, part of growingto maturity, part of growing up, requires that we recognize and acceptthat we cannot have it all.
Most of us recognize that we cannot have it all, but often wesubconsciously fall back into moments of non-acceptance. We know wecan't have it all but we refuse to accept that. You can see how thiskind of pattern could lead to a great deal of frustration at the veryleast and real insanity if taken to the extreme.
The work-life balance discussion has failed to adequately make clearthat you cannot have it all. Just because we started talking aboutwork-life balance and encouraging it, does not mean that people can allof a sudden have everything. I cannot play tennis and golf at the sametime. The finite nature of a certain period of time requires that Ichoose to play tennis or golf! this af ternoon. I cannot do both at once.We have to choose between many options in deciding what to do on anygiven day or in any given hour.
The other way this idea plays out is that excellence in any fieldrequires that we miss out on other things. If you want to be the besttennis player in the world you are going to have to sacrifice a greatmany other things in order to achieve that. Hopefully you have to decidewith a clear head that the things you are giving up are less importantthan becoming the best tennis player in the world.
Success always hasand always will require sacrifice. If success were easy it would becommon. It is difficult and that is why it is rare. More people have thetalent than you would think. Few are willing to make the sacrificesnecessary. This is an easy example because it is far from us. But let usbring it closer. Make it real and personal.

To be the best marketingexecutive in the world requires sacrifice, to be the best HR contact,the best salesperson, the best manager, the best employee, the bestaccount manager... All require sacrifice, and I am not sure that thework-life balance discussion of the last 20 years has adequately pointedout that excellence in any field requires sacrifice.
And perhaps you have no desire to be the best at what you do. Perhapswork is just work, something you have to do. In that state of mind youwill find it very difficult to experience professional satisfaction, andthat will be sure to have an impact on your personal satisfaction as thetwo are intimately linked. Nonetheless, lets bring the example one stepcloser. Perhaps uncomfortably close.
A mother who works cannot expect to be able to do everything for herchildren that a mother who stays at home does. That does not necessarilymean she is a bad mother or that her children are worse off. But thesimple fact remains that her work will require a certain amount of time,energy, and attention -- all of which canno! t be giv en to both work andher children. She may have plenty of time, energy, and attention for herchildren outside of work. Only she can decide that. But the mother whodoes not work will by simple math have more time, energy, and attentionto give her children. The reality is that a working mother cannot expectto do everything a stay at home mother does. There are trade offs thatneed to be made.
In a way the work-life balance discussion has made us feel that we couldhave it all, and we cannot. Most people don't want to hear this andcertainly our culture tell us incessantly that we can have it all, butthe truth is you can't. You cannot be in two places at one time, youcannot have it all, and so we must choose.
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Cramer Positive on VF Corp (VFC)

2012-01-28T22:04:00.001-08:00

Tonight on CNBC’s MAD MONEY, Cramer said that VF Corp (VFC-NYSE) is one of his fallen angels because last week lost 7% on the guidance coming in light after it sold off a low-margin unit is too much. He did talk to the CEO last week, so this is not exactly a huge mover on his part today. He said it will grow 8% annually and 5% internationally. Cramer said it can go back up to where it was easy and the way the company is followed on the street you may see many upgrades on it. He would be a buyer ahead of the February 6 earnings report. The stock did trade up 1% to $74.78 after Cramer noted this tonight.
Jon C. Ogg
January 29, 2007

Making a Short Trade

2012-01-28T17:09:00.001-08:00

There are some trading issues far more important when shorting a stock, or playing the downside through buying puts, than holding a simple long position in a stock.
* Liquidity: You really should not short, in any form, a stock that is not highly liquid, which means many millions of shares outstanding and hundreds, if not thousands, of put option contracts trading each day at each available strike price.
Without liquidity, you can be right and wrong at the same time — right about the company but stuck in such a way that you cannot quickly liquidate your short position and get the profits you deserve. Liquidity should be a prime consideration when establishing short-side positions.
* Availability: Some stocks are hard to short because their shares are not easily available to borrow, for a variety of reasons. And if you are finding it hard to locate the shares to conduct the transaction, it means there is either a large short position in the stock already or the stock is not held by a large number of individual shareholders, which means it is less liquid than trading statistics may indicate.
* Outstanding Short Position: This is the number of shares of a company held short, measured in absolute numbers, or as a percentage of the float of the stock. If this position is large, more than 10% to 20% of a company’s shares, the word is out — bad news is already incorporated in the stock price. For the most part, I avoid stocks with large short positions, and so should you.
* Cash for Margin Calls: If a stock moves the wrong way (up) and you have shorted the stock outright instead of having bought put options, you are going to need cash to meet margin calls — perhaps daily. This is a nasty situation that ties up your capital, which is why I typically look toward puts or LEAP puts for shorting.
If you enter a short position! , be awa re that things can easily move the wrong way and you will need cash to fund the margin call or else you will have to go into the open market and buy the stock to cover your short position.
* Timing: Timing in life is almost everything (where would I be if I had not been invited to the party where I met my wife?), and the same is true for managing short positions. You should set time horizons for how long it will take a position to pan out and, if it does not, it is time to take some losses and move on.
Unlike long positions, where investors can wait out a slowdown in a stock’s appreciation or a dip in share value, short positions are expensive to maintain and puts are contracts that can expire worthless — the clock is always ticking.
Most good short positions take no more than three months to move in your favor; longer-term shorts, which should always be managed through LEAPS, can run much longer but are less typical than the six- to 12-week position.
How to Cover: Believe it or not, you can end up owning a stock and shorting it if you are not careful with your instructions to your broker. When you call or go online to cover a short position, you must specify that this purchase is to cover the open short position. If you do not, you could end up buying the shares and have them sit in your account and also have an open short position at the same time.
Because short-sellers might find themselves exiting their positions in a hurry, it’s important to take the time to ensure that you issue clear instructions to your broker so that you get out when you want to!
Let’s wrap up: The real issue, of course, is picking the right company that’s going south. But you need to mindful of all of the things I discussed today, and that requires some planning, some preparation, some discipline and some clarity of thought.
You used that on the long side; now, use it make short-side profits, as well.

Private Equity Firms Shovel Millions to Congress: MapLight Analysis

2012-01-27T09:53:00.001-08:00

Political Action Committees and individuals connected to private equity and investment firms have given more than $17 million to lawmakers that have been serving since the 109^th Congress adjourned in 2006, a report released last week by the nonpartisan political research firm MapLight shows.

From Jan. 1, 2007, to June 30, 2011, Democrats have taken in $10,871,919, while their Republican counterparts received $6,553,793, the report says. Of the Democrats’ total, President Barack Obama accounts for $1,921,490 while his 2008 Republican opponent for the White House, Sen. John McCain, R-Ariz., has accepted $1,246,575.

Mitt Romney, the current GOP presidential candidate front-runner, has been criticized by his rivals for his career in private business. Texas Gov. Rick Perry, Newt Gingrich and Jon Huntsman, who left the race on Monday, laid into Romney on Jan. 9 for his years at Bain Capital, the private-equity firm he ran until the mid-1990s. Both Perry and Gingrich accused Romney of having “looted” companies and firing workers for his own gain.

The accompanying chart reflects analysis conducted by MapLight, which shows contributions from private equity and investment firms to members of Congress. Contribution industry classification provided by OpenSecrets.

WERN, CY, TCBI, CLDA, PSSI - Percentage Gainers at NASDAQ

2012-01-27T04:48:00.001-08:00

Werner Enterprises, Inc. NASDAQ:WERN opened at $23.69 and with a gain of 8.36% closed at $25.53. Company’s fifty days average price is $22.49 whereas it has a market capitalization $1.85 billion.
The total of 4.49 million shares was transacted over last trading day.
Cypress Semiconductor Corporation NASDAQ:CY opened at $20.95 and with a gain of 7.99% closed at $22.04. Company’s fifty days average price is $17.89 whereas it has a market capitalization $3.66 billion.
The total of 7.07 million shares was transacted over last trading day.

Texas Capital Bancshares, Inc. NASDAQ:TCBI opened at $23.61 and with a gain of 7.54% closed at $24.66. Company’s fifty days average price is $20.75 whereas it has a market capitalization $907.41 million.
The total of 1.15 million shares was transacted over last trading day.

Clinical Data, Inc. NASDAQ:CLDA opened at $25.20 and with a gain of 5.48% closed at $26.76. Company’s fifty days average price is $17.05 whereas it has a market capitalization $801.60 million.
The total of 1.05 million shares was transacted over last trading day.

PSS World Medical, Inc. NASDAQ:PSSI opened at $23.32 and with a gain of 5.18% closed at $24.37. Company’s fifty days average price is $22.23 whereas it has a market capitalization $1.35 billion.
The total of 1.26 million shares was transacted over last trading day.

A New Royalty Trust From SandRidge Energy

2012-01-26T23:35:00.001-08:00

After the successful 2011 debuts of SandRidge Energy's (NYSE: SD  ) two oil and gas royalty trusts, SandRidge Mississippian Trust I (NYSE: SDT  ) and SandRidge Permian Trust (NYSE: PER  ) , the Oklahoma-based company is at it again.
If it ain't broke
Moving to exploit the same region that made the Mississippian Trust I a success, the parent company has filed the initial IPO paperwork with the SEC to give birth to SandRidge Mississippian Trust II, with the proposed ticker symbol "SDR."
I'm a big fan of SDT and the Mississippi Lime region. The play has a significant upside to many of the unconventional plays being developed right now. For example, the region is believed to contain 52%-55% oil, versus other plays that contain a higher percentage of not-so-lucrative dry gas. From a production standpoint, the play has great economics: Limestone's porosity and natural fractures can reduce drilling expenses by half.
The stats
Now that we have three SandRidge trusts to think about, let's run a side-by-side comparison of the whole family.

?
Mississippian Trust I

Mississippian Trust II

Permian

Royalty % -- Initial Wells 90% 80% 80%

Royalty % -- Development Wells 50% 70% 70%

No. of Initial Wells 37 67 509

No. of Expected Development Wells 123 206 888

Rese! rves Att ributable to Trust 19.3 MMBoe 26.1 MMBoe 21.8 MMBoe
Source: Company filings.
The new trust has both a higher royalty stake in developing wells and a larger estimated reserve base compared to its Mississippian sister. In the end, though, the only thing that matters is the trusts' production numbers.
Show me the money
SandRidge expects target distributions for the Trust to increase through the second quarter of 2016; the Trust itself is set to expire at the end of 2031. Let's take a look at the more immediate distribution schedule.

2012

Target Distribution

Q1
$0.40

Q2
$0.58

Q3
$0.59

Q4
$0.61

Total
$2.18

Source: Company filings.
It should be noted that the first-quarter payment is lower because of administrative costs associated with the formation of the trust. The expected total payout for 2013 is $2.74.
Foolish takeaway
It will likely be a few months before SandRidge Mississippian Trust II is officially on the books, as paperwork takes time. Interested investors can monitor the Trust's progress by adding SandRidge Energy to My Watchlist.
Looking for dividend stocks you can invest in now? Check out a brand-new free report from Motley Fool's expert analysts called "11 Rock-Solid Dividend Stocks." To get instant access to the names of these 11 dividend stocks, click here -- it's free.

MSFT: Nomura Skeptical Of YHOO, RIMM Talk

2012-01-26T18:30:00.001-08:00

Nomura Equity Research’s Rick Sherlund, who maintains a Buy rating on shares of Microsoft (MSFT)?, this afternoon issued a note to clients to refute rumors floating around saying the company will acquire Yahoo! (YHOO) or possibly Research in Motion (RIMM).
Sherlund maintains a Buy rating on Microsoft shares and a $32 price target. As far as vague rumors that have floated around today, Sherlund states simply, “we do not see a compelling strategic fit and think this is unlikely.”
On the intense speculation regarding Yahoo!, he has a little more to offer on why an outright buyout makes no sense, writing?
We believe Microsoft has the benefit of scale in search through their current relationship with Yahoo and see no need to acquire the company. ?It is possible that Microsoft may be part of a larger group to invest in a minority position in Yahoo for some strategic business relationship, but this is very different than Microsoft buying Yahoo, that ship sailed by a few years ago and is unlikely, in our view, to be revisited given that Microsoft now has the scale they desired in search through their existing relationship with Yahoo. There are other parts of Yahoo that are likely of strategic interest to Microsoft, but there are likely smarter ways to work together than buying the company.

Whole Foods And Supervalu

2012-01-26T13:16:00.001-08:00

Investor sentiment varies considerably between Whole Foods (WFM) and SuperValu (SVU), despite the fact that these two companies operate in the same (or similar) industry. This difference in sentiment is exemplified by the opinion of a one Jim Cramer, who notes that even though SuperValu has a substantially lower P/E, Whole Foods is actually the cheaper stock because of its lower PEG ratio. What's wrong with this surface analysis?

First, a PEG ratio is only as good as its underlying assumptions. In this case, Cramer is assuming Whole Foods will grow at an 18% annual rate. But Whole Foods has only grown its revenue at an 8% annual clip over the last three years, and at 6% year-over-year in its most recent quarter. As such, either revenue has to pick up in a big way, or Cramer is assuming Whole Foods will be able to grow its margins rather significantly every year.

This growth rate assumption is just that - an assumption. And history suggests we humans tend to err in our growth assumptions while at the same time remaining very confident in them - a bad combination. Research by David Dreman illustrates this problem, and helps explain why stocks with low P/E's dramatically outperform those with high P/E's, even with the same industry: because we are pretty poor at predicting the future growth rates of individual companies.

So while Whole Foods is clearly the better performing business as of late, having posted far superior margins and same-store sales increases, it's important not to be over-reliant on a large growth assumption. Comparing the price of the businesses as they stand today (i.e.
removing growth from the equation), SuperValu has ttm operating earnings of $850 million while Whole Foods has ttm operating earnings of $550 million. And yet SuperValu can be purchased for an enterprise value of about $8 billion (for an EV/EBIT ratio of less than 10) while Whole Foods comes at a cost of $11 billion (for an EV/EBIT of 20).

As such, you're paying more! than tw ice as much for Whole Foods as you are for SuperValu. In so doing, you are making an assumption that there will be a consistently large growth rate differential between the two companies. Considering what we know about how good we are at making assumptions about growth rates, you might not want to make that bet.

The second problem is that even if Whole Foods were to achieve such growth rates, that growth is not free. It takes capital to grow, particularly in a business such as this one. Companies in the grocery business need to buy or lease land, pay for construction, finance inventory growth, add or enlarge distribution centres and add staff if they are going to grow. That capital could come from debt, which would increase Whole Foods' enterprise value (thereby giving shareholders a smaller stake in the company's operating earnings), or it could come from retained earnings, which would otherwise accrue to shareholders.

In the last few years, Whole Foods has grown through a combination of both, as it has used non-cancelable leases (a form of debt) and cash from operations (that could otherwise have been paid out to shareholders) to finance its growth.

One manner in which the contrast between the capital requirements of these two companies can be seen is in their respective dividend yields. Whole Foods pays a dividend of less than 1% while SuperValu pays almost 5%. At the same time, a low-growth SuperValu will have (and has had) much more capacity to deploy the cash flow it doesn't pay out to shareholders towards paying down its debt, reducing its enterprise value in the process (thus making it cheaper).

This isn't to say that Whole Foods should stop growing and should instead pay out its earnings. Such a statement is beyond the scope of this article, and would involve a discussion of a number of issues including business risk and returns on equity and capital. It is to say, however, that there is a cost to growth, though the simplistic PEG ratio ignores this im! portant element.

SuperValu is clearly cheaper than Whole Foods, until you start making assumptions about growth. It's important to recognize the drawbacks of this "assumption" approach, however, and realize that growth must be financed with additional capital.

Disclosure: Author has a long position in shares of SVU{$end}

Kuwait Selects France¡¯s Total as Partner for $9 Billion China Refinery

2012-01-26T08:01:00.001-08:00

Kuwait chose Total (FP) SA as the thirdpartner to build a $9 billion oil refinery in China, the head ofKuwait Petroleum Corp. said, as the Gulf state seeks a footholdin Asia��s biggest consumer of refined products.
��We are negotiating now with Total, and hopefully we willreach an agreement based on a memorandum of understanding,��Chief Executive Officer Farouk Al-Zanki said in a telephoneinterview today from Kuwait City. ��We��d like to sign it inFebruary.��
Total would take part of Kuwait��s 50 percent stake in therefining and chemical venture, with the Paris-based company��sshare ��still to be decided,�� Al-Zanki said. China Petroleum &Chemical Corp. holds the remaining 50 percent. The complex,scheduled to start operating in 2015, will include a refinerywith an oil-processing capacity of 15 million metric tons ayear, or about 300,000 barrels a day, as well as a 1 millionton-a-year ethylene plant, China Petroleum said in November.
Kuwait Petroleum is pushing ahead with the joint venture insouthern China��s Guangdong province and a 200,000 barrel-a-dayrefinery in neighboring Vietnam as part of a strategy to expandabroad, according to Al-Zanki. Kuwait is the fourth-biggestproducer in the Organization of Petroleum Exporting Countries,and Asia is its biggest market, accounting for 84 percent of theGulf state��s crude exports in 2010, according to OPEC data.
Saudis in Asia
Other Persian Gulf crude producers are making similarefforts in Asia. Saudi Arabian Oil Co., known as Saudi Aramco,plans to build refineries in China and Indonesia as part of a$200 billion spending program during the next decade, AramcoChief Executive Officer Khalid al-Falih said in a Jan. 14interview in Dhahran. Refined products can fetch higher pricesthan oil, and China, Vietnam and Indonesia are among Asia��sfastest-growing economies.
State-run Kuwait Petroleum and Japanese refiner IdemitsuKosan Co. (5019) each has a 35.1 percent stake in the Nghi Son refineryin Vietnam. State-controll! ed Vietn am Oil & Gas Group holds 25.1percent of the venture, and Mitsui Chemicals Inc. (4183) has the rest.
The partners have yet to agree on currency exchange ratesto be used for the Vietnamese project, Al-Zanki said. ��There��sa team looking closely at ways and means to secure the foreignexchange, while other financial issues are being resolved.��
Resolving Issues
Al-Zanki expects the partners in Nghi Son to resolve theirremaining issues by the end of February, while Kuwait Petroleumand China Petroleum are ��committed�� to their joint venture andhave formed a team to determine how best to proceed.
The Kuwaiti company also plans to build an oil refinery athome, at a cost of at least 4 billion dinars ($14.4 billion), tohelp meet domestic demand. The 615,000 barrel-a-day Al-Zourplant is still awaiting final approval from the SupremePetroleum Council, the country��s highest decision-making bodyfor oil policy.
Kuwait National Petroleum Co., the state-run refiner, isseeking foreign companies to work as consultants on the Al-Zourproject, which stalled three years ago amid politicalopposition.

Wall Street Stages Intraday Reversal, S&P Bats At A Thousand

2012-01-25T22:37:00.001-08:00

After starting on the defensive once again on further fallout from weakness in global equities markets, Wall Street reversed course near the mid-point of Wednesday’s trading session, as major market averages shot to their highs on the session.
The S&P 500 Index (GSPC), which dipped about 1% lower at its quickly realized lows early in the trading session,wiped out the early deficit.Worries about the persistent weakness inAsian markets influenced the early trading, as stocks followed the lead ofChina, where the Shanghai Composite lost more than 4% Wednesday.
However, after the quick slump, somemeasure of bargain-hunting returned to the market. Bullish investors increasingly have become conditioned to step in whenever the market pulls back, regardless of the modesty of the relative attractiveness of the new entry point. But everytime the bulls step up, the bears are forced to cover short positions, adding to the volatility of the underlying market.
Some mediaaccounts also suggested that talk of a second roundof of stimulus spending has helped mobilize some of the animal spirits on Wall Street. Though, given that the majority of the stimulus capital in the first spending initiative hasn’t been put to work yet, there’s little reason to put much stake in talk of another bill.
Nevertheless, the S&P 500 has improved by about 8 points intraday, and while it hasn’t quite gotten back to the 1000-point mark, it has flirted with short-term technical resistance at about 998.

Seaspan: Dividend Dynamo or Blowup?

2012-01-25T16:34:00.001-08:00

Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable.
Let's examine how Seaspan (NYSE: SSW  ) stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether Seaspan is a dividend dynamo or a disaster in the making.
1. Yield
First and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.
Seaspan yields 5.3%, considerably higher than the S&P 500's 2.1%.
2. Payout ratio
The payout ratio might be the most important metric for judging dividend sustainability. It compares the amount of money a company paid out in dividends last year to the earnings it generated. A ratio that's too high -- say, greater than 80% of earnings -- indicates that the company may be stretching to make payouts it can't afford, even when its dividend yield doesn't seem particularly high.
Seaspan doesn't have a payout ratio because it didn't generate earnings to common shareholders last year.
3. Balance sheet
The best dividend payers have the financial fortitude to fund growth and respond to whatever the economy and competitors throw at them. The interest coverage ratio indicates whether a company is having trouble meeting its interest payments -- any ratio less than five is a warning sign. Meanwhile, the debt-to-equity ratio is a good measure of a company's total debt burden.
Seaspan has a debt-to-! equity r atio of 283% and an interest coverage rate of 5.2 times.
4. Growth
A large dividend is nice; a large growing dividend is even better. To support a growing dividend, we also want to see earnings growth.
Over the past five years, Seaspan's quarterly dividend has fallen from $0.42 to $0.18. After paying preferred dividends, Seaspan's earnings last year were negative.
The Foolish bottom line
Despite its high yield and manageable debt, Seaspan doesn't exactly qualify as a "dividend dynamo" right now due to its earnings losses. Dividend investors will want to keep an eye on the health of the containership business and Seaspan's earnings to see when it'll be able to support -- and hopefully grow -- its dividend. If you're looking for some great dividend stocks, check out "Secure Your Future With 11 Rock-Solid Dividend Stocks," a special report from the Motley Fool about some serious dividend dynamos. I invite you to grab a free copy to discover everything you need to know about the 11 generous dividend payers -- simply click here.

MF Global 'Starting to Smell Like' Fraud: Ex-SEC Accounting Chief

2012-01-25T11:29:00.001-08:00

NEW YORK (TheStreet)--MF Global(MFGLQ.PK) is still missing an estimated $600 million more than a week after it filed for bankruptcy, and at least one high-profile accounting expert said Wednesday he is beginning to sense fraud may be the explanation.

"My concern is that at the very end as things got very dire, as liquidity dried up, that you had some people in collusion go in and commit fraud here and I don't know that that did occur, but that's what it's starting to smell like," Lynn Turner, former chief accountant at the Securities and Exchange Commission told Bloomberg Television Wednesday.
A spokesman for the Commodity Futures Trading Commission, one of MF Global's regulators, declined to comment, as did an MF Global spokesman. A call to MF Global's bankruptcy trustee was not returned.
"It's amazing that we're sitting here today trying to find out today what happened with $600 million," Turner said. "It's like it just vanished into thin air and the fact that people today can't tell us where the $600 million went is not a good sign. The fact that they were held in custodial accounts that someone should have been on top of only further complicates the issue and makes it even more concerning."
MF Global's bankruptcy filing on Oct. 31 came after the securities dealer disclosed more than $6 billion in bets on European sovereign debt, prompting a ratings downgrade and a stock plunge of 66% in just four days. The failure has raised investor anxiety about the stability of larger securities dealers including Jefferies(JEF), Morgan Stanley(MS) and Goldman Sachs(GS). Jon Corzine, who resigned as MF Global CEO Nov. 4 and Chris Flowers, a major MF Global investor and close friend of Corzine, previously held top posts at Goldman Sachs.
-- .
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Intuitive Surgical Beats Up on Analysts Yet Again

2012-01-25T01:08:00.001-08:00

Intuitive Surgical (Nasdaq: ISRG  ) reported earnings on Jan. 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Intuitive Surgical beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share increased significantly.
Gross margins improved, operating margins grew, net margins shrank.
Revenue details
Intuitive Surgical logged revenue of $497 million. The 13 analysts polled by S&P Capital IQ looked for sales of $484 million. Sales were 28% higher than the prior-year quarter's $389 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details
EPS came in at $3.75. The 14 earnings estimates compiled by S&P Capital IQ averaged $3.35 per share. GAAP EPS of $3.75 for Q4 were 24% higher than the prior-year quarter's $3.02 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 73.0%, 50 basis points better than the prior-year quarter. Operating margin was 40.2%, 70 basis points better than the prior-year quarter. Net margin was 30.4%, 70 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $461 million. On the bottom line, the average EPS estimate is $3.16.
Next year's average estimate for revenue is $2 billion. The average EPS estimate is ! $14.18.< /p>
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,939 members out of 4,144 rating the stock outperform, and 205 members rating it underperform. Among 1,281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,238 give Intuitive Surgical a green thumbs-up, and 43 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intuitive Surgical is hold, with an average price target of $433.09.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Intuitive Surgical the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.

Add Intuitive Surgical to My Watchlist.

More Plans From Starbucks (SBUX) To Fix It Broken Business

2012-01-24T14:50:00.001-08:00

Starbucks (SBUX) seems hell bent on cutting its way to profitability. It may work, but it is also possible that the economy has gone through such an upheaval that the coffee chain no longer has much of a place in the fast food restaurant business.
According to The Wall Street Journal, ?”After years of broadening its customer base and making forays into entertainment, Starbucks has made its top priority retaining its existing patrons.” But, what if those “existing patrons” have left the building?
Most of the moves that Starbucks has made involved firing people and closing stores. The firm does offer cheaper coffee and has a breakfast menu that is less expensive than it used to be, but the chain may not be able to escape the image that it spent years building. Starbucks is perceived as a place which serves the best $4 cup of coffee in the world and charges $3 for donuts. Customers who have turned away from that kind of spending may not have been into a Starbucks for a year. Convincing them that Starbucks coffee?is cheaper than the local deli may be tough.
Starbucks has certainly become more focused on its original business of selling coffee. It does not push?marketing CDs as hard as it used to. The $500 latte and espresso machines that the stores used to try to sell customers have been moved into the back room or are used as paper weights for the copies of The New York Times that the chain still?offers in most stores, but those changes are not likely to bring back enough consumers during a recession to get Starbucks revenue growing as fast as it did for the last decade.
Starbucks may put on a good show about how much it has changed its plans to increase store traffic. But, the recession is deepening and coffee that costs more than $1 a cup is a luxury. The near-term future for the company is about cost cutting and nothing more.
Douglas A. McIntyre

Does St. Jude Medical Miss the Grade?

2012-01-24T09:36:00.001-08:00

Margins matter. The more St. Jude Medical (NYSE: STJ  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, comparisons to sector peers and competitors, and any trend that may tell me how strong St. Jude Medical's competitive position could be.
Here's the current margin snapshot for St. Jude Medical and some of its sector and industry peers and direct competitors.

Company

TTM Gross Margin

TTM Operating Margin

TTM Net Margin

St. Jude Medical 73.9% 25.3% 16.3%

Endologix (Nasdaq: ELGX  ) 77.8% (16.4%) (16.8%)

Volcano (Nasdaq: VOLC  ) 65.9% 6.0% 2.1%

C.R. Bard (NYSE: BCR  ) 62.3% 28.3% 12.2%
Source: S&P Capital IQ. TTM = trailing 12 months.
Unfortunately, that table doesn't tell us much about where St. Jude Medical has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its pro! ducts. I f it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.
Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter. You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.
Here's the margin picture for St. Jude Medical over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.
Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.
Here's how the stats break down:

Over the past five years, gross margin peaked at 74.7% and averaged 73.7%. Operating margin peaked at 26.2% and averaged 25%. Net margin peaked at 17.6% and averaged 14.6%.

TTM gross margin is 73.9%, 20 basis points better than the five-year average. TTM operating margin is 25.3%, 30 basis ! points b etter than the five-year average. TTM net margin is 16.3%, 170 basis points better than the five-year average.
With recent TTM operating margins exceeding historical averages, St. Jude Medical looks like it is doing fine.
If you take the time to read past the headlines and crack a filing now and then, you're probably ahead of 95% of the market's individual investors. To stay ahead, learn more about how I use analysis like this to help me uncover the best returns in the stock market. Got an opinion on the margins at St. Jude Medical? Let us know in the comments below.

Add St. Jude Medical to My Watchlist.

Add Endologix to My Watchlist.

Add Volcano to My Watchlist.

Add C.R. Bard to My Watchlist.

Injunction against Life Technologies Upheld By Court

2012-01-24T04:28:00.001-08:00

Celsis In Vitro Inc today revealed that the Court of Appeals of the United States acting in behalf of the Federal Circuit in Washington DC has upheld a preliminary injunction against Life Technologies Corporation (LIFE) on its violation of a US Patent. Life Technologies is the mother company of co-defendants Invitrogen Corporation and CellzDirect LLC, and the patent from Liverpool deals with methods pertaining to the production of multi-cryopreserved hepatocytes.
Chief Judge Randall Rader, in a precedential opinion, said that the Federal Court found no reversible error in the preliminary injunction penned by Judge Milton Shadur, who presided the US District Court for the Northern District of Illinois in Chicago. The court concluded that Celsis IVT has sufficiently met each of the four factors in determining the preliminary injunction.
The Federal Circuit agreed that Celsis IVT has manifested a responsible level of success of infringement by LTC in its confidential standard process and that the former has successfully thumbed down LTC��s challenge on invalidity with obvious intention. The court also confirmed that Celsis IVT would suffer irreparable damage in the absence of a preliminary injunction.
According to Jay LeCoque, Celsis International CEO, management is pleased with the decision of the Federal Court in its reaffirmation of the company��s Liverpool patent rights and privileges.
LIFE has been a part of NASDAQ since late 2008, rising from the initial $26.10 to the all-time high of $55.71, recorded in May 2011.? Next, the stock dropped to $35.84, but it seems to be back on track, gaining more than since the beginning of 212.

INTL FCStone Inc. Reports Fiscal Fourth Quarter and Full Year 2011 Financial Results

2012-01-23T18:02:00.001-08:00

Record annual adjusted operating revenues - up 51% (up 35% for Q4)
Record annual adjusted net income - up 106% (up 27% for Q4)
NEW YORK, Dec. 13, 2011 (CRWENEWSWIRE) — INTL FCStone Inc. (the ‘Company’) (Nasdaq:INTL) today announced its financial results for the fiscal fourth quarter and year ended September 30, 2011. Certain financial metrics discussed in this press release are non-GAAP, reflecting marked-to-market differences in the Company’s Commodity & Risk Management Services segment. A reconciliation of those metrics to GAAP equivalents is provided in the table below, and further discussion of the use of non-GAAP metrics will be provided in the Company’s Form 10-K to be filed with the Securities and Exchange Commission (”SEC”).
Sean O’Connor, CEO of INTL FCStone Inc., stated, “Fiscal 2011 was a record year for the company in both adjusted operating revenues and adjusted net income. This was achieved despite difficult market conditions, and is validation of our unwavering commitment to provide high quality customer facilitation and execution in the commodities and financial markets. In addition, we executed a number of strategic initiatives during the year that have expanded our franchise and will provide growth going forward.”
INTL FCStone Inc. Summary Financials
Consolidated financial statements for the Company will be included in the Company’s annual report on Form 10-K to be filed with the SEC. The Form 10-K will also be made available on the Company’s website at www.intlfcstone.com.
Conference Call & Web Cast
A conference call will be held tomorrow, Wednesday, December 14, 2011 at 9:00 a.m. ET. A live web! cast of the conference call as well as additional information to review during the call will be made available in PDF form on line on the Company’s corporate web site at http://www.intlfcstone.com. Participants can also access the call by dialing 1-888-461-2030 (within the United States), or 1-719-325-2284 (international callers) approximately ten minutes prior to the start time.
A replay of the call will be available at http://www.intlfcstone.com approximately two hours after the call has ended and will be available through December 22, 2011. To access the replay, dial 1-888-203-1112 (within the United States), or 1-719-457-0820 (international callers) and enter the replay passcode 245 2514.
About INTL FCStone Inc.
INTL FCStone Inc. (INTL) provides execution and advisory services in commodities, currencies and international securities. INTL’s businesses, which include the commodities advisory and transaction execution firm FCStone Group, serve more than 10,000 commercial customers in more than 100 countries through a network of offices in twelve countries around the world.
Further information on INTL is available at www.intlfcstone.com.
Forward Looking Statements
This press release includes forward-looking statements including statements regarding the combined company. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to INTL FCStone Inc., are intended to identify forward-looking statements.
These forward-looking statements are lar! gely bas ed on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by INTL FCStone Inc. with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.
These forward-looking statements speak only as of the date of this press release. INTL FCStone Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements.
Source: INTL FCStone Inc.
Contact:
INTL FCStone Inc.
Investor inquiries:
Bill Dunaway, CFO
1-866-522-7188
bill.dunaway@intlfcstone.com

$ 1.968.9
Three Months Ended September 30, Fiscal Year Ended September 30,
(Unaudited) (in millions, except share and per share amounts) 2011 2010 % Change 2011 2010 % Change
Total operating revenues $ 108.1 $ 65.9 64 % $ 423.2 $ 269.0 57 %
Interest expense 2.2 2.4 (8)% 11.3 9.9 14 %
Net revenues 105.9 63.5 67 % 411.9 259.1 59 %
Compensation and benefits 47.0 31.2 51 % 176.6 104.2 69 %
Clearing and related expenses 19.0 16.5 15 % 77.4 68.2 13 %
Introducing broker commissions 6.3 4.8 31 % 24.0 18.9 27 %
Other non-interest expenses 20.6 15.7 31 % 74.4 49.9 49 %
Total non-interest expenses 92.9 68.2 36 % 352 .4 241.2 46 %
Income (loss) from continuing operations, before tax 13.0 (4.7) (a) 59.5 17.9 232 %
Income tax expense (benefit) 5.4 (1.7) (a) 22.5 6.4 252 %
Income (loss) from continuing operations 7.6 (3.0) (a) 37.0 11.5 222 %
Income from discontinued operations, net of tax – 1.3 (100)% 0.2 0.6 (67)%
Income (loss) before extraordinary loss 7.6 (1.7) (a) 37.2 12.1 207 %
Extraordinary loss – (2.8) (100)% – (7.0) (100)%
Net income (loss) 7.6 (4.5) (a) 37.2 5.1 629 %
Add: Net (income) loss attributable to noncontrolling interests (0.1) – (a) 0.1 0.3 (67)%
Net income attributable to INTL FCStone Inc. common stockholders $ 7.5 $ (4.5) (a) $ 37.3 $ 5.4 591 %
Earnings (loss) per share:
Basic
Income (loss) from continuing operations $ 0.41 $ (0.18) (a) $ 2.06 $ 0.68 203 %
Income from discontinued operations – 0.07 (100)% 0.01 0.03 (67)%
Extraordinary loss – (0.15) (1 00)% – (0.40) (100)%
Net income attributable to INTL FCStone Inc. common stockholders $ 0.41 $ (0.26) (a) $ 2.07 $ 0.31 568 %
Diluted
Income (loss) from continuing operations $ 0.39 $ (0.18) (a) $ 1.95 $ 0.66 195 %
Income from discontinued operations – 0.07 (100)% 0.01 0.03 (67)%
Extraordinary loss – (0.15) (100)% – (0.39) (100)%
Net income (loss) attributable to INTL FCStone Inc. common stockholders $ 0.39 $ (0.26) (a) $ 0.30 553 %
Weighted average number of common shares outstanding:
Basic 17,789,967 17,358,689 2 % 17,618,085 17,306,019 2 %
Diluted 18,696,536 17,358,689 8 % 18,567,454 17,883,233 4 %
Segmental operating revenues (non-GAAP) reconciliation:
Total operating revenues, as reported (GAAP) $ 108.1 $ 65.9 64 % $ 423.2 $ 269.0 57 %
Marked-to-market adjustment (4.6) 10.8 (a) (8.4) 6.0 (a)
Adjusted operating revenues (non-GAAP) (b) $ 103.5 $ 76.7 35 % $ 414.8 $ 275.0 51 %
Represented by:
Commodity and risk management services $ 58.9 $ 41.0 44 % $ 244.2 $ 135.8 80 %
Foreign exchange 17.5 11.7 50 % 59.3 47.5 25 %
Securities 7.3 6.2 18 % 30.5 20.8 47 %
Clearing and execution services 14.8 14.3 3 % 66.1 61.8 7 %
Other 5.1 2.1 143 % 14.3 61 %
Corporate unallocated (0.1) 1.4 (a) 0.4 0.2 100 %
Adjusted operating revenues (non-GAAP) (b) $ 103.5 $ 76.7 35 % $ 414.8 $ 275.0 51 %
Net income attributable to INTL FCStone Inc. common stockholders
(non-GAAP) reconciliation:
Net income (loss) attributable to INTL FCStone Inc. common stockholders, as reported (GAAP) $ 7.5 $ (4.5) (a) $ 37.3 $ 5.4 591 %
Exclude income from discontinued operations – (1.3) 100 % (0.2) (0.6) 67 %
Exclude extraordinary loss – ; 2.8 100 % – 7.0 100 %
Marked-to-market adjustment (non-GAAP) (4.6) 10.8 (a) (8.4) 6.0 (a)
Tax effect on marked-to-market adjustment at blended rate of 37.5% (non-GAAP) 1.8 (4.1) (a) 3.2 (2.3) (a)
Adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations (non-GAAP) (c) $ 4.7 $ 3.7 27 % $ 31.9 $ 15.5 106 %
(a) Comparison not meaningful.
(b) Adjusted operating revenue is a non-GAAP measure that represents operating revenues adjusted by marked-to-market differences in the Company’s Commodity & Risk Management Services segment, as shown in the table. The table above reflects all reconciling items between the GAAP operating revenues and non-GAAP adjusted operating revenues. For a full discussion of management’s reasons for disclosing these adjustments, see ‘Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations’ in the Form 10-K for the fiscal year ended September 30, 2010.
(c) Adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations is a non-GAAP ! measure that represents net income attributable to INTL FCStone Inc. common stockholders adjusted by the after-tax marked-to-market differences in the Company’s Commodity & Risk Management Services segment, the extraordinary loss related to the decrease in net deferred tax assets related to the FCStone merger and the income from discontinued operations, net of tax. The table above reflects all reconciling items between the GAAP net income attributable to INTL FCStone Inc. common stockholders and non-GAAP adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations.

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

India Stock Futures Rise; Sensex May Extend Biggest Advance in Two Weeks

2012-01-23T12:51:00.001-08:00

India��s stock futures rose, signalingbenchmark indexes may extend the biggest gains in two weeks, asthe fastest pace of U.S. manufacturing growth in six monthsbolstered confidence in the global economy.
SGX S&P CNX Nifty Index futures (IHA) for January deliveryadvanced 0.1 percent to 4,781.5 at 10:25 a.m. in Singapore. Thefutures are derived from the underlying S&P CNX Nifty (NIFTY) Index,which climbed 2.8 percent to 4,765.30 yesterday. The BSE IndiaSensitive Index (SENSEX), or Sensex, added 2.7 percent to 15,939.36. Bothgauges jumped the most yesterday since Dec. 21.
A U.S. factory index from the Institute for SupplyManagement climbed to 53.9 last month from 52.7 in November,data from the group showed yesterday. The figures added toreports showing stronger manufacturing in India, China, the U.K.and Australia. India��s manufacturing industry grew the most insix months, a Purchasing Managers�� Index from HSBC Holdings Plcand Markit Economics showed on Jan. 2.
��The Indian economy has tremendous resilience,�� Nirmal Jain, chairman of brokerage India Infoline Ltd. (IIFL), said in aBloomberg UTV interview yesterday. ��The stock market runs aheadof the macro fundamentals.��
HSBC and Markit Economics are due to release theirpurchasing managers�� index for the services industries today.Their purchasing managers gauge for manufacturing rose to 54.2from 51 in November, according to a Jan. 2 statement.
Gas Discoveries
Reliance Industries Ltd. (RIL) may be active today after peoplewith knowledge of the matter said the company and partner BP Plcwon government approval to spend $1.5 billion to develop gasdiscoveries. Shares of Bharat Petroleum Corp., India��s second-biggest state refiner, may move as the company is offering tosell 11,000 metric tons of naphtha for loading in January,according to a document obtained by Bloomberg News.
The Sensex slumped 25 percent in 2011, the most since 2008,on concern a slumping rupee and record interest-rate increaseswi! ll worse n the effects of Europe��s debt crisis on earnings. Thegauge trades at 13.9 times estimated earnings, down from 19.4times at the end of 2010. The MSCI Emerging Markets Index isvalued at 9.6 times.
India��s stock market had joined the ��cheapest 4 club��based on price-to-book and return-on-equity after China, Korea,Hong Kong, Credit Suisse Group AG analysts led by Sakthi Sivawrote in a report from the brokerage today. The analysts werereviewing their ��underweight�� rating on Indian equities, theysaid in the report.
Overseas investors sold $512 million from equities in 2011,on concern a slowdown in the U.S. and Europe��s debt crisis mayerode company profits, data from the Securities & Exchange Boardof India show. That compares with a record inflow of $29.4billion in 2010. Foreign funds sold a net 391 million rupees (FIINNET$)($7.4 million) of Indian stocks on Jan. 2.

Brazil orange growers: 'We can adapt'

2012-01-23T08:30:00.001-08:00

TAQUARITINGA, Brazil (CNN) -- Brazil's orange harvest is nearing its end as workers in the state of Sao Paulo pluck late-blooming fruit from the trees.
The yellow-green oranges will be shipped off to nearby juice factories and then shipped around the globe. Those exports rake in $2 billion for Brazil, the biggest orange juice exporter in the world, accounting for 85% of global exports.
But now, it is not clear if Brazilian orange juice will be allowed into one of its key markets: the United States.
Last week, the Food and Drug Administration temporarily halted all orange juice imports after low levels of the unapproved fungicide carbendazim were found in some juice shipments from Brazil.
More recently, the FDA said the juice is safe for consumption.
Why your orange juice is still safe
Growers in Sao Paulo say they have been using carbendazim for some 20 years and point out that it is allowed -- in low levels -- across Europe and Latin America. It is also allowed in trace amounts in other food products, like nuts, in the United States.
"We didn't even know that it had been banned in orange juice in the United States in 2009," Marco Antonio dos Santos, a third generation orange grower, told CNN.
Dos Santos, also the president of the Citrus Department at the Agriculture Ministry, says there are alternatives, however.
In fact, he and other growers already rotate the use of carbendazim with other fungicides and techniques for preventing diseases like black spot, which make the oranges fall from the trees before they are ripe.
He says Brazilian growers don't want to lose the American market, which is their second biggest after Europe. The United States currently buys 15 percent of Brazil's orange juice exports.
"If we have to, we'll eliminate this product completely," he said as he walked, showing off his 60-acre grove. "We want to supply the American market, we don't in any way want to lose it. We can ada! pt to th e American system with other products."
Growers here would take a hit if this latest crop were barred from America. Global orange juice prices would rise, too.
But Dos Santos says producers can adapt quickly and could produce the next crop carbendazim-free if it were necessary.
While Brazilian farmers and industry leaders don't see a threat to consumers' health, they say the most important thing is that people aren't afraid to drink orange juice.

Home Inns & Hotels is soaring right now

2012-01-23T02:34:00.001-08:00

So far, the summer has treated us pretty well. But, this summer ride isn’t going to be free of a few bumps — such as we felt this week after economic data from the U.S. and China.
On Tuesday, the Federal Reserve tempered its forecast for U.S. economic growth in the second half of the year. The tepid forecast helped send stocks lower on Tuesday, and that selling accelerated today. And in China we saw reports of a slowdown in factory output for July. In fact, it was the fifth month of factory output slowing, with a gain of +13.4% over the previous year. China’s retail sales and investment in factories and other fixed assets also slowed.
The slowdown in the U.S. and Chinese economies did put some selling pressure on stocks — but I think we should see the pressure ease off soon. The fundamentals remain positive, and we are seeing tremendous growth in other Asian emerging markets.
I want to repeat what I’ve been saying for awhile now regarding China’s economic growth. First off, we should expect to see some slowing in metrics like factory output. That slowing is a direct result of the government’s active moves to keep the economy from overheating. Essentially, this is exactly what China wants.
I’m actually encouraged by the factory output numbers, because along with a decline in GDP from +11.9% in the first three months of the year to +10.3% in the second quarter, it translates into much more sustainable economic growth going forward. This stable growth is what we need to keep our select China and Asia companies outpacing the market.
So, we have definite reason to believe that China stocks will continue to outperform the broad U.S. stock market as it stays in a sideways trading range. I expect to see U.S. stocks stuck in a narrow trading range — with the S&P 500 index trading between 1,050 and 1,150 for the rest of the month.
In this scenario, investors shoul! d buy on dips to position themselves for rallies. At current market levels, with the S&P 500 approaching the lower end of my expected trading range, I would start putting more cash to work.
Already, we’ve seen some incredible outperformance from several of my Asia Edge portfolio companies. And here��s one of my favorite right now: Home Inns & Hotels Management (NASDAQ: HMIN). The stock is up 21% so far on the year and is one of my Top Buys.
When it comes to finding a company hitting its earnings stride, Home Inns is a case study. Last week the company reported outstanding financial results for the second quarter, with substantial gains in every metric.
Total revenues in the second quarter increased 25.7% year over year to RMB 806.9 million (US$119.0 million), a number at the higher end of the firm’s previous guidance range of RMB 790 million to RMB 810 million. And the company’s net income for the quarter was RMB 135.8 million (US$20 million). That number far exceeded the RMB 100.4 million (US$14.7 million) in net income the company posted in the second quarter of 2009.
Home Inn’s non-GAAP adjusted EBITDA for the second quarter was RMB 274.2 million (US$40.4 million) compared to RMB 149.0 million (US$21.8 million) in the same quarter last year. That adds up to a year-over-year increase of 84%!
The hotel chain really hit the mark in the second quarter, reporting an incredible occupancy rate that exceeded 96%, and keep in mind that that high occupancy rate took place even with price increases at many of Home Inn’s mature properties. According to CEO David Sun, “The performance of our entire network improved both year over year and sequentially across all key measures, and our Shanghai-based hotels brought in a better-than-expected premium from the Shanghai World Expo.”
Having seen firsthand how many Chinese tourists — as well as world tourists — traveled to attend the World Expo, I suspected ! Home Inn would be a big beneficiary. Well, according to the company’s latest financial results, my suspicion was dead on. As long as China continues to make headway economically, I anticipate more gains for this growing hotel chain. Buy HMIN on dips below $40. Though shares are above that level right now, a volatile market could push share prices down in the next week or two and provide you a great buying opportunity.
As of this writing, Robert Hsu was recommending HMIN to subscribers of his Asia Edge newsletter.
Your Guide to Profiting From Asia’s Explosive Growth. For access to the best-kept secrets about investing in China and the rest of Asia, plus the hottest stocks to buy and sell, sign up now for Robert Hsu’s FREE Investing Newsletter, Asia Insider. It’s sent right to your email inbox every week — absolutely FREE!

Amgen, Boeing and Pfizer are among the week's payout hikers

2012-01-22T21:22:00.001-08:00

Despite the equity market’s omnipresent volatility, the dividend parade keeps rolling down Wall Street. This week brought another bevy of big names boosting their quarterly payouts, and the news gave shareholders a little early holiday cheer.
In a good sign for the market at large, this week��s list of payout performers reads like a Who��s Who of the most prominent firms in their respective sectors. Pharmaceutical, aerospace, financial and industrial giants all stuffed shareholder stockings, making this another stellar week for income investors. Here are 16 companies increasing dividends this week.
Farm products and potash maker Agrium (NYSE:AGU) quadrupled its dividend, fertilizing the payout on common stock to 22.5 cents per share on a semi-annual basis. The new dividend will be paid Jan. 19 to shareholders of record on Jan. 1. The new dividend yield, based on the Dec. 14 closing price of $64.49 (the day the dividend was announced), is 0.70%. Agrium also announced plans to spend about $1.5 billion to increase its potash production capacity by 50%, as it looks to increase profits from the continued strength in crop prices.
Amgen (NASDAQ:AMGN) is the world��s largest biotech firm, and this week it engineered a 29% rise in its quarterly dividend. The company, which began paying a dividend just last year, announced a payout of 36 cents a share. The new dividend will be paid March 7 to shareholders of record as of Feb. 15. The new dividend yield, based on the Dec. 15 closing price of $58.62, is 2.46%. Amgen recently bought back nearly 10% of its outstanding shares. The company also said long time Chairman and CEO Kevin Sharer will retire on May 23, but stay on as chairman until the end of 2012.
Aerospace giant and defense contractor Boeing (NYSE:BA) sent its dividend into flight, lifting its quarterly payout 5% to 44 cents per share from ! 42 cents . The heightened payout will be made on March 2 to shareholders of record as of Feb. 10. The new dividend yield, based on the Dec. 12 closing price of $70.90, is 2.48%. Boeing continues to receive new orders for its premier 777 wide-body aircraft, and this year it��s extended its annual sales to 200 units.
Real estate investment trust Boston Properties (NYSE:BXP) boosted its quarterly payout by 10% to 55 cents per share. The new payout will be made Jan. 27 to shareholders of record as of Dec. 31. The new dividend yield, based on the Dec. 14 closing price of $93.65, is 2.35%. Boston Properties develops and manages offices, hotel, residential and retail properties in New York, Washington, San Francisco, Princeton, N.J. and its namesake city, Boston.
Discover Financial Services (NYSE:DFS) charged up its quarterly dividend, boosting its payout by 67% to 10 cents per share from 6 cents. The new dividend is payable Jan. 19 to shareholders of record as of Dec. 29. The new dividend yield, based on the Dec. 15 closing price of $23.07, is 1.73%. The credit card issuer said heavy holiday shopping helped its fiscal fourth quarter profit surge 46% year over year.
Money management firm Franklin Resources (NYSE:BEN) declared a special cash dividend of $2 a share. It also raised its quarterly dividend by 8% to 27 cents per share. Both the special dividend and the boosted payout are payable on Dec. 30 to shareholders of record as of Dec. 19. The new dividend yield, based on the Dec. 12 closing price of $96.91, is 1.11%. The company recently posted a 12% surge in fiscal Q4 profits.
The biggest lodging property REIT in the U.S. is Host Hotels & Resorts (NYSE:HST), and this week it upped the room rate it pays shareholders to 5 cents per share from the previous 1 cent per share payout. The new dividend is payable on Jan. 17 to shareholders of record on Dec. 30. The new dividend yield, based on the Dec. 14 closing price of $13.71, ! is 1.46% .
Industrial products behemoth Ingersoll-Rand (NYSE:IR) said it will raise its quarterly dividend to shareholders by 33% to 16 cents a share. The new dividend is payable March 30 to owners of record as of March 12. The new dividend yield, based on the Dec. 12 closing price of $32.11, is 1.99%.
Moody��s (NYSE:MCO) has raised the rating on its quarterly dividend to 16 cents per share from 14 cents. The parent company of credit rating agency Moody��s Investors Service will pay the new AAA-rated dividend March 10 to shareholders of record as of Feb. 20. The new dividend yield, based on the Dec. 14 closing price of $32.88, is 1.95%.
The largest producer of structural steel products in the U.S. is Nucor (NYSE:NUE), and this week it increased the hardness of its dividend to shareholders. The company boosted its payout to 36.5 cents per share from 36.25 cents. The new dividend will be paid Feb. 10 to shareholders of record as of Dec. 30. The new dividend yield, based on the Dec. 14 closing price of $38.72, is 3.77%.
Diversified industrial products maker Pentair (NYSE:PNR) added to its quarterly dividend, boosting its payout by 2 cents to 20 cents per share. The increase will be effective with the quarterly dividend payable in the first quarter of 2012. The new dividend yield, based on the Dec. 14 closing price of $33.92, is 2.59%. The good dividend news came as Pentair cut its fourth-quarter profit guidance. The company cited lower-than-expected sales in Western Europe as the reason for its lowered outlook.
Pharmaceutical giant Pfizer (NYSE:PFE) lifted its quarterly dividend by 2 cents to 22 cents per share. The world��s largest drug maker said the new dividend will be payable March 6 to shareholders of record as of Feb. 3. The company also authorized a new share repurchase program for up to $10 billion. Pfizer expects to buy back about $5 billion in comm! on stock next year. The new dividend yield, based on the Dec. 12 closing price of $20.39, is 4.32%.
Commercial property REIT Realty Income (NYSE:O) bumped up its monthly payout to 14.55 cents per share from 14.52 cents. The new dividend is payable on Jan. 17 to shareholders of record as of Jan. 2. The new dividend yield, based on the Dec. 14 closing price of $33.73, is 5.19%. This is the 57th consecutive quarterly increase and the 64th dividend increase since Realty Income went public in 1994.
Investment and fund management firm SEI Investments (NASDAQ:SEIC) declared a semi-annual dividend of 15 cents per share, a 25% increase from the previous payout of 12 cents. The dividend is payable Jan. 6 to shareholders of record as of Dec. 28. The new dividend yield, based on the Dec. 13 closing price of $15.77, is 1.90%. SEI also approved an increase in its stock repurchase program by an additional $100 million. Since the beginning of 2011, the company has repurchased approximately 10.5 million shares at a cost of approximately $201 million.
Multifamily REIT operator UDR (NYSE:UDR) added capital to its family of shareholders, increasing its quarterly payout to 21.50 cents per share from 20 cents. The new dividend is payable Jan. 31 to shareholders of record as of Jan. 11. The new dividend yield, based on the Dec. 15 closing price of $24.16, is 3.56%. The dividend represents the 157th consecutive quarterly payout made by UDR.
Asset management firm Waddell & Reed (NYSE:WDR) managed a higher payout to shareholders, increasing its dividend 25% to 25 cents per share. The new payout will be made on Feb. 1 to shareholders of record on Jan. 3. The new dividend yield, based on the Dec. 15 closing price of $24.66, is 4.06%.
Disclosure: At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.

This Industry Giant's Stock Could Gain 25%

2012-01-22T16:17:00.001-08:00

After a less-than-stellar performance for the S&P 500 in 2011, investors continue to scratch their heads as they try to figure out where to allocate capital for the New Year. Treasuries? Sure, if you want to pay too much, then take on more downside risk than you think and get paid next to nothing. The truth is, too many areas of the marketare stretched out like the cotton sweater I got from Target eight years ago that everyone in the house seems to borrow.
But we can still find value out there. And one of my favorite stocks is pretty well known: a little fly-by-night outfit called International Paper (NYSE: IP).

Why would I invest in a paper company in the face of a collapsing Europe, the Iranians threatening to close the Straits of Hormuz, and the exponential shrinkage of paper usage thanks to e-mail and the tidal wave of smartphone and tablet growth?
Yes, there's risk in everything, but International Paper possesses all of the qualities I like to see in a stock if I'm considering deploying new money: a well-run, high-quality name with a strong market position, a forward price-to-earnings (P/E) ratio well below that of the S&P 500 and exceptional dividend yield. In fact, International Paper passes all these tests with flying colors.
With an $11.8 billion market cap, International Paper is one of the world's largest producers of uncoated free sheet (UCFS) paper, the type of paper you put in the copier or the printer at the office. It also consumer and industrial packaging such as to-go coffee cups, frozen-dinner packages, cardboard boxes, and pulp.
But as the U.S. economy recovers slowly and Europe tries to hold its economy together with the band aid du jour, global demand for UCFS paper is expected to decline further. This compounds the secular decline the paper market grapples with as manufacturing continues its march into the digital age.
Just like ice ho! ckey gre at Wayne Gretzky, who famously said that he just went to "where the puck is going to be," International Paper didn't get to where it is by accident -- they knew where the puck was going. The company has narrowed its product focus, and while free sheet paper is still an important part of the business (25% market share), International Paper has chosen to invest more in the packaging operation.
Growth by acquisition and global reach
You can either build a business or buy one. International Paper has decided to buy.
In 2008, it gobbled up rival Weyerhaeuser in a deal that improved the company's revenue by a muscular 10%. Last year, International Paper returned to the hunt with a rocky courtship and eventual engagement to acquire corrugated packaging provider Temple Inland (NYSE: TIN), and then made a trip to India to buy paper maker Andhra Pradesh.
It's easy to note that emerging-market expansion has become a cornerstone of International Paper's growth strategy. It has invested substantially in Brazil, a market that contributed nearly 22% to the company's 2011 EBITDA; and Eastern Europe -- primarily Russia and Poland -- which makes up for 18% of the company's EBITDA. And thanks to the Andhra Pradesh acquisition, India now contributes 1%, with volume from that segment projected to grow 5%. That's a huge amount if you consider the business brings in more than $26 billion in annual revenue.
In addition, the Temple Inland merger is expected to be a net positive for the company. Once completed, International Paper's containerboard business is projected to go from 40% to 55% of total sales, while its North American containerboard market share will likely jump from 26% to 37%. This is another sign of the company transitioning away from the shrinking UCFS paper market and stepping into more solid ventures.
The merger should also be a boost to the company's earnings per shar! e (EPS). Standalone estimates for International Paper's 2012 EPS called for $2.42. Factoring in Temple Inland's contribution, pro forma EPS for 2012 would be $2.72: a 12.39% increase, which would be similar to the value added by the Weyerhaeuser acquisition.
Historically, the company is well known for its operational discipline. International Paper has done a great job of lowering costs and maximizing efficiencies. It doesn't hesitate to shut down a nonperforming mill or get rid of a subpar manager, either. This discipline has resulted in strong operating margins: in 2011 they are expected to come in at 9.2%, up 13.5% from 2010. A 13.5% margin increase is pretty substantial when you consider the size and scale of International Paper's business.

State Street Increases Fourth-Quarter Profit With New Business, Cost Cuts

2012-01-22T11:36:00.001-08:00

State Street Corp. (STT), the third-largest custody bank, said fourth-quarter net income on anoperating basis rose 4.4 percent as the company won newcustomers and cut costs.
Profit climbed to $454 million, or 93 cents a share, from$435 million, or 87 cents, a year earlier, the Boston-basedcompany said today in statement. Excluding certain items, 21analysts surveyed by Bloomberg estimated earnings of 94 cents ashare on average.
��The new business they��re bringing in, plus expensesavings, are what��s driving the year-on-year gains,�� Brian Bedell, an analyst with ISI Group Inc. in New York, said in atelephone interview before results were released. Bedellexpected State Street to earn 94 cents a share.
Custody banks, hurt by record-low interest rates thatreduce the return on investments and lending, have worked tobuoy profits by cutting expenses. State Street and its largestrival, New York-based Bank of New York Mellon Corp. (BK), have madeor planned a combined 3,750 job cuts in the past 13 months aseach company aimed to reduce costs by more than $575 millionannually by 2015. Northern Trust, the third-largest independentU.S. custody bank, said today it will cut about 700 jobs as partof expense-saving measures.
Custody Assets
State Street saved about $80 million last year through thejob cuts and investments in technology, and will reduce costs byan estimated $170 million this year, Robert Lee, an analyst withKeefe Bruyette & Woods Inc. in New York, wrote in a researchnote published Jan. 9.
Revenue increased 13 percent to $2.32 billion, led by a 30percent rise in securities lending, while expenses declined 0.4percent from a year earlier. Compensation and employee benefitsdeclined 6.7 percent.
��Our results for 2011 also demonstrated the positiveimpact of expense controls we put in place,�� Chief ExecutiveOfficer Joseph L. Hooley said in the statement.
Custody fees fell 0.7 percent to $1.06 billion. Assetsunder custody were $15.9 trillion as of ! Dec. 31, little changedfrom a year earlier, even as the MSCI ACWI Index of globalstocks declined 9.4 percent in 2011. State Street won about $825billion in new custody assets through the first nine months of2011, according to the company.
Investment management fees declined 8.6 percent to $202million as the amount of money State Street manages for clientsfell 7.2 percent to $1.87 trillion.
��Turmoil in Europe��
The decrease in assets reflected customer withdrawals incash, fixed income and active equities ��amid the turmoil inEurope,�� the company said in the statement.
Net income rose more than fourfold to $371 million comparedwith the fourth quarter of 2010, when the company spent $500million cutting jobs and restructuring its investment portfolio.
State Street��s operating profit excludes those items aswell as money earned from the sale or maturing of bonds whosevalue was written down in May 2009, which the company records as��discount accretion�� within net interest income.
Custody banks keep records, track performance and lendsecurities for institutional investors including mutual funds,pension funds and hedge funds. State Street also managesinvestments for individuals and institutions.
Results were announced before the start of regular U.S.trading. State Street declined 14 percent in the year throughyesterday, compared with the 21 percent decrease by the Standard& Poor��s 20-company index of asset managers and custody banks.
BNY Mellon and JPMorgan Chase & Co. (JPM), both based in NewYork, are the two biggest custody banks.
(State Street is scheduled to hold a conference call forinvestors at 9 a.m. New York time. The call can be accessed athttp://www.statestreet.com/stockholder and by telephone at+1-706-679-5594 or +1-888-391-4233 (Conference ID # 36969978).)

DrStockPick.com Stock Report! Most Active Stocks Friday August 21, 2009

2012-01-22T00:44:00.001-08:00

DrStockPick.com Stock Report!
Friday August 21, 2009

Most Active NYSE Stocks
Symbol Company Last Chng. %Chng. Volume
C Citigroup Inc $4.72 +0.24 +5.34% 1,321,009,067
FNM Fannie Mae $1.21 +0.11 +9.99% 274,644,781
BAC Bank Of America Corporation $17.47 +0.33 +1.93% 213,386,761
SPY SPDR S&P 500 ETF $102.98 +1.99 +1.97% 184,778,279
FRE Freddie Mac $1.74 +0.14 +8.75% 160,423,597
XLF Financial Select Sector SPDR ETF $14.59 +0.32 +2.24% 86,878,077
GE General Electric Co $14.20 +0.39 +2.82% 81,388,267
EEM iShares MSCI Emerging Markets Index ETF $36.34 +0.57 +1.59% 63,395,350
PFE Pfizer Inc $16.64 +0.41 +2.53% 60,859,330
FAZ Direxion Shs Etf Tr $23.70 -1.68 -6.62% 57,121,889
F Ford Motor Co $7.74 +0.06 +0.78% 51,938,312
RF Regions Financial Corp $5.88 +0.39 +7.10% 49,275,374
LVS Las Vegas Sands Corp $14.00 +0.81 +6.14% 49,124,890
UYG ProShares Ultra Financials ETF $5.64 +0.24 +4.44% 47,957,690
AIG American Intl Group Inc $32.98 +0.68 +2.11% 47,882,754
UNG United States Natural Gas ETF $11.32 -0.19 -1.65% 45,021,144
Most Active AMEX Stocks
< tr height="4">
Symbol Company Last Chng. %Chng. Volume
RTK Rentech Inc $2.15 +0.30 +16.22% 34,535,412
NTN NTN Communications Inc $0.35 unch unch 5,972,967
BQI Oilsands Quest Inc $0.91 +0.05 +5.23% 3,162,518
HEB Hemispherx BioPharma Inc $1.89 -0.01 -0.55% 2,880,808
GSS Golden Star Resources Ltd. $2.49 +0.06 +2.47% 2,519,743
GSX Gasco Energy Inc $0.31 +0.01 +4.67! % 2,436,225
CVM CEL-SCI Corporation $0.45 +0.02 +4.65% 2,384,801
TGB Taseko Mines Limited $2.62 +0.12 +4.80% 2,278,759
NGD New Gold Inc. $3.47 -0.24 -6.47% 2,278,003
GTE Gran Tierra Energy Inc. $3.99 +0.10 +2.57% 2,153,398
EGO Eldorado Gold Corporation $11.00 +0.34 +3.19% 2,146,884
TOH Hicks Acquisition Co I Inc $9.76 unch unch 2,124,980
INO Inovio Biomedical Corp $2.04 -0.08 -3.77% 1,783,589
DNE Dune Energy Inc $0.12 +0.00 +3.36% 1,676,969
< /td>
ANX Adventrx Pharmaceuticals Inc $0.15 +0.00 +1.52% 1,617,674
COR Cortex Pharmaceuticals Inc $0.20 -0.03 -13.01% 1,605,021
Most Active NASDAQ Stocks
Symbol Company Last Chng. %Chng. Volume
SIRI Sirius XM Radio Inc $0.72 +0.04 +5.87% 168,526,968
QQQQ PowerShares QQQ $40.29 +0.53 +1.33% 98,820,417
MSFT Microsoft Corporation $24.39 +0.73 +3.06% 62,803,255
BRCD Brocade Communications Systems Inc $7.63 -0.42 -5.22% 57,974,361
CSCO Cisco Systems Inc $22.16 +0.28 +1.28% 52,406,970
INTC Intel Corporation $18.88 +0.17 +0.91% 51,442,697
ETFC ETrade Financial Corp $1.41 -0.03 -2.08% 41,716,803
CTIC Cell Therapeutics Inc $1.69 +0.04 +2.42% 28,408,563
DELL Dell Inc $14.48 -0.07 -0.48% 27,486,718
ORCL Oracle Corporation $22.07 +0.13 +0.59% 27,164,974
HBAN Huntington Bancshares Inc $4.62 +0.10 +2.21% 25,101,282
CMCSA Comcast Corp New $15.05 +0.50 +3.43% 23,709,221
YHOO Yahoo! Inc $14.80 +0.03 +0.20% 21,955,033
FITB Fifth Third Bancorp $10.91 +0.50 +4.80% 19,331,782
QCOM QUALCOMM Inc $47.31 +0.22 +0.47% 19,202,012
Most Active OTC BB Stocks
Symbol Company Last Chng. %Chng. Volume
ARTI Artfest International Inc $0.00 -0.00 -46.00% 252,849,790
IDOI Ido Security Inc $0.01 -0.00 -9.09% 194,168,491
SWVL Seaway Vy Cap Corp $0.00 unch unch 185,453,600
WLSI Wellstar Intl Inc $0.00 unch unch 149,237,000
JNIP Juniper Group Inc $0.00 unch unch 105,891,043
! MCET Multicell Technologies Inc $0.03 +0.01 +27.23% 89,465,506
TYRIA Trey Res Inc $0.00 unch unch 78,980,432
CBAI Cord Blood Amer Inc $0.00 -0.00 -3.13% 65,030,420
UNDT Universal Detection Technolo $0.00 -0.00 -11.32% 49,182,693
ESYM Ecosy stem Corporation $0.00 -0.00 -8.00% 36,090,014
SPNG Spongetech Delivery Sys Inc $0.13 -0.01 -4.09% 35,302,846
SMWF Seamless Corp $0.00 unch unch 24,838,300
RMTD Remote Dynamics Inc $0.00 unch unch 19,611,999
CCTR China Crescent Enterprises I $0.06 -0.01 -15.28% 19,512,156
CMGR Camelot Entmt Group Inc $0.00 +0.00 +20.00% 16,827,763
MYNG Golden Eagle Intl Inc $0.00 -0.00 -10.00% 16,700,465
AGEL Angel Acquisition Corp $0.00 unch unch 14,980,000

Adobe Reportedly Plans To Sue Apple Over New SDK License

2012-01-21T19:37:00.001-08:00

Adobe (ADBE) plans to sue Apple (AAPL) over controversial new language in the license for the iPhone software development kit, according to ITWorld.com. Apple’s lack of support for Adobe’s Flash software went further with the new licensing language, which appears to bar the use of the company’s Packager for iPhone OS software which will be part of Flash CS5, part of the Creative Suite 5 software Adobe launched this week.
The post reports that “sources close to Adobe” say the company will sue :”within a few weeks.”
Adobe’s web site says that the Packager software “will let you publish Actionscript 3 projects to run as native applications for iPhone. These applications can be delivered to iPhone users through the Apple App Store.*
But the ITWorld post contends that the licensing changes “make it impossible” to use cross-compilers like Packager now.

Skype TV

2012-01-21T14:27:00.001-08:00

Wall St. has to wonder what the fine print looks like in the sales documents from the Ebay (EBAY) purchase of Skype. It must read that, after we buy your VoIP company for a ludicrous price, please use the money to start a promising tech company in the ultra-hot video industry.
The founders of Skype and file-sharing company KaZaA have launched a new firm that will use peer-to-peer tech to send television shows and movies to PCs all over the world. The company also appears to be lining up some major content owners to be part of the venture. Targeted advertising will be another part of the revenue base.
The use of peer-to-peer technology will utilize the customers’ PCs as "mini servers" to forward content to other customers. The operation is, therefore, inexpensive to run and should not require a huge edge-server provider like Akamai.
There is the temptation to write the new video company, the Venise Project, as yet another in a string of video-to-the-home start-ups that has little chance of succeeding. But, given the management provenance of the company, that would be a mistake.
Skype and KaZaA both signed up tens of millions of customers in relatively short time periods. It could be argued the Skype did as much or more to change the traditional telephone industry as any company in the last few decades.
"Disruptive technology" is an overused term. Let’s use it here anyway.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

Fulsome Volume Stock at NYSEAMEX - AIS

2012-01-21T09:09:00.001-08:00

Antares Pharma Inc (NYSEAMEX:AIS) witnessed volume of 1.14 million shares during last trade however it holds an average trading capacity of 1.87 million shares. AIS last trade opened at $1.86 reached intraday low of $1.51 and went -30.71% down to close at $1.67.
AIS has a market capitalization $172.87 million and an enterprise value at $146.75 million. Trailing twelve months price to sales ratio of the stock was 12.08 while price to book ratio in most recent quarter was 5.60. In profitability ratios, net profit margin in past twelve months appeared at -38.65% whereas operating profit margin for the same period at -38.43%.
The company made a return on asset of -12.93% in past twelve months and return on equity of -29.20% for similar period. In the period of trailing 12 months it generated revenue amounted to $14.31 million gaining $0.16 revenue per share. Its year over year, quarterly growth of revenue was 25.50%.
According to preceding quarter balance sheet results, the company had $26.11 million cash in hand making cash per share at 0.25. The total debt was $0.00 billion. Moreover its current ratio according to same quarter results was 4.42 and book value per share was 0.30.
Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated -2.26% where the stock current price exhibited down beat from its 50 day moving average price of $2.47 and remained below from its 200 Day Moving Average price of $2.28.
AIS holds 103.51 million outstanding shares with 81.22 million floating shares where insider possessed 19.44% and institutions kept 33.50%.

Wynn Falls After Largest Shareholder Files Suit

2012-01-21T03:59:00.001-08:00

Wynn Resorts (WYNN) fell 5.2% in morning trading after the company’s top shareholder and vice chairman sued to make the company reveal more about its finances. Japanese businessman Kazuo Okada says in the suit that “despite several written demands, Wynn Resorts insists on keeping its books and records hidden” from him, according to the Las Vegas Review-Journal.
Okada owns almost 20% of Wynn’s shares indirectly. He is particularly interested in details about a $135 million donation the company gave to the University of Macau Development Foundation.
Wynn did not immediately respond to a request for comment from Barrons.com.

Unemployment falls ... but not for blacks

2012-01-20T23:15:00.001-08:00

NEW YORK (CNNMoney) -- For the country as a whole, the unemployment rate fell in 2011. That's good news, right?
Not so much for African Americans.
As the economy slowly improved last year, the unemployment rate fell for both whites and Latinos.
But at the end of the year the black unemployment rate was 15.8%, exactly where it started out 2011, according to the government's December jobs report released Friday. That's a sharp contrast to the white unemployment rate, which fell to 7.5% last month.
The broad trend is unfortunately nothing new, said Bill Rodgers, chief economist with the Heldrich Center for Workforce Development at Rutgers University. The black unemployment rate has been roughly double that of whites since the government started tracking the figures in 1972.
But there's a new story emerging too.
Black men captured about 237,000 job gains in 2011, whereas black women actually ended the year with fewer jobs than they had a year ago.
Black men still have a higher unemployment rate overall, but their's at least improved -- while for black women, it got worse.
White House to propose raise for federal workers
Rodgers attributes this trend to massive government job cuts during the year.
"Minorities and women are heavily concentrated in public sector jobs," he said. "With these major cuts we're seeing in public employment, you're going to see minorities pushed out of these jobs."
Overall, blacks accounted for only 9% of the nation's job gains during the year, even though they make up 12% of the civilian population, according to Department of Labor.

SREI Infra's infrastructure bonds issue to open on Dec 31

2012-01-20T17:47:00.001-08:00

SREI Infrastructure Finance (SIFL) has announced a public issue of long term infrastructure bonds with a face value of Rs 1000 each in the form of secured redeemable non-convertible debentures, to be issued in one or more tranches not exceeding Rs 500 crore for the fiscal 2011-12, having benefits under section 80CCF of the Income Tax Act, 1961.
Issue date and listing: The first tranche of the bonds (tranche 1 bonds) issue (tranche 1 issue) will open for subscription on December 31, 2011 and close on January 31, 2012 or earlier, as may be decided by the board of the company. The bonds issued under prospectus tranche - I would be for an amount not exceeding Rs 300 crore and are proposed to be listed on the BSE Limited.
Ratings: The bonds proposed to be issued have been rated 'CARE AA' by CARE. The rating of the bonds by CARE indicates high degree of safety with regards to timely servicing of financial obligations.
Issue structure: The issue would be in one or more tranches, for an amount not exceeding the shelf limit. The amount raised in the subsequent tranches shall not exceed the difference between the Shelf Limit and the aggregate amount raised by issue of bonds under the previous tranches. The minimum number of bonds per applicant is 1 bond and in multiples of 1 bond thereafter for resident individuals as well as for Hindu Undivided Family (HUF). An applicant may choose to apply for the tranche 1 bonds across the same series or different series. The mode of allotment for these tranche 1 bonds would be in dematerialized form, however the applicant may hold in the bonds in physical or dematerialized form.
These Bonds are being issued in four series with Interest rate of 8.90% per annum for Series 1 and Series 2 and 9.15% per annum for Series 3 and Series 4. Interest under Series 1 and Series 3 will be payable annually and interest under Series 2 and Series 4 will be payable cumulatively (compounded annually). All ! series o f bonds will have a buy back option at the end of 5 years. The bonds have a maturity period of 10 years and 15 years and shall have a lock-in period of 5 years and can be traded thereafter on BSE. The face value per bond is Rs 1,000.
80CCF benefit: The bonds have been classified as long term infrastructure bonds as per the terms of Section 80CCF of the Income Tax Act. As notified under Section 80CCF, an amount, not exceeding Rs 20,000 per annum, paid or deposited as subscription to long term infrastructure bonds during the previous year relevant to the assessment year beginning April 01, 2012, shall be deducted in computing the taxable income of a resident individual or HUF. In the event that any applicant applies for bonds exceeding Rs 20,000 per annum, the aforesaid tax benefit shall be available to such applicant only to the extent of Rs 20,000 per annum.
The funds raised through the issue of the tranche 1 bonds will be utilized towards infrastructure lending as defined by Reserve Bank of India in the Regulations issued by it from time to time, after meeting the expenditures of, and related to the tranche 1 issue.
The lead managers to the tranche 1 issue are ICICI Securities Limited, Karvy Investor Services Limited, RR Investors Capital Services Private Limited and SREI Capital Markets Limited (a wholly owned subsidiary of the Company to be engaged only in marketing of the Tranche 1 Issue) The co-lead managers to the issue are SMC Capitals Limited and Bajaj Capital Limited whilst Axis Trustee Services Limited is the Debenture Trustee to the Tranche 1 Issue.

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Weak Labor Market and Slowing Retail Sales Put U.S. Stocks in a Tailspin

2012-01-20T12:30:00.001-08:00

Global Economic Intersection article of the week.
Introduction
I never had much use for financial ratings. I view them as second best reference points for lazy financial sector workers and people who are unable to research investment possibilities on their own. And as we learned in the recent banking collapse, the raters have no idea what is going on. So what do we draw from the S&P rating change for the US? Well, at least the ratings change does focus attention on the US financial condition.

US fundamentals have not suddenly changed. The country is still in a recession. Sound fiscal policy calls for another stimulus package that would increase its government debt. How does the US compare with other countries on ratings and real economic conditions? Read on.

Country Comparisons - Financial Indicators
Three key indicators of financial problems for any country are its government deficit, government debt, and a current account deficit. Government deficits increase government debt, and debt can get become unsustainable, e.g., Greece. However, if countries run large current account surpluses, e.g., Japan, they can continue with large deficits and debt. Foreign investors know that if either becomes too onerous, the government can pay them off with foreign exchange reserves. However, current account deficits must be financed by capital inflows, and the need for continuing large capital inflows can become problematic. Greece is again the prime case: foreigners are not interested in either loaning or investing in Greece, and hence its capital inflows do not offset its current account balances, and hence - crisis.

To continue reading, please click here...

CNBC Dismisses Talk of Outside Investor Stepping in at Troubled Bear Stearns

2012-01-19T10:47:00.001-08:00

The tears stream from the faces of the silver bugs.? Boo-hoo!? Where’s my $100 silver?
Toughen up!? Better yet, go buy a 10-year Treasury, then.? I hear Greek 1-year paper is even better, paying out 150 percent.? What a deal!
Look! The Fed wants you OUT of precious metals.? Understand?? Sign-up for my 100% FREE Alerts
But before you hit that sell button, there are some pretty smart fellas who’ve done a lot of legwork and research on the subject of silver and see $100 as chump change when the dust settles from these manipulating bankers.? Keep the faith.
Physical buyers will break the cartel, and not by Max Keiser’s gang of JP Morgan haters getting together to clean out the COMEX, though Keiser’s laudable efforts will aid the cause of protecting investors from the Fed’s insanity.
No sir.? It will be China who will drive the silver price higher for all silver bugs.? So relax, be patient and enjoy.
One man who provides the silvery details to the China story, Stephen Leeb Ph. D, economist, NY Times best-selling author, and promoter of his latest book, Red Alert, is back to remind silver bugs of the bright future for the silver price in his latest? interview on GoldSeek Radio (GRS).? (Previous BER articles about Leeb and silver, click here and here.)
"Silver is an utterly critical metal when it comes to renewable energies, solar panels; there’s no other game in town," Leeb told GSR.? " . . . Silver-based solar is going to play a major part in our energy future . . . China used to export silver, now they’re importing, and they are very big importers.? And they [China] went on to say that they’re not going export any silver what so ever."? Though China recently relaxed its strict export quota of rare earths, silver was not included in the increased export quota.? And for good reason, according to Leeb.
Who is Stephen Leeb.? He’s not the marquee name in Google’s search results.? He is not as we! ll-known as Jim Rogers; he’s not Marc Faber; and he’s not Peter Schiff.
Leeb is, however, a prolific author and researcher who’s looked at China’s multi-decade economic plans��plans that require a monstrous amount of critical industrial metals, including silver, to fulfill a national, strategic goal of reducing fossil fuels consumption within the People’s Republic.? Leeb predicted the oil price would top $100 when it traded at $27.? Now, he’s more alarmed at what he has discovered about China’s future consumption needs for the new energy commodity, silver.? (See Robert Hirsch interview (audio) on the subject of Peak Oil on Financial Sense Newshour of Dec. 15.)
Leeb’s emphasis on detailed points about silver and its importance to renewable energy projects in China is ahead of the curve from most precious metals advocates��though, Rogers, in a broader sense, has already taken Leeb’s thesis regarding China voracious needs to include almost any commodity.? And according to Leeb (echoed by Jim Rogers), the supply and demand characteristics for silver in the renewable energy sector must include a much, much higher price.
"I do believe [$200] is not an unreasonable target" for silver, Leeb told GoldSeek Radio host Chris Waltzek.
Leeb believes the silver’s industrial usage for renewable energy will greatly outweigh its usefulness as protection against central banker monetary profligacy.? The need for silver will become a global security issue at some point, especially in the US, but the America must "wake up" to, first, address the issue of Peak Oil and publicly recognize the vital commodity for the next decade or two will be silver.
"But the problem is," Leeb continued, "once it reaches one hundred [dollars], people start getting very, very nervous.? It’s a very, big broad round number and they [bankers and/or government] start taking action; they might consider outlawing the ownership of silver as a monetary metal."
T! he futur e must include breaking from fossil fuels as a source of energy; there’s just not enough cheap oil to go around, and China doesn’t want to take on the U.S. military to get the amount of oil it needs to increase its own GDP, according to Leeb in an earlier interview on Financial Sense Newshour of Nov. 10.
Wind and solar power are the future, and China "gets it," he said.
"Along with rare earths, which are obviously so vital, so critical, you also have copper, which is on no one’s radar screen as a potentially scarce metal," Leeb said in his most recent GSR interview.? "And you have silver, which is on some people’s radar screen, but they don’t know if it’s like gold, a precious metal, or whether it’s an industrial metal. Well, it’s both.
"But I do believe that its primary purpose over the next five to 10 years is going to be as an industrial metal; it’s going to be critical to defining our energy future.? And China really does get this.? They’ve written about peak oil and they’ve written about peak coal.? So they’re preparing."
Shedding some light on the probably plans for China’s $3.2 trillion reserve, Leeb expects a lot of that money as well as future reserves will be spent on stockpiling strategic metals instead of using the cash to build a powerful war machine to match Russia to collectively compete directly against the U.S. and its allies during the remainder of the decade��speculatively speaking, a sort of a Sun Tzu tactic inspired by the book, The Art of War (English translation & Wiki synopsis), which has been reported by several sources as required reading for all Beijing senior officials.
"Their major expenditures . . . they have cited seven industries, of which, the most important, are energy based industries, which they plan to spend, I would guess, nearly $5 trillion to the end of the decade.? That’s the equivalent to two world wars . . . and they! 217;re g oing to spend that over the next eight or nine years."
How much silver will be needed during this $5 trillion outlay in renewable energy projects in China?? "Mind-boggling" amounts, according to Leeb.? And as far as price, Leeb steps up his $200 per ounce easy layup prediction to venture into much bigger price levels as possibilities for the white metal.
"There’s no way of saying how high it [silver] will go; it’s dramatically high[er]," according to Leeb, when taking into account, too, central banks opting to inflate out of a debt bubble gone popped.
At $27 silver, the price is "ridiculous," he said, and added, "I’m a believer of $10,000 gold. . . but I would not be surprised, if we avoid a Depression between now and the end of this decade, I would not be surprised if gold doesn’t touch $10,000."
Given Leeb’s prediction of a gold/silver ratio touching at least 7.5, that calculates to a silver price north of $1,000 by the end of the decade, making a $200 prediction seem easily attainable, indeed, under a Leeb scenario.? Sign-up for my 100% FREE Alerts

Sirius (SIRI) May Have To Kill XM Satellite (XMSR) Deal

2012-01-19T05:49:00.001-08:00

Sirius (SIRI) does not need competition from XM Satellite (XMSR), Apple’s (AAPL) iPod, or HD radio to put it out of business. The US government is doing the job nicely.
While it clear that the Department of Justice and FCC are sitting on a decision about the merger of the two satellite radio companies. What is not clear is why.
Some analysts say that the deal and its many technology pieces are complex and that judging what will happen to consumer choice for in-car entertainment is difficult. Given the resources available to review the marriage, that would seem unlikely. It may be the FCC does not want to take on Congress about whether the agency would be creating a monopoly. Sit on a deal long enough and it might go away. SIRI and XMSR could decide that the price of waiting much longer is not worth it.
What is abundantly clear is that Wall St. expects Sirius to keep losing money which it does not have. Current estimates are for a $.13 lose for Q4 07 and a $.29 loss for full year 2008. The company has long-term debt of almost $1.3 billion and at the end of Q3 had about $390 million in cash. At the current rate of losses, Sirius could be low on cash before the end of the year.
Sirius and XM may have to kill their deal and move into the capital markets separately to raise money. In the current credit markets, that will be very difficult, but they can not do it as a "merger in waiting".
With their current cash burn rates, they are almost out of time.
Douglas A. McIntyre

Iraq's Energy Sector Is Moving Forward – With or Without the U.S.

2012-01-19T00:24:00.001-08:00

Iraq on Wednesday broke the record - 207 days - for the time between a parliamentary election and the formation of a government. But while Iraq's government is at a standstill, the country's energy sector remains dynamic and U.S. companies can't afford to wait for the political climate to thaw before diving in.

Iraq is slowly retaking the shape of one of the world's most prolific oil producers. Its reserves are actually 25% larger than previously thought.

"Iraq's oil reserves which are extractable are 143.1 billion barrels," Hussein al-Shahristani, Iraq's oil minister, said earlier this week, basing his comments on data provided by Organization of Petroleum Exporting Countries (OPEC).

The OPEC figures are about 28 billion barrels higher than previous estimates. The added reserves would be enough to lift Iraq to No. 3 in the world - immediately above Iran, which has some 137 billion barrels of the "black gold" bubbling beneath its borders.

At $82 a barrel - roughly where oil was trading at midweek - the newfound oil would be worth about $2.3 trillion. And that may just be the beginning.

Up to 90% of Iraq remains unexplored, according to Energy Information Administration (EIA) estimates. Only 2,000 wells have been drilled in Iraq, versus approximately 1 million in the state of Texas alone. Iraq could easily have another 100 billion barrels of oil hidden within its uncharted territory.

At 2.5 million barrels per day (bpd), the country's production is considerable, but there is room for improvement. Some analysts estimate production will rise to 10 million bpd by 2020, while the Iraqi government has set a target of 12 million bpd by 2016. That would return Iraq to the ranks of the world's elite, as only Saudi Arabia and Russia are capable of producing more.

Crude oil export revenue represents around 60% of Iraq's gross domestic product (GDP) and 89% of government revenue,! so a fo urfold increase in production would be a significant boost to the economy. The added production could quadruple Iraq's per-capita GDP and leave the country with financial reserves in excess of $350 billion, according to Farouk Soussa, Citigroup Inc.'s (NYSE: C) chief economist for the Middle East.

The International Monetary Fund (IMF) forecast Iraq's growth at 2.6% for 2010, far lower than the 7.3% it projected in April. However, the International Monetary Fund says that economic growth will climb as high as 1.5% in 2011, as the country boosts its oil production and crude prices increase.

Higher oil prices could accelerate the rebuilding of Iraq's oil sector and have already attracted copious amounts of attention from abroad.

"International oil companies have pledged $120 billion to increase Iraq's oil production over the next five years," said Abdullah Al Ajaji, director of MerchantBridge & Co. Ltd..

Investments have also flowed into the construction sector, with international and national oil companies and the Iraqi government pledging to spend $250 billion over the next five years according to Al Ajaji.

Iraq auctioned off more proven oil reserves in the past six months of 2009 than are collectively held by the United States, Mexico, and the United Kingdom.

Royal Dutch Shell PLC (NYSE:RDS.A, RDS.B), OAO Gazprom (OTC ADR: OGZPY), Lukoil (OTC ADR: LUKOY), China National Petroleum Corp. (CNPC), and Malaysia's Petroliam Nasional Berhad (Petronas) all announced major new deals after participating in the biggest oil-field auction in history.

Lukoil and Statoil will redevelop Iraq's West Qurna-2 field, which is believed to hold more than 12 billion barrels of oil reserves, for a production fee of $1.15 per barrel. Royal Dutch Shell and Petronas will develop Majnoon, a similar-sized oil field. Additionally, the state-owned Petronas will join forces with Total SA (NYSE ADR: TOT) and CNPC on the Halfaya field, which has proven reserves! of 4.1 billion barrels.

CNPC in the first licensing round in June joined British oil giant BP PLC (NYSE ADR: BP) as the first companies to win an Iraqi oil contract in more than three decades. The two oil giants signed a deal giving them the rights to Iraq's Rumaila field, one of the nation's largest 17.7 billion barrels of proven reserves.

Under terms of the 20-year contract, BP and CNPC have six years to boost the field's production to 2.85 billion barrels per day (bpd).

China, which recently surpassed Japan to become the world's second-largest economy, may have the most to gain from Iraq' resurgence. A net exporter of oil as recently as the 1990s, China's oil consumption reached 8 million bpd in 2009 - up from 4.9 million in 2001.?

The International Energy Agency (IEA) said last month that global crude demand would average 87.9 million barrels a day next year, with Chinese consumption accounting for about one-third of world growth.

The agency revised the 2010 estimate 50,000 barrels a day higher, to 86.6 million, to reflect China's accelerating industrial activity. China's implied oil demand rose 7.4% in August from a year earlier, more than twice as fast as in July.

China's crude imports rose 13% last month from a year earlier, and consumption has risen following the startup of two new refineries, with a total capacity of 260,000 bpd. August refinery output was up 7.2% from a year earlier to 34.73 million metric tons, or 8.18 million bpd, according to data from the National Statistical Bureau.

Chinese energy companies are well suited for projects in Iraq, because they have less experience and fewer business opportunities than their larger, Western counterparts. Many Western companies are shying away from Iraq because of unfavorable contract terms and security risks. But with exploration costs soaring, and many of the world's premium reserves already spoken for, China is ready and willing to invest heavily in Iraq.

T! he Red D ragon actually was the first country to sign an energy deal with Iraq in the post-Saddam era. CNPC in 2008 agreed to a $3 billion deal to develop the Ahdab oil field, 100 miles southeast of Baghdad.

Exxon Mobil Corp. (NYSE: XOM) and Royal Dutch Shell won the right to develop Iraq's West Qurna-1 oilfield, but by and large U.S. corporations have been virtually invisible in Iraq.?

Of the more than 40 companies to take part in the last licensing round, only seven firms present at the auction were American and only one actually entered a bid. Some industry observers had feared that the underlying goal of U.S.-led invasion of Iraq was to gain control of that Middle Eastern country's oil reserves, but so far that hasn't been the case.

"We haven't really seen U.S. companies, and that is because of intense competition," said Thamir Ghadhban, a prime ministerial adviser and former oil minister. "The issue is financial and technical and not at all political. This confirms Iraq can manage its oil policy and activities without politicization."

A senior U.S. trade official on Wedneday said that American companies can no longer afford to wait until there is "nice, neat order" before going after business deals in Iraq.

"We believe that American companies can compete with anyone in the world, but we do have to show up," said Francisco Sanchez, the U.S. undersecretary of commerce for international trade. "The time is now. I think American businesses that want to take advantage of opportunities, if they wait a year, and wait until everything is in a nice, neat order they are going to cede opportunities to businesses from other parts of the world."

Sanchez currently is leading a delegation of executives from 14 U.S.-based companies visiting Iraq.

"Opportunities to create partnerships and to engage is not a year and a half from now, or two years from now where perhaps you'll see a continued reduction in attacks or ! violence ," he said. "If you want to really play a role here, you have to be here now."

The United States spent some $700 billion on the Iraq war and is the country's third-largest trading partner after Syria and Turkey.

Germany and France say debt talks advancing

2012-01-17T17:20:00.001-08:00

NEW YORK (CNNMoney) -- The leaders of France and Germany said Monday that progress has been made on last month's proposed deal aimed at resolving Europe's debt crisis.
The fiscal pact, designed to ensure that governments do not spend beyond their means and rack up unsustainable debts, could be signed later this month and go into effect as early as March, said German Chancellor Angela Merkel, following a meeting with French President Nicolas Sarkozy in Berlin.
Sarkozy stressed that eurozone governments should stand by their commitments to reduce deficits, adding that the agreement could be signed in the "coming days."
The terms of the pact include, among other things, a balanced budget requirement with an "automatic correction mechanism," and a provision to make national budget policies subject to EU authority "ex ante," or before the fact.
The political leaders of the 17 eurozone nations, which share the embattled single euro currency, agreed in principle to abide by the pact following a summit on Dec. 9. But the agreement is still subject to parliamentary approval in some member states.
European Union leaders will meet Jan. 30 in Brussels for their first political summit of the year as they struggle to find solutions to the debt problems at the center of Europe's economic and financial crisis.
Europe's debt crisis: 'No clear end in sight'
Merkel and Sarkozy, the leaders of the eurozone's largest economies, also reiterated their commitment to the euro currency and pledged to revive the continent's ailing economy.
"We believe in the Euro, we believe in Europe and must do everything to increase its competitiveness and foster job growth," said Merkel.
The leaders said that Greece, the nation at the heart of the crisis, should remain a member of the currency union. But they called on the government of Lucas Papademos to push through reforms necessary to secure the latest installment of bailout money for Greec! e.
Merkel and Sarkozy reiterated their support for an agreement with private sector banks and investors to "voluntarily" reduce the value of Greek government bonds by 50%, which has yet to be finalized. But they cautioned that the so-called haircuts will not be enough to solve the nation's economic and debt problems.
The leaders also discussed a proposed financial transaction tax, which France has championed as a way to overcome the crisis.
Sarkozy said the tax would never be implemented globally unless Europe and France take the first step. Critics say imposing a tax on financial transactions, such as trades of stocks or other assets, would drive capital away from European markets.
Merkel advocated imposing the tax locally, either across the European Union or euro area.

Clorox: Icahn Withdraws His Director Slate

2012-01-17T12:09:00.001-08:00

Clorox (CLX) shares fell 4.9% after the market closed on Friday following a decision by Carl Icahn to withdraw his proposed slate of directors for the company’s board. In a regulatory filing, Icahn citedthe tumultuous market and a lack of shareholder support.
“The Reporting Persons have decided to withdraw their slate of directors after concluding that a considerable base of shareholders would not support their stated campaign at this time. While the Reporting Persons continue to believe that the best way to ultimately maximize shareholder value is through a sale of the Issuer to a strategic buyer, the Reporting Persons respect and understand that several large shareholders may believe that now is not the best time to run that process, given the deteriorating conditions of the financial markets and the Issuer’s view that even the Reporting Persons $80 per share offer substantially undervalues the Issuer.”

W&T Offshore Placed as New High Achiever - WTI

2012-01-17T07:13:00.001-08:00

W&T Offshore, Inc. (NYSE:WTI) recently hit 52 week peak price $20.65, opened at $19.37 scored +5.93% closed $20.35. WTI traded on over 1.13 million shares in comparison to average volume of 730,409 shares.
WTI has earnings of $160.40 million and made $694.93 Million sales for the last 12 months. Its quarter to quarter sales remained 1.52%. The company has 74.63 million of outstanding shares and 34.88 million shares were floated in the market.
WTI has an inside ownership at 0.36% and institutional ownership remained 52.14%. Its return on investment (ROI) for the last 12 month was 13.19% as compare to its return on equity (ROE) of 41.20% for the last 12 months. The price moved ahead +10.66% from the mean of 20 days, +15.59% from 50 and went up 69.54% from 200 days average price. Company’s performance for the week was 10.48%, +13.81% for month and yearly performance remained 126.61%.
Its price volatility for a month remained 3.17% whereas volatility for a week noted as 3.95% having beta of 1.44. Company’s price to sales ratio for last 12 months was 2.19 while its price to book ratio for the most recent quarter was 3.36 and its earnings before interest, tax, depreciation and amortization (EBITDA) remained 466.55 Million for the past twelve months.

Top 10 Smartest States for Financial IQ

2012-01-17T01:55:00.001-08:00

Which states will have the highest financial IQ?

Navigating a path toward a comfortable retirement requires sound knowledge of financial basics and existing investment choices, as well as the ability to understand and cope with the ever-changing set of financial instruments.

A recently released study by the nonpartisan Employee Benefit Research Institute in Washington used relatively new data from the National Financial Capability Study, designed by the FINRA Investor Education Foundation, to show the difference in financial literacy and financial behavior across states.

The data show that mostly the same states tend to appear at the top and bottom of financial literacy and financial behavior rankings. What does this suggest? There might be something going on at the state level whereby individual financial literacy and financial behavior are being shaped not only by individual demographic characteristics but also by the state in which people live, EBRI says.

To determine which states had the highest financial IQ, AdvisorOne added each states’ ranking in Literacy and Behavior and, like golf, the lower scores won. If a tie occurred on Overall Score, then the tiebreaker went to the state with the better ranking for Behavior, because acting is better than merely knowing what to do. Herein are the Top 10 Smartest States for Financial IQ. (Another slideshow will include the 10 Dumbest States for Financial IQ.)

10. NEBRASKA

Overall Score: 27

Literacy: 9

Behavior: 18

9. DELAWARE

Overall Score: 24

Literacy: 21

Behavior: 3

8. WISCONSIN

Overall Score: 22

Literacy: 7

Behavior: 15

7. NEW HAMPSHIRE

Overall Score: 14

Literacy: 1

Behavior: 13

6. ALASKA
(Won tiebreaker with N.H.)

Overall Score: 14

Literacy: 13

Behavior: 1

5. WASHINGTON STATE

Overall Score: 13

Literacy: 5

Behavior: 8

4. UTAH

Overall Score: 12

Literacy: 10

Behavior: 2

3. IDAHO

Overall Score: 11

Literacy: 4

Behavior: 7

2. COLORADO

Overall Score: 10

Literacy: 6

Behavior: 4

1. MINNESOTA

Overall Score: 8

Literacy: 2

Behavior: 6

BONUS page: See next page for states with the weirdest results.

RANKING ODDITIES

-- States that know what to do but refuse to do it:

VERMONT comes in at No. 8 for Literacy, but No. 41 for Behavior.

-- States that don’t know what to do but somehow still do it:

NEW JERSEY was ranked 35^th in Literacy but 5^th in Behavior.

WASHINGTON, D.C. (yes, it’s not officially a state, but don’t tell them that), was ranked 38^th in Literacy but 9^th in Behavior.

-- Disappointments:

NEW YORK, though the study encompasses the whole state it is home to the city that is the financial capital of the world, you'd think they'd do better. The state ranked an abysmal 46^th in Financial Literacy and came in at 25^th in Behavior. In Literacy, New York ranked below West Virginia and Alabama. Ouch!

--------------------

Top 10 lists from AdvisorOne:

Top 10 (Surprisingly) Best Cities for Retirees

Top 10 Wealthiest U.S Cities

Best & Worst 529 Plans

Top 10 Richest Colleges: Biggest Endowments

Top 10 Worst Financial Meltdowns by Athletes

Top 10 Super Rich European Cities

5 Best & Worst Broker-Dealers: Q3 Earnings

(MDT, CRWE, O, LRN) Notable Stock by DrStockPick.com

2012-01-16T20:50:00.001-08:00

Medtronic, Inc. (NYSE:MDT) announced that a jury in the United States District Court of the Southern District of California in San Diego, found that NuVasive’s CoRoent XL implants, MaXcess II and III retractors, and Helix and Helix mini anterior cervical plates infringe three patents owned by Medtronic. The jury awarded Medtronic $101.2 million in damages.
Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. It provides implantable cardioverter-defibrillators, cardiac resynchronization therapy devices, and cardiac pacemakers for the diagnosis, treatment, and management of heart rhythm disorders and heart failure; AF products; diagnostics and monitoring devices; and patient management tools.
Crown Equity Holdings, Inc. (CRWE)
Crown Equity Holdings Inc’s selection of Core Link reflects recent diversification beyond CRWE’s original charter as a provider of services and knowledge to small business owners taking their own companies public. In addition to these services, Crown Equity Holdings Inc has transitioned into a multifaceted media organization that publishes clients’ news online; sells advertising adjacent with its digital network targeted at a high-income audience; designs, hosts and maintains websites; produces marketing videos from concept to final product; crafts press releases and articles for maximum SEO; develops email campaigns; and forges branding campaigns to bolster client company images.
Crown Equity Holdings, Inc. together with its digital network, currently provides electronic media services specializing in online publishing, which brings together targeted audiences and advertisers. Crown Equity Holdings Inc. offers internet media-driven advertising services, which covers and connects a range of marketing specialties, as well as search engine optimization for clients interested in online media awareness.
Crown Equity Holdings Inc! . (CRWE) is pleased to announce that it has entered into a joint venture to deploy VoIP (Voice over Internet Protocol) technology delivering voice, video and data services to residential and commercial customers. The joint venture company is Crown Tele Services Inc. which was a wholly-owned subsidiary of Crown Equity Holdings Inc. Crown Equity Holdings Inc. will own fifty percent (50%) interest in the joint venture.
Commenting on the joint venture, Kenneth Bosket, President of Crown Equity Holdings Inc., said: “We are excited to deliver VoIP communications solutions specifically designed to meet the business and residential market needs in this fast-growing global market.”
Voice over Internet Protocol (VoIP) is a type of technology that allows its users to make calls using the broadband Internet rather than the conventional or analog phone system. Voice over Internet Protocol (VoIP) works by converting sound into digital voice communication and then transferring it through Internet broadband. So if you are using a Voice over Internet Protocol (VoIP) telephone system, you are basically using the Internet to make phone calls. Using a VoIP system has several benefits for many businesses. The cost of using a Voice over Internet Protocol (VoIP) telephone is much cheaper than using a conventional phone. Making long distance phone calls are also cheaper when using a Voice over Internet Protocol (VoIP) provider.
For more information, visit http://www.crownequityholdings.com
Realty Income Corp. (NYSE:O) announced that a public offering of 6,300,000 shares of the Company’s common stock has been priced at $34.00 per share and is expected to close on September 26, 2011. Net proceeds from the offering, after underwriting discounts and estimated offering expenses payable by the Company, will be approximately $203.6 million.
Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States! .
K12, Inc. (NYSE:LRN) announced a partnership with The New York Times on a first-of-its-kind education conference: “Schools for Tomorrow: Bringing Technology into the Class room.”
K12 Inc., a technology-based education company, provides proprietary curriculum and educational services for online delivery to students in kindergarten through 12th grade (K12) primarily in the United States.

Bonds Beating Gold for Funds on Slowest Inflation Since ¡¯09: India Credit

2012-01-16T15:29:00.001-08:00

Investors in India are shunning goldwhile adding to holdings of government bonds, betting thatpolicy makers will cut borrowing costs as inflation slows to theleast in two years.
Assets managed by funds that buy bullion shrank 4.3 percentto 91.5 billion rupees ($1.8 billion) in December, while thosethat trade in rupee-denominated sovereign debt increased 17percent to 31.2 billion rupees, according to the Mumbai-basedAssociation of Mutual Funds in India. Gold imports by theworld��s biggest buyer may slump 48 percent in the three monthsending March from a year earlier, the Bombay Bullion Associationsaid this month.
Government notes are rallying before data next week thateconomists predict will show wholesale prices rose 7.4 percentin December, compared with 9.11 percent in November, a sign thatseven interest-rate increases last year are taming pricepressures. The nation��s 10-year bonds yield 8.22 percent, 82basis points more than the inflation forecast. China has so-called real interest rates of minus 70 basis points, while SouthKorea��s are minus 40.
��Indian investors�� sacred affinity toward gold will betested by factors like real interest rates and investmentopportunities in other assets,�� Ritesh Jain, the Mumbai-basedhead of investment at Canara Robeco Asset Management Ltd. thatoversees $1.3 billion, said in an interview yesterday. ��Demandfor gold in India may fall 25 percent to 30 percent in 2012.��
Borrowing Costs
The metal was being perceived as a hedge against inflationthrough last year, Jain said, as increases in wholesale pricesheld above 9 percent for 12 consecutive months through November.This was especially so in rural India, where banking facilities��continue to be dismal,�� he said.
Funds that buy gold managed 2 percent of total assetsinvested by India��s investors in mutual funds at the end ofDecember, compared with 20 percent overseen by those that tradein bonds due in less than 12 months. Debt securities withmaturities longer than a year a! ccounted for 49 percent, whileequities made up 23 percent.
The nation��s interest-rate swap market suggests thatborrowing costs will decline. The cost to lock in interest ratesfor 12 months dropped three basis points, or 0.03 percentagepoint, to 7.88 percent today. That��s 62 basis points below theReserve Bank of India��s 8.5 percent repurchase rate. GoldmanSachs Group Inc. predicts policy makers will cut the repo rateby 1.5 percentage points this year, while Deutsche Bank AGestimates a one percentage point reduction.
Rupee Advances
Global funds are adding to holdings of the nation��s debtsecurities before the central bank reviews borrowing costs onJan. 24. International investors bought more rupee-denominatednotes than they sold for an eightth consecutive trading day onJan. 11, boosting their ownership this month by $2 billion to$28.1 billion, according to exchange data.
The purchases are spurring a rally in government bonds andthe rupee. Yields on the nation��s benchmark 8.79 percent notesdue in November 2021 have slumped 35 basis points this yearafter increasing 65 basis points in 2011. The yield fell threebasis points to 8.22 percent today, according to the centralbank��s trading system.
The rupee, Asia��s worst-performing currency last yearfollowing a 16 percent slide, gained 0.4 percent today to51.3760 per dollar, according to data compiled by Bloomberg. Thecurrency has strengthened 3.5 percent in 2012, the bestperformance among the region��s 10 most-traded currencies.
Gold Slumps
Gold for immediate delivery, which gained 10 percent in2011, has slid 14 percent after touching a record $1,921.15 anounce on Sept. 6 and traded at $1,647.02 today.
Imports of the metal may decline to 150 metric tons in thethree months through March, from 286 tons a year earlier, as therupee��s 2011 decline boosts prices, Prithviraj Kothari,president of the Bombay Bullion Association, said in aninterview.
��If gold were to correct, especially in the near term, and! the rupe e were to remain sideways, it wouldn��t augur very wellfor the investor,�� Lakshmi Iyer, head of fixed income andproducts in Mumbai at Kotak Mahindra Asset Management Co. thatoversees $5.7 billion, said in an interview on Jan. 11.��Sentiment is biased toward investing in fixed income over anyother asset class for now.��
The cost of protecting the debt of State Bank of India,which some investors consider a proxy for the nation, isclimbing as Europe��s debt crisis dims the allure of emerging-market assets.
Cultural Factors
Credit-default swaps on the lender cost 396 basis pointstoday after touching a two-year high of 405 on Jan. 9, accordingto CMA, which is owned by CME Group Inc. and compiles pricesquoted by dealers in privately negotiated markets. The swaps paythe buyer face value for the underlying securities should acompany fail to adhere to its debt agreements.
With Europe��s sovereign-debt crisis spreading ��like aplague,�� gold will continue to attract investment in 2012because of its appeal as a haven, according to Reliance CapitalAsset Management Ltd.
Demand will also be supported by cultural factors as goldis an important part of family occasions in India such asweddings, Sundeep Sikka, the Mumbai-based chief executiveofficer at Reliance Capital, said in an interview on Jan. 6.Hindus, who account for about 80 percent of the nation��spopulation, also consider buying gold auspicious duringreligious festivals.
��Extremely Bullish��
��Demand for physical gold has always been strong inIndia,�� Sikka said. ��The current global macroeconomicenvironment is very conducive for higher gold prices. Thefundamental outlook for gold remains extremely bullish.��
Slowing growth in Asia��s third-biggest economy will dampdemand for bullion, according to Canara Robeco��s Jain.
Sales of passenger cars in the nation fell almost 7 percentfrom November to 159,325 units last month, according to datafrom the Society of Indian Automobile Manufacturers. Gros! sdomesti c product will rise about 7 percent in the year endingMarch, Prime Minister Manmohan Singh said on Jan. 8, less than aprediction of 7.5 percent he made in December.
India��s bonds have returned 1.2 percent this month, thebest performance among 10 Asian local-currency debt marketsmonitored by HSBC Holdings Plc. The difference in yields betweenrupee-denominated notes due in a decade and similar-maturityU.S. Treasuries has narrowed 32 basis points in January to 630.
��With easing of inflation, people aren��t thinking ofbuying gold,�� Chirag Mehta, Mumbai-based fund manager atQuantum Asset Management Company, a unit of Quantum AdvisorsPvt. that manages about $1.1 billion, said in an interviewyesterday. ��Investors are thinking that bond yields have peakedand it��s a good time to invest in government bonds.��

Mortgage Activity in First Week of 2012: Guarded Optimism?

2012-01-16T05:11:00.001-08:00

The new year might be bringing in fresh optimism for the housing market. Results are in from the Mortgage Bankers Association��s Weekly Applications Survey, which imply a modest pickup in applications and sales.
Seasonally adjusted for the New Year��s Day holiday, the four week moving average for mortgage applications and purchases is down 1.92 percent, but the bright spot is that for the first week of January that trend reverses. Mortgage applications increased by 4.5 percent and purchases by 8.1 percent, implying that home purchasers were waiting for January to act. Possible reasons are uncertainty regarding possible tax increases for 2012, intentions to put home purchases in the new tax year, and preoccupation with holiday activities. Weather conditions can affect mortgage activity levels but for this week that would not pertain, as there were no significantly adverse conditions as a whole.
Don’t Miss: Bernanke to Congress: We Need Your Help to Revive Housing.
Other Survey items tend to confirm the above implications: refinance activity in the first week was down about 1 percent, and adjustable rates were up to 5.4 percent from 4.7 percent the week before. The former can be interpreted as less concern among home owners over their ongoing interest rates, and the latter as less fear of volatility in the mortgage market, in that buyers were willing to accept loans on that condition.
Other rate changes involved long and short term fixed-rate mortgages. 30-year loans with conforming balances ($417,500 or less) had contract rates increasing from 4.07 percent to 4.11 percent, with points decreasing, while rates for jumbo loan balances ($417.500 or more) saw the opposite change. This could indicate that those buyers with lower incomes are less wary of long run adverse economic conditions, assuming there was no institutional need for rate hikes.15-year fixed rate loans showed the same rate increase, but FHA backed mortgages saw their rates unchanged.
This! week��s numbers could be only a spike, but if this trend continues into the rest of January and farther, it could imply higher confidence in the economy, as homes are usually the largest expenditures in most people��s lifetimes. That makes these statistics into a highly accurate economic barometer, and one well worth watching.
To contact the reporter on this story: Mark Lawson at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

Quest for Credit – Complete Version (HD)

2012-01-16T00:00:00.001-08:00

The importance of good credit in our society is unquestionable — as is the destructive power of its ugly cousin, bad credit. Yet, millions of consumers succumb to materialistic temptations or fall into the many traps laid forth by credit-card companies (ever tried making only the minimum payments on a large credit card balance?). And while wise credit management isn’t an easy skill to learn and maintain, battling your “bad credit demons” is even more difficult. To illustrate the importance of staying out of debt while building and maintaining a good credit history,?we?give you Mint.com‘s short epic,?The Quest for Credit.?The?presentation may be humorous, but don’t get us wrong:??bad credit is no laughing matter. If you need help with battling your debt demons, check out the budgeting tools at Mint.com.
Embed the above image on your site
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One Reason the Street Should Love Polypore International's Earnings

2012-01-15T19:30:00.001-08:00

It takes money to make money. Most investors know that, but with business media so focused on the "how much," very few investors bother to ask, "How fast?"
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Polypore International (NYSE: PPO  ) .
Let's break this down
In this series, we measure how swiftly a company turns cash into goods or services and back into cash. We'll use a quick, relatively foolproof tool known as the cash conversion cycle, or CCC for short.
Why does the CCC matter? The less time it takes a firm to convert outgoing cash into incoming cash, the more powerful and flexible its profit engine is. The less money tied up in inventory and accounts receivable, the more available to grow the company, pay investors, or both.
To calculate the cash conversion cycle, add days inventory outstanding to days sales outstanding, then subtract days payable outstanding. Like golf, the lower your score here, the better. The CCC figure for Polypore International for the trailing 12 months is 104.1.
For younger, fast-growth companies, the CCC can give you valuable insight into the sustainability of that growth. A company that��s taking longer to make cash may need to tap financing to keep its momentum. For older, mature companies, the CCC can tell you how well the company is managed. Firms that begin to lose control of the CCC may be losing their clout with their suppliers (who might be demanding stricter payment terms) and customers (who might be demanding more generous terms). This can sometimes be an important signal of future distress -- one most investors are likely to miss.
In this series, I'm most interested in comparin! g a comp any's CCC to its prior performance. Here's where I believe all investors need to become trend-watchers. Sure, there may be legitimate reasons for an increase in the CCC, but all things being equal, I want to see this number stay steady or move downward over time.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.
Because of the seasonality in some businesses, the CCC for the TTM period may not be strictly comparable to the fiscal-year periods shown in the chart. Even the steadiest-looking businesses on an annual basis will experience some quarterly fluctuations in the CCC. To get an understanding of the usual ebb and flow at Polypore International, consult the quarterly-period chart below.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.
On a 12-month basis, the trend at Polypore International looks very good. At 104.1 days, it is 12.4 days better than the five-year average of 116.5 days. The biggest contributor to that improvement was DSO, which improved 14.6 days compared to the five-year average. That was partially offset by a 5.0-day increase in DPO.
Considering the numbers on a quarterly basis, the CCC trend at Polypore International looks good. At 107.6 days, it is little changed from the average of the past eight quarters. With both 12-month and quarterly CCC running better than average, Polypore International gets high marks in this cash-conversion checkup.
Though the CCC can take a little work to calculate, it's definitely worth watching every quarter. You��ll be better informed about potential problems, and you'll improve your odds of finding the underappreciated home run stocks that provide t! he marke t's best returns.

Add Polypore International to My Watchlist.

(GBLHF.PK, MJGCF.PK, ICLR, WWD, GSBC) Stock Updates by DrStockPick.com

2012-01-15T13:44:00.001-08:00

Global Hunter Corp. (GBLHF.PK)
Molybdenum is generally alloying element with steel in order to make that steel stronger. In fact, when molybdenum is added to even small steel concentrations, the result is an ultra-high-strength steel that will maintain structural stability when placed under pressures reaching as high as 300,000 lbs/sq. in. Theses massive levels of strength do not deteriorate in high temperatures, making steel molybdenum alloys viable materials for missile and aircraft parts.
Nickel molybdenum alloys are generally used for their resistance to corrosion and deformation caused by certain chemicals. These alloys, therefore, are often used in the chemical industry. Molybdenum in its pure form is also a crucial element for plant nutrition, so you will find it being used in a wide range of fertilizers.
Global Hunter’s focus is on strategic and base metals, with an advanced stage copper oxide project in Chile and a highly prospective molybdenum property in British Columbia, Canada. GBLHF teams are working on developing the Corona de Cobre property in Chile and the Rabbit south property in British Columbia.
Global Hunter Corp. (GBLHF.PK) is pleased to announce initial assay results from its previously announced surface sampling program. The results are encouraging with new gold showings as well as very positive copper oxide assays over wide-spread areas.
Highlights of the entire program
9 mineralized shear and/or alteration zones sampled total of 13.5 kilometers of strike length along know copper bearing shear and alteration zones tested with 205 rock chip samples
Good grades of soluble copper (oxide) over a significantly large area have been identified, however they represent only about 50% of the tota! l copper grade indicating a mixed oxide-sulphide zone. Numerous iron oxide structures have also been mapped but no iron assays have been received to date.
The Company is planning to re-assay samples for iron to determine if iron is present in significant quantities to represent another target.
For more information http://www.globalhunter.ca/homeabout.html

MAJESTIC GOLD CORP (MJGCF.PK)
Gold is used in circuitry because it is a dependable conductor and connector. In addition, many parts of every space vehicle are fitted with gold-coated polyester film. This film reflects infrared radiation and helps stabilize the temperature of the spacecraft. Without this coating, dark colored parts of the spacecraft would absorb significant amounts of heat.
MAJESTIC GOLD CORP (MJGCF.PK) engages in the exploration and development of mineral properties in China. The company focuses on its gold project located in the prolific gold region of Song Jiagou in eastern Shandong Province. Majestic Gold Corp. is headquartered in Vancouver, Canada.
MAJESTIC GOLD CORP (MJGCF.PK) has arranged a $10,000,000 loan to advance its Song Jiagou project in China. Nine million dollars ($9,000,000) from the proceeds from the loan will be used by the Company to in connection with its Song Jiagou project and the balance of one million dollars ($1,000,000) for general working capital purposes.
The loan will have a one year term and loan principal will be convertible at the option of the lender in whole or in part into common shares (”Shares”) of the Company until twelve months from the date of the loan advance at the price of $0.205 per Share. The loan will bear interest at the rate of 7.5% per annum, payable on maturity, and accrued and unpaid inte! rest wil l be convertible at the option of the lender in whole or in part into shares of the Company until twelve months from the date of the loan advance at Market Price at the time of conversion.
The lender is at arm’s length from the Company and will not become an insider as a result of any conversion of principal and interest. All shares issued on any conversion of loan principal or interest will be subject to a four month hold period from the date of advance of loan proceeds. The loan is subject to acceptance by the TSX Venture Exchange.
As additional consideration for the loan, the Company has agreed to forward at least $9 million to Majestic Yantai Gold Ltd., a British Virgin Islands company owned 94% by the Company to be used to further advance its Song Jiagou project. The Borrower has also agreed to a 90 day period for reciprocal due diligence reviews and discussions for the possible further involvement of the Lender in the Song Jiagou project.
In the event that no further agreement is reached between the Lender and the Company during the 90 day period, then the loan and a minimum of seven (7) months interest will automatically convert to shares in the Company at a price of $0.205 per share and the interest at Market Price respectively. In addition the Company is pleased to announce that it has arranged a non-brokered private placement of up to 15,000,000 shares to be issued at the price of $0.20 per share for gross proceeds of $3,000,000.
For more information about MAJESTIC GOLD CORP. visit its website: http://www.majesticgold.net

ICON plc (Nasdaq:ICLR) announced that Mr. Peter Gray has informed the Board of his decision to retire as CEO, after 14 years with the Company, the last 9 of which were as CEO. The Board has appointed Mr. Ciaran Murray, who has held the position of CFO for the last 6 years, to succeed Mr. Gray effective October 1, 2011.
ICON plc, a contract research organization, provides outsourced development services to the p! harmaceu tical, biotechnology, and medical device industries primarily in Ireland, the United States, and rest of Europe.
Woodward, Inc. (Nasdaq:WWD) announced that its Board of Directors has appointed Gregg C. Sengstack, 53, to serve on the Board. Mr. Sengstack was also appointed to the Audit Committee of the Board.
Woodward, Inc. engages in the design, manufacture, and servicing of energy control and optimization solutions for commercial and military aircraft and ground vehicles, turbines, reciprocating engines, and electrical power system equipment worldwide.
Great Southern Bancorp Inc. (Nasdaq:GSBC) declared a $.18 per common share dividend for the third quarter of the calendar year ending December 31, 2011.The dividend will be payable on October 13, 2011, to shareholders of record on September 30, 2011. This dividend represents the 87th consecutive dividend paid by the Company to common shareholders.
Great Southern Bancorp, Inc. operates as the bank holding company for Great Southern Bank that offers various banking products and services in Missouri, Iowa, Kansas, Nebraska, and Arkansas.

Investing 101: How to Trade High Volume Breakouts

2012-01-15T03:21:00.001-08:00

When a stock price rallies investors, may get drawn in without taking a good look at the rally's underlying causes. One way to investigate if the price trend is legitimate is to check the stock's trading volume.
Trading volume is the number of shares or contracts that have exchanged hands in a given period, usually over a day's trading. When more activity is surrounding a stock, it means more people are essentially voting on the stock's value.
When a large trading volume forms a trend, meaning if it starts to move price upwards or downwards, the trend is considered stronger and more credible than if only a few investors (weak trading volumes) are determining the change.
Golden cross
Using high trading volume to confirm the validity of trends is an important starting point, but these stocks can look even more attractive when paired with the "Golden Cross." This is a technical indicator that signals a stock's 50-day moving average has moved above its 200-day moving average, indicating recent upside momentum may persist.
When a golden cross is paired with strong trading volume, investors can be assured that many investors feel strongly bullish sentiment toward the company. If you believe in crowd mentality, this may be an interesting set of indicators to track.
Business section: Investing ideas
As a final note on high volume trading with momentum stocks: If prices are moving upwards, and volume is increasing simultaneously, it indicates investors feel the stock has more to price in. When a stock is in an uptrend but trading volume is declining, it's a sign the trend is losing its momentum.
For that reason, in creating the list below we searched for golden cross stocks that, on Friday, experienced a daily trading volume was more than 2 times the average daily trading volume over the last two months.
Investors are collectively weighing in as bullish on these momentum stocks. Do you agree with them? (Click here to access free,! interac tive tools to analyze these ideas.)
1. Greenbrier Companies: Engages in the design, manufacture, and marketing of railroad freight car equipment in North America and Europe. SMA50 at 21.67 vs. SMA200 at 20.53 (current price at 25.83). Today's trading volume is equivalent to 4.97 days of average volume.
2. Alliance Resource Partners: Produces and markets coal to utilities and industrial users. SMA50 at 73.44 vs. SMA200 at 71.97 (current price at 82.69). Today's trading volume is equivalent to 3.98 days of average volume.
3. PHI: Provides helicopter transportation services to the integrated energy, and independent exploration and production companies primarily in the Gulf of Mexico. SMA50 at 21.53 vs. SMA200 at 21.37 (current price at 22.45). Today's trading volume is equivalent to 3.45 days of average volume.
4. Commercial Metals (NYSE: CMC  ) : Engages in recycling, manufacturing, fabricating, and distributing steel and metal products, and related materials and services in the United States and internationally. SMA50 at 13.40 vs. SMA200 at 13.35 (current price at 15.27). Today's trading volume is equivalent to 2.45 days of average volume.
5. Zumiez (Nasdaq: ZUMZ  ) : Zumiez, founded in 1978, is a mall-based specialty retailer providing sports-related apparel, footwear, equipment, and accessories. SMA50 at 25.38 vs. SMA200 at 24.30 (current price at 31.62). Today's trading volume is equivalent to 2.38 days of average volume.
6. Aspen Insurance Holdings: Provides insurance and reinsurance products and services worldwide. SMA50 at 25.98 vs. SMA200 at 25.58 (current price at 27.03). Today's trading volume is equivalent to 2.17 days of average volume.
7. Fushi Copperweld (Nasdaq: FSIN  ) : Develops, designs, manufactures, markets, and d! istribut es bimetallic wire products, principally copper-clad aluminum (CCA) and copper-clad steel (CCS). SMA50 at 7.13 vs. SMA200 at 6.84 (current price at 7.95). Today's trading volume is equivalent to 2.03 days of average volume.
8. Cracker Barrel Old Country Store (Nasdaq: CBRL  ) : Engages in the operation and development of the Cracker Barrel Old Country Store restaurant and retail concept in the United States. SMA50 at 46.91 vs. SMA200 at 45.62 (current price at 50.80). Today's trading volume is equivalent to 1.99 days of average volume.
9. Delphi Financial Group: Provides integrated employee benefit services. SMA50 at 30.01 vs. SMA200 at 27.45 (current price at 44.20). Today's trading volume is equivalent to 1.72 days of average volume.
10. SuccessFactors (Nasdaq: SFSF  ) : Provides cloud-based business execution software solutions that enable organizations to bridge the gap between business strategy and results worldwide. SMA50 at 32.12 vs. SMA200 at 30.04 (current price at 39.81). Today's trading volume is equivalent to 1.72 days of average volume.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

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List compiled by Eben Esterhuizen, CFA. Kapitall's Eben Esterhuizen and Rebecca Lipman do not own any of the shares mentioned above.

Waiting For Bernanke: Wall Street Flat Ahead Of FOMC Outcome

2012-01-14T22:11:00.001-08:00

Analysts, traders and investors all might have agita, but the equities market is doing nothing more than yawning.
One day after the market’s worst loss in over a month, a decline that shaved about 1.3% off the S&P 500 Index (GSPC)futures have flattened out and shown no inclination to budge off the static level.
Tuesday’s decline on the part ofU.S. averages proved to be a shadow of the setback that Asia’s markets sufferedin Wednesday’s trading, afterChinese banking officials surprised the market by saying bank lending shrank 77% in July from June levels, raising questions about how robust China’s second-half economic expansion – a linchpin of the so-called recovery trade – is going to prove to be.
Anticipation of theoutcome of the Federal Reserve’s monetary policy meetinghas kept the animal spirits on Wall Street in check on Wednesday, a state that might persist through the nearly five-hour stretch from the opening bell until the central bank unveils the results of the confab at about 2:15p.m.ET.
The ”results” might be something of a misstatement, of course, because there’s absolutely no expectation the Fed is going to do anything tochange monetary policy at this juncture. Ratesstand at or near zero, and the economy is too fragile for anybody to suggest the central bankplanned to change that backdrop. Whilesome economists will parse the accompanying commentaryin order to divine whenBen Bernanke and crew might think about raising rates, it’s likely even too early to start handicap a time span.
Instead, most of the focus is likely to alight on the Fed’s plans for its quantitative easing policy. Investors are going to want to know if the central bank planned toexpand its program to purchase $300 billion in long-term Treasuries before the program is slated to run out. Evenon that issue, though – and even with a Fed more sensitive to the need for transparency – economi! sts mayg et nothing more than hints about the Fed’s plans, let alone a full-scale blueprint.
Meanwhile, government bonds are unchanged ahead of the Treasury’s plan to unleash $23 billion in 10-year notes on the market, part of the government’s auction of $75 billion of new paper this week. Tuesday’s sales of short-term paper proceeded relatively well, but the shorter maturities are expected to command more of a following, and the question the market is asking now is how strong the appetite for longer-dated Treasuries is going to prove itself to be.
Commodities could be on the defensive, putting pressure on equities, after BHP Billiton (BHP)posted results that indicated some caution on the company’s part about its outlook owing to the weakness in the metals market.
Macy’s (M)tradedhigher in premarket, moving ahead about 3%, after the department-store giant reported second-quarternet plunged 90%, but EPS beat estimates, and it raised its outlook for the year.

3 Things You Should Know About Small Business: Dec. 12

2012-01-14T17:01:00.001-08:00
What's happening in small business today?

1. Small businesses furious over Amazon's Price Check app. An Amazon(AMZN) app that lets shoppers check to see if they could buy their desired purchase cheaper on Amazon rather than at bricks-and-mortar stores has small businesses fuming. On Saturday, Amazon offered up to a 5% discount on purchases made with it.
Critics call it "showrooming" when shoppers go to a store to browse for a product but ultimately buy it online, according to ecreditdaily.com, and it is adding fuel to an already burning fire: that some say Amazon is using a tax loophole to not pay state sales tax. (There is legislation seeking to combat the problem through online sales tax reform, but the reform, if passed, will affect small businesses too.)
"Amazon's promotion -- paying consumers to visit small businesses and leave empty-handed -- is an attack on Main Street businesses that employ workers in our communities," says Sen. Olympia Snowe (R-Maine), ranking member in the Senate's Committee on Small Business and Entrepreneurship. "Small businesses are fighting every day to compete with giant retailers such as Amazon, and incentivizing consumers to spy on local shops is a bridge too far. "
2. Tips for building an e-commerce store. Retailers selling through the Web have advantages compared with solely bricks-and-mortar stores. The Web can boost a business' bottom line by keeping overhead expenses down, reducing reliance on third parties to sell a store's wholesaled goods and is increasingly where customers look to buy, according to The Wall Street Journal.
Building a successful e-commerce platform within your company Web site doesn't have to be complex or expensive, the article says. Services such as Goodsie, Shopify, Storenvy and Weebly are easy and affordable for small-business owners looking to launch unique e-commerce platforms! versus competitors such as eBay (EBAY) and Etsy.
3. Entrepreneurial lessons from Jillian Michaels. Jillian Michaels, star of reality hit series The Biggest Loser, shares with CNNMoney that while she may give contestants some tough love as their personal trainer, her true passion is "improving the lives of others through her one-woman wellness brand."
Michaels, 37, overcame childhood bullying and insecurities from being overweight. Her empire, which includes her services as a life coach, an author and personal trainer reportedly brought in $200 million last year, according to the article.
Her lessons to others include defining a purpose and always look to expand those services; getting a mentor, which can "accelerate" success; finding meaning in inevitable setbacks; not selling yourself short -- as in not making businesses decisions based on fear; and aligning with vendors and other companies who share your vision.
To follow Laurie Kulikowski on Twitter, go to: http://twitter.com/#!/LKulikowski
To submit a news tip, send an email to: tips@thestreet.com.
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FSI OneVoice 2011: Center for Retirement Research¡¯s Munnell on Baby Boomers' State of Mind

2012-01-14T01:29:00.001-08:00

Alicia Munnell, director of the Center for Retirement Research at Boston College, addressed attendees at the midday keynote of FSI’s OneVoice 2011 conference in Phoenix Tuesday. Her message—the preparedness (or lack thereof) of baby boomers for retirement—was not new to her audience, but the statistics she provided and the tone of her presentation provided clarity for the challenges faced by the boomer generation.

“My mission today is two-fold,” Munnell (left) said. “I’m here to discuss the outlook for boomers in retirement and to advertise and advocate for the use of the financial planning tools we’ve made available.”

Retirement needs are increasing, she explained. The reasons are many; people are living longer and life expectancy is rising. At the same time, they continue to retire earlier. The retirement age in 2010 is still far lower than in 1970, even with all that boomers have recently gone through. Health care costs also continue their stratospheric rise, she said, and two-thirds of the population will need some sort of long term care.

“So as these needs are increasing, the retirement system is contracting, specifically when it comes to the traditional three-legged stool, which includes Social Security, investing and personal savings,” Munnell noted.

She argued that the first leg, Social Security, will replace less and less income moving forward, regardless of current laws. Also, the Social Security tax threshold is not indexed to inflation or wage increases, which will negatively affect more people as they reach said threshold.

The second leg, investments, contains a surprising fact, she says; less than half of employees work for companies that offer a defined benefit or a defined contribution plan. Of those that work for companies that offer plans, fully 20% of employees do not participate, and fully 90% do not contribute the maximum amount.

“People are traditionally bad at allocation, with far too much invested in company stock,” she stressed. “And young people, especially, tend to cash out rather than rollover their contributions when the change jobs. So even before the recession, 401(k) balances were far too small.”

The third leg, the personal savings rate, was actually negative for an extended period of time, especially after the year 2000. Christmas clubs and other tools that encouraged saving in a “we’re in this together” manner fell by the wayside.

Within this environment, she continued, boomers were struck by an economic crisis. The stock market dropped by 49% and the unemployment rate more than doubled. As a result, boomers flooded the job market. While younger people dropped out of the job market, older workers saw work as a way to compensate for lost assets. But fewer jobs meant high unemployment in the demographic.

As a result, many claimed Social Security benefits early. A downward trend in claiming Social Security benefits was reversed. This caused actuarial issues, and they were then forced to receive less in benefits for the rest of their lives. Whatever savings they had left was earning little due to the low interest rate environment from the Federal Reserve’s stimulus action, Munnell explained.

“Out of all this, we developed the National Retirement Risk Index, which quantifies the magnitude of the retirement challenge by measuring key categories considered critical to retirement success,” she added. “In 2007, 44% of households were considered to be at risk. In 2009, that number had risen to 51%. That means half of U.S. households are at risk for outliving their assets in retirement.”

Explaining that she didn’t want her presentation to be “all doom and gloom,” she then turned to possible solutions to address the baby boomer situation.

“There are three levers baby boomer can adjust: they can control their spending; work longer or; make more effective use of their retirement assets,” she said. “These levers, when adjusted properly, are incredibly powerful. Controlling their spending is actually more important to a successful retirement outcome than saving. Working longer is the most powerful of the three because it means more Social Security, more 401(k) assets and an increase in the ratio of working to retirement years. The problem is high unemployment and negative biases on the part of certain employers towards older workers. When talking about the effective use of retirement assets, few people consider the house in the equation. Their house is a valuable asset and a potential source of retirement income through reverse mortgages and other techniques.”

Although these are powerful levers, she stressed that moving boomers to action requires making clear that their choices are constrained.

“We must quantify for boomers how powerful these levers are,” she concluded. “Lecturing them won’t work. Only by telling them that ‘doing nothing is not an option’ will we actually motivate them to do something. Presenting the reality of their situation will usually motivate them to act.”

10 Big Late Movers: Banks Downgraded Across the Board, Angie’s List, Groupon, and LinkedIn Trade Below IPO Price

2012-01-13T20:20:00.001-08:00

Late Tuesday, rating agency Standard & Poor��s announced downgrades on 37 global banks, by applying its new ratings criteria for banks, which were published earlier this month.? The updates in the ratings is part of a major overhaul for scoring creditworthiness, as the credit rating agency received heavy criticism after failing to properly rate mortgage-backed securities in the housing bubble.
Bank of America Corp. (NYSE:BAC) is down more than 1% in late trading, after falling 3.24% during regular market hours.? The bank most recently traded near $5.? Concerns are mounting that several institutional investors such as State Street (NYSE:STT), BlackRock (NYSE:BLK) and JP Morgan (NYSE:JPM) are forced to liquidate their BofA positions as shares fall below $5.
Morgan Stanley (NYSE:MS), Wells Fargo (NYSE:WFC), and Goldman Sachs (NYSE:GS) also declined by nearly 1% after the closing bell.? However, shares of Citigroup (NYSE:C) are down only .40% after the downgrades.
Aside from the bank sector (NYSEARCA:XLF), shares of tech related companies are also attracting attention in late trading.? After closing nearly 11% on Tuesday, shares of Corning Inc. (NYSE:GLW) continue to edge .15% lower in extended hours.? The company announced it would reduce its worldwide glass capacity by 25% in the fourth quarter.? It may also see lower demand for its Gorilla Glass products.? Shares of Apple (NASDAQ:AAPL) are also trading lower on the news.
Investing Insights: Leon Cooperman��s $1 Billion Q3 Share Position Changes: GLD, SLM, ETFC, XL, KKR, MET.
Despite a bright outlook, shares of Cisco (NASDAQ:CSCO) closed nearly 2% lower on Tuesday.? Public Internet traffic is on the rise and so is the traffic inside the data centers where the web content originates. Cisco��s Visual Networking Index sees! traffic quadrupling by 2015 as they dominate the the overall market for data center networking gear. For the first time, Asia will also generate more traffic than North America, although America still beats China.
Big name IPOs continue to struggle.? Shares of Angie��s List Inc. (NASDAQ:ANGI) fell more than 9% on Tuesday, and continue to head below its IPO price after the closing bell.? Other stocks trading below their IPO price include Groupon (NASDAQ:GRPN) and LinkedIn (NYSE:LNKD).

Is Countrywide (CFC) Worth 50% More?

2012-01-13T15:09:00.000-08:00

Yesterday, news hit the market, beginning with a report in The Wall Street Journal, that Bank of America (BAC) was thinking of buying troubled mortgage bank Countrywide Financial (CFC). At one point CFC was up nearly 70% and closed up 51%.
In side the Davey Jones’ Locker known as the Countrywide balance sheet there are hundreds of mortgage backed securities and tens of thousand of mortages at one stage or another of being paid by borrowers, or not. No human knows exactly what they are worth, or, to be more blunt, are not worth. It may take billions of dollars to save the institution. That is money which will have to be raised somewhere.
Bank of America could be getting a deal. Through its own lending operations it may be able to deduce what the guts of Countrywide look like. Probably not. Those who look on the bright side think that BAC could get a huge lending operation with millions of customers and might be able to pay a song for the place.
Herb Greenberg thinks that the Federal government has a hand in the deal, not wanting to see a big lender fail. Perhaps the Fed is making some guarantee about helping to cover losses. Herb is often right, so there is good reason to believe that this theory holds some water.
Investors poured into the CFC stock yesterday adding $1.5 billion to the company’s market cap. In reality, they have no idea what the firm is worth. That number could well be zero.
What is certain is that the heavy volume in the stock proves that there are as many suckers in a market on the way down as there are when a stock is rising. They are people who know nothing about the intrinsic value of a thing and are likely to pay a price for that.
Douglas A. McIntyre

This High-Yield Portfolio Will Beat the Market

2012-01-13T10:22:00.001-08:00

Forty-five weeks ago, I invested my cold, hard cash into 10 high-yield dividend stocks I believe will beat the market. Let's see the results so far:

Company

Average Cost

Shares

Recent Price

Total Value

Return

Altria (NYSE: MO  ) $24.86 40 $29.72 $1,188.80 19.55%

Philip Morris (NYSE: PM  ) $61.83 17 $78.51 $1,334.67 26.00%

National Grid (NYSE: NGG  ) $45.63 22 $47.99 $1,055.78 5.17%

Annaly Capital Management (NYSE: NLY  ) $17.55 57 $16.11 $918.27 (8.21%)

Frontier Communications (NYSE: FTR  ) $8.71 149 $4.81 $716.69 (44.78%)

Southern (NYSE: SO  ) $37.87 26 $46.35 $1,205.10 22.39%

France Telecom (NYSE: ! FTE  ) $22.23 45 $15.31 $688.95 (31.13%)

Vodafone Group $28.69 38 $27.41 $1,041.58 (4.46%)

Eli Lilly $34.48 29 $41.30 $1,197.70 19.78%

Bristol-Myers Squibb $25.37 39 $35.06 $1,367.34 38.19%

Cash ? ? ? $46.51 0%

Dividends Receivable ? ? ? $81.55 0%

Total Portfolio ? ? ? $10,842.94 8.43%

Investment In SPY ? ? ? ? (3.32%)

Return vs. SPY (percentage points) ? ? ? ? +11.75
Source: S&P Capital IQ, as of Dec. 28.
Since my last report, the SPDR S&P 500 fell 0.35%. Our portfolio fell more than the market, with our outperformance moving from beating the market by 12.18 percentage points to an 11.75-point advantage. While outperformance is always good, it should be taken with a grain of salt. We're investing for the long term, and it's only been 10 months.
Movers and shakers
As usual of late, our largest mover the past week was Frontier Communications, which fell 5.7%.
Money!
There are still six upcoming dividends for the portfolio:

Frontier will pay a dividend of $0.1875 per share on Dec. 30. The ex-dividend date was Dec 7.

Nationa! l Grid w ill pay a dividend of $1.09 per share on Jan. 18. The ex-dividend date was Nov. 30.

Altria will pay a dividend of $0.41 per share on Jan. 10. The ex-dividend date was Dec. 22.

Philip Morris International will pay a dividend of $0.77 per share on Jan. 10. The ex-dividend date was Dec. 20.

Vodafone will pay a dividend of 0.705 pence (roughly $1.12; not included in Dividends Receivable as exchange rate won't be determined until Jan. 20) per share on Feb. 3. The ex-dividend date was Nov. 16.

Eli Lilly will pay a dividend of $0.49 per share on March 9. The ex-dividend date is Feb. 13.
My Foolish bottom line
I'm highly confident in this portfolio's ability to crush the market over the next decade, and that's why I put $10,000 of my personal cash into these stocks. My strategy is simple. I'm buying strong companies with outsized dividends, reinvesting those dividends, and holding them for the long run. Over the coming year, I'll track my performance, update you on when I'm going to reinvest all my dividends, and keep you abreast of news affecting these companies.
Consider the 10 companies above along with the 11 names from a brand-new free report from Motley Fool's expert analysts called "11 Rock-Solid Dividend Stocks." To get instant access to the names of these 11 dividend stocks, click here -- it's free.

Irregular Volume of TCF Financial Corporation - NYSE:TCB

2012-01-13T04:52:00.001-08:00

TCF Financial Corporation (NYSE:TCB) witnessed volume of 6.34 million shares during last trade however it holds an average trading capacity of 1.71 million shares. TCB last trade opened at $13.71 reached intraday low of $13.65 and went +5.29% up to close at $14.34.
TCB has a market capitalization $2.25 billion and an enterprise value at $5.98 billion. Trailing twelve months price to sales ratio of the stock was 2.26 while price to book ratio in most recent quarter was 1.32. In profitability ratios, net profit margin in past twelve months appeared at 14.28% whereas operating profit margin for the same period at 30.03%.
The company made a return on asset of 0.79% in past twelve months and return on equity of 9.39% for similar period. In the period of trailing 12 months it generated revenue amounted to $996.95 million gaining $7.04 revenue per share. Its year over year, quarterly growth of revenue was -1.50% holding -12.50% quarterly earnings growth.
According to preceding quarter balance sheet results, the company had $702.81 million cash in hand making cash per share at 4.48. The total of $4.55 billion debt was there putting and book value per share was 10.89.
Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 26.85% where the stock current price exhibited down beat from its 50 day moving average price of $14.49 and remained below from its 200 Day Moving Average price of $15.22.
TCB holds 156.88 million outstanding shares with 143.69 million floating shares where insider possessed 7.92% and institutions kept 78.80%.

Trends Change, Market Doesn’t: Stocks Flat Reaction

2012-01-12T23:39:00.001-08:00

Investors dealt their native risk aversion something of a blow in Thursday’s trading, changing the market’s operant dynamics after more thana week of hesitant impulses and muted losses. But judging from the reaction, it proved to be more a glancing blow than a haymaker, with market averages finishing within arm’s reach of their opening.
A scattering of the over-whelming characteristics of the last week’s selloff – the appetite for markets that represented safe havens such as Treasuries and the dollar, a decline in materials prices led by crude, a selloff in metals and a preference for predictably defensive equities categories such as health care and consumer products over raw materials and banks – all seemed to surrender a little of their recent cache.
In fact, Treasuries fell amid a rather disappointing auction of 30-year notes. Both the dollar and the yen gave a little ground. Crude prices edged higher for the first trading session in seven. Copper rose, ending a four-day losing streak. Merck (MRK) fell 4%, and Schering-Plough (SGP)lost 3%, after the drug makers canceled a trial of their cholesterol drugs.
Meanwhile, banking names gouged out modest gains, halting what had been the week’s retreat by the group. Goldman Sachs (GS)gained 3%, after Bank of America boosted its rating on the stock, saying it expected thebank topost record revenues from its trading operations this year. Citigroup (C), which unveiled another change in management, advanced3%.
Investors even had an affirmative reaction to the trickle of earnings that presented themselves in the session. Alcoa (AA)initially rose after recording second-quarter losses that didn’t prove as steep as analysts had forecast. However, the shares lost their gains by the close.
Overall, though, the changes in the fabric of the investment environment passed through the market the way ligth passe! s throug h glass. The S&P 500 Stock Index (GSPC), which came into the session perilously close to violating some criticaltechnical support levels,ended the trading day amere 3 points higher at 882, while the Dow Jones Industrial Average (DJI)moved just 4 points higher. Volume proved scanter than it has all week, and volatility crept lower. In all, anotably inconsequential way for the day to trade.

5 Best High-Yield Bond Funds

2012-01-12T18:29:00.000-08:00

The crisis in Europe and the fact that Bill Gross is underperforming (that’s underperforming) 92% of his peers means it’s a brave new world in the fixed income space. Questions of a bond bubble, which dominated headlines until recently, can definitively be put to rest.

But for investors willing to take on a “reasonable” amount of risk to offset income shortfalls would do well to look at high-yield bonds, according to Zacks Investor Research.

“This category generally represents corporate bonds with low ratings, often below investment grade,” Zacks writes. “A significant amount of risk is therefore associated with these investments and mutual funds are the best option to invest in these instruments. By investing in a well diversified portfolio of such securities they successfully lower the associated risk for the investor.”

Here are the five highest yield bond funds according to the research firm, which “earned a Zacks’ No 1. Rank (strong buy) as [it] expects these mutual funds to outperform their peers in the future.”

Federated High-Income Bond A (NASDAQ:FHIIX) seeks current income.

“The fund invests heavily in a wide range of high-yield corporate bonds with lower ratings,” Zacks writes. “The fund may also utilize synthetic instruments such as derivatives to fulfill its investment objectives. This high-yield mutual fund returned 5.44% over the last one year period.”

Mark Durbiano has managed this high-yield mutual fund since 1987.

Rydex High-Yield Strategy A (NASDAQ:RYHDX) invests in high-yield debt securities.

Zacks says the fund “may also invest in securities which as a whole mimic the performance of the U.S and Canadian high-yield bond markets. The high-yield mutual fund has a three-year annualized return of 11.42%.”

The fund is managed by Mike Byrum.

Value Line Aggressive Income (NASDAQ:VAGIX) seeks to maximize current income. The fund invests a large share of its assets in junk bonds, according to Zacks. The fund returned 4.37% over the last one-year period.

Jeffrey Geffen has managed the fund since 2010.

Vanguard High-Yield Corporate (NASDAQ:VWEHX) invests “the majority of its assets in corporate bonds assigned the lowest investment grade rating by a renowned bond rating agency.” The high-yield mutual fund has a five year annualized return of 6.5%.

The fund is sub-advised by Michael Hong of Wellington Management.

T. Rowe Price High-Yield (NASDAQ:PRHYX) invests a large proportion of its assets “in a wide range of high-yield corporate bonds, preferred stocks and convertible securities” according to Zacks. The high-yield mutual fund has a ten year annualized return of 8.08%.

The fund has been managed by Mark Vaselkiv since 1996.

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Button: Social video market could hit $100B in a decade

2012-01-12T13:22:00.001-08:00

While Europe might be mired in economic problems, a growing entrepreneurial community still exists. Just look at Scott Button. Based in the U.K., he sold ad-serving operator Connextra in 2006. That same year, he launched another company — Unruly Media — and currently serves as its CEO. Unruly Media recently snagged $25 million in funding, and I had a chance to interview Button about his entrepreneurial efforts:
Q: So, you bootstrapped the company?
A: Yes, I sold my prior company and invested about $500,000 in Unruly Media. This was deliberate because of the advantages of discipline and rigor. I also wanted to be independent and have the agility to experiment. But now with our funding, we can go into “execution mode” and max out. We��ll also benefit from the help of our investors, who have backgrounds in scaling companies.
Q: What was the vision when you started the company?
A: We knew that there would be an intersection of video and social sharing. So we built a platform called RAMP (Real-time Amplification and Measurement Platform), which helps to distribute and analyze social video campaigns. The system has a reach of 725 million people across 74 countries. We work primarily with large brands, such as Electronic Arts (NASDAQ:ERTS), adidas and Coca-Cola (NYSE:KO).
Q: What works when it comes to social videos?
A: Humor and shock videos can get lots of traffic, but they are hard to do. Instead, brands have a better success rate by focusing on content that has positive emotions. It��s the warm-and-fuzzy kind of videos.
Major brands are also starting to make the kinds of investments they typically do for national TV campaigns. But there is much more flexibility since the videos do not have to be 30 seconds long. A social video can be a short film.
!
Q: How big is the market opportunity for social videos?
A: We think it can be $100 billion. But it will take time. It could easily take a decade.
Q: What about the start-up environment in Europe?
A: There are ecosystems developing in London and Berlin. It is much more vibrant than, say, five years ago. A key has been a change in culture, such as with the investors, advisers and entrepreneurs. The debt crisis has had an impact, but it is mostly a change in sentiment from buoyancy to uncertainty. But it is not pessimistic.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of ��All About Short Selling�� and ��All About Commodities.�� Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.

Asian Equities Decline Amid Signs European Crisis Is Worsening

2012-01-12T02:59:00.001-08:00

Asian stocks (MXAP) retreated, snapping atwo-day rally, after Australia��s services industry shrank andthe euro weakened ahead of a French bond auction today of asmuch as 8 billion euros ($10.4 billion).
Sony Corp. (6759), a Japanese electronics maker that gets 21percent of its sales from Europe, fell 2.2 percent as a weakereuro cut the earnings outlook for exporters. Elpida Memory Inc.sank slumped 7.4 percent on a report the chipmaker is seekingfinancial support from other companies as it faces $1.6 billionin bond redemptions and loan payments. National Australia Bank (NAB)Ltd. led declines among Australian lenders on a report that thecountry��s services industry contracted in December.
��Problems sparked by the European debt crisis arereigniting,�� said Mitsushige Akino, who oversees about $600million in Tokyo at Ichiyoshi Investment Management Co. ��That��sweakening the euro and hurting exporters with a heavy relianceon Europe.��
The MSCI Asia Pacific Index dropped 0.8 percent to 115.6 asof 7:59 p.m. in Tokyo, with five stocks falling for every threethat rose. The measure climbed 2.4 percent in the first twotrading days of this year as manufacturing growth from the U.S.,Australia, China and India added to signs the global economy maywithstand Europe��s debt crisis.
Japan��s Nikkei 225 Stock Average (NKY) lost 0.8 percent andAustralia��s S&P/ASX 200 Index fell 1.1 percent. South Korea��sKospi Index fell 0.1 percent. China��s Shanghai Composite Indexslipped 1 percent. Hong Kong��s Hang Seng Index rose 0.5 percent.
��Disorderly Default��
Futures on the Standard & Poor��s 500 Index slipped 0.8percent today. The gauge closed little changed yesterday in NewYork, paring an earlier loss of as much as 0.7 percent, asimproving sales at retailers and carmakers helped offset lower-than-forecast factory orders.
Global stocks declined today as UniCredit SpA, Italy��slargest bank, said it will sell new shares in a 7.5 billion-euro($9.8 billion) offer to s! trengthe n its capital position andPrime Minister Lucas Papademos said Greece is at risk of a��disorderly default.��
��It reminds investors that there isn��t an easy solution toEurope��s problems,�� said Kiyoshi Ishigane, a senior strategistin Tokyo at Mitsubishi UFJ Asset Management Co., which overseethe equivalent of $84 billion. ��Euro weakness is having animpact on the market today.��
France plans to sell as much as 8 billion euros of debttoday. This year��s first test of investors�� appetite for thebonds comes amid warnings from credit companies France may loseits AAA rating.
Exporters Drop
Asian exporters declined as the euro dropped toward an 11-year low against the yen and fell to a four-month low againstthe won. A weaker euro cuts the value of European income atJapanese and South Korean companies when repatriated.
Sony dropped 2.2 percent to 1,373 yen. Canon Inc. (7751), a cameramaker that depends on Europe for almost a third of its sales,lost 1.2 percent to 3,390 yen. Samsung Electronics Co. (005930), theworld��s second-largest maker of mobile phones by sales, sank 2.3percent to 1.055 million won in Seoul.
The Asian benchmark index lost 17 percent in 2011 as Chinatook steps to cool its property market and Europe struggled toresolve its debt crisis. The Standard & Poor��s 500 Index brokeeven for the year and the Stoxx Europe 600 Index dropped 11percent. Stocks in the Asian gauge were valued at 12.2 timesestimated earnings (MXAP) on average as of yesterday, compared with12.1 times for the S&P 500 and 10 times for the Stoxx 600.
Elpida tumbled 7.4 percent to 350 yen in Tokyo, the biggestdecline on the MSCI Asia Pacific Index. (MXAP) The loss-makingchipmaker is seeking $500 million in financial support fromother companies as it faces $1.6 billion in bond redemptions andloan payments, the Yomiuri newspaper reported, without sayingwhere it got the information. Elpida declined to comment in ane-mail.
Services Contraction
Australian reta! ilers an d banks fell after the servicesindustry contracted for a third straight month. Harvey NormanHoldings Ltd., a seller of housewares and electronics, lost 1.1percent to A$1.86. National Australia Bank, the country��sfourth-largest lender by market value, dropped 1.9 percent toA$23.73. Australia & New Zealand Banking Group Ltd. (ANZ) lost 1.3percent to A$20.74.
TonenGeneral Sekiyu K.K. (5012) slumped 7.2 percent to 735 yen.Shares fell a second day after Reuters reported that parentExxon Mobil Corp. plans to sell most of its stake in theJapanese refiner. Talks about a reorganization are continuing,said Kosuke Kai, a Japan-based spokesman for Exxon.

Growth Ideas: 10 High Growth Stocks with Solid Profitability

2012-01-11T21:49:00.001-08:00

Forecasts for the global economy remain disjointed. While some analysts believe the markets are in store for a rebound, others only see doom and gloom. To be sure, there is no clear answer.
Considering the uncertainties and the potential for "doom and gloom," we wanted to explore growth stock ideas that could be used as a hedge against an economic slowdown.
To create the list below, we started with a universe of about 150 growth stocks. By this we mean all of the stocks mentioned below have seen their earnings per share grow by more than 20% over the last five years.
In addition, Wall Street analysts project rapid earnings growth over the next five years for these stocks.
The DuPont equation
Next, we collected data on profitability sources. One of analysts' favorite profitability tools is DuPont analysis -- it's a way to look at changes in return on equity (ROE) profitability (i.e., net income/equity) by attributing those changes to certain sources. Some of the sources are more sustainable than others, thereby giving an analysis of strength in increasing profitability.
DuPont analysis breaks up a company's ROE into three components: net margin, asset turnover, and leverage. Companies with increasing net margin, increasing asset turnover, and decreasing leverage are viewed favorably.
Companies passing all requirements are thus experiencing increasing profits due to operations and not to increased use of leverage.
The list
Do you think these companies have strong enough profitability to withstand whatever the market has in store?
List sorted by change in ROE. (Click here to access free, interactive tools to analyze these ideas.)
1. Constant Contact (Nasdaq: CTCT  ) : Provides on-demand email marketing, social media marketing, event marketing, and online survey solutions primarily in the United States. Market cap of $739.93M. The company's earnings per shar! e have g rown by 95.36% over the last five years, and Wall Street analysts project the company's earnings to grow by 40.6% over the next five years. MRQ Net Profit Margin increased to 9.84% from 6.56% year-over-year, Sales/Assets increased to 0.29 from 0.28, while Assets/Equity decreased to 1.32 from 1.36.
2. OYO Geospace (Nasdaq: OYOG  ) : Engages in designing and manufacturing instruments and equipments used in the acquisition and processing of seismic data; and in the characterization and monitoring of producing oil and gas reservoirs. Market cap of $550.86M. The company's earnings per share have grown by 39.11% over the last five years, and Wall Street analysts project the company's earnings to grow by 37% over the next five years. MRQ Net Profit Margin increased to 19.86% from 14.40% year-over-year, Sales/Assets increased to 0.23 from 0.22, while Assets/Equity decreased to 1.18 from 1.24.
3. CEVA (Nasdaq: CEVA  ) : CEVA and its subsidiaries engage in designing and licensing silicon intellectual property (SIP) for the handsets, portable multimedia, and consumer electronics markets. Market cap of $661.43M. The company's earnings per share have grown by 48.73% over the last five years, and Wall Street analysts project the company's earnings to grow by 29.59% over the next five years. MRQ Net Profit Margin increased to 33.20% from 28% year-over-year, Sales/Assets increased to 0.07 from 0.06, while Assets/Equity decreased to 1.09 from 1.11.
4. Questcor Pharmaceuticals (Nasdaq: QCOR  ) : Provides prescription drugs for central nervous system and inflammatory disorders. Market cap of $2.70B. The company's earnings per share have grown by 41.64% over the last five years, and Wall Street analysts project the company's earnings to grow by 42.25% over the next five years. MRQ Net Profit Margin increased to 38.20% from 36.84% year-over-y! ear, Sal es/Assets increased to 0.27 from 0.21, while Assets/Equity decreased to 1.27 from 1.32.
5. Rackspace Hosting (NYSE: RAX  ) : Operates in the hosting and cloud computing industry. Market cap of $5.66B. The company's earnings per share have grown by 26.3% over the last five years, and Wall Street analysts project the company's earnings to grow by 30.3% over the next five years. MRQ Net Profit Margin increased to 7.55% from 5.91% year-over-year, Sales/Assets increased to 0.27 from 0.26, while Assets/Equity decreased to 1.76 from 1.84.
6. DXP Enterprises (Nasdaq: DXPE  ) : Distributes maintenance, repair, and operating products (mro), equipment, and services to industrial customers in the U. Market cap of $423.28M. The company's earnings per share have grown by 22.78% over the last five years, and Wall Street analysts project the company's earnings to grow by 25.8% over the next five years. MRQ Net Profit Margin increased to 3.98% from 3.10% year-over-year, Sales/Assets increased to 0.61 from 0.56, while Assets/Equity decreased to 2.33 from 2.69.
7. AGCO (Nasdaq: AGCO  ) : Distributes agricultural equipment and related replacement parts worldwide. Market cap of $4.46B. The company's earnings per share have grown by 45.7% over the last five years, and Wall Street analysts project the company's earnings to grow by 21.73% over the next five years. MRQ Net Profit Margin increased to 4.02% from 3.76% year-over-year, Sales/Assets increased to 0.37 from 0.32, while Assets/Equity decreased to 2.01 from 2.07.
8. Gartner (NYSE: IT  ) : Provides independent and objective research and analysis on information technology (IT), computer hardware, software, communications, and related technology industries. Market cap of $3.58B. The company's earnings per share have grown by 20.87! % over t he last five years, and Wall Street analysts project the company's earnings to grow by 22.78% over the next five years. MRQ Net Profit Margin increased to 8.81% from 6.78% year-over-year, Sales/Assets increased to 0.27 from 0.24, while Assets/Equity decreased to 6.72 from 8.02.
9. OSI Systems (Nasdaq: OSIS  ) : Designs, manufactures, and sells specialized electronic systems and components for applications in homeland security, health care, defense, and aerospace markets worldwide. Market cap of $936.32M. The company's earnings per share have grown by 20.65% over the last five years, and Wall Street analysts project the company's earnings to grow by 24.83% over the next five years. MRQ Net Profit Margin increased to 2.95% from 2.64% year-over-year, Sales/Assets increased to 0.27 from 0.25, while Assets/Equity decreased to 1.54 from 1.56.
10. Standard Motor Products (NYSE: SMP  ) : Distributes replacement parts for motor vehicles in the automotive aftermarket industry primarily in the United States, Canada, and Latin America. Market cap of $453.96M. The company's earnings per share have grown by 28.03% over the last five years, and Wall Street analysts project the company's earnings to grow by 21.3% over the next five years. MRQ Net Profit Margin increased to 5.52% from 4.25% year-over-year, Sales/Assets increased to 0.45 from 0.41, while Assets/Equity decreased to 2.16 from 2.66.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

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! Kapi tall's Rebecca Lipman does not own any of the shares mentioned above. ROE data sourced from Google Finance. All other data sourced from Finviz.

24/7 Wall St. Closing Bell (T, FFIV, URBN, AMGN, BAX, CAG, GIS, NAV, SAFM, JEF, NKE, ORCL, TRGT, CIE, CSIQ, PBH, HOV, CVS)

2012-01-11T11:36:00.001-08:00

US equity markets opened sharply higher this morning and have been able to sustain and even add to those gains throughout the day. Business and consumer confidence indexes in Europe were higher, giving an early boost to share prices. Then an unexpectedly large jump in new housing starts, especially multi-family dwellings, put an extra charge into investors. Proposed Federal Reserve rules governing big banks have had little impact on financial stocks, which are up about 4% in the late afternoon. Today's auction of five-year Treasury went out at 0.880%, a record low yield. Crude oil is also sharply higher today, with WTI trading at $97.22/barrel, up more than 3.5%, and Brent is up 3.34% at $106.98. The US dollar has traded weaker all day today. Gold settled on the Comex up about 1.3%, at $1,616.80.
The unofficial closing bells put the DJIA up nearly 336 points to 12,101.92 (2.85%), the NASDAQ rose more than 80?points (3.19%) to 2,603.73, and the S&P 500 rose 2.98% or nearly 36 points to 1,241.22.
There were several analyst upgrades and downgrades today, including AT&T Inc. (NYSE: T) cut to ��neutral' at JPMorgan. Other ratings actions today include F5 Networks Inc. (NASDAQ: FFIV) cut from ��perform' to ��underperform' at Oppenheimer; Urban Outfitters Inc. (NASDAQ: URBN) raised from ��outperform' to ��Top Pick' at FBR Capital; Amgen Inc. (NASDAQ: AMGN) added to ��Strong Buy List' at Zacks; and Baxter International Inc. (NYSE: BAX) lowered from ��Top Pick List' to ��outperform' and target price lowered from $61 to $58 at RBC Capital Markets.
Here are today's post-earnings news reactions with prices during the last half-hour of trading: ConAgra Foods Inc. (NYSE: CAG) is up 4% at $26.18; General Mills Inc. is down about -1% at $39.19; Navistar International Corp. (NYSE: NAV) is up nearly 7% at $39.05; Sanderson Farms Inc. (NASDAQ: SAFM) is down -4% at $48.66; and Jefferies Group Inc. (NYSE: JEF) is up more than 22% at $14.46. After markets close today we get earnings from Nike Inc.! (NYSE: NKE) and Oracle Corp. (NASDAQ: ORCL). See our 360 coverage on Oracle here?and coverage of the ConAgra and General Mills reports here.
Other standouts from today include the following stocks:
Targacept Inc. (NASDAQ: TRGT) is down more than -35% at $5.01, after posting a new 52-week low of $4.92 earlier in the day. The pharmaceutical maker's anti-depressant drug, developed in conjunction with AstraZeneca plc (NYSE: AZN) has failed a late-stage trial.
Cobalt International Energy Inc. (NYSE: CIE) is up nearly 38% at $13.81. The oil & gas exploration company has signed a production-sharing agreement for a block offshore of Angola. Cobalt owns 40% of the project and is the operator.
Canadian Solar Inc. (NASDAQ: CSIQ) is up nearly 33% at $2.93. The solar panel maker has sold about 86 megawatts of generation to TransCanada Corp. (NYSE: TRP) for approximately $455 million.
Prestige Brand Holdings Inc. (NYSE: PBH) is up nearly 21% at $11.27. The drug and cleaning supplies company paid $660 million for a selection of nonprescription drugs from GlaxoSmithKline PLC (NYSE: GSK).
Hovnanian Enterprises Inc. (NYSE: HOV) is up more than 18% at $1.50. The home builder is riding the wave of good news about new housing starts.
CVS Caremark Corp. (NYSE: CVS) is up about 9% at $39.85, after posting a new 52-week high earlier of $39.86. The healthcare company raised fiscal year guidance and boosted its quarterly dividend by 30%, to $0.1625/share.
Stay tuned for Wednesday. The most widely anticipated report for tomorrow is due at 8:30 a.m. from the National Association of Realtors, which will be revising its new home sales data from 2007 forward. Lower sales of up to -13% are expected. Here are other noteworthy events on the schedule (all times Eastern):
7:00 a.m. – Mortgage Bankers Association purchase applications
10:30 a.m. – EIA weekly petroleum status report
1:00 p.m. – 7-year Treasury note auction
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Paul Ausick

(RIMM, MLNX, MJGCF, QBAK) Noticeable Stock by DrStockPick.com

2012-01-11T06:20:00.000-08:00

Research In Motion Limited (Nasdaq:RIMM) will host BlackBerry?? DevCon Americas (www.blackberrydevcon.com/americas) from October 18 to 20, 2011 in San Francisco, California. New and existing BlackBerry?? application developers will get an opportunity to interact and learn from RIM and community experts about the latest development technologies for the BlackBerry?? platform.
Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry?? solution in 1999.
Mellanox Technologies, Ltd. (Nasdaq:MLNX) announced that it will release financial results for its third quarter 2011 after the close of market on Wednesday, Oct. 26, 2011.
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet connectivity solutions and services for servers and storage.
MAJESTIC GOLD CORP (MJGCF.PK)
MAJESTIC GOLD CORP (MJGCF.PK) engages in the exploration and development of mineral properties in China. The company focuses on its gold project located in the prolific gold region of Song Jiagou in eastern Shandong Province. Majestic Gold Corp. is headquartered in Vancouver, Canada.
MAJESTIC GOLD CORP (MJGCF.PK) has arranged a $10,000,000 loan to advance its Song Jiagou project in China. Nine million dollars ($9,000,000) from the proceeds from the loan will be used by the Company to in connection with its Song Jiagou project and the balance of one million dollars ($1,000,000) for general working capital purposes.
The loan will have a one year term and loan principal will be convertible at the option of the lender in whole or in part into common shares (”Shares”) of the Company until twelve months from ! the date of the loan advance at the price of $0.205 per Share. The loan will bear interest at the rate of 7.5% per annum, payable on maturity, and accrued and unpaid interest will be convertible at the option of the lender in whole or in part into shares of the Company until twelve months from the date of the loan advance at Market Price at the time of conversion.
The lender is at arm’s length from the Company and will not become an insider as a result of any conversion of principal and interest. All shares issued on any conversion of loan principal or interest will be subject to a four month hold period from the date of advance of loan proceeds. The loan is subject to acceptance by the TSX Venture Exchange.
As additional consideration for the loan, the Company has agreed to forward at least $9 million to Majestic Yantai Gold Ltd., a British Virgin Islands company owned 94% by the Company to be used to further advance its Song Jiagou project. The Borrower has also agreed to a 90 day period for reciprocal due diligence reviews and discussions for the possible further involvement of the Lender in the Song Jiagou project.
In the event that no further agreement is reached between the Lender and the Company during the 90 day period, then the loan and a minimum of seven (7) months interest will automatically convert to shares in the Company at a price of $0.205 per share and the interest at Market Price respectively. In addition the Company is pleased to announce that it has arranged a non-brokered private placement of up to 15,000,000 shares to be issued at the price of $0.20 per share for gross proceeds of $3,000,000.
Gold is used in electronic equipment because it is easy to work with and can be drawn into thin wires or flat sheets. It does not corrode and conducts electricity better than any other metal. Finally, gold works even in temperature and humidity extremes.
For more information about MAJESTIC GOLD CORP. Visit its website: http://www.majesticgold.net
Qualst! ar Corp (Nasdaq:QBAK) announced a new model for its popular RLS family of rack mount tape libraries. The new RLS-8350 delivers the benefits and features of Qualstar’s recently introduced RLS-8500 Series in a compact, rack-optimized architecture. Shipments will begin in the fourth quarter of 2011.
Qualstar, founded in 1984, is a diversified electronics manufacturer specializing in data storage and power supplies.

3 Reasons I'm Not Buying Zynga

2012-01-11T01:38:00.001-08:00

Well, it appears that the Zynga (Nasdaq: ZNGA  ) IPO was a dud. After reaching $11.50 per share in early trading, the stock promptly sank below its $10.00 offering price, finally closing at $9.50. Some investors may see the failed IPO as an opportunity to get in on the biggest player in social gaming at a reasonable price, but I can think of three reasons why investors might want to stay away.
1. Virtual goods = virtual profits?
Back in October, The New York Times took a closer look at Zynga's financials and made a startling discovery. If not for a little bit of accounting sleight of hand, the company wouldn't have been profitable.
Before I explain the Times' findings, let me take a moment to explain Zynga's accounting methods. The company uses amortization to calculate revenue. Basically, if you pay $4.00 for a horse or whatnot for your virtual farm, the company will record the transaction under bookings. It will then take the dollar amount of the transaction and amortize it -- or divide it up -- over the course of what Zynga considers the useful life of the object to calculate the revenue.
The problem with this style of accounting is you can boost your revenue by shortening the amortization schedule, which appears to be what happened in Zynga's case. After the company announced that its bookings for the first half of the year had declined to $275 million from $287 million the previous year, it said that it had shortened the useful life of its goods from 14 months to 11 months. This move gave Zynga an extra $27 million in revenue and converted a second-quarter loss of a few million dollars into a small profit.
2. The CEO has total control
According to its S-1 filings, Zynga has three classes of shares. Class A common stock -- which is what you would buy -- has one vote per share. Class B common stock gets seven votes per share, and the Class C shares have an astou! nding 70 votes per share (only CEO Mark Pincus owns these). The class B and C shares hold 98.2% of the voting power, while Pincus alone holds 38.5%.
Now, having dual share classes isn't unprecedented. Both Linkedin (Nasdaq: LNKD  ) and Zillow (Nasdaq: Z  ) gave some shareholders 10 times the votes as IPO investors. However, Zynga's structure completely disenfranchises the average shareholder and all but assures that no matter what happens, Pincus will remain in control for as long as he likes.
I could almost be OK with this arrangement if Pincus was an innovative visionary like Steve Jobs, but he's not even close. As I've written before, Pincus doesn't appear to believe in innovation and has admitted to putting revenue generation ahead of customer satisfaction. Furthermore, if he's willing to put revenue ahead of the customers, then I have a hard time believing he'll act with the shareholders' best interests in mind.
3. This field's been over farmed
Most of all, I think Zynga's days of stellar growth are behind it. The company's total monthly active users remains around the same levels seen in the first quarter of 2010 and its bookings have remained flat for three quarters. It's possible that the flat growth was because the company didn't release a new game during the first three quarters of the year, but as it turns out, new games aren't really growth drivers. A recent report by the game-tracking service Raptr found that when Zynga releases a new game, 90% of its users will come from its old games.
In order to spark growth, the company will have to find a new audience, either by releasing a game that breaks from the EndlessTediumVille formula and attracts a new demographic, or moving onto new platforms like mobile gaming. I don't think either strategy will work because as the company freely admits, social and mobile gaming have low barriers to entry. In ad! dition t o major players like Electronic Arts (Nasdaq: ERTS  ) and Disney's (NYSE: DIS  ) Playdom, Zynga also has to fight smaller independent developers for Facebook's gamers.
I wouldn't hold out much hope for mobile either. Glu Mobile (Nasdaq: GLUU  ) , which relies on a similar free-to-play revenue model, has struggled to turn a profit. Again, Zynga has to contend with the same low barriers to entry and competition from larger and more experienced developers. With an anti-innovation CEO at the helm, I just don't think Zynga will be competitive in the long run.
Foolish takeaway
I consider any one of the issues I mentioned here a serious red flag. All three of them bundled into one company is an absolute deal breaker. As a result, I've given Zynga an underperform CAPScall. You can see this and my other picks here.
In the meantime, if you'd like to know about better opportunities to profit from the growing mobile market, then I invite you to check out this special report: "3 Hidden Winners of the iPhone, iPad, and Android Revolution." It's free, so click here to download it today.

Federal Reserve pays $77 billion to Treasury

2012-01-10T20:14:00.001-08:00

NEW YORK (CNNMoney) -- Ben Bernanke is about to hand Timothy Geithner a very large check.
The Federal Reserve announced Tuesday that it plans to pay the Treasury $76.9 billion, the bulk of the Fed's 2011 income after accounting for its own operating expenses.
Each year after paying its own bills, the central bank hands over all its remaining earnings to the Treasury, as per Fed policy. Most of the money is derived from interest earned on holdings like Treasury bonds and other debt.
The payments have ballooned in recent years as the Fed has earned huge profits from the large bond portfolio it amassed during the financial crisis. The Treasury payment topped out at $79.3 billion in 2010 and remains at historically high levels.
The Fed started stockpiling Treasuries, mortgage-backed securities and agency debt in 2008, in programs known as quantitative easing and QE2. As a result, the central bank now holds a massive $2.9 trillion on its books. The goal was for the asset purchases to bring down interest rates, stimulating more lending and borrowing in the U.S. economy.
The Fed ended 2011 with $78.9 billion in profit, mainly from interest it earned on those securities, as well as some income from foreign currency gains, the sale of services and the sale of some U.S. Treasuries.
The central bank, which is not funded by taxpayer dollars, had operating expenses of $3.4 billion.
It was also assessed $1.4 billion to fund new currency, Federal Reserve Board expenditures and the creation of both the Consumer Financial Protection Bureau and the Office of Financial Research, as required by Dodd-Frank legislation.

CES: Nvidia Shows 7-inch $249 Asus Tablet With ‘Ice Cream Sandwich’

2012-01-10T14:49:00.003-08:00

Nvidia’s (NVDA) CEO Jen-Hsun Huang is on stage for the company’s press day event here at the Consumer Electronics Show. Huang is talking about how Google’s (GOOG) latest release of its Android operating system is unifying all the gadgets out there — finally.
“We expect this to be a big shift in how people think of Android devices,” said Huang. He notes there are 250 million Android devices in use, growing by 750,000 activations a day.
Huang demoed Asus’s “Transformer” tablet/laptop, which shipped in November of last year and which was the first device to come out using the latest Nvidia “Tegra” processor, “Tegra 3.”
The Transformer is playing the “Tintin” movie. Then he moves to showing off a photo app called “Snapseed.” It’s the most popular iPad app, says Huang, and Nvidia has helped the company move the program over to Android.
He brings up the program’s developer onto the stage to demonstrate how to apply filters and effects to pictures. Pretty neat app, works strictly by dragging a finger across the screen to change parameters of the effects. Like using Adobe Photoshop from your couch, he says.
Snapseed is among a number of programs offered through Nvidia’s “Tegra Zone,” a Web site that highlights programs exploring the graphics technology. He shows off a nice demo of the water racing game “Riptide.”
Huang shows off another popular iPad app running on Android, “Splashtop,” a remote session controller/emulator for Windows PCs. The problem, says, Huang, is losing fidelity when working remotely. Tegra solved such performance problems, says Huang. He shows off tapping into the iTunes library on the remote PC. Pretty smooth scrolling as he st! eps thro ugh “Cover Flow” of the various albums.
Huang invites famed gamer Jonathan Wendell to the stage to play a round of “Skyrim” through the remote Splashtop session. Pretty amazing rendering of the graphics as Wendell battles the dragon.
Huang says that Nvidia has worked with Asustek to bring Google’s “Ice Cream Sandwich,” the latest version of Android, to the Transformer, which is available starting today.
Asus CEO Jerry Shen comes to the stage. Huang is lauding all Shen’s achievements, such as inventing the Netbook.
Huang asks Shen how to bring tablets to the budget price point.
Shen whips out a 7-inch tablet computer running Tegra 3 and Ice Cream Sandwich. Shen says the device will retail for just $249. Very loud applause from the audience for that.
Huang wants to talk about one more thing before leaving Android: Touch. The Tegra 3 will integrate the functions that had been the province of a standalone touch controller IC. It’s called “DirectTouch.”
Huang is moving on now to talk about using Tegra 3 for Windows.?
He brings up Microsoft (MSFT) Windows exec Aidan Marcuss. Marcuss notes that Tegra 3′s low-power mode facilitates the hibernate mode of Windows 8.?
Huang shifts to talk about cars using Tegra, including Tesla models, Lamborghini, and Audi. He teases the audience: “In a couple of days, we’re going to have something really special to announce with Audi.”

?	Mississippian Trust I	Mississippian Trust II	Permian
Royalty % -- Initial Wells	90%	80%	80%
Royalty % -- Development Wells	50%	70%	70%
No. of Initial Wells	37	67	509
No. of Expected Development Wells	123	206	888
Rese! rves Att ributable to Trust	19.3 MMBoe	26.1 MMBoe	21.8 MMBoe

Company	TTM Gross Margin	TTM Operating Margin	TTM Net Margin
St. Jude Medical	73.9%	25.3%	16.3%
Endologix (Nasdaq: ELGX )	77.8%	(16.4%)	(16.8%)
Volcano (Nasdaq: VOLC )	65.9%	6.0%	2.1%
C.R. Bard (NYSE: BCR )	62.3%	28.3%	12.2%

Three Months Ended September 30,			Fiscal Year Ended September 30,
(Unaudited) (in millions, except share and per share amounts)	2011	2010	% Change	2011	2010	% Change
Total operating revenues	$ 108.1	$ 65.9	64 %	$ 423.2	$ 269.0	57 %
Interest expense	2.2	2.4	(8)%	11.3	9.9	14 %
Net revenues	105.9	63.5	67 %	411.9	259.1	59 %
Compensation and benefits	47.0	31.2	51 %	176.6	104.2	69 %
Clearing and related expenses	19.0	16.5	15 %	77.4	68.2	13 %
Introducing broker commissions	6.3	4.8	31 %	24.0	18.9	27 %
Other non-interest expenses	20.6	15.7	31 %	74.4	49.9	49 %
Total non-interest expenses	92.9	68.2	36 %	352 .4	241.2	46 %
Income (loss) from continuing operations, before tax	13.0	(4.7)	(a)	59.5	17.9	232 %
Income tax expense (benefit)	5.4	(1.7)	(a)	22.5	6.4	252 %
Income (loss) from continuing operations	7.6	(3.0)	(a)	37.0	11.5	222 %
Income from discontinued operations, net of tax	–	1.3	(100)%	0.2	0.6	(67)%
Income (loss) before extraordinary loss	7.6	(1.7)	(a)	37.2	12.1	207 %
Extraordinary loss	–	(2.8)	(100)%	–	(7.0)	(100)%
Net income (loss)	7.6	(4.5)	(a)	37.2	5.1	629 %
Add: Net (income) loss attributable to noncontrolling interests	(0.1)	–	(a)	0.1	0.3	(67)%
Net income attributable to INTL FCStone Inc. common stockholders	$ 7.5	$ (4.5)	(a)	$ 37.3	$ 5.4	591 %

Earnings (loss) per share:
Basic
Income (loss) from continuing operations	$ 0.41	$ (0.18)	(a)	$ 2.06	$ 0.68	203 %
Income from discontinued operations	–	0.07	(100)%	0.01	0.03	(67)%
Extraordinary loss	–	(0.15)	(1 00)%	–	(0.40)	(100)%
Net income attributable to INTL FCStone Inc. common stockholders	$ 0.41	$ (0.26)	(a)	$ 2.07	$ 0.31	568 %

Diluted
Income (loss) from continuing operations	$ 0.39	$ (0.18)	(a)	$ 1.95	$ 0.66	195 %
Income from discontinued operations	–	0.07	(100)%	0.01	0.03	(67)%
Extraordinary loss	–	(0.15)	(100)%	–	(0.39)	(100)%
Net income (loss) attributable to INTL FCStone Inc. common stockholders	$ 0.39	$ (0.26)	(a)	$ 0.30	553 %

Weighted average number of common shares outstanding:
Basic	17,789,967	17,358,689	2 %	17,618,085	17,306,019	2 %
Diluted	18,696,536	17,358,689	8 %	18,567,454	17,883,233	4 %

Segmental operating revenues (non-GAAP) reconciliation:
Total operating revenues, as reported (GAAP)	$ 108.1	$ 65.9	64 %	$ 423.2	$ 269.0	57 %
Marked-to-market adjustment	(4.6)	10.8	(a)	(8.4)	6.0	(a)
Adjusted operating revenues (non-GAAP) (b)	$ 103.5	$ 76.7	35 %	$ 414.8	$ 275.0	51 %

Represented by:
Commodity and risk management services	$ 58.9	$ 41.0	44 %	$ 244.2	$ 135.8	80 %
Foreign exchange	17.5	11.7	50 %	59.3	47.5	25 %
Securities	7.3	6.2	18 %	30.5	20.8	47 %
Clearing and execution services	14.8	14.3	3 %	66.1	61.8	7 %
Other	5.1	2.1	143 %	14.3	61 %
Corporate unallocated	(0.1)	1.4	(a)	0.4	0.2	100 %
Adjusted operating revenues (non-GAAP) (b)	$ 103.5	$ 76.7	35 %	$ 414.8	$ 275.0	51 %

Net income attributable to INTL FCStone Inc. common stockholders
(non-GAAP) reconciliation:
Net income (loss) attributable to INTL FCStone Inc. common stockholders, as reported (GAAP)	$ 7.5	$ (4.5)	(a)	$ 37.3	$ 5.4	591 %
Exclude income from discontinued operations	–	(1.3)	100 %	(0.2)	(0.6)	67 %
Exclude extraordinary loss	– ;	2.8	100 %	–	7.0	100 %
Marked-to-market adjustment (non-GAAP)	(4.6)	10.8	(a)	(8.4)	6.0	(a)
Tax effect on marked-to-market adjustment at blended rate of 37.5% (non-GAAP)	1.8	(4.1)	(a)	3.2	(2.3)	(a)
Adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations (non-GAAP) (c)	$ 4.7	$ 3.7	27 %	$ 31.9	$ 15.5	106 %

Symbol	Company	Last	Chng.	%Chng.	Volume


C	Citigroup Inc	$4.72	+0.24	+5.34%	1,321,009,067


FNM	Fannie Mae	$1.21	+0.11	+9.99%	274,644,781


BAC	Bank Of America Corporation	$17.47	+0.33	+1.93%	213,386,761


SPY	SPDR S&P 500 ETF	$102.98	+1.99	+1.97%	184,778,279


FRE	Freddie Mac	$1.74	+0.14	+8.75%	160,423,597


XLF	Financial Select Sector SPDR ETF	$14.59	+0.32	+2.24%	86,878,077


GE	General Electric Co	$14.20	+0.39	+2.82%	81,388,267


EEM	iShares MSCI Emerging Markets Index ETF	$36.34	+0.57	+1.59%	63,395,350


PFE	Pfizer Inc	$16.64	+0.41	+2.53%	60,859,330


FAZ	Direxion Shs Etf Tr	$23.70	-1.68	-6.62%	57,121,889


F	Ford Motor Co	$7.74	+0.06	+0.78%	51,938,312


RF	Regions Financial Corp	$5.88	+0.39	+7.10%	49,275,374


LVS	Las Vegas Sands Corp	$14.00	+0.81	+6.14%	49,124,890


UYG	ProShares Ultra Financials ETF	$5.64	+0.24	+4.44%	47,957,690


AIG	American Intl Group Inc	$32.98	+0.68	+2.11%	47,882,754


UNG	United States Natural Gas ETF	$11.32	-0.19	-1.65%	45,021,144

Company	Average Cost	Shares	Recent Price	Total Value	Return
Altria (NYSE: MO )	$24.86	40	$29.72	$1,188.80	19.55%
Philip Morris (NYSE: PM )	$61.83	17	$78.51	$1,334.67	26.00%
National Grid (NYSE: NGG )	$45.63	22	$47.99	$1,055.78	5.17%
Annaly Capital Management (NYSE: NLY )	$17.55	57	$16.11	$918.27	(8.21%)
Frontier Communications (NYSE: FTR )	$8.71	149	$4.81	$716.69	(44.78%)
Southern (NYSE: SO )	$37.87	26	$46.35	$1,205.10	22.39%
France Telecom (NYSE: ! FTE )	$22.23	45	$15.31	$688.95	(31.13%)
Vodafone Group	$28.69	38	$27.41	$1,041.58	(4.46%)
Eli Lilly	$34.48	29	$41.30	$1,197.70	19.78%
Bristol-Myers Squibb	$25.37	39	$35.06	$1,367.34	38.19%
Cash	?	?	?	$46.51	0%
Dividends Receivable	?	?	?	$81.55	0%
Total Portfolio	?	?	?	$10,842.94	8.43%
Investment In SPY	?	?	?	?	(3.32%)
Return vs. SPY (percentage points)	?	?	?	?	+11.75