INVESTING IN INDIA

(MONEY Magazine) -- My great-grandfather left his little village in India more than a hundred years ago. When I visited it recently as part of a two-week reporting trip, I found that, except for the ubiquity of mobile devices, little had seemingly changed.

India is a land of contrasts and contradictions that make it difficult to assess as an investment opportunity. Hundreds of millions still live in villages, yet India is urbanizing faster than any nation except China: 45 Indian cities now have populations over 1 million. (The U.S. has nine.)

The economy has been growing at better than a 7% clip for years, more than double the global rate. Yet that might not be fast enough to reverse India's staggering poverty. More than half of the country's 1.2 billion people live on $2 a day or less.

The young and the restless

At the same time, India is getting richer. Over 50 million Indians have annual disposable incomes between $4,200 and $21,000, and this consumer class is expected to grow by a factor of 10 over the next decade or so.

India is also young: The median age is 26, and teens and young adults are digitally savvy and aspire to higher education. "We have the workforce for the world, not just for India," says Sam Pitroda, a famed telecom entrepreneur who advises the prime minister on infrastructure issues.

India is in the midst of a public building boom. The new airports are excellent, and the Delhi subway system is spectacular. Road construction has nearly doubled in the past few years, and the government wants to build faster. Yet corruption slows down everything. Simple transactions need layers of approval, providing opportunity for bribery that discourages foreign investment.

Among the hundreds of Indians I met from all walks of life, complaints about corruption and inefficiency were common. Still, there was also a sense of inevitability about the benefits that will come from a large, increasingly educated population.

"Unlike China," Pitroda says, "India's growth will be driven by domestic consumption."

Stocks for the long, long run

Does India belong in your portfolio? Yes, but you likely have enough exposure now through emerging-markets index funds (about 7% of assets are in India) and stocks of U.S. firms that do business there.

That said, I returned home convinced that by decade's end, India will be nearing economic greatness.

An aggressive, long-term investor should start buying during periods when stocks are falling. "India has four times the population of the U.S. but less than 10% of its per capita income," notes Jeremy Schwartz, director of research for WisdomTree, whose India Earnings (EPI) exchange-traded fund tracks 160 Indian stocks. "We think they're actually going to catch up over time."

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Detail You Should Understand Regarding Self Managed Super Funds Perth

When it comes to Self Managed Super Funds Perth, one of the main advantages is that you take control over your money. You’re the one that is able to decide on what to purchase, when to buy it and whether to hold or put up for sale. With Self Managed Super Funds Perth, you decide everything about whether or not to change the type of investments you have got, depending on what the stock market is doing. Also, certainly, for Self Managed Super Funds Perth the responsibility to make sure that everything of your fund remains compliant is your responsibility. That is to say, the buck stops with you.

Nonetheless, your SMSF specialist advisor will give you lots of help. Only because you are the trustee of your superannuation funds doesn’t mean that you will not need any support. In fact, support from the SMSF specialist advisor is going to be necessary when your fund should be to stay compliant as well as do what it’s intended to do; provide an income in your retirement.

The SMSF advice may offer you broking recommendation to make sure you are able to create a good portfolio of stock, or they might offer supplementary recommendation that is going to be helpful. As the rules for superannuation funds change on a regular basis, only a professional can keep up with and understand all of it.

Among the benefits of self-managed super funds Perth is that you will put aside so much money on tax over the time. Since, you are required to pay only fifteen percent tax for the contributions whereas the tax of the contributions to regular superannuation funds is more.

Self-managed super funds Perth is going to provide you assurance. It will be safe from insolvency and other legal claims. Hence, you can make sure that you can get earnings from your investment in your retirement. In addition, you can put aside money on fees a lot more than the normal super funds, when you cautiously pick your SMSF specialist.

Although, you can look after the SMSF by yourself, to ensure that everything complies with the laws, it can be a great way to search for support from SMSF accountants or other specialists in this field. In case you are familiar with investing in stock market or other investment approaches, you will want to receive advice from a stock broker which offer a full service.

This can guarantee that your SMSF make money. The SMSF accountants can be most likely the only most vital people to assist you in running your Self Managed Super Fund. Despite the fact that you make the decisions for your superannuation funds, you would be wise to look for the guidance of specialists to make sure your retirement requirements are met.

The most important aspect of SMSF is that you will be able to choose your investment. The SMSF specialist advisor also offers you recommendations about the approaches on investing by acquiring assets. They will be able to recommend you about the best time, that you should purchase or dispose those assets. Over the years, your asset’s value might increase. You are going to make revenue from selling your asset. And you never need to pay capital gain tax when you transfer the return to your complying pension fund. You can get guidance from expert by calling them today.

Jeremies Downey has been providing his service to many small businesses in Perth for more than fifteen years. Find out more from Self-Managed Super Funds Perth.

5 Companies That ‘Brought it Back’

If at first you don�t succeed … well, try doing what made you a success in the first place. “Bringin’ it Back” appears be the motto of an increasing number of companies — given the state of the economy, that�s not a surprise.

But going back to one�s roots is not easy and is no guarantee of success. Walt Disney�s (NYSE:DIS) ABC network just canceled �Charlie�s Angels,” which was one of the most iconic TV series of the 1970s — and should have been left there. And Sears Holdings‘ (NASDAQ:SHLD) Kmart brought back “blue-light specials” in 2009 after an 18-year absence, and that hasn’t done much to turn things around — while same-store sales rose 0.7% in 2010, Kmart�s same-store sales fell 1.7% in the first quarter and were flat in Q2.

Still, it’s difficult to ignore the temptation to retry something that worked before. MySpace’s new owners are trying to rekindle the once-explosive social network’s success, and heck, someone is even trying to bring back the DeLorean — a success as a pop culture icon thanks to “Back to the Future” but a business failure.

These five companies couldn’t resist and have either succeeded or are waiting for the payoff as they try to “bring it back”:

Wendy’s

The Wendy�s (NYSE:WEN) hamburger chain has struggled in the years since the 2002 death of founder Dave Thomas, who became a celebrity from his time as the company�s TV pitchman. When billionaire Nelson Peltz acquired the chain in 2008, Wendy’s stock had shed almost three-fourths of its 2012 value, and it dropped another 25% from that point through this year. To help revitalize the company, Wendy’s is invoking the name of its late founder.

Last month, Wendy’s rolled out its new burger, dubbed “Dave’s Hot and Juicy.” And while the burger’s moniker is a throwback to a much better time, the sandwich is a complete revamping of a decades-old recipe. Wendy�s sweated every detail of the burger, which features a bigger patty, buttered bun and extra cheese. USA TODAY even pointed out that the company consulted a �pickle chemist.� Whether the new burger will help boost Wendy�s bottom line is not clear.

    

Motorola

Back in the administration of George W. Bush, only the cool kids had a Motorola (NYSE:MMI) RAZR flip-phone. Millions of them were sold from 2004-07. Then, the RAZR faded into oblivion after Apple (NASDAQ:AAPL) introduced the iPhone in 2007, and Motorola eventually replaced it with its own smartphone, the Droid, in 2009.

This month, Motorola announced it would be bringing back the RAZR name and pairing it with the aforementioned Droid. The pairing of old and new will use Google�s (NASDAQ:GOOG) Android operating system and boast 1 GB of RAM and 16 GB of storage — and it will be made out of the takes-a-licking synthetic fiber Kevlar. So far, the verdict from experts is cautiously optimistic. Wired magazine noted, �With the solid performance, suite of accessories and fantastic industrial design, it’s only the somewhat unattractive interface that lets the Motorola Razr down.�

Gap

Casual clothing chain Gap Inc. (NYSE:GAP)’s namesake Gap stores have fallen on hard times.�North American same-store sales�are dropping this year and have fallen at least 5% in six of the last seven years. Gap has made numerous attempts to jolt the company back to life, including a logo change that lasted a week and, most recently, a clever but otherwise ineffective advertising campaign.

This month, Gap announced a two-pronged approach to finding its footing. The company will close 200 North American stores while opening 30 stores in China by next year. And the Gap also will go back to its roots — “high-quality jeans and casual clothes with an American aesthetic,” according to a Reuters report. The Gap hopes to build positive momentum behind its popular 1969 brand of jeans, bring back more bold colors and even simplify floor sets.

Volkswagen

The German automaker played the nostalgia game once, and now it’s doing it again — with a twist. In 1998, Volkswagen (PINK:VLKAY) introduced the �New Beetle,” whose design was inspired by the company�s best-selling �Bug� that was available in the U.S. from 1949 to 1979. The company sold 50,000, 80,000 and 80,000 more units in its first three years. However, the company’s annual number dwindled to less than 15,000 by 2009, and the Beetle was discontinued in 2010.

The 2012 Beetle will be the “new” New Beetle. Volkswagen promoted the vehicle in Super Bowl commercials and gave them away to members of the audience of the �Oprah Winfrey Show.� According to Auto Week, the Beetle is expected to sell 50,000 to 60,000 units in the U.S. annually. Some analysts expect the company to topple Toyota (NYSE:TM) as the world’s largest automaker

News Corp.

After News Corp.�s (NASDAQ:NWS) Fox network canceled �Family Guy�in 2002, the show developed a cult following. Reruns featuring the foul-mouthed Griffin family saw 1.9 million viewers, easily besting the rest of the programming on Cartoon Network’s late-night Adult Swim block of shows. And the first DVD volume of shows sold 1.6 million copies in 2003, making it the top TV DVD of the year, and the second volume sold another million copies.

Viewer love for “Family Guy” was so pronounced that Fox brought the show back after an unprecedented three-year hiatus. The show even poked fun of Fox, rattling off the 29 shows that had aired and been canceled during the interim. Since then, �Family Guy� has led or been among Fox’s top-rated shows.

As of this writing, Jonathan Berr does not own any shares of the aforementioned stocks. Follow him on Twitter at @Jdberr.

Top 15 Most Undervalued Biotech Stocks By Analyst Target Price

The following is a list of the most undervalued biotech stocks, when comparing the current price against the average analyst target price (used as a proxy for fair value).

Although this is a crude way to find undervalued companies, our goal is to give you a starting point for your own analysis.

Analysts seem to think these stocks are deeply undervalued--what do you think? Full details below.

1. PROLOR Biotech, Inc. (PBTH): Biotechnology Industry. Market cap of $329.66M. Price at time of writing $6.13 vs. target price of $8.5 (potential upside of 38.66%). The stock has had a good month, gaining 16.92%.

2. Lexicon Pharmaceuticals, Inc. (LXRX): Biotechnology Industry. Market cap of $621.24M. Price at time of writing $1.81 vs. target price of $2.5 (potential upside of 38.12%). The stock is a short squeeze candidate, with a short float at 6.26% (equivalent to 9.42 days of average volume). The stock has had a couple of great days, gaining 9.52% over the last week.

3. Dendreon Corp. (DNDN): Biotechnology Industry. Market cap of $5.66B. Price at time of writing $39.18 vs. target price of $52.81 (potential upside of 34.79%). The stock has had a good month, gaining 20.73%.

4. Human Genome Sciences Inc. (HGSI): Biotechnology Industry. Market cap of $5.22B. Price at time of writing $27.9 vs. target price of $35.0 (potential upside of 25.45%). The stock is a short squeeze candidate, with a short float at 9.61% (equivalent to 5.95 days of average volume). The stock has lost 16.04% over the last year.

5. Targacept, Inc. (TRGT): Biotechnology Industry. Market cap of $720.57M. Price at time of writing $25.31 vs. target price of $31.5 (potential upside of 24.46%). This is a risky stock that is significantly more volatile than the overall market (beta = 3.11). It's been a rough couple of days for the stock, losing 6.62% over the last week.

6. Sequenom Inc. (SQNM): Biotechnology Industry. Market cap of $531.26M. Price at time of writing $6.89 vs. target price of $8.5 (potential upside of 23.37%). Relatively low correlation to the market (beta = 0.3), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 16.57% (equivalent to 6.49 days of average volume). The stock has had a couple of great days, gaining 9.78% over the last week.

7. Cadence Pharmaceuticals Inc. (CADX): Biotechnology Industry. Market cap of $563.93M. Price at time of writing $8.89 vs. target price of $10.9 (potential upside of 22.61%). The stock is a short squeeze candidate, with a short float at 23.88% (equivalent to 35.03 days of average volume). The stock has lost 3.56% over the last year.

8. Savient Pharmaceuticals, Inc. (SVNT): Biotechnology Industry. Market cap of $747.68M. Price at time of writing $10.54 vs. target price of $12.89 (potential upside of 22.3%). The stock has recently rebounded, and is currently trading 5.7% above its SMA20 and 7.08% above its SMA50. However, the stock still trades -20.96% below its SMA200. The stock has lost 27.24% over the last year.

9. Onyx Pharmaceuticals Inc. (ONXX): Biotechnology Industry. Market cap of $2.17B. Price at time of writing $34.07 vs. target price of $41.6 (potential upside of 22.1%). The stock is a short squeeze candidate, with a short float at 6.74% (equivalent to 7.46 days of average volume). The stock has gained 15.76% over the last year.

10. Amylin Pharmaceuticals, Inc. (AMLN): Biotechnology Industry. Market cap of $1.60B. Price at time of writing $11.19 vs. target price of $13.65 (potential upside of 21.98%). The stock is a short squeeze candidate, with a short float at 7.01% (equivalent to 5.16 days of average volume). The stock has lost 53.36% over the last year.

11. Emergent BioSolutions, Inc. (EBS): Biotechnology Industry. Market cap of $869.12M. Price at time of writing $24.7 vs. target price of $30.0 (potential upside of 21.46%). The stock has gained 51.13% over the last year.

12. Xenoport, Inc. (XNPT): Biotechnology Industry. Market cap of $351.19M. Price at time of writing $9.77 vs. target price of $11.86 (potential upside of 21.39%). Exhibiting strong upside momentum--currently trading 49.4% above its SMA20, 39.62% above its SMA50, and 34.11% above its SMA200. The stock has had a couple of great days, gaining 67.96% over the last week.

13. Spectrum Pharmaceuticals, Inc. (SPPI): Biotechnology Industry. Market cap of $473.20M. Price at time of writing $9.0 vs. target price of $10.92 (potential upside of 21.33%). The stock is a short squeeze candidate, with a short float at 10.55% (equivalent to 5.55 days of average volume). The stock has had a good month, gaining 31.88%.

14. Incyte Corporation (INCY): Biotechnology Industry. Market cap of $2.03B. Price at time of writing $16.95 vs. target price of $20.54 (potential upside of 21.18%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.38). The stock is a short squeeze candidate, with a short float at 10.42% (equivalent to 10.37 days of average volume).

15. Amgen Inc. (AMGN): Biotechnology Industry. Market cap of $50.32B. Price at time of writing $53.93 vs. target price of $64.92 (potential upside of 20.38%). The stock has lost 11.38% over the last year.

*All data sourced from Finviz.

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

What to Expect from Smith & Wesson Holding

Smith & Wesson Holding (Nasdaq: SWHC  ) is expected to report Q2 earnings around Dec. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Smith & Wesson Holding's revenues will grow 47.5% and EPS will grow 2300.0%.

The average estimate for revenue is $136.1 million. On the bottom line, the average EPS estimate is $0.24.

Revenue details
Last quarter, Smith & Wesson Holding logged revenue of $136.0 million. GAAP reported sales were 48% higher than the prior-year quarter's $91.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.28. GAAP EPS of $0.26 for Q1 were much higher than the prior-year quarter's $0.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 37.7%, 760 basis points better than the prior-year quarter. Operating margin was 23.0%, 1,580 basis points better than the prior-year quarter. Net margin was 13.1%, 1,220 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $537.9 million. The average EPS estimate is $0.91.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 844 members out of 909 rating the stock outperform, and 65 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 197 give Smith & Wesson Holding a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Wesson Holding is outperform, with an average price target of $10.20.

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• Add Smith & Wesson Holding to My Watchlist.

Is Vicor Going to Burn You?

There's no foolproof way to know the future for Vicor (Nasdaq: VICR  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Vicor do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Vicor sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Vicor's latest average DSO stands at 52.5 days, and the end-of-quarter figure is 54.3 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Vicor look like it might miss its numbers in the next quarter or two?

The raw numbers suggest potential trouble ahead. For the last fully reported fiscal quarter, Vicor's year-over-year revenue shrank 9.6%, and its AR dropped 2.1%. That looks ok, but end-of-quarter DSO increased 8.2% over the prior-year quarter. It was up 13.5% versus the prior quarter. That demands a good explanation. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Vicor. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

• Add Vicor to My Watchlist.

Gas prices climb for 20th day

NEW YORK (CNNMoney) -- Gas prices continued their march toward $4 on Monday, rising for the 20th day in a row.

The nationwide average rose to $3.70 a gallon, up one cent from a day earlier, according to the motorist group AAA.

Only a month ago, the nationwide average was $3.41 a gallon.

Average prices for regular gasoline are more than $4 a gallon in California, Alaska and Hawaii. Gas prices are just shy of the $4 mark in New York, Connecticut, and Washington, D.C., according to AAA. The lowest average gas prices are in Wyoming and Colorado, where a gallon is going for less than $3.20.

Gas prices have been rising on the back of soaring oil prices, which have surged 10% over the past month amid fears that tensions with Iran will lead to an all-out war that causes a disruption in oil supplies.

Check gas prices in your state

Signs of an improving economy have also been boosting oil prices, along with the stock market, which has seen the S&P 500 (SPX) rise by more than 8% in 2012.

With gas prices soaring, politicians have been touting their plans to lower prices at the pump.

Newt Gingrich, struggling to regain momentum in the Republican presidential primary, is leading the way -- promising to get prices down to $2.50 per gallon.  

U.S. stocks have worst day of the year

MARKETWATCH FRONT PAGE

U.S. stocks make their biggest drop of the year Friday, quitting five weeks of gains for the S&P 500 and Nasdaq Composite, on worries that efforts to keep Greece from defaulting were falling apart. See full story.

5 stock pros confess their biggest market worries

Global money managers talk about their biggest concerns for 2012 and how they are shaping portfolios to protect against what�s lurking around the corner, namely Europe�s sovereign debt crisis and U.S. growth fears. See full story.

5 stock pros confess their biggest market worries

Global money managers talk about their biggest concerns for 2012 and how they are shaping portfolios to protect against what�s lurking around the corner, namely Europe�s sovereign debt crisis and U.S. growth fears. See full story.

Bernanke renews push for foreclosed rentals

Federal Reserve Chairman Ben Bernanke made a renewed push for programs to convert foreclosed homes into rental units as another mechanism to help revive the housing market. See full story.

The 4 record highs home building hit in 2011

Home builders manage to hit four record highs in 2011, a year in which housing starts and new-home sales set record lows. See full story.

MARKETWATCH COMMENTARY

Instead of acknowledging that banks have become a part of government, we keep pretending they are private institutions, writes David Weidner. See full story.

MARKETWATCH PERSONAL FINANCE

What�s the State of Retirement in the U.S.? It�s plagued with problems involving Social Security, contribution rates and more that need fixing now. See full story.

AAPL: USPTO Invalidation of ‘Pinch’ Patent a ‘Setback,’ Says Oppenheimer

Oppenheimer & Co.’s Ittai Kidron this morning reiterates an Outperform rating on shares of Apple (AAPL), while writing that �the news last night�that the�U.S. Patent and Trademark Office�rejected a second Apple patent at center of Apple�s $1.05 billion victory in August against�Samsung Electronics�(005930KS), the so-called �pinch-to-zoom� patent., number 7,844,915, is a “potential setback.”

That patent relates to the user interface technique that allows multiple finger touches to manipulate on-screen objects, as on Apple’s iPhone and iPad, and now plenty of other devices as well.

Not only is Samsung appealing the August jury verdict, and this could help them, but it makes it harder for Apple to pursue licensing, using the verdict as a weapon, argues Kidron:

Samsung’s appealing that decision, and if a key patent used in the case is no longer valid, Samsung�s case for overturning the decision, and the amount of the damages, is much stronger.�Having the �915 patent (and any others) invalidated also likely impacts Samsung�s (and other companies’) willingness to pursue a licensing agreement with Apple. Apple has been involved in several patent infringement cases with Android vendors (HTC, Motorola…), and while the results are mixed, it did use the courts to successfully push HTC to come to terms on a licensing agreement. We believe Samsung is unlikely to pursue a licensing agreement in the near term given Apple�s recent setbacks with the USPTO.

“Clearly,” writes Kidron, “this IP battle isn’t over. Although the verdict should put pressure on Apple’s shares, “We still believe the shares are overextended to the downside and embed too much pessimism regarding headwinds and execution,” he concludes.

“We would buy on weakness.”

Apple shares today are indeed weak, falling $2.16, or 0.4%, to $524.15.

Fewer Workers: A Drag On U.S. Growth

The March non-farm payroll report left investors disappointed by the low level of job creation. Yet the number in the report that may prove the most relevant over the long-term was largely ignored - the proportion of the U.S. population currently in the labor force, a number now at 63.8% and close to a 30-year low.

Over the long term, a country’s economic growth is determined by the rate of increase in the labor force and productivity growth. If fewer people are working, unless there is a surge in new workers or everyone suddenly become more productive, growth slows. This is exactly what has happened over the past dozen or so years in the United States. And to the extent that an aging population continues to retire, lower labor force participation may be an even bigger drag on growth in the future.

Since the onset of the recession in 2008, labor force participation in the United States has dropped by more than 2 percentage points. As the chart below shows, looking further back, since peaking in the late 1990s, the percentage of workers has dropped by 3.4 percentage points, meaning millions of individuals are no longer engaging in regular work.

(click to enlarge)

The decline in the participation rate has coincided with the longer-term deceleration in U.S. growth. Back in the late 1990s, when the participation rate was at its peak, the economy was growing more than twice as fast as recent levels. Between 1996 and 2000, real U.S. gross domestic product growth averaged 4.3%. Since then, GDP growth has averaged a relatively limp 1.6%, with growth never topping 3.5% for any given year. While there are a number of factors that help explain the declining growth rate - including slower productivity growth, slower population growth and the aftermath of the financial crisis - fewer people working is arguably contributing to the slowdown.

So what should investors expect going forward? Since the decline in the participation rate began well ahead of the financial crisis and has coincided with the general aging of the population, I believe the participation rate drop likely has more to do with demographics than with frustrated job seekers leaving the work force.

And with the graying of the U.S. population set to accelerate, and more baby boomers set to retire, the downward trend in labor force participation is likely to continue. This suggests that U.S. growth might be slower for a long time and that investors should have modest expectations for how fast the United States, and other developed markets also experiencing a similar demographic trend, can grow over the long term. It’s also an argument in favor of increasing allocation to select faster growing emerging markets.

Original post

Jobless claims fall again

NEW YORK (CNNMoney) -- The number of people filing for unemployment benefits fell last week, pointing to continued job growth in March.

The Labor Department reported that 357,000 people filed for their first week of jobless claims, falling roughly in line with economists' expectations. That marks a decrease of 6,000 initial claims from the week before.

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Amid the worst of the recession in 2009, Americans at one point filed as many as 659,000 claims in one week. Since then, the job market has come a long way, albeit gradually.

Initial claims are now near levels not seen since April 2008, a sign that layoffs are slowing and hiring is picking up.

"Initial claims continue to head in one direction and that's what makes it beautiful," said Jennifer Lee, a senior economist with BMO Capital Markets.

Weekly jobless claims can be volatile, so economists often prefer to look at the average number of claims over a four-week period. That figure also fell.

Meanwhile, about 3.3 million people filed for their second week of unemployment benefits or more in the week ended March 24, the most recent data available. That's marks the lowest since August 2008.

Unemployment rate: How low can it go?

The downward trend in unemployment filings raises hopes that employers continued hiring at a strong pace in March. The Labor Department is scheduled to release the latest update on job growth and the unemployment rate on Friday morning.

Economists surveyed by CNNMoney expect that report to show employers added 200,000 jobs in March and the unemployment rate fell to 8.2%.

In February, the economy added 227,000 jobs. 

Top Stocks For 2011-12-26-9

 

SAN DIEGO, Oct. 13, 2011 (crwenewsNEWSWIRE) — MediciNova Inc., a biopharmaceutical company publicly traded on the NASDAQ Global Market (Nasdaq:MNOV) and the Jasdaq Market of the Osaka Securities Exchange (4875), announced that Kissei Pharmaceutical Co. Ltd., a pharmaceutical company traded on the Tokyo Stock Exchange (4547), will pay MediciNova $2.5 million, within 30 days, to support further clinical development of MN-221 for the treatment of acute exacerbations of asthma or chronic obstructive pulmonary disease (COPD).

MediciNova is developing MN-221 for acute exacerbations of asthma and COPD in the United States. Under the terms of the 2004 license agreement, MediciNova and Kissei share all data and associated know-how of the MN-221 development program.

“This financial support allows MediciNova to expand the clinical development of the MN-221 program in asthma as well as to further clinical development in COPD,” said Yuichi Iwaki M.D., Ph.D., chief executive officer of MediciNova, Inc.

Conference Call/Webcast Information

MediciNova will host a conference call and audio webcast to give a brief business update presentation followed by a question and answer session with members of management. Management on the call will include Dr. Yuichi Iwaki, the President and Chief Executive Officer, Michael Coffee, the Chief Business Officer, and Dr. Kirk Johnson, the Chief Scientific Officer. The call is scheduled for Monday, October 17th, at 4:30 P.M. (EDT).

To participate in this call, dial 866-730-5769 (domestic), 857-350-1593 (international), passcode: 80015480, shortly before 4:30 P.M. (EDT). For a limited period following the call, a replay of the call will be available, beginning at 7:30 P.M. (EDT); the replay can be accessed by calling 888-286-8010 (domestic), 617-801-6888 (international), passcode: 80745214. The audio webcast will be available on MediciNova’s investor relations website (http://investors.medicinova.com) for approximately 60 days following the call.

About MN-221

MN-221 is a novel, highly selective, beta(2)-adrenergic receptor agonist in development as an intravenous treatment for acute exacerbations of asthma and chronic obstructive pulmonary disease (COPD) exacerbations. Preclinical testing in vitro and in vivo shows MN-221 to be more selective for the beta(2)-adrenergic receptor than other beta(2)-adrenergic receptor agonists commonly used for acute exacerbations of asthma. This improved selectivity, coupled with its partial agonist activity at beta(1)-adrenergic receptors, may yield bronchodilation without harmful cardiovascular side effects that are commonly observed with other agents. MediciNova has completed several Phase 1 and 2a trials, and is currently conducting a Phase 2b study in patients with acute exacerbations of asthma. MN-221 demonstrated significant improvements in FEV1 in all asthma trials as well as a 45% decrease in the hospitalization rate when added to current standard of care in a Phase 2a study of acute asthma patients in the emergency room. MediciNova also completed a Phase 1b clinical study of MN-221 in patients with stable, moderate to severe COPD in which MN-221 demonstrated clinically significant improvements in FEV1 with no clinically relevant safety concerns.

About MediciNova

MediciNova, Inc. is a publicly-traded biopharmaceutical company founded upon acquiring and developing novel, small-molecule therapeutics for the treatment of serious diseases with a commercial focus on the U.S. market. Through strategic alliances primarily with Japanese pharmaceutical companies, MediciNova holds rights to a diversified portfolio of clinical and preclinical product candidates, each of which MediciNova believes has a well-characterized and differentiated therapeutic profile, attractive commercial potential, and patent assets having claims of commercially adequate scope. MediciNova’s pipeline includes six clinical-stage compounds for the treatment of acute exacerbations of asthma, chronic obstructive pulmonary disease exacerbations, multiple sclerosis and other neurologic conditions, asthma, interstitial cystitis, solid tumor cancers, Generalized Anxiety Disorder, preterm labor and urinary incontinence and two preclinical-stage compounds for the treatment of thrombotic disorders. MediciNova’s current strategy is to focus on its two prioritized product candidates, MN-221 for the treatment of acute exacerbations of asthma and chronic obstructive pulmonary disease exacerbations and ibudilast (MN-166/AV411) for the treatment of multiple sclerosis, chronic pain, spinal cord injury, or drug addiction. Each drug candidate is involved in clinical development under U.S. and Investigator INDs and MediciNova is engaged in strategic partnering discussions to support further development of the MN-221 and ibudilast programs. Additionally, MediciNova will seek to monetize its other pipeline candidates. For more information on MediciNova, Inc., please visit www.medicinova.com.

About Kissei Pharmaceutical Co., Ltd.

Kissei Pharmaceutical Co., Ltd. was founded in 1946 and has grown into one of Japan’s leading pharmaceutical companies. Kissei’s management vision is to be an R&D-oriented pharmaceutical company that contributes to the health of people around the world through developing and offering innovative drugs. Kissei is actively pursuing collaborations with many companies to strengthen its R&D pipeline and also promoting global expansion by licensing out the original agents as an important management strategy.

Statements in this press release that are not historical in nature constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the expectation that Kissei will make the $2.5 million payment and statements regarding development and partnering strategy. These forward-looking statements may be preceded by, followed by or otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “can,” “could,” “may,” “will,” “would,” or similar expressions. These forward-looking statements involve a number of risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results or events to differ materially from those expressed or implied by these forward-looking statements, include, but are not limited to, the risks and uncertainties relating to receiving the $2.5 million payment from Kissei, risks inherent in clinical trials, product development and commercialization, such as the uncertainty in results of clinical trials for product candidates, the uncertainty of whether the results of clinical trials will be predictive of results in later stages of product development, the risk of delays or failure to obtain or maintain regulatory approval, risks regarding intellectual property rights in product candidates and the ability to defend and enforce such intellectual property rights, the risk of failure of the third parties upon whom MediciNova relies to conduct its clinical trials and manufacture its product candidates to perform as expected, the risk of increased cost and delays due to delays in the commencement, enrollment, completion or analysis of clinical trials or significant issues regarding the adequacy of clinical trial designs or the execution of clinical trials and the timing, cost and design of future clinical trials and research activities, the timing of expected filings with the regulatory authorities, MediciNova’s collaborations with third parties, the availability of funds to complete product development plans and MediciNova’s ability to raise sufficient capital when needed, and the other risks and uncertainties described in MediciNova’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2010 and its subsequent periodic reports on Forms 10-Q and 8-K. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof. MediciNova disclaims any intent or obligation to revise or update these forward-looking statements.

Source: MediciNova, Inc.

Contact:

MediciNova, Inc.
Mark Johnson, Investor Relations
(858) 373-1300
info@medicinova.com

 

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

Semiconductor ETFs: Back on Track

As recession gripped the global economy in 2008, nearly all sectors and regions took a hit. But as is usually the case, not all areas were impacted equally, as certain corners of the market delivered much worse results than others. Now, those industries that were hit the hardest on the way down have become the biggest gainers during the subsequent recovery, further proving the wisdom of the Buffett mantra “be fearful when others are greedy and greedy when others are fearful.”

Semiconductor companies took it on the chin on the way down, as consumers slashed discretionary spending and businesses began aggressively delaying any expenses that could be pushed off until the economic clouds cleared. But it now appears that the industry has emerged from the downturn, perhaps poised to surge in 2010.

The Semiconductor Industry Association reported that global sales rose 3.7% in November, marking the ninth consecutive monthly uptick in demand. The $22.6 billion for the month represented an 8.5% increase from November 2008. SIA president George Scalise attributed the turnaround to the launch of the Windows 7 operating system and strong demand for LCD televisions, noting that cell phone sales are coming in at roughly the same level as last year.

The Americas experienced the biggest year-over-year increase (26%), while Asia-Pacific grew by 13%. The Asia-Pacific region now accounts for slightly more than half of global chip sales.

2010 Outlook

Despite delivering some of the most impressive returns of 2009, many semiconductor ETFs remain well below pre-recession levels. But a continued rise towards previous highs is far from certain. The SIA is predicting that full-year 2009 sales will come in about 12% below 2008, making it one of the worst years on record for the industry. Global sales are expected to grow by about 10% in 2010 and another 8% in 2011, gradually clawing back to pre-2008 levels.

The industry’s performance in 2010 will likely be linked to demand for high-tech gadgets, which now account for a larger portion of the total market than they did in previous years. “PCs and wireless phones now account for approximately 60% of demand for semiconductors, and those products are expected to drive increased sales in the new year,” writes Jeff Dorsch. “Apple and Google already have scheduled highly anticipated press conferences in January — Apple to introduce a widely rumored tablet computer and Google to unveil its own phone design using Android.”

But there’s another, far less sexier side to the semiconductor industry that will be just as important to the industry. Businesses have aggressive in slashing tech budgets, meaning that the “tech refresh cycle” that traditionally provided a somewhat regular stream of income has been put off for longer than could have reasonably been expected. And while aging equipment must be replaced at some point, gauging the size of the next wave is challenging. Some seven million jobs have been lost since the recession began, which translates into much smaller infrastructure needs for a lot of companies. So while businesses may begin to loosen the purse strings this year, spending on semiconductor-intensive products won’t fully recover for a long time.

Semiconductor ETFs In Focus

ETF investors looking to gain exposure to the semiconductor industry, there are a handful of options, reflecting the granularity of an increasingly-developed ETF industry. While these funds are similar from a high level, there are some significant discrepancies between components, expenses, and strategies. For more head-to-head comparisons of ETF options, sign up for our free ETF newsletter.

• Merrill Lynch Semiconductors HOLRDS (SMH): Like most HOLDRs products, SMH is concentrated in only a handful of stocks (18 to be exact). More than half of this fund’s holdings are in Intel Corporation, Texas Instruments, and Applied Materials.

• SPDR S&P Semiconductor ETF (XSD): This ETF was one of the best performers in 2009, gaining nearly 100% despite huge cuts in production and layoffs by semiconductor firms. Although it invests in only 27 stocks, XSD offers significantly more depth of exposure than SMH because it is linked to an equal-weighted index. No one company accounts for more than 5% of XSD. This ETF features an expense ratio of 0.35%.

• PowerShares Dynamic Semiconductors Portfolio (PSI): This ETF is designed to track the Dynamic Semiconductors Intellidex, a benchmark that evaluates potential components on a variety of investment criteria, including fundamental growth, stock valuation, and investment timeliness (see more on “intelligent” indexing in this special feature). PSI charges an expense ratio of 0.60%.

Disclosure: No positions at time of writing.

Nvidia Rising: Reasons For Tegra Optimism And Skepticism

Shares of chip maker Nvidia (NVDA) are up 33 cents, or 2%, at $14.80 after a report of better-than-expected fiscal Q3 revenue and earnings last night, and a forecast for revenue to match estimates this quarter.

As in prior quarters, the focus today seems to be less on the graphics processing unit (GPU) business that is the traditional focus of the company, and more on the “Tegra” application processor that the company is selling for tablets and smartphones. CEO Jen-Hsun Huang last night told analysts the company had been caught flat-footed by Amazon.com’s (AMZN) introduction of a tablet computer based on Google’s (GOOG) “Android” software, and so the company had missed getting that contract.

But in a call I had with Huang following the report, he said “we’re calling on them,” meaning Amazon, saying that he had put a whole team of people on the Amazon account to try and win future business.

Today, analysts tossed the Tegra matter back and forth along with the rest of the report:

Hans Mosesmann, Raymond James: Reiterates a Strong Buy rating, while cutting his price target to $28 from $40 to reflect a lower fiscal ’13 EPS estimate. Mosesmann cut his fiscal 2012, that is, the year ending in January, estimate for revenue to $4.11 billion from $4.15 billion, while maintaining a $1.02 EPS estimate. For 2013, his estimate goes from $4.9 billion to $4.7 billion, to “reflect a more realistic consumer spending environment,” and his EPS estimate goes from $1.62 to $1.33, more or less in line with consensus now, to reflect higher operating expenses. He liked the “lean inventories” in the quarter and the company’s ability to avoid the worst effects of the looming hard-drive shortage in the PC industry, and design win “momentum” for Tegra 3. “As usual, there appeared to be confusion on the call related to Tegra (up over 10% q/q) given what we suspect is a cognitive bias against NVIDIA, which is now the dominant non-Apple tablet vendor (two-thirds of non-Apple market) and emerging player in smartphones. Basically, the quad-core Tegra3 has much more design win traction vs. Tegra2 last year, and management still expects ~$1 billion in sales from Tegra in calendar 2012.�In our view, the most intriguing part of the call was the commentary on the Denver 64-bit project. NVIDIA seeks to expand the ARM architecture beyond where ARM would likely not go itself. So, NVIDIA is not just playing around the edges of Intel’s core computing markets as some are doing in data center. NVIDIA is going straight at them.” Mosesmann notes, too, that GPU design wins for laptops based on Intel’s (INTC) “Ivy Bridge” processor are proceeding more quickly than they did for the prior roll-out, “Sandy Bridge.”

Romit Shah, Nomura Equity Research: Reiterates a Neutral rating on the shares, but raises his price target to $16 from $15. The “bear case on Nvidia is weakening,” he thinks, as the company “executed well in a tough environment [�] despite share loss and a product cycle transition in mobile, Tegra sales are holding firm in the January quarter.”

Daniel Berenbaum, MKM Partners: Maintains a Neutral rating and a “fair value estimate” of $13. Despite the headline beat, the commentary on the call following the report regarding Tegra was “mixed,” he writes. “NVDA lost a key customer (MMI) and the design win in AMZN�s Kindle Fire to TXN�s OMAP product, and NVDA is notably absent from many newer high- end smartphones � to us, this is further confirmation that the ARM-based apps processor market is over-crowded. Combined with what we see as slowing growth in the core graphics business (despite management commentary and some recent evidence that GPU attach rates have held steady), we expect continued multiple compression.” Berenbaum also doesn’t believe the market for PC-based video game graphics is as big a deal as management contends. Berenbaum cut his estimate for fiscal 2013 to $4.5 billion from $4.8 billion, and cut his EPS estimate to $1.11 from $1.24.

Apple: CDMA iPhone Production To Start Next Qtr, Analyst Says

Apple (AAPL) has lined up production of the long-awaited CDMA iPhone to begin early in the December quarter, according to Susquehanna Financial analyst Jeff Fidicaro. If he’s right, production could begin as soon as the next few weeks.

The analyst, who attributes the information to checks with the company’s supply chain, says production of the new phone is estimated at 3 million units for the December quarter, with total production of 20 million to 21 million units for iPhones overall. That’s up about 5% from expectations a month ago, he writes.

Meanwhile, Fidicaro also says iPhone production for the September quarter is now expected to be 18.2 million to 18.4 million, up from 18 million, and “well above investor expectations,” as supply constraints from supplier LG Display “appear to be resolved.”

Fidicaro maintains his Positive rating and $365 target on the stock.

AAPL is up $3.58, or 1.3%, to $287.35, yet another all-time peak.

For the month to date, AAPL shares have gained more than 18%.

RIMM Halted, Jumps 9%: FYQ3 Rev, EPS Beat, Subscriber Count to 79M

Research in Motion (RIMM) shares were halted this afternoon just before the company reported fiscal Q3 revenue and earnings per share that beat analysts’ expectations.

Revenue in the three months ended in November fell 47%, year over year, and fell 5%, quarter over quarter, to $2.7 billion, yielding a net loss of 22 cents.

Analysts had been modeling $2.65 billion and a 35-cent loss per share.

The company shipped 6.9 million BlackBerrys and 255,000 of its PlayBook tablet computers.

Subscriber count in the quarter was down from the prior quarter at 79 million versus 80 million in fiscal Q2.

Gross margin in the quarter rose from the prior quarter’s 26% to 30.4%, which is likely to come as a surprise to many on the Street, as the average estimates had hovered around 27%, based on reports I’ve seen this week.

RIM ended the quarter with $2.9 billion in cash and equivalents, up $600 million.

CEO Thorsten Heins remarked, “”RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10.”

Heins noted RIM

Continued to demonstrate our strong financial position, generating $950 million in cash flow from operations, and increasing our cash position significantly to more than $2.9 billion. More than 150 carriers are currently completing technical acceptance programs for the first BlackBerry 10 products, and beta trials of BlackBerry Enterprise Service 10 are underway at more than 120 enterprises including 64 Fortune 500 companies. This is an exciting time and our carrier partners, application developers and employees are all looking forward to unveiling the innovation and excitement of BlackBerry 10 to our customers on January 30, 2013.

RIM said that BB10 debut in January may delay purchases of BlackBerry, prompting an operating loss this quarter amidst continued pressure on prices in the smartphone market:

The Company expects that there will be continued pressure on operating results as it gets set to launch its BlackBerry 10 platform in the fourth quarter. The Company intends to continue to consider using pricing initiatives on BlackBerry 7 devices and service fees in some markets as a way to maintain our subscriber base and drive more BlackBerry users. The timing of the BlackBerry 10 launch event for January 30, 2013 could also impact sales of current BlackBerry 7 products as some customers may defer purchasing decisions and wait for BlackBerry 10 devices. All these factors are expected to impact unit volumes, subscribers, margins and service fees. In addition, the company will be significantly increasing its marketing spending this quarter as expected, to support the global launch of BlackBerry 10, and the Company expects to report an operating loss for the fourth quarter.

Chief information officer Robin Bienfait will retire at the end of the year, RIM said.

RIMM stock is up 6 cents, or 0.4%, at $14.18 in late trading before the stock halt. Shares are expected to resume trading at 4:40 pm, Eastern.

RIM management will host a conference call with analysts at 5 pm, Eastern time, and you can catch the webcast of it here.

Update:�RIMM shares have resumed trading and are up $1.26, or 9%, at $15.38.

 

Akamai: The Stock Is Now Overvalued, S&P Analyst Contends

Standard & Poor’s analyst Scott Kessler today cut his rating on Akamai (AKAM) to Sell from Hold, after a 43% rally in the stock over the last 7 weeks. He contends the stock is now overvalued. “AKAM has appealing businesses and assets, but we note its recent expensive efforts to expand capabilities and add to its management team,” he writes. “Although we believe such investments make sense, they make nearer-term execution more challenging, in our view. Moreover, the recent stock appreciation and premium valuation multiples strongly suggest to us that expectations are quite elevated.”

He keeps his $40 target price.

AKAM is down $2.25, or 4.3%, to $50.16.

Is Trinity Industries Going to Burn You?

There's no foolproof way to know the future for Trinity Industries (NYSE: TRN  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Trinity Industries do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Trinity Industries sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Trinity Industries's latest average DSO stands at 37.2 days, and the end-of-quarter figure is 41.6 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Trinity Industries look like it might miss its numbers in the next quarter or two?

Investors should watch the top line carefully during the next quarter or two. For the last fully reported fiscal quarter, Trinity Industries's year-over-year revenue grew 18.5%, and its AR grew 33.5%. That's a yellow flag. End-of-quarter DSO increased 12.6% over the prior-year quarter. It was up 40.2% versus the prior quarter. That demands a good explanation. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

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Hulu Plus Unveiled; $9.99 A Month

As had been widely expected, Hulu today announced a pay version of the Web video site, called Hulu Plus. The service will be $9.99 a month, and will include versions for the iPhone, iPad and Samsung Internet-connected televisions, as well as via PCs.

In a blog post, the company said that Hulu Plus is “a new, revolutionary ad-supported subscription product that is incremental and complementary to the existing Hulu service.” The new service will include a full season’s worth of episodes for the shows already includes on the service, including programming from ABC, NBC and Fox.

The service includes the full runs of past shows, including all nine seasons of The X-Files, and 10 seasons of Law and Order: SVU,

Hulu is owned by News Corp. (NWS) – the publisher of this blog – NBC Universal, Disney (DIS) and Providence Equity Partners.

3 Stocks Soaring on Unusual Volume

Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 "Magic Formula" Stocks for 2013

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

See if (CAP) is in our portfolio

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock. With that in mind, let's take a look at several stocks rising on unusual volume today.CAI International (CAP)This is an intermodal freight container leasing and management company, which operates its business through two segments: container leasing and container management. This stock is trading up 5.2% at $21.19 in recent trading. Today's Volume: 847,000Average Volume: 148,040Volume % Change: 1195%From a technical perspective, CAP is ripping higher here right off its 200-day moving average of $20.04 with heavy upside volume. This move is quickly pushing CAP within range of triggering a near-term breakout trade. That trade will hit once CAP takes out some near-term overhead resistance at its 50-day of $21.26 and then more overhead resistance at $22 with high volume. Traders should now look for long-biased trades in CAP as long as it's trending above its 200-day at $20.04, and then once it sustains a move or close above those breakout levels with volume that hits near or above 148,040 shares. If that breakout triggers soon, then CAP will set up to re-test or possibly take out its next major overhead resistance levels at $23 to $23.55. Apogee Enterprises (APOG)This company provides technologies, involving the design and development of value-added glass products, services and systems. This stock is trading up 3.2% at $24.49 in recent trading.

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Today's Volume: 299,000

Average Volume: 178,329

Volume % Change: 196%

Shares of APOG are trending higher today after the company said third quarter revenue rose by 9% to $190.4 million and net earnings surged 45% to 28 cents per share. From a technical perspective, APOG is gapping higher here right above some near-term support at $23 with above-average volume. This move has started to push APOG into breakout territory, since the stock has cleared some near-term overhead resistance levels at $23.50 to $23.89. At last check, APOG has hit an intraday high of $24.86 and volume is well above its three-month average action of 173,329 shares. This move has also pushed APOG into new 52-week high territory, which is bullish technical price action. Traders should now look for long-biased trades in APOG as long as it's trending above $23 to $23.50 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 178,329 shares as bullish. If APOG can maintain that trend, then this stock has a great chance of tagging $30 in the near future. Synaptics (SYNA)This is a developer and supplier of custom-designed human interface solutions that enable people to interact easily and intuitively with a variety of mobile computing, communications, entertainment, and other electronic devices. This stock is trading up 4% at $29.49 in recent trading. Today's Volume: 895,000Average Volume: 442,442Volume % Change: 234%From a technical perspective, SYNA is gapping higher here back above its 200-day moving average of $28.25 with above-average volume. This stock has been uptrending strong for the last two months, with shares soaring from a low of $22.60 to its recent high of $30.36. During that move, shares of SYNA have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed SYNA within range of triggering a near-term breakout trade. That trade will hit once SYNA manages to take out some near-term overhead resistance levels at $30.50 to $31.56 with high volume.

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Traders should now look for long-biased trades in SYNA as long as it's trending above its 200-day at $28.25, and then once it sustains a move or close above those breakout levels with volume that hits near or above 442,442 shares. If that breakout triggers soon, then SYNA will set up to re-test or possibly take out its next major overhead resistance levels at $33 to $35.

To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.

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How Fast Is the Cash at Universal Electronics?

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 Universal Electronics (Nasdaq: UEIC  ) .

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 Universal Electronics for the trailing 12 months is 92.2.

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 comparing a company'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 Universal Electronics, 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 Universal Electronics looks less than great. At 92.2 days, it is 5.2 days worse than the five-year average of 87. days. The biggest contributor to that degradation was DIO, which worsened 10.4 days when compared to the five-year average.

Considering the numbers on a quarterly basis, the CCC trend at Universal Electronics looks good. At 88.6 days, it is 5.6 days better than the average of the past eight quarters. With quarterly CCC doing better than average and the latest 12-month CCC coming in worse, Universal Electronics gets a mixed review 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 underappreciated home run stocks.

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• Add Universal Electronics to My Watchlist.

Does H&E Equipment Services Miss theGrade?

Margins matter. The more H&E Equipment Services (Nasdaq: HEES  ) 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, so I can compare them to current and potential competitors, and any trend that may tell me how strong H&E Equipment Services's competitive position could be.

Here's the current margin snapshot for H&E Equipment Services over the trailing 12 months: Gross margin is 29.8%, while operating margin is 9.5% and net margin is 3.2%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where H&E Equipment Services has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If 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 (LFQ). 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 H&E Equipment Services 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 30.5% and averaged 26.9%. Operating margin peaked at 14.1% and averaged 6.5%. Net margin peaked at 6.4% and averaged 1.1%.
• TTM gross margin is 29.8%, 290 basis points better than the five-year average. TTM operating margin is 9.5%, 300 basis points better than the five-year average. TTM net margin is 3.2%, 210 basis points better than the five-year average.

With recent TTM operating margins exceeding historical averages, H&E Equipment Services looks like it is doing fine.

If you're interested in companies like H&E Equipment Services, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street � and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

• Add H&E Equipment Services to My Watchlist.

Top Stocks For 12/20/2012-4

Whitney Holding Corp.�(NASDAQ:WTNY)�decreased 2.86% to close at $13.93. WTNY traded 1.99 million shares for the day and its 52 weeks range remained $ 7.04 - $15.29. Whitney Holding Corporation operates as the bank holding company for Whitney National Bank that provides community banking services to commercial, small business, and retail customers. Whitney Holding Corporation offers its services in Texas, southern Louisiana, coastal region of Mississippi, central and south Alabama, and the western panhandle and the Tampa Bay metropolitan area of Florida, as well as in Grand Cayman in the British West Indies. The company was founded in 1883 and is headquartered in New Orleans, Louisiana.

NASDAQ OMX Group, Inc.�(NASDAQ:NDAQ)�decreased 0.79% to close at $23.92. NDAQ traded 1.96 million shares for the day and its 52 weeks range remained $1.43. The NASDAQ OMX Group, Inc. provides trading, exchange technology, securities listing, and public company services worldwide. The NASDAQ OMX Group supports the operations of approximately 70 exchanges, clearing organizations, and central securities depositories. The company was formerly known as The Nasdaq Stock Market, Inc. and changed its name to The NASDAQ OMX Group, Inc. in February 2008. The NASDAQ OMX Group, Inc. was founded in 1971 and is based in New York, New York.

TFS Financial Corporation�(NASDAQ:TFSL)�decreased 0.11% to close at $9.16. TFSL traded 1.86 million shares for the day and its earnings per share remained $0.04. TFS Financial Corporation operates as the holding company for Third Federal Savings and Loan Association of Cleveland that provides retail consumer banking services in Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

1 Oil Company That Knows How to Balance Growth and Dividends

Dividends are always an important aspect to consider when investing. However, it is necessary to make sure that your investment is wisely balancing its free cash flow between dividend payments and capital expenditures. Marathon Oil (NYSE: MRO  ) is one energy company that has been keenly aware of focusing on striking the optimal balance. Its yield is a close match for the majority of its competition, and management has been improving the solvency of the company's balance sheet to ensure growth initiatives will have the necessary capital to be explored. Tune in to the video below, where Fool energy analyst, Taylor Muckerman, provides a broader perspective on how Marathon is accomplishing this goal, and what it means for total returns and future prospects for shareholders.

Exelon, with its best-in-class dividend, has been in the news,�regarding the sustainability of its distributions to shareholders, after its third-quarter release. Management has been targeting debt reductions and strategically trimming future capital expenditures in order to maintain both its dividend and credit rating. To determine if Exelon is a good, long-term fit for your portfolio, you're invited to check out The Motley Fool's premium research report on the company. Simply�click here now�for instant access.

The Agony and the Jets-tasy

Associated Press

Mark Sanchez, Rex Ryan and the 6-8 New York Jets are the most entertaining team in football.

This is a column about a 6-8 football team that failed to make the playoffs, and you may legitimately question the need for a column about a 6-8 football team that failed to make the playoffs, but let's be real: There are only a few days before Christmas, and nobody in your office is doing any real work anyway. That guy next to you has been looking at khakis on the J.Crew website since mid-October. Three other co-workers went out to a long holiday lunch and never came back. Someone in sales just ate the gingerbread house in the lobby. Not part of the gingerbread house. The whole house. It was built in 1979.

This is a column about the New York Jets. I don't know why people get furious at the New York Jets. They are the most entertaining team in football. Jim Carrey hasn't made a classic comedy in ages, and Adam Sandler's looking for one as well, but the Jets keep cranking out the laughs, week after week, like a hardworking vaudeville revue. The jokes are broad and accessible. Football likes to view itself as a sophisticated, intricate endeavor, but the Jets play a type of football a toddler could love. The quarterback�he ran into a guy's butt, and fumbled!

Monday, the Jets lost their eighth game of the season, to the Tennessee Titans. Both of these teams had as much of a chance of winning the Super Bowl as the Milwaukee Brewers, but the game was still a spectacle, because of the manner in which the Jets unraveled. Once again, the focus became the inefficiencies of New York's fourth-year quarterback, Mark Sanchez, who led the Jets to consecutive AFC championship appearances in the first two seasons of his career, but since then has regressed, as if his internal clock has rotated backward, like Benjamin Button's. Sanchez threw four interceptions in the game, and that happens to the best of them�Tom Brady has done it six times�but Sanchez's misfires can be excruciatingly laborious and forced. At times, Sanchez looks less like a professional quarterback throwing a football to his receivers, and more like a hotel guest flinging chair cushions off of the balcony into the pool.

Monday's game climaxed on a comical bungle, when the Jets�deep in Tennessee territory thanks to a botched punt�fumbled away a snap and the Titans recovered. The Jets finishing a season with an inexplicable fumble is the equivalent of Springsteen closing a four-hour concert with "Born to Run." Mike Tirico, the ESPN play-by-play announcer, was almost gleeful. "That's the way this game should end, that's the way the Jets season should end. Ugly, and a loss!" It was hard to watch Sanchez and New York's coach Rex Ryan try to get through their postgame news conferences. "It's a devastating loss," Ryan said, frozen-eyed.

A day later, Ryan announced that Sanchez would not be the quarterback for the season's penultimate game, that this Haz-Mat assignment would go to third-stringer Greg McElroy. McElroy is young and did lead New York to a modest 7-6 victory over Arizona a couple of weeks ago, but the team didn't even make him eligible to play against Tennessee. Watching the Jets make personnel decisions is like watching a manic person make a casserole out of items found in his car's glove compartment. It's all madness, no method.

Naturally, the big take-away wasn't Sanchez's benching or McElroy's ascension but the conspicuous snubbing of the team's quarterback understudy, Tim Tebow. Tebow was a bizarre acquisition for the Jets. Last season, the 25-year-old briefly ignited the NFL with a string of dramatic victories as quarterback of the Denver Broncos, but then Denver signed Peyton Manning and Tebow was off-loaded to the Jets, happy as ever to hoard insanity. But after making loud noises about a "wildcat" offense and employing Tebow as a kind of special-ops backup, the Jets haven't made much use of Tebow at all. For a team with no institutional history of self-control, this has been mystifying restraint. Tebow seems exactly the kind of irrational fun a reeling football team should seek. What do they have to lose? It's as if Rex Ryan got himself a hot pink Jet-Ski and left it out on the front lawn to rust.

Presumably the Jets have seen enough of Tebow in practice to decide he's not capable of leading them to four-interception losses. There's also the dubious conspiracy theory that the Jets coaches passed over Tebow because if Tebow were to play well in the final two games, it would make the coaches look more foolish than they already look now. Is McElroy the future? Last year after the Jets finished 8-8 and out of the playoffs, McElroy gave an interview with an Alabama radio station in which he said the Jets locker room was "not a fun place to be" and said it was the first time in his football career he'd been "around extremely selfish individuals." Now he appears to be the sane survivor.

This is the point at which common sense should take hold and the detached observer should ask, WHY ARE WE STILL TALKING ABOUT A 6-8 FOOTBALL TEAM? This is a reasonable ask�and to state the obvious, the over-obsession with the Jets is mostly driven by New York's profound, irritating love affair with itself. But there's also something to the very naked, public way that the Jets fall apart. Football teams enjoy styling themselves as polished, secretive, almost covert operations, but the Jets are a delicious hot mess, entertainingly uninhibited. The cameras from HBO's "Hard Knocks" left after one preseason of covering the Jets, but the reality show never stopped.

The Jets play the San Diego Chargers on Sunday, another tormented franchise that essentially operates as Jets West. This game was originally scheduled for prime time, but NBC has decided to downgrade it from 8:20 p.m. to 1 p.m., like a wedding planner calling a bride and regretfully explaining the wedding has been moved from the grand ballroom to the parking lot. Oh well. It should be a meaningless and brutal afternoon. It also should be pretty amusing. There are only a few days before Christmas, and all the Jets want is a break.

2012: The Year Baidu Investors Got Bit

In these waning days of 2012, there's a chill in the air and snow in the forecast. What better time of year to curl up by the fire and ponder: What went wrong with the stocks you picked back in January? What went right? And should you keep these stocks in your portfolio, or go out and find something new?

That's what we aim to do today, as we flip back the calendar, and consider the year that was at Baidu (NASDAQ: BIDU  ) .

A few Foolish facts about Baidu

Year-to-Date Stock Return	(17.4%)
P/E	28.2
Dividend Yield	None
1-Year Revenue Growth (YTD)	61.7%
1-Year Profit Growth (YTD)	69.6%
CAPS Rating (out of 5)	***

Source: Motley Fool CAPS.

What happened at Baidu this year?
After a topsy-turvy 2011, the company commonly known as "China's Google" (but more accurately known as the company that displaced Google (NASDAQ: GOOG  ) from China) came roaring into 2012. From the beginning of January to early April, Baidu shares ran up an impressive 30% -- a pace that, if continued, would have had the stock doubling by year end. But it was not to be.

The company's first quarter earnings report, which came out April 24, showed Baidu's revenue rising 75%, and earnings up 76%. Somehow, however, analysts had got it into their heads that Baidu was going to do even better than that. When Baidu failed to measure up, a lot of investors got to thinking that it might be time to take profits rather than letting their money ride.

Result: Baidu shares proceeded to lose 30% over the next three months.

When Q2's earnings rolled around in July, the company that grew earnings around 70% in Q1 just kept on growing, leading to an immediate pop. But as we've come to expect, it was short-lived. In August, worrywarts found their latest excuse to question the Baidu's success: browser and anti-virus software maker Qihoo 360 (NYSE: QIHU  ) , which announced plans to compete with Baidu on search.

Ever since then, Baidu's share price has been on the wane, recently testing a 52-week low. Investors continue to worry that Baidu will somehow fumble "the transition to mobile" -- a transition that Facebook (NASDAQ: FB  ) and Google seemed to manage just fine, but one that for some reason everyone seems to think Baidu will flub.

Well, maybe it might. Maybe Qihoo and its less than $300 million in annual revenue will beat Baidu and its $3.3 billion revenue stream... but I wouldn't bet on it. With 2012 drawing to a close, my money's still on Goliath to beat David in 2013.

Regardless of your short-term view on the Chinese economy, there may be opportunity in Baidu. Our brand-new premium report breaks down the dominant Chinese search provider's strengths and weaknesses. Just click here to access it now.

FedEx Quarterly Profit Drops

FedEx (NYSE: FDX  ) reported fiscal Q2 2013 results that were weaker on a year-over-year basis, the company detailed in a press release. Although revenue was 5% higher on an annual basis at $11.1 billion, net profit saw a 12% decline to $438 million ($1.39 per share).

Analysts had been expecting revenue of around $10.8 billion and EPS of $1.41.

The company attributed the drop in earnings to the negative effects of Hurricane Sandy, and what its CEO Frederick Smith termed "persistent weakness in the global economy and increased demand for lower-yielding international services."

The firm also provided guidance for its current Q3 and for full-year fiscal 2013. It believes earnings will total $1.25-$1.45 per diluted share for the former, and $6.20-$6.60 for the latter.

UBS to Pay $1.5 Billion in Fines Over Interest Rate Rigging Scandal

By JOHN HEILPRIN

GENEVA -- Swiss bank UBS (UBS) agreed Wednesday to pay some $1.5 billion in fines to international regulators following a probe into the rigging of a key global interest rate.

In admitting to fraud, Switzerland's largest bank became the second bank, after Britain's Barclays (BARC), to settle over the rate-rigging scandal. The fine, which will be paid to authorities in the U.S., Britain and Switzerland, also comes just over a week after HSBC (HBC) agreed to pay nearly $2 billion for alleged money laundering.
The settlement caps a tough year for UBS and the reputation of the global banking industry. As well as being ensnared in the industry-wide investigation into alleged manipulations of the benchmark LIBOR interest rate, short for London interbank offered rate, UBS has seen its reputation suffer in a London trial into a multibillion dollar trading scandal and ongoing tax evasion probes.

As a result of the fines, litigation, unwinding of real estate investments, restructuring and other costs, UBS said it expects to make a fourth quarter net loss of between 2 billion to 2.5 billion Swiss francs ($2.2-2.7 billion). Nevertheless, the Zurich-based bank maintained that it "remains one of the best capitalized banks in the world."

Despite the fine, investors were cheered that some of the uncertainty surrounding the stock has been lifted. UBS shares were trading up 1.6 percent at 15.50 francs around noon on the Zurich exchange.

Other banks are expected to be fined for their involvement in the LIBOR scandal. LIBOR, which is a self-policing system and relies on information that global banks submit to a British banking authority, is important because it is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.

UBS characterized the probes as "industry-wide investigations into the setting of certain benchmark rates across a range of currencies."

The UBS penalty is more than triple the $450 million in fines imposed by American and British regulators in June on Barclays for submitting false information between 2005 and 2009 to manipulate the LIBOR rates. Those fines exposed a scandal that led to the departure of Chief Executive Bob Diamond and the announcement that Chairman Marcus Agius would step down at the end of the year.

In accepting the fines, UBS said some of its employees tried to rig the LIBOR rate in several currencies, but that its Japan unit, where much of the manipulation took place, entered a plea to one count of wire fraud in an agreement with the U.S. Justice Department.

UBS said some of its personnel had "engaged in efforts to manipulate submissions for certain benchmark rates to benefit trading positions" and that some employees had "colluded with employees at other banks and cash brokers to influence certain benchmark rates to benefit their trading positions."

UBS added that "inappropriate directions" had been submitted that were "in part motivated by a desire to avoid unfair and negative market and media perceptions during the financial crisis."

Britain's financial regulator called the misconduct by UBS "extensive and broad" with the rate-fixing carried out from UBS offices in London and Zurich.

Different desks were responsible for different rate submissions. At least 2,000 requests for inappropriate submissions were documented -- an unquantifiable number of oral requests, which by their nature would not be documented, were also made, the U.K.'s Financial Services Authority said.

"Manipulation was also discussed in internal open chat forums and group emails, and was widely known," the FSA said. "At least 45 individuals including traders, managers and senior managers were involved in, or aware of, the practice of attempting to influence submissions."

Joe Rundle, head of trading at London-based ETX Capital, said the case exposes "just how brazen and arrogant" the UBS traders were while collaborating with "corrupt external brokers."

Sergio Ermotti, who was appointed CEO of UBS AG in November 2012 in the wake of a major trading scandal, said the misconduct does not reflect the bank's values or standards.

"We deeply regret this inappropriate and unethical behavior. No amount of profit is more important than the reputation of the firm, and we are committed to doing business with integrity," he said.

With more than 2.2 trillion Swiss francs ($2.4 trillion) in invested assets, UBS is one of the world's largest managers of private wealth assets. At last count, the bank had 63,745 employees in 57 countries and said it aims for a headcount of 54,000 in 2015.

Along with Credit Suisse (CS) , the second-largest Swiss bank, UBS is on the list of the 29 "global systemically important banks" that the Basel, Switzerland-based Bank for International Settlements, the central bank for central banks, considers too big to fail.

It's not the first time that UBS has fallen afoul of regulators. Notably in 2009, U.S. authorities fined UBS $780 million in 2009 for helping U.S. citizens avoid paying taxes.

The U.S. government has since been pushing Switzerland to loosen its rules on banking secrecy and has been trying to shed its image as a tax haven, signing deals with the United States, Germany and Britain to provide greater assistance to foreign tax authorities seeking information on their citizens' accounts.

In April, Ermotti called Switzerland's tax disputes with the United States and some European nations "an economic war" putting thousands of jobs at risk.

And in September 2011 the bank announced more than $2 billion in losses and blamed a 32-year-old rogue trader, Kweku Adoboli, at its London office for Britain's biggest-ever fraud at a bank.

Britain's financial regulator fined UBS, saying its internal controls were inadequate to prevent Adoboli, a relatively inexperienced trader, from making vast and risky bets. Adoboli has been sentenced to seven years in prison.

Bank Scandals

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Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

ACN Slips: FYQ1 Rev View Misses, Q2 View Light, Raises Year EPS View

Shares of Accenture (ACN) are down $2.65, or almost 4%, at $67.75 in late trading after the company this afternoon reported fiscal Q1 revenue that slightly missed analysts’ estimates, but beat on the bottom line, and forecast this quarter’s revenue below consensus, but projected full-year net revenue to beat expectations.

Revenue in the three months ended in November rose 2%, year over year, to $7.22 billion, yielding EPS of $1.06.

Analysts had been modeling $7.3 billion and $1.04.

For the current quarter, the company sees revenue in a range of $6.9 billion to $7.15 billion,� versus the average $7.15 billion estimate.

CEO Pierre Nanterme said the company was “pleased” with the results, adding that “Looking ahead, we remain focused on the successful execution of our growth strategy and are investing to further differentiate our industry and technology capabilities, as well as to expand our geographic footprint in key growth markets.”

For the full year, the company sees revenue rising by 5% to 8%, year over year, excluding foreign exchange effects, which would equate to$29.25 billion to $30.1 billion, which is higher than the average estimate of analysts of $29.43 billion.

The company raised its outlook for the full year’s profit per share to a range of $4.24 to $4.32 from a prior range of $4.22 to $4.30. That is above the consensus for $4.26 per share. The company sees operating profit margin rising by 20 to 30 basis points during the year, it said.

Accenture management will host a conference call with analysts at 4:30 pm, Eastern time, and you can catch the webcast of it here.

Top Stocks For 12/20/2012-12

American Video Teleconferencing Corp. (Pink Sheets:AVOT) is pleased to announce that it is presently in final discussions to enter into a formal agreement to acquire an exclusive option on a molybdenum property in the Otter lake area in the province of Quebec, Canada. The property has been dormant since the 1960’s when Hupon Mining and Exploration carried out surface work, stripping, trenching and a minor drill program of 445 feet contained in 11 drill holes. Some of the sample results from the trenching in 1962 showed 0.94% to 25% molybdenum averaging 5-10%. These values were obtained from assessment files in the Department of Mines in Quebec City.

This property is only one of several advanced stage properties American Video has under consideration in the province of Quebec.

Rare earth elements have become irreplaceable in clean tech such as hybrid and electric car motors, high-efficiency light bulbs, solar panels and wind turbines. They also play a key role in defense technologies such as cruise missiles, radar and sonar and precision-guided weapons.

Experts warn that the U.S. depends upon China for almost its entire supply of rare earths, and has let its own rare earth production languish despite having about 15 percent of the world’s reserves. A draft of a Chinese rare earths plan for 2009-2015 states that China’s own industrial demand could soon lead to restrictions or bans on the export of rare earths.

The U.S. Geological Survey (USGS) has noted that 91 percent of U.S. consumption of rare earths came from China between 2005 and 2008.

Constraints on Chinese exports are creating opportunities for non-Chinese projects

American Video will aggressively continue to search world-wide for opportunities in Precious, Base and Rare Earths metal projects.

Majestic Gold Corp. (TSX.V:MJS) (FSE:MJT) is pleased to announce the results of an updated resource estimate on its Song Jiagou Mine.

As part of the ongoing assessment on the Song Jiagou Mine, Wardrop Engineering Inc. (”Wardrop”) has revised their previous resource estimate (NR 23 April, 2010) as a result of the revision to the contract mining costs (NR 30 September 2010) which allowed cut-off grades to be reduced from 0.40 g/t to 0.30 g/t and warranted a revision of the block model.

Subsequent to the initial resource estimate, Wardrop determined that rotating the block model perpendicular to drilling direction was the most favorable orientation to evaluate the deposit and to calculate the revised resource. The new cut-off grade and the re-orientation of the model significantly increased the overall size of the resource and the contained ounces of gold in both the inferred and indicated categories.

The revised resource is:

—————————————————————–
Grade Au
Category Tonnes(i) (g/t)(ii) Contained oz Au
—————————————————————–
Indicated 33,739,586 1.147 1,244,211
—————————————————————–
Inferred 38,812,054 1.467 1,830,576
—————————————————————–
(i)Calculations conducted using 0.30 g/t cut-off
(ii)Gold grades were capped at 40 g/t

The most significant changes from the previous estimate are:

– Increase in Indicated tonnes by 35.34% to 33,739,586 tonnes
– Increase in Indicated contained gold by 24.09% to 1,244,211 ounces
– Increase in Inferred tonnes by 37.96% to 38,812,054 tonnes
– Increase in Inferred contained gold by 7.48% to 1,830,576 ounces

The increase in the size of the resource from 53 to 72.5 million tonnes will very significantly reduce the strip ratios to be used as Majestic continues its engineering studies on the Song Jiagou mine. Wardrop will move forward now to re-evaluate a production pit design.

For More Information On Majestic Gold: www.majesticgold.net

Pride International Inc. (NYSE:PDE) announced that the company has reached agreement with Samsung Heavy Industries, Ltd. (SHI) for the construction of a fifth ultra-deepwater drillship, further expanding the company’s ultra-deepwater fleet size and drilling capabilities. Consistent with the company’s previous four ultra-deepwater drillships ordered since 2007, the new unit will be constructed on a fixed price basis at the SHI shipyard in Geoje, South Korea, with an expected delivery in mid-2013. The rig will be equipped with some of the most technically advanced well construction features available in the offshore drilling industry, addressing a suite of superior capabilities to meet the needs of clients.

Pride International, Inc. provides offshore contract drilling services to oil and natural gas exploration and production companies. It offers services through the use of mobile offshore drilling rigs in the United States and international waters.

Bristol-Myers Squibb Company (NYSE:BMY) will present at the Goldman Sachs Healthcare CEOs Unscripted conference Thursday, January 6, 2011, in New York. Lamberto Andreotti, chief executive officer, will make a presentation about the company at 8:00 a.m. EST.

Bristol-Myers Squibb Company, a global biopharmaceutical company, engages in discovering, developing, and delivering medicines that help patients prevail over serious diseases. The company focuses on areas of serious unmet medical need, such as affective (psychiatric) disorders, Alzheimer�s/dementia, cardiovascular (primarily atherosclerosis/thrombosis), diabetes.

W.R. Berkley Corporation (NYSE:WRB) will release its fourth quarter 2010 earnings after the market closes on February 2, 2011. A copy of the earnings release will be available on the company�s website. The company has scheduled its quarterly conference call with analysts and investors to discuss its earnings and other information on Wednesday, February 2, 2011 at 5:30 p.m. eastern time.

W.R. Berkley Corporation, through its subsidiaries, operates in the property casualty insurance business in the United States and internationally. The company operates in five segments: Specialty, Regional, Alternative Markets, Reinsurance, and International.