Hot Stocks 2012, Top Stocks Market 2013, Best Stock Investment

It's a super-speedy, seven-passenger, electric SUV

2012-02-17T12:27:00.001-08:00

Tesla Motors (NASDAQ:TSLA), the electric-vehicle specialist and publicity magnet, on Thursday took the wraps off Model X, a seven-seat SUV with ��falcon-wing�� doors and super-quick acceleration.

Reservations are being taken, with production scheduled to start in late 2013.

http://youtu.be/NEnJv6jM_OU

Model X, which, Reuters points out, resembles a taller version of Tesla��s current offering, the Model S sedan, can bolt from 0 to 60 mph in a whiplash-inducing 4.4 seconds. (Many people who test-drove the company��s electric sports car, the $100,000-plus Tesla Roadster, seemed startled by that vehicle��s quick acceleration.)

The Model S, which sells for almost $60,000, is scheduled to begin rolling off the production line in July. The company hopes to deliver 20,000 of the cars by 2013. Model X will go for roughly the same price, with a production goal of 10,000 to 15,000 vehicles, all of which will have dual-motor all-wheel drive.

Tesla, which went public in 2010, has yet to earn a profit, but its work in electric-drive technology has been licensed to competitors such as Toyota (NYSE:TM), whose electric RAV4 crossover SUV uses Tesla��s electric-drive system. Based in Palo Alto, Calif., Tesla has attracted investments from a number of venture-capital firms and Silicon Valley entrepreneurs, and also won a $465 million loan guarantee in 2009 from the U.S. Department of Energy.

Tips For Driving Safely At Night Time

2012-02-17T07:50:00.001-08:00

If you are a skilled driver, it is likely you learned the hard way that different driving factors will require different driving skills. The more driving you carry out, the wiser you become in ensuring the safety of your passengers along with the other drivers on the road. It’s simple to know that when the weather changes for the worse, you have to be more cautious on the road. However, driving during the nighttime is also an area that calls for certain skills and precautions. In the next few paragraphs, we’ll examine how to drive more safely at night. A night splint can speed the healing process.

Whenever you think about how to drive safely at night, it is advisable to first consider how you currently drive and what time of day do you typically drive. If you drive mostly during the day, you should be more cautious if you drive at night to places you don’t ordinarily go. It is also essential that you know your own health circumstance since night driving could be affected by poor health. In particular, if your eyesight is not what it was this can be much more of a concern than it is during the day.

Aside from your own health issues, you also need to ensure that your car is in tip top shape. It’s always important that other drivers spot you in good time, especially in dangerous conditions, so make sure you check all of your lights are in good working order. This includes lights that you do not normally use along the lines of fog lights. The tires need to be examined and replaced if required since the icy winter months can be dangerous when driving at night.

There is always the risk that you will break down on the road at some point and if this happens at night, you will want to have certain things with you to ensure you stay safe and can get home. As well as having information on any roadside assistance you may have, it is a good idea to have certain things in the car with you. You should switch on your hazard lights and have an emergency kit that has a warning ! triangle and something to keep you warm.

It’s probably smart to drive a little slower and keep a distance from the car in front of you when driving at night. If it seems as if something unfavorable is about to happen, at least you have some time to react. If you follow these tips, you can boost your chances of arriving safely at your destination when driving at night.

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Silver Stock Spotlight; Silver Wheaton Review

2012-02-17T03:37:00.001-08:00

Silver Wheaton Corp. (NYSE: SLW) shares are climbing in today's trading. The stock reached a high of $39.68 in mid-day trading, and at last check, it was up 1.66% to $39.09. Silver Wheaton shares have a 52-week range of $14.83-$46.38. The stock is currently trading above its 50-day and 200-day moving averages. Year-to-date the stock is up 0.49%. In the last one year the stock gained 140.53%.

Silver Wheaton earlier this month announced its fourth-quarter financial results. The company reported record quarterly results. The company reported fourth-quarter net earnings of $123 million or $0.35 per share, up from $50.8 million or $0.15 per share reported in the same period in 2009. The company's operating cash flow jumped 76% to $124.7 million in the fourth quarter.

Silver Wheaton reported attributable silver equivalent production of 6.3 million ounces in the fourth quarter of 2010, representing an increase of 10% over the same period in 2009. The company's silver equivalent sales increased 11% on a year-over-year basis to 5.7 million ounces.

For full year 2010, the company reported net earnings of $209.1 million or $0.84 per share, compared with $117.9 million reported in 2009. The company's operating cash flow jumped 93% to $319.8 million in the fourth quarter of 2010. The company's silver equivalent production stood at 23.9 million ounces in 2010. It reported silver equivalent sales of 20.5 million ounces in 2010.

The company expects 2011 attributable production of 27 to 28 million silver equivalent ounces, which included 15,000 ounces of golf. The company anticipates total 2011 cash costs to be around $4 silver equivalent ounce.

Silver Wheaton is a Vancouver, Canada-based mining company, generating its revenue mainly from the sale of silver.

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Is it Time to Hang up on Sprint-Nextel, Alcatel-Lucent and Nokia (NOK, ALU, S)

2012-02-16T14:07:00.001-08:00

The history of tech stocks in the field of communications such as Sprint-Nextel (NYSE: S), Alcatel-Lucent (NYSE: ALU) and Nokia Corporation (NYSE: NOK) recovering from small cap price levels to rebound to blue chip ranges is not promising.? Recent earnings reports and the balance sheets of each present daunting obstacles.? In addition, the strategies of survival for each are raising profound concerns among investors.

These concerns have certainly played out in the stock price of each company.? Over the last year, Nokia has fallen more than 54%.? During the same period, Sprint-Nextel is down more than 45%.? Alcatel-Lucent is off more than 45% over the last 52 weeks, too.

The amount debt that each carries should be of grave concern to investors.? Avoiding debt is one of the major tenets of Warren Buffett in investing.? Not so for Alacatel-Lucent, Nokia Corporation and Sprint-Nextel. Each has a very high level of debt.? Alcatel-Lucent has a debt-to-equity ratio of 1.61.? Sprint-Nextel has a debt-to-equity ratio of 1.42.? Nokia Corporation has a debt-to-equity ratio of 1.63.? By contrast, Berkshire Hathaway (NYSE: BRK-A), Warren Buffett's company, has a debt-to-equity ratio of 0.38.

All of this debt would not be of concern if the companies were profitable.? After all, that is what private enterprise is all about.? A profit margin of 20% is considered to be healthy.? Sprint-Nextel (S) has a profit margin of a negative 7.57%.? Alcatel-Lucent has a profit margin of 3.82%.? Nokia Corporation (NOK) has a profit margin of a negative -3.85%.

A recent article in The Economist magazine detailed how difficult it is for a high tech company to rebound.? The focus of the article was Research-in-Motion (NASDAQ: RIMM) and its slide.? Discussed was how another Canadian high tech, Nortel Corporation, once a darling of the communications industry, went bankrupt. At one time, according to the article in The Economist, Nortel had a market ca! p of ove r $200 billion.

Each company has a strategy for survival.? Nokia Corporation is banking on sales of the new Windows smartphone.? Sprint-Nextel is paying a very dear price for the iPhone 4S to bring it back.? Based on the stock performance of Alcatel-Lucent (ALU), Sprint-Nextel (S), and Nokia Corporation (NOK), Wall Street does not think it is working.

Metabolic Research to Feature StemuliteTM at the Olympia Expo in Las Vegas

2012-02-16T09:38:00.001-08:00

Dr Stock Pick HOT News & Alerts!

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FREE Daily Stock Alerts From DrStockPick.com

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Thursday September 17, 2009

DrStockPick.com Stock Report!

MTBR, Metabolic Research, Inc., MTBR.PK

Metabolic Research to Feature StemuliteTM at the Olympia Expo in Las Vegas

LAS VEGAS�C(CRWENEWSWIRE)�C Metabolic Research, Inc. (Other OTC: MTBR.PK) makers of StemuliteTM, will have a booth in the Olympia Expo at the Las Vegas Convention Center South Hall, September 25th and 26th. The StemuliteTM booth will feature Corey and Paul Simpson, well-known super athlete trainers joined by Cristi Cuellar, Miss Bikini Mexico International Elite Champion. They will sign autographs and explain the benefits and features of StemuliteTM. Paul and Corey conducted the first life studies of StemuliteTM on both male and female groups.

Corey Simpson, whose credits include 1999 Mr. Florida, 2001 NPC Jr Nationals Championship and 2006 Muscle Mania Superbody Men��s Posing Champion, reported that the rapid increase in strength and stamina were the most evident effects. This was confirmed by chiropractor Dr Todd J Cielo, D.C. who is also an ironman Tri-Athlete. Paul Simpson, Corey��s uncle and an NFL, Baseball and Professional Boxer trainer, conducted studies for MTBR to confirm StemuliteTM health benefits.

The principle distinction between the men��s formula and the women��s formula is a component designed to preserve the fibroglandular tissue in women��s breasts, while diminishing the adipose fat tissue in the belly, hips and thighs.

The prod! uct is b inary meaning there is one formula for morning and another for evening. In part, they work by recruiting stem cells from bone marrow to replace dead tissues and reduce soreness from exercise. The formulated compound achieves the greatest degree of stem cell activity at night by inducing increased quality REM sleep.

This press release includes ��forward-looking statements�� within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms ��believes,�� belief,�� expects,�� intends,�� anticipates,�� will,�� or ��plans�� to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company��s reports and registration statements filed with the Securities and Exchange Commission.

Contact:

Princeton Research, Inc., Las Vegas
Mike King, 702-650-3000
mike@princetonresearch.com

Source: Metabolic Research, Inc.

Keep a close eye on MTBR, do your homework, and like always BE READY for the ACTION!

Antic Rally In Financials Contrasts With Tepid Broad Market Action

2012-02-16T05:36:00.001-08:00

The most-crowded trade on Wall Street persisted into Friday’s trading, and continued to add a piquant flavor to a broad market that proved about as bland as American cheese on white bread. Together, the two set the tone for what could prove to be a divisive week for Wall Street, one that will see whether momentum stocks roll over, and market averages finally capitulate to over-bought conditions, or whether critical economic data can power those averages to new highs.

Next week’s action promises to be highlighted by several readings on economic conditions. Some of them could further fan the flames of the recovery trade, while others could show more reasons to be hesitant about a consumer-led rebound.

On the plus side, investors will get a glance at a key manufacturing reading Tuesday – the ISM manufacturing index – which is expected to climb narrowly above a level of 50 when the report comes out. Fifty represents the demarcation between manufacturing contraction and expansion. The report hasn’t shown an expansionary environment since early 2008.

There’s also a look at pending home sales on Tuesday, a report that’s expected to show growth for a sixth consecutive month, something that would burnish the expectation that the housing market has stabilized, despite continuing foreclosures.

The week’s critical reading arrives amidst what could prove to be a virtual vacuum Friday, as the Labor Department releases the August nonfarm payrolls report. It’s expected to show that job cuts slowed further in the month, with job losses amounting to a pedestrian – at least by recent standards – 225,000, after a reduction of 247,000 for July. However, on the downside, the unemployment rate, which retreated unexpectedly in July, is expected to tick back up to about 9.5%, showing continued difficulties in the labor markets, and prospectively renewing worries about how quickly consumer spending is going to bounce back.

The real ! risk, th ough, is that all this comes amid a week that’ll be characterized by sluggish volume from the start, and dwindling levels as the week wears on. By the time the jobs report hits the tape on Friday, trading desks could look like a bus stop after the Hamptons Jittney loaded its passengers and headed east.

Not that volume proved all that powerful in this week’s trading – save for the handful of ”at-risk” financial stocks whose bulge in trading accounted for a freakish percentage of each day’s volume throughout the week.

The performance of the broad list matched the insipidness of the volume. The S&P 500 index(GSPC)added 3 points.

For the week. Five trading days – three of whichresulted in gains – amounted to a 3-point move cumulatively.

And in the midst of that, a handful of financial stocks traded at ridiculously inflated levels. Shares of Citigroup (C)rose another 4% as 1.35 billion shares changed hands in the session. American International Group (AIG)added 5%, part of whatproved tobe a 53% advance this week alone that carried the stock over $50 a share. Fannie Mae (FNM)increased 6%, part of this week’s 70% surge in the market value, which carried the stock above $2 a share for the first time since September.

Whetherthe rally in these at-risk financials, which – let’s admit – traded with virtually no tether to the underlying fundamentals this week, end up rolling over may determine much of the character of trading in the week leading up to the Labor Day holiday.

Introducing the 24/7 Wall St. Wire

2012-02-16T00:45:00.001-08:00

Acorda Therapeutics, Inc. (NASDAQ: ACOR) is taking it right on the chin this morning.? The company announced that it has received a “refuse to file letter” from the FDA regarding its New Drug Application for Fampridine-SR.? Unfortunately, this is supposed to be for a novel therapy being developed to improve walking ability in people with multiple sclerosis.

The FDA raised "format issues" regarding the electronic submission, and it also requested that some of the data in the application be reformatted and that some additional supporting information be included in the filing. The good news is that the FDA did not request or recommend additional clinical or other studies.

Acorda’s CEO said it plans to address the issues raised in the FDA letter.? He also noted that the company believes Fampridine-SR “is potentially an important, first in class treatment option for people suffering with MS."

The company plans to request a meeting with FDA as soon as possible to discuss its comments on the NDA filing.

As with most actions, there is a reaction elsewhere.? Biogen Idec Inc. (NASDAQ: BIIB) is the TYSABRI play for MS, and its shares are up by 0.8% at $52.95 this morning.? These treatments may be a bit different in the fight against MS, and TYSABRI has had its own PML issues that has arguably kept the drug from being more widely used.

Acorda was expected to see total company revenues of about $60 million in 2009 and about $137 million in 2010.? It is a safe bet that this filing acceptance may push back at least some of the expected revenue.? The company had revenue of $47.8 million in 2008 and $39.4 million in 2007.? Shares are down 18% at $20.50 in early trading on almost 4-times volume.? Its 52-week trading range is $14.42 to $35.65.

Jon C. Ogg
March 31, 2009

3 Stocks Under $3 That Could Double in 2012

2012-02-15T15:48:00.001-08:00

For those of you who've followed my articles over the past year and change, you know I am more than willing to accept the risks and rewards associated with small and micro-cap stocks. The allure of small-cap investing is that it generally offers faster growth and a higher reward potential if you're correct. Unfortunately, with little tolerance for errors, traders are more than happy to punish small-caps more severely for their failures.

As I often like to do, I spent the extended weekend looking for three companies under $3 that have the tools to double from their current levels. I attempted to focus on sustainable growth as well as locate companies that would have the catalysts needed to move their stock price in 2012. Although these aren't formal buy recommendations, I feel this is a starting point from which you can research these companies further.

Here they are, in no particular order:

Aeterna Zentaris (Nasdaq: AEZS )
What would a bullish list of mine be without Aeterna Zentaris? 2012 is actually poised to be an exciting year for Aeterna with phase 3 clinical data due out on perifosine, its late-stage colorectal cancer and multiple myeloma experimental drug, by mid-year. Aeterna has licensed out perifosine to Keryx BioPharmaceuticals (Nasdaq: KERX ) in North America, but outside of two other licensing partnerships in South Korea and Japan, it still holds the rights to the drug worldwide. I would think approval of perifosine by the FDA should almost assuredly give the stock a huge boost from its current price under $1.70. With a strong pipeline of 11 molecules, the sky seems the limit for this micro-cap biotech.

Golden Star Resources (AMEX: GSS )
As my original selection for my 10 Small Caps to Rule Them All and a personal holding in my portfolio, suffice it to say I'm feeling pretty good about ! Golden S tar's prospects after a dismal 2011. With this gold miner actually trading below its book value and the prospects for its vast gold reserves at its Bogoso/Prestea mines improving, I feel 2012 could be the year that Golden Star breaks the trend of break-even results. If anything, with the company valued at a mere 5.5 times forward earnings, it deserves buyout consideration from one of the larger players in the sector. As long as the price of gold doesn't fall through the floor in 2012, Golden Star should have a fantastic year.

Sealy (NYSE: ZZ )
There's a lot of negativity surrounding this mattress maker, and by the looks of its burdensome $786 million in debt, I can see why. But, short-sellers may find themselves in a dangerous position this year, with Sealy reasonably profitable once again and growing revenue by 4% in its most recent quarter. The driving force behind Sealy's sales in 2012 should be consumers' willingness to accept price hikes, something they had been unwilling to do in previous years. With Sealy back to profitable and insiders buying shares, the recipe for a major short squeeze is possible. This could be a stock that gives investors a solid gain and a good night's sleep in 2012.

Foolish roundup
It wouldn't take much for these three stocks to double in 2012 if they can cast off the stigma of years of underperformance. All three have the proper catalysts in place; now let's see if they can all capitalize on them.

What's your take on these three tiny tots? Share your thoughts in the comments section below and consider adding these three stocks to your free and personalized watchlist so you can keep track of the latest news with each company.

Add Aeterna Zentaris to your watchlist.
Add Golden Star Resources to your watchlist.
Add Sealy to your watchlist.

Difference Between Successful And Squandered Time

2012-02-15T11:22:00.001-08:00

Additionally, you may spend very an amount of moment checking the numbers, customers, earnings. This could require you a lot of your time but it may impact your own feeling and performance if it's not necessarily your desired results and you will believe that you are in fact not really relocating towards this. You'll then begin to question the whole method and also mental poison will probably be getting closer.

Personally, I'll not necessarily consider the numbers each day in order to avoid frustration as there will be ups and downs upon everyday. As an alternative, I would give attention to my personal performance to ensure I have sent high quality information that will profit the readers. Several tips for operating intelligent and preserving long about unproductive action is to buy any timer and set that to an hour broke otherwise which is stifling an individual.

Target the certain activity that you're planning to focus on and remove the whole items that tend to be dropping your own focus. The definition of regarding effective time will probably be period that is immediately produced in order to earnings. This would mean that the particular action that you are carrying out may earn cash after working moment onto it.

Although you may study an e-book in which delivers the particular potent tricks of earning profits, it'll only acquire productive when you're actually carrying it out. This is very important because individuals tend to mix upward amongst reading through and carrying out. Brand new understanding is nothing if you didn't take real action towards that. You would need to plan on how you are going to carry out the strategy.

Successful moment would be making your own items, marketing and advertising, improving your marketing process, create company scalability and also setting up Joint venture offers. Those will be the processes that will generate income right after it is all totally done. There's also extremely successful instances for instanc! e genera te methods that induce products as well as producing techniques that market products.

Non- successful period would be like examining the particular stats, reading through email, talking to friends, studying as well as learning, and so forth. I feel not necessarily trying to say that you should not really spending some time to study as well as learn, you certainly need to spend considerable time researching and also understanding. Exactly that, that does not develop an enterprise then there is simply no revenue after carrying out that.

Stocks: Mixed signals out of Europe

2012-02-15T07:00:00.001-08:00

NEW YORK (CNNMoney) -- U.S. stocks were set to open little changed Tuesday as jittery investors were faced with mixed signals out of Europe amid continued anxiety over the continent's debt crisis.

On one hand, Moody's downgraded six eurozone countries -- Italy, Malta, Portugal, Slovakia, Slovenia and Spain -- late Monday, and the credit rating agency also warned that it may also cut the outlooks for Aaa-rated Austria, France and the United Kingdom to "negative."

On the other hand, investors may be heartened by the fact that Moody's didn't downgrade the eurozone's bailout fund, the European Financial Stability Fund.

Also on the bright side, investors showed strong demand for Italian debt in the latest round of auctions. German investor confidence also continued to rebound for a third straight month, rising to a 10-month high in February.

As investors digested the news, U.S. stock future edged higher. The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up between 0.1% and 0.2%. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

Meanwhile, investors remain on edge ahead of a meeting of eurozone finance ministers, who will consider the latest bailout for Greece when they meet Wednesday. The Greek Parliament voted early Monday to approve a package of austerity measures aimed at securing the bailout, worth €130 billion, from the European Union and the International Monetary Fund.

Stocks rose on the news Monday, but the gains were modest as worries about Greece's fate continue to dominate.

Our love-hate relationship with China

World markets: European stocks were higher in midday trading. Britain's FTSE 100 (UKX) rose 0.1% and the DAX (DAX) in Germany gained 0.4%, while France's CAC 40 (CAC40) added 0.3%.

Asian markets ended mixed. The Shanghai Composite (SHCOMP) fell 0.3% while the Hang Seng (HSI) in Hong Kong rose 0.2%. An unexpected step by the Bank of Jap! an to ea se its monetary policy sent the Nikkei (N225) higher by 0.6%.

Japan's central bank said it would expand its asset-purchase program to ¥65 trillion from ¥55 trillion by boosting its purchases of Japanese government bonds. The Bank of Japan also set an inflation target of 1%.

Later Tuesday, President Obama will welcome China's Vice President Xi Jinping for a two-day visit to Washington.

Economy: Retail sales for January are expected to have risen by 0.8%, according to a survey of economists by Briefing.com, after increasing by 0.1% the month prior.

December business inventories are expected to have increased by 0.5%, following a 0.3% increase in November.

On Capitol Hill, the Senate finance and budget committees will discuss President Obama's budget proposal

Companies: Shares of Michael Kors (KORS) popped after the fashion label posted better-than-expected fiscal third-quarter earnings and revenue, and also issued upbeat guidance for the fourth quarter.

Zipcar (ZIP), which made its stock market debut last April, posted a profit of $3.9 million, as revenues rose 21% to $62.9 million and total membership jumped 25% during the quarter.

After the closing bell, social gaming company Zynga (ZNGA) will post fourth- quarter results, its first report since its IPO in December.

Currencies and commodities: The dollar fell against the euro, but gained ground versus the British pound and Japanese yen.

Oil for March delivery rose 37 cents to $101.28 a barrel.

Gold futures for April delivery fell $5 to $1,719.90 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury was higher, with the yield falling to 1.97% from 1.99% late Monday.

Akamai Technologies, Inc Noticeable Stocks at - NASDAQ:AKAM

2012-02-15T02:28:00.001-08:00

Akamai Technologies, Inc (NASDAQ:AKAM) witnessed volume of 23.37 million shares during last trade however it holds an average trading capacity of 3.93 million shares. AKAM last trade opened at $27.50 reached intraday low of $27.50 and went +18.60% up to close at $31.63.

AKAM has intra-day market capitalization $5.68 billion and an enterprise value at $4.99 billion. Trailing twelve months price to sales ratio of the stock was 5.07 while price to book ratio in most recent quarter was 2.68. In profitability ratios, net profit margin in past twelve months appeared at 17.27% whereas operating profit margin for the same period at 26.68%.

The company made a return on asset of 8.18% in past twelve months and return on equity of 9.30% for similar period. In the period of trailing 12 months it generated revenue amounted to $1.12 billion gaining $6.05 revenue per share. Its year over year, quarterly growth of revenue was 11.20% holding 6.50% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $687.52 million cash in hand making cash per share at 3.83. The total debt was $0.00 billion. Moreover its current ratio according to same quarter results was 6.66 and book value per share was 11.82.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated -0.28% where the stock current price exhibited up beat from its 50 day moving average price of $28.22 and remained above from its 200 Day Moving Average price of $25.94.

AKAM holds 179.43 million outstanding shares with 174.09 million floating shares where insider possessed 3.31% and institutions kept 83.70%.

Obama¡¯s 2013 Budget Raises Taxes on Top Earners, Bolsters SEC Budget

2012-02-14T22:07:00.001-08:00

President Barack Obama's budget plan calls for more money for the SEC. (Photo: AP)

President Barack Obama on Monday released his 2013 budget to Congress, which includes boosting taxes for higher income earners as well as allocating more funds to the Securities and Exchange Commission.

In comments during the unveiling of his budget proposal at Northern Virginia Community College in Annandale, Va., Obama said that because the nation’s economy “is growing stronger and the recovery is speeding up” the nation “can’t go back to the policies that got us into this mess.” Within the last seven months, he said, the nation has added 3.7 million new jobs.

The Treasury Department released the same day its Greenbook detailing how the president’s FY2013 budget proposes tax policy to boost growth, create jobs and improve opportunity for the middle class. In releasing the details, Treasury Secretary Timothy Geithner said the budget proposals “strike the balance between supporting growth and laying out a responsible, long-term deficit reduction plan that simplifies the tax code and asks the most fortunate to pay their fair share.”

For starters, Obama said, Congress must stop taxes from going up for 160 million middle class Americans by extending the payroll tax cuts by the end of this month. “Congress needs to pass an extension of the payroll tax cuts without delay and without linking [passage of such cuts] to ideological side issues,” he said.

Obama said his budget plan is a blueprint for keeping the economy growing and proposes to partially do this by reducing the deficit by $4 trillion by 2022 by making “tough choices.” Obama added during his Monday remarks that the nation “can’t just cut our way to growth” rather “we have to make sure that everyone is paying their fair share.”

Obama’s plan would renew the Bush tax cuts for families earning less than $250,000 per year, but allow them to expire for those earning more. As Obama said in his State of the Union speech in early February, “Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2% of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households.”

The budget also calls for $1.5 trillion in tax increases over 10 years, which published reports have said Obama will campaign on as a way to pay for measures that would strengthen the economy in the short term while reducing the federal budget deficit in the long term.

As for the estate tax, Obama’s budget says that the administration “remains opposed to the extension of these high-income tax cuts past 2012 and supports the return of the estate tax exemption and rates to 2009 levels.” This, Obama said, would reduce the deficit by $968 billion over 10 years.

The president’s budget would also increase the SEC’s budget level in 2013 to $1.566 billion, which is an 18.5% increase over the SEC’s 2012 appropriation. The SEC says the boost in funds would allow the agency to add 676 professionals next year, a 15% increase in the agency’s staffing level over 2012. The request would also allow the agency to support critical new technology initiatives, including surveillance and risk analysis tools, better electronic discovery tools, and continued build out of the agency’s system to track tips, complaints and referrals.

Across the agency the president’s request would support the following: 191 new staff would be added to the SEC’s enforcement division—a boost from 1,354 positions now to 1,545 in 2013; 222 new staff would be added to the Office of Compliance Inspections and Examinations (OCIE)—bringing the current number of 968 examiners to 1,190; another 110 staff would be added to regulatory divisions to focus on areas such as money market funds.

Former Sen. Pete Domenici, R-N.M., and former White House Budget Director Alice Rivlin, co-chairmen of the Bipartisan Policy Center’s Debt Reduction Task Force, said in a statement that while the deficit reduction approach outlined in the president’s budget “is a serious step forward, more is needed.”

Rivlin and Domenici said that while they “applaud the president’s willingness to begin addressing the major drivers of our debt, including the unsustainable growth of our health care entitlement programs and need for additional revenues,” and while Obama’s budget stabilizes debt over the next decade, “the real problem arrives thereafter, as entitlement costs spiral out of control and revenues are inadequate to deal with a wave of retiring baby boomers.”

But most Republicans such as Sen. Bob Corker, R-Tenn., are opposed to any tax increase. Corker said in a statement on Monday that with “the Senate having failed to pass a budget in over 1,000 days and our national debt having reached the size of the U.S. economy,” the president’s 2013 budget proposal “vastly overstates its claims of reducing future deficits and fails to seriously address the biggest challenge facing our country, namely out-of-control spending in Washington that is generating record deficits and debt and leading to the insolvency of Social Security and Medicare. Our country faces difficult decisions regarding our unsustainable and growing level of debt, and it is incumbent upon the president and the eventual Republican nominee to lay out a valid course of action to address them.”

Corker went on to say that “The best thing we can do to create jobs and foster economic growth is to embrace tax reform that does away with most if not all of the $1.2 trillion in loopholes each year, lowers everyone’s rate, and broadens the base; reform Social Security and Medicare so they are solvent for the long haul; and put in place a serious plan for long-term deficit reduction.”

Senate Finance Committee Chairman Max Baucus, D-Mont., plans to hold a hearing on Tuesday to review the president’s FY2013 budget, with Geithner set to testify. The hearing, titled “The President’s Budget for Fiscal Year 2013,” will probe Geithner on how the president’s proposals will continue to spur job creation, drive the economic recovery forward, work to cut the deficit and streamline the tax code.

Several funds offer ways to play retail downturn with options

2012-02-14T13:08:00.001-08:00

On Friday the Street reacted violently to news from clothing retailer The Gap Inc. (NYSE: GPS), which slashed its profit outlook for the year due to an estimated 20% rise in costs per-unit. The company attributed those increased costs to surging cotton prices and warned that it would not be able to fully pass on these increased costs to consumers. The gloomy outlook caused GPS shares to plunge 17% in Friday trade.

As you might expect, the selling in such a high-profile retailer weighed down other stocks in the space, including fashion retailers Ann Taylor Stores (NYSE: ANN), Limited Brands (NYSE: LTD) and Urban Outfitters (NASDAQ: URBN). What do all three of these companies have in common? They are all components in the SPDR S&P Retail ETF (NYSE: XRT), an exchange-traded fund pegged to the S&P Retail Select Industry Index.

This broad-based measure of the retail segment doesn��t just hold companies that are ��ber-sensitive to rising commodity costs, yet consumers who patronize these retailers are feeling the purse-tightening sting of higher food and energy prices. Higher commodity costs for clothing sellers, combined with less money in consumers�� pockets, is a potent poison for the retail sector. However, that poison just might be a prescription for profits for intrepid bear-minded investors, especially for options trading investors.

A look at the XRT chart shows that over the past three months buyers have ruled the roost. The fund is up nearly 7% during that time, and if we take a step back we find that XRT has delivered a 33.4% gain over the past 12 months.

Yet if the problems at The Gap — along with the aggressive selloff in GPS — are a harbinge! r of thi ngs to come in the sector, we could see a significant selloff in the space. For options traders, buying the XRT Jun 51 Put could produce outstanding upside. The option jumped over 30% in Friday trade alone, and that shows you the power of betting on The Gap-down in the space.

Another way to play a potential fall in retail stocks is via the Retail HOLDRs (NYSE: RTH). This ETF also counts Gap and Limited Brands as part of its top holdings, as well as retail giants like Walmart (NYSE: WMT), Home Depot (NYSE: HD) and Amazon.com (NASDAQ: AMZN). These stocks all depend on vibrant consumer spending for their good fortune, and if that spending is significantly curtailed due to higher food and energy costs, it could put additional pressure on RTH. Taking advantage of that pressure with an option like the RTH Jun 110 Put, which rose 66% on Friday, could put traders in a very good mood.

If you aren��t an option player, then don��t worry, there��s an ETF out there designed to take advantage of the slide in the retail space, and it��s the Direxion Daily Retail Bear 2X Shares (NYSE: RETS). This fund is designed to deliver twice the inverse performance of the Russell 1000 Retail Index. That means if the Russell 1000 falls 2%, then RETS is designed to rise 4%. This leverage makes RETS a good trading tool for bearish retail investors looking to double-down on their bets against the sector.

At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.

Cash Loan Prior To Paying Perks

2012-02-14T09:03:00.001-08:00

Nowadays, many individuals experience hardships as well as problems because of economic crisis which we all experience today. By having a stable income and even a constant job is important now a days, but definitely sudden problems might come our way particularly involving some money. This is the main reason why many individuals are finding some sources of extra income or also use the filing of loan as an option, just for them to fill the sudden gap they needed.

Filing a loan is absolutely known as one of the easiest way that an individual can apply for, but with all the needed documents that is needed to be submitted and also the amount of time it consumes for the loan to be approved, it is absolutely not suitable to those who have a limited time particularly to those who need to use it in paying important bills for hospitalization and more. That is why more individuals also consider the use of the cash loan advance, for them to have an instant cash loan.

If you are wondering what is good about the cash loan advance or other known as the payday loan, well the answer is fast approval of loan. The advantage it gives to people who are really in need and do not have other options to obtain the amount of money they need in a specific span of time can use this method. In regular types of loan, the person will have to give different as well as numerous kinds of documents so that the lender or the bank would consider his loan. On the other hand the payday loan is very suitable for those who want to loan some money because it do not require credit history papers and bank records to be considered. And what makes this advance loan better is the fact that you can get a result even just after a day.

By the time you have submitted all the requirements such as the proof of having a job, back account, you latest paycheck, and also identification, the loan will be immediately reviewed. And once proven suitable and also given all they asked for, you will receive a confirmation about the approval of y! our loan and state information like the guidelines and even the ledger of interest rate to you. And you also need to know that this kind of loan also can be applied on the internet and the documents will be sent by fax or email depending on the bank’s or lender’s policy.

And if you already agreed to the given policy and guideline of cash loan advance, the money will be deposited right at your bank account. When it comes to the payment, mostly the money will be deducted straightaway from your given bank account when paycheck has arrived. And also this is why this kind of loan is names as payday loan. Also keep in mind to be always deliberate in choosing which to have a loan advance and also read all the regulations given all of the time.

You should find the best deal now with a tiny amount of time right now. Head on over to us 200 loans and find savings today.

Alpha Natural Resources Shares Plunged: What You Need to Know

2012-02-12T07:53:00.001-08:00

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of coal producer Alpha Natural Resources (NYSE: ANR ) woke up on the wrong side of the bed to start the week and fell 10% in trading today.

So what: There's no one news story hurting Alpha Natural today, instead, it's a range of things investors are selling on to start the week. First, the energy sector has been hit hard today because of concerns Europe's debt problems are far from over. There's also pessimism hanging over coal stocks after Goldman Sachs downgraded the sector from attractive to neutral last week. To top it off, last week a $200 million settlement over Massey's mine accident last year has hurt the company.

Now what: With stocks selling off across the board, Alpha Natural is being hit hard because it was especially weak after all of the bad news last week. Before jumping into coal stocks, I would look at energy's trend away from coal and toward natural gas and a variety of renewable energy sources as a big caution flag. I would much rather be in a growing part of the energy sector than in coal, which is very slowly going out of favor.

Interested in more info on Alpha Natural Resources? Add it to your watchlist by clicking here.

AMR Wants to Layoff 13,000, End Pensions

2012-02-10T20:15:00.001-08:00

AMR (AAMRQ), the parent of American Airlines, detailed its plans to emerge from bankruptcy today, saying it wants to lay off 13,000 people and end its defined pension plans. The company is asking all groups within the airline, including management, to cut 20% from costs.

“The plan targets an annual financial improvement of more than $3 billion by 2017, including $2 billion in cost savings and $1 billion in revenue enhancements.”

Instead of pensions, AMR would contribute to 401K’s. Certain operations may also be outsourced.

“These are painful decisions,” Chairman and CEO Tom Horton continued, “but they are essential to American’s future. We will emerge from our restructuring process as a leaner organization with fewer people, but we will also preserve tens of thousands of jobs that would have been lost if we had not embarked on this path and that’s a goal worth fighting for.”

PharMerica dives, Amylin surges after hours

2012-02-10T07:00:00.001-08:00

Shares of PharMerica Corp. fell sharply late Friday after a U.S. regulatory agency sought to block an acquisition bid for the pharmacy-management services firm, while Amylin Pharmaceuticals Inc. and Alkermes PLC climbed after the companies received regulatory approval of their diabetes treatment.

PharMerica Corp. PMC ?shares slid 14% at $12.30 after the U.S. Federal Trade Commission filed a complaint aimed at blocking Omnicare Inc.��s OCR ?bid for its rival. Omnicare��s late-traded shares shed 1.4% to $32.60 in scant volume.

The FTC said in a statement that it sees the combination of the two largest U.S. long-term care pharmacies as harmful to competition, and will enable Omnicare to raise the price of drugs for Medicare Part D consumers and others. The FTC also cited concerns by the Centers for Medicare & Medicaid Services, an agency of the Health and Human Services Department, that the deal if completed will likely result in higher reimbursement rates.

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The first post-Steve Jobs Macworld

A report from the 2012 Macworld developer's show in San Francisco. (Photo: Getty Images)

��If Omnicare is allowed to purchase its biggest and only national competitor, it will diminish competition and raise health-care costs �� leaving taxpayers and patients to foot the bill,�� said Richard Feinstein, director of the FTC��s bureau of competition, in a statement.

PharMerica rejected a $456 million bid from Omnicare in August, prompting Omnicare to take its offer d! irectly to PharMerica shareholders. Omnicare earlier Friday extended to Feb. 17 its tender offer to buy all of PharMerica��s shares for $15 each. As of Thursday, about 16% of all PharMerica��s outstanding shares had been tendered, according to Omnicare.

Amylin shares AMLN surged 17% to $14.25 and Alkermes shares ALKS gained 4.7% to $19.99. The biopharmaceutical companies said shortly before the start of the evening session that the U.S. Food and Drug Administration has approved Bydureon to treat Type 2 diabetes.

The newly approved drug is a once-weekly administered version of Amylin��s popular diabetes treatment Byetta. Bydureon will also carry a warning advising that it might cause acute pancreatitis or raise the risk of developing a certain type of thyroid cancer.

Amylin shares through Friday��s trading session had advanced almost 7% this year. Over the 12 months, they��ve fallen 26%. Alkermes shares had gained 10% in 2012, and have risen about 45% over the past year.

During the regular session, most U.S. stocks finished lower following a weaker-than-expected pace of growth in the U.S. economy during the fourth quarter. The economy expanded 2.8%, less than the 3% forecast by analysts surveyed by MarketWatch. Read about Friday's losses among U.S. stocks.

The Dow Jones Industrial Average DJIA ?fell 74 points, or 0.6%, at 12,660.46. The S&P 500 Index SPX fell 0.2% at 1,316.33. But th! e Nasdaq Composite Index COMP ?managed a 0.4% advance to 2,816.55.

Yahoo! Looking to Replace Some Board Members, Says WSJ

2012-02-10T02:55:00.001-08:00

The Wall Street Journal’s Gina Chon, Joann Lublin and Anupreeta Das this afternoon report that Yahoo! (YHOO) has retained an executive search firm to find new members for its board of directors, targeting especially long-time directors of the company, citing multiple anonymous sources.

The possible turn-over of the board follows the appointment by the company earlier this week of a new CEO, Scott Thompson, formerly with eBay (EBAY).

Yahoo! shares ended the day down 12 cents, or 0.8%, at $15.52, and they were down another 3 cents in late trading at $15.49.

Cheniere Energy: A Look Back at 2011

2012-02-09T08:49:00.001-08:00

The past year for Cheniere Energy (AMEX: LNG ) has been a little like an endless roller coaster. The stock is actually up since the year began, but if you've owned the stock the entire time you have to be suffering from motion sickness.

The stock has popped repeatedly on rumors and news of liquefied natural gas deals. But it has also plunged repeatedly as investors worry about mounting debt. Whether the stock was going up or down, there was really only one thing investors had their eyes on.

Two words...Sabine Pass
The entire year for Cheniere Energy has meant swinging from jubilation to despair over the future of Sabine Pass. The facility, originally built to import liquefied natural gas, or LNG, has been seeking approval to add an export facility and looking to find partners to trade with. The mere mention of a country interested in importing LNG from Cheniere would send shares skyrocketing.

This year ends with much more certainty than 2010 did for Cheniere's future and the future of Sabine Pass. The company has approval to expand into exports at Sabine Pass and has signed export deals that could secure its future. The deals really kicked off with an agreement with BG Gulf Coast LNG, a subsidiary of BG Group, for approximately 3.5 million tonnes per year in a 20-year deal. Gas Natural Fenosa and GAIL India followed with similar agreements.

There's only one problem with the grand plans Cheniere has in store: paying for it.

Cheniere has completed two public share offerings in the last six months for corporate purposes and is still seeking financing to complete the $4.5 billion to $5.0 billion project. Cheniere Energy Partners (NYSE: CQP ) will own the project, but financing it is another problem entirely.

The consolidated balance sheet of Cheniere Energy shows $2.5 b! illion i n long-term debt and much, much more will be needed to pay for the expansion. With the company reporting losses every quarter, the company is going to have to partner with someone to pay for it, diluting the ownership of Sabine Pass.

If all goes well, construction will begin some time in 2012 with operations beginning in 2015 at the very earliest. That's more than we knew to start the year, but it still leaves plenty of questions for 2012.

As natural gas production expands in the U.S. at firms such as Chesapeake Energy (NYSE: CHK ) , ExxonMobil (NYSE: XOM ) , and Range Resources (NYSE: RRC ) , the LNG business is in prime position to take advantage of the growth and become a major export. For Cheniere Energy, the only question is how it's going to pay for Sabine Pass and another LNG export facility being discussed in Corpus Christi, Texas.

Interested in reading more about Cheniere Energy? Click here to add it to My Watchlist to find all of our Foolish analysis on this stock.

Looking for a stock you can actually buy? Our analysts have selected a stock they believe is poised for tremendous growth in 2012. Find out which company in our new free report: "The Motley Fool's Top Stock for 2012." Thousands have already requested access, and it'll only be available for a limited time. Simply click here -- it's free."

Ron Paul: Las Vegas Here I Come!

2012-02-07T08:28:00.001-08:00

Ron Paul's campaign has gone dark in Florida.

Voters found the Texas Congressman absent from the Sunshine State on Friday as he had turned his attention away from the large and expensive primary, but a brief ride through Las Vegas, Nev. would reveal that Paul has ramped up his campaign there.

Nevada's Republican caucuses are on Feb. 4, which could be a grueling four-day turnaround from Florida for Gingrich and Romney. Rick Santorum has decided move on from Florida.

Ron Paul began to run ads more than a week ago in Nevada as "part of our delegate strategy to secure the Republican nomination," Jesse Benton, Paul campaign chairman, said in a Jan. 20 press statement. Benton said Nevada presents "opportunities for a strong top-three showing in their upcoming caucuses."

Nevada's race presents an advantageous race for Paul, whose loyal and eager supporters have the right attitude for its laborious caucus process.

"Caucuses are a much clearer sign of enthusiasm, and [Paul's] supporters clearly have the enthusiasm factor and the loyalty factor," says Robert Uithoven, a Nevada Republican political consultant. "They show up, they influence the discussion at these caucus events, and he tends to do much better in caucuses than he does in primaries."

Paul ran as the late front-runner in the Iowa caucuses until Rick Santorum stole his momentum in the final days of campaigning there. Santorum won an historic decision in Iowa while Paul slid to third.

Beyond that fact that Nevada is a caucus state, the Paul campaign feels confident there because the candidate can pick off crucial proportional delegates.

Since Paul finished second on the New Hampshire primary, his campaign has sent some 23 press statements about Nevada endorsements, events and community support. By comparison, Mitt Romney, who is the current front-runner in the state, has sent about four Nevada-themed emails.

This doesn't mean Paul is winning the ground in Nevada. Romney released this week a monster television ad campaign in the! state t hat attacks Newt Gingrich on the housing crisis -- Nevada has one of the worst foreclosure rates (1 in every 177 housing units) in the country -- and he hit radio airwaves two weeks ago.

Romney also has the most serious organization in Nevada as heavyweight political figures Lt. Gov. Brian Krolicki and Rep. Joe Heck (R., Nev.) have co-chaired his campaign there.

Paul's organization doesn't seem as flashy -- state chair Carl Bunce finished third in 2008 for a Nevada Congressional seat -- but the state has a formidable Libertarian population.

"This is the only state in the nation that when you go to vote for state-wide or federal office you can vote 'none of the above,'" says Jim Denton, a Nevada Republican political strategist. "And none of the above traditionally gets three or four percent of the vote for a national election here. ... Nevada has a very libertarian bent to it."

Paul finished second in the 2008 Nevada caucuses with 6,087, or 14% of the vote as he surpassed eventual Republican nominee John McCain by slightly more than 400 votes. The obstacle Paul faces though is Romney, who won a 2008 landslide in the state with 22,659, or 51% of the vote.

While Romney and Gingrich scramble to gather the most votes for Florida's winner-take-all primary, Paul will be canvasing Nevada in hopes to pick off a few more delegates. Second place seems like a realistic bet, but what about first place?

"I don't think he has a chance to win, but he will certainly have an influence on the outcome just given the amount of support he has here," Uithoven says.

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Tech Stocks: 2012¡äs Top Consumer Tech Gadgets

2012-02-07T03:24:00.001-08:00

It's too early to tell what will be the blockbuster tech product of 2012, but a few theories prevail.

According to CNBC's Chris Morris, ultrabooks are primed to be the must-have tech toy of 2012. They are super slim and super fast computers aimed at rivaling Apple's MacBook Air. The system is led by Intel.

But the interesting thing is that utlrabooks and game platforms aren't necessarily "new." Yes, 2012 models have fancy new improvements on the older models, but the simple existence of an older model implies that the market is already saturated with one version or another of the gadget.

And now that every tech object does everything, can there ever really be a "next best thing," or will it always be enhancements of the old?

"The move to a more multifunctional mobile world is consolidating electronics -- and that erects more hurdles for technologies hoping to open up new spaces," writes Morris.

A few exceptions
"Apple's Siri and Microsoft's Kinect peripheral for the Xbox 360 are opening up new avenues to search for content and control devices, and could be installed in more electronics."

This relatively new and extremely popular technology has yet to be integrated in the most common tech products like computers and televisions, but it's likely it will be.

"What needs to happen is these products need to find a niche or differentiate themselves," says Arnold, director of industry analysis for consumer tech at NPD. "It's hard to put out a product that's kind of like the Apple ecosystem, but lacks the apps and costs the same amount."

Business section: Investing ideas
Curious which tech stocks will outperform in 2012?

For ideas, we screened a universe of technology stocks with a positive yearly performance greater than 20%. We further screened for companies that have received net positive investments from institutional investors, like hedge funds, in the current q! uarter.< /p>

These tech stocks did well in 2011, and "big money" thinks 2012 will start kick off much the same way -- do you agree with this optimism? (Click here to access free, interactive tools to analyze these ideas.)

1. Silicon Motion Technology (Nasdaq: SIMO ) : Operates as a fabless semiconductor company. Market cap of $694.38M. Net institutional shares purchased over the current quarter at 1.6M, which is 5.88% of the company's 27.22M share float. Over the past year the stock value has increased by 371.64%.

2. FARO Technologies (Nasdaq: FARO ) : Designs, develops, manufactures, markets, and supports portable, software driven, 3-D measurement systems used in a range of manufacturing, industrial, building construction, and forensic applications. Market cap of $913.32M. Net institutional shares purchased over the current quarter at 496.5K, which is 3.08% of the company's 16.10M share float. Over the past year the stock value has increased by 81.61%.

3. Rightnow Technologies: Provides cloud-based customer experience software products and services. Market cap of $1.41B. Net institutional shares purchased over the current quarter at 1.4M, which is 5.03% of the company's 27.86M share float. Over the past year the stock value has increased by 57.73%.

4. Globecomm Systems: Provides satellite-based communications infrastructure solutions and services. Market cap of $321.64M. Net institutional shares purchased over the current quarter at 622.0K, which is 3.04% of the company's 20.48M share float. Over the past year the stock value has increased by 48.11%.

5. InfoSpace (Nasdaq: INSP ) : Develops search tools and technologies that assist consumers with finding content and information on the Internet. Market cap of $479.86M. Net institutional shares purchased over the current quarter at ! 1.7M, wh ich is 5.29% of the company's 32.13M share float. Over the past year the stock value has increased by 48.05%.

6. Cognex (Nasdaq: CGNX ) : Provides machine vision products that capture and analyze visual information to automate tasks, primarily in manufacturing processes. Market cap of $1.73B. Net institutional shares purchased over the current quarter at 2.2M, which is 5.85% of the company's 37.63M share float. Over the past year the stock value has increased by 43.78%.

7. The Ultimate Software Group: Designs, markets, implements, and supports unified human capital management (HCM) software-as-service (SaaS) solutions to businesses, providing a single source for comprehensive human resources, payroll, and talent management technology. Market cap of $1.79B. Net institutional shares purchased over the current quarter at 2.4M, which is 9.49% of the company's 25.29M share float. Over the past year the stock value has increased by 39.99%.

8. Cepheid (Nasdaq: CPHD ) : Develops, manufactures, and markets integrated systems for testing in the clinical market, as well as for application in legacy biothreat, industrial, and partner markets. Market cap of $2.16B. Net institutional shares purchased over the current quarter at 3.4M, which is 5.42% of the company's 62.68M share float. Over the past year the stock value has increased by 39.21%.

9. Sourcefire: Provides intelligent Cybersecurity solutions for information technology (IT); environments of commercial enterprises, such as health care, financial services, manufacturing, energy, education, retail, and telecommunications; and federal, state, and international government organizations worldwide. Market cap of $923.39M. Net institutional shares purchased over the current quarter at 3.3M, which is 11.99% of the company's 27.52M share float. Over the past year the stock value has increased by 33.! 22%.

10. OPNET Technologies: Provides software products and related services for managing applications and networks in the United States and internationally. Market cap of $786.27M. Net institutional shares purchased over the current quarter at 896.3K, which is 6.03% of the company's 14.87M share float. Over the past year the stock value has increased by 32.61%.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

Your browser does not support iframes.

Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Data sourced from Finviz.

Introducing the 24/7 Wall St. Wire

2012-02-06T23:16:00.001-08:00

FTSE	FTSE 100 Index	View Report	04:37 AM	6,312.50	+30.30	+0.48%
.GDAXI	DAXX Index	View Report	04:37 AM	6,864.00	+12.72	+0.19%
.FCHI	CAC 40 Index	View Report	04:37 AM	5,677.39	+15.14	+0.27%!
.SSMI	SMI-Index	View Report	04:22 AM	9,236.23	+18.36	+0.20%

Data from Reuters

Douglas A. McIntyre

Introducing the 24/7 Wall St. Wire

2012-02-05T20:26:00.001-08:00

Most of the recent news about Google (GOOG) has been bad. Online advertising posted a slow fourth quarter. That unexpectedly included both display ads and search marketing which has made Google one of the fastest growing large companies in America.? Several Wall St. analysts have commented that Google's search revenue’s rate of increase flattened out in January and February. Since the consensus among experts who cover the company is that revenue will rise 11% in the first quarter, a flat quarter would be devastating.

One of the things that Wall St. hates about Google is that it does one thing better than any other company in the world, but that is all it does. Google Chrome browser, Google Earth, Google Maps, and YouTube have really made much money. Some of the features have not produced any revenue at all. If its search operation falters, Google's run as the hottest tech company in the world could be over.

At this point, Google is a $22 billion company. If the search business drops to a growth rate of 10% a year, it will take three years for Google's sales to get to $30 billion. From the time Microsoft (MSFT) hit $22 billion in sales in 2000, it took the company less than three years to get to the $30 billion plateau. Then from 2002 to 2008, Microsoft's sales doubled. The software business not only grew. Until recently, it grew quickly.

The assumption about Google's prospects is that the search company is the next Microsoft. Twenty years ago, Microsoft had the hot hand. Sales of Windows and the company's business and server software were stunning. The margins on some of Microsoft's software franchises were over 70%. Then the hyper-growth stopped as the company's market penetration of PCs and servers reached a saturation point. Microsoft's stock never saw the level it hit in 2000 again. Without lucrative stock options, employees who wanted to make it rich moved to start-ups. The people who had been at the company thirty years were already rich. Many! of them retired.

About seven years after Microsoft's stock hit an all-time high, Google traded at $747, its peak. It now changes hands at $348, and if the company's sales can only grow at 10% or 15%, the stock is not going back above $700, ever.
The myth about companies like Microsoft and Google is that what they do is so important to business and consumers and so pervasive that the growth curve never flattens out. It does flatten at every company. No exceptions.
The press coverage of Google this week included a few pathetic announcements. Disney (DIS) will put some of its premium content on Google's YouTube. That should be good for $10 million in revenue a year. Google is starting a $100 million venture capital arm which will make it the 1,000th largest venture operation in the world. In other words, it will not be managing enough venture money to matter. Then word came out that Hewlett-Packard (HPQ) might use Google's operating system in some of its netbooks instead of Microsoft Windows. The important word in that report is "might." The news that Google is adding thousands of employees a quarter and that the founders have bought a 747 or an aircraft carrier probably hit a high point two years ago.

Saying that Google is doing poorly is not the same as saying that Microsoft is doing well. What matters to Microsoft is that Google becomes less of a threat each day as it fails in its diversification attempts. Google's cash flow does not continue to give it an almost limitless capital arsenal. Google has to consider cutting people in areas which will never be profitable. The entire ethos at Google is in the process of changing. Microsoft may be in third place in the search business, but it is in first place in software, which is still the larger industry.

Investors still ask Microsoft why it is in the video game business. There is not any reasonable answer. It is an awful business with poor margins. It has nothing to do with selling Windows. There may have been some idea that being in th! e hardwa re business would help the software business, but, if so, that idea didn't work out a long time ago.

With the perceived playing field that Microsoft and Google operate on a bit more level now, they can race after the one market that could be substantial for either one or both of them, which is providing software and search on mobile devices. The smartphone, which is really a PC for the pocket, is part of the one-billion-units-per-year-in-sales handset industry. Providing the operating software and other key components for wireless devices is almost certainly the next big thing for tech companies from Google to Yahoo (YHOO) to Microsoft to Adobe (ADBE). Trying to milk more money out of the PC gets harder and harder. For the largest companies in the industry, it has become a zero sum game.

For Google and Microsoft, the best days are over, unless one can dominate the handset world the way it did the universe of computers.

Douglas A. McIntyre

Introducing the 24/7 Wall St. Wire

2012-02-02T21:11:00.001-08:00

These are the top analyst upgrades and positive research calls we have seen from Wall Street this Friday morning with about two hours until the market opens:

Alcatel-Lucent (ALU) Raised to Outperform at Baird.
Allergan (AGN) Started as Buy at UBS.
AMAG Pharma (AMAG) Started as Buy at Citigroup.
Employers Holdings (EIG) Raised to Outperform at KBW.
JPMorgan Chase (JPM) Started as Outperform at Baird.
Logitech (LOGI) Raised to Neutral from Underperform at B of A Merrill.
McDonald’s (MCD) Raised to Outperform at Baird.
Palm (PALM) Raised to Outperform at RBC.

JON C. OGG

The 2012 State of the Union Tax Reforms That Could Affect You

2012-02-02T16:46:00.001-08:00

The Home Depot, Inc. (NYSE:HD) The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Home Depot stores sells an assortment of building materials, home improvement and lawn and garden products and provide a number of services. The Home Depot, Inc achieved its new 52 week high price of $42.05 where it was opened at $41.92 up 0.05 points or +0.12% by closing at $42.00. HD transacted shares during the day were over 12.07 million shares however it has an average volume of 12.15 million shares.

HD has intra-day market capitalization $64.75 billion and an enterprise value at $73.22 billion. Trailing twelve months price to sales ratio of the stock was 0.93 while price to book ratio in most recent quarter was 3.64. In profitability ratios, net profit margin in past twelve months appeared at 5.32% whereas operating profit margin for the same period at 9.21%.

The company made a return on asset of 9.61% in past twelve months and return on equity of 20.04% for similar period. In the period of trailing 12 months it generated revenue amounted to $69.51 billion gaining $43.87 revenue per share. Its year over year, quarterly growth of revenue was 4.40% holding 12.00% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $2.23 billion cash in hand making cash per share at 1.45. The total of $10.78 billion debt was there putting a total debt to equity ratio 60.68. Moreover its current ratio according to same quarter results was 1.46 and book value per share was 11.53.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated -1.04% where the stock current price exhibited up beat from its 50 day moving average price $38.63 and remained above from its 200 Day Moving Average price $35.35.

HD holds 1.54 billion outstanding shares with 1.53 billion floating shares where insider possessed! 0.11% a nd institutions kept 71.30%.

Why China Could Steal the Magic of Disney

2012-02-02T12:26:00.001-08:00

One of the world's most recognized brands is set to open up shop in China later this year. Walt Disney (NYSE: DIS ) plans to launch 25 to 40 Disney Stores in China by 2015. Rising wealth and a huge population make China a crucial market for Disney as it looks for fresh sources of revenue outside the United States and Europe. However, this growth strategy could cause major problems for the specialty retailer, because China is known for counterfeit goods.?

American companies in China face a costly battle to protect their intellectual-property rights. It's estimated that Chinese knock-offs cost foreign businesses around $20 billion in profits each year. Deregulation in the country has helped it become one of the fastest-growing economies in the world. However, this explosive growth can costs companies like Disney in terms of missed sales and possible damage to their brand names.

If you don't make it, fake it
Companies such as Apple (Nasdaq: AAPL ) spend billions of dollars each year building their brand, only to see that value ripped away by counterfeits. Last year, a fake Apple store in Kunming, China, made headlines around the world for its striking resemblance to the real Apple store. The counterfeit location was so convincing, in fact, that actual employees working for the imitation retailer thought they were working for Apple. Also consider that Apple's iPhone and iPad are some of the most pirated devices in China and the potential brand destruction is huge.

Selling the experience
Similar to Apple, the Disney Store relates to customers in a way that fosters the Disney brand experience. In 2010, the company launched its new interactive store design, which created an engaging retail experience.

Part of buying Disney merchandise is visiting the store. Kids can create custom rides featuring their favorite characters from the m! ovie Cars or step in front of a special princess-mirror that talks to them based on what merchandise is in their hand.

The magic of Disney will be available in 12 countries by the close of 2012. While the new Disney Store format is going to be difficult to mimic, it wouldn't be the first time we've seen Chinese counterfeiting replicate a seemingly irreplaceable brand experience.

Satisfying local demand
There's a lot at stake for Disney Stores as they enter the Asian market. On top of protecting their intellectual-property rights, businesses breaking into the Chinese marketplace face serious challenges involving cultural differences. Just look at what happened with American toymaker Mattel (NYSE: MAT ) .

Barbie closed her six-story flagship store in China last March, after lagging sales failed to gain speed. It's hard to imagine the world's biggest toymaker struggling to find customers in the heart of Shanghai. However, that's exactly what happened. Perhaps Disney learned something from Barbie's experience in the emerging market, as Disney's China stores plan to carry more localized products and fewer princess dolls. ?

At least for Disney, most people in China understand the brand and the merchandise behind it. Chinese demand is so strong, in fact, that a fake Magic Kingdom was created. Known as the Beijing Shijingshan Amusement Park, the illegitimate theme park even featured Disney's familiar characters. To counter, Disney's planning to open its famous Disneyland theme park in Shanghai -- bringing the authentic magic of Disney to the heart of China.

There's no doubt that China's a critical market for Disney to be in. However, the company's profits could be hurt if it's unable to stay a beat ahead of imitation retailers in the region. Luckily for investors, Disney isn't the only U.S.-based company trying to tap into emerging markets. Find out which domestic businesses are set to dominate emerging ma! rkets in this special free report, which is titled: "3 American Companies Set to Dominate the World."

Tablets: Citi Sees Apple Dominance Increase; China Beckons

2012-02-02T07:53:00.001-08:00

Citigroup’s Walter Pritchard, Richard Gardner, Mark Mahaney, and Glen Yeung late last night offered up an update to Citi’s thinking about tablet computers, based on a survey of 1,800 consumers in the U.S., the United Kingdom, and China conducted through online surveys in July and August.

Broad conclusions are that the tablet computer could be a personal computer replacement in China, though maybe not in developed markets, and that the dominance of Apple’s (AAPL) iPad has increased since Citi conducted a similar survey in November of last year.

Tablet computer ownership has jumped from 3% to 18% of survey respondents since the year-earlier study, they write. Interestingly, so has PC ownership: laptops are now owned by 81%, up from 62%. Smartphone use has gone from 28% to 59%.

The number of people intending to buy a tablet has risen from 14% to 31%. Though smartphone and laptop ownership intentions have also risen, albeit by a smaller proportion.

In China, 26% of the survey respondents indicate they are “very likely” to buy a tablet computer, way more than the 12% found in the U.S. and the U.K. And 21% say they already have a tablet, versus 17% in the U.S. and U.K.

Moreover, they write, “Those that plan to purchase tablet [in China] as likely to use for PC replacement as ‘toy / gadget’,” and “More likely to use tablet for broad set of activities, suggests tablet is less of a ‘niche’ device in China.”

Those considering a tablet now express a preference for Apple 77% of the time versus 73% back in November. Interest in Microsoft’s (MSFT) Windows on a tablet has slipped from 52% to 40%, while enthusiasm for Google’s (GOOG) “Android” software on a tablet is “stable” at 36% versus 38% a year earlier, the authors write.

T! he good news for the PC market is that there is no increase evident in cannibalization of PCs by tablets, the authors write. But the story is mixed: Tablet owners, they find, are more likely to buy a laptop in the next 12 months than are people who don’t yet have a laptop; but tablet owners are also “less likely to purchase traditional PC (laptop/desktop)” than people who don’t own a tablet.

The tablet is “even more of a ‘toy/gadget’ than a year ago,” they note, with 62% justifying purchase as such, up from 44% when it came out. Buying for work has risen, to 18% from 13%, while buying as a gift has dropped from 27% to 18%. Slightly more people are considering one now as a notebook or netbook replacement, while buying as a “starter” PC or a desktop replacement has declined as a percentage.

Price is still the “primary inhibitor” to tablet purchases, they note, but a “lack of functionality of the device” compared to PCs is also a factor. 39% of survey respondents said a tablet was “too expensive.”

As with notebook computers, the authors expect tablet purchasing to increase with lower prices. right now, the most prominent tablets, including the iPad, the Samsung Electronics (SSNLF) “Galaxy Tab” and others all start in a range of $399 to $499.

Out of 75 million tablet units that may be shipped in 2012, “We currently forecast 50 million iPads for, but Apple appears on track to sell >45M units in CY11, suggesting our estimate is likely conservative,” they write. “Every 1M iPads is worth $0.04-0.05 of incremental EPS (depending on mix).”

Despite a healthy growth outlook, the iPad faces the challenge of Windows running on tablets using chip designs based on ARM Holdings’s (ARMH) licensees (Nvidia (NVDA), etc.), and also from Amazon.com’s (AMZN) willingness to sel! l a tabl et computer for nothing.

Introducing the 24/7 Wall St. Wire

2012-02-01T18:37:00.001-08:00

We noticed how short sellers had increased their bets against banks and financials, even if this was right at the time that the big short squeeze came via a huge market rally.? But what is interesting is that the short sellers had actually been taking their bets down slightly in the online and discount brokerage firms.

Company Stock (Ticker)……………………… March 13… Change
E*TRADE Financial Corp. (ETFC)…………. 72,711,601? (-1.42%)
TD Ameritrade Holding Corp. (AMTD)….. 11,509,080? (-1.43%)
The Charles Schwab Corporation (SCHW) 33,356,727? (-3.09%)

What is interesting about the online and discount brokerage firms is that these have not risen as much as many of the leveraged banks and brokerage firms in this last rally.

JON C. OGG
March 25, 2009

Can China avoid a hard landing?

2012-02-01T14:02:00.001-08:00

NEW YORK (CNNMoney) -- The $64,000 question facing the global economy this year should be more accurately dubbed the 404,163 yuan question: Can China avoid a big slowdown in growth in 2012?

Investors, economists and even central bankers are all banking on China to keep expanding at a robust enough pace to ensure that the global economy hums along.

China stocks have gotten off to a strong start following a horrible 2011. The Shanghai Composite plunged more than 20% last year as China's central bank was busy raising interest rates and boosting reserve requirements in order to fight inflation and fears of a housing bubble.

But the Shanghai Composite (SHCOMP) is up about 4% this year, with most of the gains coming in the past few days. Hong Kong's Hang Seng (HSI) has also rebounded so far in 2012.

On Monday, Atlanta Federal Reserve President Dennis Lockhart, a voting member on the Fed's policy committee this year, told reporters following a speech that he was confident in China's ability to engineer a so-called soft landing.

Still, the latest figures regarding China's trade balance have to make you wonder if China really can pull off the proverbial Goldilocks trick (Not too hot. Not too cold. Just right.) with its economy.

While China's trade surplus surprisingly widened in December, much of that was due to a bigger-than-expected slowdown in imports. That's not a good sign. Export growth also slowed a bit, ! which ma kes sense given that China's biggest trading partner, Europe, is in a world of sovereign debt hurt.

If Europe gets worse before it gets better, that could be a setback for China. Nonetheless, some experts said that investors should take a step back and look at the big picture.

Chinese manufacturing expands slightly

China probably won't be able to continue reporting annual gross domestic product growth of around 9% to 10%, but it's unlikely to slide into the mid-single digits.

"China is in a more robust position than almost any global economy. Europe is a problem, but I wouldn't anticipate a major slowdown," said Richard Driver, currency analyst with Caxton FX in London. "I still think we are looking to China to lead the global recovery."

It also looks like China realizes that it has an important role in what I've dubbed the Great Global Easing, a coordinated effort by bankers around the globe to prevent Europe from becoming a Lehman-esque disaster.

China has already reversed course on one form of monetary tightening, agreeing to lower reserve requirements for banks at the end of November. That was the first cut since late 2008.

That should allay some fears about a real estate bubble. Ilan Goldfajn, chief economist at Itau BBA in Sao Paulo, Brazil, dismissed concerns that China's housing sector will go bust the way that the U.S. market did a few years ago.

In a China outlook report late last year, Goldfajn wrote that it looks like much of the tightening China did in 2011 is starting to work. Housing prices and sales are slowing, but not yet at an alarming rate.

"Real estate investments are cooling down and there are signs that the sector will decelerate further, though the process is largely induced by the government," he wrote. "In case of a sharp slowdown, with prices falling more than wished for, the government may reverse the process."

And with China due to report its latest inflation figures lat! er this week, there are hopes that pricing pressures -- for food as well as real estate -- have abated enough to allow the People's Bank of China (the Chinese equivalent of the Fed) to finally start lowering interest rates as well.

According to estimates from research firm High Frequency Economics, Chinese consumer prices are expected to have risen at an annual pace of 3.6% in December, compared to 4.2% in November. If inflation does continue to moderate, that's undeniably good news for Chinese consumers and the world.

China shifts gears from inflation to growth

"While China continues to be affected by uncertainty across the euro zone, we do not anticipate a 'hard-landing' scenario," said Dr. Peter Lee, head of the emerging markets strategy team with Mirae Asset Global Investments in New York. "There have been further indications that inflation in China is on a downward trajectory."

The main issue with China is that investors have to readjust their expectations. Going from, say, 10% growth to 7% growth is not a catastrophe. It's just realistic at a time when many major markets are all facing serious challenges.

Think about it. The U.S. is not healthy, yet it is the best of a sorry bunch compared to Europe and Japan. As long as these economies continue to languish, China is likely to do all it can to make sure that it too doesn't succumb to the malaise plaguing the developed world.

"Policymakers continue to reiterate their support for loosening monetary policy and promoting growth-oriented fiscal measures," Lee said.

Hopefully, he and others who remain bullish on China's prospects are right. The global economy can withstand a mild pullback in China, but it won't be able to hold up if there is a severe contraction.

Best of StockTwits: Yoga apparel maker Lululemon (LULU) isn't in a downward dog position. Shares surged after it lifted guidance Tuesday. And it's just one of several tarnished momentum stocks of 2011 that are makin! g a furi ous comeback this year.

Lobaeux: Significant upgrade in $LULU guidance, this may foretell other luxury brand's in this barbell economy. $LULU to 65 before pullback?

Not sure I'd go so far to call yoga pants luxury. And for what it's worth, Tiffany (TIF) cut guidance due to somewhat lackluster holiday sales. It cited "restrained spending" for jewelry. I discuss LULU and TIF more in this Buzz video.

CreateCapital: Every once in a while $GS must be right with a public call. Serves to confuse... $LULU.

Yup. To give credit where it's due, The Vampire Squid did add LULU to its "Conviction List" last week. But does that mean a strong sell recommendation is looming next week?

reformedbroker: Just when everyone piled into cardboard companies with dividends - it's the RETURN OF THE RED HOTS! $LULU $NFLX $FOSL $GMCR $MAKO

Heh. It does appear that risk is back in the on position so far in 2012. We'll see how long it lasts. I still like my stodgy dividend companies ...which brings me to this last interesting tidbit.

ivanhoff: The good, old boring railroad stocks near 52-week highs again:

I like seeing that. For one, Union Pacific (UNP, Fortune 500) and Norfolk Southern (NSC, Fortune 500) are solid dividend payers. And even in this app-crazy social media world we live in, you still need good old fashioned 19th century tech to transport stuff such as commodities and consumer goods. Healthy railroads could be good sign for the economy.

The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.

FAP Turbo – Does This Forex Robot Live Up to Its Expectations?

2012-02-01T09:47:00.001-08:00

Whаt is FAP Turbo?

It is one of the many Forex robots that traders use in their different Forex transactions these days. It is an automated system that gathers data and information from the Forex market and uses these to hеƖр you win more trades and investments. It can work without you having to monitor it day in and day out, because it was built to grant consumers with convenience and time flexibility. Yου do not even have to have expert knowledge on the subject matter to be аbƖе to make use of the robot software.

Hοw ԁοеѕ FAP Turbo work?

FAP Turbo is the newer and fresher version of the Forex Autopilot, another well renowned Forex robot that has already proven itself to be successful. Thе FAP Turbo generates analysis of real time Forex market data. It looks for trends that are promising and highly profita! ble. It constantly watches all the transactions it gets into and takes note if their performances. If it realizes that the fluctuation happening in the market is unfavorable, it automatically trades away the loser investments and ѕtаrtѕ a new process. It can handle manifold trades at a time.

Sіnсе it conducts trade actions by reacting to sudden changes in the Forex market, you can count on it to be аbƖе to rυn by itself anytime of the day. Yου can just leave it there while you go somewhere and do your οwn business. If you want, you can connect it to the internet 24 hours a day, seven days a week so that it has access to real time market data. If you prefer not to do thіѕ, some publishers grant a feature to make it rυn on their servers but with additional charges.

Whаt mаkеѕ FAP Turbo different from the other Forex robots?

Amongst all th ! 1; robot software programs sold today, the FAP Turbo is the most conservative. It can give you a higher winning rate because it only participates in trades when it is completely sure that you can earn money from thеm. It has high standards when reading market trends and patterns. It mаkеѕ sure that all standards are met before it mаkеѕ any kind of investments.

3 Stocks That Blew the Market Away

2012-02-01T05:13:00.001-08:00

Don't settle for ordinary quarterly reports.

I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. Leaving Wall Street's pros with stunned expressions can be a good thing. It usually means that the companies have more in the tank than analysts figured. Capital appreciation typically follows.

Let's take a look at a few companies that humbled the prognosticators over the past few trading days.

We can start with FedEx (NYSE: FDX ) . The speedy deliverer posted adjusted earnings of $1.57 a share in its latest quarter, ahead of both the $1.16 a share it rang up a year earlier and the $1.52 a share that investors were banking on.

FuelCell Energy (Nasdaq: FCEL ) also fueled past the pros. The power plant maker saw revenue climb 76% in its latest quarter, and it now has a product backlog of $131.8 million. However, for our purposes, FuelCell makes the cut by posting a quarterly deficit of $0.06 a share. Wall Street was braced for a loss of $0.07 a share. It may not seem like much of a beat, but FuelCell Energy has now posted narrower than projected losses in five consecutive quarters.

Speaking of smaller-than-expected losses, drugstore chain Rite Aid (NYSE: RAD ) posted a deficit of $0.06 a share. Wall Street figured that the beleaguered pharmacy operator would generate nearly twice the red ink that it actually did. Rite Aid also narrowed its projected deficit for the entire year. This may not look pretty, but it's the way that turnarounds start.

It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative experience for investors as the market rewards the overachievers. That's the kind of surprise that we look for?in the Rule Breakers newsletter service. Want in?! Check o ut a 30-day trial subscription. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.

Either way, come back next week to learn about more stocks that blew the market away in the coming days.

If you want to track these stocks to see if they come out ahead next quarter, add them to My Watchlist:

Add Rite?Aid to My Watchlist.
Add FedEx to My Watchlist.
Add FuelCell?Energy to My Watchlist.

1 Reason General Dynamics Looks Weak

2012-02-01T00:50:00.001-08:00

Margins matter. The more General Dynamics (NYSE: GD ) 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 General Dynamics' competitive position could be.

Here's the current margin snapshot for General Dynamics over the trailing 12 months: Gross margin is 11.7%, while operating margin is 11.7% and net margin is 7.7%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where General Dynamics 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 General Dynamics 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 18.3% and averaged 16.7%. Operating margin peaked at 12.5% and averaged 11.8%. Net margin peaked at 8.4% and averaged 7.9%.
TTM gross margin is 11.7%, 500 basis points worse than the five-year average. TTM operating margin is 11.7%, 10 basis points worse than the five-year average. TTM net margin is 7.7%, 20 basis points worse than the five-year average.

With recent TTM operating margins below historical averages, General Dynamics has some work to do.

If you take the time to read past the headlines and crack a filing now and then, you're probably ahead of 95% of the market's individual investors. To stay ahead, learn more about how I use analysis like this to help me uncover the best returns in the stock market. Got an opinion on the margins at General Dynamics? Let us know in the comments below.

Add General Dynamics to My Watchlist.

Seasonality might be the only thing pushing the market forward

2012-01-31T20:16:00.001-08:00

Investors are more uncertain about the stock market’s future today than at any other time during the past six years. Thirty-eight percent of investors polled by the American Association for Individual Investors are in the “neutral” camp — a six-year high. Unfortunately, uncertainty is no investment strategy. It takes fact-based conviction to succeed in investing. So what are the facts?

Volatility: Bad For Stocks

Volatility in the past six months has been off the charts. Volatility is more than just the performance of the Volatility Index or VIX. Volatility includes the volume and conviction associated with the recent roller coaster.

During the past six months, the Dow Jones has seen 38 (almost every third trading day) 90% days. A 90% up day means 90% or more of trading volume and point moves were to the upside, thus a 90% down day is exactly the opposite. Of those 38 90% days, 16 happened to be to the upside, 22 to the downside. That is highly unusual. I’ve read interpretations stating that high-volume, 90% up days (also called breadth explosions) are bullish for stocks.

Before drawing conclusions, let’s try to decipher the emotions that cause 90% days. Fear, panic and certain news events cause severe down days. Most up days seem to be caused by positive news rather than a fundamental change.

In summary, we have erratic news-based buying and panic-inspired selling with 58% of the 90% days being down days (Dec. 19 was the latest). This doesn’t look like the beginning of a new bull market to me.

Fundamentals: No Change

The U.S. financial system got into trouble because of falling real estate prices. The European financial system got hammered by sovereign debt defaults.

Now, U.S. real estate prices continue to fall, and entire European countries continue to struggle with pure survival. Neither the U.S. nor the European debt! crisis has been dealt with properly.

QE2 was all the rage at the beginning of 2011, but its effect was limited and short-lived. The European Central Bank’s charter prohibits outright QE where newly printed money is given to banks.

However, the ECB has expanded its repurchase operation to three years. European banks can borrow money from the ECB for 1%. With the borrowed money, banks can now do what the ECB isn’t allowed to — buy more toxic bonds from Greece, Italy, Spain, etc.

At first glance, this looks like a profitable symbiosis. Banks pay 1% and get paid 3%, 4% or more via their bonds. Unfortunately, banks forget that they should be concerned about the return of the money more than about the return on their money.

Banks buying more unstable sovereign debt is a short-term Band-Aid but a long-term recipe for disaster. The expiration date of the “long-term disaster” label might well run out early and bite banks and investors in the butt sooner than expected.

Keep It Simple

The past two years have made one thing painfully clear: I can’t predict the news and how the market reacts to news. Often there’s no rhyme and reason; that’s why I don’t even try.

What I can do is extrapolate the market’s signals via technical analysis. The chart below shows some of the trend lines and Fibonacci levels I follow. The S&P 500 shows remarkably consistent respect for trend lines, Fibonacci levels and other support/resistance points.

Earlier in 2011, the S&P got close to a multi-decade trend line that ran through 1,378 in May. Slightly lower was important Fibonacci resistance at 1,369. Additional Fibonacci resistance was found at 1,382.

Based on this resistance cluster,! the Apr il 3 ETF Profit Strategy update stated that “In terms of resistance levels, the 1,369-1,382 range is a strong candidate for a reversal of potentially historic proportions.”

The May top at 1,369-1,382 made sense because sentiment was very bullish and seasonality was turning bearish (sell in May, go away).

In October, once again seasonality, sentiment and technicals were lining up for a major buying opportunity. The Sept. 23 ETF Profit Strategy Newsletter predicted that “From its May high at 1,370 to its eventual low, the S&P will likely have lost about 300 points (22%). This kind of move validates a counter-trend rally. The plan is to square short positions and buy long positions around 1,088. The rally, once under way, will probably re-inspire a certain degree of confidence into the market before it runs out of steam. The most likely target for this rally is S&P 1,266-1,282.”

2012 Outlook

The outlook for 2012 doesn’t look good. Only some version of QE3 and more aggressive ECB intervention can mask up the technical damage visible on all major charts.

The rally from the October lows still is within the confines of a counter-trend rally and has yet to move above common Fibonacci resistance and two major trend lines.

Short-Term Outlook

The Dow Jones and S&P 500 have managed to exceed their early December highs while the Russell 2000 and particularly the Nasdaq are lagging behind.

The euro — the driving force behind the early 2011 stock and gold (NYSE:GLD) and silver (NYSE:SLV) rally — is remarkably weak and has not confirmed the S&P’s recent strength.

It seems like the generals (S&P and Dow) are marching ahead while the troops (Nasdaq and euro) are following behind. An army in disunity can’t conquer, and a fragmented market is a weak market.

Seasonality might push stocks a bit higher, but the seasonal tailwind will calm significantly in ea! rly 2012 . Sentiment once again is turning bullish (a contrarian indicator), and technicals are looking weak. It seems like another high-probability setup (like in May and October) is in the making.

The ETF Profit Strategy Newsletter provides a short-, mid- and long-term forecast along with the target level for this rally and the support that, once broken, will usher in the next leg of the bear market.

This article is brought to you by ETFguide.com. ETFguide is the information leader on exchange-traded funds because of its vendor-neutral approach and its progressive reporting style. Unique features include an ETF bookstore, a monthly e-mail newsletter, and subscription based ETF portfolios.

CEOs Claim Big Pay Days in 2011 Amidst Controversy

2012-01-31T11:21:00.001-08:00

Despite current controversy over executive pay, recent filings with the?Securities and Exchange Commission show that companies continue to hand out large compensation packages to their CEOs. Many top executives are now making upward of $50 million annually according to the publication. The companies justify the big payouts by saying it’s simply a cost of doing business and it’s necessary to attract and retain talent in their upper ranks, but other experts disagree.

USA Today quoted University of Toronto business school dean and author of?Fixing the Game: Bubbles, Crashes, and What Capitalism Can Learn from the NFL,?Roger Martin, who said, “Corporate boards are tone deaf to the times, as are CEOs who justify this much compensation.?Companies are fooling themselves if they say this is what’s required to retain or attract talent.” Eleanor Bloxham, head of corporate watchdog the Value Alliance said, “These kinds of things go on because too few people, especially institutional shareholders, are saying no,” per USA Today.

Big earning CEOs in 2011 include Apple’s?(NASDAQ:AAPL) Tim Cook who claimed $378 million in total compensation, Qualcomm’s?(NASDAQ:QCOM) Paul Jacobs at $50.6 million, Tyco International’s?(NYSE:TYC) Ed Breen bringing in $68.9 million, JCPenney’s?(NYSE:JCP) Ron Johnson with $51.5 million, and recent new comers to the $50 million plus club, Disney’s?(NYSE:DIS) Robert Iger and Starbuck’s (NASDAQ:SBUX) Howard Schultz. Iger’s newly negotiated contract with Disney increases his base salary 43% to at least $50 million annually through 2015. USA Today?quoted a statement by Disney that says the new contract is intended to “secure access to Iger’s leadership and experience for an extended period and to provide a path to succession with a smooth transition of! his dut ies and responsibilities.”

Oil Prices Hit New Record at $97 a Barrel as the Dollar Weakens and Commodities Continue to Soar

2012-01-31T07:55:00.001-08:00

President Obama delivered a State of the Union address Tuesday night that by the account of his own advisers is more campaign document than a plan for governing. He's running against Republicans in Congress, Reaganomics, wealthy bankers and inequality.

Normally a President at the start of his fourth year would be running on his record, accentuating the legislation he's passed. Mr. Obama can't do that with any specificity because the economic recovery has been so weak and the legislation he has passed is so unpopular. So last night he took credit for the shale gas revolution he had nothing to do with and proposed new policies to "spread the wealth around," as he famously told Joe the Plumber in 2008 before he took the words back. We thought he meant it then, and now he's admitting it.

Enlarge Image

Perhaps this will work if Republicans nominate a standard-bearer who is damaged, or too cautious or guilty to challenge this politics of envy. Mr. Obama clearly has Mitt Romney and his 14% effective tax rate in his sights (see the editorial nearby). The President will try to portray Mr. Romney as Mr. 1%, and if the Republican settles for defending the current tax code, he will lose. He needs a tax reform proposal of his own, as well as the self-confidence to argue for it in the same moral terms that Mr. Obama will attack him.

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European Pressphoto Agency

Meantime, as Mr. Obama begins his fourth year in power it's a good moment to recount the economic record that he'd rather not talk about. The President inherited a deep recession, but in political terms that should have been a blessing. History shows that the deeper the recession, the sharper the recovery, and Mr. Obama was poised to take credit for the economy's natural recuperative powers. Instead, we've had the weakest recovery since the Great Depression and stubbornly high joblessness.

The nearby chart compares rates of quarterly growth during the Reagan and Obama economic recoveries. The comparison is apt because both recoveries followed deep recessions in which the jobless rate reached more than 10%. Once the Reagan recovery got cooking, in 1983, growth stayed above 5% for 18 months and never fell below 3.3% for 13 consecutive quarters.

In the Obama recovery, growth has never exceeded 4% in any quarter and fell off markedly in mid-2010 through the third quarter of 2011. For the first nine months of 2011, growth averaged less than 1.2%. The economy finally picked up again in the fourth quarter, but still at a rate that is subpar for a recovery that long ago should have become robust and durable.

As he runs for re-election, Mr. Obama is trying to campaign as an incumbent who is striving to help the economy but has been stymied at every turn by Congress! . Not ev en MSNBC can believe this. For two years he had the largest Democratic majorities in Congress since the 1970s and achieved nearly everything he wanted.

The New Yorker magazine this week has posted on its website a 57-page memo that economic adviser Larry Summers wrote to Mr. Obama in December 2008. It lays out nearly his entire agenda for the "stimulus," reviving housing, the auto bailout and saving the financial industry. If anything, the memo overstates what would be needed to stabilize the financial panic, but nearly all of the stimulus spending priorities that the memo deemed "feasible" made it into law. They simply didn't work as promised.

The Pelosi Congress also passed ObamaCare, Dodd-Frank, cash for clunkers, the housing tax credit, and much more. The only Obama priority it didn't pass was cap-and-trade, which was killed by Senate Democrats.

Mr. Obama's regulators also currently have some 149 major rules underway, which are those that cost more than $100 million. The 112th Congress hasn't been able to kill a single major rule. The most it has been able to do is extend the Bush tax rates—which helped the economy by avoiding a tax shock—and slow the rate of increase in federal spending. This President has been "obstructed" less than anyone since LBJ.

Mr. Obama clearly has a spring in his step these days, figuring that the public hates Congress and thinks Republicans run it, that the GOP will field a weak presidential candidate, and that he can fool the public into believing only Mitt Romney's taxes will rise if Mr. Obama wins a second term. He has only one big obstacle: his record.

Printed in The Wall Street Journal, page 16

Why the Dow Surged This Week

2012-01-29T19:38:00.001-08:00

For the third straight week, the market is up. The Dow (INDEX: ^DJI ) rose 2.4% while the broader S&P 500 (INDEX: ^GSPC ) and Nasdaq (INDEX: ^IXIC ) rose 2.0% and 2.8%.

And now that earnings season is in full swing, we can point to actual company actions for driving the stock market rather than vague musings on Europe, unemployment, or "the January Effect."

All 30 stocks in the Dow were up this week, but tech and banking dominated. The top seven gainers were in those two sectors:

Company	Weekly Stock Price Move
Bank of America (NYSE: BAC )	7.0%
Hewlett-Packard (NYSE: HPQ )	6.2%
IBM	5.2%
Microsoft	5.2%
Intel	4.9%
Cisco	4.5%
JPMorgan Chase	4.0%

Of these, Bank of America, IBM, Microsoft, and Intel all reported this week �C on Thursday, to be precise. Click on the links to get the rundowns.

In banking, generally favorable reports from Bank of America, Goldman Sachs, and Morgan Stanley? gave hope to a beaten-down sector. Keep in mind that these reports weren't especially strong on an absolute basis. Rather, any decent news in banking sends shares skyward ! because expectations are so low. Nowhere is this more true than Bank of America. Hence its Dow-leading position this week.

Meanwhile, in tech, the company-specific good news at IBM, Microsoft, and Intel drowned out the market's poor reaction to non-Dow techie Google's earnings (Google was down 6.2% this week). We see that in Hewlett-Packard, whose business model is more tied to the fates of IBM, Microsoft, and Intel than it is to Google.?

It's fun to look at the weekly (and daily �� and hourly) market news, but remember to keep your perspective and invest for the long term (years and decades). If you're looking for a long-term stock pick, our chief investment officer has identified his No. 1 stock for the next year. Find out which stock he likes in our brand-new report: "The Motley Fool's Top Stock for 2012." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this legendary company.

Why Kodak Needs to Declare Bankruptcy

2012-01-29T14:57:00.001-08:00

It's never a happy time when a cultural icon is brought to its knees. However, in the case of photography pioneer Eastman Kodak (NYSE: EK ) , it's the only play left in the book. Long gone are the days of photographic film rolls, and with them the reputation of a once-great company. After frantic attempts to sell or license the company's vast portfolio of patents, it seems bankruptcy is the only option.

Enough's enough
It's not surprising that Kodak hasn't been able to lock down a buyer for its large collection of digital patents. With the company's grim financial condition all over the news, potential bidders would rather wait for a more favorable bankruptcy auction of the patents. For this reason, Kodak filing for protection under Chapter 11 is not only imminent, but also necessary.

Big names such as Apple (Nasdaq: AAPL ) may be interested in Kodak's suite of patents, which could be valued between $2 billion and $3 billion. Apple buying the rights to these patents would be somewhat of a "Kodak moment," as Kodak once filed a suit against the Mac-maker for patent infringement.

Apple wasn't the only patent litigation filed by Kodak. In recent years it's seemed Kodak's new business model was to leverage their intellectual property by winning patent cases against industry peers. Unfortunately that strategy hasn't panned out that well.

Fading away
As my Foolish colleague John Maxfield discussed, Kodak's fall from grace is the result of the innovator's dilemma, a misfortune in which a company can no longer keep up with disruptive technologies in its industry. However, the lack of product innovation wasn't the only drain on the company. Failure to successfully reinvent itself in new industries like printers was also at fault.

By filing for bankruptcy, Kodak will undoubtedly sell its nearly 1,100 patents and close the final ch! apter in its more than a century-long history. Is seeking protection under Chapter 11 a card Kodak should have played years ago? Let us know your thoughts on the matter in the comments section below.

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Maxygen Surges 23% on Sale of Astellas Joint Venture Stake

2012-01-29T10:30:00.001-08:00

Maxygen Inc. (NASDAQ: MAXY) shares surged to close at $5.14 today, gaining more than 23% on the day after the company announced that it would be selling its stake in Maxygen Astellas Joint Venture to Astellas Pharma Inc. The deal is likely to be worth $76 million. The venture had been designed to develop protein based therapy for treating autoimmune conditions. The drugs are to be designed to reduce immune system activity. Both the companies started their collaboration in 2008 and formed the joint venture, Perseid in 2009. The companies are looking to finalize the deal during the second quarter of the year. With this deal, Astellas will get almost 100% stake in the candidate.

Maxygen recently announced its fourth-quarter and full-year results. The company reported its net income for the fourth quarter at $69.9 million, up from a loss of $3.7 million a year earlier. The company announced its quarterly revenue at $5.9 million, down from $13.3 million in revenue it had reported a year earlier. Maxygen also announced its full year results. The company reported its net income for the full year at $68.9 million. It had incurred a loss of $32.4 million in the previous year.

Maxygen is a biopharmaceutical firm involved in the development of improved versions of protein drugs. The company makes use of its MolecularBreedign directed evolution technology platform. It also uses its protein modification expertise. The company also works in the field of biocatalytic process technologies for industrial chemical applications. The company was formed in 1996 and is based out of California.

The company stock is currently trading at $5.05, up 22.87% from its previous close. Maxygen stock opened at $5.42 and touched the high of $5.45. The stock's lowest price in today's session is $4.94. The company stock's EPS is $2.35. The company stock has traded in the range of $3.75 and $7.19 during th! e past 5 2 weeks. The company's market cap is $151.89 million and its P/E ratio is 2.15.

Maxygen reported its total current assets at $141.918 million for the year ending Dec 31, 2010. Its total assets were worth $146.986 million for the same time period. Maxygen had valued its total liabilities at $20.883 million. The company had reported its revenue at $37.601 million and its gross profit for the year at $37.601 million. Maxygen' net income for the year stood at $68.884 million.

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Tesla Plunges 19%, Up 7% in After Hours: 2 Engineers Quit, Says Bloomberg

2012-01-28T16:42:00.001-08:00

Shares of electric car maker Tesla Motors (TSLA) plunged $5.46, or 19%, to $22.79, late in today’s session but regained 7% in late trading after the company said its head of engineering, Peter Rawlinson, for chief of chassis engineering for its “Model S” line, Nick Sampson, quit, as related by Bloomberg’s Alan Ohnsman.

Rawlinson departed to attend to personal matters, the company said, and Sampson is said to have “transitioned” away from working on the Model S, Ohnsman notes.

Top 10 Advantages of Tv Rentals

2012-01-28T12:23:00.001-08:00

Have you been in search of a brand-new Tv? If that’s the case, have you thought about leasing as opposed to purchasing? Listed here are 10 benefits that Tv rentals have over buying a brand new set. –You could possibly possess the capacity to rent a Tv that’s larger and than you may have had the opportunity to spend for ought to you be buying. –Christmas is generally an pricey time, so even once you would love or call for a brand new Tv, you may not be able to spend out for just 1. By leasing, you’ll get your brand-new Television above time to look at some Xmas telly. –Should you purchase a Television, then understand you’d like some thing just just a little bigger or with superior specs, it is past also far. Obtaining a Tv rental deal, you will most most likely possess the ability to change your contract.

–Should you obtain a Television, then have an understanding of you would like some thing just just a little bigger or with superior specs, it is previous as well far. Obtaining a Tv rental package deal, you will most likely possess the ability to change your contract. –If you’re keen to buy a Tv quicker or later, but your own personal residence your skills on is presently a bit as well expensive, you might would like to rent for almost any yr immediately after which flip to buy once the cost to purchase has fallen.

–If you are a student who need a Television for almost any couple of decades, but cannot pay for to buy, leasing may be the great temporary situation. –If you might be residing in shared accommodation and don’t want the irritation of splitting the price of the tv simply to face a problem by what connected to it whenever you amongst you moves out, some pot rental agreement may be the perfect situation.

–Not just that, nonetheless, you may possess the capability to rent every little thing that you will demand to the new dwelling, for instance automated washers, hairdryers, dish washers plus ! consider ably far more. In this way, you are able to bundle your brand-new household from the first day and merely stagger your purchases to anytime you definitely can manage them. –The issue with obtaining a wonderful new Television is you often want to include additional home amusement facilities to create the most of it. That is frequently costly, whereas you are able to rent all of them and obtain an excellent program within your dwelling straightaway.

–The problem with acquiring a excellent new Television is you regularly wish to add further property amusement amenities to create probably the most of it. That is typically pricey, while you are able to lease all of them and obtain an superb program within your household straightaway. –In the complete with the rental contract, you may locate the use of allowing it to operate on as well as your existing Television, or you may start a brand-new contract obtaining a extra up-to-date model. For those who feel Tv rental may well be the ideal solution for you personally, then you may wish to begin searching for an ideal set. And once you are leasing a Television, you might need to look at other merchandise you could possibly minimize by leasing.

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Michele Bachmann Awaits House Opponent

2012-01-27T09:44:00.001-08:00

Rep. Michele Bachmann (R., Minn.), a former GOP presidential hopeful, announced Wednesday she would seek a fourth term in Congress, but she likely will have to wait for Minnesota redistricting before a Democratic opponent emerges.

The announcement came three weeks after the congresswoman officially suspended her campaign because of an unimpressive sixth-place finish in the Iowa caucuses, a race in which she hoped a strong result would catapult her chances for the GOP nomination.

"I'm looking forward to coming back and bringing a strong, powerful voice to Washington, D.C.," Bachmann said, according to The Associated Press.

No Democratic opponents have yet emerged because they await formal redistricting by the state legislature, Ken Martin, chairman of Minnesota's Democratic-Farmer Labor Party, told the AP.

Bachmann won Minnesota's sixth district in the 2010 elections against Democrat Tarryl Clark, 52.5% to 39.8%.

Of Bachmann's three races, her narrowest victory came in 2008 when she beat Democrat Elwyn Tinklenberg, 46% to 43%, in a race that had been deemed a toss-up ahead of the election.

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Why the Street Should Expect Big Things From Zoltek

2012-01-27T05:12:00.001-08:00

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Zoltek (Nasdaq: ZOLT ) out of line?

To figure that out, start by comparing the company's inventory growth to sales growth. How is Zoltek doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 18.1%, and inventory increased 26%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 11.8%, and inventory dropped 2.1%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. W! e call i t "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at Zoltek? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 73.7%. On a sequential-quarter basis, work-in-progress inventory was also the fastest-growing segment, up 12.9%. Although Zoltek shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide the market's best returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

I run these quick inventory checks every quarter. T! o stay o n top of inventory and other tell-tale metrics at your favorite companies, add them to your free watchlist, and we'll deliver our latest coverage right to your inbox.

Add Zoltek ?to My Watchlist.

Banks and other financial stocks skidding after mediocre earnings

2012-01-27T00:49:00.001-08:00

Stocks jumped Tuesday morning, supposedly because China’s Q4 GDP growth rate slowed to 8.9%. Slower is better, we’re told, because it means Beijing can ease credit and inflate the great Chinese bubble again.

Exactly how this logic works is a bit hard to fathom. But investors didn’t have much time to fathom it yesterday: The stock market’s burst of strength began to fade shortly before 10 a.m. and continued to tail off until late in the session. The Dow closed 60 points in the green, noticeably stronger in percentage terms than the broader list of stocks.

Beneath the surface, a number of cracks are starting to appear in the market’s armor. For example, banks and other financial stocks had mounted a hopeful rally during the New Year’s first few sessions, but a mediocre earnings report from JPMorgan Chase (NYSE:JPM) on Friday and a somber one from Citigroup (NYSE:C) yesterday sent the financials skidding again.

I still think JPM is unnaturally cheap at just over 7 times estimated 2012 earnings. I’m also delighted that Jamie Dimon’s empire bought back $950 milllion worth of stock in the December quarter — a modest dividend hike seems probable at the March 2012 directors’ meeting.

However, I also recognize that we’re in a touchy period for the global economy and financial system. Accordingly, I’m trimming my buy limit on Morgan — one of the world’s strongest banks and an undoubted survivor — to $37 (from $40 previously).

At current levels, I’m projecting a total return of 15% to 35% in the year ahead for JPM. That’s an abnormally wide spread, reflecting the exceptional degree of uncertainty we’re grappling with.

Another curiosity, and a potential “crack,” has showed up lately in the roster of new highs and lows. Since Jan. 3, despite an upward tilt in the headline ! indexes, the number of individual Big Board stocks touching new 52-week highs has dropped more than 30%, while the number of new lows has risen.

So there’s plenty of reason for caution amid the Street’s euphoria. I wouldn’t put on any additional shorts or other hedges just yet. However, I would be very sparing with new purchases.

Values Still Look Pretty Good With Gold Mining Shares

The sector has gotten roughed up in the past two sessions as operational problems emerged at several companies — including Hecla Mining (NYSE:HL), a silver producer, and Kinross Gold (NYSE:KGC).

Newmont Mining (NYSE:NEM) also disappointed some of its fans yesterday by projecting somewhat lower copper production in 2012 and higher operating costs than the consensus had expected. Copper, though, accounts for only about 8% of NEM’s sales.

Thus, we’re not talking about an earth-shaking change in the company’s profit outlook. At about 10 times estimated 2012 earnings, Newmont sports limited downside and a potential total return of 25% or more in the next 12 months.

Pay up to $62.80 for NEM.

HP's PC Spin in Doubt: Deals to Watch

2012-01-26T20:28:00.001-08:00

Hewlett Packard(HP) may step back from its controversial personal computer spinoff plan as management works feverishly on definitive plan for the company, the Wall Street Journal reported Wednesday.

Earlier in October, HP took a controlling stake in British software giant Autonomy moving the company closer to completion of its $10.3 billion purchase announced in mid-August. It was all part of former CEO Leo Apotheker's ambitious attempt to turn the company from a PC maker to a services and software specialist more in the mold of IBM(IBM)andSAP(SAP), which he led for over two years. The strategy was to spin out its computers and handset divisions in favor of Autonomy's software capabilities that could be grown into existing security and services business lines.

The company is currently reorganizing after firing CEO's Mark Hurd and Leo Apotheker in the past 12 months. After the board approved Apotheker's plan, he was then ousted and replaced with former EBay (EBAY)CEO Meg Whitman. The extent of H.P.'s new strategy to follow Apotheker's plan or revert back to its traditional operating structure is yet to be fully determined under Whitman's leadership. Last week, she said at a Fortune Magazine panel that the company would make a decision by the end of October.

In her introductory call, Whitman made it clear that while the Palo Alto, California -based company had a new leader was in place, HP would likely follow Apotheker's plan announced in mid-August. "I think the strategy is right. The initiatives that we undertook on August 18 are right," said Whitman. Responding to analysts questions about how long it will take for HP to solidify a strategy Whitman said, "The best thing we can do is get to a decision on PSG as fast as possible. This dec! ision, i t's not like fine wine. It's not going to get better with age."

She did however say that she would take a "hard look" at the overall strategy. Later in the call introducing Whitman as CEO, chairman of HP's board Ray Lane downplayed the notion that the company would transform itself. "Hopefully, we'll see a bigger software portfolio and we'll see more value-added services at HP, but we have $120 billion of hardware business that we care dearly about," Lane said.

Last week in a story about whether HP could make a transition to a services and software focus from PC's and hardware, Richard Kugele an analyst at Needham & co said, "To be the company Leo envisioned, you would need to do many acquisitions." Later that week, at a forum to discuss California's economic future, Whitman said that the company is definitively not looking to make more near-term acquisitions. In TheStreet's October 4th interview with Kugele, he said, "I suspect that if clearer heads prevail, the business may be kept (albeit now weakened). webOS should find a home because I feel it was a good OS, just needed some investment and MANY more apps."

In an October statement announcing its control of Autonomy, HP said the company will be run independently and its founder and CEO Mike Lynch will continue to head the Cambridge, England -based software-maker, reporting directly to Whitman. The decision gives HP and Whitman room to continue its P.C. operations and continue with the merger. Part of the reason Autonomy is running independently for now is only roughly 2% of current HP revenue comes from the software related businesses it's looking to build. With Autonomy revenue added, software will only be bolstered by roughly $1 billion or roughly 3% of overall revenue, a small piece of larger $100 billion-plus annual revenue that come from its overall PC, printing and server and network businesses.

HP shares are down nearly 40% year to date and ! are one of the worst performers in the Dow Jones Industrial Average -- They've risen since Whitman's introduction at the end of September.

Liz Claiborne (LIZ) said Wednesday it is selling off several of its namesake and Monet brands to J.C. Penney(JCP), its Dana Buchman line to Kohl's(KSS) and its Kensie brand to Bluestar Alliance. The sales will net the New York -based company $328 million in cash.

Shares of Liz jumped over 40% on the announcement and as high as $7.24 in early trading.

For J.C. Penney and its $267 million Liz Claiborne and Monet purchase, it's an accelerated push to build classic fashion lines as newly hired CEO Ron Johnson prepares to replace current chief executive Mike Ullman, who is stepping down in November. Johnson left his post as a retail executive at Apple(AAPL) in June to help the struggling retailer revamp sales and he was given a seat on the J.C Penney's board of directors in August ahead of taking the company reigns this fall.

In a press release announcing the business line sales, Liz Claiborne said it will now focus on its Kate Spade, Juicy Couture and Lucky Brands. The company also agreed with Donna Karan International to terminate its DKNY Jeans and DKNY Active licenses.

Earlier this year, Liz Claiborne sold fragrance brands to Elizabeth Arden and its Mexx business young women's business line to Gores Group, netting $58.4 and $85 million in cash respectively.

Of today's sales, Liz Claiborne Chief Executive William L. McComb, Chief said, "Consistent with our stated goal to de-lever the Company, these proceeds will be used to further reduce debt." The company said as a result of the sales it expects its debt to fall to as low as $270 million --current debt levels are $768 million according to quarterly filings as of July 2nd.

The company also lowered its 2011 earnings guidance, saying earnings before int! erest, t axes, depreciation and amortization will fall to as low as $80 million from prior expectations as high as $120 million. It also slashed its 2012 outlook by as much as 40% to $130 million from $220 million.

The lower earnings guidance and brand sales come at a time of great uncertainty for retailers. CEO McComb said in his announcement of brand sales that, "At the close of these transactions, at a time when most economists in the world are now agreeing that major European and the US markets are facing significant risks of another recession, we will be a more appropriately levered, more capital efficient, growth-oriented company."

The New York based company has seen its operating losses accelerate from $8.5 million to $64.5 million this year. It's also failed to be profitable in any year since 2006 and hasn't had a profitable quarter since this time in 2007.

Liz Claiborne shares are down nearly 8% this year to $6.60 and have been cut by over 75% since reaching highs of above $45 a share in 2007. Over that time, its annual revenue has fallen from levels as high $4.4 billion to $2.5 billion.

When all of the brand sales are completed and its namesake brand is absorbed into J.C. Penney, the company will find a new name to reflect its remaining Juicy Couture, Lucky Brand, and Kate Spade lines. Referring to remaining fashion lines, McComb said, "we are exploring options for a new corporate name that will better reflect our keen focus on building and growing our three global lifestyle brands.

In a separate press release announcing the purchase, incoming chief executive Ron Johnson said that the Liz Claiborne and Monet brands will bolster J.C. Penney, "we seek to be part of our customers' everyday lives, ensuring that we offer the brands that are most relevant to them is a crucial component in transforming JCPenney into America's favorite store. The brands we are acquiring hold tremendous appeal for our customers! ."

Wh en Johnson becomes CEO of the Plano, Texas -based company in November, he'll hope to bolster J.C. Penney's stock price, which has lagged the S&P 500 and is down nearly 7% year to date. The company, like other retailers Saks(SKS)and J. Crew has also been hit hard by the financial crisis and recession. Currently its share price of just over $30 is a fraction of highs above $80 a share reached in 2007.

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After Loss, Romney to Release Tax Returns

2012-01-26T15:54:00.001-08:00

So, show of hands: who really thought that former Massachusetts Governor and current GOP presidential hopeful Mitt Romney would win South Carolina?

My hand will stay firmly by my side. I expected Romney to lose South Carolina. I also still fully expect him to get the nod from the party at the GOP Convention despite noting earlier that no Republican candidate for President has ever failed to win South Carolina and gone on to secure the nomination. I think he’s the exception. (No, this isn’t an endorsement, it’s an educated guess.)

I know South Carolina pretty well. I grew up in North Carolina (much of my family still remains) and spent many a summer in Greenville; I’ve been to family reunions in Georgetown; been porch sitting in Rock Hill and wandered around the naval base in Charleston with my brother. And yes, I once bought a Fiat in Pumpkintown. With my background, I feel confident that I easily could rattle off ten reasons why Romney lost South Carolina.

Not releasing his tax returns isn’t one of them.

Despite that fact, which I’m sure his handlers already know, Romney is still getting grief about not releasing his returns. This week, apparently still reeling after the primary loss to former House Speaker Newt Gingrich, Romney is going to do something he’s never done before: make his tax returns public. He plans to release his 2010 returns and offer an estimate of what he’ll pay in 2011 (someone get that tax preparer a redeye quick).

I don’t think it will make much difference in the race at this point – which is exactly why Romney is releasing the returns. This is his Obama birth certificate moment. I think Romney realizes that voters are going to talk about those returns until he makes them public. The more that voters focus on the lack of returns, the worse he’s going to look. Romney’s supporters want to move the discussion along.

So what w! ill thos e tax returns reveal? My guess is nothing we haven’t heard already. We know that he’s rich. Crazy rich. We know that he has offshore accounts. And we know that he pays “about 15%” in taxes.

What else is there to see? I’m sure there’s something there to pick on. But I don’t think we’re going to see any game changing information in those returns. But it sure makes good fodder for Gingrich, who told NBC’s David Gregory:

If there are things in there that can be used against him, we better know it before the nomination. The last thing Republicans want to do is nominate somebody that collapses in September.

You know, like an old ethics violation related to federal tax laws.

Good thing Gingrich is just looking out for the party.

All that said, when the returns are released later this week, I think we’re going to see a flurry of activity that turns out to be pretty much a non-event. I think, by midweek, we’ll all be saying, “There’s nothing to see here, folks, let’s move along.”

Selective Supply Drops Could Push Oil Prices Higher

2012-01-26T11:34:00.000-08:00

In the calculus of oil prices, Wall St. often factors in supply interruptions that could come from political instability and terrorism. But, what if selective large reserves simply start to run out, without much warning?

Mexico’s largest oil field, one of the biggest in the the world, suffered a huge drop in production during 2006. According to industry experts, the decline will continue.

The news comes as somewhat of a surprise. And, the supply and demand metrics that move oil prices are often unsettled by unexpected news.

Watch for the price of oil to move higher, and, if the news from Mexico gets worse, cost-per-barrel could sit at a higher level for awhile.

Douglas A. McIntyre can be reached at douglasacmcintyre@247wallst.com.

The Real Reason Daily Deals Are Doomed

2012-01-26T06:58:00.001-08:00

Groupon's (Nasdaq: GRPN ) daily deals are a dream for consumers. Who wouldn't want half off on dinner at that kitschy restaurant across town or a round of golf on the cheap with your buddies? But for the small businesses Groupon needs as partners, the benefits aren't as clear.

A study by Rice University has found that 32% of businesses surveyed lost money on the Groupon promotion, and more than 40% said they would not partner with Groupon again. Another study said that only 36% of deal users spent beyond the value of the deal. Nearly all businesses need repeat customers to survive, and the daily-deals model is no different. While Groupon's promotion with Gap (NYSE: GPS ) attracted a lot of attention, daily-deal sites generally rely on small business partners such as restaurants or service businesses like salons and spas so they can offer their customers a variety of new and unique experiences.

Race to the bottom
There are several problems businesses have with the Groupon model. The deal is supposed to serve as an ad for the business, attracting new customers, but just one in five daily-deal users comes back. The deal undermines the regular full-price-paying customers the partnering businesses already have, essentially encouraging customers they don't want and discouraging the ones they do, or gives a discount to a customer who would have paid full price. Many retailers think they are only creating an expectation of continued discounting, and the new customers will just hop on to the next deal when they're done with theirs. The deals seem to instill loyalty to the website offering them instead of the end businesses, and retailers feel pressure to offer the discounts to match their competitors, even though the end result seems to be squeezing margins across participating businesses.

Two's company, 300's a crowd
Currently, there are ! more tha n 300 daily-deal sites, with heavyweights such as Microsoft (Nasdaq: MSFT ) , Google (Nasdaq: GOOG ) , and Amazon.com (Nasdaq: AMZN ) now gunning for a piece of the action. Some consumers have complained of "deal fatigue" from the constant barrage of emails, and 87% said they would purchase more deals if they were conveniently located on one site. The industry has virtually no barriers to entry, and it seems as if Groupon's lead has come from its clever marketing, first-mover advantage, and huge sales force, which eats up so much of its budget that it's still operating at a loss. Consolidation seems to be inevitable, and innovation will be necessary for the industry to be sustainable.

Foolish takeaway
With Internet powerhouses like Facebook bowing out of the daily-deal racket and Yelp cutting its deals sales staff in half, it looks as if the boom may be over. Investors in deal sites Travelzoo (Nasdaq: TZOO ) and OpenTable (Nasdaq: OPEN ) don't need be reminded of that, as both stocks are down more than 60% from their 2011 highs. Until someone can develop a daily-deals model that benefits all parties involved, it looks as if this phenomenon is just the latest version of that old adage: "If it's too good to be true, it probably is."

The daily-deals industry is a quickly changing one. Keep up with any developments in the battle over discounts by adding these companies to My Watchlist.

Add Travelzoo to My Watchlist.
Add OpenTable to My Watchlist.
Add Microsoft to My Watchlist.
Add Groupon to My Watchlist.
Add Gap to My Watchlist.
Add Google to My Watchlist.
Add Amazon.com to My Watchlist.

8 Best Travel Apps for Domestic and International Travel

2012-01-26T03:00:00.001-08:00

Before you pack your holiday bags for a trip to visit your folks or for a European Getaway, the travel aficianados have advice for what to pack in your smallest piece of luggage ��your smartphone. The apps recommended by prolific freelance travel and food writer, Gayle Keck, will help you phone home, find your destination, secure restaurant reservations and translate languages. The staff at travel book publisher, Avalon Travel, has app recommendations for self-guided walking tours, finding rest areas on car trips, navigating most airports, keeping your air itinerary handy and getting around subway systems.

Gayle Keck ( a freelance travel and food writer) Recommends:

-Skype? (iOS, Blackberry, Android and Select Verizon phones)
“If you’re traveling internationally it’s indispensible if you have access to Wi-Fi. There are incredible cost-savings. I’ve usually had good luck with call quality.”

-Google Maps (Android, Blackberry, iOS, Nokia or S60 and Windows Phone)
“If I’m driving in the US, I look to see what the traffic is like. I may switch my route based on traffic.”

-OpenTable (Android, Blackberry, iOS, Windows Phone and webOS)
“If I already know of a restaurant in a particular location, it’s a fairly easy way to make a reservation on the fly.”

-Google Translate (iOS and Android)
“It’s good enough to get by when you can’t find someone who speaks English. You can type in whole sentences.”

Favorite Apps of Avalon Travel Books Staff:

-Truck Stops USA (iOS)
“During our cross-country move I used the Truck Stops USA app for finding rest areas, services, weigh stations (had to take the moving truck through the scales), local fuel prices, and current weather conditions. It was pretty ! handy ha ving all that information in a single app.” �� Gayle Hart, Web Content Editor.

-Metro Paris Metro Subway (iOS)
“If you��re planning a trip to Paris, the Metro Paris Subway app is a must! There are similar apps for the London Tube and the NYC subway, but the Metro Paris one is the best.” �� Sierra Machado, Publishing Assistant.

-Trip It (iOS, Android Blackberry and Windows Phone 7) and GateGuru (iOS and Android)
“When I��m taking a vacation and flying to a destination, I like keeping all my itinerary information in one place with the Trip It app. I also love Gate Guru for finding what shops, restaurants, and service options a particular airport has. It’s prefect for layovers and long breaks between flight connections because I don’t have to hike the entire airport with luggage in tow.” �� Gayle Hart, Web Content Editor.

-Rick Steves’ Walks & Tours apps (audio tours on Android and iOS, mapped tours iOS)
Want an accomplished tour guide on your trip without constant supervision? Avalon Travel author Rick Steves shows you around Europe with audio tours of cities and attractions. An interactive walking tour where you can click on tourist attractions and restaurants for detailed information is available for iOS users only.

Don’t see your phone or phone’s operating system on your favorite app? Search for a similar app compatible with your smartphone. You may find an app with a similar name by the same app creator.

For more vacation articles from Mint.com, checkout Day Trips: The New Cheap Vacation, Getting Home for the Holidays on a Budget and Money-Saving Tools for Travelers.

Egypt Scales Back Debt Sale, Supports Pound

2012-01-25T13:31:00.001-08:00

The debt sale scheduled for Monday in Egypt that had been postponed from last week took place, but on a smaller scale than originally anticipated due to low demand. And on Tuesday, the country’s central bank took steps to support the Egyptian pound, but would not specify how much they had devoted to the effort.

According to Reuters, the debt sale previously reported by AdvisorOne had been planned for more than 15 billion Egyptian pounds ($2.53 billion) of short-term debt overall, with 8 billion pounds of that in 91-day bills on the market. However, when the sale actually took place, it was scaled back to only 7 billion pounds, according to an Egyptian banker. Other categories of debt were also reduced because of "subdued demand" in the marketplace. Another dealer said that he had not seen any foreign demand in the market at all.

Meanwhile, the Egyptian pound, which had fallen to its lowest level in 6 years, finally got some support from the country’s central bank, which intervened in the market to boost the currency against the dollar. Hisham Ramirez, the deputy governor of the central bank, was quoted in the report as saying, "We intervened in the market." He would not specify to what extent.

The nation’s stock market is expected to reopen next week, and the action was seen as an advance to restore confidence in the currency before that happens. Economist John Sfakianakis of Banque Saudi Fransi said in a statement that he had not expected the bank to intervene before it had dropped to 6 pounds to the dollar; on Monday, before the intervention, it had closed at 5.952 to the dollar.

"They are doing it earlier than the market had expected, which shows that they are taking seriously the issue of pound depreciation and they will intervene at any cost," he said.

Leading Indicators Actually Lagging

2012-01-25T08:43:00.001-08:00

The Conference Board has just released the “Leading Economic Indicators” for the month of February.? While these arguably don’t really lead, there was another drop to -0.4% for February.? Both components, the “coincident” and “lagging” indicators, came in at the same -0.4% reading.? Estimates from Bloomberg were for a reading of -0.6%.? This data follows a slight increase in January, although that was revised slightly lower.

The CEI drop was driven by continued declines in employment and industrial production. The drop in the LEI continued the general downward trend that began in July 2007, but what interesting is that the data noted that its rate of decline has moderated slightly in recent months.? Before getting too exited about the data, the Conference Board also noted that the six-month decline in the CEI is the largest since 1975 and the data suggests that the economic recession that began in December 2007 will continue in the near term.

The funniest thing to consider about the “Leading Indicators” is the name.? Most of the data is actually old and most of the data is actually known before the numbers actually get published.

The S&P 500 Index was at 735.09 as of the close of February 27.? Even with the drop this morning, that index sits at 790.64.? That is a gain of 7%, but the index sits 16% above the low close of 676.53 on March 9.?? Hence, Leading Indicators look like they are lagging, at least in part.

JON C. OGG

Schlumberger Fourth-Quarter Profit Rises as Drilling Booms

2012-01-25T04:21:00.001-08:00

Schlumberger Ltd. (SLB), the world��slargest oilfield-services provider, said fourth-quarter profitrose 36 percent as higher crude prices pushed oil companies toboost exploration and production spending around the world.

Net income rose to $1.41 billion, or $1.05 a share, from$1.04 billion, or 76 cents, a year earlier, Houston- and Paris-based Schlumberger said today in a statement. Excluding chargesrelated to a write-off of Libya assets, the company earned $1.11a share, beating by 2 cents the average of 32 analyst estimatescompiled by Bloomberg. Sales climbed 21 percent to $11 billion.

Oil prices advanced 10 percent to average $94.06 a barrelon the New York Mercantile Exchange in the quarter, up from$85.24 a year earlier. The average number of active oil andnatural-gas rigs around the world rose 15 percent in the finalthree months of the year to 3,676, Baker Hughes Inc. data show.

Revenue in its North America region, which excludes Mexico,climbed 6 percent to $3.52 billion while the operating profitmargin was $947 million, or 27 percent.

��North America was really the good upside surprise,�� John Keller, an analyst at Stephens Inc. in Houston, who rates theshares at ��overweight�� and owns none, said in a telephoneinterview. ��The return of deepwater rigs in the Gulf certainlyadded a tailwind during the quarter.�� Keller had estimatedrevenue of $3.45 billion and a 25 percent margin.

Schlumberger reported its best North American marginperformance in more than four years, according to data compiledby Bloomberg.

2012 Outlook

��Uncertainty remains over the outlook for 2012 due to thecontinuing sovereign debt crisis in Europe which places downwardpressure on GDP and oil demand forecasts,�� Chief ExecutiveOfficer Paal Kibsgaard said in the statement. ��Against thisbackdrop, we are planning for growth in 2012, while building therequired flexibility into our resource plans.��

Kibsgaard��s comments were cautious, Bill Herbert, ananalyst at Simmons &! ; Co. in Houston, wrote today in a note toclients.

��Management made a reference to ��building the requiredflexibility into�� its ��resource plans�� in the event of industrydislocations,�� he wrote. ��This is code for throttling back onspending, at a minimum, if warranted.��

The company is expected to earn net income of $1.10 pershare in the first quarter, according to the average of 17analyst estimates compiled by Bloomberg. Kibsgaard toldinvestors on a conference call that consensus estimates are onthe ��high side.��

��Added Uncertainty��

��There is some added uncertainty going into Q1 now interms of the impact of the accelerating drop in North Americanshale-gas activity,�� Kibsgaard said on the call. ��Generally, Iwould say the current consensus is somewhat on the optimisticside.��

Explorers and producers around the world are expected toboost annual spending by 9 percent this year to a record $595billion, James Crandell and Omar Nokta, managing directors atinvestment bank Dahlman Rose & Co., wrote in a Jan. 3 note.

Schlumberger helps companies drill for oil and gas,including using hydraulic fracturing to free the fuel from shaleformations.

Gulf of Mexico

The average number of rigs active in the Gulf of Mexicoclimbed 68 percent to 37 in the fourth quarter, compared with 22a year earlier, according to Baker Hughes.

In the U.S. onshore market, the largest region in the worldfor hydraulic fracturing work, Stephens analysts project an 8percent growth in the number of drilling rigs working this yearcompared with 2011.

Schlumberger rose 1.3 percent to close at $73.80 in NewYork. The shares, which have 31 buy ratings from analysts, fiveholds and one sell, rose 14 percent during the quarter.

CFP Board Mulls Changes to Disciplinary Approach on Bankruptcies

2012-01-24T19:38:00.001-08:00

The Certified Financial Planner Board of Standards announced Wednesday that it’s seeking comments by Feb. 17 on whether to modify the way the board handles bankruptcy filings by CFPs.

As it stands now, the CFP Board asks CFP candidates on their initial application if they’ve filed for bankruptcy to determine whether they are “fit for CFP certification,” and in the case of a CFP professional, to determine whether the bankruptcy filing resulted from conduct that would warrant discipline. CFP professionals are asked on their CFP renewal application, which they must fill out every two years, whether they have filed for bankruptcy.

The CFP Board says that it proposes replacing the current disciplinary approach to cases involving a "single bankruptcy filing (bankruptcy-only cases)" with a "non-disciplinary, disclosure-oriented approach" in which the public has access to notice of the bankruptcy filing to assist it in making an informed decision when evaluating whether to work with a CFP professional who has filed for bankruptcy.

Under the proposed approach, the CFP Board says that it “would no longer investigate and the Disciplinary and Ethics Commission would no longer hear bankruptcy-only cases.”

Rather, CFP Board would “verify the bankruptcy filing and note it in the individual’s public profile,” which is available through the Find a CFP Professional and/or Verify an Individual’s CFP Certification search functions on CFP Board’s website, as well as through responses CFP Board provides to individuals who contact CFP Board regarding an individual’s certification status.

This disclosure of the bankruptcy in an individual’s public profile, the CFP Board says, “would continue for 10 years from the date CFP Board is notified of the bankruptcy, whether through disclosure by the individual or discovery by CFP Board.”

The proposed approach of noting all bankruptcies filed in the past five years in an individual’s public profile “is aligned with its mission to benefit the public,” CFP Board says, and that this proposed approach will benefit CFP professionals and CFP candidates “because they will no longer be subject to potential discipline in bankruptcy-only cases.”

Final proposed amendments will be presented to the Board of Directors for review and approval in March.

Mexican Stocks, Silver, and Real Estate – A Ten Year Review

2012-01-24T14:58:00.001-08:00

The Consumer Price Indexes (CPI) program of the US Department of Labor produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services in the United States. Tracking the CPI data began in 1913 and by 1983, inflation had reached 100%. Therefore, today most all data is calculated using a 1983 base of 100. For example, a CPI of 215.3 in 2009 indicates 115.3% inflation since 1983. Below is the inflation calculator based on data provided by the U.S. Department of Labor Bureau of Labor Statistics showing inflation during the past decade:

CPI Inflation Calculator
If in 2008 (enter year)
I purchased an item for $100
then in 1998 (enter year)
that same item would cost:$132.09
Rate of inflation change:32.1%

The above calculator shows that if you put $100 under your mattress ten years ago it, through the inflation of goods and services during the past decade, it would be worth $76 ($100/1.32) today, i.e., worth 76% of its original value or a loss of 24% in terms of 1998 purchasing power.

In order to hedge against inflation, many advisors suggest that you buy various commodities, oil and gas, foreign dollars, Real Estate Investment Trusts (REITS), Treasury Inflation-Protected Securities (TIPS), gold, and silver, etc. All of these investment vehicles are now available through Exchange Traded Funds (ETF’s) where you don’t have to take physical possession of the commodities; for relatively small investments, gold and silver in the form of bullion or coins is readily available and simple to purchase and hold. All of these forms of hedges against inflation can be excellent, however for the purpose of this article, we’ll concentrate on silver.

Silver has always been one of Mexico’s major export materials; in fact, until just a few years ago, Mexico was the largest producer and exporter of silver in the world. Let’s assume ten years ago, instead of putting your $100 un! der the mattress, you bought $100 worth of silver selling at approximately $5.50/ounce. Today, at $16.65/ounce, you can sell your silver and enjoy a gain of more than 200%, i.e., your $100 investment is now worth $303 resulting in a 1999 purchasing power of $230 (76% of $303); not bad! If you’re concerned that the recent increase in silver prices is only a temporary spike, it should be known that silver was selling at $20/ounce in 1981 and when the Hunt brothers were speculating in 1980, it was driven up to over $50/ounce; now that was a spike! The last time silver was selling for $16.65/ounce was in 1981. Taking the CPI inflation index of 2.37 (1981 to 2009) into consideration, $16.65/ounce in 1981 was equivalent to almost $40/ounce (2.37 X $16.65) in today’s money and therefore it’s not too difficult to imagine a much further increase in silver prices! This logic is further reinforced when you take into consideration the weakening dollar forecast for the near future. (see ten year silver price graph below)

The world’s leading miner and producer of silver is the Pan American Silver Corp. (PAAS), headquartered in Vancouver, B.C. This publicly traded company has silver mines throughout Latin America with a couple of its largest mines in Mexico. In fact, one of these two mines is their only open pit mine and the other huge Mexican mine, located north east of Puerto Vallarta, has been producing the purest silver of all their mines since 1929. The graph below reveals the PAAS stock performance during the past ten years.

Next, let’s analyze the performance of the US stock market during the same ten year time frame. If your $100 had been invested in SPY, the S&P 500 ETF, it would be worth 80 dollars today per the graph below. Let’s take it a step further and adjust for inflation; that $80 would have only $61 (76% of $80) of 1999 purchasing power. Yes, that’s correct; if you were invested in the US stock market and your return was better than average, you’! ;ve lost almost 40% of the purchasing power that you had ten years ago!

Now, let’s compare the ten year performance of the Mexican stock market (Bolsa) to the US stock market. If you had purchased EWW, the ETF basket of Mexican stocks, in 1999, you would have realized a 150% gain and your initial investment would now be valued at $250, with a 1999 purchasing power of $190 (76% of $250); pretty decent, especially when you compare it to the $61 left from investing in the SPY’s!

You’ll immediately see how much the ETF basket of Mexican stocks (EWW) and the Pan American Silver Corp. (PAAS) stock had appreciated in value through 2007 and then fell precipitously in the second half of 2008. More importantly, you can see how both are recovering beautifully as the world recovers from the global recession. Comparing both of these Mexico related stocks to the SPY’s; you may never again want to invest your $100 in a US related stock! Assuming that the global economy continues its gradual recovery, it seems quite apparent from extrapolating the curves below that Mexican stocks and silver are very attractive areas for investing a portion of your portfolio at this time. It’s amazing to see how closely the EWW and the PAAS stock prices have correlated over the past decade!

Finally, let’s look at Mexican real estate. Along the prime region of the Mexican Riviera, property values have tripled from 1999 to 2008 (we don’t have any empirical data but after being invested in the real estate market in Puerto Vallarta for more than a quarter of a century, we can state it as a fact; some properties have quadrupled in value!), after which they have remained flat to perhaps dropping by as much as 20%. Therefore, a real estate investment of $100 in 1999 was worth about $300 in 2008. Assuming a depreciation of $60 (20% of $300) over the past 18 months, it’s now worth $240. In terms of 1999 purchasing power, it’s worth $182 (76% of $240); about the same as EWW and PAAS, ! not as m uch as silver, but a whole lot more fun than owning either! When comparing these facts and figures to the $61 of 1999 purchasing power remaining from the $100 invested in the SPY’s, it’s truly disheartening to think of those of you that were fully invested through IRA’s or 401k’s during the past decade. Fortunately, it’s not too late to recoup your losses; in fact, the time could never be better!

The recent drop in Mexican real estate values was caused mainly by the global recession; however, the recent border town drug cartel war news (1,200 miles between PV and Juarez!) and the swine flu scare (three confirmed cases in PV!) contributed significantly to the local real estate recession. The border town drug cartel war and the swine flu scare effects will vanish over time and in all probability, the property values will soon recover to their 2008 highs. Unlike the 20% property value drop in the US, there are virtually no foreclosures dragging down the housing values in Mexico. The housing crisis in the US will probably continue for a couple more years resulting in further erosion of home values by an additional 10-20%. Currently, millions of Real Estate Owned (REO-lender owned) properties exist in the US but you won’t find any in Mexico!

In summarizing, $100 placed under the mattress ten years ago has a 1999 value of $76 today, $61 if in the S&P 500 SPY’s, $230 if in silver, $190 if in the Mexican EWW fund, $185 if in the silver company PAAS, and $182 if in Mexican real estate. Regardless of where in Mexico you had invested your $100 ten years ago, whether it was in Mexican silver, stocks, or real estate, you’ve now got at least three times as much as you would have had if you had invested in the S&P 500 SPY’s! So, here we are in 2009; the question is where best to invest your remaining money after the fiasco of the past decade? With real estate prices 20% off recent highs, long term mortgages of 50% (or more) available in Mexico,! and man y developers willing to short term finance up to 50%, there has never been a better time to invest in Mexican real estate.

Why hesitate; isn’t it about time that you at least consider making an investment decision totally contrary to those recommendations that you’ve been receiving from your personal financial “guru” that have cost you 40% of your life’s savings? Come on down and retire in Mexico; maybe you’ll even want to buy a bag full of Mexican Libertads or dabble in the Mexican Bolsa through a vehicle such as the EWW fund while enjoying retirement to its fullest! Who knows; as you’re relaxing in your beach front condo on the Mexican Riviera, perhaps your investments in Mexico will gain enough over the next couple of years to recover what you’ve lost during the past decade!

(Please refer to GRAPHS associated with this article)

Jim Scherrer is a retired entrepreneur from Houston, has owned property in Puerto Vallarta, Mexico for 26 years, and has made Vallarta his permanent residence for the past twelve years. He founded Puerto Vallarta Real Estate Buyers Agents (PVREBA), whose mission is to reveal all the recent changes that have occurred in Vallarta while dispelling the misconceptions about living in Mexico. PVREBA acts exclusively as buyers agents by introducing North Americans to Vallarta, showing them properties that meet their needs and budgets, and assisting them through the foreign buying process, with all payments made by the listing agents. For the full series of nearly 70 articles regarding Retirement in Puerto Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.

4-Star Stocks Poised to Pop: General Dynamics

2012-01-24T10:37:00.001-08:00

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contractor General Dynamics (NYSE: GD ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at General Dynamics' business and see what CAPS investors are saying about the stock right now.

General Dynamics facts

Headquarters (Founded)	Falls Church, Va. (1899)
Market Cap	$25.7 billion
Industry	Aerospace and defense
Trailing-12-Month Revenue	$32.1 billion
Management	Chairman/CEO Jay Johnson CFO L. Hugh Redd
Return on Equity (Average, Past 3 Years)	20%
Cash/Debt	$1.5 billion / $4.1 billion
Dividend Yield	2.6%
Competitors	Boeing Lockheed Martin Northrop Grumman

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,357 members who have rated General Dynamics believe the stock will outperform the S&P 500 going forward. ?

Just last month, one of those Fools, market8, tapped the stock as a solid way to play defense:

My recommendation for a stable cash company would be General Dynamics, which is getting negative press related to politics, but has solid long-term appeal. ... I am not worried about the political hammer on defense, albeit a negative at the margin. The growth rate will re! main pos itive even if the slope flattens out on budget cutbacks. With this company you get very stable cash flows, but my favorite part of the company is the upside the Gulfstream brand provides. Time is a critical resource for the super wealthy and business jets should have strong global demand going forward as the rising elite seek to maximize the one resource they can't buy more of.

What do you think about General Dynamics, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Yahoo! CEO Sees More Than Meets the Eye

2012-01-24T06:13:00.001-08:00

Investors in Yahoo!(YHOO), and most of the company's sell-side analysts, have given a collective thumbs-down to the hiring of Scott Thompson as the company's next CEO. There's been a chorus of complaints about his weaknesses, which include:

He's not a media guy.

He's not an advertising guy.

He doesn't have any CEO experience.

He doesn't have any turnaround experience.

He indicated that he's going to invest in growth (i.e., try to raise revenues)

Jefferies' Youssef Squali downgraded Yahoo! this morning, saying the attempt to grow the company under Thompson promises to be "a long, costly and risky endeavor" and Thompson has "no turnaround experience." Does that mean Squali would have preferred the company to shrink because it's less costly, short in duration and not risky?

Citigroup's Mark Mahaney has stated, "By selecting Mr. Thompson, Yahoo! is explicitly pursuing a growth strategy, whereas we believe a value strategy might be more appropriate." Mahaney -- who recently went on Bloomberg TV and asserted that Yahoo! had $25 billion market capitalization (vs. its actual $19 billion market cap) -- has previously expressed similar beliefs on what kind of company Yahoo! should be. What he means is that he believes the company should start paying a big dividend and not reinvest it in the business.

I would respond to him by saying that, even though Yahoo! is profitable, it needs to stop shrinking as a company if it hopes to stay that way. Otherwise, there will be no cash to pay out a regular dividend.

>>Learn more about Real Money here.

The problem with all this criticism of Thompson is that any CEO Yahoo! hired would have been assailed by the business media and blogosphere. Following is the prior short list of CEO candidates, as previously reported -- and what the critics would have said had Yahoo! hired any one of them:

Marc Andreessen: Not a media guy; not an ad guy; he was a bomb as a CEO; n! o turnar ound experience; the companies on whose boards he has served -- Ning, Netscape, Opsware, and Hewlett-Packard (HPQ) -- have all been flops

Peter Chernin: Not a technology guy; no turnaround experience; too much a big-company guy; he's been out of a job for a few years, so he's too soft

Chris Liddell, ex-CFO of Microsoft(MSFT) and GM (GM): He's a bean-counter; not a media guy; never been a CEO; no turnaround experience, as he didn't turn around GM; not a visionary; no advertising experience

Jason Kilar of Hulu: Too young and experienced; Hulu's been a flop, as it couldn't even sell itself, and its subscriber numbers lag far behind those of Netflix (NFLX); no advertising experience; never needed to turn anything around

Kevin Johnson, CEO of Juniper(JNPR): He was a flop at Microsoft's MSN; Juniper hasn't done much under him; no media, advertising or turnaround experience

David Kenny, Yahoo! board member: He's unemployed; he failed at Akamai(AKAM); no turnaround experience; not a techie

Brian McAndrews, executive at Microsoft: His company has done little in advertising; MSN is a flop; no turnaround or media experience

Laura Desmond, CEO of Starcom MediaVest: No one's ever heard of her; no tech experience; no turnaround experience

David Rosenblatt, former DoubleClick CEO: No turnaround experience; he's been "retired" for a while now following the Google(GOOG) acquisition

I'm not trying to slam these people. I'm simply trying to make the point that every candidate has their weaknesses, and those would have been grist for the mill of all the Yahoo! cynics.

So how does Scott Thompson rank against all of these candidates? That's really the question that should be asked. Chernin! and And reessen wouldn't have been available, unless the Yahoo! board had decided to take its shareholders to the cleaners. Compared with the rest of the candidates on this list, I believe Thompson is far more attractive.

Why do I say this? I don't know what kind of a manager he'll be, but I do know he has the most to lose of anyone on this list -- in taking this job, he's leaving his perch at eBay(EBAY) subsidiary PayPal. He would have become very rich and powerful on any PayPal spin-off, which has been in discussion, and if it happens the company will only grow in influence. Thomson has really given up a lot, and he's done it because he's apparently judged that, on a risk-adjusted basis, he had more to gain by going to Yahoo!.

Think about that: He had more to gain by going to Yahoo!. To me, this is very promising. What did Carol Bartz have to risk when she came to the company? Nothing -- she was retired.

As such, I'm hopeful that Scott sees something here that other investors will soon see as well.

At the time of publication, the author was long YHOO.

>To order reprints of this article, click here: Reprints

American Tower Corporation attained 80.12% earning per share growth in past 5 years ¨C AMT

2012-01-24T01:50:00.001-08:00

American Tower Corporation (NYSE:AMT) recently hit 52 week peak price $55.08, opened at $54.43 scored +0.75% closed $55.00. AMT traded on over 1.95 million shares in comparison to average volume of 2.60 million shares.

AMT has earnings of $353.69 million and made $1.89 billion sales for the last 12 months. Its quarter to quarter sales remained 15.59%. The company has 399.08 million of outstanding shares and 395.01 million shares were floated in the market.

AMT has an insider ownership at 0.02% and institutional ownership remained 96.35%. Its return on investment (ROI) for the last 12 month was 4.20% as compare to its return on equity (ROE) of 10.59% for the last 12 months.

The price moved ahead 6.61% from the mean of 20 days, +7.51% from 50 and went up 14.78% from 200 days average price. Company��s performance for the week was 4.40%, +8.98% for month and yearly performance remained 29.35%.

Its price volatility for a month remained 1.69% whereas volatility for a week noted as 1.42% having beta of 0.68. Company��s price to sales ratio for last 12 months was 11.64 while its price to book ratio for the most recent quarter was 6.37 and its earnings before interest, tax, depreciation and amortization (EBITDA) remained 1.20 billion for the past twelve months.

Moneymaking Ideas That Actually Work

2012-01-23T16:53:00.001-08:00

If you’re looking to make money in the online world, then chances are that you’ve seen more than your fair share of moneymaking ideas that simply don’t work. Between forex trades that promise the world from work-at-home opportunities that are more trouble than they’re actually worth, it can be enough to discourage anyone from making money online. However, there’s one great option from moneymaking ideas that actually work – and they’re about to make you very happy with your bank account.

Sports arbitrage trading is a great alternative to traditional investments because it’s a low risk, high yield investment scheme that requires little maintenance on behalf of the investor. Instead of relying solely on the performance of a single stock, sports arbitrage trading seeks out price differences in the market and then exploits those differences to earn a substantial return. Investors regard sports arbitrage trading as relatively risk-free, which is why it’s such a popular choice for new investors who are looking to try out moneymaking ideas.

Sports arbitrage earns significant returns because it compounds your investment capital with each trade. The more you invest, the more your trade compounds, as the typical compounding rate for each trade averages out between one to five percent – and this figure stands during even the worst periods of market performance. This snowballing effect from compounding trade rates has earned many new traders a yearly income that far exceeds the one from their day job! Best of all, you won’t have to hand over half of your yields to the government, as the profits from sports arbitrage trading are tax-free.

Don’t waste another moment on a moneymaking idea that will lead nowhere. Why not skyrocket your knowledge of the sports investment market by visiting CSI Arbitrage today – your bank account will thank you for it later!

Google YouTube To Pay For Play

2012-01-23T12:27:00.001-08:00

Late word from the World Economic Forum is that the founder of YouTube has announced that the video sharing site, bought by Google (GOOG), will start to pay some of its contributors for content. What metric may be used is still not certain.

The announcement seems exceedingly odd, given that the video operation has not figured out how to make large sums of money from its traffic and is embroiled in disputes with TV and movie studios posted on the website in violation of copyright laws. So, paying contributors would seem to be a good way to drive the operation further into the red.

But, it is the internet.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

MSFT Rising: FYQ2 Strength in Biz Products; Windows Falls 6%

2012-01-23T07:51:00.001-08:00

Microsoft (MSFT) this afternoon reported fiscal Q2 revenue in line with expectations and profit a penny ahead of consensus.

Revenue in the three months ending in December rose 5%, year over year, to $20.9 billion, yielding EPS of 78 cents.

Analysts had been modeling $20.92 billion in revenue and EPS of 76 cents.

Windows revenue was down 6%, year over year. Server and Tools revenue was up 11%, Microsoft Office revenue was up 7%. The company had competitive wins in its “Dynamics” business, said investor relations director Bill Koefoed in a phone call following the report.

Xbox had a “huge” quarter, said Koefoed, with revenue up 15%, year over year. The company’s losses in its online services business diminished by $100 million, to a little under half a billion dollars. It was the second consecutive quarter of improvement.

Discussing the decline in Windows, Koefoed remarked that one factor depressing the product were sales of Netbooks, which fell 70%, year over year, in the quarter.

Excluding Netbooks, consumer Windows sales were actually up 2%, year over year, he pointed out.

However, inventory levels at OEMs exiting the quarter were down, said Koefoed, and it wasn’t immediately? clear where that drop came from, he said.

Some of it may have been attributable to flooding in Thailand, about which Microsoft had already warned last week that there would be an impact on Windows sales. But not entirely. The overall decline in PC inventory that was affecting Windows revenue was still not quite explainable, said Koefoed.

Shares of Microsoft are up 48 cents, or 1.5%, at $28.55 up 60 cents, or 2.2%, at $28.74 in late trading.

Microsoft! ’s conference call with analysts is getting underway now, at 5:30 pm, Eastern, and you can catch the webcast of it here.

Google Moves From A Stock Of Hope To A Stock Of Doubt

2012-01-23T03:27:00.001-08:00

Google’s (GOOG) stock is having a really rocky time. On January 31, the stock hit $505. Today, it dropped below $470. A drop of 7% in such a short time is worth a look. The shares can’t seem to find a floor.

Over the weekend, Time Magazine ran a piece about what Yahoo! (YHOO) would have to do to turn itself around. It covered Panama taking share from Google and a lot of other news magazine junk. But, why anyone would use Panama over Google’s product unless it is substantially better is really hard to say.

Google’s earnings weren’t good enough for a lot of investors. There is fear that as the company’s growth inevitably slows and it invests in new products that margins will drop. Fair, and probably true.

And, then there is the news that Viacom wants about 100,000 videos containing its content taken down from Google property YouTube. The YouTube buy will look expensive if the fight with big content holders goes on. But, the other side of that argument is that the YouTube audience is too large to be ignored at an outlet and that content owners will eventually come back with distribution deals.

The real problem for Google is that it has gone from being a stock of hope to a stock of doubt. That has happened to other big stocks over the years. Certainly Microsoft (MSFT) and Yahoo! qualify. In the collective minds of investors Google has more going against it than for it, at least for now. Being the leader in search is giving way to concerns about competition and whether its efforts outside its core competence will ever an pay off.

The floor under that stock may keep falling.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

Intel’s New Chip, A Chance To Mortally Wound AMD

2012-01-22T18:29:00.001-08:00

Intel (INTC) has come up with a chip architecture that is a sea change in the way that processors operate. Intel claims that it is the most significant evolution in the way that it produces its products since the company came out with its first chips over 30 years ago.

IBM (IBM) says that it is working on a similar technology for producing processors. Apparently so is Texas Instruments (TXN)

Intel rival AMD will have access to the IBM advances, so it is now a race to see which company can get the technology to market first.

Intel has indicated that its new chips will be available in the second half of 2007. The IBM/AMD products may not be available until early 2008, giving Intel a distinct advantage.

Intel has been looking for a "silver bullet" in a effort to get back market share taken by AMD over the last three years. The price battle between the two companies has destroyed margins at both. AMD’s stock has been driven down from $42.70 to under $17 over the last year.

If this is Intel’s coup de grace to AMD, the smaller company’s stock could go much lower.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

SEC Appoints Heads of Special Units to Crack Down on Fraud

2012-01-22T14:25:00.001-08:00

The Securities and Exchange Commission's Enforcement Division announced January 13 the heads of its newly specialized units spread throughout the country that are designed to crack down on financial wrongdoing. The Division announced the same day the newly created Office of Market Intelligence that is responsible for the collection, analysis, and monitoring of the hundreds of thousands of tips, complaints, and referrals that the SEC receives each year. Thomas Sporkin, who has served as Deputy Chief in the Office of Internet Enforcement at the SEC since 2001, will head the new Office of Market Intelligence.

According to the SEC, the specialized units and their Unit Chiefs are:

Asset Management. Will be led by Co-Chiefs Bruce Karpati and Robert Kaplan and will focus on investigations involving investment advisors, investment companies, hedge funds, and private equity funds.

Karpati was founder and head of the SEC's Hedge Fund Working Group, and has served as Assistant Regional Director for the New York Regional Office of the SEC. Kaplan has served as Assistant Director of the SEC's Division of Enforcement, and previously held positions as Assistant Chief Litigation Counsel and Senior Counsel/Staff Attorney in the Division.

Market Abuse. To be led by Daniel Hawke, this unit will focus on investigations involving large-scale market abuses and complex manipulation schemes by institutional traders, market professionals, and others. Hawke is Director of the SEC's Philadelphia Regional Office. The Market Abuse Unit Deputy Chief is Sanjay Wadhwa, who has been Assistant Regional Director for the New York Regional Office of the SEC.

Structured and New Products. To be led by Kenneth Lench, this unit will focus on complex derivatives and financial products, including credit default swaps (CDSs), collateralized debt obligations (CDOs), and securitized products. Lench has served as Assistant Director, Branch Chief, Assistant Chief Counsel, and Senior Counsel/Staff Attorney with the SEC's Division of Enforcement. The Structured and New Products Unit Deputy Chief is Reid Muoio, who has been an Assistant Director, Branch Chief, and Staff Attorney with the Division of Enforcement.

Foreign Corrupt Practices. To be led by Cheryl Scarboro, this group will focus on violations of the Foreign Corrupt Practices Act, which was passed in 1977 and revised in 1988, and which prohibits U.S. companies from bribing foreign officials for government contracts and other business. Scarboro has served as Associate Director, Assistant Director, Deputy Assistant Director, and Staff Attorney in the SEC's Division of Enforcement.

Municipal Securities and Public Pensions. To be led by Elaine Greenberg, this unit will focus on misconduct in the large municipal securities market and public pension funds including: offering and disclosure fraud; tax or arbitrage-driven fraud; pay-to-play and public corruption violations; public pension accounting and disclosure violations; and valuation and pricing fraud. Greenberg is the Associate Regional Director of the Philadelphia Regional Office of the SEC and has served as the Co-Chair of the Division's national Municipal Securities Working Group.

Margaret Cho: The Girl With the Genteel Tattoo

2012-01-22T09:40:00.001-08:00

Comedian and actress Margaret Cho stopped by the WSJ Studio to talk with Speakeasy’s Barbara Chai about her new DVD, the coming season on Lifetime’s “Drop Dead Diva,” and her freshly-inked tattoo.

Follow Barbara Chai on Twitter: @barbarachai

Former SEC Exam Chief Walsh: SEC Whistleblower Program 'Showing Traction'

2012-01-22T05:50:00.001-08:00

The former chief counsel at the Securities and Exchange Commission’s exam division, John Walsh, has formed a Whistleblower Response Team with several of his colleagues at the law firm Sutherland Asbill & Brennan to help firms develop whistleblower response programs as Walsh says the SEC’s “initiative is beginning to show traction.”

Walsh, a 23-year veteran of the SEC where he played a key role in creating the Office of Compliance Inspections and Examinations (OCIE), including serving as OCIE’s chief counsel, said in a statement that the SEC’s Whistleblower program, which the agency expanded under Dodd-Frank, is beginning to “see results.”

Walsh cites the November report issued by the SEC detailing the first seven weeks of the Whistleblower program that found that between Aug. 12 and Sept. 30, the SEC received 334 whistleblower tips, an average of nearly 48 per week.

The SEC report notes that the most common complaint categories were market manipulation (16.2%), corporate disclosures and financial statements (15.3%), and offering fraud (15.6%). The commission received whistleblower submissions from individuals in 37 states, as well as from several foreign countries, including China (10) and the United Kingdom (nine).

“Senior SEC officials have stated publically that they are now receiving high-quality information,” Walsh said. “As a result, we believe it is critical that companies receive the most up-to-date information and proper counsel to effectively respond to whistleblower claims as they emerge.”

Other members of Sutherland’s Whistleblower response team are Cynthia Krus, Allegra Lawrence-Hardy, and Holly Smith. The legal team will help clients create effective whistleblower response programs, respond to whistleblower claims, and defend against SEC enforcement actions and civil litigation.

Walsh, the former associate director and chief counsel at OCIE, retired from the agency at the

end of September, and joined Sutherland’s Financial Services Group and Securities Enforcement and Litigation Team in Washington, D.C., on Oct. 1.

In August, the SEC launched a web page that allows individuals to report a violation of the federal securities laws and apply for a financial award. The whistleblower program provides a monetary incentive of between 10% and 30% of sanctions the SEC collects for whistleblowers who voluntarily provide the agency with original information that leads to a successful SEC action with sanctions exceeding $1 million.

While 170 applicable enforcement judgments and orders issued from July 21, 2010 through July 31, 2011 included the imposition of sanctions exceeding the statutory threshold of $1 million, the SEC explained in its report, because the 90-day application period had not passed with respect to any of these actions as of the end of the fiscal year, applications for awards had not yet been processed. Accordingly, the commission did not pay any whistleblower awards during fiscal year 2011.

Stocks Attractive to Traders Today: BLK, JCI, UNP, MS, UNH, KCG, EGHT

2012-01-22T00:41:00.001-08:00

CEO Laurence D. Fink of BlackRock, Inc. (NYSE:BLK), wants corporations to adopt shareholder friendly practices, according to Bloomberg. The company holds at?a minimum?5% of the shares of 2,400 companies worldwide. In letters to 600 of the firm’s biggest holdings,?Fink wrote?that BlackRock seeks to “engage in dialogue” with management to address issues that will be raised this year at shareholder meetings.

Shares of Johnson Controls, Inc. (NYSE:JCI) are trading 8.09% lower today, with consensus?of $44.03B. Johnson Controls lowers their Euro assumption to $1.30 from $1.35,?having seen Europe auto production at 20.1M units, +1.5%.

Versus a consensus of $5.06B,?Union Pacific Corporation (NYSE:UNP) reports Q4 revenue of?$5.1B.

Shares of Morgan Stanley (NYSE:MS) are trading 4.5% higher today, as the company is rumored to be cutting senior banker and trader pay 20%-30%, according to?Bloomberg. Sources with knowledge of the plan were cited.

Shares of UnitedHealth Group Inc. (NYSE:UNH) are trading 2.97% lower today, after?FY12 revenue $107B-$108B vs. consensus $108B is being projected.

Shares of Knight Capital Group Inc. (NYSE:KCG) are trading 9.28% higher today, following reports of Q4 revenue $341.3M vs. consensus $312.47M. Q4 Electronic Execution Services projects revenue $40.6M vs. $37.1M. And Market Making revenue is projecting?$187.4M vs. $111.0M.

Shares of? 8×8, Inc. (NASDAQ:EGHT) are trading 24.11% higher today, after it was revealed that business customer churn decreased to a record low of 2.0%, compared to a churn rate of 2.2% in the same period in 2011 and 2.1% in the 2012. Ending Q3 with 27,677 business customers, 8×8 reported Q3 revenue $23.3M vs. consensus $22.09M.

To contact the reporter on! this st ory: Mark Lawson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

Credit Crisis Update: U.S. Stocks Skid as Bailout Bogs Down, President to Address the Nation

2012-01-21T20:16:00.001-08:00

NEW YORK (CNNMoney) -- Greece and its private sector creditors remain mired in deep negotiations over a deal to reduce the nation's crushing debt load.

Institute of International Finance director Charles Dallara, who represents the private sector investors and banks that hold Greek debt, said "it's not entirely clear" how close the parties are to a deal.

"I wouldn't say I'm confident, but I'm hopeful we'll reach agreement," Dallara told CNN International's Richard Quest in a phone interview from Athens.

The talks ended Wednesday without an agreement. They will resume Thursday and Dallara said final terms could be reached in the days ahead.

The IIF has been in discussions with the Greek government over an agreement to voluntarily write down the value of Greek government bonds by 50%.

The private sector holds over €200 billion worth of Greece's total debt load -- estimated at €350 billion.

Dallara said the group intends to follow through on the 50% writedown, which was announced following a summit of European Union leaders in December.

That would result in significant losses for the private sector. But it would also help reduce Greece's debt load to 120% of economic output by 2020.

In addition, Dallara said 15% of the remaining amount that Greece owes the private sector would be paid in cash. Another 35% would be restructured, or replaced with loans that have longer maturities and lower interest rates.

The talks broke down last week amid demands for even larger write downs, and Greek Prime Minister Lucas Papademos' call for a private sector participation rate of 100%.

Dallara told CNN he's confident the group can "mobilize a high participation." But that doesn't mean 100%, he added.

The deal is a key condition for Greece to receive additional bailout funds from the European Union and International Monetary Fund. Without additional financial support, Greece may not be able to make a €14 bill! ion paym ent it owes on bonds coming due March 20.

Dallara stressed that both sides are interested in finding "common ground."

World Bank warns on risk of global recession

He said the creditors recognize that a portion of Greece's debt needs to be written off in order to avoid a "disorderly" default, which could have severe repercussions for the global economy. But he acknowledged that some investors may be worried that other euro area governments could extract similar concessions.

All governments have an interest in resolving Greece's debt problems "in a cooperative manner" so that investors will be confident that issues this extreme can be resolved "in a mutually satisfactory way," said Dallara.

-- CNN's Jim Boulden contributed to this report from London.

Lehman Forced to Revise Bankruptcy Exit Plan

2012-01-21T15:55:00.001-08:00

After some creditors rejected Lehman Brothers' Chapter 11 proposals, the company revised its plan to exit bankruptcy, filing a new plan in New York, Bloomberg reported Wednesday.

The plan didn't list a voting deadline for creditors or propose a date for the confirmation hearing, Bloomberg reports. Lehman will start soliciting votes for the plan after the summer, and final court approval may be near the end of the year.

Lehman plans to raise $61 billion by selling assets and reducing allowable claims to $322 billion, Bloomberg reports. The average Lehman creditor would receive 18.6 cents on the dollar, and senior bondholders would receive 21.4 cents. Creditors with general unsecured claims would receive a 19.8% return, according to Bloomberg.

Derivatives creditors, which include Goldman Sachs, Morgan Stanley, Credit Suisse, Deutsche Bank and Bank of America, would get 22.3 cents, Bloomberg reports. As of the third quarter of 2010, Lehman had settled over 45% of derivatives transactions made by the Lehman Brother Special Financing unit. When Lehman filed for bankruptcy it was involved in 1.2 million derivatives transactions.

Hedge fund Paulson & Co. and other creditors with large claims against Lehman Brothers argued that Lehman's original plan "created conflict among creditors of Lehman's units," and offered their own plan in December, Bloomberg reports. In that plan, bondholders received 24.5 cents, and derivatives creditors received 25.7 cents. The group, which includes the California Public Employees’ Retirement System, PIMCO and Canyon Partners LLC, a Los Angeles-based $19 billion hedge fund, hold $80 billion in claims against Lehman, Bloomberg writes.

Lehman's revised plan incorporates elements of the Paulson plan and offers bondholders more money than the original plan, which proposed giving creditors 17 cents. If the Paulson group opposes the revised plan, their payout will be reduced to the original amount, Bloomberg reports.

“We think this is the fairest way to deal with all the legal issues,” Lehman President John Suckow told Bloomberg by phone Wednesday. “We’re hoping to get people to rally around this plan in coming weeks and months.”

At the end of 2010, Lehman held $24 billion in cash and $37 billion in real estate, private equity and other assets, Bloomberg writes.

(AEHR,TIII, ASTX, CLNO, SHOR) Stock to Watch by DrStockPick.com

2012-01-21T11:34:00.001-08:00

Aehr Test Systems (Nasdaq:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, announced financial results for the first quarter of fiscal 2012 ended August 31, 2011.

Net sales were $4.1 million in the first quarter of fiscal 2012, compared with $2.2 million in the first quarter of fiscal 2011. Aehr Test reported net income of $124,000, or $0.01 per diluted share, in the first quarter of fiscal 2012, compared to a net loss of $1.5 million, or $0.17 per diluted share, in the first quarter of fiscal 2011. The Company’s net income for first quarter fiscal 2012 included a gain of $990,000 from the sale of its investment in ESA Electronics PTE Ltd.

Commenting on the results of the first quarter, Rhea Posedel, chairman and chief executive officer of Aehr Test Systems, said, “We are pleased to have started fiscal 2012 off with a profitable first quarter. Our revenues for the quarter grew 90% year-over-year and were up 10% sequentially. A major contributor to this growth was the shipment of a number of FOX(TM)-1 WaferPak contactors for full wafer, one touchdown sort testing of flash memory wafers. We also had an increase in ABTS(TM) revenues in the quarter, reflecting the inroads we are making in adding new customers. At the same time, we gained a new customer in China for our ABTS product and booked follow-on ABTS system orders from existing customers.

“Looking ahead, we are seeing a higher level of interest in our broad base of products,” continued Posedel. “We remain focused on penetrating key production accounts with our ABTS and FOX products to grow our business.”

Headquartered in Fremont, California, Aehr Test Systems is a worldwide provider of systems for burning-in and testing DRAMs, flash and other memory and logic integrated circuits and has an installed base of more than 2,500 systems worldwide. Aehr Test has developed! and int roduced several innovative products, including the ABTS, FOX and MAX systems and the DiePak(R) carrier. The ABTS system is Aehr Test’s newest system for packaged part test during burn-in for both low-power and high-power logic as well as all common types of memory devices. The FOX system is a full wafer contact test and burn-in system. The MAX system can effectively burn-in and functionally test complex devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is a reusable, temporary package that enables IC manufacturers to perform cost-effective final test and burn-in of bare die.

For more information, please visit the Company’s website at www.aehr.com.

Tii Network Technologies, Inc (Nasdaq:TIII) a leader in designing, manufacturing and marketing network products for the communications industry, announced the appointment of Stacey L. Moran as Vice President - Finance, Chief Financial Officer, Secretary and Treasurer.

Tii Network Technologies, Inc., together with its subsidiaries, designs, manufactures, and sells products for use in the networks to service providers in the communications industry in the United States.

Astex Pharmaceuticals, Inc. (Nasdaq:ASTX) announced that preclinical data demonstrating that AT13387, a novel non-ansamycin Heat Shock Protein 90 (HSP90) inhibitor, is active in in vitro gastrointestinal stromal tumor (GIST) models (Abstract #9407) was presented at the 2011 ECCO (European Cancer Organization) European Multidisciplinary Cancer Congress in Stockholm, Sweden.

Astex Pharmaceuticals, Inc., a pharmaceutical company, engages in the discovery, development, and commercialization of novel therapeutics with a focus on oncology and hematology.

Cleantech Transit, Inc. (CLNO)

Cleantech Transit Inc. was founded to capitalize on technology advances and manufacturing opportunities in the gro! wing cle an energy public transportation sector. The Company has expanded its focus to invest directly in specific green projects. Recognizing the many economic and operational advances of converting wood waste into renewable sources of energy, Cleantech has selected to invest in Phoenix Energy (www.phoenixenergy.net). This project could benefit the Company’s manufacturing clients worldwide.

Cleantech Transit, Inc. (CLNO) is pleased to announce it has met its funding requirement to secure the Company’s ability to earn in 25% of the 500KW Merced Project.

The Company is in the final stages of closing its initial interest in the Merced Project and is currently working on completing the necessary documentation and expects closing the transaction soon. As previously announced Cleantech has the option to earn up to 40% of the Merced Project and the Company plans to continue to work towards increasing its interest in the Merced Project as they move ahead.

Biomass is made from plants and is essentially a form of solar energy. Plants absorb energy from the sun as they grow through the process of photosynthesis. Plants use the sun’s energy to break carbon dioxide and water molecules apart into their basic elements, hydrogen, carbon and oxygen. The hydrogen and carbon are used to build the molecules that the plants are made of. Most of the oxygen is released back into the atmosphere.

For more information about Cleantech Transit, Inc. visit its website www.cleantechtransitinc.com

ShoreTel, Inc. (Nasdaq:SHOR) the leading provider of brilliantly simple IP phone systems with fully integrated unified communications (UC), welcomes Sunnyvale Mayor Melinda Hamilton, as she visits ShoreTel headquarters in recognition of the company’s success.

Shoretel, Inc., together with its subsidiaries, engages in the development and sale of Internet protocol (IP) communications systems for enterprises in the United States and internationally.

Alamos Gold PT Trimmed At CIBC Reflecting Higher Costs

2012-01-21T06:55:00.001-08:00

CIBC World Markets Inc. cut its price target on Alamos Gold Inc. (TSX:AGI.TO) to $23.00 from $24.00, reflecting higher costs for 2013 estimates.

Barry Cooper, an analyst at CIBC, cut his 2012 EPS estimates for thecompany to US$1.33 from US$1.47 and 2013 estimates to US$1.72 fromUS1.77.

Production in the fourth quarter was essentially in line with ourexpectations of 43,000 ounces, Cooper said. The 46,500 ounces producedincluded 3,000 ounces of non-commercial production from the Escondidazone.

Cooper wrote that the start up of the mill associated with Escondidaore will be a major milestone for the operation. The boost will comefrom both grades and costs and partially offset total cash costs thatare expected to be approaching $600/oz for the heap leach operationalone, he said.

"Grades are expected to be down 23% at the Mulatos pit year-over-yearand follow a previous decline of 18% in 2011. This should be a lowpoint relative to the reserve grade, although higher gold prices will beaffecting reserve figures for AGI as well as others as low gradesbecome economical," Cooper said.

"Throughput for Mulatos may prove difficult to achieve given the17,500 TPD avg that has been forecast. About 500 TPD will come from milltailings, but to avg 17,000 TPD for the main crusher facility may beaggressive," Cooper wrote. "We think that there could be a cushion inthe grade estimate that could help."

The stock is currently trading 0.12% lower at $17.31. The shares havebeen trading in the 52-week range between $13.26 and $20.15.

{$end}

China Wants Its Money Back

2012-01-20T22:05:00.001-08:00

Late word is that the China Development Bank may pass on putting $2 billion into Citigroup (C) as was planned. According to The Wall Street Journal the Chinese government may be blocking the deal.

As China puts more and more money into US government debt and invests in troubled financial institutions it would be well to remember that one of its earlier deals, an investment in BlackStone (BX), turned out to be about as bad as an investment could get. Shares in the firm have gone from $38 to $20.

China wants it money back. Maybe then it will put in some more.

Douglas A. McIntyre

Tesoro Shares Plunged: What You Need to Know

2012-01-20T13:30:00.001-08:00

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tesoro (NYSE: TSO ) are plunging today, down by as much as 10%, after the company updated its fourth-quarter guidance.

So what: The company expects to report a net loss between $0.55 and $0.80 per share, compared to the $0.65 profit analysts are looking for. Tesoro cited an extremely weak margin environment in California and the collapse of the West Texas Intermediate (WTI) to Brent crude oil spread.

Now what: The Tesoro Index for the California area was a negative $0.05 per barrel, down over $6 compared to the sequential and year-over-year prices. The WTI to Brent spread fell from $26 per barrel in September to just $8 per barrel in December. The decline reduces benchmark margins at Tesoro's refineries and the margin on long-haul foreign crude oil barrels indexed to WTI. When you're in the oil business, volatility is simply the name of the game.

A broad band of support at S&P 500 1,124 to 1,225 will likely slow the decline

2012-01-20T04:29:00.001-08:00

A fall in the euro sent equity and commodity markets into a downward spiral yesterday. Sentiment against the euro strengthened following Germany��s stand that its government is against raising the lending limit for a euro zone bailout.

In response, Italy��s 10-year bond yield rose 7%-plus, and Spain and France saw their bond yields jump as well. The U.S. dollar rose, of course, and the rise was accentuated by a series of better-than-expected economic reports.

Commodities fell sharply in response to the stronger dollar. The CRB Index fell 3.4%, and gold settled at $1,587.70 an ounce, down 4.6%, and silver lost 7.6%.

The Dow Jones Industrial Average closed at 11,823, off 1.1%, the S&P 500 ended at 1,212, down 1.13%, and the Nasdaq closed at 2,539, down 1.55%. The NYSE traded 928 million shares, and the Nasdaq crossed 512 million. Decliners were ahead of advancers on the Big Board by 3-to-1 and on the Nasdaq by 2-to-1.

Yesterday, every major index violated its near-term support as the dollar rocketed to new highs.

The breakdown of the S&P 500 is significant because it confirmed the failure of the index to break higher at its bearish resistance line (June/July, October and November highs); it turned down from its 200-day moving average — a confirmation that the long-term bear market is intact; and it crushed the near-term support provided by the conjunction of the 20-day and 50-day moving averages.

The question is: How low will it go?

The answer may surprise you: Not very far, at least initially. There is a broad band of support at 1,124 to 1,225 that will more than likely slow the decline, and the uptrend line of a major trading triangle rests at 1,175.

Additionally, the Fibonacci numbers off of the November low to the December are: 50% = 1,212 (yesterday��s close), 61.8% = 1,200.

Finally, we are approaching the holiday period when trading traditionally slows and volume falls until we enter the New Year.

! Yesterda y��s higher close in the PowerShares DB US Dollar Index Bullish Fund (NYSE:UUP) confirmed the bull market in the U.S. dollar, and that conclusion is backed by the MACD buy signal. But volume on the breakout is not as high as the average volume of the October sell-off.

Conclusion: The most followed indices have broken from major support levels, indicating that the bear market is intact and that prices should head modestly lower.

But European politicians are no less nimble than our own. When our credit markets were in jeopardy (not that they still aren��t), the Feds sprang TARP, then QE1 and QE2 while dropping interest rates to near zero. And each move was immediately greeted with a rebound in stocks.

The Europeans have followed the same pattern and will, in desperation, scramble to turn an outgoing tide with each attempt triggering a rally in equities. Thus, shorts should expect violent rebounds. Take profits when you can. (Check out my colleague John Jagerson who turned a 67% profit overnight last week.) And protect positions with stop-loss orders.

The trend is down, but expect more volatility and less predictability.

As Fidelity Re-Opens Magellan Fund, Investors Review Top Holdings (FMAGX, NOK, GLW, GOOG, SLB, CNQ, SPLS, T, AGN, MON)

2012-01-19T14:57:00.001-08:00

It’s official. Fidelity’s Magellan Fund (FMAGX) is being re-opened for new investors. This fund at one point in 1997 became so large that the fund closed itself to new funds and outside investment commitments. As of the last seen date Fidelity’s Magellan Fund had some $43.3+ Billion in assets under management.

Fidelity says that as the investor base is now 10 years older, they have had adequate redemptions and portfolio manager Harry Lang says: "We believe that the time is right to make Magellan available to a new generation of investors………… We believe that generating new sales to offset future redemptions will help stabilize the fund’s cash flows and assist Harry in most effectively directing investment strategies for the benefit of fund shareholders. It’s effectively the inverse of the reason why we limited new purchases of the fund 10 years ago. At that time, we were seeing strengthening cash inflows, and we expected that trend to continue."

More importantly, Harry Lang also noted, "I’ve been fortunate to find great stocks here in the U.S. and abroad to include in the portfolio. If we’re able to achieve a better balance of cash flows in the fund going forward, I’ll regularly have the cash on hand to capitalize on attractive investment opportunities as I find them."

Fidelity noted that some 85% of the funds assets are deemed for retirement (IRA, 401K etc.), and therefore the fund would seem to take more of a longer-term view. The top 10 Holdings are unfortunately as of September 30, 2007, so we’ll have another two weeks or so before we know what the real holdings are: The TOP 10 as of then are as follows:

Nokia (NOK, Corning (GLW), Google (GOOG), Schlumberger (SLB), Canadian Natural Resources (CNQ), Staples (SPLS), AT&T (T), Allergan (AGN), Monsanto (MON), Renewable Energy Corp. AS (overseas). This list was posted! on Dece mber 30, 2007, so it might be more updated than some of the aggregator financial news and data web sites that take time to update.

If you want to see the full holdings the list on their site is here. With more than $43 Billion in assets this could create quite a lot of buying in stock names where Fidelity wants to put capital to work. We would surmize that the fund might not add as much to some of its key holdings if it can put capital to work in some of the names it owns less of that might like to own more of.

Also be advised that the full holdings list is 45 days old and we know for certain that many of the positions and many of the weightings have already changed from November 30, 2007. We’d actually start screening out some of the smaller holdings off of that master list to see which are attractive in growth and/or value that will still do well in a slowing economy or even a recession. If you were opening a decade-long closed fund, you might be tempted to disperse more of the new inflows into other names that might be under-owned or under-weighted in the fund.

Jon C. Ogg
January 14, 2008

Chapter 7 Or 13 on Personal Bankruptcy

2012-01-19T10:29:00.001-08:00

Bankruptcy laws in the United States are made to ensure the interests of the borrower are safeguarded, and are formed by the federal government and addressed accordingly by various US Bankruptcy Courts, and it is believed that each year as many as one million Americans go bankrupt and are found filing for bankruptcy. Most of these individuals that file for bankruptcy do so under different personal bankruptcy laws that include chapter thirteen and also chapter 7, and in a few instances, they can even qualify for chapter twelve, especially if they are anglers or farmers and business is owned by the family.

Filing Under Chapter Seven

You can file personal bankruptcy and at the same time do so under chapter seven in which case it is necessary for you to provide a list of all your assets to the court and also have to assign a trustee who will liquidate items in order to pay off creditors. Furthermore, filing personal bankruptcy is allowed once in seven years and the cost of filing personal bankruptcy is approximately three hundred dollars which goes towards filing fee.

If you plan on filing personal bankruptcy under chapter thirteen, it will help in reducing your debt though unlike chapter seven, does not cancel out your debt. And, chapter thirteen personal bankruptcies also means having to set out a plan for repayment with creditors and courts and assigning trustee who will make monthly payments after paying them the money. The trustee will receive payments from you and apportion them to various creditors, and an advantage to using chapter thirteen for filing personal bankruptcy is that unlike in chapter seven, under this chapter you may hold on to everything that would have been lost under chapter seven.

However, both these types of personal bankruptcy allows the debtor to rid him or herself of debts, though remember when filing chapter thirteen bankruptcy, you need to have debt that is not more than two hundred fifty thousand dollars and that such debt is uns! ecured, while debts that are secured should not exceed seven hundred and fifty thousand dollars.

The bottom line is that before filing for personal bankruptcy, makes sure to know what the ramifications of different chapters are and in most instances it may be better to file for chapter thirteen instead of chapter seven as the latter shows that you are a person that does not pay your debts.

Marathon Petroleum Corp (NYSE: MPC) May Soon Be the World¡¯s Richest Refiner

2012-01-19T06:02:00.001-08:00

There's an oil price trend that's giving some oil refining companies a huge competitive edge.

Specifically I'm referring to Marathon Petroleum Corp. (NYSE: MPC).

You see, production from North Dakota's Bakken oil shale formation - the largest known reserve of light sweet crude in North America - is soaring. It went from a mere 3,000 barrels a day in 2005 to 225,000 in 2010, and could hit 350,000 barrels a day by 2035, according to the Energy Information Administration.

Currently, there aren't many ways to ship oil out of the basin, and supply in the region is outpacing refining capacity. That's helped keep the price of West Texas Intermediate (WTI) crude lower than the price of Brent crude in London, with the spread now around $17.

Since U.S. East Coast refineries usually source Brent-priced crude oil, their input costs have skyrocketed. This is one of the reasons major integrated oil companies have shed their refining capacities.

But Midwest refineries have been able to save money by running WTI-priced oil, getting crude at significantly cheaper prices than globally sourced locations.

With the Bakken formation ramping up production in coming years to meet growing demand, the region's refineries will continue to enjoy low input costs. It also means refineries that have access to Bakken oil will have a steady supply that's cheaper than their competitors.

This is why Marathon Petroleum Corp., the largest Midwest refiner, is a "Buy." (**)

Marathon Petroleum Corp.

Ohio-based Marathon Petroleum Corp. was formed July 1, 2011 when Marathon Oil Corp. (NYSE: MRO) spun off its highly profitable refinery and gas station business. It's the fifth largest petroleum refiner in the United States, with its six refineries offering a combined capacity of 1,142,000 barrels of oil per day.

G! ary R. H eminger, Marathon's new chief executive officer, said his company has built a strong enough refining position in the Midwest to ward off competition. He doesn't expect new pipelines and rail yard capacity bringing oil from the Bakken to the Gulf Coast to soften his competitive edge. The oil still needs a high-volume consumer and his refineries are the most obvious choice.

"If you look at Midwest refineries, we already have plenty of pipeline capacity into our plants," Heminger said at the Reuters Global Energy and Climate Summit. "It really comes back to (West Texas Intermediate) and lighter-type crudes that are in and around Cushing [Oklahoma, where WTI is priced]. They're looking for a home."

Marathon also will profit from its operations beyond the Midwest.

It's negotiating with pipeline companies to use its Texas refinery to process more crude from the new Eagle Ford Shale. The new Eagle Ford is unconventional shale oil that's extremely light, and can be mixed with another cheap blend - a heavy, sour crude - to make a more expensive finished product.

Marathon's Detroit refinery is undergoing a $2.2 billion overhaul that'll let it process heavy Canadian crude, which currently is priced even cheaper than WTI.

Marathon also has a profitable retail footprint. It operates 5,100 Marathon-branded gas stations in 18 states and 1,350 Speedway-branded convenience stores in seven states. It has more than 9,600 miles of pipelines into and out of its facilities.

The new refining company has a market cap of $13.3 billion with an enterprise value of $14.6 billion once net cash and debt is taken into consideration. The company reported $66.8 billion in revenue over the last trailing 12 months.

Third quarter earnings released Nov. 1 showed a 309% increase in net income from 2010's third quarter to $1.13 billion. Earnings per diluted share rose to $3.16 from $0.77 last year. Marathon also announced Oct. 26 a 25% div! idend in crease, for a yield of 2.6%.

The company has historical price/earnings (P/E) ratio of 7.2 over the last 12 months with an estimated forward P/E ratio of 5.6.

Its stock has soared more than 17% in the past month, closing yesterday (Wednesday) at $37.02.

Action to Take: Buy Marathon Petroleum Corp. (NYSE: MPC) (**).

It's time to buy Marathon Petroleum Corp. as it positions itself to profit from low input costs and high refining capacity.

I would buy half of our position now at market price, with an eye toward selling naked puts contracts for the other half of the position. This would give you a chance to be exposed to the upside move while increasing the overall cash yield on your first-half position.

(**) Special Note of Disclosure: Jack Barnes has no interest in Marathon Petroleum Corporation. (NYSE: MPC).

Let the outrage begin

2012-01-19T01:39:00.001-08:00

Apple (NASDAQ:AAPL) fan boys and digerati alike were all asking (possibly to Siri), “What��s up with Apple CEO Tim Cook��s ridiculous compensation package?”

The compensation package, released Monday, showed a grand total of $378 million for the new leader of the second-most valuable company in the world behind Exxon Mobile (NYSE:XOM) –? Apple has a whopping $100 billion in revenue and a $400 billion market capitalization.

Grand indeed.

How did this number come to be? $900,000 is his actual salary (don��t faint yet) and $377 million is being awarded to him in stocks.

And we wonder why the Occupy Movement is pulling their hair out.

Just look at this fun little statistic. CEO pay in 2010 was an astounding 343 times that of their blue collar counterparts — compared to 42 times that of blue collar workers in 1980). If you consider Steve Jobs famously took home $1 a year, Cook��s total compensation is 378 million times what Jobs made.

Now, I wouldn��t have considered Steve Jobs to be a blue collar worker, but with Cook at the helm anything’s possible.

Yes, Steve Jobs had a $1 salary, in part, because he was a large shareholder in Apple stock. He held on to an option grant after returning to the company in the late 1990s, which grew exponentially thanks to Apple’s successful turnaround — by 2011 it was worth several billion dollars. But can you blame him for having large amount of stock in a company he co-founded?

Another item to take into account is the stock grant awarded to Tim Cook wasn��t to reward him for a year��s work, it��s most likely to give him the incentive to succeed over the course of many years with the company. Some may argue $378 million spread over 10 to 15 years makes the compensation package look more in line with what other exorbitant amounts fat cat CEOs make in America. But, this doesn��t necessarily make it right.

The! last ti me I checked, the economy was still in the crapper and, despite the unemployment rate dropping to 8.5% and consumer spending and borrowing picking up, I��m still inclined to think that in order to improve the economy, the underlings, peons, blue collar or whatever-you-want-to-call-them workers should be getting their fair share, or should be seeing a lot more fellow employees popping up over the next few years.

Forget Obama, with the kind of money these CEOs are making, they sure as hell can afford to hire a Joe Everyday or two, or three, or thousand.

- Andrew Lander, InvestorPlace.com @andrewlander

Woz loves Android, but iPhone is still good for most

2012-01-17T14:03:00.001-08:00

(gigaom.com) -- My primary phone is the iPhone. I love the beauty of it. But I wish it did all the things my Android does, I really do.

Speaking to Dan Lyons in an article comparing the iPhone to Android devices, Apple co-founder, Steve Wozniak points out the relative limitations of Apple’s iPhone. Woz makes the case made by many smartphone power-users, suggesting the iPhone is still a great device for most people, but with a little effort and understanding, more can be done to an Android phone. Greater customization and user control have always been key selling points for Android devices; both the high-end smartphones and even the low-cost units.

EXOU Exousia Continues Supplier Relationship with China United Engineering Corporation(DrStockPick.com News Report!)

2012-01-17T09:36:00.001-08:00

EXOU, Exousia Advanced Materials Inc, EXOU.OB

DrStockPick News Report!

Dr Stock Pick HOT News & Alerts!

Exousia Continues Supplier Relationship with China United Engineering Corporation

Thursday August 13, 2009

DrStockPick News Report!

Exousia Continues Supplier Relationship with China United Engineering Corporation

Fifth Order Represents CUC’s Continued Confidence in Exousia as a Supplier

SUGAR LAND, Texas /CRWENEWSwire/ Exousia Advanced Materials, Inc. (OTC Bulletin Board: EXOU), a company that manufactures advanced industrial coatings for worldwide infrastructure applications and engineered composites for eco-friendly wood substitutes, proudly announces its fifth order from China United Engineering Corporation (CUC) for industrial coatings. Exousia Chairman & CEO, J. Wayne Rodrigue, explained, “The significance of this order is that it represents the ongoing cycle of business that Exousia is striving to achieve. Every day, we gain momentum as our order flow increases at our now established plant in China.”

CUC is a large-scale engineering, design, and construction enterprise headquartered in Hangzhou, China. CUC engages in numerous project categories including general contracting, infrastructure and industrial projects. “We look forward to expanding our relationship with CUC and to Exousia’s future growth throughout China,” conclud! ed Mr. R odrigue.

About China United Engineering Corporation

China United Engineering Corporation (CUC) is a large-scale scientific and technological enterprise headquartered in Hangzhou in China’s central region. CUC engages in numerous project categories including general contracting, infrastructure and industrial projects. More information on CUC can be found at http://en.chinacuc.com.

About Exousia Advanced Materials, Inc.

Exousia manufactures advanced resins, engineered particles, high-performance coatings and structural products. Exousia products enhance strength, durability, cost effectiveness and performance for a wide range of manufacturing, commercial and construction applications. The Company serves both domestic and international markets. Additional information on Exousia can be found at http://www.exousiacorp.com.

FORWARD-LOOKING STATEMENTS

Statements released by Exousia Advanced Materials, Inc. that are not purely historical are forward-looking within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company’s business prospects and performance. The company’s actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental and technological factors as discussed in the company’s filings with the SEC on Forms 10-K, 10-Q and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.

Source: Exousia Advanced Materials, Inc.

Keep a close eye on EXOU today, do your homework, and like always BE READY for the ACTION!

Is FLIR's Stock Expensive by the Numbers?

2012-01-17T05:13:00.001-08:00

Numbers can lie -- but they're the best first step in determining whether a stock is a buy. In this series, we use some carefully chosen metrics to size up a stock's true value based on the following clues:

The current price multiples.
The consistency of past earnings and cash flow.
How much growth we can expect.

Let's see what those numbers can tell us about how expensive or cheap FLIR Systems (Nasdaq: FLIR ) might be.

We'll look at the numbers against some competitors and industry mates: L-3 Communications Holdings (NYSE: LLL ) , Lockheed Martin (NYSE: LMT ) , and Honeywell International (NYSE: HON ) .

The current price multiples
First, we'll look at most investors' favorite metric: the P/E ratio. It divides the company's share price by its earnings per share -- the lower, the better.

Then, we'll take things up a notch with a more advanced metric: enterprise value to unlevered free cash flow. This divides the company's enterprise value (basically, its market cap plus its debt, minus its cash) by its unlevered free cash flow (its free cash flow, adding back the interest payments on its debt). Like the P/E, the lower this number is, the better.

Analysts argue about which is more important -- earnings or cash flow. Who cares? A good buy ideally has low multiples on both.

FLIR has a P/E ratio of 18.5 and an EV/FCF ratio of 29.9 over the trailing 12 months. If we stretch and compare current valuations to the five-year averages for earnings and free cash flow, FLIR has a P/E ratio of 19.9 and a five-year EV/FCF ratio of 23.3.

A positive one-year ratio under 10 for both metrics is ideal (at least in my opinion). For a five-year metric, under 20 is ideal.

FLIR ! has a mi xed performance in hitting the ideal targets, but let's see how it compares against some competitors and industry mates.?

Company	1-Year P/E	1-Year EV/FCF	5-Year P/E	5-Year EV/FCF
FLIR Systems	18.5	29.9	19.9	23.3
L-3 Communications Holdings	7.1	7.4	7.7	7.7
Lockheed Martin	8.8	11.3	8.9	9.4
Honeywell International	15.7	25.0	18.3	14.5

Source: S&P Capital IQ.

Numerically, we've seen how FLIR's valuation rates on both an absolute and relative basis. Next, let's examine...

The consistency of past earnings and cash flow
An ideal company will be consistently strong in its earnings and cash flow generation.

In the past five years, FLIR's net income margin has ranged from 13.7% to 20.6%. In that same time frame, unlevered free cash flow margin has ranged from 8.2% to 22.2%.

How do those figures compare with those of the company's peers? See for yourself:

Source: S&P Capital IQ; margin ranges are combined.

Additionally, over the last five years, FLIR has tallied up five years of positive earnings and five years of positive free cash flow.

Next, let's figure out...

How much growth we can expect
Analysts tend to comically overstate their five-year growth estimates. If you accept them at face value, you will overpay for stocks. But while you should definitely take the analysts' prognostications with a grain of salt, they can still provide a useful starting point when compared to similar numbers from a company's closest rivals.

Let's start by seeing what this company's done over the past five years. In that time period, FLIR has put up past EPS growth rates of 16.5%. Meanwhile, Wall Street's analysts expect future growth rates of 14.8%.

Here's how FLIR compares to its peers for trailing five-year growth:

Source: S&P Capital IQ; EPS growth shown.

And here's how it measures up with regard to the growth analysts expect over the next five years:

Source: S&P Capital IQ; estimates for EPS growth.

The bottom line
The pile of numbers we've plowed through has shown us the price multiples shares of FLIR?are trading at, the volatility of its operational performance, and what kind of growth profile it has -- both on an absolute and a relative basis.

The more consistent a company's performance has been and the more growth we can expect, the more we should be willing to pay. We've gone well beyond looking at an 18.5 P/E ratio, and we see that its price multiples are elevated for companies linked to the defense industry. Its multiples are higher than each of its comps.

However, looking at margins and growth over the last five years, FLIR also beats L-3, Lockheed, and Honeywell. On an absolute basis, its margins are quite impressive.

Although FLIR's price multiples ! are expe nsive, its operational numbers could justify them. Our CAPS community rates FLIR four stars out of five despite the uncertainty of defense budgets. But these initial numbers are just a start. If you find FLIR's numbers or story compelling, don't stop. Continue your due diligence process until you're confident one way or the other. As a start, add it to My Watchlist to find all of our Foolish analysis.

I wrote about a stock that's flying under the radar in our brand new free report: "The Stocks Only the Smartest Investors Are Buying." I invite you to take a free copy to find out the name of the company I believe Warren Buffett would be interested in if he could still invest in small companies.

Searing Heat for Sears Stock (SHLD)

2012-01-17T00:45:00.001-08:00

I recently wrote that consumer behavior was changing dramatically in the face of rising oil prices. Demand is down and interest in smaller, more fuel efficient vehicles is growing. The great thing about capitalism is that if we fail to change our ways, markets will do it for us. What is just beginning to happen with oil and consumer behavior is happening on the corporate level dealing with a slowing economy.

That is to say, competition for a share of the consumer dollar is fiercer than at any other time in recent history. Corporations that adapt to the new field of play will survive. Those that don’t won’t.

Let’s take a look at stock pick Walmart (WMT). For most of the new millennium, WMT was getting taken to the cleaners by sleek rival Target (TGT).

Seen mostly as a bargain bin basement with little knack for style, WMT had trouble prying extra dollars away from the consumer. TGT had little trouble increasing dollars spent at its stores as they focused on luxury brands and style at low prices.

That worked great in an expanding economy, but what happens when that growth disappears? (For more on Target’s recent share decline you’ll want to read, “Why are Target Shares Off Target?”)

We are seeing the results before our very eyes. All of a sudden that bargain basement doesn’t look so bad with oil prices hitting $135 per barrel!

In fact, the ChangeWave Alliance has been showing tremendous strength for both Wal-Mart and Cosco since late February. For more details, check out Paul Carton’s recent article, “World Takeover By Wal-Mart and Costco (COST).”

Behavior is changing, and that change is benefiting WMT as they remain focused on pushing lower pr! ices to its consumers.

Target is not faring as well. Those little extra spending sprees by its customers are no longer the norm and as a result TGT results have been less than stellar. TGT will have to find a new formula that will work given the current and expected conditions moving forward.

With the game still being played, it will be interesting to see how things pan out for both companies.

One company that is not faring so well in the current environment is… Sears Holding (SHLD). The star child of private equity guru, Eddie Lampert, SHLD has not fared well with the collapse in economic activity. Highly leveraged to the homebuilding cycle, sales of its large consumer items like dishwashers, refrigerators and laundry machines dropped hard as new home sales fell.

As a result of the slowing sales, shares of SHLD have lost more than $100 per share in just the last year alone. What had been a former high flyer enjoying the benefits of monetizing real estate holdings is now simply a retail stock playing in a very difficult field under very difficult circumstances.

Does Eddie Lampert have it in him to change behavior in a way that generates positive results for shareholders? I’m not so sure. While Mr. Lampert has the skills as a financier, does he have what it takes to adapt to intense competition?

I would be worried if I were a SHLD shareholder. Just today, the company announced that it had lost $56 million in the first quarter coming fall short of Wall Street estimates. Sales dropped 6% as the company blamed higher fuel and food costs for its woes.

The blame game is a natural reaction, but I think SHLD needs to look hard in the mirror. There are retailers that are adapting well to the current environment and even those that may have had trouble in the early stages adjusting strat! egy in a way that is already showing results.

That is not happening at Sears.

Where we go from here is anyone’s guess. I can give Lampert a free pass in the short term, but there needs to be a plan for going forward.

The bottom line: will the company better manage inventories improving its mix of products to enhance sales even in this difficult market? If they do, SHLD will bounce back big. If not, it will be more pain for shareholders.

One market that is still growing and growing fast is China. And more importantly, competition is not nearly as fierce as it is in the United States. Check out Robert Hsu’s China Strategy letter for the companies that can be expected to prosper in that environment.

Jamie Dlugosch
Executive Editor, InvestorPlace

Join China Strategy risk-free today, and Robert Hsu bring you the latest news and developments from China. He’ll tell you how to profit from this extraordinary global opportunity and which companies and industries to avoid. Be among the first to know which companies to buy and when by joining China Strategytoday. Don’t miss out!

SEC to appeal rejected Citigroup settlement

2012-01-16T20:15:00.001-08:00

NEW YORK (CNNMoney) -- The Securities and Exchange Commission is appealing a federal judge's decision last month to toss out a proposed $285 million mortgage securities fraud settlement between the agency and Citigroup.

Federal judge Jed Rakoff ruled on Nov. 28 that the deal between the SEC and Citi was "neither fair, nor reasonable, nor adequate, nor in the public interest" and ordered the case to proceed to trial in July 2012.

He said that the settlement announced in October, under which Citigroup (C, Fortune 500) neither admitted nor denied the SEC's allegations, deprived the public "of ever knowing the truth in a matter of obvious public importance."

The SEC argued in a statement Thursday that the ruling "inadvertently harms investors by depriving them of substantial, certain and immediate benefits."

"We believe the court was incorrect in requiring an admission of facts -- or a trial -- as a condition of approving a proposed consent judgment," said the agency. It argued Rakoff's ruling would set a new standard for settlements that would be difficult to reach and that it is at odds with established practice.

Big bank SEC settlements: Toothless face-savers?

"Courts have routinely approved settlements in which a defendant does not admit or even expressly denies liability, exactly because of the benefits that settlements provide," said the agency.

The SEC said the $285 million proposed settlement, "while less than investor losses, represents most of the total monetary recovery that the SEC itself could have sought at trial. An SEC settlement does not limit the ability of injured investors to pursue claims for additional relief."

Rakoff said in his ruling that given the damage done to financial markets by the alleged actions by Citigroup, a greater level of transparency is needed.

JPMorgan pays $153 million to settle mortgage case

"[I]n any case like this that touches on t! he trans parency of financial markets whose gyrations have so depressed our economy and debilitated our lives, there is an overriding public interest in knowing the truth," Rakoff, a U.S. district judge in Manhattan, wrote in his decision.

The SEC's pattern of allowing big banks to reach settlements without admitting or denying wrongdoing, Rakoff added, has been "hallowed by history, but not by reason."

Citigroup did not have an immediate reaction to the SEC's appeal. At the time of Rakoff's ruling, a spokeswoman for the banking giant said it respectfully disagreed with the decision.

"In the event the case is tried, we would present substantial factual and legal defenses to the charges," she added.

The SEC alleged that in 2007, Citi created and sold a mortgage-related collaterialized debt obligation, or CDO, called Class V Funding III.

According to the SEC complaint, one CDO trader characterized the asset group in internal communications as "a collection of dogshit" and "possibly the best short EVER!"

Can Wall Street thrive again?

In marketing materials, however, the assets were described as "attractive investments rigorously selected by an independent investment adviser," Rakoff's decision said.

After marketing the CDO, Citi then took a short position -- or bet against -- the security as the housing market deteriorated, bringing in a net profit of $160 million for the bank. Meanwhile, investors lost more than $700 million.

The SEC has settled a string of similar complaints in recent months, including agreements with Goldman Sachs (GS, Fortune 500) and JPMorgan Chase (JPM, Fortune 500).

Rakoff, though, has been a thorn in the agency's side in recent years, rejecting a proposed $33 million settlement in 2009 between the SEC and Bank of America (BAC, Fortune 500) over allegations that BofA lied about bonuses for Merrill Lynch & Co. employees following the firms' merger.

That settlement ! was late r revised upward to $150 million, which Rakoff reluctantly approved, calling it "half-baked justice at its best."

Shares of Citi (C, Fortune 500) closed down 0.5% in trading Thursday.

Favorite Large Bank Picks For Jan-2012

2012-01-16T15:49:00.003-08:00

Yesterday, major regional banks (fourteen in number) sported gains of almost 1.16 percent, collectively. Among these banks, Bank of America's share price gained the least ($0.18), while? M&T Bank Corp's share price gained the most ($3.8).

Share price gains were surprising given that the Federal Reserve proposed steps to strengthen regulation and supervision of large bank holding companies with consolidated assets equal to or greater than $50 billion or those designated to be systemically important. The proposals include risk-based capital and leverage requirements implemented in two phases that would include subjection to the Fed's capital plan rule that requires firms to develop annual capital plans, conduct stress tests, and maintain adequate capital ratios, as well as a proposal issued by the Fed to implement a risk-based capital surcharge based on the framework and methodology developed by the
Basel Committee on Banking Supervision. Firms would also be subjected to annual stress tests. Credit exposure of a covered financial firm would be limited to a single counterparty as a percentage of the firm's regulatory capital. The Fed noted that it is proposing that firms would need to comply with many of the enhanced standards a year after they are finalized. Requirements related to stress tests would take effect shortly after the rule is finalized.

Compliance with Fed's proposals would not only increase regulatory costs but would also limit strategic options for these banks. So Fed's announcement should have had a negative impact. Yesterday that didn't happen but would surely happen as the market digests the import of Fed's proposals. This should lead to adjustments, positive on some and negative on some other, in the share prices of these fourteen banks. Though I am not giving the workings of the detailed share price impacts, nevertheless I will pick my favorite stocks among these fourteen.

Fifth Third Bancorp? (NASDAQ:FITB)

Fifth Third! 's capit al position is already well in excess of established standards, likely standards, and most peers. Holding company cash is currently sufficient for more than 2 years of obligations. Minimal holding company or bank debt maturities until 2013, so need for new capital at above peer average cost of marginal capital is minimal. Fifth Third has completely exited all crisis-era government support programs and it is one of the few large banks that
have no TLGP-guaranteed debt to refinance in 2012. In addition, it has no direct European sovereign exposure; total exposure to European peripheral borrowers is less than $0.2 billion and gross exposure to European banks less than $0.3 billion.

I expect FITB share to test $15.5 and establish $15 in January 2012.

State Street Corporation? (NYSE:STT)

STT has two powerful platforms for growth namely State Street Global Services ($21.5 trillion in assets under custody and administration), and State Street Global Advisors (1.9 trillion in assets under management). Nearly 78 of its top 100 clients use both asset servicing and asset management and they account for about 35% of total management fee revenue (YTD 2011).

As of end September 2011, STT's tier 1 common ratio was 16 percent,which is significantly higher than 12.5 percent for The Bank of New York Mellon Corporation? (NYSE:BK), and 11.8 percent for Northern Trust Corporation? (NASDAQ:NTRS). Moreover, even under Basel III, STT's tier 1 common ratio was 11.7 percent, which is significantly higher than 6.5 percent for The Bank of New York Mellon Corporation (NYSE:BK), and 11.8 percent for Northern Trust Corporation (NASDAQ:NTRS).

I expect STT share to test $50 and establish $49 in January 2012.

Other stocks that I think could benefit include SunTrust Banks, Inc.(NYSE:STI), U.S. Bancorp (NYSE:USB), and JPMorgan Chase & Co. (NYSE:JPM).{$end}

Buy, Sell or Hold: The Clorox Co. (NYSE:CLX) Is Cleaning Up

2012-01-16T15:49:00.001-08:00

The Clorox Co. (NYSE:CLX) on Thursday reported net earnings of $171 million on sales of $1.52 billion for the fourth quarter of fiscal year 2010 ended June 30, compared to net earnings of $170 million on net sales of $1.5 billion the year prior.

This continued the company's trend of improvement. But more importantly, the bulk of Clorox's profit and margin growth came from its international unit, and the firm projected an expansion in earnings per share of at least 10% to 14% for next fiscal year.

Boring is beautiful when you're dealing with consumer staples, since share prices improve with incremental increases in sales and margins. In Clorox's case, this has meant taking advantage of low rates and dependable cashflow to finance expansion plans. But the good news is that the high financial leverage results in an exorbitant return on equity.

Clorox's strong cashflow affords the company very comfortable debt coverage ratios. Its level of debt to earnings before income tax, depreciation and amortization (EBITDA) has declined in the last three years from 3.3-times to 2.2-times, improving its creditworthiness. Clorox's interest coverage ratio (EBITDA to interest expense) also has improved strongly, to 8.96-times from 6.27-times. This trend has warranted an improvement in the firm's credit rating outlook, which in the investment grade is BBB+ to stable.

There is no question that this is a sound strategy with interest rates so low. A few years from now, as interest rates normalize and the cost of debt goes up, this strategy will be more costly. But, by that time, the company's effort to improve its earnings/debt ratio will have put it in a better position to face higher borrowing costs.

Of course, there's more to Clorox's recent success than shrewd borrowing.

In the past two years the company has set out to recover the slight profit ! margin e rosion brought on by the economic disaster. And in that time, Clorox has recovered much its lost market share through disciplined cost cutting, better pricing power and lower commodity prices. You see, in this business, little differences add up. That means careful marketing, advertising, distribution and cost controls, as well as an optimal financing structure are of paramount importance. And that's precisely where Clorox has excelled.

For example, Clorox is already number two in U.S. market share, behind The Procter & Gamble Co. (NYSE: PG). In fact, Clorox is ranked in the top two in almost every one of its key brands. And those brands represent 88% of the company's total portfolio.

While double-digit earnings growth is achievable via growth in both its core U.S. operations and in its international units, do not expect miracles. The likely range for outperformance or underperformance is relatively small at first sight. Yet, the relatively low weight of international sales within the company and a proven capacity for successful and profitable innovation make its objectives achievable. There is some room for upside surprises with both new products and developments in fast-growing emerging economies.

Clorox concentrates some 71% of its international presence in home cleaning and bleach and laundry products in Latin America. And the fact that Asia today represents only 5% of sales is actually a plus, since it leaves lots of room for improvement in the long term. So, we have a superbly managed marketing company, with plenty of room to grow internationally.

This success is the result of a carefully managed process that prioritizes margin and market share expansion, allocating resources based on economic profit. We expect continued margin improvement through the continuation of relentless cost savings initiatives, information technology investment, and innovation. In addition, market s! hare imp rovement will come from the launching of carefully targeted products - the emphasis being in value and superior customer perception.

Health and wellness are key themes that will drive future growth. Clorox has very sophisticated market segmentation, product positioning and overall marketing strategy in these sectors. It is bound to deliver results, based on their proven track record.

Earnings momentum is at its back due to a mix of carefully tested marketing and financial initiatives. The stock is valued at 13-times earnings at a nice discount to the Standard & Poor's 500 Index. Its Price/Earnings/Growth (PEG) ratio is high at 1.43, though not disqualifying.

We can overpay a little for growth that we are pretty certain lies ahead. And Clorox offers an attractive 3.4% dividend yield. That dividend is easily sustainable at a dividend payout ratio of only 47%. In fact, it was just raised by 10% in May.

Technically, the stock is almost "boringly" bullish. Its 200-day moving average shows a very steady upward slope. At just over $64 a share Clorox is sitting right near its 50-day moving average and in the middle of the Bollinger bands, in an oversold condition. This bodes very well for an entry point.

However, the stock also is approaching the 2007 all-time high, so it should start showing some short-term resistance. So what is the investment proposition?

With this type of stability and high dividend yield, Clorox should be a core holding in any portfolio that is not purely speculative. Rather than sitting in ten-year U.S. Treasury bonds, we can sit on Clorox stock, get paid much more and have the upside of a first-class equity that can actually adjust prices up if inflation becomes a problem.

If we see some resistance here, we could run a short-term covered-call strategy: Buy the stock and sell some out of the money calls on it. The one-month calls we sell lower our entry poi! nt in th e stock by the amount of premium we collect and would probably expire worthless. The traditional risk-minimization strategy is to dollar-cost average into the stock over the next couple of months.

Recommendation: Dollar-cost average into The Clorox Co. (NYSE:CLX) on a weekly basis over the next two months (**).

(**) - Special Note of Disclosure: Horacio Marquez holds no interest in The Clorox Co.

[Editor's Note: Horacio Marquez knows how to make a market call. It was Marquez who told investors that lithium was going to be big - a year before other "experts" made the same call. Now Marquez has isolated the major profit opportunities being created by the possible broadband breakdown - a situation that the news media is only just now starting to understand. To find out all about those top profit opportunities, check out this new report.]

Polo Ralph Lauren Corporation (RL) Closes 2.73% Higher

2012-01-16T11:28:00.001-08:00

Shares of Polo Ralph Lauren Corporation (NYSE: RL) jumped more than 3% in today's trading. The stock reached a high of $89.26 in trading, and closed 2.73% higher at $88.12. Volume was up from daily average of 1.01 million to 5.58 million.

Earlier today, Polo Ralph Lauren reported its fourth quarter and fiscal 2010 results. The company reported fourth-quarter net income of $114 million, or $1.13 per share, up from $45 million, or $0.44 per share reported in the fourth quarter of previous year. For fiscal 2010, the company reported net income of $480 million, or $4.73 per share, up from $406 million, or $4.01 per share reported in fiscal 2009. Revenue increased 9% to $1.3 billion in the fourth quarter. For the full fiscal year, revenue fell 1% to $5 billion. The decline has been mainly due to lower global wholesale shipment volumes. In the fourth quarter the company opened three directly operated freestanding stores, while it closed two directly operated freestanding stores. It also took over 16 freestanding stores and 75 concession shop locations in Asia.

Commenting on the results, Ralph Lauren, the company's chairman and CEO, said that in fiscal 2010, the company saw tremendous growth????????? and progress. Lauren said that the successful takeover Asian operations, development of accessories products and opening of several luxury stores were the highlights of fiscal 2010. With more than $1.2 billion in cash and investments on its balance sheet, the company is planning to accelerate investments in growth initiatives during fiscal 2011.

But where will this growth come from? The U.S. market is only just recovering. Consumer spending, the backbone of the U.S. economy, is seeing a rebound. But, it is still way below the pre-crisis levels. Europe is even worse. With all the troubles that the continent has been growing through, it looks like a recovery is a long way off. This leaves the company with just the Asian markets. In fiscal 2010, the company took contro! l of the Asian operations and this gives a signal that it is ready to focus more on these markets. This is a step in the right direction.

The stock has seen a lot of price fluctuations in the past year. It has a 52-week range of $48.07-$95.59. The stock has a beta of 1.60. Currently, the stock is trading above its 50-day and 200-day moving averages.

About BeaconEquity.com

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

Duke Energy Corporation posted a Year Record Price - NYSE:DUK

2012-01-16T06:59:00.001-08:00

Duke Energy Corporation (NYSE:DUK) achieved its new price of $20.89 where it was opened at $20.95 up 0.37 points or +1.81% by closing at $20.86. DUK transacted shares during the day were over 10.20 million shares however it has an average volume of 14.63 million shares.

DUK has a market capitalization $47.80 billion and an enterprise value at $45.53 billion. Trailing twelve months price to sales ratio of the stock was 1.91 while price to book ratio in most recent quarter was 1.20. In profitability ratios, net profit margin in past twelve months appeared at 12.89% whereas operating profit margin for the same period at 20.61%.

The company made a return on asset of 3.11% in past twelve months and return on equity of 8.21% for similar period. In the period of trailing 12 months it generated revenue amounted to $14.31 billion gaining $10.76 revenue per share. Its year over year, quarterly growth of revenue was 0.50% holding -29.60% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $2.18 billion cash in hand making cash per share at 1.64. The total of $20.11 billion debt was there putting a total debt to equity ratio 87.83. Moreover its current ratio according to same quarter results was 1.23 and book value per share was 17.11.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 1.19% where the stock current price exhibited up beat from its 50 day moving average price $20.46 and remained above from its 200 Day Moving Average price $19.30.

DUK holds 1.33 billion outstanding shares with 1.33 billion floating shares where insider possessed 0.25% and institutions kept 47.70%.

Looking for a Fixer-Upper? Try Home Center Stocks

2012-01-16T02:30:00.001-08:00

This is not the best of times to be in retail in general, or home-related retail in particular, but it may be the moment for investors to look at hardware store stocks.

Let's look at the hardware big boxes, where there is plenty of room for improvement in the market. Just in mid-November, Home Depot CEO Frank Blake was telling analysts: "Inventories remain high, pricing is under pressure and credit is still difficult."

That pretty much sums it all up for hardware stores. All the plastic, copper, and lumber you need for pipes, wiring, and two-by-fours is having commodity price pressures. And that means margin pressure. At the same time, the hardware chains are having to invest in improving store facilities after taking costs out to balance their books earlier in the recession.

Neither Home Depot (NYSE: HD ) nor Lowe's (NYSE: LOW ) is baking a housing recovery into its 2012 estimates, so if housing were to surprise even slightly on the upside, the effect on their stocks could be noticeable.

Housing: still in the doghouse
The biggest snag for home center chains has been simply that the housing slump has lasted longer than expected, leaving them no room for error. At first, they cut costs and moved focus from selling to construction pros to pushing moderately priced stuff such as paint and flooring to DIY homeowners fixing the homes they couldn't sell.

But by the end of 2011, they had made real structural changes, closing stores and investing in technology to make store operations more efficient. That meant higher capital expense at a time when inventory costs were also under pressure.

In Lowe's case, it added a fair amount of expenses as part of its latest restructuring, which included overhauling inventory and closing stores. The latest move was buying online retailer ATG at the end of the year. Like many retailers, Lowe's needed a ha! ndle on e-commerce and decided to buy instead of build.

However, there is good news as well. COO Robert Hull indicated Lowe's is expected to crank out about $2.1 billion in free cash flow during the next fiscal year. Lowe's managers also said they've laid out a five-year plan to get them to 2015 with no expectation of a "frothy housing market."

Lowe's is where Home Depot was a couple of years ago, trying to fix stores and boost sales, and its stock has been driven down by those issues, which gives it a bit more upside potential. Fool Austin Smith likes Lowe's over Home Depot as a better shareholder value for buying back far more of its shares.

And Home Depot has burned through quite a bit of upside potential already. It was one of the best performers in the Dow in 2011, as The Fool pointed out recently. It hit its 52-week high recently, and as fellow Fool Dan Caplinger mentioned, it's expensive and investing in it requires faith in the housing recovery, so the short-term upside is slim.

But Home Depot has been paying dividends regularly and accelerated its share repurchase plan last year. If you're a value investor, there are worse places to be in retail than a sector leader who pays regular dividends.

It's up to you whether you want to back the favorite or the scrappy upstart. But keep in mind, the U.S. is not Japan -- retail is not facing a lost decade. Housing and consumer spending will pick up, because Americans are shoppers and homeowners by nature. Saturday morning at the hardware store is not a ritual in danger of extinction.

So if you are hoping for a real retail recovery, invest in Home Depot, Lowe's, or even Orchard Supply Hardware -- these days, it beats putting your money on stocks of clothing chains or bookstores -- but keep a long horizon.

If you're interested in the Dow's top stocks on your quest for great dividend-paying stocks, The Motley Fool has compiled a special free report outlining our 11 favorite dependable dividend-paying stocks.! It's ca lled "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your free copy today! Just click here to discover the winners we've picked.

Oracle Flies Past Targets & Taking Share (ORCL, SAP, IBM)

2012-01-15T22:03:00.001-08:00

Oracle Corp. (NASDAQ: ORCL) just posted earnings. Its GAAP EPS was $0.25 but non-GAAP was $0.31 EPS on revenues of $5.3 Billion. First Call had estimates at $0.27 non-GAAP EPS on revenues of $5.04 Billion. Look at these metrics individually:

software license revenues up 35%, the strongest growth of any quarter in ten years,
software license sales up 38%
applications new license sales grew 63% compared to SAP’s new license sales growth rate of 15%

QUOTES FROM OFFICERS:

Charles Phillips, president, said, "We like our growth strategy of expanding beyond ERP into high-end industry specific vertical software in contrast to SAP’s strategy of moving down market to sell ERP systems to small companies."
CEO Larry Ellison said, "Our database and middleware new license sales grew 28% in Q2. We continue to take market share from IBM in both product categories."

While the earnings guidance is not yet out, this last quarter was a phenomenal report and it is really hard to call anything bad so far. When it offers guidance, First call has next quarter’s estimates at $0.29 EPS and $5.19 Billion in revenues and it has fiscal May 2008 shows estimates at $1.22 EPS on almost $21.5 Billion.

Oracle’s stock closed down 2.3% at $20.76 today, and shares are at $21.70 in after-hours trading. The 52-week trading range is $15.97 to $23.00.

Jon C. Ogg
December 19, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.

5 Undervalued Recession-Proof Stocks

2012-01-15T17:39:00.001-08:00

Markets were crushed Thursday on signs of slowing growth in China and Germany and a gloomy economic outlook from the Federal Reserve, reported CNBC. In response, investors fled to the safety of the U.S. dollar and government bonds.

The U.S dollar climbed 1.36%, which pushed down U.S crude oil prices by more than 5%. Gold dropped nearly $50/ounce and European stocks fell 4% to a two-year low, "dragging an index of global equities to a one-year trough." This was all before 11 a.m.

Market volatility isn't going anywhere, and more cloudy days may still be ahead for the global economy.

So how can you prepare yourself for more market losses?

For ideas, we went back into time, and identified a list of stocks that outperformed the market during each of the last three big market downturns over the last decade (Oct. 1, 2007 to March 2, 2009, April 19, 2010 to June 28, 2010, and July 18, 2011 to the present).

In addition, all of these stocks appear to be undervalued, when comparing levered free cash flow to enterprise value.

Considering the track record of these companies during downturns, are they being underestimated by the market?

List sorted by each stock's average alpha relative to the S&P 500 during the three downturns over the last decade. (Click here to access free, interactive tools to analyze these ideas.)

1. Arch Capital Group (Nasdaq: ACGL ) : Provides insurance and reinsurance products worldwide. Between Oct. 1, 2007 and March 2, 2009: Price changed from $25.16 to $17.52, a price return of -30.37% (alpha of 24.33%). Between April 19, 2010 to June 28, 2010: Price changed from $25.29 to $25.47, a price return of 0.71% (alpha of 10.98%). Between July 18, 2011 and Sept. 18, 2011: Price changed from $32.32 to $33.65, a price return of 4.12% (alpha of 10.97%). [Average Alpha: 15.43%] Levered free cash flow at $527.50M vs. enterprise value at $4.15B (implies an LFCF/EV ratio at 12.71%).

2. Mea dowbrook Insurance Group (NYSE: MIG ) : Operates as a specialty commercial insurance underwriter and insurance administration services company in the United States. Between Oct. 1, 2007 and March2, 2009: Price changed from $8.72 to $5.58, a price return of -36.01% (alpha of 18.69%). Between April 19, 2010 to June 28, 2010: Price changed from $7.97 to $8.77, a price return of 10.04% (alpha of 20.3%). Between July 18, 2011 and Sept. 18, 2011: Price changed from $9.49 to $9.51, a price return of 0.21% (alpha of 7.06%). [Average Alpha: 15.35%] Levered free cash flow at $53.57M vs. enterprise value at $527.85M (implies an LFCF/EV ratio at 10.15%).

3. Synopsys (Nasdaq: SNPS ) : Provides technology solutions used to develop electronics and electronic systems worldwide. Between Oct. 1, 2007 and March 2, 2009: Price changed from $27.47 to $17.94, a price return of -34.69% (alpha of 20.01%). Between April 19, 2010 to June 28, 2010: Price changed from $23.03 to $21.96, a price return of -4.65% (alpha of 5.62%). Between July 18, 2011 and Sept. 18, 2011: Price changed from $24.15 to $25.99, a price return of 7.62% (alpha of 14.47%). [Average Alpha: 13.37%] Levered free cash flow at $294.70M vs. enterprise value at $2.56B (implies an LFCF/EV ratio at 11.51%).

4. MKS Instruments (Nasdaq: MKSI ) : Provides instruments, subsystems, and process control solutions that measure, control, power, monitor, and analyze parameters of manufacturing processes worldwide. Between Oct. 1, 2007 and March 2, 2009: Price changed from $19.35 to $11.75, a price return of -39.28% (alpha of 15.42%). Between April 19, 2010 to June 28, 2010: Price changed from $20.7 to $20.26, a price return of -2.13% (alpha of 8.14%). Between July 18, 2011 and Sept. 18, 2011: Price changed from $24.86 to $24.65, a price return of -0.84% (alpha of 6.01%). [Average Alpha: 9.86%] Levered fr! ee cash flow at $128.07M vs. enterprise value at $707.26M (implies an LFCF/EV ratio at 18.11%).

5. Fresh Del Monte Produce (NYSE: FDP ) : Produces, transports, sources, markets, and distributes fresh and fresh-cut fruit and vegetables worldwide. Between Oct. 1, 2007 and March 2, 2009: Price changed from $28.97 to $17.88, a price return of -38.28% (alpha of 16.42%). Between April 19, 2010 to June 28, 2010: Price changed from $20.89 to $20.84, a price return of -0.24% (alpha of 10.03%). Between July 18, 2011 and Sept. 18, 2011: Price changed from $26.19 to $23.8, a price return of -9.13% (alpha of -2.28%). [Average Alpha: 8.06%] Levered free cash flow at $167.94M vs. enterprise value at $1.43B (implies an LFCF/EV ratio at 11.74%).

Interactive chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

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How to Invest Like Warren Buffett – For Beginners That Want Some Insight

2012-01-15T13:18:00.001-08:00

At the core of all Warren Buffett’s investment decisions is a business man like outlook on stock purchasing. In Warren’s mind, he is not buying a stock ticker; rather, he is buying an actual piece of a company.

So he first analyses the product, the business model that surrounds that product and then the underlying economics that underpin that business model. And if he likes what he sees, then he starts fiddling around with the profit numbers and earnings projections.

Warren likes a business that he can understand. But for Warren, this has a deeper business meaning. A business that he can understand is one in which it has a product or service that does not have to change in order to sell. To Warren, a predictable product equals predictable profits. Coke is fine example of this. The cola product has been the same for over 100 years, so it’s not unreasonable to suggest it will be the same for the next 100 years. This gives Warren better insight in how to forecast future earnings.

Next, Warren needs the business model to have a durable competitive advantage. It is the nature of capitalism to want to crush the other guy. So this is Warren’s stress test. He wants to see if a competitor had 8 billion dollars, what could they do with it? Could they make a dent in the company he wants to invest in? So if Pepsi had 8 billion dollars, could they dent Coke world wide? The answer is a resounding no.

Competent Management is critical in forecasting the performance of future cash flows. Warren understands human nature, in that; people are always compelled to do something stupid when a huge pile of cash is on the radar screen. Bank management is a striking example of this. For this reason, he wants management with a history of having integrity and common sense with respect to how business affairs should be governed. This means no 40 to 1 leverage ratio, no crazy loan portfolio, etc.

Price for the world’s greatest investor needs to be sensibl! e. He us es a discounted cash flow model with a discount rate of 10%. If a company has stable predictable growing earnings and these earnings are protected with a durable competitive advantage than he is willing to pay a premium. His acquisition of Burlington Northern Sante Fe is a good example of this. The railroads can’t be out sourced to India.

In my next article I will talk about discounted cash flow models and finance math and do my best to explain it in basic terms for the beginner investor. This article was just meant as a blueprint for sound investing methods, ones that Warren Buffett subscribes to himself.

Cheers!

Ultimate Market Recap: Amazon Wins with Online Customer Service, Oil and Metals Down

2012-01-15T08:51:00.001-08:00

Wednesday Morning��s Top Stories

After closing down almost 9 percent, shares of?Computer Sciences Corp.?(NYSE:CSC) continue to attract heavy attention.? The company warned it may write down a $1.5 billion contract with Britain��s National Health Service.

Shares of?Morgan Stanley?(NYSE:MS) are edging .20 percent higher in late trading after a report leaked that the bank plans on cutting 580 jobs in New York City.? Other financial firms such as?Goldman Sachs?(NYSE:GS) and?Citigroup?(NYSE:C) are trading lower on the news.

Don��t Miss:?Windows App Developers are Loving the Money

Although IPOs such as?LinkedIn Corp.?(NYSE:LNKD),?Groupon Inc.?(NASDAQ:GRPN) and?Pandora Media Inc.?(NYSE:P) have dominated headlines this year, other IPOs deserve some attention. Forbes recently released a list of the worst IPOs in 2011. The list contains?FriendFinder Networks?(FFN) with a 94% loss from its IPO.?Imperial Holding?(NYSE:IFT) and?Kips Bay Medical?(NASDAQ:KIPS) followed with losses of 83% and 79%, respectively.??Mission New Energy Limited?(NASDAQ:MNEL),?Sequans Communications S.A.?(NYSE:SQNS),?Renren?(NYSE:RENN) and?Tudou Holdings?(NASDAQ:TUDO) also rounded out the list.

Shares of?The New York Times Co.?(NYSE:NYT) are jumping 1.6% in late trading. The media company announced it reached an agreement to sell its Regional Media Group to Halifax Media Holdings for $143 million in cash.

HOT FEATURE:?China Cracks Down on Gold Exchanges>>

Wednesday Morning Hot Stocks

Numerous Asian electronics companies, including?Sharp Corp.?(SHCAY) and Samsung Electronics Co., have agreed to a$550 million-plus settlement for the alleged price-fixing of! LCD scr eens. Consumers will receive partial refunds from a pool of $501 million and about $37 million will pay governments and other public groups for damages, according to Bloomberg.

Don��t Miss:?Iran Threatens to Block Oil Flow Through Vital Strait of Hormuz in Response to U.S. Sanctions.

Italy?(NYSE:EWI) has sold EUR $9 billion euros ($11.8 billion) of six-month bills, with sharply declining yields as compared to November��s auction levels, according to MarketWatch. The sale saw an average yield of 3.25 percent, a decrease from November��s 6.50 percent.

The Obama administration plans to ask Congress to raise the?nation��s borrowing limit?by $1.2 trillion this week, representing the third and last increase from summer��s negotiated deal. On Tuesday, treasury officials said the increase is necessary because the government will be within $100 billion of its current limit by Friday, according to CNBC.

The latest boost will increase the limit to $16.4 trillion, which officials believe should be enough for the government to continue borrowing until 2012��s end�Cright after the presidential election.

Investing Insights:?China Cracks Down on Gold Exchanges.

The?New York Times Co.?(NYSE:NYT) announced that it has agreed to sell its its Regional Media Group, the owner of 16 regional newspapers and other publications, to the privately-owned Halifax Media Holdings for $143 million in cash ($150 million in post-tax proceeds).

The transaction is expected to close in the first quarter of 2012 and the net proceeds will go to general corporate purposes.

Many believed this was the year of an IPO comeback, but 2011 will end with less IPOs than in 2010. The money raised in the offerings will be approximately six percent less than last year and approximately 40 percent below 2007��s peak, reported the Wall Street Journal.?For the companies with U.S. offerings, around two-thirds of them are trading below their IPO prices.?Li! nkedIn C orp.?(NYSE:LNKD),?Groupon Inc.?(NASDAQ:GRPN) and?Pandora Media Inc.?(NYSE:P) have all fallen short after hitting the public markets.

Don��t Miss:?Will Apple Capitalize on the Television Industry?

Wednesday��s Trending Stocks

After falling 27 percent yesterday,?Sears Holdings Corp.?(NASDAQ:SHLD) continues to fall more than 3% early Wednesday after news of Kmart store closings.?Goldman Sachs?(NYSE:GS) remains bearish on shares, and also cut their price target from $43 to $30.? The bank said, ��The weaker fundamentals reaffirmed our view that SHLD��s weak positioning will only be exacerbated in an uncertain environment.��

Investing Insights:?Will Sears Store Closings Affect Chico FAS Shareholders?

Shares of?Overstock.com?(NASDAQ:OSTK) are attracting attention Wednesday morning. The company finished dead last in a survey by ForSee measuring customer satisfaction with online shoppers this holiday season.?Gap Inc.?(NYSE:GPS) finished second to last, and?Netflix?(NASDAQ:NFLX) posted the largest year-over-year decline.?Amazon?(NASDAQ:AMZN) was the big winner again, as its score improved from 86/100 last year to 88/100 this year.

Don��t Miss:?Netflix, Gap Rank Low in Customer Satisfaction.

Shares of?The New York Times Co.?(NYSE:NYT) are receiving a boost this morning after a late Tuesday announcement.? The media company announced it reached an agreement to sell its Regional Media Group to Halifax media Holdings for $143 million in cash.

Apple Inc.?(NASDAQ:AAPL) shares are climbing more than .40% higher this morning. After reporting that Apple will release a TV set in Q2 or Q3, Digitimes reports that Apple will finalize hardware standards for its sets by the end of Q2. Apple may also turn to?Taiwan Semiconductor Manufacturing C! o.?(NYSE:TSM) for assistance.

Wendy��s Company?(NYSE:WEN) fell 1.3% early Wednesday. The company expects to open about 100 or more stores over the next 5 years in Japan. Other fast-food restaurants such as?McDonald��s?(NYSE:MCD) and?Yum! Brands, Inc.?(NYSE:YUM) are also trading lower.

Google Inc.?(NASDAQ:GOOG) is climbing .50% after Goldman Sachs raises estimates and its price target to $685 from $660.? Goldman expects Google��s core search business has the potential to post better-than-expected fourth quarter results.

Don��t Miss:?Iran Threatens to Block Oil Flow Through Vital Strait of Hormuz in Response to U.S. Sanctions.

Market Recap

During Wednesday��s market trading action, the DJIA is off over 100 points to 12,172, the S&P 500 Index is trading above 1,250 and the Nasdaq is trading at 2,598. Here are the stocks driving the Wall Street trader chatter today:

EMCORE Corporation?(NASDAQ:EMKR): Shares of EMCORE Corporation are trading?higher?17% today. The company delivered a wider than expected loss in its earnings report yesterday. Shares are popping heavily following yesterday��s selloff. EMCORE Corporation offers a broad portfolio of products for the broadband, fiber optic, satellite and terrestrial solar power markets. The Company��s products include optical components and systems for high-speed data and telecommunications networks, cable television, and fiber-to-the-premises applications, and products for both satellite and terrestrial power generation.

Cavium Inc?(NASDAQ:CAVM): Shares of Cavium Inc are trading?lower?1.9% today. The company reduced its financial guidance due to weak demand from both the enterprise and service provider markets. Cavium Networks, Inc. provides semiconductor processors that enable intelligent networking, communications and security applications. The Company offers a broad! portfol io of software compatible processors and accelerator boards ranging in performance from 10 Mbps to 10 Gbps.

Sears Holdings Corporation?(NASDAQ:SHLD): Shares of Sears Holdings Corporation are trading?slightly lower?today. Following yesterday��s plunge, Goldman Sachs remains bearish on shares, cutting their price target from $43 to $30. Sears Holdings Corporation is a broadline retailer with full-line and specialty retail stores in the United States and Canada. The Company retails home appliances, as well as tools, lawn and garden products, home electronics, and other products. Sears Holdings also provides automotive repair and maintenance.

Arctic Cat Inc.?(NASDAQ:ACAT): Shares of Arctic Cat Inc. are trading?higher?20% today. The company announced a cash buyback of 6.1 mln class B shares from Suzuki Motor, Arctic Cat Inc. designs, engineers, manufactures, and markets snowmobiles and all-terrain vehicles under the Arctic Cat brand name. The Company also sells personal watercraft products under the Tigershark brand name. In addition, Arctic Cat sells related parts, garments, and accessories.

Medicis Pharmaceutical Corporation?(NYSE:MRX): Shares of Medicis Pharmaceutical Corporation are trading?lower?2% today. The company reduced its fourth quarter earnings guidance. Medicis Pharmaceutical Corporation provides pharmaceuticals focusing on the treatment of dermatological, pediatric, and podiatric conditions, as well as aesthetics medicine. The Company has branded prescription products in therapeutic categories such as acne, asthma, eczema, fungal infections, hyperpigmentation, photoaging, psoriasis, and rosacea.

Endeavour International Corporation?(NYSE:END): Shares of Endeavour International Corporation are trading?higher?12% today. Rodman & Renshaw raised its rating to Outperform from Market Perform with a $12.50 target price. The analyst report is! sues 201 2 upside on strong, oil-weighted production growth. Endeavour International Corporation is an international oil and gas exploration and production company that acquires, explores, and develops energy reserves. The Company conducts operations in the North Sea sectors of the United Kingdom and Norway. Endeavor holds license rights to a 3-D seismic dataset of the North Sea.

Noble Energy, Inc.?(NYSE:NBL): Shares of Noble Energy, Inc. are trading?flat?today. Noble Energy, Inc. is an independent energy exploration and production company. The Company explores for and produces crude oil, natural gas, and natural gas liquids. Noble Energy operates primarily in the Rocky Mountains, Mid-continent, and deepwater Gulf of Mexico areas in the US, with key international operations offshore Israel, the North Sea and West Africa.

Whirlpool Corporation?(NYSE:WHR): Shares of Whirlpool Corporation are trading?flat?today. The company��s shares sold off on the negative news out of retailer Sears Holdings�� store closings. Sears is a distributor of Whirlpool��s products at the retail level. Whirlpool Corporation manufactures and markets major home appliances. The Company��s principal products include laundry appliances, refrigeration and room air conditioning equipment, cooking appliances, dishwashers, and mixers and other small household appliances. Whirlpool��s products are sold worldwide

Piedmont Natural Gas Company Inc.?(NYSE:PNY): Shares of Piedmont Natural Gas Company Inc. are trading?off almost 1%?today. Piedmont Natural Gas Company, Inc. is an energy and services company that primarily transports, distributes, and sells natural gas. The Company serves residential, commercial, and industrial customers in North Carolina, South Carolina, and Tennessee. Piedmont also, through subsidiaries, markets natural gas to customers in Georgia, and distributes propane in various states.

Bank of America ! Corporat ion?(NYSE:BAC): Shares of Bank of America Corporation are trading?lower?3% today. Europe��s central bank reported its overnight deposits hit another record, dragging major banking stocks down today on the fearful news. Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.

Fracking Woes Could Help China Blow Past Us

2012-01-15T04:16:00.001-08:00

It seems like only yesterday that China was characterized by the Great Wall, hordes of bicycles, and nary a thought about starting companies to permit participation in global commerce. Little did we know that it would soon become the major market for the world's commodities, while essentially keeping the U.S. afloat with a stream of loans.
Now its adoption of the controversial hydraulic fracturing process, or fracking, just might allow it to further advance on us. Indeed, that's especially likely if our own fracking activities continue to face a steady flow of challenges.
Fracking involves a process wherein, once a well has been drilled to hydrocarbon-bearing rock (usually shale), the rock is blasted by a mixture of water, sand, and chemicals. Fractures in the rock then allow the trapped gas or liquids to make their exit.
Here comes China
Thus far, China has only taken a few steps with regard to fracking. In its own country, PetroChina (NYSE: PTR  ) has reported some positive results in Sichuan province under the tutelage of Royal Dutch Shell (NYSE: RDS-B  ) . And CNOOC (NYSE: CEO  ) , the country's biggest offshore producer, is involved in U.S. fracking deals with Chesapeake Energy (NYSE: CHK  ) in the Eagle Ford and Niobrara shale plays.
But the country is gearing up to intensify activity on its own field, thereby allowing it to benefit from shale-gas reserves half again larger than our own. To help with the process, CNOOC and China Petrochemical Corp., or Sinopec (NYSE: SHI  ) , are both in line with the likes of Saudi Arabian Oil Co. for a chance to bid for a 30% stake in Texas' sophisticated Frac Tech Holdings, which provides and operates the ! stimulat ion equipment and services that are vital to hydraulic fracturing. ?
The winning bidder will shell out at least $2 billion to join the ranks of current owners. Today, 70% of Frac Tech belongs to a consortium of investment and sovereign-wealth firms from Asia and Abu Dhabi, along with Chesapeake, which is a 30% holder. It's likely that the sale would be facilitated by the issuance of new shares by Frac Tech -- which is also considering joint ventures around the world -- along with sales of a portion of stakes by current holders.
There's no certainty about what sort of regulatory rules will face companies, foreign and state-owned, that ultimately participate in China's fracking expansion. But, with a seeming determination to reduce its choking urban pollution, I'm betting that those rules will lean in the direction of pragmatism and reality, and will generally be intended to enhance the amount of fracking in the country.
Damaged water?
Meanwhile, our own fracking milieu is becoming a bit more shaky. There's long been concern about the chemicals used in fracking fluids and the potential that they could contaminate water tables near the drill sites. But 2011 also has witnessed intensifying concerns that the fracking process is guilty of spawning small earthquakes in the area of "injection wells," where the water is discarded once it's been used.
Concerns about fracking's effect on groundwater have been around for years, but were helped to spread virtually nationwide in 2010 with the release of a documentary film, Gasland, by a Pennsylvania filmmaker. Industry experts maintained that the film was fraught with errors and misinformation, but it nevertheless dealt fracking something of a blow.
More recently, that attention has been focused on Pavillion, Wyo., a town with a population of fewer than 200, whose groundwater the Environmental Protection Agency thinks may have been contaminated, primarily by the wells drilled near it. While the Wyoming wells a! re shall ower, fracking typically takes place at depths exceeding 10,000 feet; most water tables are within 500 feet of the surface.
That, says Mark Miller, CEO of Cuadrilla Resources, is why "it would defy physics" for fracking chemicals to find their way into groundwater. (Earlier this year, Cuadrilla surprisingly made a major natural gas find through fracking operations near Blackpool, England.) Nevertheless, the peripatetic EPA forges on, and, as The Wall Street Journal noted in an editorial, "If the Wyoming study holds up under scrutiny, an industry that employs tens of thousands could be in peril."
Shake it up, baby
Perhaps somewhat more plausible is the contention that pressure imbalances brought about by the discarding of used fracking water into injection wells can result in generally minor earthquakes. As my Foolish colleague Dan Dzombak noted recently, a series of 43 earthquakes that occurred in Oklahoma are thought to have resulted from fracking, a phenomenon that also occurred amid Cuadrilla's efforts in England.
In addition, Arkansas recorded 850 mostly minor events in 2010, up from 38 the prior year. Chesapeake was fracking actively in the state's Fayetteville Shale at the time. The company has since sold its Fayetteville assets to Australia's BHP Billiton (NYSE: BHP  ) .
More than a few industry observers would echo the Journal's concerns about EPA overzealousness potentially leading to a moratorium on fracking in the U.S. As the newspaper also stated in its opinion piece, "The agency is dominated by the anticarbon true believers, and the Obama Administration has waged a campaign to raise the price and limit production of fossil fuels."
Batty excessive environmentalism
But it isn't only fossil fuels that are in environmentalists' scopes these days. Indeed, so-called green fuels attract their attention even before becoming economically viab! le. Amon g the concerns du jour is that bats are being killed by wind turbines, albeit without contact occurring. It seems that the bats' lungs essentially explode from the rapid pressure drop that occurs as air flows over the turbine blades.
Don't get me wrong: I'm not keen on damage to the planet. In fact, I consider myself to be an environmentalist and am most offended by real environmental destruction, such as is brought about by the equivalent of one Deepwater Horizon spill occurring through leakage in Russia every couple of months. But I am also concerned about those who would chase windmills and potentially curtail the operations of domestic natural gas producers, precisely as our Chinese friends are getting cranking.
From an investment perspective, all this is but one reason why my attention to oil-field-services kingpin Schlumberger (NYSE: SLB  ) continues to increase. Given the company's broad reach, poorly grounded domestic regulations will be at least partially offset by its international activities, including those in China. It's also a reason why the company belongs on all Foolish watchlists.

Obama's Second Term Is in Peril as Stocks Sink

2012-01-14T23:56:00.001-08:00
Mitt Romney, Newt Gingrich and Ron Paul may be happy, at least in one respect, that the stock market has fallen this year.
That's because if the S&P 500 Index doesn't surge more than 10% by the end of next week, it might not rise at all in 2012, according to the record books. And that would make it difficult for President Barack Obama to be re-elected.
The benchmark index is down 1.1% in 2011, even after a second day of gains Wednesday. What's befuddling is that equities haven't declined in the third year of a president's term since World War II.
Sam Stovall, chief equity strategist at Standard & Poor's, says the third-year rally is anticipated on the belief that the president will do all he can to remain in office -- most frequently, pushing through stimulative economic legislation to entice voters.
As Stovall puts it: "Since investors are no better than hyperactive first-graders playing musical chairs, they won't wait until year four to see if the stimulus has worked. They buy into equities in the third year in anticipation of the benefits to profits and share prices in the fourth year."
According to Stovall's research, there were six years that the index increased less than 10% in the third year of a presidential term and, in most of those instances, the market dropped in the following year.
High unemployment, a debt downgrade, the failure to pass a deficit-cutting agreement and, most recently, the payroll tax cut debacle haven't given voters much to be confident about during the past year. The lame-duck Congress hasn't helped either.
In only two of the six years that the S&P 500 failed to increase at least 10% in the third year of a term, the incumbent president was re-elected. Of note, one of those incumbents was the highly popular Franklin D. Roosevelt in the race for his third term (1940). While Obama's approval rating has improved recently to 49%, it's close to the lower end of his approval rating range.
The election we are currently facing is most similar to t! he 1948 election when Harry Truman was running for office and was widely expected to lose. He was the incumbent president with a low approval rating, the stock market growth was anemic and it was a tough economic environment. Truman ended up winning the election, but the market declined almost 1% in the election year.
With nothing particularly compelling to look forward to in 2012, investors should brace for a decline in the S&P 500, and voters will need to determine if Obama is worthy of a second term.
-- New York.
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German Stocks Decline as Economy Contracts; Metro, Douglas Shares Retreat

2012-01-14T19:40:00.001-08:00

German stocks dropped, afteryesterday��s biggest rally in a week, as a report showed thatEurope��s largest economy contracted in the final quarter of2011, indicating it may be headed for a recession.
Metro AG (MEO), the nation��s largest retailer, slid after UBS AGadvised selling the shares. Douglas Holding AG (DOU) tumbled 9.8percent after the retailer said earnings this year will decline.Deutsche Bank AG and Commerzbank AG advanced.
The benchmark DAX Index (DAX) dropped 0.2 percent to 6,152.34 atthe close in Frankfurt. The gauge earlier gained as much as 0.3percent as Germany received bids for more than twice the debt ithad planned to sell at an auction. The DAX retreated 15 percentlast year as euro-area leaders struggled to contain the region��sdebt crisis. The broader HDAX Index was little changed today.
��Certainly from a clients�� perspective, European marketsare a bit overbought, especially from the point of thefundamentals of the debt crisis,�� said Will Hedden, a salestrader at IG Index in London. ��We were expecting overallEuropean Union growth figures not to be great, but if Germanyitself will struggle, what��s left for the others?��
Stocks slipped after a report showed that the debt crisiscaused the economy to contract 0.25 percent in the fourthquarter from the third. Growth slowed to 3 percent in 2011, theFederal Statistics Office in Wiesbaden said in an unofficialestimate.
Economists including Christian Schulz at Berenberg Bankpredict that gross domestic product will contract again in thecurrent quarter. A recession is defined as two consecutivequarters of declining GDP.
German Debt Sale
Germany received bids for 8.97 billion euros ($11.4billion) of five-year notes at an auction today, more thandouble its sale target of 4 billion euros, the Bundesbank said.It sold the 0.75 percent notes maturing in February 2017 at anaverage yield of 0.90 percent.
David Riley, head of the sovereign-debt unit at FitchRatings, today said the Europea! n Centra l Bank should increaseits purchases of government bonds to ease pressure on yields.
��We need to have a credible buyer put in place and wedon��t have that at the moment,�� which is ��why we have a numberof sovereigns under review,�� Riley said at an event inFrankfurt today. ��The ECB needs to be more actively engaged,but it can��t save the euro on its own.��
Metro, Douglas Fall
Metro (MEO) retreated 3.3 percent to 28.36 euros. The stock wascut to ��sell�� from ��neutral�� at UBS. Analysts Benjamin Peters and Mike Tattersall wrote in a report that the shareswill probably ��come under increasing pressure from earningsdowngrades.��
Douglas Holding tumbled 9.8 percent to 25.39 euros, itsbiggest decline since June 2001. Europe��s largest retailer ofmakeup and perfumes said earnings this year will drop as itsThalia book shop division struggles with consumers�� shift tobuying literature online.
Deutsche Bank, the nation��s biggest lender, rose 1.7percent to 27.94 euros. Commerzbank, Germany��s second largest,surged 5.1 percent to 1.3 euros. UniCredit SpA, Italy��s biggestbank, gained 5.5 percent as its shares were upgraded by SanfordC. Bernstein & Co. and WestLB AG. The bank plans to raise 7.5billion euros in a rights issue.
Hochtief AG (HOT) advanced 3.4 percent to 46.88 euros, gainingfor a second day. The construction company will form a venturewith its owner, Actividades de Construccion & Servicios SA, tobuild power lines, allowing it to benefit from the change inenergy policy in Germany, the Financial Times Deutschland said,citing a Hochtief spokesman it didn��t name.

Singh Caps ¡®Annus Horribilis¡¯ With Anti-Graft Law Stymied by Upper House

2012-01-14T15:10:00.001-08:00

Prime Minister Manmohan Singh failedto win passage of his anti-corruption bill as an uproar brokeout in India��s upper house of parliament, capping a year ofsetbacks that stirred concern over a wrecked economic agenda.
Proceedings were adjourned late yesterday after a lawmakersnatched papers from a minister and flung them across thechamber. The leader of the main opposition Bharatiya JanataParty in the upper house, Arun Jaitley, accused the governmentof scripting the disturbance as it realized it was unable to wina vote on the measure that would create a graft-fighting agency.
The rebuff is the latest disappointment for Singh, 79,whose championing of free-market policies two decades ago helpedIndia become the second-fastest growing major economy.Allegations of corruption in his cabinet triggered mass proteststhis year, while a failure to contain inflation and a reversalon foreign investment in the retail industry sapped confidencein his administration.
��This is an annus horribilis for the government and theworst thing about it is that the problems are of their ownmaking,�� said Samir Arora, founder of Singapore-based hedgefund Helios Capital Management Pte, referring to the rulingCongress party��s failure to bring along its allies. ��Thegovernment is in complete disarray,�� Arora, who focuses oninvestments in India, said.
Parliamentary Affairs Minister Pawan Kumar Bansal said moretime was needed to consider 187 amendments to the bill that wereproposed by both opposition parties and allies of thegovernment. The bill passed in the lower house on Dec. 27.
��Running Away��
��The government is running away from the house because itis in a hopeless minority,�� Jaitley said. ��A government whichdid not have the numbers in the house has consciouslychoreographed�� events so as to avoid a vote, he said.
A spokesman for Singh��s Congress party, Janardan Dwivedi,denied Jaitley��s accusations and said the government��s rivalshadn��t been serious about wanting to ! pass a b ill to countergraft. ��There was a problem of a time limit,�� he said. ��Hadthe opposition cooperated, the bill could have been passed.��The winter session of parliament had been extended by three daysuntil Dec. 29 to allow for debates on the so-called Lokpal bill.
The setback may reinvigorate demonstrations led by anti-corruption campaigner Anna Hazare, who called off his latestfast to demand tough anti-corruption laws a day early on Dec. 28after finding fewer supporters than he attracted for an earliereffort this year.
Ally Anger
Hazare, 73, grabbed headlines in August with a 13-dayhunger strike that prompted Singh��s government to agree toconsider many of the demands presented by activists.
Proposals for a corruption ombudsman have been introducedto parliament nine times since 1968 without being passed. Thegovernment, which is 28 seats short of a majority in the upperhouse, failed to win the support of one of its largestparliamentary allies, the Trinamool Congress.
��This is a shameful day for India��s democracy,�� saidDerek O��Brien, a Trinamool upper house lawmaker, adding hisparty couldn��t back the bill because it infringed on states��autonomy. ��The government handled this situation very badly.��
The failure to pass the Lokpal bill is symbolic of a yearduring which Singh��s administration has been unable to clinchparliamentary support for promised policies to overhaul ajustice system clogged with millions of cases, change rules onhow farmland is acquired for factories and protect officials whoexpose fraud.
Singh Silent
All are backed up in a legislature that this year passedjust 22 laws, the second-fewest since 1952, according to the NewDelhi-based PRS Legislative Research.
Singh, who was in the chamber, made no statement and therewas no indication whether parliament will meet before its nextsession scheduled to begin in February. The prime minister��sefforts were undone in part by opposition from his party��sallies, an echo of wh! at happe ned to his proposal to let foreigncompanies buy majority stakes in Indian retailers.
That move, suspended Dec. 7, would have let in companiesincluding Wal-Mart Stores Inc., with the aim of helping overhaula national distribution system whose inefficiencies see 40percent of fruit and vegetables rot before they can be sold.Singh said in an interview this month that he plans to revivethe measure after regional elections early next year.
Bureaucracy Slashed
The prime minister��s record of attempts to unshackle theeconomy from regulation, bureaucracy and corruption date back tohis tenure as finance minister in the early 1990s, when hedismantled government monopolies, cut import tariffs andwelcomed foreign investment.
Corruption is an emotional issue in India, where at least12 whistle-blowers were killed and 40 assaulted after seekinginformation under a new Right to Information Act aimed atexposing local graft, according to data compiled by Bloombergfrom January 2010 through mid-October 2011. Enacted by Singh sixyears ago, the legislation became the most powerful tool forfighting wrongdoing in politics and business, with 529,000requests filed in the year through March.
With the legislation to set up the federal anti-graftagency, Singh failed to overcome resistance from his allies,opposition parties and social activists. The debate became themost divisive political issue since his government came closebeing toppled in 2008 over a civil nuclear accord with the U.S.
State Polls
The ruling Congress party faces state elections fromJanuary, including one in Uttar Pradesh, home to a sixth of allIndians. The polls will offer an indication of the government��ssupport two years before national elections are due.
Economic growth is slowing after the central bank raisedinterest rates by a record pace in its effort to tame thefastest inflation among BRIC nations, which include Brazil,Russia and China. India��s economy grew 6.9 percent in the threemonths through Se! ptember, the weakest since the second quarterof 2009.
The central bank��s campaign has had little impact, with thebenchmark wholesale price index climbing 9.1 percent in Novemberfrom a year before, compared with the 9.5 percent pace at thestart of this year. By comparison, China��s inflation rate was4.2 percent in November.
The rupee has weakened about 16 percent against the dollarthis year, Asia��s worst performer, as an exodus by investorssent the Sensex index of stocks down 23 percent, more than the18 percent drop in the MSCI Asia Pacific Index.
Telecoms Sale
Opposition to the Lokpal bill centered on two maincriticisms: the lack of direct control over the country��sleading criminal investigation agency that parties said robbedthe legislation of powers to punish the corrupt; and that itinfringed on the rights of states by forcing them to mold localgraft-fighting agencies to the federal law.
The ombudsman that Singh��s government wanted to createwould have been able to scrutinize the prime minister exceptover issues of national security. It wouldn��t have had directoversight of junior bureaucrats responsible for everyday acts ofpetty corruption that blight business and governance.
Former telecommunications minister Andimuthu Raja,bureaucrats and business executives are on trial accused ofconspiring to award cellphone permits to ineligible companies ina 2008 sale that India��s chief auditor says might have cost thegovernment $31 billion in foregone revenue. Other charges havebeen brought over contracts for the hosting of last year��sCommonwealth Games.