Tuesday, December 31, 2013

Stocks to Watch: US Ecology, Akamai, Dow Chemical

Among the stocks to watch in Monday’s session are US Ecology Inc.(ECOL), Akamai, and Dow Chemical Co.(DOW)

US Ecology again raised its earnings guidance for the year, pointing to strong volumes and accelerated project shipments, but warned its results for next year may take a hit as a result. The company, which provides waste- management and recycling services, also outlined plans to offer about $100 million in stock. Shares dropped 10% to $34.51 premarket.

Dow Chemical said it is exploring a possible sale or spinoff of its commodity chemicals businesses, in a continuation of the chemical company’s push to refocus its efforts. The assets include about 40 manufacturing facilities at 11 sites and nearly 2,000 employees, accounting for up to $5 billion in annual revenue. Shares edged up 1.3% to $39.55 premarket.

Akamai Technologies Inc.(AKAM) agreed to buy Prolexic Technologies Inc. for about $370 million in cash, expanding its cybersecurity offerings. Prolexic, a provider of cloud-based security services for protecting data centers and Internet Protocol applications from distributed denial of service attacks, will be added to Akamai’s services for defending Web sites and Web applications.

With Cyber Monday sales kicking off, observers will be looking for indications about how well Amazon.com Inc.(AMZN) does in fending off increased online competition from its traditionally brick-and-mortar rivals.

Meanwhile, retail giant Wal-Mart Stores Inc.(WMT) said it had its “most successful” Black Friday yet, a day after it had experienced technical issues on its website Thursday due to high volume. Rival Target Corp. also reported strong traffic.

Bank of America Corp.(BAC) said it reached a settlement with Freddie Mac(FMCC) to resolve claims stemming from residential mortgage loans the bank sold to Freddie. The bank plans to pay Freddie Mac about $404 million to resolve all outstanding and potential mortgage repurchase and other claims related to loans sold to Freddie from 2000 to 2009.

Biogen Idec Inc.(BIIB) said the U.S. Food and Drug Administration pushed back the date for potential approval of its treatment for hemophilia B by three months to allow more time to review information the regulator had requested regarding a manufacturing step. The investigational treatment — called Alprolix — is a long-lasting clotting factor in late-stage clinical development.

Calpine Corp.(CPN) agreed to buy a gas-fired, 1,050-megawatt power plant in Texas for $625 million, as part of the wholesale power company’s effort to increase its presence in the Texas market. Calpine is purchasing the plant from MinnTex Power Holdings LLC, a portfolio company owned by a private investment fund managed by Wayzata Investment Partners LLC.

Giant Interactive Group Inc.(GA) named three of its directors to a special committee intended to review a nonbinding proposal to take the online-game company private. Last week, investors including former chief executive Chairman Yuzhu Shi and Baring Private Equity Asia offered to acquire the stake they don’t already own for $11.75 a share.

Hess Corp.(HES) agreed to sell its Indonesian interests for $1.3 billion in cash to fund its share-repurchase program, the latest in the company’s plan to shed assets. The oil and gas company is selling its Pangkah and Natuna A assets — which produced a combined 15,000 barrels of oil a day in the first three quarters of this year — to Indonesian oil companies PT Pertamina (Persero) and PTT Exploration & Production Co.(PTTEP.TH)

Osiris Therapeutics Inc.(OSIR) said Friday a proposed ruling from the Centers for Medicare and Medicaid Services won’t immediately affect reimbursements for its Grafix stem-cell product. The regenerative medicine company said Grafix will maintain its current reimbursement status — also called transitional pass-through status — potentially through late 2015.

Activist investor Starboard Value L.P. nominated its own slate of six candidates to TriQuint Semiconductor Inc.'s(TQNT) board, claiming significant changes are needed to turn around the chip maker’s “prolonged underperformance.”

UnitedHealth Group Inc.(UNH) projected 2014 earnings and revenue below analysts expectations ahead of its annual investor conference in New York. The managed-care provider in October had said the planned reductions in government funding for Medicare Advantage and other provisions of the health law would affect its 2014 earnings.

Monday, December 30, 2013

Rieder: Gearing up for a journalism juggernaut

Everyone knows that Herman Melville wrote a masterpiece called Moby Dick.

Languishing in obscurity is another Melville novel that was savaged when it came out but has received kinder treatment from contemporary critics. It's called Pierre, or the Ambiguities.

Well, there's nothing ambiguous about the bold new journalism initiative of another Pierre, Pierre Omidyar. The eBay founder plans to spend a staggering sum of money, $250 million, on his evolving news start-up. He's already attracting top-tier journalists, including Glenn Greenwald of Edward Snowden saga fame.

Omidyar wants to launch a news organization that is not narrowly focused on, say, investigative reporting, though it will do plenty of that. Instead, he envisions a wide-ranging powerhouse that will cover an array of subjects and attract a broad swath of readers. The idea is to create a mass audience that will magnify the impact of the hard-hitting stories the site aims to produce.

It's early times for the enterprise, whose existence leaked prematurely. Many details remain to be worked out. But last week marked an important milestone when the nascent news outlet, temporarily known as NewCo, signed up Eric Bates, a former executive editor of Rolling Stone. Bates, says Omidyar, "will be instrumental in helping us define our editorial strategy for a general-interest audience as well as the editing infrastructure we will need to support our independent journalists."

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In other words, help figure out what NewCo is going to do and how it is going to do it.

Bates, who was laid off by Rolling Stone in January after 10 years at the magazine, is clearly psyched about his new mission. And who wouldn't be?

"It's exciting to build something from the ground up," he said in a telephone interview. Omidyar's formidable investment, he adds, "is unprecedented, extraordinary, parti! cularly at a time when journalism is struggling to find its financial footing."

As traditional journalism has been buffeted by the onset of the digital era, wealthy new players like Omidyar have entered the fray, an encouraging development. His fellow tech billionaire Jeff Bezos, the founder and CEO of Amazon.com, recently purchased The Washington Post. (Omidyar thought about it but opted to launch his own news colossus.) Investor to the stars Warren Buffett has been snapping up newspapers. The Sandler family bankrolled ProPublica, which rapidly has become an important investigative journalism player.

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Unlike ProPublica, Omidyar's baby won't be a nonprofit; it is conceived as a for-profit entity so it can become self-sustaining. It will be digital-only, with no plans for a print component.

So how did Bates become part of Project Omidyar? He received a call from Greenwald, the journalist who broke so many of the NSA surveillance stories based on classified documents provided by former NSA contractor Snowden and who was Omidyar's initial marquee hire. It didn't take long for Bates to sign on.

Eric Bates, a former executive editor of Rolling Stone.(Photo: handout)

In addition to the obvious appeal of building a potential editorial juggernaut, he was attracted by Omidyar's tech chops, the eBay entrepreneur's track record of building such a successful platform.

Bates is no stranger to high-profile endeavors. While at Rolling Stone, he edited the "The Runaway General," the career-ending profile of Gen Stanley McChrystal, and participated in four interviews with President Obama.

Bates very much likes the idea that NewCo will be a multifaceted operation aimed at a mass audien! ce — mu! ch as Rolling Stone bundles its high-end reportage with the latest on Lady Gaga, Pearl Jam and Led Zeppelin — rather than a targeted venture focused on a narrow slice.

"You've got to find ways to bring the work to those who wouldn't ordinarily read it," he says. "That's what we're doing. There's no point if you're not reaching people."

Bates says it's too soon to say when the new venture will debut and how big the staff will be.

Omidyar has said that the new entity will cover "general interest news." After all, most people don't necessarily want a steady diet of news about government and public policy.

"A lot of public-interest journalism is done by places that are underfunded," Bates says. "They have to make strategic choices (as to where to focus). We will be in a position to think more broadly."

But the heart of the mission will be public service journalism on subjects such as national security and money and politics. "Everybody who is coming together feels strongly about the need for better journalism so citizens in a democracy can make choices," Bates says

And he's certain that there is an appetite for sophisticated, significant fare.

"There's the notion that the digital world has dumbed everything down, that everything is shorter, faster, less thoughtful," Bates says, "But, in many ways, people are hungrier than ever for thoughtful long-form journalism and sources they can trust to filter out the noise."

Sunday, December 29, 2013

ull vs. Bear: Will stocks go higher or stall in…

In the annual face-off between bull and bear, Wall Street's most optimistic prognosticator sees the strong stock market momentum continuing in 2014, while the most skeptical forecaster is calling for a flat, or even a modestly down year.

So what does bull Thomas Lee, chief U.S. equity strategist at JPMorgan Chase, see in stocks that the far more cautious Barry Bannister, chief equity strategist at Stifel, does not?

In short, Lee sees a stock market behaving in classic "bull market" fashion, with the upward bias likely to continue until a recession derails the rally by choking off economic growth and crimping corporate profits.

The bull market, which celebrates its fifth birthday on March 9, 2014, is likely to remain strong in year six.

"Stock market bulls are self-reinforcing," says Lee. "Historically, bulls get stronger. As (the stock market) goes up there is wealth creation, which creates more incentive to invest."

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In contrast, Bannister sees a stock market that has already enjoyed its "melt-up," which has reduced its upside potential for the time being amid an aging bull market, rising optimism among investors and swollen price-to-earnings ratios.

Caution, he says, is warranted in 2014.

"It's a little late to be bullish, but I am not bearish," Bannister says. "I expect a flattening out of the market."

The contrast in projected performance next year for the benchmark Standard & Poor's 500-stock market is stark.

Tom Lee, Chief U.S. Equity Strategist, JPMorgan Chase.(Photo: Todd Plitt, USA TODAY)

Lee sees the Standard & Poor's 500 hitting 2075 by the end of 2014,! which equates roughly to a 13% gain from Friday's close, on top of gains of 29% in 2013. Bannister, who expects the tired market to flatten out next year, has a current year-end price target of 1750, which is 5% below current levels. His official year-end target will be released early in January.

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Lee's bullish thesis is multipronged, with equal weight given to improving business fundamentals and historical market performance. History, he says, shows that secular, or multiyear, bull markets that have lasted more than five years tend to perform well in year six and don't normally end until a recession occurs.

But with the global economy gaining strength and Fed policy expected to remain supportive, coupled with Lee's belief that companies will start deploying more of their idle cash and grow profit at a faster 9% clip next year, a recession is unlikely.

"Growth," says Lee, "could actually accelerate."

Stocks, Lee adds, will also get a lift from an ongoing shift of investor cash from bonds to stocks.

Barry Bannister, managing director at Stifel Nicolaus & Co.(Photo: Bill Denison)

Bannister, however, says given the big run-up this year, and the fact the bull is almost 58 months old and the market's price-to-earnings ratio based on the past 12 months of earnings has swelled from around 14 to almost 17 and back near historic norms, upside is limited.

The P-E on expected profits for the next four quarters is around 15, and over the past 23 years stocks have posted returns of roughly 3% in the coming 12 months, he says, adding that a less-friendly Fed may deflate P-Es.

"! Are we ve! ry bullish? Not anymore," says Bannister. "At these multiples investors are late to the party."

Saturday, December 28, 2013

Stocks Get Happy on Optimism for Debt Limit Deal

NEW YORK (TheStreet) -- U.S. stocks erased early declines to close in the green on Monday as a White House official said President Barack Obama and Vice President Joe Biden were meeting in the afternoon with House and Senate leaders from both major parties about the nation's borrowing limit and the continuing government shutdown.

"The president will also reiterate our principles to the leaders: we will not pay a ransom for Congress reopening the government and raising the debt limit," the White House official said in an email to reporters. "The president continues to urge Congress to pass a bill that raises the debt ceiling and lends the certainty our businesses and the economy needs."

The S&P 500 added 0.41% to 1,710.18 after falling as much as 1.2% while the Dow Jones Industrial Average gained 0.42% to 15,301.07. The Nasdaq jumped 0.62% to 3,815.27. 

Also boosting stocks was a report that Senate Majority Leader Harry Reid privately offered Senate Minority Leader Mitch McConnell a deal to extend the U.S. debt limit until next year and to reopen the government until mid-to-late December, according to Politico citing several sources familiar with the discussions.

"We believe this foolish game of chicken shows Washington lawmakers have a na�ve sense of the economy and global markets," Craig Johnson, a Minneapolis-based senior technical research analyst at Piper Jaffray, said in a note. "We suspect markets will experience heightened volatility this week as the saber-rattling in Washington intensifies ahead of the projected debt ceiling limit being reached on Thursday."

Netflix was the top performer on the S&P 500 as reports emerged that the movie- and television-streaming company was in talks to add its service to set top boxes of U.S. cable companies. Shares of the company popped more than 7.5%.

Expedia (EXPE) was the largest percentage decliner on the S&P 500 on Monday after the online travel services company was downgraded to "hold" from "buy" at Deutsche Bank with a $51 price target on concerns about recent management changes at the Hotels.com unit as well as execution issues. Shares dropped nearly 6.5% Delta (DAL) was off more than 1% and Alaska Air (ALK) was up more than 1.5% as tensions rose between the two airlines. The partners are increasingly becoming rivals battling for control of Seattle Tacoma International Airport, one of the two most valuable West Coast hubs, with the bloodiest battleground appearing likely to be the Seattle-San Francisco route where service is slated to expand next year to approximately 28 daily flights each way. Consol Energy (CNX) increased 0.63% to $38.41 as the Wall Street Journal reported that the largest U.S. coal producer by market value is looking for ways to sharply cut down it coal holdings to focus more on natural gas by splitting up its coal and gas assets and having them trade separately.
-- Written by Andrea Tse and Joe Deaux in New York >To contact the writer of this article, click here: Andrea Tse.>

Friday, December 27, 2013

Ellison brand a big winner, too, in America’s Cup

The America's Cup win is great for America and terrific for sponsor Oracle, but the biggest winner may be the billionaire owner whose personal brand just got the largest lift of all: Larry Ellison.

"Oracle is really code for Ellison," says Rob Prazmark, founder and CEO of 21 Marketing, which specializes in sports marketing. "Ellison uses sailing and his America's Cup victories to further Oracle's business relationships."

Only a handful of CEOs are as big as their brands. Phil Knight and Nike are synonymous. So are Mark Zuckerberg and Facebook. Larry Page and Google. And, of course, Steve Jobs may have been bigger than the Apple brand itself. So when a brand reaches new heights, as Oracle has with Wednesday's comeback-of-a-lifetime America's Cup win, so rises the reputation of Ellison, the billionaire behind the boat.

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LARRY ELLISON: World's wealthiest underdog?

What should Ellison — and the Oracle brand — do next? Sports marketing gurus offer these suggestions:

• Timing is everything. The big tech fest for business and Internet technology honchos, Oracle OpenWorld 2013, concluded Thursday in San Francisco. What a way to end the show, with the America's Cup champs appearing at the conference keynote address. Oracle enticed folks to attend with commemorative T-shirts that were promised to the first 1,000 attendees. It also gave them the chance to have their photos taken alongside the Cup. The big win was also highlighted on the conference's blog. "If they had lost, it could have been a very bad story; but now, it is an incredible story," says Prazmark.

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• Brag a little. Perhaps Oracle should consider some tablet advertisements, reminding Americans that the leader in corporate software is still the leader in yachting, says Chris Raih, founder of the sports marketing agency Zam! bezi. Raih suggests this headline: "Oracle: maintaining our lead in the software industry and the high seas."

• Bring the thrill to clients. Oracle should create some sort of America's Cup "daily experience" that brings the thrill of the victory to top clients and vendors, suggests David Schwab, senior vice president at Octagon, a sports and entertainment marketing agency. This is particularly important in markets with water access, including San Francisco, Los Angeles, New York, Chicago and Miami, he says.

• Personal brand. Not all the personal branding need be Ellison's. Oracle skipper, Jimmy Spithill, an Australia native who also led the team to victory in the last cup, is already a hot marketing item in his native country, and should now be increasingly marketable in the U.S. market, says Raih.

• Create an image. Unlike New Zealand, which cautiously sat on its seemingly insurmountable 8-1 lead in the race, the Oracle brand should now emphasize, "It's not complacent in the marketplace and pushes the outer limits of creativity and innovation," says Darcy Bouzeos, president of DLB, a sports and entertainment marketing firm

• Focus on the rich. Even after this win, the America's Cup remains a "very niche" sport that's laser-focused on the "über-wealthy" says Prazmark. Ellison and Oracle still need to remember that, whenever and wherever they flaunt this big victory.

Thursday, December 26, 2013

Hot Performing Companies To Own In Right Now

After underperforming for nearly a decade, stocks in one sector have come alive and outpaced the overall market for the past two years. And MoneyShow's Howard R. Gold thinks these stocks may not be finished quite yet.

The four and a half year-plus bull market is looking a bit tired, but one sector has really come into its own.

Health care stocks, which underperformed for almost a decade, have outpaced the overall market for more than two years. The Health Care Select Sector SPDR ETF (XLV) has gained 86% from August 10, 2011 through Tuesday, November 12, 2013. It beat the Standard & Poor's 500 index (SPX) by nearly 30 percentage points and trailed only soaring consumer cyclicals during that time.

But whereas cyclicals already have had a monster run, health care stocks may have much further to go.


Click to Enlarge

This diverse sector, which includes red-hot biotechnology, Big Pharma, medical device makers, hospitals, health insurers, and other services, is profiting from structural shifts far beyond the changes brought in by the Affordable Care Act.

Hot Performing Companies To Own In Right Now: Lucky Strike Resources Ltd.(LKY.V)

Lucky Strike Resources Ltd., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in Canada. It holds an option to acquire a 70% interests in the Grizzly property, which consists of 600 mineral claims and covers approximately 12,546 hectares; and the Aspen property that comprises 510 mineral claims and covers an approximately 10,664 hectares located in the Dawson mining district in the Yukon Territory. The company has an option agreement to acquire a 100% interest in Yreka North Property in British Columbia, Canada. Lucky Strike Resources Ltd. is based in Vancouver, Canada.

Hot Performing Companies To Own In Right Now: Tsakos Energy Navigation Ltd(TNP)

Tsakos Energy Navigation Limited, together with its subsidiaries, provides seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services for national and independent oil companies and refiners under long, medium, and short-term charters. As of August 16, 2011, its fleet consisted of 50 vessels comprising 59 tankers, including 2 dynamic positioning 2 (DP2) shuttle tankers under construction, and 1 liquefied natural gas carrier. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001. Tsakos Energy Navigation Limited was founded in 1993 and is based in Athens, Greece.

Advisors' Opinion:
  • [By Rick Munarriz]

    We can start with Tsakos Energy Navigation Limited (NYSE: TNP  ) . Shares of the energy transporter moved 27% higher last week after surprising the market with a quarterly profit. Business isn't great at Tsakos. Revenue dipped slightly during the period, and a profit of $0.02 a share may not turn heads. However, analysts were bracing for a loss of $0.08 a share on a sharper decline in revenue.

  • [By Travis Hoium]

    What: Shares of energy transporter Tsakos Energy Navigation Limited (NYSE: TNP  ) jumped 17% today after the company released earnings.

Top Penny Companies To Invest In Right Now: Potomac Electric Power Company(POM)

Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. It distributes electricity to approximately 1.8 million customers in the mid-Atlantic region and delivers natural gas to approximately 123,000 customers in Delaware. In addition, the company involves in the retail supply of electricity and natural gas; provision of energy efficiency services to federal, state, and local government customers; and designs, constructs, and operates combined heat and power and central energy plants, as well as owns and operates two oil-fired generation facilities. Further, it offers high voltage electric construction and maintenance services, low voltage electric construction and maintenance services, and streetlight construction and asset management services to utilities, municipalities, and other customers in the Washington, District of Columbia. Additionally, the company holds investments in eight cross-border energy leases. Pepco Holdings, Inc. was founded in 1896 and is based in Washington, District of Columbia.

Advisors' Opinion:
  • [By Sally Jones]


    Highlight: Pepco Holdings Inc. (POM)

    The POM share price is currently $18.17 or 20.0% off the 52-week high of $22.72. Its yield is 5.90%.

  • [By Sean Williams]

    Powering up
    It's pretty rare for stocks in the electric utility sector to see a prolonged dip given that electricity is a necessity product, but that's what we've seen from Mid-Atlantic electric utility provider Pepco Holdings (NYSE: POM  ) .

Hot Performing Companies To Own In Right Now: National Financial Partners Corporation (NFP)

National Financial Partners Corp., together with its subsidiaries, provides advisory and brokerage services to corporate and high net worth individual clients in the United States and Canada. It operates in three segments: Corporate Client Group, Individual Client Group, and Advisor Services Group. The Corporate Client Group segment operates as corporate benefits advisor in the middle market, offering independent solutions for health and welfare, retirement planning, executive benefits, and property and casualty insurance; and offers property and casualty insurance brokerage and consulting services. It serves corporate clients by providing advisory and brokerage services related to the planning and administration of benefit plans that take into account the overall business profile and needs of the corporate client. The Individual Client Group segment delivers independent life insurance, annuities, long term care, and wealth transfer solutions; and wholesale life brokerage, retail life, and investment advisory services. It serves wealth accumulation, preservation, and transfer needs, including estate planning, business succession, charitable giving, and financial advisory services. The Advisor Services Group segment provides broker-dealer and asset management products and services to independent financial advisors. In addition, the company provides IndeSuite, a wealth management platform for the independent registered investment advisor market. National Financial Partners Corp. was founded in 1998 and is headquartered in New York City, New York.

Hot Performing Companies To Own In Right Now: Ite Group(ITE.L)

ITE Group plc, together with its subsidiaries, organizes trade exhibitions, conferences, and events. It organizes exhibitions and conferences primarily for a range of industrial sectors comprising building and interiors; oil and gas; travel and tourism; food, drink, and hospitality; furniture and interior events; security; mining; fashion, clothing, and textiles; transport; automotive; technology and telecoms; healthcare and pharmaceuticals; sport and leisure; construction; windows technology; plastics; and packaging. The company also engages in publishing trade magazines. It operates primarily in the United Kingdom, western Europe, central Asia, the Caucasus, Russia, and southern and eastern Europe. The company was founded in 1991 and is based in London, the United Kingdom.

Hot Performing Companies To Own In Right Now: Ethos Capital Corp(ECC.V)

Ethos Gold Corp. engages in the identification, exploration, and development of mineral properties in Mexico and Canada. It explores for silver, lead, zinc, copper, and gold, as well as vanadium and gallium properties. The company has a property portfolio comprising 4,963 claims covering 103,857 hectares located in the White gold district, Yukon. Its principle properties include Hayes, Wolf, Betty, Bridget, Hen, and Rude Creek in the White gold district; and Santa Teresa and Corrales properties in Mexico. The company was formerly known as Capital Corp. and changed its name to Ethos Gold Corp. in April 2012. Ethos Gold Corp. was incorporated in 2007 and is based in Vancouver, Canada.

Hot Performing Companies To Own In Right Now: Constellation Brands Inc (STZ)

Constellation Brands, Inc. produces and markets alcoholic beverages primarily in the United States, Canada, and New Zealand. It offers wine, spirits, and imported beer. The company?s Constellation Wines North America segment produces, markets, and exports wine, as well as sells various wine brands across various categories, including table wine, sparkling wine, and dessert wine. It offers wine under various brands, which include Robert Mondavi Brands, Clos du Bois, Blackstone, Estancia, Arbor Mist, Toasted Head, Simi, Black Box, Ravenswood, Rex Goliath, Kim Crawford, Franciscan Estate, Wild Horse, Ruffino, Nobilo, Mount Veeder, Inniskillin, and Jackson-Triggs; and spirits under various brands, including SVEDKA Vodka, Black Velvet Canadian Whisky, and Paul Masson Grande Amber Brandy. This segment also produces and markets wine kits and beverage alcohol refreshment drinks in Canada. The company?s Crown Imports segment imports, markets, and sells beer under the Modelo Brands, which include Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, and Victoria, as well as the St. Pauli Girl and Tsingtao brands in the United States. The company sells its products through wholesale distributors, as well as state and provincial alcoholic beverage control agencies in North America; and directly to retailers or through wholesalers and importers in New Zealand. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

Advisors' Opinion:
  • [By Louis Navellier]

    Constellation Brands (STZ) is a great example of a stock with a low P/E ratio that also has strong fundamentals. The company sells wines under some of the best known brands including Robert Mondavi, Clos du Bois, Blackstone and Simi. The Crown Imports division sells beer including popular brands such as Corona, Modelo Especial, Pacifico, and Negra Modelo. Analysts have been steadily raising estimates for this year and next as business has been better than Wall Street expected. STZ stock has a P/E ratio of just 8.7 and was recently upgraded to ����in Portfolio Grader. STZ is a ��trong buy��at the current price.

  • [By Dan Caplinger]

    Next Tuesday, Constellation Brands (NYSE: STZ  ) will release its latest quarterly results. With the stock having performed well recently, the big question investors need to address is whether the company can keep growing fast enough to maintain those share-price gains.

  • [By Paul Ausick]

    Constellation Brands Inc. (NYSE: STZ) reported second-quarter fiscal�2014 adjusted diluted earnings per share (EPS) of $0.96 on revenue of $1.46 billion. In the same period a year ago, the premium wine and beverage company reported adjusted diluted EPS of $0.50 on revenue of $698.5 million. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.88 and $1.53 billion in revenue.

Hot Performing Companies To Own In Right Now: Bridgeline Digital Inc.(BLIN)

Bridgeline Digital, Inc. engages in the development of Web experience management (WEM) product and interactive technology solutions that help organizations to optimize business processes. Its iAPPS product suite includes iAPPS Content Manager that allows non-technical users to create, edit, and publish content through a browser-based interface; iAPPS Commerce, an online B2B and B2C eCommerce solution, which allows users to maximize and manage various aspects of commerce initiatives; and iAPPS Marketier, a marketing lifecycle management solution that comprises customer transaction analysis, email management, surveys and polls, event registration, and issue tracking to measure campaign return on investment and client satisfaction. The company also provides iAPPS Analyzer to manage, measure, and optimize Web properties by recording detailed events and mine data within a Web application for statistical analysis; and iAPPS Rapid Site for building custom Websites. It delivers it s iAPPS product suite through cloud-based software as a service business model or via a traditional perpetual licensing business model. The company?s end-to-end interactive technology solutions consist of digital strategy, user-centered design, Web application development, SharePoint development, rich media development, search engine optimization, and Web application hosting management. Bridgeline Digital serves various markets, such as financial services, consumer products and goods, health services and life sciences, high technology (software and hardware), retail brand names, transportation and storage, associations and foundations, and the U.S. Government through its direct sales force. The company was formerly known as Bridgeline Software, Inc. and changed its name to Bridgeline Digital, Inc. in March 2010. Bridgeline Digital, Inc. was founded in 2000 and is based in Burlington, Massachusetts.

Wednesday, December 25, 2013

AdvisorOne Is Now ThinkAdvisor

Nearly three years ago we successfully launched AdvisorOne. Today we’re relaunching and renaming the premier site for advisor news and analysis to ThinkAdvisor. The change reflects our sharpened focus on delivering to advisors the thought leadership they want and need at every stage of their career development.

ThinkAdvisor is a major expansion of AdvisorOne, the leading news and information website in the investment advisory industry. ThinkAdvisor goes beyond news and information to provide advisors with access to unique resources that support their professional development.

ThinkAdvisor provides users with AdvisorOne’s trusted news and industry information, vendor resources and best practices as well as continuing education and professional reference publications. ThinkAdvisor features a new, simplified layout, optimized for readability and multi-device support, including smartphones and tablets.

At the same time, ThinkAdvisor engages users with new interactive resources, including live events, virtual tradeshows, and webcasts, as well as features like The Academy, an interactive knowledge center used by advisors to drive their businesses and grow in their careers. As part of the change, we'll be encouraging advisor users to become members of the site; members will be the first to preview new community features, and have the ability to manage how they receive information based on their personal preferences.

Why make the change? AdvisorOne’s original charter was to present, aggregate and curate news and analysis from across the Web. While we succeeded, we realized from monitoring user behavior and through a series of reader forums that in addition to news, analysis and data, advisors wanted and needed assistance at every stage of their career development. They wanted and needed to easily delve more deeply into  specific topics of interest. They wanted and needed to make sure to read everything that Moshe Milevsky or Mark Tibergien or Angie Herbers or Michael Kitces had to say in their columns or their blogs. They wanted and needed a community of peers and industry experts where they could express themselves and continually learn from each other.

That’s what ThinkAdvisor is and will be. We’ve changed the name but we will retain our commitment to delivering the news and information advisors want and need, delivered by the most knowledgeable, experienced editorial staff in the business.

Tuesday, December 24, 2013

Will Disney Continue To Explode?

With shares of Disney (NYSE:DIS) trading around $67, is DIS an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Disney is a diversified worldwide entertainment company. The company operates in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. Disney offers entertainment that sends smiles to consumers across a range of countries around the world. It’s movies and shows, theme parks, and products have remained a main attraction for many years and will continue well into the future. As Disney continues to provide excellent entertainment, look for the company to remain a leader in the industry.

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T = Technicals on the Stock Chart are Strong

Disney stock has seen an explosive move higher over the last couple of years. The stock is currently trading at all-time high prices and sees no signs of slowing. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Disney is trading above its rising key averages which signal neutral to bullish price action in the near-term.

DIS

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Disney options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Disney Options

21.42%

16%

17%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

June Options

Flat

Average

July Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Disney’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Disney look like and more importantly, how did the markets like these numbers?

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

36.21%

-3.75%

17.34%

31.17%

Revenue Growth (Y-O-Y)

9.89%

5.21%

3.42%

3.87%

Earnings Reaction

-0.12%

0.42%

-5.95%

1.36%

Disney has seen increasing earnings and revenue figures over the last four quarters. From these figures, the markets have been pleased with Disney’s recent earnings announcements.

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P = Excellent Relative Performance Versus Peers and Sector

How has Disney stock done relative to its peers, News Corporation (NASDAQ:NWS), Time Warner (NYSE:TWX), Dreamworks (NASDAQ:DWA), and sector?

Disney

News Corporation

Time Warner

Dreamworks

Sector

Year-to-Date Return

34.97%

26.33%

26.91%

30.66%

24.87%

Disney has been a relative performance leader, year-to-date.

Conclusion

Disney provides unforgettable entertainment experiences to consumers of all ages in a multitude of countries across the globe. The stock has been a strong performer, now trading at all-time high prices, and is poised to continue higher. Earnings and revenue figures have been increasing over the last several quarters which has kept investors pleased. Relative to its peers and sector, Disney has been a year-to-date performance leader. Look for Disney to continue to OUTPERFORM.

Monday, December 23, 2013

Microsoft's Timing Couldn't Be Worse

Last week, Microsoft (NASDAQ: MSFT  ) reported earnings that sent shares reeling, thanks in large part to a disheartening $900 million inventory charge related to the software giant's Surface RT tablets.

That's a troubling admission that the company was aiming too high with the device that represents Microsoft's biggest entry into first-party hardware. That includes both in terms of price and unit forecasts. At the initial price point of $500, it was going up against Apple's (NASDAQ: AAPL  ) iPad, and Microsoft had reportedly ordered more than 3 million of them. Over the first two quarters, it shipped 1.8 million, including the newer Surface Pro (which was not related to the inventory charge).

A couple of months ago, Microsoft launched an all-out anti-iPad ad campaign targeting Apple's flagship tablet. The company used the same marketing strategy that Apple had used against it years ago, playfully goading its rival and calling out its weaknesses. Microsoft has since released a series of other spots that highlight Surface's advantages.

No less than a day later, Microsoft put out another ad poking at the iPad; considering the inventory writedown, the timing couldn't be worse.

The first shot was actually quite clever, but the subsequent commercials have been less inspiring. In the latest, Microsoft calls out the lack of USB port, integrated kickstand, or keyboard accessory, and then follows up by comparing the $599 price tag to the Surface's recently reduced $349 price point, both for a 32 GB model.

Microsoft is getting more aggressive with taking shots at the iPad, suggesting it won't end well for Apple's tablet. This time, Microsoft is comparing the iPad directly to its Surface, while in prior ads it would compare the iPad to a tablet made by a third-party OEM such as ASUS or Dell.

Of course, Apple has never had a problem selling iPads and has never taken any inventory writedowns approaching $1 billion, but that's not something that Microsoft should be proud of.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

Sunday, December 22, 2013

Are More LNG Exports Around the Corner?

In the recent 2013 EIA Energy Conference, the newly appointed Secretary of Energy, Dr. Ernest Moniz, promised that the Department of Energy's approval process for LNG exporting facilities will be addressed expeditiously. This is good news since the recent Freeport LNG approval came two years after Cheniere Energy's (NYSEMKT: LNG  ) Sabine Pass project secured a permit.  

With plenty of natural gas arbitrage opportunities around the world, moving LNG to high-price markets is essential. With around 20 applications still on file, gaining non-free trade export approval will be intensely selective. 

With domestic natural gas production growing faster than consumption, the United States is expected to become a net exporter of natural gas by the end of the decade. Cheniere Energy will become the first LNG exporter approved to ship to high-margin countries that are not members of a free trade agreement. With natural gas prices expected to rest in the $4-$5 range per MMbtu, Cheniere is primed for solid gains once the initial LNG trains start chugging in the first half of 2015. Don't wait until then – this 2013 darling continues to outperform the broad markets. Be sure to read all the details in this premium research report. 

 

Saturday, December 21, 2013

General Motors to Focus on Bolstering its Struggling Opel Brand in Europe

Top 10 China Companies For 2014

More changes on tap for General Motors (NYSE: GM), as the auto-maker wraps up an historic month.

The company appointed Juergen Keller as executive director for sales and marketing at GM's European subsidiary, Adam Opel AG. Keller, most recently Opel's director of international operations, will succeed Matthias Seidl.

The news is the latest headline-maker for GM – which recently emerged from U.S. government bailout and appointed its first female CEO. The company also announced a major shake-up in its European operations – selling off its stake in France's PSA Peugeot Citroen while ending the sale of the Chevrolet brand in Europe, to bolster GM's Opel and Vauxhall brands there.

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All these changes, however, are reportedly making executives at Opel very uneasy. According to a Reuters report, Opel was relying on GM's partnership with Peugeot "to develop a common platform to help revamp its range of small cars...and drive its market share back above six percent in Europe, compared with a high of more than 10 percent a decade ago."

Motor Authority reports that Opel lost $1.8 billion last year – and has lost more than $18 billion over the past 15 years. The website notes that, earlier this year, GM committed $5.2 billion to help Opel develop new powertrains and models – and is working on Opel's expansion into the growing Russian car market. German supermodel Claudia Schiffer has also been signed up for a new Opel ad campaign.

But analysts say it will take some time to revamp both Opel's image and its aging line of products.

"If you have a weak brand, your cars need to be twice as compelling to persuade clients to switch and to grow sales," Metzler Bank auto analyst Juergen Pieper told Reuters. "Merely developing cars which are 'as good' is not enough. Clients will stick with the brand they already like."

Posted-In: Claudia Schiffer Juergen Peiper Opel PSA Peugeot Citroën VauxhallNews Eurozone Travel Economics Markets Analyst Ratings Media General Interview Press Releases Best of Benzinga

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Wednesday, December 18, 2013

How to Lower Your Property Tax Bill

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By Hal M. Bundrick

NEW YORK (MainStreet) The U.S. real estate market may be enjoying a bit of a recovery, but the fact remains that a lot of homeowners still have quite a bit of ground to cover before regaining their home's value lost during the recession.

And that may mean you're paying too much in property taxes. Your annual property tax bill may not truly reflect current and perhaps lower local home values.

Ilyce Glink, a personal finance expert and managing editor of the Equifax finance blog, says homeowners should be proactive and make a compelling case to their tax assessor's office if they believe, and have proof, that their property taxes should be lower. "If your home has lost value during the last six or seven years, you should be able to get your property taxes reduced," says Glink. "You can do this by creating a market analysis of other homes in the neighborhood that are in the same tax category as yours." Most homeowners receive their local property tax bills just after the New Year and have a short window of only 30 to 45 days in which to file an appeal after receiving the notice. Glink says that with limited time, you will have to get right to work, researching the recent sale prices for similar homes in your area and comparing each home's tax bill with yours. Taking an exterior snapshot of each "comp" can help you make your case to the tax assessor's office. "Each real estate parcel is given a PIN, and this PIN is used when levying property taxes," adds Glink. "You'll need your PIN to assess the value of your home. You can look it up online or through your local tax assessor's office. You should also obtain the PINs of homes in the area that are comparable to yours." She says you will also want to check with the local assessor's office to determine your county's specific property tax appeal rules before pitching the reassessment. "It only takes one foreclosure in a neighborhood to drop property prices by 20%, 30%, or even 50%," says Glink. "If you have distressed homes in your area, it's certainly possible that your own home's value has also gone down and that your tax bill should be lower." --Written by Hal M. Bundrick for MainStreet

Tuesday, December 17, 2013

Here's a TIP...

Best Insurance Companies To Invest In 2014

If this market's recent plummet is any indication, there may be another worry, other than inflation, that financial markets will have to face in the coming year, writes MoneyShow's Jim Jubak, also of Jubak's Picks, who thinks that might mean different trends and a few surprises.

After rallying in September and October, in anticipation of rising inflation in 2014, TIPS (Treasury Inflation Protected Securities) have dropped like a stone in the last month. They're now down 8.8% in 2013, the biggest drop, according to Bank of America Merrill Lynch, since they were introduced in 1997.

According to the TIPS market, forget about inflation in 2014. It's a slowdown in price increases—which isn't the same thing as deflation by a long shot—that faces the financial markets and the economy next year.

The gap in yields between fixed-rate Treasuries—where the payout doesn't change with inflation—and TIPS—where the bond pays out more as inflation rises—shows the market predicting that inflation, by official measures, will average 1.75% over the next five years. That's a huge decline from the year's high in March, when the TIPS market was pricing in a 2.42% inflation rate. (Economists surveyed in Bloomberg are expecting consumer price inflation of 1.5% this year. That would be the lowest rate since 2009 and the second-lowest annual rate since 1963.)

This view on inflation is a huge turnaround from the earlier consensus that the massive expansion of the Federal Reserve balance sheet would result in an increase of inflation, as the increase in the money supply fed into the economy. The Fed's balance sheet has climbed to almost $4 trillion from $900 billion in 2008, as the US central bank bought financial assets to lower interest rates and stimulate the economy. (Similar increases in balance sheets and money supply, by the European Central Bank and the Bank of Japan, would result in global inflation, the consensus held.)

By now, it looks like a decline in wages and employment, and the associated weakness in demand, will trump central bank printing presses. At least, for a while.

Now, the TIPS market doesn't have to be right. The current read on sub-2% inflation until the cows come home could be wrong—and this drop in TIPS could be a great buying opportunity, ahead of a pick up in inflation in 2014 or 2015.

But, if the TIPS market is right, the financial markets are looking at low interest rates, not until mid-2015, as the futures market is currently projecting, for even longer. That would come with very slow growth in top line sales for most companies and real pressure on earnings. It would mean that companies would continue to borrow at low rates, in order to fund buybacks that compensate for slower than expected organic earnings growth. It would mean cheap capital for companies that can identify actual investment opportunities with positive demand profiles—even as the number of those investment opportunities is likely to be relatively small. It would mean that, while short-term bonds, where yields are already near 0%, wouldn't deliver much in capital gains, longer maturity bonds might well outperform current expectations if low inflation leads to declining five- to ten-year yields. (That would mean that the US government debt would be less of a burden for the next few years than many of us have feared.)

If the TIPS market is right, in other words, some major current trends will run longer than is currently expected, and some current expectations are due for a major upset.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did not own shares of any stock mentioned in this post as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here.

Monday, December 16, 2013

8 Dividend Stocks Building Future Yield

As a young investor I followed an aggressive growth strategy. Having narrowly missed the tech bubble bursting, I purchased my first dividend stock on December 11, 2003. I had heard dividend investments were supposed to be safer, but knew very little else about the strategy. I was fortunate enough to accidentally buy enough good dividend stocks learn the "secret" of dividend investing. It is not necessarily starting with a high-yield investment, but ending up with a high-yield investment. This usually occurs by buying stocks with a moderate yield and a long history of growing dividends and letting time do its job.

This week several companies are building future yield by increasing the cash dividends paid to their shareholders:

Avago Technologies Limited (AVGO) engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. December 11th the company increased its quarterly dividend 8.7% to $0.25 per share. The dividend is payable December 31, 2013, to stockholders of record on December 20, 2013. The yield based on the new payout is 2.2%.

One Liberty Properties, Inc. (OLP), a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties. December 10th the company increased its quarterly dividend 5.7% to $0.37 per share. the dividend is payable January 3, 2014, to stockholders of record on December 27, 2013. The yield based on the new payout is 6.9%.

ABM Industries Incorporated (ABM) offers floor cleaning and finishing, window washing, furniture polishing, carpet cleaning and dusting, and other building cleaning services. December 9th the company increased its quarterly dividend 3.3% to $0.155 per share. The dividend is payable February 3, 2014, to stockholders of record on January 2, 2014. The yield based on the new payout is 2.3%.

Comtech Telecommunications Corp. (CMTL) designs, develops, produces, and markets products, systems, and services for co! mmunications solutions. December 9th the company increased its quarterly dividend 9.1% to $0.30 per share. The dividend is payable February 19, 2014, to stockholders of record on January 17, 2014. The yield based on the new payout is 3.6%.

Ventas, Inc. (VTR) is a publicly owned real estate investment trust that engages in investment, management, financing, and leasing of properties in the healthcare industry. December 9th the company increased its quarterly dividend 8.25 to $0.725 per share. The dividend is payable December 31, 2013, to stockholders of record on December 16, 2013. The yield based on the new payout is 5.0%.

Potlatch Corporation (PCH) operates as a real estate investment trust (REIT) that owns and manages timberlands located in Arkansas, Idaho, Minnesota and Wisconsin. December 6th the company increased its quarterly dividend 13% to $0.35 per share. The dividend is payable December 31, 2013 to stockholders of record on December 17, 2013. The yield based on the new payout is 3.5%.

The Hanover Insurance Group, Inc. (THG) underwrites commercial and personal property, and casualty insurance coverage in the United States. December 6th the company increased its quarterly dividend 12% to $0.37 per share. The dividend is payable December 27, 2013, to shareholders of record at the close of business on December 16, 2013. The yield based on the new payout is 2.4%.

CoreSite Realty Corporation (COR) engages in the ownership, acquisition, construction, and management of data centers. December 5th the company increased its quarterly dividend 30% to $0.35 per share. The dividend is payable January 15, 2014, to shareholders of record on December 31, 2013. The yield based on the new payout is 4.7%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list ! of stocks! with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.

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Also check out: (Free Trial) High Yield Dividend Stocks in Gurus' Portfolio Top dividend stocks of Warren Buffett Top dividend stocks of George Soros

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Sunday, December 15, 2013

On the Job: Trust is key in the best workplaces

Earlier this year, the Gallup Organization asked Americans about the trust they had in various institutions, including Congress.

Congress received its lowest ratingever since Gallup began the poll in 1973. Only 10% of respondents said they have a "great deal" or "quite a lot" of confidence in Congress.

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Those results may not really surprise many Americans, but they might be taken aback to learn in their own work life, their colleagues, bosses or employees may not trust them, either.

Another Gallup survey finds that only 30% of the 100 million full-time workers are actively engaged in their work. That lack of engagement stems from a lack of trust in an organization or a boss, says Nan S. Russell, author of Trust Inc.

Just as a lack of trust among lawmakers slows down business, so does a lack of trust and engagement in the workplace. Gallup estimates that the 70% of workers who are not engaged cost $450 billion to $550 billion a year in lost productivity.

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In addition, disengaged and distrustful workers are less collaborative and innovative, Russell says.

"Part of the problem is that we always believe the lack of trust is someone else's problem," she says. "But the answer to developing better trust comes person to person."

That means that a boss who wants to develop more trust within his team doesn't wait for human resources or a corporate training program but instead moves ahead on his own to improve team members' confidence in one another.

"I think the biggest mistake people make when they think about trust is that they get it backwards," she says. "We look for people we can trust, instead of thinking about whether we are worthy of their trust. It's a mindset."

In her book, Russell addresses several issues, such as the k! inds of behaviors that diminish trust. If you want to have more people trust you, she suggests you stop behaviors such as these:

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1. Piling on the hype. If you over promise and under deliver, it shows you don't take your words seriously — so no one trusts them.

2. Broadcasting distrust. Dictating to others and micromanaging can convey loudly and clearly that you don't trust others to do what needs to be done.

3. Avoiding responsibility. Maybe you wimp out, make excuses or blame others and refuse to apologize.

But such behavior doesn't portray you as a mature adult who can own his or her actions.

4. Spending too much time covering your behind. Hitting "reply all" and "cc-ing" your boss, your boss's boss and everyone else is not only annoying but shows that you don't trust anyone.

Such feelings also can infect the rest of your team.

5. Being a glory hog. Even if you worked really hard and put together a terrific project, chances are good that you were helped along the way by those offering pointers, ideas, resources and encouragement.

If you don't recognize others for the aid they offer, it reduces trust.

6. Spinning the truth. People have such a dismal opinion of politics right now, and much of it has to do with the spin that lawmakers seem to put on every issue.

Doing the same by deliberately misleading colleagues or being evasive can hurt your personal integrity and the trust others have in you.

7. Wimping out. When delivering a tough message, you hide behind texts or e-mails.

By not stepping up and personally communicating difficult information, you show you don't have what it takes to be trusted.

8. Abandoning self-control. We've all wanted to fire off nasty e-mails or make a snide remark, but personal integrity and professionalism generally hold us back.

If you let snarky comments fly, those personal attacks kill trust.

To engender trust, take a! ctions th! at benefit someone else, genuinely care about others and be passionate about what you do, Russell says.

"It's all about who you are and how you show up," she says. "You give trust to get trust."

Anita Bruzzese is author of 45 Things You Do That Drive Your Boss Crazy ... and How to Avoid Them, www.45things.com. Twitter: @AnitaBruzzese.

Saturday, December 14, 2013

10 Best Undervalued Stocks To Invest In Right Now

Come in from the cold, pull up a chair and go to investing school.

It is one hour and 53 minutes of Mohnish Pabrai speaking with the students at Boston College.

You don't have to agree with all of the stock picks Pabrai has made over his very successful career managing his hedge fund, but it is hard not to admit that his process is the right way to do things.

It is concentrated value investing with a focus on Buffett rules No. 1 and 2: Don't lose money.


Also check out: Mohnish Pabrai Undervalued Stocks Mohnish Pabrai Top Growth Companies Mohnish Pabrai High Yield stocks, and Stocks that Mohnish Pabrai keeps buying
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Have Received Their FREE 12-Page Warren Buffett Portfolio Report Get Yours FREE Here MORE GURUFOCUS LINKS Latest Guru Picks Value Strategies Warren Buffett Portfolio Ben Graham Net-Net Real Time Picks Buffett-Munger Screener Aggregated Portfolio Undervalued Predictable ETFs, Options Low P/S Companies Insider Trends 10-Year Financials 52-Week Lows Interactive Charts Model Portfolios DCF Calculator RSS Feed Monthly Newsletters The All-In-One Screener Portfolio Tracking Tool SPY STOCK PRICE CHART 180.94 (1y: +27%) $(function() { var seriesOptions = [], yAxisOptions = [], name = 'SPY', display = ''; Highcharts.setOptions({ global: { useUTC: true } }); var d = new Date(); $current_day = d.getDay(); if ($current_day == 5 || $current_day == 0 || $current_day == 6){ day = 4; } else{ day = 7; } seriesOptions[0] = { id : name, animation:false, color: '#4572A7', lineWidth: 1, name : name.toUpperCase() + ' stock price', threshold : null, data : [[1355119200000,142.47],[1355205600000,143.44],[1355292000000,143.51],[1355378400000,142.63],[1355464800000,142.11],[1355724000000,143.77],[1355810400000,145.37],[1355896800000,144.29],[1355983200000,145.12],[1356069600000,142.79],[1356328800000,142.35],[1356501600000,141.75],[1356588000000,141.56],[1356674400000,140.03],[1356933600000,142.41],[1357106400000,146.06],[1357192800000,145.73],[1357279200000,146.37],[1357538400000,145.97],[1357624800000,145.55],[1357711200000,145.92],[1357797600000,147.08],[1357884000000,147.07],[1358143200000,146.97],[1358229600000,147.07],[1358316000000,147.05],[1358402400000,148],[1358488800000,148.33],[1358834400000,149.13],[1358920800000,149.37],[1359007200000,149.41],[1359093600000,150.25],[1359352800000,150.07],[1359439200000,150.66],[1359525600000,150.07],[1359612000000,149.7],[1359698400000,151.24],[1359957600000,149.53],[1360044000000,151.05],[1360130400000,151.16],[1360216800000,150.96],[1360303200000,151.8],[1360562400000,151.77],[1360648800000,152.02],[1360735200000,152.15],[1360821600000,152.29],[1360908000000,152.11],[1361253600000,153.25],[1361340000000,151.34],[1361426400000,150.42],[1361512800000,151.89],[1361772000000,149],[1361858400000,150.02],[1361944800000,151.91],[1362031200000,151.61],[1362117600000,152.11],[1362376800000,152.92],[1362463200000,154.29],[1362549600000,154.5],[1362636000000,154.78],[1362722400000,155.44],[1362978000000,156.03],[1363064400000,155.68],[1363150800000,155.91],[1363237200000,156.73],[1363323600000,155.83],[1363582800000,154.97],[1363669200000,154.61],[1363755600000,155.69],[1363842000000,154.36],[1363928400000,155.6],[1364187600000,154.95],[1364274000000,156.19],[1364360400000,156.19],[1364446800000,156.67],[1364533200000,156.67],[1364792400000,156.05],[1364878800000,156.82],[1364965200000,155.23],[1365051600000,155.86],[1365138000000,155.16],[1365397200000,156.21],[1365483600000,156.75],[1365570000000,158.67],[1365742800000,158.8],[1366002000000,155.12],[1366088400000,157.41],[1366174800000,155.11],[1366261200000,154.14! ],[1366347600000,155.48],[1366606800000,156.17],[1366693200000,157.78],[1366779600000,157.88],[1366866000000,158.52],[1366952400000,158.24],[1367211600000,159.3],[1367298000000,159.68],[1367384400000,158.28],[1367470800000,159.75],[1367557200000,161.37],[1367816400000,161.78],[1367902800000,162.6],[1367989200000,163.34],[1368075600000,162.88],[1368162000000,163.41],[1368421200000,163.54],[1368507600000,165.23],[1368594000000,166.12],[1368680400000,165.34],[1368766800000,166.94],[1369026000000,166.93],[1369112400000,167.17],[1369198800000,165.93],[1369285200000,165.45],[1369371600000,165.31],[1369630800000,165.31],[1369717200000,166.3],[1369803600000,165.22],[1369890000000,165.83],[1369976400000,163.45],[1370235600000,164.35],[1370322000000,163.56],[1370408400000,161.27],[1370494800000,162.73],[1370581200000,164.8],[1370840400000,164.8],[1370926800000,163.1],[1371013200000,161.75],[1371099600000,164.21],[1371186000000,163.18],[1371358800000,163.18],[1371445200000,164.44],[1371531600000,165.74],[1371618000000,163.45],[1371704400000,159.4],[1371790800000,159.07],[1372050000000,157.06],[1372136400000,158.58],[1372222800000,160.14],[1372309200000,161.08],[1372395600000,160.42],[1372654800000,161.36],[1372741200000,161.21],[1372827600000,161.28],[1372914000000,161.28],[1373000400000,163.02],[1373259600000,163.95],[1373346000000,165.13],[1373432400000,165.19],[1373518800000,167.44],[1373605200000,167.51],[1373864400000,168.16],[1373950800000,167.53],[1374037200000,167.95],[1374123600000,168.87],[1374210000000,169.17],[1374469200000,169.5],[1374555600000,169.14],[1374642000000,168.52],[1374728400000,168.93],[1374814800000,169.11],[1375074000000,168.59],[1375160400000,168.59],[1375246800000,168.71],[1375333200000,170.66],[1375419600000,170.95],[1375678800000,170.7],[1375765200000,169.73],[1375851600000,169.18],[1375938000000,169.8],[1376024400000,169.31],[1376283600000,169.11],[1376370000000,169.61],[1376456400000,168.74],[1376542800000,166.

10 Best Undervalued Stocks To Invest In Right Now: Dollar Tree I! nc.(DLTR)!

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: Target Corp. (NYSE: TGT) is down 3.5% at $64.19. Sears Holdings Corp. (NASDAQ: SHLD) is down 2.9% at $59.93 on a wider loss and tepid outlook. Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is up 14.1% at $70.57 indicating that investors liked the results posted after markets closed on Wednesday. Dollar Tree Inc. (NASDAQ: DLTR) is down 4.5% at $56.28. Abercrombie & Fitch Inc. (NYSE: ANF) is down 0.1% at $34.97.

10 Best Undervalued Stocks To Invest In Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Monica Gerson]

    Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.

    Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.

  • [By John Udovich]

    Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

  • [By Brian Pacampara]

    Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP  ) has earned a coveted five-star ranking.

Top 5 Warren Buffett Companies To Buy For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By David Smith]

    Admittedly, Chevron (NYSE: CVX  ) is partnering with Saudi Aramco in production efforts in the Partitioned Zone between Saudi Arabia and Kuwait. And oil-field services and technology kingpin Schlumberger (NYSE: SLB  ) has planted major facilities in the country. But it seems that a more widespread use of western companies' capabilities could do wonders for Saudi reserves and production longevity.

  • [By Lee Jackson]

    Schlumberger Ltd. (NYSE: SLB) revenue grew 8% year-over-year to $11.18 billion in the second quarter of 2013, fueled by high growth in its international segment. While the company does generate 11% of revenue in the Middle East and Asia, only a prolonged Syrian conflict is expected to dent their strong results. UBS has a $98 price target and the consensus figure is at $96. Stockholders are paid a 1.5% dividend.

10 Best Undervalued Stocks To Invest In Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By WALLSTCHEATSHEET.COM]

    Caterpillar is a provider of construction and related industrial products and services during a time where countries around the world are seeing expansion. The stock has not done so well in the last year as it trades at the low-end of an established price range. Over the last four quarters, earnings and revenue figures have been mixed which has surprisingly sat well with investors in the company. Relative to its peers and sector, Caterpillar has been a poor year-to-date performer. WAIT AND SEE what Caterpillar does in coming quarters.

  • [By Dan Caplinger]

    Contributing the most to the Dow's decline is Caterpillar (NYSE: CAT  ) , which is down 2.2%. The construction and mining equipment maker reported an even larger pullback in earnings and revenue than investors had expected, with earnings per share falling 43% on a nearly 16% decline in sales. Given the poor levels of global construction activity and the big declines in commodity prices during the second quarter, the news wasn't a huge surprise, but Caterpillar also cut its full-year 2013 earnings guidance by $0.50 per share to $6.50. Although the company will implement further cost-cutting measures throughout the rest of the year, Asia continues to weigh heavily on Caterpillar's sales, which dropped 21% in the region. Any recovery for Caterpillar will likely take longer than expected unless economies around the world rebound quickly.

Thursday, December 12, 2013

Christmas Gift Advice From Around the Web

I am done with my Christmas shopping -- DONE. I didn't want to be rushing around at the last minute trying to buy gifts and putting myself at risk of overspending just to cross items off my list. It appears that I am in the minority, though. Nearly 90% of shoppers recently surveyed by RetailMeNot.com said they still have presents to buy. So if you're among those still needing to make some holiday purchases, I've rounded up loads of great gift ideas from some of our favorite personal finance bloggers.

SEE ALSO: A Gift-Giving Guide for the Truly Broke

Ultimate Gift Guide: Thoughtful Ideas for Every List and Every Budget [Wise Bread]
"Instead of wandering the busy mall hoping for inspiration, we've got hundreds of gift ideas for everyone on your list, no matter what your budget."

40 Christmas Gift Ideas Under $25 [PT Money]
"Hopefully you're able to find a few Christmas gift ideas from this list that will bring joy to those around you."

27 Creative Christmas Gifts You Can't Buy at the Mall [Parenting Squad]
"Creative gift alternatives -- ones that are more meaningful and often less expensive -- aren't as difficult to find as you may think."

60 Awesome DIY Stocking Stuffers [Savvy Sugar]
"If you're trying to figure out what to fill someone's stocking with, why not save your money and make these stocking stuffers instead?"

Early Childhood Toys That Are Worth the Money [Bargain Babe]
"Branded toys are not usually worth the money. They might bring a smile on Christmas day, but will be quickly tossed aside for the next new-and-improved Disney sidekick."



Wednesday, December 11, 2013

Abercrombie & Fitch Re-Ups CEO, Shares Fall

Your business is stagnating. Your shares are down nearly 30% in 2013. Signs of improvement are few and far between. So what do you do? Extend your CEO’s contract, of course.

Bloomberg

At least that’s what the board of Abercrombie & Fitch (ANF) decided would be the appropriate course of action. From Abercrombie & Fitch’s press release announcing the contract extension:

 Abercrombie & Fitch Co. today announced that it has entered into a new and restructured employment agreement with Michael Jeffries, which will take effect upon the expiration of Mr. Jeffries’ current agreement on February 1, 2014.  The terms of Mr. Jeffries’ new employment agreement are included in a Form 8-K to be filed with the Securities and Exchange Commission today.

Craig Stapleton, Lead Independent Director of the Board, said, “Today’s announcement is the result of an extensive review by the Board and detailed discussion with shareholders over several months, and the specific terms of Mike’s new contract reflect direct feedback from those discussions.  The new agreement employs a more simplified, performance-based compensation structure that is designed to align incentives closely with the success of the company and the interests of shareholders.”

The Wall Street Journal has the reaction from one unhappy investor:

Activist investor Engaged Capital LLC reacted negatively to the decision. The fund had sought to replace Mr. Jeffries, arguing that he had continued to pull in high pay despite poor performance and was an obstacle to a sale of the company to a private equity buyer.

The fund said it was “disturbed” to learn of the decision and said it would consider all its options for holding the board accountable. Activists sometimes mount proxy fights against companies by seeking to replace directors nominated by management with their own candidates.

“This decision appears to be made without any substantive discussion with shareholders,” Glenn Welling of Engaged wrote in an emailed statement. “We consider this an outright dereliction of the Board’s fiduciary duties.”

RBC Capital Market’s Howard Tubin and Courtney Willson consider the announcement good news. They write:

While we had expected Mr. Jeffries to enter into a new contract, some in the market will, no doubt, be disappointed by this development.  We do believe that the hiring of individual brand presidents to aid Mr. Jeffries in running the company could turn into a positive over the intermediate term.

In our opinion, one of the major issues ANF had been struggling with has been a sameness in the merchandise offering, a lack of differentiated and compelling merchandise in-stores to excite the customer, and an offering that was too similar within the A&F and Hollister brands.  Bringing on new talent to run the brands on more of an individualized basis could help to alleviate those issues.  However, 1) the hires have to have appropriate and significant experience managing global lifestyle brands, and 2) the individuals need to be of a senior level and be respected by Mr. Jeffries.  Hiring “yes men” or “yes women” will not bring anything beneficial to the company.  These leaders must challenge Mr. Jeffries and Mr. Jeffries must accept and implement input from these new executives.  Should this happen, ANF will likely be better off over the next 1-2 years as the new presidents make an impact on the business.

5 Best Heal Care Stocks To Watch Right Now

Let’s just say the market’s reaction hasn’t been quite as positive. Shares of Abercrombie & Fitch have dropped 2.6% to $34.01 today, even as American Eagle Outfitters (AEO), which had been competing for worst retail stock of the year not named J.C. Penney (JCP), has gained 0.1% to $14.87.