Saturday, November 30, 2013

Salesforce, Urban Outfitters, Tyson are stocks to watch

SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Monday's session are Salesforce.com Inc., Urban Outfitters Inc. and Tyson Foods Inc.

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The Central Intelligence Agency is building a database of international money transfers that includes millions of Americans' financial and personal data. Getty Images.

Salesforce.com (CRM)  is projected to report third-quarter earnings of 9 cents a share, according to a consensus survey by FactSet.

"Coming on the heels of a much stronger 2Q 2014 that led to shares of CRM finally breaking out over the past few months (up 31% since August 29th, vs. the Nasdaq Composite up 10% over the same time frame), our checks have revealed ongoing strength in the mid-market in Q3," Tom Roderick, an analyst at Stifel Nicolaus, said in a report.

Urban Outfitters (URBN)  is forecast to post third-quarter earnings of 45 cents a share.

/quotes/zigman/55244/delayed/quotes/nls/urbn URBN 40.17, +0.17, +0.43% Urban Outfitters Inc.

"Macro-issues not withstanding, we continue to believe the assortments are compelling and business will pick up in fourth quarter," Howard Tubin, an analyst at RBC Capital Markets, said in a note.

Tyson Foods (TSN)  is likely to post fiscal fourth-quarter earnings of 70 cents a share. "We expect substantial margin gains ahead as this lower corn input environment continues. In our opinion, this is the best shape the company has been in for 15 years," Timothy Ramey, an analyst at D. A. Davidson & Co., said in a note published earlier this week. He rates the stock at a buy with a price target of $40.

Thursday, November 28, 2013

Data Reports Send Dow Up For 5th Straight Session

U.S. stocks pushed higher Wednesday, with the Dow rising for the fifth straight trading session to close at a new record high after a string of upbeat economic reports.

The Dow Jones Industrial Average rose 0.2% to close at 16,097.2. The S&P 500 index tacked on 0.3% to close at 1,807.2.

And the Nasdaq Composite rose 0.7% to end at 4,044.75.

Technology stocks performed well on Wednesday. Former Dow component Hewlett-Packard (HPQ) rallied after a better-than-expected earnings report. International Business Machines (IBM) led gainers in the Dow industrials.

Still, it was a string of economic reports that sent the indicies higher, including better-than-expecetd data on jobless claims, manufacturing in the Midwest and consumer confidence.

U.S. stock markets will remain closed Thursday for the Thanksgiving holiday, and close early — 1 p.m. EST – on Friday.

Earlier today, October orders for durable goods fell by 2%.

Consumer confidence was stronger than expected in November. The final reading of the Thomson-Reuters/University of Michigan consumer sentiment index for the month was revised up to 75.1, above the projected 73.5. The Conference Board’s index of leading economic indicators rose 0.2%, while it was expected to remain unchanged.

The ISM's Chicago-area purchasing managers’ index slipped to 63.0 in November, while a decline to 60.0 was expected. Earlier, the Department of Labor reported there were 316,000 initial claims for unemployment benefits in the latest week, fewer than the 330,000 expected.

Looking ahead, investors are focused on the December meeting of the Federal Reserve. The central bank has said it could start to pare back those policies in coming months, but that the decision will depend on economic data.

The yield on the 10-year Treasury note rose to 2.739% from 2.696% late Tuesday.

Crude-oil futures fell after a government survey showed domestic supplies rose for a 10th straight week, dragging down major oil companies including Exxon Mobil (XOM), Chevron (CVX) and Noble Energy (NBL).

Meanwhile, gold futures fell, while the dollar edged lower against the euro and rose against the yen.

In other corporate news, Time Warner Cable (TWC) edged higher after The Wall Street Journal reported yesterday that Cox Communications is considering jumping into the bidding for the second-largest cable operator.

Charter Communications (CHTR) and Comcast (CMCSA) are each also contemplating bids. The WSJ reported late today that Charter is arranging $25 billionin debt to fund its bid.

Shares of Charter and Comcast fell 0.9% and 0.3% respectively.

A federal judge cleared the way for AMR (AAMRQ) to exit bankruptcy, clearing the way for a merger between American Airlines (owned by AMR) and U.S. Airways Group (LCC). AMR and U.S. Airlines rose 2.7% and 0.6% respectively.

CVS Caremark (CVS) rose 1% to $66.77 after it said it would buy medical provider Coram LLC to continue its push into the specialty-drug market.

Tesla Motors (TSLA) rose 5.3% to $126.94 after analysts at Bank of America Merrill Lynch and Deutsche Bank posted opposing notes.

Crocs (CROX) rose 2.2% to $15.84 after Bloomberg reported the firm may be seeing an investment from private equity firms.

Wednesday, November 27, 2013

How to Avoid Getting Ripped Off Using Online Tools

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Often, the best way to avoid a rip-off is to know what others are paying for things. What did the guy sitting next to me on the plane pay for his ticket? How much did the neighbor pay for his kid's wedding? That emergency dental procedure? The water pump replacement on her late-model foreign car? Retailers use big data to maximize revenue -- that is, to take as much of your money as they can. Why shouldn't you have the same power? Increasingly, websites and apps are giving consumers access to incredibly detailed aggregate price information, holding out the promise that the scales of bargaining power might tip back their way. There are now hundreds of online tools -- most of them unbiased and data driven -- that tell consumers the prices others have paid for everything from flowers to bathroom renovations. Enter a ZIP code, select a few criteria and faster than a shopkeeper can say, "High profit margin," you can say, "Not so fast!" The price calculators -- many are called "cost estimators" -- are fun to play with, but they pack a real punch. None of these tools will prevent a bait-and-switch estimate, or keep you from getting nickel-and-dimed. But they do something just as important: They give you a reference point (what economists call an anchor) so you always know you are in the right ballpark, if not sitting in the right seat, when paying for something. I'll divide the tools into three categories: Regret tools, bargaining tools and anxiety tools. Let me explain. Regret Tools Data are always backward looking, and as we all know, the past is no guarantee of future performance. So it is with prices others paid. This is most obvious in airline tickets, where knowing your friend got a good deal on a flight to Ireland last week is almost useless as a predictor of your price, other than the near certainty that you will pay more. Still, longer trends offer some insights, and that's what I love about FlightAware's beta product, "Insight for Airlines." FlightAware is known for giving passengers and their loved ones up-to-the-moment geographic and speed data on planes in the air. But click around, and you'll find the Insight product, which tells users the median price paid for tickets on that route, by airline, during a 12-month period. It also includes the maximum and minimum prices for that route. If you're on the plane, you'll either feel smart or stupid, based on what you paid. Flightaware's director of software development, Jeffrey Lawson, notes that the data tool comes with a long list of qualifiers. For starters, the data, which are acquired from the airline industry, is about two years old. Second, it's not fair to compare cost of a ticket purchased the day before a flight with a ticket purchased 11 months prior to the trip. It's not even fair to compare a February ticket to a May ticket. But, if you fly a route frequently -- say, Seattle to New York -- you get a good idea if you are overpaying regularly. Insight also makes it easy to compare airlines, which is particularly useful. For example, on a Seattle to Newark run, United carries the most passengers, but Alaska charges about 10 percent less. Scheduling concerns aside, it sure looks like some of those United passengers should consider Alaska. Lawson, by the way, says FlightAware is considering an update to the product, which would be a boon to travelers. But since you can't use the FlightAware's data to bargain for lower fares, it's mostly a "regret tool," as in, "Wow, I'm kind of a sucker for paying that much." I'd put wedding cost calculators into the same category. One of the best I found is at CostOfWedding.com. It allows lovebirds to enter all kinds of specifics, such as what kind of table gifts they expect to buy, and how fancy the reception food will be. Still, weddings involve so many details and decisions that wedding calculators are really only useful for after-the-fact comparisons. For example, CostOfWedding.com says a 75-person affair in suburban Washington should cost $21,700. That won't save you money if you are planning an event there, but it probably will make you feel good or bad if you've done so recently. Another regret tool is the "Location Affordability Portal," released in the past week by the U.S. Department of Transportation. It's supposed to help homebuyers more accurately predict the real costs of moving by adding in transportation costs -- in other words, that "drive until you qualify" home in the exurbs might not be as much of a bargain as it seems, once you add in the price of gas. The tool is very hard to use, however, and requires a lot of specialized inputs from users. At the moment, it's more useful to inspire "what might have been" daydreaming. Bargaining Tools Calculators that predict near-term costs are far more practical. Most of us have no idea what installation of a home electric circuit panel should cost, so plugging your ZIP code and your preferences into a tool before getting bids is incredibly useful. Use it to throw out a bidder who's asking for the moon. I like both HomeAdvisor and Homewyse.com. (In Columbia, Mo., upgrading a panel costs $866-$1,224, Homewyse says.) RedBeacon.com offers an even wider range of cost calculators for home services like landscaping or housecleaning. The most useful estimator I found unmasks the mystery of the costs of auto repairs, offered by RepairPal.com. Not only does RepairPal offer ZIP-code level pricing -- a water pump replacement should cost between $263 and $368 in north-suburban Seattle -- it also offers additional necessary information, like this: Water pump repairs often require belt replacement, particularly if fluid leaked on the belts. Getting a repair cost estimate takes only a moment, and it can save you hundreds at a repair shop. "We have had consumers tell us that, after they showed a RepairPal estimate, a shop lowered their price," said Bret Bodas, director of RepairPal's automotive professional group. Not surprisingly, auto mechanics weren't thrilled about the tool when it was first made public several years ago. But Bodas says fair pricing information helps honest mechanics, and the industry has slowly warmed to the idea of transparency. Napa Auto Parts actually licenses data from RepairPal for its own tool now. With both home and auto repairs, the data behind the calculator come mostly from cost estimation tools already used by contractors and repair shops. For example, automakers publish a list of labor times required for various repair jobs. Shops use those for estimates; RepairPal uses the same data, then adjusts for labor rates by ZIP codes, Bodas said. Naturally, consumers with broken-down cars aren't always in a great bargaining position. Still, RepairPal can make sure you aren't being taken for a ride, and it can even suggest you might be better off paying to have a vehicle towed to another shop for a second opinion, if the first shop's quote price is wildly off the mark. Sick consumers have even less bargaining power; for that reason, health care cost calculators like the helpful one you'll find at FairHealthConsumer.org almost qualify as regret tools. Still, it's worth knowing what medical procedures should cost before having those conversations with your insurance company and your doctor's office. And there are times when knowing you overpaid the dentist for your last crown gives you the power to pick a new dentist, so we'll call this a bargaining tool. And it's sometimes possible to negotiate price after the fact with providers; price comparison tools are useful in those discussions. By the same logic, the various taxi price calculators are also helpful in real time. No, you can't get a cab driver to negotiate a metered trip. But before visiting any new city, it's worth visiting a site like TaxiFareFinder.com and plugging in various trips you expect to take. You'll get a map of your route and an expected cost, so you'll know if your driver makes an unexpected wrong turn, and you can demand an adjustment. Anxiety Tools Predicting long-term future costs is fraught with peril; still, it's a good idea to know what you will be up against in 2020 so you can plan for the future. Before clicking on any of these sites, however, you might want to pour a nice cup of hot tea. They are likely to make your blood pressure rise. There's plenty of tools for calculating the cost of children, in the near and far future. Let's start small, like they do. Uncle Sam offers his own tool at USDA.gov, where the first-year cost of a kid in the Northeast is pegged at about $14,000. Look further into the future, and you may think twice about having a baby. Or at least about training that baby to be a scholarship athlete. BabyCenter.com thinks a child born in the Northeast today will cost $400,000 if she or he attends a private college. If you dial up cost of college calculators, you will conclude that the BabyCenter number is low. At CollegeSavings.org, you'll get an even starker splash of reality. Assume 5 percent tuition inflation -- and why not, that's how much colleges raise tuition each year at the moment -- at a four-year private school will cost $316,000 by the time today's babies graduate. (That's just tuition -- with room and board, the cost is $430,000!) Speaking of anxiety, you'll find hundreds of tools on investment sites offering to guesstimate how much money you will have, or will need, at retirement. Among the assumptions you'll see: average 12 percent market returns, spending levels remain at 80 percent after retirement, etc. You're already anxious enough.

Tuesday, November 26, 2013

Report: The greatest NFL comeback teams

Last year, the Kansas City Chiefs were the worst team in the NFL, winning just two games and scoring an average of 13 points per game. This year, after hiring long-time Eagles coach Andy Reid, the Chiefs are one of only two undefeated teams and appear on their way to at least a long playoff run, if not the Super Bowl.

Most teams with bad years tend to require a number of years to improve (if they improve at all, that is). If the Chiefs continue their improbable success, they could become one of those rare franchises that bounces back straight to the top — appearing in the Super Bowl. Looking through the history of the modern Super Bowl era, 24/7 Wall St. reviewed the eight teams that managed to come back from a losing season to make it all the way to the Super Bowl.

Sometimes, a disappointing season can actually improve a team's chances of making the Super Bowl. A terrible year, or years, can often lead management to clean house, firing coaches and making trades. In 2002, the Carolina Panthers fired George Seifert after an abysmal 1-15 season. His replacement, John Fox, ended up leading the team on a Super Bowl run two seasons later.

A bad year can also boost a team's chances in the form of new star players. Fans know this because the worst teams are allowed to pick earlier in the draft after a season concludes. So, the 15-loss Panthers were allowed to select second overall. They used this pick to draft future star defensive end Julius Peppers, who became a major part of the following year's Super Bowl team.

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For some of these comeback teams, the Super Bowl run was just the first sign of years of success. Going into the 1999 season, the St. Louis Rams had not had a winning season in nearly a decade. That team, which became known as the "greatest show on turf" for its high-powered offense, won the Super Bowl that year, played in another two years later, and made the playoffs in four of the next five seasons.

On the o! ther hand, there are comeback teams on this list that ended up being flashes in the pan. The 1998 Atlanta Falcons came back from two losing seasons to go 14-2 and lose Super Bowl XXXIII. Instead of riding on that success, the team then missed the playoffs in each of the next three years.

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8. 1998 Atlanta Falcons
>Year made Super Bowl: 1999
>Previous year record: 7-9
>Super Bowl season record: 14-2
>Won Super Bowl?: no

After the Falcons' remarkably bad 1996 season in which they lost 13 out of 16 games, the team fired head coach June Jones, and veteran Dan Reeves took over the role. The next year, the team started the season by winning only one of its first eight games, but ended the season strong. The 1998 Falcons are the only team in Atlanta's nearly five decade history to make the Super Bowl. That year, they were undefeated at home, scored more points than in any previous season, won more games than in any other season in the franchise's history, and won their first division. Behind running back Jamal Anderson's 1,846 rushing yard season, the Falcons made it to the Super Bowl, where they eventually lost to John Elway's Broncos 34-19.

7. 2003 Carolina Panthers
>Year made Super Bowl: 2004
>Previous year record: 7-9
>Super Bowl season record: 11-5
>Won Super Bowl?: no

The Panthers' 2001 season was the worst in team history up to that point, with the Panthers winning just one game all year. This proved to be the last season of head coach George Seifert's career. That awful season, however, eventually paid dividends for the team, allowing it to select star defensive end Julius Peppers second overall in the 2002 draft. The following year, the team, under coach John Fox, showed some promise despite going on an 8-game losing streak in the middle of the season. In 2003, only two years removed from one of the worst records in NFL history, quarterback Jake Delhomme and the team went on t! o win 8 o! f the first 10 games. The Panthers finished the season with an 11-5 record, but lost Super Bowl XXXVIII to the Patriots in an exciting 32-29 close game.

6. 1981 Cincinnati Bengals
>Year made Super Bowl: 1982
>Previous year record: 6-10
>Super Bowl season record: 12-4
>Won Super Bowl?: no

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After three losing seasons, during which the Bengals won a total of only 14 games, the team was headed by three different coaches. But the team started the 1981 season fresh, with brand new uniforms that included the Bengals' distinctive and still in use tiger-striped helmets. Wide receiver Cris Collinsworth, who was drafted in the offseason, proved to be a good target for veteran quarterback Ken Anderson. Together, they had eight touchdown passes and over 1,000 receiving yards during the regular season. Cincinnati finished the season 12-4, the best record in the AFC. The Bengals lost Super Bowl XVI to the San Francisco 49ers, another team making an impressive comeback from the previous year.

5. 1996 New England Patriots
>Year made Super Bowl: 1997
>Previous year record: 6-10
>Super Bowl season record: 11-5
>Won Super Bowl?: no

In the 10 years Prior to the Patriots' 1997 Super Bowl appearance, the team only made the playoffs twice. The Patriots went into the 1996 season after a 6-10 record in 1995, but showed some promise in the form of running back and Offensive Rookie of the Year Curtis Martin. In spite of growing tensions between head coach Bill Parcells, who resigned at the end of the season, and owner Robert Kraft, the Patriots had the second best record in the AFC. The then-underdog team continued to play in the Super Bowl where it was defeated by the Green Bay Packers.

4.1981 San Francisco 49ers
>Year made Super Bowl: 1982
>Previo! us year r! ecord: 6-10
>Super Bowl season record: 13-3
>Won Super Bowl?: yes

In 1978 and 1979, the 49ers had the worst record in the league, winning only two games in both seasons. After the '78 season, the team drafted future Hall of Fame quarterback Joe Montana 82nd overall. In 1980, the 49ers finished the regular season second to last in the NFC West. Draft picks Eric Wright, Carlton Williamson, and 2000 Hall of Fame inductee, Ronnie Lott helped improve the 49ers' defense and turn around the losing team's record for the 1981 season. These players were among the defensive line that performed perhaps the most famous goal-line stand in NFL history to win Super Bowl XVI against Cincinnati. San Francisco's 1981 season was also quarterback Joe Montana's first full season as starter. He went on to lead the 49ers to four Super Bowl wins, and is tied with Terry Bradshaw for the most titles of any NFL quarterback.

3. 2000 New York Giants
>Year made Super Bowl: 2001
>Previous year record: 7-9
>Super Bowl season record: 12-4
>Won Super Bowl?: no

The years leading up to the Giants' comeback season were riddled with inconsistency. This was particularly true in the quarterback position, for which the team had multiple replacements in just a few years. The Giants had only one winning season in the five years before 2000. Even at the beginning of the 2000 season, the team was expected to finish last. Quarterback Kerry Collins, who was picked up by the Giants in 1999, took over from Kent Graham that year and started the next season. Collins, however, could not handle the Ravens' defense in Super Bowl XXXV, which New York lost 34-7.

2. 2001 New England Patriots
>Year made Super Bowl: 2002
>Previous year record: 5-11
>Super Bowl season record: 11-5
>Won Super Bowl?: yes

The 2000 Patriots — led for the first time by new hire, head coach Bill Belichick — finished dead last in the AFC East after the regular season. The 2001 season was not lo! oking to ! turn much better when quarterback Drew Bledsoe was hospitalized with serious internal injuries early in the season. This was a blessing in disguise, however, for it opened the position for the future hall-of-famer Tom Brady. After winning a controversial victory over the Vikings in the Divisional Playoffs, Brady led the Patriots through one of the biggest Super Bowl upsets in NFL history over the "Greatest Show on Turf" St. Louis Rams.

1. 1999 St. Louis Rams
>Year made Super Bowl: 2000
>Previous year record: 4-12
>Super Bowl season record: 13-3
>Won Super Bowl?: yes

Prior to 1999, the Rams had endured nine losing seasons under four different head coaches. Over this period of time, the Rams underwent numerous transitions, including a home-town change from Los Angeles to St. Louis. The Rams made a number of strong acquisitions for the 1999 season, including new a Marshall Faulk and Trent Green. Faulk would go on to be essential to the Ram's high powered offense that year. Green, however, sustained a crippling knee injury in the preseason and had to be replaced by an unknown and inexperienced Kurt Warner. Warner would excel, however, and During the regular season, the Rams scored nearly 20 points more than their opponents, on average. The team would come to be regarded as one of the most dominant offenses in NFL history. The Rams finished the season with the best record in the NFC, and went on to win the Super Bowl.

24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Monday, November 25, 2013

Goldman̢۪s Q3 Sales Fall 20%, Profits Flat

Goldman Sachs (GS) said Thursday that its third-quarter net income was $1.52 billion, or $2.88 a share, vs. $1.51 billion, or $2.85, a year ago. These results beat estimates, but net revenue fell far short of expectations.

Sales dropped 20% year over year to $6.72 billion. Goldman's investment bank, for instance, reported a 44% drop in revenue from bond, currency and commodities trading.

The bank, led by Lloyd Blankfein, cut costs by 25% to $4.56 billion in the third quarter, and compensation expenses declined by 35%.

“Ongoing uncertainty around the economic outlook and the traditional seasonal slowdown drove a significant reduction in client activity during the quarter," said CFO Harvey M. Schwartz, in a call with analysts early Thursday.

“This reduction in nationwide client activity obviously impacted the opportunity set in many of our businesses," Schwartz said. In investment banking, equity and equity-related volumes declined 27% quarter over quarter. Debt [unintelligible] volumes declined 10% versus the prior quarter, and completed M&A volumes declined 36% sequentially.”

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In its institutional business, net revenues from fixed client execution were $1.2 billion in the third quarter, he says, “substantially lower than the second quarter.”

Investment management fees topped $1 billion but were 1% lower than they were in the prior quarter. Assets under supervision grew by $36 billion to $991 billion. “Net market appreciation of $19 billion was primarily in equity assets, while $17 billion in inflows were concentrated in fixed income assets,” Schwartz said.

Saturday, November 23, 2013

The Fast Track to Retirement: Shop Less Now

Money in bird nestGetty Images

It's almost Thanksgiving and retailers are going all out on advertising this year. Plus, 2013 has a shortened shopping season because Thanksgiving is later than usual. As a result, retailers are opening even earlier on Thursday. For example, Kmart will open at 6 a.m. on Thanksgiving and will stay open for 41 hours for Black Friday. That's partly our fault because every year more Americans go shopping on Thanksgiving Day. The consumerist lifestyle may help the economy, but it won't help your retirement. It's hard for young people to think about retirement because it's such a long way off. Getting a new 50-inch LCD TV takes just a few minutes with a swipe of the credit card. Black Friday makes it even more fun because everyone is out trying to score a good deal. It's easy to get caught up in the consumerist lifestyle and ignore the chore of saving for retirement. It's much harder to take the long view and see why spending less money is better in the long run. Here's why it's better to save that $500 instead of getting a new TV: Less consumerism means you will need less money for retirement. Financial experts recommend replacing 70 to 80 percent of your income before you retire, which means the average household needs this proportion of their current income for retirement. This income can be from investments, pensions, Social Security or even a part-time job. As you can imagine, it's very difficult for most people to generate 70 to 80 percent of their current income without a job. That's why many people have to wait for Social Security benefits or a pension to kick in before they can retire. Most people will need to spend 70 to 80 percent of their current income to get by in retirement. You don't have to be average, though. If you spend less and save more, then you will be used to it and probably won't need to spend a lot of money after retirement. What if you only spend 50 percent of your current income? Then you would only really need to replace half of your current income in retirement. It is much easier to achieve 50 percent replacement income than 80 percent. Less consumerism means you can save and invest more. Another rule of thumb is to save 10 percent of your income for retirement. Saving 10 percent every year will most likely enable you to retire at 65 and generate the previously mentioned 70 to 80 percent replacement income. Many families spend all their income and even saving 10 percent is difficult. However, if you can manage to spend only 50 percent of your take home income, then you will be able to save a lot more than most people. Saving and investing 50 percent of your take home income will put you on the fast track to financial independence. In 20 years, your investment income will likely be more than your earned income, and that's what being wealthy is all about. Picture $500 compounded over 20 years. What if you saved and invested $500 instead of spending it on a new TV? After 20 years, you'll have $2,330 (assuming 8 percent annual gains). That's not bad, but not a life-changing amount either. However, once you start saving, it can become a habit. If you save and invest $500 every year, then you'll have $24,711 after 20 years. Now that's a more significant sum. Saving 50 percent of income isn't possible for everyone. Saving and investing $500 per year will compound to almost $25,000 in 20 years. Imagine how much you'll have if you save 50 percent of your income. It will most likely be enough for you to achieve financial independence and do whatever you want. Of course, saving 50 percent isn't possible for everyone, but I think most of us can save much more than we are currently doing now. Let's examine our consumerist lifestyle and see if it's possible to cut back a bit and take the long view instead.

Thursday, November 21, 2013

Why Sprint, Textura, and Williams-Sonoma Soared With the Dow Today

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

It took four days, but Dow 16,000 finally stuck until the close, with the Dow Jones Industrials (DJINDICES: ^DJI  ) finishing the day up 109 points. Particularly strong showings from the financial contingent of the Dow 30 pushed the average up, but their gains were small compared to the larger jumps that Sprint (NYSE: S  ) , Textura (NYSE: TXTR  ) , and Williams-Sonoma (NYSE: WSM  ) saw. Let's look at why these three companies did so well today, to see if we can draw hints about other potential winners down the road.

Sprint climbed 8% even though the wireless carrier dropped to last place in a Consumer Reports ranking of cell phone service providers. The company had finished in second place last year, but consumers were unhappy about everything from value provided in the company's plans to reliability of Sprint's service. News that the FCC might allow cell phone calls and text messaging aboard aircraft could open up a new opportunity for Sprint to capture a new market niche.

Textura rose almost 10% in anticipation of its earnings report, which it released after the market closed today. The company, which provides software to the construction industry, saw its sales soar 72% from the year-ago quarter, accelerating from its previous growth rate and raising its full-year fiscal 2014 forecast for projected revenue as well. But the company's adjusted loss per share of $0.23 was a nickel per share worse than analysts had predicted, and as a result, Textura gave up most of its gains immediately after its announcement in after-hours trading.

Williams-Sonoma gained 8% after reporting strong earnings last night and raising its guidance for the full year. The home retailer boosted its net income by 16% on an 11% gain in sales, and Williams-Sonoma pointed specifically to success at its West Elm furniture stores and its PBteen children's bedroom furniture chain. As the housing market recovers, Williams-Sonoma can expect to see continued improvement in homeowners spending more to outfit their homes.

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Monday, November 18, 2013

Best Dividend Stocks To Own For 2014

Here are today's top news headlines from�Fool.com. Check back throughout the day as this list is updated, and follow us on Twitter at�TMFBreaking.

J.C. Penney Releases Selected Q1 Numbers

MAKO Surgical Narrows Loss in Q1

3D Systems to Float New Stock Issue

Baidu Creates China's Largest Online Video Site With $370 Million Deal

Pentagon Awards $7 Billion in Green Energy Contracts

Pentagon Awards 16 Contracts Worth $8.3 Billion

Timken Keeps Dividend Steady

House Set to OK Bill to Change Overtime Pay Law

Cliffs Natural Resources Maintains $0.15 Dividend

Tim Horton's Dividend Steady at $0.26

515 Monthly Income Payments and Counting at Realty Income

Northrop Wins Battlefield Airborne Communications Node Contract

Germany's Expected Tax Take Slightly Lower

Treasury Secretary Working on Penmanship

W&T Offshore Raises Dividend to $0.09

Coke Takes Anti-Obesity Campaign Global

Best Dividend Stocks To Own For 2014: CenturyLink Inc.(CTL)

CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.

Advisors' Opinion:
  • [By Ong Kang Wei]

    For example, Digital Realty (DLR) is the undoubted leader in the data storage industry, with a market cap of $8.3B. Its other three competitors, DuPont Fabros (DFT), CoreSite Realty (COR) and CyrusOne (CONE), have market caps of $1.5B, $930M and $430M respectively. In addition, with the level of complexity involving Digital's business making it immensely difficult for companies to operate data centre facilities, the company is in a good position for future growth. The company also has a wide network of 595 tenants (significantly more than other competitors), including CenturyLink (CTL), AT&T and Morgan Stanley (MS). This further secures its long term business prospects and also its dominance over its competitors.

  • [By Dan Caplinger]

    You can find many examples of this phenomenon recently:

    Late last month, Pitney Bowes (NYSE: PBI  ) cut its dividend in half after announcing worse-than-expected sales and income. The stock had suffered from weakness in Pitney Bowes' core mailing and enterprise business solutions segments, and the company chose to sacrifice its former double-digit yield in order to shore up its financial condition. Even after the cut, the stock still yields a fairly high 5%. In February, CenturyLink (NYSE: CTL  ) cut its dividend by about 25%, again after reporting weak guidance for its earnings for the remainder of 2013. Even though the rural telecom company chose simply to put cash previously earmarked to pay its former yield of 7% toward share buybacks instead, the stock plunged more than 20% in response to the move, although it has rebounded significantly since then as investors recognized the fundamental benefits to the company from the capital reallocation. Until three months ago, Cliffs Natural Resources (NYSE: CLF  ) had a high dividend yield approaching 7% despite terrible conditions in its iron-ore and metallurgical-coal businesses. After announcing earnings in mid-February, the company cut its dividend by more than three-quarters in a move that will conserve cash for the ailing producer of raw materials for steel production. Now, the stock yields just 2.6%.

    That's not to say that all of the highest dividend paying stocks are doomed to reduce their payouts. Businesses that are designed to focus on maximizing cash flow rather than seeking growth can often sustain very high yields for years. Vanguard High Dividend Yield (NYSEMKT: VYM  ) and other dividend ETFs use a combination of factors beyond simple yield to choose stocks with sustainable high payouts.

  • [By Laura Brodbeck]

    Next week investors will be waiting for several key earnings reports including�Tesla Motors, Inc. (NASDAQ: TSLA), Time Warner Inc. (NYSE: TWX), CenturyLink, Inc. (NYSE: CTL), Groupon, Inc. (NASDAQ: GRPN)

Best Dividend Stocks To Own For 2014: Deswell Industries Inc.(DSWL)

Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.

Top 5 Warren Buffett Companies To Buy For 2014: Smith & Nephew SNATS Inc.(SNN)

Smith & Nephew plc develops, manufactures, markets, and sells medical devices in the orthopaedics, endoscopy, and advanced wound management sectors worldwide. The company operates in three segments: Orthopaedics, Endoscopy, and Advanced Wound Management. The Orthopaedics segment offers reconstruction implants, including hip, knee, and shoulder joints, as well as ancillary products, such as bone cement and mixing systems used in cemented reconstruction joint surgery. This segment also provides trauma fixation products consisting of internal and external devices, and other products, including shoulder fixation and orthobiological materials used in the stabilization of fractures and deformity correction procedures; and clinical therapies products comprising bone growth stimulation, joint fluid therapies, and outpatient spine products. The Endoscopy segment develops and commercializes minimally invasive surgery techniques, educational programs, and value-added services for sur geons to treat and repair soft tissue and articulating joints. It offers specialized devices and fixation systems to repair damaged tissues; fluid management equipment for surgical access; digital cameras, digital image capture, scopes, light sources, and monitors to assist with visualisation; radiofrequency wands, electromechanical and mechanical blades, and hand instruments for resecting damaged tissues. The Advanced Wound Management segment provides initial wound bed preparation and full wound closure products. This segment?s products are targeted at chronic wounds associated with the older population, such as pressure sores and venous leg ulcers; and products for the treatment of wounds, including burns and invasive surgery. The company serves medical and surgical service providers. Smith & Nephew plc was founded in 1856 and is headquartered in London, the United Kingdom.

Advisors' Opinion:
  • [By Nate Weisshaar]

    LONDON -- Smith & Nephew� (LSE: SN  ) (NYSE: SNN  ) reported quarterly revenue of $1.1 billion, which is essentially flat from a year ago, while pricing pressures and higher expenses resulted in earnings slipping 4%.

Best Dividend Stocks To Own For 2014: Pinnacle West Capital Corporation(PNW)

Pinnacle West Capital Corporation, through its subsidiaries, provides retail and wholesale electric services primarily in the State of Arizona. The company involves in the generation, transmission, and distribution of electricity through coal, nuclear, gas and oil, and solar resources. It also offers energy-related products and services, such as energy master planning, energy use consultation and facility audits, cogeneration analysis and installation, and project management with a focus on energy efficiency and renewable energy to commercial and industrial retail customers in the western United States. In addition, the company owns minority interests in various energy-related investments and Arizona community-based ventures; and develops residential, commercial, and industrial real estate projects in Arizona, Idaho, New Mexico, and Utah. As of December 31, 2010, it owned or leased approximately 6,290 mega watts of regulated generation capacity; and serviced approximately 1.1 million customers. Pinnacle West Capital Corporation was founded in 1920 and is based in Phoenix, Arizona.

Advisors' Opinion:
  • [By Marc Bastow]

    Phoenix-based bank holding company Pinnacle West (PNW) raised its quarterly dividend 4% to 56.75 cents per share, payable on Dec. 2 to shareholders of record as of Nov. 1.
    PNW Dividend Yield:�3.91%

  • [By Ben Levisohn]

    Iron Mountain has gained 2.6% to $26.55 at 3:05 p.m., making it the fourth-best performer in the S&P 500, ahead of WPX Energy (WPX), which has gained 2.4% to $19.94, Pinnacle West Capital (PNW), which has gained 2.3% to $53.55 and Dominion Resources (D), which has risen 2.1% to $59.85.

Best Dividend Stocks To Own For 2014: Reynolds American Inc(RAI)

Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. It offers cigarettes under the brand names of CAMEL, PALL MALL, WINSTON, KOOL, DORAL, SALEM, MISTY, and CAPRI; and cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand name, as well as manages various licensed brands, including DUNHILL and STATE EXPRESS 555. The company also provides smokeless tobacco products, including moist snuff under GRIZZLY and KODIAK brand names; pasteurized tobacco under CAMEL Snus brand name; milled tobacco under the brand name of CAMEL Dissolvables; other tobacco products, such as little cigars under WINCHESTER and CAPTAIN BLACK brand names; and roll-your-own tobacco under the brand name of BUGLER. RAI sells its products primarily through distributors, wholesalers, and other direct customers, including retail chains, as well as distributes its cigarettes to public warehouses. The compan y was founded in 1875 and is headquartered in Winston-Salem, North Carolina.

Advisors' Opinion:
  • [By Dan Caplinger]

    Lorillard's success has come from a combination of strategies aimed at diversifying its overall product portfolio. On one hand, the company has vigorously defended its core cigarette market, joining with peer Reynolds American (NYSE: RAI  ) to defeat an FDA proposal last year that would have greatly expanded requirements for graphic warning labels on cigarette packaging. Even with an onslaught of ad campaigns and more local smoking restrictions, Lorillard has been able to keep growing, with sales up 3.3% in the first quarter compared to the year-ago quarter and climbing market share for its overall cigarette portfolio and for Newport in particular. Lorillard also got FDA approval for new non-menthol cigarettes last month under the Newport brand, with plans to start marketing Non-Menthol Gold Box and Gold Box 100 products in the near future.

Saturday, November 16, 2013

Don't Buy JPMorgan's Stock: Societe General

Top Low Price Stocks To Invest In 2014

NEW YORK (TheStreet) -- This is a good time to buy shares of Bank of America (BAC) and Citigroup (C), but investors should steer clear of JPMorgan Chase (JPM) and Wells Fargo (WFC) for the time being, according to Societe General.

Societe General equity analyst Murali Gopal and his research team on Friday initiated their coverage of the "big four" U.S. banks.

Gopal rates Bank of America a "buy," with a $17 price target. "BAC is uniquely placed for sustained outperformance -- in the near term significant cost savings, additional reserve releases and a strong capital markets business will be supportive of earnings growth and improvement in [returns on tangible equity]," the analyst wrote in a note to clients. Gopal added that "Over the medium term, as short-term rates rise, the bank's strong retail branch network and core deposit base should boost top-line growth. Society General estimates Bank of America's operating earnings will grow from 1.01 a share this year to $1.37 in 2014 and $1.72 in 2015.

Society General also rates Citigroup a "buy," with a $59 price target. The improvement in housing prices is a good sign for Citi Holdings, which is the company's subsidiary into which noncore assets have been placed to runoff. The rise in home prices "bodes well" for the release of loan loss reserves, which boosts operating earnings, and $6.4 billion of the reserves within Citi Holdings are tied to North American housing, according to Gopal. "Stronger US taxable earnings will be a larger driver of Deferred Tax Assets (DTA)," recapture, according to the analyst. Citigroup's DTA valuation allowance was roughly $45 billion at the end of the second quarter, and the company's earnings during the first half of 2013 were boosted by $1.3 billion in DTA recapture. Gopal estimates Citi's adjusted EPS will increase from $4.93 in 2013 to $5.64 in 2014 and $6.31 in 2015. For JPMorgan Chase, Society General's initial rating is a "hold." The company's operating performance should be "steady," however, "Rising investigations, litigation and regulatory scrutiny will take time to resolve, and should keep related costs elevated, but more importantly, curb investor sentiment," according to Gopal. Society General estimates JPM's EPS for 2013 will total $5.88, declining slightly to $5.85 in 2014 and increasing to $6.25 in 2015.

JPMorgan was hit early Thursday with $920 million in fines from four regulators over the "London Whale," hedge trading debacle in 2012. Later on Thursday, the Consumer Financial Protection Bureau said JPMorgan had already refunded $309 million to 2.1 customers, with the Office of the Comptroller of the Currency also assessing a $60 million fine, spring from the two regulators' combined investigation of its "illegal credit card practices."

Gopal also rates Wells Fargo a "hold," citing "near-term headwinds," with "little room for improvement." Wells Fargo for years has been the strongest earnings performer among the "big four," as measured by returns on average assets and equity. But with the leading market share among U.S. mortgage lenders, the bank is facing a significant revenue decline as higher long-term interest rates lead to significantly lower mortgage refinance volume.

"Spread revenues along with mortgage banking comprise roughly two-thirds of the top line," for Wells Fargo, according to Gopal. And with the Federal Reserve likely to keep the short-term federal funds rate in a range of zero to 0.25% for an extended period, the bank could be waiting for years for the parallel rise in rates it needs for a significant boost to net interest margins and net interest income.

JPMorgan continues to be the cheapest on a forward price-to-earnings basis among the big four, despite the company's solid earnings performance over the past several years. JPM reported its third record annual profit of The shares closed at $52.75 Thursday and traded for 8.7 times the consensus 2014 EPS estimate among analysts polled by Thomson Reuters. The next cheapest among the group is Citigroup, with shares closing at $51.95 Thursday and trading for 9.3 times the consensus 2014 EPS estimate of $5.56. Bank of America's shares closed at $14.61 Thursday and traded for 10.7 times the consensus 2014 EPS estimate of $1.36. Wells Fargo has a similar valuation, with the shares closing at $42.96 Thursday and trading for 10.7 times the consensus 2014 EPS estimate of $4.01. RELATED STORIES: Jamie Dimon Unlikely to Face SEC Charges 'Historic' Admission to SEC Won't Help JPMorgan Plaintiffs JPMorgan Skewered for 'Illegal Credit Card Practices' JPMorgan Slapped with $920 Million in 'London Whale' Fines Wells Fargo Continues Mortgage Staff Layoffs as Refinancing Volume Drops -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Friday, November 15, 2013

The ‘new’ American will trade on Nasdaq under ‘…

The "new" American will make its Wall Street home on Nadaq.

The American Airlines Group – the company that will be formed once American parent AMR and US Airways close on their merger – will trade under the "AAL" symbol on the Nasdaq market, the airlines revealed in a joint statement today (Nov. 15).

RELATED: Merger: What's next for AA, US Airways customers?
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"Today we moved another step closer in our preparations to launch the new American Airlines," American CEO Tom Horton says in the statement. "Nasdaq offers a most advanced trading platform driven by innovation and efficiency – qualities that complement the new American."

5 Best Cheap Stocks To Watch For 2014

"We are very excited about the listing of our shares on the Nasdaq Global Select Market," Doug Parker, the CEO of US Airways who will head the new carrier, adds in the statement. "The combined airline will have a strong financial foundation and is poised to deliver significant value to shareholders as a result of its robust global network. We are excited about what's ahead for the new American and what we will be able to deliver for our investors, customers, employees and other stakeholders."

American's AMR parent had traded on the the New York Stock Exchange under the "AMR" symbol until its 2011 bankruptcy filing. US Airways currently trades on the NYSE under the "LCC" symbol, which it chose for "low-cost carrier" following its merger with America West.

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Thursday, November 14, 2013

5 Best Undervalued Stocks To Invest In Right Now

These remain good days for Swiss drug and diagnostics giant Roche (Nasdaq:RHHBY), as the company continues to see double-digit growth across most of its oncology franchise, with ongoing growth in diagnostics and early signs of additional operating leverage. While Roche's oncology pipeline looks solid, it's well worth asking if management has been too slow to move to bulk up other areas. Although Roche shares still look a little undervalued, M&A speculation is likely to remain in play for the foreseeable future, likely adding volatility to the shares.

Good Leverage Leads To Upside In The First Half
Although Roche's top-line results were almost exactly in line with expectations, the company still managed to beat operating assumptions by a meaningful amount due to more effective marketing leverage.

Revenue rose 5% (in constant currency) this quarter, led by 6% growth in the pharma business and 3% growth in the diagnostics business. Within drugs, Avastin and the company's HER2 franchise continue to grow at double-digit rates, while Lucentis was also up by double digits. Within diagnostics, Roche's professional business was up 6% (similar to Abbott (NYSE:ABT)), with double-digit growth in immunoassay. Tissue diagnostics was also pretty good (up 6%), while molecular diagnostics was weak and up only 1%. Roche's negative 5% performance in diabetes was poor, but at least better than Johnson & Johnson (NYSE:JNJ) as the major testing companies suffer through a harsher reimbursement environment.

5 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 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.

  • [By Eric Volkman]

    Tupperware Brands (NYSE: TUP  ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.

  • [By Arie Goren]

    After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

5 Best Undervalued Stocks To Invest In Right Now: 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 Dr. Kent Moors]

    That's why some of the biggest OFS providers - like Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL) and Weatherford International (NYSE: WFT) - have been buying up oil and gas equipment companies.

  • [By Dan Caplinger]

    Another issue that Varco has to face is the specter of increasing competition. Cameron International (NYSE: CAM  ) has arisen as a big player in the drilling and production systems space, with a particular emphasis on subsea applications like blowout preventers. With Cameron sporting a recent partnership with Schlumberger (NYSE: SLB  ) , the combination will have both the expertise and the financial resources to challenge Varco in that niche. More broadly, up-and-coming Forum Energy (NYSE: FET  ) has sought to emulate Varco's broad-based services menu, offering remotely operated vehicles for deepwater inspection and construction as well as pipe and cementing materials and a range of subsea systems and equipment. Forum has posted solid results in its brief history, taking steps to continue its fast growth trajectory.

  • [By Monica Gerson]

    Schlumberger (NYSE: SLB) is estimated to report its Q3 earnings at $1.24 per share on revenue of $11.58 billion.

    Honeywell International (NYSE: HON) is projected to report its Q3 earnings at $1.24 per share on revenue of $9.92 billion.

  • [By David Smith]

    As June came to an end, the company finalized a joint venture, OneSubsea, with Schlumberger (NYSE: SLB  ) . The intriguing partnership -- in which Cameron has a 60% interest, with the remainder Schlumberger's -- will develop products, systems, and services for the subsea oil and gas market.

Top 10 Casino Companies For 2014: Dollar Tree Inc.(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 Lawrence Meyers]

    As a convenience store, it doesn’t have direct competition from�Dollar Tree (DLTR) or Family Dollar (FDO) because these dollar stores aren�� exclusively focused on food (and they have no gasoline or cigarette sales), and they��e targeted at the folks who are trying to save money over convenience, not vice versa. The convenience angle is another reason why�Walmart (WMT) and Costco (COST)�aren’t competitors, since those behemoths are about a total shopping experience.

  • [By Demitrios Kalogeropoulos]

    Costly market share gains
    The problem is that Family Dollar has had to pay up for its increasing market share and sales levels. The company's gross profit margin fell by more than a full percentage point, to 34.7% last quarter. In contrast, Dollar Tree (NASDAQ: DLTR  ) booked an expansion of profits, to 35.2%, continuing a trend that's seen it pull away from Family Dollar.

5 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 Rich Duprey]

    Just days after announcing cuts of up to 300 employees at its South Milwaukee facility that it acquired from Bucyrus, heavy-equipment manufacturer Caterpillar (NYSE: CAT  ) laid off 460 workers at its Decatur, Ill., plant, again citing mining industry weakness.�The Decatur plant is a manufacturing facility that runs a foundry, overhaul, and remanufacturing, and where the South Milwaukee layoffs have been deemed temporary, these are said to be permanent. All told, the company wants to eliminate about 2,000 jobs.

Wednesday, November 13, 2013

Credit Suisse Sees Panic Taking Over in Apple Stock

Credit Suisse is not impressed at all with Apple Inc. (NASDAQ: AAPL) and its new iPhone 5 models. We agree, as does Bank of America/Merrill Lynch with its key downgrade this morning. That analyst downgrade was one of sentiment, but Credit Suisse’s downgrade of Apple is far worse because it involves a lowering of estimates and expectations. Tim Cook is still chasing the ghost of Steve Jobs and the Apple iPhone 5 refresh (and de-minimus model) are just not enticing any new interest.

The firm downgraded Apple shares to Neutral from Outperform, and the firm has a $525 price target. Credit Suisse’s downgrade basically says “so much for the low end” and is lowering the firm’s 2014 earnings expectations as a result. Kulbinder Garcha said

As expected, Apple yesterday announced the iPhone 5s and iPhone 5c which both feature the newly redesigned iOS 7. In aggregate, we remain disappointed with Apple’s decision to remain a premium priced smartphone vendor, and this continues to competitively expose the company and limits its TAM and growth. Given a lack of TAM expansion and lower iPhone sales potential, we lower earnings per share by 8% for Fiscal Year 2014 and downgrade to Neutral.

Top Penny Stocks To Buy Right Now

The only good news is that Credit Suisse actually is still higher than what it calls consensus earnings. The lowered earnings per share target for 2014 is down to $44.48 from $48.22 per share, and the firm listed the consensus at $42.38 in earnings per share, which matches what Thomson Reuters lists as the consensus earnings estimate.

Apple shares were down around $482 when we first identified that Merrill Lynch Apple downgrade, and now shares were down just under $470 for a 5% drop right after the open on Wednesday.

As a reminder, $460 is where some serious support should be if things get much worse, because that is where the 50-day and 200-day moving averages come into play.

Tuesday, November 12, 2013

Mortgage Loan Rates Stifling Applications

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 4.6% in the group's seasonally adjusted composite index, following a decline of 4.7% for the previous week. Mortgage loan rates increased across the board last week.

The seasonally adjusted purchase index increased by 1% from the last report. On an unadjusted basis, the composite index again fell 5% week-over-week. The unadjusted purchase index decreased by 0.4% for the week, and is up about 5% year-over-year.

The MBA's refinance index fell 8% after dropping 4% in the previous week.

The share of refinancings fell a point to 62%. Adjustable rate mortgage loans account for 6% of all applications, up slightly from the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.56% to 4.68%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.57% to 4.74%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.6% to 3.71%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.36% to 3.44%.

Refinancings slipped again to a two-year low as interest rates bounced higher after falling last week, but purchase applications remain higher than they were a year ago.

Later today we will hear from the National Association of Realtors with its report on existing home sales. The consensus estimate calls for a seasonally adjusted annual rate in July of 5.13 million, up about 50,000 from June levels.

Sunday, November 10, 2013

Contrarian's Bullish Sentiment Signs

Sentiment polls have showed some amazing spikes, in fear on a less-than-5% pullback; as contrarians, this is exactly what you want to see, asserts Ryan Detrick, senior technical strategist at Schaeffer Investment Research.

Sentiment polls showed some amazing spikes, in fear on a less-than-5% pullback. As contrarians, this is exactly what you want to see. It doesn't mean the market has to bottom here and now, but it increases the odds of a lasting rally, once we get moving again.

First up, the American Association of Individual Investors (AAII) poll saw bears spike 52% in just one week, from 28.2% to 42.9%—the most bears since April 18. The bulls dropped to 29%—the lowest since mid-April.

This is significant because mid-April was a time to be accumulating stocks, right in front of the surprise May rally. Lastly, the bears have actually advanced for six consecutive weeks. This has never happened since the poll started back in 1987.

The Investors Intelligence poll saw those looking for a correction move over the critical 35% area to 35.1%. As you'd expect, when everyone is looking for a pullback, the odds of it happening are slim. We've crossed this percentage line two other times this year, and both marked short-term buy signals.

In fact, going back to 1980, the percentage of Investors Intelligence respondents expecting a correction has topped 35% just 28 times, and the (SPX) is up an average of 1.93% a month later, and up 75% of the time. The three-month return averages a very solid 3.75%, with the SPX up 70% of the time.

Another poll reflecting a huge spike in worry was the National Association of Active Investment Managers (NAAIM) survey, which asks money managers to provide a number that represents their overall equity exposure as of Wednesday's close each week.

The latest poll actually suffered its biggest drop since January 2008, falling from 69.85% clear down to 34.76%. This is near the June lows and presents a nice buying opportunity. The bottom line is: Active managers have plenty of cash to put to work; the only question is, will they?

It doesn't end there, though, as investors are speaking with their actions. According to BofA-Merrill Lynch, just two weeks ago, we saw the largest outflow from US equity mutual funds in over five years! Amazing what a small pullback and worry over Fed tapering can do to investors' psyche.

Now there are some worries—it isn't all great. One of our biggest concerns is the 10-day moving average of the all-equity, customer-only, buy (to open) put/call volume ratio is near its lowest level since April 2011, which marked a major peak before a near-20% correction. The lower this ratio, the more optimism there is among option speculators.

The action in housing stocks is another concern. The iShares Dow Jones US Home Construction Index Fund (ITB) is in the midst of making a very bearish-looking head-and-shoulders peak.

Meanwhile, the Dow Jones Industrial Average has broken its uptrend line from the November lows. Other indexes have held up better, but this is another concern.

Historically, August and September are two of the weaker months, and so far, August has lived up to that. In fact, going back 30 years, they are hands-down the two weakest months, with the dreaded September the worst.

If you look at more recent data, though, September surprisingly isn't that bad. In fact, the SPX is up seven of the past ten Septembers, and is actually positive on average. Should we see more of a dip in stocks, and with a spike in worry over September looming, that could be a positive.

Remember all the Sell in May worries? That didn't play out at all, as May saw a nice move higher. I'd say there's a chance that could happen once again in September. In conclusion, we continue to recommend buying dips.

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Friday, November 8, 2013

Four Ways to Profit from America's Wealthiest Citizens

By John Whitefoot

Half of the U.S. workforce is partying like its 1998—and not in a good way. According to the Social Security Administration, the median wage in the U.S. in 2012 was $27,519.10, marginally better than 2011’s median wage of $26,965.43.

That said, the median wage remains virtually unchanged since 1998, when the median wage was $27,519.55 when adjusted for inflation. So actually, you made $0.40 less in 2012 than you did in 1998. But I digress.

The report shows that more than half of Americans earned less than $30,000 in 2012. Incredibly, 15% of working Americans took home less than $5,000, with an average amount of just $2,024.79. During 2012, the S&P 500 climbed 13%, illustrating that the majority of Americans are not benefiting from the so-called recovery we call the U.S. economy.

Fear not, for there is hope. Stagnant wages are not hindering everyone: the number of Americans pulling in more than $5.0 million a year in 2012 increased by 26.8% year-over-year to 8,982. In 2011, just 7,082 Americans earned more than $5.0 million.

These stratospheric numbers only take net earnings into consideration; they do not account for capital gains made on the stock market, dividend growth, etc. Whereas America’s wealthiest citizens turn to the stock market to pad their retirement savings, the majority of Americans rely on increasing property values, income vehicles, and pension funds to pave their way to retirement.

Thanks to a record run on the S&P 500 and Dow Jones Industrial Average, America’s wealthiest have been seeing their holdings increase significantly since the Great Recession ended in 2007. On the other hand, thanks to the artificially low interest rate environment, fixed income investors (the vast majority of Americans) have seen their retirement savings decimated.

What has this economic divergence done to America? The widening gap means the majority of Americans are being forced to change the way they save, spend, and invest. Those looking to add value to their retirement portfolio this holiday season might want to consider taking advantage of the spending habits of the wealthy and luxury brand stocks.

When it comes to the playgrounds of the rich and famous, few are as glittery as the New York City fall auction season. Over the next couple of weeks, deep pockets are expected to help a large number of blue-chip artists like Warhol, Giacometti, and Rothko set new records. As a result, luxury brand stock Sotheby’s, (NYSE/BID), the only publicly traded auction house, continues to be bullish and is currently up more than 50% year-to-date.

Strong luxury spending has been keeping luxury brand stock Michael Kors Holdings Limited (NYSE: KORS) on the radar. Since debuting on the NYSE in December 2011, Michael Kors’ share price has climbed roughly 220% and is up 52% year-to-date.

Investors interested in diversifying their holdings and gaining greater access to a variety of luxury brand stocks might want to consider an exchange-traded fund (ETF) with exposure to a large number of luxury brand stocks.

The SPDR S&P International Consumer Discretionary Sector (NYSE: IPD) is an ETF that tracks the consumer discretionary sector of developed global markets. Holdings include luxury brand stock juggernaut LVMH Moët Hennessy – Louis Vuitton SA and Swedish luxury brand stock multinational retail clothing company H & M Hennes & Mauritz AB.

A brand-new luxury brand ETF worth keeping your eye on is the Renaissance IPO ETF (NYSE: IPO). Tracking the Renaissance IPO Index, one of the top holdings in the index is a 9.8% position in luxury brand stock Michael Kors Holdings.

Despite an anemic U.S. and global economy, the luxury brand stock market has been incredibly resilient. And as long as the stock market and wealth creation continues unabated, the luxury brand stock sector will continue to be bullish.

This article Four Ways to Profit from America’s Wealthiest Citizens was originally published at Daily Gains Letter

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

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Thursday, November 7, 2013

How A Hedge Helped Cushion The Blow For Tesla Longs On Wednesday

Five-Star Protection For Tesla Longs

Last month, after a video surfaced of a Tesla (NASDAQ: TSLA) Model S sedan that had burst into flames, I posted a hedge for Tesla longs concerned about adding downside protection ("Five-Star Safety For Tesla Longs"). In this post, I'll recap that hedge and show how it reacted to Tesla's post-earnings dive on Wednesday, November 6th.

The October 2nd TSLA Hedge

This was the optimal collar*, as of October 2nd's close, that was designed to limit an investor's losses to 20% over the next several months, for an investor willing to cap his upside at 20% over the same time frame:

As you can see at the bottom of the screen capture above, the net cost of that optimal collar was negative, meaning the investor would have gotten paid $50 to hedge.

How That Hedge Has Reacted To TSLA's Drop

Here is an updated quote on the put leg as of Wednesday's close:

And here is an updated quote on the call leg:

How That Hedge Protected Against Wednesday's Drop

TSLA closed at $180.95 on Wednesday, October 2nd. A shareholder who owned 200 shares of it and opened the collar above on October 2nd had $36,190 in TSLA shares plus an outlay of -$50 on the hedge, so $36,140 taking into account the hedge.

TSLA closed at $151.16, on Wednesday, November 6th, down 16.5% from its price on October 2nd. The investor's shares were worth $30,232 as of Wednesday's close, his put options were worth $3,890, and if he wanted to close out the short call leg of his collar, it would cost him $840. So: ($30,232 + $3,890) - $840 = $33,282. $33,282 represents an 8% drop from $36,190.

More Protection Than Promised

So, although TSLA had dropped by 16.5% at the time of the calculations above, and the investor's hedge was designed to limit him to a loss of no more than 20%, he was actually down only 8% on his combined hedge + underlying position by this point.

Options Give You Options

Being hedged gives an investor breathing room to decide what his best course of action is. A TSLA long hedged with this collar could exit his position with an 8% loss now, he could wait to see what happens, or if he remains bullish on TSLA, he could buy-to-close the call leg of this collar, to eliminate his upside cap. If he's even more bullish, he could sell his appreciated puts, and use those proceeds to buy more TSLA. He has those options because he's hedged.

*Optimal collars are the ones that will give you the level of protection you want at the lowest net cost, while not limiting your potential upside by more than you specify. Portfolio Armor's algorithm to scan for optimal collars was developed in conjunction with a post-doctoral fellow in the financial engineering department at Princeton University. The screen captures above come from the Portfolio Armor iOS app.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Options Markets Trading Ideas

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Wednesday, November 6, 2013

Benzinga's Top #PreMarket Losers

Curis (NASDAQ: CRIS) dipped 18.97% to $3.16 in the pre-market session after the company reported Q3 financial results and provided CUDC-427 development update.

Solazyme (NASDAQ: SZYM) dipped 12.46% to $9.06 on Q3 results.

PhotoMedex (NASDAQ: PHMD) shares dropped 12.09% to $11.27 in pre-market trading after the company reported weaker-than-expected third-quarter results.

Tesla Motors (NASDAQ: TSLA) shares fell 11.42% to $156.61 in the pre-market trading after the company reported a better-than-expected Q3 profit, but issued a weak outlook for the fourth quarter.

Posted-In: PreMarket LosersNews Movers & Shakers Pre-Market Outlook Markets

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

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