Wednesday, October 30, 2013

Drive a Tesla from Tijuana to Vancouver

tesla supercharger map

Tesla CEO Elon Musk says it will be possible to drive one of the company's Model S cars from Tijuana all the way up to Vancouver, Canada.

NEW YORK (CNNMoney) Tesla Motors has completed another big stretch of its planned cross-country network of free electric-car charging stations, the automaker said Wednesday, making it possible to drive an all-electric Model S sedan along the entire West Coast of the United States.

"Tesla West Coast Supercharger network now energized. Travel from Vancouver to Tijuana in styel [sic]," tweeted Tesla CEO Elon Musk.

The nearly 1,800 mile trip is possible, Tesla (TSLA) says, using charging stations along Highway 101 and Interstate 5. Supercharger stations can fully recharge a Model S in about an hour or give it a half-full charge in about 20 minutes, according to Tesla.

The stations are free for Tesla owners to use and are being placed along frequently-traveled major highways to allow long distance travel between major U.S. cities.

Tesla had announced in May that, by the end of 2013, enough Supercharger stations would be in place to allow a drive from New York to Los Angeles. Musk said in September that he plans to embark on a cross-country family trip with his five sons at the end of this year.

Within two years, the automaker plans to have every part of the continental U.S. within range of a Tesla Supercharger station.

Tesla Model S: Test drive D.C. to Boston   Tesla Model S: Test drive D.C. to Boston

The Model S can travel up to 265 miles on a charge, according EPA estimates.

Musk and the New York Times got into a dispute early this year when a reporter for th! e paper claimed he ran out of power while trying to drive from Washington to Boston using the Supercharger network. A later test drive by CNNMoney reporters showed the car was able to make the drive using the Supercharger network then in place. Tesla ultimately plans to have a charger at least every 80 to 100 miles on heavily traveled route like the Washington-to-Boston corridor.

Musk tweeted on Wednesday that Tesla's East Coast Supercharger Network "should be complete in a few months."

Tesla is also adding battery-swapping capability to some of the stations. With that, a Tesla Model S's battery could be replaced in about 90 seconds with a fully-charged battery. Battery swapping would not be free but would cost roughly as much as a full tank of gasoline, Tesla has said. To top of page

Tuesday, October 29, 2013

Top Warren Buffett Companies To Own In Right Now

Benjamin Graham was Warren Buffett's professor and mentor at Columbia Business School. Buffett even named his son Howard Graham Buffett, after Graham. In the preface to Graham's book, "The Intelligent Investor," Buffett calls it "by far the best book about investing ever written."

Serenity's Benjamin Graham Screener applies Graham's 16 financial criteria to 4,500 NYSE and Nasdaq stocks to find Defensive, Enterprising and NCAV grade Graham stocks today.

Last year, we briefly saw a formula that Graham actually warned against, but is widely used as "The Benjamin Graham Formula." Today, we will look in greater depth into how this confusion came about, what Graham actually wrote and finally, some stocks that meet the more complex formulas that Graham actually did recommend.

The Wrong Intrinsic Value Formula

The formula itself is mentioned in "Chapter 11: Security Analysis for the Lay Investor" of Graham's seminal book, "The Intelligent Investor," as:

Value = Current (Normal) Earnings X (8.5 plus twice the expected annual growth rate)

Top Warren Buffett Companies To Own In Right Now: Hoku Corporation(HOKU)

Hoku Corporation operates as a solar energy products and services company primarily in the United States. It focuses on manufacturing polysilicon, a primary material used in the manufacture of photovoltaic (PV) modules; and designing, engineering, and installing turnkey PV systems and related services in Hawaii using solar modules purchased from third-party suppliers. The company was formerly known as Hoku Scientific, Inc. and changed its name to Hoku Corporation in March 2010. Hoku Corporation was incorporated in 2001 and is headquartered in Honolulu, Hawaii.

Top Warren Buffett Companies To Own In Right Now: Clearbridge Energy MLP Total Return Fund Inc (CTR)

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Top 5 Financial Stocks To Own Right Now: InterDigital Inc.(IDCC)

Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.

Advisors' Opinion:
  • [By Alex Planes]

    Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does InterDigital (NASDAQ: IDCC  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

  • [By Evan Niu, CFA]

    What: Shares of InterDigital (NASDAQ: IDCC  ) have gotten crushed today by as much as 20% after the company lost a patent suit against several smartphone makers.

  • [By CRWE]

    InterDigital, Inc. (NASDAQ:IDCC) reported that certain of its subsidiaries have completed the previously announced sale of roughly 1,700 patents and patent applications to Intel Corporation for $375 million in cash.

Top Warren Buffett Companies To Own In Right Now: Cross Timbers Royalty Trust (CRT)

Cross Timbers Royalty Trust operates as an express trust in the United States. The company holds 90% net profits interests in various royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico. It also holds 11.11% nonparticipating royalty interests in nonproducing properties located primarily in Texas and Oklahoma; and 75% net profits working interests in 7 oil-producing properties, including 4 properties in Texas and 3 properties in Oklahoma. Cross Timbers Royalty Trust was founded in 1991 and is based in Dallas, Texas.

Top Warren Buffett Companies To Own In Right Now: Emgold Mining Corporation (EMR.V)

Emgold Mining Corporation engages in the exploration of mineral properties. It explores for gold, tungsten, molybdenum, silver, and other minerals. The company focuses on the permitting and development of the Idaho-Maryland Mine, which is located in Grass Valley, California. Its exploration properties include the Buckskin Rawhide and Koegel Rawhide gold properties in Nevada; and the Stewart and Rozan poly-metallic properties in British Columbia. The company was formerly known as Emperor Gold Corporation and changed its name to Emgold Mining Corporation in August 1997. Emgold Mining Corporation was founded in 1989 and is based in Vancouver, Canada.

Top Warren Buffett Companies To Own In Right Now: Latchways(LTC.L)

Latchways plc engages in the production, distribution, and installation of industrial safety products and related services primarily in Europe and North America. It operates in two segments, Safety Products and Safety Services. The Safety Products segment designs and manufactures fall protection equipment for people working at height. It offers systems for those working at height, including on rooftops, crane rails; and systems for those climbing to or from height, such as ladders, telecom masts, and electricity transmission towers, as well as provides personal protective equipment, guardrails, and walkways. This segment sells its products directly, as well as through independent installers. The Safety Services segment installs and services safety products under the ManSafe name. The company?s products are used in bridges, commercial, electricity pylons, heritage, industrial, towers, office blocks, manufacturing plants, entertainment arenas, public buildings, offshore pla tforms, aerospace, power transmission, utilities, and telecommunications applications. Latchways plc was founded in 1974 and is headquartered in Devizes, the United Kingdom.

Top Warren Buffett Companies To Own In Right Now: Marani Brands Inc (MRIB)

Marani Brands, Inc. (Marani), incorporated on May 30, 2001, is engaged in the importation and sale of alcoholic beverage products, primarily Marani Vodka, its flagship product. The Company�� primary business is the business of Margrit Enterprises International, Inc. (MEI), which is in the distribution of wine and spirit products manufactured in Armenia. Marani Vodka is made from winter wheat harvested in Armenia, distilled three times, aged in oak barrels lined with honey and skimmed dried milk, then filtered 25 times. Bottling of the product occurs at the Eraskh distillery in Armenia. On April 4, 2008, the Company, FFBI Merger Sub Corp. and MEI executed, and on April 7, 2008, the parties closed, a three party Merger Agreement.

The Company purchases all of its products from a single supplier, Eraskh Winery, Ltd., under an exclusive distribution agreement with Eraskh, an Armenian manufacturer of wine and other spirits. The new bottles for Marani Vodka are being manufactured in France by Saver Glass Company and China by Universal Group Co., Ltd. and shipped to Armenia to be filled at Eraskh. The Company�� product is being distributed by Southern Wine & Spirits of America, Inc. (SWS), in Southern California, in conjuction with PLCB Pennsylvania and Nevada. SWS is an alcoholic beverage distributor in the United States. The Company has established additional distributors, such as QV Distributors in Arizona and Wein-Baur in Illinois.

The Company competes with Diageo, Pernod Ricard, Bacardi and Brown-Forman.

Top Warren Buffett Companies To Own In Right Now: Titanium Metals Corporation(TIE)

Titanium Metals Corporation produces and sells titanium melted and mill products. It provides titanium sponge, which is the basic form of titanium metal used in titanium products; melted products, including ingots, electrodes, and slabs that are the result of melting titanium sponge and titanium scrap; mill products, which are forged and rolled from ingot or slab products, comprising billets, bars, plates, sheets, strips, and pipes; and fabrications, such as spools, pipe fittings, manifolds, and vessels, as well as offers titanium scrap and titanium tetrachloride. The company serves commercial aerospace and military, chemical process, oil and gas, consumer, sporting goods, healthcare, automotive and power generation sectors. It distributes its products through its sales force in the United States and Europe, as well as through independent agents and distributors internationally. The company was founded in 1950 and is based in Dallas, Texas.

Sunday, October 27, 2013

Outsourcing Gains

Print FriendlyThe drug development process is dauntingly complex. It often takes years of laboratory work to identify a potentially promising compound, which then must endure at least a few years of preliminary testing before clinical trials are even started.

In all, it typically takes an average of 15 years for a drug to go from lab to market, according to a recent study by Tufts University.

Consequently, drug companies have taken to outsourcing several steps in the process, particularly clinical trials which are often handled by a contract research organization (CRO).

Given their scale and expertise, CROs are able to significantly reduce the cost and the time of trials. Several also have the ability to run concurrent trials to comply with the regulatory requirements of different countries. That, in turn, allows drug companies to focus on their own areas of expertise, namely discovery and marketing.

Quintiles (NYSE: Q) is the world’s largest CRO, with revenue of $4.9 billion last year and $1.3 billion in the most recent quarter, with a market cap of $5.8 billion.

Founded in 1982, Quintiles was taken private in 2003 by a consortium of private equity investors for $1.7 billion after two decades of profitable operation. In May, the consortium cashed out in an initial public offering (IPO) that raised a greater-than-expected $947 million.

The company operates in two basic segments: health care product development and integrated health care services.

Product development handles Phase II–IV clinical trials and doesn’t offer Phase I services. As a result, the company hasn’t taken as hard of a hit, as drug companies better target their initial efforts and are more selective about launching Phase I trials. The division also provides product development consulting and management services and contributes about three-quarters of the company’s revenue.

Integrated h! ealth care offers market development services such as providing contract sale forces in various geographic segments and late phase observational work and generates about a quarter of revenues.

The IPO was well planned, hitting the market just as the CRO industry’s business was beginning to rebound. It has also taken advantage of the shifting payment schemes in the industry, which have been evolving from single contracts for one trial to strategic partnerships, with the CRO providing a growing array of services while bearing a portion of the costs in return for a cut of any profits.

That’s an extremely profitable arrangement for Quintiles, which already has well entrenched relationships with the major drug makers. The company has helped develop more than three quarters of the most successful drugs introduced during the time it was privately held. It’s also worked with all of the top 20 biopharmaceutical companies in each of the last 10 years and has worked with more than 400 companies in all.

Given the company’s sheer size and scale, it’s extremely difficult for smaller CROs to compete for major contracts.

As a result, in its first quarter as a once-again publicly traded company, Quintiles grew revenue by 2 percent while margin shot up to 13.1 percent. The product development segment in particular experienced solid growth, with revenue up 6 percent.

Over the trailing four quarters, net new business grew by $4.8 billion while the company’s total backlog hit $9 billion with an average book-to-bill ratio of 1.21 times.

The total drug development market is valued at $91 billion, but only about 36 percent ($18 billion) of that is currently outsourced. The company believes that a further $49 billion of projects could be up for grabs out of the total market, with growth projected at between 5 percent and 8 percent annually.

As CROs become increasingly critical partners for drug companies, Quintiles is in position to win a large! percenta! ge of that business.

But since it is once again a new business, it’s currently trading at a price-to-earnings growth ratio of 0.9. A reading under 1 implies that you’re buying future growth at a discount. At the same time, analysts forecast strong growth this year and next, with 2013 earnings per share of $2.05 expected. That’s 34.4 percent year-over-year growth, with a further 14.6 percent earnings growth anticipated in 2014.

AEM Spikes - Agnico Eagle Pours Gold

The once-troubled Agnico Eagle Mines Ltd. (AEM) is hitting a new record for gold production in the third quarter at 315,828 ounces, according to the Financial Post, and the company's executives are buying. Here's a third quarter company update and a look at billionaire stakeholders of AEM, a stock that spiked 23.66% over the past five days.

U.S. Industry Sector: Metals & Mining

Highlight: Agnico Eagle Mines Ltd. (AEM)

The current AEM share price is $31.10. The dividend yield is 2.82%.

Down 44% over 12 months, Agnico Eagle Mines Ltd. has a market cap of $5.39 billion, and trades at a P/E of 29.00 and a P/B of 1.60.

Agnico Eagle Mines Ltd. is a gold producer that also explores for silver, copper, zinc, and lead. Agnico's LaRonde mine, located in the Abitibi region of Quebec, estimates reserves of around 4.2 million ounces of gold. The company was incorporated in Canada in 1972.

Agnico Eagle Mines Inc. reported financial results for the third quarter of 2013 with adjusted earnings at $60.5 million and earnings per share at $0.35. Quarterly net income was down year-over-year at $47.3 million. In the same quarter last year, Agnico reported net income of $106.3 million.

Best Low Price Companies For 2014

Guru Stakeholders: As of the second quarter of 2013, Jean-Marie Eveillard of First Eagle Investment Management is the top guru owner with 18,154,432 shares, representing 10.48% of shares outstanding. The firm increased its position by 60.58% in the second quarter of 2013, buying 6,849,198 shares at an average price of $31.59, for a loss of 7.5%.

The five-year trading history shows all losing quarters. Overall, the firm averaged a loss of 26% on 19,035,721 shares bought at an average price of $39.52 per share. The firm also lost 44% on 881,289 shares sold at an average price of $52.49 per share.

Guru Ray Dalio also increased his position in the second quar! ter by 369.18%, buying 81,958 shares at an average price of $31.59 per share, losing 1.6%.

Dalio averaged a loss of 17% on 112,399 shares bought at an average price of $37.55 per share. Selling 8,241 shares at an average price of $44.25 per share, Ray Dalio took a loss of 30%.

His current shares of 104,158 represent 0.06% of shares outstanding.

Guru Steven Cohen was the only guru to sell out his AEM holding in the second quarter of 2103. After five years of mostly double-digit losses, Cohen unloaded 31,816 shares at an average price of $31.59 per share, taking a loss of 1.6%.

Check out the other AEM stakeholders and very active insider trading.

Read more about John Paulson's AEM and Agnico's Goldex mine.

Historical share price, revenue and net income tracking:

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Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.


Friday, October 25, 2013

Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- This market just doesn't know when to quit, Jim Cramer said on "Mad Money" Friday. That's why Cramer's game plan for next week's trading includes a lot of bulls.

On Monday, Cramer said, all eyes will be on Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, and Herbalife (HLF). Cramer said things should be looking up at Apple with margins expanding, while Herbalife remains an activist investor battleground.

Tuesday brings Yelp (YELP), LinkedIn (LNKD) and Gilead Sciences (GILD). Cramer said Yelp needs to raise more money and he'd love to hear of a 3:1 stock split from LinkedIn. He expressed concern for Gilead, however, noting that even good news may be ignored by the markets. Wednesday sees earnings from Facebook (FB), another Action Alerts PLUS holding, along with Starbucks (SBUX) and General Motors (GM). Cramer said he'd take some profits in Facebook, but would be a buyer of Starbucks on weakness and GM at current levels. Then on Thursday, Exxon Mobil (XOM) and First Solar (FSLR) take center stage. Cramer said Exxon will announce nothing special, but First Solar could deliver an upside surprise. Cramer advised buying Noble Energy (NBL), another Action Alerts PLUS holding, on any Exxon weakness. Finally, on Friday Chevron (CVX) reports and Cramer said he'd be a buyer of this oil giant on any weakness. Executive Decision: Chuck Bunch In his "Executive Decision" segment, Cramer spoke with Chuck Bunch, chairman and CEO of PPG (PPG), which recently delivered an earnings beat of 12 cents a share on a 17% rise in revenue. Shares of PPG are up 25% since Cramer last spoke with Bunch in April. Bunch said PPG has been focused on increasing productivity in Europe for the past few years, which has led to record operating earnings in the region. He said any improvement in Europe will now be a huge driver for the company going forward. When asked whether a turn is indeed at hand in Europe, Bunch said that PPG is seeing improvements in the U.K. as well as in Germany, but southern Europe is still slowly turning positive.

Bunch did have positive things to say about his company's finances, noting PPG has a strong balance sheet, lots of cash on hand and is ready for another big acquisition if one comes along. He said the possibility of a share buyback is also an opportunity.

Among the other bright spots for PPG is aerospace, where commercial aviation continues to more than make up for any weakness in military spending. Bunch was also upbeat on PPG's adhesives, sealants and specialty chemical products, all of which were up in the quarter. Executive Decision: Sandy Cutler

In a second "Executive Decision" segment, Cramer spoke with Sandy Cutler, chairman and CEO of Eaton (ETN), an Action Alerts PLUS holding that's up 11% since Cramer last checked in back in August.

Cutler said Eaton delivered a very strong quarter, with sales up 42% and profits up 48%. He said global electronics bookings were up 5% and aerospace bookings were up 6%, making for some encouraging momentum going into 2014 and beyond. Cutler was also bullish on Eaton's purchase of Cooper Industries, saying his company is building on the synergies of that acquisition and will have many more synergies and cost savings in the future. Other positives at Eaton include a pickup in both light residential and large commercial construction and the company's lighting division, which is leading the industry in transitioning to new, energy-efficient LED light bulbs. Cramer said shares of Eaton are not done going higher. Lightning Round In the Lightning Round, Cramer was bullish on MGM Resorts (MGM) and Icahn Enterprises (IEP). Cramer was bearish on First Majestic Silver (AG), Sony (SNE) and Atmel (ATML). Executive Decision: James Volker In a third "Executive Decision" segment, Cramer checked in with James Volker, chairman and CEO of Whiting Petroleum (WLL), which just posted a 20-cents-a-share earnings beat on a stellar 56% rise in revenue, both of which stemmed from a 12% increase in the company's oil and gas production. Volker said Whiting's success stems from keeping an eye on drilling and completion costs. He said the company's drilling times have been cut in half and Whiting can now drill a well 10,000 feet deep and 10,000 feet horizontally in just 11 to 15 days. Additionally, new technology has allowed those wells to be drilled using just a single drill bit, saving even more time from not having to change bits. When asked about the lucrative Niobrara region of Colorado, Volker explained the company has always known there was a lot of oil in the region, but only with the new technologies has it been able to extract it. Using that new technology, Whiting has seen wells in the Niobrara produce twice as much oil in a given area than even the Bakken shale has delivered. With so many positive things happening in the oil patch, Cramer said Whiting will be a winner for years to come No Huddle Offense In his "No Huddle Offense" segment, Cramer reminded viewers the goal of owning stocks is to make money, and money made in Amazon.com (AMZN) is just as legitimate as other stocks. Cramer explained that for some the 24,000% rise in Amazon shares since the company came public in 1997 was somehow not for real. Amazon shares trade at nosebleed valuations, yet the company has yet to turn a profit. But it's the market that determines the value of stocks, Cramer said, not the academics or the skeptics who feel Amazon's valuation just shouldn't be where it is. The bank will accept your deposit, even if the money was made in Amazon and even if the company is more focused on revenue growth than profits, Cramer concluded. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, ETN, FB and NBL. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

Thursday, October 24, 2013

America's Richest (and Poorest) Cities

Median household income in the United States remained relatively unchanged between 2011 and 2012, after falling 7% from the start of the recession. While the nation continues to recover based on other measures, it is not exactly encouraging news.

The nation's largest cities have followed a similar pattern. Income for most of the 366 metropolitan areas measured by the U.S. Census Bureau are flat in the last year, and many are still down significantly compared to 2008. According to the Census Bureau, Brownsville, Texas replaced McAllen, Texas as the country's poorest metro area. San Jose, Calif. took the top spot as the wealthiest metro area, replacing Washington, D.C. 24/7 Wall St. reviewed the metropolitan areas with the highest and lowest median incomes in the U.S.

Click here to see the 10 richest cities

Click here to see the 10 poorest cities

While income levels and poverty rates are not identical measures, low income and high poverty tend to go hand in hand. All 10 of the poorest metropolitan areas have higher percentages of residents living below the poverty rate, compared to the national figure of 15.9%. In Brownsville, the poverty rate is more than 36%, the highest in the nation.

According to Brookings Institution fellow Elizabeth Kneebone, one of the key determinants of income levels in a city are the kinds of jobs available. This includes jobs in technology, finance, high-skill manufacturing and professional services. Indeed, the wealthiest metropolitan areas have among the highest concentrations of these types of jobs.

Nationally, 10.9% of the population is employed in professional services like scientific and management roles. In places like Washington, D.C., and San Jose, it is much closer to 20% of the population. The low-income cities have far fewer residents in these occupations.

At least due in part to this, low income areas tend to have a much smaller percentage of residents with post-secondary education. Nationally, just under 30% of the adult population has at least a bachelor's degree. In poorer places like Dalton, Ga., and Lake Havasu, Ariz., barely one in 10 adults have a bachelor's degree. Conversely, in each of the five wealthiest metro areas, the rate is well over 40%.

For the wealthy cities, Kneebone explained, "It's like a virtuous cycle: wealthier cities high have the industry and the jobs that attract highly educated workers, and if you have a highly educated workforce, you can attract those types of jobs into the region." Residents in the poorest cities face the opposite situation.

In the poorest areas, residents are much more likely to be employed in occupations that are low-skill, low-pay and require only modest education.

Not all agree that self-perpetuating poverty is a problem in these cities. Dr. Richard Burkhauser, a professor of public policy at the Cornell University, explained that people are always able to leave these places. "It's certainly true that if you don't move around, your chance of getting out of poverty is much tougher than if you move." However, a major theme in American history is that generations leave poor places and find jobs elsewhere, explained Burkhauser.

While income has not improved significantly in most of the nation's metropolitan areas, there are exceptions. Notably, San Jose's median household income grew by roughly $5,000 in a single year. Brookings senior research analyst and associate fellow Alec Friedhoff noted that the city's improvement isn't surprising considering it is one of most tech-heavy metro areas in the country. "High tech areas have really bounced back quickly, and San Jose was the one that bounced back the fastest," he noted.

Based on data from the U.S. Census Bureau's 2012 American Community Survey (ACS), 24/7 Wall St. identified the U.S. metropolitan statistical areas (MSAs) with the highest and lowest median household incomes. Based on Census Bureau treatment, median household income for all previous years is adjusted for inflation. We considered poverty, median home value and health insurance from the Census Bureau's ACS. We also reviewed unemployment data provided by the Bureau of Labor Statistics. Unemployment rates listed are full-year averages for 2012 and not monthly rates. All ranks are out of the 366 U.S. metropolitan areas measured in the ACS, except for unemployment rates, which are out of 372 areas measured by the BLS.

These are America's richest (and poorest) cities.

Wednesday, October 23, 2013

Norfolk Southern: I Often Dream of Trains

With the album I Often Dream of Trains, Robyn Hitchcock emerged from what has been described as an artistic slump. Norfolk Southern (NSC) has surged today after handily beating earnings, despite coal’s never-ending slump.

Reuters C’est ne pas une Norfolk Southern train.

Bloomberg has the details:

Net income jumped 20 percent to $482 million, or $1.53 a share, from $402 million, or $1.24 a year earlier, the Norfolk, Virginia-based company said today in a statement. That topped the average estimate of $1.39 from 26 analysts surveyed by Bloomberg.

The increase in so-called merchandise shipping helped Norfolk Southern weather a drop in coal volumes, which have been under pressure as utilities switch to cheaper natural gas. Sand is used by oil and gas explorers for hydraulic fracturing, or fracking, to tap deposits that were previously out of reach.

Cowen’s Jason Seidl calls the report an “all-around beat.” He writes:

5 Best Undervalued Stocks To Invest In Right Now

NSC reported a top-to-bottom beat. This occurred despite a 3% agricultural products volume decline and 2% and 6% declines in coal traffic and revenue per unit, respectively. Intermodal traffic increased 5% via a 7% rise in Domestic (aided by new Crescent Corridor lanes and highway conversions/LTL service) and a 2% increase in International. This strength and the solid merchandise growth demonstrate NSC’s ability to grow the top line, while improving network fluidity, which has been key to delivering stellar earnings in the face of coal weakness.

Shares of Norfolk Southern have gained 5.9% to $85.34–a new 52-week high–and has given a lift to other train companies. CSX Corp. (CSX) has gained 0.6% to $26.25, Kansas City Southern (KSU) has jumped 2.2% to $123.38 and Genesee & Wyoming (GWR)  has advanced 0.8% to $100.31. Union Pacific (UNP) is little changed at $154.68.

Tuesday, October 22, 2013

September Jobs Report: Recovery-Less Recovery

Top 5 Heal Care Stocks To Watch Right Now

Today's employment situation report showed that conditions for the long term unemployed improved in September while still remaining distressed by historic standards.

Workers unemployed 27 weeks or more declined to 4.146 million or 36.9% of all unemployed workers while the median term of unemployment declined to 16.3 weeks and the average stay on unemployment increased to 36.9 weeks.

Looking at the charts below (click for super interactive versions) you can see that today’s sorry situation far exceeds even the conditions seen during the double-dip recessionary period of the early 1980s, long considered by economists to be the worst period of unemployment since the Great Depression.



Source: September Jobs Report: Recovery-Less Recovery

Monday, October 21, 2013

How Inflation Affects Your Income Tax Bill

Inflation is a constant threat to investors, who have to remain vigilant against its steady erosion of their portfolio's purchasing power. Yet with inflation having been under control lately, now's a good time to look at what impact inflation might have on your taxes when prices start to rise more sharply.

In the following video, Fool contributor Dan Caplinger looks at the various ways that inflation affects your taxes. As Dan notes, with tax brackets and deduction and exemption amounts tied to rising prices, earning a constant income actually leads to modest tax declines over the long haul. Yet if your income rises at the same rate as inflation, the net effect is typically a wash. Dan points out, though, that the biggest challenge stock investors face is that capital gains and investment income are taxed without accounting for the impact of inflation. Taxes are something that every investor needs to take into account in choosing investments and assessing returns.

Nearly every American taxpayer faced a big tax increase when 2013 began, with higher payroll taxes affecting every worker and several new taxes on upper-income taxpayers. But you can fight back against higher taxes by using the tips you'll find in the Fool's latest special report. You won't want to miss the easy-to-follow strategies you'll find inside, so to get your completely free copy of the report, click here right now and start saving today!

Saturday, October 19, 2013

Review Of 'The Energy Of Nations' By Jeremy Leggett

Banks and financial sector firms are still held in low repute by public opinion in many countries. Taxpayers and retail investors along with average citizens still distrust stock markets, high frequency trading and resent their banks, brokers and insurance firms due to their heavy losses and bailouts since 2008's crises.

Now, as financial firms seek to restore confidence and trust, a new series of indictments are brought by Jeremy Leggett in The Energy of Nations: Risk Blindness and the Road to Renaissance. Leggett is a former oil executive, geologist, founder of the successful Solarcentury company and its charity SolarAid, and chair of the influential financial think tank Carbon Tracker. Leggett, also a celebrity in his native Britain, contributes to the Financial Times, The Guardian, and is a Fellow at Oxford University's Environmental Change Institute.

Hot Safest Stocks To Invest In 2014

Leggett, as an insider, sat in many British parliamentary meetings, the World Economic Forum, as well as multiple meetings of the International Chamber of Commerce, the International Energy Agency (IEA), the Bank of England and other high-level, closed-door financial meetings on the 2008 crises and continuing aftermath. So Leggett's evidence for his indictments of banks, institutional investors, hedge funds, private equity and VCs are documented in detail - many from his firsthand observations. His further indictments beyond the risk-taking that helped cause the 2008 financial meltdown are against these same short-term financial players together with their long-time clientele of incumbent energy sector companies (utilities, coal, nuclear, petroleum, gas, pipelines, transmission) and compliant bureaucrats and politicians.

Leggett charges with his evidence that these fossil fuel and nuclear interests dominating the world's energy systems deliberately blocked the emergence of the successor technologies for! humanity's evolution to the next energy stage: solar, wind, geothermal, ocean and the efficiency revolution - all part of cleaner, distributed renewable systems. These are now emerging in the global transition to green economies underway, especially accelerated by the threat of climate change and the agreements by 191 countries at Rio +20 in Brazil in 2012.

Leggett cites all his damning evidence: the collusion between bankers, institutional investors, bureaucrats and politicians; the financing of media, advertising, public relations and disinformation produced by intellectual mercenaries in academia, "think thanks" and various front groups in Europe, the USA, Japan, India, Russia and other countries. This makes shocking reading to those unfamiliar with energy industry politics, peeking into the inner memos of BP executives Tony Hayward (of Gulf of Mexico oil spill fame), Fatih Birol and other IEA insiders, Saudi memos leaked by Wikileaks about their real fear of peak oil - and all the attempts to silence this debate as well as the findings of the climate scientists of the UN's IPCC. Secret memos between nuclear executives seeking a "nuclear renaissance" claiming that this hugely expensive, wasteful technology is "clean" and "carbon free" culminate in efforts by Tepco to downplay the Fukishima-Daiichi nuclear plant's meltdowns and continuing woes.

We have tracked similar disinformation, cover-ups and efforts to block or destroy solar, wind and energy-efficiency companies. Our own research shows the efforts of big centralized electrical utilities to downplay solar and wind as "niche" technologies unsuitable as major sources for the green transition. Today, this resistance has turned against them - as solar PV and locally owned wind generators simply bypassed them, causing huge losses as discussed in "How to Lose Half a Trillion Euros," The Economist, October 12, 2013. Today, these old utilities are losing demand, thus their financing! is less ! available for their old business model.

Leggett sees the future of 100% renewables and efficiency-based societies now emerging as we also document in our Green Transition Scoreboard®. He sees Hurricane Sandy as a tipping point, as cities at sea level: New York, Washington, Seattle, Miami, Shanghai, Rotterdam, Tokyo, Manila, Bangkok, London and others are preparing for now-inevitable rising seas due to global warming. Even a David Koch-funded TV series, seen on the US PBS network "Aftermath of a Megastorm," tells of the hundreds of billions these cities must now spend to harden their infrastructure and defenses.

Climate denial is finally giving way to the new realities - but as Leggett points out, the tragedy is that we humans have lost 30 years where we could have prevented all this. I knew this in the 1970s as a policy wonk in Washington and gave similar warnings in my Politics of the Solar Age (1981, 1988). Thus, Leggett's and my indictments of fossilized finance are now shared by millions - including the students of the 350.org movement demanding their universities divest of fossil fuels in their endowments. More realistically, we ask for these fossilized asset managers to merely shift at least 10% of these toxic unburnable fossil "assets" into the growing cleaner, green companies we track in our Green Transition Scoreboard. Mercer recommends a 40% shift - half to mitigate these climate risks and the other half to capitalize on all the new opportunities in green companies. This shift is especially important for pension funds, since they are universal owners.

Leggett also agrees with our research that shale gas, oil and oil from tar sands are last desperate plays by the fossilized sectors. The hype about the US being a new "Saudi Arabia of oil and gas" is now giving way to more realistic assessments that these shale resources will deplete rapidly and, as other industry insiders Art Berman and Bill Powers agree, US shale gas may last for six years, no! t the 100! years advertised. Shale drilling is so toxic and water-intensive, many drought-vulnerable areas like Texas, China and Saudi Arabia will be unable to use it. Texas is now a major user of wind power, and Saudi Arabia is betting its future on solar, while China's new 5-year plan calls for a "circular" economy and major new investments in green sectors.

Leggett and legendary investment "guru" Jeremy Grantham, also a professor at the London School of Economics, have engaged the financial sector with their think thank Carbon Tracker and its meticulous research. Research director James Leaton documents the extent of exposure in pension funds and other institutional portfolios to "proven reserves" of carbon that can never be burned without "cooking" our planet. The evidence of such mis-investment by some 40% of FTSE-listed companies in such "assets" shows how many will soon become liabilities. For full disclosure, we at Ethical Markets joined Carbon Tracker and other companies in letters sent in 2012 to the Bank of England and the European Central Bank, warning of this impending carbon bubble.

This exposure is now widely reported in Bloomberg, the Financial Times and other financial and business media. This "risk-blindness" of financial players is laid out in detail in The Energy of Nations, yet another reason for transforming our global financial casino before it can do even more harm to human societies and our future. Leggett foresees the next crises in inter-related finance and energy sectors sometime before 2015.

For all these reasons, the UN Principles of Responsible Investing (with $34 trillion AUM), of which Ethical Markets is a signatory along with most of the world's forward-looking institutional investors, has tightened its reporting standards making mandatory disclosure of its asset-allocation and investing models. I attended the Executive Session at the UN Global Compact Leaders Summit, New York, September 20, 2013, atten! ded by 12! 00 corporate CEOs. The agenda: how to retrain asset managers and overhaul business school curricula to teach the new ESG accounting standards. Ethical Markets addresses this need with our Principles of Ethical Biomimicry Finance which move the goalposts toward investing modeling toward the success of life's principles for the past 3.8 billion years. When we move beyond economic models to Earth Systems Science as I show in my "Mapping the Global Transition to the Solar Age" (icaew.com), we will not be flying blind - but have more accurate metrics and models. Leggett's The Energy of Nations is the key to the "next big thing" for investors and asset managers worldwide.

Source: Review Of 'The Energy Of Nations' By Jeremy Leggett

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Friday, October 18, 2013

Close to Half of All Americans Own a Tablet or E-reader

In May of 2010 only about 6% of U.S. adults aged 16 or older owned a tablet or e-reader. The iPad from Apple Inc. (NASDAQ: APPL) was introduced to the market in March of the following year, and by September of this year some 43% of America's adult own one or the other of the devices. Tablet ownership now stands at 35% and e-reader ownership stands at 24%.

E-reader ownership was greater than tablet ownership until the end of 2011, when tablets pulled even with e-readers at 10% of all adults. Since then it's really been no contest and tablets have widened their share of the market to the point where 35% of American adults own tablets compared with 24% who own e-readers.

The data comes from the latest update on tablet and e-reader ownership from Pew Research's Internet & American Life Project. Here's a chart from Pew Research:

 PewTabletOwnersOct2013Source: Pew Internet & American Life Project

Some interesting data points from the Pew report:

Men and women own tablets in about equal percentages, but a larger percentage of women own e-readers By age, 16-17 year olds have the largest percentage — 46% — of tablet ownership and the second largest percentage of e-reader ownership, 24% tied with 18-29 year-olds Of households with more than $150,000 in income, 65% own tablets and 38% own e-readers More than twice as many Americans own cell phones as own tablets or e-readers, 91% to 43% 55% of American adults own a smartphone

Thursday, October 17, 2013

Making Extra Money With Your Body - Piece by Piece

Pretty red head girl nervously cutting hair in mirrorAlamy A few years ago -- back during that economic crisis -- I wrote a piece about the most disgusting ways to save money. At the time, the piece was something of a joke, a tongue-in-cheek look at some of the extremes that people could go to to trim expenses and increase income. Not long afterward, the unemployment rate started dropping, the economy's slow recovery chugged along, and suddenlyusing fingernail clippings to scrub your pots or eating rodents seemed a little ... well, extreme. Fast forward five years: Unemployment is still high, wages are depressed, and the benefits of the recovery have largely accrued to the nation's wealthiest citizens. And now, even with the government shutdown over and a debt default dodged -- for now -- it's clear that we can't always count on the social safety net programs of the federal government. To put it mildly, extreme savings techniques are starting to seem a little more relevant. Other commodities' values may rise and fall, but there's one that tends to retain its worth: the human body. And, while it's illegal to sell one's organs in this country, several other parts of you can fetch a pretty penny on the open market. In a recent piece for Salon.com, Victoria Stillwell looked at some of the top methods people are using to raise money. For anyone familiar with "Les Miserables," some of the top items shouldn't seem all that surprising: some of Stillwell's interviewees reported selling their hair, a few considered selling their breast milk, and she noted that thousands of women have looked into selling their eggs. While not as invasive as selling, say, a kidney, all of these are fairly intense ways to make a buck. At the least, they involve collecting breast milk and putting it in the mail; at the most, they involve a series of uncomfortable hormone treatments and painful ovum collection procedures. Even so, all three methods are gaining popularity as it's getting harder and harder to make money through more traditional means. It's unclear how much longer Stillwell's big three methods for raising cash will continue to grow in popularity. Indeed, we should all hope that, before long, they'll seem anachronistic, unnecessary, and, well, a little extreme.

Wednesday, October 16, 2013

Pepsi: Snacks, Not Soda, Boost Shares

Shares of Pepsi (PEP) are gaining today after the company reported better-than-expected earnings as solid snacks trumped sinking soda sales.

AFP

The Wall Street Journal has the details:

The maker of Lay’s potato chips and Pepsi colas posted a flat profit for the quarter, though earnings beat Wall Street estimates. Organic revenue, which excludes the effects of foreign exchange, improved 3.3%, driven by growth in Frito-Lay North America, Latin America foods and in key developing and emerging markets such as China and Brazil.

PepsiCo reported a profit of $1.91 billion, or $1.23, a share, up from $1.9 billion, or $1.21 a share, a year earlier. Excluding items such as mark-to-market losses on commodity hedges and restructuring charges, core earnings totaled $1.24 a share from $1.20 a share. Revenue rose 1.5% to $16.91 billion.

Analysts polled by Thomson Reuters most recently forecast earnings of $1.17 a share on revenue of $16.96 billion.

Citigroup’s Wendy Nicholson calls the report mixed:

While many of PEP's segments showed strength in 3Q (most notably FLNA, LatAm Foods, China, and Brazil), we also saw weaker results in Americas Beverages (which we are used to seeing) and AMEA (which we aren't used to seeing, but slowed in 3Q owing mainly to political unrest in Egypt and an aggressive pricing environment in India). As for PEP's flagship Americas Beverages segment, mgmt acknowledged the category "doesn't have a lot of growth in it" although they do want to maintain rational pricing while also searching for operational improvements to enhance margins. Also notable, PEP stated that its R&D remains on track to release a new product in 2014 (likely involving natural sweeteners and possibly new flavoring agents).

Shares of PepsiCo have gained 1.6% to $81.89, while Coca-Cola (KO), which released earnings yesterday, has risen 0.6% to $37.88 and Dr. Pepper Snapple (DPS) has advanced 2.1% to $44.68.

Tuesday, October 15, 2013

More Greeks

Republicans play financial Russian Roulette over a possible default and the market pukes. Republicans start to act like responsible politicians and the market soars. Pretty obvious connection, wouldn't you say?

And, enough of that on this Friday morning. Today I'll finish with the last of the standard measures of option risk, commonly known as the Greeks.

Theta: Theta is the option's sensitivity to time. It is a direct measure of time decay, giving us the dollar decay per day. This amount increases rapidly, at least in terms of a percentage of the value of the option, as the option approaches expiration. The greatest loss to time decay is in the last month of the options life. Having a total positive Theta means time decay works in your favor while a negative Theta means the clock is working against you. The total Theta of your position theoretically indicates the amount of money you make or lose in time decay per day.

Vega:  Vega is the option's sensitivity to changes in implied volatility. A rise in implied volatility is a rise in option premiums, and so will increase the value of long calls and long puts. Vega increases with each expiration further out in time.
 

Rho:  Rho is the option's sensitivity to changes in interest rates. The total Rho in your position indicates your total interest rate exposure. This was a much more important indicator back in the days of double digit interest rates.

As a market-maker I always tried to have a near neutral Delta, kept my Gamma small and wanted a positive Theta so time was on my side. I spread my Vega by being short the near term options and long the farther out. Rho only mattered i





 

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

Top 5 Penny Companies To Buy Right Now

Posted-In: Markets

Originally posted here...

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular iPad 5 Rumor Roundup Official iPad Mini And iPad 4 Price Cuts Coming From Apple Rumor: Apple Selects iWatch, 12-Inch iPad Supplier Low-Cost iMac and a Scary Chart Top Apple's Weekend News Earnings Expectations For The Week Of October 14: Financials, Tech and Consumer Goods Another Acquisition for Yahoo! (YHOO) Related Articles () TheStreetSweeper Says Warned Investors about Coronado Biosciences Months Ago Savient Pharmaceuticals Files Voluntary Chapter 11 Proceeding EPO Issues Decision on Universal Display's Iridium L2MX Composition Patent Benzinga's M&A Chatter for Monday October 14, 2013: Merck, Endocyte Report Vintafolide-PLD Generaly Well Tolerated, Showed Median PFS of Five Months Portola Pharma Issues Results for First Phase 2 Trial Showing Extended Duration Infusion with PRT4445 View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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Saturday, October 12, 2013

Yum!รข€™s Posts Poor Quarter Results, but Expects a Rebound in 2014

Yum! Brands (YUM), the parent of KFC, reported disappointing third quarter results on Tues. as its China sales are recovering at a slower pace than expected. The outlook of the last quarter of the year is also not very optimistic, but company executives are confident that 2014 would be a "bounce-back year" for the fast food giant's China division. Poor sales results led the company to lower its full year profit outlook. Let's check out some of the important numbers.

A look at the performance
Yum!'s net income for the third quarter plunged 68% to $152 million from $471 million a year ago. The company's revenue fell 3.47 billion from $3.57 billion in the last quarter. Yum!'s difficulty started last Dec., after the food regulatory agency conducted a poultry test and concluded that certain chicken samples contained excess antibiotic level. Same store sales plunged immediately since then and just as it started showing positive signs, the bird flu outbreak destroyed Chinese appetite for Yum's KFC.

However, several industry observers feel that the chicken issue is not the sole reason for the quick service restaurant chain's China woes. The food industry grew in China mainly because of the increasing disposable income of the middle class. However, now China's middle income group has restricted their spending after the government's strict measures. Additionally, KFC and other Western-based corporations including McDonald's (MCD) and Burger King (BKW) are facing tremendous competition from local eateries of the economy.

Yum!'s comparable store sales declined 11% for KFC during the quarter. In contrast Pizza Hut Casual Dining saw 6% growth. Since Yum! derives over 50% of its revenue from the mainland, the company has undertaken several marketing campaigns to trigger faster sales recovery. The main idea is to win back consumer confidence so that KFC footfall moves up to the level prior to the chicken issue. According to Reuters, a company spokesperson Jonathan Blum! said that the image of KFC has improved since December, but it is still to return to the normal level.

Looking ahead
Yum! is hopeful about the coming year and expects things to rebound for the company. It has plans for all its divisions. It proposes to introduce a breakfast menu at Taco Bell in its US division. As far as the international division is concerned, that includes China and India, Yum! is considering to increase its focus in the emerging markets which show potential for growth. This will help the company to increase its consumer base and diversify stake in different economies with growth prospects.

China undoubtedly plays a huge role in determining Yum!'s overall growth in the current year and in the future too. However, it will take some more time for the people to come out of the notion that KFC's chicken is safe to have. I am still bullish on the stock and consider it to have great potential. It is just a matter of time. Yum! has faced similar issues in China in the past and managed it brilliantly. I believe it has grown enough strong to come out of the current issues successfully again.

Thursday, October 10, 2013

Top Gold Stocks To Invest In 2014

Statoil (NYSE: STO  ) has struck oil again -- this time, and again, the black gold resides off the coast of Newfoundland.

Norway's Statoil ASA announced Wednesday that its Harpoon Prospect, 500 kilometers off the coast of St. John's, Newfoundland, and operating in water 1,100 meters deep, has found a deposit of light, high-quality oil in the Flemish Pass Basin.

Commenting on the discovery, Statoil Senior Vice President for�North America Erik Finnstrom observed: "While it is still too early to determine Harpoon's resource potential at this time, this is very encouraging for the area and especially for the�Bay du Nord�well planned for later this year." Finnstrom added that Statoil plans to conduct additional "appraisal drilling" to get a better handle on the size of the oil field it is exploring.

Statoil owns a 65% interest in the Harpoon Prospect, with the remainder owned by Canada's Husky Energy (NASDAQOTH: HUSKF  ) .

Top Gold Stocks To Invest In 2014: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Top Gold Stocks To Invest In 2014: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Eric Volkman]

    Goldcorp (NYSE: GG  ) is continuing to turn its gold into investor cash. The company has declared its latest monthly dividend, which is to be $0.05 per share paid on July 26 to shareholders of record as of July 18. That amount keeps Goldcorp's payout in line with the six preceding monthly payments of 2013. Before that, the company paid $0.045 per share every month for over a year.

  • [By Itinerant]

    Recently pressure has mounted to update this cost reporting standard in order to improve transparent accounting for all costs associated with production. Or as Chuck Jeannes, CEO of Goldcorp (GG), puts it:

Top 5 Value Stocks To Watch Right Now: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Markus Aarnio]

    Other gold miners that have seen intensive insider buying during the past four months include St. Andrew Goldfields (STADF.PK), Continental Gold (CGOOF.PK), Kinross (KGC) and Agnico-Eagle Mines (AEM).

  • [By Holly LaFon]

    He increased his holdings in gold companies in the fourth quarter accordingly. Gold stocks he found attractive in the fourth quarter are: Novagold Resources (NG), Randgold Resources (GOLD), Iamgold Corp. (IAG), Barrick Gold Corp. (ABX), Agnico Eagle (AEM) and International Tower Hill (THM).

Top Gold Stocks To Invest In 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Doug Ehrman]

    In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver (NASDAQ: PAAS  ) , for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic (NYSE: AG  ) reported strong revenue growth and a small bump in profits, sending the stock higher since the announcement. First Majestic reported increased cash costs and tightening margins, largely driven by lower silver prices. Each of these companies faces pressure from increasing production costs and environmental concerns.

Top Gold Stocks To Invest In 2014: Claude Resources Inc.(CGR)

Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.

Top Gold Stocks To Invest In 2014: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Ben Levisohn]

    Even bad news has failed to dent the rise in gold stocks today. NewGold (NGD), for instance, has gained 1.8% to $7.49 despite the fact that the wall of one of its mines collapsed. The Wall Street Journal has the details:

Top Gold Stocks To Invest In 2014: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Michael Blair]

    IAMGOLD (IAG) is one of my favorite gold stocks principally because it is a relatively high cost producer with long lived mines. That paradox arises since high cost producers have the most volatility when gold prices change. If they are operating close to break even, a relatively small rise in gold prices makes them quite profitable. Conversely, when prices fall they bleed all over the floor.

  • [By Rich Duprey]

    IAMGOLD (NYSE: IAG  ) still has an interest in the�Quimsacocha gold mine it sold to INV Metals last year, which has an indicated mineral resource estimated at 3.3 million ounces gold. China's�Ecuacorriente is also pursing a major copper project at Panantza-San Carlos, and International Minerals will seek out gold and silver at Rio Blanco.

  • [By Eric Volkman]

    IAMGOLD (NYSE: IAG  ) might specialize in a precious metal, but it's continuing to pay its dividend in hard currency. The company has declared its latest semi-annual distribution at $0.125 per share of its common stock.

  • [By Namitha Jagadeesh]

    HSBC Holdings Plc (HSBA), Europe�� largest bank, slid 2.1 percent. International Consolidated Airlines Group SA (IAG) declined 2 percent as it canceled some of its flights following a disruption caused by one of its planes at Heathrow airport. Next Plc (NXT) retreated 2.4 percent as Morgan Stanley cut its recommendation on the shares.

Top Gold Stocks To Invest In 2014: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:
  • [By Sally Jones]

    Anglogold Ashanti Limited (AU)

    Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10.

  • [By Dan Caplinger]

    But even bigger damage came from gold-mining stocks. AngloGold Ashanti (NYSE: AU  ) has lost almost 60% of its value in 2013, with the drop in gold prices having an outsized impact on the gold miner's prospects. AngloGold has also suffered from investors moving away from emerging markets like South Africa in favor of U.S. stocks, as fears of the Federal Reserve's exit from its quantitative easing program have reduced overall risk tolerance among many investors.

Wednesday, October 9, 2013

Wall Street dragged lower on shutdown jitters

Investors on Wall Street succumbed Wednesday to fears over the partial shutdown of the U.S. government that remains in effect.

An 8:15 p.m. ET report showing fewer private job gains than expected didn't help.

Ahead of the opening bell, Dow Jones industrial average index futures fell 0.5%, Standard & Poor's 500 index futures declined 0.7% and Nasdaq index futures fell 0.5%.

JOBS: Private sector gains 166,000

ASK MATT: Are Dow stocks dogs?

"Everyone is very cautious about how to react to the U.S. shutdown," said Andrew Sullivan at Kim Eng Securities in Hong Kong. "There's a lot for people to worry about."

The Dow rose 0.4% Tuesday to close at 15,191.70. The S&P 500 gained 0.8% to 1,695. The Nasdaq rose 46.50 points, or 1.2%, to 3,817.98.

TUESDAY: Stocks shrug off shutdown, close higher

Benchmark oil for November delivery was down 52 cents to $101.52 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 29 cents to close at $102.04 on Tuesday.

In Asia, Japan's Nikkei 225 index saw steep declines, falling over 2% to 14,170.49.

European markets fell across the board by around 1%, although Italy's FTSE MIB index advanced ahead of a confidence vote in Italy.

A gauge of U.S. private-sector employment will be released later Wednesday. This may be more closely watched than usual because the Labor Department may not issue its big monthly jobs report on Friday because of the government shutdown.

Contributing: Associated Press

Tuesday, October 8, 2013

A Money-Savvy Daughter Looks Back on the Lessons That Stuck

Children selling lemonade in front of their homeAlamy When I was growing up, no one ever called me a princess. My parents told me I was smart, funny, powerful and kind, but never "princess." Mom handed me a Nerf gun and dad taught me how to shoot a layup. I'd wander into my parent's room to see my father ironing his suit pants for work while my mother sat at her desk paying the bills. There were no bedtime stories about helpless girls who needed to be rescued. Instead, there were lessons about how I could rescue myself through education and financial literacy. The first lesson came in the summer of 1996, when my father took money right out of my 7-year-old hands. My jaw dropped in indignation and my Pocahontas sneakers stamped the ground. I demanded he hand over my fairly earned cash. After all, I had been the one who woke up at 6 a.m. to set up my Fisher-Price table to sell Krispy Kreme doughnuts. Embracing the entrepreneurial spirit young, I had seized upon my mother's yard sale as the perfect opportunity to venture into the business world and hone my sales technique. My 4-year-old sister and I sold doughnuts at the marked-up price of 50 cents apiece to the bargain hunters while my mom peddled our old goods. I felt I'd earned my $18. With a chuckle over my childish rage, my dad told me I owed my sister $2 in wages for helping me sell those doughnuts. Then, he took his cut. As he counted out the quarters I owed him, he explained that he had staked me the money to buy the doughnuts. Because he made the initial investment, I owed him his money back, but I could keep the rest. This, he explained, was my "net profit." That simple lesson become the cornerstone of my relationship with money -- though it was hardly the last. My father continued my fiscal education with various "sneak attacks," notably requiring me to pay for 50 percent of my college education, which cultivated in me a deep appreciation of the value of money. But it worked: When I graduated college, I felt empowered instead of intimidated at the prospect of handling my own financial affairs. At no point did I feel I needed to get married in order to stay afloat financially. Never did I wish for a Prince Charming to ride up on horseback to my little New York City apartment and whisk me away. (OK, so maybe that would be nice -- but I don't Prince Charming.) Unfortunately, my story is far from the norm. Around the world, young women (and men) are being raised without much financial education, and only realizing how badly they need it after they've accumulated crushing debt, taken out too many loans, misused credit cards or missed paying bills. And even in our modern, egalitarian era, some young women are still being raised with the idea that they should rely on a husband to provide them with a financially sound future. According to Plan's International's "Because I am a Girl" campaign, each extra year a girl spends in secondary education increases her salary by between 15 percent and 25 percent. But encouraging girls to finish high school, go to college, and find good jobs is not enough. It's equally important that they gain a level of fiscal understanding. These young women need to feel confident handling their paychecks, saving for their futures, and stepping into the role of breadwinner for their families. It's time parents and educators placed the same level of importance on financial literacy as we do an understanding of literature, math and science. Both boys and girls should be raised to feel comfortable asking questions about money, beyond "how much is allowance?" Just as we're now coming around to teaching young men that the tasks of raising children aren't "women's work," we need to be sure we're not teaching girls to, one day, just rely on their husbands to handle the money. Just imagine: We could live in a society where teens made informed decisions about student loans, young adults used their credit cards for responsible purchases they could pay off, and the awful cycle of unnecessary debt was just a parable told to children at bedtime.

Monday, October 7, 2013

A timely reminder: Sign up for online Social Security account

I was pleased to receive an automatic e-mail alert from the Social Security Administration Monday urging me to review my Social Security statement online.

Just like in the old days of paper statements when an annual benefits estimate would arrive in the mail three months before an individual's birthday, now SSA sends an e-mail to prompt people to review and verify the information.

I thought I would take the opportunity to remind advisers that they and their clients must set up a personalized account at socialsecurity.gov/myaccount to access these critical benefit estimates.

As everyone should know by now, SSA no longer mails annual benefits estimate statements to workers. As a result, the government saves about $70 million per year in printing and mailing costs.

The only way to access the information, which includes estimated retirement, disability and survivor benefit at various ages, as well as annual earnings statements, is to set up an on line account.

I set up my online account in January. It was easy to do.

I had to supply my Social Security number, date of birth, mailing address and a valid e-mail address. Anyone 18 or older can set up an online account.

In an effort to thwart identity theft, individuals must also be able to answer questions that only they are likely to know that matches information on file with SSA and in their credit report.

For example, when I went through the account set-up process, I was asked questions related to former employers and my previous residences. These are known as "out-of-the-wallet" questions.

The idea is to protect people by asking questions that only they — not some fraudster who stole a wallet — could answer.

Unfortunately, not everyone's online experience may go as smoothly as mine. Those who can't answer the security question can request that a paper statement be mailed to them, or they can visit their local Social Security office and present a government-issue ID in order to create an account and gain access to the online version of the statement.

Once an online Social Security account is set up, the information is protected with a unique user name and password.

Individuals can save and print the documents, something that advisers should encourage clients to do before their next financial review. Many of them may not realize that their statements no long will arrive in the mail.

Alternative

Friday, October 4, 2013

Cook & Bynum Fund: An Overlooked Gem

If you just gave Cook & Bynum Fund (COBYX) a quick once-over, you probably wouldn't even consider investing in it. Since its inception in mid 2009 through July 8, the fund returned an annualized 14.6%. Standard & Poor's 500-stock index returned an annualized 17.9% over the same period.

See Also: High-Quality Stocks Beat the Market

Morningstar says the fund charges an annual expense ratio of 1.88%. At first blush, it's easy to see why the fund has attracted only $116.5 million.

End of story? Not if you love to dig into funds. First, that expense ratio. It's out of date. Expenses are still high at 1.49%, but that's par for the course in such a small fund.

Now look at the three-year Sharpe ratio, a measure of risk-adjusted return. It's 2.0, which is extremely high for a stock fund. A big reason for that high Sharpe ratio is that the fund has been only about half as volatile as the S&P 500 over the past three years.

Shall we dig a little deeper? Turns out that managers Richard Cook and J. Dowe Bynum, who are based in Birmingham, Ala., have invested money for private clients since 2001. Since then through March 31, their annualized return (after fees) was 9.4% — more than double the S&P's 4.3%. Not only that, but the returns were achieved with average cash levels of about 25% of assets. The mutual fund currently has 40% of its assets in cash.

All this sounded so intriguing that I decided I needed to learn more. So I called up Cook. He and Bynum, both 35, have been close friends since they were children and have been fascinated with the stock market since Cook's father gave his son five shares each of five stocks at age 8. Their fifth-grade teacher enrolled the boys in the high school Stock Market Game, which teaches students about economics and finance in part by giving them hypothetical cash to invest. The precocious Cook and Bynum won the game's annual national investing contest.

The pair have been investing for a living since college. They manage a total of $275 million, including what's in the fund. "Picking stocks is what we're passionate about," Cook says. The firm has no analysts. A third partner handles everything but the stock picking.

This is not your ordinary stock fund. The fund owns just seven stocks — one of the most concentrated portfolios I've ever seen. And two-thirds of the stock money is in consumer stocks.

Again, that's off-putting at first glance. But when you look at the holdings, they're just what you'd want in a focused fund. The managers have 15% of assets in Microsoft (MSFT), 13% in Wal-Mart Stores (WMT), 11% in Coca-Cola (KO), 7% in Arca Continental and 5% in Berkshire Hathaway's Class B shares (BRK.B). (Arca is the second-largest Coke bottler in Mexico.) British food retailer Tesco (TSCO) and Procter & Gamble (PG) round out the list of stock holdings, with 5% and 4% of assets, respectively.

/p>All these companies seem solid enough to survive virtually any economic catastrophe and, in my view, sell at relatively modest valuations. They have great brands, boast pristine balance sheets and seem to have sustainable competitive advantages over their rivals.

Hot Low Price Companies For 2014

Cook says he and Bynum prefer high-quality businesses. Before they buy a stock, they project how they think the company will perform over the next 12 to 15 years. "We know our accuracy won't be very good," Cook says. "But when you pay 15 times earnings for a stock, you're implicitly saying you know where a company will be in 15 years." On average, they own a stock for about four years.

Cook and Bynum haven't always focused on quality stocks. When they launched their business, they liked small U.S. companies. Until two years ago, when valuations got too rich for them, they owned a lot of emerging-markets stocks, mainly in Mexico.

The pair loves to kick the tires. "With Microsoft, that means reading bleeding-edge tech blogs and trying out beta products. With Coke, that means driving across Argentina, looking at how Coke products — and competitors — are displayed in gas stations," Cook says. Nothing wrong with that.

Cook knows that stock picking can be a humbling business. "It's important to rub your noses in your mistakes," he says. "That's how you learn."

The 40% cash level, he says, isn't a product of big-picture forecasting. When he and Bynum look at a company, they buy only if they think they can make 10% annually on it. If a stock doesn't exceed that hurdle, they don't buy. They're not finding much to buy in today's market.

This fund, in my view, shouldn't be the main course for anyone's investments. Sturdy as the holdings are, there are still only seven of them. And there's only so much cash that I want to pay 1.49% a year to own. Cash was a great asset during many of the firm's early years, but it has been a huge drag on returns since the stock market bottomed in March 2009. As a low-risk side dish, however, Cook & Bynum Fund has real appeal.

Steven T. Goldberg is an investment adviser in the Washington, D.C. area.



Thursday, October 3, 2013

Top Insider Trades: S GM NRGM HAFC

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By Jonathan Moreland, founder of Insider Insights and author of Profit From Legal Insider Trading.

NEW YORK (TheStreet) -- It is a victory for common sense. Tracking the trading behavior of company executives, directors and large shareholders in the stocks of firms they're registered in as "insiders" has proven to be profitable, according to both academic studies and (more importantly) the experience of professional investors.

Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Thursday, September 12, 2013, as ranked by dollar value. Please note, however, that these are only factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant. At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing. So use these regular Top Insider Trades columns as the initial research tools they are meant to be, and click the links in the tables to analyze a company's or insider's full insider history. Also feel free to contact us with any questions on our proprietary insider data, and how it is best analyzed.

Sprint (S) Softbank BO 6,581,652 42,188,388
Kodak (KODK) Karfunkel George DIR 3,434,922