Saturday, December 24, 2011

LivingSocial Expands Markets Globally, But Can it Compete with Groupon?

LivingSocial now serves 627 markets globally.

The Groupon (NASDAQ: GRPN) competitor has announced that it has added 15 new markets to its roster, with eight going toward LivingSocial's family deals, and seven going toward the daily deals:

New locations for family deals:

  • Ann Arbor, Mich.
  • Buckhead, Ga.
  • Harrisburg, Pa.
  • Napa/Sonoma, Calif.
  • Northern Denver
  • Ocean/Monmouth, N.J.
  • Olympia, Wash.
  • Southern New Hampshire

New locations for daily deals:

  • Asheville, N.C.
  • Central Illinois
  • New Haven, Conn.
  • Ogden, Utah
  • Fraser Valley, British Columbia
  • Kingston, Ontario
  • Saskatoon, Saskatchewan

The company didn't have much else to say on the matter, but one thing is clear: LivingSocial has become a prominent competitor to the daily deals leader, Groupon.

Follow me @LouisBedigian


Get our bullish and bearish ideas delivered to your inbox weekly.

Don't worry. You will stay on this page.

ACTION ITEMS:

Bullish:

LivingSocial is partially owned by one of the biggest names in online retail, which provide investors with an opportunity to:

  • Go long Amazon (NASDAQ: AMZN), a company that is constantly diversifying its product portfolio with fresh offerings.
Bearish:

If daily deals sites continue to rise, it could put a damper on:

  • Traditional retailers like Wal-Mart (NYSE: WMT) and Target (NYSE: TGT), which rely on traditional deals (and crazy Black Friday sales) to drive revenue.
  • Online-only venues like Amazon, eBay (NASDAQ: EBAY), and Overstock.com (NASDAQ: OSTK).
Full Disclosure:

Lightbank, the technology investment vehicle from Groupon co-founders Brad Keywell and Eric Lefkofsky, is one of Benzinga's investors.

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Related Articles:

The New Pfizer - 6 Drug Companies With Bullish Short Trends

McDonald's is on top, and Bank of America is on bottom

Tags: 2012 Agriculture Stocks ,BMY ,ECYT ,IPXL ,PFE ,RIGL ,Top Performing Stocks 2012 ,Top Performing Stocks To Buy ,WLP ,Best China Stocks 2012

InfoLogix Inc. (IFLG) Skyrockets 100% on Partnership with Wavelink

Shares of InfoLogix Inc. (NASDAQ: IFLG) jumped more than 100% in today's trading. The small cap stock reached a high of $6.85 in today's trading and at last check was up by 89.33% to $5.68, with volume up from daily average of 18,000 to 576,591. Hatboro, Pennsylvania-based InfoLogix Inc. provides enterprise mobility solutions for the healthcare and commercial industries.

InfoLogix today announced a strategic partnership with Wavelink Corp. to provide voice enabled mobile solutions for SAP customers. The strategic partnership between the two companies will enable customers to have new options for interacting with their SAP applications. Brian M. Thorn, senior vice president at InfoLogix, said the company has invested considerable amount of time researching voice solutions for SAP supply chain execution applications and found Wavelink Speakeasy to be the best solution in terms of functionality and ease of use. This announcement gave a boost to the small-cap stock, giving it a more than 100% boost.

In its latest 10K filing, InfoLogix mentions that on January 5, 2010, it affected a 1 for 25 reverse stock split of its issued and outstanding shares of common stock. The company also highlights some of the risks it faces. The company suffered significant losses from 2006 through 2009 and at the end of 2009 had $1,018 in cash and cash equivalents. The company faces substantial liquidity requirements related to the repayment of a seller note that will be due on September 30, 2010. The company will require additional funding as it says that it does not expect to generate sufficient funds from its cash flows from operations. The liquidity crunch puts the company's existence at risk and creates a lot of uncertainty around the stock.

The company also highlights in its 10K that its shareholders do not have the same protection available, compared with shareholders of other NASDAQ listed companies. This is because; the com! pany is majority owned by one single shareholder, HTI and is a "controlled company."

The small cap stock has a 52-week range of $1.63-$15.25, which shows extreme volatility. It has a bet of 3.63, which again highlights high volatility. Currently, the stock is trading above its 50-day and below its 200-day moving averages.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks,hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or "penny stock" market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Related Articles:

Is Frontier Communications the Right Stock to Retire With?

10 Best Funds for Long-Term Investors

Tags: CTL ,FTR ,LEAP ,PCS  ,Top Casino Stocks ,Top Stocks To Hold ,Top Stocks To Hold 2012 ,Top Stocks To Hold In 2012 ,VZ ,WIN ,Best China Stocks 2012

Wal-Mart (WMT) Goes Back To Selling Shirts Online

According to several media reports, Wal-Mart (WMT) has shut its movie download business. It blames the fact that Hewlett-Packard (HPQ) is discontinuing the technology platform which makes the service work. It is hard to believe that some other technology company could not do that.

What Wal-Mart probably discovered is that an e-commerce site, no matter how large, may not be able to sell consumers shirts, garden tools, and sporting goods along with downloads of the latest movies and TV shows.

Wal-Mart was early to the digital video download business. Walmart.com is one of the three or four largest e-commerce websites in the country. It had 42.5 million unique visitors in November, according to comScore. But, it would appear that the digital download crowd is going to Amazon (AMZN), Apple (AAPL), and Netflix (NFLX) for their entertainment. Since those brands are associated with media products, that would make sense.

There is another, more troubling explanation. Wal-Mart is the country’s largest seller of DVDs. It should have some foothold in selling video online. Obviously, that has not worked.

Wal-Mart’s move may be the earliest indication that offering video online is not a viable business yet. And, that is bad news for the companies still in the business.

Douglas A. McIntyre

Related Articles:

A Hidden Reason That Westlake Chemical's Earnings Are Outstanding

Stock Options: The Profit Strategy Behind an Oft-Overlooked Investment Tool

Tags: DOW ,Good Stocks To Buy ,Good Stocks To Invest In ,Good Stocks To Invest In 2012 ,Japan Stocks ,LYB ,PPG ,WLK ,Best China Stocks 2012

AOL Responds To Investor Concern

AOL Inc. (NYSE:AOL) has responded to concerns raised by one of itsmajor stockholders Starboard Value LP over the company's investment inthe Display business.
?
In a letter to AOL, Starboard expressedthat based on its detailed research and analysis, AOL is deeplyundervalued and that substantial and actionable opportunities exist tosignificantly enhance shareholder value. Starboard believes thisvaluation discrepancy is primarily due to the company's massiveoperating losses in its Display business, as well as continued concernover further acquisitions and investments into money-losing growthinitiatives like Patch.

"It appears that AOL may be currently losing in excess of $500million per year in its Display business alone, masking what otherwisewould be a highly profitable company," Starboard stated.

"While we understand and appreciate that the Company's Accessbusiness is in secular decline, we do not believe this serves asjustification for continuing to pursue a money-losing growth strategy inthe Display business that has repeatedly failed to meet expectationsand drained corporate resources," said Starboard Value CEO JeffreySmith.

"AOL shareholders have already suffered substantial losses due to thepursuit of the failing Display strategy and immediate action must betaken to address this issue as the Company continues to invest goodmoney after bad without an acceptable return on investment," Smithadded.?

Starboard Value owns about 4.5 percent of AOL.

In response to the Starboard letter, AOL issued the followingstatement: "Over the last two years AOL has significantly reduced costs,sold non-core assets, made significant investments for our future, andalso recently repurchased over 10% of outstanding shares....we willcontinue to aggressively execute on our strategy in 2012 as we continuethe turnaround of AOL."

AOL is up 1.35 percent to $15.01 at 1.48 pm EST.?

{$end}

Related Articles:

Tokyo-Osaka Exchange Merger Sparks Campaign to Woo More Overseas Investors

When Europe Says Jump, U.S. Market Says “How High?”

Tags: JSDA ,Top Silver Stocks ,Top Silver Stocks To Invest In ,Top Stocks For 2012 ,Top Stocks To Invest In ,Best China Stocks 2012

Friday, December 23, 2011

Deutsche Bank Reiterates Accenture (ACN) At 'Buy'

Deutsche Bank (DB) reiterated its "Buy" rating and price target of $71 on Accenture Plc (NYSE:ACN), saying the company's conservative guidance sets the stage for potential upside.

"ACN reported strong rev of $7.1bn (17% Y/Y, 14% CC) and EPS of $0.96, handily beating our ests of $6.9bn (13.5% Y/Y) and $0.93," DB analyst Bryan Keane said in a note.

"Although ACN's growth and pipeline remains robust (not seeing any material weakness), ACN guided conservatively given the macro backdrop, reiterating 7-10% CC rev growth and lowering its FY12 EPS range by $0.04 due to a 1% f/x headwind. Despite the f/x hit, we are maintaining our FY12 and FY13 EPS," Keane wrote.?

On Friday, ACN is down 4.99 percent to $53.30. The stock has been trading in the 52-week range between $46.00 and $63.66.

{$end}

Related Articles:

Does NVE Measure Up?

Bed Bath & Beyond Inc. Third Quarter Earnings Sneak Peek

Tags: 2012 Best Stocks ,ADI ,AVGO ,Best Stocks For 2012 ,Best Stocks To Own ,Best Stocks To Own 2012 ,NVEC ,TXN ,Best China Stocks 2012

Google: FTC May Oppose AdMob Deal; Apple Readies Ad Platform

The FTC may oppose Google‘s (GOOG) proposed $750 million acquisition of mobile ad seller AdMob on antitrust grounds, the Wall Street Journal reports.

The WSJ says the Commission has assembled an internal litigation team to prepare for a potential move to block the deal; the piece contends that the FTC has sent letters to AdMob rivals seeking sworn statements on the potential impact of the purchase.

The story says the FTC also has briefed Congress on its concerns about the deal.

On the other hand, the piece notes that the FTC has not yet reached a definitive decision on how to rule.

Meanwhile, AllThingsD reports that Apple on Thursday is going to unveil its own mobile ad platform as part of a planned “sneak peak” at the next version of the iPhone OS. In January, Apple agreed to acquire mobile ad platform Quattro Wireless for $275 million.

Related Articles:

Continued copper demand looks like a sure thing

Emerging-Market Stocks Post Weekly Gain on Boost From U.S. Data

Tags: 2012 Energy Stocks ,3 Pros and 3 Cons ,Commodities ,Energy Stocks ,Good Stocks To Invest In ,Good Stocks To Own In 2012 ,Best China Stocks 2012

Best Buy's results serve as a holiday warning

NEW YORK (CNNMoney) -- Electronics retailer Best Buy reported a large drop in quarterly earnings Tuesday, as weak sales in the months leading up to Thanksgiving cast a shadow on the all-important holiday season.

Shares of Best Buy (BBY, Fortune 500) tumbled $3.23, or 11.6%, to $24.83 in early trading. Shares are now down more than 27% since the start of the year. Investors fretted the company's future even though Best Buy confirmed its full fiscal-year earnings guidance.

Best Buy posted operating income of $328 million, or 47 cents a share, in the period ended Nov. 26, down 13% from a year earlier. Analysts surveyed by Thomson Reuters had forecast earnings of 51 cents a share.

While revenue was up 2%, higher expenses, including $137 million in restructuring charges, drove down its profit margin to 2.7% from 3.2% a year earlier. Hurting, in particular, was the promotion of free shipping on online orders.

"The shift online with free shipping was a significant negative to the gross margin," said David Strasser, a retail analyst with Janney Capital Markets, in a note to clients Tuesday. He said the lower margins are likely to be seen at other retailers as consumers shift more of their shopping online.

Domestic stores open a year or more reported sales growth of only 1%, a closely watched retail measure known as same-store sales. It was able to post that gain only with the help of mobile phone sales, which were up 9%.

The report came as the Commerce Department reported much weaker-than-expected overall retail sales, even as electronics and appliance stores reported a better gain than most other retailers.

Strasser said he wasn't particularly worried about either the sales results from Best Buy or in the Commerce Department reading.

"The consumer is conditioned to wait for holidays to shop," he said. "The weaker November retail sales result shows that the strong Black Friday weekend was offset by weaker sales industry wide in the week! s leadin g up to the holiday weekend." 

Related Articles:

Poniard Pharmaceuticals Announces Licensing Agreement for Focal Adhesion Kinase Technology

Intel: Bulls Rush to Defense; Sales Deferred or Sales Lost?

Tags: ALLOZYNE ,biopharmaceutical company ,FAK technology ,focal adhesion kinase technology ,licensing agreement ,metastases ,NASDAQ:PARD ,novel inhibitors ,oncology products ,PARD ,picoplatin ,platinum-based cancer therapy ,Poniard Pharmaceuticals ,proliferation of cancer ,protein tyrosine kinase 2 ,Ronald A Martell ,Scripps Research Institute ,tumor cells ,Bes! t China Stocks 2012

Canadian Dollar Strength To Unravel On Easing Price Pressures

By David Song, Currency Analyst

Fundamental Forecast forCanadian Dollar: Bearish

  • Canadian Dollar Outlook Bearish
  • USDCAD: Support at Parity Level Gives Way
  • Canadian Dollar Advances as Trade Surplus, Oil Advance

The Canadian dollar firmed up going into the second full week of November, but a soften inflation report could spark a selloff in the loonie as it heightens the risk of seeing lower interest rates. Indeed, the rebound in market sentiment led the USD/CAD to pare the advance to 1.0265, and the exchange rate may extend the sharp reversal from the previous month should the rise in risk appetite gather pace.

However, consumer prices are expected to grow at an annual rate of 2.8% in October after expanding 3.2% in the previous month, and easing price pressures may encourage the Bank of Canada to carry its current policy into the following year as the region faces a slowing recovery. As the BoC plans to maintain the 2% target for price growth through 2016, the slowing recovery in Canada is likely to dampen the outlook for inflation, and we may see Governor Mark Carney endorse a wait-and-see approach throughout the first-half of 2012 as policy makers expect the economy to operate below full-capacity until the end of 2013. According to Credit Suisse overnight index swaps, market participants see the benchmark interest rate being held at 1.00% over the next 12-months, but the central bank may have little choice but to scale back borrowing costs as growth and inflation falter. In turn, we may see Mr. Carn! ey turn increasingly dovish over the coming months, and speculation for a rate cut may materialize in the following year as the central bank drops its pledge to gradually withdraw monetary stimulus.

As the USD/CAD continues to find resistance around 1.0160-70, the exchange rate may fall back towards the 78.6% Fibonacci retracement from the 2007 low to the 2009 high around 0.9880-0.9900 to test for near-term support, and the pair may hold this range over the remainder of the month as it breaks out of the major trend carried over from back in 2007. However, the USD/CAD could be in the process of carving out a higher low following the Golden Cross from back in September, and the dollar-loonie may make another run at the 61.8% Fib around 1.0570-1.0600 as it looks poised to make a higher high. - DS

DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/fundamental/forecast/weekly/cad/2011/11/11/Canadian_Dollar_Strength_To_Unravel_On_Easing_Price_Pressures.html

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

Related Articles:

(IDRA, CRWE, DRQ, ERJ, MJGCF) Stock Report from DrStockpick.com

High-risk copycat sector still without an ETF

Tags: Crown Equity ,CRWE ,Dril Quip ,Embraer ,Majestic Gold ,MJGCF ,Nasdaq:IDRA ,NYSE:DRQ ,NYSE:ERJ ,Stock Report ,Best China Stocks 2012

McDonald’s Ready To Issue 2Q Amid Strong Sales, Dollar’s Strength

McDonald’s (MCD)is prepared to unleash itssecond-quarter earnings Thursday, a period that should show the benefits of one of the most hotly debated, contentious issues to face the company, its franchisees and its millions and millions of patrons:

Did the double cheeseburger belong on the dollar menu?

Talk about drama. In fact, though, the fast-food giant finally reached a concession with its franchisees that let them take the item off the dollar menu in favor a compromise product – most restaurants offered a double-patty burger sandwich with a single slice of cheese – after several years of quibbling over the issue.

The period also included the rollout of the McCafecoffee beverageoffering, another hotly awaited initiative that could have an impact on its performance. The coffee beverages are expected to offer restaurants a higher-margin product line than the rest of the McDonald’s menu.

McDonald’s is slated to record 97 cents a share on about $5.72 billion of sales in the period, as sales comparisons remained robust in the period. On a global basis, same store sales increased 7% in April and 5% in May. However, the strength in the dollar in the period could prove to be a headwind for the bottom line.

In the first quarter of the year, a number of quick-service restaurant operators posted strong results, as consumers continued to trade down from more-expensive dining options. However, McDonald’s has faced some challenges in key areas such as China, and its shares – after leading the Dow industrial average components last year – have struggled for much of this year.

Related Articles:

The Twitter-24/7 Wall St. Stock Market Report 7.16.2010 The Wisdom Of Crowds

New ETF from Claymore Looks East

Tags: 2012 Hi-Tech Stocks ,Growth Hi-Tech Stocks ,Growth Stocks of 2012 ,Growth Stocks To Watch In 2012 ,Best China Stocks 2012

Ultimate Market Recap: Bank Stocks Crash, Dell and Target Earnings

Wednesday Morning’s Top Stories

New Italian Prime Minister?Mario Monti?announced he will wear two hats, naming himself Italy��s finance minister. He also selected key cabinet positions for his government, which will look to restart Italy��s (NYSE:EWI) economic growth in Italy, according to the Associated Press reported.

Monti and his new government team, including academics and private sector professionals, will be sworn into office later today.

Don��t Miss:?What Are These 3 Hedge Funds Doing With Gold?

The?Bank of Japan?(NYSE:EWJ) cut its economic outlook, attributing the effects from a slowdown in overseas economies, a stronger yen and the fallout from the Thailand floods. It kept its benchmark interest rate target the same and unanimously voted to hold the overnight target rate at 0 to 0.1 percent.

The Bank said in a statement after the policy decision, ��Japan��s economic activity has continued picking up, but at a more moderate pace.��

On Tuesday evening?MF Global��s?(MFGLQ.PK) bankruptcy trustee asked for court permission to release $520 million from 21,000 accounts. The money has been frozen for over two weeks and comes from a total of $900 million in funds. With the freeze, customers have been unable to trade and it has decreased commodity trading volumes.

Citigroup Inc.?(NYSE:C) may join its fellow banks and cut jobs, according to The Wall Street Journal.??The bank may get rid of 3,000 jobs, representing approximately 1 percent of its workforce. This may include 900 jobs from its securities and banking division, which has seen revenue declines from market volatility.

Super Hot Feature:?These Wall Street Firms are About to Start Firing People Like Crazy!

Nokia Corp.?(NYSE:NOK) may enter the increasingly competitive tablet arena with a?Microsoft Corporation (NASDAQ:MSFT)?Windows 8 phone software offering in June 2012, accordin! g to the French newspaper Les Echos. The paper cited Nokia��s Paul Amsellem as its source and added that the company has already started selling new smartphones with the Windows operating system in France.?Corporate headquarters would not confirm the tablet news.

Investing Insights:?Social Media ETF: These Equity Components are Sketchy.

Wednesday Morning Hot Stocks

Shares of?Nokia?(NYSE:NOK) are edging lower after a French newspaper leaks a plan that the company is to have a tablet computer using?Microsoft��s?(NASDAQ:MSFT) Windows 8 phone software ready by June 2012.? ��We have not announced any specific plans as it relates to tablets,�� Nokia spokesman James Etheridge told Dow Jones Newswires.

Target?(NYSE:TGT) shares received a 2% pop after reporting strong third quarter earnings.? Net income for the discount store rose to $555 million (82 cents per share), compared to $535 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 3.7% from the year earlier quarter.??Wal-Mart?(NYSE:WMT) and?Macy��s Inc.?(NYSE:M) are trading lower in early trading.

Abercrombie & Fitch?(NYSE:ANF) opened more than 9% lower after releasing third quarter results.? Net income for Abercrombie & Fitch rose to $50.9 million (57 cents per share), compared to $50 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 1.7% from the year earlier quarter.? Gross margin narrowed to 60.1% from 63.7%, due to an increase in average unit cost.??Aeropostale, Inc.?(NYSE:ARO) jumped 2.3% at the open.

Investing Insights:?Abercrombie & Fitch Earnings Cheat Sheet: Revenue Strengthens Again by Double-Digits.

Dell Inc.?(NASDAQ:DELL) dropped nearly 2% early Wednesday.? The company reported strong net income, but revenue declined 0.2%.? Net income for the personal computer company rose to $893 ! million (49 cents per share), compared to $822 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 8.6% from the year earlier quarter.??Hewlett Packard?(NYSE:HPQ) is also down about 1.10%.

Don��t Miss:?Here��s Why Dell Wants to Be More Than Just a PC Company.

ConocoPhillips?(NYSE:COP) is down nearly 1% after saying it will sell IS pipeline assets in two transactions at a combined value of $2 billion.? A subsidiary of a Canadian pension plan will buy its 16.55 percent investment in Colonial Pipeline Co. and Colonial Ventures LLC. A subsidiary of Enbridge Inc. will buy its stake in the Seaway Crude Pipeline Company.? Competitors to watch include:?Exxon Mobil?(NYSE:XOM) and?Chevron?(NYSE:CVX).

Wednesday’s Trending Stocks

As the Dow Jones Industrial Average climbs back and remains above 12,000, while the S&P 500 trades above 1,250 today, here are the company shares moving and shaking Wall Street now:

  1. Dell Inc.?(NASDAQ:DELL): Shares of Dell Inc. are trading?lower?over 1% today. Dell Inc. offers a wide range of computers and related products. The Company sells personal computers, servers and networking products, storage systems, mobility products, software and peripherals, and services. Dell serves consumers and businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.
  2. Tyco International Ltd.?(NYSE:TYC): Shares of Tyco International Ltd. are trading?higher?2.9% today. Tyco International Ltd. provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products.
  3. Target Corporation?(NYSE:TGT): Shares of Target Corporation are trading?higher?a half percent today. Target Corporation operates general merchandise discount stores in the United! States. The Company��s merchandising operations include general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards.
  4. Autodesk, Inc.?(NASDAQ:ADSK): Shares of Autodesk, Inc. are trading?higher?5% today. Autodesk, Inc. supplies PC software and multimedia tools. The Company��s two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk��s software products are sold worldwide through a network of dealers and distributors.
  5. Concur Technologies, Inc.?(NASDAQ:CNQR): Shares of Concur Technologies, Inc. are trading?higher?almost 1% today. Concur Technologies, Inc. provides workplace eCommerce software and services that extend automation to employees, partners, vendors, and service providers. The Company��s Concur eWorkplace product integrates its suite of workplace eCommerce solutions and provides a portal through which employees can access eCommerce information and services.
  6. Clean Energy Fuels Corp.?(NASDAQ:CLNE): Shares of Clean Energy Fuels Corp. are trading?higher?over 1% today. Clean Energy Fuels Corporation designs, builds, finances and operates natural gas filling stations for vehicle fleets. The Company also helps its customers acquire and finance natural gas vehicles and obtain local, state, and federal clean air rebates and incentives.
  7. Dick��s Sporting Goods, Inc.?(NYSE:DKS): Shares of Dick��s Sporting Goods, Inc. are trading?lower?a half percent today. Dick��s Sporting Goods, Inc. is a sporting goods retailer that operates stores primarily in the eastern and central United States. The Company��s stores offer a broad selection of brand name sporting goods equipment, appare! l, and f ootwear.
  8. Agilent Technologies Inc.?(NYSE:A): Shares of Agilent Technologies Inc. are trading?higher?over 2% today. Agilent Technologies, Inc. provides core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. The Company��s operations include electronic measurement, bio-analytical measurement, semiconductor and board testing.
  9. Wal-Mart Stores, Inc.?(NYSE:WMT): Shares of Wal-Mart Stores, Inc. are trading?lower?over a half percent today. Wal-Mart Stores, Inc. operates discount stores, supercenters, and neighborhood markets. The Company��s discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Walmart��s markets offer a full-line supermarket and a limited assortment of general merchandise. The Company operates nationally and internationally.
  10. Meritor Inc?(NYSE:MTOR): Shares of Meritor Inc are trading?lower?a half percent today.

Market Recap

Markets closed down on Wall Street today:?Dow?-0.58%,?S&P?-0.66%,?Nasdaq?-1.73%,?Oil?+2.48%,?Gold?-1.03%.

On the commodities front,?Oil?(NYSE:USO) climbed to $101.83 a barrel. Precious metals were down, with?Gold?(NYSE:GLD) falling to $1,763.80 an ounce while?Silver?(NYSE:SLV) fell 2.11% to settle at $33.73.

Hot Feature:?Oil Breaks $100 and Continues to Outperform Equities

Today��s markets were down because:

1)?Europe.?Yields on sovereign debt continued to hit record highs in more countries around the euro zone today, and the region��s hardest-hit economies are showing no signs of improving. Now even Germany��s debt level is a ��cause for con! cern,�� according Luxemburg Prime Minister?Jean-Claude Juncker. Germany got fewer bids than its maximum target at an auction of two-year notes, as the government agreed today to pay the?lowest yield?on record. With Germany seemingly entering the fray, investors grew increasingly concerned that European Central Bank intervention might be necessary. Meanwhile, though Italy and Greece��s new governments are moving forward, their leaders have yet to prove that they can effectively stamp out the debt crisis before it spreads.

2) U.S.?While the European crisis continues to worsen, investors are clinging to hope offered by reports demonstrating that the U.S. economy might be resilient enough to continue to grow, despite the increasing drag of Europe. Two separate reports today showed?homebuilder confidence?rising for the second straight month, and industrial production jumping more than expected. Meanwhile, U.S. Treasuries got a boost, with the yield on the benchmark 10-year note down to 2.02% today from 2.06% late Tuesday. The news was enough to buoy markets for a bit, but ultimately the drag of Europe and climbing oil prices resulted in a late rout that saw markets tumbling from slightly positive territory deep into the red.

3) Banks.?Despite the appearance that the U.S. has avoided recession, at least for now, bank stocks remained under pressure amid questions as to how Europe��s sovereign debt crisis could impact global financial institutions. Shares of Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Jefferies (NYSE:JEF) were among the markets�� biggest losers today.

BONUS:?Consumer Price Index: Inflation Eases

After Hours Radar Stocks

Shares of?PetSmart?(NASDAQ:PETM) dropped 1.2% in late trading after reporting earnings.? Net income for PetSmart Inc rose to $56.2 million (50 cents pe! r share) vs. $45.6 million (38 cents per share) in the same quarter a year earlier. This marks a rise of 23.1% from the year earlier quarter.? Competitors include:?PetMed Express?(NASDAQ:PETS),?Target?(NYSE:TGT), and?Wal-Mart?(NYSE:WMT).

Applied Materials?(NASDAQ:AMAT) fell nearly 3% after reporting a decline in earnings for its fiscal fourth quarter.? The company reported net income of $456 million (34 cents per share), compared to $468 million (35 cents per share) last year.

After reporting a 5.6% decline in earnings,?shares of?NetApp?(NASDAQ:NTAP) are falling hard in late trading.? Steve Gomo, NetApp��s chief financial officer, said in an interview that the company��s sales were below the mid-point of NetApp��s guidance range, mostly because of ��nine major accounts that were pretty soft. There��s a theme across those accounts, and it��s the macro environment.��

Fusion-io Inc.?(NYSE:FIO) are down almost 2% after the closing bell.? The company announced it will offer three million shares of its common stock.? Clients and partnerships of the company include other tech giants such as?Apple?(NASDAQ:AAPL),?IBM?(NYSE:IBM),?Hewlett-Packard?(NYSE:HPQ), and?Dell?(NASDAQ:DELL).

Shares of?Qualcomm Inc.?(NASDAQ:QCOM) are edging down in extended trading.? The company held its annual analyst event on Wednesday.? The increasing demand for ersonal computers and other gadgets to function more like phones will give the chip maker a boost.?Goldman Sachs?(NYSE:GS) analyst Simona Jankowski, for example, expects Qualcomm to reiterate its expectations for double-digit top and bottom-line growth during its analyst event.? Competitors include:?Intel?(NASDAQ:INTC),?Microsoft?(NASDAQ:MSFT), and?Advanced Micro Devices Inc.?(NYSE:AMD).

Limited Brands Inc.?(NYSE:LTD) slipped 1.80% after repor! ting res ults for the third quarter.? Net income for the apparel store rose to $94.3 million (31 cents per share) vs. $61 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 54.6% from the year earlier quarter.? Competitors include:?New York & Company, Inc.?(NYSE:NWY) and?Express, Inc.?(NYSE:EXPR).

Related Articles:

Winnebago Industries Earnings Preview

U.S. Market Rebounds After A Day Of Losses; Dell In Focus

Tags: 2012 Dividend Stocks ,2012 Top Stocks ,Top Stocks To Hold For 2012 ,Top Stocks To Hold In 2012 ,WGO ,Best China Stocks 2012

Wal-Mart: Former CEO Sells $5.7 Million in Shares

Former Wal-Mart (WMT) CEO Lee Scott sold 100,000 shares in the retailing giant on Friday, reducing his direct stake in the company by about 14%, according to a filing released late on Tuesday. Scott sold the shares for $57.17 each on average. He still owns about 607,000 shares directly, not including any options he may still have. Scott had not sold shares since March of 2010, when he also sold about $5.7 million worth, according to InsiderScore.com.

Wal-Mart stock has recently been showing strength as the company has been able to increase its same-store sales. Shares are trading 1.4% higher today at $58.96.

Related Articles:

China Pushes “Bad Bank” As Good Policy

Exxon and Royal Dutch Shell Haven’t Sold a Drop of Oil from This $39 Billion Project

Tags: 2012 Financials Stocks ,Good Financials Stocks To Invest In ,Good Stocks To Buy 2012 ,Good Stocks To Invest In 2012 ,Best China Stocks 2012

Thursday, December 22, 2011

Hot Stocks: Despite Lowered Target, Vale Still Poses Potential 59% Gain, Analyst Says

TF Financial Corporation (NASDAQ:THRD) achieved its new 52 week high price of $23.00 where it was opened at $22.31 UP 0.56 points or +2.50% by closing at $23.00. THRD transacted shares during the day were over 13,932 shares however it has an average volume of 800 shares.

THRD has a market capitalization $62.17 million and an enterprise value at $107.22 million. Trailing twelve months price to sales ratio of the stock was 2.72 while price to book ratio in most recent quarter was 0.78. In profitability ratios, net profit margin in past twelve months appeared at 13.69% whereas operating profit margin for the same period at 20.11%.

The company made a return on asset of 0.44% in past twelve months and return on equity of 4.02% for similar period. In the period of trailing 12 months it generated revenue amounted to $22.32 million gaining $8.27 revenue per share. Its year over year, quarterly growth of revenue was 3.50% holding 7.00% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $14.48 million cash in hand making cash per share at 5.35. The total debt was $59.50 million. Moreover its book value per share was 28.66.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated -2.32% where the stock current price exhibited up beat from its 50 day moving average price $20.17 and remained above from its 200 Day Moving Average price $21.07.

THRD holds 2.70 million outstanding shares with 1.84 million floating shares where insider possessed 44.82% and institutions kept 19.80%.

Related Articles:

2 Positive Signs for Eli Lilly

The American Cities That Added (And Lost) The Most Jobs

Tags: 20! 12 Hi-Te ch Stocks ,ABT ,ARIA ,LLY ,TEVA ,Top Hi-Tech Stocks To Watch ,Top Stocks To Watch In 2012 ,Best China Stocks 2012

Top Reps Display Creativity, Concern at Curian Capital Conference

Get a group of top advisors in a room for an hour and you have just enough time to get through one question. That’s what happened recently when Denver-based managed account provider Curian Capital invited AdvisorOne to an exclusive roundtable discussion with a sampling of the reps and broker-dealers with which it partners.

Passion to do right by their clients was immediately palpable and each rep had a lot to say. Not surprisingly, current events initially dominated the discussion, but comments soon veered into longer term retirement planning, behavioral economics and retaining client trust after the events of 2008.

Firms that were represented include Commonwealth Financial NetworkINVEST Financial Corp., National Planning Corp., Securities America Advisors, Securities Service Network, SII Investments and Walnut Street Securities.

Mike Helgesen, Securities Service Network: The United States government stole my summer. My clients were concerned about the debt ceiling debate, and it was such a huge time suck. It was a waste of time and a waste of productivity.

Marc Anderson, Securities America AdvisorsMarc Anderson, Securities America Advisors (left): Sure, the government stole my summer, but it made my fall. Once the debate was settled and the uncertainty went away, the markets positively responded and my clients could once again concentrate on growing their portfolios.

Mark Singer, Commonwealth Financial Network: But from a financial planning perspective, events like that are always an opportunity to be proactive. If you’re not boilerplate and can tell them specifically how it affects them, they appreciate it.

Scott CampbellScott Campbell, INVEST Financial Corp. (left): What clients are struggling with is fear. They have the loss of equity in their home; they’re concerned about the American dream and whether it can still be achieved. It’s the totality of the information they receive that overwhelms them, and they look to us to be the filter. It used to be all about investment performance, but not anymore.

Rex Rexroad, Commonwealth Financial Network: This might sound a little self-serving, but there’s really no one to turn to like the financial advisor. Guidance and leadership in life typically revolves around money. They might have a priest, accountant and lawyer. But no other professional is at the crux of where those issues meet. No one is at the same level of depth in terms of the client’s situation like a financial advisor.

Campbell: It’s so important to seek out collaborative relationships with CPAs and other professionals if for no other reason than it minimizes the inconsistency of the message the client receives.

Matt Hanshaw, National Planning Corp.: But clients are much more sophisticated than they were even five or 10 years ago. After 2008, there’s a sense of “we’ve been through this before. I know what you’re going to tell me, but I just want to hear it from you.” They still want that reassurance.

Rexroad: And it’s not so much the risk of volatility they’re dealing with; it’s the risk of not reaching their goals.

Scott Holstein, Walnut Street SecuritiesScott Holstein, Walnut Street Securities (left): But when clients look at the financial services industry, it’s like financial advisors kind of have the nicest house on a condemned street. They’re not happy with the industry overall, but still trust their advisor. That’s why it’s important not to tear down the competition, because it ultimately hurts us all.

Mark Singer, Commonwealth Financial NetworkSinger, (left): Managing expectations used to be about a range of return. Now it’s about managing expectations about retirement. Are you 80% to 90% on track for retirement?

Holstein: The good thing is that because of technology and access to information, we're able to provide institutional-level quality to the retail client. But they have disappointment fatigue. They’re wondering how long they’ll have to wait and hang in there for the markets to come back.

Rexroad: That’s why the term “planner” may be old, but it’s coming back.

Helgesen: Managing money is interesting. Managing money in the context of human behavior is infinitely more interesting.

Jim Person, SII InvestmentsJim Person, SII Investments (left): The challenge is in an honest evaluation of client needs and matching it with solutions. The concern was always dying too young. Now the concern is living too long. The need for a distribution of 30 years is something that must be carefully communicated or they’ll be too overwhelmed and will shut down.

Singer: Exactly. It’s important not to douse their hopes and dreams.
They can continue in the same lifestyle maybe for 10 years, but then it must be re-evaluated.

Hanshaw: And with the economy struggling, we're seeing a rise in the number of individuals that fall into the Sandwich Generation, those that are 55 to 60 years old that have children moving in while at the same time they have to care for elderly parents.

Holstein: Now it’s about accumulation, distribution and leaving a legacy. How is it all accomplished?

Person: Traditionally, they’ve had confidence in Social Security and a pension. But living longer requires more money, so the 401(k) and

Social Security now have to do the trick.

Helgesen (left): Ken Dycthwald was wrong. Almost no one thinks about the “next chapter” of retirement, except in fairy books. They just want to know when they can retire.

Campbell: It used to be retirement happened between age 60 and 65. Now retirement will happen in their 70s.

Person: But we also have the socio-economic changes that have to be dealt with. People are staying longer in their jobs. I worry about people who say "don’t worry about those people who have to work longer." Income disparity is a real problem.

Rex Rexroad, Commonwealth Financial NetworkRexroad (left): There are so many variables, but we have a passion that allows us to see what’s coming down the pike. We’re like pilots that must constantly course correct.

Singer: We once thought that we were great money managers. But performance is generic. We have to manage the client’s unique issues. That is what makes us unique.

Person: But encouraging them to take action is not enough. We are morally responsible to advise clients on the consequences of the actions they take. Just as if we were a doctor or lawyer.

Related Articles:

PetroChina Bulls Bet on Rising Prices

Saudis Chase Khat-Runners on Yemen��s Border as Unrest Drives Migrant Wave

Tags: Best Performing Penny Stocks ,Best Performing Stocks To Buy 2012 ,Best Performing Stocks To Buy In 2012 ,PTR  ,Best China Stocks 2012

Hewlett-Packard Short Interest Rises

The short interest in HP (HPQ) for January rose over 5 million shares to 35 million. Concerns about CEO Mark Hurd’s stock sales during the company’s back-dating investigation or the potential of slower revenue at the big tech company may be worrying investors.

Hurd said that his stock sales was unrelated to HP’s probe and that he had clearance from company attorneys. Whether this will satisfy the Congressional committee looking into the matter remains to be seen.

HP has also stated that its revenue should surpass $100 billion this year, That will require a strong IT market and robust sales of the company’s servers, PCs and printers. Any stumble would be bound to hurt the company’s stock.

There is the matter of the stock price. At $42, it is up well over 100% over the last two years while rivals like IBM (IBM) are nearly flat.

The air is thin up there, and there is a long way to fall.

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

Related Articles:

Monetary Policy Week In Review - 10 Dec 2011

12 Days of Charitable Giving: Critical Exposure

Tags: Growth Stocks of 2012 ,Growth Stocks To Watch In 2012 ,Growth Tech Stocks ,Growth Tech Stocks For 2012 ,Best China Stocks 2012

Stocks Attracting Trading Demand Today

As the markets cool off after a big Santa rally yesterday, here are the hottest stock driving buzz among investors and traders on Wall Street today:

Delphi Financial Group, Inc. (NYSE:DFG): Shares of Delphi Financial Group, Inc. are trading higher 72% today. Tokyo Marine announced it will by Delphi Financial for $2.7 billion today. Delphi Financial Group, Inc., through its subsidiaries, offers a diverse portfolio of group employee benefit products, including life, disability, workers’ compensation, and personal accident insurance. The Company also offers asset accumulation products, primarily annuities, to individuals and groups. Delphi offers its insurance products throughout the United States. Get the most recent company news and stock data here >>

Oracle Corporation (NASDAQ:ORCL): Shares of Oracle Corporation are trading lower 13% today. Oracle’s latest earnings report disappointed investors. Oracle Corporation supplies software for enterprise information management. The Company offers databases and relational servers, application development and decision support tools, and enterprise business applications. Oracle’s software runs on network computers, personal digital assistants, set-top devices, PCs, workstations, minicomputers, mainframes, and massively parallel computers. Get the most recent company news and stock data here >>

CarMax, Inc (NYSE:KMX): Shares of CarMax, Inc are trading lower 6.95% today. Carmax’s recent earnings release caused shareholders to sell shares. CarMax, Inc. sells at retail new and used cars and light trucks. The Company purchases, reconditions, and sells new and used vehicles in its superstores and franchises throughout the United States. Get the most recent company news and stock data here >>

Walgreen Company (NYSE:WAG): Shares of Walgreen Company are trading lower 1% to! day. The company reported earnings today and delivered lower margins on the latest quarter. Walgreen Company operates retail drugstores that offer a wide variety of prescription and non-prescription drugs as well as general goods. The Company operates stores in the United States, the District of Columbia, Puerto Rico and Guam. Walgreen’s also offers health services, including primary and acute care, wellness, pharmacy and disease management services and health and fitness. Get the most recent company news and stock data here >>

NIKE, Inc. (NYSE:NKE): Shares of NIKE, Inc. are trading higher 3% today. Shareholders were very impressed with the company’s latest earnings release. NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors. Get the most recent company news and stock data here >>

Actuant Corporation (NYSE:ATU): Shares of Actuant Corporation are trading higher 7% today. The company beat forecasts in its latest earnings release. Actuant Corporation manufactures and markets a broad range of industrial products and systems. The Company sells branded, specialized electrical and industrial tools to hydraulic and electrical wholesale distributors, to catalog houses, and through retail distribution channels. Actuant also designs and markets customized motion control systems for original equipment manufacturers. Get the most recent company news and stock data here >>

Jabil Circuit, Inc. (NYSE:JBL): Shares of Jabil Circuit, Inc. are trading lower 5% today. The company missed earnings and shareholders sold stock today. Jabil Circuit, Inc. is an electronic manufacturing services provider for international electronics companies in the communications, personal computer, peripheral, co! nsumer, and automotive markets. The Company offers circuit design, board design from schematic, prototype assembly, volume board assembly, system assembly, repair, and warranty services. Get the most recent company news and stock data here >>

Cintas Corporation (NASDAQ:CTAS): Shares of Cintas Corporation are trading higher 9% today. The company beat on revenues and profits in its latest earnings report to shareholders. Cintas designs, manufactures and implements corporate identity uniform programs. The Company also provides entrance mats, restroom supplies, promotional products, document management, fire protection, and first aid and safety services. Get the most recent company news and stock data here >>

The Shaw Group Inc. (NYSE:SHAW): Shares of The Shaw Group Inc. are trading higher 15% today. The company impressed shareholders with its latest earnings release. The Shaw Group Inc. provides engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the power, process, environmental, infrastructure, and emergency response markets. Get the most recent company news and stock data here >>

Piedmont Natural Gas Company Inc. (NYSE:PNY): Shares of Piedmont Natural Gas Company Inc. are trading flat today. Piedmont Natural Gas Company, Inc. is an energy and services company that primarily transports, distributes, and sells natural gas. The Company serves residential, commercial, and industrial customers in North Carolina, South Carolina, and Tennessee. Piedmont also, through subsidiaries, markets natural gas to customers in Georgia, and distributes propane in various states. Get the most recent company news and stock data here >>

Related Articles:

Big Asset Manager

FBI: Crime Drops in First Half of 2011

Tags: 2012 Chinese Stocks ,ANF ,BYI ,EXPD ,GET ,GPN ,Growth Stocks To Hold ,Growth Stocks To Hold For 2012 ,GWW ,HTZ ,LTM ,SBAC ,SFLY ,Best China Stocks 2012

Alon USA Energy, Inc. Quarterly Earning Growth Remained More Than 49% - NYSE:ALJ

Alon USA Energy, Inc. (NYSE:ALJ) shares were transacted unexpectedly with a volume of 442,581.00 shares as compared to its average volume of 178,427.00 shares. ALJ opened at $8.20 scored +7.06% closed $8.79. Its 52 week price range is $4.77 - $9.00.

ALJ has earnings of -$188.39 million and made $3.50 billion sales for the last 12 months. Its quarter to quarter sales remained -0.36%. The company has 54.18 million of outstanding shares and 11.70 million shares were floated in the market.

ALJ has an insider ownership at 80.77% and institutional ownership remained 13.16%. Its return on investment (ROI) for the last 12 month was -10.82% as compare to its return on equity (ROE) of -51.42% for the last 12 months.
The price moved ahead +23.99% from the mean of 20 days, +41.23% from 50 and went up +44.62% from 200 days average price. Company��s performance for the week was +23.11%, +45.77% for month and yearly performance remained +33.38%.

Its price volatility for a month remained 5.41% whereas volatility for a week noted as 8.18% having beta of 0.82. Company��s price to sales ratio for last 12 months was 0.14 while its price to book ratio for the most recent quarter was 1.46.

Related Articles:

Outlook for Euro Darkens on Summit, ECB Policy

A Better Way to Profit From Apple

Tags: 2012 Good Stocks ,Good Stocks of 2012 ,Good Stocks To Buy For 2012 ,Good Stocks To Buy In 2012 ,Bes! t China Stocks 2012

Platinum: How to Profit From the Metal That's More Precious Than Gold

In thisarticle, I created a model to allow sensitivity analyses to be performed on a dividend stock portfolio being targeted towards producing a specific level of income, as opposed to a value.

There are eight variables that comprise the model, but I would contend five of these are within the investor's control. Beginning Value and Going-in Dividend Yield, are based on a current state of facts that any devoted dividend growth investor has ready access to. Values for Additional Contributions, Income Target and Investment Horizon are chosen by the investor and can be altered in the investor's discretion at any future time.

Actual changes in the three remaining variables, Inflation, Dividend Growth Rate and Future Share Prices, will be beyond the investor's control. Nonetheless, in the context of this model, these variables have some interesting characteristics:

  • Inflation - Its effect in this model is limited to inflating the Income Target to the end of the Investment Horizon.

  • Dividend Growth Rate - Due to the observed "stickiness" in payment patterns, particularly for reasonable-yielding blue chip companies with a clear dividend history and stable operating metrics, an investor should be able to project a reasonable range for this variable for short to intermediate Investment Horizons with a greater degree of confidence than for price changes. Of course, the higher the current yield, the more risk there is in predicting dividend growth or sustainability (the so-called "yield trap" effect).

  • Future Share Prices - This is arguably the single most difficult variable for an investor to estimate due to the added element of "Mr. Market". However, in a model designed to target a level of income as opposed to value, the effect of this variable is significantly limited as price is only needed to determine in the number of future shares purchased through additional investments and reinvesting dividen! ds.

    < /li>

This model is clearly different from an asset allocation model which, as it is targeting portfolio value and not income, must fully account for asset price changes. Asset allocation models also must consider additional variables such as interest rates and percentage of allocations. This does not mean that I believe there is less risk in dividend growth investing! It just means that it is easier mathematically to relate cause and effect.

With this (boring stuff) as background, let's do some additional sensitivity analysis. As a refresher, Larry, a 55 year old, saved well for retirement having an IRA that has a $400,000 current value. It is comprised of roughly equal amounts of four stocks: Procter & Gamble (PG), Johnson & Johnson (JNJ), McDonald's (MCD) and Exxon (XOM). Combined, these stocks have an average current yield of about 3% and experienced a dividend growth rate of about 10% per annum from 2007 to 2010. I converted these four stocks into "Larry's ETF" and assigned a hypothetical number of shares at 10,000 and current share price of $40 per share. I fixed the annual anticipated stock price appreciation on the portfolio at 3%, but this only serves to determine the number of shares purchased when dividends and new contributions are invested.

Let's mix things up a bit from my first article and assume for this one that Larry has done some cash budgeting and he has determined that he will be able to contribute $10,000 per year to his IRA for each of the next ten years. What combinations of Going-in Dividend Yield and Dividend Growth rates will allow him to achieve his goal of $50,000 of dividend income per annum when he turns 65?

As seen in the spreadsheet below, with a 3% Going-in Dividend Yield and a $10,000 per annum contribution, Larry would need a dividend growth rate of 9.25% per annum to achieve his goal. This is 0.75% less than the average annual dividend growth rate for this portfolio from 2007 to 2010. That's a fairly tight margin of! error.< /p>

Click to enlarge:

Let's say now that we replace McDonald's and Exxon with Consolidated Edison (ED) and Waste Management (WM) in Larry's portfolio. The Going-in Dividend Yield for this grouping is about 4% and the average dividend growth rate was about 6.75% per annum from 2007 to 2010. What dividend growth rate going forward would allow Larry to achieve his Income Target of $50,000 in this case? As seen in the spreadsheet below, a dividend growth rate of 5.68% per annum would be required. As a result, if this portfolio has a dividend growth rate of not more than 1.07% less than the dividend growth rate achieved from 2007 to 2010, then Larry will achieve his goal.

Click to enlarge:

Finally, let's say we now replace Procter & Gamble and Johnson & Johnson with AT&T (T) and Eli Lilly, (LLY) (so the portfolio is now AT&T, Eli Lilly, Consolidated Edison and Waste Management) bringing the Going-in Dividend Yield to about 5%. The average dividend growth rate for this grouping was about 5% per annum from 2007 to 2010. As seen in the spreadsheet below, a Dividend Growth Rate of 2.93% per annum would be required to achieve a $50,000 Income Target. As a result, if this portfolio continues to have a dividend growth rate of not more than 2.07% less than the dividend growth rate achieved from 2007 to 2010, then Larry will achieve his goal.

Click to enlarge:

Conclusion: A higher Going-in Yield significantly reduces the Dividend Growth Rate that is mathematically required to achieve an Income Target for a dividend growth portfolio with a ten year investment horizon. However, higher current yields are sometimes associated with higher dividend vulnerability. As a result, investors should weigh risks carefully before choosing specific stocks to increase their current yield.

Also, the above combinations of going-in yields and dividend growth rates are specific to the selected value for the m! odel var iables, namely: The $400,000 Beginning Value, Additional Contributions of $10,000 per annum, a $50,000 Income Target, a ten-year Investment Horizon and 3% per annum Future Share Price increases. While altering any of these variables in a reasonable manner will not change the inverse relationship between the going-in yield and the corresponding required dividend growth rate, it could materially change the specific combinations that are necessary to achieve an income target. Any investor trying to replicate this approach should carefully choose values for the above variables that match their personal situation.

In the next article, I will demonstrate the effect of changes in the Investment Horizon on the above relationships.

Disclosure: I am long SPY, SDY.

Related Articles:

Dorchester Minerals L.P Irregular Trade during last session - NASDAQ -DMLP

Can Streaming Video Take a Bite Out of Traditional Media Advertising?

Tags: 2012 Consumer Stocks ,DMLP ,Dorchester ,NASDAQ:DMLP ,Top Performing Consumer Stocks To Buy ,Top Performing Stocks To Buy 2012 ,Best China Stocks 2012

Wednesday, December 21, 2011

Consumer Confidence Hari Kari

How confident are you?

If you thought the Conference Board’s reading of consumer confidence was bad at 37.4 in January, you should see the carnage in February.? Economists were expecting a mild decline from already-suppressed levels down to 35 to 36 depending upon which consensus source you used.? This reading was 25.0, the worst on record.

The present situation index fell to a reading of 21.2 and the expectations index fell to 27.5.? The January readings for these were 29.7 and 42.5.? What is amazing is that the percentage calling business conditions bad rose to 51.1% from 47.9% the month before.? Those saying there were “good” business conditions was 6.8%.? Amazingly, that is up from 6.4% in January.? But still…. SIX????

It is true that economists consider unemployment a “lagging indicator” but the fears here are still growing.? Those calling the jobs “hard to get” are now 47.8%, up sharply from 41.1% in January.? Those calling jobs plentiful have fallen off a cliff.? That number was a mere 4.4%, down from 7.1% in January.

As the tee-shirt says…. “The beatings will continue until morale improves.”? Maybe morale doesn’t even matter any more.? The beatings continue.

Jon C. Ogg
February 24, 2009

Related Articles:

Insider Weekends

Amazon's Dance With the Devil: Vol. 2

Tags: APOL ,CAO ,CRI ,CVLT ,Dividend Stocks ,FC F ,IPG ,IPGP ,PCR ,Top Performing Dividend Stocks ,Top Performing Stocks 2012 ,UTHR ,VRX ,Best China Stocks 2012

24/7 Wall St.¡¯s Corporate Power Rankings: Week 28

The 24/7 Wall Street Corporate Power Rankings of the 32 most important companies in America are determined by earnings, analyst rankings, important corporate news, trends in each firm's industry, product introductions, management strength and change, and credible rumors. It is, in effect, a new version of the DJIA

McDonald’s moved into the top slot due to its sterling earnings and the rapid growth of its same-store sales around the world. Microsoft move higher because of its earnings and the remarkable growth of Windows 7.

Johnson & Johnson kept the bottom position as quality control and recall problems with some of its OTC products worsened.

< /tr>
CompanyRank (last week)SymbolComment
McDonald’s1 (3)MCDEarnings show why the company outdistances its smaller rivals with strong gains in US, Asia, and Europe.
Apple2 (1)APPLAfter good earnings, Wall St. and analysts give more accounts of astonishing sales of the iPhone 4 and iPad.
Proctor & Gamble3 (2)PGInternational Olympic Committee will name P&G as sponsor. Cat food recall from animal food division means zip.
IBM4 (4)IBMGeneral improvement in tech earnings from Mr. Softy and VMWare signal sector is strong. Shares rallied from last Tuesday through Friday.
Berkshire Hathaway5 (5)BRKGE's best performing divisions last quarter match up with some Buffett divisions a sign that BRK should keep earnings momentum.
Coca-Cola6 (6)KOLawsuit over claims about VitaminWater’s benefits will go forward. Credit Agricole Securities says company's sales are "stunning" outside Europ! e.
Disney7 (8)DIS"Toy Story 3" still among top 5 US movies after all these weeks. Company will buy Playdom media-game-for-social-networks start-up
Intel8 (7)INTCMr. Softy earnings show that PC, and chip sales, continue to improve. Case about financial dealings with Dell will continue to be a black eye.
Philip Morris9 (9)PMStronger earnings on sales from Asia. Region seems to be adding tobacco sales that has been largely driven out of the US.
Ford10 (10)FPowerful earnings increase helps allay fears about debt load. But there are no signs that car company is making large gains in critical China market.
Abbott Labs11 (9)ABTEarnings above Wall St. estimates as stent and biopharma sales shine.
Cisco12 (12)CSCOKaufman says router company will handily beat EPS forecasts. AT&T and Verizon earnings show that broadband infrastructure will continue to grow.
Oracle13 (13)ORCLGets knocked of Morgan Stanley "best ideas" list, but management says it will quicken growth by doubling M&A budget.
Google14 (14)GOOGTelecom earnings results show rapid increase in Android-OS deployments. But, UBS upgrades China-based rival Baidu.
Pfizer15 (16)PFEFDA approves increased dose of company's Alzheimer’s disease drug Aricep. But PFE says that it has stopped patient tests of experimental drugs for two types of pain at fed's request.
Wal-Mart16 (15)WMTApparel chief quits and Sam's Club potential members get free tests. Maybe they balance each other out. Company makes brilliant move by putting radio chips into ! underwea r.
Hewlett-Packard17 (17)HPQWill use Palm software to battle Google and Apple in smartphone wars? Could not be a worse decision. Still pushing for a solution to success of iPad.
Microsoft18 (20)MSFTEarnings show that growth of core Windows, Office, and Business franchises are still strong, but online and game units still are wasted investments.
FedEx19 (18)FDXRival UPS signals rapid recovery in global air freight industry.
American Express20 (19)AXPEarnings beat estimates as credit environment improves, but problems of another economic slowdown may mean quarter was "one off"
Dow Chemical21 (21)DOWSome analysts are concerned whether the sector will get a boost from thestimulus plan that will cause let-down next year. Sales are expected to be good for lower-margin divisions.
Exxon-Mobil22 (22)XOMStorm in Gulf fails to interrupt operations much. World's largest oil company gets good PR from plans to have new service to handle big spills.
Caterpillar23 (23)CATEarnings outshine. UBP ups price target to $74. And stock moves up 8% for the last week.
Boeing24 (24)BAStock improves on order flow from big air show and optimism that company may get Air Force tanker project. Now, it's earnings time.
Verizon25 (25)VZEarnings are OK but not great. Landline business is still losing ground and wireless is growing. But, everyone has a cellphone now, right? Where's the growth in that?
GE26 (26)GEConglomerate helps its prospects by 20% dividend increase after modest earnings. It only helps if earnings do! better than "modest".
Goldman Sachs27 (27)GSThings seemed so bright a week ago as GS settled with the SEC. But, questions have arisen about whether the bank is withholding documents of other investigations and whether the SEC cut a deal with Goldman because it would benefit from the timing.
Home Depot28 (28)HDJust when the housing market could not get worse, it does.
JP Morgan29 (29)JPMPay czar thinks some bankers made too much during credit crisis, but he is leaving to run BP Gulf escrow, so who cares?
Bank of America30 (30)BACSells more private equity assets and seems to be preparing for the day that commercial and retail banking will rule. Margins will shrink to nothing.
AT&T31 (31)TForecast company gives are solid, but wireless growth in slowing in US. And every carrier in the US will sell the iPhone next year��according to rumors.
Johnson & Johnson32 (32)JNJReport on Pennsylvania plant worse than expected and Pepcid problems added to a long list.

Douglas A. Mcintyre

Related Articles:

Media Digest 12/17/2007 Reuters, WSJ, NYTimes, FT, Barron’s

ESPN Analyst to Run for U.S. Senate Seat

Tags: 2012 Transportation Stocks ,Great Stocks To Buy In 2012 ,Great Transportation Stocks To Buy ,Best China Stocks 2012

Vertex Pharma Gains After FDA Grants Priority Review For Cystic Fibrosis Treatment

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) announced that the U.S.health regulators have granted priority review for KALYDECO, thecompany's lead medicine in development to treat cystic fibrosis (CF).

On Thursday, the stock rose 1.6 percent to $31.04 in pre-market trading.

KALYDECO targets the defective protein that causes CF in a subset ofpeople with the disease. "If approved, KALYDECO will be the firsttreatment to target the underlying cause of CF," the Cambridge,Massachusetts-based company said.

The U.S. Food and Drug Administration (FDA) has set a six-month target review date of April 18, 2012.

Vertex also announced that its marketing authorization application(MAA) for KALYDECO has been validated by the European Medicines Agency(EMA).

CF is a life-threatening genetic disease affecting around 30,000people in the United States and 70,000 people worldwide. CF is caused bydefective or missing cystic fibrosis transmembrane conductanceregulator proteins resulting from mutations in the CFTR gene.

In a separate statement, the company also announced that it appointedJeffrey Leiden as President and Chief Executive Officer (CEO),effective February 1, 2012.

VRTX, which has been trading in the 52-week range between $26.50 and $58.87, ended Wednesday's regular trading at $30.54.

{$end}

Related Articles:

European Fears, Dividend Aristocrats, and a Hot Tablet

Mashable’s Six Memorable Social Media Trends of 2011

Tags: AAPL ,AMZN ,Best Performing Stocks To Buy ,Best Performing Stocks To Invest In ,BUD ,DEO ,Energy Stocks ,NUE ,T ,Best China Stocks 2012

'Mad Money' Recap: Market Refuses to Quit (Final)

"This market refuses to surrender to negativity," Jim Cramer announced to his "Mad Money"TV show viewers Monday.

He took a moment to acknowledge and marvel at everything that has gone wrong that our markets have practically ignored over the past week or so.

First there was the MF Global bankruptcy, the eighth largest in American history. Cramer said while this was a huge scandal, the financial stocks are not seeing any ripple effect. Then there was the collapse of the Greek government, another non-event that just a few weeks ago would've sent the markets heading for the hills. But he said the markets remained strong.

There were negative comments from Federal Reserve chairman Ben Bernanke, to which the markets gave a collective yawn, said Cramer. The last time the Fed chair spoke, the markets took note, he said, but not this time.

There has also a precipitous rise in the price of Brent crude to the highest levels we've seen since July. That surely would have stifled the U.S. markets, right? Apparently not. Neither did increasing concerns over the financials of Italy nor the bad U.S. jobs report from last week. All non-events.

Yet through all of these negatives, companies like Qualcomm (QCOM), Emerson Electric (EMR) and EOG Resources (EOG) all posted great earnings and the markets overall, have done really well.

Cramer said even though the markets are favored to lose this race, he's not willing to jump back in quite yet. He said the markets still need to see a sizable pullback before he'd be ready to test the waters fully. That said, Cramer noted that the markets' resilience must be acknowledged and respected.

Retail Strength

In his "No Huddle Offense" segment, Cramer opined on the recent upgrades of both Pier 1 Imports (PIR) an d Home Depot (HD). He said if you were to believe the media, homes are just a wasting asset that everyone is losing money on. But in reality, consumer spending is stronger than believed, said Cramer, and homes, at least in some places, are regaining some of their luster.

Cramer said that Pier 1 and Home Depot are excellent operators, but the trend can also be seen at Macy's (M) and Lowes (LOW), two other chains with large exposure to home-oriented spending. Things may not yet be great with home prices in our country, said Cramer, but consumers wouldn't be spending money to fix them up if they were still planning on skipping out on the mortgage.

Medical Technology Play

In the "Executive Decision" segment, Cramer spoke with Glen Tullman, CEO of Allscripts Healthcare (MDRX), the electronic medical records purveyor that recently delivered a three-cent-a-share earnings best on a 12% pop in revenues. Shares of Allscripts trade at 19 times earnings with a 24% growth rate and are up 149% since Cramer first got behind the company in January, 2009.

Tullman said that Allscripts is well positioned in not only patient records but also in billing systems and care management as well. He said that the medical world is one of the last industries to truly utilize technology to increase efficiencies and better patient care, but now with new Medicare rules, doctors and hospitals will have to step up and take notice.

Tullman also said that some insurers are now lowering malpractice insurance for doctors that use electronic records and overall the company is seeing lower loss of life and improved patient care through the use of their products.

When asked about new technology like tablet and smartphones, Tullman said that doctors have been late to adopt Apple's (AAPL) iPad, but Allscripts has new products coming ! out for all platforms. "We have you covered at Allscripts," touted Tullman.

When asked about the company's expansion plans, Tullman said that international growth is still important for the company, but in the case of the Middle East, the company decided to step away from that market and instead focus on the most vibrant and profitable markets for the company, which includes the U.S.

Finally, when asked about competition between out nation's largest pharmacy chains, Tullman said that Allscripts works with all major pharmacy chains as well as with independent operators and will not only transmit prescriptions, but also check for errors and make sure the drugs are covered under the patient's insurance plan as well. He said Allscripts benefits no matter where a patient gets a prescription filled.

Cramer said he continues to like Allscripts.

Reassured on Dividend

In his second "Executive Decision" segment, Cramer once again sat down with Herbjorn Hansson, chairman and CEO of Nordic American Tanker (NAT), a company Cramer called the best house in a bad neighborhood. Nordic posted a larger-than-expected earnings miss on negative cash flow.

Hansson responded to criticisms that his company cannot afford to continue its 8.6% dividend by saying that Nordic American must support its shareholders, even in bad times. He said strongly than "we can afford it, and we we will prioritize it." Hansson also noted that while he cannot promise anything, the company can "can pay it for years," even with negative cash flows.

Hansson said that he's an optimist when it comes to the world economy. He said the shipping business is a tough business, but Nordic American is used to it and can handle the pressure. Hansson said that just last month his company purchased another ship for $25 million. That same ship would have been $60 million just a few years ago and $100 million before that. ! The move puts Nordic American though in a strong position for when global shipping turns around.

Hansson also said that the shipping business does not have a trend line and tends to be very volatile. So just because things are low today, it doesn't mean business can't turn on a dime. He noted that October rates were very strong, for example, but have since retreated.

After getting reassurances on the dividend, Cramer said he still thinks Nordic American Tanker is the best of breed shipping company and the dividend is, for now, safe.

Lightning Round

Cramer was bullish on Cooper Companies (COO), Manitowoc (MTW), Juniper Networks (JNPR), Apple (AAPL) and Apache (APA).

He was bearish onUniversal Display (PANL) and AmeriGas Partners (APU).

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio includedWalgreen's (WAG),Nike (NKE),Waste Management (WM),International Paper (IP) and General Mills (GIS).

Cramer said this portfolio was "perfect."

The second caller's top holdings included Southern Company (SO),United Technologies (UTX),Electronic Arts (ERTS),Conoco-Phillips (COP) and Discover Financial (DFS).

Cramer said that this portfolio was also properly diversified.

The third caller had Garmin (GRMN),Citigroup (C),Walt Disney (DIS),Verizon (VZ) and Apple (AAPL) as their top five stocks.

Cramer said this was a terrific portfolio that will be able to tough it out in any environment. To contact the writer of this article, click here: Scott Rutt.

Follow TheStreet on Twitter and become a fan on Facebook.

To submit a news tip, send an email to: tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, clickhere.

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

Related Articles:

Sell Silver Dollars for More By Following These Guidelines

Dion's Friday ETF Winners and Losers

Tags: 2012 Agriculture Stocks ,Agriculture Stocks For 2012 ,Hot Agriculture Stocks To Buy ,Hot Stocks To Buy In 2012 ,Best China Stocks 2012