IGI Laboratories Inc. (IG) Enters Long Term Strategic Partnership with Medimetriks Pharmaceuticals

IGI Laboratories Inc. (AMEX: IG ), which engages in developing, manufacturing, filling, and packaging topical semi-solid and liquid products for cosmetic, cosmeceutical, and pharmaceutical customers in the US, announced that it has entered a long term strategic partnership with Medimetriks Pharmaceuticals, Inc.

This strategic partnership names IGI Laboratories as the developer and manufacturer of a family of prescription topical drug products, which are owned by Medimetriks Pharmaceuticals. Also, as a part of this longterm partnership, Medimetriks has designated IGI as its authorized generic distributor of select products in this line.

Medimetriks is expected to launch its new line of prescription topical brands in the second quarter of 2012. IGI Laboratories expects to begin authorized generic distribution of certain of those products shortly after.

IGI's Chief Executive Officer, Charlie Moore, said, "This marks a significant step for IGI Laboratories as it expands into a fully-integrated developer and manufacturer of prescription topical pharmaceuticals. This partnership provides IGI the opportunity to enhance our relationship with a strong brand marketer as well as providing marketing opportunities as the authorized generic. Further, it complements our key corporate initiative, to continue to file our own Abbreviated New Drug Applications (ANDAs) and to establish a presence in the generic pharmaceutical arena. We appreciate the confidence Medimetriks has shown in IGI."

Bradley Glassman, Chairman & CEO of Medimetriks, stated, "We have been very impressed with IGI, its staff and their commitment to customer service. IGI's investment into its facilities the past few years is impressive and has created a solid foundation for the future. IGI and Medimetriks are ready for this partnership, which we believe is value-creating and a strategic catalyst for both of us."

Medimetriks Pharmaceuticals Inc. is an independent specialty dermatology and podiatry company. Medimetriks ! operates to develop, acquire, license and commercialize innovative prescription skincare brands that fill the unmet needs in the podiatry and dermatology markets.

IGI Laboratories, Inc. operates to develop, manufacture, fill, and package topical semi-solid and liquid products for cosmetic, cosmeceutical, and pharmaceutical customers in the United States. Its products are used for various skin conditions, including the treatment of symptoms of dermatitis, acne, psoriasis, and eczema. The company was formerly known as IGI, Inc. and changed its name to IGI Laboratories, Inc. in May 2008. IGI Laboratories, Inc. was founded in 1977 and is based in Buena, New Jersey.

Article written by QualityStocks �� Visit www.QualityStocks.net for more emerging growth companies to discover and evaluate.

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Ten Reasons To Fear And Loathe Markets In 2012

1. European Sovereign Debt? is a greater burden on the economies of Italy and France than the debt overhang in? the U.S. Italy has $2.46 trillion of debt to a $2 trillion GDP. As Vice President Biden puts it “We did our bailout. They’ve got to do their bailout.”? The posturing has been limited to letting nations borrow cheaply to add on more debt so as not to default.

2. The ramification? for the US? from Europe is? a reduction of 1% growth in US GDP– which means much less growth than might have been expected. This, in turn, puts added stress on valuations in our financial markets, where? multiples of earnings are expected to slide as investors run away from risk-on assets.

3. Continued pressure on the? earnings and book values of both European and US banks. This can be seen in the way bank shares have traded this year, with global banks getting pounded, and only regional banks with strong balance sheets being favored.

4. Continued? selling pressure on the prices of key commodities like oil, copper and iron ore due to expectd slowness i the global economy.

5.? The imbecility of extending the payroll tax deduction for only two more months– a horrendous sign of? political weakness with dire economic ramifications.

6. Residential housing market still mightily impaired and not expected to recover for another 3 years. Still many millions of homes where mortgage debt greater than the market value of the homes.

7. Antipathy individual investor for long term equity investing. Rise of the short-yterm investor such as hedge funds using leverage, requiring volatility, better informed than the public investor.

8. Expectation reduction $1.2 trillion from US budget over next 10 years. Can only mean less money in circulation, less income to invest, lower GDP, less economic growth rate. This is the reality being denied by most investors.

9. Overall theme of? deflation, deleveraging can only mean lower asset prices.

!

10.? Chance of social unrest in China, upheaval that affects move to consumer economy,? and lack of lersadership from 10% of global economy.

 

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Abu Dhabi May Reach for Checkbook Again After Aldar¡¯s $9.8 Billion Bailout

Abu Dhabi, the oil-rich sheikhdomthat spent 36 billion dirhams ($9.8 billion) bailing out itsbiggest developer in 2011, will probably reach for its checkbookagain as property companies in the United Arab Emirates face astalled market and deadlines to repay debt.

��It��s fair to think of Abu Dhabi as a backstop in a worst-case scenario, because a big default would be too tough of anoption now and would damage confidence,�� said Saud Masud, ananalyst at Dubai-based Rasmala Investment Bank Ltd. ��A real-estate recovery could take a long time, even if the bottom washit in the next 12 months.��

Abu Dhabi, holder of 7 percent of the world��s proven oilreserves, contributed to a $20 billion financial rescue ofneighboring Dubai in 2009 and bailed out developer Aldar PJSCtwice last year. While the sheikhdom��s cash will help propertycompanies stay solvent, many will struggle to revive profit asDubai��s real-estate slump stretches into its fourth year and AbuDhabi puts large parts of its redevelopment plan on hold.

The companies most likely to need state help will bedevelopers that relied on selling properties before they werebuilt to fund construction, which is most of them, according toArqaam Capital analyst Mohammad Kamal. Businesses with the bestprospects are those with contracts in Saudi Arabia, Qatar andKuwait, he said.

Real-estate values have fallen more than 60 percent inDubai and 45 percent in Abu Dhabi from 2008 peaks after theglobal credit crisis caused banks to curtail lending andspeculators left the market. Developers completing contracts aresupplying thousands of homes and offices at a time when demandis dropping.

No Improvement Seen

��The trump card over the next 12 months will be theincoming supply in both Dubai and Abu Dhabi,�� Kamal said in aninterview. ��If that gets delivered, we see no improvement forthe price or rental scenarios in either market without aresumption of macroeconomic growth, job creation and mortgagelending.��

Both Dubai and! Abu Dha bi have been striving to become lessdependent on oil revenue by developing homes, hotels, officesand tourist attractions through a combination of state-owned andpublicly traded companies that raised funds from investors,international debt markets and buyers prepaying for homes. AbuDhabi and the U.A.E. federal government increased theirfinancing role after the credit crisis caused lending in theregion to dry up.

Abu Dhabi has a track record of keeping companies afloatand a big default would be ��difficult to show the world,�� saidHans Zayed, head of research at Rasmala. ��Anything that hingeson real estate faces difficulty at the moment.��

Past Support

Moody��s Investors Service highlighted Abu Dhabi��s record ofsupport in Dubai and said the emirate is likely to continuebacking its neighbor by rolling over the Dubai Financial SupportFund due to mature in 2014, according to a Dec. 5 note. Moody��sexpressed concern about the timeliness of further aid after aNakheel Islamic bond was repaid at the last minute following the2009 bailout.

U.A.E. developers face debt-repayment deadlines this year.Aldar has 2.2 billion dirhams due and Nakheel PJSC, builder ofDubai��s palm-shaped islands, needs to repay 5.8 billion dirhams.Union Properties PJSC (UPP) has 429 million dirhams maturing thisyear, according to data compiled by Bloomberg. Abu Dhabi��s $4.6billion bailout of Aldar on Dec. 29, the second of the year,helped ease concerns about the company��s borrowings, Moody��ssaid in a note that day.

Debt Deadlines

Dubai Holding Commercial Operations Group LLC has $500million of debt maturing in 2012, Moody��s said. The company��sDubai Properties Group unit suspended construction on a Tiger Woods-designed golf resort last year, citing a unfavorableluxury property market.

For Aldar, a return to profit wasn��t enough to avert abailout as a debt deadline loomed. The company in Novemberreported third-quarter profit of 144 million dirhams comparedwith a year-earlier loss of ! 731 mill ion dirhams.

��In Aldar��s case, there was a clear need for debt reliefand a liquidity injection,�� Kamal said. ��In other cases, thegovernment backing has been less direct but equallysupportive.��

One example is a decision by Abu Dhabi��s Urban PlanningCouncil to award contracts for 7,500 homes, he said. Sorouh RealEstate (SOROUH), the emirate��s second-largest developer, along withsmaller private builders such as Tamouh Investments, RoyalDevelopment Co. and Al Qudra Real Estate received contractstotaling 13.5 billion dirhams.

Stocks Slide

Aldar was the third-worst performing stock in the 65-memberBloomberg EMEA Real Estate Index over the last 12 months with a65 percent drop. Sorouh was seventh from the bottom afterfalling 54 percent.

Aldar, 18.9 percent owned by Abu Dhabi before the bailouts,is a special case because the company carried out much of thegovernment��s infrastructure work and built tourist attractions,Rasmala��s Zayed said. ��If there are other bailouts, I don��t seeanything on the scale of Aldar,�� he said.

Emaar Properties PJSC (EMAAR), Dubai��s biggest developer, reporteda 34 percent decline in third-quarter net income as apartmentsales dropped by 86 percent. Nakheel reported first-half profitof 526 million dirhams in December without giving comparativefigures. The company, which received $8.6 billion after AbuDhabi bailed out Dubai, wrote down the value of properties by78.6 billion dirhams since 2008.

Abu Dhabi isn��t only helping developers. Investment armMubadala Development Co. agreed in March to provide 3.1 billiondirhams to National Central Cooling Co., an air conditioningcompany known as Tabreed, as part of a recapitalization.

Master Plan

Abu Dhabi, the richest and largest of the seven emiratesthat make up the U.A.E., plans to invest $500 billion inindustry, tourism and culture to increase non-oil revenue to 64percent of the economy from an average of 41 percent from 2005to 2007. In 2005, the sheikhdom opened its ! property market toforeign buyers and began building homes, offices, malls, hotelsand tourist attractions on Saadiyat Island, Yas Island, Al ReemIsland, Al Raha Beach and the city center.

Since the global credit crunch, U.A.E. developers suspendedor canceled around $500 billion worth of projects, twice as muchas in the other five Gulf Cooperation Council countries,Arqaam��s Kamal estimates. In Abu Dhabi, developments valued atabout $30 billion have been put on hold, including branches ofthe Louvre and Guggenheim museums, the MGM Grand Abu Dhabi hoteland the zero-carbon headquarters of renewable energy companyMasdar.

��Back to Health��

��The emphasis right now seems to be on addressing financialproblems at entities and nursing them back to health,�� saidGiyas Gokkent, group chief economist at National Bank of AbuDhabi PJSC.

Kamal said residential values are likely to drop another 10percent to 15 percent as 20,000 homes are completed in Abu Dhabiand another 25,000 in Dubai. He said a similar number ofproperties is scheduled for completion in both markets in 2013.

Although Abu Dhabi��s government hasn��t announced anychanges to its development blueprint, called Vision 2030, sinceit was first published in 2008, a substantial proportion of theprojects expected under the plan are now on hold while a reviewof their economic viability is underway, Kamal said.

��The 2030 plan will go ahead by and large, but within thatthere will be a refocus,�� Gokkent said. ��The fundamentalquestion is the profitability of various entities and whether itmakes sense to go into a particular activity.��

Reviving the Plan

The plan foresees the population growing to as much as 5million by 2030 from an estimated 1.6 million in 2008. Thegovernment may revive some of the suspended projects if itconsiders them essential in the long term. Profitability may notbe the only factor in deciding whether to restart work.

��Some projects will probably never make any money but aredeemed imp! ortant f or Abu Dhabi to attract investment or todiversify the economy,�� Zayed said. ��In Dubai, building thepalm was never going to be economically viable, but it did putDubai on the map and helped it attract investments.��

Abu Dhabi��s Urban Planning Council didn��t respond toquestions on whether the 2030 plan is on track when contacted byBloomberg. Calls and e-mails to Abu Dhabi��s Department ofFinance weren��t returned.

��Projects that are real estate related or those deemed notan immediate priority may be phased in over time, given thatthis is a long-term plan,�� Gokkent said.

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Target Copies Best Buy Model With Apple Boutiques

Target (NYSE:TGT) plans to install Apple (NASDAQ:AAPL) boutiques in select stores this year in an effort to boost sales of iPads and computer accessories.

The conception will be tested in 25 stores, which will have a wider assortment of Apple products than the Target stores usually carry, said spokesman Dustee Tucker Jenkins.

Target said “softness” in electronics last month contributed to a smaller-than-expected increase in same-store sales last month. Target will follow the example of Best Buy (NYSE:BBY), which already has Apple-dedicated stations in over 600 stores.

Steve Jobs sought to circumvent selling Apple products in big-box retailers like Target when he created the company’s chain of stores a decade ago. Apple stores are typically placed in high-traffic areas or flagship locations like Grand Central Station in New York and Convent Garden in London.

But the enormous success of Apple products, and their relatively high profit margins compared to other technology, has retailers that have been suffering from depressed sales looking to get in on a sure thing.

��Target is a retailer that I don��t think has a large presence in tech, but it has a good presence in young suburban family shoppers,�� said Daniel Ernst, an analyst at Hudson Square Research in New York. ��It��s the hip, big-box store. It makes a lot of sense and it will give Apple a bigger footprint.��

With only 357 of its own stores in existence at the end of last quarter, Apple definitely stands to benefit from dedicated stations manned by employees trained to sell Apple products. Target and Best Buy can bring the Apple sales model to many cities around the U.S. that don’t currently have Apple stores.

To contact the reporter on this story: Emily Knapp at staff.writers@wallstcheatsheet.com

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

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College Grads, Here’s How to Become Millionaires

photo: elycefeliz?

Do you want to become rich beyond your wildest dreams? The question may seem right out of a late-night infomercial — unless you follow one strategy that may actually help you achieve it: Act poor.

If you do this, you��ll be fast on your way to having a million dollars �� or more. That money can buy you a lot of stuff, of course, which would allow you to act rich and show off in no time. But if you��re smart, you��ll use it to buy freedom and give yourself options that the rest of your graduating class won��t have because they just weren��t as smart coming out of the box.

What do I mean by ��act poor?�� Pretty much act like you have for the past four years. Maybe even live with Mom and Dad for a year or so, promising that you��ll tell them when you��re coming home at night and help with the dishes. (As a parent, I had to say that.) The point of keeping your expenses low is to save your socks off.

Your friends probably won��t be doing this. The moment they get jobs, they��re going to want a better car; fewer roommates; dinners on the town. And that��s ever so tempting to do since you��ve likely suffered through lean years as a college student. And that new job you��re getting could allow you to pay for some luxuries, even if it doesn��t pay a lot.

But there��s a great pay off to living like a college student. If you manage to save really prodigiously for just a couple of years, you can build an emergency fund that will tide you over when times are really bad. And you can get started on long-term stock market investing at the best possible time.

How could I possibly say that this is the best possible time to be investing in the stock market, when stocks have gone nowhere for a full decade? I��m a student of the market, the author of Investing 101 and can say with some authority that the market��s miserable decade-long performance is exactly what spells huge opportunity for you.

A company called Ibbotson Associates has been! compili ng data on investments for decades. Let me throw a few of their statistics at you so you can understand why I��m so bullish �� and particularly bullish for those of you who get to start investing now.

Average stock market returns from 1926 to the present work out to 9.6% for big company stocks and 11.67% for small company stocks. But stocks rarely hit that average in any given year. Instead, prices dive and soar, scaring out the faint of heart �� and those who don��t understand why they��re investing. These price swings are often lasting, which is why you never invest short-term money in stocks. Put the rent money in the stock market, and a normal market swing might just send you back to living with Mom and Dad. But over the long run, those downswings are matched by equally rewarding upswings.

Consider: During the decade of the 1920s, big company stocks returned an average of 19.2%, according to Ibbotson �� way above the long-term average. But the next decade was miserable, with returns on big company stocks dropping 0.1% over the 10 year period. In other words, if you invested $10,000, at the end of that decade, you would have a little less than $10,000 and probably feel demoralized. What happened then? In the 1940s, market returns were pretty manic �� alternating between big losses and huge gains. The average return, however, ended at 9.2%. Still, because of the really rotten returns in the 1930s, investors could expect a ��catch-up�� decade and they got it. During the 1950s, average stock returns rose 19.4%.

Stock gains were below average in the 1960s and 70s �� ?up 7.8% and 5.9% respectively; then way above average in the 1980s and 1990s �� up 17.8% and 18.2% respectively. Are you detecting a pattern?

Okay, so the relevant decade for you was the one just completed, when stock prices fell 1% on average, according to Ibbotson. That��s the worst decade in history, which is a really good sign when you��re starting now.

It��s not clear whether your ��catch up�� returns will h! it this year, next year or some time in the future, but the chances are great that you��ll get a stretch of above-average returns. What does that mean in dollars and cents?

For the updated version of Investing 101, I did an analysis of what would happen to somebody who put $1,000 a month into the stock market starting in January of 1970 �� the last really miserable decade for stocks�C and stuck with it for 30 years. The first decade was rotten (5.9% returns), but the next two decades were awesome.

At the end of 30 years, this investor had $4.03 million. If he earned just the average return over that time�C or earned his returns in a different order �� he would have had $1 million less �� $3.08 million to be precise. Why? He had the least at stake when returns were rotten and a lot of money to compound when times got good.

I know $1,000 a month is an insane amount and feels really crazy to you now. You don��t have to save that much to get a big reward; you just have to start saving as much as you can.

But if you get a job where your employer offers a 401(k) plan, it��s not as hard as you might think to save even that stunning $1,000 a month. That��s because your contributions come out before tax, which reduces your out-of-pocket cost because it also cuts your tax withholding, and most employers match your contributions �� some even at 100% on the dollar.

In other words, you contribute $500 and your employer contributes $500. And because your contribution comes out before tax, your paycheck is reduced by just $400 (assuming you pay 20% of your income in state and federal tax).

Think you can��t save that much �� or even at all? Try tracking all of your expenses, suggests Danny Kofke, a special education teacher and author of?How to Survive (and Perhaps Thrive) on a Teacher��s Salary.

Little things like going to lunch each day, instead of packing a sandwich, are likely to cost you about $5 bucks a day, $25 a week and $1,300 a year. The soda that yo! u buy fr om a vending machine is likely $1 more than the one you bought at the store. And, of course, if you put off buying that new car and drive your junker (or take the Metro or bus), you��re likely to save $150 to $300 each month on car payments, too.

��Times are tough to get a job, but if you can start off without immediately getting used to spending how much you��re making, you can get way ahead,�� Kofke said.

This is the formula that Thomas Stanley explains in The Millionaire Next Door and is, in fact, the most reliable way to get rich.?If you play your cards right, you could be the youngest millionaire on your block.

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Wall Street Sets Up To Reverse Wednesday’s Action Amid Mixed Retailing

Maybe it’ll turn out to be ”opposite” day. Another session when the market behaves in exactly the inverse manner that traders expect.

With futures higher, that would mean traders take profits moments into the trading session, and sink market averages shortly after the open. Could happen. Might not. Things have taken a somewhat unpredictable turn.

Wednesday’s session proved itself to be a good example of Wall Street’s ability to confound expectations. Ahead of yesterday’s trading session, futures pointed to a flatter-than-road-kill start to the trading session. It looked for all the world as if Wall Street would bide its time until it got the outcome of the Federal Reserve meeting and the accompanying commentary. Wouldn’t have been surprising. That kind of action happens all the time.

Instead, the market shot out of the gate like Usain Bolt. By the time the market tip-toed up to the release of the FOMC statement, the S&P 500 (GSPC)had posted a 1.5% gain, and wiped out the loss it suffered Tuesday. The index finished the session higher by 1.2%.

After the fact, analysts suggested the marketliked what the Fed had said in its statement: that theeconomy has been levelling off, that it wouldn’t raise rates anytime soon, and that it wasn’t pumping any more capital into its quantitative easing policy of purchasing long-date Treasuries to help keep mortgage rates low, but that it would wind that program down more slowly, stretching it until Octoberinstead of its planned September conclusion.

No question, that’s what the Fed said. And, arguably, that’s all bullish stuff. (The Wall Street Journal took that argument in Thursday’s edition, insisting in an article that the good stuff the Fed is doing now with rates are going to make it more difficult to manage monetary policy down the road.) But the fact is, stocks finishedabout where they were before theFOMC comments came out. Itwas kind of a l! eathery day.

Thursday looks more constructive, and more straight-forward. Futures are pointed higher, but notquite as bullish asthey showed beforeWall Street got a glance at some key data.

Retail salesrecorded an unexpected dropin July, as the declining price of gasoline offset the boost retailers got from the government’s cash-for-clunkers program.For the month, the data showed a decline of one-tenth of one percent, well shy of forecasts that it’d show an eight-tenths of one percent increase. Ex-autos, sales fell six-tenths of one percent; economists had been anticipating a one-tenth improvement.

On the other hand, Wal-Mart Stores (WMT)stillhave moved higher in the premarket, showing a rise of about 2%following its mixed second-quarter financial performance. The world’s largest retailer outpaced profit expectations, posting 88 cents a share, two cents ahead of forecasts. However, its revenue – hurt, in part, by currency translation – declined 1.4%, falling short of estimates.

Its same-store sales – a big X-factor in its performance, since the company stopped providing monthly sales updates after posting its first-quarter results in April – declined 1.2%, instead of the flat to up 3% guidanceWal-Mart gave for the quarter.

It said third-quartercomps could come in flat to up 2%. It did boost the low end of its profit guidance for the year, though it left the high end unchanged.

Shares of Kohl’s (KSS)have retreated 3%. It recorded slightly better-than-expected quarterly results, but guided current-quarter EPSbelow forecasts, and projected that same-store sales coulddrop 3% to 5%.

Treasuries rebounded from an early selloff after those disappointing retail sales dashed hopes the consumer had started spending, and would lever the economy back to growth faster than had been expected. The dollar has improved, and that’s helped to lift crude prices.

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LinkedIn: Is Global Competition A Growing Concern?

Shares of?LinkedIn (LNKD) are moving higher this morning, showing a slight uptick after Collins Stewart initiated coverage of the online professional social networking operator with a recommendation to buy the stock.

The firm’s analysts pointed out the LNKD was “the only company providing passive recruiting at scale,” referring to the site’s ability to grow with its audience. They believe LinkedIn has plenty of room to grow as it has penetrated less than 1% of the $85 billion talent-acquisition market. The social networker has also shown an ability to raise prices without affecting volume, added Collins Stewart.

The investment bank admitted, though, that LNKD’s valuation at 62 times projected 2013 earnings leaves “little room for error.”

LinkedIn went public on May 19th?at a price of $45, soared?over 100% on their first day, and then?received favorable reviews from the underwriters, including JP Morgan.

Earlier this month,?JP Morgan��s Doug Anmuth raised his rating on the sharesto Overweight from Neutral. That came after he had?cut his rating to Neutral, warning that the run-up in price had made shares too expensive.

In the past 30 trading sessions, LinkedIn’s shares have gained almost 3%. In terms of competition, analysts have cautioned that while LinkedIn is the largest professional social network, competitor Viadeo has more users in high-growth countries like China.

Collins Stewart set an $86 price target, short of the north-of-$100 values the company saw in its post-IPO surge.

LNKD was most recently up 0.6% at $62.12 a share, 39 cents higher.

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Oil Supplies & Weak Refining Offer No Oil Gains (OIH, USO, VLO)

The Department of Energy released its weekly Crude Oil and energy inventories this morning.? Despite some supply issues being obvious, there has been no help as investors are looking to lower-risk assets today.? We are watching the key ETFs of Oil Services HOLDRs (NYSE: OIH) and the United States Oil (NYSE: USO) as the two key ETFs and are watching Valero Energy Corp. (NYSE: VLO) for the refining angle.

The biggest drop in inventories this week came from Crude Oil stocks with a drop of -2.988 million barrels down to 354.99 million barrels.? Dow Jones had estimates of -2 million barrels and we had been expecting roughly the same.

Gasoline stocks in the U.S. were up by +409,000 barrels to 222.383 million barrels.? Dow Jones had estimates unchanged from the week before.? We were actually expecting a drop here.

US refineries ran At 88.1% versus 91.2% a week ago. Dow Jones had estimates of 90.6%

Usually distillates do not make a difference, but distillates stocks showed a jump of 3.456 million barrels up to 173.142 million barrels.? Dow Jones had estimates of +1.6 million and we do not usually track these.

Crude is weak with other risk assets after the large stock market drop this morning.? At last look, NYMEX WTI Crude was down $1.72 at $78.53 per barrel.? Despite some supply issues there figures showed today, oil is not showing any gains to speak of.

The Oil Services HOLDRs (NYSE: OIH) is down 3.7% at $102.96 and the United States Oil (NYSE: USO) ETF is down 1.9% at $35.19 as it tries to track crude prices.? Valero Energy Corp. (NYSE: VLO) is our go-to name for refinery stocks as it is a pure-play in refining.? Its shares are faring no better and have listed lower with the market and since that lower capacity figure.? Valero is down 4.65% at $17.15 versus a 52-week range of $15.76 to $21.78.

JON C. OGG

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Make sure you get these all-important variables right if you want to boost your winners this year

It��s often said that baseball is a game of inches. For example, if that fly ball would have been just a few inches higher, it would have been a game-winning home run instead of an inning-ending out. Or if that grounder down the third-base line would have traveled just inches to the right, it would have been a double and not merely a foul ball.

Well, trading is a lot like baseball. Get one thing just a little bit wrong, and it could mean the difference between money in the bank and money out the window.

I realize it��s all too easy for investors to make a mistake and get one or more of what I consider to be three critical variables wrong. I know this because I��ve just about seen it all in the trading game, and admittedly, somewhere in my long-lost trading past, I��ve made these same mistakes myself. So what are these three all-important variables, or Power Principles, as I call them, and how do you make sure you get them right in 2012?

Let��s take a look:

Power Principle #1 — Find the Right Stocks to Trade

On the surface, this is obvious. That��s because no matter how good your trading techniques are, without the right stocks, you aren��t going to make any real money. And though it��s easy to merely state that finding the right stocks is key to your trading success, it��s a quite a bit more difficult to know how to identify those stocks.

Power Principle #2 — Get Into the Trade at the Right Price

After identifying the right stocks to trade, it��s often very important to know at what price you want to buy those stocks. Sometimes, just putting in a market order isn��t good enough. Frequently, a trade is sound only when you can get it under a certain predetermined price. If you really want to make sure your trading is at a high level in 2012, be ��ber-aware of precisely at what point you want to buy a stock. The corollary is to know the price at which you want to sell a stock! — and that leads us to our third and final trading principle.

Power Principle #3 — Know Your Profit Target and Your Loss Target

When you decide to go on a road trip to a specific destination, do you check a map or a GPS unit to see what the best route is, or do you just put the keys in the ignition, hit the gas and start driving in the hope that you��ll eventually get where you need to go? We think it��s prudent to have a navigation plan that maps out your twists and turns down the road to profitable investing. To do this, start by knowing your profit target and your loss target.

On the profit side of the equation, you may want to set a conservative target of 8% above your original buy price. You can extend this price target higher if you want to be more aggressive. But when trading, there��s nothing wrong with capturing a quick 8% in one position. Of course, part of trading is getting a few picks wrong from time to time, and when that happens, you��ll want to limit your downside to just 5%. Think of this limited downside as a little insurance policy that comes via a 5% stop-loss order on all of your trading positions.

Finally, you must realize that nobody can control the external variables influencing the stock market, but what you can control is how you approach every trade. Armed with these three Power Principles, you��ll put yourself en route to winning trading results in 2012.

This article originally appeared on Traders Reserve.

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Manufacturing activity, employment on the rise

NEW YORK (CNNMoney) -- Manufacturing grew at a faster pace in December, according to a closely-watched reading on the health of the sector.

The Institute of Supply Management's survey of manufacturing purchasing managers rose to 53.9 from 52.7. That's a bit better than the 53.4 forecast of economists surveyed by Briefing.com.

Any reading above 50 indicates improvement in the sector.

The survey also showed even stronger growth in its employment reading, as 23% of those surveyed reported increased staffing levels, while only 19% reported trimming their workforce.

The December figures marked the 29th straight month of growth in overall manufacturing, according to the survey.

The ISM survey also found new orders and the backlog of orders growing from November levels. Both are relatively recent turnarounds compared to the longer-term growth in the overall reading.

"All in all, an upbeat report, suggesting that production, orders, and employment in the manufacturing sector ended the fourth quarter on a relatively strong note," said economist Peter Newland of Barclays Capital in a note Tuesday. "This provides encouraging momentum heading into 2012."

But other economists said it's important not to read to much into the end of the year strength. Some of it may have been from businesses scrambling to make big ticket purchases before losing a tax break at the end of the year to write off the cost of that investment more quickly.

And while the fears of the U.S. falling into a new recession this year have retreated with recently improved readings on spending, employment and confidence, there are many headwinds still facing the U.S. economy, particularly from overseas.

"It is hard to see the U.S. economy strengthening this year when the eurozone is on the cusp of a potentially severe recession and when growth in Asia is set to slow," said Paul Dales, chief U.S. economist for Capital Economics. 

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TASER International, Inc Succeeded New Record Year Price - NASDAQ:TASR

TASER International, Inc (NASDAQ:TASR) achieved its new 52 week high price of $5.89 where it was opened at $5.78 UP 0.09 points or +1.56% by closing at $5.85. TASR transacted shares during the day were over 491,872 shares however it has an average volume of 450,919 shares.

TASR has a market capitalization $325.14 million and an enterprise value at $294.39 million. Trailing twelve months price to sales ratio of the stock was 3.50 while price to book ratio in most recent quarter was 3.48. In profitability ratios, net profit margin in past twelve months appeared at -1.46% whereas operating profit margin for the same period at 2.39%.

The company made a return on asset of 1.08% in past twelve months and return on equity of -1.26% for similar period. In the period of trailing 12 months it generated revenue amounted to $91.58 million gaining $1.50 revenue per share. Its year over year, quarterly growth of revenue was 15.60%.

According to preceding quarter balance sheet results, the company had $30.75 million cash in hand making cash per share at 0.55. The total debt was $0.00 billion. Moreover its current ratio according to same quarter results was 4.29 and book value per share was 1.66.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 1.49% where the stock current price exhibited up beat from its 50 day moving average price $4.97 and remained above from its 200 Day Moving Average price $4.48.

TASR holds 55.58 million outstanding shares with 53.47 million floating shares where insider possessed 3.53% and institutions kept 46.30%.

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Is Alcoa the Right Stock to Retire With?

Now more than ever, a comfortable retirement depends on secure, stable investments. Unfortunately, the right stocks for retirement won't just fall into your lap. Let's figure out what makes a great retirement-oriented stock, then examine whether Alcoa (NYSE: AA  ) has what we're looking for.

The right stocks for retirees
With decades to go before you need to tap your investments, you can take greater risks, weighing the chance of big losses against the potential for mind-blowing returns. But as retirement approaches, you no longer have the luxury of waiting out a downturn.

Sure, you still want good returns, but you also need to manage your risk and protect yourself against bear markets, which can maul your finances at the worst possible time. The right stocks combine both of these elements in a single investment.

When scrutinizing a stock, retirees should look for:

• Size. Most retirees would rather not take a flyer on unproven businesses. Bigger companies may lack their smaller counterparts' growth potential, but they do offer greater security.
• Consistency. While many investors look for fast-growing companies, conservative investors want to see steady, consistent gains in revenue, free cash flow, and other key metrics. Slow growth won't make headlines, but it will help prevent the kind of ugly surprises that suddenly torpedo a stock's share price.
• Stock stability. Conservative retirement investors prefer investments that move less dramatically than typical stocks, and they particularly want to avoid big losses. These investments will give up some gains during bull markets, but they won't fall as far or as fast during bear markets. Beta measures volatility, but we also want a track record of solid performance as well.
• Valuation. No one can afford to pay too much for a stock, even if its prospects are ! good. Us ing normalized earnings multiples helps smooth out one-time effects, giving you a longer-term context.
• Dividends. Most of all, retirees look for stocks that can provide income through dividends. Retirees want healthy payouts now and consistent dividend growth over time -- as long as it doesn't jeopardize the company's financial health.

With those factors in mind, let's take a closer look at Alcoa.

?

Factor	What We Want to See	Actual	Pass or Fail?
Size	Market cap > $10 billion	$10.8 billion	Pass
Consistency	Revenue growth > 0% in at least four of five past years	2 years	Fail
?	Free cash flow growth > 0% in at least four of past five years	2 years	Fail
Stock stability	Beta < 0.9	2.09	Fail
?	Worst loss in past five years no greater than 20%	(68.3%)	Fail
Valuation	Normalized P/E < 18	12.03	Pass
Dividends	Current yield > 2%	1.2%	Fail
?	5-year dividend growth > 10%	(27.5%)	Fail
?	Streak of dividend increases >= 10 years	0 years	Fail
?	Payout ratio < 75%	13.4%	Pass
?	?	?	?
Total score	?	3 out of 10

Source: Capital IQ, a division of Standard & Poor's. Total score = number of passes.

With only three points, Alcoa doesn't have the track record that conservative investors prefer to see. With huge share price volatility, sporadic growth, and a big dividend cut in recent years, the company's low valuation seems quite justified.

Alcoa has a special place in providing an overall read on the economy. Not only does the aluminum giant tend to follow the ups and downs of the business cycle, but it also reports very early every earnings season. As a result, investors see the company as a bellwether for the entire stock market's health.

Right now, that connection to the overall economy is hurting Alcoa. Late last month, fellow Fool Morgan Housel noted that Alcoa and General Motors (NYSE: GM  ) could be among the hardest hit if the economic recovery has in fact ended. On the other hand, with the stock price so low, anything short of a double-dip recession could lead to gains.

Still, as poor as Alcoa's numbers look, they may be inflated. Revelations of Goldman Sachs (NYSE: GS  ) and its practice of warehousing aluminum ingots may have boosted profits of not only major producers like Alcoa and Rio Tinto (NYSE: RIO  ) but also smaller producers Century Aluminum (Nasdaq: CENX  ) and Kaiser Aluminum (Nasdaq: KALU  ) .

Despite Alcoa's presence in the Dow Jones Industrials (INDEX: ^DJI) and its good overall reputation, retirees and other conservative investors can't be happy with all the uncertainty associated with the stock. Until the dust clears, you'd be better off looking for mo! re stabl e stocks for your retirement portfolio.

Keep searching
Finding exactly the right stock to retire with is a tough task, but it's not impossible. Searching for the best candidates will help improve your investing skills, and teach you how to separate the right stocks from the risky ones.

Add Alcoa to My Watchlist, which will aggregate our Foolish analysis on it and all your other stocks.

If you want to retire rich, you need to be confident that you've got the basics of your investment strategy down pat. See if you're on track by following the 13 Steps to Investing Foolishly.

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France Bonds Sell on Higher Yields

Investors still have an appetite for French bonds. A Thursday auction of 10- to 30-year sovereign debt saw higher yields, but buyers were ready to open their wallets nonetheless. Although stocks and the euro were both lower in morning European trading, markets seemed not quite as nervous as they could be with France's triple-A rating hanging in the balance.

Reuters reported that concerns about the auction's outcome had risen on worries that banks would have a hard time finding sufficient capital to fix their balance sheets. Italy's UniCredit sold shares at a 43% discount on Wednesday, as reported by AdvisorOne.com, and its shares fell, fueling more fears.

However, while not outstanding, the Thursday sale was viewed as positive. France sold 7.96 billion euros ($10.3 billion) of 10- to 30-year bonds at the auction, at the top of its projected range. Michael Leister, a strategist at DZ Bank in Frankfurt, Germany, was quoted saying, "[The French auction result is] nothing to get excited about. But, at the same time, it should be enough to dispel concerns with regards to France's funding capacity for the time being."

Traders are concerned about the amount of eurozone debt maturing in 2012, particularly from Italy. Richard McGuire, senior fixed income strategist at Rabobank in London, said in the report, "Given the clear risk of an imminent ratcheting up of market tensions as Italy's February-April redemption hump looms closer, today's sales should be seen as a successful battle rather than in any way determining the outcome of the war."

Germany sold 4.06 billion euros of 10-year bonds on Thursday as well, at its first auction of the new year.

Back-to-School Budgeting Lessons

photo: Bloomington Salvation Army

Once high schoolers go to college, they��ll manage their own money. And without the help of their relatives, what are the chances they will be prepared to do so?

Less than half of all US states have personal finance education requirements in high school, according to this Jump$tart map of State Financial Literacy Requirements.?Only four states require a full semester.

If your child or other family members are entering their senior year of high school and you worry about how they��ll manage their money when they head to college, use back-to-school shopping as a trial run for college budgeting. If you��re not the teen��s parent, you may ask the student��s parents to get involved and offer to help administer the exercise.

Lesson 1: Setting a Budget

Start by sitting down with your teen and setting an overall budget for back-to-school expenses. That should included school supplies, clothing, books and initial costs of extracurricular activities. An incentive you can use for budgeting for supplies offering to apply ?unspent cash towards fun activities or clothing.

Lesson 2: Comparison Shopping

* Books

While it��s unlikely teens will buy textbooks, it is very likely that they will need to buy books for various classes. Before purchasing a book, ask them to provide you or the supervising parent with five comparison prices from online and offline outlets.

* Supplies

Students should sort through online and offline sales flyers for the best deals on pens, pencils, notebooks, etc. In order to budget accurately, contact the school for a recommended supply list first.

* Clothing

For most teenagers, this is the fun part. Turning it into an educational activity may down the mood a little, but over the long term, it will pay off. (This also might be a good time to t! hrow in the “One day you’ll thank me” bit.

With your student, put together a list of what they need (new jeans? how many new shirts and tops?) and the amount of money you can spend. Don’t let them add allowance money to make up the difference for extra or more expensive items. ?Asking your teen to provide receipts for transactions eliminates this temptation.

* Extracurricular activities

Whether your teens plan on participating in drama, debate, football, or cheerleading, contact the coach or teacher first to find out how much money you will need to set aside for this budget category.

Let��s say your teen plays basketball and is on the debate team.?One basketball uniform costs $249 (the estimate is based on numbers from the National Federation of State High School Associations�� publication High School Today). That includes $89 for a custom jersey, $74 for?custom shorts?, $6 for socks and $80 for shoes. According the NFHS Assistant Director John Gillis, you will have to buy one uniform for home games and one for away games. So your total for two uniforms and one pair of shoes is $418. Not exactly chump change.

For debate, we��ll use an example of a student who lives in one of the US States where computers are allowed at tournaments. According to NFHS Fine Arts Director Kent Summers, one quarter to one third of all states allow computers. So if the student buys a business suit for $100, a laptop for $400, a spare laptop battery for $50, a USB key for $10, and a backup file system and office supplies in case of computer failure for $100. The total cost is $660. That could easily double or triple if you allowed your child to splurge on a more expensive computer.

Lesson 3: Debriefing

At the end of this exercise,?your teens may have money left over to spend on additional activities. Or they may have had a difficult time buying everything needed. Go over what happened in ea! ch spend ing category in detail.

It��s best that high schoolers learn the basics of budgeting now, with the understanding that once they’re off to college they’ll need to work with numbers on a much larger scale. Back to school shopping may involve hundreds of dollars, but managing college expenses will require budgeting with thousands of dollars each semester.

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An Examination Of The Competition-Geared Edge To Be Reaped With Cloud Hosting

There are several hosting alternatives accessible by users today. Virtual private servers, dedicated servers, cloud servers and shared servers are the alternatives to select from. With these, cloud hosting is the most recent alternative and is expected to bring about a change in the hosting business. It has been hailed as an excellent option that is capable of serving users at all levels and with varying demands on capacity and resources. This is not the same as the other alternatives which can just serve a particular part of the market.

Shared servers are of less capacity and are mostly used by beginners and other customers who require fewer resources. But dedicated servers are for high capability customers who need numerous resources. Cloud servers provide quality services because they can easily server customers on either extreme.

More or less of each single cloud review shares a message of good experience that users have had with cloud hosting. This is not to say that cloud hosting is a perfect technology, however it must be said that cloud hosting reviews show that it is far more superior to other hosting options. Regardless of the area of comparison that you settle on, it is very likely that the cloud server will out do other types of servers. Continuing improvements to the technology are expected to result in a far more superior server option as compared to all other options that are currently available. Cloud hosting assessment to other servers in the part of fees illustrates that cloud servers are a much low cost alternative. As it is likely to pay cheaper for other choices similar to shared hosting at the end of the month, worth for money is assured with cloud hosting. The truth that you just pay for resources used when running a cloud server shows that you have no unused or wasted resources. On top of this, the outstanding scalability of cloud computing signifies that very little excess capability is needed. When required, capacity can be rapidly increased.

Due! to the many excellent benefits available through cloud hosting services, there has been a significant uptake by clients in many parts of the world. This has resulted in stiff competition between providers who have used all possible angles to get more clients on board. Cloud hosting comparison of some leading providers shows that they are doing everything possible to win over more clients to their services. Safety, pricing, capacity and support are some of the major areas where providers have concentrated on.

Looking at top cloud server providers such as Rackspace, Amazon and Relia Cloud shows competition is very tight when it comes to pricing. Although different providers do not give servers with the same capability and computing resources, they are equal.

Cloud hosting review rewriters have had to base their rating of the different providers supplementary services such as support since the basics are very similar. Such high standards in the provision of cloud hosting services are good news to users as they can expect constant improvements in service delivery.

Locate the cloud hosting review that will change your business at Cloudism. Cloud hosting reviews continue to show why it is a top method of hosting that will keep on growing

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How To Use Japanese Candlesticks In Forex Trading

In the 1700s a Japanese man named Homma, a trader in the futures market, developed a method of technical analysis to analyze the price of rice contracts known as candlestick charting. Candlestick charts display the high, low, open, and close for a commodity each day over a specified period of time, in a format similar to a bar chart, but in a manner that maximizes the relationship between the opening and closing prices.

A narrow line shows the day's price range. A wider body marks the area between the open and the close, referred to as real body. If the close is above the open, the body is white or green (not filled); if the close is below the open, the body is black or red (filled). Steve Nison is normally credited with popularizing candlestick charting in the west and is recognized as a leading expert on how a trader might interpret the readings.

Candlesticks provide specific visual cues that make understanding price movement easier. Trading with Japanese Candle Charts allow speculators to better comprehend market feelings. Offering a wider range of information than traditional bar charts candlesticks give emphasis to the relationship between close price and open price.

Traders who use candlesticks are likely to more quickly identify different types of price action that tend to predict reversals or continuations in trends. Furthermore, combined with other technical analysis tools, candlestick pattern analysis can be a very useful way to select entry and exit points.

Candlestick charts are much more appealing and understandable than a standard two-dimensional bar chart. There are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period.

There are multiple forms of candlestick chart patterns:

White candlestick - signals uptrend movement

Black candlestick - signals downtrend movement

Long lower shadow - bullish signal

Long upper shadow ! - bearis h signal

Hammer - a bullish pattern during a downtrend; Shaven head - a bullish pattern during a downtrend;

Hanging man - bearish pattern during an uptrend

Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade;

Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade;

Shooting star - a bearish pattern during an uptrend

Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns

Spinning top black - neutral pattern, meaningful in combination with other candlestick patterns

Doji - neutral pattern, meaningful in combination with other candlestick patterns

Long legged doji - signals a top reversal

Dragonfly doji - signals trend reversal

Gravestone doji - signals trend reversal

Marubozu white - dominant bullish trades, continued bullish trend

Marubozu black - dominant bearish trades, continued bearish trend

Candlestick charts are a visual aid for decision making in stock, forex, commodity, and options trading.

This is a very simplified primer on Japanese Candlesticks.

If you are not interested in this much detail I suggest that you research automatic Forex Trading systems.

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Is Texas Instruments Good Enough for You?

Margins matter. The more Texas Instruments (Nasdaq: TXN  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Texas Instruments' competitive position could be.

Here's the current margin snapshot for Texas Instruments over the trailing 12 months: Gross margin is 51.3%, while operating margin is 28%, and net margin is 20.8%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where Texas Instruments has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter. You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.

Here's the margin picture for Texas Instruments over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

Here's how the stats break down:

• Over the past five years, gross margin peaked at 53.6% and averaged 51.1%. Operating margin peaked at 31.5% and averaged 24.7%. Net margin peaked at 30.5% and averaged 20.4%.
• TTM gross margin is 51.3%, 20 basis points better than the five-year average. TTM operating margin is 28.0%, 330 basis points better than the five-year average. TTM net margin is 20.8%, 40 basis points better than the five-year average.

With recent TTM operating margins exceeding historical averages, Texas Instruments looks like it is doing fine.

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

• Add Texas Instruments to My Watchlist.

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How Long Until Producer Prices Drop To Consumer Prices? (TLT)

This morning we saw the release of the Producer Price index, or wholesale inflation.  Inflation is the key word today.  The headline PPI number for November came in at +3.2%.  The core-PPI after you strip out food and energy (and whatever else is volatile) was up only +0.4%.  Both were much higher than the approximate 1.6% headline estimate and the +0.2% core estimate.

But there is a real problem here.  The core year over year headline PPI is +7.2% and the core year over year change is +2.2%.  Energy prices were up 14.1%, ouch.

This number seemed like the highest I could recall and there is a reason.  This looks like biggest gain in over 30 years.  Since the late 1980′s I have always seen the rule that producers have a hard time passing price gains down to consumers, but when you see numbers like this you can’t expect that to stay the case forever.

Imagine how high these numbers would be on the core rate if the Labor Department told the truth and if their computers were accurate.

The 10-Year Treasury Note closed out with a 4.08% yield yesterday.  The yield this morning is 4.14%.  The iShares Lehman 20+ Year Treasury ETF (NYSE:TLT) is also indicated slightly lower to mirror lower treasury prices and higher yields, although it hasn’t traded yet.

Jon C. Ogg
December 13, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

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2011: A Great Year for Brookfield Infrastructure

We're hitting the end of 2011, and it's a great time to look back on the performance of Brookfield Infrastructure Properties (NYSE: BIP  ) , which enjoyed a very good year. This limited partnership is a spinoff of Brookfield Asset Management (NYSE: BAM  ) , one of the sharpest investors around.

A few Foolish facts about Brookfield Infrastructure

Year-to-Date Stock Return	34.0%
P/E	7.3
Dividend Yield	5.2%
1-Year Revenue Growth	107.0%
CAPS Rating (out of 5)	*****

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

For a stock that investors should love for its yield, Brookfield Infrastructure turned in some mighty good capital appreciation in 2011. That's part of the appeal of investing in a company that operates something like an infrastructure fund, picking up attractive assets at good prices -- one of the reasons it made our list of 11 incredible dividend stocks earlier this year.

If you love the hefty dividends from utilities such as Duke Energy (NYSE: DUK  ) or Southern Company (NYSE: SO  ) but would like more diversification, you should love Brookfield Infrastructure. The company owns assets across industries and across the world, making it a well-diversified play on global growth. It has stakes in ports, timberlands, power transmission assets, coal terminals, and railroads, among others. Like utilities, these businesses offer high barriers to entry and the diversification means t! hat you' re not completely exposed to freak events such as the Missouri tornado that wiped out Empire District Electric (NYSE: EDE  ) and its meaty dividend (at least temporarily).

And this year, like last, Brookfield Infrastructure added to its trove of assets. The company offered about $417 million in new shares in order to snap up two Chilean toll roads and fund the growth capital expenditures on its Australian railroad. Given its track record of strong capital allocation and its backing from Brookfield Asset, I'm happy to see the company make acquisitions.

Even better, with this diversification and smart capital allocation, you get a company that yields more than most utilities:

Company	Yield
Brookfield Infrastructure	5.2%
Duke Energy	4.6%
Southern Company	4.1%
National Grid (NYSE: NGG  )	5.9%
Exelon (NYSE: EXC  )	4.8%

Source: S&P Capital IQ.

But like those utilities, Brookfield Infrastructure has a high level of cash flows represented by regulatory or contractual frameworks -- 80% as of the latest quarter -- providing the company with high-quality revenue. And that stability means the company should continue to perform well in 2012, despite an uncertain economic climate.

With its goal to increase its payout by 3%-7% annually, and a total return goal of 12%-15% annually, Brookfield Infrastructure looks like a great place to be for the long term, even if there are bumps along the way.

I think Broo! kfield I nfrastructure has what it takes to rock 2012, but our analysts have selected a different stock that they believe is poised for tremendous growth in 2012. Find out which company that is in our new free report: "The Motley Fool's Top Stock for 2012." Thousands have already requested access and it'll be available for only a limited time. So get access while you can -- it's free.

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Nasaq Hot Stock; AeroVironment Shares Spike on Solid Earnings and Outlook

AeroVironment Inc. (NASDAQ: AVAV) shares surged nearly 12% to $31.88 in today’s mid-day trading, powered by its fiscal third quarter 2011 results reported yesterday after market close.

Revenue for the third quarter of fiscal 2011 was $84.4?million, up 39% from third quarter fiscal 2010 revenue of $60.9?million.

Income from operations for the third quarter of fiscal 2011 was $15.7?million, up 85% from third quarter fiscal 2010 income from?operations of $8.5?million. The increase in income from operations was primarily due to a higher gross margin of $10.6 million, partially offset by higher selling, general and administrative (SG&A) expense of $0.7 million and higher research and development (R&D) expense of $2.7 million.

Net income for the third quarter of fiscal 2011 was $11.5 million, or $0.52 earnings per diluted share, up 76% from third quarter fiscal 2010 net income of $6.5?million, or $0.30 earnings per diluted share.

For fiscal year 2011, AeroVironment said it now expects to achieve revenue growth of 12.5% to 15% over fiscal year 2010, which is the upper half of its prior guidance range; the company also reiterates its guidance for an operating income margin between 10% and 12% of revenue.

AeroVironment develops, produces and supports unmanned aircraft systems. The company also develops efficient energy systems for various government agencies and industries. AeroVironment provides surveillance and intelligence support. The company also produces clean transportation solutions and alternative payload modules. The company serves various types of clients including organizations under the United States department of defense.

AeroVironment reported its total current assets at $245.595 million for the year ending April 30, 2010. Its total assets were worth $281.971 million for the same time period. AeroVironment had valued its total liabilities at $48.551 million. The company ! had repo rted its revenue at $249.518 million and its gross profit for the year at $96.826 million. AeroVironment's net income for the year stood at $20.716 million.

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Stark Advice on Risk Avoidance From Leading Academic

Zvi Bodie has long been a lone wolf in the financial services industry. The Boston University finance professor and veteran risk avoidance advocate, has himself risked being pelted with eggs, or worse, at industry gatherings more disposed to hearing his Wharton nemesis Jeremy Siegel’s message about stocks for the long run.

Now the author of the classic college text on investments has written a new book, out this week, targeted to the general public, and appropriately titled Risk Less and Prosper. In a year in which the U.S. stock market has trounced its world peers with a nearly 0% return, on top of a dismal decade of stock performance, investors’ heightened sense of risk may make them receptive to a message that was tuned out in previous bull markets. In an interview with AdvisorOne, Bodie discussed some of the ideas in his book, co-written with financial advisor Rachelle Taqqu.

How did U.S. investors come to be so risk-prone?

Because of the positive stock market experience of the ’80s and ’90s. People don’t have memories that go back that far, so they thought you can’t lose if you hold on.

But you shouldn’t think you’re going to earn a potential risk premium without taking risk. It was always a crazy idea to think that you could, but that idea was drilled into people’s heads by a whole industry campaign.

The vast majority of investment advisors are telling people: “History proves that in the long run you’re going to do best by staying in stocks. And the worst thing you can do is lose your nerve when the stock market goes down; on the contrary you should be doubling up.”

That conventional wisdom is very comforting to people who have lost money. But everyone has a finite horizon. You can only postpone using the money so long.

If you don’t need the money, you’re investing for future generations or some charity; those are the people who should be taking risks. Ironically, the people who are high-net-worth they’re the ones who make sure they have ironclad guarantees on their standard of living. [Not because they are smarter but because] people don’t like to see their living standard go down.

What is the message of your new book?

In my previous book, Worry-Free Investing, I started out by talking about inflation-protected bonds. In this book, I want them to understand that investing is all about you and your goal. I think we’re going to see a popularization of GDI investing [goal-driven investing].

LDI [liability-driven investing] is popular among institutional investors. LDI is matching your assets to your liabilities. In the individual investor world, the one advisors are concerned about, you don’t have liabilities, you have goals. Those are going to determine what you consider a risky or non-risky strategy. If you can save enough to cover your basic needs and lock them in, I believe that’s what people really want. And that’s a form of asset-liability matching.

Investment advisors don’t talk about asset-liability matching; they talk about diversification. But diversification comes in second. The first thing you want to do is cover your assets. In the book, we call it matchmaking.

Since investing is all about trading off risks and rewards, the natural starting point –the benchmark–is to say, “What if I want to take as little risk as possible?” That is where you should start the process. “Now that I know what it will take in terms of what I have to save, what’s the earliest date I have to retire?”

That involves matching. You might be 100% TIPS in that situation. “So what if I put 20% of my money into stocks? On the upside, that means I can save less or consume more; or I can retire earlier.”

But the downside is you could do worse than if you hadn’t done that. You have to look at worst-case scenarios. You won’t be able to retire till you’re 80. Or you have to save 30% of your income. [The financial services industry says] you have to take risk, but they don’t say that if you do take risk your outcome could be worse than they describe.

What do you think about financial advisors who recommend annuity products as a means of mitigating risk?

I am very much in favor of insurance products, but hey have a cost. So you have to ask the question: Is it worth it? In my view, [annuity products are] a better framing of the real trade-off than ignoring the risk which is what is being done now.

How can investors manage this trade-off between risks and life goals?

The core asset should be a TIPS ladder that is matched to the person’s spending needs. Young people don’t even know what level of consumption they’re going to have. Most of their assets are in human capital. So it doesn’t matter if they put it all in stocks. I’m talking about people over the age of 50 who have to start thinking what they want to lock in in retirement. They have to think of it like insurance, and if they’re putting it in all in TIPS, they’re not paying big fees.

What can financial advisors do to help ordinary investors?

The challenge that advisors face is to turn themselves into life coaches.

The way advisors are currently compensated is through assets under management. Even those who don’t take commissions, the so-called good guys, the fee-only advisors, are basically pretending to manage people’s assets. But most of these people are getting people to take more risks. It certainly is not the case that they’re doing more for the client than if the client would hold 80% of their portfolio in TIPS and 20% in a stock index fund.

If I convince [investors] at an intellectual level [to avoid risk], that’s only half the battle. The issue is how to you get it from the frontal cortex to the brain stem–the autonomic system where your feelings reside. Advisors could help these people.

How should people managing for risk as you advise invest in tax-deferred accounts?

With respect to a tax-deferred account, if you have a person who is investing both in stocks and in bonds, the taxable bonds should be held in a tax-deferred account and the stocks in a taxable account. With stocks, most of the gain is going to come in the form of capital appreciation. First, you can defer gain; the other reason is that inevitably you’re going to have losses in some years and in those you can realize the gain and get the tax-loss benefit.

Why are you often a lone voice calling for this risk-off approach?

If you were to talk to any other finance professor, you would hear the same thing. It’s just that there is this huge gap between the academic world and the advisory world today.

RenaissanceRe Nabs Two Analyst Endorsements

RenaissanceRe(RNR) shares have rallied 15% over the past three months. Two analysts said Friday that the reinsurer's run may continue.

Citigroup analyst Keith Walsh added RenaissanceRe to the investment bank's Top Picks Live list, saying the company is the best-positioned insurer to take advantage of firming rates. In addition, Walsh says RenaissanceRe is primed for strong growth and that Wall Street analysts will likely revise profit forecasts for the company higher in the near term.

Walsh notes that there were approximately 820 natural catastrophe events in 2011 with total insured losses of about $105 billion, making last year the second most costly since 1980. "While these losses were not sufficient to create a hard market, RNR is seeing solid price increases, which we would also define as adequate from an ROE perspective and sustainable in 2012 owing to increased demand for reinsurance," Walsh writes.

Additionally, Walsh said he expects RenaissanceRe to resume share buybacks. "Management has indicated share buy backs could resume beginning in 4Q11, making them one of a handful of underwriters that can write more business and return capital to shareholders," Walsh writes.

In addition to increasing his 2012 and 2013 profit estimates, Walsh reiterated his "buy" rating on RenaissanceRe and raised his price target to $85 from $80. In adding the stock to Citi's Top Picks Live! List, Walsh removed rival insurer XL Group(XL), although Citi still retains a "buy" rating on the stock. Shares of RenaissanceRe closed Thursday at $72.97.

Meanwhile, Wells Fargo analyst John Hall upgraded RenaissanceRe to "outperform" from "market perform," arguing the company has set conservative guidance for 10% growth in its managed cat premiums in 2012. "Additionally RNR has proven that it can utilize multiple capital resources to take advantage of mar! ket oppo rtunities," Hall adds.

Hall also upgraded Travelers(TRV) to "outperform," saying the Dow component is "positioned to capitalize on the improving rates in the primary insurance market." Meanwhile, Hall downgraded Axis Capital(AXS) to "market perform," arguing that a reversion to the mean for the company's share price may be extended due to the transition of CEO John Charman to the chairman position in May.

Hall raised his valuation range for RenaissanceRe to a range of $82 to $86 from the previous range of $72 to $76. He also increased his valuation range for Travelers to $67 to $72 from the prior valuation range of $60 to $65. Axis Capital's valuation range was cut to $32 to $35 from the previous range of $36 to $39.

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