The Easiest Way to Boost Your Income

These days, many investors are pulling out all the stops to pull as much income as they can from their investment portfolios. But with bonds and bank CDs paying very little, you have to ask your stock portfolio to work a little harder if you want to earn the income you're used to in more normal times.

The problem is that not all stocks pay dividends, and even the ones that do don't always give you all the income you need. But you don't have to give up hope if you need to get some extra income from your stocks. Using a simple options strategy involving covered call options, you can turn dividend tightwads into free-flowing streams of cash -- and squeeze even bigger payouts from stocks that already pay decent dividends.

The basics of the covered call
For many, options seem just like calculus or relativistic physics -- hard to understand and potentially hazardous to your mental health. But far from being intimidating or dangerous, covered calls are one of the easiest, lowest-risk strategies you can use.

Covered calls work like this: If you own 100 shares of stock, you sell one call option contract on that stock. The option gives the buyer the right to buy your stock at a set price at any time before the option expires. In exchange, you get an upfront payment called a premium. If the buyer decides not to exercise the option, nothing happens, and you keep the premium. But if the option gets exercised, you have to sell your shares at the agreed price -- although again, you keep the premium as a bonus.

Getting more cash
It's the premium that's the key to the covered call strategy, because it presents the extra income you can earn. Depending on which options you choose to sell, you can get a big income boost even on stocks that already pay dividends. For instance, take a look at how much you can increase the yield on the five biggest dividend payers in the Dow Industrials (INDEX: ^DJI  ) :

Stock	Current Price	Call Option	Option Price	Effective Yield*
AT&T	29.15	March 2012 $35	0.52	7.7%
Verizon	38.05	March 2012 $40	0.48	6.5%
Merck (NYSE: MRK  )	35.26	July 2012 $38	0.98	7.5%
Pfizer (NYSE: PFE  )	19.84	June 2012 $21	0.84	8.3%
General Electric (NYSE: GE  )	16.33	June 2012 $18	0.62	7.5%

Sour! ce: Yaho o! Finance. Prices as of Dec. 5 close. *Effective yield = annual dividend plus option price, all divided by current stock price.

At the same time, you can do the same thing with popular stocks that pay no dividend at all. For instance, with Manitowoc (NYSE: MTW  ) , June 2012 calls with an exercise price of $12.50 sell for $1.20 -- more than 10% of the current share price of $11.37. Writing July $35 calls on Westport Innovations (Nasdaq: WPRT  ) or June $9 calls on Silvercorp Metals (NYSE: SVM  ) would offer similar effective yields right now.

The trade-off
There's no such thing as a free lunch, even with covered calls. If shares soar above the exercise price of the option, then you'll have to sell your shares at the lower price, missing out on a potential home-run swing. But the thing to remember is that you get to pick the exercise price of the option when you choose to sell it -- so you can pick a price that you'd be comfortable selling your shares for no matter what, thereby locking in some extra income at the same time.

Covered calls give you an excellent way to make more income from your stocks. But it's not the only smart strategy you can use. Tomorrow, I'll take a look at how writing put options can let you get in on bargain stocks at the best price possible.

If you like the idea of options but aren't comfortable with your skill level on them, take a look at the Fool's "Options University." It's absolutely free but only available for a limited time, so just enter your email address in the box below to learn more about how options can fit into your portfolio.

Related Articles:

Universal American Shares Dropped - What You Need to Know

American Tower Corporation attained 80.12% earning per share growth in past 5 years �C AMT

Tags: 2012 Cheap Stocks ,Top Cheap Stocks To Watch ,Top Stocks To Invest In ,Top Stocks To Watch In 2012 ,UAM ,Best China Stocks 2012

Cedar Fair Is Not Disney

There's a new sheriff in town at Cedar Fair (NYSE: FUN  ) .

After running the regional amusement park chain since the 1980s, Dick Kinzel retired over the weekend. Matthew Ouimet -- hired as Kinzel's heir apparent last year -- is the new CEO.

Ouimet cut his teeth at Disney (NYSE: DIS  ) , where he spent several years managing Disney's cruise line, resorts, and theme parks.

Ouimet isn't Kinzel, an insider who worked his way up the ranks at the company's flagship Cedar Point amusement park in Ohio. Ouimet is replacing Kinzel because he's an outsider who knows that a theme park can't survive on the turnstile clicks of thrill-seeking teens alone. Cedar Fair needs to do a better job of attracting young families to its gated attractions, and it needs to beef up its technology to make sure that it catches up with the industry.

"We've always got to be known for great thrills," Ouimet said in a recent AP interview. "It has served us well. But I also want to be known for great connections, and that this is where families come together."

Well, Ouimet is going to find out that that's easier said than done.

I've heard this before.

Six Flags (NYSE: SIX  ) wanted to go the family-friendly route when it also tapped a Disney executive -- in this case ESPN rising star Mark Shapiro -- to run the fledgling chain of thrill parks five years ago.

I spent an enlightening day with Shapiro at Great Adventure in New Jersey early in his first season at Six Flags. He broke out some of the tricks that worked at Disney. He beefed up the costumed characters at the park, introduced character brunches, and added family-friendly attractions.

Sadly, his company ran out of money before he could execute his vision. Six Flags filed for bankruptcy, and a new regime took over.

Ouimet knows that Cedar Fair needs to upg! rade its technology.

I love Cedar Point. I'm there every few years to ride its world-class coasters. I was there this summer. The extent of the park's technology is a texting feature that promised to offer daily news and deals, but in reality spit out a lone obvious tip -- and then ignored my unsubscribe requests. Instead of getting wait times at the popular attractions or virtual coupons, I was reminded that I can get discounted park tickets if I stayed on-site (which I was doing already).

Disney has its elaborate FastPass distribution system, where guests can scan their tickets to secure shorter lines on select attractions. Six Flags has a premium Flash Pass gadget that isn't cheap, but creates virtual queues for its most popular rides. Busch Gardens has Quick Queue, where guests in a hurry can pay for quick access to its larger attractions.

Cedar Fair has nothing. It's so old-school that it once tried to roll out a queue reservation system at its flagship park involving stamping return times on patron hands. It figured limiting guests to two stamps -- one on each hand -- would help keep folks out of hot lines. Really. I was there that season a few years ago. You should've seen the mad hand-scrubbing taking place in the restrooms.

Ouimet will succeed on the technological front. It's really hard to go backward. However, it's going to be a harder sell to woo local young families. The parks are filled with plenty of kids rides and plenty of thrill rides, but few themed attractions that the families can experience together.

Cedar Fair also isn't in the same dire financial straits that Six Flags found itself in two years ago, but it's still facing a hefty debt load that isn't getting any lighter as investors clamor for larger payouts.

Ouimet is going to have his hands full next season. Let's hope he's ready for the mad hand-scrubbing that's necessary to see his vision through.

If you like to stay on top of what happens next -- and I'm guessing you do because you're read! ing this article -- how about checking out Motley Fool's top stock for 2012? Spoiler alert: It's not Cedar Fair. However, it is a free report, but only for a limited time so check it out now.

Related Articles:

(GBLHF, TMO, MJGCF, PGN, D) Stock Report from DrStockPick.com

Quiet period ends for ANGI; weak recommendations follow

Tags: Dominion ,GBLHF ,Global Hunter ,Majestic Gold ,MJGCF ,NYSE:D ,NYSE:PGN ,NYSE:TMO ,Progress ,Thermo ,Best China Stocks 2012

Utility company has great growth and a great yield

Utilities are rockin’ the set this summer. So let’s take a look at one that has performed very well for my Strategic Advantage newsletter portfolio in July, rising 4.5% plus the 4.4% annual dividend.

Investors fled to high yielding, stable utilities like Piedmont Natural Gas Co. (NYSE: PNY) through the turbulent 2000-2002 bear market as well as in most of 2007-2008 and this year. PNY shares flat-lined in 2009 when the high-beta stocks ruled, but have proven their worth again in 2009. As a result of taking a year off, essentially, PNY is now trading at a very reasonable valuation.

Piedmont is based out of Charlotte, N.C., and earns 70% of its revenues in that state. The company also operates in South Carolina and Tennessee and serves over 1 million customers. PNY generates $1.55 billion in annual revenue and has a market cap of $1.85 billion.

Natural gas is emerging as a transition fuel as America is slowly weaned off crude oil. The Department of Energy has estimated that the United States has sufficient reserves to meet all of America’s power needs for the next 100 years. Natural gas generates half the carbon dioxide of coal for an equivalent amount of heat.

Historically, natural gas has also been one of the cheapest forms of energy. Its primary use is residential and commercial heating. Because of its efficiency, cost effectiveness, and low carbon footprint, 90% of newly constructed homes use natural gas for heat.

Gas powered appliances are also becoming more popular. They are typically more expensive than their electric counterparts but they have a longer expected life and lower maintenance costs. According to the American Gas Association, a natural gas water heater could heat one bathtub for half the cost of an electric one. Gas can be also used as a transportation fuel here as it is in many other countries, including Brazil.

Unlike natural gas drillers who are dep! endent o n high prices, Piedmont is unaffected by the volatility of gas prices because it can pass along cost increases to customers. The distributor charges customers a rate for the entire year. If natural gas prices spike, PNY charges customers an additional fee. PNY is required by its state regulating body to reduce rates if gas prices fall. This arrangement eliminates most earnings unpredictability and allows the company to earn a higher rate of return than many other gas distributors.

Piedmont is converting houses in the Carolinas to natural gas to mitigate the effects of the housing slowdown. In 2009, the company converted 62% more residences than 2008. The company expects a similar number of conversions this year.

Natural gas prices often fluctuate due to weather and economic conditions, and Piedmont’s acquisition of new storage facilities will give the company greater flexibility to purchase natural gas throughout the year.

Management has demonstrated that it can limit financial risk during volatile industry cycles. All current managers including chief executive Thomas Skains have advanced through the company or have decades of industry experience. Piedmont has grown its dividend every year since 1978, and its debt is rated A by Standard & Poor’s and A3 by Moody’s.

Piedmont is currently priced at 12.6x trailing earnings. Increased adoption of natural gas and a healthy 4.4% dividend should ensure that the stock maintains its current valuation. As investors seek stocks that provide greater stability and income, the stock should trade near its 2009 high of $31 or 21% higher than today’s closing.

I realize that owning utilities is not at the top of every investor’s to-do list, but they have proven to be very good investments over the long haul.? They are still cheap now and can be bought. PNY is a great place to start.

As stated, Jon Markman was recommending Piedmont stock to readers of his Strategic Advantage newsletter at this writing! . For mo re ideas like this, check out his Trader’s Advantage or Strategic Advantage investment advisory services.

?

Triple-Digit Profits No Matter What the Market Does �C You are not at the mercy of the markets. You can start adding triple-digit winners to your portfolio now if you��re ready to embrace the new rules of investing. Let Jon Markman show you how to make money every day in up markets AND down. Download your FREE copy of this report here.

Related Articles:

10 Ways Sports Teams Could Lower Ticket Prices

Just Like Old Times: Consumer Credit Jumps

Tags: baseball tickets ,basketball tickets ,Bruins ,Celtics ,corporate boxes ,fans ,football tickets ,free tickets ,hockey tickets ,MLB ,NBA ,NFL ,NHL ,Pittsburgh Penguins ,pittsburgh pirates ,premium ,Best China Stocks 2012

This Is the Industry That Will Electrify 2012

Click here to follow Jason on Twitter for live tweets and updates from the Detroit Auto Show.

This time last year I was struggling just to secure my itinerary for the North American International Auto Show in Detroit. The NAIAS is where automotive companies from all over the world come to unveil their latest innovations, newest technology, and brightest ideas. Seeing as Detroit has held the event for more than a century, it's understandable why many automakers consider this to be the mother of all auto shows.

I'm sensing a theme here
Last year's show keyed in on two major themes: electric vehicle technology and the rebirth of the American auto industry. To be sure, Ford (NYSE: F  ) and General Motors (NYSE: GM  ) garnered loads of attention. Both presentations had the feel of rock concerts, though if?I had to give a trophy, Ford won going away.

Never before have I witnessed such anticipation and pride as at the NAIAS last year. And lucky for me, I'm going back. I'll be attending the press preview slated for Jan. 9 and 10 and this time I've got my itinerary all set. Maybe I'll even get lucky and score another interview with a big CEO. As I plan my attack, here are some key companies I'm keeping my eye on.

Ford
Last year Ford stole the show, period. With the introduction of the "C" platform, Ford proved it was up to the challenge of cutting costs while producing cars that folks want to drive, and the Focus Electric was the belle of the ball. This year should be more of the same; Ford has the only American vehicle in the running for the North American Car of the Year award. There's also speculation that Ford will debut the 2013 Ford Fusion bright and early, which is sure to keep the chatter going.

General Motors
Simply put, General Motors is still in the middle of a turnaround. The Chevy Volt h! as picke d up some bad press with battery issues and the recent recall of Chevy Sonics due to potentially missing brake pads doesn't do it any favors. Still, GM is a major player in this industry and it plans to debut four new vehicles at the show, including a new Buick Crossover. I'll be excited to see what this big name in automobiles has in store.

Nissan
Nissan (OTC: NSANY) hasn't exactly helped its cause by being absent from the NAIAS for the past three years. While management felt resources were better allocated elsewhere, the announcement that Nissan will in fact be back to the show this year has been well-received, especially considering the increasing focus on electric vehicles. Nissan's Leaf is a pioneer in the movement and has to be the one Nissan vehicle folks can't wait to get their eyes on.

Tesla
Not long ago, Tesla (Nasdaq: TSLA  ) co-founder and CEO Elon Musk came and spoke to us here at the Fool and the man flat-out impressed. He is an extremely intelligent and very driven individual, and while Tesla may still be in its early innings, I would never bet against it. Best-known for its all-electric Roadster, last year management unveiled the Model S prototype at the show as the next step in affordable electric vehicles. With the Model S ready to hit the market this summer, I can't wait to see what the company has its sights set on next.

BMW
It's no accident the German automaker has the 15th most powerful brand in the world. This year BMW (OTC: BAMXF) plans to debut the sixth generation of its popular 3 Series in an effort to boost sales, particularly in the U.S. market. Add to that the focus on the development of the i3 electric car and display of the i8 concept vehicle and BMW is certain to capture a lot of the attention as well.

Prepare yourself
Detroit in January isn't just cold; it's freakishly cold (at least for a South! erner li ke myself). Even my time in Kazakhstan didn't fully prepare me for the weather last year. But other than a jaunt with some Detroit Fools to grab a bite for dinner, I plan on spending as much time as I can inside the Cobo Center, learning as much as possible about what we can look forward to in automobiles. It's going to be the hottest ticket in town, and I'm thrilled to have a front-row seat.

Related Articles:

Attack of the Fine Print - SmartMoney.com

Capital One: The Furthest-Off Island

Tags: 2012 Insurance Stocks ,Growth Insurance Stocks To Invest In ,Growth Stocks For 2012 ,Growth Stocks To Buy 2012 ,Best China Stocks 2012

The Shack’s New Buyback, Sign of No Acquirers (RSH, BBY)

RadioShack Corporation (NYSE: RSH)? has had a buyout premium for some time as reports had been out that buyers from Best Buy Company Inc. (NYSE: BBY) to private equity groups were interested in the stock.? The company just raised the amount under its authorization for share buybacks.? That sounds good and the stock was up initially on the headline data, but this just confirms that the company does not really expect an acquirer to emerge with a solid premium buyout offer.

The company’s board of directors raised the existing buyback plan from $290 million up to $500 million.? The only good news in the implications here is that its “has directed that a significant portion of the repurchase program commence as soon as practicable.”? It may make purchases under one or more accelerated repurchase programs from the open-market or negotiated purchases and the plan does not have an expiration date.

Julian Day noted, “After careful evaluation of the options available to the Company and capital requirements of our business going forward, the Board has concluded that it is now appropriate to devote a part of our significant cash holdings to an expanded share repurchase program.”

“After careful evaluation of the options” and “capital requirements of our business going forward” are not phrases that any real buyout is imminent.? Can it happen?? Sure.? The problem is that the whole way through the buyout rumors is that we heard of fewer and fewer interested parties.? Day also went on to talk about the company’s further growth opportunities and positioning the business well ahead.

RadioShack closed up 1.45% at $19.58 today.? The original after-hours indication was up 2%, but now we have shares indicated lower around the $19.45 level in the after-hours session.? The 52-week trading range is $14.22 to $24.00, although we’d note that this one ran from under $20.00 to the $24.00 high based around the hope of a buyout.? That buyout ha! s kept R adioShack from performing as poorly in share price as Best Buy.

Keep in mind that The Shack’s market cap is only $2.46 billion as of the close.? If any group wanted to buy it, the deal would not be too costly.? It just seems as though no new buyers are there.?? This will shrink the size of the float, but it also makes that $931 million cash from June 30 about $210 million less down the road.

JON C. OGG

Related Articles:

Risk Off For The Day It Appears

Can a cleaner environment create jobs?

Tags: 2012 Bonus Stocks ,Growth Bonus Stocks To Buy ,Growth Stocks To Buy 2012 ,Growth Stocks To Buy For 2012 ,INTC ,Best China Stocks 2012

Tech Biz Roundup: Marvell Inserts into Google TV, AOL Talks Parents

Sony’s (NYSE:SNE) PlayStation Vita sales continue to head downhill in a hurry: Media Create estimates only 42,600 units were sold in Japan starting December 26, down from around 72,000 in the prior week. Nintendo (NTDOY.PK) 3DS units that were sold in the country were much higher than Sony��s hitting around 198,000. Estimations are that the Japanese gaming industry overall declined 8% in 2011.

Google (NASDAQ:GOOG) may have a formal antitrust complaint filed against it from European regulators due to search practices. The European Union?Competition Commission “is to date not in a position to say whether its investigation will lead to issuing a statement of objections,�� it said.

A123 Systems (NASDAQ:AONE) climbs higher. A deal to supply battery packs to VIA Motors was just announced. VIA Motors is a company that builds all-electric versions of popular trucks, vans, and SUVs. VIA claims A123′s battery packs allow it to “package higher power into a compact space.”

Marvell (NASDAQ:MRVL) announces its ARM-based (NASDAQ:ARMH) ARMADA processors have been designed into the latest Google TV (NASDAQ:GOOG) hardware. This displaces Intel (NASDAQ:INTC) chips in the process, and Intel stated in October it was shutting down a division that developed Atom chips for the set-top box market. Google TV will be in the majority of TV sets on sale by summer Eric Schmidt expects.

MetroPCS (NYSE:PCS) suffers the biggest drop in the S&P 500 after reporting it added 197,000 net new users in the fourth quarter, down from 297,000 in the year-ago period. This was far below the analyst consensus, which had predicted 223,000. Churn was 3.7%, up from 3.5% a year ago. Leap Wireless (NASDAQ:LEAP), which is a smaller competitor, said it added in-line 175,000 subscribers in its fourth quarter.

AOL (NYSE:AOL) has spiked a little after announcing a content dis! tributio n partnership with Parenting.com. CEO Tim Armstrong is speaking via webcast at a Citi conference.

Investing Insights: Financial Biz Recap: Alibaba��s Loan, Canadian Bank Downgrade.

To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

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

Related Articles:

Citigroup

Media Digest 8/10/2010 Reuters, WSJ, NYTimes, FT, Bloomberg

Tags: 2012 European Stocks ,C ,Hot European Stocks To Invest In ,Hot Stocks For 2012 ,Hot Stocks of 2012 ,Hot Stocks To Invest In ,Best China Stocks 2012

Asia Markets 1/26/2007 Softbank Up, China Mobile Down

Stocks: (CAJ)(FUJ)(HIT)(HMC)(NIPNY)(NTT)(DCM)(SNE)(TM)(CHL)(CHU)(CN)(PCW)(HBC)

Markets in Asia were down with the Hang Seng off sharply.

The Nikkei was off .2% to 17,422. Bridgestone was up .2% to 2590. Canon was down .5% to 6500. Fuji Film was down 1.1% to 4700. Hitachi was down 1.8% to 815. Honda was down 1% to 4740. NEC was flat at 619. NTT was down 1% to 617000. Docomo was down .5% to 188000. Sharp was down 1.5% to 2000. Softbank was up 2% to 2590. Sony was up 1.4% to 5800. Toshiba was down 1.1% to 797. Toyota was down .4% to 7980. Yahoo Japan was down 1.7% to 47450.

The Hang Seng was down 1.9% to 20.281. Cathay Pacific was up .1% to 20.55. China Mobile was down 4.6% to 72.85. China Netcom was down 3.7% to 18.9. China Unicom was down .7% to 10.78. HSBC was down .3% to 143.6. PCCW was down .2% to 4.67.

The KOSPI was down .8% to 1,371.

The Straits Times was down .9% to 3,081.

The Shanghai Composite was up .9% to 2,883.

Data from Reuters

Douglas A. McIntyre

Related Articles:

Acuity Brands Shares Popped - What You Need to Know

Owens Illinois Inc. Fourth Quarter Earnings Sneak Peek

Tags: 2012 Top Performing Stocks ,AYI ,Top Performing Stocks To Invest In 2012 ,Top Performing Stocks To Own For 2012 ,Best China Stocks 2012

Goldman Sachs, Morgan Stanley Bring Out Chainsaws

Pure-play investment banks Goldman Sachs(GS) and Morgan Stanley(MS) will be under pressure to cut compensation, people and bonuses to boost profits as the outlook for their core capital markets and trading businesses remaining weak heading into 2012.

Their flexibility to do so will be tested when the firms report earnings this week; Goldman is scheduled to report on Wednesday, while Morgan Stanley reports on Thursday.

Analysts ratcheted down fourth-quarter estimates for both Goldman Sachs and Morgan Stanley in the last several months, as it became evident that the weakness in capital markets was likely to stay for some time. Yet, the disappointing trading and investment banking performances from JPMorgan Chase(JPM) and Citigroup(C) in the fourth quarter may have lowered the bar even further.

Investors will be paying attention to management plans to reduce workforce, cap bonuses and defer a greater portion of compensation to the future, all steps that Wall Street has taken in the past to juice up profits when revenues disappoint.

But competitive pressures may prevent banks from cutting too close to the bone and it is quite likely that compensation cuts might not be able to fully offset the declines in revenues in 2011, according to analysts.

Meanwhile, it remains to be seen whether further initiatives on the compensation- and headcount- reduction front will be enough to offset the more long-lasting impact of a changing regulatory environment, one that restricts taking proprietary bets with capital and using leverage to boost returns to shareholders.

2011 may have been a forgettable year for the big banks overall, but the headwinds for Goldman Sachs and Morgan Stanley are particularly intense in 2012.

The European crisis remains a major ov! erhang f or capital market activity heading into the first quarter, usually a seasonally strong one for investment banks.

Of greater concern is the impact the Volcker rule, expected to be implemented in July, will have on traditional investment banking business models.

The draft of the rules has raised concerns that the high degree of monitoring and compliance will increase the cost of trading. Worse, some fear that the narrow definitions of traditional functions of traders such as market-making might impact liquidity, particularly in fixed-income markets.

So far, banks have remained cautious in their commentary about the impact of Volcker, as regulators continue to seek industry input on a range of issues. But the uncertainty has made it difficult to make long-term decisions on capital allocation and staffing.

Goldman Sachs has, so far, maintained that the current weakness in the environment is purely cyclical and it would take sustained weakness for more than two years for it to make sizeable cuts to its workforce. Still, in the first nine months of 2011, Goldman laid off about 1900 jobs across entities, bringing its total workforce to 36,800.

Any significant cuts to compensation in the fourth quarter at Goldman, best known for its hefty bonuses, will get the markets to sit up and take notice. Its 38,700 employees in 2010 earned an average salary of $397,312, a rough calculation shows. The averages are, of course, skewed by eye-popping bonuses paid out to the company's partners.

Goldman has historically has a fourth-quarter compensation "true-up", a practice wherein it adjusts its compensation relative to revenues in the final quarter to boost overall profits. Analysts however, do not expect the company to make significant adjustments this time to its compensation-to-revenue ratio.

Wells Fargo Securities analyst Matthew Burnell expects the bank to report a compensation-to-revenue ratio of 43% in the ! fourth q uarter, higher than the 39% reported in 2010, given a "challenging top-line picture."

Overall, he expects compensation to decline by just 20%, led by a 10% reduction in employee count. That could lower the average compensation per employee by a little more than 10% to about $350,000.

That may not be enough to please shareholders, who are increasingly tired of single-digit returns on capital. It certainly won't be enough to silence critics of Wall Street who argue that traders and investment bank employees are overpaid.

But Wall Street has had less flexibility to use compensation as a lever in recent years since the crisis, primarily because the backlash against bonuses has led them to change compensation practices.

A greater portion of compensation is now fixed, compared to the past. Banks are deferring bonus payouts to discourage short-term risk taking. That has the effect of reducing compensation costs in the current year, but increases the payout in future years, reducing the flexibility to tinker significantly with compensation costs.

Universal banks including JPMorgan Chase(JPM) and Citigroup(C) have nevertheless made efforts to trim salaries for capital markets employees. Compensation declined 36% in 2010 at JPMorgan's investment banking division, with the average compensation per employee declining 8% to $341,551.

Citigroup does not breakout its "securities and banking" compensation costs but the bank is laying off nearly 5,000 workers, 25% of which is in the investment banking business.

At Goldman's smaller rival Morgan Stanley, plans are underway to lay off 1600 employees by the first quarter of 2012. Because of its substantial wealth management operation, Morgan has a slightly different compensation structure relative to investment banking peers, with compensation often taking up as much as 50% of revenues.

The in vestment bank may cap cash bonuses for senior management for 2011 at $125,000 and defer as much as 75% of their compensation, up from about 65% in recent years, according to a Wall Street Journal report . The same report suggested that Goldman Sachs may cut the bonuses of its 400 partners by half.

More long-term changes could still be in store for Goldman and Morgan Stanley employees. Bernstein analyst Brad Hintz expects Goldman to respond to Volcker by automating market making activities; reduce staffing on trading floors and shrink overhead to enhance business margins. "We foresee a "'new"' Goldman Sachs that will remain a powerful global securities house and investment bank, but with a much more tightly limited balance sheet and a much changed fixed income business model," the analyst wrote in a recent report.

Bernstein believes that "the new Morgan Stanley will be less reliant on trading and have alower-risk business model, will control the leading market share position in retail brokerage, and will maintain its top ranking in M&A advisory and equity capital markets."

Analysts are expecting Goldman Sachs, scheduled to report Wednesday, to post an earnings per share of $1.46, according to consensus estimates from Zacks Investment Research .

Revenues and earnings per share are expected to come in at $6.544 billion and $1.24 per share respectively, according to consensus estimates from Thomson Reuters.

Estimates for Goldman, in fact, vary quite widely across the Street, ranging from 70 cents on the low end to $2.5 on the upper end, a reflection of just how difficult it is to predict trading revenues.

Barclays Capital analyst Roger Freeman expects Goldman's 2011 income to be its lowest since 1998 and its revenues to be the lowest since 2005.

Morgan Stanley is expected to report a loss of 58 cents per share, according to consensus estimates from Zacks Investment Research.. !

The company has said it will take a $1.8 billion pre-tax loss in the fourth quarter, arising out of a settlement with bond insurer MBIA(MBI) over lawsuits related credit default swaps purchased for protection on commercial mortgage-backed securities. >To follow the writer on Twitter, go to http://twitter.com/shavenk.

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

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

Related Articles:

Poniard Pharmaceuticals Announces Licensing Agreement for Focal Adhesion Kinase Technology

10 Things Vacation-Rental Sites Won't Say - SmartMoney.com

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 ,Best China Stocks 2012

Fulsome Volume of Advanced Micro Devices, Inc. - NYSE:AMD

Advanced Micro Devices, Inc. (NYSE:AMD) witnessed volume of 86.04 million shares during last trade however it holds an average trading capacity of 22.41 million shares. AMD last trade opened at $7.09 reached intraday low of $7.07 and went +19.23% up to close at $7.75.

AMD has a market capitalization $5.33 billion and an enterprise value at $4.95 billion. Trailing twelve months price to sales ratio of the stock was 0.68 while price to book ratio in most recent quarter was 2.87. In profitability ratios, net profit margin in past twelve months appeared at 11.08% whereas operating profit margin for the same period at 6.70%.

The company made a return on asset of 5.24% in past twelve months and return on equity of 61.51% for similar period. In the period of trailing 12 months it generated revenue amounted to $6.53 billion gaining $9.15 revenue per share. Its year over year, quarterly growth of revenue was 2.50% holding 98.40% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $1.74 billion cash in hand making cash per share at 2.54. The total of $2.23 billion debt was there putting a total debt to equity ratio 143.13. Moreover its current ratio according to same quarter results was 2.48 and book value per share was 2.27.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 21.98% where the stock current price exhibited up beat from its 50 day moving average price of $7.10 and remained below from its 200 Day Moving Average price of $8.18.

AMD holds 687.54 million outstanding shares with 579.56 million floating shares where insider possessed 15.80% and institutions kept 55.70%.

Related Articles:

2012 Preview - SandRidge Mississippian Trust I

C! arnival shares tumble after cruise ship tragedy

Tags: 2012 Casino Stocks ,Best Performing Casino Stocks ,Best Performing Stocks To Invest In ,Best Performing Stocks To Invest In 2012 ,SDT ,Best China Stocks 2012

Sector Review: Action in the Technology Sector on Dec 16th

Wall St. Watchdog reveals information about today��s action in the Technology (NYSE:XLK) sector:

Gainers (% price change)

• Sify Technologies Limited (NASDAQ:SIFY): The shares closed at $4.28, up $0.48, or 12.63%, on the day. Its market capitalization is $228.34 million. About the company: Sify Technologies Limited provides Internet, networking and e-commerce services consumers and businesses in India. The Company’s services include consumer Internet access services, corporate network and technology services, and on-line portal and content offerings. Get the most recent company news and stock data here >>
• Cypress Semicond. Corp. (NASDAQ:CY): The shares closed at $10.56, up $0.86, or 8.87%, on the day. Its market capitalization is $1.64 billion. About the company: Cypress Semiconductor Corporation designs, develops, manufactures, and markets a line of digital and mixed-signal integrated circuits. The Company’s circuits are used in the data communications, telecommunications, computers, and instrumentation systems markets. Cypress’ products are marketed worldwide through a network of sales offices, distributors, and sales representative firm. Get the most recent company news and stock data here >>
• Rediff.com India Ltd (NASDAQ:REDF): The shares closed at $7.79, up $0.56, or 7.75%, on the day. Its market capitalization is $455.43 million. About the company: Rediff.com India Limited offers Internet destinations focused on India and the global Indian community. The Company’s Web site consists of various interest specific channels, community features, local language editions, search capabilities, and online shopping. Get the most recent company news and stock data here >>
• RadiSys Corporation (NASDAQ:RSYS): The shares closed at $5.42, up $0.36, or 7.11%, on the day. Its market capitalization is $150.33 million. About the company: RadiSys Corporat! ion desi gns and manufactures embedded computer solutions. The Company’s products are used by original equipment manufacturers for products in the manufacturing automation, telecommunications, medical devices, transportation, and test and measurement industries. Get the most recent company news and stock data here >>
• Callidus Software Inc. (NASDAQ:CALD): The shares closed at $6.01, up $0.39, or 6.94%, on the day. Its market capitalization is $195.93 million. About the company: Callidus Software delivers enterprise application software called business performance systems. The Company’s Enterprise Incentive Management (AMEX:EIM) software system allows enterprises to model, administer, analyze and report pay-for-performance plans, which are designed to align employee, sales, and channel tactics with targeted business objectives. Get the most recent company news and stock data here >>

Losers (% price change)

• Research In Motion Ltd (NASDAQ:RIMM): The shares closed at $13.44, down $1.69, or 11.17%, on the day. Its market capitalization is $7.04 billion. About the company: Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The Company provides platforms and solutions for access to email, phone, SMS messaging, Internet, and Intranet-based applications. Get the most recent company news and stock data here >>
• AsiaInfo-Linkage, Inc. (NASDAQ:ASIA): The shares closed at $6.93, down $0.46, or 6.22%, on the day. Its market capitalization is $498.55 million. About the company: AsiaInfo-Linkage Inc. provides telecommunications software solutions in China. The Company provides a full range of telecommunications software solutions including network infrastructure, operation support systems, and service applications to China’s telecommunications carriers. Get the most recent company news and stock data here &g! t;>
• Kopin Corporation (NASDAQ:KOPN): The shares closed at $3.81, down $0.22, or 5.46%, on the day. Its market capitalization is $258.49 million. About the company: Kopin Corporation develops and manufactures semiconductor materials and small form factor displays. The Company uses its proprietary technology to design, manufacture, and market products used in commercial wireless communications and high resolution portable applications. Kopin’s principal semiconductor wafer product is a heterojunction bipolar transistor device wafer. Get the most recent company news and stock data here >>
• (): The shares closed at $23.55, down $1.1, or 4.46%, on the day. Its market capitalization is $429.11 million. Get the most recent company news and stock data here >>
• VeriFone Systems, Inc. (NYSE:PAY): The shares closed at $35.18, down $1.62, or 4.4%, on the day. Its market capitalization is $3.70 billion. About the company: VeriFone Systems, Inc. is a global provider of technology that enables electronic payment transactions and value-added services at the point of sale. The Company’s customers include financial institutions, payment processors, petroleum companies, large retailers, government organizations and healthcare companies, as well as independent sales organizations. Get the most recent company news and stock data here >>

Most Actives (dollar volume)

• Apple Inc. (NASDAQ:AAPL): The shares closed at $381.02, up $2.08, or 0.55%, on the day. Its market capitalization is $354.12 billion. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and res! ellers. Get the most recent company news and stock data here >>
• Microsoft Corporation (NASDAQ:MSFT): The shares closed at $26.00, up $0.44, or 1.72%, on the day. Its market capitalization is $218.72 billion. About the company: Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices. Get the most recent company news and stock data here >>
• Intel Corporation (NASDAQ:INTC): The shares closed at $23.23, down $0.08, or 0.34%, on the day. Its market capitalization is $118.29 billion. About the company: Intel Corporation designs, manufactures, and sells computer components and related products. The Company’s major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, systems management software, conferencing products, and digital imaging products. Get the most recent company news and stock data here >>
• Cisco Systems, Inc. (NASDAQ:CSCO): The shares closed at $17.94, down $0.1, or 0.55%, on the day. Its market capitalization is $96.44 billion. About the company: Cisco Systems, Inc. supplies data networking products for the Internet. The Company’s Internet Protocol-based networking solutions are installed at corporations, public institutions and telecommunication companies worldwide. The Company’s solutions transport data, voice, and video within buildings, across campuses, and around the world. Get the most recent company news and stock data here >>
• Oracle Corporation (NASDAQ:ORCL): The shares closed at $29.21, up $0.18, or 0.62%, on the day. Its market capitalization is $! 147.35 b illion. About the company: 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 >>

Related Articles:

Sell, baby, sell!

What You Need to Know About Immigration and Naturalization

Tags: APA ,Energy Stocks ,Natural gas ,Oil ,PBR ,Stocks to Sell ,Best China Stocks 2012

Wednesday’s ETF To Watch: Dow Jones U.S. Broker-Dealers Index Fund (IAI)

With a number of major banks and brokers reporting earnings, the investing world will get an objective glimpse at exactly how all of the overseas turmoil has affected bottom line returns for some of the biggest financial firms in the world. Yesterday investors watched Citigroup announce an 11% dip in quarterly profit, sparking a massive sell-off for the already beat down the stock. On the flip side, Wells Fargo was able to report a 20% jump in profits and was in the black for the duration of the trading day [see also Iran Tensions And Crude Oil: What It Means For Your Portfolio].?

Today will see another bellwether financial institution report its most recent fiscal quarterly earnings, Goldman Sachs (GS). Goldman is home to over 34,000 employees and is stationed in New York City. The company is something of a jack of all trades but its primary business operations come from investment banking and securities. Goldman has been in the headlines over the last few years for all of the wrong reasons, as the company has experienced a significant backlash since the market crash in 2008. Today, the firm hopes to follow in Wells Fargo’s footsteps and surprise the street, or else it may face a harsh sell-off [see also Financials Free ETFdb Portfolio Now Available].

Analysts are calling for an EPS of $1.24 with revenues around $6.5 billion. It should be noted that the company has missed their last two reports, with a miss of 425% last quarter. Like many other financial institutions, even if GS is able to hit its marks, its revenues for the year will still be down a considerable amount, which could have an adverse effects on even the most upbeat announcement. But judging from Wells Fargo, whose positive announcement still meant a dip in revenue from?the?previous year, if Goldman can manage to meet or beat the street, the stock could be in for a nice session [see also The 10 Most Actively Traded ETFs In The World].

In light of this major earnings announcement, toda! y’ s ETF to watch will be the Dow Jones U.S. Broker-Dealers Index Fund (IAI). This fund, which measures the performance of the investment services?sector?of?the?U.S. equity market, has $55 million in total assets and has gained over 4.6% on the year. Goldman accounts for the top slot in this ETF, taking home an allocation of 7.7%, giving it a fair amount of say over IAI’s performance. If GS is able to surprise, look for IAI to have a nice trading day, but a big miss from this financial behemoth will likely send IAI into the gutter [see also Ten ETFs No One Is Thankful For].

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Related Articles:

A high percentage of iPhone users would prefer Verizon to AT&T

AIG (AIG) Bailout And The Price Of Doing Business

Tags: 2012 Cheap Stocks ,Best Cheap Stocks For 2012 ,Best Stocks For 2012 ,Best Stocks To Watch 2012 ,Smartphones ,Best China Stocks 2012

Is Aeropostale a Buffett Stock?

As the world's third-richest person and most celebrated investor, Warren Buffett attracts a lot of attention. Thousands try to glean what they can from his thinking processes and track his investments.

Although Buffett's portfolio is probably too large to purchase a stake in Aeropostale (NYSE: ARO  ) , we can discover whether it's the sort of stock that might interest him. Answering that question could also reveal whether it's a stock that should interest us. In this series, we do just that.

Writing in a recent 10-K, Buffett lays out the qualities he looks for in an investment. In addition to adequate size, proven management, and a reasonable valuation, he demands:

1. Consistent earnings power.
2. Good returns on equity with limited or no debt.
3. Management in place.
4. Simple, non-techno-mumbo-jumbo businesses.

Does Aeropostale meet Buffett's standards?

1. Earnings power
Buffett is famous for betting on a sure thing. For that reason, he likes to see companies with demonstrated earnings stability.

Let's examine Aeropostale's earnings and free cash flow history:

Source: S&P Capital IQ.

Aeropostale has had fairly volatile earnings over the past several years. Of course, this is to be expected for an apparel retailer during an economic downturn.

2. Return on equity and debt
Return on equity is a great metric for measuring both management's effectiveness and the strength of a company's competitive advantage or disadvantage -- a classic Buffett consideration. When considering return on equity, it's important to make sure a company doesn't have an enormous debt burden, because that will skew your calculations and make the company look much more efficient than it is.

Aeropos! tale gen erates an enormous return on equity (29% over the past year, 50% on average over the past five years). It employs no debt.

3. Management
CEO Thomas Johnson has only been at the job since 2010, although he was chief operating officer for about six years prior to taking over the top spot and has held other important positions in the company for longer.

4. Business
Although it can be the beneficiary or victim of changing tastes and fads, apparel retail isn't susceptible to technological disruption.

The Foolish conclusion
So is Aeropostale a Buffett stock? Probably not, since the company's earnings have struggled a bit of late, and its CEO is fairly new to his position. However, it does exhibit some of the other quintessential characteristics of a Buffett stock: high returns on equity with limited or no debt and a technologically straightforward industry. To stay up to speed on Aeropostale's progress, simply add it to your stock watchlist. If you want to find out about one fast-growing retail stock our analysts love today, check out "The Motley Fool's Top Stock for 2012".

Related Articles:

A look back at this week in financial news

4 Celebrity Prepaid Cards We'd Rather See

Tags: BA ,BAC ,DNDN ,Election 2012 ,F ,GM ,InvestorPlace Market Recap ,M ,NFLX ,PEP ,SBUX ,Best China Stocks 2012

Apple: Now Targeting The Concert And Event Ticket Business?

Having revolutionized the recorded music business, is Apple (AAPL) now targeting the ticketing business?

The blog PatentlyApple.com in a post late last week noted that Apple has received a patent on an electronic concert and event ticket business which would use iTunes to eliminate paper ticketing while enhancing the concert experience. Here’s how the PatentlyApple blog describes the systems sketched out in the patent:

There’s no missing the point that Apple wants to enter the electronic concert and event ticket business via a new application and system simply called “Concert Ticket +.” The system that is laid out in this extraordinarily detailed patent, points to a new iTunes based web service for tickets that will naturally enhance the iTunes music empire. Apple definitely envisions a way to revolutionize the entire current concert ticket process so as to eliminate paper while enhancing the concert or event experience. Today’s patent reviews the basics of this new system as well as review the benefits of such a system which could include the concert goer receiving such things as a live recording of the concert they just attended or access to exclusive artist interviews or refreshments. Surprisingly, the patent goes far beyond concerts as well – so as to cover sporting events, amusement park admissions and rides (think Disney), a wedding invitation system and a lot more. In fact, one of the events that the report covers includes Apple’s World Wide Developer Conference 2010.

A threat to Ticketmaster (TKTM)? Or a partnering opportunity?

Related Articles:

BorgWarner Shares Popped - What You Need to Know

Microsoft and Apple Run Into Pricing Problems With Video L! icensing

Tags: 2012 Dividend Stocks ,Best Stocks 2012 ,Best Stocks To Invest In 2012 ,Best Stocks To Own ,Best Stocks To Own In 2012 ,BWA ,Best China Stocks 2012

Top 10 Pre-Market Analyst Calls (BSC, CAL, DELL, ESRX, HON, ILMN, NUAN, SPW, STM, AU, DROOY, GFI, GBN, HMY)

These are not the only big analysts calls this Friday morning, but these are the ones that 24/7WallSt.com is focusing on this morning:

• Bear Stearns (BSC) raised to Buy at Merrill Lynch.
• Continental (CAL) raised to Outperform from Peer Perform at Bear Stearns.
• Dell (DELL) raised to Overweight from Neutral at JPMorgan.
• Express scripts (ESRX) started as Buy at Deutsche Bank.
• Honeywell (HON) raised to Neutral at JPMorgan.
• Illumina (ILMN) raised to Overweight from Equal Weight at Lehman; raised to Buy at UBS.
• Nuance Communications (NUAN) raised to Buy from Hold at Citigroup.
• SPX Corp. (SPW) raised to Overweight at JPMorgan.
• STMicroelectronics (STM) downgraded to Neutral from Outperform.

DEUTSCHE BANK Downgrades Gold Stocks:

• Anglogold (AU) downgraded to Sell from Hold;
• DRDGOLD (DROOY) downgraded to Hold from Buy;
• Gold Fields (GFI) downgraded to Sell from Hold;
• Great Basin Gold (GBN) downgraded to Hold from Buy;
• Hamrmony Gold (HMY) downgraded to Sell from Hold.

Jon C. Ogg
January 11, 2008

Related Articles:

Global Investing Roundups

Cocaine: The New Front Lines

Tags: Best Retail Stocks ,Best Retail Stocks To Buy ,Best Stocks of 2012 ,Best Stocks To Buy For 2012 ,Best China Stocks 2012

gem worth investing - TITAN INDUSTRIES

TITAN INDUSTRIES

Titan's focus on branded products, and its strategy of capturing less penetrated market segments and catering to every income group will help it reap rich fruits.

The company is a market leader in the organised watch segment with a 40 per cent share with brands like Titan, Sonata and Fast Track. It braced up its branded jewellery business and today, its Tanishq brand enjoys a strong recall in the organised market.

Organised jewellery retailing business has a meagre share of 3-4 per cent, but with a growth of 25-30 per cent, it is expected to gain higher share, thus benefiting Titan. Further, it has rightly identified new markets with strong growth potential.

It has also entered the $450 million Indian eyewear market with its Fast Track brand and precision engineering equipment business catering to automobile, medical and aerospace industry (global size of $35 billion). It has also ventured into the Rs 2,500-3,000 crore Indian prescription eyewear business under the brand Titan Eye+.

All these indicate that Titan is set to report high revenue growth driven by its branded jewellery business and supported by new segments.

Although profitability will trail sales growth due to lower margins in the jewellery business, it is still expected to! be subs tantial. Moreover, periodic introduction of brands and ability to identify new segments boosts confidence about the company's prospects. 

§       Want to earn like Warren Buffett? 24 tips
§       Stocks to pick: ONGC, Sterlite Industies, TCS
§       How to build an ideal portfolio?
§       Mkts to see deep, long correction: Rakesh Jhunjhun...
§       Investment Idea - ZEE Entertainment Enterprises Li...
§       Why tips will never make you rich?
§       Tata Power: Full of energy
§       Long-term investors can start portfolio building
§       Buy Unitech, target Rs 432: Prime Broking
§       Tyre & Industries Ltd Target Rs.145/-
§       Bear Market? Is this a good time to invest?
§       Investment Idea - Prime Focus ! Ltd. pla ns beachhead...
§       Top midcaps: Adlabs, Parsvnath, Kotak Bank, Geojit...
§       Multi Bagger: Rain Commodities
§       Don't drive away blue-chip stocks
§       Buy Tata Steel, target Rs 1085: Emkay Research
§       The man who can’t stop praising Rakesh Jhunjhunwal...
§       What should retail investors do..
§       Nagarjuna to unlock value - Long term
§       Binani Inds - hugely undervalued
§       5 value stocks to buy NOW
§       Alps Industries : Multibagger
§       Value picks from current market
§       Stocks for long-term investments in 2008
§       Damani's advice to investors
§       Stocks to pick - Tata steel, TCS, Petronet LNG
§       List of the BSE-100 stocks losing most from their ...
§       Lessons from January 2008
§       Zen Technologies:-The scrip to watch out for in th...
§       Find value picks from the day's biggest losers
§       Market update - big fall of 1400 points sector wis...
§       Black Monday again-Biggest ever point fall for mkt...
§       BSE smallcap index: Top gainers and losers
§       Stocks that hit their 52-week lows in todays fall
§       Sensex to see 25K by 2008-end
§       Major IT stocks touched their 52-week lows
§       HOT STOCK : GODREJ INDUSTRIES
§       JK LAKSHMI CEMENT LIMITED : Potential MULTIBAGGER
§       Parsvnath Dev eyes 120-140% bottomline growth - Pr...
§       For IT, numbers say it all
§       Will gold price crash in India?
§       Stocks to pick: Reliance capital,Axis Bank, Moser ...
§       Rakesh Jhunjhunwala's latest Portfolio
§       Tata Nano may expand market by 65%
§       Nano will drive Tata Motors to top position
§       RIL ready with $8bn for coal-based fuel project
§       Rosy Future - Stock Focus - Karuturi networks
§       Multi Bagger - XL Telecom & Energy
§       gremach infrastructure : relook
§       Great Investor theory
§       Who all are the biggest winners in the market?- In...
§       Read Before Investing
§       The Great Investor Theory
§       Good Twenty stocks for 2008
§       Should you invest in index funds?
§       Billionaires bet big on India's bio-fuel
§       Investing for early retirement
§       Sensex target for 2008 at 22k-24k
§       Watch out for the Street signs- Is This As Good As...

Related Articles:

Gradual economic improvements will make themselves heard

Make Great Expiration Day Trades

Tags: Insurance Stocks ,Jobs ,Top Stocks 2012 ,Top Stocks To Invest In ,Top Stocks To Watch ,Top Stocks To Watch In 2012 ,Best China Stocks 2012

5 High-Risk, High-Reward Companies

Disenchanted with the poor returns and high fees on mutual funds, some family members recently asked me to help them mold a good growth portfolio.

The working thesis I used for my recommendations was: "Invest first and foremost in companies that demonstrate exceptional levels of innovation, with special emphasis given to those that we believe will be around decades from now."

On Thursday, I offered up the four stocks I recommended as core holdings. On Friday, I talked about four more stocks worth investing in, but probably not at levels above 10% of their portfolios. Today, I'm offering up the five stocks that I told my family were high-risk, high-reward bets. Though there's no doubt these companies are innovative, their future could go in many directions.

Add these five to your watchlist to stay up to date on all the latest news, and at the end I'll offer you access to a special free report on a company that founding Fool David Gardner believes could be the next rule-breaking multibagger.

MAKO Surgical (Nasdaq: MAKO  )
You know, I initially made this list just before the new year. Had I been privy to the information that MAKO just released, I might have included it as a less risky bet.

MAKO's RIO surgery system gives patients the ability to have less invasive knee-replacement surgery -- which leads to quicker recovery times than standard procedures. Recently, the company also got approval to perform robotic hip-replacement surgery.

When it comes to medical devices, adoption is the key to success -- especially with expensive systems like RIO. It seems, however, that the company may be reaching a tipping point, and that bodes well for the company.

I already own shares of MAKO, I have made a CAPScall on my profile, and I think prices are a relatively good deal today.

• Add MAKO Surgical to My Watchlist.

Baidu (Nasdaq: BIDU  ! )
S ome may say Baidu isn't all that risky, and others will say that it isn't that innovative -- as it more or less emulates Google and just applies those lessons to business in China. To those people I would say this: first, a powerful Communist government should never be written off as harmless, and there's nothing wrong with copying innovation.

Clearly, Baidu shares have appreciated significantly over the past five years, up more than 900%. But there are still hundreds of millions of Chinese consumers yet to come online, and the company has consistently won over skeptics who doubted their ability to execute.

I will be purchasing shares of Baidu when trading rules allow, and I have made a CAPScall on my profile. I think any price below $110 would be an excellent opportunity to snatch up more shares.

• Add Baidu to My Watchlist.

Solazyme (Nasdaq: SZYM  )
Here at the Fool, we have mixed feelings about Solazyme. The company is able to take patented microalgae, give it feedstock, and have the algae produce tailored oils.

But here's the great thing about this company: It's focused on much more than just biofuels. The company is also able to make tailored oils -- at a cheaper cost -- for both the cosmetic and nutritional health industries. Not be ignored, however, are that its biofuels are also used by the Navy and have helped transport commercial airliners as well.

I believe Solazyme is pretty cheap right now. I've backed that belief up with my own money and on my profile.

• Add Solazyme to My Watchlist.

Stratasys (Nasdaq: SSYS  )
See if you can wrap your head around this: 3-D printers actually allow you to make 3-D things right in your own house. Sound like a story from The Jetsons? Well, believe it, because this budding technology could be the basis of the way things are made in the 21s! t centur y.

I've already called the company out as one that can benefit from a deleveraging, downshifting economy. As the technology gets more advanced, Stratasys' printers could help us make everything from T-shirts to bikes to even food.

I have made a CAPScall on my profile and will be buying shares when trading rules allow, but I'm going to take a wait-and-see approach before buying after that, to see how the company's partnership with Hewlett-Packard works out.

Zipcar (Nasdaq: ZIP  )
Zipcar had its IPO in 2011 but hasn't had the greatest of starts since its birth on the public markets. However, I don't think that's indicative of this company's future. Buying a car is expensive, as are gas and insurance. Throw in the fact that as our population grows, cities are getting more crowded, parking spaces are becoming more scarce, and pollution is becoming a bigger problem, and you have a situation nearing a breaking point.

That's where Zipcar enters the scene. With Zipcar's having just turned its first profitable quarter, and with a fanatic fanbase of Zipsters pushing the company forward, I think now's a great time to buy shares of this car-sharing company. I've already bought shares, and that's reflected on my profile as well.

• Add Zipcar to My Watchlist.

A name for this type of investing
Truth be told, the "growth" moniker may not be the most accurate for this type of investing. By focusing on innovation, I'm really zeroing in on what Fool Founder David Gardner calls Rule Breakers.

David runs a highly successful newsletter based on Rule Breakers, and they've recently assembled a special free report about The Next Rule Breaking Multibagger. Inside the report, you'll find out about a company that's poised the benefit from our aging population. Get the report today, absolutely free!

Related Articles:

Apple - A value stock?

How to Deal With Potential Investor Concerns

Tags: ETFs ,Euro zone ,Top Penny Stocks ,Top Penny Stocks To Invest In ,Top Stocks To Buy 2012 ,Top Stocks To Buy For 2012 ,Best China Stocks 2012

Maids Agency in Hong Kong and Hiring a Maid from a Credible Agency

A busy life and competitive career in Hong Kong deserves time for rest and recreation. However, this is hard to manage given the fact that there are a lot of household chores to take care of. This problem can be addressed by a Maids Agency in Hong Kong. If you are having difficulty managing your schedule between work and home duties, then it is time to consider hiring a maid.

Having a good and reliable maid can be beneficial for the whole family. It will allow you to have a lot of free time so you can do a lot of other activities. You can count on your maid to do the laundry, clean your home and prepare the meals. This means that you can pour your time on your family, have enough rest and concentrate on your career.

Finding a Maids Agency in Hong Kong is a good start. Making sure that you are dealing with a trustworthy and credible agency is the other half of the job. You have to exert some effort in finding the most reliable and legally-operating agencies in Hong Kong in order to protect the security and safety of your household.

Take the time to identify only the best and most reputable Maid Employment Agencies. Check for the agency’s credibility, track record in the business and if it operates legally. If possible, you can get recommendations from other people as well. Agencies that had served a lot of satisfied clients and had been operating for quite some time are all good indications that the agency is a good one.

To help you determine if you are dealing with a credible agency, take the time to ask for recommendations. You can also check if the agency operates legally, is registered based on Hong Kong laws and standards and had already provided services to a lot of satisfied clients.

A good Maids Agency in Hong Kong will enable you to have the most suitable maid who can help you make your life easier and stress-free amidst the busy city life.

Visit the top domestic helper agency Hong Kong to see the free profiles and photos of domestic helper, nanny, mai! d, house keeper, caregiver, driver, gardener and much more.

Incoming search terms for the article:

• Agen maid DIDI in hongkong

Related Articles:

2011 - The year of annoying fees

How Do I Tell My Girlfriend That I’m Broke? Mint Answers

Tags: Gold Stocks ,Great Stocks 2012 ,Great Stocks To Invest In ,Great Stocks To Watch In 2012 ,SAVE ,TD ,Best China Stocks 2012

Google's Schmidt: Android's not fragmented, it's 'differentiated'

LAS VEGAS (CNNMoney) -- Technology innovations are often blended into buzzword trends like "curation" and "social graph." This is shaping up to be the year of "ecosystem."

What does that mean? Depends on who you ask. Google (GOOG, Fortune 500) chairman Eric Schmidt offered up his view during a panel discussion at the Consumer Electronics Show in Las Vegas on Tuesday.

Schmidt started with a canned answer about how he defines ecosystem -- "scalable network platforms that deliver the best customer value" -- but he warmed up when the talk turned to Google's Android operating system.

"We even have Android in refrigerators now," Schmidt said. "By open-source we mean, 'take it and have fun.' And people have."

The panel moderator, CNET's Molly Wood, pointed out the pitfall of that strategy: hundreds of devices are running dozens of various versions of Android. But as soon as she said the word "fragmentation," Schmidt cut her off.

"You have to be careful with that word, fragmentation," he said.

"So what would you say?" Wood asked.

"I would say differentiation," Schmidt replied. "Differentiation is positive, fragmentation is negative."

Whatever you call it, the approach is working: Google activated 3.7 million Android phones on Christmas Eve and Christmas Day, Schmidt revealed.

But Wood pressed the fragmentation issue, asking Schmidt whether the new Android operating system -- 4.0, codenamed Ice Cream Sandwich -- is a chance to "give [Google] a little more control."

Schmidt replied: "Well, control ... I mean, we want to get everybody under Ice Cream Sandwich, but we absolutely allow our developers to add or change anything, as long as they're not breaking anything."

He added: "The great thing is if you don't like one phone, you can choose another. You're not bound to certain hardware."

That potshot was ! aimed at Apple, whose iOS appears only on its own devices.

Schmidt's digs at competitors continued when Wood brought up Internet-connected TV and the success of Microsoft's (MSFT, Fortune 500) gesture-controlled Kinect system.

"How big a barrier is it that Microsoft seems to have all the pieces in place, with the Kinect and the Xbox and all, but hasn't really gotten it together yet?" Wood asked.

"Microsoft is trapped in an architectural problem it might not get through," Schmidt replied.

The blunt comment drew a few laughs from the audience. Schmidt shrugged them off saying, "My sense is that they're going to get there. It's a problem of user interface design. It's a matter of getting people with great taste into the company, designing."

Next on Schmidt's slam list: Amazon (AMZN, Fortune 500), whose Kindle Fire tablet runs on a highly altered version of Android. Schmidt said Google welcomed the customization, but that the tablet "has some limitations, [which] have been well documented."

Wood tried to close the discussion with a question based on the panel's theme: "Which is most important for the ecosystem: Hardware, content, services or software?"

Schmidt went the politician's route. He tossed that query out and swapped in his own.

"They work together," he said. "I'll answer a different question: What was the most surprising thing in 2011?" Schmidt asked himself, as attendees laughed.

"It's always surprising to people when they realize how significant these ecosystems are," he continued. "I saw this with respect to Apple, Amazon and even Facebook."

The open ecosystem allows multiple types of players to work together, Schmidt said. That means "everyone can be a winner" in a financial sense.

"All of these people can operate without your knowledge or control," he said. "It's about making it open enough so that the creative people, the a! pp devel opers, the consumers -- you build something tremendously valuable for everyone." 

Related Articles:

Weekend Box Office - Will Brad Pitt’s “Moneyball” Score a Home Run?

Samsung Galaxy Tab 10.1 No Longer Banned in Europe

Tags: 2012 Good Stocks ,AMCX ,DIS ,Good Stocks To Invest In ,Good Stocks To Own ,Good Stocks To Own In 2012 ,LGF ,RGC ,SNE ,TWX ,Best China Stocks 2012