InfoSpace Tumbles; Q1 In Line; Q2 EPS View Beats, Revs Miss

InfoSpace (INSP) shares are down sharply following the company’s Q1 financial report.

For the quarter, INSP posted revenue of $61.8 million and profits of 4 cents a share, right in line with estimates.

For Q2, the provider of Internet metasearch services like Dogpile.com sees revenue of $51 million to $55 million, down sequentially and well below the Street at $62.4 million, but with profits of 7-9 cents a share, above the Street at 5 cents.

INSP is down 73 cents, or 7.1%, to $9.62.

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Four Energy Stocks That Pay More Than 7% Dividends

The price of oil continues to rise. A barrel of oil breached the $100 mark early last week and is now inching its way past $106 - its highest point since May.

Fears about Iran seem to be the catalyst this time. The world's third-largest oil exporter is threatening to withhold oil deliveries and block the Strait of Hormuz, through which one-fifth of the world's oil flows, in response to the recent stand-off between Iran and western countries about Iran's nuclear program. As tensions mount, oil prices are escalating.

With no end to this stalemate in sight, now is the time for investors to turn those skyrocketing oil prices into income. 

As a possible embargo on foreign oil imports looms, U.S. oil and gas producers are becoming more valuable. To profit from them, investors should turn to the energy companies that pour a healthy portion of their earnings back into dividends.

Oil and dividend stocks are both thriving at the moment, so it only makes sense to combine the two. And one of the best ways for income investors to earn a hefty paycheck is through Master Limited Partnerships, or MLPs.

Like regular stocks, MLPs offer investors - or in this case limited partners - payments that are similar to dividends, only taxed differently. Because they are partnerships, MLPs aren't subject to state and federal income taxes. The funding costs are relatively cheap when compared to a regular dividend stock.

And yet, some MLPs can generate income with even the highest yielding dividend stocks. It's just a matter of finding the right ones.

With that in mind, here are four U.S. energy MLPs that yield more than 7%. Each company boasts a healthy bottom line already, and should continue to generate income as oil prices rise. As they generate income, so too will their shareholders.

• Linn Energy (Nasdaq: LINE): This independent oil and gas company develops and acquires oil and gas pr! operties across the U.S., including Oklahoma, Louisiana and California. The master-limited partnership offers a generous 7.5% yield, with a quarterly distribution of $0.66 per share. Having more than doubled its payout over the last six years, and given that the company has increased its annual earnings by an average of 40% for the past five years, there's plenty of room for Linn Energy to grow.

• Boardwalk Pipeline Partners (NYSE: BWP): In 2010, this natural gas transporter carried approximately 10% of the natural gas supply in the U.S. The company owns more 14,000 miles of pipeline that spans four states and serves numerous others, and has a net income of $220 million. That's why Boardwalk recently upped its quarterly dividend to $0.53 per share - a yield of 7.8%.

• Energy Transfer Partners (NYSE: ETP): The Texas-based natural gas company fell short of earnings expectations last week, but still posted revenue that was 25% higher than the same quarter a year ago. The MLP still has a distribution yield of 7.5% and a whopping $3.58 annual dividend. Energy Transfer's average dividend yield over the last five years is 7.4%. Priced at $47, Energy Transfer is currently trading well below its 52-week high of $55.50. With earnings in 2012 expected to rise to $2.31 per share from $1.55 last year, it's unlikely Energy Transfer is going to cut back on its quarterly distribution to shareholders anytime soon.

• Inergy (NYSE: NRGY): Though the 15.7% yield is eye-popping, it's probably unsustainable. But Inergy does have a strong dividend history since it began paying a dividend in 2001. In fact, the company's yield hasn't dipped below 7% in nearly five years. That's because Inergy is one of the leading propane gas retailers in the U.S., and also operates a natural gas storage and transportation business. While the stock has lagged in the past year as it tracks natural gas prices , which have been crushed of late, In! ergy's e arnings per share are expected to grow 27% over the next year as natural gas begins to show some signs life. That should inject some life into the stock price, and prevent the superhuman dividend from falling too far.

In a time when 10-year Treasury notes are yielding little more than 2% - their lowest yield in over 30 years - dividend stocks are a far profitable alternative for income investors these days. S&P 500 stocks paid $240.6 billion in dividends last year - the most since 2008.

Now, with oil on the rise and natural gas starting to bounce back, it's also a good time to invest in energy. So finding energy stocks that pay dividends is a way for investors to take advantage of two fast-moving trends.

*Post courtesy of Ian Wyatt of Wyatt Investment Research. He is the editor of Daily Profit.

 

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SQNM, ARIA, QLIK, DRWI, HERO - Consecutive Down Stocks at NASDAQ

Sequenom, Inc. NASDAQ:SQNM opened at $7.97 and with a fall of 3.47% closed at $7.50. Company’s fifty days average price is $7.18 whereas it has a market capitalization $572.49 million.
The total of 4.73 million shares was transacted over last trading day.

Ariad Pharmaceuticals, Inc. NASDAQ:ARIA opened at $5.53 and with a fall of 2.53% closed at $5.30. Company’s fifty days average price is $4.39 whereas it has a market capitalization $672.80 million.
The total of 1.66 million shares was transacted over last trading day.

Qlik Technologies Inc NASDAQ:QLIK opened at $26.00 and with a fall of 2.31% closed at $25.79. Company’s fifty days average price is $24.56 whereas it has a market capitalization $2.01 billion.
The total of 1.99 million shares was transacted over last trading day.

DragonWave, Inc.(USA) NASDAQ:DRWI opened at $8.95 and with a fall of 2.26% closed at $8.66. Company’s fifty days average price is $8.02 whereas it has a market capitalization $304.08 million.
The total of 1.25 million shares was transacted over last trading day.

Hercules Offshore, Inc. NASDAQ:HERO opened at $3.72 and with a fall of 2.19% closed at $3.58. Company’s fifty days average price is $2.99 whereas it has a market capitalization $410.93 million.
The total of 2.12 million shares was transacted over last trading day.

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Write a Winning Appeal: Secrets For Turning a Company’s “No” Into a “Yes”

�You killed the bird,� the pet-store owner barked, pointing an accusatory finger at me.

�That�s not what the necropsy said,� I replied.

�Yes you did!�

�No I didn�t.�

Around and around we went in circles. But the pet store had my $900 and no intention of returning it. And my beloved African gray parrot named Scarlett, who I had adopted just a few days before, was gone. She�d dropped dead of pneumonia � a condition she probably had when I picked her up from the pet store, according to the vet.

Businesses sell shoddy products all the time, from defective TVs to sick exotic birds. When they do, you have a choice: Accept the �no� or fight it.

I fought it.

And here�s what I learned from that incident, which took place a few years back: You can win. The trick is appealing your denial in the right way, to the right people.

When a company turns you down, you don�t have to take their first �no.� Or even their second or third. Here�s how to successfully appeal a rejection.

Start at the bottom

Give the system a chance to work. If you haven�t already done so, contact the company through its customer-service department. The point of this exercise is to collect evidence that you gave the company an opportunity to make things right. That could be important later if the company tries to blow you off and you need to go to court. If you�re dealing with a sole proprietor or small business, visit the store in person and ask for a refund.

Get a rejection in writing

Don�t accept �no� for an answer by phone. Ask the company to put it into an e-mail or letter. That way, you have something to add to your file. I hope you won�t be rejected, but if you are, you want cold, hard proof that the company gave you a thumbs-down. No worries, you�re not out of options. In fact, you�re just getting started.

Be patient

The typical grievance takes six to eight weeks to resolve. Yes, six to eight weeks. A lot of them are faster, but many routinely test the eight-week limit. There�s no excuse for dragging things out, of course, but patience is a must when dealing large companies. They will almost certainly test yours. (Mine was swift, since I was dealing directly with the owner.)

Appeal to a higher authority

Did you get a form letter politely asking you to take a hike? It�s not over. Every company has a vice president of customer service or a manager who is in charge of dealing with �customer experience.� That�s who needs to hear from you next. These executives go to great lengths to keep their names and contact information from becoming public. But a quick online search will reveal the contact person. I list many of them on my site, On Your Side. This doesn�t apply to small businesses, of course.

Take another deep breath

Don�t overreact. Simply enclose copies of all of the correspondence with a cover letter to the VP, politely asking the company to reconsider its decision. Copy the same group of people. Be pleasant and nonthreatening, but firm.

Take extreme measures

If the company still says �no,� you should consider the �Hail Mary,� a respectful but insistent letter overnighted directly to the chief executive officer along with the disappointing string of �nos� you�ve received. This is a little-known loophole in the system. Something FedExed to the top exec has an excellent chance of being read by that person.

Tell on �em

Contact law enforcement or regulatory authorities and ask them to investigate your complaint. A grievance to your state�s insurance commission, local ombudsman or to the Federal Trade Commission can have a truly magical effect .

Dispute the charge on your credit card

This ! works mo re often than you�d think. If you believe you have a reasonable case, and the company refuses to entertain your request for a refund or a replacement, you may have no choice than to dispute the purchase. Your rights under U.S. law are spelled out in the Fair Credit Billing Act, but not all disputes are covered. Read up on the law before invoking it.

Go to court

Most consumer issues would be handled by a small-claims court, which doesn�t require that you hire a lawyer. Companies like going to court about as much as the average person does, so filing a complaint may be enough to get the company to see things your way. Occasionally, the company won�t send a lawyer to represent them in which case you�ll win by default.

Go to war

In an age of blogging and social networking, there�s one final court to which you can take your grievance � the court of public opinion. Starting a gripe blog can be therapeutic and can inflict untold damage on an intransigent company in the form of lost business. This should only be considered as a last resort. A gripe-site is a time-consuming and emotionally draining project. But it can also be very rewarding.

How did I get my $900 back? Even though my story reads a little bit like a Monty Python skit, returning Scarlett�s body to the pet store was the longest drive of my life. The store owner took the bird and the cage and even after the necropsy results, offered me nothing � not even a refund on the cage. Every effort to reason with her failed.

I wrote to her and I pleaded with her by phone, to no avail. Finally, I disputed the charge on my credit card. Even though my bank had a policy against accepting disputes involving live animals, it made an exception. I won.

 

 

 

 

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Why Should One Invest in Gold?

Gold is one of the most popular precious metals for investment today. Historically, gold has remained a measure of wealth as well as the medium of exchange for many years. It is more than just a commodity; it is unofficially a currency used all over the world. Central banks around the world use gold to backup their respective currencies.

Gold can be used as an investment for two main reasons. Firstly, investors buy gold in order to benefit from rising gold prices. Secondly, investing in gold can be used as a hedging strategy against financial downturns or crisis.

There are various methods of investing in gold. The most straightforward way is to buy in the shape of gold bars, coins or bullions. They are a great way of preserving wealth and passing it on from one generation to another. Gold in this form can either be bought over the counter or through a gold dealer. This can be termed as the least risky of all gold investment strategies.

Another investment strategy is to invest in gold exchange traded funds, which are traded in the form of shares on stock exchanges around the world. By investing in ETFs, one can avoid having to physically store gold bars. Gold certificates also allow investors to invest and trade in gold without having to actually store it. Another method of investment is to buy its stocks, specifically shares in its mining companies. While adopting such a strategy, it is important for investors to analyze the companies and their financial performance before deciding which one to invest in. In this way, when the price of gold raises, the gold mining company benefits from it and in turn, the investor also get a part of that benefit.

Various banks around the world offer investors gold accounts, where it can be traded similar to any foreign currency. In this way, one can gain ownership of the account and the gold.

Besides the above mentioned strategies, its derivatives are ! also a p opular investment. These include gold futures and gold futures options, which can be used for hedging or speculating. It is important to keep in mind, however, that dealing in gold derivatives is a risky strategy that requires skill and experience. First time investors, or risk adverse investors should be investing in physical gold rather than dealing in derivatives.

It is important for investors to diversify their portfolios in order to reduce risk. Many investors believe that its can be a wise choice for diversification and can result in a healthy portfolio. Gold is a solid investment option and gold prices usually do not fluctuate much in times of economic instability or recession. In recent times, the dollar has lost its place as a stable investment option and investors are now becoming more and more interested in investing in commodities. During these difficult times, investors are more inclined towards investing their money in precious metals such as gold. Thus, it should be a part of every healthy portfolio.

Jack Wagon is a gold smith. You can take his help to buy gold bullion. For more information about buying gold you can visit his recommended website at http://www.goldmadesimple.com/.

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Which to Buy: Stocks, ETFs or Funds?

Where should you put your investment money? There are three basic choices for growing your money or building your retirement fund: stocks, mutual funds and ETFs.

Your choice depends upon a number of factors based primarily upon your willingness to accept risk, the risk of losing, your time to manage your investments and, of course, your desire for growth, for profits.

How you choose to invest, where to place your money, doesn’t have to be exclusive to just one type or another; you can mix and match. Each of these four basic types has their own pluses and minuses:

• Stocks are the most well-known. Investing in stocks allows you to pick individual companies such as Ford (F) or Apple (APPL). In buying stocks you are banking on the growth and success of the individual company to prosper so that it’s shares increase in value and thus your account grows.
With the ‘right’ pick the potential for major profit is great. On the other hand, the potential for major loss is equally great should the company falter, the economy tanks or world events scare investors.

• Mutual Funds offer some protection from the traumatic roller coaster effects that can occur with individual stocks. Not totally, but somewhat. This is because funds are composed of many stocks based upon the nature or description of the fund. A ‘utility’ fund, for example, will consist of stocks from electric companies, natural gas companies and even telephone companies.

Because each fund is ‘managed’ the manager of the fund will buy and sell individual stocks to produce the best returns for the fund as a whole. And because the fund is invested in many stocks if one company’s stock dives the result is not as severe as it could be because the growth of others tends to balance out the overall value of the fund and in this respect, help to protect your money while still of! fering g rowth.

Buying and selling of mutual funds is governed by many more rules than either stocks or ETFs. For example most funds have required minimum holding periods which mean once purchased you cannot sell for 30 or 60 or 90 days, depending upon the fund, without paying a penalty.

• ETFs are similar to mutual funds but are not managed on a daily basis like funds. Because once an ETF is built with the various company stocks it tends to remain with those holdings. In this respect an investor buying ETFs is still diversify his holdings when he buys a ‘utility’ ETF.

An advantage of ETFs over mutual funds is that they trade like stocks. This means you can buy and sell at any time. There are no minimum ‘hold’ times, for example.

In terms of risk and greatest potential profits these three types of investments would rank:
1. Stocks
2. ETFs
3. Mutual Funds

In terms of time requirements, you can invest in any of the three regardless of whether you have lots of time or very little. However, if you have very little time, less than an hour a month, stocks would be more risky unless you are buying strictly for the long term.

Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana. View his software at: http://www.dynamicinvestorpro.com

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Debt ceiling fight may come sooner than expected

NEW YORK (CNNMoney) -- Remember the bitter debt ceiling debate in Washington last summer? The one that resulted in the first-ever downgrade of the U.S. credit rating?

Well, another showdown could be in the offing sooner than planned.

The deal cut this summer to end the debt ceiling standoff provided for a $2.1 trillion increase in the country's legal borrowing limit, which now stands at $16.394 trillion.

At the time, it was estimated that such an increase could carry the Treasury Department safely beyond the contentious presidential election season and into early 2013.

Bush tax cuts: The real endgame

But now that Congress has extended the payroll tax cut, emergency unemployment benefits and the so-called Medicare doc fix -- only some of which was paid for -- there is a greater chance that U.S. borrowing could reach the debt ceiling sooner.

Treasury Secretary Tim Geithner recently told lawmakers that even with passage of the payroll tax bill -- which will add an estimated $101 billion to deficits in fiscal year 2012 -- he doesn't expect the debt limit to be reached "until quite late in the year."

That's a hair past the Nov. 6 election but smack dab in the middle of the fiscal firefight that Congress is expected to have over the expiring Bush tax cuts.

Meanwhile, the Bipartisan Policy Center, which analyzed projected monthly deficits and other factors that could play a role in Treasury's borrowing, now projects that the debt ceiling could be hit between late November 2012 and early January 2013.

Of course, if need be, the Center notes that Treasury could still avert a U.S. default by employing "extraordinary measures" -- such as suspending investments in federal retirement funds.

So even if Treasury is at risk of hitting the ceiling at the end of November, it's possible that its moves could take the risk of default off the table until early 2013.

Keep in mind, though, that these estimates assume nothing material cha! nges bet ween now and the end of the year to increase federal borrowing.

But if there are any surprises along the way -- such as a slowdown in the economic recovery that puts a crimp in federal revenue, or more unpaid-for legislation -- the debt ceiling could be hit before Election Day, said longtime political observer Norm Ornstein, a resident fellow at the American Enterprise Institute.

Either way, the presidential election, the pending expiration of the Bush tax cuts and the debt ceiling are a combustible mix. And it's impossible to predict the endgame for any of them yet. Much will depend on when the ceiling is breached and who wins the election, Ornstein said.

For example, he noted, if President Obama loses the election, he may still have a strong hand to play in the debt ceiling negotiations, since it's unlikely that the Republican incumbent will want his first task in office to be rounding up votes for a debt ceiling increase, especially if he campaigned against it. 

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Having Food Delivery For Lunch

Waiting in line for long minutes at a fast food eatery isn’t the soundest way to spend your lunch hour. Waiting for a table to clear up for you at an eatery doesn’t hold much appeal also. But you still have to eat, and you don’t have anything with you. What are you going to do? Why not just dial food delivery?

Dialing for food delivery is like calling your food to come to you. What is great about food delivery is that it is both quick and convenient. It is also cheaper to have your food delivered than going out to have it.

Yes, there’s an extra charge and a minimum order requirement. But think of it this way: the additional charge, generally a very sensible amount, is a lot cheaper than the money you will use to buy gasoline or pay the bus fare just to go to that place.

With food delivery, you can have hot soup without the bother of going out in the rain for it. If you are feeling a little sick, there’s no reason to fight the elements when you can have food delivered to you. That’s what so good about it, you don’t have to go outside if it’s too hot or too cold for you or you simply doesn’t feel like it. You can’t say the same for getting a take-away meal or going through a drive-thru.

Just bear in mind, though, that they can refuse to offer service if the weather condition is severe or if there are events of unforeseen circumstances.

Restaurants that provide food delivery service have good packages for food. You don’t have to worry about your hamburger dripping, steak getting cold, or your dessert getting soggy. That’s what food delivery should be about: quality food in no time. So eateries choosing to have this service should know how to pack food well.

Food delivery makes your break time trouble-free and convenient. It saves you a few dollars and energy as well. So why go out to line up for your lunch if you can have food brought to you?

Planning to throw a party? Choose halal foods from! our del ectable catering packages. Looking for Singapore’s superb Halal restaurant? Call us today! Check here for free reprint licence: Having Food Delivery For Lunch.

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Good Chinese Stocks In 2014

Encouraging data earlier this month led to a bullish beginning for the markets in September. Thus far, the S&P 500 Index is up 8.8% — propelled higher on good global economic news. At the top of the stock market news is strong data from China’s manufacturing sector.

According to two recent surveys, Chinese manufacturing activity rose in August for the first time in four months. The two surveys showed production, new orders and purchasing prices all climbed higher in the month. Given the strength in the Chinese economy, I continue to expect China stocks to outperform in the coming rally with another 25% to 40% upside by year-end.

Overall, despite the inevitable volatility in the markets along the way, the unprecedented growth drivers in China will continue directing investors to where the real opportunity resides.

Here are my top five China stocks to buy as we enter October.

Good Chinese Stocks In 2014:SORL Auto Parts Inc. (SORL)

 SORL Auto Parts, Inc., through its principal operating subsidiary, Ruili Group Ruian Auto Parts Co., Ltd., engages in the development, manufacture, and distribution of automotive brake systems and other safety related auto parts for commercial vehicles, such as trucks and buses. The company, through its 90% ownership in Ruili Group Ruian Auto Parts Co., Ltd., a Sino-foreign joint venture, offers various products, including spring brake chamber, clutch servos, air dryers, relay valves, and hand brake valves. It also provides auto metering products, auto electric products, anti-lock brake systems, retarders, hydraulic brakes, and power steering products. SORL Auto Parts, Inc. markets its products under the SORL brand to automotive original equipment manufacturers and the related aftermarket customers in the People?s Republic of China and internationally. The company was founded in 2003 and is headquartered in Ruian City, the People?s Republic of China.

Advisors' Opinion:

• By Robert Hsu At 2011-9-13

  Sorl Auto Parts (NASDAQ: SORL) has purchased the assets of the hydraulic brake, power steering, and automotive electrical operations of Ruili Group Auto Parts. As a result of this acquisition, Sorl’s product offerings will expand to both commercial and passenger vehicles’ brake systems and other key safety-related auto parts. The company expects it will allow the company to streamline its management organization, as well as create efficiencies in production, R&D and its sales network. In addition, Sorl’s management expects the acquisition will be beneficial to the company’s revenues and earnings.

  Sorl paid 170 million yuan — or about $25 million — for the acquisition, and the company believes it will generate about $35 million in revenues and about $4 million in net income in 2011. In addition, Sorl expects the acquisition to generate incremental free cash flow in both 2010 and 2011.  SORL has outperformed earnings estimates for four consecutive quarters, and its stock price rose 71.7% over the past 12 months. 

  Now, the chairman and CEO of Sorl Auto,  Xiao Ping Zhang, is also the controlling shareholder of the Ruili Group. However, the price paid for the acquisition was based on a valuation of the purchased business performed by Asia’s leading appraisal company, DTZ Debenham Tie Leung — lessening the possibility of a conflict of interest with regards to the sale.

  Overall, I think this was a good purchase by Sorl. The acquisition will allow the company to offer its customers more high-quality products to fulfill their needs from one source. In addition, because both companies share similar visions, I expect the combination of their internal resources will create favorable economies-of-scale that will strengthen earnings and create shareholder value. Buy SORL under $10.

Good Chinese Stocks In 2014:AsiaInfo-Linkage Inc. (ASIA)

 AsiaInfo-Linkage, Inc. provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People?s Republic of China. The company offers business and operation support systems product suites, including OpenBilling, a billing solution for telecommunications operators; OpenCRM, a CRM solution suite for telecommunications operators; OpenBOSS, a carrier-class business operation support system solution; OpenBI, a carrier-class operating analysis and decision support system platform; OpenPRM, a system that calculates, manages, and reconciles payment for intercarrier network access. It also provides network management solutions comprising NetXpert, a data and Internet protocol network management solution; and OpenXpert, an integrated telecommunications network management system. In addition, the company offers service applications products, such as Mail Center, an online messaging software; Spam Patrol software for real time anti-spam control; and Net Disk, a network hard disk product, which facilitates Internet-based file transfer, sharing, and management, as well as supports other functions, such as data processing of short message folders and synchronization of mobile devices. Its service applications products also include Internet Short Messaging Gateway, a business support platform for value-added short messaging services; and Device Management Platform that enables mobile operators to manage various mobile devices and perform remote mobile device management, such as remote diagnosis and parameter setup. In addition, it offers software enhancement and maintenance, system integration, and other value-added IT consulting and planning services. The company was formerly known as AsiaInfo Holdings, Inc. and changed its name to AsiaInfo-Linkage, Inc. in July 2010. AsiaInfo-Linkage, Inc. was founded in 1993 and is headquartered in Beijing, the People?s Republic of China.

Good Chinese Stocks In 2014:China Automotive Systems Inc. (CAAS)

 China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China.

Good Chinese Stocks In 2014:NetQin Mobile Inc. (NQ)

 NetQin Mobile Inc. operates as a software-as-a-service provider of consumer-centric mobile Internet services focusing on security and productivity in the People?s Republic of China and internationally. It provides a suite of mobile Internet services that protect mobile users from security threats and enhance their productivity. It offers mobile security services, including mobile malware scanning, Internet firewall, account and communication safety, anti-theft, performance optimization, hostile software rating and reporting, and other services to protect users from mobile malware threats, data theft, and privacy intrusion. The company also provides mobile productivity services comprising screening incoming calls, filtering unwanted spam, SMS messages, protecting communication privacy, and managing calendar activities, as well as cloud-side synchronization of personal data, including address books, text messages, and calendars to enhance time and relationship management. In addition, it provides personalized intelligent cloud services that utilize synchronized user information to provide tailored user experience and extend the functionalities of its core services. Further, the company offers security forums and download services for third-party mobile applications. The company was founded in 2005 and is based in Beijing, the People?s Republic of China.

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Cognex Corporation Reports Fantastic Second Quarter Results

 

Machine Vision Company Announces Significant Increases in Revenue, Net Income and Earnings per Share

NATICK, Mass.–August 1, 2011, (CRWENEWSWIRE)– Cognex Corporation (NASDAQ:CGNX) today announced its financial results for the second quarter of 2011. Revenue, net income, and net income per share for the quarter and six months ended July 3, 2011 are compared to the prior quarter and the second quarter and first six months of 2010 in Table 1 below.

 

	Revenue	Net Income	Net Income Per Diluted Share
Quarterly Comparisons
Current Quarter: Q2-11	$ 83,393,000	$ 19,097,000	$ 0.45
Prior Year’s Quarter: Q2-10	$ 71,811,000	$ 14,927,000	$ 0.38
Change From Q2-10 to Q2-11	16%	28%	19%
Prior Quarter: Q1-11	$ 74,394,000	$ 13,363,000	$ 0.32
Change From Q1-11 to Q2-11	12%	40%	38%
Year to Date Compariso! ns
Six Months Ended July 3, 2011	$157,787,000	$ 32,733,000	$ 0.77
Six Months Ended July 4, 2010	$130,778,000	$ 23,472,000	$ 0.59
Change From First Six Months of 2010 To First Six Months of 2011	21%	39%	30%

 

�This was an outstanding quarter for Cognex,� said Dr. Robert J. Shillman, Chairman of Cognex. �We expected to have a good quarter when we gave revenue guidance in May but the actual results surpassed our estimate. Demand was strong in both the Factory Automation and Surface Inspection markets; in fact, we received a record level of orders from each of those markets during the quarter, resulting in record bookings overall. This order strength led to the second highest quarterly revenue in Cognex�s 30-year history. The substantial leverage that incremental revenue has on our profitability drove our gross margin to 77%, operating margin to 29% and net income to 23% of revenue for the quarter.�

�We are very pleased with our performance in the second quarter of 2011,� said Robert J. Willett, Chief Executive Officer of Cognex. �Revenue increased significantly over both the second quarter of last year and the prior quarter as we continued to execute well on our growth initiatives. A key contributor was our business in Asia, particularly China, where we foresee good long-term growth potenti! al for m achine vision. And, from an operations standpoint, we delivered strong margin expansion while investing in new product development and in our sales team.�

Details of the Quarter

Statement of Operations Highlights � Second Quarter of 2011

Revenue for the second quarter of 2011 increased 16% from the second quarter of 2010 and 12% from the prior quarter. The increase, both year-on-year and sequentially, was due to record revenue from the Factory Automation market. The largest percentage increase was in Asia, primarily due to strong growth in China where Cognex is expanding its sales and distribution network.

Gross margin was 77% in the second quarter of 2011, 74% in the second quarter of 2010 and 75% in the prior quarter. Gross margin increased year-on-year due to leverage from the higher revenue level and a stronger mix of modular vision systems, which are Cognex�s highest-margin products. Gross margin increased on a sequential basis also due to the higher revenue level as well as improved margins on surface inspection products and services.

Research, Development & Engineering (R, D & E) spending in the second quarter of 2011 increased 30% from the second quarter of 2010 and 11% from the prior quarter. The increase year-on-year is due to investments in engineering headcount to accelerate new product introductions, stock option expense, and higher patent-related costs on products under development. The increase on a sequential basis is primarily due to a higher bonus accrual. Also contributing to the increase in R, D & E spending, both year-on-year and sequentially, was the impact of foreign exchange rates on the company�s international operations.

Selling, General & Administrative (S, G & A) spending in the second quarter of 2011 increased 14% from the second quarter of 2010 and 1% from the prior quarter. The increase year-on-year is due to the company�s initiative to expand its sales organization, the impact of ! foreign exchange rates, higher stock option expense and higher spending on marketing programs.

The tax rate was 23% in all quarters presented.

Balance Sheet Highlights � July 3, 2011

Cognex�s financial position as of July 3, 2011 was very strong, with no debt and $353,388,000 in cash and investments. In the second quarter of 2011, Cognex generated positive cash flow from operations of approximately $27,300,000, and paid out $3,780,000 in dividends to shareholders.
Inventories as of July 3, 2011 were relatively flat with the end of the prior quarter.

Financial Outlook

In Q3-11, revenue is expected to be between $78 million and $81 million, which is a decrease of 3% to 6% on a sequential basis due to typical seasonal softness. Operating expenses are expected to be relatively flat with Q2-11. And, the effective tax rate is expected to remain at 23%.

Non-GAAP Financial Measures

Exhibit 2 of this press release includes a reconciliation of certain financial measures from GAAP to non-GAAP. Cognex believes that these non-GAAP financial measures are useful to investors because they allow investors to more accurately assess and compare the company�s results over multiple periods and to evaluate the effectiveness of the methodology used by management to review its operating results. In particular, Cognex incurs expense related to stock options included in its GAAP presentation of cost of revenue, research, development, and engineering expenses (R, D & E), and selling, general and administrative expenses (S, G & A). Cognex excludes these expenses for the purpose of calculating non-GAAP adjusted net income and non-GAAP adjusted net income per share when it evaluates its continuing operational performance and in connection with its budgeting process and the allocation of resources, because these expenses have no current effect on cash or the future uses of cash and they fluctuate as a result of changes in Cogn! ex�s stock price. Cognex also excludes certain items if they are one-time discrete events, such as revenue from certain customers. Cognex does not intend for these non-GAAP financial measures to be considered in isolation, nor as a substitute for financial information provided in accordance with GAAP.

Cognex estimates the tax effect of the items identified in the reconciliation by applying its effective tax rate to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such items is estimated by applying such specific tax rate or tax treatment.

Analyst Conference Call and Simultaneous Webcast

Cognex will host a conference call to discuss its results for the second quarter of 2011, as well as its financial and business outlook, today at 5:00 p.m. Eastern time. The telephone number for the live call is 866-835-8905 (or 703-639-1412 if outside the United States). A replay will begin at 8:00 p.m. Eastern time today and will run continuously until 11:59 p.m. Eastern time on Thursday, August 4, 2011. The telephone number for the replay is 888-258-7854 (or 703-925-2490 if outside the United States) and the access code is 1539078.

Internet users can listen to a real-time audio broadcast of the conference call, as well as an archive replay of the call, on Cognex�s website at http://www.cognex.com/Investor.

About Cognex Corporation

Cognex Corporation designs, develops, manufactures and markets a range of products that incorporate sophisticated machine vision technology that gives them the ability to �see.� Cognex products include barcode readers, machine vision sensors and machine vision systems that are used in factories, warehouses and distribution centers around the world to guide, gauge, inspect, identify and assure the qua! lity of items during the manufacturing and distribution process. Cognex is the world’s leader in the machine vision industry, having shipped more than 600,000 vision-based products, representing over $3 billion in cumulative revenue, since the company’s founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has regional offices and distributors located throughout North America, Japan, Europe, Asia and Latin America. For details, visit Cognex on-line at http://www.cognex.com.

Certain statements made in this press release, which do not relate solely to historical matters, are forward-looking statements. These statements can be identified by use of the words �expects,� �anticipates,� �estimates,� �believes,� �projects,� �intends,� �plans,� �will,� �may,� �shall,� �could,� �should,� and similar words. These forward-looking statements, which include statements regarding business and market trends, future financial performance, customer demand and order rates, market opportunities, growth initiatives and strategic plans, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) current and future conditions in the global economy; (2) the cyclicality of the semiconductor and electronics industries; (3) the inability to penetrate new markets; (4) the inability to achieve significant international revenue; (5) fluctuations in foreign currency exchange rates; (6) the loss of a large customer; (7) the inability to attract and retain skilled employees; (8) the reliance upon key suppliers to manufacture and deliver critical components for Cognex products; (9) the failure to effectively manage product transitions or accurately forecast customer demand; (10) the inability to design and manufacture high-quality products; (11) the technological obsolescence of current products and the inability to develop new products; (12) the failure to ! properly manage the distribution of products and services; (13) the inability to protect Cognex proprietary technology and intellectual property; (14) involvement in time-consuming and costly litigation; (15) the impact of competitive pressures; (16) the challenges in integrating and achieving expected results from acquired businesses; (17) potential impairment charges with respect to Cognex�s investments or for acquired intangible assets or goodwill; (18) exposure to additional tax liabilities; and (19) the other risks detailed in Cognex reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2010. You should not place undue reliance upon any such forward-looking statements, which speak only as of the date made. Cognex disclaims any obligation to update forward-looking statements after the date of such statements.

Source: Cognex Corporation

Contact:

Cognex Corporation
Susan Conway, 508-650-3353
Director of Investor Relations
susan.conway@cognex.com

 

 

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

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European banks to soak up more ECB money

NEW YORK (CNNMoney) -- After unleashing a wave of liquidity earlier this year, the European Central Bank is set to offer European banks another chance to soak up billions of euros in cheap loans.

On Wednesday, the ECB will announce the results of its second Long-Term Refinancing Operation, in which banks will be able to borrow money for 3-years at interest rates as low as 1%.

In December, the ECB allotted nearly €500 billion under the first round of the operation, which went to 523 banks in the eurozone.

Officially, the loans are part of the ECB's effort to prevent a credit crunch in Europe, where banks have been struggling to fund themselves since late last year amid concerns about exposure to bad sovereign debt.

But the program, along with other aggressive moves under ECB president Mario Draghi, has been widely credited with bringing down borrowing costs for Italy and Spain.

Since the first LTRO, yields on 10-year Italian bonds have dropped to about 5%, down from highs above 7% late last year. Spain's borrowing costs have also backed off last year's highs, holding near 5%.

Both nations have drawn strong demand at auctions of short-term bonds this year, easing fears of a full-blown debt contagion in the eurozone.

"It is likely that there will be further support for these bonds over the next month or so," said Garry Jenkins, a credit analyst at Swordfish Research.

Money market funds dip back into eurozone debt

The improvement has allowed the ECB to scale back its purchases of government debt under its controversial securities market program.

Investors say the ECB has helped restore confidence in global financial markets by mitigating the risk of a banking crisis and creating some breathing room for euro area governments. But there are questions about how the market will respond to the second round of LTRO financing.

"The ECB's decisive action has helped to stabilize demand for Spanish and Italian bonds, and the 3-y! ear tend er will free further cash," said Kim Rupert, a fixed-income analyst at Action Economics. "But it remains to be seen whether the cash will find its way to the bond market."

Banks are under no obligation to use ECB loans to buy government bonds. Given the heavy refinancing needs and more stringent capital requirements European banks are facing this year, many may be tempted to stockpile the cash.

"It will be interesting to see how markets develop and auctions fare after the 3-year tender is out of the way," said Rupert.

In the meantime, the big question is how much money will banks borrow Wednesday?

Estimates have ranged from €300 billion to €500 billion, though some analysts have said banks could take up to €1 trillion.

The estimates reflect expectations that more non-euro area banks will participate, along with automakers and other corporations that can access ECB funds as "monetary financial institutions."

"No one can have a good idea of the demand for cash at this operation, although optimism seems to reign supreme," said Carl Weinberg, chief economist at High Frequency Economics.

Yet some analysts say banks might be reluctant to borrow too much in order to avoid the "stigma" of appearing strapped for cash.

"There is a question whether strong participation will be viewed as signaling increased willingness to buy risky assets, or as a sign of funding weakness," said Steven Englander, currency strategist at CitiFX, in a note to clients.

G20 chiefs: Europe needs a bigger financial firewall

Englander estimates that €600 billion would be "an unambiguous positive surprise," but he warned that if banks borrow less than €300 billion "there could be a bit of a scramble in markets until it becomes clear what drove the lack of participation."

Beyond the immediate market reaction, there are questions about how effective the program will b! e in res olving the underlying causes of the debt crisis in the eurozone.

Draghi has said the ECB's goal is to support the banking sector and boost lending to the "real economy." He has stressed that the ECB is legally prohibited from supporting government finances and that the onus is on policy makers to reign in spending.

Guy Mandy, fixed income analyst at Nomura Securities, said in a research report that the LTRO has reduced the possibility of a bank failure due to a liquidity crisis.

But he suggested that a more lasting solution to the debt crisis would involve the ECB committing to buy government bonds directly from banks, a monetary strategy known as quantitative easing.

"We think this is a temporary solution to the inability of banks to access unsecured financing and as such has only indirect lasting benefit for the underlying eurozone debt crisis," Mandy said. 

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Choosing The Best SSL Certificate For Your Business

There are different kinds of SSL certifications available, namely, the dedicated, shared, wildcard and free which vary in cost. It’s important to do your search well so that you will be able to get the best price available. Your choice will depend primarily on the needs of your online business and the price you’re willing to pay.

The dedicated SSL is the most costly SSL that you can acquire for your business since it is assigned specifically to the domain of your site. This requires that you have your own domain ending. Having a dedicated SSL certification means you alone are able to use it.

Another form of SSL is the shared SSL. This is available by way of web hosting, which means that it’s not as expensive compared to the dedicated SSL. Because of its nature, there’s a tendency that it can be offered at no cost. Since it features a generic name, your domain name will not be displayed. The requirement for employing a shared SSL is that you would have to first set it up.

Wildcard SSL is another form of SSL certification, which is specifically for websites with sub domains. Due to the fact that data transfers and exchange are protected, this ensures that the sub domains attached to the site are all secure.

With the free SSL certificates, as the name implies, you will not have to shell out money any longer, or, even if you have to, it is the one with the lowest cash outlay. The draw back of free SSL certificates is that they cannot boast of the same level of safety as other paid certifications do. If you decide to avail of this, just make sure to check the credibility of the source and steer clear of those that may just cause damage to your business. It must be noted, however, that free trial SSL certifications from legit suppliers are valid and fully functional, which can be used for a thirty to 60 day limited period.

Before purchasing an SSL certification, it is vital that you take to mind the degree of security that your chosen supplier presents ! against the actual requirements of your business. Take note that 128 bit encryption is the standard in the industry. Anything with a higher number is categorically a better option for you in terms of security.

Click for further information on SSL or SSL Certificate.. Unique version for reprint here: Choosing The Best SSL Certificate For Your Business.

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Obama's 30% millionaire tax

NEW YORK (CNNMoney) -- President Obama this week defined what he believes should be the minimum "fair share" for millionaires and billionaires to pay in taxes. His answer: At least 30% of their income.

"If you make more than $1 million a year, you should not pay less than 30% in taxes," Obama said during his State of the Union address.

The 30% marker is the first real detail Obama has offered since proposing the so-called Buffett Rule last September. That rule is a guideline intended to ensure that the very wealthy don't pay a lower percentage of their income in taxes than anyone in the middle class.

It's named, of course, after billionaire investor Warren Buffett, who has repeatedly asserted that he pays a lower percentage of his income to the IRS than his secretary.

The Congressional Research Service this fall estimated that a quarter of millionaires don't pay enough in federal taxes to satisfy the Buffett Rule. The CRS arrived at the number after considering what filers pay in federal income, payroll and corporate taxes combined.

Billionaires with 1% tax rates

It's not clear, though, whether the president wants the rich to pay a minimum of 30% in federal income taxes alone or on a broader swath of taxes like CRS measured. Nor is it clear how he defines $1 million in income. Is it gross, adjusted gross, modified adjusted gross or taxable income?

Obama also called for an end to tax deductions for millionaires on home, health care, retirement and child care. It's not clear how that might work in conjunction with the 30% rule.

The White House did not respond to requests for more details. Obama is set to submit his 2013 budget proposal to Congress on Feb. 13, when he might flesh out his new millionaire tax proposal.

Obama's 30% "fair share" rule raises many other questions as well.

The lessons of Romney's taxes

Among them, would it operate as a kind of alternative Alternative Minimum Tax? If so, a wealthy! taxpaye r might need to calculate his tax liability three times instead of just two and pay the highest tax bill of the three.

Then again, the president often talks about the Buffett rule in conjunction with tax reform. But a full-blown overhaul of the tax code is often proposed as a way to make it simpler and more efficient.

In that context, the Buffett Rule would fail the simplicity test.

"We're not simplifying the tax code here," said Roberton Williams, a senior fellow at the Tax Policy Center. "Anytime you say, 'I'll follow the rules except when the rules aren't good enough,' it complicates things."

Of course, many see tax reform as an opportunity to make the tax code fairer, however they define it.

In that sense, Obama might get some support for a 30% rule, although not necessarily enough in Congress to pass it anytime soon.

At least one billionaire who could be hit hard by the 30% rule came out in support of the idea this week.

"I think it's fair," hedge fund manager George Soros told CNNMoney's Poppy Harlow at the World Economic Forum in Davos, Switzerland. "There are a lot of people like me ... in the 1% who feel this is appropriate."

As for the charge that Obama is pursuing class warfare? "Well, that's what my fellow hedge fund managers are saying," Soros said. "But I think it's because they don't like to pay taxes." 

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Gold sets mark in 2011, and we could see another high next year

Gold prices were quite volatile in 2011. There were a lot of fireworks for the precious metal, not the least of which was a new record for gold prices in 2011 — the London fixed price of gold hit $1,895 twice in early September. Spot gold prices for immediate settlement, also known as gold futures to some, briefly cruised to $1,916 per ounce around the same time.

Click to Enlarge Investors who bought gold in 2011 were richly rewarded. Year-to-date, the precious metal is up 25% — with very few periods where gold moved down instead of up.

But gold investors typically are less concerned with the past than they are curious about the future. Specifically, what will 2012 gold prices hold for precious metals and commodity investors?

In a nutshell, it should be more of the same — strong demand from risk-averse investors, the prospect of high inflation propping up commodity prices and hopes of yet another record for gold in the new year.

Let�s take a look at these three issues in more detail, and also the best ways to invest in gold to profit from these trends:

    

Gold Price Driver #1: Fear

The correlation between rising gold prices and rising uncertainty is clear. Whether it�s because you�re afraid to take a risky play in this shaky stock market or whether it�s because you fear political and economic shenanigans are devaluing paper money, gold appeals to investors of all stripes when fear is on the rise.

Just look at a history of gold prices, and you�ll see the biggest rises were amid some of the biggest periods of uncertainty. Adjusted for inflation, the true record of gold prices is roughly $2,500 in today�s dollars based on the peak levels of the precious metal in 1980 — a year during which the Cold War was raging, inflation was sky-high, t! he S& ;L crisis was starting to heat up and super-expensive oil threatened the global economy.

The reasoning is simple: Gold has been valuable since the days of the pharaohs and will remain valuable as long as it is a rare commodity. When you are more concerned with finding a place to store your money safely than growing it aggressively, gold is your fallback option.

What uncertainties lie ahead? Well, a short list is the ever-raging euro zone debt crisis, the prospect of a debt crisis and further credit downgrades in America, persistently high unemployment, geopolitical unrest due to the �Arab spring� and the turmoil of the 2012 presidential elections.

Seems like fear will be in favor again in 2012, which bodes well for gold investors.

    

Gold Price Driver #2: Inflation

Another big reason for people to jump on the gold bandwagon is because of commodity inflation. Because of monetary policies in the U.S., including quantitative easing and ultra-low interest rates, the inflationary picture is looking ugly to many investors.

Here are some headlines to chew over:

• In November, the average cost of a Thanksgiving dinner jumped a whopping 13% over the previous year because of inflation.
• The annual inflation rate peaked at a red-hot 3.9% this fall and has cooled to �only� about 3.5% currently.
• Many experts, including renowned Quantum Fund founder Jim Rogers, have ramped up criticism of inflation methodology, saying it paints a rosier picture to protect politicians. Considering the ugly outlook with these numbers, it�s disturbing to imagine they are even worse if this criticism is valid.

The biggest fear during the financial crisis was a Japan-style deflationary spiral — where falling prices lead to decreased demand which leads to falling prices, and so on.

America ha! s tried to inflate its way out of such a disaster. It worked. But now we are left with the hangover of inflation as a result, and that in turn is going to take time, policies and patience to resolve.

In the meantime � buy gold.

    

Gold Price Driver #3: Legitimate Investment, Not a Bubble

It would be silly to talk about these macroeconomic trends and ignore the plain fact that because gold is an investment, it is subject to the same buying rush and speculation as any other investment. The only question, then, is whether gold is in a bubble because of irrational buying or whether it is a legitimate investment.

There are a few signs of a bubble, surely. Some people expect gold, like real estate circa 2005, to only go up — influenced no doubt by late-night �cash for gold� infomercials.

But there also are a host of signs that gold investment is sustainable at these levels and will not just evaporate. Exchange-traded funds like the SPDR Gold Shares (NYSE:GLD) provide millions of Americans access via their IRA — putting gold investment plainly in reach. GLD actually is managing more money than the SPDR S&P 500 ETF (NYSE:SPY) these days! Sure, some of that money could rotate out to other assets. But much of it likely will stay and provide a floor for gold prices.

As for future investment, the previous two points show legitimate reasons for investing in gold along with the claptrap about �guaranteed� returns in the precious metal. So while there are suckers buying in, smart folks continue to buy into gold, too. Besides, the constant drumbeat of stories predicting a gold bubble in 2011 indicates that enough skepticism exists to keep gold prices honest.

As with any investment, there is no way of knowing what 2012 will hold for gold. But fears of a bubble should not d! eter you from buying gold in the new year.

3 Best Ways to Invest in Gold

There are a handful of ways to invest in gold, and each has its own costs and benefits.

The most common option for investors these days is via ETFs like the aforementioned SPDR Gold Shares or the iShares Gold Trust ETF (NYSE:IAU). The pair of funds have more than $80 billion in physical gold assets, proving their popularity. GLD is 10 times the size but has a 0.4% expense ratio vs. 0.25% for IAU. Over time this can eat into your performance, but the ease of trading and the lack of physical gold in your possession is attractive to many folks.

Less accessible is the idea of owning physical gold in the form of bars or coins. This, of course, saves you the management fee — but logically it should involve an investment in a safe or other security so your hoard doesn�t get stolen. If you have a big stash, the cost of a sizable safe could be the least of your worries since a single cubic foot of gold bars weighs more than 1,200 pounds! That�s a big logistical mess. Also, trading in physical gold can be risky if you don�t do your homework — gold coin scams are popular and costly for investors. Selling also is problematic for physical gold because you can�t just dump shares on the open market like the gold trust ETFs. You have to find a human buyer willing to pay what you�re asking.

A less direct way is to invest in stocks of gold miners like Goldcorp (NYSE:GG) or Randgold Resources (NASDAQ:GOLD), or diversified ETFs like the Market Vectors Gold Miners ETF (NYSE:GDX) that own shares in a bunch of these stocks. But remember that you are investing in a stock as much as gold, and your investment will not track the movement of gold prices 100%.

Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace.com, follow him on Twitter via @J! effReeve sIP and become a fan of InvestorPlace on Facebook. As of this writing, he did not own a position in any of the aforementioned stocks.

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Banks may finally improve foreclosure practices

NEW YORK (CNNMoney) -- After five years and four million foreclosures, the nation is now one big step closer to a national mortgage servicing standard.

The country's largest mortgage servicers will now have to follow a strict protocol when trying to foreclose on a delinquent borrower, thanks to a $26 billion mortgage settlement spearheaded by state attorneys general. These banks service nearly 60% of the nation's mortgages.

And if they don't, an independent monitor can slap them with penalties of up to $1 million per offense or $5 million for certain repeat violations.

The long-awaited settlement, announced Thursday, is expected to change the way banks handle foreclosures, experts said. And that's a big plus for homeowners who are behind in their payments.

"They've done something the federal government has failed to do -- establish a national servicing model," David Berenbaum, chief program officer at the National Community Reinvestment Coalition, said of the attorneys general.

The agreement requires the five banks -- Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Wells Fargo (WFC, Fortune 500) and Ally Financial -- not only to stop robosigning documents, but also to notify delinquent customers in advance of initiating a foreclosure. It also sets up timelines and procedures for reviewing loan modification applications and mandates that banks set up a single point of contact for each borrower.

Two of the most important advances are that homeowners will be able to appeal if they are turned down for help and banks will be barred from initiating foreclosures at the same time as processing loan modification applications. This eliminates the so-called dual track problem, in which customers simultaneously get modification documents and foreclosure threats.

"A lot of families had their homes taken away while they had modifications or were negotiating modifications," said Peter Swire, a law profess! or at Oh io State University and former Obama housing advisor.

Top 10 turnaround towns

Finally, an independent monitor will ensure that banks are adhering to the rules. Joseph Smith Jr., who serves as North Carolina's commissioner of banks and was unsuccessfully nominated to head the Federal Housing Finance Agency, will be the inaugural watchdog.

The monitor will also publish regular reports that identify servicers who fall short of the standards.

"They know they'll be on the hook," said David Min, associate director for financial markets policy at the left-leaning Center for American Progress, of the banks. "It's a relatively severe standard that will bring them in line."

Thursday's agreement has a lot more teeth to it than an enforcement action announced by federal regulators last April against 14 servicers, experts said. The regulators called for similar measures, but the banks were allowed to monitor themselves. At the time, consumer advocates criticized the action as being too easy on the banks.

And the penalties associated with the federal action were a pittance compared to the states' settlement. In fact, two federal regulators Thursday announced they would impose $1.2 billion in penalties against several major servicers. The fines were included in the state settlement.

The financial industry, meanwhile, applauded the deal and called for the creation of rules that would apply to all mortgage servicers.

"Borrowers, servicers and the economy itself will benefit from uniform national rules," said the Financial Services Roundtable in a statement.  

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Best Chinese Stocks To Hold In 2012

Encouraging data earlier this month led to a bullish beginning for the markets in September. Thus far, the S&P 500 Index is up 8.8% — propelled higher on good global economic news. At the top of the stock market news is strong data from China’s manufacturing sector.

According to two recent surveys, Chinese manufacturing activity rose in August for the first time in four months. The two surveys showed production, new orders and purchasing prices all climbed higher in the month. Given the strength in the Chinese economy, I continue to expect China stocks to outperform in the coming rally with another 25% to 40% upside by year-end.

Overall, despite the inevitable volatility in the markets along the way, the unprecedented growth drivers in China will continue directing investors to where the real opportunity resides.

Here are my top five China stocks to buy as we enter October.

Best Chinese Stocks To Hold In 2012:Netease.com Inc. (NTES)

 NetEase.com, Inc., an Internet technology company, engages in the development of applications, services, and other technologies for the Internet in China. It provides online game services to Internet users through the in-house development or licensing of massively multi-player online role-playing games, including Fantasy Westward Journey, Westward Journey Online II, Westward Journey Online III, Tianxia II, Heroes of Tang Dynasty, and Datang, as well as the licensed game, Blizzard Entertainment's World of Warcraft. The company also offers online advertising on its Web sites. In addition, NetEase has paid listings on its search engine and Web directory, and classified advertising services, as well as an online mall, which provides opportunities for e-commerce and traditional businesses to establish their own storefront on the Internet. Further, it provides wireless value-added services, such as news and information content, matchmaking services, music, and photos from the Web over SMS, MMS, WAP, IVR, and Color Ring-back Tone technologies. Additionally, the company offers community services, including instant messaging, online personal advertisements, matchmaking, alumni clubs, and community forums; and aggregates news content on world events, sports, science and technology, and financial markets, as well as entertainment content, such as cartoons, games, astrology, and jokes from over 100 international and domestic content providers. NetEase.com, Inc. was founded in 1997 and is based in Beijing, the People?s Republic of China.

Best Chinese Stocks To Hold In 2012:PetroChina Company Limited (PTR)

 PetroChina Company Limited produces and distributes oil and gas in the People?s Republic of China. It operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. The Exploration and Production segment explores, develops, produces, and markets crude oil and natural gas, oilsands, and coalbed methane. As of December 31, 2010, it had 11,278 million barrels of proved reserves of crude oil; and 65,503 billion cubic feet of proved reserves of natural gas. The Refining and Chemicals segment engages in the refining of crude oil and petroleum products; and production and marketing of petrochemical products, derivative petrochemical products, and other chemical products. This segment?s product line comprises processed crude oil, gasoline, kerosene, diesel, ethylene, synthetic resins, synthetic fiber materials, polymers, synthetic rubber, and urea. The Marketing segment involves in the marketing of refined products and trading businesses. It operated 17,996 service stations. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and the sale of natural gas. It had a total length of 56,840 kilometers (km) of oil and gas pipelines, including 32,801 km of natural gas pipelines, 14,782 km of crude oil pipelines, and 9,257 km of refined product pipelines. The company was founded in 1988 and is headquartered in Beijing, the People?s Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.

Advisors' Opinion:

• By Smith At 2011-8-26

   

  With a market capitalization of $260 billion, PetroChina is at the top of our list. The company has a regular dividend policy and last year's dividend yield was 3%. Its global competitors, such Royal Dutch Shell (RDS.A), British Petrolum (BP), Chevron Corporation (CVX) and Exxon Mobil (XOM), are competing fiercely. Meanwhile, PetroChina has an almost monopoli! stic pos ition in China. In the last 10 years, the stock price increased 10-fold, from $15 in 2001 to $150 in 2010. That's a 1000% return within the last 10 years excluding dividends.

Best Chinese Stocks To Hold In 2012:Giant Interactive Group Inc (GA)

 Giant Interactive Group, Inc. develops and operates online games in the People?s Republic of China. The company focuses on massively multiplayer online (MMO) games that are played through networked game servers in which thousands of players are able to simultaneously connect and interact. Its online games include ZT Online, a two-dimensional online role-playing game; ZT Online PTP, a pay-to-play game based on the ZT Online free-to-play game; Giant Online, a military-themed MMO game; and ZT Online Classic Edition, a version of ZT Online for players who prefer the original monetization features of ZT Online. The company markets and sells its prepaid game cards and game points through distributors and retail outlets, including Internet cafes, software stores, supermarkets, bookstores, newspaper stands, and convenience stores, as well as through official game Website. As of September 30, 2010, its distribution network consisted of approximately 130 distributors, and reached approximately 96,000 retail outlets. The company was founded in 2004 and is based in Shanghai, the People?s Republic of China.

Best Chinese Stocks To Hold In 2012:Home Inns & Hotels Management Inc. (HMIN)

 Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• By Conrad At 2012-1-29

  Home Inns & Hotels Management (HMIN) is the largest hotel chain in China. Growth is as easy as opening new hotels … the cookie-cutter growth model. The company has no debt, unlike most hotel chains, and profit margins were 19.6% in the latest quarter.

Best Chinese Stocks To Hold In 2012:Sohu.com Inc. (SOHU)

 Sohu.com Inc., through its subsidiaries, engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Its brand advertising business provides advertisements on its portal Websites to companies to enhance brand awareness online; and online gaming business involves in the development, operation, and licensing of multi-player online role-playing games. The company?s sponsored search business provides placements in its search directory, as well as pay-for-click services for primarily small and medium-sized enterprise customers; and wireless businesses offers value-added services, such as news, weather forecast, chatting, entertainment information, ring tones, and logo downloads to mobile phone users. Sohu.com Inc. aggregates content for various channels, which cover news, sports, entertainment, business and finance, women, automobile, and information technology; online video content; and communication and community tools, such as alumni clubs, blogs, email, message boards, Web messenger, and social networking services. Its Web properties include sohu.com, a mass portal and online media destination; 17173.com, a games information portal; focus.cn, a real estate Website; chinaren.com, an online alumni club; and sogou.com, an interactive proprietary search engine. The company was formerly known as Internet Technologies China Incorporated and changed its name to Sohu.com Inc. in September 1999. Sohu.com Inc. was founded in 1996 and is headquartered in Beijing, the People?s Republic of China.

Best Chinese Stocks To Hold In 2012:LDK Solar Co. Ltd. (LDK)

 LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, the People?s Republic of China.

Advisors' Opinion:

• By Paul At 2012-2-22

  LDK Solar Co., Inc.(NYSE: LDK) closing price in the stock market Tuesday, Jan. 3, was $4.38. LDK is trading 9.48% above its 50 day moving average and -11.82% below its 200 day moving average. LDK is -70.74% below its 52-week high of $14.97 and 71.76% above its 52-week low of $2.55. LDK‘s PE ratio is 6.53 and its market cap is $573.78M.

   

  LDK Solar Co., Inc. engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects together with its subsidiaries. LDK offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules.

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IBM: Sterne Agee Starts at Buy, $230 Target

Sterne Agee’s Shaw Wu this afternoon started coverage of International Business Machines (IBM) with a Buy rating and a $230 price target, writing that the stock’s current 11.4 forward P/E multiple on projected 2013 EPS of $17 should be more like 13.5 times, as the company deserves a premium given “its relative predictability.”

EPS growth of 10% to 15% over several years is “not dependent on the top line, but rather a growing mix of higher-margin software (23% of revenue) through organic means and acquisitions” writes Wu. And he thinks the company’s goal to reach $20 per share in profit by 2015 is “achievable.”

Wu calls IBM the “model enterprise company,” in its early appreciation of how to “add value” with services, and also the role the company has taken as the “strategic advisor of choice to governments and corporations around the world.”

IBM shares today closed down 82 cents, or 0.4%, $192.82.

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Worst place to lose your job: Florida

NEW YORK (CNNMoney) -- If you lose your job in Florida, chances are you won't find another one any time soon.

The Sunshine State has the highest rate of long-term unemployment in the nation. Some 53% of jobless Floridians were out of work for more than six months in 2011, according to Brookings' Hamilton Project, which crunched Census data.

Many of those unemployed residents will cast their vote Tuesday in the state's Republican presidential primary.

Much of the blame for the malaise lies in the implosion of the housing market, economists say. Florida's building boom, which fueled all types of employment, came to screeching halt in 2007. The state's unemployment rate soared to one of the highest in the nation, peaking at 12% in December 2010.

"During the boom, the Florida economy was going gangbusters," said Sean Snaith, economics professor at the University of Central Florida. "We lost hundreds of thousands of jobs."

In the past year, the state's employment picture has brightened a little bit, in sync with the national trend. Some 130,000 jobs were created and the unemployment rate has slipped to 9.9%. Tourists are once again flocking to Florida's beaches and amusement parks, lifting the leisure and hospitality industry. Opportunities are also expanding in health care.

Governor Rick Scott, who highlighted the state's 1 million unemployed residents in speeches last year, has heavily lobbied businesses to relocate to Florida. He also has decreased regulation and lowered certain taxes.

"The best thing we can do to help the long-term unemployed in this state is to create jobs," said Lane Wright, the governor's spokesman.

Rick Scott's Florida scorecard

Still, about 913,000 folks remain without jobs.

Cristina Garcia of Hollywood, Fla., is one of them.

The 59-year-old has been searching for work since being laid off from her accounting job in September 2009.

Last year, Garcia earned a medical business m! anagemen t certificate, betting that there would be more opportunities in the health care sector. She's also been volunteering at a local hospital, hoping to land a post there and interning at a medical management company.

Garcia had been living off of unemployment and income from a rental home, but her benefits recently expired and she lost the property to a short sale. She hopes to find a job soon.

"It's been tough," she said. "People are getting more confident and opening jobs, but not at the speed that people want them."

Although the market is starting to loosen up, there are four jobseekers for every open position in Florida, said Mason Jackson, chief executive of the WorkForce One career center in Fort Lauderdale. Businesses are still hesitant to hire because of continued uncertainty in the economy.

"If we filled every job we could find, 75% would still be unemployed," Jackson said.

The housing market continues to weigh on the Florida economy and its job market. More than one in five borrowers are behind in payments, while 44% of homeowners owe more than their property is worth.

This prevents homeowners from moving away to look for work, said Tony Villamil, dean of St. Thomas University's School of Business in Miami.

"They are locked in their homes," he said.

Compounding the problem is a mismatch of skills between jobless Floridians, many of whom worked in construction, and available positions, which are in other industries.

"People with skills for the housing industry can't get jobs in growing fields such as health care," said Snaith, who doesn't expect the state's unemployment rate to fall below 9% until late 2014. 

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