RIMM Halted, Jumps 9%: FYQ3 Rev, EPS Beat, Subscriber Count to 79M

Research in Motion (RIMM) shares were halted this afternoon just before the company reported fiscal Q3 revenue and earnings per share that beat analysts’ expectations.

Revenue in the three months ended in November fell 47%, year over year, and fell 5%, quarter over quarter, to $2.7 billion, yielding a net loss of 22 cents.

Analysts had been modeling $2.65 billion and a 35-cent loss per share.

The company shipped 6.9 million BlackBerrys and 255,000 of its PlayBook tablet computers.

Subscriber count in the quarter was down from the prior quarter at 79 million versus 80 million in fiscal Q2.

Gross margin in the quarter rose from the prior quarter’s 26% to 30.4%, which is likely to come as a surprise to many on the Street, as the average estimates had hovered around 27%, based on reports I’ve seen this week.

RIM ended the quarter with $2.9 billion in cash and equivalents, up $600 million.

CEO Thorsten Heins remarked, “”RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10.”

Heins noted RIM

Continued to demonstrate our strong financial position, generating $950 million in cash flow from operations, and increasing our cash position significantly to more than $2.9 billion. More than 150 carriers are currently completing technical acceptance programs for the first BlackBerry 10 products, and beta trials of BlackBerry Enterprise Service 10 are underway at more than 120 enterprises including 64 Fortune 500 companies. This is an exciting time and our carrier partners, application developers and employees are all looking forward to unveiling the innovation and excitement of BlackBerry 10 to our customers on January 30, 2013.

RIM said that BB10 debut in January may delay purchases of BlackBerry, prompting an operating loss this quarter amidst continued pressure on prices in the smartphone market:

The Company expects that there will be continued pressure on operating results as it gets set to launch its BlackBerry 10 platform in the fourth quarter. The Company intends to continue to consider using pricing initiatives on BlackBerry 7 devices and service fees in some markets as a way to maintain our subscriber base and drive more BlackBerry users. The timing of the BlackBerry 10 launch event for January 30, 2013 could also impact sales of current BlackBerry 7 products as some customers may defer purchasing decisions and wait for BlackBerry 10 devices. All these factors are expected to impact unit volumes, subscribers, margins and service fees. In addition, the company will be significantly increasing its marketing spending this quarter as expected, to support the global launch of BlackBerry 10, and the Company expects to report an operating loss for the fourth quarter.

Chief information officer Robin Bienfait will retire at the end of the year, RIM said.

RIMM stock is up 6 cents, or 0.4%, at $14.18 in late trading before the stock halt. Shares are expected to resume trading at 4:40 pm, Eastern.

RIM management will host a conference call with analysts at 5 pm, Eastern time, and you can catch the webcast of it here.

Update:�RIMM shares have resumed trading and are up $1.26, or 9%, at $15.38.

 

Institutional Investors See Advantages in Index Funds

Institutional investors are a segment of the market consisting of traders who make large trades that qualify them for preferential treatment with a broker. This can include lower commissions and fewer regulations that dictate their market participation. Examples of institutional investors are pension funds and other types of large entities that buy quantities of shares in bulk amounts.

This type of investor can buy shares in many types of market products that include individual stocks, various types of bonds and specific commodities. However, an institutional investor many also decide on a type of index fund instead of individual securities. One type of index fund that is an option to a passive institutional investor is an exchange traded fund. This type of fund is traded on stock exchange has assets that include stocks, bonds and commodities. They track an index such as the S&P 500.

The use of an exchange traded fund is beneficial to the institutional investor because of the ability to be flexible. This type of market vehicle is often seen as an alternative to using futures. This type of product does not require the use of margins, a special account or documentation that may be necessary for other types of financial products. Using this type of investment allows for tracking a market segment or product without having to buy large quantities of an individual security.

Other types of institutional investor that are more active include hedge funds. Investments for this type of fund are convenient for active traders because they are traded in the same way as stocks. Funds offer flexibility that is not available with other types of index funds. Traders will also benefit from the use of exchange traded funds because they are not included in the short sale uptick rule.

This use of exchange traded funds or available in many markets such as those in countries in Asia. This will include the Singapore Exchange and the Hong Kong Exchange. Investors in these markets have access to funds that are not available in the European and American markets. However, the type of fund that is used for an investment vehicle will depend on various factors such as risk and return.

Traders that will take advantage of exchange traded funds are those that seek to have long-term growth of capital and active returns on their investment. They are a great way to track the investment return of a market segment or specific type of financial product.

Asian institutional investors face new challenges this year in a difficult market situation; visit our website to learn more.

The Job Interview From Start To Finish

The questions you ask are usually used by the interviewer to evaluate your fitness for the job. You should research enough to be able to ask questions that are not found in obvious places such as the organization's annual report. Find out about the job and the company when it's your turn to ask questions. Ask the questions you prepared in advance. Feel free to ask for specifics about who you would report to and the duties involved. Be prepared to ask at least three questions in areas concerning the job, the company, the industry, external influences.

Do not ask questions that raise red flags
By asking "Is relocation a requirement?" the interviewer may assume that you do not want to relocate at all. If you do not mind relocating, try asking "I understand that most companies like their executives to spend time at their various major locations. Could you tell me how often I might be asked to relocate over five or ten years?"

Answer a question with another question
If the interviewer asks you what salary you expect, try answering by saying "That is a good question. What are you planning to pay your best candidate?"

Rehearse your interview
Role play with a friend. You should be able to convey all pertinent information about yourself in 15 minutes. Videotape the interview to identify unwanted gestures. If videotape is not available, use your telephone answering machine to record an interview: listen to your diction and speaking speed.

Avoid negative body language
One purpose of an interview is to see how well you react under pressure. Avoid these signs of nervousness and tension:

Frequently touching your mouth
Faking a cough to think about the answer to a question
Gnawing on your lip
Tight or forced smiles
Swinging your foot or leg
Folding or crossing your arms
Slouching
Picking at invisible bits of lint

Another purpose of an interview is to see how well you communicate. Remember that communication is a two-way street; you must both listen and talk. If you are talking too much, you will probably miss cues concerning what the interviewer feels is important.

Make a connection
The purpose of the interview is to see how well you might fit into the organization. Successful interviews are one that concludes as if you and the interviewer are long lost friends. Tips to make a connection include:

Be optimistic and try to make others feel comfortable
Show openness by leaning into a greeting with a firm handshake and smile. When appropriate, give examples through short, interesting, and humorous stories about yourself. Try to envision what functions you would perform that would benefit the organization and discuss those activities.

Dress properly
One component of the interviewer's job is to make a judgment concerning your ability to fit in the organization. One factor influencing that judgment is the attire you wear for the interview. Find out about the company's expectations for personal appearance--dress expectations, hair length, facial hair, etc.

Be on time
Most organizations look at hiring, at the entry level, prospects who will become professionals. If you are a professional, you work until the job gets done--which may be longer than 8 to 5. Being on time (or early) is usually interpreted by the interviewer as evidence of your commitment, dependability, and professionalism.

Send a "Thanks for the Interview" note
After an interview, send a thank-you note. After the final interview, time the thank-you note to arrive during the week you believe the hiring decision will be made. These notes serve as a reminder to the interviewer concerning your appropriateness for the position. You may mention a topic discussed during the interview.

When the job contact was made through the Internet or e-mail, send an e-mail thank-you note immediately after the interview. Mail a second letter timed to arrive the week before the hiring decision will be made.

5-Star Stocks Poised to Pop: Pebblebrook Hotel Trust

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment trust Pebblebrook Hotel Trust (NYSE: PEB  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Pebblebrook's business and see what CAPS investors are saying about the stock right now.

Pebblebrook facts

Headquarters (Founded)	Bethesda, Md. (2009)
Market Cap	$962 million
Industry	Hotel/Motel REIT
Trailing-12-Month Revenue	$239.7 million
Management	Chairman/CEO Jon Bortz (since 2009) CFO Raymond Martz (since 2009)
Trailing-12-Month Operating Margin	6.4%
Cash/Debt	$75.3 million / $251.8 million
Dividend Yield	2.5%
Competitors	FelCor Lodging Trust (NYSE: FCH  ) Host Hotels & Resorts (NYSE: HST  ) Strategic Hotels & Resorts (NYSE: BEE  )

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

On CAPS, 97% of the 318 members who have rated Pebblebrook believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Andy Cross (TMFOpie) and boxxer55, both of whom are ranked in the top 5% of our community.

Late last month, Andy tapped Pebblebrook as a solid bargain opportunity: "Trading [at book value] for a manager that has demonstrated past performance on pulling out more value from hotel properties. And Pebble has some very nice properties on the coasts."

In fact, Pebblebrook trades at a cheapish price-to-book of 1.1. That represents a discount to industry peers like FelCor Lodging (2.8), Host Hotels & Resorts (1.5), and Strategic Hotels & Resorts (2.0).

CAPS All-Star boxxer55 elaborates on the Pebblebrook bull case:

In my opinion, this stock has the potential to be one of the best long-term performers in my portfolio over the long term (5-10 years). Management is very experienced and have already demonstrated their ability to execute their business plan. They raised money to purchase hotels after the crash, taking advantage of depressed valuations then invest to both improve revenue and reduce overhead. As earnings ramp up, the dividend will rapidly follow. ... Combine the future high dividend level with the appreciation potential of the common and you get the best of both worlds, a high dividend based on what you pay today and enormous upside appreciation potential.

What do you think about Pebblebrook, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

5 Reasons I Can’t Sell BofA Stock — And Why You Should Buy

At the end of last year, I picked the brains of several investing experts for a single stock pick they would recommend buying on the first trading day of 2011 and selling on the first trading day of 2012 � with the goal of beating the market for the calendar year. The pie-in-the sky hope was that our 10 best stocks to buy for 2011 that would give normal Joes a simple and tax-efficient opportunity to beat the market in 2011 thanks to our recommendations.

On the whole, that dream appears to be playing out thanks to a handful of standouts. �They include Zalicus (NASDAQ: ZLCS), a biotech stock picked by Michael Murphy that has gapped up 75% in less than four months, and fabless semiconductor play Mindspeed Tech (NASDAQ: MSPD) picked by Nancy Zambell, which is up over +25% so far in 2011.

So what my part in this list? Well, I cast my lot with that dog of a financial stock Bank of America (NYSE: BAC) � both in my recommendation for our feature and for my own brokerage account. Specifically, I bought 75 shares at $13.34 a share. Read my initial reasons for buying Bank of America here.

After some poor earnings and the Fed�s dividend denial, I�m 8% in the hole since my buy-in right before New Year�s. But even now I can�t bring myself to cash out of my BAC shares at current pricing and diving into AAPL shares at current pricing.

Here�s 5 reasons why I can�t sell Bank of America… at least not right now.

Corporate focus and restructuring. Before the financial crisis, Bank of America was an aggressive acquirer. The much-maligned Countrywide deal is the best known these days, let�s not forget the $47 billion in cash and stock for FleetBoston in 2004 and $35 billion for credit card powerhouse MBNA in 2005. While BofA is far from a streamlined corporate operation, the harsh reality of the financial crisis and end of acquisitions has forced the company to focus on integrating operations and cutting out the fat. That should result in improving earnings even if all things remained equal.

Mighty Merrill Lynch: And what�s more, the fire-sale purchase of Merrill Lynch in 2008 has given Bank of America access to bigger revenue streams. Merrill has strengthened Bank of America�s high-end investment offerings, and opened the door for more corporate advisory work and wealth management. Considering that the first quarter of 2011 was the best for M&A since 2007 � and that BofA Merrill Lynch ranked third in the advisory spot worldwide, ahead of vaunted Goldman Sachs (NYSE: GS) � Merrill�s business segment will be a very profitable enterprise in the months ahead. In fact, it already is judging by the performance of BofA�s �global banking and markets� segment in last week�s earnings report.

Better overall credit quality: One of the primary reasons I bought BAC stock was because I noticed improving credit quality on the financial stock�s balance sheet. And though Wall Street was disappointed that the bank�s earnings miss, it cannot be overlooked that delinquencies, non-performing assets and charge-offs continue to decline at BofA. This is a crucial long-term trend � and one that actually resulted in a reduction in loss provisions by over $2 billion in the most recent quarter. Bank of America is steadily extending credit again, but most importantly it is extending credit to folks who actually are paying their bills.

How much worse can it get? Despite this improving credit situation, most investors remain focused on the old news. Yes, the mortgage business continues to drag on earnings, sucking $2.4 billion out in the most recent quarter. But note that was substantially lower than prior periods. Yes, mortgage liability issues continue to scare off many and the threat is very real. But as the January rally after a Fannie/Freddie settlement showed, these issues have already been priced. After all, that $2 billion write-off was cheered as �good� news. From Wikileaks rumors to the departure of its CFO, the bad headlines are mostly baked in and investors have already braced for bad news. Frankly, how much worse can it get based on the current bleak outlook?

�Smart money� sees a bargain. I�m not contending that Bank of America will double by the end of the year. But it�s hard to argue against BAC bumping back up significantly when you look at Wall Street�s price targets for the stock. Out of 25 brokers watching the stock (according to Thomson/First Call data) the median target is $18.00 and the median is $18.18. That�s over 40% upside from current valuations. What�s more, the �low� target is $14 among all 25 brokers. That�s 12% above current pricing, a decent one-year return for any stock. Lastly, the most recent price forecast — from FBR Capital just a few days ago � is $15 despite a reduction from �outperform� to �market perform.� I don�t pretend to believe that Wall Street gurus know what they�re talking about 100% of the time. But if you�re going to disagree with two dozen analysts, you better have a darn good reason.

If an investor asked me today what I think of BAC stock, I would use these same reasons as a basis to recommend buying in. Maybe it�s just the self-justification of an investor underwater, but these reasons all still make sense to me. In fact, these are many of the very same reasons I chose Bank of America stock as my buy-and-hold pick for all of 2011in the first place � so why would I flip-flop now? Read my initial reasons for buying Bank of America here.

Then again, I have to note my horizon is 12 months and not 12 days. There are certainly signs that BAC stock will move sideways at best for a little while in the wake of earnings. I also have only a few thousand bucks in my �play money� brokerage account, so I�m not dependent on this investment to generate income or provide in any way for my retirement. I have a conventional 401k through my employer for long-term financial planning. So for me, I can afford to let it ride a little more � especially considering the $8 fee I suffered on my purchase and another $8 charge on the sale shaves nearly 2% of my $1,000 investment in Bank of America simply for the pleasure of playing the market.

Bank of America may not be a good buy for everyone. Heck, it may even be a good sell for many of you who currently own it based on your investing goals.

But for me, I simply can�t sell. At least, �not yet.

Jeff Reeves is editor of InvestorPlace.com. As of this writing, he owned a long position in Bank of America stock. Follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook.

Top Kuwaiti Oil Exec: "Oil to $160"

Oil prices could continue to rise, and sooner than you may expect...

One of the top oil executives of the oil giant nation of Kuwait says that prices are projected to soar as high as $160 if an embargo on Iranian oil persists.

Tension has filled the Middle East as the European Union has placed an embargo on Iranian oil imports, which has resulted in Tehran repeatedly threatening to shut down the Strait of Hormuz.

The Strait is arguably the world’s most vital and strategic waterway, since it is the sole passageway for Gulf oil exports. Iran’s threats to shut down the Strait if it is not allowed to export its signature crude, have come with great attention.

“If the embargo on Iranian oil persists, or in case of a military move over the closure of the Strait of Hormuz, oil prices are expected to soar to around $150 to $160,” Kuwait Petroleum Corporation board member Ali al-Hajeri says.

But before panic at the pump begins, Herjeri says that such a price would not last very long. He believes that oil prices to return back to “normal levels” once the reasons for the rise disappear.

He says that the current price of between $100 and $105 a barrel is “fair and acceptable to producers and consumers.” Any price higher would be counterproductive to the global economy.

From Middle East Online, 

Crude prices were lower in Asian trade on Monday as concerns over the unresolved debt crisis in Greece outweighed worries about supply disruptions in the Middle East and Africa.

New York's main contract, West Texas Intermediate crude for delivery in March, was down 54 cents at $97.30 a barrel in the afternoon.

Brent North Sea crude for March delivery shed four cents to $114.54.

 

Has News Corp. Made You Any Real Money?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on News Corp. (Nasdaq: NWSA  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, News Corp. generated $3,313.0 million cash while it booked net income of $3,117.0 million. That means it turned 9.7% of its revenue into FCF. That sounds OK.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at News Corp. look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 6.0% of operating cash flow, News Corp.'s cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 13.0% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 24.9% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

• Add News Corp. to My Watchlist.

Trading Places: Stocks Slump, Treasuries Rebound

Freezing temperatures and the recent bounce of frozen OJ futures naturally brings to mind the classic comedy, “Trading Places,” but today it’s stocks and Treasuries that are swapping spots today. Equities, which have begun 2010 on up note, are off this morning. Treasuries, which have been getting pasted for about the past month, especially on the long end of the yield curve, are trading higher.

Stocks are up from their fairly sharp opening losses following Alcoa‘s (AA) earnings miss late yesterday, however. The Dow Jones Industrials, which fell about 70 points in the early going, are off about 20 at 10,644. And with a bit of a thaw in the deep freeze engulfing much of the nation, oil prices continued to give back some their recent gains, with nearby crude futures back under $80 a barrel.

Treasuries, meanwhile, were up in price, evidently having been beaten up sufficiently to attract investor interest at the trifecta of big note and bond auctions kicking off today with the sale of $40 billion three-year notes. The benchmark 10-year note was up 22/32 and yielded 3.73%, down sharply from last week’s peak of 3.84%, which was the highest since last August.

Is Apple Stock Cheap? Relatively Speaking, Yes

By Dan Burrows, BNet

Apple (AAPL), the hottest stock on the planet -- LinkedIn's IPO notwithstanding -- is an overhyped tech stock, right? Actually, by relative valuation measures, data suggest it's cheap.

Ordinarily index investors needn't concern themselves with an individual stock's valuation. That is to say, if a stock looks cheap by price/earnings ratio (PE) and likely to go higher, or too expensive and therefore bound for a fall.But Apple accounts for huge chunk of some very popular ETFs and so we thought we'd give it greater scrutiny.

Even after rebalancing by the Nasdaq, Apple will still account for 12% of assets (down from 20%) of the PowerShares QQQ ETF (QQQ). Apple is also the largest holding of the iShares Dow Jones U.S. Technology Sector Fund ETF (IYW), accounting for about 14 percent of the fund's assets, according to the latest data. And at the Internet Architecture HOLDRs (IAH), Apple makes up 23 percent of the portfolio. Not that you would actually own the Internet Architecture HOLDRs.

Since Apple has so much sway in those ETFs, we thought we'd take a look at some relative valuations measures -- all of which suggest the stock is a bargain.

For the rest of this article, click here.

Get info on stocks mentioned in this article:

• AAPL
• IAH
• IYW
• Manage Your Portfolio

The Real Challenge Facing Beermakers

The following video is from Monday's MarketFoolery podcast, in which host Chris Hill, as well as analysts Joe Magyer and Jason Moser, discuss the top business and investing stories.

The craft-brewing industry in the U.S. is growing rapidly and has some of the nation's bigger beer makers putting out their own craft-style brands, without much indication that it's actually mass-produced. Now the smaller breweries are calling for more transparency. In this segment, the guys ask whether this is a legitimate claim, or just a bit of whining from the little guys. Is all fair in love and beer?

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." Grab a copy free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Apple: Is Verizon Wireless iPhone Ad Campaign In The Works?

CrunchGear is reporting that “the rumor mill is churning” about Landor Associates working on an ad campaign for the launch of the Apple (AAPL) iPhone on Verizon Wireless (VZ, VOD). The post notes that Landor has been working on branding with Verizon since 2007, and says it is “hard at work preparing for the iPhone HD launch.”

If the report is accurate, it would suggest that the original five-year deal with AT&T (T) that I posted about earlier this morning may have been modified.

Citigroup: S&P Reiterates Buy, Raises Estimates

In a somewhat puzzling review of Citigroup’s (C) Q1 report this morning, Standard & Poor’s financials analyst Matthew Albrecht reiterated a “Buy” rating on the stock and noted that the company blew away his EPS estimate for a 1-cent loss with 15 cents profit per share. However, he’s not budging on his $6 price target, even though his estimates are going up.

Albrecht raised his 2010 earnings estimate to 49 cents per share from a prior expectation for just break-even, and raised his 2011 estimate to 50 cents from 17 cents. But his price target is based on tangible book value, which, as Citi said today, was $4.09 in Q1.

Citigroup shares are currently up 16 cents, or 3.4%, at $4.72, one of few financials rising amidst Goldman Sachs’s (GS) travails.

In related news, Institutional Risk Analytics’s Chris Whalen went on CNBC earlier today to sing Citi’s praises, stating that “You�ve got to throw roses when it�s due and they�ve sold a lot of the business,” referring to the divestment of assets in Citi Holdings over several quarters. Whalen also remarked that he was somewhat cautious on JP Morgan Chase (JPM), stating that “this is the one I�m looking at in terms of catching up on reserves�they take a different posture.”

2013 FDA Drug Approval Decision Calendar

Here's an updated list of biotech and pharmaceutical companies with FDA drug approval decisions expected in 2013.

Biotech and drug stocks below are listed in chronological order based on the closest regulatory catalyst -- FDA drug approval decisions and advisory panels.

Johnson & Johnson (JNJ)Drug/indication: Canagliflozin for diabetes.FDA advisory panel: Jan. 10Approval decision date: March 29

See if (PATH) is in our portfolio

Theravance (THRX)Drug/indication: Vibativ for hospital acquired pneumoniaApproval decision date: Jan. 11Santarus (SNTS)Drug/indication: Uceris for ulcerative colitisApproval decision date: Jan. 16NuPathe (PATH)Drug/indication: Zelrix for migraineApproval decision date: Jan. 17, 2013Impax Labs (IPXL)Drug/indication: IPX066 for Parkinson's diseaseApproval decision date: Jan. 21Hyperion Therapeutics (HPTX)Drug/indication: Ravicti for urea cycle disorderApproval decision date: Jan. 23Sanofi (SNY) and Isis Pharmaceuticals (ISIS)Drug/indication: Kynamro for dyslipidemia/hypercholesterolemiaApproval decision date: Jan. 29, 2013Raptor Pharmaceutical (RPTP)Drug/indication: RP103 for cystinosisApproval decision date: Jan. 30, 2013Hemispherx Biopharma (HEB)Drug/indication: Ampligen for chronic fatigue syndromeApproval decision date: Feb. 1, 2013Celgene (CELG)Drug/indication: Pomalidomide for multiple myelomaApproval decision date: Feb. 8, 2013Dynavax (DVAX)Drug/indication: Heplisav for hepatitis B preventionApproval decision date: Feb. 22, 2013Roche (RHHBY) and Immunogen (IMGN)Drug/indication: T-DM1 for breast cancerApproval decision date Feb. 26Zogenix (ZGNX)Drug/indication: Zohydro for chronic painApproval decision date: March 1, 2013Depomed (DEPO)Drug/indication: Serada for menopauseFDA advisory panel: March 4Approval decision date: May 31Bristol-Myers Squibb (BMY)Drug/indication: Eliquis for blood clot preventionApproval decision date: March 15A.P. Pharma (APPA)Drug/indication: APF530 for chemotherapy induced nauseaApproval decision date: March 27Biogen Idec (BIIB)Drug/indication: BG-12 for multiple sclerosisApproval decision date: March 28MAP Pharma (MAPP)Drug/indication: Levadex for migraineApproval decision date: April 15Sucampo Pharmaceuticals (SCMP)Drug/indication: Amitzia for opioid-induced constipationApproval decision date: April 26Navidea Biopharmaceuticals (NAVB)Drug/indication: Lymphoseek, a radioactive tracing agent for lymph node mappingApproval decision date: April 30GlaxoSmithKline (GSK)Drug/indication: Dabrefenib for melanomaFDA advisory panel: June 3Delcath Systems (DCTH)Drug/indication: ChemoSat for liver metastases due to ocular melanomaApproval decision date: June 14AVEO Pharmaceuticals (AVEO)Drug/indication: Tivozanib for kidney cancerApproval decision date: July 28Companies with drugs filed to FDA but no assigned approval decision dates:Auxillium Pharmaceuticals (AUXL): Xiaflex for Peyronie's diseaseBayer and Algeta: Alpharadin for prostate cancerAntares Pharma (ATRS): Otrexup for rheumatoid arthritisGlaxoSmithKline: Dolutegravir for HIVSources: Company reports, TheStreet research, BioMedTracker>To follow the writer on Twitter, go to http://twitter.com/adamfeuerstein. Follow TheStreet on Twitter and become a fan on Facebook.

>To order reprints of this article, click here: Reprints FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!

Aspiriant Completes Acquisition of Deloitte Investment Advisors

After announcing its plans to acquire Deloitte Investment Advisors in July, Aspiriant  completed the agreement on Monday, according to the company. With the acquisition, Aspiriant, based in San Francisco, now has over $7 billion in assets under management, and advises almost 800 clients.

Aspiriant is an independent wealth management firm that formed in 2008 with the merger of Kochis Fitz and Quintile Wealth Management. Aspiriant is 100% owned by "key employees" and will continue to operate with an employee ownership model.

In addition to offices in Los Angeles and San Francisco, Aspiriant now has offices in New York, Boston, Cincinnati, Minneapolis, Minn., Milwaukee, Wis., and Detroit, Mich.

Rob Francais, CEO of Aspiriant, described the firm's approach to growth. “Among firms that express interest in joining us, we look for four distinctive culture traits when considering them: a common investment philosophy, a dedication to client service, a commitment to building a permanently independent organization, and supporting and nurturing the careers of outstanding employees,” he said in a press release.

Top Stocks To Buy For 12/2/2012-4

Celgene Corporation NASDAQ:CELG increased 1.36% closed at $62.03, its overall trading volume was 4.25 million shares during the last session. The trailing twelve month return on investment remained 17.18% while its earning per share reached $1.84.

United Therapeutics Corporation NASDAQ:UTHR gained 0.96% closed at $60.00, its total trading volume during the last session was 1.23 million shares. The trailing twelve month return on investment remained 7.69% while its earning per share reached $1.09.

Shire Plc. (ADR) NASDAQ:SHPGY advanced 0.07% closed at $70.10, its overall trading volume during the last session was 1.13 million shares. The trailing twelve month return on investment remained 15.73% while its earning per share reached $2.98.

HMS Holdings Corp. NASDAQ:HMSY reported the gain of 6.37% closed at $60.11, its total trading volume was 1.09 million shares during the last session. The trailing twelve month return on investment remained 13.85% while its earning per share reached $1.22.

Obamacare Taxes Will Wreck the Economy and Your Portfolio

This article isn’t about whether Obamacare is good or bad for the nation’s health care crisis. It’s about the heavy load of taxes that will hit Americans if the Affordable Care Act doesn’t get repealed or overturned. The bottom line is that these taxes are going to be really, really bad for the economy and for your portfolio. Here’s a look at how just a few of them will cause pain.

The first tax is a surtax on investment income. Beginning next year, long-term capital gains would be taxed at 23.8% instead of 15%. Dividends would be taxed at 43.4% instead of 15%, as would short-term capital gains. These tax hike apply to households making more than $250,000 and individuals making more than $200,000.

The Obamacare Ruling: 5 Investing Scenarios

The hike in the dividend rate is especially troubling. Many investors put funds into stocks that pay dividends because these companies are generally�large global brand names�that are considered relatively safe. The dividends provide an extra measure of safety, particularly against inflation. Many older Americans rely on�dividend and other income investing�as a way to make up for the losses inflicted by inflation.

The result is that dividend investing will be totally undermined, causing individuals and wealth managers to reallocate their portfolios. The stocks of these large-cap names may take a significant blow as investors rotate out of them. My guess is they’ll transfer into preferred stocks�or high-yield bonds. Thus, you may want to consider getting out of�large-cap names that are riding high P/E’s, like�Proctor & Gamble�(NYSE:PG),�Pfizer�(NYSE:PFE),�McDonald’s�(NYSE:MCD),Merck�(NYSE:MRK) and�AT&T�(NYSE:T). Consequently, it could make sense to rotate into the iShares S&P U.S. Preferred Stock Index ETF�(NYSE:PFF) and�Ashford Hospitality Trust Preferred D Series�(NYSE:AHT).

The other possibility is that these companies will boost their dividends to blunt some of this damage. That would leave them with less capital to reinvest in their business, continue growing and thus hire more people for that growth. That hurts the economy.

Second, the Medicare Payroll Tax will be boosted from 2.9% to 3.8% at the same income thresholds mentioned above. The result is that people in these brackets will have less money to spend and/or put toward investment. The impact will be $900 per $100,000 earned, so that money ends up in government hands rather than the economy. It’s hard to say exactly where this money won’t get spent, but I’d think luxury retailers will be potentially vulnerable. So, look to get out of stocks like�Tiffany�(NYSE:TIF) and�Ralph Lauren�(NYSE:RL).

And third is the real killer — the Individual Mandate Excise Tax, which hits anyone who does not buy health insurance. So let’s say you have X dollars of discretionary income in 2012. Beginning in 2014, you will have to spend a portion of X on health insurance or pay the excise tax. Once again, that’s money that gets lifted out of discretionary expenditures.

However, unlike the Medicare increase that hits only upper-income people, this one hits everybody. That will suck a lot of money out of the economy. I think in this case, you’re looking at a hit to consumer-discretionary stocks, so I’d look at shorting the Consumer Discretionary ETF�(NYSE:XLY) and the�PowerShares S&P SmallCap Consumer Discretionary Portfolio�(NASDAQ:PSCD), as smaller companies are more likely to get hurt.

These are only three of the 18 taxes headed our way unless Obamacare gets repealed or overturned. Act accordingly!

The opinions contained in this column are solely those of the writer.

Lawrence Meyers holds Ashford Hospitality Trust Preferred Series D. He is president of PDL Capital, Inc., which brokers secure high-yield investments to the general public and private equity. You can read his stock market commentary at SeekingAlpha.com. He also has written two books and blogs about public policy, journalistic integrity, popular culture and world affairs.

SM: This Olive Oil Costs More Than a...

The Pitch:

Video

Would you pay 15,000 for a bottle of olive oil from Greece? Wendy Bounds and Charles Passy discuss what makes this olive oil cost a pretty penny; it's all in the packaging.

An olive oil that costs more than a first-class ticket to Greece, the land of all things olive? That's what the company behind Lambda, billed as "the world's first personalized olive oil," is offering -- for $15,000 ($147 per teaspoon). And this is no simple bottle of salad dressing, says maker Speiron, which calls it "a luxurious way to enjoy life." Speiron sources the oil right down to the particular trees the olives are harvested from, and presses and bottles it to preserve "maximum freshness and fruitiness," says a company spokesperson. (The brand also classifies the oil as ultra-premium, a category that goes beyond extra virgin.) But what really distinguishes Lambda, the brand notes, is the packaging: The nearly 17-ounce bottle is embossed with the recipient's signature and comes in a lacquered case with a gold nameplate.

A Taste of Reality:

While the demand for olive oil is starting to rival that of wine among the culinary cognoscenti, most experts say a great bottle can be had for $20 or so. Zingerman's, a Michigan-based purveyor that carries an extensive selection of high-end oils, says its priciest offering goes for $60 -- and comes from an Italian producer that releases only 2,000 bottles a year. As for the packaging, the foodie crowd doesn't seem impressed. "It's marketing, fashion, what have you," says Judy Ridgway, author of four books on olive oil. But that's precisely the point, counter Speiron execs. "This is for very special people," says a spokesperson.

Year-End Review: Simple Ways to Cut Your Budget Now

2013 is right around the corner, and coming with it is the looming threat of the fiscal cliff. If a deal isn't reached between now and then, we'll all wake up on Jan. 1 with higher tax rates and lower government spending levels. One way or another, you'll likely have a bit less cash to spend, beginning with your first check in January.

That means the next few weeks would be a good time to figure out where and how to effectively cut back your spending to compensate.

Where Does Your Money Go?

The first step in trimming your personal budget is to understand where your money goes. It's a lot easier to cut your costs when you know what the biggest drains on your cash are. Then you can make plans to address those specific spending areas.

If you use personal finance software like Quicken, built-in reports will let you know where your cash is going. Alternatively, if you run most of your spending through a credit card, that card's website might have spending graphs that you can use to see where your money winds up.

Everyone's situation is different, but depending on your circumstances, your report might wind up looking a bit like this:

Each of these expenses can be adjusted to some extent. It's just a question of whether the benefits are worth the cost and effort to make the changes.

How to Slim Down Those Big Pie Slices

Taxes: The easiest way to pay lower taxes is to earn less income that gets subject to taxation. That doesn't necessarily mean you need to accept a pay cut, but rather that you should look for ways to reduce the tax impact of your earnings.

One of the easiest ways for ordinary wage earners to shelter income from taxes is to contribute to a traditional 401(k) plan. In 2013, most employees will be able to contribute up to $17,500 in their 401(k)s, with those ages 50 and up able to add $5,500 more.

Groceries: If your grocery list is heavy on prepackaged or other forms of convenience foods, you can save a bundle by buying the raw ingredients, and assembling and cooking your meals from scratch -- or something a few steps closer to it. Even simple steps like shopping with a list -- and sticking to it -- or setting a specific weekly food budget can result in significant cost-cutting.

Mortgage Interest: Mortgage rates are near all-time lows. If you have a mortgage and are able to refinance it, taking advantage of today's incredibly low rates can potentially knock thousands of dollars off your annual interest payment.

Household (Maintenance): Other than the medical expenses slice of the pie, this is the big slice that probably has the biggest variability and the biggest "surprise" element. Appliances wear out, basements leak, and roofs need repairing. Don't put off regular maintenance. Spending a small amount up front to fix small problems saves you from shelling out big dollars for big-ticket fixes. Another way to control the impact of maintenance costs is to regularly set aside money to cover repairs. Having cash on hand both improves your bargaining power with vendors and keeps you from having to pay interest on top of the costs of repairs.

Auto: Consider carpooling, telecommuting, and/or using mass transit instead of driving alone. That not only can save you direct commuting costs like gas, parking and tolls, but it can also help reduce the wear and tear on your car, which will save money you on maintenance and repairs.

Insurance: By shopping around every time your insurance policies are up for renewal, you can guarantee that you're getting the best rates. In addition, consider taking higher deductibles and saving the premium differences versus what you were charged on the old deductible, in case you ever do need to use the insurance. Generally speaking, you'll recoup the increased deductible within a few years of premium savings and be ahead money-wise if you ever do need to use it.

Utilities: Energy and water efficiency is the name of the game here. Low-flow toilets, showers, and sinks can keep your water bills down, and good insulation, compact florescent lighting, and a programmable thermostat can keep the electric and gas bills in check.

Education: Public schools often have fee waivers for those who truly can't afford an otherwise mandatory charge. And remember, there's no shame in passing on the myriad of fundraisers that schools have, especially if you're forced to choose between the fundraiser and your electric bill.

Charity: Charity is a completely voluntary expense. If you can't afford to give as much next year but still want to contribute to your favorite causes, ask what volunteer opportunities are available. Plenty of solid charities would benefit greatly from a donation of your time and talent.

Medical: The key levers you have as far as saving on medical expenses are things like asking for generic prescriptions, making sure you only see in-network physicians, and making use of lower-cost options like in-store clinics for basic care needs.

As scary as the 2013 fiscal cliff may seem, remember that you probably have some sort of wiggle room in every major expense category you have. By planning now, you can make the right choices for you and your family that will enable you to best cope with whatever financially comes your way next month.

Related Articles

• How Household Budgeting Can Keep Everyone Happy
• America Has Lower Household Debt, but Higher Personal Debt
• The Notion That You'll Spend Less in Retirement Is Totally Wrong

Chuck Saletta is a contributing writer to The Motley Fool.

Electronic Arts Is Off Its Game

by David Gibbs

Serial over-promiser Electronic Arts (ERTS) may have under-delivered for the last time when it reported earnings for the December quarter Monday after the bell. The company reported non-GAAP EPS of $0.33, beating consensus estimates of $0.31, but the real story behind the earnings release was the company’s guidance for the coming quarter, as well as the coming year.

For the March quarter, one which should reflect the release of several big-name titles, the company forecasted non-GAAP earnings of $0.02 – $0.06 / share, well below analyst estimates of $0.13 / share. ”Given that they are releasing four triple-A titles in the quarter, including the fact that ‘Mass Effect 2′ could turn into one of the year’s biggest blockbusters, it’s a problem if they can’t make money on that,” remarked one analyst in response to the forecast.

For the next fiscal year, which ends in March 2011, management expects non-GAAP earnings of $0.50 – $0.70 / share on revenue of $3.65 – $3.9 billion. As was the case for the coming quarter, these estimates came in well below the Street consensus, which called for EPS of $0.74 on revenue of $4.07 billion.

Some suspect that the cautious guidance, which starkly contrasts the brazen forecasts that the company was known for, may be little more than a shift in management thought. They surmise that management is merely trying to put themselves in a position to under-promise and over-deliver next time around. This may be the case, but we won’t know the answer until numbers for the March quarter are released. Until then, all there is to know is that shares are getting hammered on Monday’s news.

ERTS finished up the after-hours session trading at $16.04, good for an 8.29% decline. This puts shares dangerously close to their 10-month lows of $15.86, which they hit on December 9th. Since then, shares moved as high as $18.87 before leveling out at $17.49 leading into Monday’s report. Considering shares are less than $0.20 from their lows, I would definitely be on the lookout for a big shakeout Tuesday. One a positive note, if we do see significant selling on heavy volume, that may help to create a capitulation bottom for ERTS, and maybe even a buying opportunity.

Be warned though. Trying to pick a bottom in stock selling off in a correcting market is a dangerous game and I wouldn’t recommend it. Stay away from ERTS unless you’re feeling lucky, real lucky.

Disclosure: No Holdings In ERTS.

Why Income Investors Should Consider BDCs

With the historically low bond rates persisting now for the past few years, it's not surprising that many investors (rightly, in my view) have looked to the equity market for alternatives. I have written over the past couple of years about three of the more popular sectors: REITs, Utilities and Dividend Growth stocks. Another popular area that I haven't addressed is MLPs.

All of these areas have performed reasonably well, especially in 2011. The SPDR Utility Index (XLU), which represents all of the utilities in the S&P 500, has increased in price by almost 12% this year. The iShares Dow Jones Real Estate Index Fund (IYR), has retreated of late after a very strong 2010, but is still up marginally ahead of the S&P 500. The JPM Alerian MLP Fund (AMJ) is up almost 4%. The S&P 500 Dividend Aristocrats (Large-Caps that have hiked their dividend for at least each of the past 25 years) are up 2.6% in price so far this year.

So, clearly the focus on yield is helping the equity prices of many higher dividend paying segments of the market, but there is one area that has not fared well: Business Development Companies (BDCs). Before I go on, I need to point out that I am not particularly knowledgeable about these companies, but I do believe that I have a reasonably good understanding of the big picture here.

BDCs have been around for 30 years. In exchange for following several rules, these lenders are able to operate with favorable taxation (like REITs and MLPs to some degree). Specifically, they are limited in their leverage (Assets must be at least twice as high as debt, which effectively means Debt to Capital will be less than 50%). They also have to distribute 90% or more of their income. At least 70% of their investments must be in eligible securities. There are several regulatory authorities governing BDCs. So, in a nutshell, these are closed end funds making investments in or lending to small and middle-market businesses, employing limited financial leverage and paying out the bulk of their income to investors.

Before I go on, here are 15 BDCs that I have identified with market caps above $150mm (I may have omitted some):

click to enlarge image

The total market cap of the entire list is about $13 billion, smaller than a single typical Utility in the S&P 500. I included the net debt to capital - clearly, they are all relatively low leverage for Financials. Several have no net debt, and other are fairly overcapitalized. More on this later.

As I suggested, these income-producers have suffered capital losses. Most of the stocks have declined, with only non-dividend paying American Capital (ACAS) not losing value. I included the price to tangible book value - typically they trade near TBV, which makes sense. The dividend yields are typically 11%. Not surprisingly, payout ratios are high, with some apparently returning capital. Several of the companies have been boosting dividends for the past few years.

I don't intend to dive too deeply today into specific names. Fellow Seeking Alpha contributor Nicholas Marshiis an excellent resource, and he has profiled many of these companies. Instead, I wanted to share some initial observations.

Many are turned off by Financials these days. Once again, the sector is the worst in the S&P 500 in 2011 (-17% roughly). Unlike banks, though, the BDCs operate with lower leverage and more transparency and most likely are more nimble and focused due to their size. I can't prove that last point, but as far as transparency, the BDCs list each and every investment in their SEC filings, allowing investors to understand exactly what the underlying exposures are. This is great, unless you are like me and aren't a credit expert! Still, it gives everyone a flavor and more informed investors clarity.

Another issue that BDCs are forced to raise capital to grow since they pay out earnings as dividends. This serves to keep the tangible book value close to one. I can't envision an environment where the sector would command much of a premium on that front. The good news, for now, is that many of these guys are undercapitalized, meaning that they can make additional investments and perhaps boost the dividends subsequently.

A final observation is that many of these companies aren't very well known. None are in the S&P 500, and only a few are in other Standard & Poors indices. While several have a surprisingly large number of analysts (the far right column), several have few or even none. Despite all the focus on yield these days, this group seems somewhat obscure, which is a good thing for those looking for a potentially good deal.

One column that's not included (because it's not yet done!) is perhaps the most important one as far as I am concerned: Insider ownership. When investing in these types of investment funds, there are many things we need to understand better and to potentially avoid, such as embedded conflicts of interest (which exist here!) and structual or credit risks. One way to mitigate these risks is to see how much skin-in-the-game management has. I haven't completed this exercise, but I intend to do so and may post the results in a subsequent article. Please comment or message me if this would be of interest. I am impressed with CEO holdings of Hercules Technology (HTGC) and Solar Capital (SLRC).

So, in conclusion, BDCs may be a neglected potential source of income for yield-hungry investors. The amount of diligence required to pick a specific name might be high, but the ones I have looked at tend to be highly diversified. While Financials have inherent risks, the limited leverage mitigates some of the concern.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Oil Spike Creates Flight to Safe Havens in Precious Metals

Many of the great declines in the stock market over the past 30 years have been related to oil. This week we have seen the major indices plummet on geopolitical chaos throughout North Africa, especially large oil-producing Libya, as investors returned to gold (SPDR Gold Shares (GLD)), silver (iShares Silver Trust (SLV)) and oil (United States Oil ETF (USO)). As the market reached record overbought territory, Libya has been an excuse to begin a significant pullback in equities (SPDR S&P 500 (SPY)).

At the end of January investors returned to precious metals. Gold has been on sale every six months. A January phenomenon occurs when mutual funds and institutional investors reposition their holdings, sometimes allowing investors to buy a sector on sale. At the end of January, gold and silver found support as geopolitical conditions worsened. The recent Libyan crisis has caused oil to join the run in gold and silver. This oil spike has in turn caused a decline in equities. Investors are selling equities and seeking safe havens which are currently gold, silver and now returning to long term treasuries (TLT). Similar to what we began seeing in early 2010 as Europe came under pressure with sovereign debt issues.

As much as the financial crisis and record government spending has helped gold soar to record highs, terrorism and war have been major drivers of the price since September 11, 2001. The Middle East possesses approximately 65% of the world’s oil reserves, and Egypt in particular has two key assets which effect the global oil trade: the Suez Canal and the Sumed Pipeline. Many analysts did not expect Libya to fall into civil war. Reports are showing that oil exports are being curtailed, sending oil into new 52-week highs. Gold and silver has been in a 10-year uptrend and have been the safe haven and hedge against terrorism, war and skyrocketing deficits.

Disclosure: I am long GLD, GDX.

6 Auto Industry Stocks Heading for a Crash

The auto industry seems to be on the mend, thanks lately to both record imports and exports. Consumer spending has firmed up and strong emerging market sales seem to indicate growth. Just today we learned auto sales surged in March, led by small cars.

However, not all auto stocks are revved up. There are winners and losers in this sector, spanning both major manufacturers and parts suppliers, and investors need to be discerning about which car makers and parts suppliers they kick the tires on.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I am looking at six auto stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a �D� or �F� according to my research, meaning it is a �sell� or �strong sell.�

Federal-Mogul (NASDAQ:FDML) is a global supplier of powertrain and safety technologies. In the last year, Federal-Mogul stock has posted a loss of 33%, compared to a gain of 7% for the Dow Jones in the same time. FDML stock gets an �F� grade for operating margin growth, an �F� grade for earnings growth, an �F� grade for earnings momentum, and an �F� grade for cash flow. For more information, view my complete analysis of FDML stock.

General Motors (NYSE:GM) is an American designer, builder and seller of cars, trucks and automobile parts. GM stock is down 17% since last April. GM stock gets a �D� grade for sales growth, an �F� grade for earnings momentum, and a �D� grade for its ability to exceed the consensus earnings estimates. For more information, view my complete analysis of GM stock.

Gentex (NASDAQ:GNTX) is a supplier of automatic-dimming rear-view mirrors, and other lighting products. In the last year, Gentex stock has dropped 18%. GNTX stock gets a �D� grade for its ability to exceed the consensus earnings estimates on Wall Street, and a �D� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of GNTX stock.

Goodyear (NYSE:GT) is one of the most well-known tire producers and has watched its stock value sink 25% since this time last year. Goodyear stock gets an �F� grade for its ability to exceed the consensus earnings estimates on Wall Street, an �F� grade for the magnitude in which earnings projections have increased over the past months, and a �D� grade for cash flow. For more information, view my complete analysis of GT stock.

Johnson Controls (NYSE:JCI) is a provider of automotive interiors. A 22% drop for JCI stock in the last year has shareholders questioning their purchases. Johnson Controls stock gets a �D� grade for operating margin growth, a �D� grade for earnings momentum, and a �D� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of JCI stock.

Visteon (NYSE:VC) supplies climate, electronics, interiors and lighting systems. VC stock rounds out the list with a loss of 15% in the last 12 months. Visteon stock gets a �D� grade for sales growth, an �F� grade for operating margin growth, an �F� grade for earnings growth, an �F� grade for earnings momentum, a �D� grade for operating margin growth, a �D� grade for earnings momentum, and an �F� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of VC stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier�s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors

 

SM: Retire Here, Not There: Nevada

For the more than 36 million Americans who will turn 65 in the coming decade, the best cities and towns to retire in now have a much higher bar to clear: They can't just be great places -- they have to be affordable. Each week, SmartMoney.com tours a different state to find less-expensive alternatives to the most well-known golden year destinations.

While Nevada might conjure up images of bright lights and winning big at the craps table, it's got a lot more to offer than gambling. The range of living options is vast -- from the mountain spots high up in the Sierra Nevadas to the hot dry areas of the Mojave Desert where Las Vegas is located. And despite being landlocked, there are plenty of options for those who need to be by the water, including Lake Mead in the South and the Humboldt River in the North.

Also See

Retire Here, Not There: State-by-State Forget your parents' retirement destinations. These less-known gems offer lower prices and peppy economies.

Getty Images

Even better for retirees: Nevada has no state income tax and no inheritance tax. And thanks to the housing crisis -- for 60 consecutive months (or 5 long years), Nevada has had the highest foreclosure rate of any state -- experts say there are plenty of deals on real estate for those looking to relocate. Many of the state's southern towns also offer plenty of retirement communities to choose from, and sunshine nearly year round, says William Duncan, a financial planner at Duncan Financial Planning in Henderson, Nev.

Nevada does have its drawbacks. If you're tempted by gambling, which is legal throughout the state, this might not be the best place to rest your nest egg. Residents also add that in many areas of the state, there's a notable lack of cultural attractions -- likely because there simply aren't enough people to support them. Nevada is the ninth least densely populated state in the country. Furthermore, some areas of the state can get pricey. Consider posh Kingsbury, near Lake Tahoe. The cost of living is 49% higher than the national average and the median home price is more than $469,000, according to Sperling's Best Places.

But big ticket towns like Kingsbury are the exception, not the rule, in Nevada. Here are four less-expensive retirement havens in the Silver State.

Mesquite: For the golfer Photo: golfwolfcreek.com By the numbers

• Population: 16,750
• Median home cost: $186,800
• Cost of living: 5.7% higher than average
• Unemployment: 13.3%

If your dreams of retirement look something like this -- 18 holes of golf, followed by a quick dip in your community's pool and a relaxing cocktail on the patio -- then advisers say Mesquite is worth a look. This small town has seven golf courses of its own, including Wolf Creek, which Golf Digest called one of the best golf courses in America, and is located just 35 minutes from famed golf town St. George, Utah. Retirement living is varied in this town including retirement community Sun City--Mesquite, which has a golf course, two pools and tennis and boccie courts for active seniors. Indeed, retirees account for half of Mesquite's population, says Anne Miranda, the executive director of the local Chamber of Commerce.

On the downside: Travel into and out of Mesquite isn't easy. The nearest airport is the St. George Municipal Airport, in neighboring Utah, about a 35-minute drive from Mesquite. And the airport doesn't offer many flights, so you may have to drive to Las Vegas more than an hour away.

Still, residents say there's plenty to do in Mesquite beyond playing golf. The annual Mesquite Senior Games includes in a variety of sporting competitions from pickleball to softball. Or you can enjoy one of the cultural attractions in the area including the arts center, which has classes and a fine arts gallery, the community theater or the Mesquitos Dance Troupe. The area also has a new, full-service hospital.

Carson City: For the skier Valley of Fire State Park in Carson City / Photo: JEWEL SAMAD/AFP/Getty Images By the numbers

• Population: 55,132
• Median home cost: $245,200
• Cost of living: 16.7% higher than average
• Unemployment: 13.2%

Boulder, Colo., has long been touted for its great skiing and hiking, along with lots of bigger city attractions. But Nevada's Carson City boasts all that -- and at a much lower cost. Indeed, Carson City is located between the best of both worlds. Thirty miles to the west is Lake Tahoe, which offers some of the best skiing and hiking in the U.S. Head 30 miles north and you'll hit Reno, with its restaurants, casinos and shows. "Reno is a plus to us," says Ronni Hannaman, the executive director of the Carson City Chamber of Commerce. "We get those big city amenities without the big city hassles like traffic."

But Carson City is more than just a launching pad to Tahoe or Reno. Friendly residents and the small size make becoming part of the community easy, says Hannaman. The arts community here is thriving, with a volunteer symphony and jazz band. The Brewery Arts Center offers classes and events throughout the year. There is also a modern hospital and two cancer centers in the area.

Retirement experts warn, however, that if you're planning on working during your golden years, Carson City may be a challenge. Like the rest of the state, the economy is suffering. Unemployment is 13%, far higher than the national average. And the cost of living is still nearly 17% higher than the national average.

Elko: For the outdoors lover Elko, Nevada / Getty Images By the numbers

• Population: 16,887
• Median home cost: $135,600
• Cost of living: 4.3% lower than average
• Unemployment: 7.9%

Elko is a top producer of gold in the U.S., and its economy is humming along smoothly right now because of it (there's lower-than-average unemployment.) But this true western town nestled near the Humboldt River has more than shiny metal. The picturesque Ruby Mountains, about 25 miles south of Elko, are the main outdoor attraction, with lots of hunting, camping, bird watching and hiking opportunities, says Sarah Minard, an administrative assistant with the Elko Chamber of Commerce.

The town itself offers an intriguing mix of western cowboy culture and Basque roots. The annual National Cowboy Poetry Gathering in January celebrates western rural life with poetry, music and film. Every July the town hosts the National Basque Festival, complete with Spanish food and wine and often a running from the bulls ceremony. Many of the Basque people came to Elko as sheep herders and ranchers around the late 1800s and early 1900s. Plus, "it's a small, friendly town," says Minard. "People feel very welcome here." On the flip side, the tiny size and remote location means you don't have a lot of restaurant and shopping choices. There is a regional airport in Elko but many travelers find they drive three and a half hours to Salt Lake City for more direct flights.

Henderson: For the arts and culture enthusiast The Ponte Vecchio Bridge in Henderson, Nevada / Photo: Ethan Miller/Getty Images for Ravella By the numbers

• Population: 251,942
• Median home cost: $258,500
• Cost of living: 17.2% higher than average
• Unemployment: 12.4%

Located five miles from Las Vegas, low-key Henderson is just a short drive from the excellent restaurants and entertainment that Sin City offers. But as the second largest city in the state, residents say it still has plenty to see and do in its own right, while still retaining a small-town feel with lots of green space and low crime.

Henderson is well known for its cultural events. There's a multi-day arts festival in May and the William Shakespeare in the Park theater celebration in October. The Pavillion hosts world-famous musicians and artists year-around, says Bud Cranor, the director of communications for the City of Henderson.

Furthermore, the city boasts 54 parks with 65 miles of walking and hiking trails. Plus it's just minutes away from Lake Mead, a large lake created by the Hoover Dam, which offers boating, swimming and fishing galore. There are also 10 golf courses in Henderson, and many more in Las Vegas. With temperatures in the 60s most of the year, you can play nearly year around But keep in mind, summers can be scorching. Henderson is in the desert, after all.

The biggest downside to Henderson is its cost, which is cheaper than some towns near Lake Tahoe but is still 17.2% higher than the national average. In addition, the Las Vegas area economy was particularly hard hit by the recession and housing crisis and has been slow to recover. Unemployment remains high. But there is a silver lining for retirees. Home prices are down 11% in Henderson as compared to last year, according to Zillow.com. Advisers say even less-expensive housing alternatives can be found in nearby communities like Paradise and Sunrise Manor.

There’s Always A Good Reason To Buy Utility Trailers

Utility trailers are by far one of the most utilitarian vehicles available on the market today and ideal for anyone needing to make some big hauls. It’s difficult not to see the benefits that come with owning a utility trailer, no matter if you have to carry the occasional load or you find yourself pulling some important equipment through town every day of the week. They are wonderful for both residential and commercial uses and are priced fittingly to your specific needs, so there is literally a utility trailer out there for anyone and everyone.

Nearly everyone can enjoy a good camping trip with their best friends or their family members, which is why so many like to take their annual vacations in a state park somewhere far away from the big city. The difficult thing about taking a camping trip is that you have to find somewhere to put all of that camping gear and luggage, as well as all those happy campers that are coming along for the fun. You may need to sacrifice some gear or luggage, even if you’re riding in a huge SUV, but a trailer could easily hold everything you need for the trip and more.

Another thing that a lot of folks need to do from time to time is move their furniture and belongings from one home to another, which can be incredibly expensive if you don’t have the right resources. Instead of spending a ton of cash to rent a moving truck, you could simply use your own trailer to haul all of your belongings yourself without spending a single dime. If would like a way to get a return on your investment, you could do what some others have done and move other people’s personal belongings as a side job of sorts.

If you are in charge of your own construction or landscaping company and are looking for a handy way to get your equipment from job to job, you can’t ask for anything better than a utility trailer. When it’s time to get to work, all you need to do is load everything up and head on over to where you are going to be working at that day, and everything you need will be right there with you.

There are a whole lot more great reasons to have utility trailers around than just what is discussed here, and you can surely think of some yourself. So head to your local dealer and let them show you some great trailers that are ideal for both your needs and budget.

To better understand the point in this article, then just go to Utility Trailers or you might also be interested <a target='_blank' href="Enclosed Trailers.

Top Stocks For 2011-12-19-9

Results to Be Presented Wednesday, October 26, at AAPS National Meeting in Washington, DC

 

BETHESDA, MD, Oct. 24, 2011 (CRWENEWSWIRE) — Spherix Incorporated (NASDAQ:SPEX) — an innovator in biotechnology for therapy in diabetes, metabolic syndrome and atherosclerosis, and providers of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies — today announced that SPX-106T (the combination of D-tagatose and SPX-106) reduced dyslipidemia in new studies of apolipoprotein E-deficient mice and Syrian Golden hamsters. This finding corroborates data obtained in LDL receptor-deficient mice (see Spherix press release of September 8, 2011). Additionally, a new study in rats demonstrates that D-tagatose inhibits fructose absorption in the gastrointestinal tract, providing further insight into the mechanism of action of SPX-106T.

“Successful results in additional animal models increases our confidence going into human clinical trials with SPX-106T next spring,” noted Dr. Claire Kruger, CEO of Spherix.

In a poster at the American Association of Pharmaceutical Scientists (AAPS) National Meeting, Spherix summarizes results obtained with SPX-106T in two strains of genetically engineered mice prone to dyslipidemia. SPX-106T significantly reduced VLDL and LDL cholesterol in LDL receptor-deficient mice fed normal chow. In apolipoprotein E-deficient mice fed a Western (high fat/high carbohydrate) diet, SPX-106T significantly reduced serum cholesterol by 30% (-307 mg/dl; p<0.05), prevented body weight gain (p<0.05), and significantly reduced the amount of subcutaneous, retroperitoneal, and epididymal fat (77, 90, 85% reductions, respectively, p<0.01) (see photo). SPX-106T did not affect the weight of other organs (heart, spleen, etc.). A recent range-finding dose study in hamsters fed the same Western diet and given SPX-106T provided evidence that the combination was effective in reducing serum triglycerides.

“An important new element in our work with SPX-106T is that we are now performing studies designed specifically to test therapy in diet-induced lipidemia, using dosing and timing information derived from the studies completed a few months ago in LDL receptor-deficient mice,” said Dr. Robert Lodder, President of Spherix.

The poster is authored by Dr. Kruger; Dr. Lodder; Dr. Dietrich Conze, Science Consultant; and Dr. A. Wallace Hayes, Principal Advisor. It will be presented at the AAPS National Meeting from 8 a.m. to 12 noon local time on Wednesday, October 26, 2011. The Meeting is being held at the Walter E. Washington Convention Center in Washington, D.C. from October 23 through 27.

Spherix also demonstrates that D-tagatose blocks absorption of fructose through the gut. D-tagatose administered to Sprague-Dawley rats in ascending doses was given in combination with 14C-fructose and blood levels of 14C-fructose were quantified over 60 minutes. Results showed that D-tagatose significantly decreased the amount of plasma 14C-fructose up to 30% (p<0.05). The resulting decrease in systemically absorbed fructose is a mechanism by which D-tagatose can effectively reduce diet-induced dyslipidemia.

Together, the results from these new studies provide compelling evidence to support the use of SPX-106T as a therapy for dyslipidemia. Mechanistically, D-tagatose is a “sugar blocker” inhibiting carbohydrate-induced lipid synthesis. SPX-106 is a naturally synthesized peroxisome proliferator-activated receptor (PPAR) agonist. PPARs are nuclear receptors that bind DNA when activated and regulate the expression of genes involved in lipid catabolism and the uptake of oxidized LDLs. Thus, combining the mechanisms of action of D-tagatose and SPX-106, SPX-106T is thought to synergistically treat dyslipidemia by simultaneously blocking carbohydrate conversion to lipids and promoting lipid catabolism (lipid breakdown).

About Spherix
Spherix Incorporated was launched in 1967 as a scientific research company under the name Biospherics Research. The Company now leverages its scientific and technical expertise and experience through its two subsidiaries — Biospherics Incorporated and Spherix Consulting, Inc. Biospherics is dedicated to developing and licensing/marketing proprietary therapeutic products for treatment of diabetes, metabolic syndrome and atherosclerosis. Biospherics is actively seeking a pharmaceutical partner to continue the development of its Phase 3 compound for the treatment of diabetes, D-tagatose, while exploring new drugs and combinations for treatment of high triglycerides, a risk factor for atherosclerosis, myocardial infarction, and stroke. Spherix’s Consulting subsidiary provides scientific and strategic support for suppliers, manufacturers, distributors and retailers of conventional foods, biotechnology-derived foods, medical foods, infant formulas, food ingredients, dietary supplements, food contact substances, pharmaceuticals, medical devices, consumer products and industrial chemicals and pesticides. For more information, please visit www.spherix.com.

Forward-Looking Statements
This release contains forward-looking statements which are made pursuant to provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that such statements in this release, including statements relating to planned clinical study design, regulatory and business strategies, plans and objectives of management and growth opportunities for existing or proposed products, constitute forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements. The risks and uncertainties include, without limitation, risks that product candidates may fail in the clinic or may not be successfully marketed or manufactured, we may lack financial resources to complete development of D-tagatose, the FDA may interpret the results of studies differently than us, competing products may be more successful, demand for new pharmaceutical products may decrease, the biopharmaceutical industry may experience negative market trends, our continuing efforts to develop D-tagatose may be unsuccessful, our common stock could be delisted from the Nasdaq Capital Market, and other risks and challenges detailed in our filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date of this release. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.

 

 

 

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

Top Stocks To Buy For 12/20/2012-3

Smurfit-Stone Container Corporation (NYSE:SSCC) witnessed volume of 2.79 million shares during last trade however it holds an average trading capacity of 1.04 million shares. SSCC last trade opened at $41.05 reached intraday low of $40.67 and went +0.54% up to close at $41.25.

SSCC has a market capitalization $4.02 billion and an enterprise value at $4.73 billion. Trailing twelve months price to sales ratio of the stock was 0.62 while price to book ratio in most recent quarter was 1.45. In profitability ratios, net profit margin in past twelve months appeared at 24.68% whereas operating profit margin for the same period at 5.90%.

The company made a return on asset of 4.07% in past twelve months and return on equity of 289.30% for similar period. In the period of trailing 12 months it generated revenue amounted to $6.41 billion gaining $45.92 revenue per share. Its year over year, quarterly growth of revenue was 8.20%.

According to preceding quarter balance sheet results, the company had $446.00 million cash in hand making cash per share at 4.57. The total of $1.17 billion debt was there putting a total debt to equity ratio 43.75. Moreover its current ratio according to same quarter results was 2.31 and book value per share was 28.28.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 22.19% where the stock price exhibited up beat from its 50 day moving average with $38.95 and remained above from its 200 Day Moving Average with $33.59.

SSCC holds 97.54 million outstanding shares with 83.00 million floating shares where insider possessed 8.99% and institutions kept 77.60%.

Get in Now Before One or More of These Stocks Get Bought Out

For private equity (PE) firms, 2011 is the year of goldilocks -- everything's just right. Interest rates are low, the increasingly stable economy is pumping up corporate cash flows, and if you look hard enough, real bargains can be had.

  The key for PE firms (also known as leveraged buyout shops) is to find companies that throw off lots of cash flow and also come with very healthy balance sheets. That way, a company can be acquired with its own cash and new loans, putting the buyout firms on the hook for only a moderate amount of upfront cash. Ideally, they look to take these companies public again a few years later (though with much weaker balance sheets by then). That's what has happened to the likes of Hertz (NYSE: HTZ), hospital chain HCA (NYSE: HCA) and Burger King.

A little sleuthing has revealed a list of companies that may now be in focus for a major deal in 2011. These companies are big enough (with a market value above $750 million) but not too big (with a market value of less than $15 billion) to appeal to the PE crowd. Just as important, these companies carry more cash than debt and have ample additional borrowing capacity. Lastly, these companies are so robust that free cash flow (FCF) is surging, yet their valuations remain reasonable.

Every stock in this group sports a FCF yield in excess of 10%. With that kind of yield, and the ability to sell bonds against them at 6% to 8%, these deals would be winners right out of the gate. Also, these companies are so robust that you can invest in their stocks even without hoping for a buyout. On a standalone basis, they're quite attractive.

Not only private equity
Of course, the companies on this list would make compelling strategic acquisitions as well. Just this week, specialty drug maker Valeant Pharma (NYSE: VRX) offered a hefty premium to acquire biotech outfit Cephalon (Nasdaq: CEPH), which offers a powerful 12.7% FCF yield. That means the deal is likely to make money for Valeant right away, assuming the deal is approved. Looking at potential company-to-company transactions, telecom networking gear maker Tellabs (NYSE: TLAB), business software developer Blue Coat Systems (Nasdaq: BCSI) and Teradyne (NYSE: TER), which makes equipment used to test semiconductors, all would bring steady customer bases and stable, recurring sales and profits.

On several occasions in the past, I've noted that technology companies such as Symantec (Nasdaq: SYMC) or Western Digital (NYSE: WDC) would be no-brainers for the PE crowd. I also think H&R Block (NYSE: HRB), which has struggled badly in recent years, is the perfect PE play, as the bad news appears to be at an end and the company's valuations are quite low. [Read more on these names here.]

Of course, potential acquirers want to know that cash flow will remain stable well into the future. That's why I think companies such as AOL (NYSE: AOL) and The Washington Post  Co. (NYSE: WPO) are unlikely to be pursued. Cash flow at their core businesses appears to be steadily declining, so don't be tempted by the seemingly high FCF yields.

The for-profit education stocks may also start to get the attention of PE firms. The industry took many blows in 2010 as legislators grew concerned over weak graduation rates and even weaker student loan repayment rates. The resulting industry scrutiny has pushed shares of stocks such as Bridgepoint Education (NYSE: BPI), Apollo Group (Nasdaq: APOL) and ITT Educational Services (NYSE: ESI) to the point where they sport 15% to 25% FCF yields. If investors grow concerned that the industry will stabilize in coming quarters and years, then those high FCF yields are bound to attract interest.

My number One PE play: Power One (Nasdaq: PWER)
This maker of high-tech power supply equipment had staged a remarkable comeback, as its shares surged from around $1.25 in early 2009 to $12 in early February 2011. That gain was fueled by a sharp 142% jump in sales in 2010 to just above $1 billion. Even more impressively, FCF grew from $47 million in 2009 to $180 million in 2010.

Since early February, investors have soured on the stock, causing it to fall nearly 30% in the past two months. The main concerns stem from slowing demand for solar power equipment in Italy, a key market for Power One. Analysts now think sales growth will cool to just 16% this year, and profits will likely be flat as pricing and margins take a hit.

Yet many investors, including the PE shops, really want to know how business will fare down the road. And on that front, the outlook for Power One remains quite bright. Dougherty & Company thinks shares will steadily move back up beyond to those early February highs to $14: "We believe the company is setting itself up for beat and raise quarterly results in 2011. The company has strong margins, is gaining market share, and its core solar market is expected to grow above 20% for several years." Dougherty's price target implies a 2012 price-to-earnings (P/E) multiple of just 10. Private Equity firms would likely note that the company's FCF multiple could approach 25%, based on improving 2012 results.

These 4 IPOs are Doomed

If there's one thing I hate, it's when Warren Buffett is right.

He usually is, of course, and that's one of the things that make the Oracle of Omaha worth listening to.

A Buffett adage that very few people seem to take note of is this: "In the short term, the market is a voting machine, but in the long term, it is a weighing machine."

It's a little cryptic. But what Buffett is saying is that on Day One, the market is going to give anything a knee-jerk reaction. It's going to operate on its reflexes. These are often wrong, though, and over the long term the market will evaluate its initial decision based on actual results rather than initial instincts.

 

An example...

Early on, Pets.com looked like a great business. It had a huge target market. It had clever and memorable advertising. It offered good prices. There was just one problem: It never made any money.

That's because a seemingly great business idea and a truly great business plan are two entirely different things. Pets.com had done no market research. It sold its wares for a third their cost -- then shipped cat litter and heavy bags of pet food -- low-margin products in the best of cases -- for free. Now, this isn't necessarily stupid: A lot of companies concede that they'll need to lose money for a while as they establish their brand and find their footing. Pets.com said it would need four or five years to hit $300 million a year in revenue. In its first year, it had $619,000 in revenue while spending $11.8 million on advertising.

Even so, early on, the shares did well. They hovered at about $11. The market's vote, in the last weeks of the dot-com craze, was positive.

Then reality set in. Investors came to realize that none of these web-based companies had any chance of justifying billion-dollar market caps on any rational, fundamental basis.

They began to weigh the results. And 268 days after Pets.com went public, the company decided to liquidate. Shares were at 11 cents.

Now: Ask yourself whether this could happen today.

Most would say absolutely not. Investors have gotten smarter. The Internet makes money now instead of losing it. And in such an argument one could point to WebMD or LoopNet and see that, indeed, some web-based companies can turn a fat profit. LoopNet nets 20% margins, for example.

But others aren't so lucky. Many of the Web-based companies that have recently gone public are about to see a change in their market receptions. For many of these companies, the "voting machine" era will end and the "weighing machine" era will begin.

And it's not going to be pretty.

Here are four companies to keep an eye on:

1. Pandora (Nasdaq: P)
At the current earnings multiple of the Nasdaq (about 22), a company with a market cap of $1.6 billion would need to have $72.7 million in annual earnings to be fairly valued with the index. In its most recently reported quarter, Pandora managed a net margin of less than 1% on about $75 million in revenue. This is a $2.6 million profit if annualized, which was created by 40 million listeners to Pandora's online radio.

Let's do the arithmetic: The company needs to increase membership from its current levels to 1.123 billion listeners to justify its current valuation. Interestingly, if it could double its user base once a year with no attrition, then it would hit this number almost exactly. But the odds of this actually happening are pretty slim.

The company posts a gross profit of 92%. If it continues its membership growth and cuts costs, then it could legitimately earn $5 million a quarter in the foreseeable future. But $5 million a quarter is $20 million a year, which places the fair value of Pandora at about $440 million -- about a quarter of where it is today. Shares have fallen 42% since their June IPO. I expect this trend to continue.

2. LinkedIn (Nasdaq: LNKD)
The social networking website for the business crowd is worth more than $6.4 billion and is trading at more than 1,300 times earnings. This ought to be something of a red flag. On the other hand, the company managed a 6.3% net margin in the last full year of results, and revenue has since risen nearly 150%, to some $600 million. Unfortunately, profitability has failed to scale and has declined to about 1%. Thus a $6.4 billion company that should have underlying earnings of $290 million is actually netting about 2% of that.
 
My take: Value the company at 22 times annualized earnings (the Nasdaq's current multiple) at its best net margin.

It looks like this:
 
Current price to earnings (P/E) ratio of 22 x (Annualized revenue of $600 million x net margin of 6.5%)

Or: 22 x $39 million = $858 million

I'll throw in cash on hand, another $370 million, and that would add up to a fair value price of $1.2 billion --18.8% of LinkedIn's current market valuation. These shares have also bled out 30% since their IPO. You ain't seen nothin' yet...

3. Groupon (Nasdaq: GRPN)
Groupon is worth an astonishing $14 billion. That's the same as the combined market capitalization of The New York Times Co. (NYSE: NYT), Abercrombie & Fitch Co. (NYSE: ANF), Hasbro (NYSE: HAS) and Weight Watchers International (NYSE: WTW).

And yet Groupon has never earned a dime.

At $430 million in revenue in the most recent quarter, it came very close to breaking even -- but still lost $10 million. Groupon needs $640 million in net profit to justify its current market cap, which puts it in the neighborhood of companies like NYSE Euronext (NYSE: NYX) and Ralph Lauren Corp. (NYSE: RL).

Are you kidding?

In a little more than a month since its debut, Groupon has lost nearly 15% of its market cap. This is a company that is just begging to be shorted. There is simply no way it can ever meet the market's expectations. WallStreet cheered for this company because it wanted to see a big-dollar, high-tech IPO. But it wanted that because those deals make investors feel better about the future. The IPO itself? Doomed to a Pets.com-style flameout. Mark my words...

4. Angie's List
The popular review site helps its members select people to perform certain services. If you need a plumber, for instance, you might check Angie's List to make sure the one you have in mind doesn't have a lot of nasty reviews.

The site has a variety of subscription services, and also charges advertisers. The revenue mix is about 50-50. Angie's List says in its advertising that no one can pay to be on Angie's List, a claim so bizarrely legalistic that it brings to mind Bill Clinton's famous statement, "It depends on what the meaning of 'is' is."

In any case, the trouble with Angie's List is that it spends about $93 to acquire a customer, and that customer, in the best of circumstances, isn't going to generate that much revenue. And marketing is only one element of Angie's List's considerable operating expenses. At its current $860 million market valuation, the company needs to earn only $40 million a year for its shares to achieve "fair" pricing. And yet the company loses about $15 million a quarter on revenue of about $22 million. The likely story here is that Angie's List will use its cash on hand to build up its subscriber base, and then Wall Street will notice the company is 1) out of cash and 2) still losing money. When those results are weighted, expect Wall Street to be ruthless to these shares.

Open Text Zooms 12%: Stifel Ups to Buy

Shares of enterprise software vendor Open Text (OTEX) are up $7.63, almost 15%, at $60.25 after the company last night reported fiscal Q2 revenue and profit per share ahead of analysts’ expectations. This was the first quarterly report since Mark Barrenechea was appointed chief executive of the company, effective yesterday.

To recap, the company saw revenue climb 20%, year over year, to $321.5 million, yielding EPS of $1.39. That was ahead of the consensus estimate of analysts of $312 million and $1.22.

The stock got one upgrade this morning, from Stifel Nicolaus’s Blair Abernethy, who raised the shares to Buy from Hold, writing, “OpenText performed well on most metrics in 2Q and is tracking for positive organic license growth this year.”

Abernethy writes, “We believe that management credibility will be enhanced through a clearer articulation of the new CEO’s strategy and execution thereof,” adding, “Catalysts for the stock include increased partner traction,
cross selling of BPM into the ECM base, and new product traction in mobile and autoclassification, which could see broad adoption across its base.”

Abernethy raised 2012′s projected revenue and profit to $1.23 billion and $4.74 per share from a prior $1.19 billion and $4.46.

RBC Capital‘s Mike Abramsky reiterated an Outperform rating and a $75 price target. He notes the company signed seven deals that were over a million dollars each, which is “notable, considering the unusually strong Q1 (normally seasonally weak) also with 7 1M deals, despite the challenging macro.”

Of Barrenechea, Abramsky writes,

He appeared already engaged and knowledgeable about OTEX, indicating his ST/LT priorities. He sees significant, underpenetrated, double-digit growth opportunities in core ECM (Content Management) and in �process enabled� ECM (eg BPM or Business Process Management). Key opportunities include compliance, big data, cyber security and cloud/mobility.

Abramsky maintains his estimate for $1.28 billion in revenue and $4.80 per share in profit.