RadioShack Has a New CEO: Now It Needs a New Strategy

On Thursday afternoon, struggling consumer electronics retailer RadioShack (NYSE: RSH  ) announced that it has appointed a new CEO, Joseph Magnacca. Magnacca is currently an EVP at Walgreen, responsible for marketing and merchandising at the drugstore chain. According to RadioShack's SEC filing this morning, Magnacca will have a base salary of $1 million with a target bonus equal to 120% of that amount, and will also participate in a long-term incentive bonus program. Magnacca will receive a $1 million signing bonus this month, and will also receive 500,000 restricted stock units over three years. Lastly, Magnacca will be eligible to earn stock options for up to 2.5 million shares (contingent on meeting performance goals).

Magnacca seems like an odd choice for RadioShack's top job. He has no experience in the consumer electronics industry. He has worked in the drugstore industry for over a decade, and worked at Canadian supermarket chain Loblaws prior to that. Given the magnitude of RadioShack's challenges, the company is clearly taking a big gamble by hiring an outsider like Magnacca. However, RadioShack clearly needs fresh thinking, so thinking "outside the box" could prove to be a risk worth taking.

And now, a new strategy?
Magnacca will have to get his hands dirty from day one in order to fix RadioShack.� The company's traditional business -- selling cables, adapters, parts for DIY projects, computers, TVs, etc. -- has been declining for several years.� To some extent, demand for these products has dropped, while competition from online retailers such as Amazon.com has grown rapidly.

In response to this trend, RadioShack tried to diversify its revenue base by expanding into the "mobility" segment by selling cellphones and wireless plans, as well as cellphone accessories. However, the company has found that wireless product gross margins are very low.� Additionally, RadioShack faces strong competition in this segment.from Best Buy's "Best Buy Mobile" stores, which carry a similar product mix. Moreover, Best Buy plans to grow the Best Buy Mobile concept significantly going forward.

Thus, RadioShack needs a new strategy. Through the first nine months of 2012, RadioShack's revenue declined by just 1%, but gross margin dropped from 44.4% to 37.6%. The company therefore swung from net income of $60.3 million to a loss of $76.1 million. RadioShack's current market cap of $325 million is still $300 million below tangible book value, but with losses piling up, that cushion could soon disappear.

While Magnacca has been a successful executive, I am skeptical that he can turn this ship around, given his lack of industry knowledge. RadioShack is being crushed by industry trends and big "market forces," and Magnacca doesn't have much time to learn the ropes before making important strategic decisions. Until he puts forward a credible turnaround plan for RadioShack, investors should probably avoid the stock.

Learn more
Many write off any chances for RadioShack's revival, but the brand has been around for more than 80 years and survived numerous technological disruptions during that time. The question is, can RadioShack survive in today's new retail environment? To help answer that question, we've compiled an in-depth premium report covering all the opportunities, risks, and specifics that every investor should be aware of before deciding whether RadioShack is a buy or a sell. Simply click here now to claim your copy and start reading today.

LinkedIn Q4 Results Beat Estimates

LinkedIn (NYSE: LNKD  ) has reported its Q4 and 2012 results. For the quarter, the company brought in $304 million in revenue, and netted a non-GAAP figure of $40 million ($0.35 per diluted share) in profit. Those results were substantially higher than the $168 million and $13 million of Q4 2011. It also handily beat the average analyst estimates of $280 million in revenue and EPS of $0.19.

For fiscal 2012, the company's top line grew by 86% on a year-over-year basis, to $972 million. Net profit advanced nearly threefold, coming in at $100 million ($0.89 diluted EPS) against 2011's $36 million ($0.35).

LinkedIn also provided guidance for current and future periods. For Q1 of this year, it expects revenue of $305 million-$310 million, and adjusted EBITDA of $67 million-$69 million. Fiscal 2013's top line is anticipated to be $1.41 billion-$1.44 billion, with adjusted EBITDA coming in at $315 million-$330 million. It did not specify a net profit range for either period.

You can view the presentation given by the company on today's earnings call in the slideshow below:

LinkedIn Q4 2012 Earnings Call from LinkedIn

Top Stocks For 2/9/2013-10

Orofino Gold Corp. (ORFG.PK) is a new high growth gold company whose mandate is to acquire, explore and develop to compliant proven reserves major gold targets in historically rich gold bearing jurisdictions of Mexico and Colombia two of the most significant gold producing countries in the world. To this end Orofino Gold has signed an option agreement to acquire several properties in Colombia.

Orofino Gold’s competitive advantages are the close long term relationships to Mexico and Colombia with their numerous high quality low cost gold opportunities. ORFG has a Spanish speaking team with geological leadership with over 30 years in Mexico & 28 years in Colombia.Orofino Gold has performed due diligence on many prospective properties and has categorized three as good to high priority, high return opportunities for immediate investment. These properties are in areas of known gold reserves, low production costs and multi million ounce potential.

ORFG will open field offices in both Mexico & Colombia to take advantage of the local knowledge & cost effective talent pool.

Freeport-McMoRan Copper & Gold Inc.(NYSE:FCX) is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world�s largest producer of molybdenum. The company�s portfolio of assets includes the Grasberg mining complex, the world�s largest copper and gold mine in terms of recoverable reserves, significant mining operations in the Americas, including the large scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America, and the Tenke Fungurume minerals district in the Democratic Republic of Congo.

As an industry leader, FCX demonstrates proven expertise in both technology and production methods, which consist of open-pit mining, SX/EW production technology, block cave underground mining, and copper concentrate leaching.

Barrick Gold Corp. (NYSE:ABX) is the gold industry leader, with interests in 25 operating mines and a pipeline of projects located across five continents, in addition to large land positions on some of the most prolific mineral districts.

Barrick�s high level of commitment to sustainable economic development, environmental stewardship and a culture of safety was recognized by Dow Jones Sustainability Index � World, which added Barrick for the second consecutive year in 2009. Barrick also maintained its listing on the Dow Jones Sustainability Index � North America for the third year in a row.

Barrick’s vision is to be the world’s best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

Barrick entered the gold mining business in 1983 and is now the largest gold mining company by production and reserves.

Some Numbers at Gibraltar Industries that Make Your Stock Look Good

There's no foolproof way to know the future for Gibraltar Industries (Nasdaq: ROCK  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Gibraltar Industries do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Gibraltar Industries sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Gibraltar Industries's latest average DSO stands at 50.5 days, and the end-of-quarter figure is 49.5 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Gibraltar Industries look like it might miss its numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Gibraltar Industries's year-over-year revenue shrank 6.6%, and its AR dropped 6.5%. That looks OK. End-of-quarter DSO increased 0.1% over the prior-year quarter. It was up 3.8% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Looking for alternatives to Gibraltar Industries? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

• Add Gibraltar Industries to My Watchlist.

Hedge Fund Manager Einhorn Fined, Receives Personal Rebuke

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• The Custody Rule and its Ramifications When an RIA takes custody of a client’s funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
• Do�s and Don�ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.

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Famed hedge fund manager and spurned New York Mets suitor David Einhorn saw a hit to his otherwise strong reputation Wednesday when Britain's Financial Services Authority announced it has fined his Greenlight Capital hedge fund, as well as Einhorn personally.

Reuters reports Einhorn and Greenlight are alleged to have engaged in “trading abuses,” according to the FSA, related to the use of inside information he obtained from a broker before selling shares in a U.K. public company in 2009.

The news service reports the total fine amounts to 7.2 million pounds ($11 million).

“The regulator said Einhorn had learned from a telephone conversation with the broker that British pub company Punch Taverns was on the verge of a significant equity fundraising, prompting Einhorn to sell down his holdings before an expected fall in the shares,” Reuters writes. “The FSA said Einhorn's decision to sell stock in the wake of the call allowed Greenlight to avoid losses of around $9 million (5.8 million pounds).”

Einhorn defended his action to investors, saying that he did not believe he or the firm had any inside information when it traded the stock. He claimed the chief executive of Punch Taverns had reiterated to him during that conference call that no formal decision to issue equity had been made at the time their conversation took place.

"It was unambiguous," Einhorn told Greenlight investors during a conference call on Wednesday. "Nothing had been decided. Nothing was imminent. I was told no decision had been made and Punch was simply exploring strategic alternatives to raise funds.”

"The FSA accepted that Einhorn's trading was not deliberate because he did not believe that it was inside information. However, this was not a reasonable belief," FSA said, according to Reuters.

On his conference call, Einhorn blamed politics, noting the British regulator was determined to "score a win against a high profile American hedge fund."

Reuters notes that Einhorn is “one of the hedge fund industry's best known managers after big, successful bets against financial firms including Lehman Brothers.

“He said the FSA's action was unjust and inconsistent with its prior enforcement precedent, but had decided to settle to focus on managing his business,” Reuters reported.

Will Coca-Cola Earnings Move the Dow?

With hundreds of companies having reported quarterly results, we're now in the heart of earnings season. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk decision.

Let's turn to Coca-Cola (NYSE: KO  ) . The beverage giant's 6.5% gain in 2012 roughly matched the returns of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , but some worry about increasing headwinds against its core soft-drink business. Let's take an early look at what's been happening with Coca-Cola's over the past quarter and what we're likely to see in its quarterly report next Tuesday.

Stats on Coca-Cola

Analyst EPS Estimate	$0.44
Change From Year-Ago EPS	12.8%
Revenue Estimate	$11.55 billion
Change From Year-Ago Revenue	4.7%
Earnings Beats in Past 4 Quarters	1

Source: Yahoo Finance.

Will Coca-Cola's earnings refresh its shareholders?
Analysts haven't budged during the past three months in their estimates for Coca-Cola's fourth-quarter earnings. But investors have been a bit more optimistic about its future prospects, pushing shares up more than 6% since early November.

The question on everyone's minds is how Coke can get in front of the anti-obesity campaigns that are gaining momentum around the country. With a well-publicized ban on large soft drinks in New York City and extensive lobbying to increase awareness of their potential health risks, it's crucial that Coke take steps to curb negative sentiment before it builds further. Moves like addressing obesity in its ads and joining PepsiCo (NYSE: PEP  ) and Dr Pepper Snapple (NYSE: DPS  ) in voluntarily displaying calorie counts on vending machines are a start, but Coke needs to remain aggressive to keep its No. 1 brand value intact.

One answer may come from Coke's non-soda offerings, which have taken on increased importance lately. As consumers turn to juices, teas, waters, and sports and energy drinks, Coca-Cola's breadth of products in those segments has demonstrated the company's forward-thinking viewpoint.

As interesting as short-term results can be, investors should really focus on the company's long-term vision. With its "2020 Vision" plan seeking a doubling of revenue by the end of the decade, previously untapped and underpenetrated areas like the Middle East and the BRIC emerging markets represent Coke's best prospects for the growth it needs to sustain its long-term trajectory.

Learn more
There's no question that Coca-Cola has been great to long-term shareholders, but you can't afford to ignore all the new threats to its continued market dominance.�We've�recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you'll want to click here now and get started!

Click here to add Coca-Cola to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Best Stocks To Invest In 2/7/2013-2

BLC, Belo Corp.

For the third quarter 2012, BLC posted net earnings per share, compared to net earnings per share of $0.13 in the same period the prior year, and total revenue of $176 million, a 16% increase year over year.

BLC owns and operates 20 television stations (nine in the top 25 markets) and their associated websites. BLC stations, which include affiliations with ABC, CBS, NBC, FOX, and the CW, reach more than 14 percent of U.S. television households in 15 highly-attractive markets.

More about BLC at www.belo.com

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Will the FDA Give This Drug the Green Light?

In the following video, Motley Fool health care bureau chief Brenton Flynn discusses an upcoming FDA decision on this Sunday, Feb. 10, on whether to approve Celgene's (NASDAQ: CELG  ) drug pomalidomide, which is used in the treatment of blood cancer multiple myeloma. While there is little doubt that the drug will be approved, Brenton highlights the bigger question at stake here: Considering the competition in this space -- including one of Celgene's own drugs, which may cannibalize sales -- just how big will this drug become?

Should you give Celgene the green light?
With Celgene's broad portfolio of drugs and a strong pipeline to boot, many investors see it as a smarter way to play the biotech investing game. If you're interested in owning the stock, you need to know about the key opportunities and risks facing the company. The Fool's brand new premium report on Celgene takes you through everything you need to know. To claim your copy today, simply click here now.

Why Cambrex Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of life sciences company Cambrex (NYSE: CBM  ) shot higher by as much as 16% following the release of its fourth-quarter earnings results.

So what: For the quarter, Cambrex reported a 4.8% increase in revenue to $69.9 million, as gross margin expanded 60 basis points to 30% thanks to a better product mix and higher volumes of active pharmaceutical ingredients, or APIs, being sold. Net income rose to $44.2 million from just $3 million in the year prior because of a huge one-time tax benefit. Adjusting for one-time costs, Cambrex earned $0.26, which is double what Wall Street had expected. Looking ahead, Cambrex anticipates sales growth of 8%-12% in 2013 and EBITDA growth of 8%-18% to a range of $62 million-$68 million. This would imply full-year revenue at a midpoint of $303 million, and EPS getting close to $1 -- perhaps $0.01 or $0.02 shy. The lone analyst estimate for 2013 is calling for only $298.1 million in sales and $0.95 in EPS.

Now what: This was another great quarter for Cambrex, even if you consider that foreign currency translations knocked 90 basis points off its top-line revenue results. Its APIs are important components for many generic pharmaceutical companies, and, with opinion growing for cheaper alternatives to branded drugs, there's no reason to believe Cambrex can't continue to grow. As with all generic drug makers, it'll contend with margin contraction as competition heats up, but at just 13 times this year's earnings, I feel it could march even higher.

Craving more input? Start by adding Cambrex to your free and personalized watchlist so you can keep up on the latest news with the company.

While you can certainly make huge gains in biotech and life science companies like Cambrex, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

Stocks Edge Up; News Corp. Declines

The Dow Jones Industrial Average rose 7.22 points Wednesday, to close up 0.05% at 13,986.52. After two days of large moves, the benchmark had a very mixed day today, crossing zero 13 times. The Dow is down 0.17% this week.

The Standard & Poor’s 500 index was also up 0.05%, to close at 1,512.12. The Russell 2000 index, meanwhile, hit a new record close, up 0.34% to 911.29. The small-caps index is up 7.3% this year.

In postmarket moves, shares of our parent News Corp. (NWS) are down close to 2% after it (we?) reported improved quarterly profit but cut its full-year outlook:

[News Corp said] underperformance at several businesses including its Fox broadcast network would offset a gain in earnings in the most recent quarter.

The company said operating income for the current fiscal year, which runs through June, would now grow by “mid- to high single digit” percentages, down from “high single- to low double-digit” percentages it predicted in November.

IAC/InterActiveCorp (IACI) stock was down a fraction after it reported a 16% drop in profit and missed estimates. The stock has fallen 19% in the past six months.

Ask a Fool: James and Joe Talk Research

In the following video, Motley Fool analysts James Early and Joe Magyer field a question from a Fool reader, who asks, "What is the average amount of time doing research Uncle Joe Magyer and James Early spend on a stock? I would like to know how long a professional spends before making a decision."

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." I invite you to take 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.

This Just In: Upgrades and Downgrades

At The Motley Fool, we poke plenty of fun at Wall Street analysts and their endless cycle of upgrades, downgrades, and "initiating coverage at neutral." Today, we'll show you whether those bigwigs actually know what they're talking about. To help, we've enlisted Motley Fool CAPS to track the long-term performance of Wall Street's best and worst.

SandRidge gets drilled
It's turning into a pretty bad week to be a shareholder of SandRidge Energy (NYSE: SD  ) -- or anything named "SandRidge," for that matter. On Monday, analysts at Ladenburg Thalmann�announced they were downgrading shares of SandRidge to neutral, and cutting their price target to $7 a share. Yesterday, a second analyst -- JPMorgan�this time -- added its vote of no-confidence in the stock, and downgraded SandRidge even further, all the way to underweight, and with a $5 price target.

Sentiment looks similarly low for one of SandRidge's recent spinoffs, SandRidge Mississippian Trust II (NYSE: SDR  ) , which found its own price target cut Monday by Wunderlich Securities. Wunderlich cut SMT2 from a $22 price target to $18, based on the disappointing announcement Friday that SMT2 will be paying out only $0.533 per share�in profit distributions this month, rather than the $0.71 distribution analysts had been hoping for. This news sent a fourth investment banker, Raymond James, into a full-scale reversal on SMT2, downgrading the shares from outperform to underperform.

In each case, analysts appear to be reacting to a report that SandRidge's hydrocarbon assets are turning out to contain more natural gas than oil. And with nat-gas prices remaining depressed, that's not a good proportion for a driller to have on its balance sheet. But is it possible these analysts are overreacting to the bad news?

After all, just this morning, two major players in the nat-gas downstream market -- Cummins (NYSE: CMI  ) and Westport Innovations (NASDAQ: WPRT  ) -- announced a pair of contracts to provide natural-gas engines for buses being purchased by the transportation authorities in Los Angeles and San Diego. Together, the sales promise to outfit as many as 1,368 buses�in the two cities with Cummins-Westport nat-gas engines. Combined, the orders represent a 20% increase in the size of the bus fleet running on nat-gas in North America, and could portend a major shift in energy usage for transportation on the continent, an increase in demand for natural gas -- and greater profits for its producers.

SandRidge Mississippian Trust II
Given this announcement, does it make sense to sell shares of SandRidge Mississippian Trust II (SMT2)?

Perhaps not. After all, even after cutting its payout to $0.53-and-a-fraction-of-a-penny, SMT2 still pays a tidy $2.13 annualized -- a 13.4% yield. That certainly seems like enough to justify a 13.3 P/E ratio -- if SMT2 can maintain the payout.

On the other hand, the smaller distribution at SMT2 is directly tied to the revenues it gets from the oil and gas it produces. SMT2 only earned about $1.19 per share over the past year, so, naturally, its distributions are falling in tandem. Granted, if the news out of Cummins and Westport does portend an increase in gas demand, and gas prices, this should result in higher distributions from SandRidge going forward. But for now, the distributions are heading the other way... and the stock price is following along.

SandRidge Energy
Now for SandRidge proper. Ladenburg says it's only neutral on this stock today, but to my Foolish eye, JP Morgan has the better of this argument, and the stock looks more like a sell than a neutral.

Why? Well, let's start with the obvious. The company reported earning $60 million over the past year. On SandRidge's $3 billion market cap, that works out to a P/E ratio of 50 -- which is quite a lot of money to pay for a company that most analysts think will be stuck at 7% annual growth for the next five years. Worse, if you factor SandRidge's $3.6 billion net debt into the equation, the company is actually trading for an enterprise value to earnings ratio more than twice its apparent P/E -- 110.

And that's the good news. The bad news is that SandRidge is intensely free cash flow negative. Over the past 12 months, it burned through $1.3 billion. Indeed, if you examine the company's history, while it's often reported "profits" under GAAP, there's literally never been a year in which SandRidge generated positive free cash flow.

Never. Not one.

Foolish final thought
But what if you're the kind of nat-gas bull who believes prices must turn around, and that deals like the one Westport and Cummins announced Tuesday will increase in frequency in years to come? Actually, that still isn't much of an argument in favor of SandRidge, which of late has been directing most of its capital spending toward efforts to discover and extract oil rather than gas.

A lot of investors think all we need for these stocks to turn around, is a turnaround in the price of natural gas. They will likely see yesterday's news about Cummins and Westport as a positive for SandRidge, and maybe for SMT2 as well. To that argument, I respond that 10 years of SandRidge financial statements beg to differ. In good times and bad times for nat-gas prices, SandRidge has never generated one red cent in real cash profits for its shareholders. To me, that sounds like a great reason to sell it.

If you are unsure about the future of this emerging oil and gas junior, and are looking to find out more about its strengths and weaknesses, you should view this brand-new premium report detailing SandRidge's game plan and what to expect from the company going forward. To get started --click here!

Top Stocks For 2/7/2013-20

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CRWE, Crown Equity Holdings Inc., CRWE.OB

Content published on the World Wide Web is immediately available to a global audience of users. This makes the World Wide Web a very cost-effective medium to publish information. Reaching more than 190 countries.

CRWE is a company utilizing today�s technology to advertise and market public companies globally. CRWE�s proprietary network technology allows their publishing department to get their content to millions of readers daily across the world. CRWE publishes financial content to all the major countries and covers all the accredited stock exchanges.

In addition to the company offering �I/R� service, CRWE has a dedicated in-house advertising server, allowing for faster response and a wider variety of ad space offerings to those interested in advertising on their numerous internet and affiliate internet properties.

CRWE is expanding its business by opening another office in Pakistan. This office will be located in the city of Attock, Pakistan.

CRWE has also expanded its Internet footprint internationally to include the following 20 countries; Argentina, Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Korea, Mexico, New Zealand, Singapore, Spain, Taiwan and the UK.

On August 3rd, 2010, CRWE reported that its 1-10 forward stock split finalized

This was the second forward split of CRWE‘s common stock in three years.

More about CRWE at www.crownequityholdings.com

Omnicare Inc. (NYSE:OCR) recently declared a quarterly cash dividend of 3.25 cents ($0.0325) per share on its common stock. The dividend is payable on December 30, 2010 to stockholders of record on December 20, 2010.

Omnicare, Inc., a pharmaceutical services company, provides pharmaceuticals and related pharmacy and ancillary services to long-term healthcare institutions. Its Pharmacy Services segment distributes pharmaceuticals and provides related pharmacy consulting and other ancillary services, data management services, and medical supplies to skilled nursing facilities, assisted living facilities, retirement centers, independent living communities, hospitals, hospice, and other healthcare service providers.

Tortoise MLP Fund, Inc. (NYSE:NTG) recently reported that as of November 30, 2010, the company�s unaudited total assets were approximately $1.5 billion and its unaudited net asset value was $1.1 billion, or $24.91 per share. As of November 30, 2010, the company was in compliance with its asset coverage ratios under the Investment Company Act of 1940 (the 1940 Act) and basic maintenance covenants. The company�s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 568 percent, and its coverage ratio for preferred shares was 423 percent. For more information on calculation of coverage ratios, please refer to our most recent applicable prospectus.

Tortoise MLP Fund, Inc. (the Fund), formerly Tortoise MLP Corp, is a non-diversified closed-end management investment company. The Fund�s investment objective is to provide its stockholders a high level of total return with an emphasis on current distributions paid to stockholders. It seeks to provide its stockholders with an efficient vehicle to invest in a portfolio consisting primarily of energy infrastructure master limited partnerships (MLPs) and their affiliates, with an emphasis on natural gas infrastructure MLPs.

Allegheny Energy Inc. (NYSE:AYE) on December 01, 2010 recently reported that along with ten parties to their merger proceeding in Maryland, filed with the Maryland Public Service Commission a comprehensive settlement that addresses issues raised in the case. The settlement enhances commitments made in the initial merger application and includes customer credits of $6.5 million � a $4 million increase over the initial filing � to be provided over four years to Potomac Edison�s residential electric distribution customers. It also maintains the companies� commitment to locate a regional headquarters in Potomac Edison�s Maryland service territory, and includes reliability enhancements and support for the development of new renewable energy resources in the state.

Allegheny Energy, Inc. owns and operates electric generation facilities, and delivers electric services to customers in Pennsylvania, West Virginia, Maryland, and Virginia. The company owns or contractually controls coal-, gas-, and oil-fired generation facilities, as well as hydro generation facilities. It operates in two segments, The Merchant Generation and The Regulated Operations. The Merchant Generation segment owns, operates, and manages electric generation facilities.

Why Shutterfly Shares Flew

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of online photo service Shutterfly (NASDAQ: SFLY  ) soared 19% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock has been clobbered over the past couple of years on fears that free social networking sites such as Facebook (NASDAQ: FB  ) were making its services obsolete, but today's fourth-quarter results -- EPS of $1.40 on revenue of $351.8 million versus the consensus of $1.01 and $309.7 million -- and upbeat outlook helps ease those concerns. In fact, the vast majority of Shutterfly's customer additions in the quarter were driven by new integrated marketing campaigns, as opposed to acquisitions, giving investors plenty of optimism over organic growth going forward.

Now what: Management now expects 2013 EPS of $0.39-$0.42 on revenue of $739 million-$746 million, versus Wall Street's view of $0.46 and $707.8 million. "Our singular focus on addressing the ever increasing challenges that consumers face as they try to do more with their photos and memories has enabled Shutterfly to emerge as the market leader," CEO Jeffrey Housenbold said. "We remain confident in our strategy and in the early and large markets in which we operate." With the stock now up nearly 50% over just the past three months and trading at an 80-plus forward P/E, I'd wait for some of the exuberance to fade before buying into that bull talk.

More Expert Advice from The Motley Fool

After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today. Access your report by clicking here.

Could a Bleak Study Be a Bad Sign for Facebook?

It seems like you can't go a day on Wall Street without hearing a news story about�Facebook� (NASDAQ: FB  ) . The recent unveiling of Graph Search, a.k.a. social media's answer to Google, has helped Mark Zuckerberg's brainchild shake off the stigma of last May's catastrophic IPO bust. The positive PR has helped Facebook reach a five-month high of $32 -- $6 away from its IPO price -- although the company has since slumped to $29.

Now comes a new survey from the Pew Internet and American Life Project that suggests that most of Facebook's users experience periodic apathy toward the website. Could this be a sign of bad things to come?

The study
The Facebook survey polled 1,006 individuals, who supposedly represented the entire FB community. �Two-thirds of America's entire online community have Facebook profiles, and the survey revealed that 61% of the social media site's users had taken a voluntary hiatus. The reasons were numerous, and ranged from being too busy with the demands of real life, to an "absence of compelling content," to being just plain tired of reading about gossip and drama from Facebook acquaintances.

Additionally, 20% of the survey takers who were not currently on Facebook admitted that they used to be active on the website but had since stopped. With all of these facts coming to the surface, one can't help but wonder...

Will Facebook be in trouble?
History has shown that, in an online world, consumer apathy cometh before a fall. It was a huge factor, after all, in the demise of Facebook peer MySpace, which can't seem to muster anything like the success it once had, whether Justin Timberlake is at the helm or not. �

Judging Facebook's recent financials, however, the social media giant may have hit a few hiccups but still seems to be going strong. The company has increased its annual revenue 17 times over since 2008. However, its margins are somewhat concerning: In 2012, Facebook put 89% of its revenue into operations, leaving a minuscule 1% in net income compared to last year's 26%. Hopefully, the Graph Search hubbub can help Facebook regain some of its footing.

The surveyors' most popular reasons for leaving Facebook seemed to have nothing to do with the website itself. Friend drama and life busyness are factors that depend entirely on the individual, and unlike the ill-fated MySpace, Facebook has managed to broaden its key demographics from young adults to their parents. Meanwhile, it's keeping an eye on the future with developments such as Graph Search and its mobile phone application and continually researching how best to monetize itself.

In short, people might get bored with Facebook, but that doesn't mean it's going anywhere.

After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today, and we'll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.

�

Chesapeake Granite Wash Earnings: An Early Look

Earnings season is in full swing, with huge numbers of companies having already given their latest numbers to investors. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Let's turn to Chesapeake Granite Wash Trust (NYSE: CHKR  ) . The royalty trust focuses on production from the Granite Wash area of Oklahoma and the Texas Panhandle, but shares have plunged over the past year in light of weak gas prices. Let's take an early look at what's been happening with Chesapeake Granite Wash Trust over the past quarter and what we're likely to see in its quarterly report on Friday

Stats on Chesapeake Granite Wash Trust

Analyst EPS Estimate	$0.77
Change from Previous Quarter's EPS	26%
Revenue Estimate	$35.3 million
Change from Previous Quarter's Revenue	13.9%
Earnings Beats in Past 3 Quarters	1

Source: Yahoo Finance.

Will Chesapeake Granite Wash Trust wash up more profits?
Analysts have been pretty complacent with Chesapeake Granite Wash's earnings this quarter, keeping their earnings-per-share estimates stable. But the stock has been troubled, falling 5% since early November even including the impact of a lucrative dividend distribution.

Royalty trusts have become all the rage in the energy industry, as investors seek to focus in on specific plays rather than investing in an entire company's overall success. Chesapeake Energy (NYSE: CHK  ) and SandRidge Energy (NYSE: SD  ) have created several royalty trusts, allowing them to raise capital in a focused way while also giving investors the customized exposure they want. The trusts also pay lucrative distributions, with Chesapeake Granite Wash yielding 14% on a trailing basis.

The problem with royalty trusts, though, is that their income is dependent on prices of the oil and gas they produce. That's been particularly problematic for SandRidge's Mississippian trusts, which focus on the neighboring Mississippian Lime area of southern Kansas and northern Oklahoma. As natural gas prices have remained low, companies have done their best to shift away from dry-gas production toward greater concentrations of liquids. But if a particular region only offers gas, there's little that trust shareholders can do but make the most of it, and weaker resulting distributions were why SandRidge Mississippian Trust II (NYSE: SDR  ) plunged to new lows last week.

For Chesapeake Granite Wash, watch for signs about the mix of oil and gas coming from the play as well as projections of future distributions. With so many investors looking for dividend income anywhere they can get it, it's crucial to make sure you understand exactly how royalty trusts work and what you'll receive at the end of the day.

Are royalty trusts the best way to play Chesapeake?
Chesapeake Energy's shares have traded at a discount for a long time, but with CEO Aubrey McClendon leaving, some investors see new hope for the energy giant. Learn more about Chesapeake and its enormous potential by reading our premium report on the stock, which gives you in-depth knowledge of the company's components as well as a full year of updates. Simply click here now to access your copy today.

Click here to add Chesapeake Granite Wash Trust to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Why MBIA Shares Spiked

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of financial guarantee insurer MBIA (NYSE: MBI  ) rallied as much as 16% because a lawsuit similar to the one it currently has filed against Bank of America (NYSE: BAC  ) wound up going in favor of the insurance guarantor in a suit between Flagstar Bancorp (NYSE: FBC  ) and Assured Guaranty (NYSE: AGO  ) .

So what: Assured Guaranty sued Flagstar Bancorp over two securitizations, claiming that the bank had misrepresented the quality of its loans. The judge of this case, Jed Rakoff, ruled today that Flagstar had indeed breached its representations and warranties and threw out the argument that the loans would have defaulted anyway. Assured wound up winning $90.1 million in damages on roughly $900 million in disputed mortgage-backed securities.

Similarly, MBIA has sued Bank of America's Countrywide unit, alleging it made misleading representations when selling MBSes. While no guarantee of success, today's case definitely strengthens MBIA's resolve and could make Bank of America think twice about settling out of court.

Now what: While a big settlement would be icing on the cake for MBIA, it'd be another one-time profit that distracts us from the fact that there are relatively few quality loans out there worth insuring -- at least not enough to support its current valuation. Until we see the U.S. economy and the housing market both showing robust growth prospects, financial guarantee insurers are not a sector I'd suggest dabbling in.

Craving more input? Start by adding MBIA to your free and personalized Watchlist so you can keep up on the latest news with the company.

Will legal disputes continue to hold back Bank of America? Find out now!
To learn more about the most talked about bank out there, check out our�in-depth company report on Bank of America. The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just�click here�to get access.

Teva Pharmaceutical Earnings: An Early Look

Earnings season is in full swing, with huge numbers of companies having already given their latest numbers to investors. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

Let's turn to Teva Pharmaceutical (NYSE: TEVA  ) . The drug company has a unique balance, profiting from generics on one hand yet having its own proprietary drugs on the other. Let's take an early look at what's been happening with Teva Pharmaceutical over the past quarter and what we're likely to see in its quarterly report on Thursday.

Stats on Teva Pharmaceutical

Analyst EPS Estimate	$1.33
Change from Year-Ago EPS	(16%)
Revenue Estimate	$5.26 billion
Change from Year-Ago Revenue	(7.4%)
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

Will Teva Pharmaceutical stay healthy?
Analysts have been pretty certain about their estimates for Teva Pharmaceutical in the just-concluded quarter, but over the past three months, they've pulled in their estimates for the first quarter and full-year 2013 sharply. The stock has been equally pessimistic, falling almost 8% since early November.

Teva is best known for its generic versions of off-patent drugs. Given how much less expensive generic versions are compared to their branded equivalents, health-care advocates argue that they're essential to keeping drug costs down, even though they also discourage innovation. Teva hasn't been content to stick with generics solely, though, also working on branded drugs. Its blockbuster drug is Copaxone, which is a treatment for multiple sclerosis.

For Copaxone, though, competition is on the horizon. Teva filed what's known as a citizen's petition with the FDA to try to delay approval of Biogen Idec's (NASDAQ: BIIB  ) BG-12 treatment for MS, which will go up directly against Copaxone if approved.

Meanwhile, Teva is looking to for future growth from biosimilars, which currently represents an untapped market. Biologic drugs have been a promising area for branded-drug makers, and Teva is a player in that field, with its Tbo-filgrastim set to launch late this year to go up against Amgen's (NASDAQ: AMGN  ) Neupogen. But if biosimilars -- essentially generic versions of biologics -- work as well as generic drugs have, then Teva could pioneer a whole new profit center.

In Teva's quarterly report, investors need to watch how the company plans to address the trend toward branded-drug makers marketing their own post-patent generic versions to retain sales. Pfizer (NYSE: PFE  ) did that extremely well when Lipitor went off-patent, and if others follow suit, Teva needs a better plan than just cost savings to come out the competitive winner in the space.

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Click here to add Teva Pharmaceutical to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Will These Numbers from JA Solar Holdings Be Good Enough for You?

JA Solar Holdings (Nasdaq: JASO  ) is expected to report Q4 earnings around Feb. 11. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict JA Solar Holdings's revenues will shrink -24.8% and EPS will remain in the red.

The average estimate for revenue is $232.4 million. On the bottom line, the average EPS estimate is -$1.16.

Revenue details
Last quarter, JA Solar Holdings notched revenue of $260.9 million. GAAP reported sales were 33% lower than the prior-year quarter's $387.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$1.68. GAAP EPS were -$1.52 for Q3 versus -$1.79 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was -5.9%, 160 basis points worse than the prior-year quarter. Operating margin was -23.2%, 1,200 basis points worse than the prior-year quarter. Net margin was -22.6%, 740 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.02 billion. The average EPS estimate is -$5.54.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,555 members out of 1,653 rating the stock outperform, and 98 members rating it underperform. Among 220 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give JA Solar Holdings a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JA Solar Holdings is underperform, with an average price target of $5.86.

Is JA Solar Holdings the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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What to Expect from Auxilium Pharmaceuticals

Auxilium Pharmaceuticals (Nasdaq: AUXL  ) is expected to report Q4 earnings around Feb. 10. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Auxilium Pharmaceuticals's revenues will expand 135.3% and EPS will shrink -792.0%.

The average estimate for revenue is $172.5 million. On the bottom line, the average EPS estimate is $1.73.

Revenue details
Last quarter, Auxilium Pharmaceuticals chalked up revenue of $71.0 million. GAAP reported sales were 6.5% higher than the prior-year quarter's $66.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.21. GAAP EPS were -$0.21 for Q3 versus -$0.08 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 77.7%, 200 basis points worse than the prior-year quarter. Operating margin was -15.1%, 880 basis points worse than the prior-year quarter. Net margin was -14.8%, 870 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $394.3 million. The average EPS estimate is $1.62.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 131 members out of 185 rating the stock outperform, and 54 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Auxilium Pharmaceuticals a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Auxilium Pharmaceuticals is outperform, with an average price target of $26.18.

• Add Auxilium Pharmaceuticals to My Watchlist.

Is This Statistic a Sufficient Catalyst for Apple?

It is no secret that on a global basis, Google (NASDAQ: GOOG  ) Android has run away with the smartphone operating system market, commanding a 68.3% share in 2012, according to research firm IDC. Google has created explosive growth in its market share, which registered at only 48.7% in 2011,�largely through its dominance in the cheap end of the market. While Apple (NASDAQ: AAPL  ) has thus far refused to play in this particular sandbox, the company was able to do something that had eluded it since 2008: sell more smartphones in the critical U.S. market than Samsung. The question you must now ask is whether reclaiming the top U.S. sales spot will be a sufficient catalyst to get Apple shares climbing again.

Reclaiming the top spot at home
Last Friday, Reuters reported that according to data from Strategy Analytics, Apple was the top seller of mobile phones in the U.S. in the fourth quarter of 2012. This honor, which has been held by Samsung in every year since 2008, went to Apple as its U.S. market share for the quarter increased from 26% to 34%. Samsung also increased its market share from 31.8% to 32.3%,�but was outpaced by Apple. It is worth noting that Apple released the wildly popular iPhone 5 during the quarter, which clearly gave Apple numbers a significant boost.

For the entirety of 2012, however, Samsung was able to hold on to the top spot, commanding 31.8% of the market; Apple claimed 26.2% of the U.S. market for the full year. While fourth quarter U.S. sales did increase by 4% to 52 million units, sales for the full year slumped by 11% to 116 million units. Given the fact that global smartphone sales for 2012 grew by an estimated 45.1% on a year-over-year basis�while global mobile phone sales grew at only 1.6%, the structure of the market itself must be considered.

If mobile phone sales are plateauing but smartphone sales remain robust, the critical product cycle at play is among consumers upgrading from feature phones to smartphones. It is specifically this phenomenon that has led to many of the rumors that Apple is seriously considering the release of a "cheap" iPhone. Currently Samsung and other manufacturers of Android phones -- including Google's own Motorola -- have been successfully attracting users looking for low-cost smartphones.

A study conducted by the Internet & American Life Project at the Pew Research Center revealed that Android is actually skewed toward a lower-income demographic, both domestically and on a global basis. A recent story on Gizmodo summarized the findings nicely: "[T]he less money you have, the more likely you are to opt for an Android phone over something more expensive." Whether you applaud Google's approach or not, the reality is that the strategy is working.

If you carry the demographic argument one more level, it helps to put the global sales data into even more perspective. As was noted above, the conclusion from mobile phone sales growth versus smartphone sales growth is that the bulk of sales are from individuals upgrading from feature phones to smartphones. This means we are not talking about economically mobile consumers who are on their third iPhone when looking at smartphone growth. The likelihood is that this group is largely comprised of lower-income people for whom the research suggests an Android option is the most likely choice. If we now consider the global market share for Android, which, as noted above, grew from 48.7% in 2011 to 68.3% in 2012, it is easy to see where that growth came from.

The likelihood, therefore, is that while the U.S. market remains the largest and the most critical for now, dominating domestically will not remain a sufficient achievement alone to spell dominance in the smartphone wars. Even Apple itself admitted that China would become one of its most critical markets�in the near term, potentially eclipsing the U.S. for overall numbers. As such, the company will break out its China stats in future releases.

A sufficient catalyst?
The bottom line is that while the reclaiming of the top U.S. sales spot is an important accomplishment, given the turmoil that has faced Apple shares lately it is not likely a sufficient catalyst to drive the stock higher. I remain bullish on the medium- and longer-term prospects for the stock, but I would not count on this statistic to lead to a meaningful Apple recovery. Shares will recover eventually, but ongoing positive news will be needed to take the stock back to previous levels.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Will Chinese Pollution Lead to Coal-to-Gas Switching?

Last summer I had the opportunity to sit in on a small business round table with the state director for Sen. Pat Toomey of Pennsylvania. His state director had a lot to say about the economy and especially about regulations. He also had some pointed words for the EPA, with the most eye-opening comments being about coal.

For those of you who don't know, Pennsylvania is a coal state, although more recently it has begun to tap into the massive natural gas resources of the Marcellus Shale. That being said, coal is still important to the state's economy, and in the view of the senator, the EPA was overstepping its bounds and hurting the industry. He said: "[We] now ship coal to China to burn in plants using 1890's technology while we are forced to close plants there in the U.S. because they are using 1990's technology."�

Let that statement sink in for a moment. While there certainly are some politics behind it, the truth of the matter is that coal-fired power plants in China are not as advanced as those operating here in the U.S.�Is it now any wonder why China's recent air pollution scores are off the charts? In fact, the region's air pollution measured a score of 755 on the air quality index, with 300-500 considered as dangerous.

The problem is not likely to go away any time soon, especially in light of the fact that China accounts for half of the world's coal usage. In fact, the country is increasing its use of coal, with imports becoming more vital. Last year China set an all-time high with 289 million tonnes of coal being imported, a 30% rise over the prior year. The country is in the midst of one of its coldest winters in nearly 30 years, which has led to an increase in electricity generation with a coinciding drop in coal stockpiles.�Still, given the pollution problem isn't it about time the country joined the U.S. in switching away from coal?

It's not like the country doesn't have the reserves; in fact, it's third in the world in terms of recoverable natural gas reserves. The problem is that a bulk of those reserves are found in unconventional sources such as shale, coal-bed methane, and tight gas formations. These are more expensive to extract than from conventional sources.�

Unfortunately for China, its difficulties in extracting that gas run deeper than just the costs of extraction. One of the keys to hydraulic fracturing is of course water, lots and lots of water. With most of China's gas found in more arid climates, this limits the country's ability to exploit these resources with current extraction technologies. Of course where there is a will, there will be a way.�

One company that's focusing more on the onshore unconventional opportunities in China is Schlumberger (NYSE: SLB  ) . The company has made several strategic moves in the country over the past year via joint ventures. It also launched the Schlumberger China Petroleum Institute last year which will be engaged in research and development projects with Chinese companies, especially those involved in unconventional resources.�

Schlumberger isn't the only oil-field services company working on the problem. Baker Hughes (NYSE: BHI  ) has its own strategic partnership to set up a research center for unconventional energy in China. In addition to this, the company and its Chinese partner will invest in the development of technologies and solutions specific to China's unconventional hydrocarbon market.�

Not to be outdone,�Halliburton (NYSE: HAL  ) �has its own operations in China, with software sales an important area to watch. One of the keys for China's ability to exploit its unconventional resources will be its ability to use computer simulations to map out the physical properties of its shale deposits. This will help the country's producers best exploit the resources that lie beneath.�

All of these companies are working toward one ambitious goal: The country wants to produce 6% of its energy from shale gas by 2020. That's up from virtual no energy produced from shale gas in the past year. If this is successful, it could put a dent in U.S. coal exports as well as exports of coal from Australia.�

While that is a long way off, it is something that investors in Peabody Energy (NYSE: BTU  ) should keep an eye on. Not only does the company export some of its U.S.-mined coal to China, but the company also digging up revenue in the land down under. Those Australian operations have the company targeting 11 million-12 million tons of seaborne thermal coal sales this year. Though, these activities are likely to keep growing. China is several years away from being in the same position that we are in the U.S., where it can shut down coal-fired power plants and replace them with those burning cleaner natural gas.

The pollution situation in China should at least make it more apparent that the country needs to get serious about fixing the problem. Its vast shale resources offer an obvious solution, but one that will take vast sums of capital and ingenuity to exploit. In the meantime, the country has a lot of hurdles to overcome before widespread conversion to natural gas becomes a reality.

Peabody Energy has a lot at stake if and when China begins this transition
That's one reason why investors in Peabody Energy will likely continue to do well. The company has deals in place to get its cheaper coal from the Powder River and Illinois Basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

4 small cap turnarounds

Turnaround stocks represent an inefficient niche. Small cap stocks can also be less efficient. Thus, it stands to reason that small-cap turnaround stocks should be particularly inefficiently priced.

That makes the stocks below particularly interesting. They are culled from the worst performers in the S&P Small Cap 600 last year. They all have solid businesses, decent balance sheets and good rebound potential.

Blyth (BTH) uses direct selling, catalog and Internet and wholesale programs to sell a number of consumer products, such as candles, decorative accessories and certain food items.

The cancelling of a planned IPO for tits ViSalus subsidiary last in September started a selloff. Recent business results have been bumpy, perhaps because of the distractions relating to ViSalus, but there is good potential for a rebound in 2013.
Electro Scientific Industries (ESIO) supplies laser-based solutions that enable precise manufacturing and testing. Management is using the firm�s strong intellectual property to build out the product line.

The balance sheet isn�t an impediment, as cash and short term investments totaled $172 million at the end of Q2 (March fiscal year). General economic weakness may crimp near-term gains, but the company has ample growth opportunities as it transitions to a broad-based laser micro-fabrication company.

NutriSystem (NTRI) is the number one home delivery weight loss company. A string of quarters with declining revenues and profitability reflect, in part, the sluggish economy coming out of the last recession. The weak results led the board of directors to bring in a new CEO in November.

The company is also introducing some new products and pricing strategies. We can�t vouch for the sustainability of the dividend, but it certainly looks mouth watering at the moment.

Quality Systems (QSII) provides health care information systems used in automating medical and dental records. Having been around since 1974, the company is one of the more experienced providers in the sector.

Questions about revenue timing, competitive threats and the loss of an important contract caused the stock to swoon in July, but it has since stabilized.

Increasing federal and state regulation of medical records, as well as the ongoing push for efficiencies in healthcare, create good long-term prospects for this business. No debt, ample cash, free cash flow, and an attractive dividend make Quality Systems particularly interesting.



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Take-Two Posts Strong Q3, but Guidance Misses Estimates

Take-Two Interactive Software (NASDAQ: TTWO  ) had an encouraging quarter, as revenues and profit both advanced strongly in its just-reported Q3 numbers. The top line came in at $416 million and net income was $71 million, or $0.66 per diluted share. The former was a 76% improvement over the same period the previous year, while the net figure was more than five times Q3 2012's number.

Those results handily beat the average analyst expectation of $367 million and $0.56 per share.

The news wasn't as good regarding forward guidance, however. The company said it expects $235 million to $285 million in the top line for this quarter, and EPS of $0.10 to $0.25. Analysts had been modeling $305 million and $0.34.

For the entirety of fiscal 2013, the company believes it will post revenue of $1.15 billion to $1.20 billion, and EPS of $0.05 to $0.20.

Take-Two also announced that its board has authorized the repurchase of 7.5 million shares of the company's common stock.

Mohegan Tribe Set to Host SRI Conference

The Mohegan tribe and First Affirmative Financial Network announced jointly on Friday that the 23rd annual SRI Conference for Sustainable, Responsible, Impact Investing (The SRI Conference), formerly known as SRI in the Rockies, will be hosted at the Mohegan Sun Conference center in Connecticut in October.

According to the Mohegan tribe, its role as host of the event reflects the sharp rise in interest among Native American nations in community impact investing, which is one of the major elements of sustainable, responsible, impact investing.

Bruce “Two Dogs” Bozsum, chairman of the Mohegan Tribal Council, said in a statement, “The Mohegan Tribe already makes major investments in housing and education programs, including many that operate in Connecticut outside of our lands and where the members of the Tribe are not the beneficiaries. We see this as an important opportunity to showcase the efforts of Indian nations across the U.S. in the rapidly emerging field of community impact investing. The Mohegan Tribe expects to be among the parties that will benefit from this learning opportunity.”

In a statement, First Affirmative President Steve Schueth, producer of the 2012 SRI Conference, said, “We embrace increasing diversity in the world of sustainable, responsible, impact investing, which we see as one of the real long-term strengths of SRI. The rise of Native American interest in community impact investing is already at a point where it is safe to say that no other unit of government in America has become so invested, both literally and figuratively, in SRI. We see this as a unique opportunity to encourage that trend and to inform others about it.”

Indian tribes are one of the largest sources of income for the state of Connecticut, where both the Mohegan Tribe and the Pequot Tribe pay 25% of their slot machine revenues to the state in lieu of taxes, which, according to the tribe, is more than any other state employer pays the state, and also is more than all other Connecticut corporations pay in corporate taxes combined after corporate tax breaks are factored in. The ammount generated is in the tens of millions of dollars.

What Sent Bank of America Higher Today

Investors in Bank of America (NYSE: BAC  ) are well versed when it comes to the volatility rollercoaster. With a beta of 1.78, shares in the nation's second-largest bank by assets are theoretically 78% more volatile than, say, the S&P 500. Indeed, on any given day, shares of the nation's second largest lender are typically either up or down by a minimum of 1%.

For this reason, as well as the massive opportunity ahead for B of A, it's nearly impossible for many of the bank's shareholders to ignore the daily fluctuations. What follows, in turn, is glance at the factors pushing its shares higher today.

The bulls are out in full force
Over the past few months, multiple high-profile industry analysts and former B of A bears have changed their tune and begun singing the bank's praises.

At the end of last year, Meredith Whitney, who famously forecast the descent of Citigroup�prior to the financial crisis, stated that she had not "seen an opportunity like [B of A] in four or five years." She went on to say that with the "junk out of [its] trunk," the lender is now in a position to quadruple its quarterly dividend payout.

Two weeks ago, another former B of A bear followed suit. In an article published on Seeking Alpha, hedge fund manager Tom Brown predicted that the bank's stock "will reach the low $20s over the next 18-24 months." (Click here to see my take on Brown's analysis.)

And most recently, the founder and investment manager of Fairholm Capital Management, Bruce Berkowitz, expressed the desire to own even more B of A if he could -- he's currently prescribed by regulations against doing so given the already large position that his fund holds in the company. When asked by Bloomberg's Eric Schatzker whether he would like to "own more B of A," Berkowitz answered simply, "Yes."

Given this type of reception, it's easy to understand why B of A was the top-performing stock on the Dow last year and has continued its ascent ever since.

What else is influencing B of A and the market today?
Further fueling B of A's ascent were a handful of economic reports released today suggesting that the macroeconomic situation isn't as dire as it may have appeared last week after the Commerce Department reported an unexpected contraction in fourth-quarter GDP.

Among other things, the Institute for Supply Management reported that the nonmanufacturing sector expanded at a faster rate in January than economists had expected. In addition, the Congressional Budget Office announced this morning that the federal government's deficit this year will be below $1 trillion for the first time in five years.

Any positive macroeconomic news of this sort is uplifting for the banking industry. In addition to B of A, lenders like Wells Fargo (NYSE: WFC  ) , JPMorgan Chase (NYSE: JPM  ) , and US Bancorp (NYSE: USB  ) rely to a heavy extent on the health of the underlying economy to spur employment, increase housing values, and thus drive money into mortgages.

During the final quarter of last year, many of these banks notched record mortgage-origination volumes. Wells Fargo's came in at a staggering $125 billion, JPMorgan's at $51 billion, and US Bancorp's at $22 billion. But for this to continue, the still-fragile economic recovery needs to continue gaining momentum.

The Foolish bottom line
While the financial sector has outperformed the broader market handily over the past year, many analysts are wondering how much longer this can carry on. To see why our own in-house B of A specialist thinks that there's still room for shares of the nation's second largest lender to grow, check out our new in-depth report on the bank by�clicking here now.

Investors Aren’t Shelving Barnes & Noble; Stock Up 7%

Getty ImagesBrain food

Book retailer Barnes & Noble (BKS) is riding high this afternoon and we�re still looking to get to the bottom of exactly why.

We�re betting that it�s probably not related to the company�s announcement at the end of last month that it plans to close about 20 stores a year for the next 10 years, cutting more than a third of its physical bricks-and-mortar shops.

In more bad news, Barnes & Noble also reported weak holiday sales as it faced pressure from competitors like Amazon (AMZN) and e-readers, but it showed promise in the digital space, with sales rising more than 13% during the period.

It could be today’s rise is related to the release of its latest Nook e-reader yesterday alongside news that investor Daniel Tisch raised his passive stake in the company to 8.1% as of Dec. 31, up from 5.1% on June 30.

Shares were up close to 7% in afternoon trading on Tuesday; Amazon stock was up 2.5%.

Yum! Brands, in the Spotlight Soon

Yum! Brands (NYSE: YUM  ) is expected to report Q4 earnings on Feb. 4. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Yum! Brands's revenues will grow 0.1% and EPS will expand 9.3%.

The average estimate for revenue is $4.11 billion. On the bottom line, the average EPS estimate is $0.82.

Revenue details
Last quarter, Yum! Brands notched revenue of $3.57 billion. GAAP reported sales were 9.0% higher than the prior-year quarter's $3.27 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.99. GAAP EPS of $1.00 for Q3 were 25% higher than the prior-year quarter's $0.80 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 27.9%, 120 basis points better than the prior-year quarter. Operating margin was 18.5%, 130 basis points better than the prior-year quarter. Net margin was 13.2%, 150 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $13.59 billion. The average EPS estimate is $3.25.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,169 members out of 3,298 rating the stock outperform, and 129 members rating it underperform. Among 815 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 795 give Yum! Brands a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yum! Brands is outperform, with an average price target of $76.20.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Yum! Brands. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

• Add Yum! Brands to My Watchlist.

Top Stocks To Buy For 2/5/2013-5

KONAMI CORPORATION (ADR) (NYSE:KNM) achieved its new 52 week high price of $31.54 where it was opened at $31.27 UP 1.00 points or +3.33% by closing at $31.00. KNM transacted shares during the day were over 20,913 shares however it has an average volume of 17,616 shares.

KNM has a market capitalization $4.30 billion and an enterprise value at $4.05 billion. Trailing twelve months price to sales ratio of the stock was 1.25 while price to book ratio in most recent quarter was 1.62. In profitability ratios, net profit margin in past twelve months appeared at 6.05% whereas operating profit margin for the same period at 10.45%.

The company made a return on asset of 5.78% in past twelve months and return on equity of 8.03% for similar period. In the period of trailing 12 months it generated revenue amounted to $3.34 billion gaining $24.68 revenue per share. Its year over year, quarterly growth of revenue was 3.30% holding 219.60% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $687.97 million cash in hand making cash per share at 4.96. The total of $580.55 million debt was there putting a total debt to equity ratio 22.63. Moreover its current ratio according to same quarter results was 2.67 and book value per share was 18.49.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 8.21% where the stock current price exhibited up beat from its 50 day moving average price $25.71 and remained above from its 200 Day Moving Average price $21.42.

KNM holds 135.63 million outstanding shares with 67.48 million floating shares.

Kinder Morgan Finds Partner for LNG Export

Kinder Morgan� (NYSE: KMI  ) moved one step closer to exporting LNG out if its Elba terminal in Savannah, Ga., after announcing its master limited partner�El Paso Pipeline Partners� (NYSE: EPB  ) joint venture with a subsidiary of�Royal Dutch Shell� (NYSE: RDS-B  ) . While the joint venture�announcement�moves Kinder Morgan one step closer to taking advantage of the cheap natural gas supply in North America, the project is far from certain. Approval from the Federal Energy Regulatory Commission (FERC) is still needed and while the debate over what should be done with the cheap natural gas in the U.S. rages on, it could be years before this country grants its blessing on the project.�

It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size -- it's the fourth-largest energy company in the U.S. -- not to mention its enormous potential for profits. In The Motley Fool's new premium research report on Kinder Morgan, our top energy analyst breaks down the company's growing opportunity, as well as the risks to watch out for, in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource. As an added bonus, you'll receive a full year of key updates and guidance as news develops, so don't miss out!

Apple Reports on Assemblers, Suppliers, and Child Labor

In a step toward greater transparency, Apple (NASDAQ: AAPL  ) has released a list of its 17 final assembly facilities. Since journalists uncovered numerous alleged labor violations at manufacturing facilities supplying Apple in early 2012, Apple has been working to improve its corporate image and upgrade conditions along its supply chain. The latest alleged labor violation in connection with Apple stemmed from one of its suppliers using unpaid "interns" to speed up iPhone 5 manufacturing.

Underage labor is a hot-button issue and in a recently released 2013 Supplier Responsibility progress report [link opens in PDF], Apple writes: " Our approach to underage labor is clear: We don't tolerate it, and we're working to eradicate it from our industry." As evidence of this stance, Apple says it severed ties with one of its suppliers when auditors found 74 cases of workers under age 16. Apple also says it notified provincial governments where the supplier and its labor agency operate, resulting in fines and license suspensions.

The list of 17 final assembly facilities, including the name and location of each company and the products it works on, shows 14 are in China, one in Brazil, one in Ireland, and one in the United States. The one in Ireland is Apple itself; the one in the U.S. is Quanta Computer in Fremont, Calif. The one in Brazil is listed as Hon Hai Precision Industry Co. (Foxconn) in Sao Paulo.

Apple also released a list of its top 200 suppliers [link opens in PDF] representing 97% of procurement expenditures.

link

S&P Expects Federal Lawsuit Over Mortgage Ratings

WASHINGTON (AP) — The U.S. government is expected to file civil charges against Standard & Poor's Ratings Services, alleging that it fraudulently gave high ratings to mortgage debt that later plunged in value and helped fuel the 2008 financial crisis.

The charges would mark the first enforcement action the government has taken against a major rating agency involving the financial crisis.

S&P said Monday that the Justice Department had informed it that it intends to file a civil lawsuit focusing on S&P's ratings of mortgage debt in 2007. The action does not involve any criminal allegations.

S&P denies any wrongdoing and says any lawsuit would be without merit.

A lawsuit would "disregard" the fact that S&P reviewed the same data on risky mortgages as the rest of the market and U.S. government officials, who publicly said in 2007 that the problems in the subprime mortgage market appeared to be limited, the company said in a statement.

In the statement, S&P said it "deeply regrets" that its ratings on some securities "failed to fully anticipate the rapidly deteriorating conditions in the U.S. mortgage market during that tumultuous time."

Justice Department spokeswoman Nanda Chitre declined to comment on the matter.

S&P is a unit of New York-based McGraw-Hill Cos. (MHP). The company's stock tumbled 13% in heavy trading Monday amid a broader market decline.

S&P and the other two major agencies, Moody's Investors Service and Fitch Ratings, have been blamed for helping fuel the crisis by assigning AAA ratings to trillions of dollars in risky securities backed by subprime mortgages. The securities later collapsed in value once the housing market bubble burst and home-loan delinquencies soared. Major U.S. banks absorbed tens of billions of dollars in losses.

The rating agencies are crucial arbiters of the creditworthiness of securities traded around the world. The grades they assign can affect a company's ability to raise or borrow money and how much investors will pay for securities it issues.

The securities in the anticipated federal lawsuit are collateralized debt offerings. CDOs are investment vehicles that contain many underlying mortgage loans.

A CDO generally gains in value if borrowers repay. But a wave of defaults can cause them to tumble in value. Soured CDOs contributed to, and intensified, the financial crisis.

Critics have long argued that rating agencies have an inherent conflict of interest: They're paid by the same companies whose products and credit they rate. The agencies have been accused of issuing unduly high ratings before the crisis because of pressure from banks they desired as clients.

GOOG: RBC Defends; ‘Overhangs’ Coming Off, YouTube ‘Highly Valuable’

Amidst a drop of $11.40, or 1.5%, in Google (GOOG) shares, to $764.20, following a downgrade by BMO Capital‘s Daniel Salmon to Market Perform, RBC Capital‘s Mark Mahaney appeared on CNBC to defend his Outperform rating on the shares and $840 price target.

“At around 16 times earnings, the valuation is not demanding,” Mahaney told CNBC’s Halftime Report.

In Mahaney’s view, the stock has risen in the last year as a bunch of “overhangs” have been removed, specifically worries about mobile use of the Web hurting the company’s “economics” in its advertising business. “We’ve been seeing cost-per-clicks and traffic acquisition costs working positively for Google, and that’s going to continue to help push the shares higher,” said Mahaney.

He was asked whether Google, which is up 8%, might be benefiting from a rotation of investor money out of Apple (AAPL) stock:

“I think those kinds of inflows have happened across a good number of tech stocks — Google, Amazon (AMZN), Yahoo! (YHOO) — they’ve all benefited from those Apple stories.”

But, he added, “The Google story still works on its own. This YouTube asset, it’s highly valuable as ad budgets move on line.”

Mahaney was also asked about Facebook (FB), on which he maintains an Outperform rating and a $32 price target. “I don’t see a valuation case above $38 for Facebook in the next twelve months, not unless they come up with some dramatic new revenue ideas.”

App.net to launch file storage API so you can host your own photos - 01:30 PM

(gigaom.com) -- Needless to say, photo ownership is a sticky topic. Just ask all the people who left Instagram in December over Instagram’s terms of service and the question of photo ownership and rights.

So not surprisingly, one of the biggest champions of personal data ownership and paid services when it comes to social networks is forging an experiment in file storage and ownership. Dalton Caldwell plans to announced Monday that App.net will be launching a file storage API, giving each of its existing users 10 GB of file storage space connected with their accounts, so they can personally host their own photos and files and then authorize App.net apps to access those files.

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App.net launched in the summer of 2012, and it’s still a little unclear exactly how Caldwell’s vision for the network is going to play out. He is currently committed to a paid network strategy where users have access to all the apps created on top of the App.net API, including everything from group texting apps to a network that looks pretty much like Twitter. Developers are paid from users subscription fees based on the popularity of the apps developers build.

Central to Caldwell’s thesis is that a paid network creates more value for the developers and gives users more ownership over their data and information. For instance, if you have an Instagram or Flickr account, you upload photos to the services which are then hosted on those companies servers even if you retain copies of the photos yourself. With App.net’s storage API, you would host your own photos in the cloud, and give authorization to different apps to access your photos (just as you give an app access to photos on your iPhone’s camera roll, for instance.)

“It’s like your personal Dropbox,” Caldwell said. “You want to maintain the originals and feel like theyâ�?�?re yours.” He noted that allowing for photo and file apps will be an important part of growing the App.net developer network, which is now fairly focused on text-based apps.

Caldwell said he thinks moving into photo and file storage will provide App.net developers a good deal of flexibility in what they design with the service’s API, and moves App.net into a potentially more useful and lucrative area for both users and developers.

“It’s an attempt to get away from some of the downsides of a siloed data storage,” he said.

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Top Stocks For 2/4/2013-5

MercadoLibre, Inc. (NASDAQ:MELI) decreased 2.26% to close at $70.84. MELI traded 1.24 million shares for the day and its earning per share remained $1.16. MercadoLibre, Inc., through its subsidiaries, hosts online commerce and payments platforms in Latin America. Its services are designed to provide its users with mechanisms to buy, sell, pay for, and collect on e-commerce transactions. The company principally offers MercadoLibre marketplace, an automated online commerce service, located at mercadolibre.com, which permits businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format.

Oclaro, Inc. (NASDAQ:OCLR) decreased 1.14% to close at $12.12. OCLR traded 1.26 million shares for the day and its earning per share remained $0.19. Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems that generate, detect, amplify, combine, and separate light signals in telecommunications networks. It offers telecom products, including tunable laser transmitters, fixed wavelength laser transmitters, lithium niobate modulators, receivers, transceivers, transponder modules, pump laser chips, and amplifiers.

Sohu.com Inc. (NASDAQ:SOHU) decreased 2.99% to close at $69.69. SOHU traded 1.27 million shares for the day and its earning per share remained $3.31. Sohu.com Inc., an Internet company, provides news, information, video content, entertainment, and communication services in the People�s Republic of China. The company was formerly known as Internet Technologies China Incorporated and changed its name to Sohu.com Inc. in September 1999. Sohu.com Inc. was founded in 1996 and is based in Beijing, the People�s Republic of China.

European Markets Pause

European equity markets started the week cautiously after a particularly strong session on Friday, during which the Dow Jones Industrial Average was pushed to a high of more than five years.

The DJIA rose 1.1%, to 14,009.79 on Friday, climbing above 14,000 for the first time since Oct. 12, 2007. As a result, most traders expected equities, in particular, to pause for breath on Monday. The euro dipped against the dollar and the British pound in early trading, while stocks, oil and gold prices were mixed within a tight range.

Spanish and Italian government bond yields pushed higher due to political concerns in Spain. Corruption allegations emerged last week against Spain's governing party, bringing the recent improvement in sentiment to a halt in euro-zone debt markets. "The weekend news flow served as a timely reminder of the political risks looming on the European horizon," said Deutsche Bank .

Spanish Prime Minister Mariano Rajoy moved to contain a scandal over alleged cash payments to him and other leaders of his party by promising to disclose his tax returns and financial assets. But this didn't stop protesters from taking to the streets on Saturday in Madrid, Barcelona and other cities in Spain.

Adding to Spain's woes, the number of people out of work there rose 2.7% on the month in January, according to data released on Monday. The currency bloc's No. 4 economy is failing to curb rising jobless claims. Last month, the country's statistics institute said 26% of Spain's working-age population was unemployed at the end of December�the second-highest unemployment rate in the euro zone, after Greece.

In stocks news, Swatch Group AG shares surged following well-received earnings. The world's largest watchmaker by sales reported a 26% increase in full-year net profit for 2012.

Julius Baer Gruppe AG shares dropped after the Swiss private bank reported its full-year results. Assets under management increased 11%, but some analysts said its rising cost base was a concern.

In the U.K., the banking sector trod water ahead of a speech by Treasury chief George Osborne. He is expected to announce draft legislation on "ring-fencing" within the industry and to warn that banks could be broken up if they fail to separate their retail and investment arms.

The U.K. construction purchasing manager's index, euro-zone producer prices and U.S. factory orders are scheduled for release on Monday.

Write to Andrea Tryphonides at andrea.tryphonides@dowjones.com

Top Stocks For 2/4/2013-5

MercadoLibre, Inc. (NASDAQ:MELI) decreased 2.26% to close at $70.84. MELI traded 1.24 million shares for the day and its earning per share remained $1.16. MercadoLibre, Inc., through its subsidiaries, hosts online commerce and payments platforms in Latin America. Its services are designed to provide its users with mechanisms to buy, sell, pay for, and collect on e-commerce transactions. The company principally offers MercadoLibre marketplace, an automated online commerce service, located at mercadolibre.com, which permits businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format.

Oclaro, Inc. (NASDAQ:OCLR) decreased 1.14% to close at $12.12. OCLR traded 1.26 million shares for the day and its earning per share remained $0.19. Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems that generate, detect, amplify, combine, and separate light signals in telecommunications networks. It offers telecom products, including tunable laser transmitters, fixed wavelength laser transmitters, lithium niobate modulators, receivers, transceivers, transponder modules, pump laser chips, and amplifiers.

Sohu.com Inc. (NASDAQ:SOHU) decreased 2.99% to close at $69.69. SOHU traded 1.27 million shares for the day and its earning per share remained $3.31. Sohu.com Inc., an Internet company, provides news, information, video content, entertainment, and communication services in the People�s Republic of China. The company was formerly known as Internet Technologies China Incorporated and changed its name to Sohu.com Inc. in September 1999. Sohu.com Inc. was founded in 1996 and is based in Beijing, the People�s Republic of China.