'Mad Money' Lightning Round: Take a Pass on Sony

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say about some of the stocks callers offered up during the "Mad Money Lightning Round" Friday evening:

First Majestic Silver (AG): "I'd rather you be in a gold ETF rather than a single mining stock."

Sony (SNE): "I'd take a pass on that one." MGM Resorts (MGM): "I think it can see $25 a share." Icahn Enterprises (IEP): "It's never to late to get into this stock." Atmel (ATML): "No. There's nothing there. I don't want to own it." To read a full recap of "Mad Money" on CNBC, click here. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

Cash Gushes Into Stock Funds

Inflows last week into U.S. stock mutual funds and exchange-traded funds were the most in two months, with investors pumping money into stock funds as the S&P 500 rose again to record highs.

Investors placed $11.5 billion into both U.S. stock mutual funds and ETFs in the week ended Oct. 23, according to fund tracker Lipper. Last week’s intake was the largest since Sept. 18, and compares with an inflow of $9.7 billion in week ended Oct. 16.

Traditional U.S. stock mutual funds, excluding ETFs, took in $4 billion, the largest single-week gain since the week of Jan. 9, towering over the $915 million that flowed in during the previous week.

Domestic stock ETFs received $7.5 billion, compared with $8.8 billion a week earlier.

The biggest takers among ETFs all are made up of U.S. stock funds. The market's behemoth, the $156 billion SPDR S&P 500 ETF(SPY5.LN) (SPY), took in $2.9 billion last week. Enthusiasm for tech stocks saw the Nasdaq-100 Index tracking PowerShares QQQ (QQQ) rake in $1 billion, while the SPDR S&P MidCap 400 (MDY) absorbed $750 million.

Demand picked up for funds made up of overseas stocks as well. International equity mutual funds and ETFs took in $4.2 billion last week, also the most in two months. Investors have been particularly keen on Europe, where signs of stability for are cropping up for the first time in years. Investors poured $5 billion into European stock mutual funds and ETFs last week, the most ever, according to Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch.

Europe-based stock funds have soaked up cash for 17 consecutive weeks.

The S&P is sitting less than one point beneath a new record. Stocks have been pushing higher since lawmakers averted a U.S. debt crisis earlier and as concerns that the Federal Reserve will start to cut back its stimulus efforts this year recede.

Former Obama Adviser Says President Will Nix Keystone XL Pipeline

Carol Browner, who served as the U.S. Environmental Protection Agency (EPA) administrator under President Clinton and as director of the White House Energy and Climate Change Policy under President Obama, told a Washington audience on Thursday that Obama will reject the 1,700-mile long Keystone XL pipeline being proposed for construction by Transcanada Corp. (NYSE: TRP).

Browner said:

At the end of the day, he is going to say no. There will be some more twists and turns before we get there.

Former U.S. Vice-President, Al Gore, called the pipeline an "atrocity" at the same meeting at which Browner made her remarks.

Obama has said that he would only approve the Keystone XL "if this project does not significantly exacerbate the problem of carbon pollution." A U.S. State Department study in March found that the pipeline would not cause major changes in the amount of carbon emitted as a result of the development of Canada's oil sands.

That is the point on which the U.S. government and environmental critics of the pipeline part company. The critics argue that if the pipeline is not built then development of the oil sands will not proceed at its planned pace. Keystone XL would have capacity to move more than 700,000 barrels of bitumen a day from Alberta to the U.S. Gulf Coast.

Increased rail transportation may play a bigger role in shutting down the pipeline than any environmental argument. Transport by rail to both the East and West Coasts of the U.S. has lifted the price of oil sands crude and it is far cheaper to build more rail terminals in more locations than it is to run pipelines. Pipeline transportation still costs less than half as much as rail transport, but the advantage of shipping crude by rail is that railroads go everywhere.

Q3 Earnings Roundup for Pharmaceutical Stocks

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If there’s one thing investors have relearned about pharmaceutical stocks in the wake of third quarter’s earnings results, it’s that no two of these are cut from the same cloth. Oh, Amgen (AMGN), Bristol-Myers Squibb (BMY), Eli Lilly (LLY), and all the other pharmaceutical stocks are in the same business — they all create and market drugs. But, these companies are as different from one another as their drug portfolios are. They’re best handicapped on a case-by-case basis, and Q3′s earnings reports underscore much of what traders need to know.

Bristol-Myers Squibb

BMY was the most recent of the major pharmaceutical stocks to post last quarter’s numbers, telling us on Wednesday it earned 46 cents per share, which topped estimates by a couple of pennies. That was a 12% improvement on the per-share earnings total from a year earlier. BMY reported a 9% improvement in revenue, driven almost entirely by overseas sales.

What investors need to know: While Bristol-Myers Squibb put up great overall numbers, the loss of the patent on blood-thinner Plavix in early 2012 continues to take a toll on BMY. Sales fell another 34% on a year-over-year basis, down to $42 million. Newly approved Eliquis, for aerial fibrillation patients, saw an anemic $41 million in sales, well shy of the potential annual sales of $5 billion BMY was touting around the time is was approved. Fortunately, its key cancer drugs in addition to its schizophrenia drug Abilify more than made up for the decline in Plavix and weak sales of Eliquis.

Eli Lilly

While Eli Lilly wasn’t a poor performer within the world of pharmaceutical stocks last quarter, its reasonably good results in the third quarter were overshadowed by the disaster expected in 2014. In Q3, LLY banked $1.11 per share, up from 79 cents per share a year earlier, easily topping estimates of $1.04. Sales were up 6.0%, led by antidepressant Cymbalta, which generated revenue of $1.37 billion for LLY  in the third quarter.

What investors need to know: While Cymbalta may be a homerun right now, analysts believe that LLY earnings could fall as much as 25% in the coming year, as Cymbalta will lose its patent protection in December of this year. The patent for osteoporosis drug Evista will expire in March of 2014, jeopardizing another $1 billion of annual revenue for LLY.

Amgen

Amgen could arguably be the big winner so far among the pharmaceutical stocks that have reported Q3 earnings, posting a 24% increase in profits fueled by a 10% bump-up in revenue. AMGN posted operating income of $1.94 per share, versus expectations of $1.76.

What investors need to know: To say that AMGN is firing on all cylinders and is one of the market’s top pharmaceutical stocks would an understatement. Six of its drug saw double-digit sales growth in Q3, and revenue is about to get considerably stronger, too. In addition to newly developed joint ventures that will sell one drug in China and eventually several in Japan, the recent acquisition of Onyx Pharmaceuticals will begin to boost the top and bottom line for AMGN as of the current quarter. Onyx only generated $362 million in sales last year, but AMGN expects its blood cancer drug Kyprolis to be a multi-billion dollar blockbuster.

A couple of other key pharmaceutical stocks released their third quarter numbers early on in the current earnings season: Baxter International (BAX), and Johnson & Johnson (JNJ). While both are waist-deep in non-pharma businesses, they’re still worth a close look through the same pharmaceutical lens.

Baxter International

Last quarter, BAX earned $1.19 per share in operating income, meeting estimates, and topping the $1.14 earned in Q3 2012. Revenues grew by 9%, thanks largely to the acquisition of Gambro — a deal that BAX completed during the quarter to help it compete against the other pharmaceutical stocks on this list.

What investors need to know: Although overall sales were up for BAX due to strong sales of its hemophilia treatment Advate (one of its best-selling drugs); the hemophilia division accounts for about 22% of total revenue. Those sales are in jeopardy now that Biogen Idec (BIIB) has filed for approval of two hemophilia treatments of its own. The FDA should have a decision on those two Biogen drugs in the first half of the coming year.

Johnson & Johnson

JNJ posted a profit of $1.35 per share, topping the year-ago figure of $1.25 and beating estimates of $1.32. Revenue grew by 3.0% on a year-over-year basis. While those results may be tepid in comparison to other pharmaceutical stocks, considering JNJ is the world’s largest healthcare company, the revenue and earnings improvements are impressive.

What investors need to know: Sales of newly-launched drugs (or drugs approved for new indications) are driving the lion’s share of the growth for JNJ. Sales of cancer drug Zytiga, for instance, were up 75% compared to the year-ago total, and Xarelto sales almost tripled last quarter compared to the Q3-2012 figure. Meanwhile, the consumer products and medical device divisions at JNJ are hitting a wall, showing little to no growth in the third quarter.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Asian Stocks Fall on U.S. Shares Drop, China Money Rates

Asian stocks fell for a second day as China's money-market rates continued to surge and after U.S. shares retreated from a record amid disappointing company earnings forecasts.

Agricultural Bank of China Ltd. dropped 2 percent in Hong Kong, pacing declines among Chinese lenders. Komatsu Ltd. (6301), Asia's biggest maker of construction equipment, sank 2.8 percent in Tokyo after larger rival Caterpillar Inc. lowered its 2013 sales and profit forecast. Hitachi Ltd. jumped 7.4 percent in Tokyo after the electronics and machinery maker posted preliminary first-half earnings that beat analyst estimates.

The MSCI Asia Pacific Index slipped 0.2 percent to 142.42 as of 1:01 p.m. in Tokyo as seven of the 10 industry groups on the measure declined. The gauge fell 0.8 percent yesterday, snapping a four-day advance, as a surge in China's money-market rates fueled a global slump in stocks and metals. The measure climbed to a five-month high on Oct. 22 amid speculation the Federal Reserve will delay tapering its economic stimulus.

"The market has been overbought and a pull-back is just natural," John Woods, Hong Kong-based head of fixed income at Citi Investment Management, said by telephone. "Excessive capital inflows into China may have been a concern for authorities and they've probably taken steps to address the underlying liquidity. We remain positive on equities."

China Rates

China's Shanghai Composite Index slid 0.2 percent as money-market rates climbed for a sixth day as the nation's central bank refrained from injecting cash in open-market operations for the third auction in a row amid signs of a pickup in Asia's biggest economy.

The HSBC Holdings Plc and Markit Economics flash purchasing managers' index of China's manufacturing increased to 50.9 this month from 50.2 in September. That compares with the median estimate of 50.4 in a Bloomberg survey of economists.

China's seven-day repurchase rate, a gauge of funding availability in the banking system, surged as much as 95 basis points today to 5 percent, the highest since Aug.1, according to a weighted average compiled by the National Interbank Funding Center.

Regional Gauges

Hong Kong's Hang Seng Index slipped 0.9 percent and Japan's Topix index fell 0.4 percent. New Zealand's NZX 50 Index declined 0.9 percent, retreating from a record. South Korea's Kospi index, Taiwan's Taiex index and Singapore's Straits Times Index all lost 0.1 percent. Australia's S&P/ASX 200 Index rose 0.4 percent.

The MSCI Asia Pacific Index climbed 3 percent this month through yesterday after U.S. lawmakers ended the government shutdown and raised the debt ceiling. The gauge traded at 13.7 times estimated earnings, compared with 15.8 for the S&P 500 and 14.7 for the Stoxx Europe 600 Index.

Standard & Poor's 500 futures gained 0.3 percent today. The U.S. equity gauge fell 0.5 percent yesterday, snapping a five-day rally, as forecasts at companies from Caterpillar Inc. to Broadcom Corp. disappointed investors.

'Too Optimistic'

"The market has come a long way now and there's not enough of a boost from earnings for the market to sustain this strong pace of advance," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $131 billion, said by telephone. "People are still a bit too optimistic on earnings."

Of the 169 S&P 500 companies that have reported results this season, 76 percent exceeded analysts' predictions for profit, while 54 percent beat sales estimates, according to data compiled by Bloomberg.

Former Federal Reserve Chairman Alan Greenspan said stock market momentum is heading upward.

"In a sense, we are actually at relatively low stock prices," Greenspan, who guided the central bank for more than 18 years, said in an interview with Sara Eisen on Bloomberg Television. "So-called equity premiums are still at a very high level, and that means that the momentum of the market is still ultimately up."

Best Casino Stocks To Buy Right Now

Some fast-growing companies trade at valuations that just don't make sense. Though many of these stocks probably present worse probabilities of success than a casino, a rare few are well deserving of their unthinkable premiums. What separates them from the rest? Two things: excellent economics and massive market opportunity. Case in point: Facebook (NASDAQ: FB  ) and Amazon.com (NASDAQ: AMZN  ) -- two top stocks for investors looking for growth.

Facebook
Facebook's business model inherently drives demand through the network effect. With each additional user, the platform becomes more useful -- both for users and advertisers. Nowhere is Facebook's network effect more evident than in its continually improving engagement rate, or the percentage of monthly active users, or MAUs, who use Facebook on a daily basis.

In the company's first-quarter results, 60% of its 1.1 billion MAUs used Facebook on a daily basis versus 58% of its 900 million users in 2012. In the U.S. and Canada, growing engagement was even more evident, with 92% of users accessing Facebook on a daily basis compared with 70% last year.

Best Casino Stocks To Buy Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By M. Joy, Hayes]

  Industry trends
  Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

• [By Travis Hoium]

  What: Shares of Boyd Gaming (NYSE: BYD  ) jumped 10% today after the company got an analyst upgrade.

  So what: Morgan Stanley upgraded shares to overweight today, and gave the stock a $12 price target. The analyst cited the potential for online gaming as the driver of the stock, potentially bringing as much revenue to the industry as Las Vegas and Atlantic City combined. �

Best Casino Stocks To Buy Right Now: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Dan Caplinger]

  4. Nevada
  The $8.25 minimum wage that Nevada pays comes with an interesting twist: Companies that offer health insurance benefits to their employees are allowed to pay $1 less in hourly wages. Although a referendum in 2006 required the state to index its base wage to inflation, the wage has stayed the same since 2010. Another perk: Tipped employees have to receive the same minimum wage as other workers. That's a big cost for Las Vegas Sands (NYSE: LVS  ) , Wynn Resorts (NASDAQ: WYNN  ) , and other companies with casinos in the state that might otherwise be able to pay many of their tip-earning workers less.

Hot Gold Companies To Invest In 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  But there's still evidence that it exists, even if authorities don't push hard for information. MGM Resorts (NYSE: MGM  ) was forced to divest its New Jersey properties because of the company's relationship with Pansy Ho, whose father had ties to triads in Macau. Las Vegas Sands is under investigation by the U.S. attorney's office for possibly violating money laundering laws in Macau last year.

• [By Travis Hoium]

  What we can take from this is that, most likely, Las Vegas Sands and Melco Crown (NASDAQ: MPEL  ) will see a large increase in revenue when they report earnings. We can also assume that MGM Resorts (NYSE: MGM  ) will show similar trends in Macau because its location is next to Wynn's. There's far more growth to be had than what Wynn is showing and Las Vegas Sands and Melco Crown likely took significant share during the first quarter.

Best Casino Stocks To Buy Right Now: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Roberto Pedone]

   

  Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

   

  Monday's Volume: 1.11 million
  
  Three-Month Average Volume: 824,334
  
  Volume % Change: 73%

   

   

  From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

   

  Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

   

Best Casino Stocks To Buy Right Now: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Best Casino Stocks To Buy Right Now: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

• [By Dan Radovsky]

  Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

CEO spouses travel on company dime in little-kn…

Your company is almost certain to pick up your business trip costs. But if your spouse or significant other tags along, who foots the bill?

If you're a CEO, a senior executive or even a part-time corporate director, your company may be covering the cost — often on top of seven-figure compensation packages and other perks ranging from cars and country club memberships to cash allowances.

At a time when some companies are under shareholder pressure to rein in excessive pay and benefits, many continue to offer a little-known perk buried in the fine print of Securities & Exchange Commission filings: the business travel tab of the spouses and significant others of CEOs, senior execs and board members.

CEO PAY: Executive compensation skyrockets on soaring stock market

A USA TODAY analysis of corporate proxies found scores paying for travel, lodging and meals for business-related events, corporate junkets, even attendance at last summer's Olympics in London. In some cases, companies even covered executives' taxes on spousal travel reimbursements because it was considered income.

Perks ranging from country club memberships to personal use of corporate aircraft have long been part of executive compensation packages, partly under the corporate mantra that they're needed to attract and retain leaders and partly due to the fact that compensation consultants often benchmark offerings at one company, making it easier for others to follow suit.

Companies, through proxy statements and spokespeople, say covering spousal travel costs fosters better relationships among directors, execs and employees. But corporate governance experts say spousal travel benefits for well-compensated execs and part-time directors cross the line.

"You have to wonder why companies are paying for stuff like this,'' says Michelle Leder of proxy-tracker Footnoted.org. "It's not as if any of these people are surviving on minimum wage or have taken a vow of poverty."

AN OLYMPIC OUTLAY

La! st summer's Olympics in London was a company-paid destination for several spouses of execs and directors.

Foot Locker reimbursed CEO Ken Hicks — who received $10.5 million in 2012 compensation and gained $12.9 million from vested shares — more than $8,000 for his wife's Olympics trip. Visa provided board member Robert Matschullatover $30,000 in spousal travel and director John Swainson nearly $13,000. That's on top of over $300,000 each in board compensation.

Cisco Systems provided director Michael Capellas over $20,000 to cover spousal expenses and taxes for two trips, including one to the Olympics. Capellas received $295,000 for board service last year, and as head of the company's joint venture with EMC until last November, received over $2 million more in pay and incentives.

General Electric paid for Olympics' trips for more than a dozen board members and executives. In SEC filings, GE lumps spousal travel costs with other perks, including discounted GE products, car service, home security and medical exams for senior execs. For directors, spousal travel is combined with discounted products. The company says the value of individual spousal travel payouts, described as "certain expenses" in its proxy, was less than $25,000. GE spokesman Sebastien Duchamp declined to comment.

Among other examples, General Mills forked out over $34,000 in spousal travel costs for CEO Ken Powell and about $32,000 in spousal travel and tax reimbursements for COO Ian Friendly, mostly for a Dubai meeting of Cereal Partners Worldwide, General Mills' joint venture with Swiss food giant Nestle. "Spousal attendance was encouraged,'' says General Mills spokeswoman Kirstie Foster. Powell's 2012 compensation: $8.6 million, plus $7 million from exercising previously awarded stock options and vested shares. Friendly received about $2.7 million in 2012 compensation and gained $7.5 million from vested shares and exercised stock options.

Pork processor Smithfield Foods covered over $10,000 in tr! avel expe! nses for CEO C. Larry Pope's wife. That's on top of $75,000 for Pope's personal use of corporate aircraft, $35,000 for a company car, $102,000 in charitable matching contributions and compensation valued at over $8 million. Pope also gained $6.2 million from vested shares and will make at least $22 million in retention bonuses and accelerated vesting of company stock following Smithfield's $7.1 billion buyout by China's Shuanghui International. Smithfield did not respond for comment.

Haliburton valued 2012 spousal travel costs for CEO David Lesar at $34,000 — plus $19,500 in taxes the company covered for imputed income related to spousal travel. That's on top of the $343,000 the oil services giant says Lesar received for personal use of corporate aircraft. Lesar's 2012 compensation: over $17 million, plus a $13.6 million from vested shares.

Ventas, a Real Estate Investment Trust, covered nearly $58,000 in spousal travel and entertainment benefits for CEO Debra Cafaro. Her 2012 compensation: $11 million, plus $11.3 million from vested shares and exercising previously awarded stock options.

FOSTERING CLOSER TIES

Corporate policies are as varied as the companies offering them. Dell says it pays for "reasonable" spousal travel expenses if it requests spouses' attendance at company-sponsored events. Visa says such perks facilitate management performance.

Chevron, which covered up to $20,000 for directors' spousal travel costs to Southeast Asia last October, says the benefit helps foster "social interaction among directors as well as provide opportunities for spouses to attend receptions with local and expatriate employees," according to its proxy. Chevron directors receive annual retainers worth $300,000.

Industrial parts maker Parker Hannifin says spousal travel reimbursement helps "encourage executive officers to spend an appropriate amount of time with their direct reports in locations away from corporate headquarters, to allow executive officers and their spou! ses to de! velop a more personal relationship with the executive officers' subordinates and their families, and to encourage spouses to attend retirement parties, funerals, business dinners and other corporate functions at locations away from their homes."

Other companies say spousal travel reimbursements promote chummier relationships.

Baxter International reimburses travel and entertainment expenses of "significant others of directors" because board members believe it helps "to create a sense of collegiality" and helps "in fulfilling their responsibilties,'' according to the company's latest proxy. Among Baxter's 13 directors, 11 have been on the board at least six years.

The rationale is similar at ConocoPhillips, which reimburses directors and execs for spousal and guest travel to functions such as retirement parties. "The board believes that such costs are expenses of creating a collegial environment that enhances the effectiveness of the board," according the the company's proxy. (Half the board's 10 directors are new since 2010.)

ConocoPhillips director Mohd Marican received more than $61,000 for guest-related travel and taxes covering travel costs in 2012. He and other board members received annual retainers worth $285,000.

ConcocoPhillips also picked up spousal and guest-related travel taxes valued at nearly $31,500 for outgoing CEO James Mulva, who received nearly $12 million in compensation after retiring six months into 2012. The company also provided Mulva with $22,260 to cover taxes for the value of his retirement gifts. That's on top of a $68.4 million pension payout, $67.3 million gains exercising previously awarded stock options and another $64.8 million from vested shares.

EXACT SUMS ELUSIVE

At many companies, it's virtually impossible to determine what is spent on spousal travel. GE, Target, BMC Software, leisure products marketer WMS Industries and Parker Hannifin, among others, lump spousal travel costs with other executive perks. Furniture ! maker Her! man Miller's execs cover spousal travel costs under a "bundled benefits" plan worth up to $36,000 a year that can also be used for cellphone fees, club dues and commuting.

About 20% of Fortune 500 companies surveyed by compensation consultant Towers Watson provide spousal travel perks. But considering many execs are allowed personal use of the corporate aircraft or are required to fly corporate planes even when not on company business, spousal travel costs may be under-reported.

"There is some ambivalence and confusion on how companies are reporting this,'' says Robert Newbury, Towers Watson's director of executive compensation resources.

One thing's for sure: spousal travel reimbursements — unlike other perks that have been stripped away from many executives in an era of increasing shareholder activism and anger at excessive compensation — are not fading away. That 20% number cited by Towers Watson is virtually unchanged since 2008, Newbury says.

Yet while some companies say they need to maintain spousal travel perks to keep them competitive with other firms, not all agree.

After reviewing its executive perk and benefits plan, Applied Industrial Technologies ended spousal travel pay and related taxes as well as reimbursing employees for child-care costs while they were on business trips. The manufacturing supplier says such perks are no longer warranted to attract and retain "superior employees for key positions."

AIT also jettisoned other perks commonly provided to senior execs, including car allowances, club memberships and financial planning.

Corporate governance experts such as Paul Hodgson approve such moves.

"Bottom line, this isn't a lot of money,'' Hodgson says. "But it's not needed."

The Only $1 Stock You Should Buy Today

If you want to be successful in the stock market, then sometimes you must think like a contrarian.

I've spent 15 years in the investment industry. In that time, I've seen many investors struggle and many others make a fortune.

The difference between success and failure usually has little to do with intelligence or analytical skills. Rather, the best investors generally have an ability to stay cool under pressure and the fortitude to break away from the herd when necessary.

 

This is the best way to make money when it comes to commodity investing.

Like many investors, I've been neutral to bearish for most precious and industrial metals over the past couple of months. However, there is one notable exception.

Before I tell you about this metal, let me give you some background on it first...

It's one the scarcest metals on the planet. In fact, for every 10 ounces of gold pulled out of the ground, only 1 ounce of this metal is taken out of the ground -- and gold is supposedly one of the scarcest metals on Earth.

This is exactly the sort of scarcity that can drive up prices; all that's needed is demand. And we're seeing that, too.

So what metal is going against the grain? Palladium.

What's going on with this metal is exactly what you should look for when seeking out a commodity to invest in.

	Palladium is one the scarcest metals on the planet. For every 10 ounces of gold pulled out of the ground, only 1 ounce of this metal is taken out of the ground.

Unlike gold, whose value hinges on fickle expectations for monetary stability, palladium prices are influenced by more predictable supply-and-demand fundamentals.

Even under optimum conditions, palladium mines have been struggling to keep up. Not to mention that last year labor disputes cut operations at several large mines, leading global output to fall 11%.

Additionally, due to rising costs, many producers have been forced to close less economical mines.

In years past, withdrawals from Russia's palladium stockpile could cover any shortfall, but those reserves are now thought to be nearly exhausted.

On top of the dent in supply is a dramatic increase in demand. Worldwide palladium consumption jumped 16% last year to hit a record 9.9 million ounces. And I expect equal or greater consumption in 2013 and beyond.

Palladium is an extremely important metal. In fact, I would say it's indispensable for the global economy.

It plays a key role in the automotive industry. They are essential to catalytic converters, which turn vehicle exhaust into harmless water vapor. Without these devices, internal combustion engines would spew out tons of noxious pollutants. That's why they are installed on almost every car and truck that hits the road.

And auto manufacturing is one of the few strong spots in an otherwise soft global economy.

According to LMC Automotive, an automotive industry market research firm, global vehicle production will rise 3.4% this year to 83.8 million vehicles. And growth is expected to accelerate 6% next year.

Keep in mind, auto manufacturers make up 65% of demand, but aren't the only hungry buyers anxious to get their hands on palladium. It's also found in iPods, Blu-ray players and flat-panel monitors, among other places.

Put the picture together, and you start to see why palladium has decoupled from other commodities, gaining ground at a time when just about everything else is retreating. I expect it to rise above the $800 in the coming year -- a 20% increase from current prices.

So what's the best way to invest in palladium? Rather than trying to invest in it directly, like all commodities, I like putting my money with miners pulling the stuff out of the ground.

For palladium I like junior miner North American Palladium (NYSE: PAL), which I'm expecting big things from over the next 12 to 24 months.

There are three main ways that a miner can boost cash flows and excite the market:

1) Fetch higher prices for its metals.

2) Produce and sell more of those metals.

3) Find a way to get them out of the ground for less.

An improvement in any of these areas can make a dramatic difference. I believe North American Palladium is positioned to achieve all three.

First, given the supply and demand factors I discussed above, I am confident palladium will continue climbing.

Second, North American Palladium is in the midst of redoubling its efforts to extract value from its flagship palladium mine -- located in Canada, one of the few mines outside of Siberia and South Africa. The property relinquished 163,000 ounces of palladium last year and has much more to give.

In fact, output is expected to rise to 250,000 ounces per year once expansion efforts end. That's an increase of 90,000 ounces annually -- nearly 60% above current production levels.

Finally, when production begins to expand, costs are expected to drop precipitously, diving to $250 per ounce by 2015 (versus $490 today). With costs falling and palladium prices rising, profit margins could surge to around $550 an ounce, from $240 per ounce today.

Multiply that $550 by an additional 90,000 ounces of annual production, and you start to see that North American Palladium has the potential to multiply its stock price several times over.

Granted, there are several variables that have to fall the right way for this bullish scenario to play out. But at less than $1 per share, the market is expecting very little from North American Palladium. Still, the stock is better-suited for risk-tolerant investors.

Action to Take --> I think this could be one of the best ways to take advantage of global palladium supplies being stretched ever thinner. As more palladium begins flowing, the company will transition into a more efficient, mid-tier producer.

P.S. -- While I'm bearish on most of the energy sector right now, there are ways to invest in this sector that could lead to massive gains. For example, right now, a technology is being developed right here in the U.S. that could turn cheap natural gas into one of the most expensive transportation fuels on the market. I think this technology could easily turn a $5,000 investment into $50,000 within the next five years. To learn more, click here.

VMware Earnings Charging To Virtualization, EMC Next

VMware Inc. (NYSE: VMW) is seeing a strong reaction to its corporate earnings report. Its third quarter sales were broadly in-line with analyst expectations, but earnings managed to beat the consensus analyst estimates. The VMware report always tends to have a reflection on EMC Corp. (NYSE: EMC) as EMC is the super-majority shareholder here.

VMware’s earnings came in at 20% growth in operations at $0.84 per share and revenue was up 14% to $1.29 billion in the quarter. The consensus analyst estimates were $0.82 in earnings per share and were $1.29 billion in sales for the quarter. What stands out is that sales growth would have been 19% if you exclude GoPivotal and divestitures from this year. WMware’s operating margin was 33.9% in the last quarter.

The bias of the call was very positive, as comments of being very pleased with results were followed with continuing to gain momentum globally. VMware is also seeing strong customer demand and talked up its prospects for the software defined data center.

We did not see guidance so we will hold off on judgment until later. VMware shares closed up 1.5% at $82.65 on Monday and the after-hours trading session had shares up almost 4% more at $85.92. The stock’s 52-week trading range is $64.86 to $99.55.

EMC shares closed up 0.6% at $25.24 and its shares were up close to another 3.5% or so around $26 on last look. Its earnings estimates are $0.45 EPS on sales of $5.8 billion.

President Obama Needs This Industry to Survive

Last year's election featured a pretty heated debate on the future of coal in America. Many living in the Pittsburgh area, where I reside, weren't too happy with President Obama's attitude toward coal, as evidenced by the yard signs. With so many jobs tied to its production, they simply wanted the war against coal to end so that the high-paying jobs that it produced would stay in the region.

While coal producers are feeling the pinch and the coal industry has been a job killer in terms of domestic consumption, there is some hope. Coal exporst have been booming. In fact, exports have more than doubled since 2008 and growth in coal exports are only expected to grow in the future thanks to demand overseas as well as the availability of additional export capacity.

As it turns out the coal export market is really carrying a lot of weight these days for one of President Obama's initiatives, the National Export Initiative. That initiative's goal was to renew and revitalize our efforts as a nation to promote and increase our exports around the world. Coal companies have taken full advantage of both demand overseas and our nation's increasingly pro-export stance. In fact, just this past February, the Bipartison Policy Center recommended that coal exports not be restricted because of the net economic benefits exports produced.

Not only is that great for U.S.-based coal producers but it's huge for jobs. According to Ernst & Young, exporting coal creates high value jobs with wages that are on average $96,100 per year. For perspective, the average U.S. worker rakes in about $64,000 per year. One thing job seekers should note is that many coal producers are finding it more difficult to find the skilled employees needed to replace its current workforce as it nears retirement. That could signal that wages will head even higher in the future.

Overall, coal exports contributed about 141,270 jobs to the U.S. economy in 2011. This included about 39,350 direct jobs at mines, transportation companies, and at our ports as well as over 100,000 indirect jobs. It's believed that for every million tons of coal we export the industry requires about 1,320 jobs.

For Pennsylvania, where I live, it's estimated that coal exports contribute about 12,500 jobs to the economy as well as about $1.5 billion in economic value. These jobs are found at major Pittsburgh-based employers like CONSOL Energy (NYSE: CNX  ) which is the largest producer of coal east of the Mississippi River. In Pennsylvania alone the company supports 2,635 employees in both its gas and coal businesses, some of which are employed to support the 10.3 million tons of coal that the company exports.

Source: CONSOL Energy 

Just for some additional perspective on how important coal is to the economy we'll take a look just a little farther south in West Virginia. In that state, Alpha Natural Resources (NYSE: ANR  ) has about 6,700 employees but its coal business supports about 23,450 total jobs. The average worker in West Virginia takes in about $38,000 per year, whereas the average coal industry employee takes home $85,000 per year. Coal exports are a big economic driver for the state by supporting nearly 24,000 jobs and contributing $3 billion in economic value.

Not only do coal exports benefit coal producing states, but they are a big economic driver and job creator for states that export coal globally. Consider Virginia, which has a major coal export facility in Norfolk operated by the Dominion Terminal Associates. That entity, which is owned Alpha Natural Resources, Peabody (NYSE: BTU  ) , and Arch Coal (NYSE: ACI  ) , as well as others like it, help to contribute more than 19,000 jobs to the state as well as $2.5 billion in economic value. It's really a win-win situation, as coal producers have a market for their coal while the states gain high-paying jobs.

For additional color consider South Carolina which only has 700 jobs related to coal export, which produced just $56 million in related economic value for its economy. That state, which has the bustling port of Charleston, could see a big increase in coal-related jobs and economic value if Kinder Morgan Partners (NYSE: KMP  ) moves ahead with its plan to add coal export capabilities at its existing bulk facility at the port. The company is already spending over $450 million to expand its coal export capabilities elsewhere because demand for export capacity is high.

As you can see, the coal industry, despite not being as green as we'd like, is still critical to our nation's economic engine. It's sometimes the forgotten fossil fuel in "America's Energy Resurgence", considering the amount of press that oil and natural gas from shale get. However, we can't forget about the fact that the U.S. possesses the largest estimated recoverable coal reserves in the world. Exporting our excess coal has the potential to be a big economic driver and job creator, which is why President Obama really needs this industry to survive.

The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy 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.

3 things to check before investing in stock market

Learning is a continuous process. Each day we enrich our experience and knowledge by coming across new events and various interactions. Investors relentlessly strive to get their decisions right.

Clinical precision is what they seek, some like Warren Buffet succeed, some other wannabe 'Buffets' are not as fortunate. The quest for new information and knowledge continues perpetually.

Here are a few things which investors will find interesting and will aid them in their search for knowledge and perfection.  

Cycles

Life along with the various other components associated with it, are cyclic in nature. Life cycles and business cycles provide a fair idea of how the circular pattern manifests itself. A serious investor is also well aware that cycles have an important role to play in their investment decisions and actions.

From the investor's point of view there are two rules which have to be accepted as cardinal truths:

Rule I:  Most things prove to be cyclical

Rule II: Some of the greatest opportunities of gain and loss accrue when people forget rule one. 

"Every rise has a fall", "good things do not last forever just as bad things cannot be everlasting" and other such similar metaphors go on to highlight the fact that the circle or wheel is always rolling.

An investor cannot afford to forget the existence of credit or investment cycles and should not base their investment decisions merely by extrapolating trends into the future. If the present position of the cycle cannot be properly deciphered then it will lead to the belief that the chain of good or bad events will continue everlastingly.

With experience, knowledge and increased awareness investors are able to identify patterns and can shape their financial behavior and attitudes accordingly. While it is always wise to be aware of the past it is also important to be attentive about the present.

A fact which is adequately backed by figures prove that mistakes and scams occur more often during the best of times than otherwise. Market watchers tell us that when cheap money is offered, people often borrow, buy and build indiscreetly which later snowballs into a major crisis.

While it is easy to surf the internet and consult sundry magazines and newspapers for future forecasts, it is essential and imperative for a prudent investor to understand the nuances of cycles. This will help them to base their investment decisions on a sound footing.

Pendulum

Howard Mark uses pendulum as an analogy to explain the market behaviour.

The investment market is like the pendulum of the old grand father's clock. It goes ticktock from euphoria to eureka at one end and desperation to dismay at the other. Knowing which way the pendulum is moving is at the essence of good judgement in the investment field.

Under ideal conditions the best position for an investor vis-à-vis the pendulum is when it is neither on an upswing nor on a downswing but at the point of equilibrium. However, this is purely a hypothetical situation as the pendulum will perpetually swing back and forth and will rarely be in equilibrium.

The investor has to understand the behavior of the pendulum in a manner which will give him the best leverage. This is by no means an easy task and it is always difficult to identify how long an arc the pendulum is going to make on either side.

Where we stand

It is always important to assess a position with respect to various direct and indirect influences working in the immediate environment. This is equally true in the world of investments. Knowing where we stand in the market lets us make an objective assessment of the situation and act accordingly.

Our position on the investment landscape is measurable when there is awareness about the business cycle, the progress of the pendulum is known and discretion is used to judge information available.

Pragmatism remains the cornerstone of good investment decisions. The mantra for happy life of the investor lies in being proactive in cutting down undue risks, zealously grabbing opportunities and gauging the market sentiments and attitudes.

While driving through blinding rain or swirling fog a driver has to use a combination of his knowledge, skill, confidence and perseverance in overcoming the odds. He cannot follow the same method as other drivers (on the same route) in all cases as the parameters may be different for him bigger car, less fuel, different physical features etc. This brings about a change in the driving strategy. For an investor the situation is somewhat similar as in both cases it is not known as to what lies ahead.

Practical tips to Investors

Investors would be keen to know how they can sharpen their skills by being acquainted with knowledge about the cycles, the position of the pendulum and the place where they stand.

Here are a set of questions which they can ask for a start:

I. Are investors optimistic or pessimistic about the market?

II. What do the media and financial experts have to say about the market indulge in or refrain?

III. Are security offerings and fund opportunities being weighed upon for making windfall gains or pitfalls?

IV. Is capital readily available or hard to obtain as per the current credit cycle?

V. Are P/E ratios high or low in the context of history and are yield spreads tight or generous?

VI. Is too much money chasing too few deals?

Assessment of the answers can be done by the investor himself or help can be sought from an expert financial adviser who can interpret the results of the questions and provide good guidance and feedback to the investor.

The author is Ramalingam K, CFP CM is the Chief Financial Planner at holisticinvestment.in, a leading Financial Planning and Wealth Management company.