Friday, January 10, 2014

Zucker: GOP being run from Fox News

PASADENA, Calif. (AP) — The chiefs of CNN and Fox News Channel are throwing shots at each other, each suggesting the other's network is essentially out of the news business.

Fox News Chairman Roger Ailes struck first, saying in an interview published this week that it was interesting for CNN "to throw in the towel and announce they're out of the news business." It was a reference to CNN President Jeff Zucker's efforts to expand CNN's offerings beyond breaking news.

"We happen to be in the business, as opposed to some other fair and balanced network," Zucker responded at a news conference on Friday.

He suggested that Ailes' remarks, published in the Hollywood Reporter, were silly and an attempt to deflect attention from "The Loudest Voice in the Room," a book on Ailes and Fox by New York magazine writer Gabriel Sherman that is being published this month.

WOLFF: A liberal takedown of conservative Roger Ailes

Zucker said he hadn't read the book, but that from what he heard it confirmed that "the Republican Party is being run out of News Corp. headquarters masquerading as a cable news channel."

A Fox News spokeswoman said that Ailes gave his Hollywood Reporter interview in December, suggesting it had nothing to do with Sherman's book. She had no other comment on what Zucker said during a meeting with journalists who cover television on Friday.

Zucker, in charge at CNN for a year now, has taken note of flat ratings in pushing CNN to diversify. Non-fiction shows with chef Anthony Bourdain and Morgan Spurlock, ordered before Zucker came to CNN, are consistently among the networks' highest-rated shows. CNN has also beefed up its documentary film unit.

WOLFF: The seemingly unbeatable Roger Ailes

The films drew some barbs from Ailes, as well, particularly the successful "Blackfish," about killer whales. "I guess he's going to do whales a lot," Ailes said. "If I were Discovery, I'd be worried."

Zucker said CNN had several other new non-fiction series i! n the works. In March, CNN will premiere "Death Row Stories," a crime series produced by Robert Redford and Alex Gibney and narrated by Susan Sarandon. CNN is also continuing its concentration on the 1960s with a 10-part series beginning in May. Later this month, CNN will air "The Sixties: The British Invasion" in the days before the 50th anniversary of the Beatles performing on "The Ed Sullivan Show."

Despite such efforts, Zucker said CNN's first priority remains news. A succession of CNN leaders over the past two decades have struggled to figure out how CNN could get a consistent audience during slow news periods. Fox and MSNBC, which appeal heavily to audiences on opposite ends of the political spectrum, have taken viewers away from CNN.

"CNN is not and never will abandon our first and fundamental brand equity, which is news and breaking news," Zucker said.

He also shot down reports that CNN is looking to get into the late-night entertainment business, perhaps by hiring Jay Leno when Jimmy Fallon takes over on NBC's "Tonight" show next month. Zucker was once Leno's boss when he was head of NBC Universal.

"That's really not a priority for us at this time," he said. "We have some other things I'd like to concentrate on first."

5 Best Gold Stocks To Own Right Now

Markets returned with a vengeance on Friday, shooting higher on the Labor Department's June jobs report, which emphasized a resurgent private sector. While private payrolls surged by more than 200,000, the federal government actually cut 5,000 employees. That made for a 195,000 boost to payrolls, far higher than the roughly 165,000 analysts were looking for. The strength, while it drove stocks higher, stoked the sentiment that quantitative easing efforts will surely begin tapering sometime this year. The S&P 500 Index (SNPINDEX: ^GSPC  ) added 16 points, or 1%, to close at 1,631.

Newmont Mining (NYSE: NEM  ) was the S&P's biggest laggard, losing 4.3% Friday. The company is a gold and copper miner and, as such, is very sensitive to the ever-changing prices of those metals. Gold especially is thought of and traded as a hedge to a falling dollar, so a stronger greenback usually goes hand in hand with lower gold prices. That was the case again today, as the possibility of fewer Fed dollars flowing into the economy bid the U.S. currency higher. Gold for August delivery fell more than 3% to end just above $1,210.

5 Best Gold Stocks To Own Right Now: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Steve Sears]

    Shares of Nasdaq OMX Group have gained 0.4% to $30.58 today, while CME Group (CME) has fallen 1.1% to $71.89, IntercontinentalExchange (ICE) has dropped 0.2% to $185.16, and NYSE Euronext (NYX) has ticked down 0.1% to $42.66.

  • [By Shauna O'Brien]

    CME Group Inc (CME) reported on Wednesday that September volume average increased 10% from September 2012, while its third quarter volume average grew 11% from last year.

    For September, volume averaged 13.1 million contracts per day, totaling 261 million for the month. Equity index volume in September averaged 2.9 million contracts per day, a 4% increase from last year. Equity index options volume was up 52% in September.

    Third quarter volume average was 12 million per day, up 11% from a year ago.

    CME Group shares were mostly flat during pre-market trading Wednesday. The stock is up 48% YTD.

5 Best Gold Stocks To Own Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Inyoung Hwang]

    Royal Bank of Scotland Group Plc sank 3.3 percent after reporting results and naming the head of its U.K. consumer unit as chief executive officer. William Hill Plc (WMH) dropped the most in four years after the bookmaker posted earnings that missed analysts��projections. International Consolidated Airlines Group SA (IAG) rose to a five-year high as the parent of British Airways reported an operating profit in the second quarter.

  • [By Patricio Kehoe]

    In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.

Top 10 Safest Stocks To Invest In 2014: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Dan Caplinger]

    Finally, look to other markets for guidance. For instance, precious metals bounced off their recent lows, with gold prices climbing $23 per ounce. Key gold-miners are also up sharply, with Barrick Gold (NYSE: ABX  ) rising about 3% and Goldcorp (NYSE: GG  ) up 1.4%. As two of the largest companies in the industry, both Barrick and Goldcorp have the ability to make strategic moves designed to pick up lucrative assets at bargain-basement prices. As weaker junior miners have to consider extraordinary measures to stay afloat, look for Goldcorp and Barrick to take advantage of fire-sale conditions to take their pick of the litter.

  • [By Sean Williams]

    If you're willing to roll the dice even further, my suggestion would be to look at the two most cost-efficient gold miners: Yamana Gold (NYSE: AUY  ) and Goldcorp (NYSE: GG  ) . Both Yamana and Goldcorp stood atop my top-performing gold miners leaderboard in the first-quarter thanks to extremely low mining costs associated with byproduct metal sales. Yamana has been particularly strong, turning in remarkable production growth, while Goldcorp offers investors one of the lowest debt-to-equity ratios in the sector thanks to its strong operating cash flow. To add, Yamana and Goldcorp both offer yields of 2% and are valued at just 10 and nine times forward earnings estimates.

  • [By Doug Ehrman]

    In the following video below, Fool.com contributor Doug Ehrman discusses the impact that expansionary monetary policy has had on miners such as Barrick Gold (NYSE: ABX  ) and Goldcorp (NYSE: GG  ) , and he looks at what the end of this era could mean for those companies.

  • [By Jonathan Yates]

    It will also be bullish for publicly traded companies in each sector, ranging from prominent blue chips like Exxon Mobil (NYSE: XOM) and Goldcorp (NYSE: GG) to promising small caps like Octagon 88 (OTC: OCTX) and Wishbone Gold PLC (OTC: WISHY).

5 Best Gold Stocks To Own Right Now: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Holly LaFon]

    He increased his holdings in gold companies in the fourth quarter accordingly. Gold stocks he found attractive in the fourth quarter are: Novagold Resources (NG), Randgold Resources (GOLD), Iamgold Corp. (IAG), Barrick Gold Corp. (ABX), Agnico Eagle (AEM) and International Tower Hill (THM).

  • [By Sally Jones]

    The once-troubled Agnico Eagle Mines Ltd. (AEM) is hitting a new record for gold production in the third quarter at 315,828 ounces, according to the Financial Post, and the company�� executives are buying. Here�� a third quarter company update and a look at billionaire stakeholders of AEM, a stock that spiked 23.66% over the past five days.

  • [By Charley Blaine]

    Gold mining stocks are pretty much a disaster. Newmont Mining (NYSE: NEM) is down 50 percent in 2013. Agnico Eagle Mines (NYSE: AEM) is off 51 percent. The NYSE Arca Gold BUGS Index is down 56 percent.

  • [By vaninaegea]

    In august, the Association of Equipment Manufacturers (AEM) published the mid-year review for the agricultural sector. Their findings point to a slowdown for the industry, highlighting a 9.5% decline on exports through the first half of 2013. Also, late soybean planting in the USA is expected to compound the industry�� slowdown. So, what are the prospects for AGCO (AGCO), CNH Global (CNH), and Deere & Co. (DE) under such conditions?

5 Best Gold Stocks To Own Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Doug Ehrman]

    It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD  ) and iShares Silver Trust (NYSEMKT: SLV  ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG  ) and Barrick Gold (NYSE: ABX  ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW  ) .

  • [By Doug Ehrman]

    In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver (NASDAQ: PAAS  ) , for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic (NYSE: AG  ) reported strong revenue growth and a small bump in profits, sending the stock higher since the announcement. First Majestic reported increased cash costs and tightening margins, largely driven by lower silver prices. Each of these companies faces pressure from increasing production costs and environmental concerns.

  • [By Doug Ehrman]

    Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV  ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW  ) struggles as well.

Thursday, January 9, 2014

Hot Canadian Companies To Own For 2014

With shares of Microsoft (NASDAQ:MSFT) trading around $31, is MSFT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Microsoft is engaged in developing, licensing, and supporting a wide range of software products and services. The company also designs and sells hardware, and delivers online advertising to customers. It operates in five segments: Windows and Windows Live, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices. As a mature company, Microsoft is also offering a stable dividend, which is currently yielding around 2.92 percent annually.

Microsoft agreed to purchase Nokia�� (NYSE:NOK) mobile phone unit, patents, and mapping services for a total of $7.2 billion. Nokia�� phones already use Microsoft�� Windows Phone software. The company�� Canadian head, Stephen Elop, will lead Microsoft�� mobile devices unit, and his name has even been tossed around as a possible replacement for retiring Microsoft CEO Steven Ballmer. Nokia used to dominate the mobile phone market, but has since fallen far behind rivals Apple (NASDAQ:AAPL) and Samsung in the highly competitive market.

Hot Canadian Companies To Own For 2014: SAP AG(SAP)

SAP AG provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. The company?s products includes SAP Business Suite software, which supports large organizations in their core business operations, such as supplier relationship, production, warehouse management, sales, administration, and customer relationship; SAP Business All-in-One, a business management software that assists midsize companies in managing various business functions, including financials, human resources, procurement, inventory, manufacturing, logistics, product development, sales, and marketing; SAP Business One, a business management application for small businesses; and SAP Business ByDesign, an on-demand solution for integrated business management applications. Its products also comprises SAP BusinessObjects Edge business intelligence and enterprise performance management solutions; Xcelsius, a data visualization software; Crystal Reports, which helps users design interactive reports; Sybase IQ, an optimized analytics server designed to deliver results for business intelligence, analytics, data warehousing, and reporting solutions; SAP solutions for sustainability; and SAP NetWeaver technology platform, which integrates information and business processes across various technologies and organizational structures. In addition, the company offers industry and solution-focused, business transformation, information technology transformation, custom development, and support services; and program, project management, quality assurance, and education and certification services. It sells its products through its subsidiaries and resellers. SAP AG has a strategic relationship with Cap Gemini S.A. to develop and deploy enterprise mobility solutions. The company was formerly known as SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung. SAP AG was founded in 1972 and is headquartered in Walldorf , Germany.

Advisors' Opinion:
  • [By Tim Brugger]

    The good news for SAP (NYSE: SAP  ) and Oracle (NYSE: ORCL  ) , Nos. 1 and 2 on Gartner's list with $2.9 billion and $1.95 billion in revenues, respectively, each retained their top positions. The downside, and especially troubling for Oracle CEO Larry Ellison considering his desire to grow cloud and related revenues, is that Oracle saw a mere 2% improvement from the prior year and 2012 BI sales were essentially flat for SAP.

  • [By Vanin Aegea]

    Innovation and friendliness are two stewards that software developers value highly in order to retain and attract customers. Applications that are easy to navigate and to use have proved to be highly valued by users. Some companies were able to meet the challenge and deliver tailor made products, among them are: Sap Aktiengesellschaft (SAP) and Adobe Systems (ADBE). But, does catering to customer preferences generate profits?

Hot Canadian Companies To Own For 2014: Sensata Technologies Holding N.V.(ST)

Sensata Technologies Holding N.V., through its subsidiaries, develops, manufactures, and sells sensors and controls primarily in the Americas, the Asia Pacific, and Europe. It operates in two segments, Sensors and Controls. The Sensors segment offers pressure sensors, force sensors, temperature sensors, speed sensors, position sensors, motor protectors, and thermal and magnetic-hydraulic circuit breakers and switches. Its sensors are used in various applications, such as automotive air-conditioning, braking, transmission, air bag, heavy vehicle off-road, industrial, aerospace, defense, and data/telecom applications, as well as heating, ventilation, and air-conditioning (HVAC) applications. The Controls segment provides bimetal electromechanical controls, thermal and magnetic-hydraulic circuit breakers, power inverters, and interconnection products. This segment also offers application-specific products, including motor and compressor protectors, circuit breakers, semicondu ctor burn-in test sockets, electrical HVAC controls, power inverters, precision switches, and thermostats. Its products are used in heating and air-conditioning systems, refrigerators, aircraft, automobiles, and light industrial system applications in industrial, aerospace, military, commercial, and residential markets. The company offers its products primarily under the Sensata, Klixon, Airpax, and Dimensions brand names. It serves original equipment manufacturers and suppliers in the automotive, industrial, and commercial end-markets; and industrial and commercial manufacturers and suppliers in the climate control, appliance, semiconductor, datacomm, telecommunications, and aerospace industries, as well as motor and compressor suppliers. The company was founded in 1916 and is based in Almelo, the Netherlands. Sensata Technologies Holding N.V. is a subsidiary of Sensata Investment Company S.C.A.

Advisors' Opinion:
  • [By Seth Jayson]

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

Best Clean Energy Companies To Invest In Right Now: Enerplus Corporation (ERF)

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in United States and Canada. As of December 31, 2011, it had 322 MMBOE of proved plus probable reserves. The company also held a portfolio of approximately 380,000 net acres of land comprised of 75,000 net acres at Fort Berthold targeting the Bakken and Three Forks; 65,000 net acres in the Duvernay; 33,000 net acres in the Montney; 67,000 net acres in the Stacked Mannville; 30,000 net acres in the Cardium and other emerging oil plays in Canada; and 110,000 net acres in the Marcellus. In addition, it had 120 gross producing wells. The company was founded in 1986 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Rich Duprey]

    Canadian oil and gas producer Enerplus (NYSE: ERF  ) announced today its August monthly dividend of $0.09 Canadian per share, which is equivalent to $0.09 U.S. per share at an exchange rate of 0.9674.

  • [By Dan Caplinger]

    Tomorrow, Enerplus (NYSE: ERF  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings 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.

Hot Canadian Companies To Own For 2014: Canadian National Railway Company(CNI)

Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business in North America. It provides transportation for various goods, including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, and intermodal and automotive products. The company operates a network of approximately 20,600 route miles of track that spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico. It serves the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), as well as metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis, and Jackson (Mississippi), with connections to various points in North America. The company was founded in 1922 and is headquartered in Montreal, Canada.

Advisors' Opinion:
  • [By Rich Smith]

    On Wednesday, Westport announced it has begun producing liquefied natural gas (LNG) "tenders" for use by Canadian National Railway (NYSE: CNI  ) . A tender�is a train car whose primary purpose is carrying fuel to supply the train's locomotive engine. Westport plans to deliver its first such tender to CNR in Q4 of this year, with three more tenders to follow subsequently.

  • [By Sean Williams]

    Canadian National Railway (NYSE: CNI  )
    Once more the theme is an earnings-driven event. Canadian National, known as CN, is a railroad company to the north that delivered net income of $541 million in the first quarter compared to the $755 million it reported in profits in the year-ago period. Despite tougher weather conditions being one of the primary factors for the volume shortfall, investors still came down on Canadian National.

  • [By Dan Caplinger]

    But CSX has a couple of options to pursue to rebound. One way would be to take advantage of growing export demand for coal, as natural-gas prices in other areas of the world are far less competitive than they are within the U.S., and low shipping costs make global coal transport economically viable. The other alternative is to borrow a page from other railroads and seek to transport cheap domestic oil by rail from hard-to-reach areas to existing refineries, especially on the East Coast. Union Pacific (NYSE: UNP  ) and Canadian National (NYSE: CNI  ) have found high demand for their services in the oil-producing areas of Alberta and the Bakken, and although CSX's home territory is better served by existing pipelines, it could nevertheless have an opportunity to boost demand by meeting other needs.

  • [By Sean Williams]

    Notable railroads that could be hit by a slowdown in oil transports because of a declining spread include Canadian National Railway (NYSE: CNI  ) , Union Pacific (NYSE: UNP  ) , and Berkshire Hathaway�subsidiary BNSF.

Hot Canadian Companies To Own For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Tuesday, January 7, 2014

Is It Time to Panic About Time Warner Cable?

Time Warner Cable (NYSE: TWC  )  doesn't have the best reputation among its customers, but all that matters to investors is whether or not the company can make shareholders money through stock appreciation and dividend payments. Let's take a look at the Time Warner Cable situation and compare the company's potential to that of Comcast (NASDAQ: CMCSA  ) and Charter Communications (NASDAQ: CHTR  ) .

Good news, bad news
The good news is that Time Warner Cable's third-quarter revenue increased 2.9% year over year with residential revenue improving 0.7% and business services revenue improving 20.5%. Residential average revenue per unit also increased 2% to $105. However, Time Warner Cable saw a decline of 117,000 in total customer relationships, which stemmed primarily from the company's long-running dispute with CBS.

On the residential side, video revenue declined 4.5% and voice revenue slid 6%, but high-speed data revenue jumped 14.2%. Time Warner Cable also launched IntelligentHome in the third quarter. This allows you to use your smartphone, laptop, or touchscreen to keep tabs on your system anytime, anywhere. At the end of the quarter there were 32,000 customers, and that number is likely to grow.

Customer service is a huge drawback for Time Warner Cable. Earlier this year, Business Insider ran a story on "The 15 Most Frustrating Companies in America." Time Warner Cable ranked No. 2, with poor call center service as the primary culprit. Another issue was customers paying higher fees despite dissatisfying television service.

I'm a Time Warner Cable customer, and my experience has been hit or miss. On the positive side, it's better than DSL. On the negative side, the Internet/phone connections go out for a few minutes about five to seven times per week, customer service representatives have "accidentally" hung up on me while transferring me to another department on numerous occasions, and one service technician opted to use the commode during his visit, leaving behind an unpleasant odor. While I'm just one customer, these experiences in combination with the company's atrocious reputation for customer service don't lead to much optimism. Perhaps Comcast is a better-run operation.

Comcast: Good momentum and diversification
Comcast operates in many areas, including cable, broadcast television, filmed entertainment, and theme parks. Year to date, Comcast's revenue has increased 2.4% year over year. If you exclude the Super Bowl and the Olympics, revenue increased a more impressive 5.6%. Over the same time frame, operating cash flow improved 7.49%. If you exclude the Olympics and pension costs, operating cash flow grew at an 8.8% clip. Free cash flow jumped 15.5%. Other impressive numbers include 11.6% growth in operating income and a 7% increase in EPS. If you exclude gains on asset sales, then EPS grew 29.3%.

We'll get back to Comcast in a moment, but first this short break to bring you a quick overview on Charter Communications.

Charter Communications: Potential at a steep price
In the third quarter, Charter Communications saw revenue increase 5.4% year over year to $2.1 billion on a pro forma basis, primarily due to growth in video, Internet, and commercial revenues. If you include the Bresnan acquisition, revenue jumped 12.7%. Total residential customers improved 46,000, compared to the addition of 26,000 customers in the year-ago quarter. Residential primary units increased 100,000, compared to the addition of 60,000 units in the year-ago quarter. Residential revenue increased 5.1%, compared to a 1.6% increase in the year-ago quarter. Commercial revenue improved 20.4% on a pro forma basis, thanks to higher sales to small to medium-size businesses and carrier customers.

President and CEO Tom Rutledge recently stated that the company has greatly improved in competitiveness and value, which is driving growth in residential and commercial businesses. For fiscal year 2014, Charter Communications expects to grow market share and cash flow by expanding all-digital programming and offering new products.

Hmm... sounds interesting. Let's take a look at some fundamental comparisons prior to jumping on the Charter Communications bandwagon.

Key metric comparisons
Up until this point, it would seem as though Comcast or Charter Communications is likely to offer the most investment potential, but let's take a look at some numbers prior to forming that conclusion:

Company 

Forward P/E

Profit Margin

Dividend Yield

Debt-to-Equity Ratio

Time Warner Cable

16

8.75%

2.10%

3.76

Comcast

17

10.09%

1.60%

0.91

Charter Communications

57

(3.45%)

N/A

210.00

Source: Company financial statements.

Time Warner Cable offers a generous yield, it's trading at a fair valuation, and it's decent at turning revenue into profits. On the other hand, debt management is poor. Comcast offers similar numbers, but with much better debt management. As far as Charter Communications goes, well... let's see. It sports a negative profit margin, it doesn't offer any yield, it's atrocious at managing debt, and it trades at an extreme premium. These types of companies do offer tremendous potential because a sustainable turnaround would lead to significant stock appreciation. However, these types of turnarounds are rare, and this is a gamble. Foolish investors, aka savvy investors, don't gamble. 

The bottom line
Time Warner Cable has lost customers and its poor customer-service reputation is an ever-present burden. You don't need to panic about Time Warner Cable, but it's not likely to be the best long-term investment in this group. Charter Communications is fundamentally unsound. In my opinion, Comcast is the best company in this group by a wide margin. It's growing, it's diversified, and it's fundamentally sound. 

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Moneygram: Stiff Competition + Margin Pressures = Big Drop

It’s not easy to operate in a business where competition is fierce and pricing power is nonexistent. Just ask Moneygram International (MGI), whose shares are in freefall this morning after it was downgraded by Piper Jaffray.

Getty Images

Why did Piper Jaffray’s Michael Grondahl and Dain Haukos downgrade Moneygram to Neutral from Overweight? Let them count the ways:

We are downgrading [Moneygram] as we believe it will struggle to perform in an increasingly competitive marketplace where price cuts and compliance requirements could suppress revenues and increase expenses. As such, margins remain under pressure. Recall, [Moneygram's] biggest competitor, Western Union (WU), has cut its prices. Next, during the September quarter [Moneygram] saw its commission expense increase [1.7 percentage points year-over-year] to 47% of total revenues as it had to pay more to retain/acquire agents. Additionally, [Moneygram's] compensation and benefits expense increased by 20% (~$11.4M) Y/Y partially as a result of increased headcount required to meet increased regulatory requirements. Lastly, we worry about a potential [Wal-Mart (WMT)] white label offering. We note [Wal-Mart] represented 27%
of MGI’s September quarter revenues.

Ouch.

Shares of Moneygram have gained 5.5% to $18.65 today at 1:54 p.m., while Western Union has gained 2.6% to $17.51. Wal-Mart has risen 0.4% to $78.52.

Monday, January 6, 2014

Top Warren Buffett Stocks To Own For 2014

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today, let's look at investing giant Warren Buffett. His Berkshire Hathaway (NYSE: BRK-B  ) company has increased its per-share book value by an annual average of 19.7%�between 1965 and 2012, leaving the S&P 500 in the dust with its 9.4%. Clearly, the guy knows a thing or two about investing. With that in mind, let's take a look at his company's recent investment activity, noting that he heads a large corporation, and not a hedge fund or mutual fund. While he owns many businesses in their entirety, from Dairy Queen to GEICO to Fruit of the Loom, he also has tens of billions of dollars invested in the stock of other companies.

Top Warren Buffett Stocks To Own For 2014: First Liberty Power Corp (FLPC)

First Liberty Power Corp. (First Liberty), incorporated on March 28, 2007, is an exploration-stage company engaged in the exploration of mineral properties. The Company is primarily engaged in the business of the acquisition, exploration, development, mining, and production of domestic strategic energy and mineral properties, with emphasis on lithium, vanadium and uranium.

On May 31, 2012, the Company entered into a purchase agreement with GeoXplor Corp. Under this Lithium Agreement, the Company has been granted an exclusive four year exploration license in regards to the two mineral properties described in the Lithium Agreement. One property encompasses 58 placer claims (9280 acres) located in Lida Valley, Esmeralda County, Nevada for Lithium and Lithium Carbonate exploration (the Lida Valley Property), and the other encompasses 70 placer claims (11,200 acres) located in Smokey Valley, Esmeralda County, Nevada for Lithium and Lithium Carbonate exploration (the Smokey Valley Property).

The Uravan Mineral claims are located within the Colorado Plateau near the Utah-Colorado border. The uranium-vanadium deposits in the La Sal quadrangle occur in the uppermost sandstone of the Salt Wash Member of the Morrison Formation. The Lida Valley Property is located in South Western Nevada, approximately 150 miles north of Las Vegas and within 15 miles of the Montezuma peak.

Top Warren Buffett Stocks To Own For 2014: Credito Emiliano(EMBI.MI)

Credito Emiliano SpA, together with its subsidiaries, provides regional banking services primarily in Italy. It provides retail banking, corporate banking, wealth management, financing, and investment banking services. The company provides current and savings accounts, certificate of deposits, repurchase agreements, term deposits, demand deposits, loans, personal loans, credit cards, leasing, and factoring services. In addition, it offers domestic clearing services for payments and collections, and insurance services, as well as provides electronic documental storage services and document management services. The company is headquartered in Reggio Emilia, Italy. Credito Emiliano SpA operates as a subsidiary of Credito Emiliano Holding SpA.

Top Companies To Watch For 2014: Resolve Ventures Inc (RSV.V)

Resolve Ventures Inc. engages in the acquisition, exploration, and development of resource properties primarily in Canada. The company primarily explores for nickel, copper, and cobalt. It has interests in the Raglan Property consisting of 85 claims covering an area of approximately 8,695 acres in the Ungava area of northern Quebec; and the Klu Property located in southwestern Yukon. The company is based in Vancouver, Canada.

Top Warren Buffett Stocks To Own For 2014: Transgaming Inc (TNG.V)

TransGaming Inc. engages in the development, sale, and licensing of software portability products that facilitate the deployment of games across various platforms primarily in Canada, the United States, and Europe. The company�s products include Cider, which enables PC games for Apple�s Mac platform; SwiftShader, a 3D software renderer that supports multi-core rendering for developers and systems providers; GameTree Mac, a digital distribution platform for Mac games; and GameTree TV, an interactive entertainment solution for the distribution of digital content to Smart TV. It also provides post-contract customer support services; and online subscription and professional services for the development of video games, as well as sells online video games. The company was founded in 2000 and is headquartered in Toronto, Canada.

Top Warren Buffett Stocks To Own For 2014: Chemtura Corp. (CHMT)

Chemtura Corporation, together with its subsidiaries, engages in the manufacture and sale of specialty chemical solutions and consumer products worldwide. The company's Consumer Products segment provides recreational water purification products, such as sanitizers, algaecides, biocides, oxidizers, pH balancers, mineral balancers, and other specialty chemicals and accessories; and specialty and multi-purpose cleaners. Its Industrial Performance Products segment products include petroleum additives that offer detergency, friction modification, and corrosion protection in automotive lubricants, greases, refrigeration, and turbine lubricants; castable urethane prepolymers, which provide abrasion resistance and durability; and polyurethane dispersions and urethane prepolymers used in various coatings. This segment also offers plastic antioxidants additives that inhibit the degradation of polymers caused by air and heat during manufacture and use; UV stabilizers additives for pr otecting materials against ultra-violet light; and rubber additives products, which protect elastomers and rubber compounds. The company's Chemtura AgroSolutions segment produces seed treatments, fungicides, miticides, insecticides, growth regulants, and herbicides. Its Industrial Engineered Products segment offers flame retardants, bromine and bromine intermediates, catalyst components, fumigants, and surface treatments and completion fluids for oil and gas extraction. The company has a strategic alliance with Isagro S.p.A. It serves various industries, such as agriculture, automotive, building and construction, electronics, lubricants, packaging, plastics, pool and spa chemicals, and transportation. Chemtura Corporation was founded in 1900 and is based in Middlebury, Connecticut.

Bad News for Boeing: The Dreamliner's Battery Is a Nightmare

Boeing's (NYSE: BA  ) 787 Dreamliner just returned to the skies after a four-month grounding, but already there's trouble. The director of the Airline Pilots' Association of Japan, Toshikazu Nagasawa, said that pilots weren't satisfied with the changes Boeing made to it's lithium-ion battery and are concerned that they won't receive appropriate in-flight warnings if there's an issue. Some scientists and battery experts are also expressing concern about the safety of Boeing's battery.

Officials at All Nippon Airways and Japan Airlines said they're satisfied with Boeing's changes and have resumed flights, but investors may have cause for concern knowing that that the pilots -- the people whose lives depend on the safety of Boeing's battery -- aren't satisfied. Here's what you need to know. 

Source: H. Michael Miley, Wikimedia Commons. 

Are the issues in the past?
In March, Japanese pilots raised 30 safety concerns about the Dreamliner. One of their major concerns was that they didn't think Boeing had provided enough proof that the 787 would be safe to fly if the batteries failed. They also expressed concern that the warning indicator for a battery malfunction didn't indicate the severity of the problem.

More recently, the pilots' group expressed concern that Boeing didn't figure out what caused the problems with the batteries in the first place and is now downplaying the battery's necessity for flight. Consequently, the group challenged Boeing to conduct flight tests without the lithium-ion battery to prove its safety.  

Boeing's vice president and the chief project engineer for the 787, Mike Sinnett, addressed these issues by saying the Dreamliner has backup systems that allow it to continue flying if the batteries fail, and that the warning indicators were ranked by severity, but these assurances have done little to quell the pilots' concerns.

Scientists add fuel to the fire
Battery experts and scientists have also publicly questioned the safety of Boeing's battery. Elton Cairns, a Lawrence Berkeley National Laboratory professor and battery technology expert, said: "I'm shocked that Boeing was willing to stake its reputation on these batteries. Even with the modifications, the individual cells of the battery are crammed too closely together and feature an internal chemistry that's far too volatile."  

More pointedly, Michel Armand, a professor of chemistry at the University of Picardie and a research director at the French government's Centre National de la Recherche Scientifique, told Barron's: "Using these batteries in planes makes no sense, with all the lives potentially at stake. These batteries are unpredictable and prone to thermal runaway and fires."  

Fires, fires, everywhere
Boeing's 787 Dreamliner isn't alone when it comes to problems with its lithium-ion battery. In 2006, Meggitt (LSE: MGGT  ) subsidiary Securaplane Technologies -- which incidentally builds the charger for Boeing's battery -- suffered millions in damages when a lithium-ion battery exploded during testing and burned an Arizona facility to the ground. 

Further, in both 2010 and 2011, 747 cargo planes carrying pallets of lithium-ion batteries crashed because of a fire, killing the crew.

In neither case could authorities determine a cause for the fire.

In March of this year, Mitsubishi Motors reported two incidents involving a lithium-ion battery. These batteries were manufactured by Mitsubishi's venture with GS Yuasa, the maker of Boeing's lithium-ion battery, although the batteries themselves are not the same. Mitsubishi reported that the problem was caused by contaminants getting into the battery cells during the screening process. 

Fires ahead for Boeing?
Separately, these incidents are scary but manageable. But when you combine these accidents and factor in the pilots' concerns, you get the feeling that lithium-ion batteries are anything but safe. Underscoring this point is the decision by EADS' Airbus to pull the plug on putting lithium-ion batteries in its A350 plane, citing "immaturity of lithium-ion-battery technology." If the Dreamliner's battery really is fixed, this plane could prove to be quite profitable for Boeing. However, given all the issues it's had in the past, and the uncertainty of the battery, investors would do well to keep an eye on the Dreamliner -- especially considering Boeing's stock has risen and fallen right along with the Dreamliner.

Boeing operates as a major player in a multitrillion-dollar market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key, must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.

Sunday, January 5, 2014

Signet Jewelers Misses on Revenues but Beats on EPS

Signet Jewelers (NYSE: SIG  ) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Signet Jewelers missed estimates on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.

Gross margins dropped, operating margins were steady, net margins were steady.

Revenue details
Signet Jewelers chalked up revenue of $993.6 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $1.02 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $900.0 million.

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

EPS details
EPS came in at $1.13. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.11 per share. GAAP EPS of $1.13 for Q1 were 18% higher than the prior-year quarter's $0.96 per share.

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

Margin details
For the quarter, gross margin was 38.5%, 80 basis points worse than the prior-year quarter. Operating margin was 14.4%, much about the same as the prior-year quarter. Net margin was 9.2%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $893.6 million. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $4.19 billion. The average EPS estimate is $4.83.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 73 members out of 95 rating the stock outperform, and 22 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Signet Jewelers a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Signet Jewelers is outperform, with an average price target of $72.63.

Is Signet Jewelers the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

Add Signet Jewelers to My Watchlist.

1 Simple Step to Dramatically Improve Your Retirement

The Employee Benefit Research Institute recently reported that one of the best things you can do to improve your chances at a successful retirement is to use a free online retirement calculator. There's no cost involved, and it takes nothing more than a little bit of your time invested, but the result is a dramatically improved chance that you'll wind up with enough to comfortably retire.

The numbers were astounding. Those who used an online retirement calculator were more likely than even those who used professional financial planners to wind up with a sufficiently funded retirement. To be fair to the planners, though, the EBRI research indicated that those who used planners still did dramatically better than those who merely guessed at what they'd need to retire.

How important is it?
The chart below from EBRI's research shows how much better prepared those who used online calculators were versus the general population it studied. Across all income ranges and family statuses, the act of using an online calculator looked like a tremendous help for anyone looking to retire.

Source: The Employee Benefit Research Institute.

Of course, in reality, it takes more than just putting your financial information into an online calculator to successfully retire. You need to build and execute a plan around the results it shares with you in order to wind up with the resources that'll transform mere retirement into your golden years. But having your costs, nest egg needs, and savings and returns targets spelled out in front of you goes a long way toward providing you with the motivation -- and direction -- you may need to get moving.

Key elements to any successful retirement plan
To have a solid plan, you'll need to have a handle on three key factors and some key building blocks that make up each of those factors:

Your expenses Base living expenses (housing, utilities, food, clothing, transportation) Incremental costs of aging (like health care and household help) Travel, entertainment, and other like-to-haves Your income Social Security Pension Retirement job Money from your own savings/investments Your time and risk profile Years to retirement Years in retirement Trade-offs you're willing to accept between potential returns and potential losses

With those factors in hand, a good retirement calculator can do the math to help you understand about how much you'll need to put away each paycheck to reach your goals. From there, it's largely a matter of time, consistent execution, and course corrections along the way, as reality never winds up exactly the way we planned it to be.

The risks involved in investing
Speaking of that risk profile, it's important to remember that there really is no such thing as a risk-free investment. Every potential investment has risks associated with it; even cash is exposed to inflation risk and theft risk. Here are a few things to consider about the risks associated with other asset classes:

Domestic stocks: The S&P Depository Receipt (NYSEMKT: SPY  ) will let you buy a basket of 500 of the largest U.S.-based company stocks, is pretty well diversified, and has a great long-term track record. Still, there's absolutely no guarantee that the index will go up every year, and as the recent lost decade reminds us, stocks can go a long time before fully recovering.  Foreign stocks: Vanguard's Total International Stock Index (NASDAQ: VXUS  ) ETF will let you buy a diversified basket of stocks headquartered outside the U.S. While there may be higher potential growth outside the U.S., investing internationally adds currency and political risk on top of the risks associated with domestic stock investing.  Traditional Government bonds: The iShares Barclays 20 Year Treasury Bond (NYSEMKT: TLT  ) ETF will let you buy long-term Treasury bonds, which carry a government guarantee of repayment. Still, with interest rates at near all-time lows, long-term bonds carry significant duration risk and could lose significant value as a result. These days, shorter-term bonds generally don't pay enough to beat inflation, much less cover inflation and taxes and provide real returns.  Inflation-protected bonds: The iShares Barclays TIPS Bond (NYSEMKT: TIP  ) ETF will let you buy bonds with a government repayment guarantee that also step ups due to inflation. But the rates on new inflation-protected bonds are currently negative, which means those bonds provide little more than a guarantee that you'll lose money in real terms over time.  Real estate: The SPDR Dow Jones Real Estate (NYSEMKT: RWR  ) ETF will let you buy a broad swath of Real Estate Investment Trusts. And while it's generally true that they're not making any more land, recall that it was a real estate crash that precipitated the financial meltdown that knocked down the global economy just a few years back.

Still -- investing is your best long-term bet
In spite of those very real risks, investing for your retirement over the course of your career still beats the daylights out of not investing at all. And by regularly consulting a retirement calculator to make adjustments while you work through your plan to get from here to retirement, you can best position yourself for long-term success. As the EBRI's report shows, that combination can work wonders.

One-stop shop for diversified investments
To learn more about a few ETFs that can provide the basis of a solid long-run retirement plan, check out The Motley Fool's special free report "3 ETFs Set to Soar." Just click here to access it now.

We Can’t Stop: Dow Industrials Gain 200 Points as Debt Deal Nears

Miley Cyrus has it right–it’s our party and we can do what we want.

Kevin Mazur/Getty Images for Clear Channel

And what do we want? We want stocks to go up, up, up because a deal to raise the debt ceiling might be reached, never mind that the government shutdown looks set to drag on.

The Dow Jones Industrials have gained 243.01 points, or 1.6%, to 15,045.61, while the S&P 500 has climbed 1.7% to 1,684.82.

JP Morgan’s David Hensley and team explain what’s going on:

There has been some progress toward raising the US debt ceiling on a short-term basis (a number of weeks) to allow the President and Congressional leaders to discuss a range of budget and policy issues. The partial shutdown might remain in effect, but the more dangerous issue of default would be averted temporarily.

Citigroup’s Robert DiClemente and team worry about the long-term damage done by the combination of big debt and bad politics:

If the current trend that points to more intense and paralyzing political debates becomes perceived by global investors and rating agencies as a "new normal" for the US, then the consequences of hitting the debt ceiling may become dire. Instead of viewing each missed or late payment as a (forgettable) extraordinary event (as in 1979), a political risk premium will likely be embedded into the funding costs of US Treasuries. Such a premium would represent a risk of nonpayment associated with a dysfunctional government. We would enter an era where the US government is willing to hold payment of financial obligations hostage to achieving political ends.

Today, however, investors are having none of it. As of 1:42 p.m., just three Dow components are in the red, and even the defense contractors are gaining, despite the fact that the government shutdown doesn’t look to be ending. Boeing (BA), for instance has gained 2.9% to $117.74, and United Technologies (UTX) has advanced 2.3% to $105.16. And if I’ve counted correctly, just 17 S&P-500 stocks are now in negative territory–led higher by companies such as Best Buy (BBY), which has gained 7.3% to $38.90 after Stifel Nicolaus said more people expecting to shop in its stores, and Invesco (IVZ), which has risen 4.9% to $33.75 after saying assets-under-management grew. Even Tower Group International (TWGP), the seriously troubled insurer, is up p 9.9% at $4.10.

Crack open the champagne–it’s a party today.

Why Vitamin Shoppe Shares Fell

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 the Vitamin Shoppe (NYSE: VSI  ) were looking under the weather today, falling as much as 10% after a disappointing earnings report.

So what: The health-supplement chain actually beat earnings estimates by $0.03 with a per-share profit of $0.72 as revenue grew 12.5% to $279.1 million, slightly below expectations. Comparable sales were up 4.5% in the quarter. The retail chain also added 44 stores in the period, 31 via acquisition, bringing the total count to 621. Investors, however, seemed to be disappointed with the revenue miss and same-store sales expectations of low-to-mid-single digits for the year.

Now what: This was the second quarter in a row in which Vitamin Shoppe shares tumbled on its earnings report as the market seems to be saying that the stock is overvalued. Shares had climbed as high as $65 earlier in the year, but now they seem to be fairly valued at a price almost a third down from its peak. I would have avoided Vitamin Shoppe before but with an aggressive store expansion plan, and a modest same-store sales increase expected, shares look reasonably priced today.

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