Flush Investors Take a Shine to Rare Coins

Getty Images Given the record gains Wall Street posted in 2013, you might be tempted to think the financial dog days are behind us, at least for now. But many wealthy investors continue to pour more of their fortunes into nonfinancial "treasure assets," such as collectible rare coins, in an attempt to diversify their portfolios. "In the environment that exists right now, where the Dow is very high ... most of the people buying rare coins ... are people who are taking profits as a result of a semibull market ... and want to reinvest some of that money into nondollar-based-type investments," said Terry Hanlon, president of the Professional Numismatists Guild. While the wealthy have always acquired art, antiques and other such valuables, experts believe that many of today's treasure seekers figure they're not only getting a beautiful object with their purchase but a savvy investment as well. "We've been seeing many new buyers entering the rare-coin market in recent years," said Greg Rohan, president of Heritage Auctions, which claims to be the world's largest collectibles auctioneer. "Many have collected fine art and invested in precious metals but now also are diversifying their portfolios with rare coins because they can appreciate their beauty and history, while the coins appreciate in value over the long term." In 2012 the world's millionaires devoted an average of 9.6 percent of their fortunes to nonfinancial assets, such as collectibles, according to a survey by Barclays Wealth and Investment Management and Ledbury Research. The poll, of 2,000 people with investable assets of $1.5 million or more, also found that the proportion of wealthy individuals who own treasure assets has increased over the past five years. Coin collections, specifically, are up about 2 percent. Drawing a Pretty Penny But what really motivates investors to buy collectibles? Is it perceived financial benefits, emotional impulse or, perhaps, both? The answer isn't clear.

Markets in fashionable alternatives such as art [and] coins ... are all inherently speculative investments. They produce no income [and] have no future productive capacity.

"All types of financial decisions are inescapably tied to our emotions, and behavioral pitfalls [such as] fear, greed and a host of cognitive biases plague portfolios more than the markets themselves," said certified financial planner Milo Benningfield, founding principal of Benningfield Financial Advisors. "These pitfalls are magnified exponentially when contemplating art, coins and other collectibles." Emotional investment or not, collectible rare coins are drawing a pretty penny. About a decade ago, a six- or seven-figure price tag was an eyebrow-raiser. Today, not so much. "The 'Mona Lisas' and Gauguins of numismatics are just exploding in price, as records are being broken virtually every time they come up for sale at auction," said Jeffrey Bernberg, past president of the Professional Numismatists Guild, in a news release. In fact, rare coins soared 248 percent in value over the past 10 years, according to the Luxury Investments Index, found in the Knight Frank 2013 Wealth Report.

Fear-Driven Diversification "I think people are starting to decide that they want to start dipping their feet in the water again," said rare-coin dealer Ken Smaltz, who owns K. Smaltz Inc., a company that buys and sells rare coins and precious metals. Smaltz said he's seen an increase in his business within the last several months. "People are concerned about the economy," he said. "All of these fears cause investors to possibly seek to diversify their investment, and the type of investments they ... look for in this type of environment are usually precious metals and rare coins." The recent spike in sales of collectibles, such as rare coins, art and antiques, may reflect the increase in liquid assets the wealthy have to spend. "People [are] taking some of those profits derived from the equities market and the stock market and putting some of that into rare coins," said Hanlon of the Professional Numismatists Guild. There's no question the rich have gotten richer. The average net worth of the so-called "Forbes 400," magazine's annual listing of the richest Americans, is now a record $5 billion. That's $800 million more than a year ago. And a recent study compiled by Wealth-X, a firm that researches ultrahigh-net-worth individuals, found that the wealthiest people in each U.S. state were 19 percent richer last year than they were in 2012. That gives rich investors more disposable income to spend on luxury items such as collectibles. Like any investment, rare coins and other collectibles -- considered safer than stocks by some -- carry their own risks. In fact, some financial experts, including Daniel Egan, director of behavioral finance and investments at brokerage services firm Betterment, are reluctant to recommend buying treasure assets to their clients. "Markets in fashionable alternatives such as art [and] coins ... are all inherently speculative investments," said Egan. "They produce no income [and] have no future productive capacity. "The entire reason you 'invest' in them is that you may be able to sell them to someone else in the future for a higher price," he added. Rare coins can be bought or traded through auction houses and dealers or directly from individual owners. But the market is unregulated, making investors frequent targets of fraud. The office of New York State Attorney General Eric Schneiderman warns investors of this danger.

Potbelly Shares Sink as Sales Stink

Shares of Potbelly (PBPB) have dropped 4.7% to $21.33 in after-hours trading after the sandwich seller beat earnings forecasts but missed on revenue.

Potbelly said it earned 6 cents a shares, above analyst forecasts for 4 cents, on revenue of $74.8 million, below forecasts for $76 million. Potbelly also predicted that net income would grow at a 25% to 35% clip, while same-store sales at company-operated stores would grow in the low single digits.

CEO Aylwin Lewis had this to say in Potbelly’s earnings release:

We are pleased with our fourth quarter results. We delivered adjusted net income of $1.9 million or $0.06 per diluted share for the quarter, which represents roughly 35% growth, after eliminating the 53rd week impact from 2012 and neutralizing the tax rate difference. There is no question the external environment was disruptive during the quarter; however, we remained resilient and delivered top and bottom line growth in our comparable shops, opened thirteen new shops and managed overhead diligently to deliver solid returns for the quarter. Our long-term growth plan remains very much on track to achieve at least 10% unit growth and 20% plus EPS growth on an annual basis. We also remain excited about our growth trajectory and continue to deliver on our passion of being “The Best Place for Lunch.”

He may be pleased, but investors surely aren’t.

Gilead’s Sovaldi Still Looks Like a Blockbuster, Today No One Cares

As my colleague Brendan Conway has noted today, biotech stocks continue to fall today.

Reuters

Shares of Regeneron Pharmaceuticals (REGN) have fallen 4.4% to $323.62 at 3:23 p.m., while Biogen (BIIB) has dropped 4% to $327.04 and Gilead Sciences (GILD) has dipped 0.4% to $79.58. The iShares Nasdaq Biotechnology Index ETF (IBB), meanwhile, has dropped 0.9% to $258.85 and the SPDR S&P Biotech ETF (XBI) has declined 0.6% to $160.69. Suffice it to say, biotech investors don’t appear to be enjoying zero-G nearly as much as Kate Upton.

Amidst the selling, however, reports have emerged that Gilead’s sales of Sovaldi continue to look, well, impressive. Citigroup’s Yaron Werber explains:

Sovaldi is tracking at $943M for the first twelve weeks of launch and could post $8.76B in sales for 2014 and $1.59B for Q1:14 vs. Citi $516M and Consensus $903M, if Sovaldi scrips continue at same level as the recent week without any growth. We anticipate that Sovaldi could materially exceed our and consensus ests and believe that posting >$5B in total sales in FY14 is possible. In the twelfth week of launch, Sovaldi's weekly TRx were 6,398. While this is only the twelfth week, it is still much ahead of protease inhibitor Incivek' launch which had 1,928 TRx in the twelfth week of launch.

Still, after yesterday’s 3.6% drop, today’s small decline relative to the ETFs has to be considered progress.

Boeing Weakness a Buying Opportunity, Morgan Stanley Says

Boeing’s (BA) stock price soared in 2013, but it’s looked more like Icarus in 2014.

Bloomberg

Shares of Boeing have dropped 5.5% this year after returning 84% in 2013, thanks to an earnings report that painted a picture of a bright past but a murky future.

Morgan Stanley’s John Godyn and team believe Boeing is still worth buying. They explain why:

As most investors are aware, BA has a long history of issuing conservative guidance. On reporting 4Q13, BA's 2014 FCF guidance of ~$3.75B was down meaningfully vs. 2013's $6.1B, a big surprise for most. Mgmt cited several factors when expanding upon its FCF guidance, including favorable timing of receipts and expenditures in 2013, higher cash tax payments specifically related to improved 787 unit cost, fewer 767 deliveries and a one time bonus payment to the IAM that was negotiated in the recent contact extension – though didn't quantify each of these factors except the ~$300M IAM payment. While we recognize these factors as headwinds that were not explicitly in our 2014 forecast, we have trouble reconciling their likely magnitude with the magnitude of the miss. Therefore, we can only conclude there is a large degree of conservatism layered into mgmt's guidance – a theme supported by BA's historical performance…

…we believe valuation is attractive and that post 4Q13 EPS weakness is a buying opportunity.

Shares of Boeing have dropped 0.4% to $128.99 today at 12:56 p.m., while Airbus (EADSY) has gained 1.4% to $18.16 and Embraer (ERJ) has dropped 0.9% to $33.38.

3 Lessons From Tuesday's 228-Point Dow Jump

The Dow Jones Industrials (DJINDICES: ^DJI  ) celebrated the apparent lessening of tension along the Ukraine-Russia border Tuesday, climbing almost 228 points and more than regaining all of the ground the average lost Monday. Whipsaws in the Russian market were even more dramatic, as the Market Vectors Russia ETF (NYSEMKT: RSX  ) gained 4% today after falling almost 7% Monday. As confusing as wildly thrashing markets can be for investors, the Dow's moves over the past two days serve as valuable experience that every investor can learn from. Let's take a look at three lessons from the Dow so far this week.

Lesson 1: Fast-moving situations have landmines for investors.
The gut instinct that many investors had on Monday was to sell, as they perceived a permanent escalation in the threat level within the former Soviet Union that could have a lasting impact on the geopolitical situation both in the region and around the world. Yet almost as quickly as it had begun, Tuesday seemed to bring a resolution to the crisis in investors' eyes, leading to a huge push higher.

Yet neither assessment of the situation is accurate, and the best response to the crisis is somewhere in between the near-panic of Monday and the euphoria of Tuesday. If you sold out of your stocks when bad news hit and found yourself wanting to buy back at higher prices after the news got better, then you need to adjust your time horizon -- and take a serious look at your risk tolerance to make sure you're comfortable with the tiny declines we saw on Monday.

Lesson 2: Other news doesn't stop happening.
When a big news event hits, most news networks get tunnel-vision, focusing ever more closely on every issue related to the event. Yet while everyone is obsessed by a single topic, other important news is happening that can have an impact on your investments.

For instance, in the precious-metals markets today, gold prices gave back much of their gains from Monday, as investors reversed their flight to bullion when the geopolitical situation became more favorable. Yet not all precious metals fell. Palladium actually rose sharply, as ongoing labor tension in South Africa overwhelmed any downward pressure on prices for the platinum-group metal from easing of Russian aggression. You have to look beyond the headlines of the day to know what's affecting all of your investments.

Lesson 3: Don't panic!
When a crisis hits, it's tempting to act first and think later. But in investing, thinking first before you act is a key measure of success.

If you panic-sold on Monday, then today's positive signs on the Ukrainian front and the attendant soaring stock market probably have you regretting your decision. Yet there were good reasons for investors to sell some of their stocks yesterday -- if it was part of a risk-management strategy that was put in place well in advance.

On the other hand, if you were looking to buy stocks, Monday turned out to be a great time to do so. For instance, in the solar arena, JinkoSolar (NYSE: JKS  ) and Trina Solar (NYSE: TSL  ) plunged Monday on feras of the impact of geopolitical tension on the solar business, even though Jinko had reported reasonably strong results earlier that day. Yet Monday, Trina and Jinko soared, with Trina's positive report confirming the health of the solar industry.

By preparing for difficult situations before they happen and knowing how you'll respond, you take emotion out of the equation and make your investment philosophy much more rational.

Keep learning
Even if you've made mistakes this week, don't let it stop you from investing. Experience is a great teacher, but it only works if you're willing to learn.

Great stocks always win in the long run
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February Auto Sales: Hot and Not

Automakers reported February U.S. sales throughout the morning Monday, and there were winners and losers. Chrysler and Nissan posted solid year-over-year gains, while other makers put up lower numbers. The abnormally nasty winter weather did not get as much blame in February as it did in January.

Based on analysts’ estimates, February’s seasonally adjusted annual sales rate for 2014 stands at 15.6 million units. The consensus U.S. seasonally adjusted annual rate calls for 12.3 million domestic sales.

Chrysler’s year-over-year sales rose 11% to 154,866 units, the company’s best February sales level since 2007. Its Chrysler, Jeep, Ram Truck and Fiat brands all posted year-over-year gains in the February. The Jeep brand posted a sales gain of 47% in February and the Ram brand posted a gain of 28%. Chrysler projected a seasonally adjusted annual rate of sales from all manufacturers at 15.8 million units for 2014, up from last month’s projection of 15.6 million. The company ended the month with 85 days supply of inventory, up from 79 days of supply at the end of January.

Ford Motor Co.’s (NYSE: F) U.S. sales fell 6% year-over-year in February to 183,947 Ford and Lincoln vehicles, compared with February 2013 sales of 195,822. Sales were down for all types of vehicles, with car sales off 13.6%, utility vehicle sales off 4.4% and truck sales down 0.2%. Fleet sales fell 10% in February due to weather-related delays in fleet orders. Ford said that it expects the fleet sales to be made up in March.

U.S. sales for General Motors Co. (NYSE: GM) fell 1% year-over-year in February to 222,104 vehicles, compared with last February’s sales total of 224,314 vehicles. GM sales fell nearly 12% in January, so February’s drop is a big improvement. The company noted that its buyer incentives increased “slightly” in February. That is one way of looking at it, but there is another. Based on February sales, GM estimates that the full-year seasonally adjusted annual rate of U.S. sales for all carmakers will total 15.4 million light vehicles sold, up from a January rate of 15.3 million. GM estimates total U.S. sales from all carmakers in 2014 to total 16.0 million to 16.5 million units, the best year since 2007.

Sales at Toyota Motor Corp. (NYSE: TM) for the month totaled 159,284 units, down 4.3% compared with February 2013. A company executive said, “February auto sales emerged from a chill in the second half of the month, poising the industry for a strong March. For Toyota, strong truck sales were a highlight this month, with RAV4 and Highlander posting best-ever February results.”

Volkswagen sold 27,112 units in the United States in February. That is a drop of 13.8% year-over-year, on top of a 19% drop in January sales. Year-to-date VW sales are down 16.3%.

Nissan’s February sales rose 15.8%% to 115,360 units, a record for the month of February. Sales of the company’s redesigned Rogue crossover rose 72.6% to 17,197 units year-over-year.

Top Media Stocks To Watch For 2015

Groupon (NASDAQ: GRPN  ) announced earnings of $0.04 per share, which beat expectations by $0.02 and sent the shorts running for cover. The stock rocketed up 18% until people actually read the press release and found that Groupon is projecting a loss rather than a profit for the coming quarter. This is surprising, since revenue guidance was $50 million more than expected. So, the company is closing more business but making less money.

The biggest concern with investing in Groupon is the potential to be driven into a competitive environment so intense that there is no profit to be gained from new ventures. The way to get around this issue is to find profitable niches and gain scale. This is causing the company to use the capital generated from its profitable U.S. business to invest in ventures that are unprofitable today, potentially wasting shareholders' equity.

If at first you don't succeed, acquire again
Part of Groupon's international strategy is to grow through acquisition. In the fourth quarter, this led to an $85.5 million impairment of an investment in Life Media Limited, a Chinese venture that has now been fully written off. This was a minority interest, which Groupon didn't fully have control over. But if the company is using acquisitions as a strategy for growth, should this be written off? Not every acquisition or joint venture will work out. Why shouldn't investors expect that some percentage of investments will be written off in the future? This quarter, Groupon is consolidating Ticket Monster and accelerating its marketing spending to support another acquisition, ideeli. Ticket Monster �is a Korean e-commerce company that is maintaining its brand and leadership. Ideeli �extends the company's brand into fashion and home decor in the United States. Combined, the companies cost Groupon $300 million in cash and stock, and both are unprofitable today.

Top Media Stocks To Watch For 2015: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:

• [By Geoff Gannon] or John Wiley and you are correct in that purchase - then the company is correct in devoting 100% of free cash flow to buybacks and 0% to dividends. There can be no question about this. The question only arises in situations where you would no longer be willing to put new money to work in the stock.

  As an example, Berkshire Hathaway would be in favor of Coke using all of its free cash flow to buyback stock in 1989 because Berkshire was buying Coke then. Berkshire would not necessarily be in favor of Coke putting all its free cash flow into buybacks today because Berkshire has the opportunity to put new money to work in Coke at today's prices and instead prefers to buy Heinz, Wells Fargo, IBM, etc. The 1980s care is clear, Berkshire had to prefer buybacks because Berkshire was buying the stock itself. The 2013 situation is different. Berkshire is no longer a buyer of Coca-Cola. Berkshire is a holder of Coca-Cola.

  A lot of people overlook this simple rule. If you are a buyer of a stock, you ought rationally to be in favor of that company paying no dividend and using all that cash to buy back stock. There is no good argument against this. If you are a holder of the stock, the story is different. It's complex and it may sometimes be indeterminable whether you want a dividend or a buyback.

  It depends a lot on your own return potential. Historically, I've been able to earn 15% a year in the stocks I bought. So, I am a bit biased in favor of dividends over buybacks at stocks I hold but am no longer buying. I figure I can make 15% a year on my own. So unless the company can make more than 12% to 13% (due to taxes), it isn't clear that a buyback is better for me. But, again, that's based on making 15% a year annualized since 1998-1999. The stock market performance since 1998-1999 has not been as good as my personal performance. So, it's a question of whether you believe your performance will or will not be better than the market, whether your future perfo

• [By Rick Munarriz]

  If you're wondering who will pay to install monitors for every seat you may have missed the Wi-Fi component here. Unlike JetBlue -- which has seatback monitors delivering 36 DirecTV (NASDAQ: DTV  ) television channels and most of Sirius XM's (NASDAQ: SIRI  ) satellite radio stations, but is late to the game by just now starting to update its fleet for Wi-Fi -- Southwest won't be providing monitors. Passengers will use their Wi-Fi tablets, laptops, and smartphones to log into the Web-based service that DISH has been advertising in recent months.

Top Media Stocks To Watch For 2015: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Tim Beyers]

  There's reason to be optimistic. Grimm is an audience favorite -- a 2012 People's Choice award nominee, to be specific -- that's also a draw for Comcast's (NASDAQ: CMCSA  ) NBCUniversal, capturing nearly 7 million viewers per episode last season. AMC Networks has enjoyed similar (OK, greater) success with the comics-sourced hit�The Walking Dead.

Top Prefered Companies For 2015: CBS Corporation(CBS)

CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

• [By DailyFinance Staff]

  Scott Eells/Bloomberg via Getty Images Stocks ended Friday trading higher, despite a report showing a big drop in sales of newly built homes, which prompted a selloff earlier in the session. The Dow Jones industrial average (^DJI) rose 46 points, or 0.3 percent, to 15,010, building on Thursday's gains. The Standard & Poor's 500 index (^GPSC) added six points, or 0.4 percent, to 1,663. and the Nasdaq composite index (^IXIC) gained 19 points, or 0.5 percent, to 3,657, a day after the exchange was shutdown for three hours because of technical troubles. Data from the Commerce Department showed sales of new single-family homes in the U.S. fell by 13.4 percent in July to an annual rate of 394,000 units, well below expectations of 490,000 units. The data weighed on homebuilder stocks, with PulteGroup (PHM) down 1.6 percent to $16.06, Toll Brothers (TOL) off 3.9 percent to $31.19 and D.R. Horton (DHI) off 2.9 to $18.73. After a technological problem shut down trading in Nasdaq securities Thursday, Nasdaq OMX Group (NDAQ) Chief Executive Officer Robert Greifeld said the exchange resolved the technical issues that led to Thursday's trading halt but can't guarantee there would be no future problems. Time Warner Cable (TWC) is offering free antennas to allow customers to watch CBS (CBS) during a blackout that's in its third week. The companies have been unable to reach a new programming deal since their agreement expired in June. Customers in New York, Los Angeles and Dallas can get a free indoor antenna at their local Time Warner Cable store, or receive a $20 voucher, good for the purchase of an antenna at Best Buy (BBY).

• [By Rick Aristotle Munarriz]

  AP, Showtime From a high-end apparel retailer making a down-market move to the leading video service adding to its growing library, here are the wonders and blunders of the week. Amazon.com (AMZN) -- Winner Apple (AAPL) may have hit the market with the new iPad Air on Friday, but it was Amazon making the most of the launch -- to promote its own platform. Amazon has spent most of the week pushing its new 8.9-inch Kindle Fire HDX tablet at the top of the popular e-tailer's home page, pitting it against the iPad Air. Amazon points out that its Kindle Fire HDX is 20 percent lighter, packs 950,000 more pixels, and will set shoppers back $120 less than the somewhat comparable iPad Air. You have to admire Amazon's moxie here. Apple just moved more than 14 million iPads in its latest quarter -- and that was the older models during a non-holiday quarter. Amazon's willing to butt heads with the top brand in tablets, and it's doing it on a site that it knows will be getting very busy in the coming weeks as holiday shoppers begin to research the best tablet to buy this season. Well played, Amazon. lululemon ahtletica (LULU) -- Blunder When it comes to selling high-end yoga clothing, no one does it as well as lululemon athletica. Sure, there was that embarrassing episode earlier this year where its black Luon yoga pants were too sheer, resulting in the departure of its head of merchandising. However, how do you justify filling that opening by bringing in Kmart's head of apparel to be your new chief products officer? Kmart has struggled with years of declining comps, and it's a lackluster discount department store chain. Even if she was more than qualified for the gig, investor -- and more dangerously customer -- perceptions may mark down lululemon's image. Pitney Bowes (PBI) -- Winner Metered mail may be a fading industry, but that didn't stop Pitney Bowes from hitting a fresh 52-week high this week after posting encouraging quarterly results. The key here is tha

Top Media Stocks To Watch For 2015: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Advisors' Opinion:

• [By CNBC]

  Andrew Harrer/Bloomberg via Getty Images Time Warner Cable's flirtation with potential merger suitors may include Comcast, which is seeking advice on possible regulatory hurdles if it should pursue a bid, sources told CNBC on Friday. Comcast (CMCSA) (CMCSK), the parent company of CNBC, is not in active discussions on deal terms with Time Warner Cable (TWC), these sources say, but is asking for guidance on antitrust and telecommunications-related issues. According to people familiar with the matter, TWC has made it clear that if it should sell itself, Comcast would be its preferred buyer. These people add that Comcast has been quietly mulling a merger with TWC for some time. The cable operator is on the verge of a bid from Charter Communications (CHTR), according to The Wall Street Journal, which said Charter is near an agreement with banks for the funds to make that offer. Analysts, however, say Time Warner's needs may be better suited with Comcast. "The synergies are very real, and Comcast would be a better fit," said Craig Moffett, founder and senior analyst at MoffettNathanson. He said that while the Department of Justice's anti-trust requirements may not pose an insurmountable challenge, the more stringent litmus test might come from the Federal Communications Commission.

Top Media Stocks To Watch For 2015: Thomson Reuters Corp(TRI)

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.

Advisors' Opinion:

• [By Rich Smith]

  Thomson Reuters (NYSE: TRI  ) has acquired Canadian trademark search, monitoring, and screening firm Onscope, Thomson announced Tuesday.

• [By Monica Wolfe]

  Thomson Reuters (TRI)

  On Feb. 11, Thomson Reuters declared a dividend of $0.330 per share, representing 3.80% dividend yield for the company. This dividend is payable on March 17 to shareholders of the record at the close of business on Feb. 24, 2014.

• [By Rich Smith]

  This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature an upgrade for Thomson Reuters Reuters (NYSE: TRI  ) , a new buy rating for Novavax (NASDAQ: NVAX  ) -- but for Union Pacific (NYSE: UNP  ) , a downgrade. Let's get that bad news out of the way first.

• [By Associated Press]

  Ron Brown, head of Elektron Analytics, a Thomson Reuters (NYSE: TRI  ) unit that sells news feeds that computers can read, said that the words "explosions" or "Obama" alone wouldn't have triggered selling. But add "White House," and it's a combination even the slowest computer couldn't miss.

Top Media Stocks To Watch For 2015: Time Warner Inc.(TWX)

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Tim Beyers]

  Arkham Origins, the latest in Time Warner's (NYSE: TWX  ) hot-selling Arkham Asylum series, is winning interest thanks to a new trailer. More than 2.6 million have already watched.

• [By Steve Sears]

  New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).

• [By Rick Munarriz]

  It also helps that supernatural movies have been storming back to life this year. Time Warner's (NYSE: TWX  ) The Conjuring has raked in more than $134 million in ticket sales this summer. That's not too shabby for a movie with a $20 million production budget. Mama's $71 million take earlier this year wasn't as impressive, but it still fared better than Insidious.

Top Media Stocks To Watch For 2015: Gannett Co. Inc. (GCI)

Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.

Advisors' Opinion:

• [By Laura Brodbeck]

  Earnings reports expected on Monday include:

  Netflix, Inc. (NASDAQ: NFLX) is expected to report third quarter EPS of $0.48 on revenue of $1.10 billion, compared to last year�� EPS of $0.13 on revenue of $905.09 million. Discover Financial Services (NYSE: DFS) is expected to report third quarter EPS of $1.19 on revenue of $2.07 billion, compared to last year�� EPS of $1.21. W.R. Berkley Corporation (NYSE: WRB) is expected to report third quarter EPS of $0.71 on revenue of $1.57 billion, compared to last year�� EPS of $0.61 on revenue of $1.42 billion. Gannett Co., Inc. (NYSE: GCI) is expected to report third quarter EPS of $0.44 on revenue of $1.27 billion, compared to last year�� EPS of $0.56 on revenue of $1.31 billion.

  Economics

• [By Jon Friedman]

  On June 13, Gannett (NYSE: GCI  ) sent Wall Street a clear message: We are much more than the nation's leading newspaper chain.

  That was the day that Gannett announced plans to acquire television company Belo Corp. for $1.5 billion, transforming Gannett's image overnight�from an old-fashioned newspaper chain (bad, bad image) to a more promising television operation (very good one).

• [By Mike Deane]

  Early on Monday morning, Gannett (GCI) had its price target raised to $35 from $34 at FBR Capital. The ratings company also affirmed that Gannett is a “Top Pick.”�

  Gannett, a publishing and broadcasting company that operates in the U.S. and the U.K., currently has a price of $29.76, and FBR’s new target suggests an 18% upside.

  FBR analyst William Bird had the following comments about GCI’s PT raise: “Based on our analysis, we estimate that Gannett’s spectrum is worth approximately $2.2 billion, or $9 per share, roughly doubling in value from the�acquisition�of BLC (i.e., pre-deal valuation of ~$1.1 billion). Separately, we are lowering our 2014 EPS estimate by $0.07 to reflect the previously announced sale of three stations to MDP (note: an expected midyear close means that the stations will not be in operating results from January 1, but the proceeds will not be received until midyear). We are increasing our price target to $35 from $34 to reflect shareholder accretion from the sale. We like Gannett’s improving business mix, growth profile, and ability to drive growth with its own propeller through higher retrans, synergies, and potential TV acquisitions.”

  Gannett stock was inactive in pre-market trading. So far this year, the company’s stock is up 0.61%.

Top Media Stocks To Watch For 2015: Cablevision Systems Corporation (CVC)

Cablevision Systems Corporation provides telecommunications and media services. It operates in two segments, Telecommunications Services and Other. The Telecommunications Services segment is involved in television business, including video, high-speed data, and VoIP operations, as well as the provision of commercial data and voice services. The Other segment offers Newsday, a daily newspaper; amNewYork, a free daily newspaper; and Star Community Publishing, a group of weekly shopper publications; and newsday.com and exploreLI.com. This segment also engages in motion picture theatre business, Clearview Cinemas; provision of the News 12 Networks, a regional news programming services; and the MSG Varsity network, a network covering high school sports and activities, and other local programs, as well as cable television advertising. Cablevision Systems Corporation was founded in 1985 and is headquartered in Bethpage, New York.

Advisors' Opinion:

• [By Alyce Lomax]

  All in the family
  Cablevision� (NYSE: CVC  ) is family-controlled, so maybe nepotism is to be expected. Recently, in a bizarre turn of events, CEO James Dolan expanded the corporate responsibilities of his wife, Kristin. Although that sounds like a clear conflict of interest, it's a little stranger still since the company had disclosed that the couple had separated. Meanwhile, Dolan's brother-in-law, Brian Sweeney, has been awarded with a promotion to spearhead corporate strategy.

• [By Teresa Rivas]

  On the flip side, Advanced Micro Devices (AMD) takes the dubious honor of most overbought: It has 40.3% to fall, based on its Goldman �target price. �The top five includes Cablevision Systems (CVC) Hewlett-Packard (HPQ), Intel (INTC) and U.S. Steel (X). Other big players on the list are Microsoft (MSFT), Cliffs Natural Resources (CLF), and Staples (SPLS).

Top Media Stocks To Watch For 2015: News Corporation(NWSA)

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Sue Chang]

  On the earnings front, News Corp (NWSA) �is expected to report fiscal first-quarter earnings of 5 cents a share, according to a consensus survey by FactSet. In June, the media company separated its entertainment arm to operate as 21st Century Fox Inc. (FOXA) �while the publishing business retained the News Corp name. News Corp owns The Wall Street Journal and MarketWatch, the publisher of this report.

• [By WALLSTCHEATSHEET.COM]

  News Corp. provides entertainment and information through a variety of mediums to consumers and companies all around the world. The stock has been on a bullish run over the last several years and is now trading at all-time high prices. Over the last four quarters, earnings and revenue figures have been increasing which has pleased investors. Relative to its peers and sector, News Corp. has been a year-to-date performance leader. Look for News Corp. to OUTPERFORM.

Top Media Stocks To Watch For 2015: Liberty Global Inc.(LBTYA)

Liberty Global, Inc. provides video, broadband Internet, and telephony services primarily in Europe and Chile. The company offers broadband services over cable distribution systems, including video, broadband Internet, and telephony; and video services through direct-to-home satellite, or through multichannel multipoint distribution systems. Its analog video services comprise basic and expanded basic programming; and digital cable services include basic and premium programming, digital video recorders, and high definition programming, as well as pay-per-view programming, such as video-on-demand and near video-on-demand. In addition, the company offers voice-over-Internet-protocol and circuit-switched telephony services, as well as mobile telephony services using third-party networks. Further, it owns programming networks that provide video programming channels to multi-channel distribution systems owned by the company and the third parties. As of December 31, 2011, the com pany owned and operated networks that passed 33,262,100 homes; and served 18,405,500 video subscribers, 8,159,300 broadband Internet subscribers, and 6,225,300 telephony subscribers. Liberty Global, Inc. was founded in 2004 and is based in Englewood, Colorado.

Advisors' Opinion:

• [By Rich Duprey]

  Having completed its $24 billion acquisition of Virgin Media, cable operator Liberty Global (NASDAQ: LBTYA  ) said its board of directors had authorized a $3.5 billion stock repurchase program that it intended to complete over the next two years.

• [By Lauren Pollock]

  Liberty Global(LBTYA) PLC has agreed to sell substantially all of its international content division Chellomedia to AMC Networks Inc.(AMCX) in a deal worth $1 billion, allowing the cable company to focus on its core markets.

• [By Holly LaFon]

  Besides Yahoo, Loeb�� top holdings are AIG (AIG), Liberty Global Group Inc. (LBTYA) and Thermo Fisher Scientific Inc. (TMO), up 42%, 19% and 17%, respectively, from his average purchase price.

Top Media Stocks To Watch For 2015: Discovery Communications Inc(DISCA)

Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.

Advisors' Opinion:

• [By Sean Williams]

  To begin with, partnerships are a key component to Hasbro's ongoing success. In 2009, Hasbro entered into a deal with media company Discovery Communications (NASDAQ: DISCA  ) to create a channel known as the Hub, which would feature programming based on Hasbro's owned toy lines. Since 2010, when the channel made its debut, sales of My Little Pony have taken off. In the wake of its renewed success, the franchise released a new movie in June, which will go onto DVD later this summer.�

• [By Julianne Pepitone]

  At $45 a share, Wieser pointed out, Twitter's valuation isn't too far below more established media companies like CBS (CBS, Fortune 500), Discovery Communications (DISCA) and Yahoo (YHOO, Fortune 500).

• [By Alyce Lomax]

  An hour is the amount of time Americans might allot for watching an episode of, say, Dirty Jobs in their free time. Speaking of jobs, dirty or otherwise, Discovery Communications' (NASDAQ: DISCA  ) CEO David Zaslav's pay calculation came to $24,000 per hour.

• [By Patricio Kehoe] d that precise strategy and now owns several cable networks available in over 200 countries worldwide. The national and pan-regional networks, distributed through 130 feeds and in 40 languages, have established this media firm in virtually every market. So, let�� take a look at what might have encouraged investment gurus Ron Baron (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) to add more of this company�� shares to their portfolio.�

  Working Through the Niche

  As the niche cable network provider in the media industry, Discovery�� flagship channel addresses topics like science, technology, history and exploration. With TLC, Animal Planet and Discovery as the three key domestic channels, the company reaches 100 million households, and despite the mature U.S. market, sales have grown 6% and revenue 10% in fiscal 2013. This is mainly due to the media giant�� unique content programming and line-up refreshments. Hit shows like Shark Week, for example, have become so popular through advertising that the network experienced in 2013 its all-time best viewership with over 50 million viewing rates during one episode. The men�� lifestyle cable network, Velocity, also experienced a 30% viewership increase in quarter four of 2013, and is now the fastest-growing network in that segment.��

  Furthermore, in addition to the namesake channels, Discovery also owns Investigation Discovery, The Learning Channel, a 50% stake in Oprah Winfrey�� new cable channel OWN, and The Hub, a children�� network created with Hasbro Inc. (HAS). The strong universal appeal of content which transcends cultures and languages, add a differential value to this company and has allowed international distribution across multiple media platforms. In fact, 100% content ownership gives this firm a competitive advantage, as it can seek benefits from non-traditional content distribution. With companies like Netflix Inc. (NFLX)�or Amazon.com Inc. (AMZN) looking to push t

Top Media Stocks To Watch For 2015: DISH Network Corporation(DISH)

DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.

Advisors' Opinion:

• [By Vivek Gupta]

  With about 40 million subscribers, Netflix (NFLX) is the clear leader in the online streaming industry. Companies like Amazon (AMZN), Hulu and YouTube (Google) are well known for their online video-streaming services and are competing in the industry. Some other players also operate in the industry. For example, Comcast offers streaming service by the name of Xfinity Streampix; Dish Network (DISH) is using Blockbuster to enter the streaming business; Intel (INTC), the semiconductor manufacturer, is trying to enter in a big way.

• [By Dan Caplinger]

  Outside the Dow, the big news came from Sprint Nextel (NYSE: S  ) , which soared more than 13% after DISH Network (NASDAQ: DISH  ) made a competing bid for the company. The $25.5 billion DISH deal would involve Sprint shareholders getting $7 per share in compensation, with more than two-thirds of it coming in cash. Yet Sprint's stock soared above the $7 level, suggesting that investors expect a bidding war between DISH and previous bidder Softbank. Whether such a bidding war will materialize, of course, remains to be seen -- especially if adverse market conditions start to weigh on the overall mergers and acquisitions environment.

Delayed Tax Refunds, TC 570 And An Important Distinction

By the stats, the current tax season has been quite a success. The Internal Revenue Service is reporting that, despite an abbreviated season, they are processing tax returns and issuing tax refunds at a much faster pace than last year.

Of course, all of the numbers in the world don't matter when the one number you're counting on – your own refund – is affected.

This season, I've heard from a number of taxpayers experiencing tax refund delays (though certainly nothing near last year's education credit snafu). Initially, the trouble seemed to focus on those 1121 codes. The IRS was made aware of the problem and did issue a statement, saying:

A very small percentage of taxpayers may see an 1121 reference number if they check "Where's My Refund?" after they initially were provided a projected refund date by the tool. The IRS is aware of this situation, and emphasizes that the small group of taxpayers who see this reference number should continue checking Where's My Refund for an update. If we need more information to process their return, we will contact them — usually by mail.

Most of the taxpayers who reached out to me regarding the 1121 issue – including Donna – have since reported that they've either received their refunds or updated information about the delay.

However, shortly after the 1121 issue was made public, the focus from taxpayers on social media – and in emails, direct messages and private messages to me – has zeroed in on another code that's popping up over and over: TC 570. There is a notable difference between the 1121 code and the TC 570: the latter is not an explicit refund code. It appears not on the "Where's My Refund?" tool but on a taxpayer's transcript. That's an important distinction.

I reached out to IRS to find out whether there was any sort of systemic issue causing taxpayers to see a TC 570 on their transcript. So far, the answer to that question is no. The IRS is, however, clearly aware of the concerns and had this to say:

A Transaction Code 570 can mean different things in different cases so a taxpayer should not try to draw a conclusion based on the presence of a TC 570. The Transaction Code 570 will stop a refund from being issued until the impact of the action being taken on the account and the refund is determined and processed. Transaction Codes are used internally by the IRS to identify a transaction, adjust and research tax accounts and to maintain a history of actions posted to a taxpayer's account. While they are reflected on transcripts they are not reflected on most public facing documents or tools like Where's My Refund because they are difficult to interpret and can have different meaning depending on the case and associated codes and files. Again, the best way for taxpayers to check the status of their refund is by going to Where's My Refund.

It's a statement worth repeating. The IRS uses a lot of internal codes on transcripts and they can mean different things. And what it means exactly isn't always apparent to the person taking the call at IRS. Does that suck? Of course it does. Trust me. I've been on the end of those calls trying to decipher what's going on for taxpayers. And I totally believe that taxpayers are calling IRS and getting two or three different answers about the status of their refund. And I believe that taxpayers deserve a better answer.

But I would caution taxpayers not to try and pick apart their tax transcripts in an effort to find answers. There is no "one size fits all" answer to the TC 570 – not even in the best of circumstances. It does not necessarily equate, as some have surmised, an audit. Nor does it means, as others have posited, that the refund is subject to an offset. It could mean those things – but again, you're not going to be able to tell from a glimpse at your transcript this early in the season.

It reminds of me of this great scene in The Princess Bride:

Those codes? They don't always mean what you think they mean.

I know that isn't the answer that taxpayers want to hear. And trust me, I am continuing to pester IRS about these issues (believe me when I say that they have my number). But it's not a certainty that a TC 570 on your transcript is anything sinister at this stage of the season. The data doesn't appear to support it. And if there's a real problem with your specific return, you'll hear from IRS.

And yes, there have been problems. I have confirmed reports that a glitch in at least one program has resulted in the issuance of paper checks instead of direct deposit. Errors – mostly transposition of numbers – have slowed processing of other returns. There have been bounces for bad addresses. Returns have been held because of prior years when no returns were filed. And yes, identity theft continues to be a big problem especially when Social Security numbers for dependents have appeared on more than one return. Clearly, not everyone is having a smooth tax season.