Rieder: Stop adding 'gate' to every flap

It was as inevitable as night following day.

The scandal that has engulfed New Jersey Gov. Chris Christie after his aides exacted revenge on the mayor of Fort Lee by causing a hideous traffic snarl on the George Washington Bridge rapidly became known as "Bridgegate."

Hardly a surprise. Ever since a certain third-rate burglary in Washington, D.C., nearly 42 years ago, that has been the fate of every scandal, near scandal, faux scandal, flap, brouhaha, kerfuffle, hubbub and conturbation that comes along.

It gets the gate. Or, rather, the -gate.

And it's got to stop. Now.

Don't get me wrong. I'm a big First Amendment guy. But even freedom of speech has its limits. You know how it's not OK to yell "fire" in a crowded theater (especially when it's not on fire)?

This "gate" business is careening perilously close to that territory.

It's not cute. It's not cool. It's not clever.

I will give it knee-jerk. And lazy. And oh, so predictable. And really, really annoying.

But there is a more serious reason to show gate to the gate. By awarding the suffix to everything from serious government misconduct to the exposure of Janet Jackson's breast during the halftime show of Super Bowl XXXVIII (surely you remember Nipplegate), you create a false equivalency that ends up trivializing everything.

That certainly was the take of Sam Dash, who served as chief counsel to the Senate Watergate Committee all those years ago. "When people hear this proliferation of 'gates,' they feel the press is telling them this is the same as Watergate, and whatever Watergate has stood for has lost its meaning," Dash told Suzan Revah of American Journalism Review.

This was back in 1997. Dash, who died in 2004, would no doubt be horrified to find out this gate obsession shows no sign of abating all these years later.

The actual Watergate saga began back in 1972 when burglars with ties to then-president Richard Nixon's re-election committee and the White House were caught t! rying to break into Democratic National Committee headquarters. Ultimately, "Watergate" became a catchall for a wide array of serous misconduct — wiretapping, political espionage, dirty tricks, and on and on — that ultimately forced Nixon to resign in disgrace.

But the gate in Watergate wasn't a suffix to suggest that something amiss was afoot. Watergate was simply the name of the building the inept burglars were breaking into. In a brilliant sketch on the BBC in 2010, the British comedy duo Mitchell and Webb pointed out that to fit the paradigm, the literal mother of all gates should properly be called Watergategate.

Nobody did more to give momentum to the gate meme than William Safire, The New York Times op-ed columnist and language maven who, in another life, had been a speechwriter for Nixon. Safire loved adding gate to everything.

According to historians, the first post Watergate (post-Watergategate?) gate was created in jest. In 1973, the humor magazine National Lampoon (this was in a harsh, primitive time when not only was there no Twitter, there was no Onion) dubbed a fictional Russian scandal Volgagate. And we were off and running.

There's a special place in the Gate Hall of Fame for Troopergate. There have been three of them, revolving variously around Bill Clinton, Eliot Spitzer and Sarah Palin (now there's a trifecta).

Probably the most adorable gate is Biscuitgate, a contretemps that exploded when British Prime Minister Gordon Brown wouldn't disclose what his favorite cookie was.

And a serious contender for the silliest of all gates was Selfiegate, when President Obama took a selfie posed with Danish Prime Minister Helle Thorning-Schmidt at Nelson Mandela's funeral service, supposedly much to the consternation of First Lady Michelle Obama.

I'm under no illusion that closing this particular gate will be easy. After all, I called for the banishment of the dreaded suffix in American Journalism Review back in 2011.

So it may be that the gat! e, like r! ock 'n' roll is here to stay.

But let's hope not.

Stocks: Jobs report disappoints

NEW YORK (CNNMoney) U.S. stock futures bounced around the breakeven line Friday following a government jobs report that fell way short of what economists were predicting.

The economy added only 74,000 jobs in December, far below the 193,000 that economists surveyed by CNNMoney had forecast. Futures pulled back immediately after the report, before returning to modest gains.

The unemployment rate last month fell to 6.7% from 7%, the Labor Department said.

The jobs report tends to be a big market mover, significantly influencing investment decisions of traders and investors.

The report -- the final jobs reading of 2013 -- will provide an important gauge of the economy's recent momentum, and could influence the Federal Reserve's plans for its monetary stimulus program.

The Federal Reserve last month began scaling back that program amid economic data showed evidence of an improving economy.

U.S. stocks finished flat Thursday. European markets were rising in morning trading. Asian markets closed with mixed results.

What's moving: Target (TTGT) shares were under pressure after the retailer said 70 million individuals had information stolen in the recent data breach of credit and debit cards.

Alcoa (AA, Fortune 500) shares sank in premarket trading, one day after the aluminum producer reported quarterly earnings that missed estimates.

Sears (SHLD, Fortune 500) shares plunged after the retailer reported a sharp drop in same-store sales during the holiday season and issued a weaker-than-expected forecast.

Abercrombie & Fitch (ANF) shares surged after the clothing retailer raised its earnings guidance for the year.

--CNNMoney's Annalyn Kurtz contributed

Hot Restaurant Companies To Own For 2015

The right strategic advice can be the difference between success and failure in hyper-competitive markets. One company that recognizes this is IZEA, Inc. (IZEA). Since June this year, the company has announced the addition of six new members to its strategic advisory board. This article looks at the individuals that make up the newly formed board, and what each brings to the table.

On June 6, IZEA announced that John Caron had joined its strategic advisory board. Caron�� area of expertise is marketing. For two years prior to 2013, he served as the President of Olive Garden, owned and operated by Darden Restaurants, Inc. His resume boasts more than 25 years of marketing experience in the packed goods and restaurant industries. IZEA stand to benefit from Caron�� experience in two main areas. The first is his brand knowledge. Olive Garden is a brand driven business, and Caron�� experience as leader of this brand ��developing a digital media strategy, designing advertising campaigns and delivering new promotions ��is all relevant to IZEA�� focus on creating a brand for itself. The second is rooted in growth management. His work with Darden led to company growth that far exceeded that of the industry, and IZEA�� to-date, and expected future, growth is likely to do the same. Caron�� experience could be key to ensuring IZEA�� sustainable long-term expansion.

Hot Restaurant Companies To Own For 2015: Noodles & Co (NDLS)

Noodles & Company, incorporated on December 19, 2002, is a casual restaurant concept offering lunch and dinner. The Company offers noodle and pasta dishes, staples of many cuisines, with the goal of delivering fresh ingredients and flavors globally under one roof from Pad Thai to Mac & Cheese. The Company�� globally inspired menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and sandwiches, which are served on china by its friendly team members.

As of May 28, 2013, including the 16 Company owned restaurants and one franchise restaurant opened in 2013. The Company opened 39 new company owned restaurants and six franchise restaurants. In 2012, the Company began using Your World Kitchen to describe the breadth of its offering and its customers' dining experience.

Advisors' Opinion:

• [By Rick Munarriz]

  Noodles & Co. (NASDAQ: NDLS  ) -- the blazing hot IPO that's been compared to Chipotle even though it's only half as big and growing half as quickly as Chipotle was when it began trading in 2006 -- has also promoted its ability to keep customers coming. Noodles & Co. has reported positive comps in 28 of the past 29 quarters.

• [By Lauren Pollock]

  Noodles(NDLS) & Co.’s third-quarter profit soared as the fast-casual dining chain’s sales were bolstered by new restaurant openings and rising demand at established locations. Though sales were boosted by higher traffic and an increase in the amount spent per customer, shares of Noodles dropped 7.9% to $43 in premarket trading as the revenue growth wasn’t as lofty as analysts expected.

• [By Valuentum]

  After the extremely positive post-IPO fortune of fast food concept Noodles & Co (NDLS), the surging IPO of Potbelly (PBPB) caught our attention. Let's take a look at the prospects of this Chicago-based sandwich chain.

• [By Jeremy Bowman]

  Noodles & Company (NASDAQ: NDLS  ) looks like the newest Wall Street darling. Shares of the fast casual concept jumped from the $18 IPO price two weeks ago all the way up to $51, before settling in the $40 range it trades in today. Among the more flattering comparisons the pasta chain has received is that it's the "next Chipotle (NYSE: CMG  ) ," the burrito chain whose shares are up about 800% since its 2006 IPO.

Hot Restaurant Companies To Own For 2015: Brinker International Inc (EAT)

Brinker International, Inc. (Brinker), incorporated on September 30, 1983, owns, develops, operates and franchises the Chili�� Grill & Bar (Chili��) and Maggiano�� Little Italy (Maggiano��) restaurant brands. As of June 27, 2013 (fiscal 2013), the Company's system of Company-owned and franchised restaurants included 1,591 restaurants located in 50 states, and Washington, D.C. It also has restaurants in the Bahrain, Brazil, Canada, Columbia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, Germany, Guatemala, Honduras, India, Indonesia, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Syria, Taiwan, United Arab Emirates and Venezuela.

Chili�� Grill & Bar

Chili�� operates in the Bar and Grill category of casual dining. The Company has operations worldwide, with locations in 32 foreign countries and two United States territories. Chili�� menu features items, such as Baby Back Ribs smoked in-house, Big Mouth Burgers, Sizzling Fajitas, hand-battered Chicken Crispers and house-made Chips and Salsa. The all-day menu offers a range of appetizers, entrees and desserts. A special lunch section is available on weekdays. In addition to its flavorful food, Chili�� offers a line of alcoholic beverages available from the bar, including Margaritas and draft beer. During fiscal 2013, food and non-alcoholic beverage sales constituted approximately 86.1% of Chili�� total restaurant revenues, with alcoholic beverage sales accounted for the remaining 13.9%.

Maggiano�� Little Italy

Maggiano�� is a full-service, casual dining Italian restaurant brand. Its Maggiano�� restaurants feature individual and family-style menus, and its restaurants also have banquet facilities designed to host party business or social events. It has lunch and dinner menu offering chef-prepared, classic Italian-American fare in the form of appetizers, entrees with portions of pasta, ch! icken, seafood, veal and prime steaks, and desserts. The Company�� Maggiano�� restaurants also offer a range of alcoholic beverages, including wines. In addition, Maggiano�� offers a full carryout menu, as well as local delivery services. During fiscal 2013, food and non-alcoholic beverage sales constituted approximately 83.0% of Maggiano�� total restaurant revenues, with alcoholic beverage sales accounted for the remaining 17.0%.

Advisors' Opinion:

• [By Rich Duprey]

  Restaurant operator�Brinker International� (NYSE: EAT  ) �announced yesterday�its second-quarter dividend of $0.20 per share, the same rate it's paid for the last three quarters when it raised the payout 25% from $0.16 per share.

Best Industrial Conglomerate Companies To Own For 2015: Arcos Dorados Holdings Inc (ARCO)

Arcos Dorados Holdings Inc., incorporated on December 9, 2010, is a McDonald�� franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald��-branded restaurants, which represented 6.7% of McDonald�� total franchised restaurants globally. It operates McDonald��-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2010, of its 1,755 McDonald��-branded restaurants in the territories, 1,292 (or 74%) were Company-operated restaurants and 463 (or 26%) were franchised restaurants. It generates revenues from two sources: sales by Company-operated restaurants and revenues from franchised restaurants, which consist of rental income, which is based on the greater of a flat fee or a percentage of sales reported by franchised restaurants. As of December 31, 2010, it owned the land for 510 of its restaurants (totaling approximately 1.2 million square meters) and the buildings for all but 12 of its restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico and the United States Virgin Islands of St. Croix and St. Thomas; North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and South Latin America division (SLAD), consisting of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela. As of December 31, 2010, 35.1% of its restaurants were located in Brazil, 29.7% in SLAD, 27.1% in NOLAD and 8.1% in the Caribbean division. The Company conducts its business through its indirect, wholly owned subsidiary Arcos Dorados B.V.

Company-Operated and Franchised Restaurants

The Company operates its McDonald��-branded restaurants under two basic structures: Company-operated restaurants operated by the Company and franchised restaurants operated by franchisees. Under both operating alternatives the real estate location may ! either be owned or leased by the Company. It owns, fully manages and operates the Company-operated restaurants and retains any operating profits generated by such restaurants, after paying operating expenses and the franchise and other fees owed to McDonald�� under the Master Franchise Agreements (MFAs). In Company-operated restaurants, it assumes the capital expenditures for the building and equipment of the restaurant and, if it owns the real estate location, for the land as well. Under its franchise arrangements, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and decor of their restaurants, and by reinvesting in the business over time. It is required by the MFAs to own the real estate or to secure long-term leases for franchised restaurant sites. It subsequently leases or subleases the property to franchisees.

In exchange for the lease and services, franchisees pay a monthly rent to the Company, based on the greater of a fixed rent or a certain percentage of gross sales. In addition to this monthly rent, it collects the monthly continuing franchise fee, which generally is 5% of the United States dollar equivalent of the restaurant�� gross sales, and pays these fees to McDonald�� pursuant to the MFAs. However, if a franchisee fails to pay its monthly continuing franchise fee, it remains liable for payment in full of these fees to McDonald��. As of December 31, 2010, it was engaged in several joint ventures, which collectively owned 24 restaurants, in Argentina, Chile and Colombia.

Restaurant Categories

The Company classifies its restaurants into one of four categories: freestanding, food court, in-store and mall stores. Freestanding restaurants are the type of restaurant, which have ample indoor seating and include a drive-through area. Food court restaurants are located in malls and consist of a front counter and kitchen and do not have their own seating area. In-store restaurants are part ! of a larg! er building and resemble freestanding restaurants, except for the lack of a drive-through area. Mall stores are located in malls like food court restaurants, but have their own seating areas. As of December 31, 2010, 808 (or 46.2%) of its restaurants were freestanding, 359 (or 20.5%) were food court, 265 (or 15.1%) were in-stores and 319 (or 18.2%) were mall stores. In addition, it has four non-traditional stores, such as food carts.

Reimaging

As of December 31, 2010, the Company had completed the reimaging of 308 of 1,569 restaurants. Many of the reimaging projects include the addition of McCafe locations to the restaurant. It has developed system-wide guidelines for the interior and exterior design of reimaged restaurants.

McCafe Locations and Dessert Centers

McCafe locations are stylish, separate areas within restaurants where customers can purchase a range of customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of December 31, 2010, there were 267 McCafe locations in the Territories, of which 12% were operated by franchisees. Argentina, with 71 locations, has McCafe locations, followed by Brazil, with 67 locations. In addition to McCafe locations, it has Dessert Centers. Dessert Centers operate from existing restaurants, but depend on them for supplies and operational support. As of December 31, 2010, there were 1,306 Dessert Centers in the Territories.

Product Offerings

The Company�� menus feature three tiers of products: affordable entry-level options, such as its Big Pleasures, Small Prices or Combo del Dia (Daily Extra Value Meal) offerings, core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products, which are marketed through common platforms rather than as individual items. These platforms can be based on the ty! pe of pro! ducts, such as beef, chicken, salads or desserts, or on the type of customer targeted, such as the children�� menu.

Advisors' Opinion:

• [By Seth Jayson]

  Arcos Dorados Holdings (NYSE: ARCO  ) is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Arcos Dorados Holdings's revenues will grow 4.4% and EPS will decrease -58.3%.

• [By Dan Caplinger]

  Next Tuesday, Arcos Dorados (NYSE: ARCO  ) 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.

• [By Rich Duprey]

  Latin American McDonald's franchisee�Arcos Dorados (NYSE: ARCO  ) announced today its second-quarter dividend of $0.0596�per share on its Class A and Class B stock, slightly lower than the steady rate of $0.0597 per share it's paid since 2011.

• [By Chris Hill]

  In this segment of Friday's Investor Beat, Motley Fool analyst Ron Gross gives investors one stock that he'll be watching closely this week. He takes a look at Arcos Dorados (NYSE: ARCO  ) , which holds the franchise rights to McDonald's (NYSE: MCD  ) in Latin America and the Caribbean. The company reports earnings next week, and while it has been a long-time holding for Ron in the Motley Fool's Million-Dollar Portfolio service, he sees reasons to be concerned here. The company's store growth is slowing, so he'll be watching closely to see what the company has to say next week.

Hot Restaurant Companies To Own For 2015: Sodexo SA (SW)

Sodexo SA, (formerly Sodexho Alliance SA), is a global provider of services in three primary business areas: The On-site Services Solutions offer various services that range from food services to construction management, reception to the maintenance of scanners and laboratory equipment, management of data centers, leisure cruises and provides housekeeping to rehabilitation services at correctional facilities. The Motivation Solutions division provides passes and vouchers, comprising Restaurant Pass, Gift Pass, Sport Pass, Training Voucher, Service Card and Book Card, among others. The Company also provides Personal and Home Services in the form of childcare, tutoring, concierge services and in-home service care facilities. The Company is present in 80 countries in a number of geographic areas, such as North America, South America, Continental Europe and United Kingdom and Ireland. Advisors' Opinion:

• [By Glenwoods]

  Recently giant food conglomerate, Cargill announced it had partnered with the Swiss biosynthetic pharmaceutical company, Evolva (EVE:SW), to develop a more consistent and less expensive stevia sweetener via Evolva�� microbial fermentation-based process.� This is big news for the future of stevia because a microbial fermentation-based process does not have to rely on soil conditions or weather, and stevia can be manufactured anywhere, thus having the potential of guaranteeing an endless supply line of stevia.� Through the microbial fermentation, the manufacturer has the capability to process the key sweet individual components of stevia using low-cost plant sugars, and allows for the individual components of stevia, regardless of how minute, to be developed creating blends in any volume, which then could open the door for these manufacturers to fine-tune its stevia to local tastes.� But what would be most attractive is that, because the fermentation process does not require the entire plant, the method could conceivably shave upwards of 70% off the cost of producing stevia extracts.�

Hot Restaurant Companies To Own For 2015: Popeyes Louisiana Kitchen Inc (PLKI)

Popeyes Louisiana Kitchen Inc, formerly AFC Enterprises, Inc. incorporated on July 27, 1992, develops, operates, and franchises quick-service restaurants (QSRs or restaurants) under the trade names Popeyes Chicken & Biscuits and Popeyes Louisiana Kitchen (collectively Popeyes). Within Popeyes, it manages two business segments: franchise operations and ompany-operated restaurants. Within the QSR industry, Popeyes distinguishes itself with a Louisiana style menu, which features spicy chicken, chicken sandwiches, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. As of December 25, 2012, the Company operated and franchised 2,104 Popeyes restaurants in 47 states, the District of Columbia, Puerto Rico, Guam, the Cayman Islands and 26 foreign countries. As of December 25, 2012, of its 1,634 domestic franchised restaurants, approximately 70% were concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia and Mississippi. Of its 425 international franchised restaurants, approximately 60% were located in Korea, Canada, and Turkey. Of its 45 Company-operated restaurants, approximately 80% were concentrated in Louisiana and Tennessee. In November 2012, the Company acquired 27 restaurants in Minnesota and California.

As of December 25, 2012, the Company had 340 franchisees operating restaurants within the Popeyes system. During the fiscal year ended December 25, 2012 (fiscal 2012), the Popeyes system opened 141 restaurants, which included 75 domestic and 65 international restaurants. During fiscal 2011, the Popeyes system permanently closed 75 restaurants, resulting in 66 net restaurant openings, compared to 65 net openings. As of December 25, 2012, it leased 12 restaurants and subleased 44 restaurants to franchisees. In addition, it leased three properties to unrelated third parties. Of the restaurants leased or subleased to franchisees, 29 were located in Texas and 16 were located in Georgia. On November 7, 2012,! the Company entered into a new agreement with the King Features Syndicate Division of Hearst Holdings, Inc., licensor of the Popeye the Sailorman and associated cartoon characters.

Advisors' Opinion:

• [By Sue Chang]

  Popeyes Louisiana Kitchen Inc. (PLKI) �is expected to report first-quarter earnings of 45 cents a share.

• [By Mark Yagalla]

  As the fast-food wars heat up, restaurants are getting more creative with their menu items. One item that is getting a lot of attention is the waffle. Two restaurant chains that have introduced their own variations of the waffle are Taco Bell, owned by Yum! Brands (NYSE: YUM  ) �and Popeyes Louisiana Kitchen (NASDAQ: PLKI  ) . Taco Bell has made the Waffle Taco a centerpiece of its new breakfast menu. Meanwhile, Popeyes is bringing back its popular Chicken Waffle Tenders. Could the waffle be the answer and boost same-store sales for these restaurants? If it is the answer, expect to see more variations of the waffle on many more menu boards.

• [By Rick Aristotle Munarriz]

  Alamy Fried chicken and waffles is a staple menu item at countless soul food and comfort food restaurants, but that's not stopping Burger King (BKW) from trying to give the meal a fast-food spin. Burger King is testing a new sandwich in the Northeast that takes the breaded chicken patty used in its Classic Crispy Chicken Sandwich from its King Deals Value Menu and replaces the bun with a split waffle. Burger King's Chicken & Waffle Sandwich isn't as hearty as the meal that it's based on. It's selling for as little as $2.29. But the chain's latest attempt to turn heads with a unique menu item will at least attract curious nibblers if it does decide to broaden the offering across the country. Waffling About Burger King isn't the first popular chain to attempt to reinvent this classic dish. As Nation's Restaurant News points out, last summer, Popeyes Louisiana Kitchen (PLKI) offered Chicken Waffle Tenders -- consisting of chicken tenders dipped in a vanilla maple-scented waffle batter, served with a honey maple dipping sauce. DineEquity's (DIN) IHOP did it three years ago by combining its chicken strips with Belgian waffle quarters. Yum! Brands (YUM) tried to breathe new life into its breakfast business last summer by testing a Waffle Taco -- an egg, sausage, and waffle breakfast sandwich. Even if it doesn't succeed -- and some of the early taste tests haven't been very flattering to the chain's new sandwich -- it's at least comforting to see that Burger King isn't just copying McDonald's (MCD) the way that it has for the past couple of years. Burger King followed McDonald's in offering fancy coffee drinks, fresh fruit smoothies, and popcorn chicken. It has gone on to roll out doppelgangers of the Egg McMuffin and McRib sandwiches. In November, it introduced the Big King, which any patron will quickly recognize as a body double to the Big Mac. Then again, it's not as if following McDonald's lead is such a clever idea right now. The world's largest re

Hot Restaurant Companies To Own For 2015: DineEquity Inc (DIN)

DineEquity, Inc., incorporated on May 07, 1976, owns franchise and operate two restaurant concepts: Applebee's Neighborhood Grill & Bar, (Applebee's), in the bar and grill segment of the casual dining category of the restaurant industry, and International House of Pancakes (IHOP), in the family dining category of the restaurant industry. As of December 31, 2012, the franchise operations segment consisted of 2,011 restaurants operated by Applebee's franchisees in the United States, one United States territory and 15 foreign countries and 1,569 restaurants operated by IHOP franchisees and area licensees in the United States, two United States territories and five foreign countries. As of December 31, 2012, the Company restaurant operations segment consisted of 23 Applebee's Company-operated restaurants, 10 IHOP Company-operated restaurants and two IHOP restaurants reacquired from franchisees and operated by IHOP on a temporary basis until refranchised. Financing operations revenue primarily consists of interest income from the financing of franchise fees and equipment leases, as well as sales of equipment associated with refranchised IHOP restaurants and a portion of franchise fees for restaurants taken back from franchisees not allocated to IHOP intellectual property. In October 2012, it completed the refranchising program and completed the transitioning to a 99% franchised restaurant system.

Applebee's

The Company develops, franchises and operates restaurants in the bar and grill segment of the casual dining category of the restaurant industry under the name Applebee's Neighborhood Grill & Bar. As of December 31, 2012, 68 franchise groups operated 2,011 of these restaurants and 23 restaurants were Company-operated. The restaurants were located in 49 states, one United States territory and 15 countries outside of the United States. During the year ended December 31, 2012, 20 domestic franchise restaurants opened, six domestic franchise restaurants closed. 154 Company-operated! restaurants were franchised. The number of restaurants held by an individual franchisee ranges from one to 438 restaurants. As of December 31, 2012, it is focusing on international franchising primarily in Canada, Mexico, Central and South America, and the Mediterranean/Middle East. As of December 31, 2012, there were 149 international Applebee's franchise restaurants. During 2012, 14 international franchise restaurants opened and 13 international franchise restaurants closed.

IHOP

The Company develops franchises and operates restaurants in the family dining category of the restaurant industry under the names IHOP and International House of Pancakes. As of December 31, 2012 there were a total of 1,581 IHOP restaurants of which 1,404 were subject to franchise agreements, 165 were subject to area license agreements, 10 were Company-operated restaurants and two restaurants were reacquired from franchisees and operated by IHOP on a temporary basis. The Company owns and operates 10 IHOP restaurants in the Cincinnati market area primarily to test new remodel programs, operating procedures, products, technology, cooking platforms and service models. IHOP restaurants are located in all 50 states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands and internationally in Canada, the Dominican Republic, Guatemala, Mexico and the United Arab Emirates. As of December 31, 2012, the area licensee for the state of Florida and certain counties in Georgia operated or sub-franchised a total of 152 IHOP restaurants, and the area licensees for the province of British Columbia, Canada operated or sub-franchised a total of 13 IHOP restaurants. As of December 31, 2012, the Company had signed commitments and options from franchisees to build 245 IHOP restaurants over the next 17 years, comprised of 5 restaurants under single-restaurant or non-traditional development agreements, 120 restaurants under multi-restaurant development agreements and 63 restaurants! under in! ternational development agreements. As of December 31, 2012, there were 1,525 domestic IHOP franchise and area license restaurants. During 2012, its franchisees and area licensees opened 40 domestic franchise restaurants and 17 domestic franchise and area license restaurants were closed. As of December 31, 2012, there were 44 international IHOP franchise and area license restaurants. During 2012, its franchisees opened eight international franchise restaurants and no restaurants were closed.

The Company competes with Chili's, T.G.I. Friday's, Ruby Tuesday's, Denny's, Cracker Barrel Old Country Store and Bob Evans Restaurants.

Advisors' Opinion:

• [By Caroline Bennett]

  Restaurant company DineEquity (NYSE: DIN  ) has announced plans to keep its dividend steady this quarter at $0.75 per share of common stock. This is the same amount the company has paid its shareholders since March 2013, after upping the payout by $0.50, from $0.25 per share.

• [By Rick Aristotle Munarriz]

  Brinker International Casual dining stocks aren't dead as an investment category. Investors just need to know where the tasty treats can be found on the menu. Chili's Grill & Bar parent Brinker International (EAT) moved higher on Wednesday after reporting better than expected quarterly results. Company sales climbed higher, fueled by a 0.3 percent increase in comparable-restaurant sales. Its international locations fared even better. Some casual dining chains that are bucking the general downward trend and posting positive comps are doing so by discounting aggressively to keep patrons coming. But that's not Chili's game at all. Net margins actually expanded nicely at Brinker, with adjusted earnings per share climbing 18 percent during its fiscal second quarter. The 1,557-unit Chili's chain is doing just fine. But the same can't be said about its competition. Red Ink, Ruby Ink Seeing shares of Brinker open 8 percent higher after posting better than expected quarterly results may be painful for investors in Ruby Tuesday (RT) or Red Lobster parent Darden Restaurants (DRI). Those two stocks took a hit the last time they offered up fresh financials. Ruby Tuesday and Red Lobster are falling out of favor with the hungry, with comps plunging 7.8 percent and 4.5 percent respectively in their latest quarters. Both companies have fallen short of Wall Street profit targets in each of their past three quarters. Brinker, on the other hand, has now surpassed bottom-line expectations in three of the past four quarters. With Ruby Tuesday's profits turning to losses and Darden so disillusioned with Red Lobster that it's looking to sell it or spin it off, it's easy to see why savvy investors looking at the casual dining sector are turning to Brinker. The stock hit a new 52-week high on Wednesday, and this could be just the beginning. Tech is the Secret Ingredient Why is Chili's succeeding at a time when profits at many of its peers are receding? Barron's argued earl

• [By Rich Duprey]

  Restaurant chain operator DineEquity (NYSE: DIN  ) will pay a second-quarter dividend of $0.75 per share, the same rate it paid last quarter after it reinstated its dividend, the company announced yesterday.

• [By Rick Aristotle Munarriz]

  Alamy Companies can make brilliant moves, but there are also times when things don't work out quite as planned. From an automaker committing to add thousands of high-paying jobs in the new year to a home craft icon's payroll going the other way, here's a rundown of the week's most interesting moves in the business world. Sysco (SYY) -- Winner Leave it to a food company to eat the competition. Sysco is the country's largest food service company, providing restaurants, schools, and other institutions with their edibles. It's about to get bigger. Sysco kicked off the week by announcing a deal valued at $3.5 billion in cash and stock for its nearest competitor, US Foods. There isn't likely to be a lot of regulatory hassle over the combination. This is a highly fragmented sector, with Sysco commanding just 18 percent of the overall market. It will be 27 percent after completing the deal. Given the nature of the business, there are advantages of being big, and Sysco is about to get substantially bigger at a reasonable price relative to its own valuation. lululemon athletica (LULU) -- Loser Shares of Lululemon stumbled 12 percent on Thursday after the retailer of high-end yoga apparel offered up a gloomy outlook for the holiday quarter. The Canadian chain spooked investors by forecasting flat comparable-store sales for the period. Its profit guidance also fell short of expectations. For a hot growth stock like Lululemon, proving ordinary after years of heady store-level sales growth isn't enough. Ford (F) -- Winner Things have been going well for automakers, and things are about to get even better for Ford. The popular automaker revealed in a presentation on Thursday that it plans to hire 3,000 salaried workers in 2014 -- and we're not talking about low-paying jobs here. Most of these new jobs will be in engineering and product development. Ford is also opening three plants overseas, but the stateside job creation will be significant. Martha Stewart Living Om

Hot Restaurant Companies To Own For 2015: Ignite Restaurant Group Inc (IRG)

Ignite Restaurant Group, Inc., incorporated on February 4, 2002, operates two restaurant brands, Joe's Crab Shack (Joe's) and Brick House Tavern + Tap (Brick House). The Company�� Joe's Crab Shack and Brick House Tavern + Tap operate in a diverse set of markets across the United States. Joe's Crab Shack is a national chain of casual seafood restaurants serving a variety of seafood items, with an emphasis on crab. Brick House Tavern + Tap is a casual restaurant brand that provides guests a gastro pub experience by offering a blend of menu items. As of December 31, 2012, the Company owned and operated 144 restaurants in 33 states. In September 2013, Ignite Restaurant Group Inc announced the opening of its newest Joe's Crab Shack restaurant, located in Newark, New Jersey.

Joe's Crab Shack

The Company�� Joe's Crab Shack offers an outdoor patio for guests to enjoy eating and drinking and a children's playground. Joe's also has many locations that are located on waterfront property. Interior design elements include a nautical, vacation theme to invoke memories of beach vacations and a genuine crab shack experience. Joe's Crab Shack restaurants have over 200 seats. Many of the Company�� restaurants also include a small gift shop where guests can purchase souvenirs to commemorate their dining experience. Joe's Crab Shack also leverages its crab-forward menu with other crab items, including Made-From-Scratch Crab Cakes, Crab Nachos and Crazy-Good Crab Dip. In addition to its core crab-focused menu, Joe's also offers a range of entrees featuring a variety of seafood, including the Get Stuffed Snapper, Surf 'N Turf Burger and The Big Hook Up, as well as a range of traditional seafood entrees like the Fisherman's Platter. Joe's also offers several out of water options, such as Pan Fried Cheesy Chicken and Whiskey Smoked Ribs. In addition, alcoholic beverages include the Shark Bite, Category 5 Hurricane and Mason Jar cocktails emerging as guests' top choices. Joe's menu inc! ludes more than 29 items made with either Queen, Snow, Dungeness or King Crabs sourced from government regulated and sustainable fisheries. Its menu offers 14 appetizers, including Made-From-Scratch Crab Cakes, Crab Nachos and Crazy-Good Crab Dip, and over 50 entrees, including Steampots, Crab in a Bucket, Skillet Paella, Stuffed Snapper and out of water options like Whiskey Smoked Ribs.

Brick House Tavern + Tap

The Company�� Brick House's interior decor includes custom lighting, dark mahogany woods, open sight lines, high definition television (HD TVs), and an inviting fireplace. In addition to a traditional dining room and bar area, Brick House also offers large communal tables and a section of leather recliners positioned in front of large HD TVs, where guests receive their own TV tray for dining. Outdoor seating is also available on the patio or around an open fire pit at nearly all locations. Both food and beverages are served by personable and engaging service staff. The typical Brick House restaurant is approximately 8,500 square feet and averages approximately 250 seats, which includes both traditional tables and seating options. Brick House offers its guests a selection of contemporary tavern food. Brick House's menu includes 17 appetizers and over 53 entrees. Handcrafted appetizers include Deviled Eggs, Meatloaf Sliders, Brick Pizza, Meat and Cheese Board and Fried Stuffed Olives. Brick House offers an array of burgers, including The Kobe, which is hand formed from American Wagyu beef. Guests can also choose from a selection of homemade entrees, such as Drunken Chops, BBQ Baby Backs, Chicken & Waffles, and its Prime Rib Sandwich. In addition, Brick House's Brick Burgers, include the Gun Show Burger and the Black & Bleu Burger. Brick House's beverage selection includes imported and domestic beers along with hand-pulled cask beer. All Brick House restaurants have a bar that supports a variety of liquor drinks, wine and beer cocktails like the Shandy and Bee Sting, a! s well as! specialty cocktails like the Dark & Stormy, Moscow Mule and The Zombie.

The Company competes with Red Lobster, Bonefish Grill, Landry's Seafood, Bubba Gump Shrimp Company, BJ's Restaurants, Yard House, Cheesecake Factory, Bravo Brio and Buffalo Wild Wings, Applebee's, Chili's, T.G.I. Friday's, Texas Roadhouse and Outback Steakhouse.

Advisors' Opinion:

• [By Victor Selva]

  The firm is currently Zacks Rank # 3 - Hold, and it also has a longer-term recommendation of ��nderperfom.��For investors looking for a Zacks Rank # 1 ��Strong Buy, Ignite Restaurant Group Inc. (IRG) and The Wendy's Company (WEN) could be the options.

• [By Seth Jayson]

  Margins matter. The more Ignite Restaurant Group (Nasdaq: IRG  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Ignite Restaurant Group's competitive position could be.

Hot Restaurant Companies To Own For 2015: Richoux Group PLC (RIC)

Richoux Group plc is a United Kingdom-based company engaged in the operation of restaurants. The Company has three segments: Richoux, Villagio Zippers and Dean�� Diner. Richoux restaurants operate in the areas of central London. The restaurants are open all day for breakfast, lunch, afternoon tea and dinner. The restaurants also offers patisserie. Zippers is a spacious, stylish and contemporary restaurant with a relaxed ambience. Dean's Diner offers a range of freshly prepared dishes. Villagio is a modern local Italian restaurant with a menu suitable for the whole family. The Company�� subsidiaries include Newultra Limited and Richoux Limited. Advisors' Opinion:

• [By Roberto Pedone]

  Richmont Mines (RIC) engages in the mining, exploration and development of mining properties, principally gold in Canada. This stock closed up 2.4% to $1.68 in Tuesday's trading session.

  Tuesday's Range: $1.61-$1.68
  
  52-Week Range: $1.31-$5.50
  
  Tuesday's Volume: 76,000
  
  Three-Month Average Volume: 101,786

  From a technical perspective, RIC bounced higher here right off its 50-day moving average of $1.59 with decent upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $1.31 to its recent high of $1.71. During that move, shares of RIC have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RIC within range of triggering a near-term breakout trade. That trade will hit if RIC manages to take out some near-term overhead resistance at $1.71 to $1.80 with high volume.

  Traders should now look for long-biased trades in RIC as long as it's trending above its 50-day at $1.59 or above more near-term support levels at $1.50 to $1.44 and then once it sustains a move or close above those breakout levels with volume that hits near or above 101,786 shares. If that breakout triggers soon, then RIC will set up to re-test or possibly take out its next major overhead resistance levels at $2.10 to $2.20. Any high-volume move above those levels will then give RIC a chance to tag its 200-day moving average at $2.48.

Hot Restaurant Companies To Own For 2015: Planet Platinum Ltd (PPN)

Planet Platinum Limited is an Australia-based company engaged in the operation of Showgirls Bar 20 and the on-going rental of property in Elsternwick. The Company operates in two segments: hospitality and entertainment and property rental businesses. The Company�� hospitality and entertainment segment comprises operations of Showgirls Bar 20 in Melbourne and is engaged in the nightclub through the provision of beverages and adult entertainment. Property segment comprise maintaining of rental property at Home Street, Elsternwick. The Company continues to receive lease rentals from its Home Street property. The investment property is located at 12 Home Street, Elsternwick Victoria. Advisors' Opinion:

• [By Tabitha Jean Naylor]

  Americans consume a lot of chicken. It estimated that Americans consume about 81 pounds of poultry per year, per capita. With there being upwards of 310 million people living in the United States, it is no wonder why poultry production is big business. Two of the biggest names in poultry production are Tyson Foods (NYSE: TSN) and Pilgrim's Pride (NASDAQ: PPN).

Recession Taught Millennials Importance of Saving Now

Just as the Great Depression informed an earlier generation, the recession of 2008 has taught millennials a valuable lesson.

Eighty percent of millennials in a new survey by Wells Fargo said the recession of 2008 had convinced them they had to save “now” to “survive” economic difficulties later on.

But many are not are able to act on this lesson. More than half of millennials surveyed, 56%, said they were “living paycheck to paycheck,” and 40% said their debt was "overwhelming."

Still, 55% of millennials said they were saving for retirement: 61% of men and 50% of women. Well Fargo said the difference in saving rates may have to do with the fact that millennial men reported median annual household income of $77,000, while women had median income of $56,000.

For college-educated millennials, median annual household income is reported to be $83,000 for men and $63,000 for women.

About half of all millennials reported satisfaction with their savings at this point in their lives, but the gender discrepancy was pronounced, with 58% of men feeling satisfied, compared with only 41% of women.

“The silver lining of the recession that started over five years ago is that a majority of millennials get that saving is a necessity and even equate it with ‘surviving’ tough times,” Karen Wimbish, Wells Fargo’s director of retail retirement, said in a statement.

“But millennial women are starting out their working lives making far less than men and, as a consequence, are saving less and feeling less contentment at the start of their working lives.”

Harris Poll conducted the online survey on behalf of the Wells Fargo Wealth, Brokerage, and Retirement between April 15 and May 2. Survey respondents included 1,639 millennials age 22 to 33, as well as 1,529 baby boomers ages 49 to 59. The Debt Crunch

Forty-two percent of millennials said debt was their biggest financial concern at present, and 40% said their debt was “overwhelming,” versus 23% of baby boomers who felt the same.

Forty-five percent of millennial women said they felt overwhelmed by debt, whereas 33% of millennial men felt that way.

Twenty-nine percent of millennials said their number one financial concern after paying day-to-day bills was paying off student loans. Forty-four percent of boomers cited saving for retirement as their top financial concern.

Despite the student loan albatross, 76% of millennials said their college education had been worth the cost.

Millennials reported the following breakdown, on average, of their debts as a percentage of monthly pay:

Among all millennials, 47% were allocating half or more of their paychecks to these types of debt.

Retirement and Saving

Gender differences popped up again in questions about progress in accumulating investable assets. College-educated millennial men reported median household investable assets of $58,500, while college-educated millennial women reported $31,400.

Of millennials who had started saving, 46% were saving between 1% and 5% of their income for retirement, 31% were saving 6% to 10%, and 18% were saving more than 10%. Fifty-three percent of women reported saving between 1% and 5%, versus 39% of men.

About a third of both women and men were saving at the 6% to 10% level. And 26% of millennial men were saving at a rate greater than 10%, while only 9% of women were doing so.

Seventy-two percent of millennials were confident they would be able to save enough to create the lifestyle they wanted in the future, but only 63% of women expressed confidence, compared with 80% of men.

Of the 45% of millennials who were not saving yet, 84% said this was because they did not have enough money to save at present, with no difference between genders.

Wells Fargo said that, perhaps as a way to lock down a savings discipline, 56% of boomers and 55% of millennials favored a mandatory retirement savings policy.

Eighty-four percent of millennial men and 70% of women expressed confidence that they had the knowledge to address any financial problems in the next 10 years.

Despite their confidence, 40% of millennials said they had “no idea” what amount would be necessary to meet their retirement needs. Thirty-one percent said would need less than $1 million, while 15% said they would need $1 million to $2 million.

In contrast, 54% of boomers couldn’t estimate how much they would need in retirement, with 12% saying $500,000 to $1 million and 12% saying $1 million to $2 million.

Confidence in the Stock Market

Majorities of both millennials and boomers said the stock market was the best place to invest for retirement.

However, only half of millennial women versus two-thirds of millennial men agreed that the stock market was the best place to invest for retirement.

A quarter of those respondents who were saving for retirement weren’t sure how much of their savings were invested in stocks or mutual funds.

About a fifth of millennials currently saving for retirement said they were invested 100% in stocks or mutual funds, while a quarter said they were in a range of 50% to 75% in stocks or mutual funds. About a third said they were invested 25% or less in stocks or mutual funds.

As to whom they trusted for credible information to help them make financial decisions, 57% of millennials cited family, 54% financial institutions and 50% personal finance experts/personalities.

For their part, 57% of boomers trusted personal finance experts/personalities, 45% financial institutions and 40% family.

Although 55% of millennials didn’t think they had enough money to have a financial advisor, 16% were using a paid professional.

Fifty-nine percent of respondents who didn’t use a paid advisor said they would prefer a “seasoned” one, while 26% would look for an advisor closer to their age who would potentially better understand their financial goals.

Millennial Optimism

Millennials felt confident in many aspects of their personal lives, with 69% saying they felt better off financially than others in their own generation. In addition, 68% expected their standard of living before retirement to be better than their parents'.

Eighty-four percent of millennials feel they had the skills to succeed in their career goals when they are 40, and 78% believed that if they lost their job they could find a comparable one within a year.

Women and men millennials felt differently about building their careers, with one in five millennial women “worried” about their ability to build a career in their desired profession versus one in 10 millennial men.

---

Check out 7 Things Advisors Must Know to Win Young Male Clients on ThinkAdvisor.

 

What the Numbers Say About Obama's Health Care Law

Jon Elswick/AP WASHINGTON -- The government churns out tons of numbers, but here's one you won't see: 0.0002. That's the percentage of estimated online visitors to HealthCare.gov who actually signed up for coverage the first day. Altogether, that's six people out of just over 3 million. Not all the figures associated with the rollout of President Barack Obama's health care law are so ridiculously dreary. Three million tells a happier tale, too. That's how many young adults have been able to get coverage under their parents' plan thanks to the law's rule that people up to age 26 can do so. A look at the heath care law's early going, by the numbers:

Stocks Hitting 52-Week Lows

Enzon Pharmaceuticals (NASDAQ: ENZN) shares tumbled 28.28% to reach a new 52-week low of $1.15. Enzon Pharmaceuticals shares have dropped 63.30% over the past 52 weeks, while the S&P 500 index has gained 28.75% in the same period.

Silvercorp Metals (NYSE: SVM) shares fell 1.30% to touch a new 52-week low of $2.19. Silvercorp's PEG ratio is 5.18.

Bancolombia SA (NYSE: CIB) shares touched a new 52-week low of $47.94. Bancolombia's trailing-twelve-month ROA is 1.45%.

Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Your Son The Lawyer Should Not Be Your Exchange Facilitator

It is very sad to see someone getting hammered by two non-recognition provisions in the same case, but that is what happened to Frank Blangiardo in a recent Tax Court decision.  Code Section 1031  (like-kind exchange) would have helped him avoid recognition of a large capital gain, but a fairly obvious flaw in the execution of his plan threw his transaction outside of the comfortable safe harbor into the howling winds of gain recognition.  Code Section 1041 (Transfer of property between spouses or incident to divorce) worked exactly as it is supposed to, but sadly it worked not for Mr. Blangiardo, but against him.  The magic of Section 1041 had worked for Mr. Blangiardo's ex-spouses, who did not have to recognize gain when he transferred cash to them, but as Rumplestilkin/Mr. Gold is wont to remark – All magic comes with a price

The price of non-recognition for the ex-spouses was that Mr. Blangiardo did not get additional basis in his property for the $580,000 in cash that he had paid his exes.

Who can be your exchange facilitator?

Billoniare Investor Sam Zell Tells Fox Business That Tapering Won’t “Be Over by October”

Billionaire Investor Sam Zell spoke with FOX Business Network's (FBN) Maria Bartiromo during Opening Bell with Maria Bartiromo in a wide ranging interview about the Federal Reserve, the stock market and growth sectors in the economy. Regarding the Federal Reserve, Zell said, "I just do not know whether the Fed has the guts to really complete the taper" and that the tapering won't "be over by October." Zell discussed the stock market saying, "I think the stock market is over exuberant" and "I think that the stock market reflects the fact that there's very little other options" for investors. When asked about international investments Zell said, "We have invested very little in Europe" and that "Mexico is one of the places that we're very excited about." Zell also commented on the commercial real estate market saying, the hot markets are "San Francisco, New York and Seattle. Those three markets have pricing that's very different from the rest of the country."

Excerpts from the interview are below.

On the taper:

"I think that, first of all, I am skeptical about, 'the tapering process.' I just do not know whether the Fed has the guts to really complete the taper."

On whether he thinks the taper will be over by October:

"I do not think it will be over by October. I am encouraging by Stanley Fischer's presence, who I think is a terrific, terrific addition to the Fed. But I do not think that the Fed will be able to end tapering as quickly as they thought. And I think the potential for inflation in a QE2 environment like this is very high. And as far as interest rates are concerned, it is pretty easy to say they are going up when they're at zero today. But it is hard for me to imagine that you are going to have a scenario like this without it having a very negative impact on our country."

On real estate and housing:

"I think that the single family market is, I don't know, benign would be a good way to describe it. The traffic is relatively slow, certainly at the first home buyer level. As a matter of fact, most of the traffic between the top and between the very top and down is down. So, you have a whole issue here of how is our society changing. Are we de-suburbanizing? Is the focus coming back to urban and higher levels of density? And I think that's partially what's going on. I think at the same time, you know…buy a house and it will go up in value has been destroyed… And so the result is the urge to commit is dramatically less and if you add in the deferral and marriage you've taken six or seven years of prime home buying years out of the equation. Now, will it catch up? Remains to be seen, but I think that the Kumbaya, over-enthusiasm about this "massive housing recovery" is nothing more than a good song."

On the reason housing prices are up:

"I think prices are up because there's not a lot of supply and I think that mobility is down and when mobility is down, that means that houses don't move because people are concerned about moving. When you cut it all to the very chase I don't think there's any other explanation than we've created this environment of uncertainty and that environment of uncertainty translates into everything. And it for sure translates into 30-year commitments on mortgages and stuff like that."

On the commercial real estate market:

"I think that the commercial real estate market in the country is relatively speaking bifurcated. Not only is it bifurcated between the coast and the center, but it really has two, maybe three really hot markets: San Francisco, New York and Seattle. Those three markets have pricing that's very different from the rest of the country. It doesn't have occupancy that's different, but it has pricing that's different. And so I think that the spread between the coasts and the center have now gotten to the point where I think it's very similar to in the '70s when American Airlines moved out of New York. The spread between New York and Plano, Texas, was so significant that they were forced to make a decision. I'm not predicting anything of that nature, but the spreads are really getting significant and I think that historically whenever those spreads have widened to this point, it's led to a recovery or improvement in the center as the cost differential forces people to make decisions."

On the stock market:

"I think the stock market is over exuberant… So the answer if you gave me a choice between buying into it or selling into it, I think probably selling into it is probably a better perspective -- a better reflection of my perspective, but I think that the stock market reflects the fact that there's very little other options… And there's no income alternatives and so people continue to increase their exposure and I hope it leads to a happy ending."

On whether he is optimistic we're going to be able to finish QE:

"I'm worried about whether I'm young enough to be around when QE3 ends."

On whether rates will go higher in 2015:

"I don't think I could make an accurate prediction. I think that there are so many factors externally that could dramatically impact the cost of capital, but it's very hard to predict when, but it's pretty easy to predict if. "

On immigration:

"Well, to begin with, I just don't believe that you can have an underclass of 12 million people in this country who, by virtue of a historic event, are noncitizens…They pay no taxes; in many cases they're discriminated against and it's un-American and it's crazy and, yes, we made a mistake many years ago by not patrolling our borders. The world has changed a lot since then, but the reality is 12 million people in the United States are part of our society. We need to incorporate them into our society. We need them to get a direct path to immigration without deportation or some ridiculous Rube Goldberg structure. The answer is these people ought to know that five years from now or whatever it is, if they do. A, B, C, D and E and they stay out of trouble, they can become U.S. citizens. And I think that would be terrific for our country."

On the GOP possibly taking over the Senate in November:

"Well, I don't think there's any question that a change in the Senate would change Washington and would change the way President Obama's last two years in office. President Obama, to the best of my knowledge, has never vetoed a bill and he's never vetoed a bill because the Senate has protected him from having to make public decisions. A Senate controlled by the Republicans would force Obama to veto and, as we know, Obama's a law professor; he doesn't make decisions. He just gives different points of view."

On whether vetoing tax reform would be bad for President Obama's legacy:

"Well, that's somewhat of a challenge, isn't it? I think that would be a great challenge for Mr. Obama to have to deal with…. he'd have to deal with a track record rather than a speech."

On the outlook for the next two years for President Obama and his administration:

"The very things that you've just described are basically the politicization of news events and the answer is that that's not what we elected a president for. This isn't all about spin. I don't know anything about this soldier who came back, but before the President of the United States, you know, started yelling Kumbaya on national television with his parents, he should have known a lot more about the situation and decided whether that was appropriate."

On Europe:

"I think Europe has had an ongoing shortage of demand. I think that, you know, that the highly socialized system doesn't work too well when there's not external demand to make it work. And I think it's -- I think Europe is less dangerous than it was a year or two years ago, but the real question is not will it be OK. The real question is will there be any growth? And it's hard to make a case based on what we're seeing."

On whether there are opportunities for him to invest in Europe:

"I'm sure there's opportunity everywhere at any time. We have invested very little in Europe simply because we think the overall general set of things is not conducive to economic growth."

On Mexico:

"Mexico is one of the places that we're very excited about. We think that it's kind of a, you know, be careful what happens. I think Fukushima is the biggest thing that ever happened to Mexico, meaning that it -- the nuclear accident destroyed the supply chains and resulted in a lot of companies saying we can't be dependent on only one Asian supply chain. And the natural place to create the second one is in Mexico and that's happening as we speak."

On whether he still likes Mexico:

"Oh, yes, very much so. And I also -- we're also very involved in Colombia, which we think is -- has got great prospects. It's a huge beneficiary of the U.S. free trade agreement. It's stable, it's growing. Its oil production has multiplied by five, eight times in the last 10 years. It's got a great future. And the one that's really intriguing, you know, I don't know the answer to, is India."

On whether the World Cup being in Brazil will move the economy:

"Unlikely to move the needle as to the economy. I think the big question is can Brazil afford the costs involved in putting this on and the Olympics within a two-year period of time? I'm not familiar enough to know the economics of it. But it's pretty scary when the overall population is not as supportive of this as the events require… remember when Colorado was awarded the Olympics and turned it down? That was a brilliant move by Colorado because you've got to have complete support in order for something like this to work out."

On investing in Brazil:

"Well, it's changed quite a bit. But I think the biggest change is that when we went into Brazil 10 years ago, we had almost no competition and it was wonderful. And we did great. Then everybody came and joined us and the opportunity dissipated. Then everybody left. And today, although the country is not growing as rapidly as it did, the number of competitors that we have for investing capital in Brazil has shrunk more than the growth of the country. So overall, I think the balance is still a great opportunity. You've just got to have patience."

On inflation:

"Well, I have been very concerned about inflation ever since everybody decided that they shouldn't be concerned about it. I think the big thing with inflation is that, it's a lagging effect. I mean, in the late '70s, when inflation was 13 percent, real estate was flat. Five years later, real estate shot up; it spiked. And it was basically the inflation of the late '70s that pushed up the prices in the early '80s. When you look at food, energy, for some reason or other, we keep putting out these numbers where we say the inflation rate is X less food and energy. That is like saying we are going to live, but we are not going to breathe. Where food and energy are a critical part of everybody's daily life. And when you start looking at disposable income and the impact of rising gasoline prices, the impact of rising food prices, I think these are very real items. And I think that we have much bigger inflation potential risks than I think the Fed really takes into consideration."

On where he sees opportunities to expand through deals:

"I think generally speaking things are pretty pricy right now. And consequently I don't think that any "big" acquisitions are likely in our world."

On opportunities for more growth on energy side:

"Yes. I think that the energy arena in this country is very exciting right now. I think that if I were to place a bet anywhere, it would be on natural gas. And I think the bet on natural gas is the U.S. natural gas slowly approaches the world market as we begin to export natural gas. I think that would be terrific for the energy resources and energy exploration in the United States and I think that having the lowest cost of natural gas in the world is not necessarily a benefit to us."

**CREDIT: FOX BUSINESS NETWORK**

Currently 5.00/512345 Rating: 5.0/5 (2 votes)

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Sell These 5 Toxic Stocks to Avoid a Christmas Crash

BALTIMORE (Stockpickr) -- When everyone's opening presents this Christmas, it's no fun to get coal in your stocking. Likewise, when the market's sitting on new all-time highs this December, it's no fun to see "toxic" names drag your portfolio through the mud.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

So without further ado, let's take a look at five toxic stocks you should be unloading.

Cornerstone OnDemand

First up is Cornerstone OnDemand (CSOD), a $2.57 billion software stock that's been on a tear in 2013. Since the first trading session of the year, CSOD has rallied more than 69%. But the upside could be over thanks to a bearish setup that's been forming in shares.

CSOD is currently forming a descending triangle pattern, a bearish setup that's formed by a horizontal support level below shares at $46 and downtrending resistance to the upside. Basically, as CSOD bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakdown below $46. When that happens, we've got a sell signal.

$46 gets some extra strength as a support level because it acted as resistance for shares on the way up back in the summer. The fact that buyers assigned some extra significance to $46 makes it a level that's worth watching on the way down. The 50-day moving average has been a good proxy for resistance on the way down. If you decide to bet against CSOD from here, that's where you'll want to keep a protective stop.

PNC Financial Services Group

Don't be fooled by the 30% premium on shares that $40 billion bank PNC Financial Services Group (PNC) commands today; the stock is starting to look "toppy" in the long-term here.

PNC is currently forming a double top, a bearish reversal pattern that's formed by two swing highs that top out around the same price level. The sell signal comes on a break below the trough that separates the two tops. For PNC, that support level comes into play at $70.50. If shares slip below that $70.50 level, we've got a sell signal.

Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. Triangles and double tops are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That support level at $20.75 is a price where there had been an excess of demand of shares; in other words, it's a place where buyers were more eager to step in and buy shares at a lower price than sellers were to sell. That's what makes a breakdown below $20.75 so significant. The move would indicate that sellers are finally strong enough to absorb all of the excess demand above that price level. Wait for that trigger before you sell.

There's an abundance of gaps on Pearson's chart. Those gaps, called suspension gaps, are the result of off-hours trading on the London Stock Exchange. The gaps can be ignored from a technical standpoint.

CVR Refining

Meanwhile, it doesn't take an expert technical analyst to figure out what's going on in shares of $3.3 billion refinery stock CVR Refining (CVRR). This stock is showing traders about as simple a setup as it gets: a downtrending channel. With shares testing resistance this month, it's time to unload CVRR.

CVRR's price channel has provided traders with a high-probability range for shares since the middle of the year. Despite the last four attempts at pushing through trendline resistance, shares have been swatted down on each attempt. A move all the way down to support looks likely at this point.

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

 

Follow Jonas on Twitter @JonasElmerraji

 

Madoff finance chief doctored clients’ accounts

NEW YORK — For many Americans, Christmas-to-New Year's week is a time for family and friends. For Bernard Madoff finance director Frank DiPascali, it was time to add phony trading gains or losses to year-end account reports for his Ponzi scheme boss's investment clients and workers.

Testifying Thursday in the conspiracy and fraud trial of five former Madoff co-workers, DiPascali said he performed the year-end financial sleight-of-hand for approximately 15 years. Beneficiaries included Ed and Richard Glantz, Steven Mendelow and Joel Levy — large investment clients who DiPascali said Madoff had guaranteed 17% annual gains, plus large bonus payments.

"In essence, a commission payment for bringing in clients" to Madoff's firm, DiPascali explained.

The year-end account doctoring was so routine that the Madoff lieutenant used a Yiddish term to describe it: to shtup.

The word means to push or shove, but in the U.S., it has become slang for having sex. In DiPascali's parlance, it meant "to put funds into clients' accounts."

The star prosecution witness provided new firsthand details about the inner workings of a scam that produced too-good-to-be-true gains for decades before collapsing in an implosion that stole more than $17.3 billion from celebrities, charities and ordinary investors. Dec. 11 will mark the five-year anniversary of the day Madoff disclosed the teetering scheme, leading to his subsequent guilty plea and 150-year prison term.

Wealthy investors weren't the only beneficiaries of the year-end account doctoring. DiPascali said he gave many Madoff employees an annual bump in their investment returns to ensure their gains were near the average for the firm's overall client base.

The accounts of JoAnn Crupi, a former Madoff aide now among the five co-workers standing trial in Manhattan federal court, got individual attention. Jurors watched on courtroom computer monitors as prosecutors displayed copies of calendar entries in which she wrote apparent referenc! es to financial entries later engineered by DiPascali.

Crupi discussed the annual issue with him, said DiPascali, who testified he put year-end losses as high as $15,000 into her Madoff account.

"She had other gains in other arenas she wanted to offset," said DiPascali, who explained the changes "would reduce the tax consequences of her ordinary income ..."

Separately, DiPascali testified that defendant Annette Bongiorno, Madoff's former executive assistant, helped oversee an effort to reduce the level of risk in an account held by Jeffry Picower, a large investor who faced an audit. The account statement was changed to add hundreds of millions of dollars in non-existent U.S. Treasury holdings, said DiPascali.

He also alleged that Bongiorno was involved in falsified account transaction changes that helped Norman Levy, another major Madoff client, shift hundreds of millions of dollars to two children without being hit with a massive tax bill.

Bongiorno, Crupi and the other defendants maintain they were unaware of the scam and were hoodwinked by Madoff.

Before the trial adjourned for the week, Assistant U.S. Attorney John Zach questioned DiPascali about Madoff's 2004 effort to fool Securities and Exchange Commission investigators who'd raised questions about the firm's operations. At Madoff's instructions, DiPascali said he got two computer programmers now among the defendants to create new false documents for the SEC.

Automakers pledge $26 million to save Detroit's art

The Detroit Institute of Arts' collection is owned by the city and could be part of the bankruptcy. NEW YORK (CNNMoney) The "Big Three" automakers are joining a bid that could help save Detroit's extensive art collection.

Ford, General Motors and Chrysler will donate a combined $26 million as part of a so-called grand bargain that would keep the Detroit Institute of Arts off the auction block, the Institute said Monday.

The grand bargain, an effort by the city, state and other groups to raise $800 million, is central to the city's plan to emerge from bankruptcy later this year. It would pay creditors part of what they are owed and help protect pension benefits for retired city employees.

The art, which includes a Vincent van Gogh self portrait worth up to $150 million, is owned by the city. If the groups are unsuccessful in raising the money, Detroit could be ordered to sell the collection by the bankruptcy judge.

  Super rich store Ferraris in robotic vault

But if the grand bargain is successful, the Institute's art would be moved into a non-profit trust.

Christie's auction house was hired by the city bankruptcy administrator to review the collection and in 2013 valued it at between $452 million and $866 million.

The Detroit Institute of Arts is itself responsible for raising $100 million of the $800 million total. Among other contributions to the total is $200 million recently raised from Michigan state funds.

Institute board chairman Eugene A. Gargaro Jr. said the automakers' contribution will "provide the additional momentum and excitement necessary for the DIA to satisfy its $100 million grand bargain pledge."

Forda (F)nd General Motorswi (GM)ll each contribute $10 million, the Institute said, and Chrysler will chip in $6 million. Half of the GM contribution will come from its foundation. These are the first major corporate donations.

Museum officials originally asked each automaker to give $25 million, a source told CNNMoney in mid-May.

Detroit, once known as the auto capital of the world, is now infamously known as, the largest municipal bankruptcy in U.S. history. Currently it is home to ! just two auto factories: a GM plant and a Chrysler plant.

--CNNMoney's Chris Isidore contributed to this report

When Will Asia Save Gold and Coal?

Economic policy from the United States has been devastating for the price of gold and coal.

As a result, the exchange traded funds for gold, SPDR Gold Shares (NYSE: GLD) and its coal-related counterpart, Market Vectors Coal (NYSE: KOL), are both down by more than 20 percent for 2013. Demand from Asia, the largest consumer of coal and gold, is needed to raise the share prices of Market Vectors Coal and SPDR Gold Shares.

The Obama Administration, meanwhile, has launched what has been called "The War on Coal." Its actions and policies have been directed against the use of coal. That is primarily due to coal being such a dirty fuel source.

Before the election of Obama in 2008, Market Vectors Coal was around $60 a share. Now it is trading around $20.

Gold has plunged in price, due to a Federal Reserve policy that initially had it soaring: quantitative easing. That program entails the Federal Reserve expanding its balance sheet to acquire trillions in Treasury securities and mortgage-backed bonds to keep interest rates low.

At first, gold rose in value as the U.S. dollar fell. But, as detailed in a recent article on Benzinga,  gold has collapsed.

Due to the sheer size of quantitative easing, the gold market cannot handle the massive inflows of capital. There are also reports on how the oil market is absorbing the influx of funds. Much of that has to do with the oil market being so much deeper and so much more liquid than that for the Yellow Metal.

Asia, by far, uses more gold and coal than any other region.

India is the world's largest buyer of gold. China consumes more coal than the rest of the world combined. That will not change anytime soon for either country. There might be a switch, as the Chinese central bank is buying gold with the Finance Minister of India is trying to dissuade such purchases in his country, with little success to date.

China recently announced a series of economic reforms that are very market driven. The main exchange traded fund for China, iShares China Large-Cap (NYSE: FXI), is up more than 10 percent for the last month of market action.

With China as the main economic engine of Asia, and the largest buyer of coal and possibly the biggest consumer of gold in the near future, the demand, and the share prices for SPDR Gold Shares and Market Vector Coal, could be rising soon.

Posted-In: Asia China coal coal prices energy Gold gold prices India metals metals and miningLong Ideas Sector ETFs Emerging Markets Commodities Economics Federal Reserve Markets Trading Ideas ETFs

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Not Even the Xbox One and PS4 Can Make GameStop a Winner

AFP/Getty Images This should be a great time for GameStop (GME). This month's introduction of Sony's (SNE) PlayStation 4 and Microsoft's (MSFT) Xbox One should ring like dinner bells drawing diehard gamers to GameStop's stores. GameStop has assembled a network of 6,488 small-box locations across 15 different countries to cash in on moments like this. It has hosted midnight release parties for both consoles, and with demand exceeding supply, it's a safe bet that a lot of prospective buyers will be circling around their local GameStop locations as new systems arrive throughout the holiday shopping season. However, this may not be as jolly a holiday season as bulls were expecting this time. Blue Christmas GameStop delivered blowout quarterly results on Thursday morning. Sales and earnings clocked in ahead of expectations, but the stock still opened sharply lower because the chain served up a weak profit outlook for the new quarter. It has been seven and eight years, respectively, since Sony and Microsoft updated their consoles, and because of that, the holiday season is supposed to be huge for GameStop. The retailer is forecasting comparable store sales to grow by as much as 9 percent, and that may seem low since these new platforms aren't cheap. The Xbox One sells for $499. The PS4 fetches $100 less, but that price doesn't include the $60 camera accessory gamers will need to buy to get it up to speed with motion-based operations. However, the real shocker in GameStop's report is that it's only looking for a profit between $1.97 a share and $2.14 a share. Even at the high end, we're looking at earnings that are short of the $2.16 a share it earned a year ago and the $2.15 a share that Wall Street was expecting. The two likely culprits for the soft bottom line are weak software and pre-owned sales. And it remains to be seen if either of those two categories will truly bounce back. Thinking Outside of the Xbox Hardware has always been GameStop's lowest margin business. The markups are meager, leaving GameStop to make its profits in new software, as well as its even higher margin business of buying back used games and gear to refurbish and resell at a healthy markup. It seems as if GameStop is being let down on both fronts. Software sales may have been strong in the third quarter -- fueled by the record-breaking success of Take-Two Interactive's (TTWO) "Grand Theft Auto V" -- but they may be holding back now. This shouldn't come as a surprise. The new consoles come with meaty hard drives made for dialing into their digital marketplaces for downloads. Buying physical software at the neighborhood GameStop store is 2012. Sony and Microsoft are also playing up their new consoles' non-gaming entertainment features -- primarily how they play nice with live TV and streaming content. A lot of system buyers may be spending more time using them for surfing the Internet or watching videos than they are playing games. The outlook gets even more ominous for GameStop's vital resale business. The PS4 and Xbox One incorporate new chip architectures that make the systems incompatible with older games. In other words, gamers may be reluctant to trade in their Xbox 360, PS3, and related titles, because they'll need them if they want to play the games that they own. Sony and Microsoft plan on offering cloud-based solutions, but nothing beats having discs that don't eat up storage or Internet bandwidth. We have been seeing GameStop's pre-owned business starting to falter in recent quarters. Even in the otherwise awesome third quarter, with software and hardware sales soaring 43 percent and 15 percent respectively, GameStop's pre-owned revenue slipped 2 percent. Those who figured that there would be a spike in trade-ins as gamers saved up for the new costly systems were wrong. This leaves GameStop in an uncomfortable spot at a time when it should be roaring. The stock had more than doubled in anticipation of how it would cash in on the new consoles this year. Now, we're told that GameStop won't earn as much this holiday shopping season as it did a year earlier when the stock was trading for half the price. With gamers bypassing disc-based software and refusing to buy or sell used games and gear that's being rendered obsolete by the Xbox One and PS4, maybe these new systems weren't what GameStop investors were hoping for.