Sunday, March 31, 2013

My Drunk Kitchen sobers up as Hannah Hart gets ready to hit the road - 01:30 PM

(gigaom.com) -- I’m in a Burbank studio filled with boxes of T-shirts, because Hannah Hart, the YouTube star who first rose to fame with her celebrated My Drunk Kitchen series, has been taking a break from every creator’s favorite part of the crowd-funding experience — packaging up the perks — for an interview.

But our interview is now technically over, and even though Hart’s arm is in a sling from a dance contest-related injury, she’s right back at work.

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  • My Drunk Kitchen sobers up as Hannah Hart gets ready to hit the road
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“You want to stay and help?” she asks, and moments later I find myself affixing return address labels to envelopes, passing them down the assembly line to be stuffed with t-shirts.

Like at least 10,300 people before me, I’ve just discovered, it’s hard to say no to Hart.

The T-shirts, thank you notes and “E-Polygamy Certificates” we’re packaging up are bound for those who helped Hart raise over $222,000 on Indiegogo for an international tour bringing her face to face with the fans.

Beginning this April, Hart and a two-to-three person production crew will board an RV and begin traveling from Los Angeles to Canada, cooking in the kitchens of strangers, volunteering at food banks and in general spreading the Hart brand from coast to coast.

The inspiration for the tour, Hart says, came directly from the audience: “Ever since My Drunk Kitchen started, the community of ‘Hartosexuals’ — the audience, fans of the show — have said, ‘oh, I want you to come and cook in my kitchen, dude!’ Or, ‘you should do a travel show — I’d watch you do Anthony Bourdain any time!’.”

While that audience might have come as a result of Hart’s breakout work as the star of her series My Drunk Kitchen, this is not the My Drunk Kitchen Tour — instead, all information can be found at HelloHarto.com. That’s because this is the second phase of Hart’s web video journey.

The first phase began in 2011, when Hart got drunk at home one night and made a grilled cheese sandwich; the funny free spirit cooking sauces while sauced quickly grew a fanbase and was picked up by The Collective for representation.

But while My Drunk Kitchen has been a web hit, it has never had sponsorship, for one specific reason according to Hart: The word drunk, which scares off potential brands.

While MDK is only one part of Hart’s current YouTube output, it’s still the show she’s known best for — hence the new emphasis on the Harto brand. “The dedicated community who watches the the channel — they are the ones who know that it’s a Harto channel. The outside world thinks it’s a My Drunk Kitchen channel,” Hart says.

How do you go about this sort of rebranding? “Slow and steady wins the race,” she says. “I’m doing an entire tour around the world called Hello Harto.”

In recent months, Hart has spearheaded volunteer efforts at Los Angeles local food banks, bringing in fans to help organizations like the Los Angeles Food Bank. It’s something she wants to continue on the tour — however, thanks to the “D-word,” they’ve even had difficulties finding food banks to work with.

But during my initial interview with Hart, the production team finds out that the food bank network Feeding America has agreed to make introductions to local food banks along their tour stops — but with the stipulation, according to tour producer Pearl Wible, that Hello Harto and My Drunk Kitchen are separate entities.

“That makes it so much easier for us, because instead of having to explain to all these separate people what we’re about, we can work with organizations that will hoepfully be excited to work with us,” Hart said.

The Hello Harto tour is a clear turning point for Hart and her online presence. Hart says that while “My Drunk Kitchen will always be My Drunk Kitchen. It’s a funny joke,” the Harto brand is much bigger than that.

“Does this mean that in two years, My Drunk Kitchen will be a footnote on your Wikipedia page?” I ask.

“Absolutely,” Hart says, certain. “100 percent.”

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Could Waste Management Be a Bufett Buyout?

After Warren Buffett shocked the world with his Heinz buyout, investors everywhere are wondering the same thing: What's next? He's made it clear that his elephant gun is still loaded and Berkshire Hathaway still has a lot of cash to sport.�

In the following video, Jeremy Phillips and Austin Smith talk about one company that could fit well into his wheelhouse: Waste Management (NYSE: WM  ) . The company has several typical Buffett traits, including a wide moat, a great dividend, and reliable free cash flow generation. Though Waste Management never appears cheap by traditional metrics, Buffett's leverage could mean a sweeter deal than most retail investors could muster.

Even if the company isn't a buyout target, investors could still do well owning shares of Waste Management outright.

But don't just take our word for it. If you're wondering whether this dividend dynamo is a buy today, you should read The Motley Fool's premium analyst report�on the company today. Just click here now for access.

Holiday Sale: SPY Puts On The Clearance Rack

If you are closet bear who hasn't yet figured out how to express your skepticism, or a even a cautious bull who hasn't had time in this holiday season to get some hedges in place, boy do I have good news for you. Right now, you can get many put options on SPY at the lowest prices since summer. The index typically used to gauge interest in SPY Puts, the VIX, hasn't been this low since July.

It's possible that the VIX is telling us it's time to get bullish. But none of the other "risk assets" seem to be in agreement with VIX. Have a look at the following collection of comparative charts, each is some risk asset divided by SPY over the last year. When it's rising, it's outperforming SPY, when it's falling, SPY is outperforming the asset. In theory, each of these should be outperforming SPY in an environment where risk is embraced.

We'll start with Emerging markets using EEM (iShares MSCI Emerging Markets Index Fund ETF). EEM:SPY has been warning that global growth is stalling in "emerging" economies since late summer.

click to enlarge

In fact, the entire rest of the world has sold off relative to SPY in recent months, as shown using VT (Vangaurd Total World Stock EFF) in VT:SPY.

So the U.S. is the place to be, right? Yes, that has definitely been the case in 2011. However, it's worth noting that in recent months, the "riskier" factions of the U.S. markets have been underperforming.

Some large cap tech companies have recently warned that growth appears to be slowing. So perhaps it's not surprising that QQQ (Powershares Nasdaq) has underperformed SPY dramatically in recent months.

IWM (iShares Russell 2000 Index) has failed to gain traction against SPY in recent months as money has flowed in defensive sectors like Utilities and Healthcare.

Commodities have also underperformed in recent months as the US Dollar has strengthened. DBC (Powershares DB Commodity Index) has slid dramatically against SPY since September, accelerating downward in December.

Where we've seen strength relative to the S&P is Treasuries. TLT (iShares Barclays 20+ Year Treasury Bond ETF) has maintained the relative strength that started in August. That charts warns of deflation, not Inflation.

What I gather from the ratios above is that for most of the investment world, risk is off. Which takes me back to the idea of SPY puts. The VIX, which tracks volatility expectation for the S&P, has fallen off a cliff in recent weeks. You would think risk assets would be flying given how the VIX has collapsed in December.

But in the charts above, we showed that they are collapsing, not surging. I believe this disconnect will not go on indefinitely. With SPY puts selling off through the month of December, often slipping in price on days when the S&P is also in the red, they have become a relatively cheap way to hedge long positions or express bearishness.

Perhaps the market has decided systemic risk is off the table in Europe, or that the U.S. economy can decouple from slowing growth in the rest of the world. I don't know why Mr. Market has brought down the price of SPY puts so dramatically, but I know that the complacency evidenced by the current VIX reading, along with weakness in risk assets relative to SPY (in the charts above), makes me think Santa has put SPY puts on the clearance rack just for me.

Disclosure: I am long SH. I own SPY puts.

Top Stocks To Buy For 3/31/2013-3

Petrohawk Energy Corporation (NYSE:HK) witnessed volume of 35.87 million shares during last trade however it holds an average trading capacity of 19.78 million shares. HK last trade opened at $38.31 reached intraday low of $38.29 and went +0.18% up to close at $38.31.

HK has a market capitalization $11.64 billion and an enterprise value at $14.60 billion. Trailing twelve months price to sales ratio of the stock was 7.05 while price to book ratio in most recent quarter was 3.28. In profitability ratios, net profit margin in past twelve months appeared at 1.90% whereas operating profit margin for the same period at 12.22%.

The company made a return on asset of 1.63% in past twelve months and return on equity of 2.26% for similar period. In the period of trailing 12 months it generated revenue amounted to $1.65 billion gaining $5.49 revenue per share. Its year over year, quarterly growth of revenue was 12.30%.

According to preceding quarter balance sheet results, the company had $1.54 million cash in hand making cash per share at 0.01. The total of $2.99 billion debt was there putting a total debt to equity ratio 84.13. Moreover its current ratio according to same quarter results was 0.54 and book value per share was 11.70.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 19.95% where the stock current price exhibited up beat from its 50 day moving average price of $27.07 and remained above from its 200 Day Moving Average price of $23.78.

HK holds 303.79 million outstanding shares with 275.54 million floating shares where insider possessed 2.71% and institutions kept 84.90%.

Top Stocks For 3/31/2013-5

Cord Blood America, Inc. (OTC Bulletin Board:CBAI.ob), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, has purchased controlling interest, 50.1 percent, of Biocordcell Argentina S.A. (BioCells, Inc.).

BioCells is headquartered in Argentina, with affiliates under development in Peru, Colombia, Bolivia, Panama and Puerto Rico, and recent expansion into Uruguay and Paraguay. Purchase price for the profitable stem cell storage company, the second largest in Argentina, depends on achieving earn out targets for net profit over the next two years.

BioCells is profitable, with annual revenues in 2009 of $1.2 million (U.S.), and 12 locations throughout that nation of 40 million people that saves umbilical cord blood stem cells at a rate even higher than in the U.S. “This is an historic day for Cord Blood America, our loyal investors and stakeholders. We will not rest until we meet our goal of becoming the world’s premier stem cell storage company,” Mr. Schissler said.

Cord Blood America is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders.

BSD Medical Corporation (NASDAQ: BSDM) reports that a patent has been issued to the Company for a new class of heat therapy applicators (antennas). The United States (US) patent office issued the new patent, �Transparent electromagnetic applicator and hyperthermia treatment method,� to BSD for a unique design for antennas that provides significant benefits for heat therapy applications. These novel antennas have a transparent surface, which provides the significant advantage of allowing the physician to see the skin surface through the contacting antenna during a treatment. The unique design also utilizes a significantly smaller antenna that can be combined in groups to utilize BSD�s synchronous phased array technology, which was developed by the Company to improve the delivery of heat therapy by directly targeting heating to the tumor. There are five different antenna types and sizes that are part of this new class of antenna, which allows BSD to combine up to 24 antennas into a single applicator and utilize sophisticated heating pattern steering to shape the energy field to the individual tumor. BSD has been designing heat therapy systems for 32 years and has obtained several pioneering patents for the devices, techniques and methodology used in heat therapy.

BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radiofrequency (RF) and microwave energy. BSD�s product lines include both hyperthermia and ablation treatment systems. BSD�s hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. BSD�s microwave ablation system has been developed as a stand-alone therapy to employ precision-guided microwave energy to ablate (destroy) soft tissue. The Company has developed extensive intellectual property, multiple products in the market and well established distribution in the United States, Europe and Asia. Certain of the Company�s products have received regulatory approvals and clearances in the United States, Europe and China.

Dell highlights strong session for tech stocks

SAN FRANCISCO (MarketWatch) � Tech stocks started February on an upbeat note Friday, with Dell Inc. among the advancers on reports that the PC giant may be on the verge of a deal to go private.

Netflix Inc. NFLX �also got a lot of attention due to its latest move to shake up the TV-viewing market.

Also contributing to investors� bullish sentiment, Labor Department data showed the U.S. economy added more jobs in 2012 than had been earlier estimated. See: U.S. adds 157,000 jobs as past data revised higher

Dell DELL �ended the day up by almost 3%, at $13.63 a share, after media reports said the PC company could announce as early as Monday that it has made a deal to go private. Chief Executive Michael Dell will reportedly own a majority stake in the company, with investment firm Silver Lake Partners and Microsoft Corp. MSFT �signing on as minority partners.

/quotes/zigman/27952/quotes/nls/dell DELL 13.63, +0.39, +2.95% /quotes/zigman/87598/quotes/nls/nflx NFLX 164.80, -0.44, -0.27%

However, Netflix NFLX �shares, which had be in positive territory, ended the day with a loss of 44 cents a share at $164.80. The video-streaming company debuted all 13 episodes of the new series �House of Cards� starring Kevin Spacey. Netflix is one of the producers of the show, among the first original series made solely for Netflix. See The Tell blog about how Netflix is using "House of Cards" to build a new model for watching TV.

Netflix also said the first episode of �House of Cards� will be available to non-subscribers for the next month.

Another big gainer was Audience Inc. ADNC , which rose more than 15%, to close at $14.10. Late Thursday, the audio-technology company said it expects to report first-quarter earnings of 15 cents to 16 cents a share, on revenue of $43 million to $46 million, well ahead of analysts� respective forecasts of a penny a share and $31.8 million.

PMC-Sierra Inc. PMCS �shares also surged, rising 13% to $6.53 after the electronics contract manufacturer reported better-than-expected earnings and sales for the fourth quarter late Thursday.

NetSuite Inc. N �turned its back on its early gains and fell by 1.5%, to close at $69.14 a day after the cloud-based software company reported better-than-expected fourth-quarter results.

Amazon.com Inc. AMZN �shares slipped by 50 cents to close at $265. The online retailer announced a deal to be the exclusive online video-streaming source for the third season of the PBS series �Downton Abbey� beginning June 18, and will be the only site for any seasons of the show later this year.

The Nasdaq Composite Index COMP �climbed almost 37 points, or 1.2%, to close at 3,179, while the Philadelphia Semiconductor Index SOX �rose almost 2% and the Morgan Stanley High Tech 35 Index MSH �gained 1.2%.

Logitech Shares — 3 Pros, 3 Cons

Back in September, Logitech (NASDAQ:LOGI) cut its full-year guidance for the third time. The new estimate came to $2.4 billion, which was $100 million lower than the prior forecast. Operating income would be about $90 million, compared to the previous forecast of $143 million.

But Logitech CEO Guerrino De Luca said this would be the final change, and he even apologized to investors. However, it was not enough to bolster confidence — LOGI shares hit a low of $7.72 after sitting around almost $20 in March.

Yet by setting the bar fairly low, Logitech actually was able to show some relative strength in the fiscal second quarter. The company last week reported a 1% increase in revenues to $589 million and earnings of $17 million, down from $41 million.

It was enough to generate optimism with investors, with Logitech stock spiking 17.3% on the news. On Monday, the stock was trading near the $10 mark. So might things be getting better? More importantly, is LOGI stock worth buying? To see, let�s take a look at the pros and cons:

Pros

Leader in peripherals. Founded in 1981, Logitech was one of the first companies to realize the huge opportunity of the PC revolution. Logitech originally developed staples like traditional keyboards and mice, but it has since expanded into other categories like gaming, wireless devices (including keyboards and mice) and home entertainment.

China story. This has been a bright spot for Logitech. The company has made substantial investments in the country, and on the earnings conference call, De Luca indicated Chinese growth should remain fairly strong in the coming quarters.

LifeSize. This product line provides for HD video used in conference calls and meetings. It compares favorably to more expensive offerings, such as from Cisco (NASDAQ:CSCO). In the latest quarter, the LifeSize segment posted a 19% growth rate.

Cons

Product issues. Despite its success with LifeSize, Logitech�s product offerings have been mostly uninspiring. A notable example is the company�s Revue set-top box for Google�s (NASDAQ:GOOG) Internet TV. It has been a dud. Perhaps the weakest part of the product mix is in the mid-range category, which is important because a key aspect of Logitech�s sales strategy is to get customers to upgrade their low-priced offerings.

Secular trends. Apple�s (NASDAQ:AAPL) iPad could have a disruptive impact on Logitech�s business. As consumers move to tablets, there might be less demand for peripherals.

Competition. It’s intense, and thus Logitech often deals with extreme pricing pressures. Some of the company’s rivals include Microsoft (NASDAQ:MSFT), Hewlett-Packard (NYSE:HPQ), Bose and Sony (NYSE:SNE).

Verdict

To get back on track, Logitech needs to start building great products again. The good news is that De Luca understands this and has been reorganizing product development teams.

However, the process will take time. And in the meantime, Logitech will need to deal with the intense competition as well as the shift towards tablets. So for investors looking at LOGI stock, the cons outweigh the pros for now.

Tom Taulli runs the InvestorPlace blog �IPOPlaybook,� a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of �All About Short Selling� and �All About Commodities.� Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned stocks.

Saturday, March 30, 2013

SEC Votes to Give Shareholders Authority to Nominate Directors

The Securities and Exchange Commission (SEC) voted Wednesday, August 25, to give shareholders a greater say in nominating corporate boards of directors at publicly-traded companies starting in 2011. The agency passed the controversial rule by a 3-2 vote, with both Republican commissioners casting dissenting votes.

The SEC proposed the rules last year, and since then has received more than 600 comments. SEC Chairman Mary Schapiro stated before the vote that "the concept that shareholders can directly participate in the director nomination process--without having to mount a proxy contest--has been debated for over 30 years." In fact, she continued, "this is the fourth time in recent memory that the Commission has considered the question of amending our proxy rules to address so-called 'proxy access.' "

Some of the debate over the proposed rules last year was whether the SEC had the authority to adopt such rules, Schapiro said. But the Dodd-Frank Wall Street Reform and Consumer Protection Act, she said, "specifically states that the SEC has authority to adopt rules that require companies to include shareholder board nominees in company proxy materials."

"As a matter of fairness and accountability, long-term significant shareholders should have a means of nominating candidates to the boards of the companies that they own--candidates that all shareholder-voters may then consider alongside those who are nominated by the incumbent board," Schapiro said. Under the new rule, "proxy access" will be available to a shareholder, or group of shareholders, who own--and have owned continually for at least the prior three years--at least 3% of the company's voting stock.

"We are pleased with this vote because it ends several years of debate on this topic," Jim Allen, CFA and head of capital markets policy for CFA Institute, told Investment Advisor in an e-mail message. "We only see this being used in cases of the most egregious governance or board failures because of the difficulty and cost involved in getting a shareowner nominee elected to the board. There are a number hurdles that a shareowner nominee will have to clear before he or she can take a seat at the board. First, a shareowner will have to acquire three percent of the company's shares for at least three years. Then they will have to go through the legal process of dotting all the I's and crossing all the T's to ensure nothing is missed and no lines are crossed in getting on the proxy statement. Then, and most importantly, the nominee will have to receive more shares than the board's nominee. Should all of that take place, the shareowner nominee would take a seat at the board."

SEC Commissioner Kathleen Casey, who vote against the rule along with Commissioner Troy Paredes, called the "proxy access" rules "fundamentally flawed" and "unnecessary," adding that adoption of the rule would be "damaging to our capital markets."

iRobot Names New CFO

Roomba robotic-vacuum manufacturer iRobot (NASDAQ: IRBT  ) lost its chief financial officer Monday -- but it immediately named a replacement.

Current CFO John Leahy is stepping down from his post to join an unidentified "late-stage private company," iRobot advised in a statement. Taking his place will be newly promoted Executive Vice President, Treasurer, and CFO Alison Dean, an eight-year veteran of the company who served most recently in the capacity of principal accounting officer.

In an SEC filing describing the promotion, iRobot disclosed that it will pay Dean a salary of $325,000 in her new position, along with an annual "target bonus" of 60% of base compensation -- $195,000.

In the same statement announcing Dean's promotion, iRobot preannounced Q1 earnings that appear likely to exceed prior estimates. iRobot expects to report earning between $0.16 and $0.20 per share on $102 million to $104 million in revenue. Company CEO Colin Angle explained the overachievement thusly: "Strong sell through both domestically and overseas is driving sales of our home robots and our strong Q1 backlog in Defense & Security gives us confidence in achieving these expectations."

iRobot shares reacted positively to both news items, gaining 5.2% in Tuesday trading to close at $23.93.

The new analytic stack is all about management, transparency and users - 03:00 PM

(gigaom.com) -- As 2013 gains steam, the big data and analytics world is radically changing. Just these past few weeks, I’ve spent time with industry thought leaders including Mayank Bawa, Mike Olsonand Scott Yara, talking about the emergence of a new analytics stack that displaces the current BI-ETL-EDW paradigm. This new stack fundamentally rethinks the data management, analytic transparency and user consumption elements into a more-cohesive platform that removes the enormous latencies and waste in how analytic software is designed and deployed today.

Here’s how.

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Hadoop has become the foundational underpinning of managing big data for organizations large and small. The amazing pace of innovation has only been accelerated with recent announcements concerning Greenplum Pivotal HD, Hortonworks Stinger and Cloudera Impala. The trajectory of these projects is crystal clear: the major Hadoop distribution providers are introducing real-time, interactive queries on top of Hadoop HDFS. This brings the best of both worlds together — well-known SQL-based query processing with the exponential scale-out ability of HDFS’s storage architecture.

Predictive analytics are essential for data-driven leaders to craft their next best decision. There are a variety of techniques across the predictive and statistical spectrums that help businesses better understand the not too distant future. Today’s biggest challenge for predictive analytics is that it is delivered in a very black-box fashion. As business leaders rely more on predictive techniques to make great data-driven decisions, there needs to be much more of a clear-box approach.

Analytics need to be packaged with self-description of data lineage, derivation of how calculations were made and an explanation of the underlying math behind any embedded algorithms. This is where I think analytics need to shift in the coming years; quickly moving away from black-box capabilities, while deliberately putting decision makers back in the driver’s seat. That’s not just about analytic output, but how it was designed, its underlying fidelity and its inherent lineage — so that trusting in analytics isn’t an act of faith.

Even after achieving analytics transparency, challenges remain in a number of places: rolling out repeatable applications, creating best-practices, collaborating across organizations, evolving what was built, seamlessly recombining models, and eventually either sharing the strongest content back to the broader community or securely maintaining higher analytic intellectual property. This iterative, responsive approach to user consumption is key to modern analytical success. This is where something like an app store for analytics can really drive user adoption.

This brings me to the new analytic stack. The need for a modern, purpose-built analytic stack is critical. This is a stack that doesn’t worry about the source or shape of the data that is coming into it, but one that is able to ingest structured, unstructured and semi-structured sources seamlessly. One that can create meaningful output, can deliver clear-box predictive analytics and can quickly deploy analytic applications for broader user consumption.

Recently, Gartner released the 2013 BI and Analytics Magic Quadrant, while Wikibon released its 2013 Big Data Market Forecast. Both reports point to a clear signal that even as analytics is taking center stage, yesterday’s BI-ETL-EDW stack is wrong-sided for tomorrow’s needs, and quickly becoming irrelevant.

GigaOM’s Structure: Data conference in New York last week was an even clearer sign that this shift to a new analytic stack is happening. We saw an incredible, yet humbling validation that this future is already here:

  • Hadoop (and NoSQL) are significantly disrupting in how we manage data, especially at petabyte scale.
  • The rise of R and Stata over black-box analytics in academic circles is a strong leading indicator of where the commercial world is headed.
  • Analytic consumption is beginning to move away from just data scientists to analysts and end-users via pre-packaged content and applications.

As this new analytic stack emerges, the big data community will continue be an exciting place for the decade to come.

George Mathew is president and COO of Alteryx. You can follow him on Twitter at @gkm1.

Feature image courtesy of Shutterstock user ramcreations.

3 Stocks Near 52-Week Highs Worth Selling

With the S&P 500 sitting near a five-year high, a review of the Motley Fool CAPS Screener database shows that half... half... of all listed companies are within 10% of a new 52-week high. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.

Keep in mind that some companies deserve their current valuations. Coca-Cola Enterprises, for instance, has been in full rally mode since updating its full-year guidance to thehigh end of its previous estimates four weeks ago and authorizing $1.5 billion in new share repurchases -- $500 million of which will take place in 2013.

Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.

Look before you leap
The purchase of the NYSE Euronext by IntercontinentalExchange (NYSE: ICE  ) for $8.2 billion last month sent a shockwave throughout much of the exchange sector and gave investors hope that more mergers could be on the way.

One of the companies caught in the center of future merger talks is CBOE Holdings (NASDAQ: CBOE  ) which provides a marketplace to trade stocks and various options and futures contracts. But CBOE CEO William Brodsky quickly denied market speculation that it too may seek a merger in lieu of the ICE and NYSE Euronext merger, noting that the merger won't change the way the CBOE does business. However, I think the ICE/NYSE combination will indeed slow down growth in an already highly competitive and trade-tightening marketplace. ICE will be able to more directly take on CME Group and CBOE Holdings, which, I think, will eat into what has already been a subpar growth rate.

On the basis of valuation, CBOE's forward P/E of 18 just doesn't seem justified with a projected revenue growth rate of only 6.5% in 2013 and ICE/NYSE coming together.

This is as good as it gets
When reviewing a company, I'll often ask myself, "Is this as good as it gets?" -- Yes, feel free to throw in the "He talks to himself" jabs in the comments section -- and in the case of Tanger Factory Outlet (NYSE: SKT  ) , a retail REIT, I believe the answer is "Yes!"

Tanger has really offered REIT investors an exceptionally strong performance since the recession. It's raised its annual dividend in 19 consecutive years and its occupancy rate actually grew in its outlet centers to 98.6% as cost-conscious consumers flocked to perceived discount retailers, which Tanger calls its tenants. But this really looks like it could be as good as it gets.

The American Taxpayer Relief Act will remove nearly $1,000 from the average American's paycheck in 2013 and beyond, which I figure will come out of vacation and retail spending budgets. Outlet malls aren't immune from reduced consumer spending, even if they've exhibited better overall performance than standard malls. With an occupancy rate of nearly 99%, there just really isn't much room for improvement, and considering Tanger's huge share price increase, it's now pricier than many of its retail REIT peers. The time to buy retail REITs is during recessions, and the time to sell them is usually one or two years after a recession. The way I look at it, Tanger is running on borrowed time.

Timberrrrrrrr!
I've been quite vocal over the years about my distrust of any rally in the housing market. Although we've seen clear signs of a bottom, and mortgage rates are set to remain near record lows for quite some time, the sheer number of foreclosures and bad loans sitting on bank balance sheets astounds me. Plus, with rates staying so artificially low for so long, I worry about the repercussions to the housing sector once rates do eventually start nudging higher. That's why I have my eyes set on selling the iShares Global Timber & Forestry Index (NASDAQ: WOOD  ) .

In recent months, housing figures have been strong, but peeling back the payroll tax is bound to hurt prospective homebuyers' savings rates. Also, from a valuation perspective, the average P/E of the holdings within this ETF is a staggering 16. That may not seem like much, but it's higher than the aggregate S&P 500 P/E, and significantly higher than quite a few tech companies with faster growth rates at nearly half the P/E of this ETF. Furthermore, its 1.3% yield trails that of the S&P 500. Thanks, but no thanks!

Foolish roundup
This week's theme, in the spirit of Jack Nicholson, boils down to "Is this as good as it gets?" In terms of housing growth, retail outlet occupancy, and options activity, I feel we've hit an apex for the time being.

I'm so confident in my three calls that I plan to make a CAPScall of underperform on each one. The question is: Would you do the same?

What's inside�Supernova?
If you're an investor looking for big long-term winners, Motley Fool co-founder David Gardner's picks have frequently trounced the market. How? Because he's always on�the lookout for revolutionary stocks�and recommends them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners,�click here to get instant access�to a personal tour behind David's�Supernova�service.

Top Stocks For 3/30/2013-4

HIRU CORPORATION (Other OTC: HIRU.PK) is considering a merger with a Canada-based health products company. This company operates a full-service natural health clinic and distributes its signature brand of health products.

The company’s various products promote brain health, pain management and hormone balance, and help combat high blood pressure and high cholesterol. These products come highly regarded by the Chinese market, and have already received positive online testimonials from consumers who say using the products improved their health.

Services at the natural health clinic include specialty massage, EIS scanning, acupuncture, and computer-guided biofeedback scanning.

HIRU is excited at the prospect of merging with this growing medical company, which has distributors and franchise outlets opening across the country. The name, revenues and all other details will be released by the company shortly, as the discussions progress. The company is of the opinion that this is a material event that warrants a public announcement.

Somaxon Pharmaceuticals, Inc. (Nasdaq:SOMX) reported that it intends to offer shares of its common stock in an underwritten public offering. Piper Jaffray & Co. is acting as sole underwriter for the offering.

The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Tejon Ranch Co. (NYSE:TRC) reported that the California Wildlife Conservation Board (WCB) has approved the purchase, for $15.8 million, of five conservation easements covering approximately 62,000 acres of land located on various portions of the 270,000 acre Tejon Ranch.

This furthers the implementation of the historic Tejon Ranch Conservation and Land Use Agreement signed in 2008. The 62,000 acres is a component of the 240,000 acres designated for protection under the 2008 agreement.

Westwood Holdings Group, Inc. (NYSE:WHG) reported the completion of the acquisition of McCarthy Group Advisors, LLC (MGA).

MGA is a registered investment advisor based in Omaha, Nebraska. MGA managed over $1.1 billion in private wealth and institutional client assets as of September 30, 2010, and serves as the advisor to the McCarthy Multi-Cap Stock Fund (MGAMX), a no-load mutual fund.

It is expected that MGA will operate as an Omaha branch of Westwood Trust, a wholly-owned subsidiary of WHG.

WHG had total assets under management of $10.6 billion, including $1.9 billion under management at Westwood Trust, as of September 30, 2010.

Top Stocks For 3/28/2013-17

Maxim Integrated Products Inc. NASDAQ: MXIM declined by 0.27% to close at $18.46. MXIM traded 3.01 million shares for the day. Its earning per share remained 0.39. (Maxim) designs, develops, manufactures and markets a range of linear and mixed-signal integrated circuits, commonly referred to as analog circuits, for a large number of customers in diverse geographical locations. Maxim�s linear and mixed signal products serve four end-markets: industrial, communications, consumer and computing. The Company manufactures its own wafers and utilizes third-party silicon foundries to produce wafers. The majority of processed wafers are subjected to parametric and functional testing at its facilities. In addition, hybrid and module products are manufactured using a multi-chip technology featuring thin-film, laser-trimmed resistors and other active or passive components.

Integrated Device Technology, Inc. NASDAQ: IDTI advanced by 1.20% to close at $5.92. IDTI traded 3.11 million shares for the day. Its earning per share remained 0.39.Integrated Device Technology, Inc. (IDT) designs, develops, manufactures and markets a range of semiconductor solutions for the advanced communications, computing and consumer industries. IDT�s communications products target markets, including the enterprise, data center and wireless markets. Its computing products are designed for desktop, notebook, sub-notebook, storage and server applications, while its consumer products are optimized primarily for gaming consoles, set-top boxes, digital television and smart phones. The markets its products on a worldwide basis primarily to original equipment manufacturers (OEMs) through a variety of channels, including a direct sales force, distributors, electronic manufacturing suppliers (EMSs) and independent sales representatives.

YInfosys Technologies Limited (ADR) NASDAQ: INF advanced by 4.77% to close at $70.52. INFY traded 3.09 million shares for the day. Its earning per share remained 2.32. Infosys Technologies Limited (Infosys) is a global technology services company. The Company provides end-to-end business solutions. In addition, the Company offers software products for the banking industry and business process management services. On December 4, 2009, Infosys BPO Limited acquired 100% interest in McCamish Systems LLC (McCamish), a business process solutions provider based in Atlanta, Georgia, in the United States. During the fiscal year ended March 31, 2010, the Company incorporated a wholly owned subsidiary, Infosys Technologies (Sweden) AB. On August 7, 2009, the Company incorporated a wholly owned subsidiary, Infosys Tecnologia DO Brasil LTDA. On August 19, 2009, Infosys Consulting, Inc. (Infosys Consulting) incorporated a wholly owned subsidiary, Infosys Consulting India Limited.

Obamacare Is Changing Health Insurance Forever

Is health insurance really insurance -- and does it matter?

True insurance protects against catastrophic losses. Think of flood insurance covering the damage as the couch floats by the window, or a life insurance policy paying out after a loved one's death. Health insurance slants more toward maintenance care, such as annual checkups, that the other insurances tend to avoid. Good luck getting your car insurance to pick up your 60,000-mile tuneup.

The different types of insurance have had similar means of funding. Customers pay a fee set according to risk level. Screening guidelines kept out the riskiest individuals and mitigated the overall level of risk the company would assume. The excluded might have included homes in hurricane-prone areas or individuals with a history of serious health problems.

But the Affordable Care Act, or ACA, is changing how private health insurers can screen patients and the premiums they can charge. That change is causing a new health industry shift that could redefine its future.

Redefining health insurance
Health insurance in the United States dates back to the Civil War era, when accident coverage proved popular enough to encourage more comprehensive private plans. But insurance as we know it started much later, following some innovations in the medical community. A look at that start helps explain the current path.

In 1929, a doctor at Baylor University Hospital in Texas noticed that teachers weren't settling medical bills. So he started a system where the teachers could pay in a small amount, or a premium, and receive up to 21 days of health coverage �The Baylor Plan began to spread as the Great Depression took off.

Cut to three decades later and a group of hospitals decided to merge their plans into one nonprofit called Blue Cross. The company faced increasing competition from private plans -- which charged premiums based on level of risk -- and soon adopted a similar business model. The methods of the private plans became the norm.

Insurers thrived in the new market and have continued to evolve over the years. Five companies have fought to the top of the heap as business boomed. Take a look at how those company's performed versus the S&P 500 over the past 10 years.

HUM Total Return Price data by YCharts.

Most of the companies have grown significantly over the past years thanks to acquisitions. �Here's how they stacked up in market position at the end of fiscal 2012.

Company

Market Cap

P/E Ratio

Covered lives*, in millions

UnitedHealth (NYSE: UNH  )

56.1 billion

10.37

40.925

WellPoint (NYSE: WLP  )

19.8 billion

7.97

36.130

Aetna (NYSE: AET  )

16.9 billion

10.70

18.242

Cigna (NYSE: CI  )

17.7 billion

11.06

14.045

Humana (NYSE: HUM  )

10.9 billion

9.22

9.103

Sources: Company 10-K reports, Yahoo! Finance. *Medical coverage only; excludes dental, Medicare Part D, etc.

But change is in the wind, thanks to the ACA, and insurers won't have the same risk mitigation options. Under the new health insurance exchanges, insurers can't deny coverage based on pre-existing conditions and have limits to how much they can increase premium charges due to a patient's history.

The insurers' long history of adaptation has come in handy. �

New focus
Medicare and Medicaid coverage have become increasingly popular due to the growths in the aging population and potential ACA-relatedMedicaid expansions. �Yes, those patient groups also carry a deal of risk -- but it's government-sponsored risk that also helps with general diversification.

Last year's wave of acquisitions aimed to increase presence in these areas. UnitedHealth bought XLHealth, provider of Medicare Advantage plans and dual-eligible coverage. WellPoint bought Amerigroup for its strong Medicaid business. And the list goes on.

But the road forward for these programs is unproven, since the ACA remains a work in progress. And the companies differ in how exposed they've become to these specific risks. UnitedHealth's Community & State segment only accounted for about 15% of overall revenues in fiscal 2012. Over at Humana, retail Medicare Advantage customers accounted for more than 53% of overall revenues.

Foolish final thoughts
The ACA changes will push health insurance further away from true insurance products in how risk can balance out with denials or premium hikes. But the government isn't leaving companies high and dry, since the ACA also includes several provisions to help ease the incoming risk burden. Notably, the individual mandate and health insurance exchanges may drive more healthy individuals into policies if they don't want to pay the opt-out fees.

Companies still need to get smarter about how they manage risks within the new framework. Diversification and sheer size, like we see with UnitedHealth, has the best shot of staying on top. But Humana and other smaller, risk-laden companies might have troubled waters ahead.

But insurers aren't the only ones facing potentially troubled waters ahead. According to Warren Buffett, there's a specific issue he's called "the tapeworm that's eating at American competitiveness." Find out what it is in our free report: What's Really Eating At America's Competitiveness. You'll also discover an idea to profit as companies work to eradicate this efficiency-sucking tapeworm. Just click here for free, immediate access.

House Passes New Short-Term Budget Fix

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The House of Representatives on Tuesday approved by a vote of 271-158, another short-term continuing resolution (CR) to fund the government until April 8. The Senate is due to take up, and likely pass, the CR later this week.

This short-term funding extension to prevent a government shutdown is a holdover while congressional negotiations continue on a long-term plan to keep the government running through the end of the fiscal year, which ends on September 30.

Friday, March 29, 2013

SQNM Files Disclosure of Stakes in Private Placement (Correction)

Shares of biotech Sequenom (SQNM) were bucking the larger market declines earlier this afternoon, but have come under a bit of pressure, dropping 9 cents, or 1.5%, to $6.07, and are now flat at $6.16, after the company filed a form S3 with the Securities & Exchange Commission detailing how many shares were acquired in a private placement of roughly 12.4 million shares Sequenom announced May 12 and carried out on May 17.

Hence, today’s event is only new in that it gives details as to which funds ended up with what amount of shares following the offering.

Tang Capital Partners, for example, has�3.3 million shares, roughly 4.4% of the common oustanding, all of which can at some point be sold, or could be retained. Among other large holders, Visium Balanced Master Fund has 2.8 million shares, roughly 3.8% of the common, and Manning & Napier possesses 1.1 million shares, roughly 1.5% of the stock.

Other funds have holdings that represent an increase from their holdings prior to the private placement, including�Palo Alto Healthcare Master Fund, with a 1.6% position in the stock. If the firm were to sell all its shares obtained in the private placement, it would still retain 1.4% of the stock; likewise,�Redmile Capital Offshore Fund could sell upward of�550,000 of its total 896,000 shares, which represents 1.2% of the stock.

Correction: In a previous version of this post, I mistakenly asserted that the change in shares documented in the S3 represented an actual sale. In fact, the S3 describes the maximum amount of shares that the funds could sell at some point in future. But there haven’t actually been any shares sold, as the shares aren’t even fully registered at this point. Nor is there any promise to sell shares nor any obligation based solely on this prospectus. I apologize to readers, and to Sequenom, for mis-representing as actual sales what is in fact merely a disclosure of holdings.

Banks in Cyprus Reopen, Strict Limitations in Place


After being shut down two weeks ago while the government attempted to negotiate a €10 billion ($13 billion) bailout, banks in Cyprus reopened today with strict withdrawal limits. The scene in Cyprus earlier today showed long lines at banks in the country's capital, while employees arrived early to prepare for the surplus of customers. Extra security and police were brought in to assuage the anticipated commotion. Much of the money had already been taken out of banks in February as talk of taxing deposits began. Foreign investors removed 18 percent of their deposits to avoid the coming fees.

Cypriots protested widely when news of the proposed tax on all deposits broke, leaving the government pressured to come to a new agreement by Monday. The new bailout, agreed upon by the EU in Brussels on Monday, contains harsh restrictions on banks in Cyprus and threatens the country's fragile economy. Part of the stipulations include shutting down the island nation's second largest bank, Cyprus Popular Bank (also known as Laiki Bank), and transferring deposits under €100,000 to the country's largest bank, Bank of Cyprus. Deposits over €100,000 will be frozen, and some funds will be exchanged for bank issued shares.

Furthermore, strict limitations have been placed on the citizens' access to their bank accounts. Cypriots are only allowed to withdraw €300 ($383) per person per day, and no checks can be cashed, only deposited.

Anyone leaving the country can carry no more than €1,000, or equivalent foreign currency, in cash. Airline officers are instructed to confiscate any amount over the allotted €1,000. The Cyprus central bank will review all commercial transactions over €5,000, and any over €200,000 will be scrutinized on an individual basis. Cypriot foreign minister Ioannis Kasoulides said the rest of Europe is asking too much of his country; “Europe is pretending to help us but the price to pay is too high: nothing less than the brutal destruction of our economic model.” Economists have also suggested that the crisis and Cyprus could lead to a second-class "Cyprus Euro" which would be less valuable than the Euro itself.

Citizens expressed their frustrations while waiting in line this morning. “I feel a sense of fear and disappointment having to queue up like this; it feels like a Third World country, but what can you do?” said Froso Kokikou, a 64-year-old pensioner. Maroulla Chrysanthou, a retiree from Nicosia, has been struggling since the banks closed. “My children brought me here, as I can't walk easily,” she told The New York Times. “We got by with what we had and my children were withdrawing some money so we could buy basic stuff.” Chrysanthou said she planned to take out as much money as she could.

The restrictions have affected businesses in the country as well. Miltos, a 27-year-old businessman stood in line with nearly €40,000 ($51,000) of bills he owes to suppliers of his small telecommunications company. If he is not able to transfer more than the €5,000 limit, he said he fears he might have to declare bankruptcy. Another local business owner worried about the effect the economic changes will have on his livlihood. “There's no money, no nothing,” Christoforos Parisis said. “It affects me and my business very much. And we don't know what will happen.”

But despite the uncertainty and hardship, Cypriots remained surprisingly calm and no crowd issues were reported. Cyprus president Nicos Anastasiades said in a statement on Twitter: “I would like to thank the Cypriot people for their maturity and collectedness shown in their interactions with the Cypriot Banks.”

 

RIM Swings to Black, Sells a Million Z10s

TORONTO�Research In Motion Ltd. reported its second consecutive quarterly profit and decent sales for its new flagship phone Thursday, but perhaps the biggest revelation from its chief executive was a risky strategy to revive the company.

The plan: Roll out a portfolio of mixed-price phones to help shore up the company's dwindling smartphone-market share and the expected declines in service-fee revenue.

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At a mall in Jakarta, customers purchase the new BlackBerry Z10 on March 15, the first day it was available.

More
  • Digits: Recap of the Earnings Call
  • Canada Real Time: The Last of RIM's Co-Founders Departs
  • Canada Real Time: RIM's War Chest Stays Steady at $2.9 Billion
  • Canada Real Time: One Million Z10s Sold
  • Video: Research in Motion Scores Profit, Loses Subscribers

With cost cutting and layoffs mostly done, RIM CEO Thorsten Heins said he has been encouraged so far with the rollout of the BlackBerry Z10, the first phone running off RIM's new operating system.

With only a month of sales from a limited number of markets, it is still far from clear that launch is a success.

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See a side-by-side comparison of the specifications of recent phones, including the BlackBerry Z10.

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But Mr. Heins said he is already turning his attention to a series of new, as-yet-unseen products due out later in RIM's fiscal year�signaling he is eager to go after several different markets with low- and midprice versions of the new phones.

The shift, which Mr. Heins has alluded to in the past, appears to be an acknowledgment that no matter how big a hit the Z10 may prove, the BlackBerry isn't likely to compete in the same league any time soon with market leaders Apple Inc. and Samsung Electronics Co.

Investors Fuel Housing Recovery

Institutional investors have been instrumental in stoking the flames of the U.S. housing recovery and many large firms are still in the market for deals even as housing prices improve. Some large investors are spending billions in the hopes of converting single-family homes into rental properties to increase portfolio of assets as well as take advantage of the growing demand for rental properties. Many of these investors are also buying large blocks of homes to then resell to other investors that are also looking to get into the new single-family home rentals market. For more on this continue reading the following article from National Real Estate Investor.

The tentative recovery in the residential housing market has not put a damper on the supply of single-family home investment properties?or buyer demand.

Both individual and institutional investors continue to find ample opportunities to acquire properties at discount prices. Since starting to buy single-family homes at the beginning of 2012, Los Angeles-based Colony American Homes has amassed a portfolio of nearly 10,000 homes.  “The ability to buy homes at attractive values in all of the markets that we are in continues to be very compelling,” says Justin Chang, CEO of Colony American Homes. For example, Colony expects to buy 1,000 or more properties in South Florida alone over the next year.

Colony isn’t the only institutional investor active in the single-family home niche. Blackstone Group LP recently secured a $2.1 billion syndicated loan from Deutsche Bank AG to facilitate its REO-to-rental investment program. These buyers are facing more competition and rising prices as the housing market begins to improve in many metros. Yet there continues to be a solid inventory of available properties including properties in foreclosure or distress, as well as homes listed on the open market at prices that are well below peak 2006 prices.

“There really seems to be a continued flow of distressed properties and shadow inventory,” says Stephen Karbelk, CAI, AARE, co-chairman and founder of AmeriBid LLC in Reston, Va. AmeriBid conducted an auction of single-family homes on behalf of the New Orleans Redevelopment Authority (NORA) last October where approximately 125 homes were sold. Nearly half of the properties that sold, 47 percent, sold to investors.

AmeriBid had a second NORA auction planned on March 23to sell about 130 homes. In addition, the firm has multiple auctions in the works with other public agencies that it will be announcing in the next week, one of which involves the auction of as many as 6,000 properties, Karbelk notes.

“Buying opportunities are not drying up for us in Chicago,” agrees Eric Workman, vice president of sales and marketing for MACK Companies in Tinley Park, Ill. MACK is a veteran investment group that has been buying distressed or foreclosed single-family homes and redeveloping them as rentals for the past 15 years. Earlier this month, the firm announced the sale of 93 single-family homes to American Residential Properties,an Arizona-based REIT, for more than $12 million. MACK is continuing to actively pursue acquisition and redevelopment opportunities to provide additional inventory for ARP on an ongoing monthly basis.

Prices edge higher

Single-family home sales prices have appreciated in the past year. Markets such as Phoenix, Southern California and Atlanta in particular are becoming very competitive with acquisition prices rising 20, 30 and even 40 percent, notes Workman.

Price appreciation in some markets is a combination of growing demand from both investors and home buyers, as well as a recovery in the housing market. The economy is showing signs of improvement, and people are looking to buy again. “Your average homeowners is feeling a little bit more bullish about things than they have in quite a few years, and there is a lot of pent-up demand out there,” says Workman.

Nationally, single-family home prices rose 6.0 percent to average $176,800 in 2012, according to the National Association of Realtors. Although a notable improvement, it is still well below the peak home prices of $221,900 in 2006. “I think we have multiple years of opportunity ahead to try to acquire homes,” says Chang.

Despite interest from high-profile investors such as Blackstone, the reality is that large investors still represent a very small segment of the single-family home market. In 2012, 81 percent of the single-family homes purchased were bought by individuals, and 19 percent were bought by investors, notes Chang. But most of those investors are small, mom-and-pop investors buying a few homes in their local market.

 “The institutional investors are a pretty small portion of the overall picture,” he adds. “So, we don’t think it is all that competitive in the sense that there are a lot of good homes out there to buy and a lot of homes for different buyers.”

Building long-term strategies

Although depressed values have been a key to sparking investor interest, firms such as Colony see the long-term possibilities in the sector due to a strong demand for rental housing. “As fast as we are buying, we are leasing up at a good rate,” says Chang. That speaks to the fundamental shift in America of families that want to rent quality, well-located homes.

Colony owns properties in Florida, Georgia, Texas, Arizona, Colorado, Nevada and California. The firm has targeted those markets both for its opportunities to buy homes at a discount, as well as the strong renter demand. “Fundamentally, we want to acquire homes where we like the long-term economic prospects for those cities and states,” says Chang. Colony typically buys three- and four-bedroom homes and then investments between $20,000 and $30,000 in improvements before renting them out to end users.

Certainly, single-family rentals are not a new concept. Even before institutions started snapping up properties in the past two to three years, about 11 percent of the housing stock was earmarked as rental properties–about 13 million homes, notes Chang. What is new is that firms such as Colony and ARP are bringing institutional capital, as well as professional management to the niche on a much broader scale. 

How effective investors are in creating a profitable platform for single-family homes remains to be seen. One of the challenges to the industry is the management costs. Unlike managing an apartment building where all of the tenants are in one central location, single-family homes are scattered throughout a metro area or community.

So far, institutional investors seem to be following the strategy that creating a sizable portfolio with properties that are clustered in certain markets is creating efficiencies and economies of scale. Property management is going to be the key to creating successful portfolios.  “From a management standpoint, it is a very local business where you have to have strong local operators with a lot of experience,” says Workman.

Top Stocks For 3/29/2013-5

Crown Equity Holdings Inc. (OTCBB:CRWE) announced recently that it has launched its crwenewswire.fr website to provide news in France’s native language. Crown Equity Holdings Inc. had previously launched its German website crwenewswire.de and is launching its Canadian website crwenewswire.ca shortly.

“The new website is one step in many towards the company goal of expanding its footprint internationally, ” commented Kenneth Bosket, President and CEO of Crown Equity Holdings Inc. “Our goal for 2010 is to have all CRWE’s clients’ press releases, articles and news content published in every major financial country’s native language, as well as within cities of every state of our country,” stated Mr. Bosket.

Crown Equity Holdings Inc. is a consulting organization which provides and assists small business owners with the knowledge required in taking their company public, and has re-focused its primary vision with its aligned group of independent website divisions to providing media advertising services, as a worldwide online media advertising publisher, dedicated to the distribution of quality branding information, as well as search engine optimization for its clients.

Empire Resorts, Inc., (NASDAQ: NYNY) has entered into a settlement agreement with the holders of over 93% of the outstanding principal amount of the Company�s 5�% Senior Convertible Notes Due 2014 (the �Notes�) and the Trustee under the indenture governing the Notes, pursuant to which the parties have agreed to settle the proceeding commenced by the Company in August 2009 in the Supreme Court of New York, Sullivan County relating to the exercise of the put right contained in the indenture governing the Notes.

Empire Resorts Chairman of the Board Emanuel R. Pearlman commented, �The Board has worked diligently over the past months to forge the best possible outcome for our company and its various stakeholders. We are pleased to have reached this agreement with our Noteholders which resolves pending litigation and significantly deleverages the company.�

Empire Resorts CEO Joseph D�Amato concluded, �This settlement is an important milestone for Empire Resorts. We are pleased to have crafted an agreement that resolves the uncertainty of litigation and also provides us with the flexibility to seek alternative financing arrangements to satisfy our obligations under the Notes until November 22, 2010. We are optimistic that resolving the pending litigation as provided under the settlement agreement will allow Empire Resorts to focus on our ongoing efforts to enhance shareholder value.�

Empire Resorts owns and operates the Monticello Casino & Raceway, a harness racing track and casino located in Monticello, New York, and 90 miles from midtown Manhattan.

Intel (NASDAQ:INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices.

Intel Corporation’s board of directors has declared a 15.75 cents per share quarterly dividend on the company’s common stock. The dividend will be payable on Dec. 1, 2010 to stockholders of record on Nov. 7, 2010.

3 Reasons to Buy AbbVie Today

Brenton Flynn, Motley Fool health care bureau chief, discusses AbbVie. Like other pharmaceutical companies, this company serves a non-cyclical market of consumers that aren't very price-conscious. He then addresses specific advantages that AbbVie enjoys, naming three reasons to buy the stock:

  • Humira's pipeline -- AbbVie has a tremendous opportunity to serve hepatitis C patients, of whom there are 170 million worldwide.
  • Concerns about Humira are overdone. Humira is a biologic, which is more difficult to copy than other small molecule drugs.
  • AbbVie has one of the top dividends among big pharma, sporting a 4% yield.
  • Follow along in the video below to learn more about each of these reasons you might consider buying AbbVie for your portfolio.

    In the pharma business, great success comes with a caveat. AbbVie is a perfect example, as investors in the new company are left wondering what the future holds once the company's golden goose, Humira, is cooked. The Fool's brand new premium report on the company answers the high-profile questions that AbbVie investors are asking. Simply click here now to claim your copy today.

    Genworth Sells Wealth-Management Unit

    Genworth Financial (NYSE: GNW  ) has reached a deal to divest its wealth-management assets. The sale is to a partnership consisting of Aquiline Capital Partners and Genstar Capital, and the price is expected to be roughly $412.5 million.

    The deal is expected to close in the second half of this year. Genworth Financial said it anticipates booking an after-tax loss of around $40 million related to the transaction. Of that amount, $35 million will be booked in Q1 2013, and the rest at closing.

    The company quoted its CFO Martin Klein as saying that the deal "is another step forward in executing our strategy, by generating capital from a non-core business and increasing financial flexibility for Genworth."

    Goldman Sachs and law firm Sullivan & Cromwell both advised Genworth on the deal.

    More Expert Advice from The Motley Fool With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether Goldman Sachs is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

    As Europe Struggles, Japan Threatens to Erupt

    My Foolish colleague Morgan Housel began an article a few days ago by noting that, "Poor Cyprus is in terrible shape." The tiny Mediterranean nation virtually crept into that forlorn condition before most of us were aware of its difficulties. Of course, we'd known about the withering economies of Greece, Spain, and Italy. But now, unbeknownst to many, Japan, the world's third-largest economy, may also be headed for what would be a far more resounding crash.

    Some Fools may recall the Japanese "bubble economy," which, before it came to an abrupt halt in 1991, was characterized by nosebleed values on real estate and stock prices. But, since that time, the country's economic circumstances have continued to wweaken.

    Not pretty numbers
    Today, Japan's government debt to GDP is a whopping and globe-topping 245%. Beyond that, its total debt to GDP is about 500%, while the Japanese government spends at a rate of 2000% of its revenues. As a result, evenamid at prevailing rock-bottom rates, its interest costs on the government's portion of its debt runs to nearly 25% of the same government's revenue. Largely as a result, from July through September, the country's economy was shrinking at an annualized rate of about 3.5%.

    But that may be only a temporary phenomenon. Newly reinstated Prime Minister Shinzo Abe -- who in the past had held the same post under the auspices of the Liberal Democratic Party and was returned by the electorate in December -- apparently intends to undertake the quantitative easing (QE) approach that has become the apparent elixir for sluggish economies, whether in Europe or the U.S. In addition tied to an avowed object of turning Japan's deflationary economy into one that sports about a 2% growth rate. Further, "Abenomics" also includes "structural reforms," including a round of deregulation.

    Another prescription from Abe's crew clearly involves letting the yen slide. Indeed, the currency has been lowered by 20% during just the past four months. That decline has essentially occurred under the cover of darkness, without generating any real attention. Its clear intent is to benefit the likes of the Japanese automobile manufacturers and other areas of industry. (This, despite Toyota's (NYSE: TM  ) having recaptured the automotive world's top spot from General Motors (NYSE: GM  ) in 2012, while rival Honda (NYSE: HMC  ) recorded a 24% hike in U.S. sales for the year.)

    Predicting problems
    the face of the country's dicey economics, however, and despite the ministrations of Abe and his minions, there are numerous Asia-watchers who have become convinced that an economic tumble for Japan is inevitable and possibly imminent. For instance, longtime Japan observer and Asian securities specialist James Gruber maintains that, a yield that expanded to 2% would result in the interest portion of the government's debt absorbing a clearly unsustainable 80% of its total revenues.

    Also, the Dallas-based founder of Hayman Capital Management, Kyle Bass -- one of the early seers of the 2007-2008 U.S. mortgage market collapse -- believes that the government's debt-to-revenue ratio has reached a level where a financial collapse is now inevitable. In fact, he contends that meeting the 2% inflation target would play a lead role in precipitaing an economic cataclysm.

    In a recent address to Booth's Initiative on Global Markets in Chicago, Bass provided more empirical reinforcement for his dire forecast. As he noted, a big (albeit unnamed) bank recently owned up to him that its latest stress analysis of the Japanese economy had yielded results eight times more foreboding than the immediately preceding version.

    The Halls of Harvard
    And then there's Martin Feldstein, the George F. Baker Professor of Economics at Harvard and former chairman of the Council of Economic Advisers under President Ronald Reagan. His primary prognostications about Japan's economy also point to deleterious consequences from an erasure of its most significant current advantage: low interest rates. Similarly, the yen's recent weakening, along with the likelihood of altered expectations among investors in the nation's government bonds, could usher in a higher-than-the-targeted 2% inflation rate, thereby unleashing additional economic damage.

    It already appears that Japan's teetering economy has metastasized to other nations in the region, most notably South Korea and Taiwan. Add to that the somewhat shocking U.S. Federal Reserve study released this week, which concludes that China's economic growth rate could slide to between 6.5% and, under a "worst-case scenario," below 1% by 2030. As with Japan, China is beset by a low reproductive rate and a consequently aging work force.

    To my mind, the economic weakening in Asia -- and especially in Japan -- are infinitely more foreboding and portentous than even the worst of the difficulties challenging the EU. Indeed, a Japanese collapse -- with or without concurrent events in other nations in the region, even including China -- could render dealing with Grecian, Italian, Spanish, and Cypriote woes a veritable cakewalk.

    An active company in Asia, Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's brand-new report. Just click here to access it now.

    Trident Microsystems Shares Tumble On Q4 Revenue Warning

    Trident Microsystems (TRID) shares are taking a hit after the TV-focused chip company warned that Q4 revenues will be down sharply from the third quarter.

    For Q3, the company posted revenue of $176.6 million, up from $171.6 million in Q2, and $31.1 million a year ago. On a non-GAAP basis, the company broke even in the quarter.

    For Q4, Trident expects revenue to retreat to a range of $130 million to $140 million; it expects a non-GAAP operating loss of $4 million to $8 million.

    CEO Sylvia Summers said Q3 results were in line with guidance. But she added in a statement that the expected decline in the foruth quarter reflects “both industry softness and share loss from supply constraints earlier in the year,” partially offset by a modest increase in the company’s set-top box business.

    Summers added that the company expects TV industry softness to continue into the first quarter. She added that the company expects 2011 revenue to be similar to 2010, with positive cash flow for the year.

    TRID is down 32 cents, or 15.2%, to $1.79.

    Dow Heads Higher Despite Disappointing Jobs Report

    Blue-chip stocks have regained their momentum today despite news that more Americans filed for unemployment benefits last week than economists had expected. With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up by 43 points, or 0.3%.

    According to the Department of Labor, the number of applicants for jobless benefits increased by 16,000 last week compared to the previous week. The advance figure for the seven days ended March 23 was 357,000 -- the highest level since mid-February and above the consensus forecast by 18,000 claims.

    Analysts are nevertheless cautioning against reading too much into these figures, given the week-to-week volatility inherent in the estimate. As one analyst quoted by MarketWatch.com observed, "It would take more readings in this neighborhood to point to a modest pick in layoffs." He went on to say that "the claims data continue to signal a slowing in the rate of job layoffs in the first quarter of 2013."

    In addition to this, new data from the Department of Commerce suggests that the economy expanded in the final three months of last year at a faster pace than originally estimated. In its first release of fourth-quarter GDP growth at the end of January, the government said the economy actually contracted by 0.1% due to dramatic cuts in military spending. This figure was revised upward last month to a positive 0.1%. And today, that figure was revised up once again to 0.4%.

    As the official press release explained, "The GDP estimate released today is based on more complete source data than were available for the 'second' estimate issued last month."

    Despite the disappointing jobs figures, however, stocks are broadly higher as we enter the final hour of trading. At the time of writing, only nine of the Dow's 30 component stocks are trading lower.

    Leading the way higher are shares of United Technologies (NYSE: UTX  ) , the industrial conglomerate that makes everything from Otis elevators to Sikorsky helicopters. As my colleague Dan Carroll noted earlier, the company recently sold an electrical power systems unit that it had acquired from Goodrich. The deal was worth an estimated $400 million and "was the second divestment of a Goodrich unit since [United Technologies] purchased the company for more than $16 billion last year."

    Heading Dow shares lower, alternatively, is JPMorgan Chase (NYSE: JPM  ) , the nation's largest bank by assets. Earlier today, The Wall Street Journal reported that a longtime JPMorgan veteran is leaving the company. The news comes on the heels of a string of troubles for the lending giant related to massive trading losses and even its purported role in the Bernie Madoff case.

    With big finance firms still trading at deep discounts to their historical norms, investors everywhere are wondering if this is the new normal or if finance stocks are a screaming buy today. The answer depends on the company, so to help you figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

    Google Tests Same-Day Delivery Service in San Francisco

    Google (NASDAQ: GOOG  ) is launching a new (very limited) same-day delivery service for retail items, called Google Shopping Express, the company announced on its Google Commerce blog this morning. The trial service is open to a limited amount of people in the San Francisco Bay Area.

    Those who sign up will receive unlimited, same-day delivery for free for six months from stores like Target, Walgreen, Staples, American Eagle, Toys "R" Us, Babies "R" Us, and other local retailers. The company said on its blog that the program is in its "incredibly early days and so the service is only available to a small number of people in the Bay Area." Pricing for the service hasn't been set.

    Google said it's using this pilot program to test out how the service works, and will expand its testing "as we work out the kinks." The company said that it hopes to make it possible for consumers to get items they order online the same day and at a low cost.

    link

    Thursday, March 28, 2013

    European Markets Recover

    LONDON�European stock markets posted their 10th straight month of gains on Thursday, after data showed German retail sales rose unexpectedly in February and banks reopened in Cyprus without signs of panic.

    The Stoxx Europe 600 index added 0.5% to close at 293.78, after losing 0.4% on Wednesday. On the month, it added 1.3%.

    The index rose for a third consecutive quarter, up 5%, buoyed by optimism over economic recovery in the U.S. and pledges by the European Central Bank to keep monetary policy accommodative. However, worries over political turmoil in Italy following inconclusive election results and financial stress in Cyprus spooked investors toward the end of the quarter.

    "I think Cyprus will linger for some time, but we have not seen a huge market reaction, which suggests that the ECB action has worked and helped decrease the risk of systemic panic," said Philip Shaw, chief economist at Investec Securities.

    In the U.S., the Standard & Poor's 500-stock index on Thursday jumped above its record close, set in October. Markets were broadly unfazed by largely disappointing data, which had weekly jobless claims up by 16,000 and saw a gauge of business activity in the Chicago region come in weaker than expected. U.S. growth for the fourth quarter last year was revised up to 0.4%.

    Among notable movers in Europe, shares of D.E. Master Blenders 1753 surged 25% to �12.05 ($15.40), after the coffee company said it is in talks with Joh. A. Benckiser to be taken over for �12.75 a share.

    Shares of Tele2 gained 4.5%. Late Wednesday, the Swedish telecom firm said it would sell its Russian unit to VTB Bank for $3.5 billion. A1, the investment arm of Russia's Alfa Group, said it would make a counter offer.

    European stock investors further monitored developments in Cyprus, where banks opened their doors for the first time since the nation agreed to a bailout package with international lenders. The government imposed strict capital controls to avoid a bank run, limiting withdrawals to �300 in cash a day. Television news reports showed orderly queues at branches in Nicosia.

    The Cyprus Stock Exchange remained closed for trading.

    "There is still a certain degree of nervousness over the Cypriot situation, but to an extent it has been calmed by measures related to the bank reopening. There are no signs of panic and that has also been the case elsewhere," said Mr. Shaw from Investec Securities.

    "There's a widespread feeling that Cyprus is a unique case and the bail-in model that was used in the bailout will certainly not be used in most major countries. You can't of course rule anything out, but there are good reasons why it was applied in Cyprus," he added. "Number one, the size of the bailout was large compared with the size of the economy. Even the �10 billion supplied by the troika counted for 53% of annual GDP."

    The second reason, he said, was that the island nation had been perceived as being too relaxed on financial regulation, which had attracted a degree of money laundering, leaving a haircut on large deposits as a way of cleaning up the system.

    Late Wednesday, Moody's Investors Service said the highest rating it can assign to a domestic debt issuer in Cyprus is Caa2, citing increased risk that the troubled nation will exit the euro zone.

    Italy was also in the spotlight, as center-left leader Pier Luigi Bersani told President Giorgio Napolitano that he will report back in the evening on his attempts to form a government, after weeklong negotiations with other party leaders. Hopes that he was close to forming a coalition crumbled on Wednesday as he declared that only an "insane person" would want to govern in the current political environment.

    Italy's FTSE MIB index slipped 0.1% to 15338.72 and lost 5.7% on the quarter. For the month it gave up 3.7%.

    Investors in Europe further looked to Germany, where retail sales unexpectedly picked up 0.4% in February, beating expectations of a 0.4% decline. The DAX 30 index rose 0.1% to 7795.31 and settled 2.4% higher on the quarter. For the month it added 0.7%.

    Shares of drug maker Bayer gained 1.6%, as it in collaboration with Syngenta proposed an action plan to unlock a stalemate over bee health in the EU. Shares of Syngenta were up 0.3%.

    France's CAC 40 index gained 0.5% to 3731.42, while climbing 2.5% on the quarter and 0.2% in March.

    Carrefour picked up 2.4%, as Standard & Poor's changed its outlook on the supermarket retailer to "positive" from "stable."

    The U.K.'s FTSE 100 index rose 0.4% to 6411.74, closing out the quarter 8.7% higher and the month with a 0.8% gain.

    InterContinental Hotels Group gained 2.8%. The hotel operator said it sold its leasehold interest in InterContinental London Park Lane for gross cash proceeds of �301.5 million ($456.1 million).

    Write to Sara Sjolin at sara.sjolin@marketwatch.com

    3 Historic Losers That May Be on the Rebound

    With all the talk about buying discounted equities on the cheap in the wake of the Japanese crisis, I though I would take a look at the truly beaten up shares in the market, the companies whose stocks have been absolutely destroyed over the past five years. The following is a list of the 25 biggest losers from the Russell 1000 over the past five years. I have to warn you beforehand, the list isn't pretty:

    Ticker Short Name 5 Year Return P/E
    AIG
    AMERICAN INTERNA (96.59)
    ETFC E*TRADE FINANCIA (93.98)
    C CITIGROUP INC (89.31) 12.66
    WL WILMINGTON TRUST (88.52)
    ODP
    OFFICE DEPOT INC (86.67) 41.50
    BPOP POPULAR INC (83.49)
    MBI
    MBIA INC (81.51)
    S SPRINT NEXTEL CO (81.32)
    PHM
    PULTEGROUP INC (80.40)
    KBH
    KB HOME (76.55)
    USG USG CORP (76.51)
    AMLN AMYLIN PHARM INC (76.46)
    SNV SYNOVUS FINL (76.13)
    RF
    REGIONS FINANCIA (75.67)
    AMR
    AMR CORP (75.56)
    MI MARSHALL &ILSLEY (75.25)
    AMD
    ADV MICRO DEVICE (75.17) 26.72
    KEY
    KEYCORP (72.99) 18.51
    SLM
    SLM CORP (72.34) 8.01
    CETV CENTRAL EURO M-A (70.69)
    LM LEGG MASON INC (70.58) 19.79
    ZION ZIONS BANCORP (70.18)
    SVU
    SUPERVALU INC (69.59) 6.43
    BSX
    BOSTON SCIENTIFC (69.16) 18.17
    MWW
    MONSTER WORLDWID (68.72)

    Wow, that's a lot of value destruction. On average, the picks were down 78% over this timeframe.

    However, I'm not too concerned about the past; I'm more concerned about the future. And with that in mind, here are three stocks I think could be interesting going forward. All three trade at a discount to their peers and have assets in place that suitors could find a lot of value in.

    Sprint (S) - The company has been in the news recently, especially with the recent purchase of T-Mobile by AT&T (T). The acquisition has rumors flying, suggesting competitor Verizon (VZ) will be forced to pay up for Sprint. And if the acquisition takes place anywhere near the value AT&T assigned to T-Mobile, Sprint shares would fetch a hefty premium. Verizon's CEO has said the company will stand pat, but even if they aren't acquired, Sprint shares are cheap and value investors like David Einhorn have found a lot to like in them recently.

    Supervalu (SVU) - The retailer is incredibly leveraged and faces increasing competition from Wal-Mart (WMT) and Target (TGT), plus huge food inflation costs that it's finding difficult to pass on to consumers. However, Barron's recently highlighted the company as undervalued and the company's land and real estate alone are likely worth more than its current EV.

    Advanced Micro Devices (AWD) - Historically, AMD has served as Intel's (INTC) whipping boy in the chip market. However, the ongoing shift to smart phones and tablets has given AMD a chance to get back into the game, and they've recently hired a respected industry veteran as their CIO. Intel has recently been gaining attention as a potential value stock, and with AMD trading for less than have of intel's price (on an EV / revenue basis), any increase in sales from tablets or mobile phones could send shares much higher.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    The Greatest Investment Product of the Last 20 Years

    Stocks are mixed this morning, with the S&P 500 (SNPINDEX: ^GSPC  ) down 0.35% and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) up 0.18% as of 10:10 a.m. EST.

    SPY: A game-changer
    Happy birthday, SPY! This week, the SPDR S&P 500 ETF (NYSEMKT: SPY  ) celebrated its 20th anniversary, which makes it the granddaddy of exchange-traded funds. SPY is also the 800-pound gorilla in this ecosystem: From $6.5 million in assets at its launch, it has ballooned to $128.5 billion -- an incredible 64% annualized growth rate over two decades. With an expense ratio of just 0.1%, it's no wonder that it has become so popular. (But in this context, I can't go without mentioning its rival, the Vanguard S&P 500 ETF, with an expense ratio half of SPY's -- a stunning 0.05%.)

    Low-cost index mutual funds existed prior to ETFs, but the fact that the latter trade like stocks has broadened their appeal and given them higher visibility -- a very positive development in an industry in which most "active" fund managers are incapable of consistently beating their benchmarks. Still, there's no stopping the ingenuity of the fund management industry when it comes to clawing higher fees from investors. According to McKinsey, the next hyper-growth phase in the ETF sector will belong to actively managed ETFs. The consulting firm is predicting that this segment will increase from $10 billion today to $500 billion by 2020.

    In this area, as in many others, investors are best served by keeping things simple. There are numerous exchange-traded products today that are clearly unsuitable for individual investors -- witness the "2 times" and "3 times" products that promise leveraged index returns. The great lesson of SPY is that a straightforward strategy and ultra-low cost are a tough combination to beat, regardless of (or perhaps because of) the amount of effort and ingenuity put forth by those who try.

    The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.