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Monday August 17, 2009

Kingstone Companies, Inc. (NASDAQ: KINS) today filed its Form 10-Q for the quarter ended June 30, 2009. Barry Goldstein, Kingstone Companies (”KINS”) Chairman and CEO, said, “During Q2, we exited the distribution sector of the property and casualty insurance industry. We completed the sale of all of our retail locations in New York and Pennsylvania and no longer serve as an agent or broker. During the second quarter, we also sold our franchise operations.” Based upon the foregoing, substantially all of KINS’ operations for the period ended June 30, 2009 are reflected in the Form 10-Q as discontinued operations.

As an integral part of its territory focused marketing and direct sales strategy Omnicity Corp (OTCBB:OMCY) has launched specific targeted market sales campaigns utilizing “EMU 1″ (Experiential Marketing Unit #1) to support its grassroots direct sales efforts. EMU 1 is the first of several sophisticated mobile marketing platforms Omnicity will be deploying at strategic locations throughout its markets in support of area specific integrated sales and marketing campaigns. Omnicity has developed its marketing model using a “build, buy and partner” foundation and is using EMU 1 to give new subscribers the “Omnicity Experience” at county fairs, festivals, promotional events, partnering events, and new territory launches. “We give our potential customers the opportunity to experience our services in a mobile environment to show our broadband capabilities. They can experience a live demonstration of high s! peed Int ernet, voice services (VOIP) and video services in a real time, real life setting that they would otherwise not be able to experience,” commented David Weddell, Vice President of Sales and Marketing with Omnicity.

Hot Insurance Stocks -Kandi Technologies, Corp. (NASDAQ: KNDI), an established China-based leader in the design and manufacture of all terrain recreational vehicles, and the designer and manufacturer of the COCO all electric super mini auto, today announced results for its second quarter and first half ended June 30, 2009.

RCA Research, Inc. today announced that it has signed an Asset Purchase Agreement with COMSYS IT Partners, Inc. (NASDAQ: CITP) to join the worldwide family of COMSYS companies. The terms of the cash transaction were not disclosed, however, RCA Research’s full platform of services offerings will merge effective August 17, 2009.

Hot Insurance Stocks -Federated Premier Municipal Income Fund (NYSE: FMN) and Federated Premier Intermediate Municipal Income Fund (NYSE: FPT) have declared their monthly dividends. The funds seek to provide investors with current dividend income that is exempt from regular federal income tax. In addition, these funds feature income exempt from the federal alternative minimum tax (AMT).

Hot Insurance Stocks -IMAX Corporation (Nasdaq:IMAX) announced today the closing of the public offering of 5,882,353 of its common shares at a public offering price of $8.50 per share. Gross proceeds from the offering were approximately $50 million. IMAX has granted the underwriter the option to purchase up to an additional 882,353 common shares at the public offering price, less the underwriting commission, within 30 days following pricing.

Best Wall St. Stocks Today: CHS,LTD,WMT,KSS,DIO,ANN

Chico?s FAS (NYSE: CHS) said its growth story remains intact, even though consumer spending is expected to remain soft. Additionally, despite falling margins at its flagship stores and rising inventories, the women?s clothing retailer is taking few steps to preserve cash.

Founded in 1983 as a small boutique selling Mexican folk art and cotton sweaters on Sanibel Island in Florida, Chico?s now operates more than 1,200 outlets and boutiques throughout the U.S., selling casual-to-dressy apparel and related accessories under the Chico?s brand, White House/Black Market and Soma Intimates names, catering mostly to women over the age of 35.

Although net sales for the third quarter ended October 29 increased 11.5% year-over-year to $539 million, the Fort Myers, Fla.-based retailer posted quarterly earnings of 16 cents per share, lower than the consensus analyst estimate of 20 cents. Absent traffic, the company was forced to increase promotional activities and offer aggressive discounts to move merchandise, especially at its namesake stores. Gross margin fell 100 basis points to 56% and inventory increased 38% to $247 million.

Though gross margin is forecast to fall 100 to 200 basis points in the fourth quarter (reflecting a need to push-out end-of-year merchandise through discounting), management insists the decline is not related to execution problems. Chief executive officer David Dyer pointed out on the third-quarter 2011 conference call with analysts that the White House and Soma brands ?delivered record sales and margins in the third quarter, thanks to a more fashionable mix of lingerie, dresses and beauty.?

?It?s the economy, stupid!? ~ Democratic strategist James Carville

All four brands — from dinner party fashions at Boston Proper to pajamas and ?Vanishing Back? bras available at Soma Intimates — are resonating with shoppers, said chief financial officer Pamela Knous on the earnings call. ?And I am proud to say,? declared Knous, that the 11.5% increa! se in sa les ?represents the tenth consecutive quarter of positive comparables.?

What Knous did not say was that consolidated sales comparables grew only 3.7%. Her double-digit growth comment reflected increases from new store openings — not actual organic growth at locations open more than one year!

Even more troubling, although new traffic was up for the combined Chicos and Soma Intimates brands, which accounted for 66% of quarterly revenue, comparables grew only 0.6%, compared to sales growth of 3.6% last year. Knous said the slowdown reflected the Chico?s customer?s ?cautious purchasing behavior in light of continuing uncertain economic conditions.?

?When I see a bird that walks like a duck and swims like a duck and quacks like a duck, I call that bird a duck.? ~ American poet James Whitcomb Riley (1849 – 1916)

Notwithstanding, the Chico?s namesake brand, average dollar sales and transaction counts are supposed to be up across all other brands, according to management. Why, then, will the company not break out segment profit and loss (P&L) statements?

Looking to extend its customer?s experience to intimate apparel, a $13.5 billion market (led by Victoria?s Secret?s commanding 25% share), Chico?s has grown the Soma label from 10 stores in 2005 to more than 200. Given the company?s ambitions are no longer ?a secret,? why should the brand?s contribution to P&L still be considered such — unless discount pricing is driving sales growth — and eating into profits?

Management contends that there is space for another specialty lingerie brand. Though sales and profits are sizzling these days at industry bellwether Victoria?s Secret, owned by Limited Brands (NYSE: LTD), the playing field is not level for an upstart like Chico?s: Soma Intimates does not have the real estate. With just one-fifth as many stores, the company cannot similarly leverage product campaigns (do not expect an NBC runway show in primetime anytime soon). Additionally, deep-! discount ers like Wal-Mart Stores (NYSE: WMT) and Kohls (NYSE: KSS), with respective market shares of 17% and 8%, are battling for the budget-constrained pocketbooks of shoppers (looking for bargains) too. Ergo, Chico?s promulgations of full pricing and fashion parading hand-in-hand at Soma Intimates, in my opinion, is just fantasy talk.

On the earnings call, Nomura retail analyst Paul Lejuez was ignored when he specifically asked Dyer or Knous to detail the P&L impact of Soma Intimates on quarterly income. The company did not return my call seeking comment, too.

Troubling Trends Ahead

There are stormy headwinds blowing toward Chico?s, which management — whether deliberately or blithely — refuses to address:

    * ?Excluding $3.5 million of non-recurring, after-tax Boston Proper acquisition and integration cost, earnings per diluted share were $0.18 compared to $0.16 last year, a 13% increase,? said Knous. ?Our best third quarter earnings per share results since 2006.? If this is Chicos? best — I?d hate to see ?average? performance. The quality of the company?s earnings is suspect. Actual net?income year-on-year fell 8.2% to $26.46 million, according to?regulatory filings. Share-net income received an artificial boost because actual (weighted) share count outstanding fell by 10 million in the last year due to open-market stock repurchases.
    * In total, the company should exit the year at 1,250 stores, an increase of about 8% in square footage. However, in-store inventory is up some 17% per square foot, which suggests a continued reliance on aggressive promotions to push out seasonal merchandise — and a delay in margin turnarounds.
    * Further evidence of a disconnect with female shoppers is found in days inventory outstanding (DIO), a performance metric that measures how long it takes?inventory to be replaced on store shelves. In the third quarter, DIO rose year-over-year from 73.5 days to 81 days. Part of the cash conversion cycle, an ! increase in DIO whispers a liquidity crisis could be in the wind, as Chico?s inventory accounts for almost 46% of current assets (of $543.5 million).

?The best offense is having the right product for the customers.? ~ Chicos CEO David Dyer

Management believes that Chico?s has sufficient capital — cash flow from operations and existing cash and marketable securities balances — needed for the 100 (plus) new store openings in 2012 ($100 – 120 million), plus continued investment associated with the Soma brand, store remodel/expansions and cash required for inventory levels associated with this growth. Additionally, the company has no long-term debt and, if necessary, an untapped bank credit-line totaling $70 million.

Cash and equivalents totaling $195 million plus year-to-date operations that threw off $181 million suggest that liquidity should be sufficient to weather more of the same soft retail environment predicted for 2012 (including continued pressure on margins from promotional activities). That said, the company is spending money like a drunken sailor: $212 million acquisition of Boston Proper last fall, $70 million in dividend payouts, $176 million stock repurchases of 13.7 million shares (since August 2010) and the just-announced $200 million new stock buyback program.

Strong quarterly results at Limited Brands and Ann Inc (NYSE: ANN), parent company of Ann Taylor and LOFT brands, demonstrate that even in a weak economy customers will pay ?full-price? for the right products. However, in my opinion, the company has overestimated its own pricing power. Consequently, if trouble follows the company into 2013, build-outs planned for Boston Proper and Soma could grind to a halt. As the share price of Chico?s FAS is down some 36% from its 52-week high of $16.60, consensus among investors would be to agree — and flee.

David J Phillip

Business intelligence advisors

Network Marketing

Multilevel marketing is an effective online marketing strategy where product sales workers are taken care of sales but for the sales associated with workers these people recruit. The process creates an impact where more mature workers obtain more than more recent workers. If you’d like to put into action a network marketing technique for your business, try this advice.

Provide related information to folks who will be watching your site, and to your personal niche. Discover what the people you need to attract are trying to find online, after which provide which content. You should check social media websites and discussion boards as they’re an excellent repository of knowledge.

As a network marketer working as a recruiter, you will have to show and prove the financial capabilities of what you’re doing. People cannot feel as if they’re being used to pad your personal bank account. Show them examples of people who’ve made money and how they can follow that path.

Always remember in order to posture your self correctly within conversations as well as business transactions. You are the professional and experienced business owner. Inside your network marketing business are not equipped off because weak for your prospects, rather present yourself because knowledgeable, companion, and an professional at your work even if you do not. This helps develop trust in not just your business, however, you.

You should always use a set timetable and adhere to it. You should dedicate at least A dozen hours regarding actual try to your business because of it to become productive. Plan for what you really are going to use the time you’ve got set aside to your business, you should always be on timetable. If you follow a schedule your small business will work better.

Do not compare you to ultimately others within network marketing companies. Your business is not the same as any other people. Comparing you to ultimately top earners is onl! y going to make you feel frustrated. You are likely promoting a different item to a different marketplace, or you happen to be selling for any different period of time. Your business may grow with time; you have to allow it to.

When making an mlm presentation to some group, talk to each fellow member. Lock eye individually while you speak because that will provide the lead you are looking at the sensation that you’re becoming honest as well as speaking straight to them. This can endear them to you and also take them from the lead to a transformation.

If you are with your friends or family to increase your system and sell your product or service, do not take benefit of them monetarily. Team members ought to be compensated pretty to avoid any kind of disturbances inside your circle. Using a bad status with one individual ruins an additional circle associated with friends and family that may have been customers of your item.

Never apply your own benefits to your network marketing sales pitch! You want to sell the lead something THEY want, not what you desire as it’s very possible they don’t want what you want. If you had kids and they don’t then not having to pay day care won’t be a benefit they care about.

There’s more that goes into gaining confidence than just reading some good information, however. Confidence requires that you have faith in what you’re doing and realize that your business will be successful. The tips you just read here can help you gain that confidence by exposing some solid, working marketing methods.

John has over 40 years of experience in business promoting sales engineering general management online real-estate planning, for the past 20 years John has been a active Meditation Student. He has worked for and with worldwide corporations such as IBM, Electronic Data Systems and Mahindra British Telecomm. He has a BS from Brown in Computer Science an MA through IBM in Industrial Electronics, he also has a PhD in Internationa! l Trade and Management from the London School of Business and Trade

Baird Adds $350 Mil Team; 4 FAs Join from Morgan Stanley

Baird says that is just added four financial advisors and opened the firm's first wealth management office in Charlotte, N.C.

The Parrott, Forbes & Floyd Group, formerly with Morgan Stanley Smith Barney, "brings 100 years of combined industry experience to Baird and collectively oversees more than $350 million in client assets," the company said in a press release.

The team joining Baird includes Michael C. Parrott, CIMA; Charles S. Forbes, CIMA, CRPS; Trea Floyd, CFP; and James Bunting.

The office also includes branch manager Landrum Henderson, who joined the company in October 2009 from Bank of America."I couldn't be more pleased to welcome Mike,

Chuck, Trea, Jim, Linda and Kristy to Baird," Henderson said in a statement. "Widely recognized as a well established and highly respected team, they will be instrumental in establishing a wealth management presence for Baird in Charlotte."

Baird's Charlotte office is currently located at 5605 Carnegie Blvd., but will relocate permanently to the Piedmont Row complex later this year.

The firm's private wealth management business continues to grow, having added more than 100 FAs in 2009 and 30 advisors and branch managers since the beginning of 2010 - the vast majority from the four wirehouses.

Baird now includes more than 650 financial advisors, who oversaw more than $58 billion in client assets as of March 31, 2010.

Best Wall St. Stocks Today: XOM,NKE,POT,TSLA,AMGN,RRC,AXE,ARMH,CE,LLY,HP,LLL,MHP,MAT,PFE,VLO,VRNG,RSH,PAY,REE,FFN

All three major indexes opened higher this morning, but the strength didn?t last as the Chicago PMI number failed to meet expectations and came in lower even than last month?s reading. The lower reading on consumer confidence also supported sellers this morning. Nothing of note was concluded on the Greek debt swap, so that had little effect on the market one way or the other. Oil major Exxon Mobil Corp. (NYSE: XOM) reported earnings in-line with expectations, that wasn?t good enough for investors today (our coverage here). Crude oil is mixed today, with WTI crude down -0.32% at $98.46/barrel and Brent crude higher by 0.31% at $111.09/barrel. Gold closed today at $1,738.10/ounce, having gained 11% this month (our view here).

The unofficial closing bells put the DJIA down nearly 21 points to 12,632.91 (-0.16%), the NASDAQ rose nearly 2 points (0.07%) to 2,813.84, and the S&P 500 fell -0.05% or less than 1 point to 1,312.40.

There were several analyst upgrades and downgrades today, including Nike Inc. (NYSE: NKE) raised to ?buy? at Argus; Potash Corp. of Saskatchewan (NYSE: POT) cut to ?neutral? at Goldman Sachs; Tesla Motors Inc. (NASDAQ: TSLA) started as ?buy? at Jefferies; Amgen Inc. (NASDAQ: AMGN) reiterated as ?buy? and target price raised to $80 at Argus; and Range Resources Corp. (NYSE: RRC) raised to ?hold? from ?sell? with a target price of $59 at Canaccord Genuity.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Anixter Inc. (NYSE: AXE) is down -3.7% at $65.25; ARM Holdings PLC (NASDAQ: ARMH) is up 1.7% at $28.84; Celanese Corp. (NYSE: CE) is down -0.95% at $48.84; Eli Lilly & Co. (NYSE: LLY) is up 1.35% at $39.78; Exxon Mobil is down -1.98% at $83.80; Helmerich & Payne Inc. (NYSE: HP) is up 2.2% at $61.64; L-3 Communications Holdings Inc. (NYSE: LLL) is up 1.3% at $70.49; McGraw-Hill Cos. Inc. (NYSE: MHP) is down -0.5% at $46.09; Mattel Inc. (NYSE: MAT) is up 5.1% at $31.04 after posting a ! new 52-w eek high today of $31.49; Pfizer Inc. (NYSE: PFE) is down -0.8% at $21.42; and Valero Energy Corp. (NYSE: VLO) is down -0.73% at $24.10.

Other standouts from today include the following stocks:

Vringo Inc. (NASDAQ: VRNG) is up nearly 21% at $1.40. The social media software maker is apparently basking in the glow of the coming IPO of Facebook. See our coverage here.

RadioShack Corp. (NYSE: RSH) is down nearly -30% at $7.19 after setting a new 52-week low of $7.15 earlier today. The social media software maker is apparently basking in the glow of the coming IPO of Facebook. See our coverage here.

Verifone Systems Inc. (NYSE: PAY) is up more than 8% at $42.61. The payment systems maker is getting a boost from a plan by Mastercard Inc. (NYSE: MA) to subsidize the installation of new card readers that use a microchip rather than a magnetic stripe to store customer information.

Rare Element Resources Ltd. (AMEX: REE) is up more than 17% at $7.22. The rare earth minerals miner is likely gaining after a ruling from the WTO that China?s restriction on rare earth minerals? exports violates global trade rules.

FriendFinder Networks Inc. (NASDAQ: FFN) is up about 19% at $1.26. The adult social media company is likely also being bought up on the prospective Facebook IPO.

Stay tuned for Wednesday. Automakers will be releasing sales figures for January throughout the day. We have noted the following events on the schedule (all times Eastern):

    * 7:00 a.m. – Mortgage Bankers Association purchase applications
    * 7:30 a.m. – Challenger Job-cut data
    * 8:15 a.m. – ADP employment report
    * 10:00 a.m. – ISM manufacturing index
    * 10:00 a.m. – Construction spending

Couch surfing: a guide

Visiting other cities, whether for work or play can be somewhat daunting. You can feel like a complete outsider when you have to leave the local parts of a city in order to sleep in an impersonal hotel. There is a way of undermining this, however, which is called couch surfing, and it’s where strangers meet online and arrange for each other to sleep on their respective couches, or stay in their space rooms. What follows is a brief look at what couch surfing is, and why anyone would want to do it.

The idea is that, people who want a cheaper or more homely accommodation while travelling join a couch surfing online community. That way they can arrange to stay on someone’s couch, or their spare room, in whichever place they want to visit. But they can’t just do this without offering something in return. The deal is, the person whose couch you stay on, is free to come and stay on your couch, too. But why would anyone want to do this?

The benefits are plenty. First of all, it is cheaper. The only thing you offer in return is your own hospitality, meaning you don’t spend a cent on accommodation while you are staying at your couch surfing partner’s house. Also, you have access to local resources, such as internet connection and telephones, which I’m sure your host will not mind you using. This is a much more homely way to stay in a foreign place.

Those people whose couch you are staying on are likely to know a lot more about the local area than a guide book or a hotel assistant. For a start, there is no vested interest in you going anywhere, or buying anything, so you’ll get an honest and reliable opinion about where to go and what to do. They can help you have a good time, without getting ripped off.

The benefit of making friends in other cities is another benefit. If you and your host really get on, then you may end up with a friend in a nice place that you can come and visit on future occasions. Couch surfing is a sociable, cheap and fun way! of doin g accommodation.

For cheap holidays to Ibiza, look no further.

MTS Systems Outruns Estimates Again

MTS Systems (Nasdaq: MTSC  ) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), MTS Systems beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.

Gross margins dropped, operating margins grew, net margins dropped.

Revenue details
MTS Systems booked revenue of $133.7 million. The three analysts polled by S&P Capital IQ hoped for sales of $124.0 million. Sales were 26% higher than the prior-year quarter's $105.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.98. The two earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.98 for Q1 were 14% higher than the prior-year quarter's $0.86 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.9%, 20 basis points worse than the prior-year quarter. Operating margin was 17.6%, 20 basis points better than the prior-year quarter. Net margin was 11.6%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $124.1 million. On the bottom line, the average EPS estimate is $0.83.

Next year's average estimate for revenue is $516.7 million. The average EPS estimate is $3.67.

In vestor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members out of 80 rating the stock outperform, and seven members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give MTS Systems a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MTS Systems is outperform, with an average price target of $53.33.

Over the decades, small-cap stocks, like MTS Systems have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

• Add MTS Systems to My Watchlist.

Business Formation Benefits

There are several ways to structure a small business and each has benefits and drawbacks. Often, people will not engage in any legal formation, running their businesses as sole proprietorships. The benefit here is only in the ability to forgo formation fees, which is a small price to pay for the protections that come with the formation of a limited liability company (LLC) or S corporation. The benefit of these entities is that they shield the owners from certain liabilities, as well as provide tax incentives in many cases. Experts advise anyone running a small business to form a structure of some kind, if only to avoid personal liability when it comes to providing their products or services. For more on this continue reading the following article from JDSupra.

Every now and then a new client comes in who has started a business, but has not incorporated or formed a limited liability company. Sometimes he or she has been operating the business for a while without any such structure. Doing so is foolish.

Almost everyone obtains liability insurance. However, that insurance does not cover all perils. Some business owners also obtain insurance against business interruptions due to perils such as fire, water damage or utility failures. In some businesses errors and omissions (“E&O”) coverage and fidelity insurance (against employee theft or other wrongdoing) is useful. It is important to know what the insurance covers – and doesn’t cover. That is a subject between you and your insurance agent.

This article concerns common forms of doing business, their differences, and what is usually the wisest route.

 

The simplest form is a sole proprietorship – someone doing business in his or her own name. Although it has the advantages of no formalities and l! ower fee s, the disadvantage outweighs them: unlimited individual liability for all obligations of the business. Even if the sole proprietor is well-insured, he or she can not escape liability for debts of the business that are not covered by insurance, such as debts to creditors.

Often a sole proprietor will file with the county clerk a certificate of assumed name, also known as a “DBA (doing business as) certificate”. However, such a filing does not protect against liability.

A general partnership is an association of two or more persons to conduct a business as co-owners. Each partner has unlimited personal liability, just like with a sole proprietorship. To make matters worse, each partner is an agent for the others and for the partnership business. A partner may find himself or herself liable for something another partner did. A partnership is legally dissolved upon the death, bankruptcy or withdrawal of any partner. This type of arrangement rarely should be used. If it is, a detailed written agreement is essential.

For the vast majority of small businesses, the preferred form is either an S corporation or a limited liability company. In both cases, owners typically are not personally liable for debts of the entity. There are certain important exceptions, such as for employee wage claims and withholding, social security and sales taxes, which are considered to be obligations held in trust.

As in a sole proprietorship and a partnership, income to members of a limited liability company is taxed directly to them. No separate income tax is paid by the entity. Likewise, if certain tax elections are filed on behalf of a corporation shortly after it is formed choosing to be treated as an S corporation, the income of the corporation will not be separately taxed; only the compensation paid to employees and owners will be taxed.

Both a corporation and a limited liability company can have as little as one owner. An S corporation can not have more than 75 owners, and they each must be an individual, a decedent’s estate or a certain type of trust. There also must only be one class of stock, which means that profit must be divided in accordance with the percentage of ownership.

A limited liability company does not have such restrictions. However, in most cases these restrictions are not a concern, and the S corporation usually is chosen. The cost of creating the entity is not expensive. A limited liability company costs several hundred dollars more, mostly because of the requirement of publication of “the birth” in newspapers.

This is not meant to be a thorough explanation of business forms. For example, two or more persons or entities also may form a limited partnership. In this entity, there are one or more general partners, with unlimited liability for the debts of the business and general powers of management, and one or more limited partners, with no personal liability for debts of the business and no management power. Professionals may incorporate as a professional corporation or a limited liability partnership, with similar results, except each professional still is personally liable for his or her own negligence or misconduct and that of any person under his or her direct supervision and control.

Tax consequences of each form of ownership must be discussed with a tax expert. In all cases, a written agreement among the owners is important. It should cover items such as duties of each person involved, their compensation and their rights regarding sale or other transfer of their ownership interests. It also should provide rules in the event of death or disability of an owner, and in the event that one decides to sell or cease doing business. Although the cost of cr! eating s uch an agreement is additional to the cost of legally forming the entity, it is money well spent. If a dispute arises between co-owners who have no such agreement, invariably, resolution of the dispute is more expensive. The result also might not be what they expected. With thanks to Ben Franklin, “An ounce of prevention is worth a pound of cure.”

 

General Electric: 5 Reasons to Buy, Says Bernstein

General Electric (GE) shares have dipped since Bernstein Research analyst Steven Winoker downgraded them in January, even though the biggest threat — an expensive industrial acquisition — never materialized. Now Winoker sees plenty of upside for the stock, and thinks shares could climb to $21 from $16.37 at yesterday’s close.

Winoker sees five potential catalysts:

1. More dividend raises, pushing the yield above 4%.
2. The resumption of a dividend paid by GE Capital to the larger corporation upon Fed approval.
3. free cash flow growing 10% per year to more than $11 or $12 billion, offsetting pension costs.
4. Rising gas turbine orders anticipated in mid-2012 helping pricing and margins in energy.
5. good upside/downside valuation. “To the downside, we assume our severe recessionary scenario EPS which is ~25% below our base case, as well as multiple contraction and that would result in ~$13-14 per share. On the current stock price of $16, this suggests ~2:1 upside/downside.

GE shares rose 2.9% to $16.80 in afternoon trading.

Investors Turn to TIPS as Warren Buffett Warns on Inflation

Warren Buffett last week did more than warn investors on the dangers of low interest rates and inflation.

The Oracle of Omaha also had harsh words for traditional bonds.

In a Fortune article Buffett went so far as to say, "Right now bonds should come with a warning label."

"They are among the most dangerous of assets," Buffett wrote, "Over the past century these instruments have destroyed the purchasing power of investors in many countries."

To prove his point Buffett labeled inflation as the primary threat to bond investors, noting it takes no less than $7 today to buy what $1 did in 1965.

Instead of bonds, Buffett recommends "productive assets," including farmland and real estate.

But he saved his highest praise for stocks, especially the stocks of companies like The Coca-Cola Co. (NYSE: KO) and International Business Machines Corp. (NYSE: IBM), that consistently deliver inflation-beating returns.

But what if you're not comfortable betting most or all of your chips on stocks? And if traditional bonds are out, where else can investors turn for inflation beating returns?

TIPS Insure Wealth Against Inflation

Enter Treasury Inflation Protected Securities, or TIPS.

Unlike regular bonds, TIPS are designed to protect your principal against the ravages of inflation.

In fact, TIPS zig when other securities zag, providing diversification and safety to your portfolio.

TIPS are considered to be an extremely low-risk investment since they are backed by the U.S. government, and their par value rises with inflation while their interest rate remains fixed.

Here's how they work.

Like conventional bonds, TIPS pay interest twice a year at a fixed rate. But the principal of a TIPS bond is periodically adjusted to offset any i! ncrease in inflation as measured by the Consumer Price Index (CPI).

When a TIP matures, you are paid the adjusted principal or original principal, whichever is greater.

Investors should note the principal will also adjust to fall with deflation and the interest is subject to federal income tax, but exempt from state and local income taxes.

There are two main benefits of TIPS.

The first is that they're essentially Treasury bonds indexed to inflation. That eliminates one of the key risks for bond investors - rising interest rates. By buying TIPS you're essentially betting on higher interest rates and inflation.

And with governments around the world unleashing untold amounts of fiscal stimulus, there are plenty of investors who are buying TIPS to get insurance against an inflationary cycle.

Second, debt sold by the Treasury Department is guaranteed by the full faith and credit of the federal government. It's fairly inconceivable that the folks who actually print the money will default on their debt.

And if you hold TIPS to maturity you know exactly what you are going to get: all of your money back, with interest, and with both principal and interest adjusted for inflation.

How to Invest in Treasury Inflation Protected Securities

TIPS are also easy to buy.

You can buy new-issue TIPS directly from the TreasuryDirect system in 5-, 10-, and 20-year maturities. Or you can get them from a broker, an exchange traded fund (ETF) or a mutual fund. More than 20 fund companies offer TIPS funds.

Most analysts say TIPS are appropriate for most investors.

"TIPS should be part of every fixed-income portfolio," Donald Ellenberger, a government bond manager at Federated Investors Inc. told Business Week.

So how do you know what to buy?

If you're extremely concerned about a near term spike in inflation you! might c onsider buying a short term TIPS or the PIMCO 1-5 Year U.S. TIPS Index (NYSE: STPZ).

The yield is extremely low but it is almost a pure play on inflation. They are also less risky than longer term TIPS. The ETF returned 6% over the last 12 months.

The sweet spot in terms of risk and return on TIPS is probably around five years. Buy-and-hold investors should do well by purchasing TIPS in those maturities or the iShares Barclays TIPS Bond ETF (AMEX: TIP). The fund returned 13.38% in 2011.

A long-term buy-and-hold investor could purchase 20-year TIPS or the PIMCO 15+ Year US TIPS Index ETF (AMEX: LTPZ). The ETF returned 25.32% in 2011, slightly below the return on long-term Treasuries.

You might want to consider owning all three.

By laddering a mix of ETFs with variable maturities, an investor could both diversify and restock his portfolio with a reasonable alternative to bonds.

After all, Warren Buffett is right about inflation. That makes TIPS a great hedge against the power of the printing press.

News & Related Story Links:

• Money Morning:
  Not Much of a Debate: Inflation is Part of the Plan
• Money Morning:
  How to Win Bernanke's War on Savers with a 19% Yield
• Money Morning:
  Why I'm Taking Gold Double-Eagles on My Next Trip to Utah
• Fortune:
  Warren Buffett: Why stocks beat gold and bonds

Top Hi-Tech Stocks - Progress seen toward Greek rescue deal

Demonstrators from the Communist-affiliated trade union PAME march to the parliament building in Athens, in protest against new austerity measures.

FRANKFURT (MarketWatch) ? With pressure mounting, Greek party leaders were reportedly close Tuesday to finalizing an agreement for a second rescue package needed to avert a chaotic default that could propel Greece out of the euro.

Several news reports said government officials drafted a final document detailing provisions of a 130 billion euro ($170 billion) rescue package. The document is set to be presented to leaders of the three parties that back Prime Minister Lucas Papademos?s interim unity government at a meeting on Wednesday, after being postponed from late Tuesday.

Hopes that the development signals an imminent agreement on austerity measures demanded by the European Union and the International Monetary Fund in return for the rescue package helped lift the euro EURUSD , which jumped 0.6% against the dollar to trade at $1.3205. Read more in Currencies.

Papademos conducted negotiations with Greece?s so-called troika of international lenders ? the IMF, the EU and European Central Bank ? that lasted until early Tuesday morning. This followed hard-fought talks between party leaders over the weekend.

Greece a! greed to lay off 15,000 public-sector workers by the end of the year, meeting one of the demands posed by the country?s international creditors. But party leaders had yet to agree on EU and IMF demands for private-sector wage cuts and other cutbacks they say must be delivered in order for Greece to receive the ?130 billion in what would be a second bailout.

Without the additional aid, a default by Greece is seen as a certainty when a ?14.5 billion debt repayment comes due in March. Economists fear a disorderly default could stir massive market turmoil and lead to Greece?s exit from the euro.

Click to Play
Time is not on Greece's side

The euro-zone dominoes are teetering. Now, the probability of Portugal following Greece down an economically chaotic path has grown substantially. (Photo: Reuters.)

But with Greece entering a fifth year of recession and unemployment nearing 20%, party leaders have been reluctant to impose further cutbacks. The economy has contracted by around 12% since 2008.

?With national elections possible by April, it is clear that none of the parties want to be seen condemning the country to more draconian austerity,? said Steven Barrow, currency and fixed-income strategist at Standard Bank, in a note to clients.

?Our assumption is still that the parties will agree to the plans, but it is going down to the wire, which may unnerve the markets and we might also find that when (or if) a deal is agreed, the relief rally is pretty limited,? Barrow said.

Greece is also attempting to wrap up negotiations with private-sector creditors on voluntary write-downs for privately held Greek debt, with the aim! of cutt ing Greece?s debt pile by around ?100 billion.

Meanwhile, Greek unions staged a day-long strike to protest the demands for cuts. Private-sector unions and employers? associations have protested calls by the troika for wage reductions, although news reports on Monday said party leaders were near agreement on a 20% reduction in Greece?s minimum wage.

Meanwhile, economists noted increased contemplation of a Greek exit from the euro in Athens and elsewhere.

A senior Socialist party official told a Greek radio station that Papademos had instructed the nation?s finance ministry to document the economic costs of abandoning the shared currency, Dow Jones Newswires reported Tuesday.

Neelie Kroes, the European Commission?s vice president, told a Dutch newspaper that an exit by Greece wouldn?t be a disaster for the shared currency.

?It?s always said that if you let one country get out, if it asks to get out, then the whole structure collapses. But that?s simply not true,? Kroes said, according to the BBC. ?The Greeks have to realize that we Dutch and we Germans can only sell emergency Greek aid to our taxpayers if there?s evidence of good will.?

Carsten Brzeski, economist at ING Bank in Brussels, believes there?s good reason to doubt if European leaders will ultimately allow a disorderly Greek default. Such a move by Greece would threaten efforts to stabilize Spain and Italy ? much larger and more crucial euro-zone economies ? ?and would completely reverse latest confidence gains in markets,? he said in a research note.

?Despite the current excitement and uncertainties, our baseline scenario remains that there will be an agreement on a second bailout package for Greece,? Brzeski! wrote.

Best Energy Stocks To Invest In - U.S. stocks face jobs data, Iran tensions

Best Energy Stocks To Invest In - MARKETWATCH FRONT PAGE

U.S. stocks have shined this year, but investors may find a reason to book gains next week if jobs data prove a disappointment, analysts say See full story.

Best Energy Stocks To Invest In - Why dividend stocks top TIPS for income investing

Income-seeking investors nowadays face a Hobson�s Choice that forces them to hold their noses and plunge. But one income-generating option is capturing the attention of investors and investment advisers alike: Swapping inflation-protected Treasurys, or TIPS, for dividend stocks with yields exceeding 3%. See full story.

2013 Chevrolet Malibu Eco

If you�re looking for an American car with good gas mileage, comfort and solid build quality, the Chevrolet Malibu Eco should be on your shopping list, says Ron Amadon. See full story.

From fast to frugal at Geneva car show

First stop on the European circuit hits Switzerland early in a pivotal year not only for the region but for the rest of the world as well. See full story.

Super Tuesday: 5 things to watch

Five things to watch when 10 states vote next week on Super Tuesday, when more delegates are at stake in the Republican nominating contest than any other single day on the calendar. See full story.

Best Energy Stocks To Invest In - MARKETWATCH COMMENTARY

Instead of acknowledging that banks have become a part of government, we keep pretending they are private institutions, writes David Weidner. See full story.

Best Energy Stocks To Invest In - MARKETWATCH PERSONAL FINANCE

!

Higher fees are sneaking into the overall cost of most mortgages. But given ultralow interest rates these days, it�s likely few borrowers will notice. See full story.

ow One Chart Can Double Your Trading Gains

If you follow one simple chart, you will have the chance to double your trading gains.

I?m not talking about a one-time boost to your brokerage account, either. If you follow the chart I?m about to reveal, you will have the opportunity to quickly and permanently improve your trading results.

You don?t need to know anything about technical analysis. You don?t have to interpret confusing indicators. You only need to recognize a few lines on the chart that I?m about to show you. And if you?re willing to use this chart to create a new trading plan, I guarantee you will see immediate and lasting results.

Best of all, this chart works for any timeframe. Your investing horizon doesn?t matter one bit with this strategy. You could be looking at a weekly chart, a daily, or even a 30-minute chart for a quick swing trade. The technique remains the same.

Without further delay, here?s the chart that will renew your trading success:

The name of the stock and the time frame are not important. What I want you to concentrate on is the area inside the blue box. The price movement inside the box contains the meat of this particular stock?s big move from $20 to $110. But if I had to bet, I would guess that a majority of traders and investors who attempted to play this stock did not book the gains you see contained inside the blue square.

That?s because most traders allow greed to creep into their analysis. They want to profit from the entire move ? not just the strongest, most predictable section. Using our chart as an example, the trader wants in at $20. And he wants to exit at the trend?s absolute peak.

Not only are these expectations totally unrealistic ? they can quickly damage your overall returns.

Here?s how…

Let?s say our trading friend times his entry co! rrectly and waits for the stock to break out. He buys near $40 ? right as the stock crosses into the blue box. The market proves his analysis correct as the stock moves higher. Fast-forward a couple of weeks, and our trader is sitting on big gains when the stock breaks $100.

Unfortunately, the stock?s strong performance has distracted our trader from the realities of his investment. That?s when the greed kicks in. He becomes obsessed with the potential profits. Instead of diligently planning his exit, he?s counting down to the next big move.

That?s when the stock shows its first signs of stress, hitting $90 again. It then takes an even bigger hit, dropping below $70. Instead of selling, our trader wants to wait it out. After all, he?s already seen those big open gains in his account from when the stock was at its peak. Now, our trader?s reasoning quickly turns from hopeful to irrational…

If it could just get back to $100 ? then I?ll sell.

This is exactly the kind of thinking that turns big winners into average trades… or worse.

Our trader was looking for home-run gains. Now he?s sweating out a big reversal. As the stock continues to drop, our trader friend finally decides he wants out. In a panic, he sells his shares as the stock finally dips into the $40-range once again.

Instead of more than doubling his money by taking a huge gain, our trader ends up stubbornly waiting for windfall profits. In the end, he takes profits that are a little more than a tenth of what he once had on the table.

That?s why you have to trade inside the box. That means limiting your expectations to the middle section of a stock?s big move. You?ll never get rich trying to guess when a stock will bounce. The same goes for guessing when shares will peak.

But if you patiently wait for a stock to break above resistance, you have a chance at riding a big move like the one shown on our example chart. And if you already have a plan in place, you don?t have to let hope take ov! er. When the stock?s move begins to lose momentum, you can set a stop-loss just below the final leg of the big, inside-the-box move. Once shares fall back into the trading box, you sell.

In our example, that would have turned a break-even trade into a triple-digit gainer. By trading with a set plan to only go after the middle portion of a stock?s move, you would have been able to ride this stock from $40 to about $85. That?s an amazing trade! And it can be done with just a little planning.

Every trade matters. Turning just one, hopeful break-even trade into a 100%-plus gain can double your gains every single month. Think of it this way: if you have two losses adding up to $500, two break-even trades, and two gains adding up to $1,000, your trading profits for the period would equal $500 (excluding commission).

Now let?s say you improve one of those breakeven trades by planning ahead. You decide to only go after the strongest part of the stock?s move. This turns your trade from a $0 gain into a $500 gain ? effectively doubling your profits for the period.

It didn?t cost you any extra commission or fees. All it took was my simple rule and a little planning. You?re not making any extra trades. You?re not even improving your winning percentage. In this scenario, you?re only booking gains on 50% of your trades. And you?re still doubling your gains! The big gains offset the smaller losses, quickly adding up to substantial profits.

The next time you?re about to trade a stock, remember to set your sights inside the blue box. Trading with a solid game plan will make a world of difference. You?ll see the results every single month when you tally up your gains.

Great Energy Stocks To Own For 2014

I was a bit surprised when I took a look at the best performing ETF’s in 2014, especially when I saw that coal related stocks had done so well. There is so much discussion about the older energy sources such as coal, oil and natural gas that have been moving our economy for decades. Climate change discussions as well as rising commodity prices have helped bring alternative or renewable energy discussions to the front table.

The problem of course is that these new energy sources are often much more expensive and while that may change in the future, it is not clear how much time it will take. It seems like I have been reading about electric or hydrogen cars for over a decade and yet there is no sign of when a gasoline free car will be mass produced.

However, I don’t think anyone could argue that there will be some big winners in the alternative energy field. Just imagine the company that can produce that first battery or solar car?? There will be some big winners in this field, just as there were in the early days of pc’s or of the internet. But finding the right one is the tricky part.

The million dollar question is also how much time it will take to get alternative energy in the driver’s seat. Could coal and oil be at the top of the 2014 best performing stocks? It could happen. In the end, I decided not to use any energy picks in my top stock picks for 2014 but I do still believe there is money to be made. By far, the biggest alternative energy category is solar energy.

Great Energy Stocks To Own For 2014:Global Industries Ltd. (GLBL)

 Global Industries, Ltd., together with its subsidiaries, provides construction and subsea services to the offshore oil and gas industry in the North America, Latin America, and the Asia Pacific/the Middle East regions. The company?s services include pipeline construction, platform installation and removal, construction support, diving services, diverless intervention, and marine support services. As of December 31, 2010, its fleet included four derrick lay barges, one pipelay/derrick vessel, one heavy lift ship, one pipelay barge, four multi-service vessels, one dive support vessel, and one offshore supply vessel. The company serves oil and gas producers and pipeline companies. The company was founded in 1973 and is headquartered in Carlyss, Louisiana.

Great Energy Stocks To Own For 2014:Transportadora De Gas Sa Ord B (TGS)

 Transportadora de Gas Del Sur S.A. engages in the transportation of natural gas, as well as production and commercialization of natural gas liquids primarily in Argentina. It operates approximately 8627 km long pipeline system. The company transports its natural gas to distribution companies, industries, traders, producers, and power plant operators. The company?s production and commercialization activities are conducted at the Cerri Complex located near Bahia Blanca. Its natural gas liquid products comprise ethane, propane, butane, and natural gasoline. It also provides midstream services, which consist of gas treatment, gas compression, and wellhead gas gathering services; removal services for impurities from the natural gas stream; and pipeline construction, operation, and maintenance services. In addition, the company offers telecommunication services for telephone operators and other corporate users. Its telecommunication network includes a microwave's digital system with synchronous digital hierarchy technology. The company was founded in 1992 and is based in Buenos Aires, Argentina. Transportadora de Gas Del Sur S.A. is a subsidiary of Compania de Inversiones de Energia S.A.

Great Energy Stocks To Own For 2014:Kayne Anderson Energy Development Company (KED)

 Kayne Anderson Energy Development Company is a principal investment firm specializing in energy investments. The firm prefers to invest in midstream energy companies. It seeks to invest between $10 million and $75 million. The firm typically invests in non-traded companies through equity and debt instruments. Kayne Anderson Energy Development Company is based in Houston, Texas.

Great Energy Stocks To Own For 2014:Linn Energy LLC (LINE)

 Linn Energy, LLC, an independent oil and natural gas company, engages in the development and acquisition of oil and gas properties in the United States. The company holds interests in various properties located in Oklahoma, Kansas, Louisiana, Illinois, Michigan, and California, as well as located in the Permian Basin in west Texas and southeast New Mexico. As of December 31, 2010, it had proved reserves of 2,597 billion cubic feet equivalent of oil and gas, and natural gas liquids, as well as operated 7,097 gross productive wells. The company was founded in 2003 and is headquartered in Houston, Texas.

Great Energy Stocks To Own For 2014:Delta Natural Gas Company Inc. (DGAS)

 Delta Natural Gas Company, Inc. distributes or transports natural gas in central and southeastern Kentucky. It operates through two segments, Regulated and Non-Regulated. The Regulated segment sells and distributes natural gas to its retail customers primarily in 23 rural counties. This segment also transports gas to industrial customers on its system who purchase gas in the open market, as well as transports gas on behalf of local producers and other customers not on its distribution system. The Non-Regulated segment purchases natural gas in the open market, primarily from Kentucky producers, and resells this gas to industrial customers on its distribution system and to others not on its system. This segment also produces natural gas that is sold to Delgasco for resale in the open market. The company owns approximately 2,500 miles of natural gas gathering, transmission, distribution, storage, and service lines; and holds leases for the storage of natural gas under 8,000 acres located in Bell County, Kentucky. It serves approximately 37,000 customers. The company was founded in 1949 and is headquartered in Winchester, Kentucky.

Great Energy Stocks To Own For 2014:Niska Gas Storage Partners LLC (NKA)

 Niska Gas Storage Partners LLC owns and operates natural gas storage assets in North America. It owns or contracts for approximately 185.5 billion cubic feet of total gas storage capacity. The company owns and operates gas storage facilities in Alberta, Canada, as well as in northern California and Oklahoma, the United States. Its gas storage customers include financial institutions, producers, marketers, power generators, pipelines, and municipalities. The company was founded in 2006 and is headquartered in Houston, Texas.

Great Energy Stocks To Own For 2014:Occidental Petroleum Corporation (OXY)

 Occidental Petroleum Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company primarily in the United States. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. The Oil and Gas segment explores for, develops, produces, and markets crude oil, natural gas liquids, and condensate and natural gas. Its domestic oil and gas operations are located in Texas, New Mexico, California, Kansas, Oklahoma, Utah, Colorado, North Dakota, and West Virginia; and international oil and gas operations are located in Bahrain, Bolivia, Colombia, Iraq, Libya, Oman, Qatar, the United Arab Emirates, and Yemen. As of December 31, 2010, this segment had proved reserves of approximately 3,363 million barrels of oil equivalent. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, and ethylene dichloride products; vinyls, such as vinyl chloride monomer and polyvinyl chloride; and other chemicals comprising chlorinated isocyanurates, resorcinol, sodium silicates, and calcium chloride products. The Midstream, Marketing, and Other segment gathers, treats, processes, transports, stores, purchases, and markets crude oil that includes natural gas liquids and condensate, as well as natural gas and carbon dioxide. This segment also involves in the power generation; and trades around its assets comprising pipelines and storage capacity, as well as oil and gas, other commodities, and commodity-related securities. Occidental Petroleum Corporation was founded in 1920 and is based in Los Angeles, California.

Advisors' Opinion:

• By Paul At 2011-10-6

  Occidental Petroleum (OXY-N75.722.463.36%) is an integrated oil-and-gas company, with operations in the U.S.

  The Los Angeles-based company has strong operating momentum, having grown 12-month sales 27 per cent and net income 76 per cent. Its stock has been a top performer over a three-year span, having gained 12 per cent a year, on average. Occidental has a market capitalization of $78-billion. It receives positive rankings from 84 per cent of researchers. It is scheduled to report fourth-quarter results on Jan. 26. Analysts forecast a 17 per cent year-over-year rise in adjusted earnings and a 7.6 per cent gain in sales. Occidental has an average earnings surprise rate of 6.6 per cent. It beat the consensus expectation by 8.2 per cent last quarter.

  Like Chevron and El Paso, what is most attractive about Occidental is its relative value amid strong secular growth. Its stock sells for a forward earnings multiple of 13 and a book value multiple of 2.5, 28 per cent and 43 per cent peer discounts. Its PEG ratio, the stock's P/E divided by researcher's long-term growth forecast, of 0.3 represents a 70 per cent discount to estimated fair value, a compelling bargain. Occidental pays a quarterly dividend of 38 cents, converting to an annual yield of 1.6 per cent. It has grown the payout 16 per cent and 18 per cent annually, on average, respectively, over three- and five-year spans. JPMorgan, optimistic about Occidental's long-term trajectory, is skeptical of the recent rally.

  Bullish Scenario: Goldman Sachs has a target of $111, suggesting a 13 per cent advance.

  Bearish Scenario: JPMorgan has a target of $90, implying that the stock will drop 8 per cent.

German automaker makes sequel to 2011's Super Bowl ad hit

Volkswagen (PINK:VLKAY) gave into the dark side — again.

The German automaker struck advertising gold with last year�s Super Bowl commercial smash — a bit simply dubbed The Force that topped Unruly Media�s most-shared Super Bowl ad list.

Now Volkswagen is tapping the Star Wars franchise again in hopes of reclaiming viral supremacy against a slew of other big-name advertisers, including auto rivals Toyota (NYSE:TM) and Honda (NYSE:HMC).

Volkswagen released this video of the ad, titled The Dog Strikes Back, on YouTube prior to its Super Bowl television airing.

A word to the wise, Volkswagen: If you do an extended version of this Super Bowl ad, Han had better shoot first.

– Kyle Woodley, InvestorPlace.com Assistant Editor

Best Wall St. Stocks Today:

Ben Bernanke, the head of the Federal Reserve, sent the chiefs of the House Committee on Financial Service a 24-page note about the problems of the housing market and the need for�them to be solved if the economy is to recover. He might as well have spent his time on something else. Nothing in his document broke any new ground. The Fed has no better solutions to the collapse in home prices and the fallout from it than any other person or organization.

Most of what Bernanke had to report is a recitation of�the current trouble in the housing system. And, most of it is stock stuff: Mortgage problems are related to joblessness. People who are creditworthy often cannot get home loans. Home prices are down 33% from their 2006 peak. The federal government�s attempts to resolve the troubles have been ineffective.

Bernanke�s conclusion�is that, �Looking forward, continued weakness in the housing market poses a significant barrier to a more vigorous economic recovery.� He suggests that Fannie Mae and Freddie Mac could do more to support housing, if only taxpayers were willing to shoulder the burden of more short-term losses at the agencies.

Part of the Bernanke solution is that more homes in foreclose should be�converted to rental properties. And unnecessary foreclosures should be, based on new policies that might be adopted by Congress, avoided. But banks will resist a set of new foreclosure standards because they likely would cause losses. The conversion of�foreclosed homes to rental would take years and incalculable sums of money.

Most of what Bernanke says about the housing problem, its effects and possible solutions is reasonable. What is not reasonable�is that taxpayers might�believe that if they risk more of their tax dollars now, they will benefit from a recovery of the housing market in several years. This potential�process�also�assumes that Congress has the will to put a larger portion of the federal budget toward a set of solutions to mortgage troubles, at a time when the deba! te about national budget austerity consumes much of what is discussed�in the House and Senate. Gridlock may contribute�to the lack of a housing solution. A larger contributor is that Americans are concerned with jobs, taxes and entitlement programs much more critical to them�than anything else. The agenda plate is full.

Bernanke and other people of stature can send as may letters and lists of solutions to Congress as they can write. None will make any difference. Housing is a major problem for the U.S., but it is one that will be left mostly to troubled�homeowners and those with foreclosure problems. No one else cares enough.

Douglas A. McIntyre

They used to be stalwarts, but their lofty P-Es are no longer justified

There�s nothing better for a long-term diversified portfolio than allocating a portion of it to what I call a Dividend Stalwart. These companies are named for Peter Lynch�s concept of a �stalwart� company — one whose fast-growth days are behind it but is now a solid brand name that is still growing at 8% to 10%. I add the �dividend� modifier for those stalwarts that also pay a dividend that at least meets the rate of inflation.

There was a time when certain consumer staples fit this category — and as staples, these companies always grow because people always need to buy their products. But things have changed for a few companies in this category, to the point where I would sell them if you�ve got ‘em.

Campbell Soup Company (NYSE:CPB) used to be one of these go-to stocks. Yet after the brunt of the financial crisis in 2008 and 2009, net income dropped in FY 2011, is set to do so again in 2012 and then recover in 2013 to just a bit under 2011 levels. That�s a company going backwards and not deserving of the 14.5 P-E CPB currently carries, even including the 3.5% dividend. This is an overvalued operation at the moment, as well as for the near future. Why risk a capital loss to collect a 3.5% dividend when you can get a 5% dividend from a company that�s much more likely to hold its own, such as AT&T (NYSE:T).

The new J.M. Smucker Company (NYSE:SLM) was another of these stalwarts that kind of flew under the radar for a long time. It wasn�t an obvious choice. The same problem that plagues Campbell Soup is sticking in Smuckers� jam — net income is falling despite very aggressive share repurchases, which boosts net income. Earnings are expected to fall 2% this year, after falling 3% last year. Free cash flow is fine at $210 million except that all of that money is being used to pay the 2.6% dividend. This company trades at a lofty P-E of 16. That�s way too hi! gh consi dering the circumstances. Sell.

I�m on the fence about H.J. Heinz (NYSE:HNZ). It’s right on the cusp of being an acceptable holding, but I�d look closely at whether HNZ deserves a place in your portfolio. Earnings grew 15% in FY 2011 and are slated to grow at an 8% clip going forward. The dividend is at 3.5%. The P-E is 17, though, and I think that�s pricey. That suggests that the company is worth twice its growth rate. If it were throwing off billions in free cash flow, I�d agree to that premium, but there are other companies that do exactly that that trade for less.

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

Housing: A brewing bull?

For the past ?ve years, no sector has performed as poorly as the housing group. But could a bull market be brewing in the sector?

We think it�s fair to say that no sector (except for possibly the ?nancials) is as despised as housing-related stocks. And for good reason, as they�ve truly been the dog�s dinner.

�So why are we writing about housing stocks?� Because, slowly but surely, we�re seeing signs that the sector has turned the corner. �

Don�t get us wrong�we�re not calling for a new housing bubble or even a major boom. But based on the fundamentals, even a little improvement would result in huge growth. �
Combined with the massive cutbacks by housing-related ?rms, any sizable pick-up in demand would fall right to the bottom line.

And we�re seeing actual signs of improvement�during the last four months, year-over-year housing starts were up 10%, down 5%, up 8% and up a big 21% in the most recently reported month.� September saw the largest number of housing starts (658,000) in 17 months. �

And perhaps most important, individual homebuilders are beginning to talk encouragingly, with cancellations down, prices up and stable-to-growing backlogs during the last quarter or two.

Last but not least are the charts, and we�ve been impressed with the powerful rebounds seen in many names since the October bottom, and on big volume to boot. �

We like what we�re seeing in the charts of homebuilders like Toll Brothers (TOL), Lennar (LEN) and D.R. Horton (DHI) -- not just their multi-week upmoves but, more impressively, the big volume and other signs of major accumulation. �

Lennar, for instance, recently notched seven up-weeks in a row�the ?rst time it�s accomplished that feat since 2004.

Even Home Depot (HD! ) has se en its stock hit ?ve and-a-half year highs in recent weeks on big volume, while its RP line surges.�

Now, turnaround-type stocks will never be the core of our Model Portfolio; but iwe think that after a six-year meltdown, housing stocks could be coming back into favor. It�s something to watch in 2012.

Crude Rallying Higher, but Oil Stocks Mixed

Exxon Mobil (XOM) investors decided not to catch a ride on the big oil rally at the end of the trading day on Thursday, as the integrated oil giant has been trading flat for most of the day and is now down about 0.2%. (Exxon reported a slight increase in proved reserves today, which may account for the stock’s sluggishness.)

After starting the day in the red, oil prices jumped toward the end of the day on a report that showed inventories rose less than expected. Nymex crude futures were recently up about 1.5% at $107.85 per barrel.

Oil’s big five-day rally (up more than $5) has helped most of the sector, though to varying degrees. Oil-rich company Suncor (SU) is up 7.6% in the past five days, while lumbering behemoths like Chevron (up 2.6% over that period) have gotten less of a pop.

Investors may be hesitant to believe an oil rally that may have more to do with weakness in the dollar and threats by Iran to cut off European oil supplies than a real change in supply-demand characteristics.

And of course, the stocks that rise highest on a jump in oil prices tend to fall harder on the down-slope.

Best Stocks In 2014

Wall Street's top strategists have been unveiling their 2014 S&P 500 year end forecasts.  Calls range from bold and ballsy to reluctant and conservative.

They see the S&P 500 ending 2014 slightly lower to up as much as 20% from yesterday's close of 1,254. Earnings are expected to be flat to up around 10%. Most see modest GDP growth in the U.S., and many expect more quantitative easing from the Fed.

However, all warn that Europe remains a wild card.  Most assume a eurozone recession in their base case scenario.  But should Europe's debt crisis escalate and contagion ensue, all bets are off and stocks will tank.  Then again, if the crisis is contained, then most would argue that the sky's the limit.

We've written before that our favorite line came from Nomura's 2014 Global Strategy Outlook:

Putting things bluntly, either we have another very serious credit event with consequences at least as severe as the Lehman Brothers bankruptcy, or stocks are probably a buy.

Anyway, we read through hundreds of pages of research published by 16 of Wall Street's very best. Here's a summary of their 2014 forecasts:

Best Stocks In 2014:Siemens AG (SI)

 Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, and healthcare sectors worldwide. In the industry sector, the company?s portfolio ranges from industry automation and drives products and services to building, lighting, and mobility solutions and services, as well as includes system integration and solutions for plant business. It offers automation and drives, industrial solutions and services, transportation systems, and Siemens building technologies. In the energy sector, Siemens provides solutions for the generation, transmission, and distribution of power; and extraction, conversion, and transport of oil and gas in the oil and gas industry. In the healthcare sector, it develops, manufactures, and markets diagnostic and therapeutic systems, devices, and consumables; and offers IT systems for clinical and administrative purposes. The company also provides technical maintenance, professional, consulting, and financing services. In addition, Siemens provides financial products and services, such as commercial finance, equity and project finance, treasury and investment management, and project and export finance. Additionally, the company offers insurance solutions, such as claims management; and acts as a broker of company-financed insurances, as well as engages in real estate business. It also has equity investments in a telecommunications infrastructure supplier, household appliance, defense technology, and communication and entertainment device companies, as well as in companies that provide technical building equipment and installation services; and open communications, network, and security solutions. The company was founded in 1847 and is headquartered in Munich, Germany.

Best Stocks In 2014:Deswell Industries Inc. (DSWL)

 Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.

Best Stocks In 2014:Crown Crafts Inc. (CRWS)

 Crown Crafts, Inc., through its subsidiaries, offers infant and toddler products primarily in the United States. Its products include crib and toddler bedding, blankets, nursery accessories, room d�cor, burp cloths, bathing accessories, disposable placemats, toilet seat covers and changing mats, and other soft goods, as well as disposable and reusable bibs, and floor mats. The company offers its products to retailers, mass merchants, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, Internet accounts, wholesale clubs, and catalog retailers. It sells its products through sales force, independent commissioned sales representatives, and distributors. The company was founded in 1957 and is headquartered in Gonzales, Louisiana.

Best Stocks In 2014:NTT DOCOMO Inc (DCM)

 NTT DOCOMO, Inc. provides wireless telecommunications services, packet communications services, and satellite mobile communications services in Japan. It offers wireless voice and data communication services, such as second generation (2G) and third generation (3G) cellular services, and mobile multimedia services. The company provides mova services, on the 2G network, compatible with voice and data communication; FOMA services, on its 3G network, with voice and high-speed data communication, which are compatible with various services, such as videophone and video content downloading; and i-mode services, which are wireless Internet access services. As of March 31, 2010, it had approximately 56.08 million cellular subscribers. NTT DOCOMO also offers packet communications services, such as wireless data communications services using packet switching; satellite mobile communication services for communications in case of emergencies; and international calling and international roaming services. In addition, the company provides mopera U Internet connection services for data cards and smartphones; embedded modules for automobile fleet management, wireless credit card settlement systems, and telemetric systems for automatic inventory checks between vending machines and service centers; and MyArea services that offer high-speed packet communication services for homes. Further, it offers home shopping services through TV media, high-speed Internet connection services for hotel facilities, advertisement services, and credit services, as well as develops, sells, and maintains IT systems. The company was formerly known as NTT Mobile Communications Network, Inc. and changed its name to NTT DOCOMO, Inc. in April 2000. NTT DOCOMO was founded in 1991 and is based in Tokyo, Japan. NTT DOCOMO, Inc. operates as a subsidiary of Nippon Telegraph and Telephone Corporation.
Advisors' Opinion:

• By Hesler At 2011-9-26
  Japan’s largest wireless telecom operator has a 49% m! arket sh are, holds $11 billion in cash, and pays a 3.2% dividend. Need I say more? Okay I will. It’s free cash flow if very strong and the company is reasonably valued at 11 times forward earnings and less than five times cash flow.
  The company is a technological leader, being the first to roll out a high-speed third-generation (3G) network. In December 2010, it began offering long-term evolution (LTE) 4G broadband services, which have much higher profit margins than basic voice service. Phone service is recession-resistant as Japanese loves to talk. The company is also benefitting from the strong growth in emerging markets because it owns a 27% stake in India’s fourth-largest wireless operator (Tata Teleservices).

Best Stocks In 2014:Equity One Inc. (EQY)

 Equity One, Inc., a real estate investment trust (REIT), engages in the ownership, management, acquisition, renovation, and development of neighborhood and community shopping centers in the United States. Its shopping centers are anchored by supermarkets, drug stores, or discount retail store chains. As of December 31, 2006, the company?s property portfolio consisted of 179 properties, including 166 shopping centers, 6 development parcels, and 7 non-retail properties. As a REIT, Equity One would not be subject to federal tax to the extent that it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1992 and is based in North Miami Beach, Florida with an additional office in Israel.

Best Stocks In 2014:Seneca Foods Corp. (SENEB)

 Seneca Foods Corporation produces and distributes processed fruits and vegetables, frozen vegetables, and other food products in the United States and internationally. The company offers canned, frozen, and bottled produce; and snack chips under private label, as well as national and regional brands that it owns or licenses, including Seneca, Libby?s, Aunt Nellie?s Farm Kitchen, Stokely?s, Read, Seneca Farms, and Diamond A. It packs Green Giant, Le Sueur, and other brands of canned vegetables, as well as selects Green Giant frozen vegetables for General Mills Operations, LLC under an alliance agreement. The company sells its products through grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores to food service distributors, industrial markets, other food processors, and export customers in 75 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was founded in 1949 and is headquartered in Marion, New York.

AlumiFuel Power Corporation Issues Stockholder Letter Available on Company Website

 

 

 

CENTENNIAL, Colo., July 13, 2011 /CRWENEWSWIRE/ — Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCBB:AFPW.OB) (the “Company”), announced today that it has issued a letter to stockholders now available for viewing and download at www.alumifuelpowerinc.com on the Home page under “Shareholder Update - CEO Letter”. The letter outlines recent developments at the Company’s Philadelphia-based majority owned operating subsidiary, AlumiFuel Power, Inc. (”API”), as well as information for majority-owned subsidiary, AlumiFuel Power International, Inc. (”AlumiFuel International”), and its listing/trading on the Frankfurt Borse Stock Exchange (”9AP”).

The letter contains information related to the Company’s activities in Unmanned Undersea Vehicles, Man-portable power generation, the PBIS-1000 portable balloon inflation system as well as initiatives on a portable hydrogen generator for the education market. Details are also provided related to the listing and trading of AlumiFuel International’s stock on the Frankfurt Borse Stock Exchange.

About AlumiFuel Power, Inc.

API (www.alumifuelpowerinc.com), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation, is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API’s hydrogen feeds fuel cells for portable and back-up power; fills inflatable devices such as weather balloons; can replace costly, hard-to-handle and high! pressur e K-Cylinders; and provides fuel for flameless heater applications. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems and auxiliary power systems. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products.

About AlumiFuel Power International, Inc.

AlumiFuel International holds a license agreement with the Company and API to market API’s hydrogen generation products globally to countries outside of North America. AlumiFuel Power International trades in the Open Market segment of The Deutsche Borse-Frankfurt Stock Exchange under the symbol (”9AP”).

About AlumiFuel Power Corporation

AlumiFuel Power Corporation operates through its wholly owned subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and steam for multiple niche applications requiring on-site, on-demand fuel sources. The Company also operates through its majority owned subsidiary, AlumiFuel Power International, Inc., to market its products globally outside of North America.

Safe Harbor for Forward-looking Statements

This news release may contain forward-looking statements that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company’s progress, business opportunities and growth prospects, they are based on management’s current beliefs and assumptions as to future events. However, since the company’s operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news! release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company’s filings with the Securities and Exchange Commission.

CONTACTS:

Investor Relations:
Technical Information & Marketing:
AlumiFuel Power Corporation
API Laboratories
Thomas B. Olson, Corporate Secretary
3711 Market Street, Suite 950
303-796-8940
Philadelphia, PA 19104
215-921-9203
info@alumifuelpowerinc.com

Source: AlumiFuel Power Corporation

 

 

 

 

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

Aeroflex Holding Beats Up on Analysts Yet Again

Aeroflex Holding (NYSE: ARX  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Aeroflex Holding beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP loss per share dropped.

Gross margins dropped, operating margins contracted, net margins improved.

Revenue details
Aeroflex Holding booked revenue of $171.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $165.2 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $181.6 million.

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

EPS details
Non-GAAP EPS came in at $0.15. The seven earnings estimates compiled by S&P Capital IQ averaged $0.12 per share on the same basis. GAAP EPS were -$0.01 for Q2 against -$0.15 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 50.1%, 210 basis points worse than the prior-year quarter. Operating margin was 5.4%, 510 basis points worse than the prior-year quarter. Net margin was -0.3%, 600 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $177.7 million. On the bottom line, the average EPS estimate i! s $0.16.

Next year's average estimate for revenue is $711.5 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 24 members out of 34 rating the stock outperform, and 10 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Aeroflex Holding a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aeroflex Holding is hold, with an average price target of $14.42.

Over the decades, small-cap stocks like Aeroflex Holding have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

• Add Aeroflex Holding to My Watchlist.

10 Good Stocks To Buy 2013

The market has been on fire since the dark days of the financial crisis. The S&P 500 has soared an astounding 85% since the lows of March 2009. Market returns have been propelled by more cyclical sectors like technology and consumer products, while the more defensive sectors have badly lagged the market. In short, it's the go-go stocks that have been the first to benefit in the post crisis market, but things might be changing...

The bull market has gotten long in the tooth while at the same time uncertainty is growing as the Middle East erupts in turmoil. Oil prices are soaring near $100 a barrel from just $85 a month ago and may climb still higher, threatening economic recovery.

It may be time for investors to look at defensive stocks that can perform in any economy. Health care, more specifically major drug manufacturers, earn consistent income in any economy and, best of all, pay fat dividends.

Health care stocks have their critics, however. Most large drug companies are facing steep patent cliffs and an accompanying fall in revenue in the years ahead. In addition, uncertainty regarding health care legislation and possible higher costs going forward are weighing on prospects.

However, these problems are largely factored into share prices already.

 

Three stocks in particular stand out as having strong business prospects, cheap valuations and high dividends.

10 Good Stocks To Buy 2013:Xinyuan Real Estate Co Ltd (XIN)

 Xinyuan Real Estate Co. Ltd., together with its subsidiaries, engages in residential real estate development in China. The company?s residential projects comprise various residential buildings that include multi-layer apartment buildings, sub-high-rise apartment buildings, or high-rise apartment buildings; auxiliary services and amenities, such as retail outlets, leisure and health facilities, kindergartens, and schools; and small scale residential properties. It also offers property management and other real estate related services, such as landscaping and installing intercom systems. In addition, the company leases properties, including an elementary school, a basement, three clubhouses, five kindergartens, and parking facilities. As of December 31, 2010, it had 21 completed projects with a total gross floor area (GFA) of approximately 2,049,460 square meters and comprising a total of 23,324 units, as well as 8 projects under construction with a total GFA of 1,804,946 square meters. It primarily operates in seven tier II cities, comprising Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou, and Chengdu. The company was founded in 1997 and is headquartered in Beijing, the People?s Republic of China.

10 Good Stocks To Buy 2013:Cyanotech Corporation (CYAN)

 Cyanotech Corporation engages in the cultivation, production, and sale of natural products derived from microalgae worldwide. The company?s products include BioAstin natural astaxanthin, a dietary antioxidant for use as a human nutraceutical and functional food ingredient to support and maintain the body's natural inflammatory response, as well as to enhance skin, muscle, and joint health; and Spirulina Pacifica, a nutrient-rich dietary supplement used for extra energy, as well as used as a strengthened immune system and source of antioxidant carotenoids. It sells its products to manufacturers, formulators, and distributors in the health foods and nutritional supplements markets; and to distributors, retailers, and direct consumers in the form of packaged consumer products. The company markets its products through online, as well as through resellers. Cyanotech Corporation was founded in 1983 and is headquartered in Kailua-Kona, Hawaii.

10 Good Stocks To Buy 2013:BGC Partners Inc. (BGCP)

 BGC Partners, Inc. operates as a financial intermediary to the financial markets specializing in the brokering of various financial products. It provides electronic marketplaces, including government bond markets, spot foreign exchange, foreign exchange options, corporate bonds, and credit default swaps in various financial markets through its eSpeed- and BGC Trader- branded trading platform which can be accessed through its high speed data network, over the Internet, or third party communication networks. The company?s brokerage services include trade execution, broker-dealer services, clearing, processing, information, and other back office services, as well as cover various products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, and structured products. It also provides financial technology solutions, market data, and analytics related to financial instruments and markets. In addition, the company offers customized screen-based market solutions, which enables its clients to develop a marketplace, trade with their customers, issue debt, trade odd lots, access program trading interfaces, and access its network and intellectual property. Further, it licenses intellectual property portfolio and software solutions to various financial markets participants; and provides software development, software maintenance, customer support, infrastructure, and internal technology services to support electronic trading platforms. The company serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, investment firms, professional trading firms, futures commission merchants, and other professional market participants and financial institutions in the United States, the United Kingdom, France, Asia, Europe, Africa, the Middle East, and other Americas. The company was founded in 1999 and is based in New York, New York.

10 Good Stocks To Buy 2013:Genuine Parts Company (GPC)

 Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company operates in four segments: Automotive Parts Group, Industrial Parts Group, Office Products Group, and Electrical/Electronic Materials Group. The Automotive Parts Group segment distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment. This segment also distributes accessory items used in the automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It owns and operates automotive parts distribution centers and automotive parts stores under the NAPA name. The Industrial Parts Group segment distributes industrial replacement parts and related supplies, such as bearings, mechanical power transmission, industrial automation, hose, hydraulic and pneumatic components, industrial supplies, and material handling products. This segment serves various industries, including the food, forest products, primary metal, paper, mining, automotive, petrochemical, and pharmaceutical industries. The Office Products Group segment involves in the wholesale distribution of a line of office and other business related products that are used in the daily operation of businesses, schools, offices, and institutions. The Electrical/Electronic Materials Group segment distributes insulating and conductive materials, assembly tools, test equipment, and custom fabricated parts. This segment provides distribution services to original equipment manufacturers, motor repair shops, and assembly markets. The company was founded in 1928 and is headquartered in Atlanta, Georgia.

10 Good Stocks To Buy 2013:American Tower Corporation (AMT)

 American Tower Corporation, through its subsidiaries, operates as a wireless and broadcast communications infrastructure company. It develops, owns, and operates communications sites; and leases antenna space on multi-tenant communications sites to wireless service providers, and radio and television broadcast companies. The company?s Rental and Management Operations segment leases space on its wireless communications towers to customers, including personal communications services, cellular, specialized mobile radio, WiMAX, paging, and fixed microwave. This segment also leases on its broadcast towers to wireless service providers, and radio and television broadcast companies; and distributed antenna system (DAS) networks in malls, casinos, and other in-building applications, as well as provides rooftop management services to property owners who own rooftops that are capable of hosting wireless communications equipment. Its Network Development Services segment provides tower-related services, such as site acquisition, zoning and permitting services, and structural analysis services. The company?s communications site portfolio includes approximately 38,048 sites, such as wireless communications towers, broadcast communications towers, and DAS networks in the United States, Brazil, Chile, Mexico, India, and Peru. American Tower Corporation was founded in 1995 and is headquartered in Boston, Massachusetts.

10 Good Stocks To Buy 2013:Choice Hotels International Inc. (CHH)

 Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. It franchises lodging properties under its proprietary brand names, including Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites, and Ascend Collection brands. As of March 31, 2011, it operated 6,128 open hotels comprising 492,733 rooms, as well as 606 hotels consisting of 49,908 rooms under construction, awaiting conversion, or approved for development in 49 states, and the District of Columbia in the United States; and approximately 40 countries and other territories. The company was founded in 1981 and is based in Silver Spring, Maryland.

10 Good Stocks To Buy 2013:Hong Kong Highpower Technology (HPJ)

 Highpower International, Inc., through its subsidiaries, develops, manufactures, and markets rechargeable nickel metal hydride and lithium-ion batteries and related products for use in various electronic devices. The company produces consumer batteries in A, AA, and AAA sizes in blister packing, as well as offers chargers and battery packs; and industrial batteries that are designed for electric bikes, power tools, and electric toys. It also manufactures lithium-ion and lithium polymer rechargeable batteries for applications, such as laptops, digital cameras, and wireless communication products. In addition, the company recycles batteries, and resells the recycled materials. It sells its products to original equipment manufacturers, and a network of distributors and resellers. Highpower International sells its products primarily in the People?s Republic of China, Hong Kong, and other Asian countries; Europe; North America; South America; and Africa. The company was formerly known as Hong Kong Highpower Technology, Inc. and changed its name to Highpower International, Inc. on October 21, 2010. Highpower International, Inc. was founded in 2001 and is based in Shenzhen, the People?s Republic of China.

10 Good Stocks To Buy 2013:Noble Corporation (NE)

 Noble Corporation operates as an offshore drilling contractor for the oil and gas industry worldwide. It involves in the contract drilling of oil and gas wells. The company?s fleet consists of 14 semisubmersibles, 12 drillships, 45 jackups, and 2 submersibles. Noble Corporation also provides labor contract drilling services. The company was founded in 1921 and is based in Baar, Switzerland.

10 Good Stocks To Buy 2013:Frontier Communications Company (FTR)

 Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. It offers local and long distance voice services, including basic telephone wireline services to residential and business customers; switched access services that allow other carriers to use the facilities to originate and terminate their long distance voice and data traffic; and directory services that provide white and yellow page directories for residential and business listings. The company also provides data and Internet services, which include residential services comprising high-speed Internet, dial up Internet, portal and e-mail products, and hard drive back-up services; and commercial and carriers services, such as metro Ethernet; dedicated Internet; Internet protocol, optical, multiprotocol label switching, and TDM data transport services. In addition, it offers direct broadcast satellite services and fiber optic video services, as well as provides online access to video content, entertainment, and news available on the worldwide Web through its Web site myfitv.com. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was founded in 1927 and is based in Stamford, Connecticut.

Advisors' Opinion:

• By Vita At 2011-10-6

  Frontier Communications Corporation (FTR) a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. Between 2004 and 2010 the company paid a quarterly dividend of 25 cents/share. Last year however it cut the distribution rate by 25% to 18.75 cents/share. The company has been unable to cover its dividend out of earnings since 2006. More than two-thirds of its distributions are non-taxable as t! hey are essentially a return of capital. Yield: 9.40%.

• By Harding At 2011-9-21

  CLO; EVP Reg & Gov't Affairs of Frontier Communications, Kathleen Q Abernathy, bought 40,000 shares on 09/09/2011 at an average price of $7.11. Frontier Communications Corp., formerly Citizens Communications Company, is a full-service communications provider and one of the largest rural local exchange telephone companies in the country. Frontier Communications has a market cap of $7.08 billion; its shares were traded at around $7.11 with a P/E ratio of 28.4 and P/S ratio of 1.8. The dividend yield of Frontier Communications stocks is 10.5%.
  
  On August 3, Frontier Communications Corporation reported second-quarter 2011 revenue of $1,322.3 million, operating income of $238.3 million and net income attributable to common shareholders of Frontier of $32.3 million, or $0.03 per share. After excluding $20.3 million for acquisition and integration costs, $11.0 million for severance and early retirement costs and $10.5 million for a discrete tax item, net income attributable to common shareholders of Frontier for the second quarter of 2011 would have been $62.2 million, or $0.06 per share.
  
  Frontier Communications is in the portfolios of Prem Watsa, Jean-Marie Eveillard, and NWQ Managers.
  
  In September, Director Edward Fraioli and CLO; EVP Reg & Gov't Affairs Kathleen Q Abernathy bought shares of FTR stock. Director Jeri B Finard and Director James S Kahan bought shares in August.