2013 India Stocks - What will become of Romney fortune?

NEW YORK (CNNMoney) -- If Mitt Romney is elected president, he will have to make some tough choices about what to do with his personal fortune.
In order to avoid conflicts of interest and satisfy ethics watchdogs, soon-to-be presidents often sell assets or relinquish control of their investments to a trustee.
Romney, who has spent the better part of a month answering questions about his massive investment portfolio, would be one of the wealthiest presidents in history.
The former Massachusetts governor has a few options.
He could put his investments in a government-approved blind trust, convert some or all of his assets to cash, or possibly take advantage of an obscure tax break for executive branch officials.
Blind trust: Romney is no stranger to the concept of blind trusts.
After becoming governor of Massachusetts, Romney created a trust managed by Boston lawyer Bradford Malt. That's where most of his assets, estimated to be between $85 and $264 million, are today.
But between federally required disclosure forms and the tax returns released by his campaign, the contents of Romney's trust are easily accessible and have been widely scrutinized by the media.
It's now far from blind.
As president, Romney would likely have to dissolve his current trust and create a new one. And this one, approved by the Office of Government Ethics, would require a truly independent trustee.
"Federal ethics guidelines for blind trusts are extremely strict," said Robert Kelner, a partner at Covington & Burling who has advised candidates and appointees on ethics. "Typically they are much stricter than what you find at the state level."

Rich, Gingrich and crazy rich

If Romney establishes a new trust, his communication with the trustee would be extremely limited, and he would not be informed of changes to his portfolio.
"He might learn the overall performance of his portfolio," Kelner said. "But he wo! uld not know anything about its particular holdings."
It's a popular tactic.
Bill Clinton, both Bushes and Ronald Reagan put their money into a blind trust.
President George W. Bush told CNN at the end of his second term that he had "no earthly idea" what had become of his assets.
"I met the trustees eight years ago and I haven't talked to them since," Bush said.
Unlike his immediate predecessors, Barack Obama does not have a government-approved blind trust.
Most of his assets are invested in U.S. Treasury bonds and bills, mutual funds and education savings plans for his children -- hardly the kind of assets that present conflicts of interest.
Establishing blind trusts is not just popular with presidents. Other wealthy executive branch appointees have followed suit -- sometimes with a little unease. Hank Paulson, who left the top job at Goldman Sachs to become Treasury Secretary, was one of them.
"Have you heard the joke, how do you make a small fortune?" Paulson quipped in 2009. "Give a large fortune to someone in a blind trust."
For Romney, who made his money by making savvy investments, relinquishing control might be particularly difficult.
"You're turning your assets over to someone who is essentially a stranger," said Kenneth Gross, a partner at Skadden Arps Slate Meagher & Flom. "I think some people would not be entirely happy with that situation."
The Romney campaign would not elaborate on the candidate's plans for his wealth, but said in a statement that his "assets will be arranged in a manner that comports with all rules" should he become president.
Move to cash: Perhaps the simplest option would be for Romney to liquidate his holdings.
The Clintons converted their assets to cash in June 2007 as Hillary's campaign for president entered its final stretch, according to the New York Times.
The family's holdings had been in a blin! d trust, but -- like Romney -- those assets were disclosed in campaign filings required by the Federal Election Commission.
Instead of creating a new blind trust, the Clintons chose to liquidate.

Romney made $42.7 million in 2 years

There is a substantial downside to taking this route. The Clinton's likely owed huge sums of money in capital gains.
A fire sale of Romney's assets would likely create a similar tax burden.
It's also possible Romney could choose to divest -- or sell -- a targeted group of assets that are likely to cause conflicts.
But that would be difficult considering the breadth of decisions the president makes, and the vast diversification of Romney's holdings.
"Practically everything the president does could affect individual companies," Kelner said. "Romney might find that difficult to do."
A tax benefit? Members of the executive branch who have to sell specific assets to avoid conflicts of interest are sometimes granted what is called a "certificate of divestiture" by the Office of Government Ethics.
Obtaining the certificate allows appointees to divest while deferring the payment of capital gains, provided they invest the proceeds in an approved asset like a diversified mutual fund or government bond.
The provision is designed to incentivize wealthy individuals to accept posts in the executive branch without forcing them to take a tax hit.
A president has never applied for the tax break, but law experts consulted by CNNMoney said it is conceivable the Office of Government Ethics would grant one to a president with a portfolio like Romney's.
"It would be unprecedented," Gross said. "But I don't know why a president wouldn't be entitled to the same deferral of tax if he felt there was a conflict."
The tax benefit for Romney would be huge.
"Oh my god," said Robert Willens, a tax expert and professor at Columbia Business School. "He'd! be righ t in the sweet spot. This would save him millions or tens of millions."

The Obama Bounce Trade: Here Today, Gone Tomorrow

The end of a presidential election cycle typically leads to a quick upturn in the market, regardless of the winner. But this time itchy traders jumped the gun and bid the market up on election, sold it off the day after and the bounce is officially over.
We are now back to waiting on the only thing that really counts — economic data and the window it provides into the economy.

Right now, that window bears a strong resemblance to one in a jail cell. The economy — and eventually the market — is locked into behavior driven by three things: the housing crash, the credit crisis, and the evaporating consumer.
The Housing Crash
Every week or two, a new data point comes out and the pundits try to spin it — “home sales ONLY fell 11%” or “average home prices fell only 16.6 % year-over-year” or some such nonsense.
I don’t hate homebuilders, I have no axe to grind, but I passed third-grade math and eight-grade English, and here is what I see by reading financial and other documents:

• Defaults of subprime and Alt-A (near-subprime) mortgage holders will peak in December, which means foreclosures from these mortgages peak in December. And just as this is happening …
  
• Defaults from option adjustable-rate mortgages (ARMs) — the funkiest of all funky mortgages — will accelerate. Wachovia (WB), now in the snug if increasingly shaky arms of Wells Fargo (WFC), already predicts 22% defaults — it will be far more due to the severity of the recession.
  
• The recession will cause its normal share of mortgage defaults and foreclosures. So, pile up all these new homes on the market — in addition to the historically high inventory — and you see home prices falling.

Will buyers swoop in at this time and save the day to become the Marines ! of the m ortgage meltdown marketplace? Nope — 40% of all buyers in 2006 were subprime and ALT-A and they will be eligible for mortgages about the same time Obama leaves Washington after his second term.
Credit standards are tightening, mortgage interest rates are quite high compared to the past five years, and we have a dearth of real buyers. Inventory plus weak demand equals a continuing slide in home prices.
Instead of 2009 (when Wall Street is fantasizing about stability) or 2010 (when Fannie Mae (FNM) and Freddie Mac (FRE), those two paragons of analytical excellence), start thinking the second half of 2011 for stability and mid-2012 for a rise in prices.
The Credit Crisis
Resolved, you say? LIBOR coming down means it’s over? The Fed backstopping commercial paper markets will do the trick, you say? Don’t believe this nonsense. Here’s what I and a few others know and understand, unlike most members of the press and Congress.

• When Bear Stearns (BS) took its curtain call, for every dollar in core capital or equity it had assets (loans and debt) of about $33-$35. Historically a bank — not an investment bank, a real bank with rude tellers — loans out about 11 to 12-to-1.
  
• We have since discovered many banks were actually much more leveraged than 11-12 to one by using “off balance sheet” entities called structured investment vehicles (SIVs) and variable interest entities (VIEs). We have also discovered the Europeans, especially the Germans, levered up as much as 50-to-1. Do I exaggerate? In a very short document filed with the SEC earlier this year, Citigroup (C) revealed it had something like $350 billion in derivatives in VIEs. Yes, billion with a “B.”
  
• We are now going back to leverage of 12 to 15-to-1. That means the amount of credit available would contract at least 50% even if there were no write downs of capital. Speaking of write downs …
  
• Banks have! written down around $700 billion, not all of it replaced by fresh capital. Jim Paulson (no relation to TARP man and Treasury Secretary Hank Paulson) made a few billion last year shorting subprime mortgages. Last week he made a speech and said he expects another $1.4 billion, which is $200 billion more than my own estimate. he Street is gong to be surprised as bank write downs continue apace and continuing problems in mortgages well past 20009 will make these surprises uglier and uglier.

Translation: Bank capital is shrinking just as bank leverage ratios are and the combination means credit available to businesses and consumers will not reach levels seen in 2006 for at least seven to 10 years. There we go with that second Obama term — maybe that is why he said in his acceptance speech he would not get everything done in his first term.
Am I too bearish? Let me throw in some human behavior — I know, most people think payers in financial markets are prone to inhuman behavior, but bear with me (pardon the pun). The word credit comes from the Latin cred and credit, words meaning confidence and trust. You think we might have a bit if a shortage of trust and confidence right now? And maybe next year?
And let me throw in new government regulations that uber-analyst Meredith Whitney thinks cold reduce consumer credit card lines by 2 trillion bucks. You add it all up and what you get is a very impaired credit market — for consumers, businesses and even many nations — and credit is the lifeblood of everyone’s economy.
The Consumer
ChangeWave Research and third-party surveys show the consumer has gone on vacation in a used car badly in need if repairs. Spending has hit a wall and since our GDP is about 70% consumer, this is worse news than simply saying there may be a few less shops to peruse at the mall. I just looked at some MasterCard (MA) data for October and electronics were down 19%, home furnishings 21% and sales of anything more than $1,000! bucks d isappeared. And this will only get worse.

• The continuing decline in home prices — yes, there is a connection — makes people fell less wealthy, more nervous and more frugal.
  
• The recent sharp declines in the stock market — and the upcoming declines (I am giving away my ending, this is called foreshadowing) will also make people feel less wealthy and for many consumers, reduce their income.
  
• Speaking of reduced income — the recession is already going that and is going to hit much, much harder in the coming months. And as it hits, and spending contracts, the recession begins feeds itself.

Don’t despair — there is plenty of money to be made. Just don’t listen to Cramer or those long-only money managers on CNBC who think the term “shorts” refers to either evil men or something they put on every day.
Playing the Un-Bounce
I like fundamentals — yeah, “momentum” trading is “sexy,” telling someone at a party you “read charts” is really cool — but fundamentals will always bring you victory and profits when combined with patience. And the way to play this lack of an Obama bounce is by playing (or should I say shorting?) the fundamentals.
Shorting? Yes, shorting.
When people ask me if I am comfortable with shorting stocks — I am … if it is done with put options. I think of a favorite quote from Winston Churchill. “We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”
To my mind, short sellers are those at the ready; touts of stocks, long-only money mangers and pundits with no stake in the game like Cramer are those doing harm to our portfolios.
Which side do you want to be on?
You want to be on the short side — with the purchase of put options and ETFs, not the actual shorting of stocks. A! nd here is what you should consider right now:

• The banks are broke and getting broker, held aloft by Uncle Sam’s greenbacks and the promise of more to come. Check out the UltraShort Financials ProShares (SKF) — the SKF is an exchange traded fund that goes up 2% every time the Dow Jones Financial Index goes down 1%. It trades like a stock, is very liquid, and if you postpone that trip to Las Vegas, you could gamble and take that poker money and look at calls on the SKF. A 2% drop in the financials can lead to a 4% pop in the ETF and a 50% pop in the calls. While you are having a cup of coffee.
• The homebuilders are already hiring lobbyists to get Obama to spend some dough and help people buy new homes. That is funny — with foreclosures accelerating as they are, and all sorts of other problems, bailing out homebuilders with funky new programs for home buyers is a laughable thought. His probable answer? “Ask not what your country can do for you, it is dead broke.”Here is the dirty little secret — the homebuilders are getting cash rebates from the IRS based on losses they declare in 2008. Well, that well will soon go dry and once this source of cash dries up, getting new credit lines is going to be harder and eventually one builder will blow up, go bankrupt and the entire sector will be cut in half. Among the dozen or so publicly held homebuilders, look for ones with weak balance sheets, big debts coming due in 2009 and exposure to sunbelt markets.
• Also look at the cousins of homebuilders — material suppliers such as Masco (MAS) and Louisiana Pacific (LPX).
  
• And, of course, the consumer. Joe the material boy and Jane the material girl are now going frugal. There are a myriad number of choices, but stick with the most discretionary of spending — restaurants, travel, leisure goods. The Las Vegas casinos have been whacked but may also be ripe for another leg down.

How to do research? Restaurants are easy — go eat out and take a tax deduction. I do it all the time — and have put on 20 pounds since restaurants began to crater. For travel? Check prices for flights and hotels daily on Expedia (EXPE). Speaking of which, online travel sites are also a good place to find short opportunities.

So, don’t play momentum or charts or whatever — the post-election bounce is over. Now it is time for data — hard data — and a harder reality.
Want to see my take on playing Obama’s first year in office? Check out my story, 7 Trades to Make After Election Day by clicking here.

---

Michael Shulman is the editor of ChangeWave Shorts. To learn more about him, read his bio here.

1 Stock That's Going to Zero

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world. In today's edition, Austin discusses one stock that he believes is going to zero. In his opinion, the writing is on the wall for this company, and it's more than just fancy text by notable authors. Even with an increase in revenue, the company is burning cash quickly, and falling victim to the trend of online shopping. It's tough to stay afloat when you've got bricks and mortar around your feet.

Barnes and Noble is just one of the companies that's falling victim to this trend. To learn about more, and how to profit from its collapse, be sure to read our report, "The Death of Retail," which highlights two companies hand-picked by Fool analysts that are set to dominate the future. To check out these two companies and learn more about the future of retailing, click here now -- it's free!

Stocks to advance as oil prices pause

NEW YORK (CNNMoney) -- U.S. stocks were poised to edge higher at Tuesday's open, tracking gains in global stock markets, as oil prices pull back following a seven-day run-up that sent crude 9% higher.
The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up about 0.3%. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
Investors have been keeping a close watch on the oil market, where crude futures rose to a nine-month high above $109 a barrel Friday, amid concerns about increased tensions between Iran and Western powers.
The rise in oil prices has translated into higher gas prices, with the national average rising 21 straight days.
But crude futures eased for a second straight day Tuesday, relieving worries that higher gas prices could cause the economic recovery to stall if consumers change their spending habits.

America's oil boom - at a cost

Investors will continue to watch for developments out of Europe, amid ongoing nervousness about the region's debt crisis.
On Monday, the German Parliament approved the nation's contribution to a second bailout for Greece. Later in the day, S&P downgraded Greece's credit rating to "selective default" after the government took legal steps to impose losses on all holders of Greek government bonds.
Investors are growing optimistic ahead of the European Central Bank's second so-called long-term refinancing operation (LTRO) on Wednesday. The central bank will hold its second auction to allow banks to take three-year loans at low interest rates, bolstering their balance sheets.
In its first auction in December, banks borrowed €489 billion from the ECB. The "flood of money" sparked a rally in stock markets, noted Global Forex Trading's Kathy Lien, and she says this round of stimulus could also be a boon for stocks.
Most analysts are expecting the size of the ECB's refinancing stimulus to be even l! arger on Wednesday, with a high estimate of €1 trillion.
On Monday, U.S. stocks ended little changed, as investors weighed an upbeat housing report against worries about the debt crisis in Europe and rising gas prices.
World markets: European stocks edged higher in midday trading. Britain's FTSE 100 (UKX) ticked up 0.1%, the DAX (DAX) in Germany added 0.4% and France's CAC 40 (CAC40) rose 0.4%.
Asian markets ended with solid gains. The Shanghai Composite (SHCOMP) closed up 0.2%, the Hang Seng (HSI) in Hong Kong spiked 1.7% and Japan's Nikkei (N225) increased 0.9%.
Economy: Durable goods orders fell 4% in January, following a 3.2% increase the month before. Analysts were expecting that orders slipped 1.3% during the month.
Wall Street will get a gauge on the real estate market when Case-Shiller releases its home price index at 9 a.m. ET.
The Conference Board will release its February consumer confidence report at 10 a.m. ET. Economists expect the index to rise slightly to 63.5 from 61.1 in January.

Why JPMorgan Chase has become a Wall Street laggard

Companies: Shares of AutoZone (AZO, Fortune 500) rose Tuesday, after the auto parts retailer's fourth-quarter earnings and sales figures rose and topped analyst expectations. Same-store sales at Autozone improved almost 6% during the last quarter of 2011.
Priceline.com (PCLN) shares spiked after the online travel company beat earnings and revenue expectations late Monday, thanks to strong growth in international hotel bookings.
Cablevision (CVC, Fortune 500) posted earning that were a penny shy of expectations, but sales that were a bit higher than estimates. Shares of the cable provider were flat.
Dreamworks Animation (DWA) is slated to report corporate results after the bell Tuesday. Dreamworks is expected to post earnings of 32 cents per share.
Currencies and commodities: The dollar fell against the euro, the British pound and the Japanese yen.

10 Best Stocks To Own For August 2012

Ah, penny stocks. Quite possibly the world's most dangerous investments ... yet so enticing.

And for good reason. Some of the world's best stock pickers are, at times, penny-stock investors. Peter Lynch, for example, has and still does enjoy the stock market's super-cheap seats. The Royce Low-Priced Stock (RYLPX) fund crushes the market by betting on stocks trading for less than $10 a share. Even the All-Stars in our 100,000-strong Motley Fool CAPS investor-intelligence database dabble in penny stocks. More than a few have been richly rewarded.

Finally, there's our Motley Fool Hidden Gems small-cap service. You won't often find penny stocks on its scorecard, but Foolish colleague Tim Hanson studies rising microcap stars in a segment called Tiny Gems. Current Global Gains pick China Fire & Security (Nasdaq: CFSG  ) made Tim's list last August. Its shares have risen more than 30% since.

10 Best Stocks To Own For August 2012:AmTrust Financial Services Inc. (AFSI)

 AmTrust Financial Services, Inc., through its subsidiaries, operates as a multinational specialty property and casualty insurance company in the United States and internationally. The company operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Middle Market Business. The Small Commercial Business segment provides workers? compensation insurance and an array of commercial package products, including commercial property, general liability, inland marine, automobile, workers? compensation, umbrella, and farm and ranch owners? coverage to small businesses, such as restaurants, retail stores and strip malls, professional offices, owner or contractor of building management-operations, private schools, business traveler hotels/motels, light manufacturing, small grocery and specialty food stores, light contracting, distributors, and laundry/dry cleaners. The Specialty Risk and Extended Warranty segment serves manufacturers, service providers, retailers, and third party warranty administrators that provide coverage for accidental damage, mechanical breakdown, and related risks for consumer and commercial goods. This segment also provides coverage for products, such as personal computers, consumer electronics, consumer appliances, automobiles, cellular telephones, furniture, heavy equipment, homeowner?s latent defects warranty, hand tools, credit payment protection, gap insurance, commercial and residential properties, and legal expenses. The Specialty Middle Market Business segment underwrites worker?s compensation, package products, general liability, commercial auto liability, and other specialty commercial property and casualty insurance for retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, and habitational markets. The company sells its products through a network of independent wholesale agents, brokers, and retail agents. The company is based in New York, New York.

10 Best Stocks To Own For August 2012:Kulicke and Soffa Industries Inc. (KLIC)

 Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes, and power modules. It also services, maintains, repairs, and upgrades its equipment. The company operates in two segments, Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, heavy wire wedge bonders, stud bumpers, and die bonders. Its Ball bonders are used to connect very fine wires, primarily made of gold or copper, between the bond pads of the semiconductor device or die, and the leads on its package; Heavy wire wedge bonders are used in the power semiconductor and automotive power module markets; and Die bonders are used to attach a die to the substrate or lead frame, which will house the semiconductor device. This segment?s Stud bumpers mechanically apply bumps to die, while still in the wafer format, for some variants of the flip chip assembly process. The Expendable Tools segment manufactures and sells various expendable tools for a range of semiconductor packaging applications. Its products include capillaries, bonding wedges, and saw blades. The company?s customers primarily comprise semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, and automotive electronics suppliers in the United States and the Asia/Pacific region. Kulicke and Soffa Industries sells its products through manufacturers? representatives and distributors. The company was founded in 1951 and is headquartered in Singapore.

10 Best Stocks To Own For August 2012:Cintas Corporation (CTAS)

 Cintas Corporation provides corporate identity uniforms and related business services in North America and Latin America, Europe, and Asia. The company operates through four segments: Rental Uniforms and Ancillary Products; Uniform Direct Sales; First Aid, Safety, and Fire Protection Services; and Document Management Services. The Rental Uniforms and Ancillary Products segment engages in the rental and servicing of uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other related items. It also offers restroom cleaning services and supplies; and tile and carpet cleaning services. The Uniform Direct Sales segment involves in the direct sale of uniforms and related items, and branded promotional products. The First Aid, Safety, and Fire Protection Services segment offers first aid, safety, and fire protection products and services. The Document Management Services segment provides document destruction, document imaging, and document retention services. The company also operates document imaging and storage facility that provides solutions to help customers securely store and maintain sensitive business information and data. Cintas Corporation offers its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as corporations. The company was founded in 1968 and is headquartered in Cincinnati, Ohio.

10 Best Stocks To Own For August 2012: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.

10 Best Stocks To Own For August 2012:Luxottica Group S.p.A. (LUX)

 Luxottica Group S.p.A., together with its subsidiaries, provides luxury and sport/performance eyewear worldwide. It operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of house and designer lines of prescription frames and sunglasses. It also offers performance optics products, including sun and prescription eyewear, ski goggles, and electronically-enabled eyewear, as well as branded apparel, footwear, watches, and accessories. This segment provides its products under house brands, such as Ray-Ban, Oakley, Arnette, Persol, Revo, Vogue, Oliver Peoples, K&L, Luxottica, Mosley Tribes, Sferoflex, and Eye Safety Systems; and licensed brands comprising Anne Klein, Brooks Brothers, Bvlgari, Burberry, Chanel, Dolce & Gabbana, D&G, Donna Karan, DKNY, Fox, Miu Miu, Paul Smith, Polo Ralph Lauren, Prada, Salvatore Ferragamo, Stella McCartney, Tiffany & Co., Tory Burch, Versace, and Versus. It serves retailers of mid- to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, and duty-free shops, as well as independent optometrists and ophthalmologists. The Retail Distribution segment operates optical and sunglass stores under the brand names of LensCrafters, Sunglass Hut, Pearle Vision, ILORI, The Optical Shop of Aspen, OPSM, Laubman & Pank, Budget Eyewear, Bright Eyes, Oakley ?O? Stores and Vaults, and David Clulow, as well as under licensed brands, such as Sears Optical and Target Optical. As of May 11, 2011, this segment operated approximately 6,350 optical and sunglass retail stores. The company was founded in 1961 and is headquartered in Milan, Italy.

10 Best Stocks To Own For August 2012:AmerisourceBergen Corporation (Holding Co) (ABC)

 AmerisourceBergen Corporation, a pharmaceutical services company, provides drug distribution and related services to healthcare providers and pharmaceutical manufacturers in the United States, the United Kingdom, and Canada. The company distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical and dialysis clinics, physicians, and long-term care and other alternate site pharmacies. It also offers various services, such as pharmaceutical packaging, pharmacy automation, inventory management, reimbursement and pharmaceutical consulting and staffing services, logistics services, and pharmacy management. In addition, AmerisourceBergen provides scalable automated pharmacy dispensing equipment, medication and supply dispensing cabinets, and supply management software to various retail and institutional healthcare providers. Further, the company offers distribution and other services to physicians, who specialize in various disease states; distributes plasma and other blood products, injectible pharmaceuticals, and vaccines; and provides drug commercialization, third party logistics, reimbursement consulting, data analytics, and outcomes research services for biotech and other pharmaceutical manufacturers, as well as practice management and group purchasing services for physician practices. Additionally, it delivers unit dose, punch card, unit-of-use, and other packaging solutions to institutional and retail healthcare providers; and offers contract packaging and clinical trial material services for pharmaceutical manufacturers. The company serves customers through a network of distribution and service centers, and packaging facilities. AmerisourceBergen was founded in 1985 and is headquartered in Chesterbrook, Pennsylvania.

10 Best Stocks To Own For August 2012:Public Storage (PSA)

 Public Storage operates as a real estate investment trust (REIT). It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The company?s self-storage facilities offer storage spaces for lease on a month-to-month basis for personal and business use. Public Storage also has interests in commercial properties containing commercial and industrial rental space; facilities that lease storage containers; and ancillary operations, which include reinsurance of policies against losses to goods stored by its self-storage tenants, retail operations comprising merchandise sales and truck rental operations. As of December 31, 2008, the company had interests in 2,012 self-storage facilities with approximately 127 million net rentable square feet in 38 states; and 181 self-storage facilities with approximately 10 million net rentable square feet in 7 western European nations. It also had direct and indirect equity interests in approximately 21 million net rentable square feet of commercial space located in 11 states in the U.S. As a REIT, the company would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. Public Storage was founded in 1971 and is based in Glendale, California.

10 Best Stocks To Own For August 2012:JDS Uniphase Corporation (JDSU)

 JDS Uniphase Corporation provides communications test and measurement solutions, and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers, and enterprises worldwide. The company?s Communications Test and Measurement segment supplies instruments, software, and services to enable the design, deployment, and maintenance of communication equipment and networks. Its product portfolio consists of test tools, platforms, software, and services for wireless and fixed networks. The company?s Communications and Commercial Optical Products segment offers components, modules, subsystems, and solutions that are used by communications equipment providers for telecommunications and enterprise data communications. This segment?s products comprise transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters, and circulators, which enable the transmission of video, audio, and text data through fiber-optic cables. It also provides various laser products, including diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers for micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping; and photovoltaic products, such as concentrated photovoltaic cells and receivers for generating energy from sunlight, as well as fiber optic-based systems for delivering and measuring electrical power. The company?s Advanced Optical Technologies segment offers optical solutions for security and brand-differentiation applications; and thin film coatings for a range of public and private-sector markets. This segment also provides multilayer product-security solutions that deliver overt, covert, forensic, and digital product and document verification. JDS Uniphase Corporation was founded in 1979 and is headquartered in Milpitas, California.
Advisors' Opinion:

• By Eri! c Fox At 2011-9-8
  JDS Uniphase (Nasdaq:JDSU) also beat street estimates on earnings and revenues when it reported its results in early February, ending up 38% in February. The company reported non-GAAP earnings of $0.12 per share compared to an estimate of $0.09 per share. It should be noted that the company lost $19.5 million on a GAAPbasis. 

10 Best Stocks To Own For August 2012:Peet's Coffee & Tea Inc. (PEET)

 Peet?s Coffee & Tea, Inc. operates as a specialty coffee roaster and marketer of fresh roasted whole bean coffee and tea in the United States. It offers whole bean coffee and related products consisting of products for home brewing, tea, and packaged foods; and beverages and pastries. The company also provides brewing equipment for coffee and tea; paper filters and brewing accessories; and branded and non-branded cups, saucers, travel mugs, and serve ware. Peet?s sells its products through various channels of distribution, including grocery stores; home delivery, office, restaurant, and foodservice accounts; and company-owned and operated stores. As of January 2, 2011, it operated 192 retail stores in California, Colorado, Illinois, Oregon, Massachusetts, and Washington. The company was founded in 1966 and is headquartered in Emeryville, California.
Advisors' Opinion:

• By Bill At 2011-9-12
  In addition to selling its product through company owned stores, Peet’s Coffee & Tea distributes its product via a number of established channels including grocery stores, home delivery, office accounts and restaurants. Shares are up 37% so far in 2011.
  As unemployment rates remained stubbornly high, Peet’s has generated profits over the past two quarters that have easily exceeded Wall Street estimates. That trend will continue the longer people stay out of work. For the current year the company is expected to make a profit of $1.50 per share growing 23% to $1.84 per share in 2012.
  Shares trade for a hefty premium of 38 times current-year estimates. Like Caribou that premium is likely based on the growth potential of Peet’s to expand its retail presence. I would buy this stock as more workers tire of searching for work in the comfort of home and head to the coffee shop instead.

Best Performing Japan Stocks - Mutual Funds, U.S. Stock Funds Lead January Inflows; ETFs Dip: Morningstar

Morningstar reported Monday that long-term mutual funds, after suffering outflows of $10.6 billion in December, collected $29.8 billion in January 2011, while stock funds experienced their best month since February 2006 with inflows of $15.8 billion after an eight-month run of outflows.
ETF inflows dropped slightly to $11.3 billion in January after collecting $18.4 billion in December. As of the end of 2010, assets under management exceeded $1 trillion. Best Performing Japan Stocks - U.S. stock ETFs drove inflows in January with $9.9 billion, Morningstar reports, despite being down 50% month over month. In December, U.S. stock ETFs brought in $17.2 billion.
Taxable-bond ETFs gained $2.9 billion in January, the month's second highest inflows by asset class.
International stock ETFs had the second highest inflows in 2010 among ETF assets classes, Morningstar reports, but saw modest outflows in January, losing $491 million.
Commodities ETFs, especially precious metals, led outflows, losing $1.7 billion. Futures-based broad agricultural commodities funds experienced some inflows.
Municipal bond outflows totaled $12.5 billion in January after suffering record outflows in December of $13.4 billion.
Taxable bond funds reversed course, gaining $10.7 billion in January after $4.5 billion in outflows in December. Credit-oriented categories, especially Best Performing Japan Stocks - bank-loan funds which gained assets of $5.6 billion in January, led inflows for the asset class. January was the second consecutive monthly inflow record for bank-loan funds, and was the sixth consecutive month-over-month increase.
Actively managed U.S. equity funds beat out Best Performing Japan Stocks - passively managed funds with $10 billion in inflows, compared with $5.8 billion. Morningstar reported that January was only the fourth month over the past three years that actively managed funds have outdrawn passively managed funds.
Best Performing Japan Stocks - Money market funds experienced their largest monthly outflow since April 2010, losing $75.9 billion in January.

2014 Silver Stocks - Five Ways to Become a Successful Wealth Manager

For any investment company looking to increase their investment or financial gain, they might need to look towards richer, wealthier clients to give that boost to their company. One way of doing this is by using wealth management. This can mean hiring a professional group to help look after issues such as financial and investment planning and insurance services whilst maintaining a good level of communication with clients and customers. It can also help create individual investment plans unique to every single customer.
More often than not, the clients are likely to be nearing or starting their retirement and would be looking to save money for the future and therefore they may be seeking financial advice. Becoming a wealth manager is by no means an easy feat and could require a restructuring of a company to fully succeed in this sector. However, there are a few points and aspects of the job to consider when becoming a wealth manager.
Firstly, the manager needs to know their high net-worth clients. Once their services have been met, this will eventually attract other wealthy investors who would be looking to invest their money. Once a network has been established, the manager can look to get feedback from clients and use this to improve their services as time goes on.
The next aspect is to have a successful business model. This is crucial for the wealth management service to be both successful and efficient to both the manager and its clients. The manager will need to pick an area to specialize in and then from there, they can offer other services as and when they feel it is needed. The other services can be provided from within the same firm or be hired out to a third party. From here, things can develop steadily with a manager hiring more staff to accommodate areas such as legal guidance and other financial services.
After the manager has a solid foundation to their firm, they will need to ! focus on clients that want their specific needs and service. Whilst this may limit the client base for the wealth manager, it will help them provide an efficient service to their key clients. It will help make certain tasks easier to perform such as reviewing client records and it will help the relationship between the manager and the client grow and develop.
As a firm, it is worth splitting the clients into different sections according to their needs and wants. This will help a firm direct the clients to the right manager who can then offer the right service. The clients can be split in a variety of ways such as type of service, level of communication and amount of investment. This can help improve a customer’s satisfaction and help a firm manage their staff, time and clients more efficiently.
The final point to consider is to offer services that are needed by the client. Customers are more likely to go to a firm who directly match the services they want so the wealth manager has to be as precise and clear with what they offer. A firm should look to have one specialist for each area and have a secondary member to provide help and assist the lead member. It will help a firm to provide a service that clients will find both efficient and effective to use.
Whilst it may not be easy to start out, a firm will quickly get themselves going if they make the right moves. This can involve identifying the right clients for the business to help get a good network established and the company should have the right experts to help provide the customers with an efficient and professional service. With all these aspects in place, a wealth manager can look forward to having a successful career.
Located on Houston, Texas Paul Comstock Partners is a fee only, private, independent, investment and wealth advisory firm. For more information call now 713-977-2694 or visit our website http://www.paulcomstockpartners.com/.

Good Industrials Stocks - Broker-Dealer Pacific West to Close Its Doors

In a further sign of economic and legal trouble for the independent broker-dealer space, Pacific West Financial Group, based in Renton, Wash., announced it was discontinuing operations.
The firm also said it has entered into an agreement with Denver-based Multi-Financial Securities Corp., to “bring over select advisors from Pacific West and facilitate a seamless transition experience for the advisors and their clients.” The agreement is subject to FINRA approval.
“We have been evaluating for some time, from an ownership perspective, how much sense it makes to continue,” said Tony Pizelo, Pacific West’s CEO, in an interview. “The business is calling for independent firms to take on greater and greater risk, but the reward is not in line with those risks, especially for a firm of our size.”
"The primary reason Pacific West had a tough go of it Jon Henschen of Henschen & Associates. "You have to be lean with up to date operational technology otherwise your overhead will eat up your profits. Exposure to off-the-beaten-trail tenants in common products would be the second reason, with further profit erosion as a result. Operating a broker-dealer out of Renton, Wash. would be the third factor with leasing and labor being high in that part of the county compared to say a midwestern or southern firm."
The tenants in common assertion is something Pizelo strongly denied. “It definitely did not contribute to the announcement,” he said. “Yes, we have tenants in common investments, but we are well-capitalized, and our reserve requirements were such that we were in no way forced to make this decision.”
Pacific West, established in 1972, has 320 reps and clears through Pershing, National Financial and TD Ameritrade.
Multi-Financial Securities Corporation, headquartered in Denver, was founded in 1981 and has 1,000 reps.
“We’ve been talking with Pacific West for about 12 months,” said Brett Harrison (left), president and chief executive officer of Multi-Financial Securities Corporation, when asked about the genesis of the deal in an interview. "We signed the current agreement on Nov. 8, but it isn’t to acquire Pacific West outright. Rather, we will talk to each one of their reps individually to make sure they are comfortable with coming on board and we are comfortable with having them come on board.”
When asked about specific retention targets, Harrison said, “Anytime you engage in something like this, you hope the retention is high,” adding that he is confident in the process the firm has laid out.
Pizelo said the conversion of reps is set to take place in early March. Erinn Ford, the firm’s chief marketing officer and daughter of Pacific West’s founder, will join Multi-Financial in a key role and also parent company Cetera Financial Group’s leadership team. Certain Pacific West employees will remain in place for several weeks or months after the conversion to address any outstanding issues.