(Updated) Brocade: Goldman, S&P Downgrade; Shares Fall 10%

Shares of Brocade Communications (BRCD) are tumbling in the wake of last night’s first-quarter revenue miss. Today both Goldman Sachs and S&P Equity Research downgraded shares of the data center play.
Goldman Sachs analyst Min Park lowered the stock to Neutral from Buy and cut Brocade’s price target to $6.50 from $8, citing uneven execution, potential for weakness in Brocade’s storage networking segment and lack of near-term catalysts.
At S&P, analyst Jim Yin slices Brocade’s price target by $2 to $5.50 and lowers shares to Hold from Buy. Yin notes that a rebound in Brocade’s ethernet business was more than offset by the decline in data storage revenue.
Shares of Brocade are off 10.7%, or 63 cents, to $5.24.
Update: Canaccord Genuity thinks the selloff has created an attractive opportunity. Analyst Paul Mansky this afternoon upgraded the stock to Buy from Hold. Mansky says the second quarter holds questions related to seasonality, competition, Europe and OEM inventories. But, “we view the challenges as fully discounted, leaving attractive returns over the 6- to 12- month horizon,” he writes in a note.

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Investigating the people behind those sketchy flat-stomach ads.
By Chadwick Matlin for The Big Money
The Internet wants me to have a flat stomach�and it wants me to have it for free. Over the last few months, those flat stomach ads have followed me around the Internet like a beggar asking for money. On many of my favorite Web sites (including the ones I work for), high-class Internet advertising has been replaced by these low-budget pictures promising a better physical and superficial life.
The ads plead: Wouldn�t I like to click and read a flat-stomach testimonial? And from there, wouldn�t I like to click to see a product that could help me get that flat stomach without even trying? And from there, wouldn�t I like to order that product for free? And wouldn�t I like to give them my credit card info? And wouldn�t I like to investigate a mysterious charge on my credit card bill 30 days after I subscribe to my free product? And wouldn�t I like to hold for two hours while I try to cancel my account after I realize I�ve been had?
Read more….

AuthenTec, Inc., (AUTH) Rolls Out Into China; Share Value and Volume Soars

U.S. indices were down this morning�after China's main index plunged 6.7%, adding to a nearly 3% drop on Friday. The sell-off in Chinese shares has been fueled�by�worries over bank lending that could�affect the country's economy as a whole.
Plunging Right Ahead
Gaining over 29% ($0.62) in early trading today, AuthenTec, Inc., (AUTH) http://www.authentec.com/ set a new market cap of $77 million. AUTH is currently trading in the $2.66 range on the NASDAQ. The 3-Month average daily trading volume of AUTH is 236,362 shares and it had easily tripled that number topping 996,219 shares traded by 10:30 a.m. EST.
The volume surge and stock price gain came on Company news that AUTH will expand into the greater Chinese mainland at the direction of a new Vice President. AUTH�has headquarters in Shangai, China and is based in Melbourne, Australia. Dr. Lunji Qiu was named as Vice President & General Manager of AuthenTec China.
Dr. Qiu previously held positions as Vice President of Product Development & General Manager of Atrua Technologies, General Manager of Broadcom China, and held management and engineering positions with Motorola in Singapore.
"His background and expertise, coupled with our expansion initiatives will help us further pursue the tremendous growth opportunities not only in China but the rest of the world, as well," said Scott Moody, AuthenTec Chairman and CEO.
AuthenTec's design center in Shanghai serves as a base of operations for AuthenTec China's sof! tware de velopment, sales and technical support teams. The Company recently added three new players to its 28-member China team, including two senior field applications engineers and a sales account manager.
AUTH management noted that China is a key region for growth in AuthenTec's target markets of notebook PCs, netbooks and smartphones. AuthenTec has the broadest portfolio of silicon fingerprint sensors on the market today. On August 7, AUTH reported revenues of $8.4 million for the period ending July third, up from $7 million in the first quarter and ahead of its guidance of between $7.8 million and $8.3 million.
AUTH provides fingerprint authentication sensors and solutions to nearlt 50 million personal computer and wireless device markets via its TrueSuite and Power of Touch applications. �
At $2.66, AUTH is below its 52-week high of $8.39 set on 09-02-08 and above its 52-week low of $1.26 set on 02-27-09. At $2.66, AUTH is ahread of both its 50-day and 200-day moving averages. Auth has trailing twelve month revenues of $45 million. Its shares out versus float ratio is near-parity.
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Barrick Gold Corp. (NYSE: ABX) Bets Big on Copper Demand in $7 Billion Deal

Barrick Gold Corp. (NYSE: ABX), the world's biggest gold company, announced a big bet on copper yesterday (Monday) with a $7.68 billion ($7.3 billion Canadian) offer for copper producer Equinox Minerals Ltd. (ASX: EQN; TSE: EQN).

Copper prices are up about 15% in the past year on higher demand from China and other developing economies.

Equinox owns two key sources of copper production: the Lumwana mine - Africa's third largest by production - in Zambia's rich copper region; and most of Saudi Arabia's Jabal Sayid project, the country's biggest deposit of the metal. At full capacity, Lumwana is expected to account for 20% of Zambia's copper production.

"The acquisition of Equinox would add a high-quality, long-life asset to our portfolio and is consistent with our strategy of increasing gold and copper reserves through exploration and acquisitions," Barrick's President and Chief Executive Officer Aaron Regent said in a statement. "It's very rare that assets like this come on the market. If you look at the top 20 mines in the world, this is the only one that's actually available."

The deal will double Barrick's copper position. Barrick already produces copper at Chile's Zaldivar mine and Cerro Casale project.

Regent, like many commodities followers, is bullish on long-term copper prices.

"Directionally, I would say that most of the long-term copper price assumptions that are being used right now are understating what's going to happen," Regent said.

Barrick's offer is 1.39 times Equinox's enterprise value, higher than the average multiple offered for similar deals over the past few years, according to Bloomberg News.

"It really shows how few junior companies are available for acquisition by the major gold companies," John Stephenson, a senior portfolio manager at First Asset Investment Management Inc., ! told Bl oomberg.

Out of the 17 deals Barrick has completed since its start in the early 1980s, this deal would be the company's second-largest after a $10.2 billion purchase of Placer Dome Inc. in 2005.

Barrick is trying to diversify its gold focus to compete with global mining giants like BHP Billiton Ltd. (NYSE ADR: BHP) and Rio Tinto Plc (NYSE ADR: RIO). Barrick currently relies on gold for 80% of its revenue.

Equinox shares are up 37% this year and rose 11% on the Toronto Stock Exchange on news of the Barrick deal. The bid vales Equinox at $8.15 Canadian a share, 16% higher than a previous bid by China's Minmetals Resources. Minmetals offered $6.5 billion ($6.3 billion Canadian) on April 3, and Equinox called the bid a "lowball price."

"For Equinox shareholders, this is a great deal," John Goldsmith, a Toronto-based fund manager at Montrusco Bolton Investments Inc., told Bloomberg. "There won't be another bid higher than this. It more than fully values Equinox."

Equinox made an offer on Feb. 28 for Canadian copper and zinc producer Lundin Mining Corp. (TSE: LUN), but will drop the bid.

Commodity Prices Make for Ambitious Mining Sector

The materials sector, which includes mining, has already seen $133 billion in deals this year, more than double the $57.5 billion for the same period in 2010. This latest venture highlights how mergers and acquisitions and expansion projects are heating up in the mining sector as commodities prices continue soaring.

Gold settled at a record $1,509.10 an ounce Monday on the New York Mercantile Exchange, and hit an intraday record of $1,519.20 an ounce. Silver rallied 2.4% to close at $47.14 an ounce.

If commodities continue to climb, the deals that companies like Barrick are now making will seem like a steal compared to how high prices for mining assets could go.

"In a world where commodities are trading at ever new highs! , and y ou're looking at [the Zambian] project and the cash flow generated, the reality is today's prices may well be cheap in tomorrow's world," John Ing, an analyst at Maison Placements, told Reuters.

Mining companies are also sitting on a lot of cash, and hungry to score more assets in key producing regions.

"As de-leveraged companies compete for shrinking resources, we expect merger and acquisition activity to continue to pick up, characterized by larger deals and bolt-on acquisitions," Michael Lynch-Bell, global mining and metals transactions advisory leader at Ernst & Young, told Reuters.

Some of the biggest mining players like BHP Billiton, Rio Tinto and Xstrata Plc (LON: XTA) said instead of takeovers they are looking to spend billions on expansion efforts.

BHP said it expects to spend $80 billion on growth over the next five years.

"As one looks at a buy versus build equation, the clear opportunity for us is to continue to invest money in our organic portfolio," BHP CEO Marius Kloppers told analysts earlier this year.

Mining companies are also venturing into more politically risky regions like Papua New Guinea and Mongolia.

"If you are looking for new projects, new assets, then you have to go to those countries that are perceived to be riskier," said Lynch-Bell.

Lynch-Bell also said initial public offering (IPO) activity in the metals and mining sector should pick up in 2011 as well.

"We are certainly busier than we've been for a long time in terms of preparing companies for IPO: it's iron ore, it's coal, it's platinum," he said.

Child-Related Tax Breaks After Divorce - SmartMoney.com

Divorces cause tax issues, including which parent is allowed to claim valuable child-related tax breaks. Sometimes, but not always, it depends on which parent is allowed to claim the child as a dependent. Here's what you need to know.

Are You the Custodial Parent or the Noncustodial Parent?

For tax purposes, a child is usually treated as "belonging" to the parent who has custody for the greater part of the year. That parent is called the custodial parent. The other parent is called the noncustodial parent.

Also See

• Don't Lend Uncle Sam Money at Tax Time
• Give Your College Kid a Tax Break
• 20 Ways to Make the Most of Capital Gains

The general rule says that only the custodial parent can claim the dependent exemption deduction for the child. However an exception allows the custodial parent to give the noncustodial parent the right to claim the designated child as a dependent. Making this concession doesn't help the custodial parent's tax situation, but it's often a necessary part of settling the divorce. We will call this exception to the general rule the noncustodial parent rule. As you will see, it is an important tax-saving provision for all you noncustodial parents out there.

Noncustodial Parent Rule Can Translate into Major Tax Savings

Under the noncustodial parent rule, the designated child is treated as a qualifying child of the noncustodial parent if all the following requirements are met.
Support Requirement: Over half the child's support for the year must be provided by one or both parents.
Divorced or Separated Requirement: The parents must be divorced or separated under a written agreem! ent at t he end of the year or have lived apart during the last six months of the year.
Custody Requirement: The child must be in the custody of one or both parents for over half the year.
Written Declaration Requirement: The custodial parent must sign a written declaration releasing to the noncustodial parent the right to claim the designated child as a dependent for the year. To meet this requirement, have the custodial parent sign IRS Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent). The noncustodial parent must attach a copy of Form 8332 to his or her Form 1040.
When all these requirements are met, the noncustodial parent is eligible for the tax breaks listed below with respect to the designated child. (Correspondingly, the noncustodial parent is ineligible.)
Dependency Exemption Deduction: This deduction is $3,800 for 2012; $3,700 for 2011.
Child Tax Credit: This credit is worth up to $1,000 for each eligible child (subject to phase-out for higher-income parents).
Higher Education Tax Credits: The American Opportunity credit can be worth up to $2,500 during the first four years of a child's college education. The Lifetime Learning credit can be worth up to $2,000, and it covers just about any higher education tuition costs. (Both credits are phased out as the parent's income goes up, but the Lifetime credit is phased out earlier.)
Student Loan Interest Deduction: This deduction can be for up to $2,500 of qualified student loan interest expense paid by the parent (subject to phase-out for higher-income parents).
Tuition Deduction: This deduction can be as much as $4,000 for higher education tuition and mandatory enrollment fees. (At higher income levels, the maximum deduction drops to $2,000 before being completely disallowed at still-highe! r levels .)
Important Point: When the noncustodial parent rule isn't in effect for a child, the breaks listed above are completely off limits for the noncustodial parent, but they can usually be claimed by the custodial parent.

Some Breaks Are Available to Both Parents

Whether the noncustodial parent rule applies or not, the noncustodial parent can usually claim the tax breaks listed below as long as the first three noncustodial parent rule requirements are met (the support requirement, the divorced or separated requirement, and the custody requirement). The custodial parent can also usually claim these breaks.
* Itemized deductions for the child's medical expenses paid by the parent.
* Tax-free employer-provided healthcare benefits for the child.
* Tax-free health savings account (HSA) distributions to cover the child's medical expenses.

Some Breaks Are Only Allowed to the Custodial Parent

The noncustodial parent cannot claim the following breaks based on a child to whom the noncustodial parent rule applies. The custodial parent can if he or she meets the applicable tax-law requirements.
Head of Household (HOH) Filing Status: Filing as an HOH is better than filing as a single taxpayer, because the standard deduction is bigger and the tax brackets are looser. A noncustodial parent cannot claim HOH filing status based on a child who falls under the noncustodial parent rule.
Earned Income Tax Credit: For 2012, this credit can be worth up to $3,169 for one qualifying child and up to $5,891 for three or more qualifying children. The credit is phased out as the parent's income goes up. A noncustodial parent cannot claim the credit for a child who falls under the noncustodial parent rule.
Child Care Tax Credit: This credit can range from $600 to $1,050 for one qualifying child; $1,200 to $2,100 for two or more--based on the parent's income. A nonc! ustodial parent cannot claim the credit for a child who falls under the noncustodial parent rule.
Tax-Free Childcare Assistance: This break allows up to $5,000 in federal-income-tax-free reimbursements for childcare expenses under an employer plan. A noncustodial parent cannot receive tax-free reimbursements for a child who falls under the noncustodial parent rule.

For More Information

The rules I've explained here are not so easy to understand, even for tax pros. For more information, check out IRS Publication 504 (Divorced or Separated Individuals) at www.irs.gov.

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From AAO Weblog
Finally, a �normal� sort of SAB 108 adjustment� normal, at least, in the context of what you�d expect.
Home healthcare provider Apria Healthcare Group went the cumulative-adjustment group in their 10-K filing for 2006, with their correction of revenue recognition. It�s exactly the kind of error you�d expect to see corrected a la SAB 108: a known error for years, immaterial when viewed one way – the rollover method, in this case – but material when you look at it in the context of the iron curtain.
(If the terms �rollover� and �iron curtain� leave you scratching your head, click here for some help.)
Apria�s issue: they bill customers monthly for the use of equipment. T
hat monthly bill is actually a prepayment on the part of the customer for the right to use the equipment for a month – but unless that billing takes place on the first day of the month, a portion of the billing is for revenue to be recognized in a subsequent month. Apria recognized revenue based on the billing, instead of the period in which the service was actually provided. The expense associated with those revenues also get recognized out of synch with the period in which the service is actually rendered, too. Net effect: early revenue and expense recognition.
To correct it, Apria established a deferred revenue account for $32.3 million and a deferred expense account for $22.7 million, implying about a 30% gross profit on such services. The after-tax effect hitting retained earnings: a charge of about $5.5 million. While any one year�s error might have been immaterial, catching up those all of the errors would have been material to any one year�s earnings.

A pretty basic principle – match revenues/expenses with the periods in which they�re earned and incurred – now being applied properly because of the amnesty provided by SAB 108. One wonders what would kind of scenario would instigate cor! rections everywhere if SAB 108 hadn�t come along.

Hot Stocks In September 2015

Many thanks to all of you who sent me an email with questions about your stocks. While there was no single company that seemed to be on everyone’s mind, there was a clear trend: Gold.

This week, I’ll cover three different precious metals companies to help show you the challenges and opportunities of the industry. But more importantly, I’m going to give you a clear buy signal for what I think is the very best stock to play the gold surge:

Hot Stocks In September 2015:CNO Financial Group Inc. (CNO)

 CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Hot Stocks In September 2015:Nuveen Municipal Income Fund Inc. (NMI)

 Nuveen Municipal Income Fund, Inc. is a closed ended fixed income mutual fund launched by Nuveen Investments Inc. It is managed by Nuveen Asset Management. The fund invests in the fixed income markets. It primarily invests in municipal obligations issued by state and local government authorities. The fund?s investment portfolio comprises investment in companies operating in various industries, including healthcare, materials, education and civic organizations, and consumer staples. Nuveen Municipal Income Fund was formed on April 20, 1988 and is based in the United States.

Hot Stocks In September 2015:Edac Technologies Corporation (EDAC)

 EDAC Technologies Corporation provides design, manufacturing, and other services to the aerospace and industrial markets. The company produces low pressure turbine cases, hubs, rings, disks, and other complex and close tolerance components for various aircraft engine and ground turbine manufacturers. It also offers rotating components, such as disks, rings, and shafts; provides precision assembly services, including the assembly of jet engine sync rings, aircraft welding and riveting, post-assembly machining, and sutton barrel finishing; and engages in precision machining for the maintenance and repair of components in the aircraft engine industry. In addition, the company designs and manufactures fixtures, precision gauges, close tolerance plastic injection molds, and precision component molds for composite parts and specialized machinery. Further, it designs, manufactures, and repairs various types of precision grinders, as well as precision rolling element bearing spindles, including hydrostatic and other precision rotary devices for machine tool manufacturers, special machine tool builders and integrators, industrial end-users, and powertrain machinery manufacturers and end-users in the United States, Canada, Mexico, Europe, and Asia. The company serves a range of industries in areas, such as special tooling, equipment and gauges, and components used in the manufacture, assembly, and inspection of jet engines. EDAC Technologies Corporation was founded in 1946 and is based in Farmington, Connecticut.

Hot Stocks In September 2015:Stanley Black & Decker Inc. (SWK)

 Stanley Black & Decker, Inc. manufactures tools and engineered security solutions worldwide. The company?s Security segment provides a range of mechanical and electronic security products and systems, as well as various security services consisting of security integration systems, software, and related installation, maintenance, monitoring services; automatic doors, door closers, and exit devices; healthcare storage and supply chain solutions; patient protection products; hardware; and locking mechanisms. This segment sells its products to retailers; educational, financial, and healthcare institutions; and commercial, governmental, and industrial customers through direct sales forces and third party distributors. Its Industrial segment offers mechanics tools and storage systems, including wrenches, sockets, electronic diagnostic tools, tool boxes, and industrial storage and retrieval systems; engineered healthcare storage and retrieval systems; hydraulic tools and accessories; plumbing, heating, and air conditioning tools; assembly tools and systems; and specialty tools. This segment sells its products to industrial customers through third party distributors and direct sales forces. The company?s Construction & Do-It-Yourself segment manufactures hand tools, including measuring and leveling tools, planes, hammers, demolition tools, knives and blades, saws, chisels, and consumer tackers; consumer mechanics tools; storage units comprising plastic and metal tool boxes; and pneumatic tools and fasteners for use in construction, remodeling, furniture making, pallet and manufacturing applications. This segment sells its products to professional end users and consumers through retailers, including home centers, mass merchants, hardware stores, and retail lumber yards. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. Stanley Black & Decker was founded in 1843 and is based in New Britain, Connecticut.
Advisors' Opinion:

By SamSam Collins Collins At 2011-9-11 Stanley Black & Decker, Inc. (NYSE: SWK ) is the largest producer of power tools and accessories with brands such as Stanley, Black & Decker, FatMax, DeWalt, Bostitch, Porter-Cable, Facom, Emhart Teknologies, Proto, Kwikset and Mac Tools. Sharp sales growth following the acquisition of Black & Decker in March 2010 focuses the company on the construction and do-it-yourself segments. Credit Suisse has an "outperform" rating on SWK with an earnings estimate of $6.11 for 2012. Their price target is $72. Technically the stock is holding above both its 200-day moving average and its bullish support line. A break above $65 supports a price target of $73.

Hot Stocks In September 2015:Mohawk Industries Inc. (MHK)

 Mohawk Industries, Inc., together with its subsidiaries, engages in the production and sale of floor covering products for residential and commercial applications primarily in the United States and Europe. The company operates through three segments: Mohawk, Dal-Tile, and Unilin. The Mohawk segment designs, manufactures, sources, distributes, and markets floor covering product lines, which include carpets, ceramic tiles, laminates, rugs, carpet pads, hardwood, and resilient. This segment offers its products under the brand names of Mohawk, Aladdin, Mohawk ColorCenters, Mohawk Floorscapes, Portico, Mohawk Home, Bigelow, Durkan, Horizon, Karastan, Lees, and Merit. In addition, this segment markets and distributes its soft and hard surface products through independent floor covering retailers, home centers, mass merchandisers, department stores, commercial dealers, and commercial end users, as well as through private labeling programs. The Dal-Tile segment designs, manufactures, sources, distributes, and markets a line of ceramic tile, porcelain tile, and natural stone products. This segment offers its products primarily under the Dal-Tile and American Olean brand names through company-owned service centers, independent distributors, home center retailers, tile and flooring retailers, and contractors. The Unilin segment offers laminate and hardwood flooring under the brand names of Quick-Step, Columbia Flooring, Century Flooring, and Universal Flooring through retailers, independent distributors, and home centers. This segment also produces roofing systems, insulation panels, and other wood products. Mohawk Industries, Inc. was founded in 1988 and is headquartered in Calhoun, Georgia.

Hot Stocks In September 2015:Exxon Mobil Corporation (XOM)

 Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.
Advisors' Opinion:

• By Hawkinvest At 2012-2-23
  
  Exxon (XOM) is a must-own stock for many oil investors. This company has a strong balance sheet and a very significant reserve base, which grows in value with the price of oil. Exxon recently reported solid results with earnings for the fourth quarter of 2011 coming in at $1.97 per share. The company also reported that it bought back about $5 billion worth of shares. Weaker margins in the refinery business did impact results, but overall, the report shows that the company is poised for a solid year ahead. Exxon has a very strong balance sheet and it can afford to continue buying back shares which will help to boost future earnings. This stock was trading for about $80 per share in December, but has been trending higher. Exxon shares have recently been finding support around $83 per share, so buying on dips at that level are particularly attractive.
  
  
  Here are some key points for XOM:
  
  
  Current share price: $86.57
  The 52 week range is $67.03 to $88.23
  Earnings estimates for 2011: $8.25 per share
  Earnings estimates for 2012: $8.99 per share
  Annual dividend: about $1.88 per share which yields about 2.2%
• By John Reese At 2012-1-11
  Again, another company that will win either way.  This is the largest company by market cap on the US stock market.  That makes them a safe haven asset when the economy is going south.  But in addition to their defensive qualities, they also have great long term prospects for growth.  They are always finding new reserves of oil.  But they are also investing in other energy sources as well like natural gas.  I think they will be a huge player in the natural gas power generation business in years to come.  I’m bullish here because I think gas will become a major player in the power generation industry in the US.  It burns cleaner than coal and safer than nuclear.
• By Dave Friedman At 2011-9-23
  Institutional investors bought 79,917,190 shares and sold 113,327,900 shares, for a net of -33,410,710 shares. This net represents 0.68% of common shares outstanding. The number of shares outstanding is 4,885,000,000. The shares recently traded at $72.64 and the company’s market capitalization is $353,184,000,000.00. About the company: Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis. The Company’s operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets f! uels, lu bricants, and chemicals.
• By Jim Cramer At 2011-9-7
  Hmm. This is a tough one. Oil up $10 will certainly help, but the overpay of XTO Energy (XTO), a nat gas company bought when prices were so much higher, will continue to bite earnings and the company's conservative nature will make it seem plodding versus the other companies here. I don't share the appreciation many have for this company. I regard it more as a bank than an exploration and production company. That's why I see it only inching up about $5 to $78 and change, a very disappointing member of the Dow considering what is does for a living.

Hot Stocks In September 2015:General Dynamics Corporation (GD)

 General Dynamics Corporation provides business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology products and services worldwide. Its Aerospace group offers mid-size and large-cabin business-jet aircraft, as well as provides maintenance, refurbishment, outfitting, and aircraft services for business-jet, narrow-body, and narrow-body customers. The company?s Combat Systems group designs, develops, and produces tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company?s Marine System group designs, builds, and supports submarines and surface ships for the U.S. Navy; and Jones Act ships for commercial customers. This group offers nuclear-powered submarines, surface combatants, and auxiliary and commercial ships; and provides design and engineering support services, as well as ship and submarine overhaul, repair, and lifecycle support services. Its Information Systems and Technology group provides technologies, products, and services that support a range of government and commercial communication, and information-sharing needs, including communications systems, command-and-control systems, and operational hardware; information technology services; and intelligence, surveillance, and reconnaissance systems to the U.S. Department of Defense, the Department of Homeland Security, intelligence community, federal civilian agencies, intelligence and homeland security communities, and commercial and international customers. General Dynamics Corporation was founded in 1899 and is based in Falls Church, Virginia.
Advisors' Opinion:

• ! By Vatal yst At 2011-10-28
  General Dynamics (GD) operates in the aerospace/defense industry, is the fifth largest military contractor and one of the world’s largest makers of corporate jets. Its Gulfstream jet is one of the world’s most popular corporate aircraft.
  The common stock currently trades at price to earnings ratio of 8.9, well below industry average of 13.1 and its historical average of 13. Price to book ratio is 1.62 while price to cash flow ratio is 7.
• By Dave Friedman At 2011-9-22
  The shares closed at $62.77, up $1.59, or 2.6%, on the day. They have traded in a 52-week range of $55.46 to $78.27. Volume today was 2,338,444 shares, against a 3-month average volume of 2,440,760 shares. Its market capitalization is $22.71 billion, its trailing P/E is 8.95, its trailing earnings are $7.01 per share, and it pays a dividend of $1.88 per share, for a dividend yield of 3.10%. About the company: General Dynamics Corporation is a diversified defense company. The Company offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding design and construction; and information systems, technologies and services

Triumphs of the Regulators

The magnificent and multiple failures of financial regulators over the past few years have been rather alarming. From Ponzi schemes to massive brokerage implosions, we’re no longer surprised by the multibillion dollar meltdowns; we’re just surprised that it keeps happening under the careful watch of financial regulators.
Pessimists say regulators have had so many big misses that they might as well not have existed. But this is a shortsighted view. It also fails to appreciate that creating a bureaucratic dynasty takes careful planning.
In recent years, the Securities and Exchange Commission’s pinnacle of regulatory success is illustrated by its “big” catches:
Exhibit A: The crucifixion of Martha Stewart has the SEC’s trademark stamped everywhere. She was convicted of lying to investigators about a stock sale that involved purposely avoiding $45,673 in market losses. Stewart served five months in prison, with limited access to flowers and baking pans. Because of her imprisonment, the SEC almost single-handedly starved our nation. How many cookie snacks were missed during Stewart’s detention? I’m glad to report most Americans have gained back all the pounds they lost.
Exhibit B: Allen Stanford is another outstanding example of “big” catches. He was allowed to become a billionaire after many years of being secretively watched but never caught. All fingers point directly to the SEC’s faulty license revocation policy. While the agency has revoked plenty of series 6s, 7s, and 24s, it has yet to revoke anybody’s license to steal. To salute his financial acumen, Antigua and Barbuda knighted Stanford as an official “Sir.” But in Texas, where he grew up, he’s still known as “cattywompus.”
Exhibit C: A final case study is none other than Bernard Madoff, whose multibillion dollar investment scam to this day continues to awe crooks (and capitalists) throughout the world. According to some accounts, he became a millionaire by the age of 29 but only because he was a thief by the age of 16. The SEC, technically speaking, cannot count Madoff as a “big” catch, because they never caught him. He was ratted out by his sons. As a result, Madoff was found guilty and sentenced to 150 years behind bars, which is a pretty good deal. Did you know that in the Republic of Congo — for similar sins and offenses — they rope you to a tree and come back for you in three months?
For whatever it’s worth, here is the general order of all securities rulemaking: Previous rules are replaced with new rules, which eventually get replaced with the previous rules. Meanwhile, as a team of government lawyers continually adds to the cesspool of existing rules, an even larger team of lawyers working for Wall Street exploits the loopholes like a hot knife slicing through butter. And whatever loopholes they miss, lobbyists have already begun to tackle. Ultimately, innovative rules lead to innovative rule-skirting.
For the quantitative-oriented minds that still don’t understand this concept, here are the equations:
Old Rules (x) + New Regulation (y) = More Rules¹⁰ (z)
More Rules¹⁰ (z) + Future Rules (?) = More Rules and Laws¹⁰⁰
More Rules and Laws¹⁰⁰ = More Loopholes¹⁰⁰⁰
Mathematical equations aside, we are still left with a juicy question: Do more rules create better regulation?
To a greater extent, I think today’s police work has become a modern day replica of the Spanish Inquisition. In some cases it appears the SEC has completely shifted its attention away from regulating to revenge. Someday all of this may eventually lead to one worldwide regulator that combines Interpol, the CIA, FINRA, SEC, and SWAT into one united offense against anyone wearing a Brooks Brothers suit.
From what I gather, most of Wall Street’s criminals have already been barred from the securities business, or they’ve graduated to bigger things, like how to run the world. The rest of their time is spent sheltering their billions in private offshore charities. Thankfully they are no longer the SEC’s concern because they now fall under the dual jurisdiction of the IRS and Coast Guard.
For the public good, I would like to see the SEC simplify its charter and aim for more achievable milestones. How about this one: “We won’t make things worse.” Now there’s a bona fide mission statement, and it even has a nice ring to it. •
This commentary was adapted from Ron DeLegge’s new book Gents with No Cents: A Closer Look at Wall Street, its Customers, Financial Regulators and the Media (Half Full Publishing, 2011).

Understand The Art Of Trading

Trading successfully is a prolonged process and not the quick earn machine. Very few traders have the patience to walk through the process. This process begins with putting money in the real account and hoping to make quick bucks quickly. But having sacrificed few accounts and the emotional pain, one comes to a conclusion that it is a herculean task. So how can one transform from the one who has blown up many accounts into a successful trader? You can achieve this only if you remain patient and learn how you can trade profitably. One should look at every possible opportunity to learn the successful trading. There are many ways to improve your trading performance.
Don’t Repeat Mistakes
Mistakes are part and parcel of trading. There are few common mistakes most traders make when they start. If you are aware of these mistakes in advance you will know which aspects to be careful of. One does not have to commit mistakes to learn. It is an intelligent approach to learni by avoiding mistakes.
Sign Up with a Mentor
One of the simplest ways is to sign up with a mentor. The advantage of having a mentor is that it will minimize your learning curve. One can still face the difficulties in trading. But mentor will help and guide you through this process especially in the light of the fact that he has seen all that. Mentor is an experienced trader and he knows most of the mistakes. Having mentor eliminates the noise in the process.
Select a Mentor Carefully
There are many famous mentors available on the Internet. They come from different countries. But it doesn’t matter in the age of Internet. You can easily reach them. You will have to select the mentor carefully. Most of the mentors outline their trading philosophy on their website. You should study their approach carefully. Visit their blogs and spend some time there. Get an idea of their trading strategy by watching videos if available. If it makes any sense to you then only go ahead and sign up. Be aware of tradin! g gurus who use flashy advertisements.
Read Books
Other useful way to get knowledge of trading is to read books. There are some excellent books on trading. These books will tell you the logic behind a particular trading strategy or a particular indicator. If you are a price action trader, you should know why pin bars are formed and what information they convey? Reading books will help you in becoming a profitable trader as you will know why you are doing something.

Other Sources to Learn from
Other conventional methods include watching videos, reading blogs, subscribing to newsletter etc. Forex mentors stay in touch with the trading commuity through blogs, commentary on the recent happening in the markets. These are some of the cheapest form of acquiring the knowledge, as I don’t know any blog that charges you for reading. Newsletter will keep you updated with the latest analysis of the markets.
Trading successfully is not an easy job. If you keep learning, the roadblocks on the road will be fewer. If you have a thirst for knowledge, you can be successful at trading. Be prepared to assimilate the knowledge from every direction. It is not an impossible job to be a profitable trader.
Discover ways regarding how to become a profitable trader simply by visiting how to choose an online broker. You can also check out day trading strategies to learn more techniques.