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If your home market has started to peak, you may be ready to sell your home. In the seller’s market, there’s a lot to research in order to keep your edge on the housing market. To walk away with the best price, you’ll have to keep tabs on priorities like where you’ll move to next; how you’ll improve your resale value; and how you can encourage buyers to accept your asking price, or even bid higher. You can’t discount solid research when entering the home market. Taking care of a few actionable items with good financial management can mean the difference between sitting on your home for eight months, and turning it around in three.
The first step to take before selling your home is to figure out where you’ll move once you’ve handed over the keys. You don’t want to be left holding your bags and boxes by the curb side, so start researching a new place — or if you plan to rent, look for apartments and make sure they’re available when the time comes.
Be as prepared as possible, since selling is no small feat. Your first step is to look into a home loan pre-approval, and examining your credit ratings to be sure you’ll get a good percentage. If you’re interested in moving up-market with your next house, too, be sure you can make a sufficient down payment so your monthly payments will be reasonable.
Check your credit ratings. Unlike credit reports, credit scores are a formulated rating which lets you know where you stand in terms of creditworthiness. One of the most popular and credible credit score are FICO scores from Fair Issac, which are used by 90% of the largest U.S. banks.
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While you go through this process of pre-approved finances, you’ll want to be sure that you also check the rules on your current mortgage. Does your current mortgage have pre-payment penalties? If so, how much are you looking for in penalties? You’ll want to keep these in mind as you consider a listing price for your current home.
As you look at your possible early pre-payment penalties costs, request a mortgage payoff amount as well: It’s is the amount of money you’ll need in order to pay off the loan right now. You’ll need that information — as well as the info on pre-payment penalties —to determine a good listing price for the home as well. Quick Fixes: Home Improvement
Let’s focus on that listing price for a moment, though. Obviously when you sell your home, you’re looking for the best price possible. Often, then, that means doing small to even major renovations so that you land in a good segment of the market. If you’re skeptical, don’t worry: you’ll be surprised at your return-on-investment for these improvements. Focusing on areas like bathrooms, kitchens, and the master suite becomes especially valuable at this stage. A clean, smart-looking, and upgraded kitchen can add an enormous amount of value to your home and can also improve its general appeal to your buyers.
Other home improvements can be easier to manage, as well: You can improve the value of your bathroom, for example, by replacing its faucets, shower heads, fixtures, and lighting. It’s also a good idea to replace the toilet and to examine the floors and counter tops for wear. Last but not least, your walls could probably use a facelift: especially if your bathroom has a show! er, wall s can accumulate mold or mildew. Most people prefer painted bathroom walls over wallpaper, as well, so you may want to rip out that old floral pattern and give it a more modern look.
A few other cheap upgrades for your home include replacing its carpeting and doing minor landscaping in your yard. Clear out weeds and debris outside, power-wash your driveway, and don’t forget to repaint or re-stain those old wooden fences. A fresh coat of paint on the outside of the home — in a natural, neutral tone — will also give your home that curb appeal it desperately needs for a quick and easy sale. Finally, The Appraisal
Your next step in the process of selling your home is to order an appraisal! This is important, because a professional will be able to assess the fair market value of your home. Appraisals are tricky, though: don’t fall under the assumption that you’re automatically going to get a buying price for the amount at which your home was appraised. A myriad of other factors come into play, and you could end up selling for more or less depending on the surrounding neighborhood’s market, the number of buyers on the market, and the current standard interest rates. Key Costs
Since everything here in the end is about improving your personal finance situation, you need to know what the costs of selling your home will actually be. Some key factors in determining your overall costs are:
To get your home out into the market, you’ll need to advertise — which may include costs for listings in newspapers, on websites, using signs near the home to announce your sale, and flyers for the home that potential buyers can use as a reference.
Even though your buyer should pay for surveys and inspections, it’s good to keep these expenses in mind as your buyer will need to consider them when considering their purchase.
If you use a real estate agency to sell your home, you’ll ne! ed to kn ow the real estate commission amount and any possible miscellaneous fees.
Don’t forget to include prorated costs for annual expenses like property tax, propane tank rentals, home owner association fees (if applicable), or any other rental fees for the home.
The excise tax for the sale will make a difference in your total.
Closing costs, escrow fees, and any possible attorney or professional fees factor in, as well.
As you look for a real estate agent to sell your home, you’ll want to look for a reputable company with experience in both selling homes and in your particular area, so that they can get the most value for your home possible. Don’t forget to ask what their commission will be, right from the start. Look for a reasonable rate that is likely to both save you money and still be worth the real estate agent’s time.
Now that you’re armed and ready to sell, you’ll need to exercise patience and maintain a clean home for potential buyers to view. If you use a real estate agent, you shouldn’t have much to worry about. Simply keep your finances in order, keep in mind the costs of selling your home, pre-payment penalties, and mortgage payoff amounts when considering a potential sale, so you can leave confidently with a tidy sum at the end of the sale.
Your personal finances are important, especially when selling a home. Be smart in your choices, stay informed, and be prepared for when that real sale occurs — so that you’re not left knocking on your in-laws’ door for a place to stay!
In mid-September, stocks broke through the top of a trading range that had stubbornly resisted both buyers and sellers for five months. But instead of the breakout being accompanied by high volume with emphasis on blue-chip stocks, the rally has lacked volume and is currently being led by lower-quality stocks. This conundrum has perplexed even the most experienced technicians and fund managers.
September turned the best performance in 71 years, with the major indices rising over 8%, but stocks now appear to be grossly overbought. Investors should consider locking in their gains by selling or using options strategies to stabilize their holdings. This is no time to be a hero by buying at the top. However, despite the short-term overbought nature of the market, there are always bargains to be found if you look hard enough. The six stocks to buy listed here represent extraordinary value even in the current market condition.
5 Good Value Stocks 2014:Olin Corporation (OLN)
Olin Corporation engages in the manufacture and sale of chlor alkali products in the United States and internationally. The company operates in two segments, Chlor Alkali Products and Winchester. The Chlor Alkali Products segment manufactures and sells chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, bleach products, and potassium hydroxide. The Winchester segment offers sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. The company serves various industrial customers, wholesalers, and other distributors, as well as the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is based in Clayton, Missouri.
5 Good Value Stocks 2014:Avon Products Inc. (AVP)
Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.
5 Good Value Stocks 2014:Ball Corporation (BLL)
Ball Corporation, together with its subsidiaries, supplies metal packaging to the beverage, food, and household products industries worldwide. It offers aluminum and steel beverage containers for producers of beer, carbonated soft drinks, mineral water, fruit juices, energy drinks, and other beverages. The company also provides two-piece and three-piece steel food containers and ends for packaging vegetables, fruit, soups, meat, seafood, nutritional products, pet food, and other products, as well as aerosol cans, paint cans, custom and specialty containers and decorative steel tins. In addition, the company provides various aerospace systems comprising spacecraft, instruments and sensors, radio frequency and microwave technologies, data exploitation solutions, and other aerospace technologies and products, as well as offers technical services and products to government agencies, contractors, and commercial organizations for a range of information warfare, electronic warfare, avionics, intelligence, training, and space systems needs. Ball Corporation was founded in 1880 and is headquartered in Broomfield, Colorado.
5 Good Value Stocks 2014:Crown Cork & Seal Company Inc. (CCK)
Crown Holdings, Inc. engages in the design, manufacture, and sale of packaging products for consumer goods. The company?s products include beverage cans and ends, and other packaging products for various beverage and beer companies; a range of food cans and ends, including two-and three-piece cans in various shapes and sizes for food marketers; and aerosol cans and ends for manufacturers of personal care, food, household, and industrial products. In addition, it produces a range of steel containers for cookies and cakes, tea and coffee, confectionery, giftware, personal care, tobacco, wines, and spirits, as well as for non-processed food products; and offers metal vacuum closures for food market and various specialty containers, as well as steel containers for paints, inks, chemical, automotive, and household products. Further, the company manufactures and sells can-making equipment. It has operations in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. Crown Holdings was founded in 1927 and is headquartered in Philadelphia, Pennsylvania.
5 Good Value Stocks 2014:Carriage Services Inc. (CSV)
Carriage Services, Inc. provides death care services and merchandise in the United States. It operates through two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment offers various services to meet a family?s death care needs, including consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and services, and transportation services. As of December 31, 2010, it operated 147 funeral homes in 25 states. The Cemetery Operations segment provides interment services; the rights to interment in cemetery sites, including grave sites, mausoleum crypts, and niches; and related cemetery merchandise, such as memorials and vaults. This segment operated 33 cemeteries in 12 states. Carriage Services, Inc. also markets funeral and cemetery services and products on a preneed basis. Its preneed funeral or cemetery contracts enable families to establish, in advance, the type of service to be performed, the products to be used, and the cost of such products and services. The company was founded in 1991 and is headquartered in Houston, Texas.
Saba Software (Nasdaq: SABA ) reported earnings on Jan. 5. Here are the numbers you need to know. The 10-second takeaway For the quarter ended Nov. 30 (Q2), Saba Software missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share contracted.
Margins dropped across the board. Revenue details Saba Software chalked up revenue of $30 million. The five analysts polled by S&P Capital IQ expected a top line of $32 million. Sales were 2.8% higher than the prior-year quarter's $29 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details Non-GAAP EPS came in at -$0.10. The five earnings estimates compiled by S&P Capital IQ forecast -$0.11 per share on the same basis. GAAP EPS were -$0.16 for Q2 versus -$0.03 per share for the prior-year quarter.
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 62.1%, 290 basis points worse than the prior-year quarter. Operating margin was -17.6%, 1,530 basis points worse than the prior-year quarter. Net margin was -15.0%, 1,270 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
Looking ahead What does the future hold?
Next quarter's average e! stimate for revenue is $33 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $131 million. The average EPS estimate is -$0.21. Investor Sentiment The stock has a one-star rating (out of five) at Motley Fool CAPS, with 56 members out of 75 rating the stock outperform, and 20 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Saba Software a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Saba Software is buy, with an average price target of $11.88.
I never thought that one of my guilty pleasures would give me investing insight. But something I learned watching a home shopping channel showed me why buying into initial public offerings makes less sense than ever right now.
I'll share that insight later in this article. But first, I want to give some perspective on where the IPO market stands right now. IPOs are back! After a several-year hiatus in which we saw relatively few IPOs of any magnitude, initial public offerings are back in vogue. Facebook's IPO announcement last week was just the latest in a big series of companies going public, and you can expect far more IPOs to come if the stock market continues performing well.
But just because IPOs are getting more numerous doesn't mean they're a smart investment. It used to be that going public was a great accomplishment that marked a pinnacle of success for a company. But now, the IPO process is increasingly about prestige and exclusivity rather than actually putting a legitimate price on a company's value -- and IPO investors are the ones who'll suffer in the long run. What I learned from home shopping When I channel-surf, I often get stuck on a shopping channel, especially when they're selling coin sets. I like coins, but what draws me to the program is how they market them. The announcer always makes it clear that a coin is part of a relatively small set available, that quantities are limited, and that you should therefore buy now before they're all gone. That rarity is seen as a mark of potential price appreciation for the future.
What does that have to do with investing? Companies going public have taken a page from the home shopping channel and borrowed the same marketing strategy -- turning IPOs into limited-edition stock offerings. But there's a catch that can burn you in the long run. Get your red-hot shares now! In particular, companies are offering tiny amounts of their overall stock. Even t! hough Fa cebook's $5 billion offering will dwarf other tech IPOs, it will still represent only 5% of the total shares outstanding. That's become commonplace among tech companies; Groupon (Nasdaq: GRPN ) only offered 6.3% of its outstanding shares in its IPO -- the lowest stake for an IPO in the past decade -- while LinkedIn (NYSE: LNKD ) came in at 8.3%. Those stakes are far less than the 20% to 25% that are more typical for an initial public offering.
Several analysts at the time pointed out that the scarcity value contributed to high valuations -- valuations that for Groupon and LinkedIn soared during the first hours of trading but then quickly led to big price declines for the companies involved. And interestingly, it's not a strategy that every tech company is following. Zynga (Nasdaq: ZNGA ) , for instance, offered nearly 15% of its shares in its IPO -- a move that some blamed for the company's failure to jump on its IPO day.
But now you're starting to see the trend move beyond tech. Casino company Caesars Entertainment is planning a tiny offering of just 1.8 million shares worth about $16 million. That apparently may not include amounts that selling shareholders may add to the offering, but at least as the prospectus reads today, it represents only 1.5% of the total shares outstanding. IPOs shouldn't be collectors' items The problem comes when lock-up agreements expire, allowing investors to sell more shares onto the open market. For instance, Pandora (NYSE: P ) came out of the gate with a roar at its June IPO, with shares trading as high as $26 before settling at an opening-day close of $17.42. But by the time locked-up shares became available six months later, the shares were down to around $10. Battery-tech company! A123 Systems (Nasdaq: AONE ) saw a similar plunge on the day its lock-up period ended.
IPO investors need to realize that companies understand supply and demand, and that low-float offerings are designed to make investors pay too much for shares. Don't let share scarcity scare you into overpaying, or else you'll end up with an investment that you can't just return to the shopping channel.
On the other hand, if you start out with excellent companies, collecting their shares for the long haul is a smart move. Discover the names of three great prospects by accepting my invitation to read The Motley Fool's latest special report, which focuses on stocks that will help you retire rich. The report is absolutely free, but it won't be around forever, so click here and read it today.
Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX) witnessed volume of 1.43 million shares during last trade however it holds an average trading capacity of 593,634.00 shares. IDIX last trade opened at $6.49 reached intraday low of $6.47 and went +9.78% up to close at $6.96. IDIX has a market capitalization $668.13 million and an enterprise value at $577.20 million. Trailing twelve months price to sales ratio of the stock was 57.90. In profitability ratios, operating profit margin in past twelve months appeared at -429.96%.
The company made a return on asset of -53.49% in past twelve months. In the period of trailing 12 months it generated revenue amounted to $11.54 million gaining $0.16 revenue per share. Its year over year, quarterly growth of revenue was 49.10%.
According to preceding quarter balance sheet results, the company had $31.41 million cash in hand making cash per share at 0.33. The total debt was $0.00 billion. Moreover its current ratio according to same quarter results was 2.28 and book value per share was -0.56.
Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 19.95% where the stock current price exhibited up beat from its 50 day moving average price of $5.40 and remained above from its 200 Day Moving Average price of $4.39. IDIX holds 96.00 million outstanding shares with 60.19 million floating shares where insider possessed 46.21% and institutions kept 41.80%.
CLIFTON, NJ — 12/19/2011 (CRWENEWSWIRE) — As part of the Next Generation Jammer (NGJ) program�s technology maturation phase, ITT Exelis [NYSE:XLS] and The Boeing Company [NYSE:BA] have successfully completed wind tunnel testing of the team�s proposed full-scale pod at NASA’s Langley Research Center in Hampton, VA.
The testing, observed by U.S. Navy representatives, demonstrated the power generation and control capability of the pod�s Ram Air Turbine, used to generate electrical power for jamming. The pod, if selected by the Navy, will be deployed aboard the U.S. Navy�s electronic attack EA-18G aircraft.
�Successful wind tunnel testing of an integrated power generation system is a significant risk reduction achievement for the ITT-Boeing NGJ program,� said Bob Ferrante, vice president and general manager of Exelis Electronic Systems� airborne electronic attack business. �The wind tunnel test operations validated our engineering team�s projections, so now we�re preparing for the next step of in-flight testing.�
The Next Generation Jammer program, a complete upgrade to existing technology, will ensure that U.S. forces have dominance of the electronic spectrum, providing a comprehensive capability.
�Increased power generation is critical to NGJ success,� said Jim Skerston, Boeing NGJ chief engineer. �The embedded Ram Air Turbine must generate adequate power to operate the system, the transmitter and other mission electronics.�
“The successful demonstration of the power generation system was the culmination of collaborative design work that leveraged ITT’s high power electronics expertise with Boeing’s system integration capabilities,” said Rick Martin, Boeing̵! 7;s Advanced Military Aircraft chief engineer. “This work takes us one step closer to fielding the next major capability step in the EA-18G electronic attack arsenal.” ITT Exelis Electronic Systems provides innovative integrated solutions for the global defense, intelligence, information assurance and commercial aerospace sectors. As a leader in electronic warfare and communications, we leverage our experience and innovation to ensure the success of our customers� critical missions. Our technology leadership extends into the areas of airborne electronic attack, networked and satellite communications, counter-improvised explosive devices, airspace management, surveillance systems, airborne and shipboard radar, acoustic sensors, advanced composite structures and electronic weapons interfaces. A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world’s largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world�s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide. Follow us on Twitter: @BoeingDefense. About ITT Exelis ITT Exelis is a diversified, top-tier global aerospace, defense and information solutions company with strong positions in enduring and emerging global markets. Exelis is a leader in networked communications, sensing and surveillance, electronic warfare, navigation, air traffic solutions and information systems with growing positions in cybersecurity, composite aerostructures, logistics and technical services. The company has a 50-year legacy of innovation and technology expertise, partnering with customers worldwide to deliver affordable, mission-critical products and services for managing global threats, conflicts and complexities. Hea! dquarter ed in McLean, VA, the company employs about 21,000 people and generated 2010 revenue of $5.9 billion. www.exelisinc.com Source: ITT Exelis Contact:
ITT Exelis, Electronic Systems
John C. Dench
Communications Manager
973-284-4543
john.dench@exelisinc.com
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore driller Seadrill (NYSE: SDRL ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Seadrill's business and see what CAPS investors are saying about the stock right now. Seadrill facts
Headquarters (founded)
Hamilton, Bermuda (1972)
Market Cap
$16.0 billion
Industry
Oil and gas drilling
Trailing-12-Month Revenue
$4.3 billion
Management
Chairman/President John Fredriksen CEO Alf Thorkildsen
Return on Equity (average, past 3 years)
21.7%
Cash/Debt
$496.0 million / $9.9 billion
Dividend Yield
8.9%
Competitors
EnscoNobleTransocean
Source: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 99% of the 549 members who have rated Seadrill believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, jdwelch62, tapped Seadrill as an attractive income opportunity:
The world's thirst for oil doesn't show any signs of diminishing. We're going to need to drill in deeper waters to find the next big reserves. SDRL is positioned to provide the means of doing so with their rigs. I've been loading up on high yielding stocks that look like they can sustain their dividend payouts for th! e long h aul, and just added SDRL to my portfolio.
What do you think about Seadrill, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started! Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
SAN FRANCISCO (MarketWatch) � Banking is back in Latin America. While most of the rest of the world is still recovering from the global financial crisis of 2008, Latin American banks have recovered.
Five factors have fueled that growth: a growing middle class, access to banks for the previously �unbanked� population, growth in deposits, a broader and expanding loan portfolio, and greater efficiency by Latin American banks.
Brazilian banks have led the surge, occupying the top five spots on The Banker�s list of the best Latin American banks. They�ve done this mainly by focusing on the growth of the middle class. The middle class in Latin America has grown to 51% of the population in the major economies in 2011, from just 41% in 2001. That growth in the middle class has pushed per capita income to $11,900 from $7,600 a decade ago.
It has also increased the demand for consumer loans: be they mortgages, car loans, or small business or industry loans.
Itau Unibanco Holdings SA ITUB , has focused on reducing costs and streamlining efficiency since the two banks merged in November 2008 to form Brazil�s largest bank. �But I can guarantee that we will not reduce our investment plans as part of that effort,� CEO Roberto Setubal said. Itau Unibanco has been rapidly expanding both within Brazil and across Latin America, capitalizing on success in consumer banking.
Regional growth
Itau Unibanco is just one of several banks with eyes on the rest of Latin America. �The flow of investments among the region�s various countries is increasing strongly,� said Andre Esteves, BancoBTG Pactual�s chief executive, in a statement. �Capita! l market s are developing at a fast pace in Colombia and Peru. Even the more mature markets, such as Brazil and Chile, continue to have high growth rates. We are very optimistic about the perspectives for Latin America.�
With money from Abu Dhabi, Singapore and China, BTG Pactual has grown to become one of Brazil�s top-10 banks. It recently expanded into Chile, Colombia and Peru and has reportedly been meeting with investment banks to launch its own shares over the next few months.
Recent analyst reports have suggested the major banks in Latin America, such as Itau Unibanco and BancoBradesco BBD , are losing market share to smaller, regional banks. We don�t see this as a reason not to invest in the larger banks. While they may end up losing share nationally, we believe the bigger banks will gain from their cross-border initiatives and from the rapid overall growth of banking in Latin America. Even if they did lose market share, that doesn�t mean their growth will slow. Like elsewhere, being bigger is a plus in Latin America�s banking industry.
There has been some backlash in Latin America as a result of the global financial crisis. Latin American countries have been more apt to approve regulations to protect consumers against fraud since 2008, and these same rules have not just protected consumers, but also shielded the local banking industry from foreign predators.
Even without better regulations, we expect you will start to see more intra-Latin America mergers and fewer acquisitions from developed countries. Already Latin American banks have pushed foreign banks from the top positions, in businesses including retail banking and investment banking. Last year, Itau Unibanco pushed Citigroup C �and Credit Suisse Group CS �CH:CSGN �from their top positions in investment banking.
But retail banking remains the key that most banks are after. In a survey for the Economist Intelligence Unit, most executives (27%) expect the greatest increase in competition in retail banking, compared with 17% in investment banking, 15% in corporate banking and 12% in consumer finance and cards.
The one country in Latin America where foreign banks have held onto their positions, and in some cases increased, is Mexico. Indeed, Spain�s Banco Santander ES:SAN �has amplified its penetration in Mexico, while also actively playing a large role in banking in Argentina, Uruguay, Chile and, to a lesser extent, in Brazil. Citibank, with its control of Banamex, has also benefited from its Mexico operations by penetrating retail banking and issuing more than a million credit cards per year.
Unbanked
And that brings us back to one of the strongest reasons to invest in Latin American banks: reaching the unbanked population. Half of the population in Latin America still does not use banks. In Brazil, 58% still use cash at supermarkets, with just 15% of purchases coming from credit cards and another 15% from debit cards.
A study by GrupoBursatilMexicano shows the potential of Latin American countries in bank loans to the private sector: If Chile is the model with close to 70% of private sector loans as a percentage of GDP, Brazil is still far behind at 50%, and Colombia (30% of! GDP) an d Mexico (less than 20%) are even further behind.
Latin Americans have devised their own ways to bring the unbanked into the mainstream. Even if it�s using a prepaid card for purchases, or having bank branches or ATMs in supermarkets, the growth of these will only pick up as the emerging middle class expands.
In Brazil, as in many South American countries, ATMs are often not operated by banks but by third parties. These kiosks are often much more prominent than the ATMs of banks. The largest of these is TecBan, which is planning to expand its network of Banco24Horas ATMs to 13,000 by the end of 2012, from 11,000 currently. TecBan plans to install ATMs at gas stations, supermarkets, shopping centers, drug stores, and subway, bus and rail stations. The company generates revenue by charging financial institutions a fixed price per transaction.
In summary, we think the banking sector in Latin America is going to benefit long-term from the growth of the middle class, and from greater access to the unbanked population, especially as new technologies gain adoption such as mobile banking and innovations in credit cards.
TD Ameritrade released a survey Wednesday on the differences in financial education and attitudes between generations.
The report noted that Gen Y is "collaborative" when it comes to finding financial information; 60% will ask their friends, relatives and colleagues for information, compared with 46% of Gen X, 43% of boomers and just 31% of matures. It should be no surprise then that one-third of Gen Y respondents turn to social media for news about the economy and financial markets.
The survey found 61% of respondents use television and radio talk shows for information on economic and financial issues. Over 50% use daily newspapers. People born between 1930 and 1945, or matures, were most likely to use daily newspapers, while those born between 1965 and 1989, which includes Gen X and Gen Y, were most likely to use news websites. Almost two-thirds of Gen Y respondents say they use news websites, and 52% of Gen X respondents do.
Boomers are most likely to use professional advisors to get news, but older generations are similarly dependent on advisors. Thirty-eight percent of boomers, 37% of matures and 32% of Gen X use their advisor to get news about the economy and financial markets, but just 21% of Gen Y does.
There's a gap, however, in where respondents go for information and how much they trust those sources. While 38% of boomers go to their advisor for information, just 22% reported that they trust their advisor. Gen X didn't indicate trust in any one source; rather, 17% noted traditional media, investment advisors and news-oriented websites each as trustworthy sources.
While 21% of Gen Y respondents said they trust their friends or talk show hosts, just 10% say they trust professional advisors as a source of news.
Most respondents (81%) say they were exposed to money management principles before they turned 20, and almost 80% of respondents feel this was appropriate. Younger generations are learning to save and spend wisely at younger ages. Forty-one percent of matures say they learned financial principles in their teens, compared with 69% of Gen Y.
Parents were unsurprisingly the most frequently cited source of financial education, but 74% of respondents said they felt schools should take more responsibility. Compared with Gen X and Gen Y, matures are twice as likely to think that employers should play a role in financial education.
Although most respondents learned the basics early, 57% said they didn't learn about investing in the stock market until their 20s or 30s. Among respondents who own stocks, bonds, mutual funds or exchange-traded funds, 54% say they have "just average knowledge" of the stock market.
Gen Y and matures agreed that managing their income and living within their means was their top financial priority, though Gen Y was slightly more confident about their ability to do so (47% compared with 44% of matures). Boomers just want to live comfortably (34%), but only 26% are confident in their ability to do that. Gen X is focused on reducing personal debt - one-quarter said this was their biggest priority – and are confident they can do so. Gen X is also the most likely to say they regret not saving enough for the future (62%), although all generations agreed this was their biggest regret.
Older generations agreed, though, that being debt-free was their definition of financial success, with roughly one-third of each group citing no debt as a mark of success. Among Gen Y respondents, 36% said being able to put money aside each month was how they defined financial success.
Nearly 60% of matures say they have already achieved financial success. Younger generations are far less likely to agree. Just 18% of boomers say they've achieved success, compared with 8% of Gen X and 9% of Gen Y. While Gen Y is ever so slightly more apt than Gen X to say they've achieved financial success, they're also most likely to say they are on their way to success. Sixty-four percent of Gen Y respondents say they are on their way, compared with 56% of Gen X and 48% of boomers. Sadly, 20% of boomers and Gen X say that while they're working on it, they may never be financially successful. At 13%, Gen X respondents are most likely to say it's unlikely that they'll achieve financial success, followed closely by boomers at 12%.
Matures who are struggling to achieve financial success attribute their difficulties to costs associated with health care, while the younger generations agree their biggest obstacle is expenses that are rising faster than their income.
Eighty-five percent of respondents reported that it requires more self-discipline and knowledge to manage personal finances today than it used to, according to the report. Still, 93% say they are confident about their ability to manage their finances, although 60% said they would be more comfortable if they knew more about investing. Of the 55% of respondents who called themselves "investors," Gen X and Gen Y were more likely to say managing their personal budget was more difficult than managing their investment portfolio. Boomers were evenly split – 47% said their personal budget was more difficult to manage, and 47% said their investment portfolio was more challenging.
The survey was conducted in late 2010 by Maritz Inc. among over 950 adults between 21 and 80.
Sometimes a subtitle tells you quite a lot about a book. The one for Peter Schweizer's Throw Them All Out reads: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison.
That's a powerful statement, and perhaps unsurprisingly, Schweizer's book has had an enormous impact on the debate over Congressional insider trading. In fact, one could argue that Schweizer's interview with CBS's 60 Minutes was one of the biggest catalysts in bringing this issue to the attention of the American public.
Our very own Chris Hill was able to sit down with Schweizer for an interview recently. An edited audio recording of the interview as well as a transcript are included below.
Chris Hill: Welcome back to Motley Fool Money. I'm Chris Hill. Insider trading is against the law, unless apparently you are a member of the United States Congress. Then it's completely legal. Peter Schweizer is a fellow at Stanford's Hoover Institution and he's the author of the new best-seller Throw Them All Out: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison. Peter, welcome to Motley Fool Money. Peter Schweizer: Hey, it's great to be on with you. Thanks for having me. Hill: There is a lot to get to here, but I want to start at the beginning of this project for you. How did you come up with the idea for this book? Schweizer: Well, you know, somebody sent me an article that appeared in an academic journal a few years ago. It's a journal called the Journal of Quantitative Economics. If you have trouble sleeping at night, this might be a good place to go.
But this study was actually very interesting, because thes! e schola rs looked at 6,000 stock trades by U.S. senators, and what they found, shockingly, was that while the average American tends to underperform the market averages, the average corporate executive beats the market by 5% a year and the average hedge fund beats the market by 7 to 8% a year. This study found that U.S. senators beat the market by 12% a year... Hill: Wow! Schweizer: Yeah. And so, it left me wondering, you know: "OK, gee. Either these guys are really, really smart geniuses that I don't give them enough credit for, or something else is going on." And it really only took me a split second to say, "You know, I think something else is going on." Hill: And again, there's so much research that you and your team did for this book. How did you go about connecting the dots? Schweizer: Well, you know, it was very difficult. What we really wanted to do was show and sort of overlay the financial transactions of members of Congress. They're required to disclose them once a year. They're required to show what their holdings are and also the dates of transactions, but they only give the amounts in ranges, so you don't know exactly how much money they're trading.
But we took that material, and then we looked at their legislative activity or things that were going on where they had access to special information. Like for example, during the 2008 financial crisis, they had a lot of closed-door meetings with the Fed chairman and Treasury secretary. And once we overlaid those, we found, astonishingly, that people who served on financial committees were aggressively trading bank stocks. Those that were involved in the health-care bill, the health-care reform debate in 2009 were aggressively buying and selling all sorts of health care-related stocks, and it was kind of stunning. So, once we had this overlay, then we started to track to see what sort of investment decisions they were making and how they did in terms of tho! se inves tments. Hill: Why are we just hearing about this now? I mean, if this has been going on for this long... Schweizer: It's a good question. I think for a couple of reasons. No. 1, it takes a lot of work, because they don't file their financial disclosures even electronically. You'd think this is the 21st century, but they fill them out on paper, and they basically are put somewhere by the ethics committees. So you have to really go and find them and get them.
The second thing is that, frankly, I think journalists in Washington, D.C. that cover Congress are in a bit of a quandary. The example that I would give is imagine that you are the sports reporter covering the baseball team, and you write a story that says the owner is a drunk and the players are corrupt. Guess what? You're not going to get invited into the locker room anymore. And I think that a lot of reporters in Washington face that dilemma. If they start reporting these kinds of stories, they're not going to get leaks. They're not going to get exclusive interviews. So, I think the media has frankly, in Washington, been much more of a lapdog than a watchdog because they don't want to lose their access. Hill: You're listening to Motley Fool Money. Talking with Peter Schweizer, author of the new best-seller Throw Them All Out: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison. There's a lot there in the subtitle. Let's start with the insider stock tips. Could you elaborate on some of the ways that politicians... let's just take John Kerry, for example. He's one of the people that you cite in the book. How is John Kerry -- who is already a wealthy guy to begin with -- how is he doing it? Schweizer: Well, it's a great question. What's so interesting about insider trading -- whether it's in the private sector or in Congress -- is that whether you're rich or poor, pe! ople are tempted to do it. In the case of John Kerry, here's a guy that was very much involved in writing and structuring two big pieces of health-care legislation. One was the 2003 benefits for Medicare to add a prescription drug benefit, which basically was a huge boon to the pharmaceutical industry. Kerry, at the time he was helping that bill go through the Senate and craft it, the investment funds that he and his wife owned were actually aggressively buying Big Pharma stock, and they had a capital gains of about $2 million on those Big Pharma stocks.
And again in 2009, during the debate over health-care reform -- or ObamaCare, whatever you want to call it -- the same thing applied. He was dumping companies that were going to lose in that reform and he was buying companies like generic-drug manufacturers who were going to be winners.
You know, this is perfectly legal. It's deemed ethical. But were you to do this while you were working for a company, you would face either fraud charges or insider trading charges, because you're just simply not allowed to mix your investment decisions with private information or knowledge that you have of what's going to happen to your company. Hill: Is that ultimately what this comes down to, is the unfairness of it? Because I could see someone making the argument like, "Yeah, this is going on, but this is a victimless crime. This isn't actually hurting anyone. It's advantageous to members of Congress, but it's not really hurting anyone." Schweizer: Well, no, I would disagree with you slightly. I mean, you can argue how much the hurt really is, but every time that you are a member of Congress who is buying a stock or selling a stock, there's somebody on the other end of that transaction that is not privy to the information you have. So to pick an example, during the 2008 financial crisis, on the evening of Sept. 18, there was a closed-door briefing with the Treasury secretary and with the Fed chairman, Ben Bernanke. And! as Paul son recounts in his memoirs, this was an apocalyptic briefing. They said that the market's going to go down at least 20%. We're looking at a major economic crisis.
Well, people that were in that meeting -- members of Congress -- the next day lots of them went out and dumped their shares of stock. And the Dow at that time was over 11,000, and within three weeks, it would be down to 8000. So, they were able to avoid those trades, and when you're buying and selling stock, there's somebody on the other side of that transaction. So, I don't think it's totally a victimless crime. Hill: You're listening to Motley Fool Money. Talking with Peter Schweizer, author of the new book Throw Them All Out. One of the things that is clear from your book, Peter, is that for people who are seeking bipartisanship in Washington, D.C., they can certainly find it when it comes to insider trading because you mentioned Senator Kerry. John Boehner, the Speaker of the House -- he's in your book for buying shares of different public companies as he's essentially killing the public option on health care. Schweizer: Yeah. I mean, this is not something that is a partisan issue. I mean, the bottom line is human nature is human nature and politicians, to varying degrees, are looking out for their own financial interests. So yes, John Boehner was doing it. Another Republican that I think was particularly egregious is Spencer Bachus, who was the ranking member of the House Financial Services Committee. He was at that apocalyptic briefing that I just mentioned, whereby they were told the market was going to go down significantly.
Literally, the next day he went out and bought something called Proshares Ultra-Short QQQ, which is a leveraged option buy -- a leverage betting that the market's going to go down -- and he literally doubled his money in a matter of a couple of days based on that information. And he wasn't done, by the way. He did 40 options trades ! during t he financial crisis, and made tens of thousands of dollars doing so. So, yeah -- this swings to both parties, and I think it's one of those reasons that we haven't heard a lot about it, because both sides have a motive and an incentive to keep it quiet. Hill: Well, and just to pick one other example, also in the financial space but just sort of outside the big banks on Wall Street, you had Nancy Pelosi who was the Speaker of the House. At the Motley Fool, we're constantly cautioning people to stay clear of IPOs, because you want to see how a public company performs as a public company for maybe six, twelve months. But in the case of Visa (NYSE: V ) , Nancy Pelosi got in on the IPO and it really seemed to work out well for her. Schweizer: Yeah, I think you're right to be cautious about IPOs. But if you have particularly IPOs that are in demand like Visa, which was a very profitable company, everybody wanted its stock and they simply were not able to because there was so much demand. The Pelosis, however, while she was Speaker of the House, were given access to 5,000 IPO shares. They were able to buy it at $44 a share. The day it went public, the next day, it was up to $64 a share, and within a matter of a couple of months, it had doubled. It was trading at over $90 a share. So, they did very well. They made several hundred thousands of dollars on that transaction.
And here's the bottom line: When they took that from Visa, there were two pieces of legislation that Visa was very concerned about that had been introduced in the House that would deal with merchant fees, which is where Visa makes its money. Those bills came out of committees with bipartisan support, but as Speaker of the House, she just simply did not allow them to come to the House floor for even a vote. So Visa basically had that legislation delayed for not one year, but two years. The Pelosis did well, Visa got what it wanted, and I t! hink it raises real concerns about conflict of interest. Hill: You're listening to Motley Fool Money. Talking with Peter Schweizer, author of the book Throw Them All Out: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison. When it comes to trading stocks on privileged information -- because at the Motley Fool we're very focused on stocks -- who are the most egregious members of Congress? I know we've talked about a few. But who are the most egregious? And please tell me that, on the flip side, there are some shining lights, some members of Congress who are actually being not just above the board legally -- because as you pointed out, this is all legal -- but they've really gone beyond the call in terms of being highly ethical. Schweizer: No, I think that's a great point. I'll mention one liberal Democrat and one conservative Republican that if you look at their financial investments, you look at what they do, are very clean on this out of principle. The liberal Democrat I would mention would be Barney Frank, who is the once-chairman of the House Financial Services Committee. He's from Massachusetts. He's retiring. He does not invest in stocks as a matter of principle. He puts all of his money into municipal bonds.
On the Republican side, you could take a conservative like Michele Bachmann who basically does the same thing. She's from Minnesota. Had an ill-fated presidential run here. She's the political opposite of Barney Frank, but she does the same thing. And there are others, and I think we need to applaud them.
I would look at the stock traders and say that John Kerry and his wife have a lot of assets. They do a lot of stock transactions that seem to be patterned on legislative activity, so he would be somebody I would pick on the Democratic side. Spencer Bachus, who I've mentioned, I would pick on the Republican side. He is an aggressive trader in options.
I'm su re you've talked at the Motley Fool about how that is a very high-risk investment strategy. Most people don't make money. They lose money doing that. But Bachus has done this for years, and he does it in trading stock options in companies like United Airlines, for example, or Sony Corporation (NYSE: SNE ) or General Electric (NYSE: GE ) . And he does this when he's privy to all sorts of information. And although most options traders lose money, he consistently makes a lot of money. In fact, I think it was in 2007, he made $160,000 which was the equivalent of his Congressional salary. Hill: Maybe these guys should open up a side business where they can basically be brokers... Schweizer: [Laughing] Hill: You know, if someone's got that kind of track record, if they're getting those kind of returns, I would think seriously about investing my money with them. Schweizer: Well, what I would do is I think Motley Fool needs to set up a Congressional Index Fund. If we could get these guys to do instant disclosure of their financial transactions, and Motley Fool were to just track their investment choices, we would all be beating the market by 12% a year. So I think maybe that's the future direction we need to go. Hill: We've talked a lot about the problems as you've laid them out in your book. Let's think in terms of solutions. There is a bill before Congress right now -- the STOCK Act. It does have wide bipartisan support in the House. I think it has over 240 co-sponsors. This would effectively kill the type of insider trading that we're talking about. I'm curious. What do you think about that legislation and the chances that it has in the new year to pass? Schweizer: I think the STOCK Act has a pretty good chance of passing and I think it's a goo! d step f orward, but I don't think it goes far enough, simply because what the law does is it makes congressional insider trading illegal. The question is enforcement. Is the Securities and Exchange Commission really going to go after, say, a powerful congressman on this issue? And past experience is not good. I mean, when the FBI was investigating William Jefferson, the congressman who famously had the money in his freezer... Hill: In his freezer, yeah... Schweizer: Yeah, when they got a search warrant to search his congressional office, both political parties said that this was a breach of congressional privilege, and they threatened to cut the FBI budget. So I don't think the SEC is going to enforce it. I think that we should pass the bill out of principle. I think we should also pass something that's been introduced called the RESTRICT Act. It's been introduced by Congressman Duffy and has co-sponsors from both political parties.
Duffy's, I think, is very good in that he would basically give members of Congress an option. No. 1, you need to put your assets in a blind trust and one that's certified and recognized as a blind trust. Or, if you don't want to do that, you have to disclose all of your transactions within three business days. So, in other words, if there's a health-care bill on Capitol Hill, we could see on a website that this congressman was buying or selling Big Pharma stock. And I think transparency would be a huge step forward. So, I think we need both of these bills to be passed. Hill: You're listening to Motley Fool Money. Talking with Peter Schweizer. His new book is Throw Them All Out. What surprised you the most when you were working on this book? Schweizer: What surprised me the most is that wealthy members of Congress did this� -- this just wasn't the guy who was kind of scraping by and trying to make money -- and how large some of the amounts were. During the health-care debate, for! example , you had a congressman from Colorado, Jared Polis, who's very wealthy, making multimillion-dollar bets on health company businesses that were going to benefit from health-care reform which he was supporting. So, the sheer amounts, in some cases, and the frequency of these transactions by members of Congress really stunned me. Hill: What has the response on Capitol Hill been to your book? Schweizer: Oh, you know, it's been mixed. What I found is that in Washington, D.C., the response has been to sort of attack me or to say it's not that big an issue. The response around the country has been the opposite. It's been on the best-seller list, now, for six weeks. People are very angry and frustrated about it. The media interest has been keen. And people from both political parties have really adopted the mantra that I've said, which is even if it's your guy that's doing this, we have to have a zero-tolerance policy.
For example, I'm a conservative Republican. If a conservative Republican is doing this, I need to vote against him and help throw him out of office, because they use the fact that they're with us on the issues to justify themselves staying in power and enriching themselves. And I think we need to stop, or otherwise this problem is just going to get worse and continue. Hill: The book is Throw Them All Out: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison. Very thought-provoking stuff. A lot of great ideas. Peter, thanks so much for being here. Schweizer: Hey, thanks for having me.
Eastman Kodak (EK) stock has been a value trap for years as increased sales of low margin digital photo products have struggled to make up the cash flow lost from declining traditional film sales. The next step in Kodak’s digital reinvention is aimed directly at Hewlett Packard (HPQ) and Lexmark (LXK). The company has unveiled its own line of inkjet printers complete with their own ink cartridges.
How does Kodak think it can compete with the established big guys in the printer market? By changing the rules of the game. For years, the hardware companies sacrificed margins on their printing hardware in order to secure the bulk of their profits from overpriced ink cartridges. Think of it as the Gillette business model. Get everyone using your razors and make your money selling replacement blades.
Kodak is going to try and take a slightly different approach, since low-priced ink recycling stores have popped up everywhere, aimed at customers frustrated by paying $30 for a plastic container of ink. Kodak will price their printers slightly above average, but simultaneously is slashing the prices of their replacement ink. Black cartridges will fetch $10, with color versions costing $15 apiece.
Will this strategy work? Well, it’s hard to say. Ink cartridge prices will most likely fall even further but that trend has already been in motion ever since ink recycling retailers like Cartridge World have gone ahead with rapid nationwide expansion plans. As a result, it is definitely bad news for HP and Lexmark, who will have to either lower prices to maintain market share, or give up some share to preserve profit margins.
But is this lightning in a bottle for Kodak? I’m not convinced yet, until I see what kind of margins the company can really get from thi! s strate gy. Hardware prices are always under pressure, so how long will Kodak be able to price their printers at the high end of the market, and how long will those prices hold? Will the total margin on a $250 printer and a $10 cartridge for a new entrant into the market be meaningfully higher than that of a $200 printer and a $30 cartridge from a company like HP that already possesses a low-cost production process?
It is surely a bold move from Kodak, and one they needed to make to reinvigorate their company and really take aim at a large consumer complaint; the high price of ink. However, even if they can take a nice chunk of the home printing market, it remains to be seen how much of that ink will really flow through to their bottom line. And that is really what will be important for Kodak investors going forward. Full Disclosure: No position in EK, HPQ, or LXK at time of writing http://www.peridotcapitalist.com/
Barnes & Noble, Inc. (NYSE:BKS) is a bookseller. The Company is a content, commerce and technology company that provides customers access to books, magazines, newspapers and other content across its multi-channel distribution platform. Barnes & Noble, Inc witnessed volume of 6.85 million shares during last trade however it holds an average trading capacity of 1.84 million shares. BKS last trade opened at $11.21 reached intraday low of $10.86 and went -0.44% down to close at $11.19. BKS has intra-day market capitalization $649.74 million and an enterprise value at $1.05 billion. Trailing twelve months price to sales ratio of the stock was 0.09 while price to book ratio in most recent quarter was 0.85. In profitability ratios, net profit margin in past twelve months appeared at -0.89% whereas operating profit margin for the same period at -0.65%.
The company made a return on asset of -0.70% in past twelve months and return on equity of -6.99% for similar period. In the period of trailing 12 months it generated revenue amounted to $7.01 billion gaining $122.81 revenue per share. Its year over year, quarterly growth of revenue was -0.60%.
According to preceding quarter balance sheet results, the company had $23.63 million cash in hand making cash per share at 0.41. The total of $424.90 million debt was there putting a total debt to equity ratio 44.62. Moreover its current ratio according to same quarter results was 1.04 and book value per share was 13.27.
Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 0.63% where the stock current price exhibited up beat from its 50 day moving average price $15.31 and remained above from its 200 Day Moving Average price $13.79. BKS holds 58.06 million outstanding shares with 27.12 million floating shares where insider possessed 50.38% and institutions kept 43.40%.
So far this year, Bank of America (NYSE: BAC) shares have plummeted nearly 30%, making it one of the worst-performing stocks on the Dow Jones Industrial Average.
While many claim the stock will continue to drop, I see a more bullish picture ahead.
In fact, I agree with my colleague, Jeff Reeves, who in his June 16 article,Why Bank of America (or Any Financial Stock) May Be Your Best Buy Now, suggested several reasons why BAC may be a potential buy at current levels.
In addition to Jeff�s insights, here are six more reasons why buying shares of America�s second largest bank �could put money �BAC� in your pockets: 1) Shedding of noncore assets
As a growth strategy, Bank of America aggressively pursued a number of mergers and acquisitions in years past.
Most notably, in 2008, the bank purchased mortgage lender Countrywide Financial for $4.1 billion. The deal was intended to expand BofA�s empire. But, in reality, it devastated the bank, making it incredibly vulnerable during the height of the housing bubble.
Coming to terms with this big mistake, BofA implemented a strategy to sell noncore assets, in order to increase capital, over time. On Monday, BofA announcedplans to sell a portion of its holdings in China Construction Bank. BofA also recently spun off its last largest private equity firm, known now as North Cove Partners. And it recently sold its Balboa Insurance unit.
Last year, BofA sold 46.1 million shares of its stake in BlackRock (NYSE: BLK) and raised additional capital by completing the $1.9 billion sale of First Republic Bank.
BofA will likely to continue to strategically shed noncore assets in the years to come to improve capital and help strength its balance sheet, ultimately bringing better value to shareholders. 2) Slowly improving housing situat! ion Through its Countrywide purchase � and the huge number of home foreclosures that followed � BofA unintentionally became one of the largest private home owners in the U.S. As a result, the bank is highly exposed to fluctuations in housing market. While we are certainly not out of the woods yet, there are subtle signs the housing market may be slowly improving. This week, the Federal Housing Finance Agency reported that home prices increased 0.8% in April, their first rise in over a year. In addition, May existing home sales fell less than expected. With BofA�s heavy exposure to the housing market, a lift in the housing sector could equally translate to a lift in Bank of America shares. 3) Bank of America is hiring A growing company often needs to hire new employees. Available jobs, therefore, can be a way to casually gauge a company�s financial health. This week, BofA announced plans to hire over 500 so-called Financial Solution Advisors.
With these hirings, the bank�s intention is to enhance relationships with �preferred customers� who have BofA assets worth between $50,000-$250,000. The move should improve customer service and may even attract new clients to the bank, potentially bringing in new capital. 4) Bullish technicals You need not be an astute technical analyst to see that BAC�s chart has been in a steady downtrend all year. �As you can see on the chart below, shares toppled from a high of $15.29 in early January to a low of $10.40 in mid-June. Coincident with this tumble, the 50-day moving average bearishly crossed below the sinking 200-day moving average, creating a bearish formation known as a �death cross�! . However, BAC may have hit bottom. The stock appears to have found support around the $10.40 level. And over the past couple weeks, it has lifted off this support level. It now appears the stock is attempting to break the downtrend line — which acts as an important resistance point. If BAC can challenge this downtrend line, it will shatter the bearish descending-triangle pattern. With enough momentum, the stock could feasibly climb back to its January $15.29 high. At the stock�s current price, traders could potentially see gains upward of 40%. 5) Solid fundamentals The fundamentals also indicate moderate growth potential ahead. Although analysts project 2011 revenue will drop 4% to $105.8 billion from $110.2 billion last year, the situation should slowly improve. By 2012, the 23 analysts following the company expect revenue will increase 5.1% to $111.2 billion. The earnings outlook is also strong. Analysts expect 2011 earnings per share to increase to $1.06 from 86 cents last year. By 2012, earnings are projected to rise to $1.70 a share. 6) Fair valuation At current levels, the stock is also fairly valued, based on its forward price-to-earnings (P/E) ratio of around 6.3 and price-to-book (P/B) ratio of about 0.5. In comparison, competing banks Citigroup (NYSE: C) and JPMorgan Chase (NYSE: JPM) have higher P/E ratios of around 7.4 and 7.2, respectively. They also have higher respective P/B ratios of about 0.7 and 0.9. Based on these metrics, BAC is slightly more attractive than its peers. Given the six factors outlined above, BAC may be a buy at current levels. If the stock can break the downtrend line and the ensuing descending triangle pattern, the technicals suggest BAC could, well, give you a run for your money.
J.M. Smucker (NYSE: SJM ) reported earnings on Feb. 16. Here are the numbers you need to know. The 10-second takeaway For the quarter ended Jan. 31 (Q3), J.M. Smucker missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins shrank across the board. Revenue details J.M. Smucker tallied revenue of $1.47 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $1.54 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.31 billion.
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 $1.22. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.42 per share on the same basis. GAAP EPS of $1.03 for Q3 were 7.2% lower than the prior-year quarter's $1.11 per share.
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 32.5%, 490 basis points worse than the prior-year quarter. Operating margin was 15.8%, 390 basis points worse than the prior-year quarter. Net margin was 8.0%, 210 basis points worse than the prior-year quarter. Looking ahead Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue i! s $5.52 billion. The average EPS estimate is $4.68. Investor sentiment The stock has a four-star rating (out of five) at Motley Fool CAPS, with 459 members out of 484 rating the stock outperform, and 25 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give J.M. Smucker a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J.M. Smucker is outperform, with an average price target of $81.36.
Can your portfolio provide you with enough income to last through retirement? You'll need more than J.M. Smucker. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
NEW YORK (CNNMoney) -- After seeing enrollment decline for the first time in a decade, the University of Charleston, in West Virginia, slashed tuition by 22% for the upcoming school year hoping to entice more students.
The school, which currently has 1,006 undergraduate students, employed a series of initiatives to afford the cut, including reducing its financial aid, sharing professors with colleges in the region and graduating students early.As a result, tuition for new students will be $19,500 per year beginning in August -- down from the current rate of $25,000.
In an interview with CNNMoney, the university's president, Dr. Edwin Welch, explains why he took this unusual step and what the impact has been so far: Why did you decide to cut tuition?
Last year, there were 30 students or so who had enrolled at the university but changed their minds after August 1. They went to different places -- we lost some students who transferred to community colleges. This was a new event for us.
We realized parents and families were now considering the overall price, not just the discount [financial aid and scholarships] they would be able to get. As universities we tend to market education the same way Joseph A. Banks advertises clothes, thinking the advertised price is not that important but the discounts are the most important part. But that's what is driving middle-class students away. So it seemed we needed to take a fresh look. How did you decide on a 22% cut?
We had thought about cutting tuition by 20% at first, but the board said the total price should be under $20,000, so we cut it a little further and agreed on a ceiling price of $19,500. How are you able to afford to cut tuition by 22%?
We've undertaken about half a dozen initiatives to reduce what it costs to run the institution.
We have a faculty-sharing program, which is a new initiative for this upcoming year. We'll share professors between five school! s to tea ch certain subjects. We also have a fast-track program, and 35% of the students who come to our school and stay earn a degree in three years instead of four or enroll in graduate school. That means students can replace a year of tuition with a year of income.
We have not lowered salaries. Has the school reduced the total amount of financial aid it is offering to students?
We reduced how much aid we're giving overall. We're guaranteeing no one will pay more than $19,500.
Numbers won't be complete until the end of the year, but if we had 1,000 students and reduced tuition by $5,500 per student, that's $5.5 million that's not going to be awarded in financial aid. But on the other hand, all of our students get a discount anyway because we reduced the overall price.
We still have financial aid available -- a significant amount. This year we probably gave $15 million in financial assistance. Next year, we'll give maybe $10 million. What has been the impact of the decision to lower tuition so far? Have you seen applications increase?
So far, the reaction from parents and students has been very positive. We expected a spike in applications, and applications are up nicely in our primary markets -- West Virginia, Virginia, Maryland, Pennsylvania, and Kentucky. Total applications are ahead of our two-year average but slightly behind last year.
More importantly, our deposits are up 40%. This suggests that students and families who look at us are finding the new tuition structure attractive and are depositing at a higher rate than previously. As part of its 5-year vision, your university hopes to increase enrollment -- which currently stands at a total of 1,372 undergraduate and graduate students -- by 79%. Do you think this is a realistic goal?
As part of our vision, we want to reach total enrollment of 2,500 students within the next five years. We are starting a physician's assistant program which should bring some additional ! students , and we would like to add another graduate program. We hope that the process of lowering tuition helps us in the undergraduate area. Have you seen enrollment decline in recent years?
We've had 60% more enrollment over the past 10 years, and we've had 10 years of increases. Then we had a decrease in new students this year [the 2011-2012 academic year]. We were down 70 students. So our commitment was to make sure this was the one exception to the trend. What if the tuition cut does not boost enrollment? What's next?
This all revolves around net income. We can meet our budget targets either by increasing enrollment, increasing net revenue per student, or a combination of both. If neither of those three occur, then we will need to reduce expenses or expand other revenue sources. Do you foresee your decision to cut tuition sparking a price war with other colleges?
I was at a national meeting with college presidents this January talking about tuition reduction, and a number of presidents talked to me in the meeting and outside of the meeting, saying they are considering lowering tuition.
I would hope schools would start to get their advertised price more in line with what people actually have to pay, but presidents are nervous, boards are nervous. It takes a while because it is such a bold and daring thing to do. Most schools are going to be afraid to do it. Sewanee, University of the South, did it last year and their enrollment went up, and we followed what they did. Which colleges do you expect will be the first to follow your lead and lower tuition?
Schools like us who are second-tier educational institutions. Not Harvard, not the University of Pennsylvania. Schools that already have high rates of financial aid and are willing to market the price over the discount and change the way they operate. Correction: An earlier version of this story incorrectly stated the school is hoping to add 2,500 students over five ye! ars. It' s trying to reach a total enrollment of 2,500 students in five years.
Chuck Ford tells his wife often how much he loves her. He likes to hold hands when they walk, cuddle when they watch TV and hug—a lot.
His wife has learned to like it. "I don't like to sit on the couch and cuddle for two hours," says Judy Ford, a 66-year-old retired high-school counselor from Carmel, Ind.
Robert Neubecker
Does your partner expect you to pick up subtle cues about whether he or she is upset? A partner who isn't great at communicating their feelings directly may hope you'll be quick to notice when they are upset and make things right. This tendency points to an Anxious attachment style.
Of all the ways that opposites attract, the thorniest may be when emotionally giving types pair up with types who are emotionally reserved.
Givers love to show affection: Hugs, kisses, flowers, skywriting—there's no such thing as too much. They crave receiving displays of love, as well.
Reserved types certainly may love deeply, but they are uncomfortable showing it. Often, they rely on their partner to initiate a display of affection. Sometimes, they don't even enjoy receiving expressions of love.
Initially, emotionally giving types are attracted to emotionally reserved types, and vice versa, because they are so different, experts say. Giving people often find reserved people intriguing; they like to elicit affection from someone who doesn't express it easily. And deep down, reserved types often like to be drawn out.
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Over time, though, the two types can bring out the worst in each other. The giver starts to seem needy. The reserved partner reacts by pulling away. This makes the giver give even more in order to elicit attention; the reserved one backs away even further.
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Early in their 20-year marriage, Mr. Ford, a 61-year-old retired social-studies teacher, began to feel his wife didn't fully reciprocate his affection. She rarely initiated hugs and kisses. And while she let him hold her hand sometimes, Mr. Ford says he could tell she didn't really enjoy it. He began to pull away. "I didn't want to waste my time," he recalls. "If the marriage isn't working so well, I can go fish or hunt or work on my studies or business relationships." He worried the relationship wouldn't last.
Then Ms. Ford asked her husband what was wrong. He told her, "I need more physical closeness, and not necessarily sex." She reminded him that she had been raised in a German-American household that wasn't "huggy-kissy." She told him she prefers to show lov! e throug h actions—making a nice home, planning vacations, setting up get-togethers with his family. "I was raised in a very bonded family that showed their love by spending time together," she says.
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Robert Neubecker
When your partner is away, are you afraid that he or she might become interested in someone else? Constant worry about the relationship points to an Anxious attachment style. But if your partner is an Avoidant type, there may be reason to worry: Research indicates Avoidants are more likely to cheat in the long run.
In the psychology field, these different ways of relating are called "attachment style," and they are partly learned and partly genetic. Attachment is believed to be a basic human need with an evolutionary basis. Many children, such as orphans, who aren't held or given physical affection fail to grow at normal rates.
Amir Levine, a psychiatrist and neuroscientist at Columbia University in New York, identifies three types of attachment styles: Secure, Anxious and Avoidant. Secure people make up more than half the population and are typically warm, caring and comfortable with intimacy, he says.
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Robert Neubecker
Does your partner act out when things go wrong in the relationship, or even threaten to leave? A partner may engage in 'protest behavior' to get the other to pay attention and later regret things they said or did. This behavior may be typical of an Anxious attachment style.
Those with an Anxious attachment style, about 20% of the population, often worry about their relationship and whether their partner loves them, says Dr. Levine, co-author of the book "Attached: The New Science of Adult Attachment and How It Can Help You Find—and Keep—Love." They typically are emotionally giving. Those with an Avoidant attachment style, about 25% of the population, tend to think intimacy leads to loss of autonomy and try to minimize closeness, he says.
In the mid-1960s, a Johns Hopkins University psychologist, Mary Ainsworth, developed an experiment known as "the Strange Situation": A young child plays with her mother in a room. Her mother leaves, and a stranger remains. Then the mother returns. Most children were distressed when their mothers left the room, says Robert S. Marvin, director of the Mary D. Ainsworth Child-Parent Attachment Clinic, in Charlottesville, Va.
Robert Neubecker
Do you find it difficult to be emotionally supportive when your partner is feeling down? Supporting someone in times of need is a big opportunity to be close. An Avoidant attachment style makes it difficult for some people to deal with closeness, and they tend to pull back.
Dr. Ainsworth examined what took place during the mother-child reunion. Some children rushed to their mothers and were easily consoled; Dr. Ainsworth concluded they were secure. Other children were unable to be consoled by their mothers; these she called "anxious-resistant." Some didn't rush to their mothers, or they started to approach but then turned away; these she called "anxious-avoidant."
Another experiment, "the Still Face," conducted by Edward Tronick, now a developmental psychologist at the University of Massachusetts Boston, demonstrates that a child can experience a mother's emotional withdrawal at an early age. Dr. Tronick videotaped a mother engaging lovingly with her approximately 1-year-old baby. Then the mother makes her face immobile. The baby notices and tries to re-engage with her by smiling, then by pointing, then shrieking and finally crying.
The good news, Dr. Levine says, is that attachment style can change. Experts say couples need to tell each other what they need and be specific. For example, they can say, "I know it's difficult for you to be affectionate in front of my friends, but at home I really need a hug every day."
Does your partner or spouse make you feel that your well-being is your own responsibility, and not his or hers? 'You take care of your needs, I'! ll take care of mine,' is the credo of the Avoidant attachment style.
Do you often worry that your partner will stop loving you? People who think relationships are immensely fragile and any wrong move can trigger the end tend to have an Anxious attachment style.
Do you dislike being dependent on your spouse or partner? 'Dependency' is a dirty word to Avoidants, who believe they should be self-reliant.
Displays of love don't have to be 50-50, as long as both people show something. "Each partner will need to make some slight movements in the opposite direction from which they are comfortable," says Sharon Gilchrest O'Neill, a Mount Kisco, N.Y., marriage and family therapist. She says she is more emotionally reserved than her husband, and he asked her to give him a kiss when he comes home.
The Fords worked on their differences, and now Ms. Ford gives her husband hugs when he comes home and before bed. She has become more comfortable holding hands and often initiates it. Mr. Ford has altered his expectations and doesn't take his wife's lack of verbal or physical expression personally. He also pays attention to the other ways she tells him she loves him: planning special weekends together, washing his hunting clothes, preparing and freezing meals before he goes camping. "We've moved to a mutual center," Mr. Ford says. "It comes from communication."
—Email Elizabeth Bernstein at bonds@wsj.com or follow her column at www.Facebook.com/EBernsteinWSJ. Write to Elizabeth Bernstein at Bonds@wsj.com
For more than half a decade, few stocks have been more vilified than those from one out-of-favor sector. Even as the market recovered from its 2009 lows, this entire group was left behind. Investors simply wanted nothing to do with these stocks…
However, the first signs of life in this sector are beginning to appear. And I�ve found a unique way for you to play this hidden rally.
I�m talking about the housing sector. Since the housing market peaked more than 5 years ago, few investors have been willing to go anywhere near homebuilders. For years, these stocks have stagnated. Even sector leaders like Toll Brothers (NYSE:TOL) have failed to see their shares recover from 2008 lows.
Negative news surrounding the housing market continues to command front-page coverage. It�s been all too easy for the media to pile onto the countless human interest stories in the most affected regions of the country. Foreclosure horror stories, entire abandoned neighborhoods, and abusive bank practices remain top stories in the financial and mainstream media alike.
On the surface, housing sector data doesn�t look any brighter. The Case-Shiller index � which measures property values in 20 major cities � showed in its most recent data that home prices dropped 3.7% year-over-year.
But beneath the gloom-and-doom, there are several signs that the environment for homebuilders is improving.
Even Case-Shiller index co-creator Karl Case sees the silver lining in the numbers. Case told Bloomberg last month that the seeds of recovery have already been planted because homes are becoming affordable again. Add in record-low interest rates and you have a reason to be hopeful about housing.
According to the AP, builders broke ground on a seasonally adjusted annual rate of 699,000 homes last month. This milestone puts the seasonally adjusted rate at its highest level since October 2008. These glimmers of hope for the housing market have ignited a stealth rally within the sector:!
Homebuilders Index Quietly Outperforms
Am I arguing that the housing market is ready to boom again? Absolutely not.
But when the skies are completely clear for the housing sector (and many experts are predicting at least two years before the market truly regains its footing) the investing opportunities will have passed us by. Right now, I am seeing the bottoming process play out in this sector.
While it would be completely unrealistic to expect anything even close to housing bubble conditions reappearing, I do believe there is opportunity in this space. There�s value to be found in some of these beaten-down homebuilders. Even though conditions will remain far from perfect for some time, many of these stocks could find higher ground now that the monumental bust that buried every single one of these stocks back in 2008 is beginning to wear off… Mea Culpa: How I Was (Kind of) Wrong About Zynga
Last week, I warned you about the imminent collapse of Zynga Inc. (NASDAQ:ZNGA), the developer of FarmVille and other fad games for Facebook and mobile phones. I suspected that unrealistic expectations would eventually catch up with the stock. But I didn�t expect that to happen right away.
In fact, I wrote that the stock would probably trade even higher before any hint of a correction:
�Unfortunately, countless eager investors will probably get sucked into this stock before it crumbles,� I wrote just one week ago. �It will begin next week when Zynga will announce fantastic earnings. The company will beat estimates, predict incredible growth and win over plenty of new followers.�
That�s not exactly how it played out…
Yesterday, Zynga announced fourth quarter earnings! that se nt speculators packing. The stock lost nearly 18% of its value by the end of the day. Lower earnings and skyrocketing expenses helped spur the selling.
Needless to say, I was surprised that Zynga couldn�t put together a decent-looking quarter. Even more alarming are the huge research costs that are contributing to the company�s rising expenses. It�s clear that Zynga is going all-in when it comes to developing new games. Of course, there�s still no guarantee that those millions spent on game development will translate to long-term profits. I still recommend avoiding this stock.
According to a government watchdog, U.S. taxpayers are still owed $132.9 billion from companies haven't repaid from the financial bailout. Some of which will never be recovered...
The acting special inspector general for the $700 billion bailout, Christy Romero, as that the bailout launched at the height of the financial crisis in 2008 will continue to exist for years.
From the AP,
Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last as late as 2017, costing the government an additional $51 billion or so.
The gyrating stock market has slowed the Treasury Department's efforts to sell off its stakes in 458 bailed-out companies, the report says. They include insurer American International Group Inc. (AIG), General Motors Co. (GM) and Ally Financial Inc.
If the Treasury plans to sell its stock in the three companies at or above the price where taxpayers would break even on their investment, it could take an incredibly long time for the market to even rebound to that level. Shares for AIG closed on Wednesday at $25.31, which is more than $3 less than the break even point for taxpayers, while GM ended at $24.92, while needing to hit the $53.98-a-share break even point. Ally isn't publicly traded.
The government has unwound its investments in the companies that received the most aid: Bank of America Corp., Citigroup Inc., Chrysler Group LLC and Chrysler Financial.
$413.4 billion was paid out from the Congress authorized $700 billion for the bailout, also known as Troubled Asset Relief Program, or TARP. So far the government has recovered only $318 billion.
&ldqu! o;TARP i s not over,” Romero said in a statement. She said that her office will continue to protect taxpayers for the duration of the program.
Rolling Stone asked me to speak about Lana Del Rey. I wanted to know how big my participation in the piece would be–was it substantial or just a quote? Just a quote, they said, to which I replied that I wasn’t super interested. Which was a lie. I have a lot to say about her, but no sound bites. You see, Lana Del Rey is exactly what I was hoping to inspire when I took on the male rock establishment almost twenty years ago with my debut record, “Exile In Guyville.”
Let me break it down for you: she’s writing herself into existence. She’s giving herself a part to play because, God knows, no one else will and she wants to matter in this life. As far as I can tell, it’s working. I went straight to iTunes and bought her new release “Born To Die” in toto (how often do I do that??) because it was more than a collection of songs or a performance, it was a phenomenon. Maybe all the more so because she’s not overwhelmingly talented. The minute I hear the whisperings of “how dare she,” I’m interested. I don’t have to like it, it doesn’t have to be worthy.
Lana Del Rey seems to be bothering everybody because she allegedly “remade”! herself from a folk singing, girl-next-door type into an electro-urban kitty cat on the prowl (of course I like her), and they feel she is inauthentic. I would argue that the uncomfortable feelings she elicits are simply the by-product of watching a woman wanting and taking like a man.
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Singer/songwriter Liz Phair performs her album ”Exile in Guyville” at the 9:30 Club on August 28, 2008 in Washington, DC.
what is called a sex-positive feminist. Or maybe a radical feminist, or, wait–this one’s cool: an anarcha-feminist! Which is to say that I don’t give a f— about your labels, I just want to hear the true voices of women self-expressing–smart ones, stupid ones, ugly ones, beautiful ones, good ones, bad ones, fat ones, thin ones, all of it–until the profound silence that has resounded throughout history is filled with a healthy chorus coming from our side of the aisle.
Can you picture our society, “one nation under The Goddess, indivisible… etc.?” If the president was always a woman and all the senators, judges and key business leaders were all female? Picture being forced to talk endlessly about your feelings and listen and care when what you needed was just to get something done. Doesn’t that sound sh–ty? Tiresome? Oppressive?
Yeah, I know the feeling .
Lana Del Rey really needs to duke it out with M.I.A. and Katy Perry, Lady Gaga and Kim Gordon, The Tin! g Tings and Tegan and Sara. That’s where she’s relevant. It’s our sh–. You wouldn’t understand.
So how does Liz Phair feel about Lana Del Rey? Well, as a recording artist, I’ve been hated, I’ve been ridiculed, and conversely, hailed as the second coming. All that matters in the end is that I’ve been heard. Liz Phair’s 1993 album “Exile In Guyville” was named one of the top 100 albums of all time by VH1, and one of the 500 greatest albums ever by Rolling Stone. What do you think of Phair’s take on Lana Del Rey? Leave your thoughts in the comments.
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