6 Stocks Increasing Dividends

With earnings for most of the biggest stocks behind us, the quarterly reports and subsequent dividend increases announced in the last several days concern companies that are a bit smaller. But some of the high yield dividend stocks increasing their payouts are worth a look even if their market cap isn�t huge. Take Cincinnati Financial (NASDAQ: CINF), that now yields about 6%.

There must be something in the water in Ohio when it comes to this week�s lineup of dividend stocks increasing their quarterly dividends. Three companies — two in Cincinnati and one near Cleveland — have decided to be more generous to their shareholders.

Here�s the full list of 6 stocks that have boosted dividends in the last several days:

Dividend Stock � Lorillard

Lorillard, Inc. (NYSE: LO) is the third largest manufacturer of cigarettes in the United States, and a staple among dividend stock investors. Just today, the company announced its Board of Directors approved a +12.5% increase in the quarterly dividend on its common stock.

The dividend, upped from $1.00 per share to $1.125 per share, �is payable on September 10 to stockholders of record as of September 1. That gives LO stock a dividend yield of about 6% at current valuations.

Tobacco is highly regulated, but that has only proven to help enact a legalized monopoly of sorts for Big Tobacco with just a few companies like Lorillard and Reynolds American (NYSE: RAI) controlling the marketplace. That means very reliable revenue, and thus reliably plump dividends.

Dividend Stock � ITC Holdings

ITC Holdings Corp. (NYSE: ITC) said Wednesday it will increase its quarterly dividend 4.7% to33.5 cents. The dividend will be paid Sept. 15 to shareholders of record on Sept. 1.

ITC, through its subsidiaries, engages in the transmission of electricity in the United States. At current valuations, the new dividend increase gives ITC Holdings a yield of over 2.3%.

Utility stocks are stable businesses and reliable dividend providers. Though ITC is relatively small with a market cap of under $3 billion, it is still a decent dividend play for investors. What�s more, shares have added over +10% so far in 2010, making it a decent equity play on top of the payout.

Dividend Stock – Nordson

Nordson Corp. (NASDAQ: NDSN) raised its quarterly dividend by 2 cents, to 21 cents a share, payable Sept. 14 to shareholders of record Aug. 31 — its 47th straight annual increase. That brings the current yield in this dividend stock to about 1.2%.

The Westlake, Ohio-based maker of dispensing and testing equipment also reported that its earnings soared by 131% in its fiscal third quarter, to $55.3 million, or $1.61 a share from $24 million, or 71 cents a share, in fiscal Q3 of 2009. Sales rose 25%.

NDSN says it ranks 16 among public companies with the longest record of consecutive dividend increases.

Increased spending by chip makers and other tech companies has boosted the company. The tech firms need NDSN�s equipment, which applies adhesives, sealants and coatings.

NDSN also issued earnings guidance for the fiscal fourth that is above current analyst expectations. In early August, BB&T Capital upgraded NDSN to buy from hold.

Dividend Stock – Cincinnati Financial

A half century of rising dividends, and this year isn�t an exception. Cincinnati Financial Corp. (NASDAQ: CINF) will raise its dividend by a half cent to 40 cents a share, Oct. 16 to shareholders of record Sept. 22. That will bring the yield to about 6%.The property and casualty insurer also pointed out it has an annual growth of 6% for the past five years.

CINF�s strong capital and cash flow generation have allowed it to increase its payout. This comes despite the fact that its compounded annual growth rate minus written premiums is actually a minus 0.6%. The company, however, has low levels of debt.

CINF has a market cap of $4.36 billion, so it�s a decent financial player. Its P/E is 8.54. EPS in the latest period was $3.13. Earlier this week EVA Dimensions increased its rating of CINF to buy from overweight.

Dividend Stock – American Financial

American Financial Group Inc. (NYSE: AFG) said it will increase its annual dividend by 18%, to 65 cents a share from 55 cents. Dividends will be paid on a quarterly basis of 16.25 cents per share beginning in October. It had been yielding 1.9% before the bump.

The Cincinnati-based insurer has increased its dividend in each of the last six years. Fitch earlier this month raised AFG�s ratings outlook to stable from negative.

Fitch kept the company�s rating at A-. Fitch said that the insurer�s bond investment portfolio had improved and its operating results are strong.

SmarTrend puts AFG as No. 1 in the multi-line insurance industry, measured by relative performance.

AFG�s net operating earnings dropped to $102 million, or 91 cents a share, in the second quarter. That was down 13% from the record results of a year earlier, but was consistent with its expectations, the company said.

Also in the second quarter of 2010, AFG repurchased 2.7 million shares of common stock at an average price per share of $27.82. The insurer is now trading around $29.

AFG�s market cap is $3.14 billion. It�s P/E stands at 6.62.

Dividend Stock � Marten Transport

On the smaller side, Marten Transport Ltd. (NASDAQ: MRTN) joins the ranks of companies increasing dividends. Trucking companies are doing OK, as shipping begins to creep up from recessionary levels.

Witness Marten. The firm announced that it will begin paying dividends. Its 2 cent a share initial dividend for the quarter ended June 30, is payable Sept. 10 to stockholders of record Aug. 30. The Mondovi, Wis.-based firm primarily hauls refrigerated cargo.

Marten was founded in 1946 and has been public since 1986. It has distribution services in Canada and Mexico as well as the United States.

Net income totaled $5.16 million in the second quarter of 2010 versus $4.477 million in the year-earlier period. Diluted EPS was 23 cents versus 20 cents.

Operating income rose to $9.193 million from $7.5 million a in the second quarter of 2009.The fundamentals: Market cap of $435 million and a P/E of 26.

As of this writing, Wayne Faulkner did not own a position in any of the stocks named here.

Daily Trader�s Alert: Red-Hot Trades Sent Right to Your Inbox! – Complete with chart and trading target, this daily stock or ETF pick is e-mailed to you each trading day before the market open. InvestorPlace�s Chief Technical Analyst Sam Collins also gives you his take on what�s slated to impact your portfolio during the trading day. Click here to subscribe to Daily Trader�s Alert — it�s FREE!

The Need-to-Know Basics About What’s Going On in Europe

Wall Street is dancing to Greece’s (and by extension Europe’s) whistle. If Greece says “jump,” Wall Street jumps. If Greece says, “Sorry, false alarm,” Wall Street cries.

This sorry dance has been going on for nearly two years. Like an endless loop of chicken dance, this might be fun at first (for about two minutes), but it gets old real fast. If you are tired of Wall Street’s chicken dance coverage and want to know what’s really going on and how to make money (or protect your assets), here’s a no nonsense assessment of Europe.

Greece — Fool Me Once …

Fool me once, shame on Greece, fool me twice, shame on me. Greece has been the scapegoat for every major sell-off and catalyst for most rallies and dead cat bounces since January 2010.

Shame on you if you think everything’s going to be hunky-dory just because Greece and/or its European pretend-to-be saviors announce another plan to come up with a plan.

The Problem

Here’s the problem: Greece is broke and has no significant revenue sources to pay off its debt — foreign investors own about $385 billion worth of Greek government debt.

Many banks and governments that own Greek debt are on the brink of insolvency, so Greece’s inability to pay its debt may push other countries and their banks into a Greece-like position (that’s called contagion).

Misleading Information

You can’t trust statements from European officials because they are trying to prevent panic. Panic will make any kind of solutions more expensive and more difficult to execute.

Luxembourg’s Prime Minister (also Chairman of regular euro zone meetings) blatantly admitted that: “When it becomes serious, you have to lie”.

Obviously, political leaders don’t want the euro zone to fall apart on their watch, so they pretend and extend and kick the can down the road far enough for it become someone else’s problem (someone else will inevitably include rosy-eyed investors).

This postpones the inevitable, but the portfolios of investors who are faithful enough to trust such assessments suffer a death of a thousand cuts. Just imagine where your portfolio would be if you sold everything when Greece first announced it had some minor fiscal problems. Like tearing a bandage off a hairy leg, slower is more painful.

You also can’t trust the media because they profit from sensationalist headlines, not sound investment advice. If that means they have to spoon-feed a consistent diet of “Stocks bounce on hopes for a Europe fix” followed by “Stocks plummet on fears over Europe,” then that’s what they’ll do. Fortunately, we can choose not to partake from the junk food dished out by the media.

On a different note, have you noticed how bad news (such as downgrades) is reported after the close (particularly Fridays), while good news (or even just good rumors) are reported while the markets are open?

Real Estate ETFs Look Poised for a Fall

The Real Estate iShares (NYSE:IYR) and the Vanguard REIT VIPERs (NYSE:VNQ) both appeared on a bearish scan I run each day and both are facing resistance from their 52-week highs.

Both IYR and VNQ are facing resistance at the $63 level, which was coincidentally the highest point for both ETFs last July. While the funds have had impressive bounces off their October lows, they haven�t been able to get over the hump and are now overbought based on their weekly slow stochastic readings and the 10-week Relative Strength Index (RSI) readings. They look poised for a drop of around 10% with the 104-week (two-year) moving average acting as the support.

The holdings of these two ETFs are very similar (but not exactly the same), thus the reason for the similar price performance. Both of these funds are more heavily invested in commercial real estate stocks than residential, but there is a mix of the two.

Both VNQ and IYR have tripled since their March 2009 lows, but they have done it with little improvement in the real estate market. At the peak of the real estate bubble in 2006, housing starts were above the two million mark. Today housing starts are running at a pace of around 700,000 per year. Likewise, new home sales peaked in 2006 and were running at a pace of 1.4 million homes sold per year. Today the pace is around 325,000.

If we look at a chart of real estate prices, we can see that the real estate market has yet to climb back above 2008 levels. The Moody�s/Real National- All Property Type Aggregate index has been moving sideways between 110 and 120 for the last three years. The peak in real estate prices came in 2007 when the index hit 190.�Click to Enlarge

So while real estate prices have been range bound, the real estate ETFs have tripled in the last three years. In other words, the performance of the IYR and VNQ has gotten ahead of what the actual real estate market is doing. I don�t think the funds will enter into a freefall like the one we saw in 2008, but rather a 10-12% correction that lasts three or four months.

If you are looking for a way to take advantage of any pullback in the IYR or VNQ, you don�t have to worry about shorting the funds. There are two active inverse funds that focus on real estate. The ProShares UltraShort Real Estate fund (NYSE:SRS) is a double-leveraged inverse fund and will climb approximately 2% for every 1% decline in the IYR or VNQ. The second inverse fund is a triple-leveraged inverse fund. The Direxion Daily Real Estate Bear 3X Shares (NYSE:DRV) fund will move up approximately 3% for every 1% drop by the IYR or VNQ.

If IYR and VNQ do experience a 10-12% pullback, SRS will move up approximately 20-24% and DRV will move up 30-36%. These leveraged ETFs don�t always have an exact move in line with the regular funds� decline, but over short periods of time, the relationship tends to hold true. After about six months, the relationship starts breaking down a little.

As of this writing, Rick Pendergraft does not own any ETFs mentioned here.�

Fidelity IWS Brings Black Diamond Onto WealthCentral Platform

Fidelity Institutional Wealth Management Services (IWS) announced Thursday that it was incorporating Black Diamond's portfolio management and reporting application to its roster of third-party advisor applications on its WealthCentral RIA platform.

Edward O'Brien, Fidelity IWS's senior VP and head of technology, said the agreement represented a "pretty important milestone" in the development of WealthCentral, adoption of which is "growing rapidly" among Fidelity IWS's 3,300 affiliated RIAs (as of June 30, 2010) since the platform's "broad rollout" in late 2009, and that any RIA firm affiliating for the first time with Fidelity, including breakaway brokers, "goes onto WealthCentral."

O'Brien said more than 600 Fidelity RIAs were using WealthCentral, a trading, reporting and rebalancing platform that included a range of third-party applications such as CRM from Oracle, portfolio reporting from Advent, financial planning software from EISI NaviPlan and now Black Diamond's Blue Sky. The new reporting application is a Web-based portfolio management and reporting system living on the cloud that will allow users, according to Fidelity's formal announcement, "to outsource and automate daily reconciliation of their clients' investment information, including aggregation of assets that may be held-away from Fidelity, as well as run comprehensive, customized reports on demand and view data dynamically on Black Diamond's Web platform."

Specifically, O'Brien says phase one of the rollout of Black Diamond's Blue Sky will begin in the fourth quarter with implementation of a single sign on to access both WealthCentral's core applications and Blue Sky. In the first quarter of 2011, development plans include the addition of contextual linking within WealthCentral to the Blue Sky application, allowing an advisor, for example, to create groups of clients and perform portfolio rebalancing without leaving the single WealthCentral-Blue Sky platform.

As for cost, O'Brien said that Black Diamond will set the price of the application for each Fidelity IWS RIA based on number of client accounts and the firm's assets under management. He estimated that the cost for a typical RIA firm with six associates and 300-500 client accounts would be in the range of $15,000 to $20,000 annually, or some 15% off the list price of Black Diamond.

Michael Durbin, Fidelity IWS's president, says WealthCentral is a good part of the reason that "Fidelity is 'winning' the breakaway broker" recruiting wars, since it appeals to wirehouse brokers' desire for an "end-to-end" technology platform. He said a "large portion" of the 600 RIAs now using WealthCentral are so-called breakaway brokers. There is a clear benefit to existing RIAs adopting the platform as well, Durbin argues, since they can pick and choose which discounted third-party applications they prefer to use.

Durbin presented the Black Diamond deal as part of Fidelity IWS's strategy "that we started several years ago" of providing best-in-class third party applications "on a rational, open architecture WealthCentral platform" that offers "deep" intra-allocation integration "with bi-directional" data transfer between those applications. While hastening to add that "you won't say we're the advisor's app store," Durbin noted that part of the business impetus for the Blue Sky addition was that Black Diamond and Fidelity already had some 80 shared clients in common, which helped convince Fidelity that Blue Sky would be a welcome addition to the platform.

As for future additions or enhancements to the platform, Durbin said to "expect to see a thoughtful continuation" of enhancements to the platform, and "don't be surprised to see additional third-party vendors," saying it wouldn't be "choice for choice's sake," but applications that could offer "deep integration." "We'll keep the investment up" in WealthCentral, he pledged, further asserting that "we're in an all-out custodial arms race," but that Fidelity would "emphasize efficiency" for its advisors. Finally, he suggested that, again in response to user interest and competitive pressure, Fidelity was working on a mobile application for WealthCentral.

Read an interview with Reed Colley, founder, code writer and CEO of Black Diamond on AdvisorOne.

Top Stocks For 3/14/2012-16

Crown Equity Holdings Inc., (CRWE)

Crown Equity Holdings Inc’s selection of Core Link reflects recent diversification beyond CRWE’s original charter as a provider of services and knowledge to small business owners taking their own companies public. In addition to these services, Crown Equity Holdings Inc has transitioned into a multifaceted media organization that publishes clients’ news online; sells advertising adjacent with its digital network targeted at a high-income audience; designs, hosts and maintains websites; produces marketing videos from concept to final product; crafts press releases and articles for maximum SEO; develops email campaigns; and forges branding campaigns to bolster client company images.

Crown Equity Holdings Inc., together with its digital network, currently provides electronic media services specializing in online publishing, which brings together targeted audiences and advertisers. Crown Equity Holdings Inc. offers internet media-driven advertising services, which covers and connects a range of marketing specialties, as well as search engine optimization for clients interested in online media awareness.

Crown Equity Holdings Inc., recently announced that it has extended its CRWENEWSWIRE global platform web presence and is now publishing online news and information to the following countries: Argentina, Australia, Brazil, China, France, Germany, India, Ireland, Italy, Japan, Malaysia, Mexico, New Zealand, Russia, Singapore, South Africa, South Korea, Spain, Taiwan, United Arab Emirates and the United Kingdom, using their specific country code domain and native language.

Advertising your online business, through article marketing, is now convenient and easy. In fact, most online marketers are seriously exploiting its potential benefits through intensive internet marketing techniques. For small time business owners, the benefits are even more pronounced given the fact that traditional marketing strategies are costly and less effective giving justice to the notion that the internet is a great equalizer between those with insubstantial marketing budget and those with a huge machinery of promotional strategies. To do this, all it takes are highly-informative and excellently written articles that search engines may find relevant for its web surfers.

For more information, visit http://www.crownequityholdings.com

Peoples Educational Holdings, Inc. (Nasdaq:PEDH) will announce its financial results for the fourth quarter and twelve months ended May 31, 2011 on Thursday, August 4, 2011 before the market opens. The Company will hold a conference call the same day at 11:00am Eastern Time to discuss its results. Participating in the call will be Brian Beckwith, President and Chief Executive Officer, and Michael DeMarco, Executive Vice President and Chief Financial Officer.

Peoples Educational Holdings, Inc., through its subsidiary, Peoples Education, Inc., publishes and markets supplementary educational textbooks and materials for K�12 school market in the United States.

Melco Crown Entertainment Ltd. (Nasdaq:MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, and its properties’ efforts in environmental protection has been recognized by multiple awards in 2011, fortifying Melco Crown Entertainment’s leadership in using environmental-friendly facilities and equipments in its operations. Melco Crown Entertainment’s flagship resort, City of Dreams, is the first integrated and entertainment resort in Macau to receive Indoor Environmental Quality (IEQ) Certification issued by SGS, a world-wide international certification company. The IEQ Certification of City of Dreams speaks for the level of comfort, hygienic and sanitary conditions and air quality in all its common areas, including gaming area, restaurants, hotels and shopping areas.

Melco Crown Entertainment Limited, through its subsidiaries, engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in the Macau special administrative region of the People’s Republic of China.

United Security Bancshares (Nasdaq:UBFO) Dennis R. Woods, President and Chief Executive Officer of United Security Bancshares http://www.unitedsecuritybank.com (Nasdaq:UBFO) reported that the Board of Directors of United Security Bancshares declared a 3rd quarter 2011 stock dividend of one percent (1%) on June 28, 2011. The stock dividend will be paid to shareholders of record on July 15, 2011 and the dividend shares will be issued on July 27, 2011.

United Security Bancshares operates as the bank holding for United Security Bank that provides a range of commercial banking services primarily to the business and professional community, and individuals in California.

Extreme Networks Inc. (Nasdaq:EXTR) announced that it has named communications industry veteran David Ginsburg as its Chief Marketing Officer (CMO). Ginsburg joined Extreme Networks in December 2010, when he was appointed to lead strategic marketing, product portfolio definition, and vertical solutions marketing. As CMO, Ginsburg expands his role to take on the full mantle of global marketing activities for the company, and will be responsible for all aspects of corporate marketing, product management, solutions marketing, and outbound communications activities.

Extreme Networks, Inc., together with its subsidiaries, provides network infrastructure equipment and services to businesses, hospitals, schools, hotels, telecommunications companies, and government agencies worldwide.

Stocks to Watch Wednesday: Goldman Sachs

CHICAGO (MarketWatch) � Goldman Sachs Group Inc., Northern Trust Corp. and a host of additional financial services firms are among the stocks that could see active trading on Wednesday, as earnings season kicks into high gear.

Goldman Sachs GS �is expected to report a fourth-quarter profit of $1.28 a share on revenue of $6.73 billion, according to a poll of analysts taken by FactSet Research.

Northern Trust NTRS �is seen posting a fourth-quarter profit of 68 cents a share on $973.1 million in revenue.

PNC Financial Services Group Inc. PNC �is expected to report fourth-quarter earnings of $1.37 a share on revenue of $3.52 billion.

State Street Corp. STT �is seen posting a profit for the fourth quarter of 94 cents a share on revenue of $2.41 billion.

U.S. Bancorp USB �is expected to issue fourth-quarter earnings of 63 cents a share on revenue of $4.76 billion.

Charles Schwab Corp. SCHW �is expected to post fourth-quarter earnings of 13 cents a share on revenue of $1.11 billion.

Bank of New York Mellon Corp. BK �is expected to report fourth-quarter earnings of 54 cents a share on revenue totaling $3.75 billion.

Also reporting, after the market closes on Wednesday, will be eBay Inc. EBAY �, Xilinx Corp. XLNX �, Sealy Corp. ZZ �and Plexus Corp. PLXS �.

Best Stocks To Invest In 3/5/2012-1

 

Expanded Business Relationship Positions Jamba for Accelerated Growth

EMERYVILLE, Calif — 12/28/2011 (CRWENEWSWIRE) — Jamba, Inc. (NASDAQ:JMBA) and SYGMA, a national foodservice distribution company owned by Sysco Corporation (NYSE:SYY), announced plans today to expand their supply chain distribution alliance to include the Colorado and Texas markets.

�Based on the outstanding results of our initial business relationship, we have decided to expand our existing program to include broader coverage into new territories,� stated Greg Schwartz, senior vice president, Supply Chain, Jamba Juice Company. �SYGMA now services a significant number of Jamba locations nationwide. They�ve become a great partner, who is helping us achieve our supply chain efficiency goals and positioning us well to drive additional product expansion and geographic growth. Ability to access Sysco�s entire network of resources has proven beneficial in further extending our international capabilities, enhancing our reporting effectiveness and giving us great access to servicing non-traditional venues. This opens the door to accelerated growth as we look to the future and our anticipated expansion plans.�

SYGMA has a robust reporting system to enable faster processing and management of orders. Their relationship with Sysco, the parent company, also provides them access to highly efficient freight and logistics technology which assures delivery of the right product at the right place, at the right pace, all at the right price while providing significant quality assurance and increasing overall customer satisfaction.

About Jamba, Inc.

Jamba, Inc. is a holding company which owns and franchises, on a global basis, Jamba Juice stores through its wholly-owned subsidiary, Jamba Juice Company. Jamba Juice Company is a leading restaurant retailer of better-for-you beverage and food offerings, which include great tasting fruit smoothies, fresh juices and teas, hot oatmeal made with organic steel cut oats, fruit and veggie smoothies, Whirl�ns� Frozen Yogurt, breakfast wraps, salads, sandwiches, California Flatbreads�, and a variety of baked goods and snacks. As of October 4, 2011, there were 752 locations in the United States consisting of 310 Company-owned and operated stores and 442 franchise-operated stores. In addition, at October 4, 2011 there were 10 international stores.

About Sysco

Sysco, the parent company of SYGMA, is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates 177 distribution facilities serving approximately 400,000 customers. For the fiscal year 2011 that ended July 2, 2011 the company generated record sales of more than $39 billion. For more information about Sysco visit the company’s Internet home page at www.sysco.com and for investor relations news follow us at www.twitter.com/SyscoStock.

Forward-Looking Statements

This press release (including information incorporated or deemed incorporated by reference herein) contains �forward-looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company�s management. Words such as �outlook�, �believes�, �expects�, �appears�, �may�, �will�, �should�, �anticipates�, or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to factors discussed under the section entitled �Risk Factors� in the Company�s reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond the Company�s control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.

Source: Jamba, Inc.

Contact:
For Jamba Juice Company
Investor Relations:
Don Duffy, 203-682-8200
investors@jambajuice.com
or
Corporate Communications:
Janice Duis, 510-596-0286
jduis@jambajuice.com

 

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

Polycom Plunges 17%: Q3 Rev, EPS Miss

Shares of video conferencing technology equipment provider Polycom (PLCM) are down $3.58, or almost 17%, at $18.25 in late trading after the company reported Q3 revenue below consensus and missed by a penny on the bottom line.

Revenue in the three months ended in September rose 23% to $379 million, yielding EPS of 26 cents, excluding some costs.

Analysts had been modeling $388.3 million and 27 cents.

CEO Andrew Miller said the company’s “significant” revenue growth in emerging geographies and the U.S. federal government were offset by “lower year-over-year revenue growth in the enterprise customer segment.”

Americas revenue rose 16%, Europe, Middle East and Africa (EMEA) revenue was up 23%, and Asia-Pacific revenue rose 41%.

was impacted by weaker than expected business conditions particularly in the Communications and Industrial and Other categories.

Currency Diversification Through Foreign Real Estate

It is often the case that foreign property buyers make their purchases using the coin of the realm, and then rent it out for part of the year to acquire an income stream in local currency. This is a good bet, especially when the world is in such clear financial trouble and one can never guess where the next safe haven investment will be. Expats are fond of using rental income to fund their vacation time in their chosen foreign location in places like Brazil and Colombia. In Medellin, Colombia, part-time rentals net an average yield of 8% after expenses, which can help offset costs when the owners are in town. For more on this continue reading the following article from International Living.

When you buy international real estate you can generate income in another currency.

All your eggs aren’t in one basket. If the value of your dollar goes down, for example, you might be very happy to have an income stream in Brazilian reais…or Colombian pesos.

Diversification…particularly in turbulent times…is just plain common sense.

If you only want to use your home abroad for part of the year…you could use your rental income from the rest of the year to fund your lifestyle when you visit.

The city of Medellin, Colombia is a place where you could do this.

Medellin is an extremely pleasant place to spend time, especially the leafy high-end area of El Poblado. This is a great place to sip coffee or enjoy a nice meal in the shade next to one of the many streams that babble down the hillside.

Bright sunshine and temperatures in the low 70s are typical of the weather you can expect year-round. This area is convenient. Compact. I got around mostly by foot. At 5,000 feet, the altitude is comfortable and the sunshine fresh on your face.

This area of El Poblado is upper middle class. Even in this prime area, 190 million Colombian pesos ($102,000) could buy you a 1,000-square-foot condo with views to the valley and outside space.

Because the price is low…even with modest rents, yields could be strong.

Real estate here is priced in the Colombian peso. While some foreign owners quote rents in euros or dollars, the main rental market is priced in pesos. As with buying in any non- dollar denominated market, you are exposed to exchange rate fluctuations.

(In Brazil members of Real Estate Trend Alert have done well on the currency side of the equation on top of the asset appreciation we have enjoyed. But let me be clear on one thing: I’ll leave foreign exchange predictions to others. That’s not my beat.)

Yields in Medellin from short-term rentals are strong. If you buy a unit here and make it available for short-term rental, you could net 8%.

This means that your 190 million peso condo could generate more than 1.3 million pesos ($700) a month in income after you have paid your bills (excluding any income tax liability). Short-term rental demand is strong from visiting expats. Or, you could rent long-term to a visiting executive from the resources industry.

Foreign investment in Colombia doubled the first half of last year versus the previous year. The major resource players are flooding back in as Colombia becomes more stable. Wealthy Colombians are keeping more of their money in the country. I saw this first-hand last year at the beach resorts near Santa Marta, where Colombians from Medellin, Bogota…and Colombians living in the U.S….were snapping up pre-construction condos.

Eight years ago they were buying in Panama and Miami. Now they are keeping their pesos in places like Medellin.

Big Opportunities in Shale Drillers: Goldman Sachs

Oil services stocks could gain from increased demand for land rigs as shale gas exploration picks up, Goldman Sachs analyst Waqar Syed writes in a bullish note today.

“Owing to the shale revolution, US land rig demand has just entered the second phase of a multi-year pick-up. This is a �higher quality, lower volatility� phase driven by drilling in oil bearing shales, entry of deep pocketed oil-majors/E&P companies, and requirement for large scale developments. By 2014-2015, US land rig demand should get another boost, as gas prices pick up and gas rig count, down 46% from peak, recovers.”

Syed is concerned that offshore drillers could suffer because of the� increased scrutiny on offshore energy exploration. Syed prefers the land drillers.

Syed’s top pick in the space is Halliburton (HAL), and Goldman also rates Baker Hughes (BHI)� Helmerich & Payne (HP) Patterson-UTI Energy (PTEN) and Weatherford International (WFT) at Buy.

A Fair Transaction Tax For U.S. Stock Trading

I don't consider myself an enemy of free markets. Quite the opposite. But if we are honest, really honest, a transaction tax of say .005 (half a penny per transaction), wouldn't really be a bad thing for US equity markets - or the US Treasury.

Free market vigilantes will already be reaching for their calculators, plotting how much the real life cost of imposing such a levy would be for retirees in Florida. How much U.S. competitiveness will be potentially weakened, etc.

I am not an enemy of high frequency trading (HFT) either, but it is clearly having a large influence on US equity trading. According to The Economist, trading volume on the NYSE increased 17% annually during the 1960's. From then on trading volumes increased exponentially in line with the number of new listings up until 2008. A fairly smooth upward curve. Then in 2007, the SEC introduced Reg NMS to promote "competition among individual markets and competition among individual orders." Between 2008-2011 annual turnover on the NYSE increased by 300%. A period a where:

• Turnover rates and trading volumes for traditional US money managers remained stable.
• Number of new US equity listings (IPOs) decreased.
• The NYSE saw its share of US equity trading decline. According to Tabb Group, only 27% of NYSE listed equities were traded on the NYSE in 2011. Down from 38% in 2008, and 80% in 2007.

Although there seems to be some dispute as to the actual figure, industry estimates say HFT now accounts for 40-70% of daily US equity turnover. Liquidity is now spread across a fragmented market place of exchanges, ECNs, Dark Pools and broker-dealer internal order matching. Decentralisation of liquidity has had the unintended effect of seeing it evaporate at times of high market volatility. The 'Flash Crash' of 2010 being the most extreme example. Rather than supplying liquidity at times of high volatility, "HFTs reduce their liquidity supply as day-level volatility increases," according to a report published by the FSA in the UK. HFT is complex, and a discussion of how beneficial/disruptive it is to the market place is beyond the scope of this article. But its impact on US equity markets cannot be disputed.

Really a Sales Tax

Exchanging things of value at a negotiated price is how business transactions are made. A sales tax on exchange of tangible goods is considered standard business practice. A 'sales tax' levied when a security changes hands should be treated no differently - albeit that the rate should be lower to reflect the volume of transactions. I believe a levy of .005 per transaction would be fair to all market participants, although I am sure HFTs would consider it punitive because it is based on the frequency - not the value of the transaction.

Trading frequency is directly proportional to the time frame that a security is held. It follows that the shorter the time frame the more frequent an offsetting trade will take place. The fact that these types of trades are largely speculative in nature is immaterial. Nobody's profit motive for trading in US equity markets should be censored. As long as the conduct of each actor is in compliance with SEC and exchange regulations, moral judgement should be suspended. By the same token if the introduction of a transaction tax leaves HFT's less profitable - or even unprofitable, should not be an argument for or against implementation. To the degree that a .005 levy would hurt HFT revenues is more reflective of the viability of HFT business models, than the burden of the tariff. Consistent with the transaction tax on equities would be a levy on all exchange traded derivative contracts. This would prevent equity cash market strategies being replicated in the options market to avoid the tax.

Tobin Tax is not a Transaction Tax

The UK has had a type of 'Tobin tax' on stock trades for many years. It is called stamp duty reserve tax (SDRT), and is levied at 0.5% of the value of the transaction. It is an 'entrance fee'- no additional taxes are paid to exit positions. The SDRT has been circumvented by the Contract for Difference (CFD) Market. These OTC equity derivative products were introduced in the UK in the 1990's, and have gained enormous popularity since - largely as a way to avoid paying SDRT. The US has banned CFDs. In my opinion, a value tax such as the SDRT or Tobin tax is a form of wealth tax. Instead, the US should implement a true transaction tax as it will tax the people who use the market the most - which is only fair. You can liken value taxes to a road toll where the Cadillac owner pays more than the pickup owner - simply because his vehicle is worth more. A transaction tax should be the toll you pay each time you use the 'road.' An example might help illustrate the difference:

Value Tax

Florida retiree buys 1000 x ABC @ 50 - value tax = 250 ($50,000*.05)

HFT buys 20,000 XYZ @ 2.5 - value tax = 250 ($50,000*.05)

Transaction Tax

Florida retiree buys 1000 x ABC @ 50 - transaction tax = 5 (1000*.005)

HFT buys 20,000 XYZ @ 2.5 - transaction tax = 100 (20,000*.005)

The transaction tax gives a lower rate to both parties.

It is really only practical to implement a US transaction tax in the regulated markets. Taxing OTC markets would only work if the same tariff was adopted globally. Otherwise OTC trades will simply be booked in the most tax benign jurisdictions. The likelihood of reaching a global agreement for such a tax is minimal, so it will have to start with regulated markets at national level. Tabb group estimate HFT's generated around $5billion in profits in 2011, and the industry is already well organized, with substantial lobby groups on both sides of the Atlantic. If the US waits too long entrenched interests may make it difficult to bring this into law. Introducing the transaction tax at such a low price point will make it less controversial. But it will at least it be introduced. It can always be adjusted up later.

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

Making Money in the Music Biz

It's never been easier to start a record label -- and never been harder to make it pay. The Internet has changed the tune of the music business, slashing the cost of recording and publishing but also giving rise to piracy that's gobbled up billions in sales. There are bright spots, such as fast-paced revenue growth by digital-music services like Pandora and Spotify. But Paul Resnikoff, publisher of website Digital Music News, doesn't mince words about the industry's prospects. "It's a great place to lose money," he says.

Click to enlarge graphic

On the B side, the struggles of "the majors" -- giant labels like Warner and Sony -- have opened doors for smaller players, says Rachel Flotard, whose Local 638 Records has issued seven albums since 2009. The costs of putting out an album are relatively modest; expect to spend at least $10,000 or so to record it, $1,000 to $6,000 a month for a publicist and $1,000 to print CDs. (Getting your opus on iTunes usually costs less than $100.) With the band and the label splitting everything, it's possible to break even by selling just 2,000 to 2,500 copies at $10 a pop. A few lucky media mentions could help an album catch fire, but producing hits is notoriously difficult. "It's like the weather," says Flotard. "One year it's terrific; the next you're broke."

Pandora Demonstrates Advantages, This Time With Concert Niche

Internet music, the creation of your own channels, and using an app to access music may not be for everyone, but it does seem to have some mass appeal, particularly with Internet radio provider Pandora (P). Pandora has announced the launch of a series of free concerts which will be available to Pandora listeners based on their likes and dislikes. The free concerts kick off with Dawes and will debut on December 13 in Portland, Oregon.

Invitations for the series are being sent out based on the preferences of Pandora listeners. The company will use the stations you have created along with your "thumbs-up" and "thumbs-down" to determine the status of invitations. A move like this ensures that users interact with the service, a big component to consider as music is becoming more and more social.

Because Pandora "knows" what you are listening to, when you listen, and how often you listen, they are able to gear music to your tastes, expose you to advertising that suites you, and in many ways make the Pandora experience better.

By example, according to the company, Portland-area listeners are 25% more likely to enjoy a Dawes song and 30% more likely to create a Dawes station on Pandora than listeners in any other U.S. city. Not only can the company improve in this manner, but they can also attract top-dollar advertising that is targeted. Pandora has landed Budweiser as an official sponsor for the Dawes event.

Music discovery is a key component of the audio entertainment experience. Pandora has been successful in allowing users to discover new music, but now has taken that to a new level by connecting the fans with the artists more than ever before.

Taylor Goldsmith of Dawes said, "As we have traveled the country, we often hear from our listeners that they discovered us on Pandora. We are excited that, now, through this new concert series, we'll get to connect in person."

Pandora expects to expand on this concept and take things to an entirely new level. Not only are more concerts in the works, but the plan includes doing such events in various cities across the country. Pandora's strategy seems to be grass roots. In contrast, Clear Channel's (CCMO.PK) iHeartRadio decided to host a huge multi-artist festival in Las Vegas this past fall, creating a compelling concert, but limited to a single destination and a one time event. Sirius XM (SIRI) has hosted several concerts, but these have typically been available only in New York, and to a limited audience. Which strategy works best? Only time will tell. The Dawes event in Portland is for people 21 years and older, but will be available to Pandora listeners (regardless of age) free of charge.

As the increasingly crowded and competitive audio entertainment landscape continues to morph and define itself, it is clear that no company is standing still. The good news is that there is plenty of room for many services to coexist without stepping on each others toes too much at this point. One thing is certain, with their ability to have exacting data from listeners, Pandora has become a growing factor in the advertising world.

Disclosure: I am long SIRI.

Wabash National Beats Analyst Estimates on EPS

Wabash National (NYSE: WNC  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Wabash National met expectations on revenues and beat expectations on earnings per share.

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

Gross margins contracted, operating margins expanded, and net margins expanded.

Revenue details
Wabash National logged revenue of $341.7 million. The five analysts polled by S&P Capital IQ looked for revenue of $344.0 million. Sales were 41% higher than the prior-year quarter's $241.6 million.

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

EPS details
EPS came in at $0.11. The five earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. GAAP EPS of $0.11 for Q4 were 57% higher than the prior-year quarter's $0.07 per share.

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

Margin details
For the quarter, gross margin was 6.0%, 120 basis points worse than the prior-year quarter. Operating margin was 2.5%, 10 basis points better than the prior-year quarter. Net margin was 2.2%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $314.0 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $0.84.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 84 members rating the stock outperform and 57 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Wabash National a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wabash National is buy, with an average price target of $12.40.

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Nat Rothschild Highlights 69% Opportunity for Very Brave Investors

Nat Rothschild, the financier and descendant of the famous banking family, yesterday highlighted one of the market's higher-risk buying opportunities within a resignation letter to the chairman of�Bumi� (LSE: BUMI.L  ) .

Rothschild said existing Bumi shareholders could see "an estimated return of �4.30 a share," which compares to the current Bumi share price of �2.55.

Rothschild's tip-off was accompanied by criticism of Bumi's board following a complicated offer for the group by the Bakries, the Indonesian family that controls the coal mining operation in which Bumi has a 29% stake.

The offer was preceded by a statement last month from Bumi that it had become aware of "allegations concerning, among other matters, potential financial and other irregularities in the Company's Indonesian operations."

Rothschild explained yesterday:

Given the scale of the alleged irregularities, as well as other facts not yet in the public domain, it would be a disgrace to proceed with, or even to entertain, the proposal made by the Bakries last Wednesday, October 10.

Based on news reports and other sources, it appears that you shall be reimbursed for your investment at a price of �10.91 a share, while other investors see an estimated return of just �4.30 a share. This is a clear breach of the spirit and, I believe, the letter of the takeover code.

Rothschild added: "I believe that this proposal is so obviously not in the interests of minority shareholders that I find it impossible to stay on as a Director. I am afraid that I have lost confidence in the ability of the PLC Board to stand up for investors."

Rothschild had led the London listing of the business two years ago, via a cash vehicle known as Vallar that floated at �10 a share. He said today that he was "determined to fight for my fellow investors and can do that better from outside the tent."

He may have a tough fight, however, as the Bakrie family owns 23% of Bumi, while chairman Samin Tan owns a further 23% and a senior manager owns 13%. Rothschild owns 11%. Bumi's market cap is �461 million.

For brave investors, the chance of receiving �4.30 a share from a �2.55 investment may seem attractive -- but a potential 69% gain is dependent on Rothschild's "news reports and other sources" having provided accurate figures.

In addition, any return is dependent on the Bakrie family, who -- at least according to Rothschild -- may not be the most reliable of buyers.

If Bumi is your type of investment, you may wish to know that�this free Motley Fool report�could help you on your way to earning handsome returns from higher-risk shares.

The report explains how taking a contrarian view and backing unloved companies at rock-bottom prices can be a vital step on the path to the�magic �1,000,000 portfolio.

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• 8 Dividend Plays Held by Britain's Super-Investor
• How to Unearth Great Oil and Gas Shares

Volterra Rallies As Brigantine, Wedbush Up Targets, Estimates

Volterra Semiconductor (VLTR) shares are trading modestly higher after a pair of analysts upped estimates and price targets for the producer of power management chips for PCs and servers.

• Ramesh Misra, Brigantine Advisors: He repeated his Buy rating, raising his target to $32, from $25. Misra ups his Q1 EPS forecast to 30 cents from 25 cents; for 2010 he goes to $1.37, from $1.30; for 2011 he continues to see $1.75. “Based upon our checks, Volterra’s server and notebook business segments appear to have been stronger in Q1 than management’s prior expectations,” he writes.
• Patrick Wang, Wedbush Securities: Wang repeated his Outperform rating, upping his target to $30, from $21. He raises his Q1 estimate to 29 cents, from 26 cents; for 2010, he goes to $1.25, from $1.15; for 2011, $1.50, from $1.45. He writes that checks find “better than expected Q1 business trends,” with strong product cycles in both notebooks and servers, and market share gains.

VLTR is up 48 cents, or 1.8%, to $27.90.

Netflix Builds On Streaming Online Video

Netflix �(NASDAQ: NFLX) continues to have a strong year. While other video entertainment sectors are hurting, particularly DVD sales, the online and by-mail movie rental service has seen consistent growth and strong revenue throughout the year. Riding high on its third-quarter earnings report this week, Netflix has begun the process of redefining its brand as its service shifts away from disc-based DVD and Blu-ray rentals towards on demand streaming over the Internet through a variety of consumer electronics.

During its third-quarter earnings call, Netflix executives described the company for the first time as “a streaming company, which also offers DVD by mail.” The description fits the service well. Last month, Netflix debuted its service in Canada, but unlike its previous incarnations, Netflix Canada provides streaming online service only, no DVD rentals by mail. Now, according to a report in the Los Angeles Times, Netflix is coming home and bringing its online-only subscriptions to the United States.

CEO Reed Hastings announced during the company’s third-quarter earnings call that Netflix has begun testing an online streaming-only subscription model in the U.S. Just like the streaming subscriptions in Canada, the test subscriptions in the U.S. cost $7.99 per month, just $1 less than the lowest tier of its current subscription model that lets users receive one DVD rental by mail. Hastings emphasized that Netflix wouldn’t stop offering disc-based rentals if the online-only tests proved successful, but he did reveal that his company is pouring more and more of its resources into its streaming business. Netflix recently signed a five-year, $1 billion deal with premium cable network Epix, the joint venture owned by Viacom’s (NYSE: VIA) Paramount Pictures, Lions Gate Entertainment (NYSE: LGF), and Metro-Goldwyn-Mayer (currently in negotiations to be purchased by LGF.) Thos companies will be providing hours of content exclusively for Netflix’s streaming service, tipping the scales from DVD to instant streaming in terms of which Netflix branch offers the most to audiences.

Switching to a purely streaming business model is risky for Netflix, as the lower-tier subscription models equate to less revenue per customer. Average monthly revenue per subscriber dropped 9% year-on-year in Netflix’s third quarter, down to $12.12 per customer. Of course, the Los Gatos, Calif. company also added 1.93 million subscribers to its current stable, bringing its total subscribers to 16.9 million.

Yesterday, Netflix�said��it earned $38 million, or 70 cents per share, in the third quarter, compared with $30.1 million, or 52 cents per share, in last year’s third quarter. Third-quarter revenue rose 31% to $553.2 million compared with the year-earlier period. Netflix shares are up more than 10% today, trading around $171 per share.

Netflix is leading the shift from disc-based and broadcast video entertainment to online-only, streaming on-demand services. Subscribers access Netflix’s content through almost every consumer electronics device available, from Apple’s (NASDAQ: AAPL) iPhone to Microsoft’s (NASDAQ: MSFT) Xbox 360 to both Google’s (NASDAQ: GOOG) Android smartphones and new Google TV set-top boxes. With projections for Netflix’s year-end subscriber base jumping from 18.5 million users to 19.7 million following the company’s earnings, investors who haven’t bought in yet should follow the stock over the next month. Look for a dip back to the $150 per share range and expect a significant return when Netflix reports its fourth quarter results in early 2011.

As of this writing, Anthony Agnello did not own a position in any of the stocks named here.

Monday Options Recap

Sentiment

The major averages are holding gains with help from analyst upgrades Monday. Alcoa (AA) gained 8 percent and is the best gainer in the Dow Jones Industrial Average after Morgan Stanley upgraded the stock to Overweight. Intel (INTC) is helping both the Dow and the NASDAQ after Barclays raised its rating to Overweight.

With no economic data on tap, and light trading due to the upcoming holidays, investors didn't have much other news to work with Monday. Crude oil lost $1.07 to $73.35 and gold suffered another setback, down $18.80 to $1092.70 an ounce.

With about forty minutes left to trade, the Dow Jones Industrial Average is up 82 points and the NASDAQ has added 23. The CBOE Volatility Index (.VIX) is back at the lower end of its recent range, down 1.20 to 20.48. Trading in the options market is running about the usual, with approximately 8.1 million puts and 4.7 million calls traded so far (a ratio of .58, compared to a 22-day average of .75.)

Bullish Flow

Aetna (AET) is up $1.46 to $33.97 after a healthcare bill that appears set to clear the Senate with 60 votes doesn't include a public healthcare plan option. While the House version of the bill does include one, reports are that a final bill is more likely to look like the Senate version. Consequently, some of the private insurers are trading higher and, in AET options, one player sold 5000 Jan 33 calls to buy 10K Jan 35 calls and this 1X2 call spread might be rolling up in strikes — doubling up on a winning trade. Separately, another investor bought 5,000 Jan $40 calls at a dime on ISE, which is an opening buyer, according to ISEE. 36K calls and 2,330 puts traded total, or about 4X the average daily.

Alcoa (AA) options are buzzing with activity, as shares of the metals company rally to new 52-week highs following a Morgan Stanley upgrade. AA is up 8.2 percent to $15.77 and easily the best gainer in the Dow Jones Industrial Average Monday. Options volume hit 3X the average daily. Of the 109K contracts traded, 75 percent hit on the call side of the options chain. The action includes 12.2K Jan 15 calls on the bid, for $1.30 apiece, which coincided with 930K shares at $15.81, and appears to be a buy-write. 30.7K contracts now traded. Jan 14, 16, and 17.5 calls are among the most actives as well.

Bearish Flow

Bearish flow was detected in Milwaukee-based mortgage insurance company MGIC Investment (MTG). Shares are up 8 cents to $5.12 and 2,900 puts traded, or 3X the recent averge daily volume. Jan10 $5 puts are the most actives, with 2,056 traded and 100 percent hitting ask-side. Mar $5 puts are seeing some interest as well.

Implied Volatility Movers

Brighman Exploration (BEXP) has been grinding higher, notched a new 52-week high, and was recently up 45 cents to $13.80. Options volume in the Austin, TX oil and gas exploration company is 2X the average daily, with Jan 15 calls leading the flow. 4056 traded (about half ask-side) vs. 577 in open interest. Looks like call buyers surfaced around 14:30, paying 40 cents, and the action continued for the next thirty minutes. No news on the stock today. Implied volatility (Jan 15s) up 2.4 percent to 56.4.

Unusual Volume Movers

Ford Motor (F) is seeing 2X average daily trading volume, with 144,000 contracts traded and put volume representing 64 percent of today's activity.

Micron Technology (MU) is seeing 3X average trading volume, with 74,000 contracts traded and calls representing 74 percent of today's trading activity.

NRG Energy (NRG) is seeing 10X normal trading volume. 71,000 contracts have traded, with call options representing about 89 percent of the flow.

Unusual volume (two times or more than normal average volume) is also being seen in Teva Pharmaceuticals (TEVA), Amgen (AMGN), and Fannie Mae (FNM).

Aceto Increases Sales but Misses Revenue Estimate

Aceto (Nasdaq: ACET  ) reported earnings on May 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Aceto missed estimates on revenues and beat expectations on earnings per share.

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

Margins improved across the board.

Revenue details
Aceto reported revenue of $121.4 million. The one analyst polled by S&P Capital IQ hoped for revenue of $132.5 million on the same basis. GAAP reported sales were 3% higher than the prior-year quarter's $117.9 million.

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

EPS details
EPS came in at $0.18. The one earnings estimate compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.20 for Q3 were 43% higher than the prior-year quarter's $0.14 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 18.2%, 170 basis points better than the prior-year quarter. Operating margin was 6.2%, 100 basis points better than the prior-year quarter. Net margin was 4.4%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $136.5 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $407.6 million. The average EPS estimate is $0.46.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 247 members rating the stock outperform and seven members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Aceto a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aceto is buy, with an average price target of $11.

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Is There Any Value Left In Sears?

By Paul Quintaro

Apparently, consumers just aren’t buying tools like they used to.

Or at least, they aren’t buying them from Sears (NYSE: SHLD).

On Tuesday, Sears Holdings announced that it would be closing as many as 120 stores. The company has 2,177 Sears and Kmart stores in the United States.

The company specifically used the language “up to” to indicate the fact that it would continue to give marginally performing stores some time to avoid a shut down. Still, with the holiday shopping season basically over, it may be unlikely that these stores will be able to turn it around.

Although the company is widely known for its Craftsman tool brand, Sears Holdings actually cited a weakness in consumer electronics and big-ticket items as the primary reason for its sales weakness.

Sears also said layaway sales were particularly sluggish.

The stock got hammered on Tuesday, falling as much as 27%.

Long-term shareholders in Sears may be getting particularly upset with the stock at this point. Despite the broader bullish trend in the market, Sears has been trending lower for years.

Over the course of the previous two years, Sears has lost over half of its value—as the stock has fallen from about $83 on December 31, 2009 to its current value near $33 a share.

Retail analyst Brian Sozzi—who has been bearish on Sears for quite some time—reiterated his negative comments on Tuesday, drawing a similarity between Sears decision to close stores and similar announcements made by now defunct retailers like Circuit City.

Sozzi also predicted Tuesday’s announcement would just be the first in a future wave of store closings, as the company had relatively zero brand image in a retail sector dominated by namesake.

Still, are investors overreacting?

While there is no doubt that the company has seen a slew of negative activity in recent months, after taking a huge hit on Tuesday, perhaps the stock offers a value play for investors looking to take a chance.

Clearly Tuesday’s announcement represents a noted shift in policy, and while bears may remark that the move is too little, too late, the management may be able to use the savings from store closings to boost the quality of its profitable locations.

Certainly, the majority of the Tuesday commentary on Sears seemed to be of a bearish nature. While it is hard to argue with a 27% move, Sears may represent a contrarian play in 2012.

At any rate, what does the announcement say for other retailers? The business left over from these closed stores could be absorbed by competitors like Wal-Mart (NYSE: WMT) while the demand for Sears electronic offerings could go online to companies like Amazon (NASDAQ: AMZN). Or, are these store closings indicative of weakness across all retailers?

Investors of Sears may have been horrified by the news and market reaction on Tuesday. Is it time to cut losses and bail, or wait for a turnaround?

Beginner Investing – Must Know!

Any type of investing can be confusing, frightening and even financially crippling if you don’t know what decisions to make. The Internet has simplified things considerably however and now just about anyone can get involved in the various forms of investing that range from opening up a basic savings account to putting their money into the stock market or even markets like Forex. Online investing can be quite lucrative, even for beginners, but there are still many dangers out there.

One serious mistake that many people make the first (few) times they invest online is that they believe online investing is easier. While it is true that you have the stock market at your fingertips, an ever ready resource and font of information, you have to still be careful to do all your homework. Whether you are looking for a good broker or trying to invest from your own research, take the time to get all the information available on either the broker or the investment you are considering.

Next, after doing all your research, you will need to open an Online Investment Account. There is a lot of information to consider before you open an account but here are a few things you must know.

? Pick the correct account. Personal accounts that are non-retirement accounts include individual, joint and custodial. Retirement accounts include IRAs, traditional, Rollover, and even Roth. Think about the tax advantages of one over the others before you decide.

? Do you want a margin account or a cash account? Margin accounts let you invest with money that isn’t yours but if your investment crashes you are responsible for the loses. Personal accounts allow you to invest up to the amount in your investment account.

? Let your broker know how much experience you have. This will help to determine if you are looking for Aggressive Growth, Growth, Income or Capital Preservation types of investment.

And finally, to stress the importance of information: Study, study and more study. Take the time to study your initial investments, learn as much about the companies (before you invest), and keep accurate records. Online investing has a significant learning curve, especially for someone who has never invested before. Learning from the ground up however will make it less likely that you will make a mistake and lose all of your hard earned and much needed cash.

To learn more about a beginners guide to investing in an online business Click Here. Or to see how Troy Pryczek can mentor you to make money online, and to claim you’re FREE! Internet marketing Boot Camp visit http://www.NewbiesHomeBusiness.com.

The Benefits of Raising Capital With a List of Angel Investors

If raising capital is the primary focus for both you and your team, then like many other industry professionals you are constantly searching for more efficient and effective ways to raise capital. One of the more successful ways to increase your capital raising potential is through the use of databases, directories or angel investor lists. These will not only save you and your team time and money, but will increase productivity. The following article is aimed at presenting and describing the benefits of raising capital with a list of angel investors.

The first benefit of using a list of angel investors is enormous increase in potential prospects. With the purchase of each database, directory or listing of investors you and your team gain access to hundreds of new leads within the industry space. These potential prospects are based within cities and Sates around the nation, along with various listings of organization which can be found around the world. By using a database or directory your team directly benefits from the time saved that would have been spent researching these new leads.

Another benefit to using a listing or directory resource, is the availability of contact details and business information for the hundreds of angel investors. The benefit in being provided with the phone numbers, fax numbers, e-mail addresses and physical mailing addresses is huge. Teams are able to focus their media releases and make personal calls to these potential leads.

The key benefit which is integrated into every aspect of the provided details within a database or directory is the amount of time saved. By choosing to use a listing resource you save yourself and your team hundreds of salary paid work hours that would have been spent searching for that same information. Instead you are able to utilize your expertise and focus on what you excel at: raising capital.

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com.

Vistaprint Craters; FY Q4 Revs Miss; Q1, FY ’11 Guidance Light

Vistaprint (VPRT) shares are trading sharply lower after the company reported weak results for its fiscal fourth quarter ended June 30.

For the quarter, the producer of promotional marketing goods for small businesses reported revenue of $164.3 million, shy of the Street at $168.8 million; non-GAAP profits of 38 cents a share beat the Street by a penny.

For FY Q1, the company sees revenue of $159 million to $164 million, with non-GAAP profits of 27-32 cents a share; the old Street forecast was for $173 million and 46 cents. Ouch!

For the June 2011 fiscal year, VPRT is forecasting revenue of $750 million to $780 million, and non-GAAP profits of $2.09 to $2.24 a share, falling short of the Street at $802.6 million and $2.36 a share.

VPRT said it expects currency issues to negatively impact FY 2011 results.

In late trading, VPRT is down a whopping $13.16, or 26.2%, to $37.10.

Business Gifts For Brand Awareness

Do you know how conscious feasible consumers are of your brand? Brand awareness is the knowledge of your business along with its merchandise and suppliers in the market. Despite the fact that this is intangible and not just measured, strategic and sustained advertising and advertising activities can construct the status of the brand and increase its degree of awareness inside the market.

There are a number of strategies which will help produce brand awareness, but this compose-up will concentrate on three tactics and is by no signifies exhaustive.

1) Talk a steady notion with the acceptable stage of frequency. Produce what your brand’s persona is whether or not exciting or inspirational and so forth and craft a concept that matches this character and share this with your clients. Check out the frequency ranges of your communications to uncover the suitable amount of time to chat with your audience. It is excellent as this will support create brand awareness. You don’t want to talk so generally that your audience tunes out nor so infrequently that they neglect about you.

2) Associate your brand with an encounter – Irrespective of whether or not you make a mundane obtain of a cup of tea a memorable and exciting excursion or you make a boring continue being wait at the airport light and enjoyable make your brand stand out among your customers as an unforgettable encounter that is not to be missed. For instance, Starbucks produced getting a cup of coffee into an expertise and is a single of the most rewarding tends to make to date.

3) Produce a culture all around your brand – Produce a customized about all extensions of your brand. Make assured that your clients get the precise exact same sense interacting with consumer assistance or human resources or revenue just where at any time your brand or company operates. E.g your purchaser will be handled the really very same in your branch in The US as they would in these in the Caribbean or Europe.

To cement the awareness that you are creating within your industry location, ensure that your promoting, immediate mail, social media and all other sorts of communication are reflective of the culture and expertise of your brand.

Steph Galle is an Internet marketing mentor and promotional products. He specializes in online marketing strategies that help catalyze massive growth for any business. Stephen takes pride in helping others realize their goals one step at a time. If you want to find a home-based business or grow your Corporate gifts

Verizon Sags On Q3 Beat; Wireless Adds Miss Estimates

Shares of Verizon Communications (VZ) are down 15 cents, or 0.4%, at $36.95 in early trading after the company this morning reported Q3 revenue and earnings per share ahead of consensus and reiterated its year outlook.

Revenue in the three months ended in September rose 5.4%, year over year, to $27.9 billion, yielding EPS of 56 cents, excluding some costs.

Analysts had been modeling $27.88 billion and 56 cents.

Verizon said it is “on track” to meet its outlook for 5% to 8% EPS growth, on an adjusted basis, this year, and 4% to 8% revenue growth.

Verizon’s wireless unit added 1.3 million connections in the quarter, with 882,000 “post-paid” additions, those taking out a contract. It ended the quarter with 107.7 million connections, 90.7 million of them “retail,” and the rest “wholesale.”

The company saw average revenue per user, or ARPU, rise 2.4%, with “post-paid” ARPU, rising 15.7%. Total wireless revenue of $15 billion rose 6.1%.

The wireless subscriber growth was less than the 2.12 million that AT&T (T) yesterday reported adding in the same quarter, and on the post-paid side, it was below what many analysts were expecting. However, the growth in ARPU was better than the 1.4% growth AT&T reported.

There are some puts and takes here, mind you. The company’s 1-cent beat is being discounted by some because Verizon had a lower effective tax rate. It also excludes a 7-cent charge, Verizon said, relating to “actuarial valuation of pension plans.”

Verizon generated $9 billion in free cash flow.

In general, the thoughts from the bull and the bear seems largely favorable this morning:

Jennifer Fritzsche, Wells Fargo: Reiterates an Outperform rating, noting that the $17.7 billion in wireless revenue and $7.2 billion of Ebitda were both ahead of her estimates. The company’s wireless profit margin of 47.8 % was also ahead of her 46.2% estimate and was “impressive.” The company’s wireless post-paid net adds, below the 1.05 million she was looking for, were probably affected by the lag in the industry in advance of Apple’s (AAPL) next iPhone introduction, the iPhone 4S, which didn’t come out till this month.

Michael Rollins, Citigroup: Reiterates a Neutral rating and a $39 price target. He thinks “normalized” earnings at this point are 60 cents a share. The top line was below his $28.25 billion estimate. However, “normalized” Ebitda of $9.16 billion was above his $8.98 billion estimate. The post-paid net additions were less than he was looking for, but still wireless results were “solid,” he writes. Post-paid average revenue per user was higher than he’d expected. And wireless Ebitda was well ahead of the $6.89 billion he had been expecting.

Layne Christensen Goes Negative

Layne Christensen (Nasdaq: LAYN  ) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Layne Christensen beat expectations on revenues and missed expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Layne Christensen reported revenue of $275.8 million. The five analysts polled by S&P Capital IQ expected a top line of $261.2 million on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $271.8 million.

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

EPS details
Non-GAAP EPS came in at -$0.20. The one earnings estimate compiled by S&P Capital IQ forecast $0.00 per share on the same basis. GAAP EPS were -$4.55 for Q4 versus $0.44 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 20.1%, 340 basis points worse than the prior-year quarter. Operating margin was -2.8%, 640 basis points worse than the prior-year quarter. Net margin was -32.1%, 3,530 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $266.7 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $1.12 billion. The average EPS estimate is $1.61.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 346 members out of 358 rating the stock outperform, and 12 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Layne Christensen a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Layne Christensen is hold, with an average price target of $29.33.

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

• Add Layne Christensen to My Watchlist.

Chinese Internet Stocks: Will Censorship Hurt Profits?

It's commonly acknowledged that the Chinese Internet is heavily censored, a fact that hasn't failed to escape the knowledge of the Chinese population either. Some are of the opinion the awareness of the Internet's limitations in China is actually discouraging users and hurting an extremely profitable online industry.

Michael Schuman writes in a Time.com blog:

Major international sites, including Twitter, Facebook and YouTube, are completely blocked here. Certain searches are impossible, emails are monitored, many web pages simply won't open, and others open so slowly (like this blog) that only the most patient or determined will endure the wait.

That's because of all of the government filtering and monitoring. When the government feels that a sensitive event is taking place, like the National People's Congress, the Internet can grind to a near halt.

The user experience described above is not typical for everyone. Some Chinese citizens commented that their Internet performance is just fine, and this description should be taken with a grain of salt. However, even on a small scale, these problems can have a variety of negative impacts.�

The resulting web experience, Schuman says, saps people's interest in the Internet and halts the curiosity and idea exchange the Internet otherwise fosters. This inhibits the actions that bring users to bounce around from site to site, creating Internet revenues from ad campaigns, online shopping, and a general free flow of information that progresses knowledge. What's more, waiting for web sites to load is a drain on productivity.

Economically, he wonders if China's economy can continue to thrive if it is simply using a different Internet than everybody else. "Can they develop and market the kind of products that tap into the latest global trends from behind a firewall their competitors don't face?"

This sounds like bad news for Chinese Internet companies subject to a more tedious and limited user experience. But when it comes to these sort of things, China has a significant advantage in number games: Internet usage in China is booming, with 485 million registered web users and counting. What's more, almost two-thirds of the population has yet to log on.

The government is also working to expand Internet access to more rural neighborhoods. Cost of the Internet also remains cheap, less than 100 Yuan/month. David Michael of BCG said to the Economist back in August that the annual value of China's e-commerce market would likely quadruple by 2015, to $305 billion.

But Shuman raises an interesting point, even if China's Internet economy booms, it is still limited. Can these companies truly compete with the growth and stability expected of an Internet industry operating in uncensored regions?

To help you follow the trend, we list below the Chinese Internet companies trading on the U.S. markets. Do you think these names will thrive or suffocate? (Click here to access free, interactive tools to analyze these ideas.)

1. Baidu (Nasdaq: BIDU  ) : Internet Information Providers Industry. Market cap of $45.62B. Provides Internet search services. The stock has gained 15.89% over the last year.

2. Sohu.com (Nasdaq: SOHU  ) : Internet Information Providers Industry. Market cap of $2.26B. Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Might be undervalued at current levels, with a PEG ratio at 0.8, and P/FCF ratio at 11.89. The stock has had a couple of great days, gaining 7.13% over the last week.

3. Youku.com (Nasdaq: YOKU  ) : Internet Information Providers Industry. Market cap of $2.23B. Operates as an Internet television company in the People's Republic of China.

4. Renren American Depositary (Nasdaq: RENN  ) : Internet Information Providers Industry. Market cap of $777.31M. Operates a social networking Internet platform in China. The stock has had a couple of great days, gaining 5.12% over the last week.

5. Jiayuan.com International (Nasdaq: DATE  ) : Internet Information Providers Industry. Market cap of $407.30M. Operates an online dating platform in the People's Republic of China.

6. Bitauto Holdings (Nasdaq: BITA  ) : Internet Information Providers Industry. Market cap of $248.04M. Provides Internet content and marketing services for the automotive industry in the People's Republic of China.

7. SouFun Holdings (Nasdaq: SFUN  ) : Internet Information Providers Industry. Market cap of $226.49M. Provides marketing, listing, technology, and information consultancy services to real estate and home furnishing industries in the People's Republic of China. The stock has had a couple of great days, gaining 7.59% over the last week.

8. ChinaCache International Holdings (Nasdaq: CCIH  ) : Internet Information Providers Industry. Market cap of $122.59M. Provides Internet content and application delivery services to businesses, government agencies, and other enterprises in the People's of Republic of China. The stock has lost 79.54% over the last year.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

Your browser does not support iframes.

Kapitall's Rebecca Lipman does not own any of the shares mentioned above.

Thursday’s Stocks to Watch: GTX, Check Point Software

Here are a few stocks to keep on your radar:�

• Shares of GTX Inc. (NASDAQ:GTXI) were�up 3 cents to $3.71�in early Thursday trading following a 34% jump Wednesday sparked by an upgrade by Citi, which slapped an $8 price target on the stock.
• Check Point Software (NASDAQ:CHKP)�fell 1.1%�after the company beat first-quarter earnings and revenue expectations.
• Delcath (NASDAQ:DCTH) shares were�up 3.6%�after the company said Wednesday that it received European regulatory approval for its liver cancer drug.
• Shares of Supervalu (NYSE:SVU) gained�12% after the company beat fiscal fourth-quarter profit estimates and said its fiscal 2012 earnings and revenue would come in above current Wall Street expectations.
• Zoom Tech (NASDAQ:ZOOM) slipped�1.3% after a strong Wednesday that followed a licensing agreement with Qualcomm (NASDAQ:QCOM)

Why Is Coca-Cola Gunning for SodaStream?

Coca-Cola (NYSE: KO  ) apparently doesn't like to see its trash getting trashed.

The undisputed cola king is getting litigious about a SodaStream (Nasdaq: SODA  ) promotional exhibit in South Africa.

In order to show the damage that soda cans and bottles do as waste, SodaStream has set up several displays it calls "the cage" across the world. SodaStream collects thousands of discarded cans and bottles from dump sites and landfills, uses them to fill up a huge cage, and then makes its point: "1 Family. 5 Years. 10,657 bottles and cans."

SodaStream's message is effective. Its home-based soda maker means an end to cans and bottles that often don't go recycled. The landing page on its website has a perpetually updated counter, showing that its system has spared drinkers of sparkling water and soft drinks from going through nearly 1.8 billion bottles and cans.

Despite having several of these cage displays around the world, the company is getting a cease-and-desist letter from Coca-Cola tied specifically to a display at a South African airport. Coke's letter argues that the display is infringing on the beverage giant's trademark rights, opening the door for possible legal action.

Obviously this is the kind of attention that SodaStream was craving all along, setting the Israeli company up for the perfect response.

"If they claim to have rights to their garbage, then they should truly own their garbage, and clean it up," SodaStream CEO Dan Birnbaum says, according to Forbes. "We find it incredulous that Coke is now reclaiming ownership of the billions of bottles and cans that litter the planet with their trademarks. In that case, they should be sued in the World Court for all of the damage their garbage is causing."

Investors have mistakenly lumped SodaStream with Green Mountain Coffee Roasters (Nasdaq: GMCR  ) as two companies with simple appliances that make beverages at home that consumers typically have to buy elsewhere.

However, while Green Mountain is often razzed for the environmental damage of its K-Cup portion packs -- something that the Keurig parent is working on improving -- SodaStream has always been on the eco-friendly end of its niche.

It remains to be seen what Coca-Cola stands to gain here. Pointing attention to its trademarks in public garbage displays is really only helping SodaStream make its point even clearer -- and louder to a larger audience.

Drink up
SodaStream is one of the many dynamic recommendations made to Rule Breakers subscribers over the years, but this is now a great time to discover the next rule-breaking multibagger that the newsletter has unearthed. It's a free report. Want it? Get it.

5 Focuses for Businesses Fighting to Survive

Do you know what you should be working on and doing, yet get distracted easily? I have clients like that. It isn't a crime, but not being able to focus on important things such as getting results on projects and keeping costs under control when cash is low is dangerous when it comes to running your business.

Here are some warning signs:

• You know what you should be working on to get revenue in the door and cash in the bank -- including meeting with prospects, calling on customers or working on billable projects -- but instead spend your time in meetings with people you aren't sure why you are meeting; on social media for hours each day "following" the latest sports or entertainment news; opening every email the moment it arrives "just in case"; spending time and money on the latest smartphone when your business computer is eight years old and crashing at least twice a day (without a backup); getting in on the latest online community that is neither your field, your customer market nor valuable in its content to moving you toward your goal (again "just in case").
• You focus on the "next" customer you can get when you are six weeks or more behind delivering a promised product or service to your existing customers.
• You take on community or association projects (such as volunteering) that require significant time and money away from the business.

Get alerts before Link and Cramer make every trade

I could go on, but you undoubtedly get the point. To survive through the near term, your focus needs to be on executing only those things that contribute to your survival.I am a huge advocate of working in the business (meaning near-term objectives) while working on the business (meaning long-term strategic objectives), but there are times when, for the business to make it through to the long term, the focus must be on the reality of paying your bills and keeping your current customers happy.

Here are five key elements to focus on when your business is fighting for survival:

• Existing customers: Make sure you are keeping the customers you have happy. Get them quality products and services on time. Treat them as the valued customers they are. Do not take them for granted or they will take their business to someone else.
• Relationships versus prices: Do not fall into the trap of believing that just because you have a long-term relationship with an organization it won't succumb to price differences. You may have done business together for years but when it comes to an organization's bottom line no one's going to spend $10,000 more for your goods or services if your competitor can and will do it just as well for less.
• Cost control and prevention: Everyone is tightening their belts and settling into long-term strategies to preserve capital and do more with less. You should be too. Every dollar you do not spend is a dollar you do not have to earn (again). Spend on what you need to keep your business running and getting customers. Keeping costs out of the business is easier than cutting costs later when you need to find some funds for the necessities.
• Competitiveness: Understand what is going on with your customers first. Then understand how your competition is going after those customers. Stay current on the trends, tactics and methods of identifying, capturing and serving your customers. What was working in a growth economy may just have been working because true competition was absent and there were plenty of customers for everyone, so if you were in business you had business. Now you must be sure you understand your business and its ability to compete.
• Goals and priorities: You do not have to give up on long-term strategic goals, and your actions during survival mode should keep them in mind. But spending too much time on the long term when you are facing near-term realities that could prevent you from being in business six months or a year from now mean that more time has to be spent on staying in business.

Stay focused on the things that matter. Be sure you keep things in perspective and set priorities that move your organization forward while it keeps its head above water.RELATED STORIES: >>Adapt to Conditions and Win the Race>>Entrepreneurs Need to Pin Down the Details>>Experience Is No Guarantee for EntrepreneurFollow TheStreet on Twitter and become a fan on Facebook.

>To order reprints of this article, click here: Reprints

Joy Global: Pure play on mining equipment

Metals and other resources are getting harder and harder to mine as the more accessible deposits become depleted. This is forcing producers to mine in ever more challenging places, including deep underground.

Investors can benefit by buying shares in the suppliers of mining equipment. One superb example is Milwaukee-based Joy Global (JOY).

With a market value of $9 billion, Joy Global makes products used in mining everything from coal and oil sands to copper and iron ore to gold and other minerals. It represents half of what is essentially an industry duopoly.

However, since the other half is equipment producer Bucyrus, acquired by Caterpillar in 2011, Joy Global is the only pure play on spending growth in the mining equipment industry.

Demand for Joy Global�s products has been strong, and the company has taken full advantage.
Revenues have grown from just over $2.5 billion in fiscal 2007 (ended October) to $4.4 billion for the year ended October 2011. Net income has grown even faster, from $280 million in fiscal 2007 to $610 million last year. �

These positive trends are continuing. In late January, Joy�s CEO Michael Sutherlin upped his expectation for growth in capital spending by the mining industry this year to 15 percent.

Only a month earlier he�d been looking for just 10 percent, but the recovering U.S. economy, China�s commitment to growth, and India�s shrinking coal inventories all pointed to the higher level, reinforced as more of the company�s customers confirmed their spending plans.

Around half of Joy Global�s revenues come from abroad, and not surprisingly the company is particularly focused on China.

In December the company purchased a majority stake in China�s International Mining Machinery Holdings, which manufactures equipment for underground coal mining; in early January, Joy began a tender offer for the remaining shares.

It plans to operate the subsidiary as a separate unit that will focus on mid-tier Chinese mines, a group that includes 100 customers and several hundred mines.

Despite Joy Global�s franchise-like position in a thriving industry, shares are surprisingly cheap, trading at only 12 times current-year earnings and 11 times estimated 2013 earnings.

With earnings growth projected to be in the high teens for at least the next few years, the PEG of 0.6 makes Joy Global a compelling buy.




Related articles:

• Endeavour Silver: Low cost, no debt
• Ternium : A Peter Lynch steel play
• Kinross Gold: Ready to shine?

Las Vegas Sands vs. Wynn Resorts

It's a question investors often ask themselves. Which company is better?

Today, I'm taking a look at Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (Nasdaq: WYNN  ) , two of the most successful gaming companies in the industry. Both have a presence in Las Vegas and Macau with their high end resorts there. The one big difference is that Las Vegas Sands has the additional advantage of a resort in Singapore.

Let the debate begin!

Location and growth
In Las Vegas, the two companies have casinos located across the street from each other. Both have suffered from lower demand after the recession, but unlike rivals MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (Nasdaq: CZR  ) they have recovered nicely by focusing on the top end of the market. Also, unlike Caesars and MGM, Las Vegas Sands and Wynn are comparatively less leveraged. The two casinos generate about the same amount of property EBITDA so for comparison sake, we'll call them a wash.

In Macau, Las Vegas Sands dominates the landscape with a casino on the Macau Peninsula and a strangle hold on the Cotai Strip. The company is adding Sands Cotai Central to its two other hotels there; The Venetian Macau and Four Seasons Macau, giving it prime real estate in gaming's hotspot.

There are big differences in the two company's operations in Macau though. Wynn generates far more profit from much less space than Las Vegas Sands does at its resorts. In the most recent quarter, Las Vegas Sands generated $1.03 billion in casino revenue in Macau, driven by 1,129 table games. The Venetian Macau, for example, averaged $11,705 in table game win per unit per day.

Wynn Resorts squeezes much more out of its casino by focusing on high rollers at the very top end of the market. The company's Macau resort generated $889.5 million of casino revenue, mostly from an average of 487 tables. That's a per table win of $25,769 per day.

What will differentiate them in the future is growth in Macau. Las Vegas Sands is building Sands Cotai Central, which will have 5,800 rooms and 540 table games, bringing much more supply to the Cotai Strip. Wynn won't enter Cotai until probably 2016, when its casino next to MGM Resorts and Melco Crown's (Nasdaq: MPEL  ) City of Dreams is expected to be finished.

In Singapore, Las Vegas Sands operates one of just two casinos there, and it's a doozy. Marina Bay Sands has generated $1.53 billion in EBITDA over the last 12 months and is approaching a $2 billion per year run rate.

Playing the odds
Now that we know where operations stand, it's time to talk about what you would be getting from an investment in each company. With their current stock prices, Wynn resorts has a $13.9 billion market cap and Las Vegas Sands is valued at $38.2 billion. So Las Vegas Sands might have more casinos and more EBITDA, but are you getting the same bang for your buck as Wynn Resorts?

To judge that we'll look at enterprise value divided by EBITDA. This will give us a multiple of how many times EBITDA you would be paying to buy the entire company at its current price. To calculate net debt, I have subtracted cash on hand from long-term debt.

Company	Market Cap	Net Debt	EBITDA (ttm)	EV/EBITDA
Las Vegas Sands	$38.2 billion	$6.1 billion	$3.5 billion	12.6
Wynn Resorts	$13.9 billion	$1.9 billion	$1.6 billion	9.9

By this form of valuation, Wynn Resorts looks much less expensive than Las Vegas Sands. But let's remember that Las Vegas Sands will open Sands Cotai Central over the next year, adding significantly to EBITDA.

Based on the development having twice as many rooms as The Venetian Macau, 5,800, and fewer table games, 540, I think it's safe to estimate that EBITDA will be similar to its neighboring resort, not considering possible dilution in the area. So if we add $1.0 billion to Las Vegas Sands' EBITDA, we would get a EV/EBITDA ratio of 9.8 if we included that resort.

This is just an estimation, but it does show that valuation is very similar when you consider soon-to-open resorts.

Foolish bottom line
The difference between the two companies really comes down to risk profile and size preference. By virtue of sheer size, it will be harder for Las Vegas Sands to grow in the future, even if it adds a wildly successful casino. Wynn, on the other hand, could potentially double its own EBITDA when it opens its planned resort on Cotai. By the same token, Las Vegas Sands has a more diverse assortment of properties and will cash in on the gaming boom in Singapore.

Right now, for my money, I think Wynn Resorts is a better pick because the company has proven to be a conservative operator with a history of consistent performance. It also pays about a 2% dividend and has a history of being a company focused on shareholder value.

I like both companies enough to have an outperform pick on both stocks in CAPS, which can be seen here. I'm also considering buying shares of Wynn Resorts in the near future, FYI.

Keep up on gaming stocks with My Watchlist and our free email My Fool Daily. With My Watchlist and My Fool Daily, our foolish analysis of the stocks you pick comes straight to you. No searching through articles you don't want. What could be easier?