Markman: National Oilwell Varco Is a Gusher

Oilfield services stocks are on the move this month as the threat of a curtailed supply out of the Persian Gulf has combined with stronger readings of the economy to make investors dream a little on energy prices.

The U.S. is blessed with dozens of great companies in this industry, but one of the best for my money is National Oilwell Varco�(NYSE:NOV). The company has a very unwieldy name, but it’s been one of the industry leaders for a decade, and especially in the past two years. Since their recent low in late 2008, shares are up 255%, vs 67% for all large energy stocks and 45% for the market.

NOV makes oil and gas drilling and production rigs around the world. Its main businesses are rig technology, petroleum extraction services and distribution services. The first unit provides offshore and onshore derricks and pipe systems to drillers, as well as pressure pumping units and cranes. The services unit makes, sells and rents consumables for drilling like pipe, motors, bits, mud pumps and other items that are used a few times and then tossed. The distribution unit sells and maintains supplies and spare parts for energy transportation systems.�

It has a number of joint-venture agreements with industry powerhouse Schlumberger (NYSE:SLB), but has grown to be a major player on its own after making dozens of acquisitions, and now sports a $30 billion market cap. That size makes it a little smaller than Halliburton (NYSE:HAL) and a quarter the size of Schlumberger, but a little bigger than�Transocean�(NYSE:RIG) and five times the size of a company like�Atwood Oceanics�(NYSE:ATW) or�Rowan�(NYSE:RDC).

In short, it’s a very large company, but still small enough to grow yet to the size of a Schlumberger.

Drilling services companies are doing well now because their customers — energy explorers — have underinvested for years. As a result, the drilling industry needs upgrading� — new rigs to dig deeper and into more complicated wells offshore in places like Brazil and Angola — as well as innovative new rigs to efficiently get at the oil and gas in the Bakken Shale of North Dakota.

NOV has successfully turned itself into one of the most trusted single sources for rigs and equipment for a lot of offshore drillers. Just to give you an idea of the opportunity, as Petrobras (NYSE:PBZ) gets ready to explore the Santos basin, it’s expected to order more than 60 deepwater drilling rigs over the next 10 years, which will be worth as much as $20 billion in orders and $20 billion in spare parts and maintenance to companies like NOV.

National Oilwell Varco also is a major supplier to British Petroleum (NYSE:BP), which will resume drilling in the deepwater Gulf of Mexico before long, as well as to many drillers in offshore Angola, Nigeria and elsewhere in Africa.

Because it’s one of the largest rig equipment makers, NOV regularly is low bidder in new contracts, and is believed to have its metal in something like 90% of all new equipment deployed. The company could face trouble from nationalist movements in countries like Brazil that wish to buy locally, but no countries have its level of expertise at manufacturing and servicing — so this is not a set of products where drillers are likely to compromise. Petrobras tried to give a lot of its new offshore drilling contracts to local firms but basically gave up after experiencing cost overruns, missed deadlines and faulty equipment.

Shares of NOV are running at a 17.5x earnings multiple, which is normal for the industry now and a bit lower than we’ve seen historically. Analysts see potential for long-term operating margins at around 20% to 23% and revenue growth around 13%, as the world’s energy companies replace their rigs. Figure earnings growth will average 15% over the next five years, which is a little higher than the industry. That puts the shares now at slightly undervalued with plenty of room to rise through the rest of the decade.�

Management reported fourth-quarter earnings in early February, and they were great, pushing optimism on 2011 higher. Merrill Miller Jr. has run the company well since 2001, as the balance sheet is in great shape with lots of cash and minimal debt for a company its size. I have recommended NOV many times in the past, and again in late January, and expect it will stay in growth-oriented investors’ portfolios for a long time. �

For more insights like this, check out Jon Markman’s daily short-term newsletter, Trader’s Advantage, and long-term investment letter, Strategic Advantage.

3 Groundbreaking Moments That Built the Modern World

On this day in economic and financial history ...

President Carter signed the Depository Institutions Deregulation and Monetary Control Act of 1980 -- the DIDMCA -- into law on March 31, 1980. Now widely recognized as landmark legislation -- perhaps the single most important legislative change to banking-sector regulations since the New Deal -- the DIDMCA's ultimate impact could not have been known at the time. Here's a list of some of the DIDMCA's key provisions. See if you can spot the ones that would have the greatest impact on America's financial system.

• All depository institutions (banks, thrifts, savings and loans, and credit unions) were required to report to the Federal Reserve -- previously, only about a third of U.S. banks did so.
• All depository institutions were required to maintain reserves of at least 3% for smaller transaction amounts, and up to 14% for larger cumulative transactions (over $25 million).
• Federal Reserve member institutions would have eight years to amass the reserve levels required under the new law (four years for member institutions joining later).
• Any financial institution that deals only with other institutions (bankers' banks, so to speak) would be exempt from reserve requirements.
• Interest-rate ceilings on deposits would be eliminated.
• Checking accounts would be eligible to receive interest on their deposits.
• The functions of savings and loans were expanded to be roughly equal to those of traditional banks, which included making loans, investing in money market funds, issuing credit cards, and the like.
• Federal deposit insurance was raised from $40,000 to $100,000 per account.
• State usury restrictions on interest charged for bank loans were eliminated, and interest was pegged at a level set a certain amount over the Fed's discount rate.
• Lending processes were simplified.

Changes to interest-rate ceilings had a notable effect on the American financial industry. The late '70s had seen a stagflationary economic environment raise both inflation and real interest rates far beyond the interest ceilings then in place. This scenario caused a credit crunch, as depositors sought out market rates of return on their finances, often moving money from savings accounts to investment vehicles. However, other changes combined with the removal of interest ceilings to create problems for later administrations.

The increase in deposit insurance helped create a greater level of risk and moral hazard in the financial system when combined with looser lending restrictions and higher interest rates on deposits. Reassured savers added money to higher-yielding accounts -- particularly those offered by thrifts and savings and loans -- and these deposits swelled the reserves of financial institutions, allowing greater levels of lending. More than 500 new savings and loans were chartered from 1980 to 1986. The removal of interest-rate caps on loan offerings also gave institutions the incentive to provide mortgages and other financial products to riskier borrowers.

You'll recognize these elements as familiar causes of a more recent financial crash, but it wouldn't take long for the effects of risky lending and looser interest rates to cause problems in the 1980s. Within a decade of the DIDMCA's passage, the savings and loan industry was in a full-blown crisis, one that required more than $100 billion in bailouts from the federal government.

However, a greater level of federal oversight and insurance undoubtedly helped swell the holdings of the financial system, which in turn contributed to the enormous wealth expansion of the 1980s and 1990s, as larger reserves were used to finance businesses and homeowners across the country. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) didn't bottom out for another two years -- but once the revamped financial system began to act, stocks were off to the races. The Dow's rise from 1982 to 2000 was by far the greatest period of growth in its history, roughly three times as large (in either nominal or real terms) as even the remarkable gains of the Roaring '20s. The DIDMCA was not solely responsible for this growth -- nor was it the sole cause of the later financial crises -- but its impact on the American financial system is simply too important to overlook.

The dawn of the computing industry
The first UNIVAC was delivered to the U.S. Census Bureau on March 31, 1951. Built by J. Presper Eckert and John Mauchly and sold by Remington Rand (which is now part of Unisys (NYSE: UIS  ) ), the UNIVAC was the first successful purpose-built and mass-produced commercial computer ever sold in the United States. The sale marked the beginning of an American computing industry that would quickly become the dominant force in global high-tech. UNIVAC itself was to prove the value of computing over earlier punched-card systems when it successfully defied conventional polling wisdom in the 1952 presidential election, predicting a landslide victory for Dwight Eisenhower when most pollsters expected Democrat Adlai Stevenson to win the White House.

Between 1951 and 1954, Remington Rand sold 46 of the original UNIVAC systems, but it consistently trailed early industry leader IBM (NYSE: IBM  ) , which boasted a stronger financial position and was able to offer its mainframes at cost, or even for free. IBM soon overtook Remington Rand with its own mass-produced computing machines, and by the mid-1950s, several different IBM mainframes were available on the market. IBM would continue to lead the computing industry for decades to come, while Remington Rand sold itself to Sperry in 1955. Further UNIVACs were developed after the merger, with some models sold well into the 1970s, but they never managed to unseat IBM from its leadership position. Being the first mover doesn't always matter in the fast-paced computing industry.

The age of patented genetics
Ananda Chakrabarty gained the first patent ever issued for a genetically modified organism on March 31, 1981, a year after winning a landmark case on the subject in the Supreme Court. Chakrabarty, a General Electric (NYSE: GE  ) researcher, had developed a bacterium capable of cleaning up toxic oil spills by breaking crude oil into non-toxic substances that aquatic life might harmlessly consume. In proving that his work was the result of scientific modification, Chakrabarty forced the Patent Office, via his Supreme Court victory, to accept the fact that patentable subject matter might include "anything under the sun that is made by man."

The advent of lower-cost genome sequencing has added a new layer of complexity to this argument, as a fifth of all human genes (more than 4,000 of them) were patented by 2005. A new precedent may be required in the near future, as no genes have been modified in novel ways -- they are not, like Chakrabarty's bacterium, "made by man." His bacterium was more groundbreaking in the courts than in the lab, but Chakrabarty continues his research into microbiology to this day. Chakrabarty has since become one of the most decorated microbiologists-cum-genetic-engineers in the world, and today he serves as a Distinguished Professor at the University of Illinois at Chicago College of Medicine.

For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE today. To get started, click here now.

On Humility, and What Forecasters You Should Pay Attention to

Yale economist Robert Shiller has been more right than most of his peers.

In 2000, his book Irrational Exuberance showed in clean detail how the stock market was overvalued. In 2004, the second edition of the book�described how and why the housing market was an accident waiting to happen.

Shiller's background makes him worth listening to. He has the credibility to make forecasts on the economy and financial markets -- a distinction the great majorities of economists lack.

Yet when you listen to him talk, he is perhaps the most hesitant economist in the world. When I interviewed him a year ago, nearly every question was answered with some version of "I don't know," "It's hard to say," "It's just too uncertain," or "That's impossible to tell."

It may seem counterintuitive, but Shiller's hesitancy to forecast is part of what has made him a good forecaster in the past. He is only willing to lay down a firm opinion during periods of wild extremes, when the stars align and the odds of making a good forecast are at their highest. Otherwise, he shrugs his shoulders. That respect for uncertainty sets him, and his record for being right, apart.

Last month, I sat down with Hoover Institute economist Russ Roberts. I asked him how to make sense of forecasts and opinions in a world where smart people are so bad at forecasting -- a world with too few Shillers. Here's what Roberts had to say:

Top Stock Picks Of Best Performing Hedge Fund Managers

We track nearly 400 long/short equity hedge funds. A small proportion of these fund managers had amazing stock picks that returned an average of at least 30% during the first quarter. King Street Capital's Brian Higgins was the best performing fund manager in the first quarter (see the list of best hedge fund managers). We should note that we only took into account a hedge fund's large-cap stock picks . We excluded options and convertible bond positions.

The S&P 500 index returned less than 13% during the first quarter including the dividends. So, how did these fund managers manage to beat the market by at least 17 percentage points. Below you can find the list of top stock picks of these best performing fund managers:

Sears (SHLD) was a top pick for Eddie Lampert, Bruce Berkowitz, and Francis Chou. The stock returned 108% during the first quarter.

Bank of America (BAC) is the second best performing stock in our list. Again Bruce Berkowitz benefited tremendously from Bank of America's 72% first quarter return. Berkowitz has been a long term holder of the stock and was hurt badly last year after BAC's huge decline. However, he deserves credit for his conviction. Billionaire John Paulson sold out his giant Bank of America position during the fourth quarter and missed out on its 72% first quarter performance.

Netflix (NFLX) gained 66% during the first quarter. Technology hedge fund manager John Hurley was among the few who were still bullish about Netflix after its 75% plunge from its 52-week high.

Seagate (STX) also returned 66% during the first quarter. Eddie Lampert, John Hurley, and Jamie Zimmerman are among the hedge fund managers with Seagate positions. David Einhorn has a large position in Seagate too. He didn't make our list but his large-cap stock picks returned more than 24% during the first quarter.

Priceline (PCLN) and Salesforce.com (CRM) are two other technology stocks with more than 50% returns. John Hurley is the only top performing hedge fund manager with positions in these two stocks.

Apple (AAPL) is the most popular stock among hedge funds since the third quarter of 2011 when the stock was trading below $400 (see the 10 most popular stocks). Skeptics have been warning investors to stay away from these hugely popular names because they are likely to experience large declines when hedge funds decide to sell. We have been telling investors that Apple is hugely popular because it is extremely cheap for a high growth stock. The stock returned 48% during the first quarter.

Delphi Automotive (DLPH) is another popular stock in our list. Centerbridge Partners, Anchorage Advisors, and Litespeed Management benefited from its 47% return during the first quarter. Delphi is also a bright spot on billionaire John Paulson's portfolio. He is one of the largest shareholders of the company.

Gap Inc (GPS) returned 41% during the first quarter. Eddie Lampert had nearly $600 million invested in the stock. Francis Chou also had a small position in the company.

The rest of our list is dominated by financial stocks. Warren Buffett says that he attempts to be fearful when others are greedy and to be greedy only when others are fearful (see Warren Buffett's new stock picks). Buffett was among the fund managers who added or initiated new positions in mega-cap banks like Wells Fargo (WFC), JP Morgan (JPM), Citigroup (C), Goldman Sachs (GS), and American International Group (AIG). Wells Fargo gained 24% and the rest of the stocks gained at least 32% during the quarter. Bruce Berkowitz had more than $2 billion invested in AIG. We never liked AIG but we have been recommending mega-cap banks as long-term investments during the darkest days of last summer.

Disclosure: I am long C.

The Length Of The Process Done By A Bankruptcy Lawyer

How long the process which is done by the bankruptcy lawyer Aurora will take actually differs in a great way. This will depend according to the kind one will file. Also, it depends on how fast one gathers information having to do with income and every debt. Many file either the Chapter 7 or 13 type.

The most common one is the Chapter 7 type, and this is often filed if someone has little assets to be protected. In general, the attorney specializing in the field is hired to help in the filing of all needed papers.

A part when having Chapter 7 filed, which consumes much time involves obtaining every information required for the form. Should one owe money to numerous lenders, and it happens that the accounts they have were sold to the collection agencies, a challenge can involve finding out the entity to be paid to.

Often, someone needs to give statements having to do with his income, tax reports, and assets when Chapter 7 is filed. The challenge in finding out all information comes when he did not meticulously keep records.

Lawyers may do some tasks through tracking those who have obtained the debt. These information should be gathered before filing. This is to make the process have no complications.

Typically, should papers become filed officially, one month or two months is the time taken before a particular date can be set for a person to appear in the court. Around that time he appears in courts, with all the documents organized, the status he will have is bankrupt.

If one becomes bankrupt, this signifies the end of every debt, except some of them like the student loans. The maximum time of declaration for Chapter 7, which is handled by the Bankruptcy Lawyer Aurora, is one month until many months pass. When an attorney is already hired, all calls coming from lenders are referred immediately to a legal expert.

You can visit the website http://www.bankruptcylawyersinchicagosuburbs.com for more helpful information about Bankruptcy Lawyer Aurora.

Will Cytec Industries Earn or Burn?

Margins matter. The more Cytec Industries (NYSE: CYT  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Cytec Industries's competitive position could be.

Here's the current margin snapshot for Cytec Industries over the trailing 12 months: Gross margin is 25.9%, while operating margin is 10.8% and net margin is 5.6%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where Cytec Industries has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter (LFQ). You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.

Here's the margin picture for Cytec Industries over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

Here's how the stats break down:

• Over the past five years, gross margin peaked at 24.9% and averaged 23.1%. Operating margin peaked at 9.5% and averaged 8.0%. Net margin peaked at 6.8% and averaged 2.5%.
• TTM gross margin is 25.9%, 280 basis points better than the five-year average. TTM operating margin is 10.8%, 280 basis points better than the five-year average. TTM net margin is 5.6%, 310 basis points better than the five-year average.

With recent TTM operating margins exceeding historical averages, Cytec Industries looks like it is doing fine.

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• Add Cytec Industries to My Watchlist.

Standard Chartered Sinks on Dubai Worries; Materials, Energy, Industrials Are Worst Performers

The banking world is feeling the effect of today’s fear over a potential default on billions in debt by the Persian Gulf state of Dubai. In Particular, London-based Standard Chartered (STAN.L) is believed to have the biggest exposure to the Emirate’s debt among banks, according to a Dow Jones Newswires article this morning. Standard’s common shares on the London Stock Exchange are down $45, or 3%, at 1,469.

Financials as a whole, however, are holding up alright, with the Select Sector SPDR Financials ETF (XLF) down only 2%. The worst group is actually materials, dragged down by the decline in gold, copper, and commodities generally, with the Materials ETF (XLB) off 3.2%. The SPDR energy ETF (XLE) is down about 3.1%, and industrials (XLI) is down 2.7%.

Among oil majors, ExxonMobil (XOM) is down $1.48, or 2%, at $74.99.

Top Stocks For 2/4/2013-17

American Video Teleconferencing Corp. (Pink Sheets:AVOT) is pleased to announce that it has hired a French speaking geologist to search the archives of the Quebec Department of Mines for Rare Earths showings not on a current computer file. The company believes the rare earths industry is where it wants to maintain a very strong focus and is looking to expand its holdings. As neither the Federal nor Quebec Governments have carried out any air borne surveys in this area, the company will seek a contractor to do an air borne Mag-EM radiometric survey. This survey will cover its present holdings and the immediate surrounding area looking for future acquisitions. We are pleased to be working in the Province of Quebec as it is rated the number one jurisdiction in the world to carry out mineral exploration. The Quebec Government gives a rebate up to 45% for property expenditures.

The 17 elements that are classified as “rare earth” have become a more vital part of our day-to-day lives. Rare earth metals are the life blood of modern personal computers, batteries and alternative energies. To illustrate, there are nearly ten lbs of the rare earth element, lanthanum, in just about every Toyota Prius engine. Furthermore, rare earth elements are vital to military technologies. As opposed to the name, rare earth metals are not particularly uncommon and can be found in most continents. In recent weeks the US government has made significant steps to increase production of these metals, since they will have a large part in President Obama’s overhaul of US energy.

Rare-earth minerals consist of terbium, which is used in flat-panel TVs and high-efficiency fluorescent lamps; and neodymium, key to the permanent magnets in high-efficiency electric motors. Rare-earth materials are not all that unusual. The series of nonferrous metals frequently occurs in the environment. According to Design Chain Associates, the majority of rare-earth materials are as common as copper, and even the rarest, is more common than gold.

Part of the market pressure on rare-earth minerals arises from new demand that green technologies has prompted. Industry, including electric- and hybrid-vehicle motors and wind turbines, require magnets.

Zions Bancorp. (Nasdaq:ZION) announced on December 08, 2010 that CB&T associates have raised over $119,000 in support of the United Way in a statewide fundraising campaign. Associates in the branch network of over 100 California offices joined together in fundraising efforts such as payroll deductions, bake sales and raffles. This year�s total surpasses last year�s United Way fundraising amount of $102,680.�

Zions Bancorporation, a multi bank holding company, provides various banking and related products and services in the United States. The company offers community banking services, including small and medium-sized business and corporate banking services; commercial and residential development, construction, and term lending services; retail banking services; treasury cash management and related products and services; residential mortgages; and trust management services.

Cypress Semiconductor Corporation (Nasdaq:CY) introduced on December 13, 2010, the industry�s first radiation-hardened 72-MBit QDR II+ SRAMs. The new SRAMs employ Cypress�s patented RadStop� technology, which enables uncompromised functionality in the face of radiation doses of up to 300 kRads. The radiation hardened QDRII+ SRAMs also deliver outstanding performance, with clock speeds up to 250 MHz and throughput up to 36 gigabits per second (Gbps). These memories enable Cypress to support additional aerospace and defense applications such as weapons systems and satellites.

Cypress Semiconductor Corporation operates as a semiconductor company in the United States and internationally. The company delivers various high-performance, mixed-signal, programmable solutions. Its products include programmable system-on-chip (PSoC) products, capacitive sensing and touchscreen solutions, universal serial bus (USB) controllers, wirelessUSB, CyFi low-power radio frequency, programmable clocks, and buffers.

Mattel Inc. (Nasdaq:MAT) announced on December08, 2010, it has acquired the license for the exclusive, worldwide rights to classic rummy style card game Phase 10� from Fundex Games, Ltd. and in a separate transaction, has acquired the rights to party game favorite iMAGiNiff� from Blue Opal Australia Pty Ltd. �The addition of Phase 10� and iMAGiNiff� strengthens Mattel�s robust collection of leading game brands,� said Lee Ann Wong, vice president Mattel Games Marketing. �These time-tested brands provide fun, affordable and engaging experiences that complement our portfolio of adult-targeted and family-friendly games.�

Mattel, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of various toy products worldwide. Its products include fashion dolls and accessories, vehicles and playsets, and games and puzzles. The company offers its products under various brands, including Barbie, Polly Pocket, Little Mommy, Disney Classics, Pixel Chix, High School Musical, Hot Wheels, Matchbox, Battle Force 5, Speed Racer, Tyco R/C, CARS, Radica, Toy Story, Max Steel, Batman, Kung Fu Panda.

Will Obamacare Carve Up the Restaurant Industry?

Because restaurants typically operate on razor-thin margins, President Obama's signature health-care reform law has largely been criticized by the industry for imposing onerous new costs that will potentially wipe out whatever profits they make.

Under the Affordable Care Act, companies with 50 or more employees have to provide them health insurance if they work 30 hours or more, or else face a $2,000-per-employee penalty. That led many restaurant operators, such as the CEO of Olive Garden and Red Lobster parent Darden Restaurant's (NYSE: DRI  ) , to say worker hours would have be cut to avoid paying for expensive health-insurance premiums.

Binge eating
He was joined in his criticism of the law by other restaurant operators, including pizza-shop chain�Papa John's (NASDAQ: PZZA  ) and burger joints Wendy's� (NASDAQ: WEN  ) ,�McDonald's (NYSE: MCD  ) , and Burger King, all of which are chafing at the law's costs.

While Darden eventually walked back its statement and Papa John's CEO says his comments were misconstrued, others continue to assert there will be real damage coming.

McDonald's, for example, maintains that complying with the law will cost it $10,000 to $30,000 per restaurant, and as of the end of last year the fast-food chain operated more than 14,000 restaurants in the United States. The CEO of DineEquity's Applebee's chain hasn't altered his charge that the chain's New York City store alone would be subject to fines of $600,000 a year if it didn't provide insurance, yet the company faces the prospect of tens of millions of dollars in higher costs across the chain if it does.

Some restaurants have seen individual stores begin to make good on the threat. A Wendy's franchise in Nebraska cut all non-management workers to 28 hours a week, as did a Yum! Brands (NYSE: YUM  ) Taco Bell franchise in Oklahoma. Others, such as burger joint Five Guys, are starting to raise prices, while RREMC Restaurants, a privately held franchisor of several dozen restaurants including Denny's and Dairy Queen, will begin imposing a 5% surcharge on their menu to cover Obamacare costs.

Someone else's problem
Darden may have retreated from its critiques because of the negative publicity it created, while others believe the burden won't be so high because many employees will simply opt to instead pay the $95-a-year penalty for being uninsured. It will be cheaper than paying the monthly premiums associated with the insurance plans companies offer, while others will choose to be covered by the government's Medicaid plan or will sign on to a spouse's policy.

Still, the burden will fall heaviest on the smaller restaurants. McDonald's reported almost $5.5 billion in profits last year, so it can more readily afford to pull its seat up to the table and offer health insurance for its employees. Harder to quantify, however, will be just how many restaurants at around the 50-employee threshold will simply fire a few people to ensure they don't make the cut-off.

Standing in line at the soup kitchen
According to the National Restaurant Association, the average restaurant makes between just $0.02 and $0.06 in pre-tax profits on each dollar of sales. While that doesn't even include all the restaurants that never make a profit and go under, it highlights that the added costs of Obamacare will have to come from one of a three sources: lower profits, higher prices, or lower wages. Maybe a combination of all three, because there's simply little room for restaurants to maneuver.

In the end, the real lasting impact of the Affordable Care Act may not be universal health care coverage, as originally promised, but rather a nation of part-time workers paying more for our meals when we go out to eat. If we can afford to.

Where to profit in health care
When President Obama was re-elected, shares of UnitedHealth Group and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this premium report on UnitedHealth, The Motley Fool takes a long-term view, homing in on�prospects for UnitedHealth in an Obamacare world. So don't miss out -- simply�click here now�to claim your copy today.

3 Health-Care Stories You Should Know

Heading into this holiday weekend, health-care stocks continue to lead the S&P 500 in 2013. But behind the share-price gains is an industry undergoing dramatic changes. While fellow fool Sean Williams recaps the week's biotech and pharmaceutical news, here's a look at the top stories from the other parts of the health-care industry.

Two stories this week displayed the uncertainty that surrounds some forthcoming Obamacare changes. In addition, a Consumer Reports investigation showed which drugstores have the lowest margins on generic drugs.

The Volunteer State and Medicaid
Arkansas' tentative permission to use federal Medicaid expansion money to purchase private insurance led many other states to pursue that route. But the matter's a bit more complicated, and Sarah Kliff reports at WonkBlog that Tennessee has run into opposition from the Department of Health and Human Services.

The problem wasn't the state's desire to use the money for private insurance, but that Gov. Bill Haslam also proposed that the newly eligible Medicaid members should have similar co-pays to others in the health-insurance exchanges. And that could mean the government might spend far more than it would on a traditional Medicaid plan. The HHS remains open to negotiations, but Gov. Haslam seems firm in his proposal.

Tennessee's Medicaid program includes Magellan (NASDAQ: MGLN  ) as its pharmacy benefits manager and counts UnitedHealth (NYSE: UNH  ) and WellPoint (NYSE: WLP  ) as its major insurance backers. So investors for those companies should keep an eye on this story.

Medicare cuts
Turning to the Medicare side of the Affordable Care Act, health plans rose this week on the suggestion that Medicare Advantage rates might see lower cuts than previously announced. Those rates were based on the assumption that Congress will go through with a 25% physician pay cut for next year, which would require the higher insurance rates for balance. But Congress hasn't implemented the pay cut in more than a decade, so the rate cuts haven't been necessary. We'll find out for sure with the final rate announcement on Monday. Humana (NYSE: HUM  ) is overly dependent on Medicare, and shares were up nearly 3% on Wednesday following the news.

Finding cheap drugs
Consumer Reports was out with a study showing which drugstores have the best prices on generic medications. Costco�had the lowest prices, while CVS Caremark (NYSE: CVS  ) had the highest. The publication theorizes that the price difference comes from how much the pharmacy segment means to the overall business. After all, a big-box store like Costco can afford narrower margins on its generics because there's more general store than pharmacy, while CVS is more dependent on its pharmacy to drive the bottom line.

The story of our generation?
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Why WPX Energy Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas and oil explorer WPX Energy (NYSE: WPX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at WPX and see what CAPS investors are saying about the stock right now.

WPX facts

Headquarters (founded)	Tulsa, Okla. (2011)
Market Cap	$2.8 billion
Industry	Oil and gas exploration and production
Trailing-12-Month Revenue	$3.2 billion
Management	CEO Ralph Hill CFO Rodney Sailor
Return on Equity (average, past 3 years)	(8.7%)
Cash/Debt	$153.0 million / $1.5 billion
Competitors	Anadarko Petroleum Apache Chesapeake Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 41 members who have rated WPX believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TMFDeej, succinctly summed up the WPX bull case for our community:

Barron's recently published an interesting article about how the former [Williams Companies (NYSE: WMB  ) ] spinoff WPX Energy will be able to return to profitability even without an increase in the price of natural gas by renegotiating terrible legacy mid-stream contracts that it was saddled with over the next two years. That's just the sort of story catalyst that I like to see.

Any increase in the price of natural gas, which I'm certainly not counting on would be gravy. So would the sale of the company's Argentina assets (yuck).

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, WPX may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Is Molycorp Finally a Buy?

On a day that the Dow Jones Industrial Average set another new record high, shares of Molycorp (NYSE: MCP  ) hit a new 52-week low, closing just $0.12 above its lowest point in the last year. The company has suffered from falling rare-earth prices and the inevitable problem of operating in a market that is 90% controlled by China. Prices for the substances that form the company's stock and trade have seen falling demand as the initial hype over those products has waned in the weak economy.

While there are no obvious catalysts on the horizon, the question for Molycorp has become one of whether the stock is cheap enough to warrant a long-term play. Trying to call a bottom is risky business and not really the Foolish way. With that in mind, I believe shares of Molycorp look attractive between $4 and $5 per share. Essentially then, despite the new low, the stock has room to fall further before it is time to establish a position.

How did we get here?
In the middle of March, Molycorp had two significant events that affected the stock in opposite ways. On the positive side, the company announced a five-year exclusive agreement between Molycorp Advanced Water Technologies and a subsidiary of Univar. Although the specific financial details of the transaction weren't disclosed, the arrangement involves having Univar act as a distributor of SorbX-100, a cerium-based product used in water treatment; the product is sold to North American industrial and municipal wastewater treatment facilities.

The announcement led Brian Lee, an analyst at Goldman Sachs, to comment that the deal "should help quell some investor concerns around excess cerium capacity." He believes the relationship will allow Molycorp to sell the entirety of its phase 1 cerium production by 2015. The announcement led to a 4% pop in the stock.

Unfortunately for shareholders, the news wasn't sufficient to keep the stock headed higher. A disappointing earnings report, made worse by the fact that the company requested additional time before it was ready to report, has weighed on shares. In January, the company told the market that it was significantly lowering its revenue and cash flow projections for the first half of the year; additional stock and bonds would be sold to meet the expected $250 million deficiency in the company's cash needs.

When earnings were finally released, the company reported a net loss of $359.6 million, or $2.91 per share, compared with $0.26 EPS, or $26.6 million, a year earlier. For the most recent quarter, analysts had predicted a loss, after excluding writedowns and one-time items, of $264.3 million, or $0.30 per share. Excluding the charges, actual results were a loss of $0.45 per share.

Looking ahead
One of the factors that led Molycorp to lower its revenue projections was inventories, both internally and with end users; depressed prices have not only created a glut in several key rare-earth materials, but the lack of sales has also hampered price discovery. In an interview, Chief Executive Officer Constantine Karayannopoulos said: "Until the inventories are exhausted and customers have the confidence they can start buying rare-earths from a reliable producer with some visibility on prices, I don't think we'll see large-scale return into the markets." The new CEO, who was hired after a probe by the SEC was announced under former CEO Mark Smith's watch, has helped to begin to restore the company's credibility with investors. He expects that customers will make a meaningful return to the market in the third quarter, making one wonder whether an allocation of capital to Molycorp shares should be considered dead money until then.

One of the drawbacks of investing in commodity companies is that they're subject to the vagaries of the commodities markets as much as to those of the stock market. Unlike gold and silver, which are viewed as safe havens in times of economic turmoil, rare earths remain at the fringe of the market. As such, there is a real chance that the stock will remain stagnant for an extended period. The offsetting consideration is that if Molycorp, and rare earths in general, reverse course, the return potential is dramatic.

While Molycorp may be the standard-bearer for the rare-earth industry, its competitors are facing similar problems. Rare Element Resources (NYSEMKT: REE  ) is also trading just above its 52-week low as well. Unlike Molycorp, however, this company recently supported a strong cash position to go with an significant increase in rare-earth resources available. Avalon Rare Elements (NYSEMKT: AVL  ) , also just above its 52-week low, faces the same struggles that have been created by low rare-earth material prices.

Ultimately, there is a fair element of risk involved in buying shares of Molycorp, but if the stock dips much lower, the potential reward may justify a small allocation. The factor you should remember is that these materials will remain relevant and will eventually return to prominence. It may be early to invest, but over the medium and longer terms, the potential is there.

For a more traditional commodities play, Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has also underwhelmed investors lately, especially after its dramatic 76% dividend cut in February. However, it could now be looked at as a possible value play because of several factors that are likely to remain advantageous for Cliffs' management. For details on these advantages and more, click here now to check out The Motley Fool's premium research report on the company.

The 2013 Fear Gauge Looks Very Different From the 2007 Version

Getty ImagesNo worries.

Stocks may be returning to record levels, with the S&P 500 crossing above its 2007 closing high, but the VIX is signaling that they are doing so in a much different environment.

As stocks climbed to records in the fall of 2007, the market�s so-called fear gauge had already been showing signs of worry for months.

On July 26, 2007, the VIX moved above 20 for only the fifth time in the previous 3.5 years as junk bonds were selling off. On July 10, Standard & Poor�s had said it was reviewing $12 billion worth of subprime mortgage-debt for possible downgrades. On Aug. 15, the VIX broke 30 for the first time in 4.5 years amid additional worry as lender Countrywide Financial faced more foreclosures and delinquencies.

The shift higher in the VIX came after the fear gauge averaged just 12.81 in 2006. In 2007, that average climbed to 17.54, before soaring to 32.66 in 2008.

But now, the VIX is moving in the opposite direction. In 2012, it averaged 17.80. So far this year, that number is just 13.54,�suggesting investors are worry free this time around.

For more MarketBeat and other streaming markets coverage from The Wall Street Journal, point your mobile browser to wsj.com/marketspulse.

The Internet Is More Vulnerable Than You Think

Most of the time, the Internet flows like water or electricity. But disruptions do happen, and last week brought a big one when an as-yet unidentified group attempted to take down the servers of European anti-spam group Spamhaus by slamming them with as much as 300 gbps of bogus traffic.

According to multiple reports, the digital onslaught -- known in tech parlance as a distributed denial of service, or DDoS, attack -- is the largest on record, and affected performance across the continent. Akamai Technologies (NASDAQ: AKAM  ) , whose Kona security service is built to deflect Internet threats, was among the first �to report the dramatic rise in Web traffic in Europe.

Other reports said that worldwide sabotage of some undersea cables may be playing a bigger role in the European slowdown. Either way, the Internet is more vulnerable than any of us would like to admit, and we need to be investing accordingly, says Tim Beyers, of Motley Fool Rule Breakers and Motley Fool Supernova, in the following video.

Do you believe cloud computing providers have done enough to account for the known frailties of the Internet? Let us know where you stand �in the comments box below.

Too skittish to bet on airy Internet stocks? The Motley Fool's chief investment officer has taken from a classic, earthy industry for his No. 1 stock for this year. Find out which it is in the brand-new free report, "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

These Top-20 CEOs Give You an Investing Edge

Once you get the hang of it, it's pretty easy to dissect balance sheets, income, and cash flow statements. This is the first step in getting your feet wet in the investment world.

But it doesn't stop there. If we were to base investing decisions solely on what we read in these statements, that would be akin to picking a significant other based solely on their Facebook�profile -- to many, it just doesn't make sense to avoid real-life interaction.

Investigating these "soft" aspects of a company is�important for investors. And although we can't capture all of the intangibles of a company in one article, Glassdoor.com -- a website that collects employee sentiment for companies across the world -- recently came out with a list that could help: The Top CEOs of 2013.

Below are the CEOs rated No. 20 through No. 16. Read below and I'll give some more detail, and at the end, offer up a special premium report on one of these five.

No. 20: Intuit (NASDAQ: INTU  )
As tax season is winding to a close, millions of Americans are using one of Intuit's key products: TurboTax. It just so happens that Intuit's CEO, Brad Smith, used to head the division that produces TurboTax.

Smith, who has been with the company since 2003, also has experience managing the other side of Intuit's business: From 2006 until he became CEO in 2008, he was a general manager in Intuit's small businesses division, which offers Quicken accounting products to more than 7 million small companies.

Smith believes that Intuit's strategy moving forward will be three-pronged: penetrating deeper into traditional tax and small business markets, focusing on emerging markets, and generating a greater mix of services.

Apparently, Intuit employees tend to agree with this blueprint, as 91% approve of the job he's doing.

No. 19: NetApp (NASDAQ: NTAP  )
For those who might be unfamiliar with the company, NetApp is a specialist in network storage solutions; in other words, it helps save, store, and maintain complex networks of information online. NetApp's CEO, Tom Georgens, has been with the company since 2007, and has served in the role of CEO since 2009.�

Under Georgens tenure, NetApp increased revenue 59% between 2010 and 2012, with net income increasing by 51% over the same time frame. Georgens has stated that these growth rates aren't from focusing on a specific dollar target or worrying about macro issues, but rather by looking to gain "a point, a point-and-a-half a share every year."�The plan seems to be working, and Georgens' employees appreciate that, giving him a 91% approval rating.

No. 18: Intel (NASDAQ: INTC  )
This behemoth micro-chip maker is one of the few in its industry that attempts to keep the whole process of design and fabrication in-house. That's long been the case at Intel, and CEO Paul Otellini has continued the tradition since becoming CEO back in 2005.

Otellini has been with the company since 1974, working his way up through the ranks. Though the company had a fairly dominant position in the PC market, that market has been stagnating, leading many to wonder if Intel was late to the game in mobile computing.

Apparently, employees at the company have faith that Otellini and Intel will find a way to become just as relevant in the mobile market, as 91% currently approve of the job he's doing. Incidentally, the company was ranked the 31st�best place to work in America in 2013 by Glassdoor.

It's important to note, however, that Otellini is set to retire in May.� His replacement has yet to be announced, and investors need to take that into consideration in weighing the strengths of the company.

No. 17: American Express (NYSE: AXP  )
CEO Ken Chenault has been the leader at American Express since 1997, but had worked his way up through the ranks for 16 years prior to earning the designation.�

Although both Visa�and MasterCard�experienced more growth over that period, American Express focuses on a much tighter band of clientele -- although that will soon be changing with its prepaid cards.

Since seeing default rates rise post-recession and its stock take a stumble, American Express was actually the Dow's best-performing stock since 2009, rising over 550%.� That's great for investors, but employees appreciate the job Chenault has done, too: He's earned a 92% approval rating.

No. 16: Starbucks (NASDAQ: SBUX  )
Howard Schultz is the founder and CEO of Starbucks -- and I'm personally a big fan. Though he built the company and ran it from the 1980s until 2000, Schultz took an eight-year hiatus from 2000 to 2008 to pursue other interests, like owning the Seattle SuperSonics of the NBA.

There are a number of reasons Schultz's employees may have put him on the list. During the financial crisis, he refused to cave to Wall Street pressure to eliminate generous health insurance plans for baristas; he was able to help refocus the company after it expanded too far while he was gone; the company now focuses on bringing in fair-trade and organic coffee from third-world countries; and he's been outspoken for bashing the way money influences politics -- refusing to support any candidate until the country gets its finances in order.

Overall, 92% of Schultz's employees approve of the job he's doing, and this year, the company was also named one of the top 50 places to work by Glassdoor.

But getting back to Intel...
When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this�premium research report on Intel, our analyst runs through all of the key topics investors�should understand�about�the chip giant. Click here now to learn more.

Top Stocks For 3/28/2013-9

 

Corporate Universe Inc. (Pink Sheets:COUV) is pleased to announce the following corporate and operational matters to its shareholders and followers.

COUV has opened its new corporate office at 3771 Nesconset Highway, South Setauket, NY, effective October 4, 2010. The new office will allow the Company to operate all of its divisions and subsidiaries in a centrally located place. Manhattan Transfer Registrar Company will continue to be located in Miller Place.
Now that the corporate changes are fully implemented, including the name change to Corporate Universe Inc., trading under the symbol (Pink Sheets:COUV), and the forward split of 10 new shares for each old share of common stock, the company is ready for business and intends to keep its followers advised on a timely basis.
COUV corporate website, has officially been launched. The management will continue to update and improve it over the coming weeks.

John Ahearn, President, stated, “In a few short weeks we have made great strides in getting our company reorganized and moving forward. I believe that many great things are in store for Corporate Universe Inc. in the future and all of us are working very hard and diligently to make it happen. As part of our growth strategy COUV intends to grow the company both organically and through mergers of successful companies in our business industry or business space.

Crown Equity Holdings Inc. (OTCBB:CRWE) is pleased to announce its joint venture with Communication Expert Corporation.

The cornerstone of Crown Tele Services Inc. strategy is to meet the highest standards when it comes to delivering VoIP (Voice over Internet Protocol) communications solutions specifically designed to meet the business and residential market needs.

“We are excited to be partnering with Communication Expert Corporation,” said Kenneth Bosket, President of Crown Equity Holdings Inc. “As part of this joint venture we look forward to building an outstanding team to develop and deliver voice and video VoIP services globally.”

According to ABI Research, the latest global business VoIP services forecasts show that the value of the overall market, which includes VoIP integrated access, SIP trunking, hosted IP-PBX/IP Centrex and managed IP-PBX services, is set to double over the next five years, to exceed $20 billion by 2015.

Crown Equity Holdings Inc. announced in June of this year its 1- 10 forward stock split, as well as in August announcing that the company had surpassed One Million dollars (1,000,000) in sales. The company is utilizing today’s technology to advertise and market public companies globally. CRWE’s proprietary network technology allows their publishing department to get their content to millions of readers daily across the world. CRWE publishes financial content to all the major countries and covers all the accredited stock exchanges. The goal for 2010 is to have all CRWE’s clients’ press releases, articles and news content published in every major financial country’s native language.

BB & T Corp. (NYSE:BBT) announced the addition of four professionals to its Fixed Income Trading operation. Peter Faherty joins BB&T as the head of Mortgage Securities Trading. Stationed in New York, Faherty brings nearly 20 years of mortgage securities experience to BB&T�s Fixed Income Division. Jim DePierro and Stephanie O�Neill have both joined BB&T�s Corporate Trading Desk in New York. DePierro brings 24 years of experience in securities trading with various Wall Street firms to BB&T. O�Neill, who joined BB&T�s Capital Markets Fixed Income Sales team in 2007, has been named to the corporate trading desk.

BB&T Corporation operates as the financial holding company for Branch Banking and Trust Company that provides banking and trust services to small and mid-size businesses, public agencies, local governments, and individuals in the United States. It accepts various deposit products, including noninterest-bearing checking accounts, interest-bearing checking accounts, savings accounts, money rate savings accounts, certificates of deposit, and individual retirement accounts.

Barclays PLC (NYSE:BCS) announced the first forward trade of Carbon Allowances created under California�s Cap-and-Trade program, the California Climate Solutions Act (also known as Assembly Bill 32 or AB 32). Under the terms of the groundbreaking trade, California Carbon Allowances (CCAs) guaranteed to be usable for compliance under AB 32 will be delivered in December 2012. The CCA trade was documented under the Barclays Capital Carbon Allowance Forward Trade Agreement (CAFTA), developed in partnership with NRG Power Marketing, a subsidiary of NRG Energy, Inc.

Barclays PLC provides financial services in Europe, the United States, Africa, and Asia. It offers retail and commercial banking, credit cards, investment banking, and wealth management services. The company�s products include current account and savings products, Woolwich branded mortgages, general insurance, unsecured loan and protection products, commercial loans, installment finance, credit cards, and bancassurance products.

Ivanhoe Mines Ltd. (NYSE:IVN) announced the appointment to the Ivanhoe Mines Board of Directors of Robert B. Holland III, a Dallas, Texas, oil executive and former United States Executive Director of the World Bank. Mr. Holland will serve as a non-executive, independent member of the Ivanhoe board, effective immediately, filling a vacancy created by the retirement of Robert Hanson after more than a decade as a member of the Ivanhoe Mines Board of Directors.

Ivanhoe Mines Ltd., through its subsidiaries, operates as a mineral exploration and development company. The company�s principal mineral resource property is the Oyu Tolgoi copper and gold mine development project located in southern Mongolia. It also holds interests in the Ovoot Tolgoi Coal project located in Mongolia; the Cloncurry project in Queensland, Australia for the exploration and development of molybdenum, rhenium, copper, gold, and uranium; and the Kyzyl gold project located in Kazakhstan. The company was formerly known as Indochina Goldfields Ltd.

Buy, Sell, or Hold: Zagg

When considering any stock for your portfolio, don't be swayed by just the positives. Examine its pros and cons, and decide whether its possible upside outweighs its risks. Let's take a look at ZAGG (NASDAQ: ZAGG  ) today, and see why you might want to buy, sell, or hold it.

Launched in 2005�and based�in Salt Lake City, ZAGG is a technology-focused company, known for its accessories for mobile devices. These include keyboards, ear buds, mobile power devices, headphones, cleaning tools, and protective coverings. Its brands include invisibleSHIELD, ZAGGskins, ZAGGbuds, ZAGGkeys, iFrogz, Aminatone, Caliber, Earpollution, and more.

ZAGG sports a market capitalization near $233 million. Its stock is down about 31% over the past year and over the past five years, it has averaged an impressive annual gain of roughly 59%.

Buy
A key reason that ZAGG might pique your interest is its connection to the mobile-device market, which is growing at really, really rapid rates. Already, there are nearly 7�billion mobile subscriptions. (That's on a planet that's home to about 7 billion people. Of course, billions are still mired in poverty, but other billions apparently have multiple accounts.) Meanwhile, smartphones are growing in popularity, and recently made up just one-quarter�of all mobile phones. If a company serves such a market, it clearly has much potential.

Check out some of ZAGG's numbers, too. Its revenue, for example, has been growing explosively, at double-digit rates. (That rate has been slowing in recent years, though.) Its free cash flow has turned positive, and recently jumped significantly, too. ZAGG has more long-term debt than cash, but its debt has been falling. In its fourth-quarter report, its revenue grew 30%, and backing out a charge, it was profitable beyond expectations, as well. Management also offered rosy projections for 2013.

Given the company's growth rates, ZAGG's rough valuation seems compelling, too, with a recent P/E ratio of 16.5, and a forward P/E of just 6.5. The valuation seems low enough that company plans to buy back shares seem sound.

Meanwhile, the company is not standing still. It's expanding with recently introduced gaming accessories�-- though the gaming industry is going through a transformation, with mobile gaming growing at the expense of physical game content. It has also been on the lookout for smart acquisitions, buying fellow accessory maker iFrogz in 2011. It's good that the company is diversifying away from what was its main offering, its screen protector. But that item delivered the richest profit margins, so diversification hurts some.

Sell
ZAGG's financial statements offer a few red flags. While its revenue has been growing, for example, its net income recently moved in the other direction.

One problem for ZAGG is that it doesn't have a strong competitive moat to protect it. Its customers are generally not locked in to it in any way. They can buy their next ear buds from someone else. Some view its offerings as becoming commoditized, too, as they face more competition. Corning�is likely to hurt ZAGG's protective-screen business, with its ever stronger glasses for mobile-device screens. (Its Gorilla Glass has been a huge success and up next is flexible glass for a variety of applications.) Apple, too, can cause big headaches simply by including some of the accessories that ZAGG supplies with its products. The iPad 2, for example, came with a cover. (The market for Apple accessories was recently estimated at more than $2 billion -- and growing.)

Share dilution is another worry, with the company's share count having risen about 50%�over the past few years. That's often not good for shareholders, though if the money raised by new shares is deployed very productively, it can be worthwhile. ZAGG is keeping its dilution in check to some degree via share buybacks.

If you find yourself with doubts about ZAGG, you're not alone, as it's heavily shorted, with more than 30%�of its shares outstanding recently shorted.

Hold (off)
Given the reasons to buy or sell ZAGG, it's not unreasonable to decide to just hold off on it. You might want to wait for the company's earnings to grow at a good clip for a few quarters, or for it to reduce its debt more.

You might also check out some other interesting mobile-device-related companies, to see if they seem like better bargains than ZAGG. Perhaps take a look at Qualcomm (NASDAQ: QCOM  ) , with a dominant position in mobile chips and also holding a valuable patent library. In a show of confidence, Qualcomm recently hiked its dividend by 40% (it will now yield around 2.1%) and is introducing compelling and innovative new chips.

Or consider NVIDIA (NASDAQ: NVDA  ) , once known as a graphics company and now shifting much attention to the mobile realm, where it's competing ably with Qualcomm and others. The company's impressive high-performance Tegra 4 processor seems well positioned to serve both smartphones and tablets, due to NVIDIA splitting it into two lines. The company is also working on cloud-based gaming products, among other things. It, too, pays a dividend, recently yielding 2.4%.

The verdict
I'm holding off on ZAGG for now. Everyone's investment calculations are different, though. Do your own digging and see what you think. The company may perform spectacularly in the coming years, but remember that there are plenty of compelling stocks�out there.

NVIDIA was ahead of the curve launching its mobile Tegra processor, but investing gains haven't followed as expected, with the company struggling to gain momentum in the smartphone market. The Motley Fool's brand-new premium report examines NVIDIA's stumbling blocks, but also homes in on�opportunities that many investors are overlooking. We'll help you sort fact from fiction to determine whether NVIDIA is a buy at today's prices. Simply�click here now�to unlock your copy of this comprehensive report.

Talking to Clients About Turmoil: Evensky, Cortazzo, Springer & More—a Slideshow

During the markets and economic crisis of 2008-2009, research, and anecdotal evidence, revealed that the best advisors communicated often and in different ways with their clients. Their intent was to educate and commiserate, but the result was keeping clients invested in the market and reminding them that they had committed to a financial plan designed to protect their assets regardless of the fluctuations of the overall market and to help them reach their goals.

In the wake of the turmoil in the Mideast and the tragic earthquake, tsunami and nuclear plant crisis in Japan, the world’s third-largest economy, the AdvisorOne editorial team asked some leading advisors to share with their peers what they’re communicating to clients now, how they communicate, and what changes, if anything, they’re making to client portfolios.

We talked to Harold Evensky, Keith Springer, Mark Cortazzo, Mike Patton, Ben Warwick and others. Their thoughts and client communication strategies at this time of volatility are related on the pages following.

 

At times of crisis and market volatility, the best advisors reach out to their clients proactively. That’s the case with the five leading advisors that AdvisorOne editors contacted to hear what they’re telling clients now, and how.

HAROLD EVENSKY
Evensky & Katz

While there hasn’t been a spike in client calls in to his firm due to the crisis in Japan, reports Harold Evensky, founder of the RIA firm Evensky & Katz Wealth Management, he is reaching out to let them know that they “are monitoring” the unfolding situation in Japan and “talking to money managers to see what they are thinking.” 

“Things are up in the air; until there’s a solution, or containment, there’s nothing to do. I don’t recommend changes in the portfolio,” he says. The firm abides by Evensky’s “five-year mantra” in which “everyone has plenty of liquidity built up,” for five years of expenses—because anything “less than a market cycle is not enough.” But for those clients who are feeling uneasy, they can lighten up short-term fixed-income positions, adding a bit more cash for “psychological liquidity.”

While clients are not calling for the most part, Evensky says, “The key is, that’s great—let’s get to them before they call us.” —Kate McBride

Read here a more complete version of Evensky’s thoughtson communicating with clients and portfolio building in crisis.

 

At times of crisis and market volatility, the best advisors reach out to their clients proactively. That’s the case with the five leading advisors that AdvisorOne editors contacted to hear what they’re telling clients now, and how.

KEITH SPRINGER
Springer Financial Advisors

When it comes to communicating with clients over any concerns they might have about the markets and the economy, or the impact of disasters like Japan or the turmoil in the Mideast, Springer says “I like to answer the question before it’s asked.”

Springer, the founder and president of the RIA firm Springer Financial Advisors in Sacramento, Calif., says he doesn’t “react to events unless they have a consequence,” and in his judgment, the events in Japan “will not have an effect on worldwide demand for goods and services; it won’t change.” 

In fact, Springer views the Japanese earthquake and its after-effects as positive for the Japanese economy, at least in the short run, while acknowledging the tragic nature of the events for the people of Japan. “Now they have an excuse for borrowing and spending,” he said in a Wednesday interview, referring to the Japanese government and its central bank.

In reaching out to regularly to clients through e-mail, Facebook and through his blog, Springer is informing clients that he’s “aware of what’s going on; that I have an opinion” on these economic and market events. “They know I’m not going to be perfect, but I’ll be damn close.” When informed that some advisors contacted for this article said they hadn’t reached out to their clients to educate or console over the recent events in Japan and the Mideast, he said that “most advisors are pretty much wimps; you don’t wake a sleeping dog.”

His conclusion on Japan? “It’s not the beginning of a stock market debacle like we had in 2008-2009.” —James J. Green

 

 

At times of crisis and market volatility, the best advisors reach out to their clients proactively. That’s the case with the five leading advisors that AdvisorOne editors contacted to hear what they’re telling clients now, and how.

MIKE PATTON
Integrity Wealth Management

Patton sends out a monthly newsletter to clients by e-mail that includes his take on the markets and the economy, but “at times like this, I communicate more often,” Patton said in an e-mail message on Tuesday.

Patton, who blogs for AdvisorOne weekly on practice management issues and writes regularly for Investment Advisor on his Road to Independence, sent out a message on Tuesday to clients of his RIA firm Integrity Wealth Management in Baton Rouge, La., whose title was timely and to the point: “Important News About Japan and Your Portfolio.”

From the conflicts in the Middle East to the state's budget crisis to the devastating earthquakes in Japan, there is no shortage of headline news. The story in Japan is very sad indeed. To compound the problem, Japan has been in an economic recessionary environment since shortly after its stock market bubble burst in 1989.

Japan did much the same as we did: they reduced interest rates and printed money (QE). When the printing was engaged, their market went up. However, when they stopped the presses, their market fell again.

The newsletter asks, “What may happen from here? Well, Japan will certainly need a lot of money to rebuild. This money could come from one of three places: donations, selling Japanese bonds, and/or printing money.” His conclusion: Printing money “is where Japan will find the money to rebuild.”

He concludes, “When an event such as this occurs, fear immediately grips the marketplace and the price of most everything declines. Then, after the fear subsides and people come back to rational thought, prices will rise again...in some sectors. In short, there will be great entry points for those looking to buy...again in certain areas.” —James J. Green

 

 

At times of crisis and market volatility, the best advisors reach out to their clients proactively. That’s the case with the five leading advisors that AdvisorOne editors contacted to hear what they’re telling clients now, and how.

BEN WARWICK
Aspen Partners
and QES

Warwick, the CIO of Aspen Partners and QES in Denver, says he has been “communicating lots more” with clients in the wake of the Japan disaster and the ongoing events in the Mideast. One of the ways he does communicate with clients is by informing them by e-mail each time he posts a blog on AdvisorOne, and he’s been blogging several times a week since these tragic events have been unfolding.

Moreover, Warwick, who also comments monthly to AdvisorOne readers through his index newsletter, Searching for Alpha, is writing a longer think-piece on these events  and how they “affect our investing style” that he will send to clients, and promises to share with AdvisorOne readers, by next week.

His blog from March 16 puts his thoughts succinctly:

• The S&P 500 index is about 5.5% off its Feb. 19 high, which may potentially make the sell-off an opportunity to put more risk in the portfolio if the major indices continue to trade lower.
• There should be improved economic growth due to the rebuilding in Japan, but it will not show up until Q3 or Q4 2011; infrastructure damage (especially to the power grid and transportation) must be stabilized first.

His posting concludes with the argument that “The most rational plan in our view is to let the selling take its course, with the mindset of rebalancing toward more risk-based valuation shifts and other factors. I think the adjustment process is days, not weeks, away from implementation.” —James J. Green

 

At times of crisis and market volatility, the best advisors reach out to their clients proactively. That’s the case with the five leading advisors that AdvisorOne editors contacted to hear what they’re telling clients now, and how.

JEREMY WELCH
Burton Enright Welch

Call it serendipity, but San Francisco-based Burton Enright Welch began underweighting Japan well before the onslaught of the latest crisis. It makes client conversations much easier, as the portfolio is inoculated from potential effects.

“As a firm, we’re heavily diversified,” said Welch, one of the firm’s partners. “We were conservative on Japan before the crisis because they have a debt-to-GDP ratio that would embarrass Greece or Portugal. They have an aging population, so the spending can’t continue."

"They’ve gotten away with it until now because the country has a high savings rate. The 'we’re in this together' mentality meant that many citizens didn’t mind giving more to the government to foster spending. But with their approaching ‘age-wave’ that can’t continue. They’ll have to rein it in, and it will hurt.” —John Sullivan

 

At times of crisis and market volatility, the best advisors reach out to their clients proactively. That’s the case with the five leading advisors that AdvisorOne editors contacted to hear what they’re telling clients now, and how.

MARK CORTAZZO, Macro Consulting Group

“In 2008, when the entire world was down, diversification wasn’t a mitigating factor in downside protection,” says Cortazzo, senior partner with Parsippany, NJ-based MACRO Consulting. “But with this type of event driven issue, like with Russia in 1998 and the emerging market downturn, it’s a case when diversification works.”

MACRO Consulting was never all that bullish on Japan, so client conversations in the wake of the crisis haven’t been a serious issue (for instance, the firm is allocated to an Asia fund that excludes Japan).

“Some companies will be hurt by the crisis; but Japan’s construction sector, obviously, will do very well,” Cortazzo says. “It an adaptive and vibrant culture, so despite its aging population and debt issues, they should come out of this okay.”

One area of concern however, is the country’s tendency towards secrecy and a lack of transparency, something currently illustrated in the handing of the nuclear reactor damage.

“As a foreign investor, that’s problematic,” Cortazzo says. “I can handle bad news. I can adjust and incorporate bad news, but I have to first know what it is. The uncertainty [this lack of transparency] creates is worse than any news that might come out of the country. The U.S endured a tremendous amount of bad news, but we largely ripped the bandage off and dealt with it. The result is a doubling of the S&P 500 in the quickest amount of time since its inception.” —John Sullivan

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(All main photos by The Associated Press)

Q1 2013: Pretty Darn Good (Though Not For Cliffs, Penney or Apple)

The Dow Jones Industrial Average rose 11.25% in the year’s first quarter, a period in which it broke an all-time high dating back to 2007. �It was also the best Q1 performance in 15 years, since the benchmark rose 11.27% in 1998, and was the best quarterly performance since the fourth quarter of 2011, according to WSJ Markets Data Group.

The Standard & Poor’s 500 index also set a record closing high (though is still short of its intraday record) — but only just, breaking the the 2007 mark on the quarter’s last day of trading. Somewhat weighed down by Apple (AAPL) — which fell 17% in the quarter — the index lagged the Dow in Q1, producing a 10% gain, which is actually worse than last year’s first quarter, which saw the S&P rise 12%.

Among the winning stocks on the S&P 500 this year are Netflix (NFLX), up 104%, and Best Buy (BBY), up 87%. The biggest losers are Cliffs Natural Resources (CLF), down 51%, and J.C. Penney (JCP), which has lost 23%.

Opinion: Laffer and Moore: The Red-State Path to Prosperity

You can tell a lot about prosperity in America by observing the places people are moving to and where they are packing up and moving from. New Census Bureau data on metropolitan areas indicate that the South and the Sunbelt regions continue to grow, while the Northeast and Midwest continue to shrink.

Among the 10 fastest-growing metro areas last year were Raleigh, Austin, Las Vegas, Orlando, Charlotte, Phoenix, Houston, San Antonio and Dallas. All of these are in low-tax, business-friendly red states. Blue-state areas such as Cleveland, Detroit, Buffalo, Providence and Rochester were among the biggest population losers.

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Some Numbers at G&K Services that Make Your Stock Look Good

There's no foolproof way to know the future for G&K Services (Nasdaq: GK  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like G&K Services do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is G&K Services sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. G&K Services's latest average DSO stands at 38.1 days, and the end-of-quarter figure is 39.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does G&K Services look like it might miss its numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, G&K Services's year-over-year revenue grew 5.6%, and its AR grew 4.2%. That looks OK. End-of-quarter DSO decreased 1.3% from the prior-year quarter. It was up 2.5% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Looking for alternatives to G&K Services? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

• Add G&K Services to My Watchlist.

LeapFrog: A jump from toys to education

Imperial Capital was out with a bullish note on LeapFrog (LF) after its analysts met with management in Los Angeles.

"LeapFrog has a relatively new management team that has altered its strategy from being primarily a toy company to an emphasis on becoming the leading educational entertainment content provider," analyst Lee Giordano wrote. "Its singular focus on educating kids in the 3-8 year old age range represents an attractive market niche."

The analyst is looking for high-digit sales growth and for margins to improve after this year due to a greater emphasis on software and from sales leverage. Giordano noted that the company should support over 800 pieces of content by the end of this year. Giordano has an "outperform" rating and $13 price target on the stock.
The key for LeapFrog at this point is trying to convince investors that it's an educational content company and not a toy company riding one strong product, which in this case is the LeapPad tablet. Management clearly believes this, and is working to bolster its content both on the LeapPad and off it.

Nonetheless, in the near term, the success of the LeapPad and related content for the device is going to drive sales, and on that front, we remain positive that it will continue to be the No. 1 selling kiddie tablet in the U.S. given the great lengths it goes to provide both educational and entertaining content for children, all of which is developed or selected by a qualified child development expert.

The international market is a good potential growth opportunity, and we concur that ESL could be a big market. Many countries around the world teach English at an early age, so this could be a pretty big market.

LeapFrog is still going to have to change investor perception, but if it can, then this is a very cheap stock that has a lot of room to the upside.

We also think it could be an attractive takeover candidate for a larger toy company like Mattel or Hasbro, as well as private equity. We rate LeapFrog a "Buy" with a $12 target.



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Microsoft Prepares to Go Blue

For months, investors have been hearing about a mysterious internal project within Microsoft (NASDAQ: MSFT  ) code-named "Blue." The initiative represents a major shift in the way that Microsoft strategically approaches software updates -- one that's reminiscent of how its rival from Cupertino does things.

Two peas in a pod
For decades, Microsoft's flagship Windows business has seen major upgrades typically every two years, and each time consumers looking for the latest and greatest (without upgrading their hardware) could potentially have to pay over a hundred dollars to get the newest version of Windows. In contrast, Apple (NASDAQ: AAPL  ) pushes out smaller, more incremental upgrades at much lower price points.

The big difference there is that Microsoft is a software business, so the company has always wanted to keep prices as high as possible, whereas the Mac maker sells integrated packages of hardware and software so it could generate its margin elsewhere.

Save the date
Yesterday, the software giant set official dates for its Build developer conference, which will take place in June at the Moscone Center in San Francisco. Microsoft is bringing the battle right to Apple's doorstep, since the Mac maker's own developer conference, WWDC, usually takes place at the Moscone Center in June each year.

Last year's Build conference took place on Microsoft's home turf in Redmond, but the year before was in Anaheim, Calif. Build 2011 was a particularly notable conference, since that was when Microsoft officially unveiled Windows 8 for the first time, giving developers a sneak peek ahead of public release.

The company also finally acknowledged the existence of Blue yesterday, simply referring to the project as a set of plans to advance its devices and services. To date, that's as much official detail that investors have gotten regarding Blue outside of speculation and rumors.

And speaking of speculation and rumors...

Blue incoming
The Verge reports that Microsoft is indeed preparing to show off a public preview version of the next iteration of Windows, with sources calling it a "milestone preview" of Blue.

There have been some early leaks on some of the tweaks in Windows Blue (which won't officially be named Blue once it's released), and Microsoft is also building up a handful of new first-party apps. Blue is also expected to implement tighter integration with some of Microsoft's cloud services such as Skydrive. Search will also play a larger role, with the Bing team pitching in.

The price is right?
The biggest unknown and most important aspect for investors will be pricing. The whole idea if incremental upgrades is that they shouldn't cost as much, but Microsoft could make up for this with frequency.

Ahead of the Windows 8 launch, Microsoft had detailed an upgrade promotion for $40 (that has since ended). Buyers of relatively new PCs could get the new operating system for just $15. The company had also reportedly been offering discounts to OEMs to incentivize smaller touchscreen form factors. Those moves show that the software maker is willing to be more aggressive when it comes to pricing.

If investors look at what Apple has been doing on the pricing front in recent years, the iPhone maker has also been getting more aggressive to ensure quick uptake of its latest operating systems. Snow Leopard was priced at $29 in 2009, followed by Lion for the same price in 2011. Mountain Lion was let loose in 2012 for just $20.

Since Microsoft is clearly looking to pursue an Apple-esque strategy with software updates, it stands to reason that $100-plus Windows upgrades may be a thing of the past, and that Windows Blue may only cost $20 to $40 or so.

Feeling blue
Coming off the biggest product launch in years, Microsoft could be preparing to pursue an even bigger strategic shift by realigning the product cycle of one of its most important businesses (Windows generated over a third of operating income last quarter).

The uncertainty regarding Blue is a risk factor to Microsoft's flagship product. Will Windows Blue make investors feel blue?

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Hedge Funds Like This Energy Company

Investors that might be interested in the purchasing habits of the so-called professionals can glean some insight by examining 13-F filings. Now, while 13-Fs typically are released a bit later than the activities they record, they can offer a nice starting point for research.

During the fourth quarter of 2012, it appears that energy companies were not the belles of the ball. Anadarko Petroleum (NYSE: APC  ) was really the only widely purchased energy company, almost comparable to the popular companies in the technology and banking sectors. In the following video, Motley Fool analyst Taylor Muckerman breaks down why he thinks this company was the chosen one from the energy space.

But which one has Warren Buffett been purchasing lately?
National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine if it could be a good fit for your portfolio, you're invited to check out The Motley Fool's premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor's resource, simply click here now to claim your copy.

Muni-Bond Tax Exemption Under Active Attack -- May Be Limited In 2013

This week's municipal bond analyst conference focuses on continuing efforts by the President and Congress to reduce tax exemption for municipal bonds.

The President has proposed capping the tax benefit of municipal bonds at 28%, which is in effect a tax on muni interest in an amount up to the difference between the maximum ordinary tax rate an 28%.

Apparently, some others are seeking to deny tax exemption on new muni bonds.

According to Bond Buyer Magazine, federal tax exemptions from muni bonds totaled $258 billion over five years. By comparison, tax exemptions for employer provided health care totaled $725 billion, and home mortgage deductions totaled $464 billion over five years.

We have written and warned about this possibility in the past. The disruption to municipal finance and many portfolios and to market values of outstanding muni bonds could be substantial.

Existing bonds would fall in value. Municipal financing costs would rise, as investors require more yield to make up for lost tax benefit. Fewer municipal projects would be funded, or local property and income tax rates would rise, with other knock-on effects.

Build America style bonds would probably be restarted to help municipalities bridge the change -- but that is a case of "hello, we are from the government, and we are here to help".

Build America bonds give the Federal government some say over which municipalities get help and for which types of projects -- more federal control of local priorities, and how we live -- more centralized government -- less state independent decision making -- more political favoritism and mismanagement of priorities.

An enlarged and permanent BAB program would probably create financing advantages for urban areas over rural areas, due to federal funding where votes can be found ("bought"). Higher financing costs for rural areas, due to higher costs of traditional muni issuance and less ability to get Build America funding, would drive up cost of living outside of cities.

Overall more BAB is more government. More government means less freedom.

In a speech to the muni bond analysts this week, Mary Miller of the Treasury Dept. said the President's 2013 budget proposal, which intends to cap muni tax exemption at 28% [QVM note: step one toward total elimination] includes expansion of the Build America Bonds program to help finance large public infrastructure projects [QVM note: read that "small towns -- you won't get much help, just higher financing costs" -- and read that "states and large cities with projects the feds don't like or care about -- you won't get help either"].

Kristin Francheshi, president of the National Association of Bond Lawyers said she sees a very good chance of the feds passing the legislation that will limit muni tax exemption without a strong, concerted effort by issuers and bond buyers.

Who Owns Municipal Bonds:

Individuals are by far the primary owners of muni bonds, either directly or through investment funds.

(Click to enlarge)

How Much Muni Debt Has Been Issued:

The total issuance of revenue bonds and general obligation bonds is down significantly, as states get their houses in order.

Meanwhile the federal government is expanding its debts with short-term maturities that will have to be rolled over eventually at higher rates, while states are reducing debt issuance and locking in low rates for long periods.

The average maturity issued in 2011 was 15.5 years.

(Click to enlarge)

Build America Bonds

The BAB program began in April 2009 and expired in December 2010.

In 2010 BAB issuance represented 27% of all municipal issuance.

Which States Got the Most Build America Bonds Funding:

(Click to enlarge)

Some Municipal Bond ETFs:

These data are from Morningstar on 04-18-2012

SYMBOL	YIELD	QUALITY	DURATION
MUB	3.26	A	5.05
MLN	4.31	A	14.29
HYD	5.41	BB	11.66
MUNI	2.22	NR	4.92
SUB	1.23	AA	2.05
SMB	1.89	A	3.34
NYF	3.30	A	6.36
CMF	3.59	A	6.72
MUAE	1.86	A	3.94
MUAF	2.07	AA	4.76

The author personally holds intermediate investment grade and high yield municipal bonds through Vanguard mutual funds

Disclosure: QVM has no positions in any identified security as of the creation date of this article (April 19, 2012). I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.