Saturday, May 31, 2014

Can This Traditional Retailer Survive Against Amazon?

Source: Macy's annual report

If you look across the retail landscape, you're bound to spot a few landmines. While the S&P 500 index has advanced 3% year to date, retail stocks in the index are down more than 5%. And while retail investors have been running for the hills, now may be the time to pick up a diamond in the rough. 

Department store retailer Macy's (NYSE: M  )  appears to be one of the gems. It competes with a host of retailers, including Kohl's and J.C. Penney on the discount side and others like Nordstrom and Neiman-Marcus that go head-to-head with its more upscale Bloomingdales. But it wasn't any of these rivals that Macy's took an early swipe at during a recent Nomura conference. The jab that it did take says a lot about where Macy's is headed and which company poses the greatest threat. And the winner is none other than online retail behemoth Amazon.com (NASDAQ: AMZN  ) .

They're coming, they're trying, they're working on it. But I think not having stores [is a] disadvantage for [Amazon] in the apparel world. 

Indeed Amazon is coming. And it is looking more and more like a department store retailer every day. Toward the end of last year it opened a 40,000 square foot studio in the New York borough of Brooklyn dedicated to fashion. Amazon snaps thousands of on-model pictures and videos a day featuring the latest fashion trends. It's the online retailer's ambition to become a "great department store," according to Amazon Fashion President Cathy Beaudoin cited in The Seattle Times.

Amazon Fashion, where the online retailer sells premium brands, is a business that's "booming," according to Amazon's annual report. So it's no surprise that Amazon wants a bigger piece of the pie. In 2012, the U.S. apparel industry achieved $370 billion in sales, and slightly more than one-tenth of that originated from the web, according to Forrester Research data cited in the Times. So there's market share to be had in e-commerce, and Amazon may seem to have the obvious advantage in this arena. But it's not a slam dunk.

While not an apples to apples comparison in light of the breadth of markets Amazon operates in, let's take a look at how both companies have grown market share over the past five years. 

Sales Chart Company  2013  2012  2011 2010 2009
Macy's $27.9 bln $27.7 bln $26.4 bln $25 bln $23.5 bln
Amazon  $74.4 bln  $61 bln  $48.1 bln  $34.2 bln  $24.5 bln

5 Best Industrial Disributor Stocks To Own For 2015

*Source: Macy's and Amazon's annual reports

He said, she said
If Macy's is right, the very thing that differentiates the traditional retailer from Amazon -- its 800-plus brick-and-mortar locations -- could be its ace in the hole. Macy's is seeking to leverage its stores with its web presence so that there's more overlap and less of a divide between the channels. If successful, Macy's could just prevent Amazon from ever dominating the department store category. But if Amazon is right, it has the upper hand because of its "unlimited shelf space," as Beaudoin told the Times

If there's one thing Macy's knows best it's who shops at its stores. At corporate events, the company repeatedly refers to this individual as "she," and Macy's is striving to make the shopping experience as seamless as possible for her. 

Macy's rolled out an order online/pick up in store initiative (which works exactly how the name suggests) in test markets to solid demand--so solid, in fact, that the company now plans to roll the program out to all of its U.S. full-line retail locations by July.

Bridging the gap between online orders and in-store pick-up gives Macy's yet another opportunity to sell customers something else. And based on the anecdotal results (Macy's decision to expand this program and recent remarks at a Telsey Advisory Group conference), customers are taking Macy's up on this. That's not something that a single fashion studio will accomplish for Amazon. 

This same themes carries over to returns. Even when returning an item purchased online, customers prefer to visit a physical Macy's location for the transaction as opposed to shipping the item back to the retailer. Once again this gives the retailer the opportunity to upsell or inspire an impulse sale that an online retailer like Amazon misses out on. 

Where to invest
Look, when you invest in a Macy's, you're going to get more modest market growth in comparison to some of the high-flyers, including Amazon. Macy's is projecting 3% comparable sales growth in fiscal 2014 on the high end. But it's also expecting profits, whereas Amazon is guiding for a second-quarter loss on between 15% and 26% year-over-year sales growth. You've got to pick your poison, so to speak. The good news is that analysts have a median price target of $64 on Macy's, according to Thomson/First call, and for Amazon the median price target is $425; Macy's is trading at about $58.72 while Amazon is currently hovering at close to $315 per share.  

Boring is beautiful
While Amazon apparently wants to look more like Macy's, the stocks couldn't be on further ends of the risk spectrum. With Macy's, you get profitability, stability, dividends, share buybacks, and some growth. Amazon, on the other hand, is a sales machine but it's been nothing but inconsistent on the profitability front.

Macy's has more than a century and half history yet has managed to remain relevant and stable. It's one of those companies that may get overlooked because it's always been there. But in an industry otherwise plagued by controversies, missteps, and excuses, boring can be beautiful. Add to that the 2.1% dividend yield and a $2.5 billion share-buyback program, it's looking like a safe bet. Macy's has lived to tell about numerous industry hurdles, ranging from an excessive discounting environment to an overbuild of stores. Something tells me it will survive Amazon as well.

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Friday, May 30, 2014

Top Logistics Stocks To Buy Right Now

Top Logistics Stocks To Buy Right Now: Sunshine Heart Inc (SSH)

Sunshine Heart, Inc., incorporated on August 22, 2002, is an early-stage medical device company focused on developing, manufacturing and commercializing its C-Pulse Heart Assist System for treatment of Class III and ambulatory Class IV heart failure. The C-Pulse Heart Assist System utilizes the scientific principles of intra-aortic balloon counter-pulsation applied in an extra-aortic approach to assist the left ventricle by reducing the workload required to pump blood throughout the body, while increasing blood flow to the coronary arteries. As of December 31, 2011, the Company was in the process of obtaining regulatory approvals necessary to sell its product.

The Company has developed tools to allow the C-Pulse to be implanted through a small pacemaker-like incision between the patients ribs and sternum rather than a sternotomy. Patients implanted through its minimally invasive procedure require a hospital stay of four to seven days in connection with impl antation of the C-Pulse System, after which they return home. During the year ended December 31, 2011, the Company completed enrollment and implantation of 20 patients in the North American feasibility phase of its trial. In April 2011, the Food and Drug Administration (FDA) approved an expansion protocol to allow the Company to implant up to 20 additional patients and add two additional centers to its feasibility study.

The Company competes with Thoratec Corporation, HeartWare International Inc., CircuLite, Inc., CardioKinetix, Inc., AbioMed, Inc., Jarvik Heart, Inc., MicroMed Technology, Inc., SynCardia Systems, Inc., Terumo Heart, Inc., WorldHeart Corporation in the United States and Europe, and Berlin Heart GmbH in Europe.

Advisors' Opinion:
  • [By John Udovich]

    Small cap heart stocks Sunshine Heart Inc (NASDAQ: SSH), Abiomed, Inc (NASDAQ: ABMD) and AtriCure Inc (NASDAQ: ATRC) each find different ways go to the heart ! of the problem for cardiacpatients and have all been good performers for investors this year. After all and according to statistics collected by the CDC, heart disease is the leading cause of death for both men and women as about 600,000 people die of heart disease in the United States every year accountingfor 1 in every 4 deaths. Moreover, roughly 715,000 Americans have a heart attack every year andff these, 525,000 are a first heart attack and 190,000 happen to people who have already had one. In other words, there is a big market for the following small cap heart stocks to address:

  • source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-logistics-stocks-to-buy-right-now.html

Thursday, May 29, 2014

Top Internet Companies To Invest In 2015

Top Internet Companies To Invest In 2015: Yahoo! Inc.(YHOO)

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide. It offers online properties and services to users; and a range of marketing services to businesses. The company?s communications and communities offerings include Yahoo! Mail, Yahoo! Messenger, Yahoo! Groups, Yahoo! Answers, Flickr, and Connected TV, which provide a range of communication and social services to users and small businesses enabling users to organize into groups and share knowledge, common interests, and photos. Its search products comprise Yahoo! Search and Yahoo! Local, available free to users to navigate the Internet and discover content. The company?s marketplaces offerings and services include Yahoo! Shopping, Yahoo! Travel, Yahoo! Real Estate, Yahoo! Autos, and Yahoo! Small Business, which allow users to research specific topics, products, services, or areas of interest by review i ng and exchanging information, obtaining contact details, or considering offers from providers of goods, services, or parties with similar interests. Its media offerings comprise Yahoo! Homepage, Yahoo! News, Yahoo! Sports, Yahoo! Finance, My Yahoo!, Yahoo! Toolbar, Yahoo! Entertainment & Lifestyles, Yahoo! Contributor Network, and Yahoo! Pulse, which are designed to engage users with online content and services on the Web. The company also offers marketing services, such as display and search advertising, listing-based services, and commerce-based transactions to advertisers. In addition, it provides software and platform offerings for third-party developers, advertisers, and publishers, such as Yahoo! Developer Network, Yahoo! Open Strategy, Yahoo! Application Platform, Yahoo! Updates, Yahoo! Query Language, and Yahoo! Search BOSS. The company has strategic alliances with Nokia and ABC News, Inc. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale,! Californi a.

Advisors' Opinion:
  • [By Kevin Chen]

    Amazon (NASDAQ: AMZN  ) , Yahoo! (NASDAQ: YHOO  ) , AOL (NYSE: AOL  ) have made key moves to build a video arsenal-moves that will surely lead to a showdown with everyone, including Netflix (NASDAQ: NFLX  ) and Google's (NASDAQ: GOOG  ) YouTube.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-internet-companies-to-invest-in-2015.html

10 Best Long Term Stocks To Watch Right Now

10 Best Long Term Stocks To Watch Right Now: Gogo Inc (GOGO)

Gogo Inc incorporated on December 14, 2009, is a holding company. The Company operates through its two operating subsidiaries, Gogo LLC and Aircell Business Aviation Services LLC. The Company provides in-flight connectivity and wireless in-cabin digital entertainment solutions. It provide turnkey solutions for passengers to extend their connected lifestyles to the aircraft cabin. It operates in two segments: commercial aviation (CA) and business aviation (BA). Its CA business provides in-flight connectivity and digital entertainment solutions to commercial airline passengers through their personal Wi-Fi enabled devices.

The Company provides Gogo Connectivity to passengers to nine North American airlines that provide Internet connectivity to their passengers. It provide Gogo Connectivity to passengers on Delta Air Lines, American Airlines, Virgin America, Alaska Airlines, US Airways, Frontier Airlines and Air Tran Airways. It also provide Gogo Connectivity to p assengers on a small number of aircraft operated by United Airlines and Air Canada. As of September 30, 2011, the Company had equipped 1,177 commercial aircraft, representing approximately 85% of Internet-enabled North American commercial aircraft, which were operated on more than 4,200 daily flights.

The Companys BA segment sells equipment and provides services for in-flight Internet connectivity and other voice and data communications under its Gogo Biz and Aircell branded products and services. BAs customers include original equipment manufacturers of private jet aircraft such as Gulfstream, Cessna, Hawker Beechcraft, Bombardier, Dassault, Embraer, NetJets, Flexjets, Flight Options and CitationAir. It sells equipment for three of the primary connectivity network options in the business aviation market: Gogo Biz, through which it delivers broadband Internet connectivity over its (air-to-ground )ATG network, and the Iridium and Inmarsat SwiftBroadb! and sat ellite networks. As of September 30, 2011, the Company had m! ore than 700 Gogo Biz systems in operation and more than 4,600 aircraft with Iridium satellite communications systems in operation, and it has sold more than 100 Inmarsat SwiftBroadband systems. It provides in-flight broadband connectivity across the contiguous United States and portions of Alaska through 3 MHz of FCC-licensed ATG spectrum and its network of cell sites.

Through its Gogo platform, the Company provides passengers with a convenient and easy way to access the Internet, view video content, send and receive email and instant messages, and access corporate VPNs on Gogo-equipped commercial aircraft. It provides Internet access through Gogo Connectivity, on-demand streaming video offerings through Gogo Vision and access to a variety of free entertainment and service offerings, customized for each airline, through Gogo Signature Services.

The Company competes with Panasonic Avionics, Row 44, OnAir, LiveTV and Thales.

Advisors' Opinion:
  • [By Sofia Horta e Costa]

    Gogo Inc. (GOGO), a provider of in-flight Internet services, jumped 29 percent to a record $24.15 after the company raised its year-end revenue estimate. Itasca, Illinois-based Gogo reported a smaller third-quarter loss than analysts had expected.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-long-term-stocks-to-watch-right-now.html

Wednesday, May 28, 2014

Top 5 Logistics Stocks To Buy For 2015

Top 5 Logistics Stocks To Buy For 2015: Quality Distribution Inc. (QLTY)

Quality Distribution, Inc., together with its subsidiaries, engages in the truckload transportation of bulk chemicals primarily in North America. The company involves in the bulk transportation of liquid and dry chemicals, including plastics, as well as bulk dry and liquid food-grade products. It also provides intermodal ISO tank container transportation and depot services; tank cleaning, heating, testing, maintenance, and storage services; and local and over-the-road trucking services. The company?s bulk service network consists primarily of independently owned third-party affiliate terminals, independent owner-operator drivers, and own terminals. As of December 31, 2010, it managed a fleet of approximately 2,900 tractors and 5,700 trailers; and operated 91 independent affiliate trucking terminals and 3 own trucking terminals. Quality Distribution also operates 8 ISO tank container transportation and depot service terminals. The company was formerly known as MTL, Inc. and changed its name to Quality Distribution, Inc. in 1999. Quality Distribution, Inc. was founded in 1984 and is headquartered in Tampa, Florida.

Advisors' Opinion:
  • [By Seth Jayson]

    Margins matter. The more Quality Distribution (Nasdaq: QLTY  ) 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 Quality Distribution's competitive position could be.

  • source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-5-logistics-stocks-to-buy-for-2015.html

Monday, May 26, 2014

Start-ups see gold mine in burst of Net domains

Visit GoDaddy for a new Internet domain name and you'll be greeted with an advertisement for one of at least 16 new domain alternatives to .com, .gov or .edu, descriptive of whatever it is you're trying to do.

Are you an expert? There's .guru. Starting an organization? Try .club. Opening a restaurant in New York City? Consider .nyc. Running a daily news site? How about .today?

The new names, called generic top-level domains (gTLDs), might seem like they were created overnight. But seven years of international discussion and debate, and billions of dollars of investment are pushing these and hundreds of other new names into the market this year and next. And Internet enthusiasts and experts predict they'll cause the next online gold rush.

This will be true in particular for small businesses and start-ups, they say. Why? Because, just like in the bricks-and-mortar world, location matters. Businesses are only as good as a customer's ability to find them. And with 270 million Web addresses already claimed — 110 million of those .coms — it's getting harder to snap up a good one.

That opens up two major opportunities for start-ups: creating new registries around the new gTLDs, and registering domains (through registrars like GoDaddy) and building businesses around them.

Andy Churley is leading the charge for a Gibraltar, Spain start-up called Famous Four Media that raised $100 million in venture capital to create at least 60 new registries. So far, 15 have been approved by the domain name system's governing body, Internet Corporation for Assigned Names and Numbers (ICANN). They include .trade, .webcam, .science and .men.

The investment is a big one — $185,000 to apply for a single registry, additional legal fees to defend against objections allowed through ICANN's approval process and, now, marketing and operational costs associated with creating a registry, Churley says. And Famous Four still competes with other entities for the other 45 names.

More common are! small companies snapping up new domains to serve certain industries, betting that more descriptive names will offer better exposure and help businesses save money on pay-per-click advertising and search engine optimization. For example, Mexico City start-up Punto 2012 on June 15 will release registries for .bar and .rest, marketing names to the restaurant and bar industry.

Luxury Partners of Beverly Hills, Calif., is targeting high-end boutiques, manufacturers, vehicles, consumers and retailers with .luxury. It hopes to be a central place for engagement around luxury brands and is charging a premium annual rate of $799.99 (and more) to get in early. Considering most names go for $10 or $20 a year, Luxury is betting big there will be interest in an elite domain community.

.CLUB Domains has raised $7 million to create the .CLUB registry, and so far has sold nearly 50,000 names to become the second most popular of the new domains (behind .guru with 56,000). Besides registering new names, the Florida start-up also offers tools to help start, grow and manage clubs and organizations, not typical offerings for a domain name registry.

But marketing is key for any registry or start-up entering the field, says Ben Anderson, product director for new gTLDs at NetNames, an established registry operator. Despite GoDaddy's ads, consumers are still generally unaware of the change to the domain name system. And Google, though it applied for nearly 100 of its own gTLDs, hasn't yet announced how it will rank the new domains in its search engine.

That's causing some hesitation among business owners and entrepreneurs to buy and promote the new domains. Fewer than 1 million names are taken so far, Anderson says.

"The word of caution (is) not many day-to-day Internet users understand that these TLDs exist," he says. "If you build up a business around one of them, will your consumers understand?"

But young companies like Churley's are bullish anyway. They believe it's only a matter of time ! — along! with some education and promotion from the likes of GoDaddy — for the power of descriptive names to prevail.

"It's like a rebirth of the domain name system," Churley says. "There is the opportunity to grow at a phenomenal rate and redefine how the domain name system works in the future."

Laura Baverman is a Raleigh, N.C.-based business journalist covering start-ups and entrepreneurship for regional and national publications. She previously covered entrepreneurship for the Cincinnati Enquirer, a Gannett newspaper. Baverman can be reached via e-mail at lbaverman@gmail.comor Twitter @laurabaverman.

Sunday, May 25, 2014

More Strong Housing Numbers Propel S&P to New Record

5 Best India Stocks To Watch For 2015

Records fell on Wall Street Friday as another solid report on housing lifted the market for the second day in a row. There's a three-day weekend coming up -- something that often prompts investor caution -- but the gains were broad-based even though volume was fairly light. The VIX, which measures volatility, fell to its lowest level this year. The Dow Jones industrial average (^DJI) gained 63 points, the Nasdaq composite (^IXIC) rose 31, and the Standard & Poor's 500 index (^GPSC) added 8, topping the record high set last week. The Dow Transportation average also raced to an all-time high, lifted by airline stocks. United (UAL) soared more than 4 percent; Delta (DAL) gained more than 1 percent and Southwest (LUV) gained 2 percent. Southwest is at an all-time high, up 79 percent from a year ago. New home sales bounced back with a better than expected 6.4 percent increase last month. Lennar (LEN) and D.R. Horton (DHI) both rose 4 percent. Pulte (PHM), Beazer (BZH) and Hovnanian (HOV) also solid posted gains. Earnings continue to drive retail stocks. Gap (GPS) edged higher even though net fell. Foot Locker (FL) gained 1½ percent after topping expectations. GameStop (GME) rose 4 percent. Its net rose, helped by the rollout last year of new Xbox and PlayStation consoles. Zumiez (ZUMZ) rose 5½ percent on an earnings beat. But Aeropostale (ARO) tumbled 24 percent. Its loss widened and sales declined. The retailer continues to struggle with teen fashion trends. Also on the earnings front, TiVo (TIVO) rose 2 percent as it swung to a profit from a year ago loss. It also reported an increase in the number of subscribers. Hewlett-Packard (HPQ) rose 6 percent on news the company plans to eliminate up to 16,000 additional workers in an effort to cut costs. And several stocks extended big moves from yesterday. Best Buy (BBY) rose more than 3 percent for the second straight day after earnings beat expectations. Isis Pharmaceuticals (ISIS) jumped another 11 percent. And RetailMeNot (SALE) dropped another 6 percent thanks to a report that its coupon site has lost about one-third of its traffic following changes to Google's search algorithms. But the company says the report grossly overstates the impact of the Google change. Finally, PTC Therapeutics (PTCT) soared 32 percent after winning conditional EU approval for its treatment of Duchenne Muscular Dystrophy. What to Watch Monday: U.S. stock and bond markets are closed for Memorial Day. What to Watch Tuesday: The Commerce Department releases durable goods for April at 8:30 a.m. Eastern time. Standard & Poor's releases the S&P/Case-Shiller index of home prices for March and the first quarter at 9 a.m. The Conference Board releases the Consumer Confidence Index for May at 10 a.m. Retailers AutoZone (AZO) and Wet Seal (WTSL) release quarterly financial statements. -.

Saturday, May 24, 2014

10 Best Regional Bank Stocks To Invest In 2015

10 Best Regional Bank Stocks To Invest In 2015: Rutter Inc (RUT)

Rutter Inc. (Rutter) focuses on providing technologies and manufacturing solutions. The Company supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors. The Company produces and globally markets enhanced radar systems, including oil spill detection, ice navigator, small target detection and wave-monitoring systems. The Company also offers a full range of outsource manufacturing services including: product engineering and design; materials management; manufacturing; sub-assembly; systems integration; project management; testing; logistics and documentation and provides full cycle customer support for all Company products and selected third party components/products that it manufactures under contract. Rutters sigma S6 radar signal processing products are designed to enable end users to detect and track objects which would not be visible with conventional radar equipment only. Advisors' Opinion:
  • [By Anora Mahmudova]

    The Russell 2000 index of small-cap stocks (RUT) fell 32.30 points, or 2.8%, to 1,127.66. Panic-selling was evident from the jump in the volatility. The CBOE Vix index (VIX) of implied volatility on the S&P 500 jumped 15% to nearly 16.

  • [By William L. Watts]

    The first day of trading for Farmland (FPI) , which plans to get taxed as a real-estate investment trust, was hardly frothy. The stock ended at $12.98, down $1.02, or 7.3% below its $14 offering price. The broader market dropped sharply, sending the Russell 2000 (RUT) down 1.4%, though some IPOs surged.

  • source from Top Penny Stocks:http://www.seekpennystocks.com/10-best-regional-bank-stocks-to-invest-in-2015.html

Best Paper Companies To Own For 2015

Potential clients are broadcasting “buy” signs through social media, and advisers need to find relevant signals through all the noise and deliver a message or experience.

"It's about listening and interacting with those in your network," Clara Shih, co-founder of Hearsay Social, said at a LIMRA social-media conference in Boston today. "A lot of the benefit is from advisers connecting to those who you know but aren't yet clients."

Advisers used to listen for buying signals by reading local business newspapers, scanning obituaries and looking up documents at courthouses, she said. Today, people listen for news of job changes, new babies, new marriages and deaths on social networks such as Facebook and LinkedIn.

Best Paper Companies To Own For 2015: Boise Inc (BZ)

Boise Inc., incorporated on February 1, 2007, is a manufacturer of packaging and paper products, including corrugated containers and sheets, containerboard, protective packaging products, imaging papers for the office and home, printing and converting papers, label and release papers, newsprint and market pulp. The Company operates in the United States, Europe, Mexico, and Canada. The Company operates in three segments: Packaging, Paper, and Corporate and Other. The Company�� newsprint is sold primarily to newspaper publishers in the southern and southwestern the United States. During the year ended December 31, 2012, approximately 38% of the Company�� uncoated freesheet paper was sold to OfficeMax Incorporated, its customer.

Packaging

In the Packaging segment, the Company manufactures and sells linerboard, containerboard, corrugated containers and sheets, protective packaging products, and newsprint. Linerboard is a paperboard, which when combined with corrugating medium is used in the manufacture of corrugated sheets and containers. Corrugated sheets are containerboard sheets that are sold primarily to converters that produce a variety of corrugated products. Corrugated containers are corrugated sheets that have been fed through converting machines to create containers, which are used in the packaging of fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. Stock boxes are corrugated containers manufactured to pre-set dimensions.

Protective packaging products include multi-material customized packaging solutions, which may utilize kraft paper-based honeycomb corrugated packaging, foamed plastics, and air pocket packing materials Newsprint is a paper commonly used for printing newspapers, other publications, and advertising material. During the year ended December 31, 2012, its Packaging segment produced approximately 613,000 short tons of linerboard, and its Paper segment produced approximately 135,000 short tons! of corrugating medium. It manufactures linerboard and newsprint on two machines at its mill in DeRidder, Louisiana. It also manufactures corrugated containers and sheets and protective packaging products at 26 plants located in North America and Europe.

Paper

In its Paper segment, the Company manufactures and sells three general categories of products: communication-based papers; packaging-based papers, and market pulp. Its communication-based papers include cut-size office papers, and printing and converting papers. Its Packaging-Demand-Driven Papers include Label and release papers, Flexible packaging papers, and Corrugating medium. Printing and converting papers are used by commercial printers or converters to manufacture envelopes, forms, and other commercial paper products.

Its packaging-based papers include label and release papers and corrugating medium. The Label and release papers include label facestocks, as well as release liners. The coated and uncoated papers sold to customers create packaging products for food and nonfood applications. Market pulp is sold to customers in the open market for use in the manufacture of paper products. The Company manufactures its Paper segment products at three mills, all located in the United States.

Corporate and Other

The Company�� Corporate and Other segment includes transportation assets, such as rail cars and trucks, which it uses to transport its products from its manufacturing sites. The Company provides transportation services not only to its own facilities but also, on a limited basis, to third parties. Rail cars and trucks are typically leased.

The Company competes with International Paper Company, Rock-Tenn Company, Georgia-Pacific LLC, Packaging Corporation of America, Longview Fibre Paper, Packaging, Inc, Green Bay Packaging Inc., KapStone Paper, TexCorr, L.P., Resolute Forest Product, SP Newsprint Co. and Domtar Corporation.

Advisors' Opinion:
  • [By Christopher Freeburn]

    Under the deal, which is expected to close during the fourth quarter, Packaging Corp. will pay $12.55 a share, or $1.27 billion, for Boise (BZ). That represents a 26% premium over the target’s last closing price, the Associated Press noted.

  • [By Ben Levisohn]

    Packaging Corp. of America�(PKG) has jumped 6.3% to $57.99 after it said it would buy Boise (BZ) for $1.28 billion. Boise has gained 26% to $12.55.

  • [By Sue Chang]

    PCA, the Packaging Corp. of America (PKG) ,�is likely to post third-quarter earnings of 89 cents a share. The company said last month it would buy Boise Inc. (BZ) �for $12.55 a share, or about $1.28 billion in total. The deal is expected to close in the fourth quarter. Lake Forest, Ill.-based PCA makes a wide line of linerboard and corrugated paper packaging products at four mills and 71 plants, according to its website.

  • [By Paul Ausick]

    Stocks on the move: Boise Inc. (NYSE: BZ) is up 26% at $12.55 following the company�� acquisition by Packaging Corporation of America Inc. (NYSE: PKG) for $12.55 a share ($1.28 billion). Omeros Corp. (NASDAQ: OMER) is up 68.2% at $8.56 following an analyst upgrade. Northern Dynasty Minerals Ltd. (NYSEArca: NAK) is down 33.3% at $1.48 following an announcement from Anglo American plc that it was withdrawing from a massive copper mining project in Alaska.

Best Paper Companies To Own For 2015: International Paper Co (IP)

International Paper Company (International Paper), incorporated on June 23, 1941, is a global paper and packaging company, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The Company operates in four segments: Industrial Packaging, Printing Papers, Consumer Packaging and Distribution. As of December 31, 2012, in the United States, the Company operated 28 pulp, paper and packaging mills, 187 converting and packaging plants, 18 recycling plants and three bag facilities. Production facilities as of December 31, 2012 in Europe, Asia, Latin America and South America included 11 pulp, paper and packaging mills, 65 converting and packaging plants, and two recycling plants. It distribute printing, packaging, graphic arts, maintenance and industrial products principally through over 88 distribution branches in the United States and 32 distribution branches located in Canada, Mexico and Asia. As of December 31, 2012, it owned or managed approximately 327,000 acres of forestland in Brazil and had, through licenses and forest management agreements, harvesting rights on government-owned forestlands in Russia. On July 2, 2012, it sold Ontario and Oxnard (Hueneme), California containerboard mills to New-Indy Containerboard LLC, and its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation. On January 3, 2013, it acquired joint venture partner, Sabanci Holding.

Industrial Packaging

International Paper is a manufacturer of containerboard in the United States. Its production capacity is about 14 million tons annually. The Company�� products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. About 80% of its production is converted domestically into corrugated boxes and other packaging by its 178 United States container plants. In addition, it recycles approximately one million tons of old corrugated containers (OCC) and mixed and white paper through ! our 20 recycling plants. In Europe, our operations include one recycled fiber containerboard mill in Morocco and 20 container plants in France, Italy, Spain, and Morocco. In Asia, its operations include 19 container plants in China and additional container plants in Indonesia, Malaysia, Singapore, and Thailand. Its container plants are supported by regional design centers, which offer total packaging solutions and supply chain initiatives.

Printing Papers

International Paper is a producer of printing and writing papers. Products in this segment include uncoated and coated papers, uncoated bristols and pulp. This business produces papers for use in copiers, desktop and laser printers and digital imaging. End use applications include advertising and promotional materials, such as brochures, pamphlets, greeting cards, books, annual reports and direct mail. Uncoated papers also produce a variety of grades that are converted by its customers into envelopes, tablets, business forms and file folders. Uncoated papers are sold under private label and International Paper brand names that include Hammermill, Springhill, Williamsburg, Postmark, Accent, Great White, Chamex, Ballet, Rey, Pol and Svetocopy. The mills producing uncoated papers are located in the United States, France, Poland, Russia, Brazil and India. The mills have uncoated paper production capacity of approximately five million tons annually.

Pulp products include fluff, and southern softwood pulp, as well as southern and birch hardwood paper pulps. These products are produced in the United States, France, Poland, Russia, and Brazil and are sold around the world. International Paper facilities have annual dried pulp capacity of about 1.7 million tons.

Consumer Packaging

International Paper is a producer of solid bleached sulfate board with annual United States production capacity of about 1.7 million tons. Its coated paperboard business produces coated paperboard for a variety of packag! ing and c! ommercial printing end uses. Its Everest, Fortress, and Starcote brands are used in packaging applications for everyday products, such as food, cosmetics, pharmaceuticals, computer software and tobacco products. Its Carolina brand is used in commercial printing end uses, such as greeting cards, paperback book covers, lottery tickets, direct mail and point-of-purchase advertising. Its United States capacity is supplemented by about 365,000 tons of capacity at its mills producing coated board in Poland and Russia and by its International Paper & Sun Cartonboard Co., Ltd. joint venture in China, which has annual capacity of 1.0 million tons. Its Foodservice business produces cups, lids, food containers and plates through three domestic plants and four international facilities.

Distribution

xpedx, the Company�� North American merchant distribution business, distributes products and services to a number of customer markets, including commercial printers with printing papers and graphic pre-press, printing presses and post-press equipment; building services and away-from-home markets with facility supplies; manufacturers with packaging supplies and equipment, and to a number of customers, it provides distribution capabilities, including warehousing and delivery services. xpedx is the wholesale distribution marketer in these customer and product segments in North America, operating 108 warehouse locations in the United States and Mexico.

Advisors' Opinion:
  • [By Rich Duprey]

    Forestry products company International Paper (NYSE: IP  ) will pay a second-quarter dividend of $0.30 per share, the same rate it's paid for the past two quarters after it increased it 14% from $0.2625 per share, the company announced yesterday.

Top Clean Energy Stocks To Watch Right Now: TriStar Wellness Solutions Inc (TWSI)

TriStar Wellness Solutions, Inc., formerly Biopack Environmental Solutions Inc., incorporated on August 28, 2000, is engaged in developing, marketing and selling, NCP's Beaute de Maman product lines, which is a line of skincare and other products specifically targeted for pregnant women, as well developing the Soft and Smooth Assets. The Company supplied biodegradable food containers and industrial packaging products to multinational corporations, supermarket chains and restaurants located across North America, Europe and Asia. In May 2013, the Company acquired HemCon Medical Technologies Inc.

The Company�� priority direct-to-consumer target markets are focused on women�� health and wound care. The second core product area is directed at the Direct-to-Consumer (DTC) wound care market space. During the year ended December 31, 2012, the Company focused the sales and marketing resources for the Beaute de Maman brand on efficient Internet portals via the brand Website and selected Web-based retailers.

Advisors' Opinion:
  • [By Peter Graham]

    Last Friday, small cap stocks Tristar Wellness Solutions Inc (OTCMKTS: TWSI) jumped 14.94% while Hybrid Coating Technologies (OTCBB: HCTI) and Bulova Technologies Group, Inc (OTCMKTS: BTGI) sank 23.53% and 13.04%, respectively. It should be mentioned that only one of these small cap stocks appears to be the subject of paid promotions or investor relations type activities. So what will these three small cap stocks do for investors this week? Here is a quick reality check to help you decide on a trading or investing strategy:

Best Paper Companies To Own For 2015: Rock-Tenn Co (RKT)

Rock-Tenn Company (RockTenn), incorporated on September 20, 1985, is a North America's integrated manufacturer of corrugated and consumer packaging. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico and China. The Company operates in three segments: Corrugated Packaging, consisting of its containerboard mills and its corrugated converting operations; Consumer Packaging, consisting of its coated and uncoated paperboard mills, consumer packaging converting operations and merchandising display facilities, and Recycling, which consists of its recycled fiber brokerage and collection operations. On June 22, 2012, the Company acquired Mid South Packaging LLC. On October 28, 2011, the Company acquired four entities doing business as GMI Group.

Corrugated Packaging Segment

The Company is a producer of linerboard and corrugated medium (containerboard) measured by tons produced and a producer of graphics pre-printed linerboard in North America. It operates an integrated system, which manufactures containerboard, corrugated sheets, corrugated packaging and preprinted linerboard for sale to industrial and consumer products manufacturers and corrugated box manufacturers. It produces a range of corrugated containers designed to protect, ship, store and display products made to its customers' merchandising and distribution specifications. It also converts corrugated sheets into corrugated products ranging from one-color protective cartons to point-of-purchase packaging. Corrugated packaging is used to provide protective packaging for shipment and distribution of food, paper, health and beauty and other household, consumer, commercial and industrial products and in the case of graphically enhanced corrugated packaging for retail sale, particularly in club store locations and retail sale. It also provides structural and graphic design, engineering services, and custom and standard automated packaging machines, offering customers turn-key instal! lation, automation, line integration and packaging solutions. It feeds linerboard and corrugated medium into corrugators, which flutes the medium to specified sizes, glues the linerboard and fluted medium together and slits and cuts the resulting corrugated paperboard into sheets to customer specifications. Its container board mills and corrugated container operations are integrated with its containerboard production used internally by its corrugated container operations. During the fiscal year ended September 30, 2012 (fiscal 2012), sales of corrugated packaging products to external customers accounted for 65.7% of its net sales.

Consumer Packaging Segment

The Company operates an integrated system of coated recycled mills and a bleached paperboard mill, which produces paperboard for its folding carton operations and third parties. The Company is a manufacturer of folding cartons in North America measured by net sales. Its folding cartons are used to package food, paper, health and beauty and other household consumer, commercial and industrial products for retail sale. It also manufactures express mail envelopes for the overnight courier industry. Folding cartons protect customers��products during shipment and distribution and employ graphics to promote them at retail. It manufactures folding cartons from recycled and virgin paperboard, laminated paperboard and substrates with specialty characteristics, such as grease masking and microwaveability. It prints, coats, die-cuts and glues the cartons to customer specifications. It ships finished cartons to customers for assembling, filling and sealing. It employs a range of offset, flexographic, gravure, backside printing, and coating and finishing technologies. It supports its customers with package development, innovation and design services and package testing services.

The Company manufactures temporary and permanent point-of-purchase displays. The Company designs, manufactures and packs temporary displays for sal! e to cons! umer products companies. These displays are used as marketing tools to support new product introductions and specific product promotions in mass merchandising stores, supermarkets, convenience stores, home improvement stores and other retail locations. It also designs, manufactures and pre-assemble permanent displays for the same categories of customers. It makes temporary displays from corrugated paperboard. It provides contract packing services, such as multi-product promotional packing and product manipulation, such as multipacks and onpacks. The Company manufactures lithographic laminated packaging for sale to its customers, which require packaging with graphics and strength characteristics.

The Company operates an integrated system of specialty recycled paperboard mills, which includes its Seven Hills Paperboard LLC (Seven Hills) joint venture. Its specialty recycled paperboard mills, excluding Seven Hills, produce paperboard for its solid fiber interior packaging converting operations and third parties, and its Seven Hills joint venture manufactures gypsum paperboard liner for sale to its joint venture partner. It sells its specialty recycled paperboard to manufacturers of solid fiber interior packaging, tubes and cores, and other paperboard products. It also converts specialty paperboard into book covers and other products. Its 65% owned subsidiary, RTS, designs and manufactures solid fiber and corrugated partitions and die-cut paperboard components. It manufactures and sells its solid fiber and corrugated partitions principally to glass container manufacturers and producers of beer, food, wine, spirits, cosmetics and pharmaceuticals and to the automotive industry. During fiscal 2012, sales of consumer packaging products to external customers accounted for 27.5% of its net sales.

Recycling Segment

The Company�� recycled fiber brokerage and collection operations provide a strategic advantage to its mills. Its recycling operations procure recovered paper (or! recycled! fiber) for its paper mills, as well as for third parties from factories, warehouses, commercial printers, office complexes, grocery and retail stores, document storage facilities, paper converters and other wastepaper collectors. It handles a range of grades of recovered paper, including old corrugated containers, office paper, box clippings, newspaper and print shop scraps. It operates recycling facilities, which collects, sorts, grades and bales recovered paper and after sorting and baling, it transfer recovered paper to its paperboard mills for processing, or sell it to the United States manufacturers of paperboard, as well as manufacturers of tissue, newsprint, roofing products and insulation and to export markets. It also collects aluminum and plastics for resale to manufacturers of these products. Its waste reduction services extract additional recyclables from the waste stream by working with customers. In addition, it operates a nationwide fiber marketing and brokerage system, which serves regional and national accounts, as well as its recycled paperboard and containerboard mills and sells scrap materials from its converting businesses and mills. Brokerage contracts provide bulk purchasing. Its recycling facilities are located close to its recycled paperboard and containerboard mills, ensuring availability of supply with reduced shipping costs. During fiscal 2012, sales to external customers accounted for 6.8% of its net sales.

Advisors' Opinion:
  • [By Sean Williams]

    Boring doesn't always mean "buy"
    You may have heard me mention recently that boring industries can often make the most profitable industries. That is generally true, but it's not a rule! This is why packaging products maker Rock-Tenn (NYSE: RKT  ) has found its way onto my "sell-now" radar.

  • [By Dr. Melvin Pasternak]

    Although I still remain cautious because of fears of tapering by the Federal Reserve, I am again trading from the long side. One stock I am currently attracted to is Rock-Tenn (NYSE: RKT), an international paper and packaging company, which according to Bloomberg, sports the highest earnings per share (EPS) in its industry.

Best Paper Companies To Own For 2015: Weyerhaeuser Company(WY)

Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.

Advisors' Opinion:
  • [By Saibus Research]

    We have an Accumulate rating on Weyerhaeuser's (WY) common stock. We believe that investors have bid Weyerhaeuser's stock up by 75% over the last six quarters because they are counting on a recovery in the housing market to serve as a catalyst for growth in WY's top and bottom lines. We can see that it would provide significant leverage to WY's bottom line because 53% of WY's operating income was used to pay debt interest, so any boost to revenue would boost WY's operating income and enable WY to generate significant gains in Net Income. We increased our fair intrinsic value per share for Weyerhaeuser from $29.02 in October to $34.88 in March and we're raising it again to $35.92. Although WY's share price has generated strong growth since 2011, we believe that the company will be able to enjoy steadily improving revenues and operating income, which will boost its pre-tax income and net income due to the financial leverage that it employs.

  • [By Dan Caplinger]

    Why are REITs under fire?
    Congress has been looking at a number of potential revenue-raising measures lately, so provisions that involve corporate tax breaks are a natural place to look. Moreover, many companies have been looking to take advantage of REIT status for all or a part of their operations, leading to concerns that the REIT format is being abused. Forest-products and timber giant Weyerhaeuser (NYSE: WY  ) converted itself to a REIT back in 2010, using its extensive timberland holdings as justification for the move. But recently, even casino operator Penn National Gaming has looked into putting its real-property holdings into a separate REIT as a possible tax-savings mechanism, with the company having gained the support of the Pennsylvania Gaming Control Board last week to take the step toward REIT status.

  • [By Louis Navellier]

    Take a look:

    General Motors (GM): In the past three months, estimates have been revised down by 24%. Analysts now forecast a 46.4% drop in sales and a 47.7% plunge in earnings for this quarter. HES is a sell. Goldman Sachs (GS): In the past month, estimates have slipped by 9%. Analysts now see a 12.2% decline in sales and a 15.6% drop in earnings for this quarter. GS is a sell. Hess (HES): In the past three months, the consensus estimate has plummeted by 52%. Analysts now expect just 3.5% annual sales growth and a 25.4% drop in earnings for this quarter. . International Business Machines (IBM): In the past 90 days, analysts have revised their estimates down by 29%. The consensus now calls for a 2% drop in sales and a 15% reduction in earnings. IBM is a sell. Mattel (MAT): In the past 60 days, estimates have fallen by 33%. Analysts now expect a 5.2% year-on-year drop in sales and a 27.3% decline in earnings for this quarter. . Newmont Mining (NEM) In the past 90 days, analysts have slashed their estimates down by 55%. The consensus now calls for a 14.9% drop in sales and a 73.2% dive in earnings. NEM is a strong sell. Nordstrom (JWN): In the past two months, estimates have fallen by 15%. Analysts now expect just 4.3% annual sales growth and a 6.8% decline in earnings for this quarter. . Target (TGT): In the past 90 days, analysts have reduced their estimates down by 28%. The consensus now calls for just 2% sales growth and an 11% decline in earnings. TGT is a strong sell. Tesoro (TSO): In the past 90 days, the consensus estimate has plunged 39%. The consensus now calls for 10% annual sales growth and a 5.5% reduction in earnings. TSO is a sell. Weyerhaeuser (WY): In the past three months, estimates have been reduced by 14%. Analysts now expect just 6.8% annual sales growth and a 3.8% dip in earnings for this quarter. WY is a strong sell.

    As I mentioned, there are two easy ways to check out how your holdings are perceived by the analyst community.

Thursday, May 22, 2014

Top Retail Companies To Buy Right Now

Fastenal (NASDAQ: FAST  ) is slated to release its quarterly report on Wednesday. Yet although investors expect Fastenal earnings to improve slightly, the big question is whether any growth will be enough to support the stock's rich valuation. Unless Fastenal can provide a nice surprise on the earnings front, the answer to that question is likely to be no.

Fastenal has its foot in two parts of the industrial and construction business, supplying corporate customers with fasteners and other products that they can then incorporate into their own work, as well as selling those products directly to retail customers. With the economy starting to perk up, can Fastenal make its mark and get its growth to accelerate? Let's take an early look at what's been happening with Fastenal over the past quarter and what we're likely to see in its quarterly report.

Stats on Fastenal

Analyst EPS Estimate

Top Retail Companies To Buy Right Now: Citi Trends Inc (CTRN)

Citi Trends, Inc., incorporate on March 3, 1999, is a retailer of urban fashion apparel and accessories for the entire family. The Company offers branded apparel from national brands, as well as private label apparel, accessories and a limited assortment of home decor items. As of February 2, 2013, the Company operated 513 stores in both urban and rural markets in 29 states. The Company�� stores average approximately 10,700 square feet of selling space and are located in neighborhood shopping centers. The Company also offers products under its brands, such as Diva Blue, Red Ape, Vintage Harlem and Lil Ms Hollywood. The Company�� store offers a variety of products for men and women, as well as children. During the fiscal years ended February 2, 2013 (fiscal 2012), the Company opened four new stores.

The Company's merchandise includes apparel, accessories and home decor. Within apparel, the Company offers fashion sportswear for men, women and children, including offerings for newborns, infants, toddlers, boys and girls. Accessories include handbags, jewelry, footwear, belts, intimate apparel and sleepwear. All merchandise sold in the Company's stores is shipped directly from its distribution centers in Darlington, South Carolina and Roland, Oklahoma.

The Company competes with TJX Companies, Inc., Ross Stores, Inc., The Cato Corporation, Burlington Coat Factory Warehouse Corp., Rainbow, Dots, It's Fashion!, Simply Fashions, Wal-Mart and Target, Kmart.

Advisors' Opinion:
  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Citi Trends (Nasdaq: CTRN  ) , whose recent revenue and earnings are plotted below.

Top Retail Companies To Buy Right Now: Axxess Unlimited Inc (AXXU)

Axxess Unlimited, Inc., incorporated on June 8, 2000, is the holding company for the Axxess family of companies. The Axxess family of companies includes both vertically-integrated operating businesses and horizontally-integrated companies with each supported by a common software technology - the Axxess RISE Platform. The Company provides next-generation business intelligence for a range of businesses and organizations. It provides information-driven business solutions through interactive marketing, interactive technologies, application and product development, customer relationship management, business intelligence, portals and collaboration, and infrastructure solutions. Its companies include Axxess Digital (AxxuD), Axxess Apps (AxxuA) and Axxess Brands (AxxuB).

Axxess Digital

AxxuD is an interactive digital agency company. The Company relies on the core logic of the Axxess Unlimited RISE platform.

Axxess Apps

AxxuA is a software development company. The focus of AxxuA includes: enterprise applications, custom applications, cloud applications and mobile applications. The Company has software-as-a-service (SaaS) solutions and custom and mobile products available in the government services, automobile dealership, medical and consumer goods sectors.

Axxess Brands

AxxuB is a marketer and manufacturer of specialty brands in better-for-you and indulgent categories under a variety of Company owned and licensed brand names. AxxuB licenses brands and provides outsource management.

Advisors' Opinion:
  • [By CRWE]

    Last Friday, WIZD remained (0.00%) +0.000 at $.200 at the close (ref. google finance August 23, 2013 ��Close).

    Axxess Unlimited, Inc. previously reported the second quarter 2013 financial results for the period ending June 30, 2013.

    Second quarter 2013 compared to second quarter 2012 results included:

    Total Revenues up 330% to $272,775 compared to $63,392
    Gross Profit grew 1076% to $193,961 compared to loss of $19,876
    Operating Expenses were up 97% as the company continued to invest in R&D and channel rollout for Axxess products and technology.
    Operating Net Income increased 103% to $3,118 compared to loss of $116,773
    Six-month period 2013 compared to six-month period 2012 results included:

    Total Revenues up 305% to $518,485 compared to $128,161
    Gross Profit grew 1212% to $352,532 compared to $26,868
    Operating Expenses were up 80%
    Operating Net Income increased 96% to a loss of $6,551 compared to a loss of $172,982

Best Defensive Companies To Own For 2015: Radioshack Corporation(RSH)

RadioShack Corporation engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Its products include postpaid and prepaid wireless handsets and communication devices, such as scanners and global positioning system (GPS) products; home entertainment, wireless, music, computer, video game, and GPS accessories; media storage, power adapters, digital imaging products, and headphones; home audio and video end-products, personal computing products, residential telephones, and voice over Internet protocol products; digital cameras, digital music players, toys, satellite radios, video gaming hardware, camcorders, and general radios; general and special purpose batteries and battery chargers; and wires and cables, connectivity products, components and tools, and hobby products. The company also provides consumers access to third-party services, such as prepaid wireless airtime and extended service plans in its ser vice platform. In addition, it manufactures various products, including telephones, antennas, wires, and cable products, as well as various hard-to-find parts and accessories for consumer electronics products; and provides repair services. As of March 31, 2011, the company operated 4,467 company-operated retail stores under the RadioShack brand name in the United States; and 1,304 kiosks located in Target and Sam?s Club stores. As of December 31, 2010, it operated 211 company-operated stores under the RadioShack brand, 9 dealers, and 1 distribution center in Mexico; a network of 1,207 RadioShack dealer outlets, including 34 located outside of North America; and 4 distribution centers in the United States. Further, the company sells its products through its Website, radioshack.com. RadioShack Corporation was founded in 1899 and is based in Fort Worth, Texas.

Advisors' Opinion:
  • [By Alex Planes]

    Apple had formally incorporated only four months earlier to secure the funding necessary to produce the first Apple IIs. The Steves -- Jobs and Wozniak, of course -- paired with early angel investor (and eventual Apple CEO) Mike Markkula to raise $250,000 in funding to build the new machine. It was the first truly complete computer ever sold to the public, as competition would not arrive on store shelves until that October with the launch of the Commodore PET, followed in November by the Radio Shack (NYSE: RSH  ) TRS-80. The Apple II, meanwhile, was commercially available in June of 1977, a mere two months after the West Coast Computer Faire.

  • [By Manoj Madhavan]

    Before joining RadioShack (RSH) as CEO in 2013, Joe Magnacca had never been a CEO before.

    2) Before joining ASDA, Archie had overseen the successful turnaround of KingFisher (then Woolworth Holdings) and had already made a name for himself as a future high potential would-be CEO.

  • [By Rick Aristotle Munarriz]

    Getty Images/Bloomberg/Gianluca Colla Companies can make brilliant moves, but there are also times when things don't work out quite as planned. From a CEO busted for spying on a larger rival to a satellite television provider raising the bar, here's a rundown of the week's smartest moves and biggest blunders in the business world. DISH Network (DISH) -- Winner In a deal with bigger implications than you may initially think, Disney (DIS) is giving DISH Network rights to stream live and on-demand shows from ABC, Disney and ESPN. This is a truly mobile service, opening the door for DISH to begin offering a standalone Web-based service. A lot of bigger companies than DISH have tried to talk major networks and broadcasters into similar arrangements, only to be shot down. DISH succeeded because it had a bargaining chip in its ad-skipping Hopper DVR technology. DISH agreed that users of the streaming service wouldn't be able to zap through the commercials for newer Disney shows. Modell's Sporting Goods -- Loser Dick's Sporting Goods (DKS) is filing a complaint in a New Jersey court after it caught Mitchell Modell -- CEO of rival Modell's -- spying on it. The lawsuit claims that Modell posed as a Dick's executive to gain access to private areas and learn business techniques at Dick's. If the allegations hold up, Modell's behavior was at the very least unethical, not to mention ironic -- a sporting goods chain's helmsman resorting to such unsportsmanlike conduct. Wouldn't it have been easier to just hire a Dick's executive? Zillow (Z) -- Winner Speaking of the right way to pry away information from a competitor, Zillow announced on Wednesday night that it was bringing on a key executive from Realtor.com parent Move (MOVE). A new position of chief industry development officer is being created for Errol Samuelson, who previously served as president of Realtor.com and Move's chief strategy officer. The beautiful thing about prying away a key employee from another

  • [By GuruFocus]

    Dr. Paul Price wrote an article called Wake-Up Calls Often Come Too Late. He discussed the collapses of the stock prices with Green Mountain Coffee (GMCR), Netflix (NFLX) and Soda Steam (SODA). As pointed correctly out by Adib Motiwala, value investors are rarely hurt by companies like Green Mountain Coffee, Netflix and Soda Steam. The reason is simple. These stocks are usually traded at extremely high valuation and value investors would normally avoid the situations like these. Value investors are much more likely hurt by the stocks like Nokia (NOK), RadioShack (RSH) and Research-in-Motion (RIMM) as these stocks have been traded for very low valuations. Value investors thought that they were buying into value, while they were actually buying into value traps. The valuation just gets lower, and lower.

Top Retail Companies To Buy Right Now: CVS Corporation(CVS)

CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.

Advisors' Opinion:
  • [By Alex Planes]

    The right prescription for growth
    The first CVS (NYSE: CVS  ) opened in Lowell, Mass., on May 8, 1963. It was initially known as "Consumer Value Stores," hence the CVS acronym, and was a health and beauty retail chain until 1968, when the first pharmacy departments popped up in some of the company's 40 locations. That same year, the Melville Corporation (a leading shoe retailer) acquired CVS, which made the drugstore chain only a small part of a very large retail organization. In 1974, CVS made up less than 15% of Melville's total sales, despite operating over 200 stores, of which 45 contained pharmacy departments.

  • [By DAILYFINANCE]

    David Tulis/AP It's beginning to look a lot like ... the day after Christmas? On the day before Christmas, retailers turned shoppers' attention to the day after the holiday. Amazon.com (AMZN) already is offering "after Christmas" deals of up to 70 percent off clothes and 60 percent off some electronics. Old Navy (GPS) is running TV ads that its "after-holiday sale starts early" with discounts of up to 75 percent off. And CVS (CVS) was selling a wine cabinet for $10 off at $39.99 and three fleece throws for $9.99 on Christmas Eve. Heather Nadler, 38, stopped by the CVS in Decatur, Ga., on Tuesday, searching for stuffed animals for her children. But she still plans to hit up sales after Christmas. "I'll probably start shopping for me at that point," she said. Stores usually wait until after Christmas to offer discounts of up to 70 percent or more on holiday merchandise that didn't sell. But Americans who are still worried about the economy have held tightly to their purse strings this year, and store sales have fallen for the past three consecutive weeks. The pre-Christmas deals come as retailers are feeling pressure to attract Americans into stores during the final week of what's typically the busiest shopping period of the year. The two-month stretch that begins on Nov. 1 is important because retailers can make up to 40 percent of their annual sales during that time. Sales at U.S. stores dropped 3.1 percent to $42.7 billion for the week that ended on Sunday compared with the same week last year, according to ShopperTrak, which tracks data at 40,000 locations. That follows a decline of 2.9 percent and 0.8 percent during the first and second weeks of the month, respectively. Stores had a problem even getting Americans into stores, let alone getting them to spend. The number of shoppers fell 21.2 percent during the week that ended on Sunday, according to ShopperTrak. Karen McDonald, a spokeswoman at Taubman Centers, which owns or operates 28 malls, estima

  • [By Dan Burrows]

    Specifically, IRC specializes in retail locations. Some of its biggest customers are national chains like Walmart (WMT) and CVS (CVS).

    Also, IRC is the only name in this group of dividend stocks that’s above $10 as of this writing … but I wouldn’t hold that against Inland.

  • [By Matt Brownell]

    Alamy Following an onslaught of media coverage and social media mockery, CVS has agreed to stop giving comically long receipts to its ExtraCare Rewards members. In a Facebook post Friday night, CVS (CVS) chief marketing officer Rob Price acknowledged the complaints about its receipts -- which in some cases measure more than 3 feet long for a single item -- and said it would take steps to shorten them. "You asked for ALL the savings and LESS paper," he wrote. "So, we've found a way to reduce the size of the ExtraCare portion of your receipts by 25% while still providing you all the coupons and rewards." He went on to say that the shorter receipts will be rolling out in the next few weeks, and that the "Send to Card" program, which allows you to send select coupon offers directly to your ExtraCare card, will be expanded next year to include all coupons and offers. That means that ExtraCare members can get all the offers, but with a standard-sized receipt. We stumbled across the issue last week, when an AOL employee bought a single item at a local CVS and wound up with a 38-inch receipt. As we would discover, plenty of shoppers had begun grumbling on social media about similarly long receipts, with some musing about alternative uses for the paper. Other media outlets, including FastCompany and the Huffington Post, likewise picked up on the spreading meme. In its post Friday, CVS showed some sense of humor, acknowledging the "very creative uses" people had come up with for their receipts. It's worth noting that the receipts are still going to be pretty long. It's only a 25% reduction, and only in the coupon portion of the receipt; by our math, that's a reduction of between 6 and 10 inches, so you're still looking at receipts that are upwards of 2 feet in length. That's not quite long enough to wear as a beauty pageant sash, and will prompt a bit less mockery on Twitter, but it still seems like quite a waste of paper. So if that's a concern for you, by all mea

Top Retail Companies To Buy Right Now: Pier 1 Imports Inc (PIR)

Pier 1 Imports, Inc. (Pier 1 Imports), incorporated in April 30, 1986, is a global importer of imported decorative home furnishings and gifts. As of March 2, 2013, the Company had 1,062 stores in the United States and Canada. During the fiscal year ended March 2, 2013 (fiscal 2013), the Company opened 22 new Pier 1 Imports stores and closed 12 stores. The Company operates regional distribution center facilities in or near Baltimore, Maryland; Columbus, Ohio; Fort Worth, Texas; Ontario, California; Savannah, Georgia, and Tacoma, Washington. The specialty retail operations of the Company consist of retail stores and e-Commerce operations conducting business under the name Pier 1 Imports, which sell a range of furniture, decorative home furnishings, dining and kitchen goods, candles, gifts and other specialty items for the home.

As of March 2, 2013, the Company operated 982 Pier 1 Imports stores in the United States and 80 Pier 1 Imports stores in Canada. During fiscal 2013, the Company supplied merchandise and licensed the Pier 1 Imports name to Grupo Sanborns, which sold Pier 1 Imports merchandise primarily in a store within a store format in 49 Sears Mexico stores and one store in El Salvador. The stores consist of freestanding units located near shopping centers or malls and in-line positions in major shopping centers. Pier 1 Imports operates in all major United States metropolitan areas and many of the primary smaller markets.

Decorative Accessories

This merchandise group constitutes the range of category of merchandise in Pier 1 Imports��sales mix. These items are imported primarily from Asian and European countries, as well as some domestic sources. This merchandise group includes decorative accents, lamps, vases, dried and artificial flowers, baskets, ceramics, dinnerware, bath and fragrance products, candles, seasonal and gift items.

Furniture

This merchandise group consists of furniture and furniture cushions to be used in livin! g, dining, office, kitchen and bedroom areas, sunrooms and on patios. Also included in this group are wall decorations and mirrors. These goods are imported from a variety of countries such as Vietnam, Malaysia, Brazil, Thailand, China, the Philippines, India and Indonesia, and are also obtained from domestic sources. This merchandise group is made of metal or handcrafted natural materials, including rattan, pine, beech, rubberwood and selected hardwoods with either natural, stained, painted or upholstered finishes.

Advisors' Opinion:
  • [By DailyFinance Staff]

    Concerns about the political uncertainty in Ukraine caused some volatility in the markets Friday afternoon, with the major indexes making several U-turns ahead of the weekend. The Dow Jones industrial average (^DJI), which had been up by as much as 125 points, briefly dropped into loss territory before rebounding to end 49 points higher. The Standard & Poor's 500 index (^GPSC) edged up 5 points, adding to Thursday's record high, but the Nasdaq composite (^IXIC) lost 10 points. AP/Darko VojinovicPro-Russian militias have seized local government buildings in Crimea, Ukraine; the unrest there is making investors around the world nervous. February was a great month for investors. All three major averages jumped by about 4 percent. UnitedHealth Group (UNH) led the blue chips, gaining 1½ percent. Other health providers – Aetna (AET), Wellpoint (WLP), Cigna (CI) and Humana (HUM) -- all gained between 1½ and 2 percent. And retail stocks remained active. Target (TGT) added another 3 percent. Best Buy rose 4 percent, and Fred's (FRED), a regional department store chain, jumped 10 percent. But Pier 1 (PIR) fell 5½ percent after lowering its earnings outlook for a second time. That led to a series of brokerage downgrades. Decker Outdoor (DECK) tumbled 12 percent. The maker of footwear brands such as Ugg and Teva issued a weak outlook. And apparel maker Lululemon (LULU) fell 5-percent on negative comments from Credit Suisse. It seems as though there are always some big movers in the drug and biotech sectors – and that was certainly the case today. GW Pharmaceuticals (GWPH) rose 2 percent after the FDA granted orphan status to its drug to treat a rare form of childhood epilepsy. But most of the action was on the downside. Endologix (ELGX) slid 24 percent after forecasting lower revenue growth. Questcor (QCOR) fell 10 percent. It's lost big for three straight days amid allegations of questionable business practices. Jazz Pharma

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Pier 1 Imports (NYSE: PIR  ) , whose recent revenue and earnings are plotted below.

  • [By Roberto Pedone]

    My first earnings short-squeeze trade idea is Pier 1 Imports (PIR), a global importer of imported decorative home furnishings and gifts, which is set to release numbers on Thursday before the market opens. Wall Street analysts, on average, expect Pier 1 Imports to report revenue of $404.64 million on earnings of 21 cents per share.

    Just recently, Argus said the recent pullback in shares of Pier 1 Imports is providing an attractive entry point, and the firm reiterated its buy rating on the stock with a $27 per share price target. The firm believes that Pier 1 Imports should hold up well in a promotional and competitive environment.

    The current short interest as a percentage of the float Pier 1 Imports stands at 5%. That means that out of the 97.51 million shares in the tradable float, 4.90 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of PIR could jump sharply higher post-earnings as the bears rush to cover some of their bets.

    From a technical perspective, PIR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last month, with shares moving higher from its low of $20.59 to its intraday high of $23.23 a share. During that uptrend, shares of PIR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PIR within range of triggering a near-term breakout trade post-earnings.

    If you're bullish on PIR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $23.50 to $24 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.25 million shares. If that breakout hits, then PIR will set up to re-test or possibly take out its 52-week high at $25.28 a share. Any

Top Retail Companies To Buy Right Now: Starbucks Corporation(SBUX)

Starbucks Corporation purchases and roasts whole bean coffees. It operates approximately 16,858 stores, including 8,833 company-operated stores and 8,025 licensed stores. The company offers approximately 30 blends and single-origin premium arabica coffees. It also provides handcrafted beverages, such as fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno smoothies, and Tazo teas; and merchandise products, including home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books, and gift items. In addition, it offers fresh food items, which comprise baked pastries, sandwiches, salads, oatmeal, yogurt parfaits, and fruit cups. Further, it also provides VIA ready brew coffee, bottled frappuccino beverages, discoveries chilled cup coffee, doubleshot espresso drinks, iced coffee, whole bean coffee, and ice creams. The company?s brand portfolio includes Tazo tea, Ethos water, Seatt le?s Best Coffee, and Torrefazione Italia Coffee. Starbucks Corporation sells its products in approximately 50 countries worldwide. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Andrew Marder]

    How much is too much to pay in corporate tax? For Starbucks (NASDAQ: SBUX  ) , the answer used to be "any." The company managed to go five years without paying corporate tax in the U.K. because the business wasn't profitable. On Sunday, it broke the streak and forked over 5 million pounds in taxes to the British government.

  • [By Ben Levisohn]

    Goldman Sachs, however, does see a pickup in capital spending, which is generally linked to an acceleration in economic growth and and an increase in sales, as companies only start to spend after they see a “�increased activity and demand.” That could benefit companies who aren’t spending much now but have strong returns on invested capital, including�Marathon Oil�(MRO),�ConocoPhillips�(COP), and�Starbucks (SBUX).

  • [By Erin McBride]

    America's two favorite doughnut brands are without question�Dunkin' Brands (NASDAQ: DNKN  ) and Krispy Kreme Doughnuts (NYSE: KKD  ) . But which brand does America love more? Let's take a look at three tasty stocks -- Krispy Kreme, Dunkin' Brands, and their kissing cousin�Starbucks (NASDAQ: SBUX  ) �-- to decide.

Top Retail Companies To Buy Right Now: The Pantry Inc.(PTRY)

The Pantry, Inc. operates a chain of convenience stores in the southeastern United States. The company?s stores offer a selection of merchandise, fuel, and ancillary products and services. Its merchandise products include cigarettes, grocery and other tobacco products, packaged beverages, beer, and wine. The company operates stores under various selected banners, which primarily include Kangaroo Express. As of September 29, 2011, it operated 1,649 convenience stores located in Florida, North Carolina, South Carolina, Georgia, Alabama, Tennessee, Mississippi, Virginia, Kansas, Kentucky, Louisiana, Indiana, and Missouri; and 233 quick service restaurants. The company was founded in 1967 and is headquartered in Cary, North Carolina.

Advisors' Opinion:
  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Pantry (Nasdaq: PTRY  ) , whose recent revenue and earnings are plotted below.

  • [By Geoff Gannon]

    For one thing, I can�� tell a great oil company from a not so great oil company. I can�� evaluate the company�� culture, management, etc. There was no way I was ever going to answer questions like that. But I can easily split Murphy�� U.S. retail business from its other operations. And I can compare that part of the company to other public companies like Pantry (PTRY) and Susser (SUSS). I can also ��this is much harder ��look at Murphy�� reserves and compare them to other oil companies��reserves. The SEC now requires a standardized way of reporting discounted net cash flows for all oil companies. So, there�� certainly a specific number available for every company. Whether it�� a very good number or not depends on the assumptions the method uses.

  • [By Jeremy Bowman]

    What: Shares of The Pantry (NASDAQ: PTRY  ) were down as much as 15% today after the convenience-store chain posted a second-quarter loss and missed Wall Street estimates.

  • [By Sean Williams]

    Much of the same can be said about The Pantry (NASDAQ: PTRY  ) , a predominantly Southeastern U.S. convenience store chain that operates under the Kangaroo Express name. Food inflation has been minimal, the weather hasn't been as cooperative, and consumer traffic fell 4.6% in its most recent quarter. But where other investors see weakness, I see an opportunity.

Top Retail Companies To Buy Right Now: SK3 Group Inc (SKTO)

SK3 Group, Inc. (SK3), formerly CTT International Distributors Inc., is a development-stage company. The Company was formed by the merger of Slabsdirect.com, Inc. and CTT International Distributors Inc. SK3 has one subsidiary, CTT Distributors Ltd., which is the operating company. SK3 is in the e-commerce business and provides non-branded computer and electronic merchandise at discount prices to the Internet consumer through its Website www.cheaperthanthem.com. The Website is hosted by Ezyra E-Business Services, an unrelated party, which charges SK3 an annual fee to host the Website. In December 2009, Healthcare of Today, Inc. acquired controlling interest in the Company. In December 2009, the Company acquired NuvoDigital Technology, Inc., a data security technology firm based in Salt Lake City. In addition, in December 2009, the Company's parent company Healthcare of Today, Inc. acquired Xenotis Pty Ltd. In February 2011, the Company acquired PRN Registry. In March 2011, the Company completed the acquisition of HealthStaff Training Institute. In March 2011, the Company acquired W&M Medical Management, Inc. Effective March 14, 2013, the Company acquired Medical Greens, a provider of medical logistics services.

SK3 has a direct business, in which it buys and takes possession of excess electronic and computer inventory for resale (Direct Business). In addition, SK3 has a fulfillment partner business, in which SK3 facilitates the sale of merchandise of other retailers, cataloguers or manufacturers (Fulfillment Associates) through the Website (Fulfillment Business). For both the direct business and fulfillment business, SK3 has developed a consumer and a wholesaler sales channel.

SK3�� Direct Business involves buying and taking possession of inventory for resale. The Company offers moving picture experts group layer-3 audio (MP3) players and a frequency modulation (FM) transmitter accessory for MP3 players on the Website. SK3 seeks to become an online retailer offering non-b! randed electronic and computer merchandise for sale over the Internet. SK3�� Fulfillment Business sells merchandise of Fulfillment Associates through the Website. SK3 manages the orders collected for the Fulfillment Associates through the Website and forwards the orders on to the Fulfillment Associate, who then fills the order. The Fulfillment Associates perform essentially the same operations as a warehouse: order picking and shipping.

Advisors' Opinion:
  • [By James E. Brumley]

    Truth be told, it's not clear if SK3 Group Inc. (OTCMKTS:SKTO) is best described when compared to a name like Cerner Corporation (NASDAQ:CERN), or to a Gentiva Health Services, Inc. (NASDAQ:GTIV). The company's got elements of both major industries being represented by CERN and GTIV (home health care, and information technology), with the addition of another budding industry thrown into the mix. One thing IS clear though... SKTO shares have decidedly reversed a nasty downtrend, and may now be one of the market's best small cap healthcare speculative trades.

Wednesday, May 21, 2014

Gallagher: SEC Fiduciary Rule Won’t ‘Stave Off’ DOL Redraft

A fiduciary rulemaking by the Securities and Exchange Commission would not “stave off” the planned upcoming release of a fiduciary redraft by the Department of Labor, SEC Commissioner Daniel Gallagher said Tuesday.

“I don’t necessarily feel that people should take solace in an SEC rulemaking to stave off a DOL rule,” Gallagher said during a one-on-one discussion with Richard Ketchum, CEO of the Financial Industry Regulatory Authority, during the self-regulator’s annual conference in Washington.

The rerelease of a DOL rule proposal to amend the definition of fiduciary under the Employee Retirement Income Security Act is “a very real issue, and we have to take it into account,” he said.

The SEC is “getting called out by all sectors” for moving slowly on a fiduciary rulemaking, Gallagher continued, “but it’s the best of what the SEC does: acting deliberately.”

Said Gallagher: “Some folks have come to us and said do a rulemaking because it will stave off Labor. I don’t like rulemaking to stave off other people; [An SEC fiduciary rule has] to make sense based on the merits. And I’m not convinced that [an SEC proposal] would” stop the DOL from reissuing a rule proposal.

DOL is “going to do what they do,” and DOL is “dealing with different issues and a very different statutory construct” under ERISA, Gallagher said. Plus, he said, Section 913 of the Dodd-Frank Act is “very limited” in the authority it gives. “It is important that our staffs are working closely together [on the fiduciary rulemaking], and they are.”

While SEC Chairwoman Mary Jo White has said the commission would decide this year whether to move forward on a fiduciary rule, Gallagher said that “in many languages, 2014 can mean never.”

Gallagher, a Republican, who reiterated that he has yet to be convinced that an SEC fiduciary rulemaking is needed, also noted that he wasn’t sure whether DOL would stick to its planned August redraft release.

He also said that he worries about moves by special interest groups who see the fiduciary issue as a “great election year issue” to push for roll out of the DOL and SEC fiduciary rulemakings between now and the November elections.

Gallagher also revisited comments he made in a recent speech about the need to boost the number of advisor exams, and that the commission should fix the exam imbalance between brokers and advisors by allowing third-party advisor exams — including “potentially, defining the term ‘third party’ to include SROs in order to allow the SROs currently involved in broker-dealer oversight to conduct examinations of ‘dual hatted’ investment advisors as well.”

Gallagher said during the FINRA event Tuesday that the commission’s current seven-year exam cycle of advisors is leaving the agency vulnerable to missing another Madoff-type fraud. “We are just sitting there as an institution with our chin out waiting to get pummeled,” he said. “We’re not even ‘there’ with advisors” in terms of an adequate number of exams. /* .premium-promo { border: 1px solid #ddd; padding: 10px; margin: 0 10px 10px 0; width: 200px; float: left; } .premium-promo li, .premium-promo ul { list-style-type: none; margin: 0; padding: 0; } .premium-promo li { margin: 0 0 10px; padding: 0 0 10px; border-bottom: 1px dotted #ddd; } .premium-promo h3 { text-transform: uppercase; font-size: 11px; } .premium-promo h4 { font-size: 16px; } .premium-promo a { text-decoration: none !important; } .premium-promo .btn { background: #0069a1; border-radius: 4px; display: inline-block; padding: 5px 10px; clear: both; color: #fff; font-weight: bold; } .premium-promo .btn:hover { background: #034c92; } */ Gallagher suggested at the FINRA event that the SEC create a rule to allow advisors to have third-party exams. But such a rule, he said, would “not mandate SROs” (such as FINRA) to be the third party, noting that such a rule would “allow choice.”

However, he conceded that how the SEC would oversee those third-party auditors would have to be determined.

In talking with reporters on the sidelines of the FINRA event, Gallagher clarified that given that the SEC already has the authority to examine advisors, the rulemaking regarding allowing third-party audits would delve into “how [the SEC] examines advisors,” giving advisors the option to get a third-party review.  

"I congratulate Gallagher on bringing that issue [of third-party exams] forward," Ketchum said during a coversation with reporters, noting that he see little political appetite for Rep. Maxine Waters' bill, the Investment Adviser Examination Improvement Act of 2013, H.R. 1627, which would allow the SEC to collect user fees from advisors to fund their exams.

Sunday, May 18, 2014

Caleb Brown: The 2014 IA 25 Extended Profile

When Caleb Brown graduated from the Texas Tech financial planning program in 2002, it took him a while to get an advisor to “take a risk” and hire him. After that, he saw a lot of qualified students “who were built to be great financial planners” leave the industry entirely because they couldn’t find a job or the jobs they did get weren’t right.

“I said to myself ever since that point, ‘We can’t continue as a profession if we continue to lose these quality people, so I’m going to try to do everything I can for this not to happen,’” Brown said in an April interview.

Since then, Brown has served on the board of directors for FPA Dallas-Fort Worth, where he implemented a career day program that has been adopted by several other chapters.

“Up until that time, career development meant, ‘We’re going to provide a program for the 55-year-old CFP, business owner, bald-headed guy,’” Brown said. “And I said, ‘We’re not going to do that anymore.’”

Brown started a program that focused on career changers and students, educating them on the career options the financial services industry provides. “Here are the different kinds of firm models, compensation models,” he said. “They don’t get a lot of that in their classes.”

He started New Planner Recruiting in 2009 with Michael Kitces (also an IA 25 honoree this year) and now spends the majority of his time helping firms “get it right” when it comes to bringing in the next generation of talent.

Attracting the next generation isn’t much different from attracting new clients, Brown argues: firms need to differentiate themselves. “When I’m on the phone talking to candidates, I’ve got to have something that I can get them excited about. If they’re any good, they’re going to have two or three different offers. If my client doesn’t have a good story to tell, I’m never going to get the position filled.”

Beyond that, firms need to offer students the opportunity to grow into advisors. “New planners want to have exposure to client meetings, they want to do meaningful work,” Brown said. “They want to make sure they’re heard and their opinions are at least considered,” even if they aren’t implemented.

“The fact of the matter is, the CFP programs are very good, but you’re learning the science of financial planning; you’re not really learning the art,” Brown said. “In our business, unlike law, medicine or accounting, it’s much more art than it is science.”

As advisory firms focus more on career changers and next-gen for talent, Brown expects fewer firms will try to grow their practice by stealing experienced advisors away from competitors. In fact, they’re already abandoning that as a strategy. “Even though hiring someone with very little experience is a time commitment, you at least have a clean slate to work with; it’s going to be a time commitment with an experienced person as well,” Brown said.

Instead, firms are building internal internship programs, sometimes called “residency programs,” Brown said. They understand that finding qualified new hires is difficult in the few months prior to their graduation, so they’re starting to look for them earlier. “It’s like a baseball team,” he said. “Let’s see what our farm team looks like and see if we want to make a hire.”

One strategy that established firms are adopting, according to Brown, is to implement an “emerging wealth division.”

“They’re taking the same approach to developing their new talent to develop their next generation of clients,” Brown said. “Someone who doesn’t have $2 million to manage but who is 30 years old and is going to earn a lot of income, let’s turn them into a good client. When I started the business, the firms out there were not interested in clients like that.”

Brown said he’s seeing career changers from the accounting, engineering, real estate and computer-related fields. They may be making good money there, he said, but “ultimately what it comes down to is it’s not rewarding.”

One challenge for advisors is one that they’ve tried to protect their clients from, Brown said. “Even though we preach all day to our clients that they need to be proactive, we’re reactive with a lot of these business planning actions.”

(Check out Investment Advisor's full IA 25 for 2014 list on ThinkAdvisor.)