Next Round: Catching up with rye beers

Rye bread? I usually pass. But rye beer? Why not?

You're probably seeing beers with rye used in the brewing process more frequently these days at your favorite watering hole and beer retailer. But rye beers aren't new.

Back in 2002, Terrapin Beer Co., of Athens, Ga., won a Gold Medal for American Pale Ale with its Rye Pale Ale. Other breweries that dabble in rye include Firestone Walker Brewing Co. and its Wookey Jack Black IPA, Sierra Nevada (Ruthless Rye), Dogfish Head (Ryehoboth) and Samuel Adams (Revolutionary Rye Ale).

Brewers use rye as a way to add a new dimension to beer. Rye typically imparts a spicy flavor and injects other complexities. Here are some recent rye releases:

Boulevard Grainstorm Black Rye I.P.A. (750 ml. bottles and draft, boulevard.com). Kansas City, Mo.-based Boulevard Brewing Co. delivers a twist on a twist with this limited-edition brew. Black India Pale Ales, achieved with dark roasted malts, have been a style on the rise. Now brewers are tweaking black IPAs with a dose of rye.

Malted rye imparts a spicy crispness that makes Grainstorm eminently quaffable despite its 7.7% alcohol level. Its pleasantly bitter introduction is achieved with a blend of four types of hops (Amarillo, Bravo, Citra and Simcoe). Make sure to take a look at the label, an American folk artsy design that mashes up the beer's ingredients and the USA TODAY weather map.

Green Flash Road Warrior (12 oz. and 22 oz. bottles and draft, greenflashbrew.com). For a bit more bitterness and a bit more booze, try this seasonal Imperial IPA from San Diego's Green Flash Brewing Co.

Road Warrior pours like a reddish ale with an upfront piney aroma. Delicate and clean, the ale drinks like a beer much below its 9% ABV.

Green Flash created the beer as a tribute to its road-tested sales team, and as an alternative to summer's lawnmower beers — as with the Grainstorm, rye adds to the refreshment factor.

The Bruery Smoking Wood (22 oz. bottles, www.bruery.com). This Los ! Angeles area brewery — it's in Placentia, Calif. — takes rye beer to another level by aging a rye porter in rye whiskey barrels.

The beer pours out dark as oil, topped with a small layer of milk chocolate foam. From the outset, Smoking Wood exudes a sweet, complex flavor — and make no mistake — a boozy kick. It clocks in at 10% ABV.

In addition to vanilla expressions, a woody smokiness is evident from beachwood- and cherrywood-smoked malt. If you've already tried lower-alcohol rye beers, like Stone Brewing Co.'s Spröcketbier, a rye Kolsch, this is a nice way to take your rye research to the next level.

Next Round takes a regular look at new and recently released craft beers. If there's one on your radar, or if you have suggestions or questions, contact Mike Snider via e-mail. And follow Snider on Twitter: @MikeSnider.

What Will Put the Brakes on Housing

A friend of mine recently tried to purchase a home in Northern California. He gave up after a year of trying. Few homes were available for sale, and those on the market were quickly snatched up by investors paying all cash.

This is becoming more common. In June, nearly 70% of for-sale homes received multiple offers, up from 50% two years ago, according to Redfin.

Nationwide home prices are up 12% from a year ago. Some regions have enjoyed 20% growth. This is way above what anyone should expect real estate to gain in the long run. And it's a product of one simple fact: The supply of homes for sale was recently at the lowest level since the housing bubble last decade.

In a healthy real estate market, enough homes will be on the market to supply about six months of sales activity. Earlier this year, supply dropped all the way to 3.9 months, or the lowest since 2004.

But things are changing. Supply is ramping up again, now running at 5.2 months' of sales:

Keep an eye on this. Rising supply almost certainly means growth in home prices will cool off. This should come as no surprise -- no one should have expected prices to keep growing at more than 10% per year.

The question is how high supply might go. Three forces will guide its direction.

1. Owners gaining positive equity. 2.5 million homeowners regained positive equity -- meaning their home is worth more than they owe on the mortgage -- in the second quarter, according to CoreLogic. Some of these homeowners have been itching to sell for years and just now have the opportunity.

But judging how many will do so is difficult. Even homeowners who once wanted to sell and move might opt to stay put even with positive equity. It's a wild card. 

2. Homebuilders adding to supply. Homebuilders recently discovered something that's been elusive for years: the ability to raise prices. The balance they now need to strike is how much to ramp up supply versus holding back supply to maximize prices. PulteGroup (NYSE: PHM  ) CEO Richard Dugas said earlier this year: "In a number of communities across the country, demand has been so strong that we have taken action to slow the overall pace of sales."

But some may have a hard time ramping up supply even if they want to. As The Wall Street Journal noted last week:

Most builders responding to a recent survey released Wednesday by the National Association of Home Builders noted that lots ready for construction remain in short supply, and that scarcity is among the chief factors hindering the housing recovery.

Homebuilding CEOs have been clear in recent conference calls: There are far too few homes given demographic demand. As Lennar (NYSE: LEN  ) CEO Stuart Miller put it, "The bottom line is that there are too few dwellings for a growing population and for normalized household formation."

3. Pent-up household formation demand
21.6 million Americans age 18-31 live with their parents, according to Pew Research Center. That's a record, and up from 18.5 million in 2007.

There are two ways to look at this: Either it's a new normal that reduces long-term demand for housing, or it's a short-term function of the Great Recession that will return to normal once the economy picks up. I'd bet on the latter. And when jobs growth returns and household formation picks up -- it's still below its long-term trend -- demand for homes will rise as well. Like so many other statistics, the glut of young people living in their parents' basements is both depressing and a reminder of how far things have to go before we're back to normal.

From more on what to expect from the housing market in the long run, see here. 

At Work: Skip the musings in cover letter

Eric Zuckerman goes crazy when job hunters send cover letters that begin with a quote or poem.

Take this letter that started off with Robert Frost's awkwardly and somewhat inaccurately converted prose:

COLUMN: Take the dread out of cover letters
COLUMN: Packaging can trump all

"Two roads diverged in a wood and I took the one less traveled by, And that had made all the difference." The letter went on, "My career has not been one of just circumstances, but what has been right. And that has led me to …"

Zuckerman, president of PacTeam Group in Paramus, N.J., says he can't remember more because he didn't finish the letter.

But he remembers what he was thinking as he read it.

"What's your point? Who are you? Can we get to the meat here? I love Robert Frost, but what are you doing? You have my attention for 30 seconds. You're going to waste it while I read a poem?"

His advice: Make that glance count.

Another cover letter he received one fall started off like this: "It's that time of year we are thankful and to enjoy some quality time with friends and family." The next sentence said, "I have six years experience." It had nothing do with anything, he points out.

What would he like to see in a cover letter — and quickly?

A letter that in so many well-chosen words covers these three points:

1. Hello, I was excited to see that your company does such and such.

2. I noticed in your job posting that you need these particular skills and experiences.

3. I've been doing that exact thing, and here is how I can help you.

Instead, a lot of people feel compelled to write something "creative" that makes them stand out. But getting attention for the sake of creativity is missing the point.

The point is to write a rousing cover letter that enhances your chances of getting to the next step — a follow-up phone call, e-mail or interview.

Throw your prospective employer a bone: Find out about the growth plans for the doggie day care where you want to work and tell how your expertise can make that possible.(Photo: Getty Images)

Instead of getting attention, think of your cover letter as setting the tone, as an entryway into the mind of a potential employer. Remember, this is an employer's first impression and based on that, this person is deciding very quickly whether to go further.

STORY: Catch the eye with captivating cover letter
TIPS: CareerBuilder cover letter handbook

Another awful way to make your first connection is to be too casual.

"Hey! How are you?" wastes precious time.

This is a business letter. Write it like one.

It doesn't have to be stilted and uninspiring, but you're not talking to your buddy either.

And don't ever start with this: "I have a degree in mathematics and am presently looking for an opportunity." Telling an employer what you want and the degree you possess does nothing to address what's on her mind: "What will you do for me?"

Enter the employer's world. If you were that person, what does a job applicant need to say to show an understanding of your business and what you need?

How about something like this: "I read about your new facility and goal to open offices in Indiana and Michigan." Then explain how your skills and background can help her achieve those goals.

Make it impossible for her to not want to learn more.

Or how about: "When I heard you speak at the Bring Fido dog convention in Wisconsin, I was intrigued with your goal to build doggie day cares in four urban areas by April."

Share details about why you, with your in-depth expertise in operations and passion for taking care of animals, can help do this. Show your excitement about what the employer is trying to! achieve ! and how you're the person needed.

And to make that glance pay off, impart that message in the very first sentence then keep on going until the very last word.

Career consultant Andrea Kay is the author of This Is How To Get Your Next Job: An Inside Look at What Employers Really Want. Reach her at andrea@andreakay.com. Twitter: @AndreaKayCareer.

Toll Brothers Posts Blowout Profits, But Don’t Sound an All-Clear for Housing

Popular Posts: 5 Midcap Stocks to Buy for Growth AND Stability5 Stocks to Sell in JuneThe Top 10 S&P 500 Dividend Stocks for March Recent Posts: 5 Stocks to Sell in June Toll Brothers Posts Blowout Profits, But Don’t Sound an All-Clear for Housing Bank of America Dividend Request Is Looking Good (BAC) View All Posts

Outside of a financial crisis of historical proportions, you can’t really go wrong selling stuff to rich people.

Just look at luxury homebuilder Toll Brothers (TOL), which reported soaring quarterly profits despite a slowdown in the housing market.

Rising mortgage rates and weaker housing data were pointing to housing market weakness ever before brutal winter weather gripped so much of the country earlier this year. That tampered the outlook for homebuilders, which have cooled off substantially after reaping the rewards of a big bounce back in 2011 and 2012.

But those fears appear to be unfounded — at least for high-end homebuilders — as Toll Brothers beat analysts’ fiscal second-quarter estimates for both earnings and revenue. It also should allay some anxiety felt by anyone holding TOL stock, which is on its way to breakeven for the year-to-date on the surprisingly strong earnings and outlook.

For the three months ended April 30, Toll Brothers said profit more than doubled by a wide margin, jumping 164% to $65.2 million, or 35 cents a share, from $24.7 million, or 14 cents a share, in the year-ago period. Analysts surveyed by Thomson Reuters projected earnings of just 26 cents a share.

In more good news for TOL stock, the top line rose sharply to likewise eclipse Street estimates by a wide margin. Revenue increased 67% to $860.4 million. Analysts were looking for revenue of $828 million.

Toll Brothers Not Necessarily a Bellwether

It’s unclear how much of the good fortune at Toll Brothers extends to the broader collection of homebuilders. After all, Toll Brothers sells homes with an average price of $706,000, up from $577,000 a year ago. Indeed, the strong quarter was driven by price and volume gains.

But most rival homebuilders’ customers aren’t looking to spend anywhere near that level.

Furthermore, Toll Brothers — and TOL stock — benefits from building in the wealthy corridor from Boston to Washington, D.C. Toll Brothers also is developing condos-for-sale projects in the affluent New York City/northern New Jersey area, as well as Philadelphia.

By catering to the wealthy, Toll Brothers is able to enjoy rapid price escalation even as national home prices rise much more slowly.

On the other hand, housing recoveries tend to ebb and flow, according to Toll Brothers CEO Douglas C. Yearley Jr., so the slowdown may just be a normal pause for the market and the homebuilders. As Yearley said in a media release:

“We note that last cycle’s recovery, in the early 1990s, began with a period of rapid acceleration, followed by leveling, before further upward momentum. We believe that we are in a similar leveling period in the early stages of the housing recovery with significant pent-up demand building.”

Even if that’s the case, and there’s more upside for the housing market and homebuilders ahead, that doesn’t make Toll Brothers’ shares a buy on the latest news. TOL stock was already trading at a 26% premium to its competitors on a forward earnings basis, according to data from Thomson Reuters Stock Reports, so today’s good news appears to have been more than reflected in the stock’s price.

Toll Brothers might be too pricey to add to any position here, but the future looks bright enough that you sure wouldn’t want to sell it, either.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.

This Acquisition Will Add to Google's Long-Term Growth

It's all going to be about what OS is eventually going to not only be powering your computer and phone, but running in your vehicle and controlling the appliances in your home. Companies like Apple (AAPL), Microsoft (MSFT), Google (GOOG)(GOOGL), and even BlackBerry (BBRY) are duking it out to own your personal ecosystem.

We all recall when Google purchased Nest — the company that makes thermostats and fire alarms — earlier this year for $3.2 billion. Nest was a smaller company, founded by a former Apple engineer in 2010. The purchase price that Google put on Nest was a shocker, as it was "nearly 10 times more than Nest's annual revenue."

Here we are just months later, and Nest has just issued a massive safety warning that's suggesting to users that they should turn off the "Nest Wave" feature of the products, which the company states could inadvertently turn off the product.

Nest's CEO issued the following letter.

To the Nest community:

Since introducing the Nest Protect: Smoke + Carbon Monoxide alarm, we've heard touching stories from many of you about how we've helped keep you and your families safe. I consider your safety a huge part of my job and it's something I think about and take pride in every day.

At Nest, we conduct regular, rigorous tests to ensure that our products are the highest quality. During recent laboratory testing of the Nest Protect smoke alarm, we observed a unique combination of circumstances that caused us to question whether the Nest Wave (a feature that enables you to turn off your alarm with a wave of the hand) could be unintentionally activated. This could delay an alarm going off if there was a real fire. We identified this problem ourselves and are not aware of any customers who have experienced this, but the fact that it could even potentially happen is extremely important to me and I want to address it immediately.

We feel that the best and safest thing to do is to immediately disable the Nest Wave feature to resolve the issue and remove any safety concerns. While we fix Nest Wave, we have also halted sales of all new Nest Protect alarms to ensure no one buys an alarm that needs an immediate update.

Once we have a solution that ensures Nest Wave works as intended, we will update our software to turn this feature back on. This will only happen after extensive testing and once we have received approval from safety agencies in the US, Canada and UK. We expect this to take at least two or three months and we'll continue to update you as we have more information.

We're enormously sorry for the inconvenience caused by this issue. The team and I are dedicated to ensuring that we can stand behind each Nest product that comes into your home, and your 100% satisfaction and safety are what motivates us. Please know that the entire Nest team and I are focused on fixing this problem and continuing to improve our current products in every way possible. If you don't want to keep your Nest Protect smoke alarm, we will give you a complete refund.

Our customer support team is available to help answer any and all questions you have, and we've posted detailed answers to some of the questions we anticipate here.

Thank you for your continued loyalty and support."

Immediately, people are likely to already be thinking, "Another GM (GM)?" But no, this is not quite a GM. This is an important update, but is nowhere near the magnitude of the recall that GM is finding itself going through.

Nest is proactively addressing this issue, which is something that GM most certainly did not do. Further, Nest has claimed that this issue has yet to be a complaint from customers themselves; it was simply something they found internally while performing laboratory testing.

Additionally, the fix is going to be relatively simple and akin to the Tesla charger recall: Nest will stop selling current units and will blast those with Wi-Fi access with an update that will fix the issue. Like Tesla (TSLA)'s ridiculous headlines about the "Model S recall" that wasn't really a recall, this is likely to be filed under "non-events" over the next couple of days as well, I'm predicting.

This news comes on the heels of Google's "split" of its non-voting class of stock. Yesterday, Google's non-voting C shares were issued for each existing A share in a 2:1 split that the company says it will use for liquidity purposes. Both classes of shares got a bump in trading yesterday morning.

Long erm, with Eric, Sergey and Larry all still at the helm of the ship, Google is likely set to continue its exponential growth and aggressive competition in the ecosystem game. Google stock, I contend, remains a strong value for long-term growth.

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Model Portfolios	Tuesday, May 27, 2014 Pfizer Inc. Pulls Offer for AstraZeneca plc; AstraZeneca Shares Fall (PFE, AZN) AstraZeneca (AZN) shares were lower in pre-market trading on Tuesday morning, after Pfizer (PFE) announced on Monday that it is removing its offer to acquire the UK-based pharmaceutical company. After having its final proposal rejected by the AZN board last week, Pfizer released a statement on Monday morning stating that the company is no longer making an offer for AstraZeneca. Pfizer chairman and CEO Ian Read issued the following statement in the company’s press release: "We continue to believe that our final proposal was compelling and represented full value for AstraZeneca based on the information that was available to us. As we said from the start, the pursuit of this transaction was a potential enhancement to our existing strategy. We will continue our focus on the execution of our plans, bringing forth new treatments to meet patients' needs and remaining responsible stewards of our shareholders' capital.” AstraZeneca shares were down $1.21, or 1.67%, in pre-market trading. YTD, the company’s stock is up 23.4%. Pfizer shares were up 17 cents, or 0.58%, in pre-market trading. YTD, the company’s stock is down 3.18%. Philly Inquirer minority owners win control The ownership of Philadelphia's two largest newspapers changed hands again Tuesday after minority owners Lewis Katz and Gerry Lenfest emerged victorious in a bidding war against other owners. In an auction held at a local law firm, Katz and Lenfest grabbed control of Interstate General Media Holdings -- the parent company that operates The Philadelphia Inquirer, The Daily News and Philly.com -- by agreeing to pay $88 million, including about $15 million in debt. George E. Norcross, Joseph Buckelew and William Hankowsky – the other investors who joined to form a local investor group that bought the papers in 2012 for $55 million – initiated the bid with a $77 million offer but chose not to counter Katz and Lenfest's offer. "Although we declined to submit a higher bid and will not purchase the shares of Interstate General Media owned by Messers. Katz and Lenfest, we are happy for the company's employees, readers and advertisers that this issue is now resolved," said a statement from the Norcross' group. "It is time to return the company's focus to journalism, and away from conflict among its owners." The working relationship among the owners deteriorated quickly after the 2012 purchase as the two camps collided over their editorial philosophies and personnel issues. Katz, who emphasized investigative reporting over the hyper-local news approach favored by Norcross, filed a motion in January to dissolve the ownership structure and called for an auction to settle the matter. The owners' infighting reached a boiling point last October, when the Inquirer's editor Bill Marimow, was fired by Publisher Bob Hall. Katz went to court to reverse the move, and a local judge reinstated Marimow. While the fogginess surrounding ownership has cleared, the newspapers' financial challenges remain. Despite the owners' additional investments and several rounds of layoffs to cut cost, the newspapers, which hadn't been profitable for years, are still losing money. In the decade befo! re Katz, Norcross and others assumed control, the company's revenue had fallen from about $500 million to about $200 million. It went from generating $145 million in profit to losing as much as $50,000 a day, Norcross' group pointed out Tuesday. "We always understood that no matter who won the auction, there was a great deal of work to be done. Now, with this chapter ended, we hope the company can return its focus to accomplishing that needed work," it said. "We wish Messrs. Katz and Lenfest the best of luck moving forward." General Electric: Should Investors Get Excited By Consumer Lending Spinoff? Last week, the Wall Street Journal reported that General Electric’s (GE) was planning to spin off its unit which offers store-branded credit cards to consumers. JPMorgan’s C. Stephen Tusa and Drew Pierson explain why they remain unthrilled by GE’s prospects: Dhiraj Singh/Bloomberg News …press reports suggest that plans for a potential IPO of PLCC are moving forward but we still don't see portfolio actions as a "silver bullet" to the sum-of-the-parts, and the fact that smaller spins/sales are still being considered highlights the challenge of driving a clean exit of a business this large (though keep in mind that there remains a range of options outside an IPO). For the stock, shares have lagged since the 2Q earnings relief rally (-6% versus group -2%, S&P -3%), which increases the chances of another "not as bad as feared" rally later this year, but we don't see enough incremental good news on either Industrial fundamentals or GECS portfolio actions to change our relatively more cautious stance near term – we remain Neutral. Barclays’ Scott Davis and Michael Stein are far more optimistic. They write: We have long argued that GE Capital (and PLCC in particular) were under-valued assets in the GE portfolio and would be better served under different ownership. PLCC stand-alone could be an intriguing asset for the right set of investors and timing of exit appears to be a win/win. Additionally, as GECC earnings become a much smaller piece of the pie, GE stock can reasonably fall into the asset class bucket of late-cycle industrials still at market troughs in key businesses – in this scenario, we could see the market move away from a sum-of-the-parts view of GE and toward an all-in multiple, in line with multi-industry peers… GE has gained 9.5% this year after falling 0.7% to $22.98 today, well behind the SPDR S&P 500 ETF’s (SPY) 15% gain and the Industrial Select Sector SPDR’s (XLI) 17% rise. United Technologies (UTX) has risen 25% this year, while 3M (MMM) has advanced 22%. Monday, May 26, 2014 Buffalo Wild Wings: A Good Pick In The Restaurant Industry The restaurant industry in the U.S. was badly hit in 2013 with the bad weather in December and a shorter holiday season further declining the already bad condition. The consumers were very selective with respect to spending due to a cash crunch on account of the sluggish economy so all doesn't look rosy for the industry. The annual same-store traffic was a negative 2.1% in 2013 as compared to 1% growth reported in 2012 as per the expectations according to a Black Box International report. However, there are a few restaurants who have managed to brave the headwinds and have come out as winners. Some of these are Buffalo Wild Wings (BWLD), Sonic (SONC), and Domino's Pizza (DPZ) -- which have bucked the industry trend. Buffalo Wild Wings' solid growth The simple business model of Buffalo Wild Wings comprises of tasty food, wide selection of beers, and widely available TVs to watch sports that has worked well over the years. This company earned quite well and carried over the second-quarter momentum into the recent quarter. Buffalo Wild Wings augmented the number of company-owned restaurants by 21% compared to the quarter last year, and same-store sales increased 4.8% at company-owned restaurants and 3.9% at franchised locations. This resulted in 27.9% increase in revenue versus the same quarter a year ago. The strong top-line growth and earnings per share came in at $0.95 on account of a lower cost per pound for traditional chicken wings as compared to last year. This led to an awesome 66.9% growth versus the comparable quarter last year. The growth in comps was fueled by partnering with Yahoo! Sports and hosting Fantasy Football National Draft Day Parties. According to Buffalo, there's potential for about 1,700 restaurants in the U.S. and Canada. Going forward, this presents a good growth opportunity from its current count of less than 1,000 restaurants. Moreover, it is also diversifying by entering into partnership with PizzaRev for pizza, and plans to open the first company-owned PizzaRev in the Minneapolis area in early 2014. In addition, it also plans to open 45 company-owned and 40 franchised restaurants in the U.S. and Canada, and internationally, it expects 10 franchised locations in the entire year. Sonic and Domino's: Doing well For the past one year, Buffalo Wild Wings is clearly outperforming peers on the Street, but all three have had a good run, outperforming the S&P index by a good margin. Sonic reported system-wide comps gain of 2.2% in its first quarter. Healthy comps gain at both company-owned and franchised restaurants indicate that the company's strategies are working brilliantly. Looking ahead, around 15% growth in EPS is targeted by Sonic throughout fiscal 2014. The new stores and higher traffic are expected to be the main growth drivers for the company. The installation of new point-of-sale and point-of-purchase systems by Sonic is expected to drive sale upwards and also drive up margins . Sonic has a network of more than 3,500 stores around the country, and yet it has very low visibility in California. Sonic aims of signing a new franchise agreement with one of its existing partners that will bring 10 new stores to California over the next seven years, with the first two to open by August 2015. This is only as small part of an overall effort to hit 300 stores in the state by 2020, and going forward is a long-term growth driver. The domestic comps of Domino's Pizza gained 5.4%, with company-owned units and franchises rising 4.6% and 5.5%, respectively. This can be considered an achievement considering the fact that the industry as a whole witnessed a weak 2013. Domino's reported a 6.9% year-over-year increase in revenue to $404.1 million on the back of strong comps. Domino's has the robust international presence with a store count of 5,627 stores versus 4,939 stores domestically. This diversification strategy insulates it from the weaknesses arising out of regional economic headwinds. Further, Domino's has been a pioneer in the restaurant industry for online ordering, including mobile. About 35% of orders for Domino's come in over digital means and is very popular among consumers, allowing it to generate more revenue through online orders. Takeaway All three companies have performed decently in weak consumer spending scenario and are targeting further growth going forward. Buffalo Wild Wings is the most impressive of the three due to its robust growth, while Sonic and Domino's are more stable picks. Hence, investors planning to invest in this industry can bet upon any of these three stocks, and this is why they deserve a closer look. Currently 0.00/512345 Rating: 0.0/5 (0 votes) Subscribe via Email Subscribe RSS Comments Please leave your comment: More GuruFocus Links Latest Guru Picks Value Strategies Warren Buffett Portfolio Ben Graham Net-Net Real Time Picks Buffett-Munger Screener Aggregated Portfolio Undervalued Predictable ETFs, Options Low P/S Companies Insider Trends 10-Year Financials 52-Week Lows Interactive Charts Model Portfolios DCF Calculator RSS Feed Monthly Newsletters The All-In-One Screener Portfolio Tracking Tool MORE GURUFOCUS LINKS Latest Guru Picks Value Strategies Warren Buffett Portfolio Ben Graham Net-Net Real Time Picks Buffett-Munger Screener Aggregated Portfolio Undervalued Predictable ETFs, Options Low P/S Companies Insider Trends 10-Year Financials 52-Week Lows Interactive Charts Model Portfolios DCF Calculator RSS Feed Monthly Newsletters The All-In-One Screener Portfolio Tracking Tool BWLD STOCK PRICE CHART 144.09 (1y: +50%) $(function(){var seriesOptions=[],yAxisOptions=[],name='BWLD',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1369717200000,95.9],[1369803600000,95.19],[1369890000000,95.74],[1369976400000,95.96],[1370235600000,96.04],[1370322000000,95.85],[1370408400000,93.67],[1370494800000,95.36],[1370581200000,97.06],[1370840400000,98.01],[1370926800000,98.2],[1371013200000,97.02],[1371099600000,98.15],[1371186000000,97.35],[1371445200000,97.17],[1371531600000,99.3],[1371618000000,99.17],[1371704400000,97.46],[1371790800000,95.35],[1372050000000,94.44],[1372136400000,96.97],[1372222800000,99.37],[1372309200000,98.31],[1372395600000,98.24],[1372654800000,99.47],[1372741200000,99.58],[1372827600000,99.39],[1373000400000,101.24],[1373259600000,102.77],[1373346000000,103.65],[1373432400000,103.61],[1373518800000,104.34],[1373605200000,104.96],[1373864400000,105.05],[1373950800000,100.5],[1374037200000,100.26],[1374123600000,99.83],[1374210000000,100.06],[1374469200000,99.84],[1374555600000,98.12],[1374642000000,95.44],[1374728400000,95.92],[1374814800000,97.93],[1375074000000,98.39],[1375160400000,97.69],[1375246800000,103.58],[1375333200000,106.84],[1375419600000,107.14],[1375678800000,108.25],[1375765200000,106.9],[1375851600000,106.48],[1375938000000,106.92],[1376024400000,106.74],[1376283600000,106.25],[1376370000000,105.18],[1376456400000,105.08],[1376542800000,105.07],[1376629200000,104.92],[1376888400000,105.11],[1376974800000,107.19],[1377061200000,106.62],[1377147600000,109.55],[1377234000000,108.41],[1377493200000,107.98],[1377579600000,105.03],[1377666000000,105.12],[1377752400000,105.61],[1377838800000,103.91],[1378184400000,104.9],[1378270800000,105.76],[1378357200000,105.6],[1378443600000,104.68],[1378702800000,105.57],[1378789200000,107.27],[1378875600000,107.25],[1378962000000,107.4],[1379048400000,109.82],[1379307600000,110.62],[1379394000000,111.34],[1379480400000,110.87],[1379566800000,109.88],[1379653200000,109.55],[1379912400000,108.65],[1379998800000,108.35],[1380085200000,108.3! 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.04],[139! 1493600000,140.75],[1391580000000,127.12],[1391666400000,131.88],[1391752800000,134.43],[1392012000000,132.55],[1392098400000,133.44],[1392184800000,131.96],[1392271200000,133.17],[1392357600000,132.4],[1392703200000,133.87],[1392789600000,132.31],[1392876000000,133.05],[1392962400000,132.27],[1393221600000,136.92],[1393308000000,136.85],[1393394400000,138.27],[1393480800000,139.72],[1393567200000,145],[1393826400000,144.97],[1393912800000 Sunday, May 25, 2014 The best and worst excuses for calling in sick Summer is almost here and summer Fridays are the best days at work. They usually mean casual dress, less work and shorter hours. However, the best are half-day Fridays — or not showing up at all! That allows you to enjoy the beach, golf course or your bed because of the eighteen tequila shots you had with the interns from Florida State the night before. Here are some do's and dont's on how to get out of work on that summer Friday but still get that bonus you so rightfully deserve. DO lay the groundwork. If you know you are going to be "sick" the next day, make sure everyone knows the day before that you aren't feeling well. After you cough up a lung, when they ask if you are OK, say, "I would go home but I love this job and I hate missing work." Show real dedication to this illness and you will be rewarded with a day at the beach. MILLION-DOLLAR JOB: Public college president CAREERS: Things I wish I knew when I graduated MILLENNIALS: Jobs outlook brings rude awakening Also — and this part is important — make sure you follow through with the lie. When you go back to work, don't come back looking all refreshed. If you fell down the stairs and had a slight concussion, wear a bandage and accidentally call your boss the name of an actor he or she looks most like. If you say you eloped, buy a fake wedding ring. And then take the next Friday off to get an annulment. If you say you were sprayed by a skunk, make you sure the only shower you take that weekend is with cheap perfume. A guy I worked with once claimed to be sick all weekend but when he came to work on Monday, his face was the color of a character from "Jersey Shore." I said, "I didn't know that lying out in the sun all weekend was the best way to treat a staph infection!" He knew he was caught and his face would have turned even more red but that was impossible, given his sunburn. DO NOT go on social media if you are out "sick." Ever. You would think you don't have to tell people this — ! but YOU DO. Do not go on Facebook, Twitter or Foursquare and update your status. Don't tweet, "My first hole in one — drinks on me!!" Or "The view at East Hampton beach is amazing. And I don't mean the water — if you know what I mean." If you are feeling well enough to tweet, you are able to go to work. More likely, you will get drunk and do something stupid. Once, I had a friend call out of work because he was visiting his grandmother who was on her death bed. However, at 3am the night before he checked in on Foursquare at Marquee. His status was, "Bottles and Models!!! Marquee! BOOM!!" I texted him and asked if his grandmother requested that he go to Marquee to celebrate her life. He deleted his status before anyone else noticed. DO call or e-mail at the correct time—and keep it vague. If you are going to call your boss and leave a voicemail, call an hour before he gets in. Don't call too close to the time because if he is the drill sergeant type or the overly caring type, he may call you back. If you are e-mailing your boss or texting him, also do it an hour before. Don't do it at 2am when you are in the back of an Uber leaving the Meatpacking district with a bunch of Hungarian girls going to your penthouse for the after-party. Stay up until 6am and then send the email. Also, keep it vague. If you get overly specific it can backfire on you. For example, my friend was on a date. It got later and later and turned into a sleepover. His date suggested that he text his boss and tell him he had eaten some bad fish and he wasn't going to make it to work the next day. The next morning he heard a buzz buzz at 5:30am. He looked at his phone and the text from his boss said, "You have worked with me for ten years. We have been on 100 client dinners. You have never once ordered fish. Get your drunk a-- to work." My friend was the first one on the desk. DO use a great excuse. Sometimes you are blessed to work with very cool and understanding people like I was. ! If you ar! e and have an excuse that only you can get away with — use it. It was August 15th, 2007. I saw that the next day was the 30th anniversary of Elvis Presley's death. I am huge Elvis fan. I had no plans to be out but I couldn't let this go to waste. I told my boss, "Tomorrow is the 30th anniversary of Elvis's death. I am going to be out tomorrow in mourning. Just think of it as my version of Yom Kippur. I won't be in synagogue or fasting but I will be watching Viva Las Vegas, listening to Suspicious Minds and eating peanut butter and banana sandwiches while wearing a white sequined suit." One time I got a voicemail from a guy who worked for me. "Raj. I did something pretty stupid last night. After we went out to dinner, this girl came over. She gave me something. I smelled it. I ate it. I don't what it is. But I feel funny." I called him back and said, "No problem as long as you promise me two things: First, that you aren't dying because I don't feel like interviewing people. And second, promise to tell me the whole story in detail tomorrow." This winter has been brutal and summer is almost here! If you have worked hard all year, you deserve a Friday or two off to play hooky and enjoy the weather. Just follow this advice so the Friday you take off isn't your last! Raj Malhotra (Raj Mahal is his stage name) is a former Wall Street trader-turned-stand-up-comedian. © CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY. Saturday, May 24, 2014 Avago Technologies: This Chipmaker Can Add Value to Your Portfolio Avago Technologies (AVGO) has made a good comeback. The company, despite seeing weakness all through the year, posted fantastic results. The company's good results make it a promising investment. The operational efficiencies led Avago to see a good 20% growth in its top line. But looking at the ratios, the company is still expensive with a trailing P/E of 29. Also, the decline in the dividend yield to 1.70% might scare a few investors away. Moreover, the stock is trading close to its 52-week high. Avago, being associated with some of the top companies such as Apple and Samsung, is confident about a solid performance in the future. With the growing mobile segment and Avago being a solid player in it, it has bright opportunities to hit gold in the future. Avago's wireless communication business should prove to be a primary growth driver for the company. So, with the growing traction of Apple's iPhone, Avago is expecting to benefit. Also, in the past, despite weakness in Apple's iPhone production, Avago has managed to increase its wireless revenue. Avago sees bright opportunities in association with Apple and Samsung. The Road Forward With increasing demand for Samsung's Galaxy 5, Avago is confident going forward. Moreover, Apple is in the course of introducing bigger iPhones later this year, which will benefit Avago in the long run. The company is expecting great traction from the iPhone as it has gained content in the device. Moving on, with the booming market and increasing traction, Avago is expected to see tailwinds in the future as Apple launches its bigger iPhone. Rumors going around on the web suggest that the next iPhone's screen will be 4.7 inches or larger as the company tries to woo Android users into its ecosystem. In addition, since Avago also supplies content for the iPad, it could see more Apple goodness later this year with the new iPad cycle. LTE to Drive Growth In addition to this, Avago is focusing on various aspects to improve its profitability. To fetch more profit and to diversify the risk, Avago has come up with a strong diversification strategy. Under this, it is focusing on landing few design wins in China. With the introduction of the LTE platform, China is seeing a growing demand for LTE-enabled smartphones. On the other hand, management of Avago is pleased with such a scene and is confident of winning meaningful content in smartphones in China. With the growing demand for LTE smartphones, Avago has significant opportunity since 4G Smartphone shipments in China are expected to rise to 72.6 million this year from 4.6 million units last year. It is expected that by 2017, there will be 300 million 4G handsets in the Middle Kingdom. So, Avago has made a smart move by targeting this market. A Look at Wired Infrastructure Moving on to Avago's wired infrastructure business, the company is expecting a lot from it as in the past, it grew by an impressive 60%. Avago is also counting on Cisco, which is one of its 10%-plus customers. The proliferation of connectivity around the globe with different applications in the Internet of Things and the Industrial Internet will lead to demand for data center equipment and faster connectivity equipment going forward. Product Moves and Conclusion Avago is also working on bringing in new products out of its pipeline. Its two new launches namely MicroPOD and MiniPOD in association with Corning are expected to take it to new highs with exciting features. It allows datacenters and enterprise networks to switch from 10G to 100G Ethernet. This new suite of products also increases the link distance to 550 meters, thereby increasing the efficiency of data centers. Avago has appreciated strongly this year and the stock isn't as cheap as it was in December last year. The company has many catalysts which make it a solid performer and chances for a better performance are concrete. Avago seems a good pick as of now. Currently 0.00/512345 Rating: 0.0/5 (0 votes) Subscribe via Email Subscribe RSS Comments Please leave your comment: More GuruFocus Links Latest Guru Picks Value Strategies Warren Buffett Portfolio Ben Graham Net-Net Real Time Picks Buffett-Munger Screener Aggregated Portfolio Undervalued Predictable ETFs, Options Low P/S Companies Insider Trends 10-Year Financials 52-Week Lows Interactive Charts Model Portfolios DCF Calculator RSS Feed Monthly Newsletters The All-In-One Screener Portfolio Tracking Tool MORE GURUFOCUS LINKS Latest Guru Picks Value Strategies Warren Buffett Portfolio Ben Graham Net-Net Real Time Picks Buffett-Munger Screener Aggregated Portfolio Undervalued Predictable ETFs, Options Low P/S Companies Insider Trends 10-Year Financials 52-Week Lows Interactive Charts Model Portfolios DCF Calculator RSS Feed Monthly Newsletters The All-In-One Screener Portfolio Tracking Tool AVGO STOCK PRICE CHART 70.55 (1y: +107%) $(function(){var seriesOptions=[],yAxisOptions=[],name='AVGO',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1369371600000,34.1],[1369717200000,34.44],[1369803600000,34.43],[1369890000000,37.82],[1369976400000,37.73],[1370235600000,37.3],[1370322000000,37.8],[1370408400000,37],[1370494800000,36.75],[1370581200000,37.29],[1370840400000,36.83],[1370926800000,36.29],[1371013200000,35.98],[1371099600000,37.11],[1371186000000,37.59],[1371445200000,38.09],[1371531600000,38.75],[1371618000000,38.07],[1371704400000,37.06],[1371790800000,37.38],[1372050000000,36.69],[1372136400000,37.1],[1372222800000,37.25],[1372309200000,37.32],[1372395600000,37.38],[1372654800000,37.61],[1372741200000,38.48],[1372827600000,38.59],[1373000400000,38.81],[1373259600000,37.27],[1373346000000,37.58],[1373432400000,38.33],[1373518800000,38.59],[1373605200000,38.95],[1373864400000,38.01],[1373950800000,38.87],[1374037200000,38.92],[1374123600000,37.6],[1374210000000,37.85],[1374469200000,37.79],[1374555600000,37.61],[1374642000000,36.89],[1374728400000,36.9],[1374814800000,36.78],[1375074000000,36.59],[1375160400000,36.85],[1375246800000,36.68],[1375333200000,37.4],[1375419600000,37.49],[1375678800000,37.02],[1375765200000,36.86],[1375851600000,37.29],[1375938000000,37.32],[1376024400000,36.83],[1376283600000,37.7],[1376370000000,38.02],[1376456400000,37.22],[1376542800000,36.02],[1376629200000,36.25],[1376888400000,36.25],[1376974800000,36.79],[1377061200000,36.59],[1377147600000,36.61],[1377234000000,36.74],[1377493200000,37.48],[1377579600000,36.555],[1377666000000,38.28],[1377752400000,38.95],[1377838800000,38.51],[1378184400000,38.35],[1378270800000,38.98],[1378357200000,38.79],[1378443600000,38.56],[1378702800000,38.77],[1378789200000,39.66],[1378875600000,39.25],[1378962000000,39.03],[1379048400000,38.99],[1379307600000,39.28],[1379394000000,40.12],[1379480400000,40.67],[1379566800000,40.75],[1379653200000,41.62],[1379912400000,41.87],[1379998800000,42.41],[1380085200000,42.21],[1380171600000,42.27],[1380! 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8.07],[13! 92184800000,58.94],[1392271200000,59.08],[1392357600000,58.08],[1392703200000,58.37],[1392789600000,57.7],[1392876000000,59],[1392962400000,58.55],[1393221600000,59.57],[1393308000000,59],[1393394400000,61.9],[1393480800000,61.38],[1393567200000,61.7],[1393826400000,61.74],[1393912800000,63.35],[1393999200000,63.08],[1394085600000,63.64],[1394172000000,62.75],[1394427600000,62.8],[1394514000000,62.02],[1394600400000,63.18],[1394686800000,62.68],[139477 Friday, May 23, 2014 3 Road and Rail Stocks to Sell Now Popular Posts: 10 Best “Strong Buy” Stocks — EQM DAL ILMN and more13 “Triple A” Stocks to Buy7 Biotechnology Stocks to Buy Now Recent Posts: Biggest Movers in Healthcare Stocks Now – PDLI SIRO THC RDY Biggest Movers in Financial Stocks Now – PVTB BOFI KYE TFSL Biggest Movers in Technology Stocks Now – MENT AUO ULTI CSOD View All Posts The ratings of three road and rail stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”). Kansas City Southern () earns an F (“strong sell”) this week, moving down from last week’s grade of D (“sell”). Kansas City Southern operates a railroad system that provides shippers with rail freight services in commercial and industrial markets of the United States and Mexico. Shares of the stock have been changing hands at an unusually rapid pace, three times the rate of the week prior. The stock’s trailing PE Ratio is 33.90. . This week, Roadrunner Transportation Systems, Inc.’s () rating worsens to an F from the company’s D rating a week ago. Roadrunner Transportation Systems offers truck freight transportation services. The stock gets F’s in Earnings Revisions and Earnings Surprise. Shares of the stock have been trading at an exceptionally rapid pace, up threefold from the week prior. . This week, Guangshen Railway Co. Ltd. Sponsored ADR Class H () falls to a D (“sell”), worse than last week’s grade of C (“hold”). Guangshen Railway is a provider of railroad passenger and freight transportation, as well as railway network usage and services. . Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here. Thursday, May 22, 2014 Best Buy posts profit but revenue drops NEW YORK (AP) — Cost cuts helped consumer electronics retailer Best Buy record a stronger-than-expected profit in the first quarter, but sales continued to be weak as shoppers hold off for new product launches of smartphones and tablets expected in the fall. Adjusted earnings beat expectations and shares were up more than 2% at midday. But sales fell short of Wall Street estimates. And Best Buy said it expects revenue in stores open at least 14 months, a key retail metric known as same-store sales, will fall in both the second and third quarters. Best Buy is grappling with a weak consumer electronics industry and increased competition from online stores, notably Amazon.com, and discounters like Wal-Mart. Under CEO Hubert Joly, the company has been trying to turn around results, revamping merchandise, training employees and cutting costs. SEARS: Retailer reports wider loss, may close more stores ASK MATT: Is it time to bail on retail stocks? ISI analyst Greg Melich said Best Buy's cost cutting efforts are helping offset weaker sales and costs related to price matching with competitors. "Progress continues on the cost reduction front, but gross margin dollar declines continue as secular industry pressures persist," he wrote in a note to investors. Revenue at stores open at least 14 months fell 1.9% during the three months ended May 4. That is not expected to improve in the next two quarters, said CFO Sharon McCollam in a call with analysts. "As we look forward to the second and third quarters we are expecting to see ongoing industrywide sales decline in many of the consumer electronics categories in which we compete," she said. "We are also expecting ongoing softness in the mobile phone category as consumers eagerly await highly anticipated new product launches." The electronics seller said its net income was $461 million, or $1.31 per share. That's a turnaround from a loss of $81 million, or 24 cents per share, a year earlier. That inclu! des a one-time tax structure change that helped earnings by $1.01 per share. Adjusted earnings were 33 cents per share. That beat analysts' average estimate of 19 cents per share, according to FactSet. Total revenue fell 3% to $9.04 billion from $9.35 billion. Analysts polled by FactSet expected $9.23 billion. Shares rose $1.29, or 5.1 percent, to $26.64 morning trading Thursday. The stock had been down about 36% since the beginning of the year. Wednesday, May 21, 2014 How Fed Chair Janet Yellen's Plans Will Affect Your Bonds Charles Dharapak/AP Federal Reserve chair Janet Yellen said in earlly May that she expects to keep short-term borrowing rates low for a "considerable time." She's continuing to set a target of seeing healthy employment numbers and inflation around 2 percent before raising short-term rates above their nearly 0 percent levels. While short-term rates will remain low, long-term rates are another story. The Fed is continuing to taper -- to reduce its purchases of U.S. government bonds. The Fed is expected to hold its existing bond portfolio for quite some time. Still, as it stops purchasing new bonds, it takes a very deep-pocketed buyer out of that market. That creates conditions wherein long-term rates will be much more likely to rise. And with the Fed expected to complete its taper this year, long-term rates may rise soon. What This Means for You The chart below shows the history of 30-year Treasury bond interest rates for the past few decades. While nobody is expecting rates to skyrocket to their 15 percent peak, note that before the recent recession and the Fed's long-term bond-buying spree, rates were around 5 percent or so. It's reasonable to anticipate that absent the Fed's incremental buying pressure holding down long-term rates, those rates may revisit that 5 percent level once the Fed stops buying. stlouisfed.orgChart from the Federal Reserve Bank of St. Louis, as of May 17. With 30-year interest rates currently around 3.4 percent, that suggests long-term rates may rise as much as 1.5 percentage points or so over the next few months. In the grand scheme of things, that may not sound like much, but if you own long-term bonds, that kind of rise may be quite painful indeed. The Rate and Price Seesaw Tuesday, May 20, 2014 You Can Make Money in Stocks (Especially These Three) No Matter What Rates Do It's commonly held wisdom that stock markets go to heck in a hand basket when interest rates rise. So, the thinking goes, you'd be better off selling ahead of time before that happens. No doubt it's tempting to head for the hills with rates at historical lows, but it pays to do your research before you hit the "sell" button. The three companies I'm going to show you today, for example, can actually benefit from rising rates. First, let's take an "Econ 101" look at the impact interest rates can have on stocks, especially when rates start rising... How This Urban Legend Got Started Like most urban legends, there's a grain of truth when it comes to interest rates and your money. That's because interest rates are quite literally a reflection of the time value of money. When rates are rising, the cost of borrowing goes up. When rates are falling, money gets cheaper. Economic theory tells us that more expensive money decreases the amount of money in circulation because customers tighten up while cheaper money increases the amount of money at work. That's why the Fed, which subscribes to this theory, has kept rates so low for so long. Team Bernanke and now Team Yellen want to ensure there's money available and, by implication, that people borrow enough to keep it moving and the economy in recovery mode. Practically speaking, you see this in everything from credit card statements to home mortgages. As rates rise, the propensity to borrow declines and there's less discretionary money spent. But as they fall, consumers head out to spend based in good part on borrowing that has "stimulated" the system. Personally, I think it's a sad state of affairs that debt has become so critical to our way of life, but that's really a story for another time. What you need to know today is how the relationship I've just described impacts stock prices. Companies are valued based on earnings. And earnings, in turn, are a function of the time value of money associated with all future cash flows. Loosely speaking, therefore, the more a company earns, the higher the expected stock price is ahead. Theoretically, if rates rise that means money is getting more expensive so the cost of debt rises and revenue from customers drops. Earnings then take a nose dive and, not surprisingly, so do stock prices which, in turn, makes stock ownership less desirable. Here's where it gets sticky. By stimulating the economy and keeping rates so low for so long at the same time, the Fed is clearly fanning inflationary embers while seemingly acting to keep rates low. Every dollar the Fed kicks into the system diminishes the value of every other dollar already out there. Ultimately rates will have to rise to compensate for the lost value, goes the argument for millions of investors. Take Winners on the Overlooked Rising Rate Bounce But here's the thing. You don't just immediately jump from a slight increase in "Treasury yields that's barely noticeable on a ten-year chart to hyperinflation even when it's the worry du jour," according to Jim Cramer in his book Getting Back To Even. As we talk about so frequently, there has to be growth first. More to the point, there's also got to be a real, meaningful rise in interest rates to affect the markets on anything more than a short- term basis. Look, you and I both know that rates will eventually rise. That's a harsh reality that our political leaders don't understand, which is why they're constantly kicking the can down the road and spending our country into oblivion. But pulling your money out of the markets preemptively when we haven't had real interest rate hikes based on growth yet is a mistake. It's one thing to take heed of the lessons that led up to the Financial Crisis and entirely another to fall prey to erroneous conclusions by keeping your finger on the sell button or hitting it too early. That's not to say the thinking isn't compelling - it is, especially since it's based on the intense emotional distress of the Financial Crisis. It's just not in your best interest. Ask anybody who sat out the rally off March 2009 lows. They've missed an amazing 273% S&P 500 run to new all-time record highs. And that brings me to what happens when rates actually do rise. Believe it or not, stocks have rallied for nearly two full years following the first interest rate hike according to Sadoff Investment Management and Fed data. Here's something else. Since 1929, the average increase in short-term rates is 107% before the markets falter. Practically speaking, this means the 10-year Treasury yield would have to rise from a July 2012 of 1.53% to 3.16% before we hit the threshold. That's another 61 basis points or 23.9% above where the yield is today, according to Bloomberg. So how do you invest until then? Plenty of Great Investment Runway Ahead First, you miss 100% of the shots you never take, and what I mean by that is that you stand to gain nothing if you aren't in the markets. DALBAR data shows that the average investor may be 200% to 300% behind the markets because they are prematurely trying to time the markets. Ouch! The Fed has made it very clear that it won't be raising rates until mid-next year at the earliest and only if Yellen gets comfortable with progress in the meantime. So, barring an economic meltdown or global market reset, we've got some runway in front of us. My preference is definitely for "global challengers" with strong cash flow, experienced management, and powerful brands in the meantime. Examples include ABB Ltd (ADR) (NYSE: ABB), Becton Dickinson and Co. (NYSE: BDX), and American Water Works Company Inc. (NYSE: AWK) that are drawn from our Money Map Report recommendations. Not only are these companies and others like them tapped into global money flows that continue unabated, but these types of companies can actually benefit from rising rates rather than get crushed by them. Remember, earnings... earnings... earnings! Second, new highs are inevitably accompanied by short-term market noise, so it's not uncommon to get some give and take as the markets digest the implications of record price levels. In fact, I'd bet on it. Make sure you have trailing stops in place ahead of time to protect profits and your capital in the event there is a hiccup. My suggestion is that 25% below your entry price is a pretty good place to start. You can always tighten that up if you like, but that's really splitting hairs. Protection against the unexpected at all times is the issue. [Editor's Note: You can track your trailing stops much more easily now. Money Morning Members have access to the best deal (in the world) on TradeStops. Learn more.] If you don't like trailing stops, consider using options or a specialized inverse fund to protect your money and take the sting out of any short-term market movements that catch others by surprise. Third, you want to be constantly hunting for new opportunities. I am sure your parents instructed you on the importance of "buy low and sell high." So wading in on pullbacks when everybody else is heading for the exits makes sense as a path to bigger profits... ...especially when the markets could run for a lot longer than interest rate doomsters think. Monday, May 19, 2014 AstraZeneca: Time to Buy? The market appears to like the fact that Pfizer (PFE) won’t be able to buy AstraZeneca (AZN) at what could be an elevated price. AstraZeneca, not so much. Reuters Shares of AstraZeneca have dropped 11% to $71.19 at 2:28 p.m. today, while Pfizer has risen 1.1% to $29.43. Citigroup’s Andrew Baum and team say the selloff in AstraZeneca has created a buying opportunity: Our in-depth November 2013 report laid out what we saw as the extreme undervaluation of AstraZeneca’s early/mid-stage oncology pipeline, >26% upside to consensus EPS post-2017 and the greatest valuation delta (>45% at that time) to our £49/share NPV estimate compared with its global peers. We updated our analysis…shortly ahead of PFE's announced AZN bid. Following the -13% sell-off after today's rejection by the AZN board of PFE's £55/share offer, we add Buy-rated AstraZeneca to the Citi Focus List Europe based on our extensive previous analysis of its fundamental value drivers. In this weekend’s Barron’s, Andrew Bary said Pfizer should walk away from AstraZeneca. Same difference. Sunday, May 18, 2014 Rieder: Challenges face Baquet at 'NYTimes' Now comes the hard part. Overshadowed by the furor over the surprising and brutal sacking of The New York Times executive editor Jill Abramson Wednesday was the fact that, for the first time, the nation's premier news outlet has an African American at the helm of its newsroom. Dean Baquet, who had been the paper's managing editor, has two major challenges ahead of him. One is to calm the newsroom by providing positive, engaged leadership. The other and far more daunting one is to help shape the paper's future in the digital age. Jill Abramson(Photo: Evan Agostini, AP) Baquet seems ideally suited for the first task. In addition to his sterling journalism credentials, Baquet has a reputation as a leader who is good with people. That will be critical in a newsroom bruised by Abramson's style, which has been described as both aloof and harsh. But Abramson had her supporters, and no doubt some of them are upset by the callous way in which she was shown the door. In a Times story on the upheaval at the paper, Baquet is quoted as saying that he learned from his onetime boss, former Los Angeles Times editor John Carroll, "that great editors can also be humane editors." The new editor also said he would "walk the room." That's a management technique that can pay huge newsroom dividends. I remember vividly the galvanizing effect the great Washington Post executive editor Ben Bradlee had as he moved among his minions, kibitzing, looking at stories, slapping backs, even comparing tattoos with a news assistant. Baquet has a history as a champion of the newsroom. Back in 2006, after he had succeeded Carroll as editor of the L.A. Times, he refused management demandsto make more staff cuts, and went public with it. Shortly! thereafter, the New Orleans native left the paper, landing as Washington bureau chief of the Times, where he had worked before. Dean Baquet(Photo: New York Times via EPA) But the truly formidable task for Baquet and the Times is one facing all legacy news outlets: securing a future in the digital world. The Times has done better than many others. It deserves great credit for its trendsetting decision to charge for digital content, and for doing it in a smart, sophisticated way. The paper now has 799,000 digital-only customers. And it showed that a traditional news operation could set the standard for digital display with its impressive treatment of its Snow Fall story, its takeout on a deadly avalanche. But the paper, like so many others, has a long way to go. An innovation report put together under the leadership of A.G. Sulzberger, son of Times publisher and New York Times Co. Chairman Arthur Sulzberger Jr., had grim conclusions about the state of the Times. It found that the paper was falling behind competitors when it comes to reshaping itself for a digital future. The report says the Times has a long way to go to become a truly digital-first operation. It is still too much in thrall to the customs and the demands of print. "The habits and traditions built over a century and a half of putting out the paper are a powerful, conservative force as we transition to digital — none more so than the gravitational pull of Page One," the report said. In announcing Baquet's promotion Wednesday, publisher Sulzberger noted pointedly that the new executive editor had been "closely involved" with those who prepared the document. Baquet's major mission will be to continue to foster the first-class journalism the Times p! roduces d! ay after day — the paper was very good during Abramson's tenure — while sharply accelerating the digital transformation. No easy task. As the report makes clear, old habits die hard. It's a lot easier to talk about digital-first than it is to make it happen. One more point: The Abramson implosion reminds us that Sulzberger has had his problems when it comes to assessing leadership talent. One of Abramson's predecessors, Howell Raines, had a toxic tenure in the newsroom. So that's two out of three top editors who haven't worked out. Here's hoping Baquet improves his boss's batting average. And one lingering question: Why did Abramson's departure have to be so bloody?Generally, when a top executive is dismissed, they get to hang around for a little while. But Abramson was kicked to the curb instantly. She wasn't at the changing of the guard ceremony. Her name was instantly removed from the masthead. She was gone. It's still not precisely clear why Abramson was dismissed. Sulzberger said vaguely that new blood could better manage the newsroom. It's still not known if one action, one dispute, triggered the decision. But unless there was something truly atrocious — and there's no hint of that — Abramson, a top-flight journalist but flawed leader, deserved better. Friday, May 16, 2014 3 Stocks Paying Out Steady Dividends Popular Posts: 2 Slow, Steady Stocks to Buy for Long-Term ProfitsBuy This Semiconductor Stock to Power Your Portfolio2 Safe, Cheap Stocks You Need to Buy Now Recent Posts: 3 Stocks Paying Out Steady Dividends Brokerage Stocks Are Too Rich to Buy Buy This Semiconductor Stock to Power Your Portfolio View All Posts The search for income is getting more difficult by the day. We have a fair amount of retirees in my neighborhood, and just about every gathering or party around here has people talking about the difficulty of finding income investments to fund day-to-day expenses. Source: Flickr Many of the traditional alternatives such as blue-chip stocks and REITs have seen their prices pushed up to very high levels as a result of yield chasing the past few years. Income investors are going to need to be more involved in the management of their portfolios to reach their goals. One approach to income investing is to find stocks with high yields that also have Piotroski F-scores that are in the top third of the 9-point scale. Companies with above-average F-scores are seeing improvements in their fundamental business conditions and their financial strength is improving. This should give us a portfolio of stocks that can outperform the market as well as provide high levels of dividend income. I would suggest buying stocks that qualify and holding the shares as long as the F-score stays the same or improves, and selling if the score declines below 6. It is more of an active strategy, but it should provide cash flow and keep your capital invested in stocks with solid fundamentals. Although our major concern is income, I don't want to overpay for shares so I would limit my purchases to those that traded for less than their Graham number valuation. Oaktree Capital (OAK) Oaktree Capital (OAK) is one of the best investment management firms in the world today. CEO Howard Marks has proven himself to be a brilliant investment manager, WHICH has helped the firm grow to more than $74 billion in assets under management. Oaktree specializes in distressed assets, high-yield bonds, real estate and equities. The company currently earns an F-score of 6 and yields 7.7%, so the stock is an excellent fit for our active income portfolio. The stock trades at a slight discount to its Graham number valuation of $54. Oaktree is a best-in-class investment manager and has the potential for solid appreciation in addition to the high yield. Capital Products Partners (CPLP) Capital Products Partners (CPLP) is a Greece-based shipping company that is involved in both petroleum products and the dry goods business. It currently has a fleet of 30 vessels comprised of 22 tankers and 8 dry bulk and container vessels. CPLP reaffirmed its commitment to paying the dividend of 93 cents per share going forward, and at that level the shares yield 8.65%. The F score is 7, so conditions are improving for the company and the stock is actually trading at a more than a 35% discount to its Graham number valuation of $16. Courier Corporation (CRRC) Courier Corporation (CRRC) publishes and prints books that are distributed through a variety of retail outlets. It publishes books on things like landscaping, gardening and home improvement that are found in many of the leading home and garden stores. Courier also publishes more than 700 test preparation and study guides for teachers and students as well books for religious institutions. Courier isn’t the world's most exciting company, but we’re looking for dividends, not excitement. The stock yields 6.2% and has an F-score of 7 right now. The stock trades at a discount of about 15% to its Graham Number valuation of $15.25. Income is getting harder to find. Using F-scores and the Graham number should help investors find cash flow producing stocks that are reasonably valued and can meet their income needs. Like what you see? Sign up for our Dividend Insights e-letter and get income investment advice delivered to your inbox every Friday! As of this writing, Tim Melvin was long CPLP and CRRC. Tuesday, May 13, 2014 Monday’s Analyst Moves: JPMorgan Chase & Co., Ralph Lauren Corp, M&T Bank Corporation, More (JPM, RL, MTB, More) Before Monday’s opening bell, a number of big name dividend stocks were the subject of analyst moves. Below, we highlight the important analyst commentary for investors. Goldman Boosts Rating on M&T Bank M&T Bank Corporation (MTB) was upgraded at Goldman Sachs from “Neutral” to “Buy” as its merger with HCBK is expected to help earnings. The firm has a $145 price target on MTB, suggesting a 20% upside from the stock’s current price of $121.37. MTB has a dividend yield of 2.31%. Goldman Sachs Downgrades Omnicom Group Goldman Sachs has downgraded Omnicom Group Inc. (OMC) from “Buy” to “Neutral” on a valuation call. The firm has a $75 price target on OMC, suggesting a 10% increase from the stock’s current price of $67.66. OMC has a dividend yield of 2.36%. FBR Capital Raises Rating on PacWest Bancorp PacWest Bancorp (PACW) has been upgraded at FBR Capital to “Outperform” due to its acquisition of CapitalSource. The firm has a $47 price target on PACW, suggesting a 20% upside from the stock’s current price of $39.41. PACW has Subscribe to: Posts (Atom) Blog Archive ►  2019 (38) ►  March (19) ►  February (19) ►  2018 (19) ►  August (3) ►  July (7) ►  June (3) ►  May (6) ►  2016 (1) ►  November (1) ►  2015 (84) ►  July (2) ►  June (9) ►  May (11) ►  April (4) ►  March (13) ►  February (15) ►  January (30) ▼  2014 (209) ►  December (19) ►  November (4) ►  October (9) ►  September (10) ►  August (10) ►  July (12) ►  June (39) ▼  May (27) Next Round: Catching up with rye beers What Will Put the Brakes on Housing At Work: Skip the musings in cover letter Toll Brothers Posts Blowout Profits, But Don’t Sou... This Acquisition Will Add to Google's Long-Term Gr... Pfizer Inc. Pulls Offer for AstraZeneca plc; Astra... Philly Inquirer minority owners win control General Electric: Should Investors Get Excited By ... Buffalo Wild Wings: A Good Pick In The Restaurant ... 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