Thursday, July 9, 2015

5 Ways You Can Lock In a Job on LinkedIn

NEW YORK (TheStreet) -- Although nothing beats a solid resume and a well-worded cover letter, job-seekers should think seriously about polishing and promoting their LinkedIn (LNKD) profiles, according to a survey by social recruiting site Jobvite. The survey has a representative 94% of recruiters saying LinkedIn was their top online platform for vetting candidates, compared with 65% who use Facebook (FB) and 55% who turn to Twitter. Even applicants who don't have much experience with recruiters should take note: The survey projects a 73% increase in social recruiting investment this year. [Read: Employers Catch Up With the Rest of Us on Loving Social Media ]

Experts say smart job hunters should look at their LinkedIn profiles with a critical eye and start digging deep for connections, conversation and critique. We've got the rundown on the top 5 ways to make LinkedIn an asset in your job search.

1. Show some personality -- just not too much

"LinkedIn is different," says Ian Ide, president of the search divisions at WinterWyman. "It's somewhere between social media and a resume, and that's what trips a lot of people up. It's not so personal that you're offering up casual status updates, but it's not so professional that you can't show a little personality." That personality should be shown in a professional way, Ide cautions. What you're trying to avoid is looking too detached from the real world -- you don't want to seem like another corporate stiff. "At the end of the day, time is limited, and if someone looks very cold, recruiters may not think it's worth reaching out," Ide says. "But if you mention the type of technology you prefer or a sports team you like, that allows a recruiter's correspondence to be more personalized, and they're going to feel more comfortable reaching out to you." It's all about establishing rapport, Ide explains. At its core, LinkedIn is about building relationships. Smart job-seekers know that relationships are best formed when insights into personality are made available -- but be mindful that you don't overshare, says Doug Brown, director of the Institute for Innovation and Entrepreneurship at the Malcolm Baldridge School of Business at Post University in Waterbury, Conn. [Read: 5 Signs It's Time to Quit Your Job ] "People think it's Facebook, and it's not," Brown says. "You might make a post about a political candidate on Facebook, but think about LinkedIn as the workplace. If you wouldn't discuss it in the workplace, don't talk about it on LinkedIn."

2. Ask for recommendations

"Your background needs to represent you in the best possible way," Ide says. "It's always hard to say great things about yourself, but you need to have those things up there, and that's where recommendations come in."

It's most beneficial when people who can speak to the quality of your work are the ones who recommend you, Ide explains. While it's great if a college professor can offer their support, it's best if a former boss or direct report can contribute thoughts about their recent one-on-one experiences with you.

Additionally, Brown says that targeted recommendations are the most beneficial. "It's not enough to have a recommendation that says, 'He is a nice person.' You've got to have one that highlights your transferable skill set." To ask someone for a recommendation, Ide says a simple approach is best. "Say to them, 'One of the things I am trying to be aware of is my social profile, and I'm trying to better my LinkedIn presence. I know you have a good idea of the quality of work I produce -- would you mind writing a recommendation?'" Of course, when you ask for a recommendation, be prepared to reciprocate, Ide says. "Before you reach out, consider whether or not you'd feel comfortable writing one for them, because there's a good chance they'll ask," he says. [Read: New iPhone or Not, Smartphone Owners Aren't Moving Up] 3. Keep up your LinkedIn relationships and have a voice "One of the big reasons people use LinkedIn is to be exposed to different opportunities -- even if you're not currently job hunting and the timing isn't perfect," Ide says. "People are constantly evaluating one another on LinkedIn, so it's important to be engaged at times when you're not actively job seeking." One way to stay involved on LinkedIn is through groups. Depending on the business, Ide recommends joining somewhere between four and seven groups, allowing you to participate in discussions and demonstrate your knowledge of the industry. "Leverage the power of affinity groups," Brown says. "Everything from alumni associations to professional organizations are great ways to stay connected. You also want to look for professional associations and interest groups in the space where you want to be, even if you're not quite there yet."

4. Highlight your skill set -- and be specific

"Ask yourself: What kind of job do you want, and who is your target market?" Brown says. "The challenge goes all the way back to brand strategy. If you are trying to be everything to everybody, you aren't going to be anything to anybody."

If a company sees your resume as being all over the place, they're going to feel like you don't want this particular job -- you're just desperate for any job. They may also feel that you've had no direction in your career, Brown explains, adding that phrases such as "I am a fast learner" or "I can do anything" don't go very far.

"Adopt the mindset that you are educating people about what you can offer them, exactly," he says. Highlighting personal accomplishments is especially important for individuals who have worked for companies that aren't top-tier, Ide says. "We can't change the circumstances of who we worked for, but you can highlight your personal accomplishments and the skills you built while working there," he says. "If someone worked for a lesser company but was doing great things, they need to openly discuss the projects and initiatives they were involved in." 5. Be less private -- even take things into the "real world" "Some people will tell you texting is a perfectly good way to communicate with someone, but I don't think so," Brown says. "If you want to have a true relationship with someone, you've got to have a human moment." It's great to ask a contact for coffee, drinks or lunch, but Brown says to make sure you have an agenda when you meet up with them -- if you're really there for professional purposes, you won't want to spend the entire time talking about sports or family issues. "Have a marketing plan," Brown says. "Ask them specific questions. Don't be shy." When it comes to privacy settings for LinkedIn, Ide says you don't have to be as cautious as you do with other social media sites. "LinkedIn is different from Facbeook, where there is a reason to be private," he says. "On LinkedIn, you want new opportunities, and you want to be more public, more accessible." Active job-seekers should set their privacy settings carefully, Ide explains -- use the option to stay anonymous when you view other people's profiles, but turn on OpenLink, which allows LinkedIn members to contact you directly without an introduction or an InMail, making it free and easy for anyone with an opportunity to get in touch.

Friday, June 26, 2015

Mid-Morning Market Update: Markets Open Higher; FactSet Research Posts Downbeat Q4 Earnings

Following the market opening Tuesday, the Dow traded up 0.30 percent to 15,540.55 while the NASDAQ surged 0.33 percent to 3,730.07. The S&P also rose, gaining 0.29 percent to 1,702.52.

Top Headline
FactSet Research Systems (NYSE: FDS) reported a 5 percent rise in its fiscal fourth-quarter earnings. FactSet Research's quarterly profit surged to $51 million, or $1.16 per share, from $48.5 million, or $1.08 per share, in the year-ago period. Excluding one-time items, its adjusted earnings came in at $1.20 per share, versus analysts' estimates of $1.21 per share. Its revenue rose 5.6 percent to $219.3 million. FactSet Research had expected earnings of $1.18 to $1.21 per share on revenue of $218 million to $221 million. For the current quarter, FactSet Research expects earnings of $1.21 to $1.24 per share on revenue of $222 million to $225 million. However, analysts were projecting a profit of $1.23 per share on revenue of $224 million.

Equities Trading UP
Repros Therapeutics (NASDAQ: RPRX) shot up 29.82 percent to $27.60 after the company announced topline results from both the second pivotal efficacy study as well as the 6 month safety study of Androxal®. Shares of Kythera Biopharmaceuticals (NASDAQ: KYTH) got a boost, shooting up 26.04 percent to $42.26 after the company reported positive ATX-101 top line phase III trial results for the reduction of submental fat. Aeropostale (NYSE: ARO) was also up, gaining 16.75 percent to $10.05 after private equity firm Sycamore Partners reported that it had bought a 7.96 percent stake in the company.

Equities Trading DOWN
Shares of Outerwall (NASDAQ: OUTR) were down 16.03 percent to $47.00 after the company lowered its forecast for the third quarter and full year. Werner Enterprises (NASDAQ: WERN) shares tumbled 4.71 percent to $23.26 after the company issued a weak third-quarter profit forecast. Bank of America downgraded the stock from Buy to Neutral. Pandora Media (NYSE: P) down, falling 1.71 percent to $23.58 as the company announced its plans to sell 14 million shares of common stock, including 4 million shares from current stockholders.

Commodities
In commodity news, oil traded down 0.61 percent to $105.94, while gold traded down 0.35 percent to $1,313.20. Silver traded down 0.75 percent Tuesday to $21.85, while copper rose 0.39 percent to $3.23.

Euro zone
European shares were mixed today. The Spanish Ibex Index dropped 0.04 percent, while Italy's FTSE MIB Index rose 0.10 percent. Meanwhile, the German DAX dropped 0.04 percent and the French CAC 40 rose 0.04 percent while U.K. shares fell 0.18 percent.

Economics
The ICSC-Goldman Sachs store sales index dropped 1.6 percent in the week ended Saturday from the previous week. U.S. consumer prices increased 0.1 percent in August, while the core CPI also rose 0.1 percent. However, economists were expecting a 0.2 percent rise in both prices. The Johnson Redbook Retail Sales Index fell 0.3 percent in the first two weeks of September versus August. The NAHB housing market index remained at 58 in September. However, economists were expecting a reading of 58 in the month. August's reading was also revised to 58 versus an earlier estimate of 59. The Federal Open Market Committee begins its two-day policy meeting today. The Treasury is set to auction 4-and 52-week bills.

Thursday, June 18, 2015

Vital to consider risk appetite while investing

Through this article we are sure that the 'investment process' we have outlined herein would help many investors strike the correct chord.

Before we understand the term risk appetite , let us try to understand by what is meant by "risk". To put it simply, risk is a result or outcome which is other than what is / was expected. While you assume risk as an investor, you could either make gains or suffer a loss; thus risk is nothing more than a state of uncertainty, and exists in every facet of life- including investments.

The term "risk appetite" refers to one's willingness to take risk. But it doesn't merely end with willingness to make a prudent investment decision; but in fact needs to be backed by a rationale considering risk determinants such as the following: 

Age:
Your age plays a vital role to determine your risk appetite. Thus the younger you are, more risk you can take and vice-a-versa. This is because you are in the accumulation or earning stage of your life cycle, where you have more number of working years before you retire. Likewise, if you start investing at an early age the tenure which you get (while investing in an investment avenue) is greater, which enables you to make more aggressive investments and create wealth over the long-term to meet your financial goals.

Income:
Similarly, your income too is an important determinant to gauge your risk appetite. This is because if you income is high enough, you can afford to take high risk and vice-versa.

Expenses:
Your outgoings also influence the risk which you can afford to take while investing. Thus although you may be having a high income, but your disposable income is petite you could be refrained from taking risk.

We think that in order to keep your financial health in pink in the long-term, it is important that you live within means and curtail your unnecessary expenses. It is this strategy which will enable you save a large portion of your monthly earnings, which can be deployed in suitable asset classes.

Nearness to goal:
Also if your investments are driven by an objective to meet a financial goal, that too would be a determinant for gauging your risk appetite. Thus if you are many years away from the financial goal you could afford to take more risk, while if you are not many years away from the financial goal you could be risk-averse.

Thus ascertaining risk appetite is a combination of these aforementioned factors, and equation of all these can help you test your risk tolerance.

It is noteworthy that while there are investment opportunities and avenues galore, you ought to take care and ensure that you are not cooking a recipe for disasters. As mentioned earlier, while there is information galore on investment avenues you ought to adopt caution and ensure that you are taking a wise investment decision which suits your needs and risk profile. There is no point in being carried away by an investment opportunity which has being hyped (even though it may be really worth it), if does not suit your risk profile. Moreover one should be wary of investment opportunities which harp on returns and does not emphasise on the risk involved.  As a matter of fact, in the absence of information related to risk, information isn't just incomplete, it's downright misleading.

So the next time you hear or read of investment opportunities and avenues ask yourself a simple question "Does this investment opportunity or avenue suit my risk profile, although it may deliver luring returns?" Remember, investing is not about how much return you like, but how much returns you can safely handle.

PersonalFN is a Mumbai based Financial Planning and Mutual Fund Research Firm

Wednesday, June 17, 2015

Bayer Announces Positive Phase I Data - Analyst Blog

The HealthCare segment of Bayer (BAYRY) recently announced positive results from a phase I study on prothrombin complex concentrates (PCCs). The study evaluated three- and four-factor PCCs in 34 healthy adults.

Results from the phase I study revealed that three- and four-factor PCCs can be used to reverse the anticoagulant effect measured by coagulation assays in patients treated with blood thinner Xarelto (20mg twice daily). The study further revealed that the three-factor PCC was more effective than the four-factor PCC on reversing Xarelto-induced changes in thrombin generation.

Bayer stated in its press release that currently there are no approved reversal agents for Xarelto. In Feb 2013, Bayer along with partner Johnson & Johnson (JNJ) collaborated with Portola Pharmaceuticals Inc. (PTLA) to evaluate the potential ability of PRT4445 in reversing the anticoagulant activity of Xarelto in emergency situations.

We note that Xarelto is marketed by Johnson & Johnson in the US and by Bayer outside the US.

Meanwhile, Bayer and Johnson & Johnson received a huge setback from the US Food and Drug Administration (FDA) last month, when the US regulatory body issued a complete response letter (CRL) to the supplemental New Drug Application (sNDA) of Xarelto for the reduction of risk of stent thrombosis in patients suffering from acute coronary syndrome (ACS).

Bayer/Johnson & Johnson are no strangers to setbacks regarding the ACS indication in the US. In Mar 2013, the companies received a second CRL from the FDA for Xarelto's (2.5 mg twice daily) sNDA submission for the reduction of the risk of secondary cardiovascular events in patients suffering from ACS. The initial CRL for this indication was issued in Jun 2012, after which Bayer and Johnson & Johnson had resubmitted the sNDA for blood-thinner Xarelto in Sep 2012.

Xarelto is, however, approved for several indications in the US including stroke prevention in nonvalvular atrial fibrillation, dee! p vein thrombosis (DVT), pulmonary embolism (PE) and reduction of the risk of recurrent DVT and PE.

Bayer, a large-cap pharma company, presently carries a Zacks Rank #4 (Sell). Meanwhile, other large-cap stocks such as Novo Nordisk (NVO) currently look more attractive with a Zacks Rank #2 (Buy).

Sunday, June 14, 2015

Is This a 'Buy And Forget' Share?

Right now, Rupert Hargreaves from The Motley Fool UK is analyzing some of the most popular companies in the FTSE 100 to establish if they are attractive long-term buy and forget investments.

What is the sustainable competitive advantage?

Today I'm looking at National Grid (NG/:LN) (NYSE:NGG). National Grid owns and controls the electricity distribution network for the United Kingdom.

Indeed, apart from some Scottish regions, which are under the control of (LSS:SSE), National Grid has a virtual monopoly over the market.

In addition, as National Grid has been around in various forms since 1926, accumulating over £50 billion in assets, a vast and complex distribution network, as well as regulatory approval to run the network, the company has a wide moat defending its position from competitors.

However, the company's US operations, which are only regional networks and account for 35% of EBITDA, are having a hard time fighting off competition.

Having said that, as National Grid is such a key part of the UK economy, the company is subject to the constant scrutiny of regulators, and the firm is banned from generating abnormal levels of profit.

In particular, the company's UK revenue for the next eight years is only allowed to rise in line with inflation and the company's cost of capital.

Still, the group's net profit margin for 2013 was 20%, so the company is not struggling to make money.

Company's long-term outlook?

With regulatory approval to run the UK's electricity network—granted for the next eight years—National Grid's outlook here in the UK appears to be guaranteed for the medium term.

However, over the longer term, the biggest risk to National Grid is the company's forced break-up by regulators.

Having said that, a break-up would lead to higher electricity prices for consumers, a bullet that not many political parties would like to bite.

Unfortunately, on the other side of the pond, the company's regional networks face a more uncertain future due to competition and natural disasters.

Nonetheless, National Grid's dominance over the utility market here in the UK, gives the company a strong competitive advantage over the majority of its smaller US peers.

Foolish summary

All in all, National Grid appears to be the perfect long-term investment. The firm's wide moat, market dominance, and heritage, all point to a company that is going to be around for the long-term.

Moreover, with electricity demand in the UK constantly rising, the company looks set for a future of sustained growth.

So overall, I rate National Grid as a very good share to buy and forget.

Rupert does not own any share mentioned in this article.

Read more from The Motley Fool UK here...

Tuesday, June 9, 2015

Will Wells Fargo Stock Reach a New 52-Week High Today?

Big banks had an exceptionally fantastic week as investors showered all with share price boosts. Bank of America (NYSE: BAC  ) , Citigroup (NYSE: C  ) , JPMorgan Chase (NYSE: JPM  ) , and Wells Fargo (NYSE: WFC  ) all rode the wave higher and higher, and all closed very near their 52-week highs.

For B of A, the meteoric rise is a bit of a stumper, considering the fact that it is facing a judge in a Manhattan courtroom this week, and the outcome of this hearing could have dire consequences for the big bank. Apparently, investors have faith -- and it's showing.

Citi had some good news, settling up with insurer Allstate (NYSE: ALL  ) over some cruddy MBSes, in a "mutually agreeable" manner, according to Bloomberg. JPMorgan and Wells likely felt pretty smug as Fannie Mae plummeted this week, along with Freddie Mac -- less than one week after telling Bloomberg how it has been squeezing mortgage originators out of profits by cutting the banks out of the lucrative securitization process.

For Wells, today promises to be another good day, and not just because of the general financial sector rally. In addition to the uplifting housing news this week, CEO John Stumpf spoke at an investors' conference in New York and took on a very prescient subject: interest rates. In plain language, Stumpf acknowledged the challenges that the current environment presents and even admitted that his bank may have erred in leaving too much cash on the sidelines, waiting for the big change-up to occur.

It's not very often that a big bank CEO admits to being wrong, but it's just this kind of straight shooting that has kept Wells' figurative head above water when peers were in danger of drowning. In the first hour of trading, Wells is down a smidge, but I think it will rally, and then some. Investors want honesty, and Wells will surely be the recipient of some appreciation on that score.

Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.

Monday, June 8, 2015

A Closer Look at BHP Billiton's Dividend Potential

LONDON -- Dividend income accounts for about two-thirds of total returns -- the actual rate of return, taking into account both capital and income appreciation. Given that share prices are often volatile and unpredictable, the potential for plump dividends can give shareholders much-needed peace of mind for decent returns.

I am currently looking at the dividend prospects of BHP Billiton (LSE: BLT  ) (NYSE: BBL  ) and assessing whether the company is an appetizing pick for income investors.

How does BHP Billiton's dividend history stack up?

 Metric

2009

2010

2011

2012

FY dividend per share

$0.82

$0.87

$1.01

$1.12

DPS growth

17.1%

6.1%

16.1%

10.9%

Dividend cover

2.4

2.6

3.9

2.9

Source: BHP Billiton company accounts.

BHP Billiton has managed to keep dividends rolling higher in recent years, even in times of severe earnings pressure -- dividend hikes in 2009 and 2012 came despite respective earnings-per-share declines of 30% and 18% for those years.

Dividend rises have been relentless, if erratic, while a mix of earnings volatility has also seen dividend cover subsequently shake during the period. However, coverage has still remained above the security benchmark of two times prospective earnings.

What are BHP Billiton's dividends expected to do?

Metric 

2013

2014

FY dividend per share

$1.10

$1.25

DPS growth

(1.8%)

13.6%

Dividend cover

2.1

2.2

Dividend yield

3.8%

4.3%

Source: Digital Look. Exchange rate: £1=$1.51889.

City analysts are expecting a 29% EPS slide for the year ending June 2013 to be accompanied by a slight drop in the annual dividend. However, an anticipated 25% earnings snapback in 2014 will result in a strong resumption of dividend growth, according to estimates.

BHP Billiton carried out severe restructuring of its senior management team earlier this month, stripping out a layer of management as part of its bid to improve operational efficiency and slash outgoings. The steps included the appointment of nonferrous-metals head Andrew Mackenzie as chief executive -- he replaces former head Marius Kloppers, who oversaw heavy cost increases in recent years as expenditure and costs spiraled.

The mining giant saw underlying earnings before interest, depreciation, taxes, and amortization drop a hefty 29.3% in 2012 to $13.2 billion, with total revenue slumping 14.1% during the period to $32.2 billion. The company has since announced severe capex scale-backs and divestments in an effort to improve the balance sheet and provide a stable platform for future growth.

How do BHP Billiton's dividend prospects rate against the competition?

 

Prospective Dividend Yield

Prospective P/E Ratio

Mining

256.1%

15.9

FTSE 100

3.1%

15.9

Source: Digital Look.

BHP Billiton currently trades on a P/E readout of 12.7 for 2013, trading at a discount to both the FTSE 100 and its mining counterparts. It also beats the U.K.'s main share index in terms of forward dividend yield, although a handful of companies distort the projected figure for BHP Billiton's fellow dirt-diggers.

Instead, it is worth comparing the firm's metrics with other diversified miners. Glencore Xstrata carries a prospective yield of 3% and trades on a P/E rating of 11.8. And Rio Tinto deals on a forward earnings multiple of 7.9 and boasts a potential yield of 4%.

Although BHP Billiton's ongoing restructuring plan is making huge strides in the right direction, I believe the firm still represents a risky pick for investors. Much work still has to be accomplished to improve the shape of the company and cut costs to respectable levels, in my opinion, while still-volatile commodity prices continue to cloud the miner's earnings outlook. I believe BHP's projected dividend yields can be achieved elsewhere and with less risk attached.

The expert's guide for intelligent investors
Although BHP Billiton currently presents too much risk in my opinion, this newly updated special report highlights a host of other FTSE winners identified by ace fund-manager Neil Woodford. Woodford, head of U.K. Equities at Invesco Perpetual, has more than 30 years' experience in the industry and boasts an exceptional track record when it comes to selecting stock market stars. The report, compiled by The Motley Fool's crack team of analysts, is totally free and comes with no further obligation. Click here now to download your copy.

Thursday, June 4, 2015

Price is right: Muni fund bets

Mark SalzingerDespite low yields, municipal bond funds still make sense for conservative investors interested in principal protection, modest income and diversification against their equity portfolios.

Among our favorites are the national funds from T. Rowe Price, which have generated consistently strong tax-free income with superior risk-adjusted returns. All feature a long-tenured manager, an extensive corps of credit analysts, generally mild volatility, and a low expense ratio.

Longer-Term

T. Rowe Price Summit Municipal Income (PRINX) and T. Rowe Price Tax-Free Income (PRTAX) are both managed by Konstantine Mallas, who has run the former fund since 1999 and the latter since 2007.

In the 10-year period ended March 31, 2013, Summit Municipal Income produced an annualized total return of 5.4%, vs. 4.5% for its average peer. Over the past five years, Tax-Free Income has returned 6.2% on an annualized basis, vs. 5.8% for its average peer.

Mallas generally attempts to add return by emphasizing credit analysis rather than making interest rate bets in his funds. So, interest rate risk is moderate, while the funds can benefit from the selection of bonds that the research team believes to be undervalued.

Summit Municipal Income and Tax-Free Income have significant overweight positions in bonds rated A and BBB (about 45% and 14%, respectively, in each portfolio), the lowest two tiers of investment-grade ratings.

Mallas has limited the funds' allocations to the longest-term municipals (20 to 30 years until maturity) to about 40% of assets, vs. nearly 60% for the category. This should help limit damage from any rise in very long-term rates.

Both funds emphasize 'revenue bonds' over 'general obligation' (GO) bonds. As a generality, general obligation bonds are safer than revenue bonds. But with funds it makes less difference, thanks to the safety embedded in effective diversification.

Between the two funds, Tax-Free Income courts less risk, with a greater emphasis on investment-grade bonds and slightly less sensitivity to changes in interest rates. It also has a lower minimum initial investment ($2,500, vs. $25,000 for Summit Municipal Income).

Of course, because it has a milder risk profile, it also pays out less income. Recently, Tax-Free Income had an SEC yield of 2.2% (equivalent to a 3.1% yield for an investor in the 28% tax bracket), vs. 2.5% for Summit Municipal Income (3.4% tax-equivalent yield).

Shorter-Term

Charles Hill has managed T. Rowe Price Price Summit Municipal Intermediate (PRSMX) since 1994 and T. Rowe Price Tax-Free Short-Intermediate (PRFSX) since 1995.

Over the past five years, Summit Municipal Intermediate had a return of 5.5% on an annualized basis, vs. 5.1% for the average intermediate- term municipal bond fund—and with 15% less volatility to boot.

The Short-Intermediate Fund has consistently outperformed the short-term muni average; it has generated a five-year-annualized return of 3.6%, vs. 2.6% for its average peer.

Both funds share an emphasis on quality: virtually all of their holdings are investment-grade, and each has only about 10% of its portfolio in BBB-rated bonds.

To help generate at least some yield, Hill has reduced exposures to the highest rated AAA bonds and invested in bonds with longer maturities—but the funds' overall interest rate sensitivity remains mild.

In Summit Municipal Intermediate, he has added positions in tax-free bonds backed by corporate issuers, citing their generally strong credit and profitability. In both funds, Hill emphasizes revenue bonds in the transportation and healthcare sectors that Price's muni analysts have favored recently.

Summit Municipal Intermediate has a $25,000 minimum initial investment and a 0.50% expense ratio. Its recent SEC yield of 1.3% is equivalent to a 1.8% taxable yield for an investor in the 28% tax bracket.

Tax-Free Short-Intermediate has a $2,500 minimum initial investment and a 0.50% expense ratio. Its recent SEC yield was a tiny 0.4%, which rises to 0.6% on a tax-equivalent basis in the 28% tax bracket.

Higher-Yield

James Murphy has managed T. Rowe Price Tax-Free High Yield (PRFHX) since 2001. Over the past 10 years, the fund has generated a 5.7% annualized return, vs. 4.9% for its average peer—and, with about 11% less volatility.

High yield municipal bond funds tend to invest in both lower-rated investment-grade and below-investment-grade bonds. Murphy recently had roughly the same exposure to bonds rated below investment grade as his competitors' average (about 14% of the portfolio).

He has recently emphasized bonds rated 'A' and 'BBB,' which together account for about 60% of the portfolio. The fund is heavily invested in healthcare (about 30%), pollution control (25%) and transportation bonds (13%).

Tax-Free High Yield recently yielded 3.3%, equivalent to a 4.6% yield to a taxable investor in the 28% tax bracket. Its expense ratio of 0.68% is significantly lower than its average peer's 1.00%.

This is the riskiest of Price's municipal bond funds: Tax-Free High Yield lost 21.5% in 2008, vs. losses of 8.0% and 5.8% in Spectrum Municipal Income and Tax-Free Income, respectively.

Although Tax-Free High Yield has exhibited lower volatility than the high yield municipal average, it has been 60% more volatile over the past five years than Tax-Free Income.

However, investors who fear rising rates should be interested to know that during periods in the past when rates have gone up over several months, Tax-Free High Yield has tended to outperform most investment-grade municipal bond funds.

Tuesday, June 2, 2015

Moody’s Corporation Boosts FY2014 Outlook (MCO)

On Tuesday morning, Moody’s Corporation (MCO) reported that it has boosted its outlook for FY2014.

The rating agency has raised its adjusted FY2014 outlook to a range of $3.95 to $4.05 per share. The company previously reported an outlook of $3.90 to $4.00 per share. Analysts are expecting to see earnings of $4.02 per share.

The expected EPS does not include a 36 cent gain in relation to MCO’s acquisition of controlling interest in ICRA Ltd. The outlook includes costs related to its WebEquity purchase.

On a GAAP basis, MCO expects to see earnings between $4.31 and $4.41 per share. Revenue is expected to rise in the low double digits. Analysts expect to see revenue of $3.30 billion.

MCO Dividend Snapshot

As of market close on September 29, 2014

MCO dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of MCO dividends.

Moody’s Corporation shares were mostly flat during pre-market trading Tuesday. The stock is up 19.93% YTD.

Monday, June 1, 2015

Dow Hits 17,000 On Jobs Report; Walgreen Same-Store-Sales Surge 7.5%

Related BZSUM Dow Trades Above 17,000 While S&P 500 Inches Closer To 2,000 #PreMarket Primer: Thursday, July 3: Much To Consider Despite The Short Day

Following the market opening Thursday, the Dow traded up 0.43 percent to 17,048.94 while the NASDAQ surged 0.37 percent to 4,474.01. The S&P also rose, gaining 0.35 percent to 1,981.49.

Leading and Lagging Sectors

In trading on Thursday, non-cyclical consumer goods & services shares were relative leaders, up on the day by about 0.56 percent. Top gainers in the sector included Rite Aid (NYSE: RAD), up 5.7 percent, and Lorillard (NYSE: LO), up 4.8 percent.

Utilities shares dropped 0.78 percent in today’s trading. Top decliners in the sector included Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS), down 1.7 percent, and Public Service Enterprise Group (NYSE: PEG), off 1.9 percent.

Top Headline

Walgreen Co (NYSE: WAG) reported a 7.5% rise in its same-store sales in June.

Walgreen’s overall sales climbed 8.9% to $6.28 billion. Its same-store sales in the pharmacy section climbed 11.3% in June.

Walgreen’s same-store customer traffic declined 2%.

Equities Trading UP

PetSmart (NASDAQ: PETM) shares shot up 12.76 percent to $67.43 on news that activist investor Barry Rosenstein had acquired a 9.9 percent stake and will seek a review of strategic alternatives.

Shares of Lululemon Athletica (NASDAQ: LULU) got a boost, shooting up 3.26 percent to $42.75 after Dow Jones reported that the company’s founder Dennis Wilson, is exploring options , including a potential sale of the company to private equity.

Cree (NASDAQ: CREE) shares were also up, gaining 3.94 percent to $52.29. Oppenheimer upgraded Cree from Market Perform to Outperform.

Equities Trading DOWN

Shares of SYNNEX (NYSE: SNX) were down 5.46 percent to $69.89 after the company issued a downbeat outlook for the third quarter. It expected adjusted earnings of $1.45 to $1.50 per share on revenue of $3.3 billion to $3.4 billion. Analysts were projecting earnings of $1.53 per share on revenue of $3.29 billion.

NQ Mobile (NYSE: NQ) shares tumbled 34.32 percent to $4.44 after the company announced certain changes to its Board of Directors and provided a status update on its 2013 annual audit.

BIND Therapeutics (NASDAQ: BIND) was down, falling 10.56 percent to $11.52 after the company reported the closing of collaboration deal with Amgen (NASDAQ: AMGN).

Commodities

In commodity news, oil traded down 0.43 percent to $104.03, while gold traded down 1.07 percent to $1,316.70.

Silver traded down 1.04 percent Thursday to $21.08, while copper fell 0.15 percent to $3.26.

Eurozone

European shares were higher today.

The eurozone’s STOXX 600 rose 0.73 percent, the Spanish Ibex Index gained 0.37 percent, while Italy’s FTSE MIB Index surged 0.90 percent.

Meanwhile, the German DAX climbed 0.79 percent and the French CAC 40 rose 0.69 percent while UK shares climbed 0.66 percent.

Economics

The US economy added 288,000 jobs in June, while the unemployment rate declined to 6.1% versus 6.3%. However, economists were expecting an addition of 215,000 nonfarm jobs.

US jobless claims increased 2,000 to 315,000 in the week ended June 28. However, economists were projecting claims to reach 314,000 in the week.

US trade deficit narrowed 5.6% in May to $44.4 billion in May. The country’s exports increased 1% to $195.5 billion, while imports declined 0.3% to $239.8 billion.

The final reading of Markit PMI Services index fell to 61.00 in June, versus a prior reading of 61.20. However, economists were expecting a reading of 61.00.

Announced layoffs declined 31,343 in June versus 52,961 in May, according to outplacement consultancy Challenger, Gray & Christmas.

The ISM non-manufacturing index fell to 56.00 in June, versus a prior reading of 56.30. However, economists were expecting a reading of 56.30.

The Treasury is set to auction 3-and 6-month bills. The Treasury will also auction 3-and 10-year notes.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Contracts Legal

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Apple Price Target Raised 15% By Evercore, Sees Revenue Growth Resuming Rumored Big Engine Order From American Could Boost GE Aviation's Bottom Line Aegis Capital Believes Valeant Pharmaceuticals' Bid For Allergan Is Looking More Promising Traders Speculating Chevron May Acquire Devon Energy (CVX, DVN) Now Is The Right Time To Buy Rite Aid Nintendo Promoted 'Mario Kart 8,' Nintendo 2DS With $9.7 Million TV Ad Campaign Related Articles (AMGN + BIND) Citi Sees Plenty Of Q2 Earnings Beats Ahead In Biotech Sector Dow Hits 17,000 On Jobs Report; Walgreen Same-Store-Sales Surge 7.5% JMP Securities Speculates How End Of Amgen Collaboration Could Affect BIND Therapeutics Morning Market Losers UPDATE: Credit Suisse Reiterates On BIND Therapeutics After AMGN Declines Option On Accurin Technology Benzinga's Top #PreMarket Losers Partner Network

Sunday, May 31, 2015

'Deathtrap' on GM's naughty words list

general motors words

GM warned employees to not use these words and phrases in memos.

NEW YORK (CNNMoney) "Deathtrap," "widowmaker," "rolling sarcophagus."

Those are a few of the words that General Motors asked its employees to avoid using in their internal communications.

A lengthy list of unacceptable terms appeared in a 2008 presentation given to GM (GM, Fortune 500) employees on how to communicate with each other regarding possible safety issues.

Besides individual words, certain phrases were also discouraged in the presentation. "This is a lawsuit waiting to happen," and "Unbelievable engineering screw-up" were among what the presentation described as "examples of comments that do not help identify and solve problems."

Rather, employees should use phrases like "Windshield wipers did not work properly. Would run for 3-4 seconds and then quit for the next 7-8 minutes... repeatedly."

Among the "Judgement words" employees were told to avoid: "Hindenburg," "powder keg," "Titanic," "apocalyptic," "You're toast," and "Kevorkianesque."

GM's recall nightmare won't end   GM's recall nightmare won't end

Less inflammatory words such as "safety," "safety related," "serious," "failure," and "defect" were also listed as words to be avoided.

GM fined $35 million for delayed recall

Such words and phrases were not to be used because they are "vague and non-descriptive" according to GM's presentation.

Instead of "Safety," an employee should write that something has "Has potential safety implications." Instead of "Defect," an employee should say that something "Does not perform to design." Instead of a "Problem," there is an "Issue, condition, matter."

As part of the evaluation process for new vehicles, automakers will often have company employees drive vehicles before they go into full production. The employees can then share any problems they might experience so issues can be resolved before the car, truck or SUV is released to the public.

Family asks to re-open GM recall

In the presentation, GM admonished employees to "Understand that there reall! y aren't any secrets in this company".

"For anything you say or do, ask yourself how you would react if it was reported in a major newspaper or on television."

National Highway Traffic Safety Administration Acting Administrator David Friedman criticized GM for the presentation during a press conference Friday. Friedman said that, in telling employees to avoid certain language when writing about safety issues, GM was discouraging open and free discussion of potential problems.

"We encourage employees to be factual in their statements and will continue to work with NHTSA to improve our safety processes," GM said in a written statement responding to questions about the presentation. "Today's GM encourages employees to discuss safety issues, which is re-enforced through GM's recently announced Speak Up for Safety Program."

In the "Speak Up for Safety" program, GM has said it will recognize employees who share ideas to make vehicles safer or who point out potential safety issues in vehicles.

Timeline - Steps to a recall nightmare

Prior to the new safety promotion program, which was introduced after a massive recall over ignition switches tied to 13 deaths, employees were told not to be "cute or clever," something that might be "especially easy to do in an e-mail, when there might be a temptation to use a casual tone to describe a potentially serious safety risk."

The presentation, which was released to the public on Friday by NHTSA, concluded with the warning to "Consider how documents will be interpreted by people outside of GM."

The presentation, labeled "GM confidential," was submitted to NHTSA as part of the agency's investigation into the automaker's delayed recall of the Chevrolet Cobalt and other cars due the ignition switch problem.

On Friday GM agreed to pay a $35 million fine -- the maximum possible for a single violation -- for not reporting the problem to NHTSA quickly enough.

Thursday, May 28, 2015

Chipotle plans first price hike in 3 years

NEW YORK (AP) — Chipotle is feeling confident that customers are willing to pay more for its burritos, bowls and tacos.

The Mexican food chain said Thursday that it would raise prices for the first time in three years as its popularity continues to soar. Menu boards with the new prices should start rolling out in coming weeks and be in place at all restaurants by this summer.

Executives have said in the past they were considering a hike of about 3% to 5%. That translates to an extra 24 cents to 50 cents for an $8 burrito bowl.

Jack Hartung, Chipotle's chief financial officer, said during a conference call with analysts that price is not the main reason customers visit its restaurants anyway.

"Most of the value comes from the experience," he said.

Hartung also noted that the company had earned "permission" from customers to raise prices because of that experience. And if needed, he said Chipotle still had the leeway to further raise prices without scaring off customers.

"We've still got room," he said.

The decision comes as higher costs for beef, avocados and cheese have pressured profit margins for the chain, with net income for the first quarter coming in below Wall Street expectations. Still, Chipotle said sales at established locations rose 13.4% during the period and it raised its outlook for the year. It now expects the sales figure to grow in the high-single digits, before factoring in the price hikes.

The Denver-based chain's popularity has surged in recent years because people like that they watch as they tell workers what toppings to put on their orders. The chain has also invested in marketing to build up its reputation as higher-quality alternative to places like Burger King and Wendy's.

MORE: Chipotle shares sink on disappointing earnings

Those traditional fast-food chains have struggled to grow sales as customers increasingly flock to foods they feel are fresh or higher in quality. In contrast to Chipotle, for instance, McDonald'! s has said it needs to focus on underscoring the value it offers.

McDonald's CEO Don Thompson has also noted that there is a bit of "bifurcation" in the fast-food industry, with better-off customers heading to the new breed of chains that charge more.

For the three months ended March 31, Chipotle Mexican Grill Inc. said net income rose 8% to $83.1 million, or $2.64 per share. That's up from $76.6 million, or $2.45 per share, a year ago. Analysts expected $2.86 per share, according to FactSet.

Revenue climbed a stronger-than-expected 24% to $904.2 million.

Chipotle has also been expanding rapidly. It opened 44 restaurants during the quarter and plans to open 180 to 195 restaurants during all of 2014. It already has more than 1,600 locations.

Its shares fell $32.79, or 5.9%, to close Thursday at $519.61. Its shares are up almost 70% the past year.

Follow Candice Choi at @candicechoi

Americans Confident on Taxes but Clueless in One Big Area

A national tax study by BMO Harris Financial Advisors, released last week, found that although many taxpayers confidently prepared their own returns, they felt less smart about tax-efficient investing.

Forty-eight percent of those surveyed did their own tax returns, and 83% were confident that their completed tax returns would take advantage of all of the tax deductions, tax credits or other tax savings that might be available to them.

However, 45% of respondents admitted they didn’t know much about investment solutions designed to reduce overall tax liability, including protecting their investments from tax liability and transitioning them in a tax-efficient manner to the next generation.

Only 44% of survey respondents understood how capital gains were taxed, and 47% understood how dividend income was treated for tax purposes.

Pollara conducted the online survey of 1,000 Americans 18 and older between March 7 and March 10.

 “There’s a sense of confidence this tax season as Americans across the country prepare their tax returns in advance of the April 15 filing deadline,” Mike Miroballi, president of BMO Harris Financial Advisors, said in a statement.

“However, it’s critical that people have an appreciation of and basic knowledge about how tax rules impact all their assets, including their investments.”

Miroballi said a financial professional could work with clients to determine investment solutions that best fit their specific needs and goals, including reducing tax liability and transitioning assets to the next generation in a tax-efficient manner.

Indeed, a wide spectrum of investors seeks tax and estate planning advice, according to UBS Wealth Management Americas.

The BMO Harris study also found that those expecting a tax refund planned to do these things with the money:

Wednesday, May 27, 2015

5 Smartwatches You Can Buy Right Now

The rumors are growing that Apple is on the cusp of releasing its iWatch, but while investors are impatiently waiting for the company to enter the wearables market, Samsung (NASDAQOTH: SSNLF  ) , Sony (NYSE: SNE  ) , Qualcomm (NASDAQ: QCOM  ) and others are already firmly in the smartwatch space.

Flip through the slideshow below to check out some of the latest smartwatches on the market and the key features that make them stand out from the rest of the pack. The devices run the gamut from the top tech companies to crowd-sourced start-ups, and each have their own merits. Whether you prefer high-end cameras, special apps, or a budget conscious option, the following smartwatches are some of the best on the market.

The Motley Fool's top stock for 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

 

Monday, May 25, 2015

20 Best & Worst Fund Families of 2013

In 2013, total mutual fund assets grew by nearly 20%, or $282 billion, largely thanks to to substantial asset growth in passively managed products, reports Cerulli Associates in its latest industry report, released Friday.

Equity products dominated the fund landscape last year, capturing flows of $232 billion, the research firm says. They jumped by $5 billion in December.

Last year, of course, the markets had a solid year.

While the major U.S. market indexes are down about 4% this month, they had a terrific 2013. The Dow Jones rose 29.65%, the S&P 500 32.39% and the NASDAQ 40.12%. Meanwhile the MSCI World Index Ex-USA has a total return of 21.57%.

The Barclays U.S. Aggregate Bond Index, however, dropped 2.02%.

“With few exceptions, the largest mutual fund managers continued to grow their asset bases over the course of 2013,” said Cerulli in its latest report.

(Check out: 12 Best & Worst Broker-Dealer 401(k) Plans: BrightScope)

Of course, there were clear winners and losers among the mutual fund families in terms of fund flows in 2013. These results, the consulting group’s research shows, are largely tied to the performance of certain key funds that investors either loved or despised last year.

Larry Fink, CEO and Chairman of BlackRock Financial Management Inc.

10th Best

BLACKROCK (BLK)

BlackRock, owner of the iShares family of ETFs, had inflows of $11.4 billion last year. The latest Morningstar tally shows that fund had roughly $160 billion in total client assets. Its average fund performance was 11% in 2013, and its industry market share stayed steady over the past 12 months at 1.7%, Cerulli reports. 

9th Best

JOHN HANCOCK

John Hancock funds added roughly $11.6 billion in 2013. The group’s overall market share remained at 1.8%, and its funds had an average return of 14.3% last year. The company is part of Manulife Financial and is the main sponsor of the Boston Marathon.

A screenshot of MainStay Investments website.

8th Best

OAKMARK 

Oakmark increased its market share to 2% from 1.8% last year, thanks to fund inflows of $13.6 billion. Its funds had a strong average performance of 17.3% last year. The Oakmark International Fund (OAKIX), for instance, is ranked by Morningstar as the best performer in its fund category, rising more than 17% for the past 12 months and full-year inflows of $12.5 billion.

7th Best

MAINSTAY

MainStay Funds had inflows of $14.2 billion, increasing their market share to 2% from 1.9% in 2013. The MainStay Marketfield Fund (MFLDX) attracted $13.4 billion on net assets. The long/short equity fund had returns of 10.65% last year. As of late January, it is down about 0.6%, putting it well ahead of the S&P 500’s fall of over 3%, Morningstar says.

Lloyd Blankfein, CEO Goldman Sachs. (Photo: AP)

6th Best

GOLDMAN SACHS (GS)

Goldman Sachs funds attracted close to $15 billion in net inflows last year, giving it 3.8% market share vs. 3.6% a year earlier. The Goldman Sachs Strategic Income Fund (GSFAX) brought in over $11.5 billion fund flows. The fund, which has most of its holdings in short-term bonds, has a one-year performance of 4% and a three-year performance of nearly 5%.

5th Best

OPPENHEIMER FUNDS

Oppenheimer Funds, owned by Massachusetts Mutual Life, had fund inflows of over $16 billion in 2013, and its industry market share is close to 4%. Among its most popular products is the Oppenheimer Senior Floating Rate Fund (OOSAX), which had $11 billion of net inflows last year. The fund ticked up nearly 6% last year—nearly 6% ahead of most funds in its Morningstar category. 

Jamie Dimon, CEO of JPMorgan Chase (Photo: AP)

4th Best

MFS FUNDS

MFS Funds attracted some $18 billion on net inflows in 2013. Its current market share is about 4.7%, down from roughly 6% in 2012. Some of its most popular products are the MFS Lifetime 2010 Fund (MFSAX) and the MFS New Discovery Fund (MNDIX), a small-cap growth fund that rose 26.8% in the past 12 months, nearly 5% ahead of the S&P 500, according to Morningstar.

3rd Best

JPMORGAN FUNDS (JPM)

JPMorgan Funds had a stellar 2013, drawing more than $21 billion in net assets. The group now has about a 10% industry market share. The JPMorgan Strategic Income Opportunities Fund (JSOSX) had inflows of over $10 million last year; this fund has about $25 billion in total assets and it jumped more than 2% last year, ahead of most bond-focused investments. Another popular fund in its lineup is the JPMorgan Core Bond (WOBDX).

Bill McNabb, CEO and Chairman of Vanguard.

2nd Best

DIMENSIONAL FUND ADVISORS

Dimensional Fund Advisors, or DFA, had net inflows of nearly $23 billion in 2013. This helped push its market share to 10.6% of the industry from 10.1% a year earlier. Some of its top-performing funds are the DFA Tax-Managed US Marketwide Value (DTMMX), which rose over 40% last year, and the DFA Tax-Managed US Marketwide Value II (DFMVX), which had similarly strong results.

BEST

VANGUARD

Vanguard had 17.5% of industry market share in late 2013, up from 16.9% a year earlier. Its inflows were almost $75 billion, roughly three times that of the second-best fund family (DFA).

Four of its funds were in the top-10 fund list, as ranked by asset flows in 2013. At the top, was the Vanguard Total International Bond Index Fund (BNDX, VTIBX)—with inflows of $18.7 billion. In the number-two slot last year was the Vanguard Total International Stock Index Fund (VXUS, VGTSX) with inflows of $17.9 billion. The third most popular fund was the Vanguard Total Stock Index Fund (VTI, VTSMX) at $17.5 billion.

The Vanguard Total Bond Market II Index Fund (VTBIX) attracted $9.6 billion in net inflows, putting in in ninth place for 2013.

ING Corporate Headquarters in Amsterdam. (Photo: Wikimedia Commons)

10th Worst

DAVIS FUNDS

Davis Funds had outflows of $4.1 billion last year, according to Cerulli. The group is led by Christopher C. Davis, whose family started the firm in 1969. The family traces its roots to Shelby Cullom Davis, an advisor to governors and presidents and father of David Funds founder Shelby M.C. Davis.

9th Worst

ING RETIREMENT FUNDS

ING Retirement Funds experienced outflows of $4.8 billion in 2013. The portfolios can only be bought within variable insurance products and retirement programs. They include target date, target risk, fundamental equity, fixed income and real estate investments.

Jeffrey Gundlach, CEO & CIO of Doubline.

8th Worst

ROYCE FUNDS

Royce Funds’ outflows in 2013 totaled $5.1 billion. Founder Chuck Royce, who started the group in 1972, says the funds use a value-based approach to invest in companies with small market capitalizations.

7th Worst

DOUBLELINE

DoubleLine’s outflows were $5.8 billion last year. The firm, which is led by former TCW executive Jeffry Gundlach, specializes in fixed-income products, which had a tough 2013. It does offer investors U.S. equity products, as well, though Gundlach is bearish on how they will fare this year.

6th Worst

PERMANENT PORTFOLIO 

Permanent Portfolio’s products lost assets of $6.6 billion in 2013. Its flagship fund of the same name (PRPFX) lost 2% before taxes. The fund’s aim is to outperform the Citigroup 3-Month U.S. Treasury Bill Index, and its largest holdings are in gold, silver and U.S. Treasuries.

5th Worse

HARTFORD MUTAL FUNDS

Hartford Mutual Funds saw outflows of $9.3 billion in 2013. According to Morningstar, its average fund performance was 15% last year. The group appointed a new head of marketing a year ago, Jac McLean, formerly with Eaton Vance and MFS. It also expanded its relationship with sub-advisor Wellington Management.

4th Worse

JANUS FUNDS

Janus’ outflows were roughly $11.9 billion last year, about $6.2 billion moved out of the products in the last three months of 2013. Total assets under management were roughly $174 billion as of Dec. 31, up from $166.7 billion at Sept. 30, thanks to market gains. Janus CEO Richard Weil, who has led the firm since early 2010, has said the improving flows and results is "clearly the elephant in the room" as investors remain concerned with performance and portfolio manager changes.

3rd Worst

COLUMBIA FUNDS

Columbia Funds, led by Columbia Management Investment Advisers, lost roughly $12.1 billion in assets last year. The Ameriprise Financial (AMP) unit has seen several top executives depart in recent years, including its head of intermediary distribution and its U.S. asset management president. Its average fund return in 2013 was 13.4%, according to Morningstar.

Mohamed A. El-Erian, CEO and co-CIO of PIMCO (Photo: AP)

2nd Worst

AMERICAN FUNDS

American Funds experienced over $19 billion in outflows in 2013. Its year-end assets were roughly $936 billion, Morningstar says, and its average fund return last year was 15.7%. Two of its funds, however, made the top-10 outflows list recently compiled by Cerulli: the American Fund Growth Fund of America, losing close to $10 billion of client assets to outflows, and the American Fund Bond Fund of America, losing $6.3 billion. 

WORST

PIMCO

The performance of many bond funds run by PIMCO, which just announced that its CEO and co-CIO Mohamed El-Erian will leave his posts in mid-March, moved down sharply last year, when the fund family had outflows of $30.4 billion. Its flagship PIMCO Total Return Fund had close to $40.5 billion in redemptions, while its PIMCO Real Return Fund saw $7.6 billion go out the door. 

-- Check out these stories on ThinkAdvisor:

Sunday, May 24, 2015

Is Nokia a Buy Now?

With shares of Nokia (NYSE:NOK) trading around $8, is NOK an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Nokia operates as a mobile communications company worldwide. It designs and develops mobile products and services; provides digital map information and related location-based content and services for mobile navigation devices, automotive navigation systems and Internet-based mapping applications; and provides mobile- and fixed-network infrastructure, communications, and networks service platforms, as well as professional services and business solutions to operators and service providers. Nokia operates in three segments: Devices & Services, HERE, and Nokia Siemens Networks.

The smartphone maker Nokia may not have officially revealed plans for making android devices, but rumors about the firm's first android based handset, thought to be codenamed Normandy, are buzzing again. Earlier, a report had claimed that the company might launch the Normandy in 2014 and described the Nokia Normandy efforts as full steam ahead. The report also revealed that the firm has been working on a forked or fully tailored version of android.

T = Technicals on the Stock Chart Are Strong

Nokia stock has been trending higher in the last several months. The stock is currently trading near highs for the year and looks set to continue this path. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Nokia is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

NOK

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Nokia options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Nokia options

42.76%

16%

13%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

January Options

Flat

Average

February Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Nokia’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Nokia look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-91.96%

100.00%

13.64%

-87.10%

Revenue Growth (Y-O-Y)

-18.31%

-40.38%

-23.40%

-20.68%

Earnings Reaction

10.37%

-0.24%

-12.93%

-8.92%

Nokia has seen mixed earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Nokia’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Nokia stock done relative to its peers, Apple (NASDAQ:AAPL), BlackBerry (NASDAQ:BBRY), Ericsson (NASDAQ:ERIC), and sector?

Nokia

Apple

BlackBerry

Ericsson

Sector

Year-to-Date Return

98.89%

9.24%

-37.90%

21.40%

23.90%

Nokia has been a relative performance leader, year-to-date.

Conclusion

Nokia develops and delivers communications products to consumers and companies worldwide. The company might launch the Normandy in 2014 and described the Nokia Normandy efforts as full steam ahead. The stock has moved higher in recent months and is currently trading near highs for the year. Over the last four quarters, earnings have been mixed while revenues have been decreasing which has produced conflicting feelings among investors. Relative to its peers and sector, Nokia has been a year-to-date performance leader. Look for Nokia to OUTPERFORM.

Wednesday, May 20, 2015

5 Stocks Insiders Love Right Now

DELAFIELD, Wis. (Stockpickr) – Corporate insiders sell their own companies' stock for a number of reasons.

>>5 Rocket Stocks to Buy for a Santa Claus Rally

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

>>5 Stocks Poised for Breakouts

The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.

At the end of the day, its large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.

>>5 Dividend Stocks Ready to Pay You More in 2014

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look at several stocks that insiders have been doing some big buying in per SEC filings.

Starbucks

One stock that insides are active in here is Starbucks (SBUX), a roaster, marketer and retailer of coffee operating in 60 countries. Insiders are buying this stock into notable strength, since shares are up 45% so far in 2013.

>>4 Big Stocks on Traders' Radars

Starbucks has a market cap of $58 billion and an enterprise value of $56 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 24.47. Its estimated growth rate for this year is 17.3%, and for next year it's pegged at 20%. This is a cash-rich company, since the total cash position on its balance sheet is $3.23 billion and its total debt is $1.30 billion. This stock currently sports a dividend yield of 1.3%.

A director just bought 7,000 shares, or $535,000 worth of stock, at $76.43 per share.

From a technical perspective, SBUX is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has sold off recently with shares falling from its high of $82.37 to its recent low of $75.91 a share. During that selloff, shares of SBUX have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SBUX have started to rebound off that $75.91 low and it's starting to move within range of triggering a near-term breakout trade.

If you're bullish on SBUX, then I would look for long-biased trades as long as this stock is trending above some near-term support at $75.91 and then once breaks out above some near-term overhead resistance levels at $78.50 a share to its 50-day moving average of $79.46 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 4.51 million shares. If that breakout hits soon, then SBUX will set up to re-test or possibly take out its 52-week high at $82.50 a share. Any high-volume move above that level will then give SBUX a chance to tag $85 to $90 a share.

Occidental Petroleum

Another stock that insiders are jumping into here is Occidental Petroleum (OXY), which engages in the exploration and production of oil and gas properties in the United States and internationally. Insiders are buying this stock into solid strength, since shares are up 22% so far in 2013.

>>5 Stocks Rising on Unusual Volume

Occidental Petroleum has a market cap of $75 billion and an enterprise value of $78 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 16.48 and a forward price-to-earnings of 12.93. Its estimated growth rate for this year is -0.60%, and for next year it's pegged at 2.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.77 billion and its total debt is $7.56 billion. This stock currently sports a dividend yield of 2.8%.

A director just bought 5,000 shares, or about $456,000 worth of stock, at $91.32 per share.

From a technical perspective, OXY is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $90.13 to its intraday high of $93.88 a share. During that uptrend, shares of OXY have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of OXY within range of triggering a near-term breakout trade.

If you're in the bull camp on OXY, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $93 or at $92, and then once it breaks out above its 50-day moving average of $95.01 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 3.64 million shares. If that breakout hits soon, then OXY will set up to re-test or possibly take out its next major overhead resistance levels at $97 to its 52-week high at $99.42 a share. Any high-volume move above those levels will then give OXY a chance to trend north of $100 a share.

Centene

Another stock that insiders are in love with here is Centene (CNC), which provides multiline health care programs and services in the U.S. Insiders are buying this stock into solid strength, since shares have spiked sharply higher so far in 2013 by 39%.

>>5 Stocks Under $10 Set to Soar

Centene has a market cap of $3.1 billion and an enterprise value of $2.79 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 27.02 and a forward price-to-earnings of 15.86. Its estimated growth rate for this year is 48.9%, and for next year it's pegged at 27.2%. This is a cash-rich company, since the total cash position on its balance sheet is $863.91 million and its total debt is $520.98 million.

A director just bought 17,600 shares, or about $992,000 worth of stock, at $56.41 per share.

From a technical perspective, CNC is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $54.12 on the downside and $62.13 on the upside. Shares of CNC are now starting to spike higher just above its 200-day moving average of $54.58 a share. That move is quickly pushing shares of CNC within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

If you're bullish on CNC, then I would look for long-biased trades as long as this stock is trending above its 200-day at $54.58 or above more key support at $54.12, and then once it breaks out above some near-term overhead resistance levels at $59.13 to $62.13 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 612,491 shares. If that breakout hits soon, then CNC will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $67.84 a share. Any high-volume move above that level will then give CNC a chance to tag $70 to $75 a share.

Kinder Morgan

One oil and gas player that insiders are snapping up a huge amount of stock in here is Kinder Morgan (KMI), which owns and operates energy transportation and storage assets in the U.S. and Canada. Insiders are buying this stock into modest weakness, since shares are up just 1.1% during the last three months.

>>5 Big Trades for Post-Taper Gains

Kinder Morgan has a market cap of $36 billion and an enterprise value of $71 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 34.37 forward price-to-earnings of 24.22. Its estimated growth rate for this year is 40.8%, and for next year it's pegged at 113%. This is not a cash-rich company, since the total cash position on its balance sheet is $930 million and its total debt is a whopping $36.09 billion. This stock currently sports a dividend yield of 4.7%.

The CEO just bought 828,324 shares, or about $27.64 million worth of stock, at $33.05 to $33.86 per share.

From a technical perspective, KMI is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $32.30 to its intraday high of $35.77 a share. During that uptrend, shares of KMI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of KMI within range of triggering a big breakout trade.

If you're bullish on KMI, then I would look for long-biased trades as long as this stock is trending above its 50-day at $34.82 or above more near-term support at $33, and then once it breaks out above its 200-day at $36.57 a share to more key overhead resistance levels at $36.75 to $37.86 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 5.82 million shares. If that breakout hits soon, then KMI will set up to re-test or possibly take out its next major overhead resistance levels at $39.58 to $40.60, a share or even its 52-week high at $41.49 a share. Any high-volume move above those levels will then give KMI a chance to tag $45 a share.

NuStar Energy

One final name with some big insider buying is NuStar Energy (NS), which is engaged in the terminalling and storage of petroleum products, the transportation of petroleum products and anhydrous ammonia, and asphalt and fuels marketing. Insiders are buying this stock into decent strength, since shares are up 19% so far in 2013.

NuStar Energy has a market cap of $3.9 billion and an enterprise value of $6.3 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 110.61 and a forward price-to-earnings of 27.18. Its estimated growth rate for this year is 46.6, and for next year it's pegged at 73.8%. This is a cash-rich company, since the total cash position on its balance sheet is $24.52 million and its total debt is $2.47 billion. This stock currently sports a dividend yield of 8.8%.

A director just bought 102,100 shares, or about $5 million worth of stock, at $49 per share.

From a technical perspective, NS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months and change, with shares soaring higher from its low of $35.25 to its recent high of $53.69 a share. During that move, shares of NS have been making mostly higher lows and higher highs, which is bullish technical price action.

If you're bullish on NS, then look for long-biased trades as long as this stock is trending above some near-term support at $48.01 or above its 50-day at $46.67 a share, and then once it breaks out above some near-term overhead resistance levels at $51.08 to $53.69 a share and above its 52-week high at $54.95 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 589,697 shares. If that breakout triggers soon, then NS will set up to enter new 52-week-high territory above $54.95, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Biotech Stocks Spiking on Big Volume



>>3 Hot Stocks to Trade (or Not)



>>4 Under-$10 Stocks to Trade for Breakouts

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Tuesday, May 19, 2015

Dutch bank fined $1.1B in Libor investigation

The scandal over manipulation of an international financial benchmark widened Tuesday as authorities fined a Dutch global bank nearly $1.1 billion for rigging the closely-watched rate.

Rabobank became the fifth firm penalized for manipulating Libor — the London Interbank Offered Rate that's used to set the rates on trillions of dollars of mortgages, car loans, student loans and some complex financial derivatives. Libor rates cover multiple currencies worldwide for varying time periods. The bank also rigged rates for Euribor, a similar financial benchmark.

The rates are set each business day by the London-based representatives of global banks based on estimates of what they would expect to pay for short-term loans from each other in various monetary currencies.

In the U.S., the Department of Justice and the Commodity Futures Trading Commission joined the United Kingdom's Financial Conduct Authority and the Dutch public prosecutor's office in imposing the costly settlement penalties against the Utrecht-based bank.

The bank's chairman, Piet Moerland resigned in the wake of the penalties, saying "I wish to send a strong message on behalf of the bank and on behalf of the executive board: we sincerely apologize for, and strongly condemn, this inappropriate behavior." Moerland will be succeeded by Rinus Minderhoud, a member of the bank's supervisory board.

The Department of Justice action involves a deferred-prosecution agreement that requires Rabobank to admit responsibility for its misconduct, maintain cooperation with investigators and upgrade legal compliance programs.

Swiss banking giant UBS, Royal Bank of Scotland, England-based Barclays and ICAP, the world's largest inter-dealer broker, collectively paid earlier paid fines and settlements that totaled approximately $2.6 billion for similar manipulation allegations.

"For years, employees at Rabobank, often working with traders at other banks around the globe, illegally manipulated four different interest rates �! �� Euribor and LIBOR for U.S. dollar, Yen, and Pound Sterling – in the hopes of fraudulently moving the market to generate profits for their traders at the expense of the bank's counterparties," said Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.

According to authorities, Rabobank's rate-rigging took place from at least mid-2005 through early 2011. The bank's traders engaged in hundreds of manipulative acts that moved the financial benchmarks up or down in a bid to help bank traders' financial positions, investigators said. As a result of the manipulation, some borrowers may have paid rates that were too high or too low on their loans.

U.S. investigators said Rabobank traders used emails and electronic chats to carry out the scheme. For instance, a Rabobank yen derivatives trader sent an incriminating Sept. 21, 2007, email message to a bank co-worker responsible for setting the Libor rate on Japanese yen.

"Wehredo you think today's libors are? If you can, I would like 1mth (month) libors higher today," the trader wrote.

"Bookies reckon 1m sets at .85," the co-worker responded.

"I have some fixings in 1 mth so would appreciate if you can put it higher mate," the trader urged.

"No prob mate let me know your level," the co-worker wrote.

"Wud be nice if you could put 0.90% for 1mth cheers," the trader instructed.

At the end of the exchange, the co-worker brushed off concerns that the manipulation might prompt complaining phone calls. "Don't worry mate — there's bigger crooks in the market than us guys!"

According to authorities, Rabobank's one-month yen Libor submission that day was 0.90, an increase of seven basis points from the bank's previous position. In contrast, other banks yen submissions decreased by approximately half a basis point on average.

In addition to the banks snared in the scandal, the worldwide Libor investigation has also generated charges in Great Britain and the U.S. against! Thomas H! ayes, a former Citigroup and UBS yen trader allegedly at the center of the manipulation. Two other traders have also been charged in the continuing investigation.

Wealth Management for Wild Markets

Think of Commonwealth Financial Network, and practice management guru Joni Youngwirth probably comes to mind, or behavioral specialist Kol Birke, or maybe even Wayne Bloom, Red Sox fanatic and CEO of the Waltham, Mass.-based broker-dealer giant.

One other area, wealth management, is of course a critical offering, and one that’s receiving more attention of late.

“Wealth management in general involves a lot of different components, so our wealth management platform involves a lot of different areas; asset management, investment research, annuity research, retirement consulting and advanced planning,” explains vice president Gavin Morrissey, who is responsible for all as well coordinating interdepartmental efforts across the firm’s platform. (He has also contributed to ThinkAdvisor).

Noting the broad yet consultative nature of the group, he says that it tries to be proactive about conditions or events that would affect the client’s portfolio.

“Of course, we’re reactive as well,” he adds. “When our advisors bring us a case, we are comprehensive and collaborative and have the full team working on it and approaching it from different angles, so nothing happens by itself or in a silo.”

The firm claims 1,500 recurring fee advisors, but Morrissey emphasizes that how an advisor (or rep) affiliates with Commonwealth “will not affect how we serve you, recognizing there are some compliance issues, of course.”

Morrissey graduated from Lafayette College with a major in economics before earning a law degree at Thomas Jefferson School of Law in San Diego and his LLM in taxation at the University of San Diego School of Law. With Commonwealth for the past 15 years, he’s worked in various departments, gaining what he says is a broad-based knowledge of the internal workings of a full-service broker-dealer. This allows him to provide a bridge between wealth management concepts and operational implementation.

Of course, wealth management increasingly involves the use of alternative investments. In the wake of the Medical Capital and Provident Royalty scandals that spelled doom for a number of competitors, is he conservative about what he allows on the platform?

“With our alternative investment offerings, I wouldn’t say we’re conservative; a more accurate term would be diligent,” he responds. “We have an entire due diligence team dedicated to ensuring products are appropriate. I know some firms will say ‘absolutely not.’ The issue is that high-net-worth clients, while not naming them as alternative investments, are demanding those types of strategies. Education, of course, has to go along with that to ensure advisors know how they should be used.”

As for current events in Washington, and how he sees them affecting advisors' clients and their portfolios, Morrissey is direct. “If you’re waiting on Congress to do something that makes you scratch your head, you won’t have to wait long and you’ll have plenty to work with,” he quips. “When a political event happens we tell our advisors how we see it working out and how it will affect them and their clients, whether it’s the health care law, the repeal of the Defense of Marriage Act, or anything else.”

He concludes by noting current volatility, and how it might compare with past periods of market turmoil.

“Is it a volatile time in the markets? I don’t know how to answer that. I’m sure you could look back at market history and see plenty of crazy times,” he diplomatically states. “I will say this, Washington seems to have much more of an effect; by that I mean people used to invest based on fundamentals, which is how it should be. No longer; they have to carefully watch what Congress is doing, because it seems to have so much more of an impact.”

---

Check out Gavin Morrissey's ThinkAdvisor contributor page.

Monday, May 18, 2015

Fidelity Favorites: Focused and Leveraged

With a cloud of uncertainty hanging over the equity markets, investors' appetites for certain varieties of stocks have turned on a dime. Below are updates on two of our model portfolio holdings, notes John Bonnanzio of Fidelity Monitor & Insight.

Fidelity Focused Stock (FTQGX:US)

With its sky-high turnover of 248%, its hard to pin down what manager Steven DuFour is doing from one month to the next.

After all, by that measure, about 20% of its shares are traded monthly. (If you're worried about trading costs, the fund's expenses are a competitive 0.93%, and are capped at 1.00%.)

That's all the more remarkable because, true to its name and charter, Focused has a concentrated portfolio of about 50 stocks.

And, if something sounds familiar about that, Focused is a clone of DuFour's other fund called Fifty (which is closed to new investors).

As for what he's been up to, the answer is "much of the usual"—though with a twist. Many high-frequency traders are agnostic about a company's fundamentals, and essentially buy and sell on such technicals as momentum.

But DuFour is actually a so-called GARP investor, meaning he likes growth stocks that trade at a reasonable price. "If a holding reaches its full price or my investment thesis for it changes," he says, "I immediately rotate out."

Case in point: of the fund's top ten holdings at the start of 2013, only two (Google and Biogen) remain. With a performance that runs hot and cold, DuFour has made hay from the energy and technology sectors, which account for only about 20% of assets.

Held in our Unique Opportunities Model, Focused is benchmarked against the S&P 500, which is up 19.8% this year. The volatile Focused has, so far, returned 25.7%.

Fidelity Leveraged Company Stock (FLVCX:US)

Although China's recent economic woes may have been overstated, manager Tom Soviero has done his level best this year to avoid stocks that might be hurt by that juggernaut's seeming slowdown.

And, like us, he's kept his portfolio US-centric, building a case for a renaissance in US manufacturing on cheap American oil and gas and "from a labor market that has seen virtually no wage increases during the past ten years."

How is this thesis playing out in the fund? Most prominently, Tom has made consumer discretionary stocks a double-weight (26%) relative to his benchmark, the S&P 500.

Among his top holdings are Ford (F) and GM (GM), which have benefited from exceptionally low interest rates plus the normal replacement cycle of cars, which had been disrupted by the recession and falling home prices.

Having played cat-and-mouse with the S&P 500 this year (up 19.8%), through the third quarter, Leveraged Co. Stock has gained 24.4%.

Subscribe to Fidelity Monitor & Insight here…

More from MoneyShow.com:

Large Cap Growth: Best of Breed

Low-Risk Value ETF

Floating Rate Favorites