Monday, March 31, 2014

SEC Ripped Over Analyses of Rules by Mercatus Study

“Significant weaknesses” existed in the Securities and Exchange Commission’s economic analysis of several rules it made prior to the SEC’s 2012 updated guidance on ways the agency could beef up its analysis, a working paper released Monday by the Mercatus Center at George Mason University has found.  

Using the Mercatus Regulatory Report Card methodology, senior research fellows Hester Peirce and Jerry Ellig found that “the quality and use of regulatory analysis at the SEC prior to 2012 was significantly inferior to the quality and use of regulatory analysis by executive branch agencies.”

In their working paper, “SEC Regulatory Analysis: A Long Way to Go and a Short Time to Get There,” Peirce and Ellig cite recent requests by Congress that the SEC conduct a more robust economic analysis when it determines whether new rules are in the public interest, as well as federal appeals courts recently vacating several SEC rules due to “inadequate” economic analysis.

The SEC published staff economic analysis guidance in March 2012 similar to the requirements for impact analyses that executive branch agencies are expected to conduct when making major rules.

SEC economists and the agency’s general counsel jointly issued the 2012 economic analysis guidance after the agency “kept losing in court because of its poor economic analysis,” Peirce told ThinkAdvisor in an email.

“The SEC’s decision to publish new economic analysis guidance was a necessary and appropriate response to the significant flaws” that existed in rulemaking prior to 2012, Ellig and Peirce say.

Peirce and Ellig used the Mercatus Scorecard — a standardized scoring system for executive agency rulemaking that measures openness, analysis and use of economic analysis — to analyze seven rules issued from each SEC division. They intended “to ensure that we captured a broad view of rulemaking issues within the SEC’s regulatory jurisdiction” and to offer “a useful cross section of significant SEC rulemaking.”

The rules the senior Mercatus fellows assessed included the creation of the SEC’s Office of the Whistleblower, the requirement that private fund advisors file form PF with the agency, the switching of advisors under Dodd-Frank from federal to state registration, and the net worth standard for accredited investors.

Peirce and Ellig concluded that the SEC’s rulemakings “read more like justifications of the final rule than careful analyses of the underlying problems and the various ways that those problems could be addressed.”

The analyses failed, they said, “beyond sporadic references, to take advantage of the academic literature that would help them analyze the rulemaking. The analyses often deferred to the statute rather than asking fundamental questions about the need for it and what its objectives would be. In designing many of these rules, the SEC did not appear to have a clear picture of what it was trying to achieve.”

The pre-2012 SEC analyses also “often ignored important alternatives that should be obvious to an expert agency,” as well as “significant costs and asserted significant benefits without providing evidence that the regulation was likely to achieve them,” the paper states.

However, both senior fellows express optimism that the SEC’s economic analysis “will improve” as the agency’s “retooled regulatory analysis takes hold and the SEC applies it more.”

Because the SEC has only promulgated “a handful of major rules” with the full benefit of the 2012 guidance, Peirce and Ellig write, “It is too early to conclude whether the analysis has improved.” /* .premium-promo { border: 1px solid #ddd; padding: 10px; margin: 0 10px 10px 0; width: 200px; float: left; } .premium-promo li, .premium-promo ul { list-style-type: none; margin: 0; padding: 0; } .premium-promo li { margin: 0 0 10px; padding: 0 0 10px; border-bottom: 1px dotted #ddd; } .premium-promo h3 { text-transform: uppercase; font-size: 11px; } .premium-promo h4 { font-size: 16px; } .premium-promo a { text-decoration: none !important; } .premium-promo .btn { background: #0069a1; border-radius: 4px; display: inline-block; padding: 5px 10px; clear: both; color: #fff; font-weight: bold; } .premium-promo .btn:hover { background: #034c92; } */ Indeed, SEC Commissioner Daniel Gallagher said recently that the economic analysis the SEC is currently performing on its potential rule to put brokers under a fiduciary mandate will “help the agency to determine whether we need” to move forward.

Peirce and Ellig conclude that while a “more comprehensive economic analysis may be more costly to the agency in the short run,…in the long run [it] may significantly increase the benefits or reduce the costs of the regulations adopted.”

The role of economic analysis in SEC rulemaking could also "reveal best practices from which other agencies could learn or highlight significant pitfalls they should avoid in economic analysis of their own rules," the two senior fellows say. What's more, the SEC’s "interpretation of its statutory rulemaking obligations can provide insights for Congress as it considers various regulatory reform bills designed to foster the use of economic analysis in agency decision making."

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Sunday, March 30, 2014

Washington State Gives Boeing What it Wants, Now It’s Up to the Union

Claiming that the deal will guarantee "tens of thousands" of jobs for the state, Washington's legislature has approved an $8.7 billion package of incentives for The Boeing Co. (NYSE: BA) to ensure that the company builds its new 777X aircraft on the shores of Puget Sound. An additional package to improve the area's transportation infrastructure worth about $10 billion is scheduled to be considered by the legislature later this month.

Boeing has moved its corporate headquarters out of Seattle, to Chicago, and opened a non-union manufacturing line for its 787 Dreamliner in North Carolina. The state of Washington wants to stop the bleeding and is willing to take some hefty hits to its tax collections in order to do so.

The 787 plant in North Carolina is Boeing's first non-union shop and both the union and the state of Washington want it to be the last. The International Association of Machinists and Aerospace Workers (IAM) leadership has negotiated a new labor contract with Boeing that would take effect in 2016 and that cuts wage increases for its members, reduces health care benefits, and lowers the company's contributions to its defined benefit retirement plan.

Top 5 Low Price Companies To Own In Right Now

The IAM membership is scheduled to vote on the proposed contract this Wednesday. Union members are unhappy with the proposal, but a company spokesman has already threatened to locate the 777X plant outside the state if the proposed contract is rejected.

The state legislature and the governor want to keep Boeing's jobs in the state and the $8.7 billion package will certainly help. Union members will be under serious pressure to approve the contract or they'll get the blame if more than 30,000 jobs migrate to the southeast.

Saturday, March 29, 2014

One-sentence financial rules

There are 56,956 personal finance books on Amazon.com. In aggregate, they contain more than 3 billion words. This seems absurd, because 99% of personal finance can be summarized in nine words: Work a lot, spend a little, invest the difference. Master that, and the other 2.999 billion words are filler.

The most important finance topics don't require details. Most can be, and should be, summarized in a sentence or two.

Here are some I've learned.

1. Dollar-cost average for your entire life and you'll beat almost everyone who doesn't.

2. Only invest in products and companies you can explain to a six-year old.

3. Every five to seven years, people forget that recessions occur every five to seven years.

4. You're twice as biased as you think you are (four times if you disagree with that statement).

5. Read more books and fewer articles.

6. Read more history and fewer forecasts.

7. It's strange that you go to the doctor once a year, but check your investments once a day.

8. Be careful when reading about how stupid investors can be and not realize you're reading about yourself.

9. Your circle of competence is probably 90% smaller than you think it is.

10. You're only diversified when some of your investments perform worse than others.

11. Big risks will always be disregarded; small risks always blown out of proportion.

12. Check your brokerage account as infrequently as it takes to prevent rash decisions.

13. When in doubt, choose the investment with the lowest fee.

14. Emotional intelligence is more important than book intelligence.

15. The more you learn about the economy, the more you realize you have no idea what's going on.

16. Start saving for college before your kid is born, and start saving for your retirement before you graduate college. You'll feel silly when you start and like a genius when you finish.

17. The most powerful way to grow your money is learning to live with less, since you ha! ve complete control over it.

18. Singer Rihanna nearly went broke and fired her financial advisor, who described her situation well: "Was it really necessary to tell her that if you spend money on things, you will end up with the things and not the money?"

19. You have no obligation to have an opinion about anything.

20. You have a strict obligation to not have an opinion about things you don't understand.

21. No one attending private school should be on student loans. Most should utilize community and state schools, which provide just as good an education for a fraction of the price.

22. You shouldn't feel strongly about any investment you haven't spent at least a week thinking about.

23. Holding 60% of your assets in stocks and 40% in bonds isn't perfect for everyone; but I can think of a thousand worse strategies.

24. Respect the role luck has played on some of your role models.

25. Don't take out $100,000 in student loans for anything other than medical school (if that).

26. Change your mind as often as the facts change.

27. Ignore people who refuse to change theirs when the facts change.

28. Read last year's market predictions and you'll never again take this year's predictions seriously.

29. Warren Buffett's folksy talk misleads people into thinking that what he's accomplished is easy. It's not.

30. Sleep on every investment decision for a week, then run it by a trusted friend before acting.

31. Two things you can do to make yourself a better investor are increase the amount of time you're investing for and the humility you put into your ideas.

32. Just as you should dress appropriately for your age, you should spend appropriately for your income, and not a penny more.

33. Warren Buffett has the best explanation of dumb risk-taking: "To make money they didn't have and didn't need, they risked what they did have and did need. And that's foolish. It is just plain foolish."

34. You can probably affor! d not to ! be a great investor -- you probably can't afford to be a bad one.

35. You're twice as gullible as you think you are.

36. Learn more from your bad investments than your good ones.

37. Judge investors by the quality of their arguments, not the performance of their last trade.

38. You can realistically afford probably half the home the mortgage broker approves you for.

39. Teach your kids about money before they're old enough to earn their own.

40. Admit when you are wrong.

41. Imagine how much stuff you'd have to make up if you were forced to talk 24/7. Remember this when watching financial news on TV.

42. There is, and always will be, more money to be made providing investment advice than receiving it.

43. Assume the worst, hope for the best, accept reality.

44. Save for your own retirement; assume Social Security and private pensions won't be around (even though they probably will).

45. Annuities: A product mixing the complexity of high finance with the sales tactics of used-car salesman has an entirely predictable outcome.

46. The correlation between confidence and future regret is incredibly high.

47. During the last 100 years, there have been more 10% market pullbacks than Christmases. Everyone knows Christmas will come; think of volatility the same way.

48. Don't attempt to keep up with the Joneses without realizing the Joneses aren't any happier than you are.

49. Predictions, opinions, and forecasts should be discounted by the number of times the person making them is on TV each week.

50. Not taking advantage of an employer match on your 401(k) is no different than declining a raise.

51. Don't let Washington sway your investment decisions. Congress has been a dysfunctional swamp of disappointment since 1789, and stocks have done well ever since.

52. To quote Larry Summers: "A good rule of thumb for many things in life holds that things take longer to happen than you think they will, and then ! happen fa! ster than you thought they could."

53. Another Larry Summers gem: "THERE ARE IDIOTS. Look around."

54. "Invest in what you know" is dangerously simplified.

55. Quit day trading, and donate your money to charity instead. Same financial result for you, and a better outcome for society.

56. Most people's biggest expense is interest, which comes from living beyond your means, and buying things they think will impress others, which comes from insecurity. Avoid these two and you'll grow richer than most of your peers.

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57. Reaching for yield to increase your income is often like sticking your hands in a fire to warm them up -- good in theory, disastrous in practice.

58. Your devotion to a political party or economic philosophy is directly proportional to your tendency to think irrationally about how politics affects your investments.

59. Most people need a financial advisor, but everyone needs a financial counselor, or someone to talk them off the ledge before making a dumb decision.

60. There's a strong negative correlation between flaunting money and being rich.

61. Investors were probably better informed 20 years ago when there was 90% less financial news.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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Friday, March 28, 2014

Top Industrial Disributor Stocks To Invest In Right Now

With shares of Walgreen Co. (NYSE:WAG) trading at around $49.51, is WAG an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock�� Movement

Walgreen was rated on OUTPERFORM here on March 12. It has had a good run since that time, but have circumstances changed? There will be a lot of information below, but perhaps the most important fact is that 75 percent of the U.S. population lives within 3 miles of a Walgreens. One of the biggest selling points that most people already know about is the rise in generics, which means improved margins. Getting back on board with Express Scripts Holding Company (NASDAQ:ESRX) was also a big move. In addition to that, Walgreen inked a 10-year deal with AmerisourceBergen Corporation (NYSE:ABC). This will increase Walgreen�� potential in brand and generic drugs on a global scale. Let�� take a look at some other positives for Walgreen, as well as some negatives.

Top Industrial Disributor Stocks To Invest In Right Now: Citigroup Inc.(C)

Citigroup, Inc., a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment operates as a global bank for businesses and consumers with two primary businesses, Regional Consumer Banking and Institutional Clients Group. The Regional Consumer Banking business provides traditional banking services, including retail banking, and branded cards in North America, Asia, Latin America, Europe, the Middle East, and Africa. The Institutional Clients Group business provides securities and banking services comprising investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking; and transaction services consisting of treasury and trade solutions, and securiti es and fund services. The Citi Holdings segment operates Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool businesses. The Brokerage and Asset Management Business, through its 49% stake in Morgan Stanley Smith Barney joint venture and Nikko Cordial Securities, offers retail brokerage and asset management services. The Local Consumer Lending business provides residential mortgage loans, retail partner card loans, personal loans, commercial real estate, and other consumer loans, as well as western European cards and retail banking services. The Special Asset Pool business is a portfolio of securities, loans, and other assets. Citigroup Inc. has approximately 200 million customer accounts and operates in approximately 160 countries. The company was founded in 1812 and is based in New York, New York.

Advisors' Opinion:
  • [By Dan Caplinger]

    Why you need to know
    The reason that credit-reporting bureaus need to improve credit score transparency is that in some cases, every point counts. Consider:

    In the mortgage loan arena, big lenders Bank of America (NYSE: BAC  ) , Citigroup (NYSE: C  ) , and Wells Fargo (NYSE: WFC  ) have had to rein in their credit standards substantially in the aftermath of the financial crisis, as bank regulators want to ensure that the events that brought the financial system to the brink of collapse never repeat. As a result, single points that push you above or below key credit-score thresholds are instrumental in determining whether you'll be able to buy the home you want and get financing at a fair rate. In other areas, it's even less clear what your credit score means. For instance, in employment situations, just coming up with a baseline threshold is itself a matter of subjective judgment. Without the details on exactly where you stand on your score, you might never know that you didn't get a job because of your credit history.

    Perhaps most important, keeping score calculations secret and relying on the credit-reporting bureaus to act as guardians of credit ratings puts a huge amount of responsibility on their shoulders. With many documented cases of erroneous credit-history information being used to calculate these scores, it's naive to take on faith that the resulting scores are correct -- yet there's currently no way to see exactly how an erroneous piece of information actually has a direct impact on your credit score.

  • [By Amanda Alix]

    It's a red-number day for the stock market so far this morning, as nerves rubbed raw by Fed Chief Ben Bernanke's comments last week continue to roil markets. Financials are down overall, as is the Dow and the S&P 500, with Citigroup (NYSE: C  ) and Bank of America (NYSE: BAC  ) leading the big-bank plunge into the depths.

  • [By Amanda Alix]

    Many banks, particularly large institutions like Bank of America (NYSE: BAC  ) and Citigroup (NYSE: C  ) , have been on a cost-cutting binge�for the last year or so, and one casualty has been bank branches. Indeed, as banks work to segue customers into online and mobile banking, many locations have been deemed an unnecessary drain on company resources. In 2012 alone, all U.S. banks closed nearly 2,300 branches, while opening only half that number.

Top Industrial Disributor Stocks To Invest In Right Now: Phoenix New Media Ltd (FENG)

Phoenix New Media Limited (PNM), incorporated on November 22, 2007, is a new media company providing content on an integrated platform across Internet, mobile and television (TV) channels in China. PNM enables consumers to access professional news and other content and share user-generated content (UGC), on the Internet and through their mobile devices. The Company also transmits its UGC and in-house produced content to TV viewers primarily through Phoenix TV. Its platform includes its ifeng.com channel, consisting of its ifeng.com Website, its video channel, consisting of its dedicated video vertical and video services and applications, and its mobile channel, including its mobile Internet Website and mobile applications.

PNM offers a variety of paid services across all of its channels, including mobile Internet and value-added services (MIVAS), which includes its digital reading services, mobile game services and wireless value-added services (WVAS), such as messaging-based services (short message service and multi-media messaging services); video value-added services (video VAS), which consists of its online subscription and pay-per-view video services, its mobile subscription and pay-per-view video services, and video content sales, and Internet value-added services (Internet VAS). The Company primarily generates its paid service revenues from its WVAS, digital reading services and mobile video subscription and pay-per-view services by providing content to mobile device users and collecting revenue shares or fixed fees for its content services from the relevant mobile operator. The Company also earns paid service revenues in the form of fixed fees from China Mobile Communications Corporation (China Mobile), for its digital reading services.

Video Channel

The Company�� video channel is consists of its online video vertical at v.ifeng.com; mobile video subscription and pay-per-view services and mobile video application, video content sales business. The Compa! ny offers its video VAS paid services through its video channel, which include its online subscription and pay-per-view services, its mobile subscription and pay-per-view video services and video content sales. The Company�� v.ifeng.com vertical offers four categories of video products and services, namely free online video on demand (VOD), live Phoenix TV broadcasts, subscription online video service and pay-per-view online video service. It organizes and presents video content, supplemented by text, images, user surveys and comment postings on its v.ifeng.com vertical.

The VODs typically consist of short clips of up to five minutes of news programs, interviews, documentaries and other programs. Its VOD content is easily searchable on its Website and is organized into over 10 verticals of v.ifeng.com for easy browsing, including news, finance, culture, sports, history, entertainment, news commentary, military affairs, society, biographies history, entertainment, movies and TV, style, vblog, VIP channel, Phoenix TV, live broadcast, and original videos.It offers live streams of Phoenix TV's flagship channels, the Phoenix Chinese Channel and the Phoenix InfoNews Channel. Its online subscription video service enables users to watch advertisement-free premium content, such as feature-length documentaries and exclusive online Phoenix TV programming.

The Company�� online pay-per-view video service enables users to watch advertisement-free premium videos by purchasing access to particular videos on vip.v.ifeng.com. Like its online subscription videos, its pay-per-view videos include longer videos of up to 20 minutes in length. The Company offers video content through the mobile video platforms of telecom operators, primarily China Mobile and China Telecom. Mobile users who access its videos on China Mobile's platform either by subscription or on a pay-per-view basis pay a fixed fee.

Mobile Channel

The Company�� mobile channel consists of its 3g.ifeng! .com mobi! le Website and its MIVAS. The Company offers MIVAS paid services through its video channel, which include its digital reading services, mobile game services and WVAS. Users can access its mobile content and MIVAS directly from their mobile phones on its mobile Internet Website, 3g.ifeng.com; from a mobile operator's platform; by downloading its applications, and by opening a pre-installed application on their mobile devices. The Company provides and markets its MIVAS through cooperation with mobile operators, as well as various mobile device manufacturers, Internet sites, technology and media companies.

The Company�� 3g.ifeng.com Website is a modified version of its ifeng.com site reformatted for use on mobile devices and tailored to the preferences of its mobile users. 3g.ifeng.com allows its users to access ifeng.com and v.ifeng.com content. Similar to ifeng.com, its 3g.ifeng.com features an array of interest-based and interactive verticals, including news, stocks, micro-blog, user surveys, and digital reading, as well as a mobile video site for watching free mobile VOD.

The Company competes with NetEase.com, Inc., Sina Corporation, Sohu.com Inc., Tencent Technology Limited, Youku Tudou Inc., iqiyi.com, Sohu video, QQ video, PPlive.com, PPS.com, China Network Television, 3G Menhu, A8.com, and Kong Zhong Corporation, Wenxuecity.com, Duowei News and Yahoo!.

Advisors' Opinion:
  • [By Seth Jayson]

    Phoenix New Media (NYSE: FENG  ) reported earnings on May 14. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q1), Phoenix New Media beat slightly on revenues and beat expectations on earnings per share.

  • [By Belinda Cao]

    Phoenix New Media Ltd. (FENG), a TV and Internet news outlet, gained 11 percent last week to $11.66 in New York, bringing its surge this year to 220 percent.

  • [By Belinda Cao]

    E-Commerce China Dangdang Inc. (DANG), the nation�� biggest online book retailer, rose 8.5 percent to $11.70, the highest price since Aug. 13. YY Inc. (YY), owner of a social entertainment website, rallied 4.9 percent to $50.47, the highest level since its listing in November. TV and Internet news outlet Phoenix New Media Ltd. (FENG) added 4.5 percent to a two-year high of $12.23.

Best Mid Cap Stocks To Watch For 2014: Fresnillo PLC (FRES)

Fresnillo plc is a silver and gold mining company. The Company, along with its subsidiaries, is engaged in the mining and beneficiation of non-ferrous minerals, and the sale of related production. The primary contents of this production include silver, gold, lead and zinc. The Company has six operating mines: the Fresnillo mine, located in the State of Zacatecas, which is primary silver mine; the Saucito mine, located in the State of Zacatecas, an underground silver mine; the Cienega mine, located in the State of Durango, an underground gold mine, including the San Ramon satellite mine; the Herradura mine, located in the State of Sonora, an open pit gold mine; the Soledad-Dipolos mine, located in the State of Sonora, an open pit gold mine, and the Noche Buena mine, located in State of Sonora, an open pit gold mine. Advisors' Opinion:
  • [By Alexis Xydias]

    The FTSE All-Share Mining Index rose 3 percent. Randgold, a producer of the metal in Africa, advanced 6.8 percent to 4,722 pence. Fresnillo Plc (FRES), which operates silver and gold mines in Mexico, rallied 8.2 percent to 1,035 pence.

  • [By Inyoung Hwang]

    Fresnillo Plc (FRES) and Polymetal International Plc sank at least 7 percent to lead declines in the Stoxx 600 after the precious-metals producers were not included in the NYSE Arca Gold Miners Index. Fresnillo tumbled 13 percent to 1,045 pence. Polymetal plunged 7.1 percent to 659.5 pence. African Barrick Gold Plc (ABG) also fell, losing 12 percent to 143.9 pence.

Top Industrial Disributor Stocks To Invest In Right Now: Ishares Trust S & P Global (IXC)

iShares S&P Global Energy Sector Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Standard & Poor�� Global Energy Sector Index (the Index). The Index is a subset of the Standard & Poor�� Global 1200 Index, and measures the performance of companies that Standard & Poor�� deems to be part of the energy sector. Component companies in the Index include those engaged in oil equipment and services, oil exploration and production, and oil refineries.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund�� investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:
  • [By Louis Navellier]

    The ishares Dow Jones U.S. Energy Sector Fund (IYE) tracks the performance of 99 major energy stocks in the U.S. IYE is actually up 20% for the year, but it has been trending downward over the past month. Meanwhile, the ishares S&P Global Energy Sector Fund (IXC) is up just 10% so far for the year. This fund, which also contains 99 holdings from all over the world, provides perhaps the best view of how the energy sector is faring on the global level. It has also fallen in the past month.

  • [By Aaron Levitt]

    While the previously mentioned XLE is a great fund, the iShares Global Energy (IXC) may be a better bet. The key is the fund�� global exposure. The exchange-traded fund (ETF) tracks 91 different oil stocks — with about 48% of its exposure to those energy firms located outside the United States.

  • [By Russ Koesterich]

    The list above is based on my team's analysis of whether sector valuations appropriately price in each sector's expected earnings growth, profitability and risk. Based on these factors, I have a preference for the energy and informational technology sectors, accessible through the iShares S&P Global Energy Sector Fund (IXC) and the iShares S&P Global Technology Sector Fund (IXN). And as I write in my new Investment Directions commentary piece, if it turns out that we do see more investors rotating out of defensives and into more attractively priced cyclicals, these two sectors are poised to especially benefit.

Top Industrial Disributor Stocks To Invest In Right Now: OCI Resources LP (OCIR)

Oci Resources LP, incorporated on April 22, 2013, is a limited partnership formed by OCI Holdings to operate the trona ore mining and soda ash production business of OCI Wyoming. The Company owns a controlling 40.98% general partner interest and 10.02% limited partner interest in OCI Wyoming, serving a global market from its facility in the Green River Basin of Wyoming. As of March 31, 2013, OCI Wyoming had proven and probable reserves of approximately 267.1 million short tons of trona, which is equivalent to 145.5 million short tons of soda ash. During the year ended December 31, 2012, OCI Wyoming mined approximately 3.87 million short tons of trona and produced approximately 2.45 million short tons of soda ash.

Trona, a naturally occurring soft mineral, is also known as sodium sesquicarbonate and consists primarily of sodium carbonate, or soda ash, sodium bicarbonate and water. The Company process trona ore into soda ash, which is an essential raw material in flat glass, container glass, detergents, chemicals, paper and other consumer and industrial products. The majority of the world's trona reserves are located in the Green River Basin.

Advisors' Opinion:
  • [By Robert Rapier]

    OCI Resources (NYSE: OCIR) is a subsidiary of Atlanta-based OCI Chemical, which operates the trona ore mining and soda ash production business of one of the largest and lowest cost natural soda ash producers in the world. The partnership debuted on Sept. 13 and had the worst opening day of any MLP IPO since 2010. On the first day of trading, units closed down more than 5 percent. They have since recovered, and now trade 6 percent above the IPO price.  Beginning with the quarter ending Dec. 31, 2013, OCIR intends to distribute at least the minimum quarterly distribution of $0.5000 per unit, or $2 on an annualized basis. At the recent unit closing price of $19.91, this corresponds to a prospective annual yield of 10 percent.

Top Industrial Disributor Stocks To Invest In Right Now: Delcath Systems Inc.(DCTH)

Delcath Systems, Inc., a development stage company, operates as a specialty pharmaceutical and medical device company. It focuses on cancers in the liver. The company involves in the development and clinical study of the Delcath chemosaturation system. Its clinical trial include a Phase III multi-center study for patients with unresectable metastatic ocular or cutaneous melanoma exclusively or predominantly in the liver; and a multi-arm Phase II clinical trial of the Delcath chemosaturation system with melphalan in patients with primary and metastatic liver cancer, which comprise neuroendocrine tumors, hepatocellular carcinoma, ocular or cutaneous melanoma, and metastatic adenocarcinoma. Delcath Systems, Inc. was founded in 1988 and is based in New York, New York.

Advisors' Opinion:
  • [By Monica Gerson]

    Delcath Systems (NASDAQ: DCTH) is expected to post a Q4 loss at $0.05 per share on revenue of $100.00 thousand.

    Emerald Oil (NYSE: EOX) is projected to post a Q4 loss at $0.02 per share on revenue of $18.04 million.

  • [By John Udovich]

    Biotech in general has been one of the market�� hottest sectors this year thanks to plenty of mostly good news�along with�new IPOs while small cap biotech stocks Delcath Systems (NASDAQ: DCTH), ZIOPHARM Oncology Inc (NASDAQ: ZIOP), Recro Pharma (NASDAQ: REPH), TetraLogic Pharmaceuticals (NASDAQ: TLOG)�and TNI BioTech (OTCMKTS: TNIB) have also produced their share of news�this week or in recent weeks. Just consider the following:

Thursday, March 27, 2014

A Cautious, Reluctant Bull

I hesitate to claim that Newton's Law—A body in motion will continue in motion, unless acted upon by an outside force—applies to the stock market; yet, in almost all our studies of past bear markets or crashes, there were causal factors that triggered the downturn, suggests Jim Stack in InvesTech Market Analyst.

Over the past 50 years, the most common trigger was a reversal or tightening in monetary policy. If you overlay a long-term graph of the 90-day T-bill yield, with the S&P 500 (SPX), this relationship becomes clearly visible.

One of the problems, however, is the variability in tightening, or interest rate increases, before trouble started in the stock market. Thus, the reason for watching as many reliable warning flags as possible.

It's only natural that the size of last year's gain would make one more nervous about the prospects for 2014. However, statistically speaking, the bearish odds did not increase simply because last year was a great year in the market.

Since 1928, there have been 18 years in which the S&P 500 increased over 25% (including 2013). Almost two-thirds of the subsequent years (61%) saw the market continue to rise the following year, with over twice as many double-digit gains as double-digit losses.

That doesn't imply we should expect double-digit gains this year, yet it allows us to remain cautiously optimistic in the absence of bearish evidence.

In addition, breadth rebounded so sharply last month that it registered not one, but two new "breadth thrusts." A "breadth thrust" takes place when the ten-day total of advancing stocks outpaces declining stocks by a wide margin.

This kind of upward momentum is often seen near the beginning of a new bull market or at the start of a new bull market leg upward.

We found that, since 1950, there have been only four instances when the S&P 500 was down more than 4% six months after a thrust was first observed. Also, there was only one double-digit loss (-10%), which occurred during the 1973-74 bear market.

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So, bottom line, we are encouraged about this bull market's prospects over the balance of this year. With the margin debt and small-cap excesses described inside, I'm reluctant to speculate how long this bull market will last.

However, I don't mind being a "cautious, reluctant bull," as long as we're prepared to quickly adjust our allocation level downward, if warning flags start to increase.

Subscribe to InvesTech Market Analyst here…

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Tuesday, March 25, 2014

Gilead Following Multiple Paths Toward HIV “Functional Cure”

The first researchers who tried to stop the AIDS epidemic in the 1980s were faced with a terrifying virus that invaded key cells of the immune system, forced them to make many copies of itself, and burst the cells open in the process, leaving the human host defenseless against an onslaught of HIV and other infections.

Looking back on that drive to find the first HIV drugs, the task seems relatively simple to Romas Geleziunas—at least, compared to the problem he's tackling now.

Geleziunas, director of clinical virology at Foster City, CA-based Gilead Sciences  (NASDAQ: GILD  ) is trying to thwart a second, more insidious way the HIV virus invades cells. Early in the course of infection, the virus inserts itself into the genome of immune system cells, but without either copying itself or killing the cell. The cell and the virus then wait together in a kind of slumber. But they can later awaken to unleash a new generation of infectious virus particles.

This reservoir of latently infected cells is now seen as the barrier standing in the way of a longed-for cure that could free HIV-positive individuals from a lifetime of taking the antiretroviral drugs developed by Gilead and other companies since the late 1980s. Those drugs protect uninfected cells, drive down blood levels of the virus, and stave off full-blown AIDS. But they don't eliminate the HIV reservoir, which appears to be complex and pretty mysterious.

"We don't fully understand what are the reservoirs that harbor HIV," Geleziunas says. "That makes the mission very, very tough."

Gilead, the world's largest maker of antiretroviral drugs, began its search for ways to eradicate the HIV virus from the body about five years ago, Geleziunas says. He's ready for the natural question that follows: Why would Gilead push hard to eliminate the need for its own HIV drugs, which bring in about $9 billion in annual revenue, and which can change a deadly disease into a chronic condition managed by a single daily pill?

Geleziunas says the answer is simple: the company knows that patients would rather be released from the need for any HIV medicines. Gilead is on the hunt for next-generation HIV therapies it can commercialize that would wipe out the virus—hopefully for good—after a limited time on treatment.  "We were one of the first companies into the field," he says.

The company doesn't use the freighted word "cure" to describe its goal. "We prefer to say we want to create a state of HIV remission that could be controlled without drugs," Geleziunas says.

Gilead has been exploring a range of different strategies to block the HIV virus from surging back after treatment, and has been lining up research partnerships that include other drug developers, academic researchers, and government agencies.

"We've created a hub for clinical and basic research," he says.

Gilead's efforts are part of a larger research mobilization that has been galvanized by recent reports about a few HIV-positive patients who have actually been able to stop their drug regimens—though they did this after treatments that might be difficult to extend to large numbers of patients. For example, the HIV-positive "Berlin patient," whose case was reported in March 2011 in the scientific journal Blood by a research team at Charite´-University Medicine Berlin, in Berlin Germany, received a bone marrow transplant for his leukemia from a donor who happened to be one of the rare individuals with a natural genetic immunity to HIV.

Even so, scientists pursuing a "functional cure" for HIV have been emboldened by the Berlin patient and other cases, says Dr. Warner Greene, director of the Gladstone Institute of Virology and Immunology in San Francisco.

"The anecdotal cases suggest that we're not tilting at windmills," says Greene, a top HIV expert.

Greene sees an urgent need for a cure. Patients taking long-term antiretroviral drug regimens are still vulnerable to the premature onset of diseases of aging. Across the globe, about 35 million people are infected with HIV. (About the same number have died.) The cost of maintaining patients on lifetime therapy is a significant burden even for developed countries, while the drugs are inaccessible to millions of infected people in Africa and other regions, Greene says.

"Sixteen million people are not receiving it, and they're dying," he says.

Greene points to gene therapy as one of the major strategies being pursued to achieve a functional cure. Richmond, CA-based Sangamo Biosciences recently showed progress in its drive to modify the genes of HIV- positive patients and replicate the immunity that the "Berlin patient" acquired from his bone marrow donor.

Greene says he values Sangamo's work, but he expects that most of the world's HIV-positive population won't be able to pay for Sangamo's multi-step procedure to modify the genes in blood cells of individual patients. To achieve global eradication of HIV, researchers will have to develop simpler treatments that can be scaled up for mass populations, Greene says.

That may mean devising a drug, or drug combination, that depletes the HIV reservoir in latently infected cells. And the task doesn't look easy so far, Greene says.

"It's a bigger, nastier problem than we thought," he says.

Scientists had optimistically predicted in the mid-1990s that the residual HIV virus would simply die out about two to three years after patients began taking effective antiretroviral drugs, Greene says. Those drugs prevent the virus from converting new host cells into virus-producing factories. Without a host, viral particles can exist for only a short time in the blood plasma, he says.

But starting in 1995, researchers discovered the presence of the latently infected cells called resting memory CD4+ T cells, a long-lived and self-renewing cell population that is also more numerous than scientists had expected, Greene said in an October review article in the journal Cell. One researcher estimated that it would take 73 years of antiretroviral therapy to exhaust the latent HIV reservoir.

If patients go off their HIV medicines, some of the reservoir cells switch into active mode and begin cranking out virus particles, which then infect a new round of unprotected blood cells.

But researchers are now wondering: What if the reservoir cells could be forced to switch into active mode while patients were still taking their antiretroviral drugs? Would the latently infected cells then die—as most blood cells do when they're forced to manufacture copies of the HIV virus? If so, the HIV reservoir might be exhausted without harming the patient. Greene and Gilead are both part of scientific consortia that are looking for drugs that can safely "shock" the reservoir cells into a reactivated state.

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Gilead found such a drug, romidepsin (Istodax), by screening its own library of compounds, as well as all FDA-approved drugs. Romidepsin is a Celgene drug approved to treat a type of skin cancer, cutaneous T-cell lymphoma. But it can also activate cells latently infected with HIV.

Romidepsin will soon be used as a "test of concept" drug in a clinical trial sponsored by the National Institute of Allergy and Infectious Diseases (NIAID) and supported by Gilead, Celgene, and other partners, Geleziunas says. Investigators will dose HIV- positive participants with romidepsin while maintaining them on their antiretroviral medicines. Using a variety of different tests, the investigators will then measure how much of the HIV reservoir has been depleted.

Geleziunas doesn't expect this trial to yield a treatment, but the procedures developed could one day validate a future therapy. Romidepsin isn't the most powerful activator of latently infected cells—in lab studies, certain immune system stimulants are more potent. But romidepsin was chosen for the trial because it has a known safety profile as a drug already approved to treat human beings, Geleziunas says.

It's possible that several rounds of activation over time will be required to induce all the latently infected cells to transform into a mode that makes them more vulnerable to cell death than they are in their resting state, Geleziunas says. A multiple dose study with romidepsin is being planned.

But if activation alone is not enough to kill all the latently infected cells, another agent will have to be added to finish them off, Greene says. He estimates that the reservoir contains about a million cells.

"You've got to get every one of them," Greene says. This "shock and kill" tactic is being pursued by a research consortium Greene belongs to.

Again, any clinical trial of this tactic would be conducted with participants who continued taking their antiretroviral drugs. Trial investigators would be relying on these drugs to protect uninfected cells from the temporary surge of new HIV virus produced by the activation of latently infected cells.

Gilead already has a line on a drug that might play the "kill" role in a "shock and kill" regimen against the HIV cell reservoir, Geleziunas says. In preclinical research, the company has been studying the effects of an experimental immune modulation drug against viral infections. This agent helps mobilize two types of immune system cells that might destroy reactivated cells that have been harboring the HIV reservoir. The compound is believed to boost the action of a protein, toll-like receptor 7 or TLR7, which activates cytotoxic T-cells called CD8+ cells and NK or "natural killer" cells.

In further collaborations, Gilead is exploring two other possible HIV eradication strategies. The first draws on naturally occurring antibodies found in the blood of certain patients in Africa who have been called "elite neutralizers." Their protective antibodies are called "broadly neutralizing" because they work against a wide range of viral strains.

Copies of these monoclonal antibodies could be part of a new treatment, Geleziunas says. "We could combine this with antiretroviral drugs and hopefully achieve sustained viral suppression," Geleziunas says. If so, researchers could later try discontinuing the maintenance drugs, he says.

Gilead is also supporting studies of a vaccination method developed by Louis Picker at the Oregon Health & Science University. Picker's technology appears to train the immune system to patrol continuously for certain pathogens in a long-term "seek and destroy" campaign that might some day be useful against the latent HIV reservoir.

In preclinical studies, Picker created a vaccine for SIV, a virus similar to HIV that infects monkeys. He joined SIV to a sort of vaccine vehicle or vector—a virus called cytomegalovirus that commonly infects humans and usually doesn't cause disease. That vaccine, used as a preventive measure, protected half of a group of uninfected monkeys from SIV when they were exposed to the deadly simian immunodeficiency virus. Those monkeys produced virus, but their immune systems cleared it completely within three years.

"That is without precedent," Geleziunas says. Picker's group is trying to figure out why only half the monkeys benefited from the vaccine, and is also creating human cytomegalovirus vaccine vectors to carry the HIV virus for a potential vaccine for people. Picker co-founded a company, Portland, OR-based Tomegavax, to develop the technology.

Gilead is now participating in a collaboration with Picker, the Gates Foundation and other partners to figure out whether the SIV vaccine might be turned into a therapy or cure for monkeys already infected with SIV. In a study that has already begun, infected monkeys are treated with antiretroviral drugs, and then given the SIV-cytomegalovirus vaccine. After as much as a year, researchers will check to see whether the virus population rebounds when antiretroviral drugs are stopped. If the virus doesn't return, the same method might be tried in clinical trials to see if a similar HIV vaccine could wipe out the HIV cell reservoir in humans.

Geleziunas says Gilead's HIV eradication program includes a large group of well-supported scientists. They'll explore any type of therapy that works best, whether it's small molecules drugs, biologics, or vaccines, he says.

"We really don't care where it comes from," Geleziunas says. "We'll go where the science takes us."

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This article originally appeared on Xconomy, along with:

The Big Guys Have Lost Their Iron Grip, and It's All Good Juno Deal Drives Standout Quarter for VC Investments in Seattle Moderna Spins Out mRNA Cancer Drugs Into New Company, Onkaido

Monday, March 24, 2014

How to tame your workers' wandering eye

slice of lime

Kevin Menzie keeps his employees happy by taking them on "creative experiences," this one at the top of Colorado's Quandry.

NEW YORK (CNNMoney) The job market is finally looking brighter: Recruiters are circling, pay is climbing and companies are scrambling to keep their best employees from leaving.

Tempted by the prospect of landing a better gig, 85% of the workforce is looking for a job or interested in talking with recruiters, according to a survey released Tuesday by LinkedIn. That even includes people who are "satisfied" with their jobs.

If you don't want to lose talented employees, here's how to keep them happy and engaged.

Give them a voice

As CEO of design firm Slice of Lime, Kevin Menzie knows competition for his employees is fierce. So Menzie ensures his 15 employees feel like they are the company, instituting monthly "retrospectives" to discuss what's working and what's not.

That can be tough at times, like when Menzie had to deny their request for gym memberships. But he left the topic open for future consideration. "I think it's riskier not to listen," he says.

Kathryn Minshew takes a similar approach as CEO of The Muse, a career website in New York. She promises transparency and answers her 15 employees' questions on fundraising, finances and hiring plans. This puts any frustration out in the open and boosts loyalty.

"Not every decision is made by consensus or democracy, but it leads to creativity and people being extremely invested in what they do," she says. Her firm has lost just one employee since 2012.

Check in often and say thanks

The traditional yearly review won't cut it in 2014, says Allyson Willoughby, a vice president at Glassdoor.com.

To ensure regular feedback, New York-based Quirky.com uses automated software called 15Five for weekly check-ins. All 189 workers get questions about what's going well, where they're stuck or how to improve their jobs. As a result, managers have time to think through challenges before one-on-one meetings, which can be spent brainstorming solutions, says Rochelle DiRe, a Quirky vice president.

"Plus, our CEO knows exactly what is going on with everyone and can shout out to people who are doing a good job," she says.

That kind of recognition goes a long way. Jeremy Bloom, CEO of cloud software firm Integrate, sends thank you notes and bottles of Dom Perignon for a job well done. "Thoughtfulness," says Bloom, "is a key ingredient to building loyalty."

Offer professio! nal -- and personal -- development

Lack of career growth is a big reason people leave their jobs, says Beth N. Carvin, CEO of exit interview firm Nobscot Corp. She's seeing more companies start mentoring programs to prevent that.

That includes Luggagefree, a New York-based luggage delivery service. President Jeff Boyd wanted a cost-effective way to boost personal development for his 15 employees. He settled on Everwise, which acts as a Match.com for mentors and protégés. For $1,500 per person, Boyd provide outside mentors who offer fresh ideas for career growth.

"My hope is that they'll be self-empowered and feel better about their colleagues, about our clients and about Luggagefree," he says.

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Meanwhile, IdeaPaint, which makes dry erase paint for walls, wants to stimulate its 30 employees by turning its new downtown Boston office into a community center. Just this month, it started hosting speakers and roundtable discussions before and after work. Open to anyone, they've already boosted company morale.

Give them a break

Perks like gym memberships and free bagels are great, but sometimes just a break from the office can build morale and boost loyalty.

One of the most popular perks at Quirky is the week-long "company-wide black out" every quarter (which is on top of unlimited vacation time).

"Knowing you get this break gives you a sense that you're working towards something together," DeRe says.

Slice of Lime owner Menzie treats his employees to ski vacations and "creative experiences," like a recent trip to Universal Studios. People can propose their own "outties" on an online list.

Menzie also lets employees spend 20% of work hours on personal interests, and he keeps an open Amazon account for employees.

The perks, he says, cost far less than replacing an employee.

"You g! et that money back because they're staying, they're happy and they're doing great work," he says. To top of page

Sunday, March 23, 2014

Booming market for data-driven journalism

A thousand attendees at an annual conference for data-loving journalists packed the halls of a Marriott in Baltimore earlier this month, reveling in the overflowing job postings and employers' sudden embrace of their obsession.

Data-centric journalism, once the domain of a few computer geeks hunched over in remote corners of the American newsroom, is coming to the forefront. With easier-to-use technology available, more data-savvy journalists are pushing the boundaries of what's possible in their niche. Heartened by social media buzz over such stories and prodded by competition hungry for unique content, news organizations are pouring money into recruiting talent and expanding their menu of stories derived from a mix of sophisticated number crunching, explanatory narratives and interactive graphics that weren't possible in the old days of print.

"There's more information now available through more people faster than ever before," says Almar Latour, executive editor of The Wall Street Journal. "There is a lot more flexibility in displaying and telling stories."

Data crunchers have been part of newsrooms since the 1980s, as "computer-assisted reporting" gained traction among editors looking to gain an edge. But the lack of computing power, dearth of talent who could handle data and heavy costs kept the endeavor in check.

"Many tried to make all of their staff more data-literate, but found limited success," says Rich Gordon, a journalism professor at Northwestern University who has launched a program to lure software-savvy students into journalism.

But a confluence of factors has helped mainstream this arcane branch of journalism. The recovering economy is spurring more news business investment, with venture capitalists pouring money into digital journalism and creating lots of openings for savvy data geeks.

Software that processes data and turn them into attractive graphics is cheaper if not free online. Cloud technology — storing information on remote servers — has ! lowered the price of storing massive loads of data.

Among the competitors with data-mining in their mission statements:

• FiveThirtyEight.com. Nate Silver, the journalist best known for this pursuit, on Monday plans to launch his new ESPN-backed site, a byproduct of the fame earned for his eerily accurate prediction of President Obama's victory in the 2012 election.

• The Upshot.The New York Times, which hosted Silver's site until they parted ways last year, will replace it with The Upshot, a policy and economic analysis blog that will emphasize data and graphics and will be headed by the paper's former Washington bureau chief David Leonhardt.

• Vox.com. A brainchild of former Washington Post uber-policy blogger Ezra Klein and published by Vox Media, Vox will launch later this year as an explanatory site that aims to make news more digestible by roasting it "to perfection with a drizzle of olive oil and hint of sea salt," according to its website. Data and graphics will be integral parts of the storytelling. Vox Media raised about $40 million in venture capital shortly before signing Klein.

• The Washington Post, which rejected Klein's request for a reported eight-figure budget to create his own site there, will deal with his departure in part by launching an economics blog by reporter Jim Tankersley. "We're going to tell stories about big things in people's lives that demand policy response," Tankersley says. "Data (will) help us animate those stories."

• The Wall Street Journal, which has always seemed more comfortable with math than its rivals, has several data journalism initiatives on tap. Mike Siconolfi was named investigations editor to preside over a new group that will combine investigative reporters and data reporters under one roof. "Expanding our data reporting capability in a data-rich age is a priority," wrote Gerard Baker, managing editor of The Wall Street Journal, in announcing Siconolfi's appointment.

Path to product differentiation

The! Internet enables news entrepreneurs to launch sites quickly and without burdensome upfront investment. And the success of Web-based organizations that have carved out a market with a unique approach — investigative force ProPublica is a good example — have encouraged others to follow suit.

That the Internet is awash with mindless click bait and the noise of the chattering class creates running room for news outlets to make their marks by offering journalism steeped in evidence, says Alexander Howard, a data journalist who is a fellow at the Tow Center for Digital Journalism at Columbia University. "A lot of people still want to know facts," he says.

The push to ease handling of data has enhanced other layers of storytelling. A small but growing number of newsrooms are assigning teams of reporters and coders to create "data applications" — software written to allow readers to manipulate and handle data on their own. In a well-received project, NPR tasked its team to comb through data and create an application for parents of disabled children to locate wheelchair-friendly playgrounds.

Once an afterthought of editors and reporters preoccupied with flashy leads and story structure, the task of presenting massive data in engaging graphics — data visualization, in industry speak — has also moved up on the priority list.

"You'd have these investigative teams of reporters and editors who talk a lot about (the stories)," says Miranda Mulligan, executive director at Northwestern University's Knight Lab, which teaches digital journalism. "But when the time comes to involve photographers and graphics, a lot of the decisions were already made."

Editors are pushing for those conversations to take place earlier in the process, and designers have help from a wide array of new software that makes it easy to produce maps, timelines and audio-embeds relatively quickly.

"The more you see that readers understand it and share it," Mulligan says, "and you see more and more of it ! go viral,! newsrooms put more resources into it."

Contributing: Paul Overberg

Saturday, March 22, 2014

I’m Selling Sandridge Mississippian Trust II

Oscar Wilde once said that experience is the name we give to our mistakes. My investment in Sandridge Mississippian Trust II (NYSE: SDR  ) has been the greatest experience of my Special Situations portfolio. But in investing, as in life, to be successful you must make the next right decision, rather than foolishly holding to a past commitment that has been proven wrong. So I've decided to sell my shares in this troubled royalty trust and move on to find a good investment. (I've got a good one here.)

Ouch, that hurts
This investment has been painful, mitigated only by the relatively small stake I took and the ongoing stream of distributions. I purchased shortly after the IPO at $22.20 per share. It was all downhill from there.

After Thursday's close, the stock is down to $7.34, or about 67%. The only salve is the cash distributions totaling $4.25. The overall return comes to -48%. Bad work if you can get it.

It's the second year in a row that the trust has recorded a significant downward revision in reserves. Increasingly the trust is relying on selling natural gas and liquids, as opposed to oil, as previously indicated in the prospectus. That is lowering royalties, which hurts cash distributions over time.

Foolish takeaway
With little reason to expect things to change now, I'm selling Sandridge Mississippian Trust II and will move the proceeds into other stocks that have a good shot at outperformance.

Interested in Sandridge Mississippian Trust II or have another stock to share? Check out my discussion board or follow me on Twitter @TMFRoyal.

Friday, March 21, 2014

Stellar Stocks: China Trio

Richard Schmidt, growth stock expert and editor of Stellar Stock Alert, holds a number of China-based companies in his model portfolio; here, he highlights three that currently earn his buy rating.

We admittedly bought into China Automotive Systems (CAAS) too soon. The stock is still down from our original recommendation price, but the future looks very bright.

If you've paid attention to the Chinese car market's growth, you know that it's one of the best growth stories of our day. The Chinese car market has grown tremendously, but it's far from saturated.

In fact, we see their car market continuing to grow for the foreseeable future. While the middle class in the US dwindles, the growth of the Chinese middle class is just beginning.

So their market still has room to grow. And we'll profit from it with our CAAS holding. If you haven't bought in, do so now. CAAS is a strong buy.

Some people are suggesting that the iPhone introduction into China wasn't a good thing for China Mobile (CHL). Frankly, they're making a harsh judgment much too early.

Yes, the stock came down after the announcement. But you know the old adage, "buy on the rumor, sell on the news."

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Well, this is one case where it was accurate (it isn't always). But it wasn't the iPhone news that pulled the stock down. It was simply a continuation of a long-term correction.

"Long-term" for CHL is about six to eight months. This stock bounces around a lot for being such a large stock. Now we're looking at a chart that's looking very bullish.

The stock looks like it has bottomed. As sales of the iPhone move through China, CHL is going to be the biggest beneficiary of this huge market. So we expect CHL to move back up in the coming months. CHL is a buy.

Shares of e-House Holdings Limited (EJ) finally came to life in the last five months of last year. They cooled off in January, but moved back up in February.

Like the car and phone industry in China, the rising middle class is pushing that country's markets up in a big way. Now we're seeing it in their housing market. EJ is still below our recommended price, but our patience is paying off. That will change in the near future. EJ is a strong buy.

iShares FTSE/Xinhua China (FXI) moved up about 10% in February. The strong move came as a result of a strong resurgence in China's economic growth and its improved quality.

As investors are looking for the next big opportunity, many are seeing the sideways movement our market is set to experience. And they're moving to Chinese stocks. The FXI is a buy.

Subscribe to Stellar Stock Alert here…

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10 Best Casino Stocks To Buy For 2014

10 Best Casino Stocks To Buy For 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]

    Among the companies with shares expected to actively trade in Tuesday’s session are American Eagle Outfitters Inc.(AEO), Boyd Gaming Corp.(BYD) and Dick's Sporting Goods Inc.(DKS)

  • [By Wallace Witkowski]

    Shares of Boyd Gaming Corp. (BYD)  rose 8% to $12.75 on moderate volume after hedge fund Elliot Associates L.P. disclosed in a regulatory filing it had acquired a 4.99% stake in the casino operator.

  • source from Top Stocks Blog:http://www.topstocksblog.com/10-best-casino-stocks-to-buy-for-2014.html

Thursday, March 20, 2014

Bill Clinton on leadership

LIS07 bill clinton (Fortune) The former President distills his wisdom for Fortune.

What does leadership mean to you?

Leadership means bringing people together in pursuit of a common cause, developing a plan to achieve it, and staying with it until the goal is achieved. If the leader holds a public or private position with other defined responsibilities, leadership also requires the ability to carry out those tasks and to respond to unforeseen problems and opportunities when they arise. It is helpful to be able to clearly articulate a vision of where you want to go, develop a realistic strategy to get there, and attract talented, committed people with a wide variety of knowledge, perspectives, and skills to do what needs to be done. In the modern world, I believe lasting positive results are more likely to occur when leaders practice inclusion and cooperation rather than authoritarian unilateralism. Even those who lead the way don't have all the answers.

MORE: World's Greatest Leaders

What attributes do leaders share?

Steadfastness in pursuit of a goal, flexibility in determining how best to achieve it. The courage to make a hard decision, and the confidence to stay with it and explain it. The common sense to listen to others and involve them. And the strength to admit it when you make a mistake or when a given policy is not working. You have to be able to trust others, and trust your instincts as well as your intellect. Finally, if the objective is to get something done on a matter that is both important and controversial, you have to be able to compromise as well as know the lines you can't cross.

How did you learn to be a leader?

I learned when I was very young to respect the human dignity of everyone I met, to observe them closely and listen to them carefully. From the adults in my extended family I learned that everybody has a story but not everyone can tell it. I learned that most of life's greatest wounds are self-inflicted, that trying and failing is far better than not trying at all, that everyone makes mistakes but most people are basically good. As a boy grow! ing up in the civil rights years, then during Vietnam, I came to see politics as a way to help other people make their own life stories better. All along the way I learned a lot from other leaders, especially those who befriended me and shared their own experiences. Yitzhak Rabin reminded me that you don't make peace with your friends. Nelson Mandela told me and showed me that you can't be a great leader if you're driven by resentment and hatred, no matter how justified those feelings are. To be free to lead, you have to let a lot of things go. I'm grateful to them and everyone else who taught me to look for the dreams and hurts, hopes and fears, in the eyes of everyone I met.

MORE: Gen. George W. Casey on leading in a 'VUCA' world

Who are the great leaders in your mind?

There are too many to mention so I'll stick with a few. Nelson Mandela and Yitzhak Rabin were great for the reasons I mentioned and many more. Helmut Kohl oversaw the reunification of Germany, the European Union, and the creation of the eurozone.

Bill and Melinda Gates have built their amazing foundation, which is saving and lifting countless lives, driven by the principle that every life has equal value. They've selflessly given their money, time, and know-how to help solve global health and development problems. Muhammad Yunus and Fazle Abed have empowered huge numbers of poor people to live more productive lives.

Aung San Suu Kyi's dignified determination helped open her country to the world and inspired women and girls across the world.

This story is from the April 7, 2014 issue of Fortune. To top of page

Tuesday, March 18, 2014

10 Best Gold Stocks To Buy Right Now

10 Best Gold Stocks To Buy Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Doug Ehrman]

    While many precious-metals companies have been in a slump of late, there is one that belongs perpetually in your portfolio: Silver Wheaton (NYSE: SLW  ) . The company is not like other miners -- including Pan American Silver (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) -- in that it has a unique business plan that insulates it against many of the vagaries of the mining business. Moreover, because silver will always have a significant industrial demand component, even with the heightened volatility you see in the silver market, maintaining exposure to silver is appropriate.

  • [By Doug Ehrman]

    Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable eve! r since mid-April, with the iShares Silver Trust (NYSEMKT: SLV  ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW  ) struggles as well.

  • [By Doug Ehrman]

    It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD  ) and iShares Silver Trust (NYSEMKT: SLV  ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG  ) and Barrick Gold (NYSE: ABX  ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW  ) .

  • [By Doug Ehrman]

    In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver (NASDAQ: PAAS  ) , for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic (NYSE: AG  ) reported strong revenue growth and a small bump in profits, sending the stock higher since the announcement. First Majestic reported increased cash costs and tightening margins, largely driven by lower silver prices. Each of these companies faces pressure from increasing production costs and environmental concerns.

  • source from Top Stocks Blog:http://www.topstocksblog.com/10-best-gold-sto! cks-to-bu! y-right-now.html

Monday, March 17, 2014

Best Solar Stocks To Invest In 2014

Best Solar Stocks To Invest In 2014: LDK Solar Co. Ltd.(LDK)

LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.

Advisors' Opinion:
  • [By Jonathan Yates]

    For investors looking to profit from shorting stocks in the sector, JA Solar Holdings (NASDAQ: JASO) and LDK Solar (NYSE: LDK) are both vulnerable. For those looking to go long, Exxon Mobil (NYSE: XOM) is very strong in natural gas, which is expected to increase its market share, according to a recent report from the Department of Energy.

  • [By Paul Ausick]

    Big Earnings Movers: Tiffany & Co. (NYSE: TIF) is up 8.7% at $88.05 following positive results and a raised outlook. Barnes & Noble Inc. (NYSE: BKS) is down 6% at $15.45 as the bookseller watches its revenue slide. JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is down 10.3% at $XX on a mixed earnings report and LDK Solar Co. Ltd. (NYSE: LDK) is flat at $1.60.

  • source from Top Stocks Blog:http://www.topstocksblog.com/best-solar-stocks-to-invest-in-2014.html

Sunday, March 16, 2014

Top 10 Medical Stocks To Buy For 2014

Top 10 Medical Stocks To Buy For 2014: Echo Therapeutics Inc (ECTE)

Echo Therapeutics, Inc. (Echo), incorporated on September 10, 2007, is a transdermal medical device company. The Company is developing Prelude SkinPrep System (Prelude) as a technology to allow for painless and skin permeation that enable both analyte extraction and needle-free drug delivery. The Company is developing its Symphony CGM System (Symphony) as a non-invasive, wireless continuous glucose monitoring (CGM) system for use in hospital critical care units and for people with diabetes. The Prelude SkinPrep System (Prelude), a component of its Symphony CGM System, allows for skin permeation that enables extraction of analytes such as glucose. Prelude's platform skin preparation technology also allows for needle-free, transdermal drug delivery.

Symphony CGM System

The Symphony CGM System incorporates a Prelude skin preparation device, transdermal sensor, wireless transmitter and data display monitor. When the electro-chemical glucose sensor i s placed on the prepared site, it uses glucose oxidase to generate a continuous current that is proportional to the concentration of blood glucose in the vessels beneath the epidermis. The signals are then wirelessly transmitted to a remote monitor. The monitor, calibrated periodically with a reference blood glucose measurement, converts the data to a glucose measurement based on the reference value. The monitor displays glucose readings and also contains customizable early-warning alarms for hypo- or hyperglycemia.

Prelude SkinPrep System

The Company is developing Prelude as a transdermal skin preparation device for Symphony to improve the access to the interstitial fluids and the flow of molecules across the protective membrane of the stratum corneum, the outmost protective layer of the skin. Prelude incorporates the Company's skin abrasion co! ntrol technology into a hand-held device used to prepare a small area of the skin. The non-invasive sensor is applied to this prepared area in order to measure the in! terstitial glucose levels.

Specialty Pharmaceuticals

The Company's specialty pharmaceuticals pipeline is based on itsAzone transdermal drug reformulation technology. AzoneTS is a nontoxic, nonirritating skin penetration that is intended to enable topical application of food and drug administration (FDA) -approved drugs, including pharmaceutical products that previously could only be administered systemically. Its advanced drug candidate is Durhalieve, an AzoneTS formulation of triamcinolone acetonide, medium potency corticosteroid approved by the FDA for treatment of corticosteroid-responsive dermatoses. AzoneTS increases lipid membrane fluidity in the stratum corneum layer of the skin, thereby decreasing resistance to topically applied therapeutics.

The Company competes with Roche, Johnson & Johnson, Bayer, Abbott Laboratories , DexCom, Inc., Medtronic, Inc., Edwards Lifesciences Corporation, Optiscan Biomedical Corp., Medtronic, Gl ysure, Glumetrics Inc., Maquet and A. Menarini Diagnostics S.r.l.

Advisors' Opinion:
  • [By Bryan Murphy]

    Truth be told, Echo Therapeutics Inc. (NASDAQ:ECTE) doesn't look like a particularly impressive stock right now. At $2.92 per share, ECTE is just trading right around where it was a few days ago, not to mention a few weeks ago. And, without any real "news" from the company in months, it's tough to think the market's going to be getting excited about the stock anytime soon. When you take a closer look at Echo Therapeutics though, a few subtle-but-compelling clues start to appear.

  • [By Roberto Pedone]

    Another under-$10 health care player that's quickly moving within range of triggering a major breakout trade is Echo Therapeutics (ECTE), which is a transdermal medical device company with skin permeation technolo! gy. This ! stock has been destroyed by the bears so far in 2013, with shares off huge by 70%.

    If you take a look at the chart for Echo Therapeutics, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of $2.14 to its intraday high of $3.06 a share. During that uptrend, shares of ECTE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has pushed shares of ECTE back above its 50-day moving average at $2.65 a share, and it's just starting to push ECTE into breakout territory, since the stock has cleared some key near-term overhead resistance levels at $2.98 to $2.99 a share. That move is quickly pushing shares of ECTE within range of triggering an even bigger breakout trade.

    Market players should now look for long-biased trades in ECTE if it manages to break out above some major near-term overhead resistance at $3.30 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average volume of 211,103 shares. If that breakout triggers soon, then ECTE will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.50 a share, or possibly even $5 to $6 a share.

    Traders can look to buy ECTE off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $2.65 a share, or right below more near-term support at $2.50 a share. One can also buy ECTE off strength once it clears $3.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-10-medical-stocks-to-buy-for-2014.html

Saturday, March 15, 2014

IRS red flags: How to avoid a tax audit

There's a general conception that the Internal Revenue Services is too understaffed at tax time to go after anyone but high rollers and blatant cheats.

Don't believe it.

While it's true that the IRS only audits a small percentage of returns, government officials are getting smarter about which taxpayers are the likeliest to be overstating deductions or underreporting income.

It starts with a high-tech analysis of all U.S. tax returns, calculating average deductions and calling out filings outside the norm.

TAX QUESTIONS? Send 'em to us; tax experts will provide answers

"The IRS gets literally mountains of tax returns," says Andrew Porter, a certified public accountant and partner with California firm Comyns, Smith, McCleary & Deaver LLP. Officials "feed the tax returns into a piece of software and call out the juiciest ones. It's a first cut that allows them to focus their examination attention on things that are most likely to yield additional tax for the government."

So how can you avoid being part of that first cut?

According to tax experts, here are a few things that will make you stand out in the eyes of IRS auditors and their high-tech screening tools:

Typos and omissions

Computers don't make adding errors. Humans, however, do.

Best Small Cap Stocks To Invest In Right Now

One of the most easily prevented errors is simply not properly copying over the numbers on your tax forms. Any difference between what your employer reported you earned in their filings and what you personally reported earned will raise a red flag, even if it's an honest mistake.

Even if you have your taxes professionally prepared, Porter said, "you don't want to just blindly sign and drop it in the mail. You have to look at it and know that your W-2 amount actually shows up correctly."

An unprofitable home business

Stan Veliotis, associate profe! ssor at the Fordham University Schools of Business, said that the Schedule C tax forms for self-employed Americans have been improved recently to help filers. However, while the forms have gotten easier to manage that doesn't mean anything goes.

"If you have someone reporting $100,000 in revenue but $99,000 in expense, what kind of business person would have such an expense-to-revenue ratio?'" Veliotis said.

$250,000 or more in income

An unfortunate reality of IRS audits is that they are "a profit making venture for the government," says Porter. That means the tax man doesn't have time to waste on folks who won't yield a big payday.

High earners may not have done anything wrong, but simply being a bigger target is enough to draw attention because of the potential in lost tax revenue.

No income

The flip side is that a person with insignificant income could sometimes be flagged by the IRS – particularly if they are associated with other people or businesses that are known tax avoiders.

Some of those reporting low income are actually hiding how they make their money, Veliotis said. That means the IRS can win a big payday by proving how much real income exists – and more importantly, the unpaid taxes (and penalties) on that income.

Big charitable contributions

If a taxpayer claims a massive charitable contribution on their 2013 returns, there's a good chance that will raise a red flag with the IRS. Charitable deductions are frequently reported without proper documentation or occasionally made fraudulently.

"That doesn't make (a big donation) illegitimate," Porter said, "but you more likely than not will stand out and be audited. It's all about documentation."

Don't be intimidated

It is hard to know for sure exactly what will spark an IRS audit given the sheer volume of tax filings, the secretive nature of how the IRS flags returns and the complexity of the ever-changing tax code.

But the experts agree that no matter what the ! auditors ! may think, you have every right to claim the deductions that are entitled to you and should never leave money on the table.

"Not wanting to take a legitimate deduction is just stupid," Porter said. "And audit is not something to be afraid of if you have all the right documentation."

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks.

Wednesday, March 12, 2014

Top 10 Industrial Conglomerate Companies To Invest In 2015

The price of oil fell below $96 a barrel even as the dollar strengthened against some foreign currencies.

Crude prices have been rising, along with the stock market, and investors appeared to take a break from both Thursday.

Benchmark oil for June delivery fell 85 cents to $95.77 a barrel in morning trading on the New York Mercantile Exchange.

The Labor Department reported the number of Americans who applied for unemployment benefits fell by 4,000 to a seasonally adjusted 323,000. Layoffs have receded to pre-recession levels. The less volatile four-week average dropped by 6,250 to 336,750, the lowest since November 2007, just before the Great Recession began.

A more robust hiring environment suggests businesses will be consuming more energy, not to mention people who are again commuting to work.

At the same time, however, the dollar gained against other currencies, including the euro, the British pound, and the Japanese yen. Since oil is traded in dollars, a stronger dollar makes oil less appealing to investors using foreign currency.

Top 10 Industrial Conglomerate Companies To Invest In 2015: Siemens AG (SI)

Siemens AG (Siemens), incorporated on August 28, 1996, is a globally operating technology company with core activities in the fields of energy, healthcare, industry and infrastructure. Siemens business activities focus on four sectors, Energy, Healthcare, Industry and Infrastructure & Cities. These sectors form four of Siemens reportable segments. In addition to the four sectors, Siemens has two additional reportable segments: Equity Investments and Siemens Financial Services (SFS). The Energy sector comprises four divisions: Power Generation, Wind Power, Power Transmission and Energy Service. The Healthcare Sector includes four divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions; and one sector-led Business Unit, Audiology Solutions. The Industry sector consists of three divisions: Industry Automation, Drive Technologies and Customer Services; and one sector-led Business Unit, Metals Technologies. The Infrastructure & Cities sector consists of five divisions: Rail Systems, Mobility and Logistics, Low and Medium Voltage, Smart Grid, and Building Technologies. In July 2013 Siemens sold its stake in the Nokia Siemens Networks (NSN) joint venture to Nokia and OSRAM Licht AG was spun off from Siemens.

Industry

The Industry Sector offers a broad spectrum of products, solutions and services that help customers use resources and energy. The Sector�� integrated technologies and holistic solutions primarily address industrial customers, particularly those in the process and manufacturing industries. The portfolio spans industry automation, industrial software, drive products and services, system integration, and solutions for industrial plant businesses. The Industry Sector consists of three Divisions: Industry Automation, Drive Technologies and Customer Services. The Sector also includes a sector-led Business Unit, Metals Technologies. In addition to its Sector-level financial results, Industry also breaks out financial results for the Indust! ry Automation Division and the Drive Technologies Division. The Industry Automation Division offers a range of standard products and system solutions for automation technologies used in the manufacturing and process industries. The Division�� offerings include automation systems and software, motor controls, machine-to- machine communication products, sensors, product and production lifecycle management products, and software for simulating and testing mechatronic systems. The Drive Technologies Division offers products and comprehensive systems across the entire drive train. These offerings are customized to the respective application and include numerical control systems, inverters, converters, motors (geared and gearless), drives and couplings. In addition, Drive Technologies supplies integrated automation systems for machine tools and production machines. The Division also offers integrated lifecycle solutions and services for industries such as shipbuilding, cement, mining, and pulp and paper. The Customer Services Division offers a comprehensive portfolio of services and supports industrial customers.

Energy

The Energy Sector offers a spectrum of products, solutions and services for generating and transmitting power, and for extracting, converting and transporting oil and gas. The Fossil Power Generation Division offers products and solutions for fossil-based power generation. The Division concentrates on products and solutions for gas and steam turbines, turbo generators, heat recovery steam generators including control systems, with an emphasis on combined-cycle power plants. It also develops solutions for instrumentation and control systems for all types of power plants and for use in power generation. The Wind Power Division manufactures wind turbines for onshore and offshore applications, including both geared turbines and direct drive machines. The product portfolio is based on four product platforms, two for each of the onshore and offshore applications. The Oil ! & Gas Div! ision has a comprehensive portfolio of rotating machinery (gas turbines, steam turbines, compressors with associated equipment) and electrical, instrumentation and telecommunication (EIT) solutions. The Power Transmission Division provides customers with turnkey power transmission solutions as well as discrete products, systems and related engineering and services. It covers high-voltage transmission solutions, power and distribution transformers, high-voltage switching and non-switching products and systems, and alternating and direct current transmission systems. The Energy Service Division offers comprehensive services for products, solutions and technologies, covering performance enhancements, maintenance services, customer trainings and consulting services for the Divisions Fossil Power Generation, Wind Power and Oil & Gas. The Wind Power Division is active in both the onshore and the offshore market segments globally. Power Transmission Division is expanding infrastructure in emerging countries, equipment replacement and modernization in mature economies, and integration of renewable energies.

Healthcare

The Healthcare Sector offers customers a comprehensive portfolio of medical solutions across the treatment chain-ranging from medical imaging to in-vitro diagnostics to interventional systems and clinical information technology systems-all from a single source. In addition, the Sector provides technical maintenance, professional and consulting services, and, together with Financial Services (SFS), financing to assist customers in purchasing the Sector�� products. The Healthcare Sector includes four Divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions. The Sector also includes one sector-led Business Unit, Audiology Solutions. In addition to its Sector-level financial results, Healthcare also separately breaks out financial results for the Diagnostics Division.

The Imaging & Therapy Systems Division provides large-scale! medical ! devices for diagnostic imaging and for image-guided therapies. Imaging equipment includes computed tomographs, magnetic resonance imaging equipment, angiography systems for diagnostics, and positron emission tomography. The Clinical Products Division mainly comprises the business with ultrasound and X-ray equipment including mammography. The Diagnostics Division offers products and services in the area of in-vitro diagnostics. The Division�� product portfolio represents a comprehensive range of diagnostic testing systems and consumables, including offerings for clinical chemistry and immunodiagnostics, molecular diagnostics, hematology, hemostasis, microbiology, point-of-care testing and clinical laboratory automation solutions. The Customer Solutions Division provides healthcare information technology (HIT) systems. It is responsible for the Sector�� service business and customer relationship management on a global level.

Equity Investments

The Equity Investments comprises equity stakes held by Siemens that are accounted for by the equity method, at cost or as current available-for-sale financial assets and for strategic reasons are not allocated to a Sector, SFS, Centrally managed portfolio activities, Siemens Real Estate (SRE), Corporate items or Corporate Treasury. Its main investments within Equity Investments are its stake of 50% in BSH Bosch and Siemens Hausgerate GmbH (BSH), its stake of 17% in OSRAM Licht AG (OSRAM) as well as its 49% stake in Enterprise Networks Holdings B.V. (EN).

Financial Services

Financial Services provides a variety of financial services and products to other Siemens units and their customers and to third parties. SFS has three strategic pillars: supporting Siemens units with finance solutions for their customers, managing financial risks of Siemens and offering third-party finance services and products. SFS��business can be divided into capital business and fee business. The Commercial Finance Business Unit offers! a compre! hensive range of solutions for equipment financing, leasing, rental and related financing for equipment supplied by Siemens or third-party providers. The Venture Capital Business Segment�� main task, together with Siemens��Sectors, is to identify and finance young companies worldwide. The Treasury Business Unit operates the global Corporate Treasury of the Siemens Group, with SFS employee�� thereby managing liquidity, cash and financial risks (interest, foreign exchange, commodities) on behalf of Corporate Treasury. The Financing & Investment Management Business Unit manages fee-based receivables and offers investment management services. The Insurance Business Unit acts primarily as an insurance broker for Siemens and external customers.

Infrastructure & Cities

The Infrastructure & Cities Sector offers a range of technologies for the sustainability of metropolitan centers and urban infrastructures worldwide, such as integrated mobility solutions, building and security systems, power distribution equipment, smart grid applications and low and medium-voltage products. The Sector consists of five Divisions: Rail Systems; Mobility and Logistics; Low and Medium Voltage; Smart Grid; and Building Technologies. The Rail Systems Division comprises Siemens��rail vehicle business, encompassing the entire spectrum of rolling stock-including high-speed trains, commuter trains, passenger coaches, metros, people movers, light rail vehicles, locomotives, bogies, traction systems and rail-related services. The Mobility and Logistics Division primarily provides products, solutions (including IT solutions) and services for rail transportation operating systems, such as central control systems, interlockings and automated controls. The Division also provides offerings for road traffic, including traffic detection, information and guidance systems.

Advisors' Opinion:
  • [By Tyler Crowe]

    Of the major wind turbine producers in the world, only General Electric (NYSE: GE  ) and Siemens (NYSE: SI  ) are publicly traded on the U.S. exchanges. Fortunately, they also are the two largest manufacturers in terms of U.S. market share. Combined, the two companies possess just over 58% of the U.S. wind turbine market. The two companies are also No. 1 and No. 3 in terms of global market share, with Danish company Vestas squeezing between the two in the global market.�

  • [By Rich Smith]

    The bulk of these awards came in the form of a single multiple-award, task-order contract to be shared among several energy companies:

    Constellation Energy Partners LLC's (NYSEMKT: CEP  ) Constellation NewEnergy subsidiary Privately held ECC Renewables LLC Enel Green Power North America, a subsidiary of Italy's Enel SpA LTC Federal LLC Siemens' (NYSE: SI  ) Government Technologies unit

    These five firms are now authorized to bid for individual task orders under an umbrella contract for the procurement of renewable and alternative energy from facilities that are designed, financed, constructed, operated and maintained by private companies on private land under the jurisdiction of the Department of Defense. The ceiling value on this contract is $7 billion, thus accounting for 84% of the value of all Pentagon contracts awarded yesterday.

  • [By Paul Ausick]

    Last month when Nokia Corp. (NYSE: NOK) agreed to acquire the other half of its joint venture, Nokia Siemens Networks (NSN), from Siemens A.G. (NYSE: SI) for $2.2 billion, we wondered what in the world the Finnish mobile phone maker could have been thinking. That is still a reasonable query.

  • [By Jeff Reeves]

    One turnaround play worth considering is German industrial titan Siemens (SI). The company has lagged the broader market for a number of reasons, including the global downturn and its Europe exposure. But the negativity seems priced in. While Siemens is up 11% year-to-date, shares trade at just 13 times fiscal 2014 earnings estimates.

Top 10 Industrial Conglomerate Companies To Invest In 2015: ThyssenKrupp AG (TKA)

ThyssenKrupp AG is a Germany-based technology holding company operating in seven business areas. The Steel Europe division produces carbon steel flat products. The Steel Americas division is engaged in production, processing and marketing of high-grade carbon steels. The Materials Services division is engaged in global distribution of materials and the provision of complex technical services for the production and manufacturing sectors. The Elevator Technology division is engaged in the area of passenger transportation systems. The Plant Technology division focuses on specialty and large-scale plant construction. The Components Technology division is engaged in manufacturing components for the automotive, construction and engineering sectors as well as for wind turbines. The Marine Systems division focuses on naval and civil shipbuilding. Apart from its business areas, it provides business services, which are diversified into Business Services and Information Technology (IT) Services. Advisors' Opinion:
  • [By Sofia Horta e Costa]

    ThyssenKrupp AG (TKA), Germany�� largest steelmaker, rose to a five-week high. YOC AG (YOC) surged the most in more than three months after the mobile-phone advertising company said it sold 1.3 million euros ($1.7 million) of shares to increase capital. Lanxess AG (LXS), the chemical maker that joined the DAX in September, retreated 3.4 percent.

Best Asian Stocks To Own Right Now: Smiths Group PLC (SMGKF.PK)

Smiths Group plc is a technology company. It has five divisions: Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect and Flex-Tek. The Company and its subsidiaries develop, manufacture, sale and support advanced security equipment, including trace detection, millimeter-wave, infrared, biological detection and diagnostics; mechanical seals, seal support systems, engineered bearings, power transmission couplings and specialist filtration systems, and medical devices aligned to specific therapies, principally airway, pain and temperature management, and vascular access. It also develops, manufactures, sells and supports specialized electronic and radio frequency products for the global wireless telecommunications, aerospace, defense, space, medical, rail, test and industrial markets, and engineered components, including ducting, hose assemblies and heating elements. In May 2011, it acquired the entire issued share capital of SDBR Comercio De Equipamentos De Seguanca LTDA. Advisors' Opinion:
  • [By Daniel Lauchheimer]

    Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.

Top 10 Industrial Conglomerate Companies To Invest In 2015: Orkla ASA (ORK)

Orkla ASA is a Norway-based company active in various sectors. The Company�� operations are structured into two segments: Branded Consumer Goods and Other Businesses. The Branded Consumer Goods segment is divided into five units: Orkla Foods, which comprises the Company�� food businesses in the Nordic region and the Baltics; Orkla Confectionery, which comprises five branded consumer goods businesses which serve the Nordic region and the Baltics as their home markets; Orkls Home & Personal consists of five branded consumer goods businesses, including Lilleborg, Lilleborg Profesjonell, the Axellus Group, Pierre Robert Group and House Care; Orkla Food Ingredients cover product categories, including margarine, marzipan, bread improvers and mixes, and yeast, and Orkla International includes branded consumer goods companies outside the Nordic region and the Baltics. The Other Businesses segment covers the Company�� operation in aluminum, real estate and hydropower sectors, among others. Advisors' Opinion:
  • [By Jonathan Morgan]

    Orkla ASA (ORK), the Norwegian industrial conglomerate transforming itself into a consumer-goods producer, slumped 11 percent to 46.78 kroner, the largest drop since November 2011. The company reported second-quarter pretax profit of 514 million kroner ($86 million), missing estimates of 965 million kroner in a Bloomberg survey of analysts.