Major Food Stocks Making Waves Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

This afternoon, the Federal Reserve's most recent meeting minutes were released and investors quickly noticed that the members of the central bank are making it clear that if the economy continues to move along as it has been; they will soon begin tapering their $85 billion-a-month bond-buying program. With that news, the major indexes turned lower for the day and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) finished the session down 66 points, or 0.41%, while the S&P 500 and the Nasdaq closed the day down 0.36% and 0.26%, respectively.

While the major indexes all fell today, one industry in particular experienced some major moves itself. The food industry had a number of companies that dropped by more than 1% today. Shares of J.M. Smucker (NYSE: SJM  ) fell 6.54%, while Campbell Soup (NYSE: CPB  ) dropped 1.53%, and Hormel Foods (NYSE: HRL  ) declined 2.7%. So what caused the declines?

J.M. Smucker's dropped after the company reported earnings this morning and posted a revenue decline of 4% from $1.63 billion last year to $1.56 billion during the most recent quarter, which also missed estimates of $1.61 billion. That led to earnings that rose from $1.36 per share last year to $1.46 per share, but EPS also fell short of expectations of $1.59. Furthermore, the company said that it expects revenue to drop by 2% during 2014 when compared to 2013, which is lower than the 1% decline management had previously forecasted. Also while the company reiterated it previously stated full-year earnings-per-share range of $5.72 to $%.82, Wall Street had been forecasting $5.83.  

Campbell Soup lost ground today after analyst Christopher Growe of Stifel Nicolaus Equity Research released a statement to clients that painted a poor picture of the soup company in the coming months. Growe believes Campbell will only report earnings or $2.47 per share during 2014, despite the company forecasting a range between $2.53 to $2.58 per share. He believes that the company will have a hard time matching its performance from last winter, which was unseasonably cold. Furthermore, Growe said based on the company's sales declines over each of the last four-week periods, he doesn't believe Campbell will hit its stated EPS. Lastly, although the soup company is on track with new products, they are unlikely to drive large enough growth to make a meaningful difference this year.  

And finally, Hormel. The stock fell after the CEO of Hillshire Brands (NYSE: HSH  ) said that his company will look to make some acquisitions in the coming year and focus more on chicken products as consumers begin to demand healthier options. It is clear that the competition will continue to intensify for Hormel in the coming months and years and, as Hillshire is still a smaller company, it could change very quickly if the acquisition-happy CEO goes on a shopping spree. With many of these food brands, it is all about shelf space and location within a store and, more times than not, the bigger the player, the better the location. Hormel investors shouldn't be overly concerned today, but need to watch how things play out in the future.  

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4 Recent Fast Food Game-Changers

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Think all the major fast food innovations were already introduced years ago? Think again. The recent introduction of so-called “satisfries” at Burger King have been nothing less than a smash hit.

In fact, they may even be a big enough draw to merit an investment in Burger King Worldwide (BKW) shares. The company had been struggling, but the new fries are said to be driving a resurgence in revenue. After all, who goes to Burger King and ends up buying just an order of French fries?

Satisfries are hardly the only game-changer we’ve seen debuted by the industry in recent months, though. Here’s a rundown of the best additions to fast food menus we’ve seen in recent months.

Burger King’s Satisfries

Just for the record, “healthy” is a relative idea when describing Burger King’s newest version of the french-fry. They are a lower-calorie iteration of the nation’s favorite fast food side order … 20% less than the Burger King’s previous fries, to be specific. They’re still pretty packed with calories.

Then again, the company was never trying to create a diet food when it decided to spend an extra 30 cents per serving of its new French fries. BKW was trying to perk up deteriorating sales, and so far, all indications are that satisfries have done the job. While the company wasn’t forthcoming with the details, the introduction of the lower-calorie fry did lead to measurable sales growth right out of the gate.

Taco Bell’s Doritos Locos Tacos

If tacos are good, and if Doritos chips are good, then the combination of the two should make for a great flavor, right? That was the theory anyway, when Yum Brands (YUM) debuted a Doritos-flavored taco shell in early 2012. Since then, the company has introduced two more flavors of taco shells that Frito-Lay — the company that makes Doritos chips — first made popular in snack chip form.

Though now nearly two-years old, the positive impact of the flavored taco shells still isn’t crystal clear. The only definitive number YUM has given is that, as of last month, Taco Bell has sold $1 billion of its Dorito-flavored tacos. But without a benchmark to compare that against, it’s tough to say exactly how influential the Doritos Locos have been. Regardless, there’s no denying the Locos tacos are a huge hit with fast food patrons.

Wendy’s Pretzel Bacon Cheeseburger

It doesn’t seem game-changing, or even innovative, with just a quick glance. But Wendy’s (WEN) bacon cheeseburger on a pretzel bun has been a huge success.

For those who haven’t tried it yet, Wendy’s pretzel bun doesn’t have the exact same flavor and texture as snack-pretzels from the bag. It’s more of an homage to the pretzel. Still, it’s something different from an industry and a fast food restaurant chain that needed to put a new twist on a very old idea — the hamburger.

Pretzel bun burger sales were so hot after their July launch that some analysts predicted they would drive a whopping 5.5% improvement in same-store sales for Q3 (which would have been the best year-over-year quarterly sales growth in years). The restaurant chain ended up with only a 3.2% improvement in its same-store sales, but that’s still a significant win for WEN.

McDonald’s Mighty Wings

Earlier this year, McDonald’s (MCD) tiptoed into KFC’s territory — and even put Buffalo Wild Wings (BWLD) on notice — with the launch of its Mighty Wings chicken wings. Sales of the fried chicken wings have failed to take off as expected, though. As McDonald’s CEO Don Thompson (under)stated it, the wings’ price of $3.69 for five pieces was “not the most competitive.”

Mighty Wings are a big departure from McDonald’s normal sandwich-based fare. MCD has offered non-sandwich fast food before, and still does. But, none of them are quite the leap for McDonald’s that chicken wings are. And, it’s worth noting that while the price of the wings themselves may seem relatively high, compared to other players in the wing arena — like Buffalo Wild Wings — the prices are fairly typical.

Mighty Wings launched in September, and though sales have been lackluster thus far, the restaurants’ menus are still crowded, and the product is still new. It may take a while to train (and even reach) guests regarding the new product.

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

What Microsoft’s new CEO should do

(Editor's note: Dan Ferris, an analyst at Stansberry & Associates, asserts that Microsoft's outgoing CEO Steve Ballmer has been stingy sharing free cash flow with Microsoft shareholders. Here's what Ferris would like to see Microsoft's next CEO do.)

Microsoft expects to have a new CEO by the end of the year. Let's not waste time guessing who it might or ought to be. Let's make it clear what the new CEO should do on his/her first day at work.

Microsoft isn't a consumer PC company anymore. It gets more than 60% of its sales and 70% of its profits from selling software to small, medium, and large businesses. Microsoft isn't Apple. Microsoft is a business software company – and a great one.

Top 5 Financial Companies For 2014

Context: Why some shareholders also want Bill Gates out.

It has 16 businesses that do $1 billion or more a year in sales. Some grow at double-digit rates. These and other Microsoft ventures gush tens of billions in cash flow every year. You've probably never even heard of some of these billion-dollar businesses: SQL Server, System Center, Sharepoint, Lync... These are business-software tools. Information technology professionals can't do their jobs without them.

Microsoft has its problems, but its biggest one is rarely mentioned: It doesn't know what to do with all the money it makes. That, I believe, is the real reason its stock price never seems to go anywhere.

Microsoft has wasted nearly $22 billion on three terrible acquisitions since 2007. It paid $6 billion for online marketing services firm aQuantive – and wrote the entire investment off as a total loss last year. It paid $8.5 billion for Internet phone company Skype, which adds little to Microsoft's massive bottom line. And now it's paying over $7 billion for Nokia – a dying brand whose sales plummeted another 32% in the first half of this year.

Microsoft should listen to co-founder and! chairman Bill Gates' good friend Warren Buffett, who reminds us, "Most turnarounds don't." Nokia hasn't made money in three years. Microsoft won't turn it around. It's just another expensive dud.

For all its genius at software, Microsoft is lousy at reinvesting its huge profits. The solution is simple. Pay out more in dividends and share repurchases. Microsoft holds $70 billion offshore, as if paying U.S. corporate taxes is worse than Microsoft's huge, costly acquisitions. It should bring the cash home and pay it out to shareholders.

Microsoft should also dedicate 50% or more of its annual excess cash flow to dividends and share buybacks. That'll help discipline Microsoft against more waste, cause its share price to soar, and reward shareholders of the world's greatest software firm, accordingly.

About the author: Dan Ferris is a value analyst for Stansberry & Associates Investment Research and is the editor of two monthly investment research publications, The 12% Letter, an income-focused research advisory which looks for the market's best dividend-growth stocks and Extreme Value which focuses on the safest stocks in the market: great businesses trading at steep discounts. Dan's strategy of finding safe, cheap, and profitable stocks has earned him a loyal following – as well as one of the most impressive track records in the industry.

Hot High Tech Companies To Watch In Right Now

SAN FRANCISCO -- After years of drubbings by Google on Android, Microsoft may be finally updating its playbook to borrow a page from the search giant in mobile.

Redmond, Wash.-based Microsoft is considering offering free versions of its Windows Phone and Windows RT to device manufacturers, according to a report from The Verge, citing sources familiar with Microsoft's plans.

USA Today was unable confirm the report. Microsoft did not immediately respond to a request for comment.

Google's free Android software has stormed the world, taking a leading position while pushing Google's services and ads to rope in revenue. Microsoft, which charges device makers for its software, has remained a distant No. 3 on smartphones.

"While monetization through alternative means such as ads and app stores is an industry norm today, within Microsoft this thinking (is) outside the box," says IDC analyst Al Hilwa.

Hot High Tech Companies To Watch In Right Now: Odyssey Resources Limited(ODX.V)

Odyssey Resources Limited, a junior exploration company, engages in the acquisition, exploration, and development of mineral resource properties, primarily precious metals properties. The company was incorporated in 1994 and is based in Longueuil, Canada.

Hot High Tech Companies To Watch In Right Now: PHI Inc. (PHIIK)

PHI, Inc., together with its subsidiaries, provides helicopter transportation services to the integrated energy, and independent exploration and production companies primarily in the Gulf of Mexico and internationally. The company operates in three segments: Oil and Gas, Air Medical, and Technical Services. The Oil and Gas segment provides helicopter services to oil and gas exploration and production companies, and other offshore oil service companies primarily for routine transportation of personnel and equipment; transportation of personnel during medical and safety emergencies; and evacuation of personnel during the threat of hurricanes and other adverse weather conditions. The Air Medical segment provides air medical transportation services for hospitals and emergency service agencies in 17 states. The Technical Services segment offers helicopter repair and overhaul services for existing flight operations customers. It also operates 6 aircraft for the National Science Foundation in Antarctica. As of December 31, 2012, it owned or operated 268 aircraft, including 165 aircraft for Oil and Gas segment, 97 aircraft for Air Medical segment, and 6 aircraft for other operations. The company was formerly known as Petroleum Helicopters, Inc. and changed its name to PHI, Inc. in December 2005. PHI, Inc. was founded in 1949 and is based in Lafayette, Louisiana.

Hot Biotech Companies To Watch In Right Now: Stoneridge Inc.(SRI)

Stoneridge, Inc., together with its subsidiaries, engages in the design and manufacture of engineered electrical and electronic components, modules, and systems for the medium and heavy-duty truck, automotive, agricultural, and off-highway vehicle markets primarily in North America and Europe. The company operates in two segments, Electronics and Control Devices. The Electronics segment produces electronic instrument clusters, electronic control units, and driver information systems, as well as electrical distribution systems, principally wiring harnesses and connectors for electrical power and signal distribution. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. In addition, this segment?s power distribution systems regulate, coordinate, and direct the operation of the electrical system within a vehicle. The Control Devices segment designs and manufactures products that monitor, measure, or activate a specific function within the vehicle. This segment?s product lines include sensors, which are employed in a range of vehicle systems, such as the emissions, safety, power train, braking, climate control, steering, and suspension systems; switches that transmit signal to activate or deactivate selected functions; and electromechanical actuator products, which enable original equipment manufacturers to deploy power functions in a vehicle. Stoneridge, Inc. was founded in 1965 and is headquartered in Warren, Ohio.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By Patricio Kehoe]

  As the U.S. automobile industry recovers, auto parts suppliers are expecting to see increasing sales volumes. Particularly firms such as Delphi Automotive (DLPH) and Stoneridge Inc. (SRI), which specialize in electronic components, expect to make large profits. Increasingly electrified vehicles, higher demand for hybrid and electric powertrain vehicles and stricter governmental emissions regulations should drive revenue growth for these firms in coming years.

Hot High Tech Companies To Watch In Right Now: Timberline Resources Corporatio(TBR.V)

Timberline Resources Corporation engages in the exploration and development of mineral properties in the western United States. It primarily explores for gold, silver, and copper. The company?s principal property includes Lookout Mountain Project located in Nevada. It also owns other projects at various stages of exploration in the Battle Mountain/Eureka gold trend in north-central Nevada. The company was formerly known as Silver Crystal Mines, Inc. and changed its name to Timberline Resources Corporation in February 2004. Timberline Resources Corporation was incorporated in 1968 and is headquartered in Coeur D?Alene, Idaho.

Hot High Tech Companies To Watch In Right Now: S&P 500/Barra Value(SU)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro duction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary , Canada.

Advisors' Opinion:

• [By Sara Murphy]

  A recent report from sustainable business advocate Ceres found wide discrepancies in disclosure quality among oil and gas majors. Ceres found that BP (NYSE: BP  ) , Suncor (NYSE: SU  ) , and Eni (NYSE: E  ) provided the best disclosure overall, while ExxonMobil (NYSE: XOM  ) and Apache (NYSE: APA  ) did the worst.

• [By Arjun Sreekumar]

  For instance, Total SA (NYSE: TOT  ) recently threw in the towel on its Voyageur�Upgrader project, a 200,000-barrels-a-day facility that was designed to "upgrade" bitumen into crude oil. It sold its 49% stake in Voyageur to its joint venture partner, Suncor Energy (NYSE: SU  ) , for $500 million, arguing that the project was "no longer justified from a strategic and economic" standpoint. Not long after, Suncor also decided to abandon the project, for which it took a C$1.5 billion write-down.

• [By Tyler Crowe]

  According to former Suncor Energy (NYSE: SU  ) CEO, Rick George, oil sands producers need to do a better job improving the image of this particular type of oil. While the unflattering image that oil sands production has among the general public is probably not helping, there are much bigger fish for oil sands producers to fry. Increased operating costs, labor shortages, and a lack of takeaway capacity are just a few of the major problems that oil sands producers need to address to get the most from this emerging energy source.

• [By Jonathan Yates]

  There has been a great deal of concern about the United States suffering from a "lost generation" as Japan has now for several. For investors in oil, this has certainly not been the case: A recent article in The Wall Street Journal noted that oil has risen 310% (Brent Crude) over the last decade. The future looks equally promising for investments in the sector such as ConocoPhillips (NYSE: COP), Suncor Energy (NYSE: SU), Americas Petrogas (BOE.V), and Octagon 88 (OTCBB: OCTX).

Hot High Tech Companies To Watch In Right Now: Telephone and Data Systems Inc. (TDJ)

Telephone and Data Systems, Inc., a diversified telecommunications service company, provides wireless and wireline telecommunications services in the United States. The company�s wireless services comprise postpaid and prepaid service plans, which consist of voice minutes, messaging, and data services; national consumer plans; business rate plans; smartphone messaging, data, and Internet services to access the Web, e-mail, social network sites, text, picture and video messages, and turn-by-turn GPS navigation, as well as to browse and download various applications; and data services, including news, weather, sports information, games, ring tones, and other services. It provides wireless devices, such as handsets, modems, and tablets; and a range of accessories comprising carrying cases, hands-free devices, batteries, battery chargers, and memory cards, as well as wireless device repair services. The company also offers voice services, including local and long-distance tel ephone service, voice over Internet protocol, voice mail, caller ID, and call forwarding services; broadband services comprising digital subscriber lines and other high-speed Internet data services; network access services; hosted and managed services consisting of co-location, hosting, hosted application management, and cloud computing services; and satellite and terrestrial video services to commercial and residential customers and carriers. In addition, it provides printing and distribution services. As of December 31, 2011, the company served approximately 5.9 million wireless customers and 1.1 million wireline equivalent access lines. It sells its products through retail sales and service centers, direct sales, and independent agents, as well as through Website and telesales. Telephone and Data Systems, Inc. was founded in 1968 and is headquartered in Chicago, Illinois.

Hot High Tech Companies To Watch In Right Now: Progress Energy Resources Corp(PRQ.TO)

Progress Energy Resources Corp. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. The company focuses on natural gas and light oil projects in the Foothills region of northeast British Columbia and the Deep Basin of northwest Alberta. It has 1.9 trillion cubic feet of proved plus probable company interest reserves on a total land position of 1.25 million net acres. The company has a strategic partnership with PETRONAS, to develop Montney shale assets in the Altares, Lily, and Kahta areas in the Foothills of northeast British Columbia. Progress Energy Resources Corp. was founded in 1997 and is headquartered in Calgary, Canada.

Hot High Tech Companies To Watch In Right Now: Linn Energy LLC (LINE)

Linn Energy, LLC (LINN Energy) is an independent oil and natural gas company. The Company�� properties are located in the United States, primarily in the Mid-Continent, the Permian Basin, Michigan, California and the Williston Basin. Mid-Continent Deep includes the Texas Panhandle Deep Granite Wash formation and deep formations in Oklahoma and Kansas. Mid-Continent Shallow includes the Texas Panhandle Brown Dolomite formation and shallow formations in Oklahoma, Louisiana and Illinois. Permian Basin includes areas in West Texas and Southeast New Mexico. Michigan includes the Antrim Shale formation in the northern part of the state. California includes the Brea Olinda Field of the Los Angeles Basin. Williston Basin includes the Bakken formation in North Dakota. On December 15, 2011, the Company acquired certain oil and natural gas properties located primarily in the Granite Wash of Texas and Oklahoma from Plains Exploration & Production Company (Plains).

On November 1, 2011, and November 18, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On June 1, 2011, it acquired certain oil and natural gas properties in the Cleveland play, located in the Texas Panhandle, from Panther Energy Company, LLC and Red Willow Mid-Continent, LLC (collectively Panther). On May 2, 2011, and May 11, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Williston Basin. On April 1, 2011, and April 5, 2011, the Company completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On March 31, 2011, it acquired certain oil and natural gas properties located in the Williston Basin from an affiliate of Concho Resources Inc. (Concho). During the year ended December 31, 2011, the Company completed other smaller acquisitions of oil and natural gas properties located in its various operating regions. As of December 31, 2011, the Company operated 7,759 or 69% of its 11,230 gross productiv! e wells.

Mid-Continent Deep

The Mid-Continent Deep region includes properties in the Deep Granite Wash formation in the Texas Panhandle, which produces at depths ranging from 10,000 feet to 16,000 feet, as well as properties in Oklahoma and Kansas, which produce at depths of more than 8,000 feet. Mid-Continent Deep proved reserves represented approximately 47% of total proved reserves, as of December 31, 2011, of which 49% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 285 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.

Mid-Continent Shallow

The Mid-Continent Shallow region includes properties producing from the Brown Dolomite formation in the Texas Panhandle, which produces at depths of approximately 3,200 feet, as well as properties in Oklahoma, Louisiana and Illinois, which produce at depths of less than 8,000 feet. Mid-Continent Shallow proved reserves represented approximately 20% of total proved reserves, as of December 31, 2011, of which 70% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 665 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.

Permian Basin

The Permian Basin is an oil and natural gas basins in the United States. The Company�� properties are located in West Texas and Southeast New Mexico and produce at depths ranging from 2,000 feet to 12,000 feet. Permian Basin proved reserves represented approximately 16% of total proved reserves, as of December 31, 2011, of which 56% were classified as proved developed reserves.

Michigan

The Michigan region includes properties producing from the Antrim Shale formation in the northern ! part of t! he state, which produces at depths ranging from 600 feet to 2,200 feet. Michigan proved reserves represented approximately 9% of total proved reserves, as of December 31, 2011, of which 90% were classified as proved developed reserves.

California

The California region consists of the Brea Olinda Field of the Los Angeles Basin. California proved reserves represented approximately 6% of total proved reserves, as of December 31, 2011, of which 93% were classified as proved developed reserves.

Williston Basin

The Williston Basin is one of the premier oil basins in the United States. The Company�� properties are located in North Dakota and produce at depths ranging from 9,000 feet to 12,000 feet. Williston Basin proved reserves represented approximately 2% of total proved reserves, as of December 31, 2011, of which 48% were classified as proved developed reserves.

Advisors' Opinion:

• [By Matt DiLallo]

  Contango can also affect a company like LINN Energy (NASDAQ: LINE  ) which seeks to hedge all of its production for the long term. A good example of this can be seen last year when LINN Energy�bought the Jonah Field from BP (NYSE: BP  ) . Upon closing the deal, LINN hedged 100% of the expected oil and natural gas production through 2017. If the market were in contango at the time it could have had an impact on the future profits LINN expects to produce from that asset. It would mean that production sold just after closing would have netted a higher sale price than oil and gas that won't be produced until 2017. That's one reason why LINN had been using puts to hedge its production; it wanted to keep some of that upside.

Crowdfunding's Evolving: The Next Big 'Profitable' Thing

NEW YORK (TheStreet) -- It seems like ages ago that nascent start-ups like Facebook (FB) and LinkedIn (LNKD) were reinventing how billions of people around the globe would stay both socially and professionally connected.

Fast forward to today and we're witnessing the progressive unfolding of one of the most democratic ways for individuals and start-ups to fund their ideas and enterprises. This is a revolutionary movement with remarkable possibilities.

It's called "crowdfunding" and it now includes a company that has taken the concept to a new level. GATE Impact Investing is reaching out to socially conscious investors who want to participate in the financial success of companies that benefit humanity and the well-being of the world around us.

I spoke with GATE CEO Vince Molinari, before his two-day summit at the United Nations in New York (more on that later), and learned that this is no typical crowdfunding venture. GATE has created both a system and a trading platform for "investors who want their investments to make a positive difference" as the CEO described it. Molinari says GATE Global Impact "is an impact-investing focused, electronic, regulatory-compliant marketplace that provides market infrastructure and related services for the emerging impact-investment industry." It's all about making a positive financial "impact" in the world's many markets. This new industry, he says, involves "public and private investments with a sustainable social and/or environmental component that also may generate a healthy rate of financial return. All securities are offered through GATE US LLC," a New York-based broker dealer. Having cut his teeth in the world of financial services and capital formation, Vince Molinari and his partners wanted to create a technology-based trading platform, that as he described it, "enables access to new funding sources from across society and enterprises that offer innovative solutions to global challenges, will be able to connect capital to social impact and environment-related projects." Molinari and GATE's approach to raising funds is "based on a new ecosystem and financial integrity. I asked him what he meant by "financial integrity."

"Integrity is tied to transparency," he responded without hesitation. "Transparency and sustainable investment capital based on a humanitarian model" is what separates GATE Impact Investing from the other players in the crowdfunding genre. Crowdfunding the United Nations Way Integrity and transparency are part of the reason why CEO Molinari was able to form a collaborative partnership with the United Nations' Global Compact to feature select projects from the newly launched Social Enterprise Action Hub on its own Gateway Platform.

Hot Stocks To Buy Right Now

In a press release dated Thursday, we learned that the partnership between the UN Global Compact and GATE is "to be officially launched following the UN Global Compact Leaders Summit," which concludes Friday.

CEO Molinari explains, "The ability to integrate standards and metrics through the Gateway Platform will greatly increase cost efficiency and the enhanced visibility will create education and awareness of this emerging asset class. The objective of the partnership between GATE and Global Compact is to drive capital to those projects that need it most."

"With this collaboration, we are pleased to embark on a new, high-tech approach to development-project financing that is at the core of how modern financial capital will be delivered," said Molinari. "Together, the UN Global Compact's Social Enterprise Action Hub and GATE Global Impact's Gateway Platform will enable funding sources to find the global projects that are in need of capital and, for the first time, execute transactions on social enterprise. This represents a global paradigm shift in development economics" he went on to explain. Molinari said in our interview, the UN Global Compact provides a framework for businesses to align their strategies and operations with the universally accepted principles in the areas of human rights, labor, environment and anti-corruption. This launch is providing an unparalleled online platform for businesses to connect with potential partners to scale up projects on key global issues. It will provide not only a new trading platform but also greater connectivity to potential investors in order to increase exposure, resulting in accelerated and broader funding of worthwhile enterprises.

The Gateway Platform is a robust, end-to-end solution that supports evolving financial regulatory frameworks and provides information and data levels to facilitate strategic decision-making, regarding capital deployment.

"We call this 'actionable knowledge' for buyers and sellers of Impact Investments -- investments that have the ability to generate a measurable social and/or environmental benefit alongside a potential for financial return," Molinari added.

"A key advantage of the Gateway Platform lies in its technology suite, which is able to provide investors and project owners with the information and metrics they need to transact, settle and clear assets, while delivering exceptionally high standards of market transparency and security. All securities are offered through GATE US, a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC)."

This not only adds credence to the crowdfunding process, but it allows investors to both invest in good causes and experience the possibility of a positive return on their investment. It brings a new layer of meaning to that famous financial metric "Return on Investment," or ROI. In the weeks and months ahead, I intend to explore this promising new genre GATE is pioneering. Being an advocate for accountability and the velocity of money, I envision the birth of a new asset class that allows investors to invest in "securities" that benefit their consciences and their wallets. The UN Global Compact and GATE are highlighting their new partnership at the UN Global Compact Leadership Summit: Architects of a Better World" into Friday. Click here to read the press release and learn more of the exciting details. By the way, GATE has worked with publicly traded industry leaders such as Dow 30 company Microsoft (MSFT) and one of the mavens of the insurance and financial industries Prudential Financial (PRU), which have been supportive of GATE's mission and uniqueness. This may suggest that someday GATE Impact Investing may succeed in its mission to the point that it may become an investment security, just like the big social networking companies are today. Time will tell. In the meantime, I'll be investigating the potential. At the time of publication Courtenay was long MSFT. Follow @m8a2r1 This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Marc Courtenay is the founder and owner of Advanced Investor Technologies, LLC, as well as the publisher and editor of www.ChecktheMarkets.com. Courtenay holds a Master's of Science degree in Psychology from California Polytechnic State University, and is a former senior vice-president of Investments for two major brokerage firms. He's been a fiercely independent investment "investigator" and a consulting contributor to the investment publishing world for over 30 years. In addition to his role as an investment publisher and analyst, he serves as a marketing consultant to the investment media industries. In his role as a financial editor, he specializes in unique investment strategies, overlooked stock investments, energy and resource companies, precious metals, emerging growth companies, the prudent use of option strategies,real estate related opportunities,wealth preservation, money-saving offers, risk management, tax issues, as well as "the psychology of investing". Because of his training and background in Clinical Counseling and Psychology, he enjoys writing about investor behavior, the �herd mentality, how to turn investment mistakes into investment breakthroughs and the stock market's behavioral trends and patterns. Follow @m8a2r1

Detroit emergency manager defends June talk to …

DETROIT — Detroit's emergency manager said Monday that he did not intend to mislead city workers and retirees June 10 when he said pensions were untouchable.

U.S. Bankruptcy Judge Steven Rhodes interrupted emergency manager Kevyn Orr to ask what he did mean at the meeting in which he used the word "sacrosanct."

STORY: Bankruptcy case hot topic at law seminar
DAY 5: Mich. had no plans to help Detroit financially

"I would say that his (a pensioner's) rights are in bankruptcy now," Orr said in his fourth day of testimony on Detroit's bankruptcy. "I would say that his rights are subject to the Supremacy Clause of the (U.S.) Constitution."

"That's a bit different than 'sacrosanct,' isn't it?" Rhodes said.

The jousting between Rhodes and Orr is one of several testy exchanges that have occurred between the judge who will decide whether Michigan's largest city can proceed with its Chapter 9 bankruptcy petition and the emergency manager with broad powers over the city's finances appointed by Gov. Rick Snyder.

Orr also said he warned those who at the June 10 community meeting that pension benefits had been cut in some bankruptcy cases. At that meeting, Orr told the audience that the state constitution and state case law says that vested pension rights are sacred, unassailable.

Later, Rhodes prevented Orr from testifying further about the U.S. Constitution's Supremacy Clause, which says that federal law trumps state law.

DAY 4: Mich. gov calls bankruptcy right decision
DAY 3: State planned early for bankruptcy

Snyder appointed Orr as Detroit's emergency manager in March. At the time, Orr said bankruptcy was not inevitable.

The city of Detroit filed that largest municipal bankruptcy filing in U.S. history July 18 but now must prove that it is eligible for the leverage that a bankruptcy case gives a city over its creditors. The city has argued that it was running out of money earlier this year and was facing lawsuits from a number of creditors as its! debt and long-term obligations reached $18 billion.

Most of Detroit's unions have challenged the city's ability to seek bankruptcy protection and are fighting to protect the pensions of 23,500 retirees as well as active employees.

DAY 2: Detroit couldn't send out bills on time
DAY 1: City, unions clash on bankruptcy

Several days after Orr's June meeting with retirees, he told creditors that the city's pension funds are underfunded by about $3.5 billion, which would require the city paying $200 million to $350 million annually to bring the balances up where they should be. He also told the creditor group that his restructuring plan didn't include those contributions.

One of the conditions for eligibility is to negotiate in good faith with creditors before filing for bankruptcy.

Creditors have been seeking to prove that Detroit lawyers failed to negotiate in good faith with unions, bondholders and insurers. On Monday, Lynn Brimer, a lawyer representing retired police officers, also suggested that both the city's lead restructuring law firm, Jones Day, and its emergency manager, Orr, planned to file for bankruptcy from the start of their involvement with the city.

Brimer showed Orr e-mail from Feb. 11 that said, "I am not sure that an immediate Chapter 9 is superior. If we can get time, it would be better. The city is not ready for Chapter 9 — at least not the one we would like."

Orr said that e-mail shows that "it might be appropriate to negotiate with creditor," and disagreed that Jones Day viewed bankruptcy as inevitable.

Day 6 live coverage from the federal courthouse in Detroit

Get all the details as they happened from this Twitter blog by Free Press reporters Brent Snavely and Nathan Bomey.

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Prestige Brands Acquires Care Pharma - Analyst Blog

Best Bank Stocks To Buy For 2014

Prestige Brands Holdings, Inc. (PBH) recently announced that it has acquired Australia-based Care Pharmaceuticals Pty Ltd. Effective from Jul 1, 2013, this privately held marketer and distributor of over-the-counter (OTC) healthcare products became a part of Prestige Brands. Financial details of the deal were not provided. Prestige Brands saw its share price moving up by 10.9% on the news.

This acquisition will strengthen Prestige Brands' portfolio with Care Pharma's principal brand Fess and other brands including Painstop, Rectogesic and Fab. Prestige Brands funded this acquisition through an existing credit facility and cash on hand.

We note that Prestige Brands is heavily into acquisitions. The company acquired 17 brands in 2012 and 6 brands in 2011 in the OTC Healthcare category, supplementing its existing OTC Healthcare brands.

On Jan 31, 2012, the company acquired 15 OTC healthcare brands, including related contracts, trademarks and inventory from GlaxoSmithKline plc (GSK) and its affiliates. The other two brands, namely, Debrox and Gly-Oxide, were acquired on Mar 30, 2012.

On Nov 1, 2010, the company acquired Blacksmith Brands Holdings, Inc., which owned five brands, namely, Efferdent, Effergrip, PediaCare, Luden's and NasalCrom. On Jan 6, 2011, the company acquired some assets comprising the brand Dramamine in the US.

Prestige Brands carries a Zacks Rank #2 (Buy). The latest acquisition is a great strategic fit for the company. The two companies have similar business models and a common culture focusing on building brands, innovation and new products. It will also help Prestige Brands in expanding its business in the Asia Pacific region.

Right now, companies like Santarus, Inc. (SNTS) and Jazz Pharmaceuticals (JAZZ) look well positioned with a Zacks Rank #1 (Strong Buy).

Is a Great Company Necessarily a Great Investment?

A director at Deloitte Services LP and coauthor of The Three Rules: How Exceptional Companies Think, Michael Raynor joins the Fool to share his findings about what makes a company successful for the long haul.

In this video segment, Michael discusses the diversity of the Miracle Worker companies and how the fundamental rules allow companies to follow the same "recipe" using different ingredients. The full version of the interview can be seen here.

A full transcript follows the video.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Brendan Byrnes: If an investor is looking at your book and saying, "How do I go over that methodology? How do I look at companies this way?" what would you say to them when they're trying to evaluate a company?

Michael Raynor: That's a great question.

First of all, I'd say that our work is fundamental in nature. We're looking at company fundamentals and we try to understand companies that are great companies, rather than necessarily identifying companies that are going to be great investments.

Now, it does turn out, however, that companies that deliver superior profitability tend to have better total returns to shareholders than companies that don't deliver superior profitability. Being an adherent to the three rules, as far as our data are concerned, suggests good things for equity holders.

Brendan: I think you mentioned there are 18 companies in that upper echelon that you found. What's the one that impressed you the most?

Michael: That's an interesting question. I hadn't really thought about the "top of the Pops." I think they all impressed me in very different ways because they all had their own unique formula for delivering exceptional performance.

Again, that's why rule No. 3 is There Are No Other Rules. It's all about being better and driving revenue. In a sense, every company's got the same recipe but fundamentally different ingredients. It was the uniqueness of every one of them that I found so impressive and, frankly, so surprising.

Brendan: Could you maybe walk us through a few examples of specific companies amid those 18?

Michael: Sure. We have three categories of Miracle Workers. I'll give you one of each.

In our "Kept It" category -- these are companies that have been consistently miracle workers over their entire observed lifespan -- Abercrombie & Fitch (NYSE: ANF  ) is one that has really impressed us with their ability to adhere to those two rules, really through thick and thin, sometimes taking a lot of heat for it from the investor community, but sticking to their guns in ways that we find pretty impressive.

There are "Lost It" Miracle Workers; companies that were great for a while but then kind of came off the rails. A company like Maytag, for example, would fall into that category. They spent 20 years, from the middle '60s to the middle '80s -- one of the longest streaks of superior performance in our entire database -- but then really came off the rails, kind of lost their way, were unable to stay close to the rules.

They were acquired by Whirlpool (NYSE: WHR  ) , ultimately. Curiously, a lot of what you see Whirlpool doing with the Maytag brand looks suspiciously close to following the rules again, so that's promising, at least in our view.

Then finally, "Found It" Miracle Workers, companies that bounced around for a while -- kind of like wayward teenagers -- and then found their way. A company like Linear Technology (NASDAQ: LLTC  ) , for example, a semiconductor manufacturer, would fall into that category. It started out as a second source supplier for the USDOD [and] now makes a vast array of highly customized, very highly differentiated analog microprocessors.

Again, enormous diversity, but what ties them all together: Better Before Cheaper and Revenue Before Cost.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Small Cap Trulia Inc (TRLA): Should You Buy As Insiders Sell? Z & MOVE

Small cap online real estate listings stock Trulia Inc (NYSE: TRLA) jumped 8.52% yesterday and has doubled since the start of the year, but insiders have been selling - meaning its time to take a closer look at the stock along with the performance of peers like Zillow Inc (NASDAQ: Z) and Move Inc (NASDAQ: MOVE). So what should outside investors do with Trulia Inc?

What Is Trulia Inc?

Small cap Trulia Inc gives home buyers, sellers, owners, and renters the "inside scoop" on properties, places and real estate professionals. More specifically, Trulia Inc offers 15 mobile apps across multiple platforms, including dedicated apps for renters, mortgage seekers and agents plus the company attracts more than 35 million unique house hunters every month. In addition and last August, Trulia Inc completed the acquisition of Market Leader which offers comprehensive suite of SaaS solutions, including CRM and lead management tools. So for agents, Trulia Inc offers the first ever end-to-end offering, including best-in-class marketing tools and the broadest suite of software to help agents build and manage their business.

As for potential peers or benchmarks, Zillow Inc has a home and real estate marketplace with a database of more than 110 million US homes and the largest real estate and rental advertising networks in the US that's in partnership with Yahoo! Homes! while Move Inc is an online real estate and operator of the Move Network of real estate web site for consumers and real estate professionals with more than 20 million monthly visitors.

What You Need to Know or Be Warned About Trulia Inc

Its not that clear why Trulia Inc suddenly jumped higher in afternoon trading yesterday on no apparent company specific news, but just released housing data did show that housing starts had surged to their highest in nearly six years in November. On the other hand, existing home sales lost steam in November thanks to higher interest rates and a tighter supply of homes for sale. In fact, sales dropped for the third straight month to a seasonally adjusted annual rate of 4.9 million - down 4.3% from October and down 1.2% from a year earlier.

Earlier in the week, it was reported that hedge fund Citadel Advisors LLC and its affiliates (including Citadel Advisors Holdings LP and Citadel GP LLC) had accumulated a 6.3% stake in Trulia Inc with the 2.41 million Trulia shares owned by the company and its affiliates worth about $75.3 million at Monday's closing price of $31.18 per share. In addition, there was also an 8-k filing noting that Trulia Inc had entered into a purchase agreement with J.P. Morgan Securities LLC and Deustsche Bank Securities Inc. for the sale of $200 million aggregate principal of 2.75% Convertible Senior Notes due 2020 along with an over-allotment option to purchase, (within 30 days from the date of the Purchase Agreement) up to an additional $30 million aggregate principal amount of the Notes on the same terms and conditions.

However, it was also reported that CEO Peter Flint had sold 2,400 shares at $32.64 per share on December 19 (he still owns 1,417,959 shares) plus Yahoo! Finance reveals over a dozen insider sales in this month alone.

Dec 16, 2013	FLINT PETEROfficer	8,000	Direct	Automatic Sale at $30.98 - $31.79 per share.	251,0002
Dec 16, 2013	INKINEN SAMIDirector	5,800	Direct	Automatic Sale at $30.97 - $31.76 per share.	182,0002
Dec 9, 2013	FLINT PETEROfficer	8,000	Direct	Automatic Sale at $30.59 - $31.23 per share.	247,0002
Dec 9, 2013	INKINEN SAMIDirector	5,800	Direct	Automatic Sale at $30.59 - $31.3 per share.	179,0002
Dec 2, 2013	INKINEN SAMIDirector	5,800	Direct	Automatic Sale at $31.80 - $32.61 per share.	187,0002
Dec 2, 2013	FARNEDI DANIELEOfficer	1,250	Direct	Automatic Sale at $31.74 - $32.76 per share.	40,0002
Dec 2, 2013	DARLING SCOTTOfficer	2,000	Direct	Option Exercise at $5.55 per share.	11,100
Dec 2, 2013	LEVINE PAUL M.Officer	10,000	Direct	Option Exercise at $4.29 per share.	42,900
Dec 2, 2013	DARLING SCOTTOfficer	2,000	Direct	Automatic Sale at $31.80 - $32.56 per share.	64,0002
Dec 2, 2013	FARNEDI DANIELEOfficer	1,250	Direct	Option Exercise at $0.15 per share.	187
Dec 2, 2013	LEVINE PAUL M.Officer	10,000	Direct	Automatic Sale at $31.81 - $32.62 per share.	322,0002
Dec 2, 2013	WALDORF GREGORYDirector	3,623	Direct	Automatic Sale at $31.78 - $32.62 per share.	117,0002
Dec 2, 2013	FLINT PETEROfficer	9,200	Direct	Automatic Sale at $31.80 - $32.64 per share.	296,0002

 

Why would insiders be selling? Near the end of October, Trulia Inc reported that third quarter revenue more than doubled to $40.3 million, net income of $7 million verses a loss of $1.7 million and expected 4th-quarter revenue of $48.5 to $50 million verses a previous estimate of $48.3 million. All of these figures take into account the numbers from the recent Market Leader acquisition. So it does not look like the company itself is facing any trouble beyond headwinds that are also beyond its control in the housing sector.

Share Performance: Trulia Inc vs. Z & MOVE

On Thursday, small cap Trulia Inc jumped 8.52% to $33.38 (TRLA has a 52 week trading range of $15.43 to $52.71 a share) for a market cap of $1.24 billion plus the stock is up 105.5% since the start of the year and up 44.9% for retail investors since September 2012. Here is a look at the long term performance of Trulia Inc, Zillow Inc  and Move Inc:

As you can see from the above chart, all three stocks seemed to take off this year but have been trending downward over the past few months.

Finally, here is a look at the latest technical charts for all three online real estate stocks:

The Bottom Line. I probably would not be overly concerned about insiders in Trulia Inc trying to cash out on some of their profits from this year's run up, but I would be keeping a close eye on both the housing market itself and competitors like Zillow Inc  and Move Inc for any signs of a definite slowdown that will impact the entire sector.

AT&T vs. Verizon: Which Is the Better Investment?

Hot Stocks For 2014

The telecommunications industry is one of the most profitable markets in the world, and the leaders in that market have long proven themselves to be solid stock investments.

Two of those leaders, AT&T (NYSE: T) and Verizon (NYSE: VZ), are fantastic stock picks relative to the rest of the top companies in the industry, and when you compare them side-by-side with one another you are likely to find one to be a clear winner over the other.

Which one comes out on top may depend on your own analysis (and maybe your personal service provider too), but we'll try to help give you some solid information on both -- so you can decide Who Would You Rather…AT&T or Verizon?

Both stocks have had a very active 2013, with AT&T seeing its highest numbers in February, March, and April and Verizon seeing theirs around the same time in April, May, and June. AT&T saw an increase in shares of about 15 percent throughout that three month period, while Verizon's shares rose roughly 12 percent during their best three months.

That being said, conventional wisdom (and a simple check of the numbers) might tell you AT&T is probably the better stock. But Verizon has been the overall leading company in the market for the last several years, and still is. So does it stand to reason that Verizon is the better stock, even though AT&T has had a better year in 2013? Not necessarily.

Verizon spent the last 18 months putting together a number of partnerships, their most prominent arguably being with Comcast (NASDAQ: CMCSA). Verizon has been heading up sales of Comcast's cable TV and broadband division, and Comcast has been selling Verizon's wireless products and services. In so doing, both companies have established a loyal customer base that they might not have had the partnership not been in place.

Though that partnership was terminated this past October, it seems both companies reaped benefits from the mock-merger. With customer numbers being as high as they are, as a result of Verizon's partnerships with Comcast and other strong companies like Time Warner Cable (NYSE: TWC), they continue to build a strong case as the better stock.

Then there is the issue of mobile web service. Back in the summer of 2012, Verizon began offering customers 4G LTE wireless connectivity in more than 300 markets -- while AT&T was offering it in fewer than 40.

It wasn't long before AT&T got on their horse and started offering their 4G LTE service in more markets, but by the time they did Verizon had increased its market share as well, and the gap has stayed largely the same ever since. They tried to make up the difference by offering the 4G HSPA+ connectivity in other markets, as opposed to the LTE service, but that actually ended up doing more harm than good -- since HSPA+ is a slower technology than the LTE.

At the end of the day we can't tell you which is the better stock to buy -- or more precisely, we shouldn't tell you.

Only you can decide which of these stocks you would rather add to your portfolio. But hopefully we've helped you to point out the pros and cons of each stock.

Posted-In: mobile web service telecommunications telecommunications industryNews Guidance Markets Tech Best of Benzinga

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Will TIBCO Keep Winning Against Oracle and IBM?

TIBCO Software (NASDAQ: TIBX  ) will release its quarterly report on Thursday, and investors have looked increasingly uncertain about whether the enterprise infrastructure and IT integration software maker can continue to produce solid share-price gains. Even though the company has managed to fend off much larger rivals IBM (NYSE: IBM  ) and Oracle (NYSE: ORCL  ) thus far, TIBCO has a long way to go before it can ultimately declare victory over them and the rest of its competition.

TIBCO has taken a novel approach in trying to prove to its customers that it offers better value to its customers. Rather than competing against IBM and Oracle on price, which could ultimately be a losing battle against deeper-pocketed rivals, TIBCO instead has sought to provide the highest-quality products available and then convinced its client base that those products are worth paying up for. So far, that has been an effective way to build a viable niche in the industry, but will Oracle and IBM respond with new weapons that TIBCO will have to defend against? Let's take an early look at what's been happening with TIBCO Software over the past quarter and what we're likely to see in its report.

Stats on TIBCO Software

Analyst EPS Estimate	$0.39
Change From Year-Ago EPS	(7.1%)
Revenue Estimate	$312.45 million
Change From Year-Ago Revenue	5.4%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

What's next for TIBCO earnings this quarter?
Analysts have had mixed views on TIBCO earnings in recent months, cutting their November-quarter estimates by a penny per share but boosting full-year fiscal 2014 projections by 2.5%. The stock has been relatively stagnant, losing 2% since mid-September.

TIBCO's August quarter provided some sweet revenge for the company against its rivals, with total revenue climbing more than 6%. The U.S. and Europe were key victories, with sales rising 11% and 12% respectively in those regions. In particular, CEO Vivek Ranadive pointed to improving sales execution as a key component of the company's success, with TIBCO having stopped losing sales to IBM and Oracle.

Yet in many ways, TIBCO is merely a beneficiary of providing the tools that just about every enterprise now realizes it needs in order to compete effectively. The economics of data-collecting businesses have proven themselves out, as companies with business models that seemed unsustainable only a few years ago have now started to monetize the valuable information they've been able to glean. By providing the infrastructure and tools that its customers need to realize revolutionary vision in their respective industries, TIBCO's aiming to be the facilitator of massive changes within multiple industries, all stemming from more effective use of technology.

Still, TIBCO has a long way to go. IBM and Oracle both know that the growing Asian markets will be a key component of their respective growth trajectories, and TIBCO can help customers take better advantage of opportunities in Asia in two very different ways. First, collecting data on Asian companies can help TIBCO clients improve their efforts there. But investors can also look at the success that American and other non-Asian companies have had in the region, with an eye toward emulating their best practices while adding their own innovations.

In the TIBCO earnings report, look to see whether the company continues to enjoy sales successes over IBM and Oracle. As long as TIBCO can convince investors that its products add enough value to justify paying premium prices for them, future growth should continue at least until the next transformative event in data analytics once again upends the playing field for global business.

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

Click here to add TIBCO Software to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Markets in limbo as debt deadline nears

NEW YORK — There's some signs of distress in financial markets — but no panic — as political gridlock grinds on and at least one ratings agency warned of a U.S. credit downgrade.

Still, investors are nervous, and financial markets are in limbo as they wait to see if Congressional Democrats and Republicans can strike a budget deal in time to avoid a debt crisis that could cause the U.S. to default on its debts for the first time.

The clock is ticking closer to the key Oct. 17 deadline that will either return sanity to Wall Street or cause potential chaos. On Thursday, the U.S. won't be able to borrow any more unless lawmakers act to extend the debt ceiling. Barring an agreement, the U.S. won't be able to pay all its bills.

WARNING: Fitch issues warning on U.S. credit rating

The biggest risk is if sometime after Oct. 17, the U.S. misses interest or principal payments on government debt it has already issued. Such a default could undermine the world's confidence in a financial asset that's long been viewed as the safest investment on Earth. Due to political brinkmanship, Fitch Ratings cited the potential hit to confidence as a reason it placed the USA's AAA rating on "rating watch negative." Standard & Poor's, of course, downgraded U.S.debt to AA+ in the summer of 2011 after the last debt-ceiling fight.

"The problem with the U.S. not paying investors on time is that it can destroy the very special status of Treasuries as a super-safe, liquid investment," says Boris Rjavinski, an interest rate analyst at UBS. "Treasuries are like an invisible glue that binds all of the world's financial markets. We can have a pretty bad chain reaction if there's a default."

The fallout of a U.S. default would be so unpredictable and potentially damaging to the financial system that few people on Wall Street think Congress would let such a self-inflicted wound occur.

"We have to assume that it is in no one's interest for the government to default," says Rob McIver, co-portf! olio manager at Jensen Quality Growth Fund.

That's why the stock market has navigated Washington gridlock nicely so far. Despite a 133-point drop for the Dow Jones industrials on Tuesday after Congress failed to sign a deal, the Dow is still up 0.25% during the 15-day government shutdown. If the deadline passes without a deal, however, stocks would likely suffer a "strong negative reaction," says McIver. If a deal gets done, the market will refocus its attention on corporate earnings and economic growth, he adds.

Best Cheap Stocks For 2014

But there have been more concrete signs of worry in the U.S. government bond market, especially one-month Treasury bills that will come due between Oct. 17 and early November, when the nation is expected to run short of cash.

Many banks and big investors have been selling these short-term instruments that could be hit by a potential default, says Bill Hornbarger, chief investment strategist at Moneta Group.

"Everyone is selling stuff that matures in October," he says.

A Treasury bill that matures on Oct. 24, seven days after the nation's ability to borrow ends, has seen its yield jump from roughly 0% in mid-September to more than 0.40% in recent days, according to a Bloomberg chart supplied by Rjavinski.

The issue isn't that investors don't think they will get paid back eventually, says Rjavinski; it is that they won't get paid on time.

"It's telling us investors are getting nervous," says Rjavinski.

CFPB Crackdown on Deferred Interest Will Have Major Repercussions for Investors

Top 10 Penny Companies For 2014

The writing is clearly on the wall for any company that offers deferred interest financing, following the Consumer Financial Protection Bureau’s announcement that GE Capital (NYSE:  GE) must refund as much as $34.1 million to customers who fell victim to its deceptive credit card enrollment tactics. That’s big news for investors because a number of major banks and roughly half of the major retailers that offer financing plans use deferred interest, according to a recent CardHub study.

Deferred interest is a bait-and-switch financing gimmick that lures consumers with the appeal of a 0% introductory interest rate, yet allows finance charges to be retroactively assessed to the original purchase amount if a card holder misses a single payment or fails to pay off their full balance by the end of the intro term. In contrast, traditional 0% credit card offers apply interest only to whatever balance remains at the time regular rates take effect. 

It’s often hard for consumers to tell the difference between the two types of financing arrangements because 41% of the companies that use deferred interest do not clearly disclose that fact, instead hiding the deferred nature of things in fine print. The result is an environment in which unsuspecting consumers can easily see their financing costs increase by more than 27 times simply as a result of paying a day late.  I’m sure you can imagine how unwelcome a surprise that must be.

The objective for investors is to avoid being fooled as well. Deferred interest financing obviously provides sticker appeal and is effective in boosting short-term revenue as well as outstanding balances – both of which are key metrics for evaluating a company. However, you also have to worry about the resulting consumer backlash as well as the sustainability of a business model based on trickery. 

The personal finance industry, and the credit card space in particular, has made big strides toward transparency since the Great Recession, and regulators seem to have put deferred interest in their crosshairs. 

“Deferred-interest products can be risky for consumers in the best of circumstances,” CFPB Director Richard Cordray said in announcing the penalties levied against GE and its subsidiary CareCredit. “In October, we issued a report to Congress on the CARD Act and the credit card market, and we identified deferred-interest products as an area of concern. … We will continue to monitor these products carefully, and most especially we will not tolerate financial companies that take advantage of patients and their loved ones.”

So, which big-name companies are in for a rude awakening when deferred interest is finally done away with?  The major retailers in the deferred interest game – a list that includes the likes of Apple (NYSE: AAPL), Best Buy (NYSE: BBY), and Amazon (NASDAQ: AMZN) – are laid out in the infographic below.  The financial institutions that most actively facilitate their deception are Citi (NYSE: C) and – surprise, surprise – GE Capital.

 

 

 

 

 

At the end of the day, recent deferred interest developments merely underscore the importance of looking beyond the metrics when evaluating a company and instead questioning how a business makes its money as well as for how long it can reasonably expect to do so. After all, things always seem alright until they aren’t, and you don’t want to be the one left holding the liability when the music ultimately stops.

 

 

Odysseas Papadimitriou is CEO of the personal finance websites WalletHub & CardHub.  He previously served as a senior director in Capital One’s credit card department.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets

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Is Coca-Cola 'Faith-Based' Investing at its Finest?

Writing in the January 2014 issue of Kiplinger's Personal Finance magazine, columnist James Glassman picked Coca-Cola as a favorite for 2014.

Although it did not perform as well as other selections for 2013, Glassman described Coca-Cola (NYSE: KO) as, "a classic 'faith-based stock' that is a great company that, by means that can't be predicted, always seems to bounce back."

There are others like that, such as ExxonMobil (NYSE: XOM) and Wal-Mart (NYSE: WMT).

Glassman is very bullish on the culture of Coca-Cola, which allows it to "always solve its problems." About the brand of Coca-Cola, legendary investor Warren Buffett once stated that, "If you gave me $100 billion and said, 'Take away the soft-drink leadership of Coca-Cola in the world', I'd give it back to you and say it can't be done."

Not surprisingly, Buffett is a major shareholder of Coca-Cola.

The dividend yield of Coca-Cola is always a major attraction for Glassman. For the average member of the Standard & Poor's 500 Index, the dividend is around 1.9 percent. The dividend yield for Coca-Cola is nearly 50 percent higher, at about 2.8 percent.

In addition, Coca-Cola, as with ExxonMobil and Wal-Mart, are "Dividend Aristocrats;" publicly-traded companies that have increased the dividend annually for at least 25 consecutive years. A history like that is something for shareholders to put faith in that it will happen every year. Again, not surprisingly, Warren Buffett is a major shareholder in Wal-Mart and ExxonMobil, too.

Coca-Cola does not simply rely on faith to produce its 18.50 percent profit margin (about twice the market average).

It spends more than others to advertise and market. A current campaign in China entails billions to increase its presence, through acquisitions, if needed.

Like Glassman, investors should have faith that Coca-Cola will outperform others with long term returns for its shareholders.

Posted-In: dividend aristocrats food and beverage James Glassman soft drink industryLong Ideas News Emerging Markets Dividends Dividends Restaurants Markets Media Trading Ideas General

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Morgan, Merrill, UBS Tweak Pay Packages for 2014

The markets have been good to investors this year, leading many to wonder how they will stack up in 2014. For many wirehouse reps, the big question is what next year means for their payout grids. 

The wirehouse firms don’t want to cut advisor compensation for fear that they will leave, but they are still under pressure to improve profits. “The challenge is how to show shareholders that they are saving money while not angering advisors enough to run for the door,” said Danny Sarch, founder and head of Leitner Sarch Consultants, in an interview with ThinkAdvisor.

These firms also are trying to capture and influence as many client assets as possible, as RIAs do. Some RIAs charge for assets that are held away from their operations, like within a 401(k) plan or trust, Sarch explains. But, if clients agree, the some wirehouse advisors can charge a fee for advising them on how to best invest assets held away from their firm.

Tweaking comp plans is no easy task, the recruiter says. It’s a tough balancing act between “what the firms want to accomplish, which is saving money and driving certain behaviors, and the risk of losing advisors and their revenue because your changes are too harsh.”

Experts see Morgan Stanley as the firm making the biggest changes to its payout grid in 2014. Many of its 16,500 advisors, who haven’t seen major grid changes over the past 10 years, are now being asked to raise their performance by 10% to jump to the next payout level. For example, to reach the 41% payout level, an advisor has to bring in $440,000 in 2014 vs. $400,000 in 2013.

In general, grid payouts at Morgan Stanley (MS) range from 28% to 47% of advisor sales. However, advisors who have been with the firm for nine years or more and have production of less than $300,000 get 20%.

Morgan Stanley advisors with clients who take loans from the bank can be considered for bonuses that go as high as $202,500, a big jump from 2013, according to the firm. Also, advisors will be able to get full payout on client households with less than $100,000, provided the households are enrolled in the OneView account aggregation service and have outside assets of at least $150,000.

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Overall, the company says, its growth awards for 2014 have three components tied to increases in assets, lending and revenue. The awards are available to more reps (not just those in the top 40%) for revenue growth of $300,000. The top combined award for the asset and lending components is $300,000, while the revenue-growth award has no cap and can reach 5% of total revenue.

Merrill Lynch (BAC) says it isn’t tinkering with its 2014 payout grid. It is, though, adding an award to expand its team-focused business.

To be eligible for the award, a team must double its revenue over five years from its 2013 revenue baseline. The award can total up to 10% of a team’s incremental revenue growth. An enhancement to the strategic growth award for advisors aims to boost trust-related fees. It includes double credit for positive fee-based flows tied to trusts.

And Merrill rolled out a plan that allows advisors 55 and older to stay at Merrill for several years in a senior consultant role as their clients transition to other team members.

At UBS-Americas (UBS), the emphasis is on boosting the number of relationships associated with financial plans and the flow of net new assets, and the comp changes go into effect July 1.

Wealth management awards at UBS will be given in two parts. Awards of up to 1.75% of production will be given for advisory fees and up to 4% for revenues tied to relationships covered by financial plans; production to be considered for the financial planning award will be capped at 50% of fees and commissions tied to the plan.

Awards for net new assets will be given if these assets total $10 million and up, or $5 million and up including a new client relationship of $1 million or higher. The awards are capped at 5% of production; advisors can receive 15 basis points for the first $50 million, and some mortgages and other credits lines continue to be included in the qualifying grid. In addition, expense allowances for many UBS advisors will expand by $500 to $2,000 a year.

UBS advisors can earn payouts between 28% and 45% of sales. But starting next year, the payout threshold will go up at some levels. For instance, a 39% payout that previously required $400,000 in sales will now require $425,000. The UBS-Americas payout grid hasn't changed over the past four years, experts say.

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Check out Wirehouses Held Prisoner in Broker Bonus Wars on ThinkAdvisor.

A look at IHG’s new EVEN wellness hotels

ATLANTA — Don't expect to find a front desk when you walk into an EVEN Hotel, a new wellness-oriented brand set to debut next year.

Guests will instead be directed to a "Well-ness Island," where an employee will hand them either cool or heated hand towels, depending on the season. They'll also get a cup of water with a slice of lemon or lime to sip. When checking in, they can forgo the traditional room key card for a bracelet that serves the same function, which they can wear while running.

"Having a drink and being welcomed in a refreshing way is very important," says Adam Glickman, head of InterContinental Hotels Group's new EVEN Hotels brand.

Near the island, somewhere off the lobby, guests will see a 1,200-square-foot or more athletic studio covered in frosted glass so they can run and lift weights without worrying that they're putting on a show. It will be divided into three zones for cardio, strength training and mat exercises.

Many major hotel chains in recent years have launched programs to appeal to the increasingly health-conscious traveler. But EVEN Hotels stands out as a midpriced chain that is entirely focused on wellness and fitness. IHG's research shows that there are 17 million travelers who want their hotels to help them accommodate their healthy lifestyle needs, Glickman says.

"Wellness isn't a one-size-fits-all," Glickman says. "It's not just about building a super gym or a small spa. Wellness is about balance."

At IHG's Americas headquarters, all the features that EVEN hotels will offer guests to sleep, relax, eat well and exercise are on display in a 3,000-square foot "Brand Experience Space." The space is a glimpse at what guests can expect when they check into the first two EVEN Hotels, scheduled to open next spring in Rockville, Md., and Norwalk, Conn. Three more will debut in New York City in mid-2015.

An area designed to look like a lobby features various types of seating. There's a communal table with electrical outlets and Internet p! orts. For those who want to sink into cushioned chairs, there's a spot that feels more like a lounge.

Guests will be able to grab food to go or have a sit-down meal in any of the public spaces. Menus will feature healthy options in tapas-like portions that can be ordered through an iPad or tablet: think a kale salad with hazelnuts, dates and radishes in a light vinaigrette. Or grilled chicken over quinoa. Recipes were developed over six months in a test kitchen nearby.

The name EVEN was chosen to reflect the balanced lifestyle that guests crave, which means that they should be given the option of ordering dessert or having a cocktail, Glickman says. Desserts will come in small portions, and cocktails will have fresh ingredients.

The two model guestrooms that are available for preview have training zones with yoga mats, balance balls and other equipment. To accommodate the business traveler who doesn't want to work at a traditional desk, there's a clutter-free rolling desk and ergonomic chairs.

Mollie Tregembo, director of marketing and communications of EVEN Hotels, says many customers indicated that they prefer working standing up. Next to the TV, is a pull-down desk with multimedia ports. The hotels will have free high-speed Wi-Fi.

The beds have partially padded headboards and lights on each side for those who like to work in bed. And for those who simply want to sleep, there are blackout shades. "It never gets dark enough in a hotel room," Tregembo says.

Bathrooms have ample lighting, cubby storage areas and spa-like showers.

Little messages — what Glickman calls whispers — were painted on walls throughout the rooms to motivate guests. Above the in-room training zone, a health-conscious traveler can look up and read this: "Pull up or sit up but never give up."