12 financial resolutions for 2012

The end of a year, or the beginning of another, marks a significant opportunity for personal reflection.  It is at this time that it is customary to look back on goals or resolutions that were made at the start of the previous year and assess how well or how poorly they were addressed.

But while everyone around us makes half-hearted promises to quit smoking, lose weight or spend more time with family, why shouldn�t we consider making some real financial resolutions that would help us improve our financial well being?

It is so unfortunate that though we spend half of our lives working long hours to make our ends meet, yet we are barely able to take out time to manage our personal finances.  The need of the hour is to not only earn, but also allocate our time in managing our money and creating a sweeping change in our mindset.

The New Year unfolds optimism for us to start afresh, grab new opportunities and forget our past mistakes. 

So let�s start this year with resolutions that could drastically improve our financial well being. 

1. Improve your financial knowledge:  Today most of us suffer from financial diseases like low returns, debt trap, underinsurance, insufficient retirement funds etc. The major cause of these problems is that though we had studied various subjects like mathematics and science at school, but we were never taught about personal finance. PERSONAL FINANCE is a subject you ought to have knowledge of, wherever you go in life. Hence, improving financial knowledge is the first step towards financial well- being.

2. Create an emergency fund: Life is full of uncertainties and it is often difficult to incorporate such uncertainties in our financial plan. Emergency fund not only helps in fulfilling the financial needs during uncertainties but also secures us from mental disturbances which may arise due to financial crisis. Our emergency fund should be equal to an amount of our monthly expenses plus our loan EMI of 4-6 months and yearly insurance premium.

3. Reduce your loan burden: We should review our existing loans and ensure that all loans help us in increasing our net worth.  In case they do not, we should plan for repaying the same. We should also find out ways to reduce our interest burdens.

4. Take adequate insurance cover: Insurance is probably the most critical, and yet the least seriously dealt with aspect of financial planning by most people. Though most of us take life insurance or health insurance covers, but the amount of cover is usually not adequate.

While buying life insurance, you need to consider the immediate, future and living expenses that your family might have to incur in case a tragedy strikes you. You should not mix insurance and investment. Hence, the right strategy is to buy pure term insurance with adequate cover. Looking at the increasing medical costs, one should also plan to take health insurance for each member of the family.

5. Prepare saving plan for each goal: Set goals and plan their achievement levels, especially when it comes to the financial ones.  Financial goals can be of three types: short, medium and long - term.  A short-term goal could be anything like say purchasing a car, a medium � term goal may include planning your child's education and a long - term goal could be your retirement planning.  Whatever be the financial requirement, it can be fulfilled by determining its urgency and thereby making a saving plan for each goal.

6. Invest as per your risk appetite: We should understand that risk and return are the two sides of the same coin and an investment with a higher return indeed bears a higher risk. Therefore, we should plan our investments as per our risk appetites. We should also ensure that the post tax returns on our investments are able to beat inflation and additionally, have sufficient liquidity.

7. Tax planning in conjunction with Financial Planning:  For most of us, tax planning is an end-of-the year, last minute exercise. Tax planning should actually be done keeping in mind our needs, life goals and risk appetite in conjunction with the overall financial planning.

8. Budgeting: To gain control over your finances, you need to know how much you are earning and where you are spending. Budgeting will help you to identify high expense area and realise that a good amount of your income is being wasted there. This knowledge can be very helpful in saving money. 

9. Write your WILL: In the normal course, we plan to write our WILL after 60-70 years of age. But unfortunately, most people die without writing their WILL and hence we see several family feuds around us. Therefore a person above 18 years, having sound mind and assets/life insurance policy should write WILL.

10. Share your financial affairs with at least one trusted person:  We often read in newspapers about billions of unclaimed money being stashed in bank accounts.  The undelying cause for this is that no other member in the family of the deceased person is aware about the finances left behind, and hence the money can not be used by the surviving family members.  Therefore, one should share all the financial matters with at least one trusted person.

11. Take advice from the right experts: In India, the financial service providers often focus on providing commission based recommendations. They are not bothered about providing knowledge to their customers to help them manage their money for financial well being. Hence, we need financial experts who can give solutions considering one�s over all needs, attitude, life style, risk tolerance and financial situation. 

Transparency and honesty are the main aspects you must consider while selecting a financial planner for yourself. While we often seek expert professional advice in every field, such as consulting a doctor for our health, an architect for constructing our home, a CA for managing our taxes, or a lawyer for handling our legal matters, then why do we not consider taking the advice of a Certified Financial Planner cm for our Financial Planning?

12.  Review your Finance: Keeping a regular eye on your personal finances will help you make the most of your money. Reviewing things like your goals, bank accounts, loans, insurance, savings, and investments will also help make sure they're still right for you. It will also alert you early to potential financial problems.

The author is principal financial planner at ARIHANT Capital Markets Ltd.

This Discount Grocery Chain Is Walmart's Worst Nightmare

Alamy A discount grocery chain is being called "Walmart's worst nightmare." WinCo, a Western grocery chain with about 100 stores, has a business model that allows for cheaper prices than Walmart (WMT), writes Brad Tuttle at Time. WinCo keeps costs low by buying directly from suppliers and eliminating middlemen, according to Tuttle. It also doesn't accept credit cards and has customers bag their own groceries. A recent Idaho Statesman article about WinCo quoted retail analyst Burt Flickinger III as saying that WinCo was "unstoppable." "They're Walmart's worst nightmare," Flickinger said. Much like Costco, WinCo offers a minimalist selection instead of a wide array of brands according to Time.

For instance, WinCo might only carry two brands of toothpaste, while Walmart has more than 40. Unlike Walmart, whose employees have demanded better wages, the company provides health benefits to employees who work 24 hours per week and a pension. WinCo is expanding fast, and could convert Walmart's customers, according to Time. "Generally speaking, shoppers tolerate Walmart's empty shelves and subpar customer service because the prices are so good," Tuttle writes. "The fact that another retailer -- even a small regional one -- is able to compete and sometimes beat Walmart on prices, while also operating well-organized stores staffed by workers who enjoy their jobs, like their employer, and genuinely want the company to be successful. Well, that's got to alarm the world's biggest retailer, if not keep executives up at night."

Energizer Upgraded to Strong Buy - Analyst Blog

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On Jul 6, 2013, Zacks Investment Research upgraded Energizer Holdings Inc (ENR) to a Zacks Rank #1 (Strong Buy). With a strong return of 37.1% over the past one year and a positive estimate revision trend, Energizer is an attractive investment opportunity.

Why the Upgrade?

Strong second quarter results, innovative product pipeline, stringent cost control and the positive effects of the ongoing restructuring activity contributed to the upgrade.

Energizer reported second quarter results on May 1, 2013. Earnings of $1.80 per share jumped 47.5% from the year-ago quarter and comfortably surpassed the Zacks Consensus Estimate by 51 cents. This was the third consecutive quarter of positive earnings surprise with an average beat of 11.1%.

Based on the strong results, Energizer reiterated its fiscal 2013 earnings guidance in the range of $6.75 to $7.00 per share. The company expects earnings in the range of $2.75 to $3.00 in the second half of 2013 compared with $2.94 per share earned during the year-ago period

Although Energizer forecasts advertising expenses to increase in the latter half of 2013, restructuring savings are expected to increase at a much faster rate during the period. Energizer upped its restructuring outlook for fiscal 2013 to $50.0-$60.0 million from its earlier estimate of $25.0-$35.0 million.

As a result, gross savings from the restructuring project is expected to increase an additional $25.0 million to $225.0 million, of which $150.0 million is expected to be used for improving profitability, going forward.

The Zacks Consensus Estimate for fiscal 2013 increased 1.3% (9 cents) to $6.93 per share over the last 90 days. The current estimate is within the guidance range provided by Energizer. For fiscal 2014, the Zacks Consensus Estimate increased 0.5% (4 cents) to $7.61 per share over the same peri! od.

The long-term expected earnings growth rate for Energizer is 11.0%.

Other Stocks to Consider:

Investors can also consider other stocks that are doing well right now. These include Akamai Technologies (AKAM), Yahoo! (YHOO) and Moody's Corp (MCO). While Akamai and Yahoo! carry a Zacks Rank #1 (Strong Buy), Moody's carries a Zacks Rank #2 (Buy).

Yum! 2Q Earnings Top Ests, Rev Misses - Analyst Blog

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Yum! Brands Inc.'s (YUM) second-quarter 2013 adjusted earnings of 56 cents per share beat the Zacks Consensus Estimate by 1.8%, but slipped 16.4% year over year. On a reported basis, Yum! Brands' quarterly earnings of 61 cents per share were down 13% year over year.

In the second quarter, total revenue declined 8% year over year to $2.9 billion and also fell short of the Zacks Consensus Estimate of $3.0 billion by nearly 3.3%. Yum!'s weak China division has been held responsible for such poor results during the quarter.

The outbreak of avian flu in China in early-Apr 2013 marred the division's quarterly results. To add to the woes, an adverse publicity arising from the KFC China's poultry supply situation in Dec 2012 continues to negatively impact on the China division's performance. China, which used to be a major contributor to Yum!'s growth in the past few years, began to post dismal results since late 2012 due to these setbacks.

Behind the Headline Numbers

Geographically, Yum!'s business includes four reporting segments: United States, the China Division, consisting only of mainland China, Yum Restaurants International (YRI) and India.

China division's comps have suffered a 20% decline in the second quarter as against a 10% growth in the year-ago quarter. Quarterly decline in comps was the result of a 26% fall in KFC comps owing to the negative publicity, partially offset by a 7% increase in comps at Pizza Hut Casual Dining.

Comps at the India division increased 2%. Comps also nudged up 1% in the YRI division.

The U.S. division witnessed comps growth of 1% on the back of 2% and 3% rise in comps at Taco Bell and KFC, respectively. However, comps at Pizza Hut were down 2%. Management expects Taco Bell to grow further in the U.S. with the ongoing investment in technology and equipment.

! In the quarter under review, Yum! Brands witnessed a decline in its overall cost structure. Company-restaurant expenses decreased 7.5% year over year as a result of significantly lower expenses in the company's U.S. and YRI division. Company-restaurant expenses were significantly higher in the India division.

Worldwide operating profit witnessed a fall of 20%, excluding foreign currency translation, mainly due to a 63% decrease in China division's profit, partially offset by 12% and 4% profit growth at YRI and the U.S., respectively. While foreign currency translation helped China's profit to grow by $1 million, the same has pulled back the YRI's profit by $5 million.

Restaurant margin fell 270 basis points (bps) to 12.5% as a result of a 500 bps decline in China's restaurant margin. China division's margin was mostly affected by the company's lower sales in the region. However, both the YRI and the U.S. compensated the decline with a margin gain of 80 bps, driven by its refranchising initiatives.

Share Repurchase

Year to date, the company has bought back 5.7 million shares worth $390.0 million.

Outlook

The company retains its earnings outlook for 2013. Yum! expects its 2013 earnings per share to decline in mid-single digit owing to lower sales. With new sales-driven initiatives, management expects its business to pick up speed from 2014 onward.

Although the company's China division is under pressure, it will gradually recover from the downturn and might post impressive results in late 2013 and 2014. The company plans to unveil 700 restaurants in China in 2013.

The company also remains positive on the growth prospects of its YRI and India divisions as it has a solid development pipeline in the emerging markets including India in 2013.

Our Take

Although Yum! Brands' second-quarter 2013 earnings per share and revenues fell sharply due to the lackluster performance of the China division, management expects thes! e hurdles! to be short-term and also anticipates a strong performance in the latter half of the year. However, we believe that there is an uncertainty regarding the proper pace of recovery.

On a brighter side, Yum!'s India and YRI segments are expected to perform well, going ahead. The U.S. segment is also rebounding with higher profits and comps growth in Taco Bell and KFC.

Some other restaurateurs which look attractive at the current level include Krispy Kreme Doughnuts, Inc. (KKD), BJ's Restaurants, Inc. (BJRI) and AFC Enterprises Inc. (AFCE). While Krispy Kreme carries a Zacks Rank #1 (Strong Buy), BJ's Restaurants and AFC Enterprises both carry a Zacks Rank #2 (Buy).

Hilltop Dips to Neutral - Analyst Blog

On Jul 11, we downgraded our recommendation on Hilltop Holdings Inc. (HTH) to Neutral. While the recent PlainsCapital acquisition has boosted results thus far, persistent weakness in the insurance operations and the recent rating downgrades raise caution.

Why the Downgrade?

On May 6, Hilltop reported first-quarter 2013 operating earnings per shareof 39 cents and revenues of $280.5 million. The results surpassed the Zacks Consensus Estimate for earnings of 31 cents and revenues of $273 million. In addition, both earnings and top line exceeded the year-ago results of 1 cent per share and $38.1 million, respectively.

Higher premiums, deposits, interest and non-interest income along with lower-than-expected underwriting and other expenses drove the remarkable upside. These factors led to an improvement in improved combined ratio.

Post the first quarter results, the Zacks Consensus Estimate for 2013 remained static at $1.39 a share, while it climbed 5.1% to $1.43 per share for 2014, over the last 60 days. Consequently, with the Zacks Consensus Estimate for 2013 and 2014 depicting slight upward pressure on the stock in the near term, Hilltop now has a Zacks Rank #2 (Buy).

Cause for Caution

Following the acquisition of PlainsCapital, Hilltop has been able to amplify its operating and competitive efficiencies through diversification. A risk-free balance sheet and strong cash flow also bode well for the improving financial adequacy.

Despite registering extraordinary growth in the last two quarters, investors remain skeptical due to the lack of comparable growth parameters in the previous years. Based on this, the company expects growth to be moderate going forward.

Moreover, Hilltop's insurance operations appear to have taken a backseat amid the recent operational changes. Significant price and product competition along with a weak property-casualty market are hampering results. The recent rating downgrade from A.M. Best further raises our concern.
Other Stocks to Consider

Apart from Hilltop, other stocks that are outperforming in the insurance sector include American Safety Insurance Holdings Inc. (ASI), AmTrust Financial Services Inc. (AFSI) and HCI Group Inc. (HCI). All these stocks carry a Zacks Rank #1 (Strong Buy).

Royal Dutch Shell: Will a New CEO Boost the Stock?

With shares of Royal Dutch Shell (NYSE:RDSA) trading around $64, is RDSA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores and extracts crude oil, natural gas, and natural gas liquids. It also converts natural gas to liquids to provide fuels and other products as well as engages in manufacturing, supplying, and shipping crude oil. The company holds interests in approximately 30 refineries; 1,500 storage tanks; and 150 distribution facilities.

Royal Dutch Shell has unexpectedly appointed a new CEO, naming Refining Chief Ben van Beurden to the post after Peter Voser decided to leave the company. Van Beurden was a surprise choice as observers of the company had several other executives in mind for the job. Analysts believe that the new CEO choice shows that the company will renew its focus on operations amid criticism that the company isn't generating enough returns. As energy products take the center stage around the world, look for this new CEO to prove his worth for the company.

T = Technicals on the Stock Chart are Weak

Royal Dutch Shell stock has seen its fair share of struggles over the last several years. The stock is now trading near lows for the year as energy companies continue to see little progress. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Royal Dutch Shell is trading below its key averages which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Royal Dutch Shell Options	17.39%	33%	31%

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

	Put IV Skew	Call IV Skew
July Options	Steep	Average
August Options	Steep	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-7.86%	1.82%	1.79%	-53.24%
Revenue Growth (Y-O-Y)	-6.67%	2.92%	-8.36%	-3.75%
Earnings Reaction	N/A	N/A	N/A	N/A

Royal Dutch Shell has seen mixed earnings and mostly declining revenue figures over the last four quarters. Earnings reactions are not available for the last four quarters.

P = Weak Relative Performance Versus Peers and Sector

How has Royal Dutch Shell stock done relative to its peers, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), and sector?

	Royal Dutch Shell	Exxon Mobil	Chevron	BP	Sector
Year-to-Date Return	-6.96%	6.89%	13.70%	-0.36%	5.43%

Royal Dutch Shell has been a relative weak performer, year-to-date.

Conclusion

Royal Dutch Shell is an oil and gas company that operates worldwide. The company has just announced a new CEO that is bringing a different vision with him. The stock is trading near lows for the year but a new CEO may be the catalyst that the stock needs. Over the last four quarters, earnings have been mixed while revenue figures have been declining. Relative to its peers and sector, Royal Dutch Shell has been a weak year-to-date performer. WAIT AND SEE what this new CEO does for the company.

To Rent Or Buy? There's More To It Than Money

After you have thoroughly researched the financial issues of the rent-versus-buy decision, let's look at the issue from a different perspective, one involving emotional factors and personal preferences that collectively determine the impact of your decision on your quality of life. These "non-financial" issues are based on your personality, abilities and values. They require careful consideration, beginning with this question: what attributes about the place you live in are most important to you? (If you haven't yet researched the rent-vs-buy decision, see To Rent or Buy? The Financial Issues - Part 1.)

Environment: City Vs. Suburbs
The environment you choose to reside in plays a major role in your quality of life. Consider your personality. Do you like the character of the city, with its nightlife, quaint cafés and diverse cultures, or do you prefer the safety, conformity, green space and free parking in suburbia? Do you prefer to walk to work, take the subway or ride the train? How important is privacy, and how far do you like to live from your neighbors? If you can afford only those properties in environments that do not fit your preferences, you need to think about whether you are willing to forgo these preferences for the sake of owning a place.

Amenities versus Customization
Dollar for dollar, renting generally offers a substantially greater number and variety of amenities than buying. Consider, for example, the number of homes that come with an Olympic-sized swimming pool, clubhouse, tennis courts, basketball court and on-site gym. If you're looking to have these amenities in your private residence, get ready to spend a lot of money. Upscale apartment buildings, found in nearly every city, offer such options at a comparatively lower monthly rent than a mortgage for a property with the same attributes. On the other side of coin, there are affordable homes with private outdoor spaces that you can customize to your liking. There aren't many apartment buildings that come with acres of property in the country that will let you do your own landscaping, keep horses or grow a garden.

Flexibility Vs. Stability
Renting a place to live gives you significantly more freedom to get up and go at a moment's notice. The financial consequences of breaking a lease are minimal and can be addressed by simply writing a check. Homeowners wanting to leave their current residence face the much more complicated process of selling their property. The mortgage still needs to be paid and the grass still needs to get cut while you are waiting to find a buyer. Unless money is no object, the transition to a new place of residence is likely to take months, not days. On the other hand, with the flexibility of renting comes also some instability. The landlord can always raise the rent or ask you to move before you are ready to do so. If you own a house and make the payments, you can stay as long as you desire.

Personalized Aesthetics Vs. Less Work
Buying a house gives you the opportunity to choose a unique and distinct architectural style and to personalize it. But this freedom comes with the responsibility of keeping up with maintenance and repairs. Homeowners simply can't avoid the need to cut the grass and fix leaky faucets. If you prefer to spend your weekends relaxing in the park instead of wandering the aisles at the local hardware store, you might want to think twice about buying a home - unless of course you can budget a substantial amount of money to hire some help.

Although renting gives you no control over exterior aesthetics, you don't have to worry about dealing with wear and tear on your residence or problems resulting from bad construction. Renting still gives you plenty of opportunity to choose furnishings and decorate your interior environment in a manner that suits your style. And, as a renter, all you have to do when something goes wrong is notify your landlord.

Emotional Satisfaction Vs. Less Worry
Homeownership is often called "the American dream". There's just something emotionally appealing about putting down roots, getting involved in the community and having a place to call your own. Of course, homeowners also need to worry about the long-term character of the neighborhood and keep up with maintenance in order to sustain property values. If you're simply looking for a place to rest between days at work and nights hitting the town, renting may be the perfect answer. Just keep paying the rent and let somebody else do all the worrying.

A Personal Decision
Unlike the financial aspects of homeownership, the aspects that have a bearing on your lifestyle and values cannot be calculated online with some mathematical formula. If you can make the rent payments or qualify for the mortgage, you can live anywhere that you want to live. But buying a home is a decision you should take some time to consider, determining how its location, amenities and need for repairs will affect your lifestyle and general emotional satisfaction.

To learn more about the home costs, see Mortgages: How Much Can You Afford? and The Home-Equity Loan: What It Is And How It Works.

Half of Student Debt Holders Worry They Can’t Pay

While other types of debt have fallen since the recession, student loan debt has increased, and consumers are struggling to meet those obligations, according to a report published in June by the Urban Institute.

The report found that while 20% of adults over age 20 have student loan debt, over half are worried about their ability to pay it. Furthermore, debt isn’t limited to those with college educations; 9% of respondents with student loan debt have just a high school degree and 25% have some college education but no degree. Urban Institute suggested some of those people may have accrued debt for a non-degree certificate or may still be in school, while others may have used the funds for a child or simply didn’t finish school.

People across all income levels had at least some student loan debt, the survey found. Twenty percent of people in households with less than $25,000 in income had student debt compared with 18% of people in households with at least $100,000. Concern about their ability to pay varied widely, though. More than a third of people with at least $100,000 in household income said they were concerned about being able to pay back student debt, compared with 72% of those with less than $25,000 in income. “Concern about repayment among people in high-income households could be linked to higher levels of debt for this group (possibly debt taken on from graduate school), although this link cannot be examined directly with NFCS data,” according to the report.

According to Equifax, the average size of a student loan was $6,242 in March 2013, up 11% over the prior year. Between May 2012 and May 2013, the number of student loans increased by almost 10% to 126 million.

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Urban Institute found a wide variance in debt among different races. Over a third of black students and 28% of Hispanic students incurred loan debt, compared with 16% of white students. An April report by Urban Institute found white families have six times the wealth of black and Hispanic families.

The survey found no difference between men and women in the likelihood of having debt, but women were more likely to worry about being able to pay it off. Urban Institute suggested that because many women manage the day-to-day expenses in their households, they “may be more aware of the monthly student loan payments and impact on family finances.”

The paper noted that better information from schools about public and private loans and how they are different is one way to help students make appropriate decisions. Students should also consider factors like their likelihood of finishing their degree and how much they’ll earn when they get a job in their field when they’re choosing their school and how they will pay for it.

July 2013 Asset Class Returns

Last quarter (Second quarter 2013: March 31, 2013 through June 30, 2013) U.S. stocks was the only category which did well. July was much kinder to all the other categories.

We use six different asset classes for asset allocation: three for stability (bonds) and three for appreciation (stocks). We divide the asset classes for stability into short money, U.S. bonds and foreign bonds. We divide appreciation into U.S. stocks, foreign stocks and hard asset stocks.

The exchange traded funds listed in the chart above are a representative of one of the major holdings in each asset category. Many other holdings tune the asset allocation within each asset class. And there is a wisdom of how to diversify each.

Asset allocation means always having something to complain about. Investors are continually looking for the safe investments with good returns. But inflation, sovereign debt, globalization and diminishing U.S. economic freedom make a clear choice difficult. We advise a diversified portfolio that overweights certain subcategories in each asset class.

If you have set such an asset allocation, what did poorly this past quarter may be poised to do better in the coming year. If your asset allocation is wrong, change it. But if it is right, don't abandon a brilliant allocation simply because of short-term returns. Just rebalance back to your original targets. It takes a confident contrarian to ignore the daily market noise and the 24/7 financial news.

July 2013 Returns

During 2013 second quarter bond values dropped as interest rates rose sharply. In July U.S. Bonds were back to their meager returns.

Foreign bonds, which had dropped precipitously last quarter as the dollar strengthened, gained in July as the dollar weakened again. Here is a chart of the U.S. Dollar Index for July 2013 (click for detail):

Representing U.S. Stocks, iShares Core S&P 500 ETF (IVV) was up 2.90% during the second quarter and gained another 5.08% in July. IVV, representing U.S. Stocks, is up 19.57% year to date. Rebalancing at this point often means selling some U.S. stock holdings and purchasing in other categories.

Foreign stocks, as represented by EFA, were up slightly more than U.S. stocks in July. This after not having done very well last quarter or year to date.

Resource stocks include companies that own and produce an underlying natural resource. These include oil, natural gas, precious and base metals, and resources like real estate, diamonds, coal, and lumber. Resource stocks, also called hard asset stocks, provide an inflation hedge. They do well when the dollar is dropping in value and poorly when the dollar is strengthening.

iShares North American Natural Resources ETF (IGE) was down 5.07% during the second quarter as the dollar strengthened, but back up 5.79% this month.

Subscribe to Marotta On Money and receive free access to a video seminar on: Boosting Returns through Static and Dynamic Asset Allocation.

Barclays Wins Dismissal of NCUA Case - Analyst Blog

Barclays PLC (BCS) heaved a sigh of relief when the U.S. District Judge in Kansas City dismissed a case by National Credit Union Administration (NCUA) – the U.S. regulator for credit unions. The lawsuit had accused the company of selling risky mortgage based securities (MBS) worth approximately $555 million from 2006–2007.

While dismissing the case, the U.S. District Judge stated that the NCUA had waited too long to file the case against Barclays. The chargesheet should have been lodged within 3 years (by Mar 20, 2012) of the NCUA being named the conservator of credit unions. However, the case was filed in Sep 2012.

Barclays was accused of selling MBS to 2 corporate credit unions – the U.S. Federal Credit Union and the Western Corporate Federal Credit Union – leading to their failure in 2009. Since then, the NCUA has been trying to recover the losses.

The dismissal of the case is a setback for the NCUA. The regulator had sued 10 major global banks on similar charges.

Out of these, Bank of America Corporation (BAC), Deutsche Bank AG, HSBC Holdings plc (HBC) and Citigroup Inc. settled their respective cases with the NCUA, thereby enabling the regulator to recover roughly $335 million. However, Credit Suisse Group, Goldman Sachs Group Inc., Wells Fargo & Company, JPMorgan Chase & Co. (JPM) and UBS AG continue to face similar charges from the NCUA.

The dismissal of the case removes a legal headwind for Barclays. However, the company still faces a number of lawsuits related to its conduct during the financial crisis. Though the London Interbank Offered Rate (LIBOR) manipulation scandal led to a fine of £290 million ($453 million) in Jun 2012, Barclays has moved forward to regain investors' confidence through various transformational initiatives.

Currently, Barclays carries a Zacks Rank #3 (Hold).

Bull of the Day: Boeing (BA) - Bull of the Day

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Boeing (BA) has been in the news a lot lately, and for all the wrong reasons. The company has seen several issues with its high-tech 787 Dreamliner aircraft which many believe is the future for the company.

These concerns have led to brief sell-offs for BA, pushing shares sharply lower in some sessions and causing many investors to think twice about investing in the company. However, the company has powered through this weakness and is back at all-time highs, suggesting that these recent problems shouldn't be much of a concern to investors.

Outlook

After all, many analysts remain extremely bullish on Boeing and their prospects for the near term. Growth is expected to be in the double digits for both this quarter and the next, while the current year and next year growth rates are also impressive, coming in at 30% and 10.8%, respectively.

This growth rate also represents some acceleration from previous years, suggesting that Boeing is on the right track. Growth for the past five years was at just 1.3%, while for the next five it is moving into double digit range at 10.3%, meaning that this large cap stock isn't done growing yet.

If that wasn't enough, estimates have also been surging for both the current year and next year periods, while the Earnings ESP is positive for all four periods studied. The full year consensus has actually slowly risen from $6.39/share 90 days ago to $6.51/share today, suggesting that analysts are increasingly bullish about the company's near term prospects.

Investors should also note that BA has a pretty stellar record when it comes to beating earnings, with the company crushing estimates in all four of the previous four quarters. Plus, the average beat in this time period has been in the double digits, while the company hasn't missed earnings at all since early 2011.

Due to this solid earnings history, as well as the company's robust outlook, Boeing has earned itself a Zacks Rank #1 (Strong Buy). Plus, the company is also in a top industry—roughly the top quintile—so the firm is in great company.

Bottom Line

With earnings fast approaching, BA could be a compelling pick for investors. The company has fought through recent troubles with ease and analysts still like the growth story for the firm.

BA also has an amazing track record at earnings season, and with a positive Earnings ESP, there is no reason to believe that we won't see a similar result this time around as well.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Should you park your funds in non-convertible debentures?

Best Bank Companies To Own For 2014

Pankaj Mathpal, Optima Money Managers compares NCDs to fixed deposits. "Liquidity-wise, definitely the bank fixed deposit can be liquidated anytime. Debentures are listed on the stock exchange where these are traded but it will depend on the demand. If there is a buyer only then you can sell it. So, there is not much liquidity in case of a debenture. Safety wise, ratings may not be very helpful but you have to see the business of the company. So, if the business model of that company issuing the debenture is good and trustworthy then you can invest in it."

Below is the edited transcript of Mathpal's interview with CNBC-TV18.

Q: Are non-convertible debenture (NCD) a good option for retail investors?

A: First, I'll explain what is debenture. Basically, debenture is a fixed income instrument, which offers a fixed interest for a fixed term. Now, this debenture if it is non-convertible, it means that it cannot be converted into the company's equity shares. These debentures may be secured or unsecured.

A secured debenture is backed by assets; it means if the company fails to pay its obligations, in such case, these assets can be liquidated to pay investors' money.

These debentures or NCDs are basically rated by independent rating agencies like ICRA, CRISIL or Fitch so the companies, which are rated as AA or AAA are better. These offer good interest rate compared to bank interest. So it definitely makes a good choice for investment.

But investors should see that they should invest in companies with higher rating. They should not fall prey to the temptation just because these are offering good interest rate because they should understand the risk involved in this as compared to bank's fixed deposit. Bank's fixed deposit (FD) offers a fixed interest and it is insured upto Rs 1 lakh.

Q: Can you liquidate debentures? Also, how safe are these ratings? To what extent can it be enforced? Are debenture trustees powerful enough to ensure that there is some collateral and some money will come back?

A: Liquidity-wise, definitely the bank fixed deposit can be liquidated anytime. Anytime person wants to withdraw his fixed deposit that is possible but these debentures are listed on the stock exchange where these are traded but it will depend on the demand. If there is a buyer only then you can sell it. Inspite of the fact that it is listed, it is not necessary that you will be able to sell it. So, there is not much liquidity in case of a debenture.

Safety wise, ratings may not be very helpful but you have to see the business of the company. So, if the business model of that company issuing the debenture is good and trustworthy then you can invest but still it has a reference AA, AAA rating.

A retail investor who does not have much knowledge about the business of the company can refer to those ratings. If it is rated better it is safer compared to the company which is not rated as AA, AAA.

Q: What is the tax effectiveness of an FD with interest rate of 8% and debenture with 12%?

A: Rate of interest or coupon offered on debenture is exactly the same; it works like it works with interest. It is income from other sources, which is clubbed to your other income and charged as slab rate 10%, 20% or 30%. If an investor is selling this debenture before maturity, the premium attracts capital gain tax. So, the coupon which is being paid regularly is as good as interest. But the capital appreciation, if any, will be considered as capital gain.

Q: Should an investor invest in IIFL NCD? There are some interest payout options as well. What would be your advice on IIFL?

A: When you want to invest, you should see liquidity, safety and return on the investment product. Return-wise, definitely it is offering 12.75% annual coupon, which is really attractive. But the company is in the broking business, which is not very attractive from the safety point of view.

Also, in terms of liquidity, if there is demand in future in the secondary market then only you will be able to sell it. Understand the risk in this and then invest a part of your investable surplus.

Jean-Marie Eveillard: Why You Should Emulate Him

Best Companies To Watch In Right Now

A couple of days ago, I revealed that I had purchased an old investment book some time back entitled "Value Investing with the Masters" by Kirk Kazanjian. I was less than satisfied with the book and had placed it on my bookshelf mostly unread. Recently, I decided to endure what I felt was overall a lackluster performance at interviewing some investing greats and take the time to fully read it. After all, I reasoned, certainly there must be something I can take out of each chapter and apply it to myself or my investing style.

Eveillard has been investing for approximately 50 years. Born in France, he obtained a job as an analyst with Societe Generale, the French bank. It was during his tenure at the bank that he discovered value investing and was given an opportunity to manage a fund. The fund, First Eagle SoGen Global was sold to Arnhold and S. Bleichroeder Advisers, where Eveillard now serves as chief investment officer of several funds.

Here are some of my notes from the interview that I felt worthy of mentioning and ideas that all investors should heed.

The first item that drew my attention was his frankness regarding investing and some general characteristics displayed by many investors that are clearly wrong. Eveillard stated, "…the great majority of individuals, if left to their own devices in terms of investing, will do the wrong thing at the wrong time." He goes on to state that many, if not most investors, cannot read or understand a balance sheet and "…it's less a lack of technical knowledge, because that's not very difficult to acquire. It's more a failure of character or intellect or both."

Ouch… but it's the truth. There are too many that will screen the stocks through a screener and fail to go the extra distance and delve into the financials and discover the rest of the story.

He admonishes the investor to not just foll! ow the crowd or stay in the herd by just buying stocks that have been rising with a hope to catch some of the profits, without really studying or researching your purchase.

Of particular interest, at least to me, were his enlightening statements on accounting methods used here in the U.S. Eveillard said that while accounting methods in Europe had a poor record, he now believes that accounting in the U.S. is far worse. He, once again, cautions investors that there are too many accounting tricks and appears to agree with Warren Buffett and his complaint about the need to place stock options directly in the income statement.

According to the interview, Eveillard does not run screens to find stocks to invest in, stating that they simply cannot rely on the numbers that the company has reported in their financial records. They prefer to look for hidden assets in the balance sheet and divulge that they spend a considerable time studying the footnotes to see exactly what might be over reported. He adds, "We don't want to be taken."

He acknowledges that they rarely use research by any outside organizations, simply stating, "We don't trust anybody." Eveillard states that they often rerun numbers from the financials themselves and gives one example when they discovered, during their research, that one airport depreciated its runways over a 20-year period, while another depreciated their runways over a 100-year period. That can certainly make a huge difference in the numbers or ratios and should leave us all understanding the need to really scrutinize the financials before we invest. The caution has been issued.

In regards to intrinsic value, Eveillard admits that, "We are involved with both old and new value. To use Buffett's words, that means we tend to own both questionable businesses at comfortable prices and comfortable businesses at questionable prices." Those words are extremely important and do clearly emulate a lot of Buffett's style. He further explains that he may buy a good ! company f! or a lower margin of safety, if it's both a good company and they understand it. A company that they have less confidence in would require a higher margin of safety.

That is demonstrated throughout his portfolio. As an example, The TJX Companies (TJX), owned by Eveillard, is a great company, but is nearing its intrinsic value by almost anyone's calculations. He also owns Cisco (CSCO). While I think Cisco is a good company, many would state that its performance shows otherwise and would require a higher margin of safety. His portfolio clearly shows a good diversification. I was surprised, however, to discover how many gold stocks they were holding.

Finally, he admitted that his entire life savings is invested in the funds that he manages. When you consider the amount of research that he endeavors to fulfill with each purchase and that he's also using his own money, there is a confidence in emulating an investor such as Jean-Marie Eveillard.

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Top Oil Companies To Buy For 2014

With the�SPDR S&P Biotech Index�up 38% over the trailing-12-month period, it's evident that investment dollars are willingly flowing into the biotech sector. Keeping that in mind, let's have a look at some of the rulings, studies, and companies that made waves in the sector last week.

All eyes are certainly on the annual American Society of Clinical Oncology meeting going on right now, but that didn't stop a gambit of positive and negative news from emerging in the biotech sector this week.

Omthera Pharmaceuticals (NASDAQ: OMTH  ) certainly made waves for investors by announcing its agreement to be purchased by AstraZeneca�for $323 million, with $120 million in additional contingency value dependent on the success of its pipeline. Omthera's lead compound is a late-stage fish-oil capsule known as Epanova, which is being targeted at lowering triglyceride levels in patients with a high risk of developing cardiovascular disease. With obesity remaining such a big concern in the U.S., fish oil products could become a booming market in terms of heart health maintenance in the future, and AstraZeneca may have snagged itself a steal of a deal. Omthera shareholders probably aren't complaining, either, as their stock doubled this week.

Top Oil Companies To Buy For 2014: Southern Union Company(SUG)

Southern Union Company, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States. It operates in three segments: Transportation and Storage, Gathering and Processing, and Distribution. The Transportation and Storage segment engages in the interstate transportation and storage of natural gas in the Midwest and from the Gulf Coast to Florida. It also provides liquefied natural gas (LNG) terminalling and regasification services. The Gathering and Processing segment involves in gathering, treating, processing, and redelivering natural gas and natural gas liquids (NGLs) in Texas and New Mexico. It operates a network of approximately 5,500 miles of natural gas and NGL pipelines, 4 cryogenic processing plants with a combined capacity of 415 MMcf/d, and 5 natural gas treating plants with a combined capacity of 585 MMcf/d. The Distribution segment engages in the local distribution of natural gas in Missouri and Massachusetts. This segment serves residential, commercial, and industrial customers through local distribution systems. The company was founded in 1932 and is based in Houston, Texas.

Advisors' Opinion:

• [By Louis Navellier]

  Southern Union Co. (NYSE:SUG) also is involved with the gathering, processing, transportation, storage and distribution of natural gas in the U.S. Southern Union stock has jumped 74% year to date.

Top Oil Companies To Buy For 2014: Valero Energy Corporation(VLO)

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. The Refining segment engages in refining, wholesale marketing, product supply and distribution, and transportation operations. It produces conventional gasoline, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products. This segment also offers conventional blendstock for oxygenate blending, reformulated gasoline blendstock for oxygenate blending, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel. The Ethanol segment produces ethanol and distillers grains. The Retail segment sells transportation fuels at retail stores and unattended self-service cardlocks; convenience store merchandise and services in retail stores; and home heating oil to residential customers. Valero Energy Corpora tion markets its refined products through bulk and rack marketing network; and sells refined products through a network of approximately 6,800 retail and wholesale branded outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco names in the United States, Canada, the United Kingdom, Aruba, and Ireland. As of December 31, 2011, it owned 16 petroleum refineries with a combined throughput capacity of approximately 3.0 million barrels per day; and operated 10 ethanol plants with a combined nameplate production capacity of approximately 1.1 billion gallons per year. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1955 and is based in San Antonio, Texas.

Hot Penny Companies To Invest In Right Now: ATP Oil And Gas Corp (AOB)

ATP Oil & Gas Corporation, incorporated in 1991, is engaged in the acquisition, development and production of oil and natural gas properties. As of December 31, 2011, the Company had estimated net proved reserves of 118.9 Million barrels of crude oil equivalent (MMBoe), of which approximately 75.9 MMboe (64%) were in the Gulf of Mexico and 42.9 MMBoe (36%) were in the North Sea. The reserves consisted of 78.6 Million barrels (MMBbls) of oil (66%) and 241.5 billion cubic feet (Bcf) of natural gas (34%). Its proved reserves in the deepwater area of the Gulf of Mexico account for 62% of the Company�� total proved reserves and its proved reserves on the Gulf of Mexico Outer Continental Shelf account for 2% of its total proved reserves. During the year ended December 31, 2011, the Company acquired three licenses in the Mediterranean Sea covering potential natural gas resources in the deepwater off the coast of Israel (East Mediterranean). On August 17, 2012, ATP Oil And Gas Corp filed for Chapter 11 bankruptcy protection.

The Company�� natural gas reserves are split between the Gulf of Mexico (57%) and the North Sea (43%). Of its total proved reserves, 8.3 MMBoe (7%) were producing, 19.0 MMBoe (16%) were developed and not producing and 91.6 MMBoe (77%) were undeveloped. The Company�� average working interest in its properties at December 31, 2011, was approximately 81%. The Company operates 92% of its platforms. At December 31, 2011, in the Gulf of Mexico, it owned leasehold and other interests in 38 offshore blocks and 49 wells, including 23 subsea wells. The Company operates 43 (88%) of these wells, including 100% of the subsea wells. In the North Sea, it also had interests in 13 blocks and two Company-operated subsea wells. As of March 15, 2011, the Company owned an interest in 13 platforms, including two floating production facilities in the Gulf of Mexico, the ATP Titan at its Telemark Hub and the ATP Innovator at its Gomez Hub. It operates the ATP Innovator and the ATP Titan.

Top Oil Companies To Buy For 2014: Whiting Petroleum Corporation(WLL)

Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. As of December 31, 2010, its estimated proved reserves were 304.9 million barrels equivalent of oil; and had interests in 9,698 gross productive wells covering approximately 1,115,000 gross developed acres. The company sells its oil and gas to end users, marketers, and other purchasers. Whiting Petroleum Corporation was founded in 1983 and is Denver, Colorado.

Advisors' Opinion:

• [By Gordon Wilcox]

  Whiting Petroleum (NYSE: WLL) Two months ago, takeover rumors surrounding Whiting swirled after it was reported the company hired Bank of America to explore a possible sale. Those rumors gained steam again last week and it is easy to see why.

  Not only does Whiting control over 700,000 Bakken Shale acres, making it the second-largest producer there, it is attractively valued. The shares currently trade for more than 35 percent below the average analyst price target and well below the five-year average price-to-earnings ratio.

  Adding to the takeover case are the facts that the bulk of Whiting’s reserves are oil, not gas, and that the company has increased production guidance multiple times this year.

Top Oil Companies To Buy For 2014: American Petro-Hunter Inc (AAPH)

American Petro-Hunter Inc., incorporated on January 24, 1996, is an oil and natural gases exploration and production company with projects in Kansas and Oklahoma. As of March 15, 2012, the Company has two producing wells in Kansas and six producing wells in Oklahoma. The Company also has rights for the exploration and production of oil and gas on an aggregate of approximately 6,230 acres in those states. On January 4, 2011, the Company announced plans to drill the NOS227 Well as a direct offset to the NOJ26 Well.

On March 25, 2011, the Company announced that the Company had acquired a working interest in an additional 2,000 acres located in Payne County in northern Oklahoma, near the Company�� Yale Prospect. The project has been named North Oklahoma Mississippi Lime Project. On May 16, 2011, the Company announced that drilling operations had commenced at the Company�� first horizontal well, NOM1H. The Company owns a 25% Working Interest in the lease. On June 29, 2011, the Company announced that NOM1H had begun commercial production. On July 18, 2011, the Company announced drilling plans for a total of 11 horizontal wells at the North Oklahoma Project. On July 20, 2011, the Company announced the acquisition of a 40% working interest in the South Oklahoma Project on 3,000 acres of land in south-central Oklahoma.

On February 6, 2012, the Company announced that the Company had drilled a total of 1,988 feet in the horizontal well segment penetrating into the 100 plus foot thick Mississippi pay zone. As of March 2012, there are nine locations left to drill on the acreage. The Company's crude oil production is sold to N.C.R.A. in MacPherson Kansas and Sunoco in Oklahoma. The Company sells natural gas through such pipeline to DCP Midstream, LP of Tulsa, Oklahoma.

Sprint-Softbank Merger Gets ISS Blessing

The simple news is that investor advisory service Institutional Shareholder Services has put its imprimatur of approval on the proposed $20.1 billion acquisition of Sprint (NYSE: S  ) by Japan's Softbank, dealing an apparent blow to a higher, competing bid by DISH Network (NASDAQ: DISH  ) , which has offered $25.5 billion.

In a release issued by Sprint yesterday, ISS was quoted as saying: "Given the strategic merits of the SoftBank transaction, the sales and negotiation process overseen by the board, the strength of the valuation relative to precedent transactions, and the market reaction, a vote for the transaction is warranted."

However, according to The Wall Street Journal, ISS said it hadn't determined whether Dish's bid might provide shareholders a better deal, saying it's only a preliminary offer.

Nothing about this transaction is simple. Some say the real prize here isn't Sprint at all, but Clearwire  (NASDAQ: CLWR  ) , which holds enormous amounts of spectrum that everyone covets. So Sprint is offering to buy the remaining piece of Clearwire it doesn't already own. Yet Clearwire's largest investor, Crest Financial, sees the bid undervaluing its assets and has mounted a number of defenses against it. In addition, both DISH and Verizon have made offers for Clearwire.

The Institutional Services pronouncement says a Sprint/Softbank merger will make the carrier a stronger competitor: "SoftBank's experience mastering this technology in building its own network -- arguably the fastest network in the world -- will be immensely helpful to Sprint as it is only beginning to focus on its own network improvements."

Top 10 Energy Companies To Watch For 2014

There are still numerous hurdles the deal would have to cross before it could be consummated, including receiving approval from the FCC and Sprint's shareholders. Assuming those are received and the additional offers outstanding are satisfactorily resolved, Sprint and SoftBank anticipate the merger will be completed in July.

Sprint's board of directors urges its shareholders to vote in favor of the Softbank offer on June 12.

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United Utilities Group Makes a Splash

LONDON -- Shares in United Utilities  (LSE: UU  ) climbed 1% in early trade to reach 789 pence, as the company announced decent full-year figures for the year ended March 31, 2013.

Having seen its share price rise earlier in the week in anticipation of these results, Britain's biggest listed water company reported underlying operating profit increased by £13 million year on year, to £607 million, while revenue increased by £72 million to £1.64 billion.

The water management company is currently sitting on a five-year high and is on track to meet outperformance targets, which will benefit both customers and shareholders, according the firm.

It plans to reinvest around £200 million of capex outperformance for the "benefit of customers and the environment", while operational improvement saw United Utilities meet water and wastewater asset serviceability standards, outperform its regulatory leakage target and improve its quantitative SIM score with regulator Ofwat by 34%.

CEO Steve Mogford said:

Customer satisfaction with our service continues to improve, underpinned by strong operational and environmental performance.

We accelerated our capital investment program and invested £787 million in the year, taking the total investment in our network, since the start of the regulatory period in 2010, to just over £2 billion, providing an important contribution to the North West economy. We are delivering a smoother and more effective program and we expect to invest around a further £800 million in 2013/14.

Despite basic earnings per share falling from 45.7 pence in 2012 to 41.4 pence, the final dividend of 22.88 pence was maintained, giving a total dividend of 34.32 pence that represents a yield of 4.3%.

But if you're looking for an even better yield in a company that could prosper if the economy turns for the worse, as well as deliver a healthy gain if sentiment suddenly improved, then you need to read our brand-new special report! "The Motley Fool's Top Income Stock For 2013" features a company on a safe 5% yield, is completely free, and will be sent to your inbox immediately! Just click here now to find out more...

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Edison International Acquires SoCore

Electric-power generator and distributor Edison International (NYSE: EIX  ) said today it had completed its previously announced acquisition of privately held distributed solar developer SoCore Energy.

SoCore focuses on solar energy for multi-site retailers, real estate investment trusts, and large commercial and industrial clients. SoCore Energy designs, installs, and operates 80 commercial-scale solar installations in 11 states. It was responsible for Walgreen's largest solar-energy rollout and counts as key clients Ikea, Kimco Realty, and mall operator Simon Property Group.

Where Edison is impressed with SoCore's client list and the pipeline of projects it brings to the table, SoCore President and CEO Pete Kadens said, "Aligning with a well-branded and progressive energy partner will enhance our attractiveness to customers and broaden our suite of offerings."

Financial details of the acquisition were not revealed, but previously analysts noted that approval is required of any acquisition valued at more than $10 million. As of late last year, SoCore generated sales above $30 million annually and was growing 500% per year.

SoCore Energy will become a wholly owned indirect subsidiary of Edison International, with its management team, employees, and operations continuing to be based in Chicago.

Best Stocks To Watch For 2014

By now you should be well aware that Microsoft (NASDAQ: MSFT  ) has had a difficult time revitalizing the PC market. As a result, the PC has hit a bit of a rough patch, with most recent estimations calling for a 13.9% drop in year-over-year shipments. In terms of form factor, ease of use, and affordability, the PC lags far behind the tablet. However, the PC is rapidly evolving to be more tablet-like in the future, and the prospect of a $200 Windows 8 tablet isn't too far off. In the video below, Motley Fool contributor Steve Heller weighs in on the prospect of a $200 Windows 8 tablet and what it could mean for the PC industry as a whole.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Best Stocks To Watch For 2014: Fisher Communications Inc.(FSCI)

Fisher Communications, Inc., an integrated media company, through its subsidiaries, engages in television and radio broadcasting businesses. The company owns and operates network-affiliated television stations in Washington, Oregon, Idaho, and California, as well as engages in Internet business; and radio stations and managed radio stations in Washington and Montana. It also owns and operates Fisher Plaza, a commercial building that includes a data center designed to enable companies to distribute analog and digital media content through various distribution channels, including broadcast, satellite, cable, Internet, broadband, and other wired and wireless communication systems, as well as houses various companies, including media and communications companies. The company owns and operates 13 full power television stations, 7 low power television stations, and 10 owned and managed radio stations in the Western United States. Its television stations reach 4.2 million househo lds. The company was formerly known as Fisher Companies, Inc. and changed its name in March 2001. Fisher Communications, Inc. was founded in 1910 and is based in Seattle, Washington.

Best Stocks To Watch For 2014: NetSol Technologies Inc.(NTWK)

Netsol Technologies, Inc. designs, develops, and markets software products for the automobile finance and leasing, banking, healthcare, and financial services industries worldwide. It offers NetSol Financial Suite, which is an end-to-end solution that covers the leasing and finance cycle. The NetSol Financial Suite consist of software applications comprising Point of Sale, a front office processing system for the finance sector; Credit Application Processing System to handle the incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System to manage and maintain a contract; Wholesale Finance System to automate and manage the floor plan/bailment activities of dealerships; and Fleet Management System to handle fleet management needs. The NetSol Financial Suite also includes LeasePak that develops Web-enabled and Web-based tools for the leasing technology industry. In addition, the company offers LeaseSoft Portals and Modul es; enterprise wide information systems, such as LRMIS, MTMIS, and Hospital Management Systems; accounting outsourcing services; and career and technology programs. Further, it provides portfolio management systems for the financial services industry; and consulting, custom development, systems integration, and technical services for the healthcare, insurance, real estate, and technology markets. Additionally, the company offers business intelligence, independent system review, information security, and software process improvement consulting services; maintenance and support, and project management services; and solutions for the defense and military forces. It serves Fortune 500 manufacturers, automakers, financial institutions, utilities, technology providers, and government agencies. The company was formerly known as NetSol International, Inc. and changed its name to NetSol Technologies, Inc. in March 2002. NetSol Technologies, Inc. was founded in 1997 and is based in Ca labasas, California.

10 Best Heal Care Stocks To Invest In Right Now: Maximus Resources Ltd(MXR.AX)

Maximus Resources Limited engages in the exploration and development of mineral properties in Australia. The company primarily explores for gold, uranium, iron ore, and base metals. Its principal properties include the Sellheim alluvial gold project located in north Queensland; the Adelaide Hills gold project situated in South Australia; and the Narndee base metals project located in the Mt Magnet region of Western Australia. The company also holds exploration tenements in Western Australia that are prospective for nickel, and base metals. Maximus Resources Limited was founded in 2004 and is based in Norwood, South Australia.

Big Lots Picks a New CEO

Top 10 Blue Chip Stocks To Invest In 2014

Columbus, Ohio-based Big Lots (NYSE: BIG  ) has a new big boss.

On Tuesday, the bricks-and-mortar closeouts retailer announced that Chief Executive Officer Steve Fishman, who announced plans to retire back in December, will officially depart the corner office on May 6, to be replaced by former Respect Your Universe CEO David Campisi.

For Campisi, it's a big move up, leaving a micro-cap retailer with less than $1 million in annual sales, to join a big (literally) name in retailing -- one with $2.1 billion in market cap, and annual sales of $5.4 billion. But the new job won't be entirely out of scale with his experience. Before heading RYU, Campisi served as CEO of privately held The Sports Authority, which last year did $2.5 billion in business .

Big Lots has not yet filed details of Campisi's compensation package with the SEC.

More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

How To Play The JPMorgan Earnings Announcement

This coming week, the earnings season begins in earnest with JPMorgan (JPM) announcing before the open on Friday, April 12th. The company has an enviable record of consistently beating expectations - 11 out of the last 12 quarters, and over the past year, they overachieved by an average of 27%.

While this record is exceptional, the interesting thing to me is how the market has reacted to each announcement. Over the past four announcements, the stock has actually fallen half the time. The only exception was in July when JPMorgan exceeded by a whopping 59% and the stock moved $2.03 higher (this was an unusual quarter because expectations were dramatically reduced due to the London whale disclosure in May). For the last two quarters, the stock has fluctuated by less than $.50 (once up, once down) on the day following the announcement, in spite of the company exceeding expectations by 17% each quarter.

Check out the chart for the last year:

(click to enlarge)

For the last two earnings period, the stock moved steadily higher for the entire month leading up to the announcement. This suggests a time of rising expectations, yet when those expectations were achieved, nothing much happened because the market expected just that.

This time around, the pattern is just the opposite. Over the last two weeks, the stock has fallen by 6% from its high of $51 reached on March 14th. Part of the reason might be the recent public rehashing of the London whale event which occurred in May 2012 (see the huge drop in the stock price at that time); but that is old news and unlikely to affect current earnings. Regardless of the real reason for the stock's recent weakness, it suggests a time of lowered expectations, and if earnings exceed once again, the stock might be in for a big move to the upside.

There are a lot of things to like about JPM. Notably, a forward p/e of 8.8 while predicte! d growth is conservatively pegged at 6%, a 3.2% dividend since the latest increase from $.30 to $.38, and $6 billion of stock authorized buy-backs for the next nine months (enough to buy back about 120 million shares, or almost 3% of the 3.8 billion outstanding).

For a comprehensive (and bullish) look at the company's outlook, check out the Seeking Alpha article Picking Up JPMorgan On The Dip. I won't repeat all that good analysis here.

Bottom line, it looks like it is highly unlikely that the stock will drop significantly after this week's announcement, and there is a good possibility of a higher stock price. Last Friday there was an indication that the stock is already headed higher when it rose almost 1% while the market was lower across the board after the dismal jobs report.

Since I am basically an options guy, my plan is to buy May - Apr 2 calendar spreads at the 48 and 49 strikes and some extra April 50 calls (on the cheap, for less than $.10) in case there is a big up move. These positions should result in at least a 20% gain for the day if the stock holds steady or moves up as I expect it will. Since IV of the May options is only 22 (not much higher than is typical in a non-announcement month), I don't expect much of a collapse in May option prices after the announcement.

In any event, either with options or the outright purchase of the stock, in my opinion, this seems to be a good time to get on the JPM bandwagon.

Disclosure: I am long JPM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Does The Street Have MICROS Systems Figured Out?

MICROS Systems (Nasdaq: MCRS  ) is expected to report Q3 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MICROS Systems's revenues will expand 18.9% and EPS will grow 8.9%.

The average estimate for revenue is $330.7 million. On the bottom line, the average EPS estimate is $0.61.

Revenue details
Last quarter, MICROS Systems notched revenue of $324.5 million. GAAP reported sales were 20% higher than the prior-year quarter's $270.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.58. GAAP EPS of $0.54 for Q2 were 15% higher than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 53.0%, 330 basis points worse than the prior-year quarter. Operating margin was 19.0%, 110 basis points worse than the prior-year quarter. Net margin was 13.6%, 60 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.31 billion. The average EPS estimate is $2.43.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 136 members out of 145 rating the stock outperform, and nine members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give MICROS Systems a green thumbs-up, and three give it a red thumbs-down.

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Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MICROS Systems is outperform, with an average price target of $56.33.

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