EPA carbon rules could speed U.S. shift from coal

The Obama administration's historic proposal to reduce carbon emissions from U.S. power plants, expected Monday, could accelerate the nation's shift from coal to natural gas and renewable energy.

Aimed at fighting climate change, the Environmental Protection Agency rules will require states to develop and implement plans to cut power plant emissions of heat-trapping carbon dioxide. They will give states a range of options to comply, including the trading of pollution credits. Critics, however, say they could drive up electricity prices and shutter plants nationwide.

"This is a colossal proposal that should achieve the biggest carbon pollution reductions ever undertaken by the United States," says Daniel J. Weiss of the Center for American Progress, a liberal-leaning think tank with close ties to the White House. "No president has ever proposed a climate pollution cleanup this big."

Thwarted by Congress' inability to pass a bill to lower U.S. carbon emissions, President Obama is pushing forward his own approach that could become one of the signature achievements of his administration.

Last June, he asked the EPA to use its power under the Clean Air Act to craft rules limiting CO2 emissions from existing power plants. These rules would go far beyond an EPA proposal last year to limit emissions from new plants, and their impact will also exceed the administration's 2011 requirement that new cars and light trucks double fuel efficiency by 2025.

The reason? Power plants account for the largest share, nearly 40%, of U.S. greenhouse gas emissions, and Obama has already pledged to slash emissions 17% from 2005 levels by 2020. Coal-fired facilities will be hardest hit because they emit more CO2 than other power plants.

Here are five things you need to know about the controversial rules:

1. They will not happen overnight. Opponents, including business groups and Republicans, will likely cast them as a costly "war on coal" and file lawsuits to challeng! e EPA authority. Recent legal rulings, though, have largely sided with the EPA. .

Obama has asked the EPA to finalize the rules in June 2015, after which states would have at least a year to submit plans for how they would achieve the reductions. The agency would then review those plans and, if states refuse to submit them, it could create its own plan.

"It will be a few years before we see changes from this rule," says Kyle Aarons, a senior fellow at the Center for Climate and Energy Solutions, a nonprofit group.

2. They will be flexible. The rules are expected to give a range of emission-reduction targets with varying deadlines and options to meet them.

So, states could comply by requiring plants to install pollution-control technology; setting up energy efficiency programs to reduce energy demand; or using more carbon-free energy such as solar and nuclear or cleaner-burning fuels like natural gas. They could also follow California and nine northeast states, which have created cap-and-trade programs that cap overall emissions but allow polluters to buy government-issued credits from clean-energy producers.

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Obama's senior counselor, John Podesta, said the reductions will be made "in the most cost-effective and most efficient way possible." A key factor will be the baseline year or years that are used to set them, because U.S. carbon emissions were lower between 2008 and 2012 than in the early 2000s or last year.

3. They accelerate the shift away from coal. As natural gas prices have fallen, the coal industry has seen its share of U.S. electricity generation plummet from 52% in 2000 to 37% in 2012. In contrast, natural gas has seen its share double, from 16% in 2000 to 30% in 2012.

Even without the EPA carbon rules, the EIA projects coal's share will drop further and 60 gigawatts of coal-fired power — about one-fifth of the to! tal U.S. ! coal capacity in 2012 — will retire by 2020. In recent years, dozens of old coal-fired plants have closed or announced their retirements.

"This rule would accelerate that shift" away from coal, says Aarons.

The carbon limits could lead to "draconian changes" in the U.S. energy mix, says Karen Harbert, president of the U.S. Chamber of Commerce's Institute for 21st Century Energy.

4. Their impacts could vary by state. Harbert's group released a study that warns the rules could hike consumer electricity prices, reduce jobs and slow economic growth, adding the South will see the biggest increases in power costs.

"The Chamber has a long record of releasing reports that cry wolf (about EPA rules) and is invariably wrong," says David Doniger of the Natural Resources Defense Council, an environmental group. The NRDC's analysis says the rules could create hundreds of thousands of energy-efficiency jobs and, by lowering energy use, reduce consumer utility bills.

Some states that rely heavily on coal could struggle more than others to meet the EPA limits. Kentucky, Wyoming, West Virginia, Indiana and North Dakota have the highest carbon emission rates while Idaho, Vermont , Washington, Oregon and Maine have the lowest, according to a May report co-authored by Ceres, a non-profit research group that promotes corporate sustainability.

5. Their influence extends beyond the U.S. "This is clearly a pivotal moment that the world will be watching closely," says Mindy Lubber, Ceres' president, noting a new round of United Nations climate talks will take place next year in Paris.

Doniger says the EPA rules will show the United States is "in the game" and will help nudge other countries to make reductions.

Is Scripps Networks Interactive on Your Radar?

Scripps Networks Interactive (NYSE: SNI  ) looks stronger than ever after a great first quarter. 

While most cable networks experienced a dip in viewership largely because of the Olympics, Scripps' popular channels -- including HGTV, Food Network, and Travel Channel -- actually increased viewership numbers, especially in the key 25- to 54-year-old demographic advertisers covet.

This shows management's programming savvy as well as the staying power of its brands, all of which give Scripps tremendous pricing power when it comes to advertising rates and affiliate fees. But lots of sharks swim in the sea of cable television programming.

Stock Advisor analyst Sara Hov and Rule Breakers analyst Simon Erickson talk about what's ahead for Scripps, including the chance that this small-but-mighty company could get swallowed by a bigger fish.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 

 

Top Value Stocks To Buy For 2015

Top Value Stocks To Buy For 2015: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Housto! n, Texas .

Advisors' Opinion:

• [By Matt DiLallo]

  In addition, the process could really vault Halliburton past industry peers Schlumberger (NYSE: SLB  ) and Baker Hughes (NYSE: BHI  ) . All three companies have been looking overseas for growth as rig counts in the U.S. have been on the decline. Just last quarter, U.S. rig counts dropped by 3%, which helped cause Halliburton's revenue to dip by 1%. However, if H2O Forward works as planned it could help Halliburton take additional market share from its competitors in the U.S., enabling it to do well even if rig counts continue to drop. Also, the company could begin to offer the solution overseas, which would help maintain its industry-leading growth.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-value-stocks-to-buy-for-2015.html

Hot Mid Cap Stocks To Invest In Right Now

Hot Mid Cap Stocks To Invest In Right Now: American Eagle Outfitters Inc (AEO)

American Eagle Outfitters, Inc. (AEO, Inc) is a specialty retailer that operates in the United Sates and Canada, and online at ae.com. AEO, Inc operates under the American Eagle (AE), aerie by American Eagle (aerie), and 77kids by american eagle (77kids) brands. Through the Companys family of brands, it offers clothing, accessories and personal care products. As of January 28, 2012, the Company operated 1,090 stores in the United States and Canada under the American Eagle Outfitters, aerie and 77kids brands. The Company also had 21 franchised stores operated by its franchise partners in 10 countries. During the fiscal year ended December 31, 2011, the Company opened 33 new stores. As of December 31, 2011, it operated in all 50 states, Puerto Rico and Canada. During fiscal 2011, the Company remodeled and refurbished a total of 106 AE stores.

AE Brand

The American Eagle Outfitters brand targets 15 to 25-year old men and women. Denim is the corner stone of the American Eagle product assortment, which is complemented by other categories including sweaters, graphic t-shirts, fleece, outerwear and accessories. As of January 28, 2012, the Company operated 911 American Eagle Outfitters stores. During fiscal 2011, it opened 11 AE stores.

aerie by American Eagle

The Companys aerie is a collection of Dormwear, intimates and personal care products for the AE girl. The collection is available in aerie stores throughout the United States and Canada, online at aerie.com and at select American Eagle stores. As of January 28, 2012, AEO, Inc operated 158 aerie stores. During fiscal 2011, it opened 10 aerie stores.

77kids by american eagle

77kids offers clothing and accessories for kids ages 2 to 14 and babies under the brand name little77TM. As of January 28, 2012, the Company operated 21 77kids stores. All 77kids clothing is backed by the brands 77wash and 77soft. Du! ring fiscal 2011, A EO, Inc opened 12 77kids stores.

AEO Direct

The Company's online business, AEO Direct, ships to 77 countries worldwide. The Company sells merchandise via its e-commerce operations, ae.com, aerie.com and 77kids.com, which are extensions of the lifestyle that it conveys in its stores. As of December 31, 2011, AEO Direct shipped to 77 countries worldwide. In addition to purchasing items online, customers can experience AEO Direct in-store through Store-to-Door. Store-to-Door enables store associates to sell any item available online to an in-store customer in a single transaction. The Company accepts PayPal and Bill Me Later as a means of payment from its ae.com, aerie.com and 77kids.com customers.

Advisors' Opinion:

• [By Lisa Levin]

  American Eagle Outfitters (NYSE: AEO) shares fell 9.24% to reach a new 52-week low of $12.99 after the company reported that its CEO Robert Hanson is leaving the company. Stifel Nicolaus downgraded the stock from Buy to Hold.

• [By Ben Levisohn]

  Let’s just say the market’s reaction hasn’t been quite as positive. Shares of Abercrombie & Fitch have dropped 2.6% to $34.01 today, even as American Eagle Outfitters (AEO), which had been competing for worst retail stock of the year not named J.C. Penney (JCP), has gained 0.1% to $14.87.

• [By Laura Brodbeck]

  Notable earnings releases expected on Tuesday include:

  Caesars Entertainment Corporation (NASDAQ: CZR) is expected to report a fourth quarter loss of $1.49 on revenue of $2.12 billion, compared to last years loss of $3.75 on revenue of $2.02 billion. American Eagle Outfitters, Inc (NYSE: AEO) is expected to report fourth quarter EPS of $0.26 on revenue of $1.05 billion, compared to last years EPS of $0.55 on revenue of $1.12 billion. The Bon-Ton Stores, Inc.(NASDAQ: BONT) is expected to report fourth quarter EPS of $2.74 on revenue of $980.95 million, compared to las! t years E! PS of $3.73 on revenue of $1.03 billion.

  Economics

• [By Vince Martin]

  The struggles at both retailers showed the relative strength of the first quarter earnings report from American Eagle (AEO), released on Wednesday. American Eagle, like its competitors, saw comparables fall year-over-year, but at a much lesser rate of just 5 percent. The company's guidance for full-year earnings of $1.42-$1.45 represent modest growth over 2012's $1.39 per share; comp guidance for a flat 2Q and "low single-digit" growth in the second half would appear to result in comps that are flat or up modestly for the full year.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/hot-mid-cap-stocks-to-invest-in-right-now-2.html

Top Services Companies To Invest In Right Now

Top Services Companies To Invest In Right Now: Ingram Micro Inc. (IM)

Ingram Micro Inc. distributes information technology (IT) products; and provides supply chain solutions, mobile device lifecycle services, and logistics solutions worldwide. The companys IT peripherals include printers, scanners, displays, projectors, monitors, panels, mass storage, and tape; large format LCD and plasma displays, enclosures, mounts, media players, content software, and content creation and hosting; mobile phones, digital cameras and video disc players, game consoles, televisions, audio, media management, and home control products; barcode/card printers, AIDC scanners and software, and wireless infrastructure products; IP video surveillance, security and fire alarm systems, and access control smart cards; processors, motherboards, hard drives, and memory products; and ink and toner supplies, paper, carrying cases, and anti-glare screens. It also provides various systems, including rack, tower, and blade servers; desktops; portable personal computers and t ablets; and software products, such as business application, operating system, entertainment, security, storage, and virtualization software products, as well as middleware and developer software tools. The companys networking products comprise switches, hubs, routers, wireless local area networks, wireless wide area networks, network interface cards, cellular data cards, network-attached storage, and storage area networks; voice over Internet protocol, communications, modems, phone systems, and video/audio conferencing; and firewalls, virtual private networks, intrusion detection, and authentication devices and appliances. In addition, it provides integration, technical support, training, financial and credit, marketing, predictive analytics, eCommerce, reseller community hosting, managed, cloud, managed print, and professional services. The company sells its products to resellers through sales representatives. Ingram Micro Inc. was founded in 1979 and i! s headquartered i n Santa Ana, California.

Advisors' Opinion:

• [By Geoff Gannon]

  A huge net-net like Ingram Micro (IM) with nine out of ten years of profits in the last decade is pretty unusual. And Ingram operates on a razor-thin margin. It usually makes about one cent in profit for every dollar of sales.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-services-companies-to-invest-in-right-now.html

Risk Is Everywhere and We're Closer to the End of This Market Run

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NEW YORK (TheStreet) -- Another day of the short hedge funds covering at the all-time highs. This is becoming rather amusing to watch.

What is even more amusing is to see the S&P 500 Trust Series ETF (SPY) volume close trading at a new 2014 low of 58.3 million shares only to see the after-hours hedge fund trading take it to 71.8 million shares. Can you say manipulation?

The DJIA closed Tuesday up 69.23 points to 16675.50 while the S&P 500 closed at 1911.91, up 11.38 points -- another new all-time high on air. The Nasdaq finished up 51.26 at 4237.07 and the Russell 2000 closed up 16.01 points at 1142.20.

The Russell 2000 index is still in Trend Bearish territory while the DJIA, S&P and Nasdaq are in Trend Bullish territory. Trend is a three-month or longer time frame. It has now become very important for me to discuss the degree of risk that is prevalent in this market.

According to my internal algorithm numbers, the large-cap sector -- stocks with a market cap of $4 billion or higher -- is signaling 32 stocks with an extreme, overbought condition versus three with an extreme oversold condition. That is a 10-1 ratio. I am speaking of stocks such as Facebook (FB), Yelp (YELP), Workday (WDAY), Tableau Software (DATA), Linkedin (LNKD), Yandex (YNDX) and Ctrip.com (CTRP). These all have an algorithm number of 99 or higher out of 100. The extreme oversold have a number of under 1. These numbers can be found at www.strategicstocktrades.com. These short hedge funds have pushed these stocks to the limit and traders and investors need to understand the risk that goes along with trying to mimic these hedge funds and buy these momentum stocks. I am neither a bull nor a bear as a trader. But I do have a risk management process that allows me to know when to buy and when to sell. It signals when stocks are extreme overbought and when they are extreme oversold. Traders need to have signals. If not, you are nothing more than a momentum chaser that buys high and sells low. Not a good recipe for success. I am here to tell you this market has a bubble-like feel to it and the PowerShares QQQTrust Series (QQQ) will be the first index to signal extreme overbought with a green open on Wednesday. Heed the signal. This market is near a downturn, and that downturn has the ability to be severe with no trading volume. A market that is at an all-time high on no volume is a market with bubble-like conditions that has been created by the Federal Reserve and its policies to inflate -- policies that are failing miserably right now. It has given us a stock market bubble with a burning currency. On Tuesday, I covered most of my short in EPAM Systems (EPAM) that I added to this morning on green, only to see it trade red this afternoon. I booked a 3% gain. I added to my Yandex (YNDX) short with a 99.99 algo number and added to AmerisourceBergen (ABC) short with a 99.99 number. At the time of publication the author was short ABC, YNDX, and EPAM. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

The 20 Most Important Things Proposed by Howard Marks (Part III Of IV)

11. The Most Important Thing Is… Contrarianism

"To buy when others are despondently selling and to sell when others are euphorically buying takes the greatest courage, but provides the greatest profit." – Sir John Templeton

Howard describes most investors very simply: trend followers. The above average investors must be insightful, skillful, second level thinkers and diverge from the consensus portfolio. Sometimes following the crowd or herd can be profitable, but at other times it my prove to be very unwise and the most unprofitable. At certain inflection points as value investors we must diverge from the crowd, due to fear and skepticism or hope and greed (be greedy when others are fearful and fearful when others are greedy).

Take the lemming as an example. If only this creature had the foresight to stop and leave the warmth of the herd before running over the cliff to its demise for the sake of following. A simple contrarian policy is to buy when they hate them and to sell when they love them, but it may be simpler to say than to do. You have to have the ability to ignore conventional wisdom (as Buffett says, long on conventional short on wisdom) and stick your neck out telling the market it is wrong, as it occasionally is. Contrarians may be strong believers in reversion to the mean and have a strong sense of "intrinsic value" and "a margin of safety" to last through the emotional roller coaster of cycles and swinging of the market pendulum discussed in part II.

Although, as a value investor there is a large difference between "it is over priced" and "it is going down tomorrow." Or, as the famous Keynes quote says, the market may remain irrational longer than one can remain solvent. But if you believe what everyone else believes, you will do what everyone else is doing, and end up with the same results. Howard says in short, two key primary elements to i! nvesting are: "A) seeing some quality that others don't see or appreciate (and that isn't reflected in price) and B) having it turn out to be true (or at least accepted by the market)."

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By definition to be a contrarian is to "oppose or reject popular opinion; going against current practice." As Yogi Berra had said famously, "Nobody goes to that restaurant anymore; it's too crowded." Over course logically it does not make sense, just like the statement "everyone knows that investment is a bargain"; if they did then it would no longer be a bargain as the price would be bid up.

Sometimes when bargains arise, investors are unsure of what to do or how to interpret certain information and will tell themselves that they will wait until the dust settles. I have heard numerous times the dangers of "catching a falling knife" from friends and colleagues — a t which point, shortly after, the knife has been picked up and taken away by other investors, or as the dust settles there is no longer a bargain to be had.

It is important to weigh what might happen in any given situation against the probability of it happening and act accordingly. The unfortunate truth about being a contrarian at times is that it can be quite lonely, or as Howard Marks said in "Everyone Knows, " "It should be clear from the first element that the process has to begin with investors who are unusually perceptive. Unconventional, iconoclastic or early. That's why successful investors are said to spend a lot of their time being lonely."

12. The Most Important Thing Is… Finding Bargains

Bargains may be found when perception is exceptionally worse than reality. A process where every investor should start is having a list of potential investments, estimates of their intrinsic value, a sense of how large or small the margin of safety is in reg! ard to pr! ice and an understanding of the risks involved with each or the correlation among the various asset classes. When you research an investment, if it is fairly valued or richly valued, ask yourself at what price you would buy. As Peter Lynch famously said, "My philosophy has always been, the one who turns over the most rocks, wins the game."

It is important not to reach for yield or to buy at euphoric parts of the cycle, waiting patiently for bargains to come to you. I think of it much like a garage sale or auction where there are many willing buyers participating, but most participants know very little about the value of the items they are buying and are simply buying because they "want" them. Buying regardless of price is no way to prosper financially in the investment world or in everyday life. We must distinguish the difference between price and value clearly, as bargains usually involve irrational behavior or participants not knowing something about them. Being prepared and working hard are the keys to finding bargains.

Howard says these following places are a great place to start to look or turn over rocks. "A) Unknown areas or not fully understood, B) fundamentally questionable on the surface, C) controversial, unseemly or scary and finally D) deemed inappropriate for respectable portfolios."

13. The Most Important Thing Is… Patient Opportunism

"The market is not a very accommodating machine; it won't provide high returns just because you need them." – Peter Bernstein

As talked about briefly throughout part I, part II and above, the best strategy is often sitting on your hands waiting patiently for bargains to present themselves. Think of the pendulum if you wish as a boomerang that is more accurately caught waiting for it to return to you rather than chasing it down and trying to catch it. Oaktree says one of their mottoes is exactly that, "We don't look for investments; they find us." Marks' tells an intelligent story about the ear! ly rise o! f Japanese culture in business (brought about by William Deming). He talked about the word mujo embedded in the Japanese culture. It means cycles will rise and fall, things will come and go, and our environment will change in ways beyond our control. We must be prepared and we must be patient.

Insightfully provided are two keys during a crisis. A) You must be insulated from forces that require selling and B) be positioned to be a buyer instead. To be able to do so, an investor must have "a staunch reliance on value, little or no use of leverage, long-term capital and a strong stomach."

14. The Most Important Thing Is… Knowing What You Don't Know

"It's frightening to think that you might not know something, but more frightening to think that, by and large, the world is run by people who have faith that they know exactly what is going on." – Amos Tversky

There are things in the world that you know you know, there are things you know you don't know, there are things you don't know you know, and there are things you don't know you don't know. Understanding what you don't know and focusing on the things you may be able to control or "knowing the knowable" can provide valuable insight, save time and suppress anxiety. Taking an agnostic view combined with skeptical optimism is a healthy way to live in my opinion, as I do. It can lead to confrontations and arguments, or as I call them, "informative debates."

The most important aspect is second thinking everything, taking an abstract view of how it is conveyed and the incentives behind the proposals, or even more importantly knowing what you cannot know. Big problems may arise when investors forget that there is a difference between probability and actual outcomes and can be caught up in the dogma of others. Staying within your circle of competence, as Warren Buffett says, will lead to better investment results and more importantly, steer you clear of investment mistakes. Are you part of the ! "I know! " school or the "I don't know" school?

Howard Marks provides a way to identify the "I know school" below.

1) They think knowledge of the future direction of economies, interest rates, markets and widely followed mainstream stocks are essential for investment success.
2) They're confident it can be achieved.
3) They know they can do it.
4) They're aware lots of other people are trying to do it too, but they figure either a) everyone can be successful at the same time or b) only a few can, but they're among them.
5) They're comfortable investing based on their opinions regarding the future.
6) They're glad to share their views with others, even though correct forecasts should be of such great value that no one would give them away gratis.
7) They rarely look back to rigorously asses their records as forecasters.

If you are a part of the "I don't know," you will be tired of saying, "I don't know" to friends, colleagues and family. As Mark Twain said, "It ain't what you don't know that gets you into trouble. It is what you know that just ain't so."

15. The Most Important Thing Is… Having a Sense of Where We Stand

"We may never know where we're going, but we'd better have a good idea of where we stand."

Markets cycles have a profound influence on the performance of investors and are both inevitable and unpredictable. As investors the questions we most often ask, and the answers we most often receive, are obvious, and more often then not, they are not the correct ones. We must be both proactive in controlling risk, (thus minimizing mistakes) and reactive in approaching opportunities, bargains and investor sentiment or attitudes towards the present situation. Knowing where we stand much relates to part II, being aware of the pendulum as well as being attentive to cycles.

Howard Marks talks about "taking the market's temperature" through various questions like, "Are investors optimistic or pes! simistic?! Do the media talking heads say the markets should be piled into or avoided? Are novel investment schemes readily accepted or dismissed out of hand? Are securities offerings and fund openings being treated as opportunities to get rich or possible pitfalls? Has the credit cycle rendered capital readily available or impossible to obtain? Are P/E ratios high or low in context of history, and are yield spreads tight or generous? Is too much money chasing too few deals? Has the number of deals increased and the ease of them being done less prudent?"

Understanding where we are should be attentively pursued to a certain extent, the same extent in which you would look at the weather outside when deciding what to wear on any given day. Of course the weather outside is more of an objective matter, where as understanding of where we are in a market cycle may be more objective. This business is the art in which investors must practice and gain from experience, like many other areas of the investment process.

Further reading:

The 20 Most Important Things Proposed by Howard Marks (Part IV of IV)

"It is what it is"

Keep more of your money: Mutual fund fees fall

NEW YORK (AP) — Good news for investors: We're keeping more of what's ours.

Mutual funds charged less to cover operational expenses last year, as a percentage of their total assets. It was the fourth straight year that the average expense ratio fell for stock mutual funds, according to separate reports from the Investment Company Institute and Morningstar. And it's not just stocks that have become cheaper for investors to own. Expense ratios have also dropped for bond and money-market mutual funds in recent years.

It's a win for investors because they get to keep more of their returns, and funds with low expenses have historically performed better than higher-cost rivals, says Russel Kinnel, director of manager research at Morningstar. That's because low-cost funds essentially have a head start in the race for returns: High-cost funds need to make more just to match the performance of their competitors once expenses are taken into account.

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It may seem like no fun to parse expense-ratio data when the difference from one fund to the next may be less than a quarter of a percentage point. "But it's something, and that advantage compounds over time and adds up to something meaningful," Kinnel says. Low costs are such a good predictor of success that Kinnel suggests investors look at a fund's expense ratio first when considering whether to purchase it.

Stock mutual funds had an average expense ratio of 0.74% last year, according to the Investment Company Institute. That means for every $10,000 in assets, a stock fund took $74 to cover expenses. That's down from $77 in 2012 and $100 a decade earlier. The expense ratio covers everything from analysts' salaries to the cost of mailing shareholder reports.

The expense ratio does not include every type of fee that an investor may pay. Some mutual funds charge a fee to investors when they purchase or sell shares, for example. It's called a "load" payment. These have also droppe! d in recent years: Average load fees paid by investors are down nearly 75% since 1990, according to the Investment Company Institute.

A big reason for last year's drop in expense ratios was how well the stock market performed. The Standard & Poor's 500 index returned 32.4%, including dividends, for its best year since 1997. The surging prices meant mutual funds suddenly had more assets. That gave funds a larger base over which to spread their expenses, many of which are fixed. Funds typically have policies that dictate they'll charge a lower fee rate once their total assets top a certain threshold.

Of course, the opposite can also happen. When stock prices fall, mutual funds find themselves with reduced assets, meaning their expense ratios will rise. That's what happened in 2009, when the stock market bottomed after the financial crisis, and the average expense ratio for stock funds rose to 0.87% from 0.83%.

All of this has helped build a greater appreciation among investors for keeping costs low. Of every $1 in net investment that flowed into mutual funds last year, 95 cents went into funds that were ranked in the bottom fifth of their category by cost. Compare that to 2001, when only 11 cents went to the cheapest funds, according to Morningstar.

Much of the drive toward low-cost funds is due to the growing popularity of index mutual funds. Instead of trying to beat the S&P 500 or another index, these funds try to merely match it. And they charge lower fees accordingly. The Vanguard Total International Stock Index fund (VGTSX) attracted $17.9 billion in net investment last year, for example, more than any other stock fund. It has an expense ratio of 0.22%, which Vanguard says is 82% lower than similar funds.

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For bond funds, the average expense ratio was 0.61% last year. That's flat from a year ago but down from 0.75% a decade earlier. Money-market funds saw their average expense ratio fall to 0.17% last ye! ar from 0! .18% in 2012 and 0.42% in 2003.

Low expenses are particularly advantageous for bond funds given how low yields have dropped. Bond investors are getting relatively little interest income, but lower fees mean they can keep a larger portion of that. The 10-year Treasury note has a yield of 2.55%, for example. That's down from 3.36% five years ago and 4.76% a decade ago.

Bond funds with higher expense ratios could buy bonds with bigger yields, such as junk bonds, to compensate. But those carry a higher risk of default.

To be sure, not every corner of the market is seeing a similar trend. Specialized mutual funds tend to carry higher expense ratios. In the search for steadier or better returns, some funds "short" stocks, for example. That lets them profit when a stock's price falls. Other alternative mutual funds invest in futures or commodities, which can be expensive to do.

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The Investment Company Institute includes such alternative funds in its "hybrid" category. It's the only group that saw its average expense ratio rise last year -- up to 0.80% from 0.79% a year earlier.

Dollar index rises to nearly seven-week high

NEW YORK (MarketWatch) — The dollar rose Thursday, with a broad gauge of the currency's strength hitting its highest level in nearly seven weeks, as investors sifted through U.S. economic data that included a strong reading on manufacturing.

Click to Play Jobless claims higher than expected

Brendan Conway takes a look at the markets, including three stocks to watch Thursday. Photo: Getty.

The ICE dollar index (DXY) , which pits the greenback against six other currencies, rose to 80.226 from 80.086 late Wednesday. That's the highest level since April 4, according to FactSet. The WSJ Dollar Index (XX:BUXX) , an alternate gauge of dollar strength, rose to 73.07 from 72.99.

U.S. manufacturing activity rose to a 3-month high in May, according to a flash purchasing managers index from Markit. Existing-home sales rose 1.3% in April to a seasonally adjusted annual rate of 4.65 million. That was the first increase since December but the gain missed market expectations, according to TD Securities. Housing data is of particular interest since Federal Reserve Chairwoman Janet Yellen said earlier this month the recent housing-market weakness should be monitored.

The PMI print was "a very healthy number, enough to offset any disappointment on the home-sales front," said Brad Bechtel, managing director at Faros Trading.

Weekly jobless claims jumped by 28,000 to 326,000 in the week ended May 17, coming in higher than expected. Continuing claims, which are filed by people already receiving benefits, fell by 13,000 to a seasonally adjusted 2.65 million in the week ended May 10.

Investors are speculating when the Fed could begin to raise interest rates, which would make dollar-denominated assets more attractive. Minutes from the Fed's April meeting, released Wednesday, revealed central-bank officials had discussed several ways to eventually tighten monetary policy but didn't decide on specific tools.

The dollar (USDJPY)  rose to 101.73 yen from ¥101.44 late Wednesday. Treasury yields rose Thursday.

The euro (EURUSD)  fell to $1.3654 from $1.3683 late Wednesday.

Markit's euro-zone composite purchasing managers index ticked down to 53.9 in May from 54.0 in April but is on track for its best quarter in three years. Performance continued to diverge between countries, with France swinging into contraction while Germany boasted strong growth.

Best Small Cap Companies To Buy Right Now

The continued recovery in the euro zone, as demonstrated by the PMI data, is likely to dissuade the European Central Bank from taking aggressive easing actions at its June meeting, said Chris Williamson, chief economist at Markit, in a statement.

The British pound (GBPUSD)  declined to $1.6869 from $1.6899 in the prior session.

Investors also paid attention to a surprisingly strong report on Chinese manufacturing. HSBC's Chinese preliminary purchasing managers index in May rose to 49.7 from 48.1 in April, hovering just under the 50 level separating expansion from contraction.

The Australian dollar (AUDUSD)  was at 92.24 U.S. cents versus 92.34 U.S. cents.

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Pipeline through Bulgaria tests EU resolve on Russia

The biggest economic threat? Big companies

Top 5 Heal Care Stocks To Own Right Now

Top 5 Heal Care Stocks To Own Right Now: Thor Industries Inc.(THO)

Thor Industries, Inc., together with its subsidiaries, manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories in the United States and Canada. The company offers a range of travel trailers and motorhomes under the trade name of Airstream, which include Airstream Safari, International, Flying Cloud, and Bambi travel trailers, as well as Interstate Class B motorhomes. It also manufactures and sells conventional travel trailers and fifth wheels under the trade names of Dutchmen, Four Winds, Aero, Grand Junction, Colorado, Cruiser, Seville, Zinger, and Sunset Trail; travel trailers and fifth wheels under trade names of Montana, Springdale, Hornet, Sprinter, Outback, Laredo, Everest, Mountaineer, Challenger, Cougar, Komfort, and Trailblazer; and gasoline and diesel Class C, Class A, and Class B motorhomes under the trade names of Four Winds, Hurricane, Windsport, Mandalay, Dutchmen, Chateau, Serrano, Ventura, and Fun Mover. In addition, it manufactures and sells gasoline and diesel Class A motor homes under the trade names of Daybreak, Challenger, Astoria, Tuscany, Outlaw, and Avanti; travel trailers, fifth wheels, truck campers, and park models under the trade name of General Coach; and park models under the trade names of Tranquility, Westchester, and Breckenridge. Further, the company manufactures small and mid-size transit and commercial buses under the trade names of Aerolite, AeroElite, Aerotech, Escort, MST, Transmark, EZ Rider, Axess, Challenger, Defender, Crusader, American Cruiser, Classic Coach, EZ Trans, GC II, and Pacer. It markets its vehicles through independent dealers to municipalities and private purchasers, such as rental car companies and hotels. The company has a joint venture agreement with Cruise America, Inc. to provide short-term rentals of motorized! recreation vehicles to the public. Thor Industries was founded in 1980 and is based in Jackson Center, Oh io.

Advisors' Opinion:

• [By John Udovich]

  The CEO of recreation vehicle (RV) stock Winnebago Industries, Inc (NYSE: WGO) recently appeared on CNBC to say that the economy is improving for RV makers, meaning its time to take a closer look at the stock plus take a look at the performance of other small cap RV stocks like Drew Industries, Inc (NYSE: DW), Skyline Corporation (NYSEMKT: SKY) and Thor Industries, Inc (NYSE: THO).

• [By Lauren Pollock]

  Thor Industries Inc.'s(THO) fiscal first-quarter earnings rose 33% on the strength of higher sales and wider margins. But results came in lower than expected.

source from Top Stocks Blog:http://www.topstocksblog.com/top-5-heal-care-stocks-to-own-right-now-3.html

U.S. Private Equity Deals Fall From Last Quarter but Continue Overall Rise

First-quarter private equity investment volume and fundraising fell from the fourth quarter but beat the first-quarter levels of the past five years, according to the Private Equity Growth Capital Council.

The council’s quarterly Trends Report also showed that exit volume declined, but still outperformed first quarter results since 2005.

“Despite the severe winter weather, private equity activity in the first quarter was a bright spot for the U.S. economy,” Bronwyn Bailey, PEGCC’s vice president of research, said in a statement.

“Private equity activity continues to experience year-over-year growth since the Great Recession, providing a source of capital to promising companies and investment returns to pension funds, charitable foundations and university endowments.”

The quarterly report’s analysis was based on data from PitchBook, Preqin and Standard & Poor’s Leveraged Commentary & Data. 

Following are some key factors in the new report:

---

Check out Taming Risk in Alts to Fit Into Client Portfolios on ThinkAdvisor.

Suzuki recalls cars built by GM

  What the heck is going on with GM? NEW YORK (CNNMoney) General Motors' recall problems have spread to another automaker.

Suzuki, the Japanese automaker, is recalling 184,000 cars that were built for it in South Korea by GM and sold in the United States.

What's not clear, given that Suzuki stopped selling cars in the U.S. last year, is who will make the repairs when a fix becomes available.

GM (GM, Fortune 500), which so far this year has recalled a record 13.8 million cars and trucks it sold in the U.S., says it has no information about where Suzuki owners should have their cars fixed. Suzuki did not immediately respond to questions about the recall.

The recall was revealed by the National Highway Traffic Safety Administration (NHTSA), the federal safety regulator.

"Suzuki will notify owners but the manufacturer has not yet provided a notification schedule," said NHTSA's notice. "The remedy for this recall campaign is still under development."

The problem is an overheating headlamp switch and module that poses a risk of fires.

The recall covers the 2004 to 2008 Suzuki Forenza and the 2005 to 2008 Suzuki Reno. Earlier this week, GM recalled 218,000 similar cars, the Chevrolet Aveo and Optra.

GM spokesman Alan Adler said the company had been notified of the problem by Suzuki, and that is the reason it recalled its own cars.

The automaker said it is aware of an unspecified number of fires but no injuries or deaths caused by the problem in its versions of the cars. The NHTSA notice did not mention anything about incidents involving the Suzuki vehicles.

AOL, Inc. (AOL): $2 Million Insider Buy Worth Considering

Insider buying remained somewhat constant last week with 158 companies reporting purchase records.

Of the companies on the list, AOL, Inc. (NYSE:AOL) is one worth consideration as the internet service/information provider satisfies a number of iStock's insider buying characteristics.

Bottom Fishing More than one buyer Large Purchase

AOL is a global Web services company with a range of brands and offerings, and a global audience. The Company's business spans online content, products and services, which it offers to consumers, publishers and advertisers. It generates advertising revenues from AOL Properties through the sale of display advertising and search and contextual advertising. It offers a range of display advertising, including text and banner advertising, mobile, video and rich media advertising, sponsorship of content offerings, and local and classified advertising.

[Related -AOL, Inc. (AOL): What To Watch In Q4 Results?]

Bottom Fishing:

AOL's stock price got punished for earnings that disappointed Wall Street. Shares closed at $43.90 prior to reporting EPS and $34.85 the following day; a steep drop that put AOL within whisper distance of the 52-week low of $32.19.

More than one Buyer:

[Related -AOL, Inc. (AOL) Q3 Earnings Preview: What To Expect?]

Although the size disparity hardly could be larger, Director Eve Burton and Chairman and Chief Executive Officer Timothy M. Armstrong both saw value post-EPS and bought AOL shares.

Large Purchase:

Armstrong, who has an annual salary of $3.18 million, purchased 55,600 AOL shares at $36.08 for a total investment of $2,006,048. Two million bucks, not matter how much you make, is a statement of confidence from the CEO. This is head-honcho's first open market buy. His previous activity was limited to acquiring AOL at no cost i.e. exercising options.

Burton purchased 700 shares at $36.95 for an investment of $25,865.

Studies have shown that executives and directors outperform "professional" money managers because they know the intrinsic value of the underlying company. Timothy M. Armstrong provided $2 million reasons why he thinks $36.08 is the place to buy. 

Budget for Higher Electric Bills

Your electricity bills are going to show hefty increases in coming months, even as the reliability of the nation's electric grid grows shakier.

See Also: Kiplinger's Economic Outlooks -- Energy

Capacity constraints loom. Strict new federal clean air rules set to take effect in 2016 will force the shuttering of dozens of coal-fired power plants, which account for a sizable portion of the country's available power generating capacity.

The shutdowns and scramble to offset closed coal power plants with facilities that rely on natural gas to generate power spell sharp cost increases. Some parts of the country may also experience brief outages, though widespread blackouts aren't in the cards. Note, too, that utilities face a growing need to shield the electric grid from terrorism, adding to their costs.

Look for electricity rates to rise about 3% on average this year nationwide, with some regions seeing even steeper hikes. New England will see a 7% jump; the Mid-Atlantic, 4%. Both regions are more reliant on natural gas, and this year's higher natural gas prices are pinching utilities that burn gas for power.

A steeper gain is on tap for next year: a 4% increase nationwide and, in the coal-reliant Midwest, a jump of 5% or so.

The coming shutdowns of coal-fired power plants worry many electric industry experts. Jim Hunter, director of utilities at the International Brotherhood of Electrical Workers, warns that the U.S. Environmental Protection Agency—which wrote the rules to reduce emissions of nitrogen oxide, sulfur dioxide and other pollutants from power plants—is underestimating the extent of the closures.

Hunter says that not enough new, cleaner power plants will be built to offset them. "I have to believe [electricity] prices are going to go up" to encourage the construction of more plants and keep power demand from overwhelming the reduced generating capacity, he says.

Mike Bryson, executive director of systems operations at PJM—the company that coordinates power delivery in much of the Mid-Atlantic region—says he's not concerned that lack of electric generation will cause outages for customers.

However, he does expect electric rates to rise and become more volatile as utilities in PJM's service region shut down coal plants and burn pricier natural gas to generate power. "We still have a sufficient reliability margin" during periods of peak demand, such as this past winter's severe cold weather, he says. However, keeping the system up and running reliably with less coal-fired power will be costly.

Grid operators in the Midwest—home of many of the coal plants slated to close—are even more cautious in their outlook. J.T. Smith, manager of policy studies for grid operator MISO, says that the Upper Midwest faces particularly stiff challenges in adapting to a low-coal future. The retirement of up to 18% of the region's coal plants means that MISO is "taking on a little bit of risk" that future power demand could eclipse supply. Brief, localized outages can't be ruled out, he says.

Meanwhile, utilities are scrambling to protect the electric grid from terrorist attacks, one year after unknown assailants disabled a critical substation in California, nearly causing a sizable blackout. Regulations coming this year from the Federal Energy Regulatory Commission will call for increased surveillance of power stations and transmission lines and require walls and other physical barriers to protect the most critical facilities.

Sue Kelly, president of the American Public Power Association—one of the groups helping to develop the new safety rules—expects that utilities will need to invest heavily in cameras and electronic sensors that can detect intruders, and work closely with local police agencies on developing plans to thwart saboteurs.

Rising electricity prices also create opportunities, especially for large industrial users whose operations are flexible enough to accommodate some brief, voluntary power reductions in exchange for reduced electric rates and cash payments from their utility or grid manager. Such "demand response" programs are going to be called upon heavily in the next few years to smooth out peaks in power demand and avoid unplanned blackouts, particularly in PJM's Mid-Atlantic service region. Higher utility rates also make it more attractive to generate power independently of the electric grid.

The falling cost of solar power systems, for example, will look more attractive as utilities' rates rise, speeding up the return on investment for homeowners and firms that go solar. Big solar installers such as SolarCity and Sunrun figure to see a bump in their already fast-growing markets.

Moreover, businesses specializing in surveillance can expect plenty of demand from utilities looking to safeguard their power stations and related infrastructure. Aerial drones from the likes of AeroVironment and Aeryon are good bets to help patrol the nation's half-million miles of high-voltage power lines, once drones get approved for widespread commercial use in a few years.

Also likely to be in high demand: Sophisticated alarm systems that warn of intruders at far-flung power facilities, such as security firm Optellios' networks of remote sensors and fiber-optic cables.

How to Profit from a Whiskey Shortage

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I have some truly distressing news to report: We're drinking bourbon faster than distillers can make it. Thus, unless demand abates or prices rise, we're looking at a whiskey shortage.

As a whiskey lover, this saddens me. But as an investor, it piques my curiosity. Today, we're going to take a look at how a whiskey shortage might affect distiller stocks.

Regrettably, for those of us who like to live out the songs that Hank Williams Jr. wrote, there is no quick fix to the whiskey shortage. Distillers can't simply ramp up production to meet demand. In order to legally qualify as "straight bourbon," whiskey has to be aged by at least two years, and higher-end bourbons are often aged for a decade or more.

(For scotch, the aging is generally a lot longer; see "Diageo: The Ultimate 12- to 18-Year Play.")

Making it worse, there is a shortage of barrels needed to age the whiskey, which isn't likely to be resolved for another two years. The barrel shortage – and the skyrocketing cost of barrels that has resulted – has led to a battle in neighboring Tennessee over the legal definition of Tennessee whiskey.

Under Tennessee law, "Tennessee whiskey" must, like bourbon, be aged in a new, charred oak barrel. Diageo (DEO), the world's largest spirits company and the owner of the George Dickel Tennessee whiskey brand, is agitating for a law change that would allow whiskey aged in used barrels to qualify. Brown-Forman (BF-B), owner of the iconic Jack Daniels brand, views this as close to sacrilege and is lobbying for the definition to remain unchanged.

All of this is being fueled by the surge in popularity of a spirit that, up until very recently, was considered a drink for old men and backwoods rednecks.

My tastes in liquor have always been stodgy. I like a good bourbon or scotch, and I could never get into vodka cocktails when they were popular. Unless you're James Bond – or a Russian gangster – there's just something a little emasculating about being seen in public drinking a clear, flavorless spirit. And let's face it, vodka doesn’t complement a cigar well.

I'm not sure I like the fact that bearded hipsters have embraced my drinks of choice. But as an investor, I'm very interested in how the whiskey shortage looks to benefit the stocks of the major bourbon distillers.

Let's start with Suntory Beverage & Food Limited (STBFY),which recently completed its acquisition of Beam Inc., formerly the purest play on bourbon. Beam was the owner of the eponymous Jim Beam brand, as well as the higher-end Maker's Mark and Knob Creek and the lower-end Old Crow. Suntory is Japan's leading spirits company, though most Americans will be unfamiliar with its Japanese whisky brands, such as Yamazaki and Hakushu. (Note for booze snobs: Japanese whisky—like Scotch and Canadian whisky—is correctly spelled "whisky." American bourbon, Tennessee whiskey and Irish whiskey are correctly spelled "whiskey.")

Suntory's Beam sells more than bourbon—its brands include Canadian Club Canadian whiskey, Teacher's scotch whisky, Sauza tequila, and Courvoisier cognac, among others—but the Beam empire was first and foremost a bourbon story.

A whiskey shortage should mean better pricing for Suntory's bourbon brands. But unfortunately, this means relatively little for Suntory stock. The Beam acquisition, while accretive to earnings, is small relative to Suntory's size. Beam's sales make up about 12% of the combined entities sales.

As a general rule, I love booze stocks as long-term investments. But Suntory is one that I would recommend avoiding. It relies too heavily on a declining Japanese market, and any stock in Japan is subject to massive macro risk (see "Stay away from Japanese Stocks.")

Enjoy Suntory's fine selection of American bourbons. But avoid Suntory stock.

Diageo PLC

Next up is one of my very favorite long-term holdings: British-based Diageo PLC, the largest and best diversified spirits group in the world.

Diageo recently began marketing its Bulleit Bourbon and Orphan Barrel brand, making it a strong competitor in the small-batch, high-end segment.  Going a little more mainstream, Diageo also markets its George Dickel Tennessee whiskey and its Crown Royal Canadian whisky, which—while distinctly not bourbon—compete with bourbon among drinkers of sweet North American whiskeys.

Diageo will enjoy fat margins on its new premium bourbons. Of this I have little doubt. Yet, as was the case with Suntory, I don't see this having a big impact on Diageo stock.

Diageo is best known for its Scotch brands, and specifically Johnnie Walker. And even while bourbon is enjoying an American renaissance, most whisky lovers outside of America prefer scotch. North American sales for all of Diageo's products make up only about a third of Diageo's revenues, but emerging markets make up about half.

Bourbon can be found in trendy bars in the developing world. But it is still very much a niche product outside of America, and Diageo's primary focus is on strengthening its scotch brands in these markets.

So, while I love Diageo stock and continue to recommend it for long-term investors, I don't see the bourbon whiskey shortage having much of an impact on it.

Brown-Forman

The best-positioned stock to take advantage of the whiskey shortage is Brown-Forman (BF-B), the maker of Jack Daniels Tennessee Whiskey, the most recognizable name in North American whiskeys. Brown-Forman also markets Southern Comfort and a handful of other smaller brands.

At the risk of offending whiskey snobs, Tennessee whiskey and bourbon are almost identical products and both suffer from the same factors causing the shortage. And with Beam now under the Suntory umbrella, Brown-Forman is the only stock that can be thought of as even close to a pure play.

Brown-Forman is a wildly profitable company owing to its branding power. Its return on equity was an impressive 37.5% in the trailing 12 months, and its operating margins a fat 32.3%.

But its current valuation—it trades at 31 times earnings—makes me pause. At that price, you are implicitly expecting one of two things to happen:

The American whiskey boom continues unabated for years…and isn't replaced by something new and trendy. Brown-Forman will be acquired by a larger competitor (think Diageo or Pernod-Ricard (PDRDY)).

The first assumption is one I'd be hesitant to make given the whims of fashion. And the second is even less likely. Brown-Forman is family controlled, and in the past the company has very adamant about preserving its independence.

If Brown-Forman had a nice correction, I would recommend snapping up its shares. But while we're waiting for that to happen, I might instead suggest enjoying a Jack on the rocks this evening to start your weekend right.

Charles Sizemore is the editor of Macro Trend Investor.

Abbott Laboratories Acquiring CFR Pharma for $3.3B (ABT)

On Friday morning it was announced that Abbott Labs (ABT) had made a definitive agreement to acquire CFR Pharmaceuticals, a Latin American pharmaceutical company.

The acquisition will more than double Abbott’s Latin American branded generics presence. Abbott Labs will be acquiring the holding company that owns 73% of CFR, and will conduct a public cash tender offer for the remaining shares of the company. If all publicly traded shares are bought, the deal will be worth $2.9 billion, plus the assumption of approximately $430 million in net debt. Abbott expects to add $900 million in sales in the first full year after acquisition, and expects double-digit sales growth in the years following.

Abbott chairman and CEO Miles D. White had the following comments about the acquisition: “With its scale and leadership positions in the region, strong commercial and development organizations, well-respected leadership team and a trusted portfolio of recognized brands, CFR is one of the leading branded generic companies in Latin America. This acquisition will significantly enhance and broaden Abbott’s Latin American footprint, and is well aligned with our long-term strategy and commitment to fast-growing markets.”

For more on pharmaceutical companies, check out: How Much Dividend-Paying Drug Makers Spend on Research and Development

Abbott stock was inactive in pre-market trading. YTD, the stock is up 2.64%.

ABT Dividend Snapshot

As of Market Close on May 15, 2014

Click here to see the complete history of ABT dividends.

Rieder: Why Philly papers' auction matters

If ever a place needed vibrant public-service journalism, it's Philadelphia.

Sure, Philly has a lively center city, cool gentrifying neighborhoods, top-flight culture, great restaurants, an amazing beer scene and all that sports passion. It's a quirky, astonishingly self-referential place I've been in love with my entire life.

But it has significant social problems: rampant poverty, a decaying education system, endemic corruption.

It's a locale that screams for aggressive, ambitious, relentless watchdog journalism.

That's why a certain auction in Delaware later this month is so significant.

For the past several years the ownership of The Philadelphia Inquirer, the Philadelphia Daily News and philly.com, made up of six local businessmen, has been crippled by a bitter feud between the two co-owners who form the management committee. The two have to agree on major decisions, and they couldn't agree on whether the sun is out. At gunpoint.

The toxic situation came to a head last October when Inquirer Publisher Bob Hall, allied with one of the dueling potentates, fired widely respected Editor Bill Marimow. Marimow had run afoul of co-owner George Norcross, a South Jersey political power and wealthy insurance executive who had participated in Marimow's hiring, then pushed him to, among other things, sharply cut back on editorials and local columns. Marimow does not excel at being pushed.

Marimow's patron, Lewis Katz, the other management committee member and former owner of the New Jersey Nets, went to court and succeeded in having Marimow reinstated. Clearly the status quo is untenable, and the two sides decided to dissolve the ownership.

REM RIEDER: Philly papers star in ugly melodrama

Typically, they couldn't agree on where that should happen (Philadelphia or Delaware) and how it should be done (sealed-bid auction open to everyone or English-style auction limited to the current owners).

George Norcross.(Photo: Matt Rourke, AP)

Norcross won on both counts. On April 25, Delaware Chancery Judge Donald Parsons said the papers and website would be sold at auction to one of the current owners by May 28. Bids start at $77 million in cash.

So why does this tangled tale of broken management matter to anyone but the combatants? Because who ends up owning the news organizations will have a great deal to do with the level of civic discourse in Philadelphia.

Katz and Norcross (and their proxies) represent two radically different approaches to journalism.

Katz has been the champion of Marimow, long associated with serious, in-depth reporting about things that matter. (It doesn't hurt that Katz's longtime companion, Nancy Phillips, the Inquirer's city editor, is a Marimow protege. Only in Philly.)

Even though the Inquirer's staff and resources are much diminished from the days when the Inky was one of the nation's premier news organizations, the paper has continued to do distinguished enterprise reporting on local and regional issues. It's the kind of journalism that's critical everywhere, but especially in a city with Philadelphia's challenges.

(Disclosure: Marimow is a friend and a fellow Philly guy.)

The rap on Marimow is that he's too old-school for the digital era. In fact, he was once demoted as the Inquirer's editor by a previous ownership for having insufficient digital chops.

But consider the alternative. There's much more to be concerned about than Norcross' ham-fisted attempt to bully Marimow. Philly.com is run by Norcross' daughter Lexie. It's a separate entity, and the papers have no control over its content. The papers each have their own relatively new sites behind paywalls, but philly.com, which is free, remains the primary digital face of the Inquirer! and Dail! y News.

And it's not a pretty face. While it's true that many home pages, USATODAY.com among them, are amalgams of high-end and low-end content, philly.com is relentlessly low-end, dominated by crime, sensationalism and all manner of empty-calorie linkbait. (As I write this, one of its top stories is "Former embattled CBS3 anchor expecting first child.") The top-flight work of the two papers often gets short shrift.

Lexie Norcross also thought it would be a good idea to have the sitting Pennsylvania governor, who is up for re-election, write a column for philly.com.

A Katz victory wouldn't necessarily mean nirvana for the future of Philadelphia journalism. He has already talked about the need for more cuts.

But it would be far, far better than the alternative.

Hot Defensive Companies To Own In Right Now

NEW YORK (TheStreet) -- Earnings should be a key driver of any fundamental valuation. This week, a large number of companies will be releasing their quarterly earnings results. Here are three companies found to be undervalued by the ModernGraham valuation model and suitable for either the defensive investor (one who is not willing to undertake substantial research) or the enterprising investor (one who is willing to undertake substantial research).

Freeport-McMoRan Copper & Gold (FCX) is set to release its earnings premarket Thursday, and according to its latest ModernGraham valuation, the company does not pass the requirements of the defensive investor, as it has not consistently paid dividends over the last 10 years, and it has not shown earnings stability over the last 10 years. But it does pass the requirements of the enterprising investor, though it has a higher level of debt relative to current assets than the investor type likes to see.

From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) -- EPSmg is a 5 year weighted average of the annual earnings per share figures -- figure for 2009 to be very low in relation to 2013. As it stands, the EPSmg have grown from  a loss of $1.67 to a gain of $3.48, indicating a high level of growth that would appear to significantly outpace the market's implied estimate of 0.45% earnings growth. This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth. If the company can demonstrate earnings greater than cents for the first quarter, this valuation should be even better.

Hot Defensive Companies To Own In Right Now: Resource Capital Corp.(RSO)

Resource Capital Corp. operates as a specialty finance company that focuses primarily on commercial real estate and commercial finance in the United States. The company?s commercial real estate-related investments include first mortgage loans, first priority interests in first mortgage real estate loans, subordinate interests in first mortgage real estate loans, mezzanine loans, and commercial mortgage-backed securities. It also invests in commercial finance assets, including senior secured corporate loans, other asset-backed securities, equipment leases and notes, trust preferred securities, and debt tranches of collateralized debt and loan obligations. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it is not subject to federal corporate income tax to the extent that it distributes 90% of its REIT taxable income. The company was founded in 2005 and is based in New York, New York.

Advisors' Opinion:

• [By Wallace Witkowski]

  Shares of Resource Capital Corp. (RSO) �declined 3.8% to $5.82 in moderate volume after the real-estate investment trust said it would launch a $100 million offering in notes due 2018.

• [By Eric Volkman]

  Resource Capital (NYSE: RSO  ) is dipping into its coffers for another shareholder payout. The company has declared a dividend for its current quarter of $0.20 per share, which is to be paid on July 26 to shareholders of record as of June 28. That amount matches each of the company's previous five distributions, the most recent of which was paid in late April. Before that, Resource Capital was more generous, dispensing $0.25 per share.

Hot Defensive Companies To Own In Right Now: GEO Group Inc (GEO)

The GEO Group, Inc., incorporated on April 5, 1988, specializes in the ownership, leasing and management of correctional, detention, and re-entry facilities and the provision of community-based services and youth services in the United States, Australia, South Africa, the United Kingdom and Canada. The Company operates in four segments: United States Corrections and Detention segment; GEO Community Services; International Services, and its Facility Construction and Design. The Company's United States Corrections and Detention segment primarily encompasses its United States-based privatized corrections and detention business. GEO Community Services segment consists of its community based services business, its youth services business and its electronic monitoring and supervision service. International Services segment primarily consists of its privatized corrections and detention operations in South Africa, Australia and the United Kingdom. Facility Construction and Design segment primarily contracts with various states, local and federal agencies for the design and construction of facilities for which the Company generally has been, or expects to be, awarded management contracts. In June 2013, it announced the closing of acquisition of the 1,287-bed Joe Corley Detention Center (the Center) in Montgomery County, Texas.

The Company owns, leases and operates a range of correctional and detention facilities, including maximum, medium and minimum security prisons, immigration detention centers, minimum security detention centers, and community based re-entry facilities. The Company offers counseling, education and /or treatment to inmates with alcohol and drugs abuse problems at most of the domestic facilities the Company manages. The Company is also a provider of compliance technologies, monitoring services, and evidence-based supervision and treatment programs for community-based parolees, probationers and pretrial defendants. On December 31, 2012, the Company divested its residential treatm! ent health care facility management contracts, (Residential Treatment Services (RTS)). Effective January 1, 2013, it began operating as a real estate investment trust (REIT). As of December 31, 2012, the Company's worldwide operations included the management and/or ownership of approximately 73,000 beds at 100 correctional, detention and residential facilities, including idle facilities, and also included the provision of monitoring services, tracking approximately 70,000 offenders on behalf of approximately 900 federal, state and local correctional agencies located in all 50 states. During the year ended December 31, 2012, the Company activated four new or expansion projects representing an aggregate of 2,082 additional beds.

The Company has an exclusive contract with the United States Immigration and Customs Enforcement, which the Company refers to as ICE, to provide supervision and reporting services designed to improves the participation of non-detained aliens in the immigration court system. The Company develops facilities based on contract awards, using its project development expertise and experience to design, construct and finance. The Company also provides secure transportation services for offender and detainee populations as contracted domestically and in the United Kingdom through its joint venture, GEO Amey PECS Ltd., which the Company refers to as GEOAmey. The Company provides a diversified scope of services on behalf of its government clients. Its correctional and detention management services involve the provision of security, administrative, rehabilitation, education, and food services, primarily at adult male correctional and detention facilities. Its community-based services involve supervision of adult parolees and probationers and the provision of temporary housing, programming, employment assistance and other services with the intention of the successful reintegration of residents into the community. The Company�� youth services include residential, detention and sh! elter car! e and community-based services along with rehabilitative and educational programs. The Company provides comprehensive electronic monitoring and supervision services. The Company provides secure transportation services for offender and detainee populations as contracted. Through the REIT subsidiaries (TRS) structure, a portion of the Company's businesses, which are non-real estate related, such as its managed-only contracts, international operations, electronic monitoring services, and other non-residential facilities, are part of wholly owned taxable subsidiaries of the REIT. Most of the Company's business segments, which are real estate related and involve company-owned and company-leased facilities, are part of the REIT.

The Company competes with Corrections Corporation of America; Management and Training Corporation; Louisiana Corrections Services, Inc.; Emerald Companies; Community Education Centers; LaSalle Southwest Corrections; Group 4 Securicor; Sodexo Justice Services (formerly Kaylx); Serco; G4 Justice Services, LLC; Elmo-Tech, a 3M Company, and Pro-Tech, a 3M Company

Advisors' Opinion:

• [By Seth Jayson]

  GEO Group (NYSE: GEO  ) reported earnings on May 8. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), GEO Group met expectations on revenues and met expectations on earnings per share.

• [By Sean Williams]

  The premise here would be that any increase in nationwide drug testing would be bound to turn up additional drug users and could boost the prison population. That would be great news for the GEO Group (NYSE: GEO  ) and Corrections Corp. of America (NYSE: CXW  ) , which are contracted out through the government to run and service prisons around the country.

• [By Tyler Laundon]

  And The GEO Group (GEO) is yet another compelling holding that most investors haven't heard of. The company operates correctional and detention facilities for various governments.

• [By Sean Williams]

  Corrections Corp. of America, also known as CCA, and GEO Group (NYSE: GEO  ) �are the two largest contracted prison companies. If there's any doubt that these companies are as good as gold, one need only look at CCA's first-quarter report from last week, which saw normalized funds from operations rise by a whopping 35% to $0.70 per share. CCA also boosted its full-year EPS from a range of $2.05-$2.15 to $2.08-$2.16.

Best Solar Companies To Buy Right Now: ING Groep NV (ISP)

ING Groep N.V. (ING) is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In November 2013, the Company completed the sale of ING Hipotecaria to Banco Santander (Mexico), S.A. In December 2013, the Company completed the sale of its 33.3% interest in China Merchants Fund to its joint venture partners China Merchants Bank Co Ltd and China Merchants Securities Co Ltd, and divested ING Life Korea to MBK Partners. Advisors' Opinion:

• [By Tom Stoukas]

  UniCredit SpA and Intesa Sanpaolo SpA (ISP), Italy�� biggest banks, dropped more than 1 percent as the nation�� benchmark FTSE MIB Index slid 1.2 percent. Rio Tinto Group led mining companies lower after a measure of Chinese manufacturing missed a preliminary estimate. Aryzta AG rallied the most in six months as the Swiss supplier of bakery products reported results that topped projections.

Hot Defensive Companies To Own In Right Now: Illumina Inc.(ILMN)

Illumina, Inc. develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. Its instrumentation products include HiSeq 2000, an instrument for high-throughput (up to 200 Gb per run and up to 25 GB per day) sequencing using sequencing-by-synthesis (SBS) technology; Genome Analyzer IIx, an instrument for medium to high-throughput (up to 95 Gb per run) sequencing using SBS technology; Genome Analyzer IIe, an instrument for low to medium throughput (up to 40 Gb per run) sequencing using SBS technology; iScan System, a high-resolution imaging instrument to scan BeadArray based assays; and BeadXpress Reader, a low- to mid-multiplex, high-throughput instrument for readout of assays. The company?s consumables consist of InfiniumHD Whole-Genome BeadChips comprising HumanOmniExpress, HumanOmni1-Quad, Human1M-Duo, and BovineHD, which are multi-sample DNA analysis microarrays; iSelect Custom Genotyping BeadChips that are custome r designable SNP genotyping arrays; GoldenGate Assay Method, a high throughput assay and genotyping system; GoldenGate Universal-32 Sample BeadChip, which are 32 sample GoldenGate genotyping arrays; Paired-End Genomic DNA Sample Prep Kit, a streamlined library preparation kit to generate 200?500 kb insert paired-end reads; VeraCode GoldenGate that are low plex GoldenGate genotyping arrays compatible with the BeadXpress System; Standard Sequencing Kit, reagents used for SBS chemistry on sequencing platforms; and Infinium Assay Kit, reagents used to perform Infinium assays on the iScan platform. It also provides sequencing and genotyping services. The company?s customers include pharmaceutical, biotechnology, agrichemical, diagnostics, and consumer products companies, as well as research centers. It sells its products through distributors in North America, Europe, the Asia-Pacific, the Middle East, and South Africa. Illumina was founded in 1998 and is headquartered in San Dieg o, California.

Advisors' Opinion:

• [By Daniel Lauchheimer]

  Let us contrast this with TROV's progress. TROV has secured two critical partnerships -- with Illumina (ILMN), and PerkinElmer (PKI). Company filings on the ILMN deal don't provide much detail, but the filings with the PKI deal detail how PKI wants to use TROV's science to develop a new t assay to detect the presence of hepatocelluar carcinoma (HCC). While these two partnerships do not guarantee approval in any way, they do provide a solid validation for TROV's technology.

Hot Defensive Companies To Own In Right Now: Nomura Holdings Inc ADR (NMR)

Nomura Holdings, Inc. provides financial services in Japan and internationally. The company operates in three divisions: Retail, Asset Management, and Wholesale. The Retail division primarily offers investment consultation services to retail clients. It also provides various financial instruments, such as stocks, debt securities, investment trusts, and variable annuity insurance products for the short, medium, and long term. As of March 31, 2011, this division operated a network of approximately 174 branches. The Asset Management division involves in the development and management of investment trusts. This division also offers investment advisory services to public and private pensions, governments and their agencies, central banks, and institutional investors. The Wholesale division engages in the fixed income and equity trading, and asset finance businesses. It provides debt securities, foreign currencies, and stocks, as well as related derivatives; and equities securit ies and equity-linked derivatives; and execution services, such as algorithmic trading and transaction cost analysis. This division also involves in underwriting various types of stocks, convertible and exchangeable securities, investment grade debt, sovereign and emerging market debt, high yield debt, structured securities, and other securities; offers financial advisory services and solutions on business transactions, including mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions; and operates private equity investment business. The company primarily serves individuals, corporations, financial institutions, governments, and governmental agencies, as well as retail and asset management clients. Nomura Holdings, Inc. was founded in 1925 and is headquartered in Tokyo, Japan.

Advisors' Opinion:

• [By Maureen Farrell]

  Shortly after Lehman declared bankruptcy, Barclays (BCS) paid $1.3 billion for most of the firm's North American operations, its Times Square headquarters, and about 9,000 employees. Nomura Holdings (NMR) paid roughly $200 million for Lehman's operations in Asia.

• [By WWW.DAILYFINANCE.COM]

  Ann Summa/Time Life Pictures/Getty ImagesThe Pets.com sock puppet has become synonymous with the dot-com bust. As an investor, you need to be smart about where you're putting your money to work. Investing your hard-earned cash in companies that won't use it well -- or in products that haven't proven themselves -- can quickly come around to bite you. Case in point? These 10 famous examples of investment gone horribly wrong: 1. DeLorean Motor Marty McFly's time-traveling adventures weren't the only juicy story featuring the futuristic DeLorean. The inventor of the car with cool side-opening doors from "Back to the Future was caught on tape during an FBI sting declaring the suitcase of cocaine he planned to sell was as "good as gold." The cocaine, worth $24 million, was John DeLorean's last-ditch attempt to save his floundering company from financial ruin. This (combined with charges of defrauding his partners) lost all trust he had with investors. The firm filed for bankruptcy in 1982. (An unrelated company using the same name services the 9,000 cars made.) 2. The Dutch Tulip Craze In the 1630s, the Dutch were flying high on the flowers recently introduced from Turkey. Tulip bulbs became a highly sought-after commodity, with one bulb going for the equivalent of an entire estate. Many investors got so excited that they sold everything they had to get in on the deal. But, like any craze, tulip mania came to an end. As more people started to grow tulips and prices began to lower, investors raced to sell, resulting in an economic depression that still serves as a warning today. 3. Charles Ponzi The famous swindler, whose name is now synonymous with scams, did his dirty dealings back in the 1920s. Cashing in on people's desire to get rich quick, Charles Ponzi wasn't the first to run a pyramid scheme, but he was the first to get so good at it people took notice. His racket involved enticing investors to buy discounted foreign postal reply coupons, which they coul

• [By Dan Carroll]

  Financial stocks have had a good week as well, as Nomura Holdings (NYSE: NMR  ) reported outstanding earnings. Nomura pulled in a net profit of more than 82 billion yen, more than tripling the result from the quarter a year ago, with the company's retail operations flourishing on the back of the Nikkei's rise. Revenue also jumped more than 30% at the company.

Hot Defensive Companies To Own In Right Now: Essential Innovations Technology Corp (ESIV)

Essential Innovations Technology Corp., incorporated on April 4, 2001, is a development-stage company, focused towards research and development, commercialization and market entry strategies for the intellectual property that it has acquired in regards to multiple green and environmental technology applications such as fluid heating, electricity generation and water treatment/purification.

The Company will focus its activities on development and commercialization of two primary technologies. The first technology is a method for the design of equipment used in the heating of a variety of fluids such as oil, water (to steam). The second technology is a method for the combined mechanical heating and transport of fluids. As of October 31, 2011, the Company had no operations. As of October 31, 2011, the Company had no revenue.

Advisors' Opinion:

• [By Peter Graham]

  Small cap green stocks Essential Innovations Technology Corp (OTCBB: ESIV), Building Turbines Inc (OTCMKTS: BLDW) and Kleangas Energy Technologies Inc (OTCMKTS: KGET) have all been getting some attention lately in various investment newsletters ��either because they were sinking, because of paid promotions or a combination of both. However, there aren�� many green stocks out there that have actually produced some green for investors in the form of profits. With that in mind, here is a quick reality check about all three green small cap stocks to help you decide whether any have the potential for long-term success:

  Essential Innovations Technology Corp (OTCBB: ESIV) Announces New Distribution Agreements

  Small cap Essential Innovations Technology Corp aims to provide eco-friendly lifestyle enhancement solutions for the betterment of energy, water, air and health as the company holds the exclusive global manufacturing, distribution and applications rights to the ��ximius Technologies - Extraordinary solutions for an ever-changing World.' On Friday, Essential Innovations Technology Corp sank 22.79% to $0.0525 for a market cap of $909,953 plus ESIV is up 4,275% over the past year and up 50% over the past five years according to Google Finance.

Hot Defensive Companies To Own In Right Now: Spdr S&P Homebuilders Etf (XHB)

SPDR S&P Homebuilders ETF (the Fund) seeks to replicate as closely as possible, before expenses, the performance of the S&P Homebuilders Select Industry Index (the Index). To accomplish this, the Fund utilizes a passive or indexing approach and attempts to approximate the investment performance of its Index, by investing in a portfolio of stocks intended to replicate the Index.

The S&P Homebuilders Select Industry Index seeks to provide a representation of the homebuilders��sub-industry portion of the S&P Total Market Index. The S&P TMI tracks all the United States common stocks regularly traded on the NYSE, American Stock Exchange, NASDAQ National Market and NASDAQ Small Cap Exchanges. The Homebuilders Index is an equal weighted market cap index.

Advisors' Opinion:

• [By Anora Mahmudova]

  The day�� economic data provided a little support. The sales pace of existing homes ticked down in March to the slowest rate since July 2012, according to data released Tuesday, however the decline was smaller than the consensus rate forecast by economists polled by MarketWatch. The SPDR S&P Homebuilder ETF (XHB) �gained 1%.

• [By John Maxfield]

  Meanwhile, housing is feeling the effects via higher mortgage rates. For portions of last year, a 30-year conventional mortgage carried an interest rate of less than 3.5%. Since the Fed's announcements, the same rate has climbed back to more than 4%. This is sending shivers through homebuilders' stocks, as the net effect is to make homes more expensive. The SPDR S&P Homebuilders (NYSEMKT: XHB  ) ETF, which tracks the housing sector, is down almost 9% since May 22.

• [By Jon C. Ogg]

  1. The U.S. economy grows 3% as housing starts surpass one million and private employment hits an all-time high – All time high on private employment? 1 million housing starts?

  Homebuilder ETF: SPDR S&P Homebuilders ETF (NYSEArca: XHB) as it is tied to homebuilders and building products rather than including other sectors that only overlap in building. At $32.57, its 52-week range is 426.94 to $33.38. Housing Starts were always well over 1 million on an annualized basis each month before the recession, but they only reached that in two months of 2013 (St. Louis Fed data).

  2. 10-Year Treasury yields move toward 3.5% as the Federal Reserve completes tapering and holds short-term rate near zero – This may sound bad, but it is actually good and fits in line with rates not rising too much. Keep in mind that the 10-year Treasury is at 2.94% now and ended at 3.03% on the last day of 2013. Elsewhere on the yield curve, Doll sees many parts of the fixed income market to end 2014 with negative total rates of return.

Hot Defensive Companies To Own In Right Now: Acadia Realty Trust (AKR)

Acadia Realty Trust (the Trust), incorporated on March 04, 1993, is a real estate investment trust (REIT). The Trust is focused on the ownership, acquisition, redevelopment, and management of retail properties and urban/infill mixed-use properties with a retail component located primarily in barrier-to-entry, supply constrained, densely-populated metropolitan areas in the United States along the East Coast and in Chicago. Its primary objective is to acquire and manage commercial retail properties. It operates in four segments: Core Portfolio, Opportunity Funds, Notes Receivable and Other. The Trust also has private equity investments in other retail real estate related opportunities, in which it has a minority interest. As of December 31, 2012, the Trust controlled 99% of the Operating Partnership as the sole general partner. During the year ended December 31, 2012, the Company sold 12 of the 14 self-storage properties with two properties remaining under contract.

The Company owns a 22.2% interest in an approximately one million square foot retail portfolio (the Brandywine Portfolio) located in Wilmington, Delaware, a 49% interest in a 311,000 square foot shopping center located in White Plains, New York (Crossroads) and a 50% interest in an approximately 28,000 square foot retail portfolio located in Georgetown, Washington D.C. (the Georgetown Portfolio). These investments are accounted for under the equity method. Through Mervyns I and Mervyns II, the Company invested in a consortium to acquire Mervyns, consisting of 262 stores (REALCO) and its retail operations (OPCO), from Target Corporation.

As of December 31, 2012, the Company operated 100 properties, which the Company owns or has an ownership interest in, within its Core Portfolio or within its Opportunity Funds. Its Core Portfolio consists of those properties either 100% owned by, or partially owned through joint venture interests by the Operating Partnership, or subsidiaries thereof, not including those properties ow! ned through its Opportunity Funds. These 100 properties primarily consist of urban/street retail, dense suburban neighborhood and community shopping centers and mixed-use properties with a retail component. The properties the Company operates are located primarily in barrier-to-entry, densely-populated metropolitan areas in the United States along the East Coast and in Chicago. There are 72 properties in its Core Portfolio totaling approximately 5.3 million square feet. Fund I has three remaining properties comprising approximately 0.1 million square feet. Fund II has six properties, four of which (representing 0.6 million square feet) are operating, one is under construction, and one is in the design phase. Fund III has 14 properties, nine of which (representing 1.7 million square feet) are operating and five of which are in the design phase. Fund IV has five properties, four of which are operating with one under design. The majority of its operating income is derived from rental revenues from these 100 properties, including recoveries from tenants, offset by operating and overhead expenses.

The Company�� Core Portfolio consists primarily of urban/street retail properties and neighborhood and community shopping centers located in barrier-to-entry supply constrained markets. As of December 31, 2012, there are 72 operating properties in Its Core Portfolio totaling approximately 5.3 million square feet of gross leasable area (GLA). The Core Portfolio properties are located in 12 states and the District of Columbia and primarily consist of urban/street retail, dense suburban neighborhood and community shopping centers and mixed-use properties with a retail component. Its shopping centers are predominately anchored by supermarkets or value-oriented retail. The properties are diverse in size, ranging from approximately 3,000 to 875,000 square feet and as of December 31, 2012, were, in total, 94% occupied. As of December 31, 2012, the Company owned and operated 20 properties totaling approximat! ely 2.5 m! illion square feet of GLA in its Opportunity Funds, excluding eight properties under redevelopment. In addition to shopping centers, the Opportunity Funds have invested in mixed-use properties, which generally include retail activities. The Opportunity Fund properties are located in eight states and the District of Columbia and as of December 31, 2012, were, in total, 88% occupied.

As of December 31, 2012, within its Core Portfolio and Opportunity Funds, the Company had approximately 650 leases. A majority of its rental revenues were from national retailers and consist of rents received under long-term leases. These leases generally provide for the monthly payment of fixed minimum rent and the tenants' pro-rata share of the real estate taxes, insurance, utilities and common area maintenance of the shopping centers. During the year ended December 31, 2012, certain of its leases also provide for the payment of rent based on a percentage of a tenant's gross sales in excess of a stipulated annual amount, either in addition to, or in place of, minimum rents. Minimum rents, percentage rents and expense reimbursements accounted for approximately 92% of its total revenues.

Three of its Core Portfolio properties and five of its Opportunity Fund properties are subject to long-term ground leases in which a third party owns and has leased the underlying land to the Company. The Company pays rent for the use of the land and is responsible for all costs and expenses associated with the building and improvements at all eight locations. During 2012, no individual property contributed in excess of 10% of its total revenues.

Advisors' Opinion:

• [By Marc Bastow]

  Retail properties real estate investment trust Acadia (AKR) raised its quarterly dividend 9.5% to 23 cents per share, payable on Jan. 15 to shareholders of record as of Dec. 15.
  AKR Dividend Yield: 3.51%
  

Hot Defensive Companies To Own In Right Now: International Northair Mines Ltd (INM)

International Northair Mines Ltd is a mineral exploration company engaged in the acquisition, exploration and development of mineral properties throughout North America with a focus in Mexico. In Mexico, exploration is conducted by its wholly owned subsidiary, Grupo Northair de Mexico, S.A. de C.V. (Grupo Northair). Its projects include La Cigarra Project, Sierra Rosario Project, and El Reventon Project. The La Cigarra Project is located near the municipality of Parral, in the State of Chihuahua in north central Mexico. La Cigarra consists of mineral concessions totaling approximately 32,000 hectares. The El Reventon Project is located in the municipality of Otaez, Durango and is approximately 170 kilometers northwest of the capital city of Durango. The El Reventon Project consists of approximately 3,400 hectares. Sierra Rosario silver/gold project is staked by the Company and joint ventured to American Consolidated Minerals Resources Corp., which has a 50% interest in the property. Advisors' Opinion:

• [By Alexis Xydias]

  The ISEQ Index (ISEQ) in Ireland and the ASE Index in Greece, the first two nations to receive European Union-led bailouts, have soared more than 28 percent this year to lead gains among 18 national benchmarks in western Europe. Dublin-based Independent News & Media Plc (INM) and Athens-based Aegean Airlines SA (AEGN) rose the most, with jumps of more than 180 percent. Germany�� DAX Index (DAX) has advanced 18 percent in 2013, reaching a record.