Bulk REO Investor Profit Strategies

It’s not going to be news to any of you reading this article that we’re currently seeing an unprecedented number of property foreclosures in the US. Obviously the foreclosure crisis and the credit crunch which has followed on its heels are tragic situations for many and definitely deserve the title of crisis. However, this is also a time with an incredible number of opportunities for real estate investors who have the resources needed to take advantage of the situation and making investments now when real estate prices are at the lowest levels seen in many years.

One thing which is attracting a particularly large number of property investors at the moment is bulk REO investing, a real estate investment strategy which offers excellent prospects for profits and given the price of many of the properties currently on the market, these investments also provide the investor with an excellent profit margin.

Unless you’ve been doing a lot of research on your own or have some experience in the real estate market, you probably aren’t quite sure how to make profitable investments in bulk REO properties. In fact, you may not even be sure exactly what these properties are, other than they’re something a lot of people in the real estate business are talking about.

First, you need to know a little more about the process of property foreclosure, which is how bulk REO properties become available in the first place. We’ll assume you know the basics of how a home goes into foreclosure and avoid covering ground that’s been covered more thoroughly elsewhere. We all know that foreclosures are the ultimate result of a homeowner being unable to pay their mortgage. Eventually the property goes into the foreclosure process and unless the owner manages to bring their payments up to date before a defined grace period has elapsed, the home is sold, most often at a public auction.

When a home goes up for auction and is not sold, the property reverts to the lender. The property is then considered a REO property, Short for Real Estate Owned, the term originates in the record keeping systems used by banks and other financial institutions who provide mortgages and other financing for the purchase of homes. Since banks: 1) are not in the real estate business – and – 2) these properties represent a poor investment on the part of the lender, these institutions are eager to be write off these properties, even if this means selling the property at a loss.

Lenders often list these REO properties with real estate agents in an attempt to sell them, but in many cases the bank will package several properties at one very low price, often only pennies on the dollar; but anyone interested in buying these properties must buy them all as a single bulk purchase. However, for the experienced investor or savvy newcomer who has access to funding, these bulk REO properties can be a very profitable investment indeed.

The approach which many take in pursuing bulk REO investments is to work together with a partner who has access to funding sufficient to make these larger purchases. This is where things can get a little tricky for those who are new to the world of real estate investments, since creative funding strategies are sometimes called for to secure the liquid assets necessary. Investors who are interested in the possibilities and the enormous profit potential represented by bulk REO investments would do well to get in touch with real estate investment professionals who have the experience, the industry contacts and the financing know-how to make these unconventional but very lucrative investments a done deal.

There has never been a better time to get involved in real estate investment than the present – and with the opportunities offered by bulk REO property investments, there has rarely, if ever been more money to be made by investors. If you’re even the slightest bit interested in making profitable investments in foreclosed properties, investing in bulk REO properties is something that you owe it to yourself to look into.

Duncan Wierman is the founding members of “Bank REO Property Deals, his company is connecting sellers of verifiable” product with qualified buyers. If you are interested in learning more about Bulk REO investing, his site also contains great information about how to started, interviews with other experts, along with sample sanitized tapes to review. Visit: http://www.bankreopropertydeals.com/.

Best Stocks To Invest In 2011-12-23-3

Celanese Corporation (NYSE:CE), a global technology and specialty materials company and a North American leader in Ethylene Vinyl Acetate (EVA) polymers, announced that its subsidiary, Celanese EVA Performance Polymers Inc., will increase the price of all grades of Ateva� EVA by $0.10/pound and all grades of LDPE by $0.06/pound effective January 1, 2012, or as contracts allow. Customers should contact their Celanese sales representative for more details.

Celanese Corporation manufactures and markets chemical products worldwide. It involves in processing chemical raw materials, such as methanol, carbon monoxide and ethylene, and natural products, including wood pulp into value-added chemicals, and thermoplastic polymers.

Crown Equity Holdings, Inc. (CRWE)

Many business owners equate VoIP with cost savings, largely because of widespread advertising campaigns touting consumer VoIP offerings. However, cheaper calls are only a small part of the story for the business market, which demands quite different phone system capabilities. For the business market, the upfront equipment investment and ongoing technical resources required to successfully install and manage an IP-based phone system can be substantial and costly, depending on the deployment. Fully understanding the impact of VoIP beyond monthly long-distance savings requires a comprehensive assessment of the benefits, costs and choices associated with VoIP.

Besides the upfront investment, many small and mid-sized businesses are reluctant to deploy VoIP phone systems because they have limited internal technical resources and expertise, and lack access to the extensive IT staffs enjoyed by larger enterprises. In addition, small and mid-sized businesses often cannot risk the reliability and quality issues that plague consumer VoIP phone service delivered over the public Internet.

Crown Equity Holdings, Inc., together with its digital network, currently provides electronic media services specializing in online publishing, which brings together targeted audiences and advertisers. Crown Equity Holdings Inc. offers internet media-driven advertising services, which covers and connects a range of marketing specialties, as well as search engine optimization for clients interested in online media awareness.

Crown Equity Holdings Inc. (CRWE.OB) announced that its subsidiary Crown Tele Services Inc. has entered into a letter of intent with AVIX Technologies, Inc., which sets forth terms by which AVIX Technologies, Inc. will acquire an exclusive licensing agreement for Canada and a non-exclusive global licensing agreement in the hospitality, foodservice and tourism industries for telecommunications including VoIP (Voice Over Internet Protocol) telecom technology systems for residential and commercial services, calling card and cellular phone applications.

Crown Tele Services Inc. is a provider of affordable, world class (VoIP) communications solutions and is a wholly owned subsidiary of Crown Equity Holdings Inc.

For more information please visit official website of CRWE: www.crownequityholdings.com

NSTAR (NYSE:NST) announced, in anticipation of completing its pending merger with Northeast Utilities, that its Board of Trustees has declared a pro rata dividend of $0.004722 per common share per day for the period from October 22, 2011, the day after the last record date, through and including December 20, 2011. The record date for the pro rata dividend will be the earlier of the day before the closing date of the merger or December 20, 2011. The daily dividend rate is equivalent to the most recent quarterly dividend rate of $0.425 per common share, and would total $0.28332 per share if the merger does not close on or prior to December 20, 2011. If the merger closes prior to December 20, 2011, the pro rata dividend amount will be based on the daily rate from October 22, 2011 through and including the closing date of the merger. The pro rata dividend will be paid within 20 days after the record date.

NSTAR, through its subsidiaries, engages in sale, distribution, and transmission of electricity and natural gas to commercial, industrial, and residential customers in Massachusetts.

Covidien plc (NYSE:COV), a leading global provider of healthcare products, announced that the U.S. Food and Drug Administration (FDA) has cleared SpiderFX� for the treatment of severely calcified lesions used in conjunction with plaque excision in arteries of the lower extremities. It is the only embolic protection device indicated for this treatment in the United States.

Covidien Public Limited Company develops, manufactures, and sells healthcare products for use in clinical and home settings in the United States and internationally.

Best Stocks To Invest In 2012-2-9-3

NDA Submission Targeted for Mid 2012

RALEIGH, NC & TARRYTOWN, NY — (CRWENEWSWIRE) — Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) and Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) today announced the successful outcome of the Phase 3 trial to evaluate the efficacy and safety of oral methylnaltrexone for the treatment of opioid-induced constipation (OIC) in subjects with chronic, non-cancer pain. This trial, evaluating three once-daily oral methylnaltrexone dosing regimens (150, 300 and 450mg), demonstrated highly statistically significant results for the primary endpoint in two of the three treatment arms when compared to the placebo treatment arm. Both the 300 and 450 mg treatment arms demonstrated highly statistically significant improvements in rescue-free bowel movement (RFBM) within 4 hours of administration over 28 days of dosing when compared to placebo treatment. In addition, the 300 and 450 mg treatment arms demonstrated highly statistically significant improvements in RFBM within 4 hours of administration following the first dose when compared to placebo treatment. Statistically significant efficacy was also seen in both the 300 and 450 mg treatment groups for the two key secondary efficacy endpoints including one assessing response (responder/non-responder) to study drug during Weeks 1 to 4 where �responder� is defined as having 3 or more RFBMs per week, with an increase of at least one RFBM per week over baseline, for at least 3 out of the first 4 weeks. Overall, efficacy of oral methylnaltrexone in this study was comparable to that reported in clinical studies of subcutaneous methylnaltrexone in subjects with chronic, non-cancer pain. The overall observed safety profile seen in patients treated with oral methylnaltrexone was comparable to placebo in this study.

�We are extremely pleased with the outcome of this 804-subject Phase 3 trial of oral methylnaltrexone in the treatment of opioid-induced constipation in subjects with chronic, non-cancer pain,� stated Bill Forbes, Pharm.D., Executive Vice President, Medical and R&D, and Chief Development Officer, Salix. �The results of this Phase 3 study show a clear dose response for oral methylnaltrexone. We look forward to presenting detailed data from this study at a medical conference in 2012, as well as submitting the New Drug Application (NDA) for this oral formulation mid-year 2012.�

�Subcutaneous methylnaltrexone, currently marketed as RELISTOR(R), is an effective and well-tolerated therapy used to alleviate OIC in advanced illness patients receiving opioids for pain,� said Robert J. Israel, M.D., Progenics� Senior Vice President for Medical Affairs. �We believe an oral dosage form, if approved, could help patients suffering from OIC resulting from opioid treatment for their chronic pain.�

The study assessed a once-daily oral methylnaltrexone dose of 150, 300 or 450 mg compared to placebo for 84 days. Subjects received oral methylnaltrexone once daily during the first 28 days and on a PRN basis for the remaining 56 days.

About Opioids, Constipation and RELISTOR (methylnaltrexone bromide)

Opioid analgesics are frequently prescribed to manage pain in patients with advanced illness. Constipation commonly occurs in palliative-care patients receiving opioid therapy for pain. RELISTOR is the first approved medication that specifically targets the underlying cause of OIC in these patients, when response to laxatives has been insufficient. Opioids relieve pain by specifically interacting with mu-opioid receptors within the brain and spinal cord. However, opioids also interact with mu-opioid receptors found outside the central nervous system, such as those within the gastrointestinal tract, resulting in constipation that can be debilitating. RELISTOR (methylnaltrexone bromide) is a peripherally acting mu-opioid receptor antagonist that decreases the constipating effects of opioid pain medications without affecting their ability to relieve pain. RELISTOR selectively displaces opioids from the mu-opioid receptors outside the CNS, including those located in the gastrointestinal tract, thereby decreasing their constipating effects. Because of its chemical structure, RELISTOR does not affect the opioid-mediated analgesic effects on the CNS.

About RELISTOR

RELISTOR is a peripherally acting mu-opioid receptor antagonist that counteracts the constipating effects of opioid pain medications in the gastrointestinal tract without affecting their ability to relieve pain. RELISTOR Subcutaneous Injection is approved in the United States for the treatment of OIC in patients with advanced illness who are receiving palliative care, when response to laxative therapy has not been sufficient. The use of RELISTOR beyond four months has not been studied. The drug is also approved for use in over 50 countries worldwide, including the European Union, Canada, Australia and Brazil. In the 27 member states of the E.U., as well as Iceland, Norway and Liechtenstein, RELISTOR is approved for the treatment of opioid-induced constipation in advanced illness patients who are receiving palliative care when response to usual laxative therapy has not been sufficient. In Canada, the drug is approved for the treatment of opioid-induced constipation in patients with advanced illness, receiving palliative care. When response to laxatives has been insufficient, RELISTOR should be used as an adjunct therapy to induce a prompt bowel movement. Applications in additional countries are pending. RELISTOR is under license to Salix from Progenics Pharmaceuticals, Inc.

Important Safety Information for RELISTOR Subcutaneous Injection

RELISTOR is indicated for the treatment of opioid-induced constipation (OIC) in patients with advanced illness who are receiving palliative care, when response to laxative therapy has not been sufficient. Use of RELISTOR beyond four months has not been studied.

RELISTOR is contraindicated in patients with known or suspected mechanical gastrointestinal obstruction. If severe or persistent diarrhea occurs during treatment, advise patients to discontinue therapy with RELISTOR and consult their physician. Use of RELISTOR has not been studied in patients with peritoneal catheters.

Safety and efficacy of RELISTOR have not been established in pediatric patients.

Rare cases of gastrointestinal (GI) perforation have been reported in advanced illness patients with conditions that may be associated with localized or diffuse reduction of structural integrity in the wall of the GI tract (i.e., cancer, peptic ulcer, Ogilvie�s syndrome). Perforations have involved varying regions of the GI tract (e.g., stomach, duodenum, colon).

Use RELISTOR with caution in patients with known or suspected lesions of the GI tract. Advise patients to discontinue therapy with RELISTOR and promptly notify their physician if they develop severe, persistent, and/or worsening abdominal symptoms.

The most common adverse reactions reported with RELISTOR compared with placebo in clinical trials were abdominal pain (28.5% vs 9.8%), flatulence (13.3% vs 5.7%), nausea (11.5% vs 4.9%), dizziness (7.3% vs 2.4%), diarrhea (5.5% vs 2.4%), and hyperhydrosis (6.7% vs 6.5%).

RELISTOR full Prescribing Information for the U.S. is available at www.relistor.com.

About Salix

Salix Pharmaceuticals, Ltd., headquartered in Raleigh, North Carolina, develops and markets prescription pharmaceutical products for the prevention and treatment of gastrointestinal diseases. Salix�s strategy is to in-license late-stage or marketed proprietary therapeutic drugs, complete any required development and regulatory submission of these products, and market them through the Company�s gastroenterology specialty sales and marketing team.

Salix also markets XIFAXAN(R) (rifaximin) tablets 200 mg and 550 mg, MOVIPREP(R) (PEG 3350, sodium sulfate, sodium chloride, potassium chloride, sodium ascorbate and ascorbic acid for oral solution), OSMOPREP(R) (sodium phosphate monobasic monohydrate, USP and sodium phosphate dibasic anhydrous, USP) Tablets, VISICOL(R) (sodium phosphate monobasic monohydrate, USP, and sodium phosphate dibasic anhydrous, USP) Tablets, APRISO� (mesalamine) extended-release capsules 0.375 g,), RELISTOR(R) (methylnaltrexone bromide) Subcutaneous Injection, SOLESTA(R), DEFLUX(R), METOZOLV(R) ODT (metoclopramide HCl, PEPCID(R) (famotidine) for Oral Suspension, Oral Suspension DIURIL(R) (Chlorothiazide), AZASAN(R) (Azathioprine) Tablets, USP, 75/100 mg, ANUSOL-HC(R) 2.5% (Hydrocortisone Cream, USP), ANUSOL-HC(R) 25 mg Suppository (Hydrocortisone Acetate), PROCTOCORT(R) Cream (Hydrocortisone Cream, USP) 1% and PROCTOCORT(R) Suppository (Hydrocortisone Acetate Rectal Suppositories) 30 mg. Crofelemer, budesonide foam, RELISTOR(R), Lumacan(R) and rifaximin for additional indications are under development.

For full prescribing information and important safety information on Salix products, including BOXED WARNINGS for VISICOL, OSMOPREP and METOZOLV, please visit www.salix.com where the Company promptly posts press releases, SEC filings and other important information or contact the Company at 919 862-1000.

Salix trades on the NASDAQ Global Select Market under the ticker symbol �SLXP�.

For more information, please visit our Website at www.salix.com or contact the Company at 919-862-1000. Follow us on Twitter (@SalixPharma) and Facebook (www.facebook.com/SalixPharma). Information on our web site is not incorporated in our SEC filings.

About Progenics

Progenics Pharmaceuticals, Inc., of Tarrytown, N.Y., is a biopharmaceutical company focused on innovative therapeutics for patients suffering from cancer and related conditions. Progenics� pipeline candidates include PSMA ADC, a human monoclonal antibody-drug conjugate in phase 1 testing for treatment of prostate cancer, and preclinical stage novel multiplex phosphoinositide 3-kinase (PI3K) inhibitors for the treatment of cancer. Progenics has exclusively licensed development and commercialization rights for its first commercial product, RELISTOR(R), to Salix Pharmaceuticals, Ltd. for markets worldwide other than Japan, where Ono Pharmaceutical Co., Ltd. holds an exclusive license for the subcutaneous formulation. RELISTOR (methylnaltrexone bromide) subcutaneous injection is a first-in-class treatment for opioid-induced constipation approved in more than 50 countries for patients with advanced illness. Regulatory approval is pending for use of RELISTOR in patients with chronic, non-cancer pain.

Please Note: The materials provided herein contain projections and other forward�looking statements regarding future events. Such statements are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others: the unpredictability of the duration and results of regulatory review of New Drug Applications and Investigational NDAs; market acceptance for approved products; the cost, timing and results of clinical trials and other development activities involving pharmaceutical products; generic and other competition; litigation and the possible impairment of, or inability to obtain, intellectual property rights and the costs of obtaining such rights from third parties in an increasingly global industry; and revenue recognition and other critical accounting policies. More information concerning Progenics and Salix is available on the companies� websites, as well as in press releases and reports they file with the U.S. Securities and Exchange Commission.

Source: Salix Pharmaceuticals, Ltd.

Contact:
Salix Pharmaceuticals:
Adam C. Derbyshire, 919-862-1000
Executive Vice President and Chief Financial Officer
or
G. Michael Freeman, 919-862-1000
Associate Vice President, Investor Relations and Corporate Communications
or
Progenics Pharmaceuticals:
Investors:
Amy D. Martini, 914-789-2816
Corporate Affairs
amartini@progenics.com
or
Media:
Aline B. Schimmel, 312-238-8957
Scienta Communications
aschimmel@scientapr.com

 

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

Musings on a Big Mining Merger: BHP Billiton and Alcoa

Merger and acquisition activity in the commodity sector has been growing over the past few months. Inmet Mining (IEMMF.PK) and Equinox Minerals (EQMIF.PK) are locked in a bidding war for Lundin (LMC), BHP Billiton (BHP) acquired of Chesapeake Energy’s (CHK) shale gas field, and Newmont Mining’s (NEM) $2.3 billion dollar purchase of Fronteer Gold Inc. (FRG) stand as a few recent examples.

Mid-tier commodity producers are looking to add assets, while major metal producers across the board are flush with cash and surveying the landscape. The big question is: What assets are likely to be in favor and acquired next?

While natural gas is the obvious choice, due to its low price from high inventories and increasing production, there are some questions regarding recent purchases as evidenced in the Marcellus Shale region, where resource estimates appear to be overly optimistic.

An alternative -- off the radar screens of many investors but gaining interest -- is aluminum. Aluminum is becoming an alternative to steel in the automobile industry, where auto manufacturers are looking to lessen the weight of cars in order to increase fuel economy. Consumer electronics is another burgeoning area, with aluminum content in laptops expected to increase 30% over the next three years as manufacturers look to aluminum's heat conductivity, durability, and light weight as attractive features. In fact, one of the iPhone (AAPL) rumors is that the backing of the phone will once again be made from aluminum.

In the copper markets, aluminum can be substituted in electrical wires, although transmission losses are greater, making aluminum a less-efficient conductor of electricity.

During the recent market selloff, the aluminum spot price moved sideways, holding support despite high inventories. This strength is an indication that, when the market begins to turn higher, lagging commodities like aluminum will lead the next leg up.

Looking at the futures curve, aluminum is in contango, with prices continuing to move higher in lockstep with the spot price.

Of the major, global aluminum producers, Rusal is tied up in a sticky situation with Norilsk Mining; even if resolved, it would not be open to an acquisition. Chalco is a state asset to China and Alcan (AL) is owned by rival Rio Tinto (RIO). A year ago, Brazil’s Vale (VALE) sold its aluminum business to Norsk Hydro ASA (NHY) for $4.9 billion, which was settled a week ago.

This leaves Dow Jones Industrial Average component Alcoa (AA) the only remaining major independent aluminum producer. Alcoa levered itself up before the credit crisis and has spent the last few years reorganizing and paying down debt. Currently, it has $9 billion in debt and $1.55 billion in cash on the balance sheet. Revenues for the fourth quarter were up 7% sequentially with the full effect of the fourth quarter rise in aluminum prices to be felt this quarter.

Alcoa has been moving into new markets for aluminum, touting its lightweight and durability. While a major producer, Alcoa could be potential takeover target for a major mining firm looking to expand into the aluminum sector.

As for potential acquirers, BHP Billiton may be interested, given some of CEO Marius Kloppers' recent comments.

BHP Billiton is one of the largest commodity producers, with diversified global operations and status as a major player in the copper, nickel, iron ore, thermal and metallurgical coal markets. During the second half of 2010, revenues rose 39% to $34.2 billion dollars and net operating cash flow rose to $12.2 billion dollars on the back of strong commodity demand across all business segments. Currently, BHP has a very strong balance sheet with $16.1 billion in cash on hand, and it's expanded its share buyback program to $10 billion dollars.

After the recent earnings announcement, BHP’s stock sold off as investors were not happy to hear that the company would forego the acquisition route after failed runs at Rio Tinto and Potash Corp. (POT). The new strategy would be to invest $80 billion internally over the next five years. Afterwards, Kloppers speculated that high commodity prices have made takeover targets expensive, but indicated there are areas where BHP is weak and can add to its portfolio.

A few days later, BHP announced the purchase of Chesapeake Energy Corporation’s Fayetteville, Arkansas shale gas interests for $4.75 billion, giving BHP an entry into the shale gas business. The transaction will give BHP access to 487,000 acres with 2.4 TCF proven reserves and 10 TCF risked resource.

With natural gas prices low in the U.S. because of high inventories, and additional supply coming online, the transaction makes sense from a long-term perspective for BHP. It is able to buy low and add an attractive asset at a reasonable price.

BHP is currently one of the top seven producers of primary aluminum worldwide -- a large but not major player, especially when compared to Rusal and Rio Tinto’s Alcan division. In terms of comparison, BHP’s market cap overwhelms Alcoa’s by an approximately 14:1 ratio from $249 billion to $17.6 billion, so an all-stock transaction would not be significantly dilutive to current shareholders. On an enterprise value basis, the ratio is lower at 10:1, with BHP’s enterprise value being $241 billion against $24.7 billion from Alcoa, but still not very dilutive.

From a revenue perspective, Alcoa’s $21 billion would add significantly to BHP’s top line revenue of $62.61 billion. EBITDA is a much higher difference, with BHP’s being $30.91 billion to Alcoa’s $2.72 billion, but this can be explained partially by BHP’s coal products being in high demand worldwide and aluminum’s drop in prices after the 2008 collapse, which is only now beginning to gain steam.

In the second half of 2010, BHP’s net operating cash flows totaled $12.193 billion, while Alcoa’s cash flow from operations totaled $1.762 billion.

BHP could offer a combination of cash and stock at 1x revenues for Alcoa as a starting point. This would be a decent premium to Alcoa’s closing price and be only slightly dilutive to current BHP shareholders.

Alcoa’s debt is not out of line with the combined cash flow from both parties, and can easily be paid down within a couple of years.

For BHP, an acquisition of Alcoa would make sense from the standpoint of diversifying its iron ore and copper portfolio into an asset that would benefit from the substitution effect.

Aluminum is a metal whose price has been beaten down since 2008 and is only just now recovering. This gives BHP price upside and the ability to become a major player in aluminum.

An acquisition of Alcoa fit nicely with Kloppers' recent comments about adding assets at a reasonable price in an area where it is weak.

Disclosure: I am long AA.

Forex: EUR/USD squeezes shorts as Greece approves loan deal – Forexrazor

Forex: EUR/USD squeezes shorts as Greece approves loan deal Forexrazor High-Risk Warning Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, … Forex Flash: Time phenomenon in Aussie appreciation since the 2008 crisis – ANZNASDAQ all 6 news articles »

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5 Potentially Undervalued Dividend Stocks With Strong Balance Sheets

With all of the talk about dividends lately I thought I would take a look at some companies that may not be as well known and potentially undervalued. Buyers have been bidding up the price of utility and high paying telecom stocks and for good reason. While there still could be some long-term value in the utility and telecom stocks, I do not expect that to last long as buyers continue to buy the big name dividend payers.

Below is a list of stocks with strong dividends and even stronger balance sheets.

Aceto Corp. (ACET)

Aceto Corp. is a distributor of over 1000 chemical compounds and crop protection products to companies located in North America, South America, Europe, and Asia. ACET reported earnings of $0.26 per share for the fiscal year ended June 30, 2010 compared to $0.35 for the same period in 2009. However, ACET finished its year with a blowout fourth quarter with earnings per share increasing 303.2% to $0.17 per share. The stock popped on the news, but still has an attractive valuation. ACET sports a dividend yield of nearly 3% and with earnings increasing substantially in the fourth quarter just might make this stock a good long-term play for both income and growth.

Kimball International, Inc. (KBALB)

Kimball International, Inc. is multinational manufacturer of furniture and electronic assemblies. The economy has taken a toll on the furniture business and this is reflected in the stock price. After dipping in 2009 the electronics division revenues recovered in 2010. However, Bayer AG represented 24% of the electronics division sales and KBALB expects sales to Bayer AG to begin declining in the fourth quarter of fiscal 2011. KBALB reported earnings of $0.27 per share for fiscal year ended June 30, 2010. This is down substantially from the $0.46 reported in 2009. KBALB has reduced its dividend to .05 per quarter, but still boasts a hefty 3.6% yield. KBALB has a history of paying generous dividends when times are good, so I would anticipate they may raise the dividend once the economy and earnings begin to recover.

Daxor Corporation (DXR)

Daxor Corporation is a medical instrumentation and biotechnology company. DXR also has a large investment portfolio. The investment portfolio is comprised of primarily electric utility common and preferred stocks. DXR will use options and may have net short positions in common stock up to 15% of the value of the portfolio. On the medical side the Company’s primary product is the BVA-100 Blood Volume Analyzer. This product currently produces less than $1 million in revenue so DXR relies heavily on its investment portfolio to cover expenses.

DXR instituted its dividend policy in 2008 and paid $1.50 followed by $1.35 in 2009. Management stated it intends to pay $1.00 in 2010. To date DXR has declared $0.35 in dividends. It is customary for DXR to declare a larger dividend in the fourth quarter so there is still time to take advantage of the bulk of the $1.00 that DXR intends to pay. However, there is not a guarantee they will declare a dividend in the fourth quarter or that they will payout the full $1.00 they intend to pay. DXR trades under its book value of $10.16 per share which consists mostly of its investment portfolio which leaves room for appreciation especially if the BVA-100 becomes a success.

Friedman Industries, Inc. (FRD)

Friedman Industries, Inc. is engaged in steel processing, pipe manufacturing and processing, along with steel and pipe distribution. FRD recently raised its dividend to $0.08 giving the stock a yield of 4.7% at current prices. FRD also announced that earnings were on the mend as it reported net income of $0.21 per share for the quarter ended June 30, 2010 compared to a loss of $0.02 for the same period in 2009. Revenue more than doubled for the quarter. The steel industry can be a tough business so it is hard to say if these earnings are sustainable going forward, but FRD has a nice cushion of over $14 million in cash and no long-term debt. FRD is also currently trading 20% below book value which combined with recent earnings should give the stock price room to grow.

Risk Industries, Inc. (RSKIA)

Risk Industries, Inc. primarily manufactures and markets security products, data entry peripherals, push button switches, and proximity sensors. Similar to DXR, RSKIA also has a large investment portfolio. At July 31, 2010 the investment portfolio was valued at approximately $18 million plus RSKIA had $5.7 million in cash. The liabilities for RSKIA are negligible. Earnings were $0.05 for the quarter ended July 31, 2010 up from $0.04 for the same period in 2009. The stock is currently trading at a nearly 10% discount to book value. Management recently declared a dividend of $0.20 to shareholders of record as of September 30, 2010 so there is still time to take advantage of this 4.1% yield. Be careful if your due diligence leads you to purchase shares of RSKIA as this stock is thinly traded and limit orders are a must.

Disclosure: The author does not hold a position in any stock mentioned in this article at the time of this writing.

This Morning: More Pain for Drive Makers, Nexus Goes up Against Kindle

Here are some things going on this morning in your world of tech.

More pain for disk drive makers this morning as analysts cut their outlooks for the sector and the stocks.

Barclays Capital’s Ben Reitzes cut his outlook for disk drive sales this year, citing continued weakness in the PC market. He cut estimates for both Seagate Technology (STX) and Western Digital (WDC), whose shares he rates Equal Weight.

ThinkEquity’s Rajesh Ghai cut his rating on Seagate and on Western Digital to Hold from Buy, and cut his price target from $39 to $24 on STX and from $50 to $30 on Western, writing, “a significant downward reset in expectations is likely in the near-term given our checks suggest a weakening of PC demand in until-now robust emerging markets.”

Western shares are down 97 cents, or 3.4%, at $28.83, while Seagate shares are off $1.12, or almost 5%, at $23.41.

Analysts continued to pour forth on Google‘s (GOOG) new branded tablet, the “Nexus 7,” introduced yesterday at the company’s “I/O” developer conference. Needham & Co.’s Kerry Rice, who rates Google shares a Buy, sounds rather underwhelmed, writing “While the Nexus 7 tablet stacks up favorably against Amazon�s Kindle Fire, we believe it�s not revolutionary enough to gain significant tablet market share.”

Google shares are down $7.28, or 1.3%, at $562.20.

Speaking of the Kindle Fire from Amazon.com (AMZN), DigiTimes’s Siu Han and Alex Wolfgram this morning report that a newer version of the device, with a 7.85-inch screen, will come out in August at $199, the same introductory price as the Nexus 7, citing multiple unnamed industry sources. The device is expected to be — what else — thinner than the original. The authors note Amazon intends to maintain a price competitive lead in tablets.

Amazon stock is off $2.74, or 1.2%, at $223.21.

And analysts were picking through their findings at an annual confab hosted by Qualcomm (QCOM) that kicked off yesterday in San Diego, “Uplinq.” The company made several product strategy announcements, but analysts are a bit distracted at the moment by what they see as gloomy news in the handset world.

Qualcomm stock is down 83 cents, or 1.5%, at $54.08.

Chris Caso with Susquehanna Financial Group, was trimming estimates for patent license revenue for Qualcomm for this quarter, writing, “We are taking the opportunity to tweak down our June-quarter QTL units to reflect what we think is now obvious weakness at NOK and RIMM, and the product transition at Samsung, which we do not think will be made up by others”

Speaking of smartphones, The Wall Street Journal’s Juro Osawa and Jung-Ah Lee report that “fresh concerns are emerging about Samsung Electronics (005930KS)” because of delays in getting its latest smarpthone, the “Galaxy S III” delivered in the U.S., with Sprint-Nextel (S) pushing out the date of availability. The authors also mentioned yesterday’s injunction against the “Galaxy Tab” in the U.S. won by�Apple�(AAPL) as further evidence of the company stumbling.

Samsung shares rose a fraction overnight to ?1,116,800 in Seoul trading.

Top Stocks For 4/6/2012-5

GreenHouse Holdings, Inc. (GRHU)

Few would argue against the benefits of using solar energy to power your home. It’s clean, green, inexpensive, renewable and readily available. Today, homeowners and builders who dislike the “old-fashioned” solar panels of yesteryear need not sacrifice aesthetics for environmentalism. Photovoltaic roof integrated solar electric power (PVRISE) systems are more than functional.

GreenHouse Holdings, Inc. is a leading provider of energy efficiency and sustainable facilities solutions. The company designs, engineers and installs disparate products and technologies that enable its clients to reduce their energy costs and carbon footprint. Target markets for GreenHouse’s energy efficiency solutions include residential, commercial and industrial, as well as government and military markets. In addition, the company develops designs and constructs rapidly deployable, sustainable facilities primarily for use in disaster relief and security in austere regions.

GreenHouse Holdings Inc recently announced record revenue results for the 2010 Fiscal Year and is providing a shareholder update.
During 2010, their first year as a public corporation, the company signed several high margin contracts in both its Governmental division and Commercial Automated Demand Response (ADR) division.

GreenHouse Holdings Inc relationship with Southern California Edison and recent partnership with EnergyConnect, Inc. continue to expand their market presence within the commercial market, while the newly integrated acquisition, Life Protection, Inc. brought in over $600,000 in revenue from the government in less than 3 full months of operation.

GreenHouse Holdings Inc believes these divisions would continue to drive top line growth in 2011. They have also implemented significant cost saving methods in their Residential division that has allowed them to reduce overhead and expenses.

For more information visit http://www.greenhouseintl.com/

National Health Partners, Inc (NHPR)
As a nation, the Amercians face enormous challenges on the healthcare front. Their country is the home to the most advanced medical expertise on the planet, yet many of them have little or no access to affordable health care. While their healthcare system has helped more and more Americans to live longer and healthier lives, the medical needs of a growing elderly population mean they must discover new and better ways to help our system deliver the kinds and levels of care that are needed.

National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called “CARExpress.” CARExpress is one of the largest networks of hospitals, doctors, dentists, pharmacists and other healthcare providers in the country and is comprised of over 1,000,000 medical professionals that belong to such PPOs as CareMark and Aetna. The company’s primary target customer group is the 47 million Americans who have no health insurance of any kind. The company’s secondary target customer group includes the millions of Americans who lack complete health insurance coverage. The company is headquartered in Horsham, Pennsylvania.

National Health Partners Inc recently announced the launch of a new network marketing program by one of its strategic partners, Xpress Healthcare, LLC. Xpress Healthcare has teamed up with CARExpress in an effort to revolutionize the discount healthcare industry while at the same time bringing financial freedom to families across the nation.

By the end of the second quarter of 2011, Xpress Healthcare anticipates adding over 100 new brokers both participating in and promoting National Health Partners’ CARExpress program and should enroll over 2,500 new members.

Xpress also expects its growth to accelerate in the 3rd quarter as it anticipates recruiting an additional 200 new brokers which should generate over 10,000 new CARExpress sales. According to National Health Partners, Offering tremendous growth potential, Xpress Healthcare is well positioned to become the leading marketing arm for its CARExpress and now Strong Sales are projected for 2nd Quarter from this new strategic partnership.

For more information on the company, please visit its website at www.nationalhealthpartners.com

Acuity Brands, Inc. (NYSE:AYI) announced fiscal 2011 second quarter net sales increased 8.5 percent, or $32.6 million, to $416.1 million compared with the year-ago period. Fiscal 2011 second quarter operating profit was $37.2 million, or 8.9 percent of net sales, compared with $27.8 million, or 7.3 percent of net sales, for the prior-year period. Income from continuing operations for the second quarter of fiscal 2011 was $19.9 million, an increase of $12.7 million or 176 percent, compared with $7.2 million for the prior-year period. Diluted earnings per share (EPS) from continuing operations for the second quarter of fiscal 2011 were $0.45 compared with $0.16 for the prior-year period, up 181 percent. Net income for the second quarter of fiscal 2011 was $19.9 million compared with $7.8 million for the year-ago period. Net income for the year-ago period included $0.6 million of income from discontinued operations. Fiscal 2011 second quarter diluted EPS were $0.45 compared with $0.17 for the prior-year period.

Acuity Brands, Inc., through its subsidiaries, engages in the design, production, and distribution of lighting fixtures, lighting controls, and related products and services in North America and internationally.

Statoil ASA (NYSE:STO) published the group’s Annual and Sustainability Report for 2010 on its website, 25 March, as well as its US Annual Report and accounts on Form 20-F. “2010 was a year of important strategic progress and active portfolio management for Statoil. We carried out a successful listing of Statoil Fuel and Retail, further clarifying our strategic profile as a technology focused upstream company,” writes chief executive Helge Lund in his introduction to the annual and sustainability report.

Statoil ASA engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. The company involves in the exploration, development, and production of crude oil and natural gas in Norway and internationally, as well as extraction of natural gas liquids.

Demand Media, Inc. (NYSE:DMD) and Getty Images announced a joint licensing agreement. Under the agreement with Getty Images, Demand Media will be able to draw from Getty Images’ extensive library of premium quality, rights-managed images, video footage and audio clips for use on its owned and operated websites including typeF, LIVESTRONG.com and eHow. Getty Images will also become Demand Media’s exclusive distributor of stock video, allowing Getty Images to license the videos for specific uses at gettyimages.com.

Demand Media, Inc. operates as an online media company in the United States. It identifies, creates, distributes, and monetizes in-demand content.

__

A Solid Investor Hedge Against a Possible Market Turnaround

We all like to stock our portfolio with some high-growth/high-potential names along with some more conservative investments to sleep well at night. With the stock market now approaching the 14-month point of a remarkable bull run, it may be time to add another conservative name to the mix. ConAgra Foods (NYSE: CAG), which makes prepared consumer foods (two-thirds of sales) and supplies major food service providers such as schools and hospitals (one-third of sales), has built a nice recipe for growth.

To be sure, food consumption grows at a fairly slow rate. To boost the bottom line, a food service company needs a mix of product innovation, savvy acquisitions, and continuing opportunities for cost reductions, all of which can yield steady profit margin gains and a growing bottom line. And that’s the ConAgra playbook. The company owns such brands as Hunts, Orville Redenbacher, Chef Boyardee, Hebrew National and Peter Pan.

 

In recent years, ConAgra has beefed up its exposure to the frozen food aisle with brands such as Marie Callender, Healthy Choice and Banquet. But frozen foods represent a big trade-off for consumers. Microwaveable meals are fast to prepare, but can heat unevenly. Oven-cooked meals cook more evenly, but take too long for some consumers. The solution: ConAgra has developed “smart tray” technology that helps to ensure that microwaveable food is cooked thoroughly and evenly.

Look for the technology to be first rolled out with the Marie Callender brand later this year, with other brands to follow next year. Those products should garner a decent price premium over traditional items. On the value end, ConAgra is rolling out frozen fruit pies to augment the more dowdy frozen pot pies, pricing them at $0.99 apiece. ConAgra has already picked up 100 basis points of market share during the past year in frozen foods, and recent data points from A.C. Nielson indicate that market share gains will continue this year as well.

Of course, investors are more focused on the financial statements than the store shelves and management seems to be paying better attention here as well. The company’s earnings before interest, tax, depreciation and amortization (EBITDA) margin is steadily expanding, from 11.3% in fiscal 2008 (ended May 31,2008) to an expected 13.7% this fiscal year, which ends next month. Management believes that the EBITDA margin can hit 15% by fiscal 2012.

The steady gains in profit margins, coupled with modest sales gains, should boost per-share profits around +15% in fiscal 2010 from the previous year, to around $1.75. In the next few years, +8% to +10% profit gains appear to be a reasonable target. That profit growth is boosting the balance sheet, as the company is generating more than $1 billion in cash flow every year. As debt gets paid down, more money is left for share buybacks and acquisitions. The company is in the midst of a current $500 million share buyback, which could reduce the share count by about 4%. If no compelling acquisition opportunities emerge during the next year, that share buyback is likely to be extended. The company could also seek to boost its dividend, which currently yields about 3.3%.

TweetDeck back up after bug

NEW YORK (CNNMoney) -- Twitter's popular TweetDeck client was back up Saturday after it was temporarily taken offline over a glitch that allowed some users to access other users' accounts.

"Hey @TweetDeck A bug in your software has given me access to hundreds of accounts. #YouShouldLookIntoThat," Geoff Evason tweeted Friday.

Evason included a picture of his TweetDeck app, spattered with dozens of other users' account icons, and went on to demonstrate his ability to tweet from another user's account.

Twitter immediately took down the Web version of TweetDeck and posted the following tweet: "TweetDeck is currently down while we look into an issue. Apologies for the inconvenience."

In a statement Saturday, Twitter said TweetDeck had been taken down so it could "diagnose" the problem.

"No one's password was compromised, and we aren't aware of any instances where this access was used maliciously," the company said.

TweetDeck, which was acquired by Twitter in May 2011, is available as both a Web and desktop application.

On Friday, many users reported that their Web application was offline, and some said that their desktop version was also down. Other users, especially those on older versions of TweetDeck's desktop client, appeared to be unaffected by the shutdown.

It's the latest bug to hit the rapidly growing social network.

The company recently acknowledged a software flaw that makes it look as though users are not "following" people they actually are -- a problem that has caused much confusion and frustration among Twitter's power users. Twitter noted the problem and said its engineers were working to resolve it.

In 2010, Twitter experienced growing pains as it worked to strengthen its infrastructure and roll out new features. Members became intimately familiar with the iconic "Fail Whale."

But as the company's profile grows, its margin for error is dwindling. Twitter now claims more than 100 million active users and fields more than 250 million tweets a day.

As one Twitter employee recently told CNNMoney: "It's not cute anymore if Twitter doesn't work. There's a lot more on the line." 

Graham & Buffett: A trio of buys

Benjamin Graham has been recognized for decades as the father of value investing. Warren Buffett was a student of Graham at Columbia University and later worked for him for several years.

Here, I combined Warren Buffett�s and Benjamin Graham�s criteria for choosing stocks. Over the past 7 years, my Graham-Buffett picks have risen 55.7% vs. just 10.3% for the S&P500.

I looked for stocks with these eight characteristics:

• Free cash ?ow of more than $20 million
• Net pro?t margin of more than 15%
• Return on equity of more than 15%
• Discounted cash ?ow value higher than current price
• Market capitalization of more than $1 billion
• Standard & Poor�s rating of B+ or better
• Positive earnings growth during the past ?ve years with no de?cits
• Dividends currently paid

I believe these stocks sell at sensible prices, offer reasonable appreciation potential and provide solid dividends. I am con?dent these high-quality stocks will fare very well during the next six months.

Established in 1850, American Express (AXP) is a leading global payments and travel services company. Beginning in 1994, the company divested its ancillary businesses (including Lehman Brothers) to focus on credit cards and travel services.

International revenues make up a large part of AmEx�s business. Increasing card member spending and higher travel commissions spurred rapid growth during the past two years. Sales and earnings declined in 2008 and 2009, but rebounded to record levels in 2011.

The company�s strong balance sheet and low customer defaults helped the company weather the recent recession. I forecast sales and earnings growth of 8% in 2012, although a stronger than expected global economy could push results higher.
AXP shares are undervalued at 12.7 time current EPS and offer a dividend yield of 1.4%. I advise buying AXP at or below my Maximum Buy Price of $51.05. Buffett�s Berkshire Hathaway owns 13% of AXP. The shares are low risk.

Deere & Co. (DE) is the world�s largest manker of farm tractors and combines and a leading producer of construction and forestry equipment.

Sales increased 21% and EPS jumped 35% during the last 12 months, boosted by an increased need for food in third-world countries.

In addition, pro?ts from high crop prices enabled farmers to replace old equipment with new Deere equipment. Finally, sales of highly pro?table used equipment remained robust in 2011.

Continuing higher requirements for food, especially in faster growing, undeveloped countries, will drive sales of farm equipment higher in 2012 and 2013.

At 11.8 times current EPS and with a dividend yield of 2.2%, DE shares are undervalued. Buy at or below $81.87. DE is low risk.

Schlumberger Ltd. (SLB) is the world�s leading supplier of technology, integrated project management and information solutions to the oil and gas industry around the globe.

Advanced technology has become increasingly important, as existing oil?elds mature and new oil?elds are developed in harsh environments and challenging geological conditions.

Sales and earnings rebounded sharply in 2011 with sales surging 44% and EPS up 30%. I expect the growth to continue in 2012 with sales expected to rise 18% and EPS up 34%.

A 10% increase in the number of drilling rigs in 2012 spurred by high oil demand will require many of Schlumbeger�s products and services.

SLB shares are selling at a deep discount to our Maximum Buy Price of $81.28. SLB sells at 21.0 times current EPS with a dividend yield of 1.5%.




Related articles:

• Value trio: Silver, healthcare, global bonds
• Four guru-strategy favorites
• Forest Labs: A Ben Graham value
• It's time to bank on Bank of America
• Buffett's Berkshire: The 'all-weather' stock

Best Stocks To Invest In 2012-2-7-2

 

 

CLIFTON, NJ — 12/19/2011 (CRWENEWSWIRE) — As part of the Next Generation Jammer (NGJ) program�s technology maturation phase, ITT Exelis [NYSE:XLS] and The Boeing Company [NYSE:BA] have successfully completed wind tunnel testing of the team�s proposed full-scale pod at NASA’s Langley Research Center in Hampton, VA.

The testing, observed by U.S. Navy representatives, demonstrated the power generation and control capability of the pod�s Ram Air Turbine, used to generate electrical power for jamming. The pod, if selected by the Navy, will be deployed aboard the U.S. Navy�s electronic attack EA-18G aircraft.

�Successful wind tunnel testing of an integrated power generation system is a significant risk reduction achievement for the ITT-Boeing NGJ program,� said Bob Ferrante, vice president and general manager of Exelis Electronic Systems� airborne electronic attack business. �The wind tunnel test operations validated our engineering team�s projections, so now we�re preparing for the next step of in-flight testing.�

The Next Generation Jammer program, a complete upgrade to existing technology, will ensure that U.S. forces have dominance of the electronic spectrum, providing a comprehensive capability.

�Increased power generation is critical to NGJ success,� said Jim Skerston, Boeing NGJ chief engineer. �The embedded Ram Air Turbine must generate adequate power to operate the system, the transmitter and other mission electronics.�

“The successful demonstration of the power generation system was the culmination of collaborative design work that leveraged ITT’s high power electronics expertise with Boeing’s system integration capabilities,” said Rick Martin, Boeing’s Advanced Military Aircraft chief engineer. “This work takes us one step closer to fielding the next major capability step in the EA-18G electronic attack arsenal.”

ITT Exelis Electronic Systems provides innovative integrated solutions for the global defense, intelligence, information assurance and commercial aerospace sectors. As a leader in electronic warfare and communications, we leverage our experience and innovation to ensure the success of our customers� critical missions. Our technology leadership extends into the areas of airborne electronic attack, networked and satellite communications, counter-improvised explosive devices, airspace management, surveillance systems, airborne and shipboard radar, acoustic sensors, advanced composite structures and electronic weapons interfaces.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world’s largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world�s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide. Follow us on Twitter: @BoeingDefense.

About ITT Exelis

ITT Exelis is a diversified, top-tier global aerospace, defense and information solutions company with strong positions in enduring and emerging global markets. Exelis is a leader in networked communications, sensing and surveillance, electronic warfare, navigation, air traffic solutions and information systems with growing positions in cybersecurity, composite aerostructures, logistics and technical services. The company has a 50-year legacy of innovation and technology expertise, partnering with customers worldwide to deliver affordable, mission-critical products and services for managing global threats, conflicts and complexities. Headquartered in McLean, VA, the company employs about 21,000 people and generated 2010 revenue of $5.9 billion. www.exelisinc.com

Source: ITT Exelis

Contact:
ITT Exelis, Electronic Systems
John C. Dench
Communications Manager
973-284-4543
john.dench@exelisinc.com

 

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

Analysts Consider Fate of Euro

Where once it believed the euro was fated to an untimely demise due to a global financial meltdown followed by a regional debt crisis, it now appears the currency may struggle out of the mire to live another day thanks to large liquidity injections and a halting but noticeable U.S. economic recovery. The euro actually rose in the first quarter despite continued unease about the state of Greece and the potential problems still lurking in Ireland, Italy and Spain. Experts expect elections in Greece and France may cause further currency instability, but look to interest rate differentials between the U.S. and Germany and the correlation between the euro and the S&P 500 for signs of what the beleaguered currency may do next. For more on this continue reading the following article from TheStreet.

1. As the world took a step away from the proverbial abyss with the firming of the U.S. economy and the European Central Bank's massive liquidity injections in the first quarter, the dollar suffered.

The re-establishment of positions that were liquidated in the fourth quarter and the unwinding of part of the large long dollar positions amassed were key drivers.

Those moves appear to have run their course. The dollar will likely trade better in the second quarter than in the first.

The main exception is the dollar-yen, where the yen is likely to recoup some of its outsized losses from the first quarter.

2. As the euro rose in the first quarter, implied volatility collapsed, falling to its lowest levels since Lehman Brothers' demise.

Even if one does not trade options or follow them closely, it is important to appreciate that the compression of volatility is often like a coiled spring, and tends to precede large spot moves.

With volatility falling as the euro rose, it's likely to increase as the euro falls, and this is what has begun happening over the past couple of sessions.

Also judging from the pricing of puts and calls (as in the three-month risk-reversal), the discount for euro calls in late March fell to its lowest level since the first quarter of 2011.

However, this is reversing as participants buy puts (volatility is rising, so premium is being paid), and this also reflects the ascendancy of euro bears.

3. It is not just the case of the shift in views about the prospects for QE3. We have argued the economic conditions in Europe have deteriorated. We are concerned that there is still no closure in Greece despite the PSI. Italian and Spanish bond yields are rising, not falling, as are credit default swap prices.

4. In addition, there are a number of political events that pose risks to the euro over the next several weeks.

Greece and France hold national elections. In Greece, it is not clear that the current coalition of the Panhellenic Socialist Movement and New Democracy is going to secure a majority, warning of possible concessions to less pro-European smaller parties.

In France, although the first round appears to have tightened, Francois Hollande still enjoys a large lead in the all-important second round.

Italy will hold municipal elections next month, and they will be seen as a referendum on technocrat Prime Minister Mario Monti, whose public support has waned since his push to weaken the infamous Article 18, which ossified the Italian labor market.

Germany holds two state elections, which should not be much of a market factor. Further erosion of support for the Free Democratic Party increases the likelihood that next year's national contest produces another Grand Coalition between the Christian Democratic Union/Christian Social Union and the Social Democratic Party.

Although Irish referendums have had market impact, this time that is likely to be different. The polls show that a comfortable majority favors approving the fiscal compact.

In addition, unlike other referendums, the fiscal compact is to be decided by a qualified majority, which means the unlikely veto would not derail the compact but simply cut Ireland off from further aid, should it be necessary.

Lastly, we note that the Dutch government nearly collapsed last week, and while it survived, it has yet to resolve the underlying budget problem.

5. The technical support for the euro has weakened considerably. The breakdown has followed the repeatedly unsuccessful attempts to push through $1.34.

The measuring objective of what may be a double top is near $1.3100, but the bottom end of the euro's trading range is closer to $1.2975-$1.3000.

The five-day moving average is poised to fall below the 20-day moving average, indicating that short-term trend followers and momentum players are likely to be more inclined to sell rather than buy the euro.

Although this signal has whipsawed participants in recent weeks, it does have a good record of catching big moves.

The lower end of the euro's trading range is also seen by some technicians as the neckline of a larger head-and-shoulder's topping pattern, which if broken projects toward $1.25.

Based on current spot and volatility levels, indicative pricing suggests almost a 50% chance of testing the mid-January low near $1.26 here in the second quarter.

6. We have often found that the euro is sensitive to changes in the interest rate differential between the U.S. and Germany.

In the past, a flare up in the European debt crisis has led to safe-haven flows into Germany, pushing down its interest rates and widening the differential in the U.S.'s favor.

Although we have highlighted the risk of the re-emergence of eurozone tensions, growth differentials also seem to be fueling a widening of the interest rate spreads. The 10-year spread is at its widest level since mid-2010.

The two-year differential is near its best levels since then, having risen from about 2 basis points after a seemingly dovish talk by Federal Reserve Chairman Ben Bernanke near the Ides of March to 17 basis points earlier Wednesday.

7. The correlation between the euro and the S&P 500 (60-day period on percent change) has fallen nearly in half from a record high in early December of 0.85 to 0.43 in late March.

The correlation has begun stabilizing, as has the 30-day correlation. Short-term market participants should be prepared for a tighter correlation in the second quarter.

Tuesday’s ETF To Watch: SPDR Gold Trust (GLD)

Stocks started off the week on the wrong foot yesterday, as more euro worries forced major benchmarks to stumble out of the gate. The first quarter of the year was generally positive, but that momentum has shifted for the worse in recent weeks as investors and analysts have begun to worry about our economic future not only in the U.S. but for many nations around the world. But while equities have been having some trouble finding their footing, a number of commodities have been stuck in a similar rut, namely, gold [see also Three Reasons Why Gold Is Overvalued].After a monster performance in 2009 and 2010, gold quickly became an investor favorite as the precious metal could be used as a safe haven and a speculative tool. But the asset saw a slowdown in 2011 and has hit a wall in 2012. Though gold started off the year with gains, the commodity has slid more than 10% since February as investor appetite has shrunk along with the demand. India is the world’s largest consumer of gold, “But protests, boycotts, new taxes and, most important, a decline in India’s currency, the rupee, have kept domestic gold prices high and consumers on the sidelines. Such weakness in Indian demand weighs on world gold prices” write Biman Mukherji and Debiprasa Nayak.�

As gold continues to dip, many investors are calling for a bottom and a solid entry point, but euro troubles and an uncertain investing landscape have painted a hazy picture. But the news isn’t all bad, many are expecting Ben Bernanke and company to ride to the rescue with a third round of quantitative easing in June. QE 3 would be very good news for gold and its investors as its price would likely spike in the short term. With gold currently sitting at a near five month low, an entry point certainly looks enticing [see also Is Gold Still A Safe Haven?].

After another dismal day in trading yesterday, today’s ETF to watch will be the SPDR Gold Trust (GLD). Sitting at such lows will put GLD in focus for the next few weeks, but today’s round of U.S. data will be especially important to keep an eye on if you are a gold bug. Today, the U.S. will release CPI and retail sales results, two data points that can have a large sway on the movements in gold. Look for this ETF to be active throughout the trading day as investors try to decide where this commodity is headed [see also The Ultimate Guide To Gold Investing].

Follow me on Twitter @JaredCummans

Investors gain confidence in Europe

NEW YORK (CNNMoney) -- Things are looking up in Europe, at least for now, as borrowing costs in Italy and Spain eased Thursday following strong debt auctions.

Spain's auction of nearly €10 billion worth of bonds in three different maturities met with strong demand, as did Italy's €8.5 billion of 12-month bills.

The European Central Bank was "supplying quite a bit of liquidity" by buying an undisclosed amount of bonds to prop up the market, as it typically does, said Frances Hudson, global thematic strategist for Standard Life Investments in Edinburgh, Scotland.

But the auctions were also driven by newfound confidence in the new leadership of the Spanish and Italian governments, she added. "You go into a halo effect because you've got a new government so people are willing to give them the benefit of the doubt."

German and Italy sound upbeat on debt crisis

David Rodriguez, quantitative strategist at DailyFX, noted that Spain wound up selling nearly twice the amount it had planned on auctioning, which signals real market demand for bonds, not just support from the ECB.

"Maybe the ECB stepped in, but the ECB wouldn't have the firepower to put €5 billion into that auction," he said. "I think what investors are seeing is the probability that these nations will remain solvent for the foreseeable future."

The healthy demand for Italian and Spanish bonds helped to drive up European stocks. London's FTSE (UKX) closed higher by 1.2%, the DAX (DAX) in Frankfurt rose 2.5% and the CAC 40 (CAC40) in Paris jumped 2.3%.

The auction results also helped to drive down bond yields. The average yield for the Italian 10-year bond slipped to 6.63%, remaining below the anxiety benchmark of 7%, and the average yield for the 10-year Spanish bond dropped to 5.13%.

But Hudson cautioned against extrapolating too much from the Italian bond auction and its impact on the 10-year bond yields, since it was for bills, not bonds. Also, she said she wasn't sure how long the renewed confidence would last.

Don't get too comfortable with European bonds, urged Marc Chandler, strategist at Brown Brothers Harriman, noting that more auctions lie ahead.

The euro's fatal problem isnt' spending

"Risk lies with the bond sale tomorrow, especially with the large increase in Italian bond prices today as the 5-year yield is off 60 [basis points] and the 10-year yield has dropped about 40 [basis points]," wrote Chandler, in a market report. "The year is long, and the amount that the sovereigns and banks need to raise is large."

The euro also got a modest boost Thursday, edging to $1.28 against the U.S. dollar, after hitting an 18-month low of $1.26 on Wednesday.

"At least on the short end of the curve, you see a little bit of confidence returning to the market," said Rodriguez, referring to the euro and European bonds. 

Best International Companies for Your Portfolio

The following video is part of our "Motley Fool Conversations" series, in which industrials editor and analyst Isaac Pino and consumer goods editor and analyst Austin Smith discuss topics across the investing world.

Some economists believe that a decline in consumer savings rate in recent months is worrisome for the US economy. On the other hand, many industrial companies reported robust earnings growth, especially in the US. Overall, it might be advantageous for investors to seek out conglomerates like GE and 3M to tap into high-growth markets as well as the domestic economy. Isaac discusses the reasons why international diversification could be profitable for your portfolio.

Please enable Javascript to view this video.

With Europe in shambles, many investors may be nervous about investing in a company that's internationally focused, but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover these picks today, we invite you to read a copy of our free report:�"3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. Click here to get your copy today!

 Got Kicks? The $19,000 Gold Shoelaces2:07

You have the necklace and the earrings. But you don't have the gold shoelaces. Kristen Bellstrom discusses on Lunch Break.

For bling lovers who have already adorned their ears, wrists and fingers, a company called Mr. Kennedy offers a new way to shine: 24-karat gold shoelaces that will set the wearer back $19,000 (or for style mavens on a budget, $3,000 for a silver pair). The Dublin-based outfit, named after Harvey Kennedy, the reputed inventor of the shoelace, makes the laces out of Colombian gold, which is compressed into thin threads, then hand-crocheted into a fine rope. (Owner Colin Hart says he came up with the idea while shopping for bracelets for his wife on a trip to the South American nation.) The company says it will deliver the laces -- with their own security guard -- anywhere in the world, and adds that wearers don't need to worry about kicking up a little dust with their footwear finery; the laces can be cleaned with simple soap and water.

The Reality:

Jewelry pros say that, while pressing metals into thread does typically make them more durable, 24-karat gold remains a relatively soft material. Helena Krodel, director of media for trade group Jewelers of America, says that shoelaces made with the metal are probably not made for everyday wear and tear. (The company says its laces come with a lifetime warranty.) As for the price, there's a reason items made of gold are expensive; currently, the precious metal is going for about $1,600 an ounce. But with a pair of laces requiring about 5 ounces of gold, the cost of the shiny stuff accounts for less than half the total price.

Tuesday Apple Rumors: Apple Wins Patent Complaint Against HTC

Here are your Apple rumors and AAPL stock news items for Tuesday:

Apple Wins Patent Complaint Against HTC: The U.S. International Trade Commission ruled on Monday that HTC’s smartphones infringe on a patent held by Apple (NASDAQ:AAPL). As a result, HTC has been banned from selling its phones in the U.S. The ban will go into effect on April 19. Apple originally filed a complaint against HTC in March 2010, and while the ITC ruled in favor of Apple at that time, an HTC appeal of the ruling dragged out the proceedings for another year. HTC isn’t terribly concerned. A representative told Boy Genius Report that it already has alternative technology for its phones that will not violate Apple patent 647. If any company should be concerned, it’s Google (NASDAQ:GOOG), as Apple likely will use this ruling to target other manufacturers that, like HTC, use the Android operating system.

Apple to Pay Out “Significant” Dividend in 2012: Laying down the money for shares in Apple is an increasingly intimidating prospect for investors. Even options on the Cupertino, Calif.-based company’s stock are costly. Apple’s $400 stock is looking increasingly like a value, however, as rumors that the company will begin paying out a dividend next year continue to pick up steam. A Monday evening report in Bloomberg said that Gamco Investors Inc. money manager Howard Ward is expecting Apple to issue a “significant” dividend sometime in early 2012. Speaking on Bloomberg Television, Ward said Apple, which is holding $81.6 billion in cash and investments, “could easily be a 3% dividend-yielding stock or even higher.” Ward’s words follow International Strategy & Investment Group analyst Brian Marshall’s November note that said Apple likely would issue a dividend of $2.40 per quarter starting next year — a yield of just 2.5% on share prices around that time, about $384.

Apple Finalizes $500 Million Acquisition of Anobit: Financial daily Calcalist reported Tuesday that Apple has acquired Israeli flash memory technology company Anobit for between $400 and $500 million. Rumors swirled on Dec. 13 that Apple was planning to purchase the company for an undisclosed amount within that price range. Control of a flash memory company should help ease operating costs for the company considering Apple currently accounts for 50% of worldwide flash memory purchases. A Fox Business report on the acquisition said Apple plans to open a development center in Israel. Israeli prime minister Benjamin Netanyahu welcomed Apple to his country via a Twitter message Tuesday morning after news of the acquisition broke.

Nokia to Discuss Windows Phones at January Event: Nearly one year after it announced a strategic partnership with Microsoft (NASDAQ:MSFT), Nokia (NYSE:NOK) finally is ready to reveal its latest plans to compete with Apple and others for the U.S. smartphone market. The Finnish phone maker will hold an event at the Consumer Electronics Show in Las Vegas on Jan. 9, when the company is expected to announced release plans for the Lumia Windows phones. Among the phones that will be announced for the U.S. is the Lumia 900 model, which is expected to be a 4G device exclusive to AT&T (NYSE:T). The lower-tier Lumia 800 model is said to be in testing at both AT&T and Verizon (NYSE:VZ).

As of this writing, Anthony John Agnello did not hold a position in any of the aforementioned stocks. Follow him on Twitter at�@ajohnagnello�and�become a fan of�InvestorPlace on Facebook. For more from the company, check out our previous Apple Rumors stories.

Investment Options When Money Is Tight

If you are earning, always make it a rule to invest a part of your income. Make it a habit and think of it as ‘paying yourself’. Investing is your future. Because of the recession the amount of money you are able to invest may be limited and you may be wondering what investment options are available to you when money is tight.

There are a few steps to take like setting a budget. You may even find more money to invest than you think during the process! Note what you owe for your mortgage or rent, healthcare, car payments, insurances, your utilities, groceries, and any outstanding debts. Make an allocation of where your money is to be paid. And always make sure that your monthly commitments are covered.

Although the usual recommendation is to tuck away 10% of your income into a savings or retirement account this may not be possible, depending on your circumstances. But no matter how dire your financial situation seems it is necessary to start a retirement account. Saving for your retirement is a top priority. And if your employer offers retirement funds take full advantage of this.

Retirement Investment in the USA

In the USA there is the 401k fund for retirement. Investing through an employer’s plan has several advantages such as the tax benefit for doing so, this is because your contributions are deducted from your pre-tax income and taxes are deferred. Many employers match contributions made by their employees, so you effectively get free money. Most 401k plans have mutual fund (managed funds) options where investment minimums are waived.

If you are self employed there are other options available such as the special retirement investment options in the US of SEP-IRAs and Keogh plans which allow you to contribute a considerable amount of your pre-tax income.

Retirement Investment in New Zealand

In New Zealand there is KiwiSaver. The minimum requirement is to invest 2% of your income but your employer must also match this contribution so you are doubling your money and effectively getting a pay rise. There is also a one off kick start payment of $1,000 from the Government which is a nice start to your plan. Not only this but each year the Government matches your contribution up to $20 a week or a maximum of $1,042 a year. You can choose among a range of KiwiSaver providers to match your needs and risk profile. When you start a new job you need to opt-out of KiwiSaver otherwise you will automatically be enrolled, but if you have been working and not contributing you need to opt-in to start investing.

Once again in New Zealand KiwiSaver is available to the self employed however there is obviously no employer contribution. As your income may be erratic you can nominate the amount you want to contribute. The best is to at least deposit $20 a week to take advantage of the tax credit of $1,042 a year. This way you double your money.

Other Investment

Both in the US and in New Zealand you are able to invest as little as $50 or $100 a month into some managed fund (mutual funds). The advantage of these funds is that it gives you the opportunity to spread your investment into various areas even though you are only depositing a small sum each month.

Whatever your circumstances you owe it to yourself to find suitable investment options even when money is tight.

Lyn Bell has been in the finance industry for more than 30 years and is a Certified Financial Planner. She has helped many clients achieve their financial goals. Sign up to get Lyn’s free newsletter SoundFinance News and receive a free gift.

Please note this article does not contain specific advice and is for information/education purposes.

A disclosure statement is available free on request.

Bank of America: 2011 Bank Stock Stinker

Bank of America (BAC) was the worst of the worst during a year of pathetic bank stock performance, with shares plunging 58% for the year and closing Friday at $5.56.

The KBW Bank Index (I:BKX) closed Friday at 39.42 for a 2011 decline of 25%, with all 24 index components showing declines for the year, except for U.S. Bancorp (USB), which was up 2% for the year to close at $27.05. Capital One (COF), was down only slightly for the year, closing at $42.9. Among the KBW Bank Index components, Capital One achieved the highest operating return on assets of 1.90% during the first three quarters of 2011, followed by U.S. Bancorp, with an ROA of 1.47%, according to SNL Financial.Most of the epic drop in Bank of America's shares can be attributed to continued uncertainty over just how much risk the company faces from former CEO Ken Lewis's disastrous decision to by Countrywide Financial in 2008.Reuters reported last week that Bank of America was considering asset sales to boost regulatory Tier 1 capital, after boosting its regulatory capital by $3.9 billion through the issuance of new common shares and retirement of preferred shares and long-term debt.Bank of America's Tier 1 common equity ratio was 8.65% as of Sept. 30, according to SNL Financial, which was the lowest among the "big four" U.S. banks.The shares trade at roughly 0.4 times tangible book value, with the heavy market discount reflecting the continued uncertainty over capital and ongoing mortgage putback litigation, including Federal Housing Finance Agency's lawsuits and the expected settlement between the largest mortgages servicers, federal regulators and the states' attorneys general, which Credit Suisse analyst Moshe Orenbuch has estimated could cost Bank of America between $5.6 billion to $9.4 billion.Rochdale Securities analyst Richard Bove put out a terse note last week, saying it was time for Bank of America's management to come clean with investors by reviewing "all of the issues related to this business and to explain why it believes it is so critical for the bank to continue to hold onto this division."Bove said that the company had refused to discuss why it wasn't "suing the sellers of Countrywide for misrepresenting of the value of the assets at the time of sale," why Bank of America was "paying legal fees and fines of a former Countrywide executive," and why it hadn't considered putting the Countrywide business into bankruptcy.

He added that "the company's tangible book value would be an estimated $3 per share higher without Countrywide."

With Bank of America's shares trading at such a heavy discount to book value, and for just over five times the consensus 2012 earnings estimate of 97 cents a share, among analysts polled by FactSet, it isn't surprising that there are still 10 analysts rating the shares a buy. Meanwhile 13 analysts have neutral ratings and one lonely analyst still thinks investors should move on.Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.The second-worst performer among the largest U.S. banks was Goldman Sachs (GS) wish shares closing Friday at $90.43, for a year-to-date decline of 46%.The company faces major uncertainty in 2012, with the Federal Reserve still not settled on its ultimate enhanced capital requirements for banks, and the Volcker Rule still in play. The comment period following the Fed's confusing 300-page proposal to implement the Volcker Rule's ban on "proprietary trading" by banks -- as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama last July -- has been extended to February 13.Atlantic Equities analyst Richard Staite on Dec. 15 cut his fourth-quarter earnings estimate for Goldman by 60% to 90 cents, "driven by lower revenue across all business against a relatively fixed cost base." The analyst has a neutral rating on the shares, and estimates the company will achieve a decent return on tangible equity of 9.4% in 2012, "on the assumption that revenues improve in both Investment banking and in the Investing and Lending division."Staite also said that Goldman "has the potential to increase market share as competitors, particularly European banks, drop out," although "near term trading revenue [is] likely to be subdued," and could decline "due to new regulations." The analyst estimates that Goldman will earn $11.15 a share in 2012. Goldman's shares trade for just 0.7 times their Sept. 30 tangible book value of $124.90, according to SNL and seven times the consensus 2012 EPS estimate of $12.74, among analysts polled by FactSet.

Interested in more on Goldman Sachs? See TheStreet Ratings' report card for this stock.

Shares of Citigroup (C) closed at $26.31 Friday, for a year-to-date decline of 44%, adjusting for the 1-for-10 reverse split on May 6.Despite the lousy performance of the shares, there's quite a bit of analyst support for Citigroup, with 15 rating the stock a buy, while five analysts are on the fence and two recommend selling the shares.The company ranked highest among TheStreet's 10 New York Bank Stocks With Most Upside for 2012, based on analysts' consensus price targets.CEO Vikram Pandit has continued to patiently trim the company's balance sheet by winding-down non-core assets.In his 2012 U.S. banking industry outlook report last week, Sterne Agee analyst Todd Hagerman said that Citi was his firm's "speculative Buy recommendation in the sector with the bad news effectively discounted in the stock at current levels," and that although "the company's outsized international exposure will continue to weigh on the shares, at least near term," and that following the next round of Federal Reserve stress tests in January, a "meaningful positive inflection point on the stock will likely occur in March," with an announcement of a capital return to investors through increased dividends and/or share buybacks.Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.Morgan Stanley (MS) was another major loser during 2011, with shares also declining 44% to close Friday at $15.13.Following on his theme for a "weak and messy" fourth quarter for investment banks, Richard Staite estimates that Morgan will post a 51-cent fourth-quarter loss, springing from the company's $1.8 billion settlement with MBIA (MBI) over claims related to credit default swaps on commercial mortgage-backed securities.Staite is neutral on the shares, predicting a mediocre 2012 return on equity of 6.6% for Morgan Stanley, and estimating 2012 earnings from continuing operations of $1.81 a share.Credit Suisse analyst Howard Chen on Dec. 13 called the MBIA exposure Morgan Stanley's "single largest legacy issue," and said the settlement "improves Morgan Stanley's capital flexibility, accelerating the firm's Basel III readiness at a critical moment heading into the 2012 Fed CCAR submission," referring to the capital plan the company must submit for the Federal Reserve's annual stress tests, by Jan. 7, 2012.

Morgan Stanley's shares trade for 0.6times the company's Sept. 30 tangible book value of $25.55 according to SNL, and for 7.5 times the consensus 2012 EPS estimate of $2.02.

Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.RELATED STORIES: 2011 Bank Failure Winners >Bank of America Employees Had Blowout 2011 Payday: Report >Could Bank of America Survive a 'Run on the Bank' in 2012? >A 2012 Housing Rebound Can't Save Bank of America >Bank of America to Top $10 a Share in 2012: Poll >First Niagara Among 'Cheapest Yield Plays': Jefferies >-- To contact the writer, click here: Philip van Doorn.To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn. >To order reprints of this article, click here: Reprints

Time-Confirmed Tactics For Greater Home Remodeling Assignments

To keep up with your own tastes and technology, you must take time every now and then to start on new home improvement projects. Try Kitchen Remodel San Diego. You are capable of doing home improvement projects by yourself. The following article will give you some great tips on how you can complete these projects.

Develop a visually satisfying bookcase with the aid of some wallpaper. Select a exciting and initial wallpaper design and style. Place the wallpaper on the rear of the bookcase, so glimpses from it are obvious when textbooks are about the shelving. This very little glimpse of wallpaper will bring in focus from over the area. When redesigning a residence for resale, bear in mind that it must be more significant to go to for the exterior appearance from the residence very first, prior to deciding to deal with things including domestic plumbing or putting in main heating system. The initial thing an curious getting possibility will discover will be the exterior of your property, so be sure that it can not appearance work downwards as that can have an effect on diverse facets of the transaction.

Make use of your outdoor area. Deal with your yard being a all-natural extension of your house through making it a far more pleasurable spot to spend some time. It will likely be ideal for calming or tossing a celebration with family and friends. Home heating your tile flooring is a simple and affordable update. If thinking about obtaining tile ensure that you perform a little research on radiant home heating. You will end up happy which you went the additional mile – this type of home heating is not really only effective it can feel totally fantastic! Long term customers will definitely be surprised by this high-class function.

To avoid excessive repair bills ensure storm water does not flow towards your walls. One way to do this is by sloping the angle of your yard towards the street. Another option is to lengthen your drainage gutters so they empty away from your house. Get a second opinion on contractor recommendations and cost estimates for major home renovations you have planned. Even top-notch contractors with great reputations will work in their own best interest when dealing with homeowners that are intimidated, uninvolved or overly agreeable. Before additional costs and labor are agreed upon, the homeowner should carefully review the contractor’s proposal.

It is not impossible to update your house with new features that you want. Rather than hiring a contractor, why not think about tackling something yourself? Certain things don’t take a lot of experience. Apply the advice that you’ve just learned for your own renovation project.

Find out more about Kitchen Remodeling San Diego and San Diego Kitchen
on H.O.Y.

Is Marvell Technology Group Earning Its Keep?

Margins matter. The more Marvell Technology Group (Nasdaq: MRVL  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Marvell Technology Group's competitive position could be.

Here's the current margin snapshot for Marvell Technology Group over the trailing 12 months: Gross margin is 57.9%, while operating margin is 21.2% and net margin is 21.3%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where Marvell Technology Group has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter (LFQ). You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.

Here's the margin picture for Marvell Technology Group over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

Here's how the stats break down:

• Over the past five years, gross margin peaked at 59.2% and averaged 53.2%. Operating margin peaked at 25.0% and averaged 9.4%. Net margin peaked at 25.0% and averaged 7.6%.
• TTM gross margin is 57.9%, 470 basis points better than the five-year average. TTM operating margin is 21.2%, 1,180 basis points better than the five-year average. TTM net margin is 21.3%, 1,370 basis points better than the five-year average.

With recent TTM operating margins exceeding historical averages, Marvell Technology Group looks like it is doing fine.

If you take the time to read past the headlines and crack a filing now and then, you're probably ahead of 95% of the market's individual investors. To stay ahead, learn more about how I use analysis like this to help me uncover the best returns in the stock market. Got an opinion on the margins at Marvell Technology Group? Let us know in the comments below.

• Add Marvell Technology Group to My Watchlist.

What Obama Slipped by Us on New Year’s Eve

Pay close attention. This is how it happens…

President Obama found a moment of reduced visibility, in an unwatched hour on New Year’s Eve, to sign the latest assault on the Fifth Amendment. In signing the National Defense Authorization Act of 2012 on New Year’s Eve, Obama knew the nation’s attention would be diverted by revelry, football, New Year’s Day and a Monday national holiday.�

In case you haven’t heard, the National Defense Authorization Act allows the government to detain people indefinitely — yes, it includes American citizens who can be taken even on our native soil and imprisoned — merely on the basis of accusations.�

The measure is “so radical,” says Human Rights Watch, “that it would have been considered crazy had it been pushed by the Bush administration.” And although Obama appended a signing statement as he put his name to the act, solemnly assuring the nation that the power he insisted on having won’t be used recklessly, it is a political gesture that has no more force of a law than attaching a little yellow sticky note to the bill. If the clear language of the Constitution itself cannot bind the governing classes, it is hard to imagine a post-it note having much effect on the current or future presidents now that the indefinite detention of Americans without trial has been legislatively countenanced.

There you have it in a nutshell, the new American way: Guilty until proven innocent. This is how once-free people slip into state tyranny and slide into martial law.�

Political figures are always careful to paper over their power grabs with spurious legalities and midnight measures, granting themselves the rights they are appropriating. No matter how flimsy the pretext, no matter how forbidden the act, everything must be formalized and enabled. Overturned rights and the pretext of legality.�

That is how the Fourth Amendment was trashed � marginalized by a document called the Patriot Act. And now the Fifth Amendment is under attack.�

But you shouldn’t be surprised. If the president of the United States can have you, an American citizen, assassinated on his own say so, how much of a shock is it to find that he can have you arrested and held without any of that pesky Fifth Amendment due process business?�

Of course, in trying to outdo Bush, Obama has all along claimed the right to detain Americans without interference from the Bill of Rights. In making this extraordinary claim, Obama relied on the 10-year-old Authorization for the Use of Military Force, the measure authorizing the pursuit of those responsible for 9/11. But now this broad interpretation of the authority to go after the likes of Osama bin Laden has been extended to nullify whole sections of the Bill of Rights. Obama’s reading of his authority, radical to begin with, has now been handed to him in a statute, codified in a pile of paperwork called the National Defense Authorization Act, and tucked right in with the Pentagon’s budget. It’s all part of the forever war on terror, after all.

And if the assault on the Fifth Amendment weren’t enough, the Sixth Amendment was put on the table as well. Remember, that’s the one about “a speedy and public trial” and “an impartial jury.” Well, that’s all but flushed. Forget “speedy.” And “public” just left town. You can now be detained without a trial at all. Indefinitely.��

America’s Slippery Slope

How many points on the line does it take to recognize our downward slope into state lawlessness? Do we really need more than just the state claiming the right to arrest and hold the people without due process? Does it take more than the state assuming the right to assassinate them?

Warrantless surveillance? Torture? The state secrets privilege? Critics of the National Defense Authorization Act say it makes it easier for the government to render citizens to fascist proxy states where they can be tortured. Is that enough points on the line to see where we are headed?�

Can the slide into state militarism be seen in serial wars, all undeclared? In the trillions of war spending that won’t be refused? Or in drones prowling overhead in what used to be called “our country,” but has now been renamed with a term that echoes Nazi Germany: The Homeland?

Perhaps it is a slope that can be discerned in the threat of violence as the first tool of diplomacy. In the paramilitary forces and SWAT teams that are now part of virtually every federal department and agency. In the Freudian envy with which local police departments across the land ape the dress and manner of military operations. In the TSA Viper (Visible Intermodal Prevention and Response) teams that have now moved their surveillance of the American people beyond the airports and put them on the open streets of das Heimland.� ���

It happens in every power grab in modern times. Like the National Defense Authorization Act, there is always a legalistic pretext upon which the power grab of the state relies. Lenin consolidated his control under the cover of a blizzard of legalistic decree-laws. Hitler promulgated his emergency decree “For the Protection of the People and the State” on the day of the Reichstag fire. That was followed by the “Enabling Act,” which declared that laws of the Reich could deviate from the constitution.�

Paper pretexts all, slow-motion coups in the small hours conferring the appearance of legitimacy as they subvert the people’s freedom.

Of course, most of the national news media, the lapdog press, will miss the latest assaults on the Bill of Rights. But do not assume it’s because they were all hung-over. It’s easier to believe that they just don’t care. If there is any dissent at all about this power grab, it will not be because of the attack on your freedom. The national talk shows will see it as important only to the extent that it allows their favored team, red or blue, to move the ball down the field.�

But where are America’s sworn defenders of the Constitution? With arms raised, all federal officeholders mouth the words, “I do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same�”�
Where are the Democrats who made that vow, those who were worked into a frenzy by the Patriot Act and Bush’s abuses of the Constitution, including warrantless eavesdropping? Where are they now that Obama’s abuses are out-Bushing Bush?�

They are in the same silent space occupied by the Republicans who denounced Clinton’s unconstitutional and undeclared warfare until Bush went to war without a declaration. It is a silent space large enough to accommodate all the Republican and Democrats alike who make empty vows of empty words.�

Believing not one thing or the other, they make fitting companions for the cowards Dante described as hateful to both God and his enemies: “The heavens, that their beauty not be lessened, have cast them out, nor will deep Hell receive them – even the wicked cannot glory in them.”

So pay close attention. This is how it happens.