China Makes Tiffany a Top Investment

Tiffany (NYSE: TIF  ) is down more than 5% during the last month. It tumbled earlier this year on a weak earnings report and has yet to recover. But this could be offering investors a great buying opportunity. Given its exposure to high-end consumers, Tiffany remains one of the most resilient investments in the market. That's because high-end shoppers are less susceptible to economic declines.

Why shares are weak
On an adjusted basis (adjusted for arbitration proceedings), Tiffany's earnings were $1.47 a share during the fourth quarter. Wall Street was looking for $1.51 a share. And the company also guided 2014 earnings below analysts' expectations. 2014 earnings per share are expected to come in at $4.05 to $4.15, per the company, while Wall Street had been looking for $4.31.

There are bright spots
One of the key opportunities for Tiffany is abroad, namely in the Asian market. During the January-ended quarter, Asia-Pacific sales were up 23% year over year. China should be one of the brightest spots for Tiffany going forward. A decade ago, Tiffany only had 11 stores in China. Now it has 45. And China already has the second-largest jewelry market, but it's set to keep growing given the rising middle-class in the country. Also helping it grow will be the rise in penetration of engagement rings in the country.

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There's also a changing dynamic in China that should help Tiffany. In the U.S., it's common practice to give an engagement ring, but not so much in China. About 80% of marriages in the U.S. involve an engagement ring, but that number is as low as 30% in China. With the affluence in China growing, that number could see the same type of growth that engagement rings saw in the U.S. in the mid-1900's. From the 1940's to 1960's, engagement ring usage rose from 10% to 50%.

Another key aspect is that many Chinese residents are shopping at Tiffany abroad. And China travel is increasing, which is a big positive for Tiffany. Tourism by Chinese (those traveling outside of China) has grown by nearly 25% annually over the last decade.

What about the other high-end retailer?
Coach (NYSE: COH  ) is still facing challenges when it comes to its U.S. market share. Michael Kors appears to be taking market share on the domestic front, with Coach's North America same-store sales falling nearly 14% in the December-ended quarter. Coach has been relying more on international markets and the men's business to help hedge the North American decline.

But this fall it could see a return to glory. That's when Coach is launching a new line that is spearheaded by Stuart Vevers. Vevers joined in the fall of last year as creative director. Vevers previously worked at the likes of Mulberry and Louis Vuitton.

The industry gets a little smaller
One risk to Tiffany might be the joining of forces by two of the largest jewelers in the U.S., Signet Jewelers (NYSE: SIG  ) and Zale. The acquisition of Zale by Signet will strengthen Signet's market share to 16% for U.S. retail jewelers.

From an investment perspective, shares of Signet are up big on the acquisition news. Signet is up nearly 28% year to date. That has put Signet's P/E up to 17.5 based on next year's earnings estimates. That's above where the company has historically traded.

The other thing worth noting is that Signet operates on a bit of a different level than Tiffany, catering more to the mid-market versus the high-end market. Signet's key brands are Kay Jewelers and Jared The Galleria Of Jewelry.

How shares stack up
As mentioned, Signet is already trading at a 17.5 forward P/E. Tiffany trades at a slightly higher forward P/E, at 18.3. Meanwhile, Coach's is 14.5. But Tiffany's P/E is still at a slight discount to its 10-year average of 21.5 And both Coach and Tiffany offer investors a dividend yield. Tiffany's dividend yield is at 1.6% and Coach's is at 2.7%. And only one of the 26 analysts following Tiffany have a sell rating on the stock.

Bottom line
Both Coach and Tiffany are brand leaders, holding strong positions in the accessory market. Coach offers a solid dividend yield, but Tiffany has one of the best opportunities out there for tapping into the rising prosperity of China. For investors who still need a high-end retailer in their portfolio, Tiffany is worth a look.

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Are the Shorts Right On Cliffs?

With shares of Cliffs Natural Resources (NYSE:CLF) trading at around $17.94, is CLF an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

Cliffs Natural Resources has headed in mostly one direction over the past two years, which is down. There has been no slowdown in the downward momentum, and the demand situation hasn't improved.

Cliffs Natural Resources is suffering from weak demand and pricing for iron ore, weak steel demand, and oversupply. Geographically, China and Europe have been weak, and the mining situation in the United States has seen much better days. Furthermore, labor and mining costs have increased, and these costs are expected to continue to increase throughout the year. The dividend was cut in order to reduce overall costs. Revenue and earnings have declined last year as well as last quarter on a year-over-year basis. In other words, it’s ugly out there.

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The big question for Cliffs Natural Resources is whether or not the stock is oversold. Some technicians argue that the stock is at a support level, but even if that's the case, support is likely to be broken based on fundamentals and overall weak global demand.

The best possible bullish argument doesn't relate to technical analysis, but the potential in emerging markets. The problem that not many people seem to talk about is that emerging markets are still tied to developed markets. Hence the phrase: global market.

Emerging markets might have the most growth potential, but they will fail if developed markets fail. In simplest terms, they will fail if the largest economy in the world fails, which is the United States. That being the case, a lot comes down to monetary stimulus. Can the Federal Reserve continue to assist markets for a considerable amount of time? Yes. However, if Cliffs Natural Resources is unable to perform well in such an environment, then what would make investors believe that it will perform well when economic support is removed? Of course, the other argument is that this is a real economic recovery that no longer needs monetary stimulus. If that’s the case, then Cliffs Natural Resources is well positioned.

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Many analysts are attempting to call a bottom for Cliffs Natural Resources. Attempting to call bottoms on stocks with significant downside momentum is a dangerous game, and it's certainly not a game that will be recommended here.

Let's take a look at some important numbers prior to forming an opinion on this stock.

T = Technicals Are Weak

Cliffs Natural Resources has performed poorly in a bull market. This is a big negative.

	1 Month	Year-To-Date	1 Year	3 Year
CLF	-21.98%	-52.93%	-61.57%	-61.51%
VALE	-16.99%	-29.23%	-18.98%	-35.02%
BHP	-8.77%	-16.84%	5.34%	13.33%

At $17.94, Cliffs Natural Resources is trading well below its averages.

50-Day SMA	$19.72
200-Day SMA	$30.85

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Cliffs Natural Resources is close to the industry average of 0.60. Debt has been managed well.

	Debt-To-Equity	Cash	Long-Term Debt
CLF	0.60	287.20M	3.43B
VALE	0.42	6.81B	32.61B
BHP	0.52	5.27B	35.48B

E = Earnings Have Weakened

Earnings had been improving on an annual basis until 2012. The same can be said for revenue.

Fiscal Year	2008	2009	2010	2011	2012
Revenue ($) in millions	3,609	2,342	4,682	6,794	5,873
Diluted EPS ($)	4.75	1.63	7.49	11.48	-6.32

Looking at the last quarter on a year-over-year basis, revenue and earnings significantly declined.

Quarter	Mar. 31, 2012	Jun. 30, 2012	Sep. 30, 2012	Dec. 31, 2012	Mar. 31, 2013
Revenue ($) in millions	1,264.70	1,626	1,544.90	1,535.90	1,140.50
Diluted EPS ($)	2.63	1.81	0.59	-11.36	0.66

Now let's take a look at the next page for the Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

Conclusion

It's impossible to predict stocks with 100 percent accuracy. With that said, based on the current economic environment, downside risk for Cliffs Natural Resources greatly outweighs upside potential. Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) are lower-cost producers that are likely to hold up better if the broader market suffers a steep market correction. This situation already occurred in 2008. However, none of these companies are safe plays if the market falters.

MDC Holdings Earnings Are on Deck

MDC Holdings (NYSE: MDC  ) is expected to report Q2 earnings on July 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MDC Holdings's revenues will grow 48.0% and EPS will expand 145.5%.

The average estimate for revenue is $398.0 million. On the bottom line, the average EPS estimate is $0.54.

Revenue details
Last quarter, MDC Holdings booked revenue of $344.3 million. GAAP reported sales were 77% higher than the prior-year quarter's $194.0 million.

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

EPS details
Last quarter, EPS came in at $0.45. GAAP EPS of $0.45 for Q1 were much higher than the prior-year quarter's $0.04 per share.

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

Recent performance
For the preceding quarter, gross margin was 19.0%, 300 basis points better than the prior-year quarter. Operating margin was 5.0%, 660 basis points better than the prior-year quarter. Net margin was 6.5%, 530 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.76 billion. The average EPS estimate is $2.42.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 477 members out of 627 rating the stock outperform, and 150 members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give MDC Holdings a green thumbs-up, and 47 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MDC Holdings is hold, with an average price target of $36.70.

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Ex-Bank of America CFO to Pay $7.5M Fine to New York

New York Attorney General Eric T. Schneiderman said Friday that former Bank of America (BAC) CFO Joe Price agreed to a $7.5 million fine and to be barred from serving as an officer or director of a public company for 18 months in order to settle the state’s lawsuit against him.

The deal concerns the bank’s actions in 2008 when it began its merger with Merrill Lynch.

According the attorney general’s office, “Despite its top executives’ specific knowledge of mounting losses at Merrill Lynch that were forecast at more than $9 billion, Bank of America failed to disclose that information to shareholders prior to their vote on the proposed merger,” it said in a press release.

Schneiderman also alleged former-BofA CEO Kenneth D. Lewis and Price “misrepresented to shareholders the impact that the merger with Merrill would have on Bank of America’s future earnings.”

A month ago, Lewis agreed to a $10 million settlement with the attorney general, and BofA agreed to a $15 million settlement concerning Lewis’ actions during the merger. He is barred from work on public-company boards for three years.  

“This [Price] settlement is one more step in our effort to hold top financial executives accountable for their actions,” said Schneiderman, in a statement Friday.

“As with our settlement last month with CEO Ken Lewis, today’s action sends a message that conduct harming investors, shareholders, and the public will not go unpunished. I’m pleased to close the final chapter in our litigation over Bank of America’s merger with Merrill, and I will continue to hold individuals — as well as corporations — accountable for their actions,” the attorney general explained.

Bank of America declined to comment on the matter. 

Fiduciaries: Steer Clear of T. Rowe, Fidelity and Vanguard TDFs

Target-date funds were supposed to be the best thing since sliced bread when the 2006 Pension Protection Act popularized them as default investments in 401(k) plans.

But the sliced-bread investment innovation quickly turned investors into burnt toast just two short years later during the 2008 financial crisis, when the average 2010 target-date fund lost 25% — though such funds ostensibly envisioned a glide path to a retirement just two years away.

Because the Employee Retirement Income Security Act still hallows target-date funds as the most popular of the three safe options for use as qualified default investment alternatives — the other two being balanced funds and managed accounts — advisors who serve as plan fiduciaries need to know their ins and outs.

That is the rationale for the publication of a new book, Fiduciary Handbook for Understanding and Selecting Target Date Funds — due out in a week — by pension consultant Ron Surz, attorney John Lohr and ethicist Mark Mensack. (Surz is an occasional ThinkAdvisor contributor.)

Understanding the funds’ assumed fiduciary status, their popularity with investors and the opportunities for advisors to earn fees, but all too aware of the potential for these funds to blow up investors’ nest eggs again as they did in 2008, the authors endeavor to arm advisors with the ability to help clients and avoid unseen professional hazards.

For example, advisors may assume the government’s imprimatur may serve as a shield against all legal threats, but the authors point out there have been 522 ERISA-related fiduciary breach cases since 2013.

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Most of those have concerned excessive fees, but the authors want advisors to think through selection and monitoring issues that could potentially put them, plan sponsors and asset managers on the hook the next time there is a crisis.

And the authors are emphatic that the next crisis is a matter of when, not if.

“Sometime in the future there will be a market correction of the magnitude of a 2008 or even a 1929. Unless risk controls are tightened, especially near the target date, fiduciaries will be sued as a result of losses. It remains to be seen whether the litigation will impact fund companies or fiduciaries, or both,” the authors write.

And that’s the thing of it. The authors’ core argument is that target-date funds are too risky, especially at the target date.

This is because the three mutual fund companies that dominate the target-date fund industry, T. Rowe Price, Fidelity, Vanguard — the book’s chief villains — have risky levels of stock ownership at the target date.

Though they do not play a fiduciary role (as do employers and advisors) relative to the retirement plans that offer their products, the big fund companies are essentially driving the whole risky process — one that has swung far away from the period before the Pension Protection Act of 2006, when cash was the dominant investment default for investors approaching retirement.

In contrast, the Big 3 companies have end-date equity exposure averaging 55%.

And the crux of the fiduciary problem may not be the Big 3 — who, again, aren’t fiduciaries. It’s that advisors aren’t researching and evaluating the Small 30 — the rest of the target-date fund universe available to plan participants.

“Choosing one of the Big 3 might be all right if competing TDFs were all inferior, but they are not. Most important, these Big 3 maintain the same equity exposure today at the target date as they had in the 2008 fiasco, setting the stage for a repeat calamity, this time much more devastating.”

Surz, Lohr and Mensack’s book is thus something of a cri-de-coeur beyond a mere technical explanation of “Duty of Care,” “Establishing Selection Criteria,” and “Benchmarks,” to cite just three of the book’s 10 chapters, commendably averaging just four pages of the book’s slim 51-page total.

The authors do not think fund companies will change anything of their own volition.

“You alone can improve target-date funds," they write. "Nothing will change unless and until you set the objectives for TDFs and seek solutions that can meet those objectives.”

The authors stress that fiduciaries may pay the price — financially, legally and ethically — for the less-than-exemplary state of the TDF industry.

“If you decide not to act, there could be a personal price to pay in the form of lawsuits. The duty of care requires that you protect the financially unsophisticated. It’s like the duty to protect your young children,” they write of the tens of millions of Americans whose retirement income security is at stake.

Mid-Morning Market Update: Markets Fall; Boeing Profit Tops Street View

Related BZSUM #PreMarket Primer: Wednesday, April 23: Data From China Takes Some Pressure Off Beijing Market Wrap For April 22: S&P Rises For Sixth Straight Day, Dow & Nasdaq Also Positive

Following the market opening Wednesday, the Dow traded down 0.13 percent to 16,492.37 while the NASDAQ tumbled 0.61 percent to 4,136.26. The S&P also fell, dropping 0.18 percent to 1,876.15.

Leading and Lagging Sectors
In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.61 percent. Top gainers in the sector included PPL (NYSE: PPL), Empresa Distribuidora y Comercializadora Norte SA (NYSE: EDN), and Public Service Enterprise Group (NYSE: PEG). Telecommunications services sector was the top decliner in the US market on Wednesday.

Top losers in the sector included China Unicom (Hong Kong) (NYSE: CHU), off 4.5 percent, and Black Box (NASDAQ: BBOX), down 3 percent.

Top Headline
The Boeing Company (NYSE: BA) reported better-than-expected first-quarter profit. Boeing's quarterly profit declined to $965 million, or $1.28 per share, from a year-ago profit of $1.11 billion, or $1.44 per share. Its adjusted earnings surged to $1.76 per share compared to $1.73 per share. Its revenue climbed to $20.47 billion versus $18.89 billion. However, analysts were projecting earnings of $1.57 per share on revenue of $20.24 billion. For the full year, Boeing expects adjusted earnings of $7.15 to $7.35 per share.

Equities Trading UP
Xoom (NASDAQ: XOOM) shares shot up 15.58 percent to $22.77 after the company reported upbeat Q1 results and issued a strong FY14 outlook.

Shares of Elizabeth Arden (NASDAQ: RDEN) got a boost, shooting up 9.95 percent to $31.27. LG Household & Healthcare is considering a bid for Elizabeth Arden, according to Reuters.

Super Micro Computer (NASDAQ: SMCI) shares were also up, gaining 11.50 percent to $21.13 after the company reported upbeat FQ3 results and issued a strong Q4 forecast.

Equities Trading DOWN
Shares of VMware (NYSE: VMW) were 9.93 percent to $94.71 after the company reported Q1 results. Vmware reported earnings of $0.80 per share on revenue of $1.36 billion.

Unisys (NYSE: UIS) shares tumbled 12.12 percent to $25.42 on Q1 results. Unisys reported a quarterly loss of $0.74 per share on revenue of $762.0 million.

Cree (NASDAQ: CREE) was down, falling 10.84 percent to $51.76 on Q3 results. Cree reported its Q3 earnings of $0.39 per share on revenue of $405.30 million. However, analysts were expecting earnings of $0.38 per share on revenue of $407.29 million.

Commodities
In commodity news, oil traded down 2.57 percent to $101.69, while gold traded down 0.38 percent to $1,283.70.

Silver traded up 0.18 percent Wednesday to $19.42, while copper rose 0.25 percent to $3.04.

Eurozone
European shares were mostly lower today.

The Spanish Ibex Index rose 0.07 percent, while Italy's FTSE MIB Index fell 0.42 percent.

Meanwhile, the German DAX dropped 0.41 percent and the French CAC 40 slipped 0.08 percent while U.K. shares declined 0.02 percent.

Economics
The MBA reported that its index of mortgage application activity declined 3.30% in the week ended April 18.

The preliminary reading of Markit PMI manufacturing index fell to 55.40 in April, versus a reading of 55.50 in March. However, economists were expecting a reading of 56.00.

Sales of new US homes dropped 14.5% to an annual rate of 384,000 in March. However, economists were projecting a sales rate of 450,000.

The Treasury is set to auction 5-year notes.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Intraday Update Markets Movers Tech

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Best Income Companies To Own In Right Now: KAR Auction Services Inc (KAR)

KAR Auction Services, Inc., together with its subsidiaries, provides vehicle auction services in North America. It operates in three segments: ADESA Auctions, IAA, and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities. This segment also provides value-added services, such as auction related, transportation, reconditioning, inspection, title and repossession administration and remarketing, and analytical services. The ADESA Auctions segment sells its products and services through commercial fleet operators, financial institutions, rental car companies, new and used vehicle dealers, and vehicle manufacturers and their captive finance companies to franchise and independent used vehicle dealers. The IAA segment offers salvage vehicle auctions and related services that facilitate the remarketing of damaged or low value vehicles designated as total losses by insurance companies and charity donation vehicles, as well as recovered stolen vehicles. This segment also provides inbound transportation, titling, salvage recovery, and claims settlement administrative services. The AFC segment offers floorplan financing, a short-term inventory-secured financing, to independent used vehicle dealers. As of December 31, 2012, the company had a network of 67 whole car auction and 163 salvage auction locations, as well as serviced auctions through 104 locations. The company was formerly known as KAR Holdings, Inc. and changed its name to KAR Auction Services, Inc. in November 2009. KAR Auction Services, Inc. was founded in 2006 and is headquartered in Carmel, Indiana.

Advisors' Opinion:

• [By Geoff Gannon] ore explicit in detailing the competitive position of Copart and Insurance Auto Auctions. It even gave market share data.

  This is common. Often one company will choose not to give names or put percentages on certain competitive facts. The other company will do so. And even when that is not the case, the two companies will often make statements that ��when taking together ��can give you rough indications of certain realities that neither company entirely intended to provide.

  The same is true for certain suppliers and customers. Although this is complicated by size. Very large customers of small companies are not good sources of information. But smaller companies often provide better insights into the larger suppliers, customers, etc., they deal with. That's because ��due to their small size ��more information is material and is explained in detail.

  I have found situations where one company simply says who the customer is that they are supplying. While the other company explains what product that supply goes into, the purchase amount, whether it is an exclusive arrangement, etc.

  So it is always important to ��at a minimum ��read the 10-Ks, 14As, and (where available) S-1s of every public company in the industry. This will give you a lot of insight into the competitive situation. Sometimes it is helpful to also look at customers and suppliers. However, this is not true of very large customers and suppliers because they will not discuss the specific area you are interested in.

  For example, Honeywell is a large customer of George Risk. It would do me no good to study Honeywell to learn about George Risk. Honeywell is a huge company. What they buy from George Risk is irrelevant to their shareholders. So they do not discuss it.

  An exception to this is where the product sold is going into a huge "generational" type project. Examples include defense, aerospace, video game consoles, operating systems, etc. This can be very hel

Best Income Companies To Own In Right Now: REX American Resources Corp (REX)

Rex American Resources Corporation (REX), incorporated in 1984, is a holding company to succeed to the entire ownership of three affiliated corporations, Rex Radio and Television, Inc., Stereo Town, Inc. and Kelly & Cohen Appliances, Inc. As of January 31, 2012, the Company had lease agreements, as landlord, for six owned former retail stores and had 16 vacant former retail properties. The Company also owns one former distribution center that is partially leased, partially occupied by its corporate office personnel and partially vacant. The Company is marketing these vacant properties to lease or sell. As of January 31, 2012, the Company invested in five ethanol production entities, two of which the Company has a majority ownership interest in. These properties include One Earth Energy, LLC, NuGen Energy, LLC, Patriot Renewable Fuels, LLC, Levelland Hockley County Ethanol, LLC, and one group consisting of Big River Resources, LLC-W Burlington, Big River Resources, LLC-Galva and Big River United Energy, LLC. It operates through two business segments: alternative energy and real estate.

On November 1, 2011, the Company acquired an additional 50% equity interest in NuGen Energy, LLC. In December 2011, Big River acquired a 100% interest in an ethanol production facility located in Boyceville, Wisconsin.

Alternative Energy

As of January 31, 2012, all of the entities the Company is invested in are operating except for Levelland Hockley County Ethanol, LLC (Levelland Hockley). As of January 31, 2011, the Company held a 74% interest in One Earth Energy, LLC. The plant has an annual nameplate capacity of 100 million gallons of ethanol and 320,000 tons of dried distillers grains (DDG). The Company owns a 23% interest in Patriot Renewable Fuels, LLC (Patriot). The plant is located in Annawan, Illinois and has a nameplate capacity of 100 million gallons of ethanol and 320,000 tons of DDG per year.

As of January 31, 2012, all of the entities the Company is in! vested in are operating except for Levelland Hockley County Ethanol, LLC (Levelland Hockley). As of January 31, 2011, the Company held a 74% interest in One Earth Energy, LLC. The plant has an annual nameplate capacity of 100 million gallons of ethanol and 320,000 tons of dried distillers grains (DDG). The Company owns a 23% interest in Patriot Renewable Fuels, LLC (Patriot). The plant is located in Annawan, Illinois and has a nameplate capacity of 100 million gallons of ethanol and 320,000 tons of DDG per year.

Levelland Hockley is located in Levelland, Texas. The plant has a nameplate capacity of 40 million gallons of ethanol and 135,000 tons of dried distillers grains (DDG) per year. The plant was shut down in January 2011. On January 31, 2011, the Company sold 814,000 of its membership units to Levelland Hockley, reducing its ownership interest in Levelland Hockley to 49%. As a result, it no longer has a controlling financial interest in Levelland Hockley.

Real Estate Operations

As of January 31, 2011, the Company had lease agreements, as landlord, for all or parts of eight owned former retail stores (88,000 square feet leased and 10,000 square feet vacant). It had 22 owned former retail stores (281,000 square feet) that were vacant as of January 31, 2011. The Company is marketing these vacant properties to lease or sell. In addition, one former distribution center is partially leased (266,000 square feet), partially occupied by its corporate office personnel (10,000 square feet) and partially vacant (190,000 square feet). A typical lease agreement has an initial term of five to twenty years with renewal options. Most of its lessees are responsible for a portion of maintenance, taxes and other executory costs.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By Tristan R. Brown]

  Three months ago I wrote that the stock performance YTD of independent ethanol producer Pacific Ethanol (PEIX) was an "aberration", especially in light of the performance of its industry peers' shares. The discrepancy between Pacific Ethanol's share price and those of its peers has only grown more pronounced since July (see figure). Green Plains Renewable Energy (GPRE) and REX American Resources (REX) have continued to greatly outperform the S&P 500. Even Biofuel Energy, which fell behind on its interest and debt payments over the summer and is facing a shareholder-ruining liquidation, has seen its share price perform significantly better than Pacific Ethanol's in 2013. The oddest part about the stock's performance over the last three months, however, is that the period has been marked by multiple positive announcements from the company. It late July it reported its first positive EPS in almost two years for Q2 (0.07). Its Q2 EBITDA of $3.8 million was its highest since Q4 2011. Its current ratio is well above its previous lows, its ratio of total assets to total liabilities is increasing, and its total shareholders' equity is at a 3-year high. Despite these improvements, the company's price/book ratio is a mere 0.77.

Top 10 Gas Utility Stocks To Watch Right Now: Microsemi Corporation(MSCC)

Microsemi Corporation engages in the design, manufacture, and marketing of analog and mixed-signal integrated circuits (IC) and semiconductors primarily in the United States, Europe, and Asia. Its products include individual components and IC solutions that offer light, sound, and power management for desktop and mobile computing platforms, LCD TVs, and other power control applications. These products are used in notebook computers, data storage, wireless local area network, LCD backlighting, LCD TVs, LCD monitors, automobiles, telecommunications, test instruments, defense and aerospace equipment, sound reproduction, and data transfer equipment. The company?s semiconductor products include silicon rectifiers, zener diodes, low leakage and high voltage diodes, temperature compensated zener diodes, transistors, subminiature high power transient suppressor diodes, and pin diodes used in magnetic resonance imaging (MRI) machines. It also manufactures semiconductors for commer cial applications, such as automatic surge protectors, transient suppressor diodes used for telephone applications, and switching diodes used in computer systems. In addition, the company provides electronic components and systems for the defense and aerospace markets; multi-band radio frequency integrated circuit solutions; and anti-tamper solutions to defense clients in securing systems against tampering, piracy, and reverse engineering. It markets its products directly, as well as through electronic component distributors and independent sales representatives to the defense and security, aerospace, enterprise and communication, and industrial and alternative energy markets. The company was formerly known as Microsemiconductor Corporation and changed its name to Microsemi Corporation in February 1983. Microsemi Corporation was founded in 1960 and is headquartered in Aliso Viejo, California.

Advisors' Opinion:

• [By Lauren Pollock]

  Microsemi Corp.(MSCC) agreed to pay almost $298 million to acquire Symmetricom Inc.(SYMM), a deal that will expand the power-management supplier’s exposure into the aerospace and defense industries while also immediately adding to earnings. Shares in Symmetricom soared.

Best Income Companies To Own In Right Now: DMH International Inc (DMHI)

DMH International, Inc. (DMH), incorporated on June 2, 2010, is a development-stage company. The Company focuses on creating specialty t-shirts and other casual and active clothing geared toward the Hispanic community. It focuses to develop, brand and market an entire apparel line named Dale Mas. On June 7, 2010, the Company acquired Dale Mas. Its initial products consist of two different men's shirts. First men�� shirts is a basic t-shirt made from 100% cotton. The second men�� shirt is 70% rayon, 30% polyester button-up shirt. In February 2013, it acquired Touch Medical Solutions, Inc.

The Company focuses on designing and retailing of casual apparel. It focuses on developing a Website www.dale-mas.com , to market and deliver products to anyone with an Internet connection and a shipping address. During the Fiscal year ended June 30, 2010, the Company did not generate any revenue.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Frontier Beverage Company Inc (OTCMKTS: FBEC), IMD Companies Inc (OTCMKTS: ICBU) and Dmh International Incorporated (OTCBB: DMHI) were all mimicking the Titanic last Friday by sinking 41.18%, 32.5% and 28.16%, respectively, last Friday. Moreover, all three of these stocks have been the subject of paid promotions or investor relation campaigns. With the promotions in mind, is it to late to dump these small cap stocks or will this week present a buying opportunity? Here is a closer look:

Best Income Companies To Own In Right Now: Grupo Televisa S.A.(TV)

Grupo Televisa, S.A.B., together with its subsidiaries, operates as a media company in Mexico and internationally. It operates in seven segments: Television Broadcasting, Pay Television Networks, Programming Exports, Publishing, Sky, Cable and Telecom, and Other Businesses. The Television Broadcasting segment engages in the production of television programming and broadcasting of channels 2, 4, 5, and 9; and production of television programming and broadcasting for local television stations in Mexico and the United States. The Pay Television Networks segment provides programming services for cable and pay-per-view television companies in Mexico, as well as other countries in Latin America, the United States, and Europe. The Programming Exports segment offers international licensing of television programming. The Publishing segment primarily publishes Spanish-language magazines in Mexico, the United States, and Latin America. The Sky segment provides direct-to-home broadcas t satellite pay television services in Mexico, Central America, and the Dominican Republic. The Cable and Telecom segment operates a cable and telecommunication system in the Mexico City metropolitan area. This segment provides data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network in Mexico and the United States; basic and premium television, pay-per-view, and telephone services. The Other Businesses segment engages in sports and show business promotion, soccer, feature film production and distribution, Internet, gaming, radio, and publishing distribution operations. The company was founded in 1990 and is headquartered in Mexico City, Mexico.

Advisors' Opinion:

• [By Daniel Cross]

  Grupo Televisa (NYSE: TV) is a broadcasting company that is set to take advantage of growth in several areas. The increase in the United States' Hispanic population means there are 53 million potential users of Spanish-language networks like Univision. Grupo Televisa receives royalties from licensing its programs to Univision, and revenue is expected to top $270 million this year. The emergence of Mexico as a manufacturing powerhouse means that the middle class should see a boost as well. Pay TV is popular in Mexico, as seen by a 12% rise in that segment's revenues from last year. Operating margins are improving as well, increasing from 17% in 2011 to 26% as of the most recent quarter.

• [By Michael J. Carr]

  Grupo Televisa (NYSE: TV) provides programming and cable and satellite services to viewers in the U.S., Mexico, the Dominican Republic and other countries. The company reported more than $5.5 billion in revenue over the past 12 months and earnings of more than $680 million, or $1.10 per share. Cash flow per share doubled in the past 12 months.

Best Income Companies To Own In Right Now: Resolute Forest Products Inc (RFP)

Resolute Forest Products Inc., AbitibiBowater Inc., is a global forest products company. The Company�� products include newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates pulp and paper mills and wood products facilities in the United States, Canada and South Korea. On November 7, 2011, it began doing business as Resolute Forest Products. As of December 31, 2011, it owned or operated 18 pulp and paper mills and 23 wood products facilities in the United States, Canada and South Korea. The Company�� segments include newsprint, coated papers, specialty papers, market pulp and wood products. On January 14, 2011, it acquired the noncontrolling interest in Augusta Newsprint Company (ANC). In April 2012, the Company held approximately 48.8% of the outstanding shares of Fibrek Inc. In December 2012, the Company purchased Bowater Mersey Paper Company Limited. oklyn Power Corporation. Advisors' Opinion:

• [By George Putnam]

  Resolute Forest Products (RFP), formerly known as AbitibiBowater, entered into bankruptcy in early 2009, weighed down by roughly $6 billion in debt.

Best Income Companies To Own In Right Now: Transmontaigne Partners L.P. (TLP)

TransMontaigne Partners L.P. operates as a terminaling and transportation company. It provides integrated terminaling, storage, transportation, and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers, and other liquid products. The company operates along the Gulf Coast, in the Midwest, in Brownsville, Texas, along the Mississippi and Ohio Rivers, and in the southeastern United States. As of December 31, 2010, it operated 7 refined product terminals in Florida with an aggregate storage capacity of approximately 7.1 million barrels; a 67-mile interstate refined products pipeline between Missouri and Arkansas and 3 refined product terminals with approximately 0.6 million barrels of aggregate active storage capacity; 2 refined product terminals located in Mt. Vernon, Missouri, as well as Rogers, Arkansas with an aggregate active storage capacity of appr oximately 407,000 barrels; and 1 refined product terminal in Oklahoma City, Oklahoma with an aggregate active storage capacity of approximately 158,000 barrels. The company also operated 1 refined product terminal in Brownsville, Texas with an aggregate active storage capacity of approximately 2.2 million barrels; 1 refined product terminal located in Matamoros, Mexico with an aggregate active LPG storage capacity of approximately 7,000 barrels; a pipeline from Brownsville facilities to its terminal in Matamoros, Mexico; 12 refined product terminals along the Mississippi and Ohio rivers with an aggregate active storage capacity of approximately 2.5 million barrels, as well as a dock facility; and 22 refined product terminals along the Colonial and Plantation pipelines with an aggregate active storage capacity of approximately 9.3 million barrels. TransMontaigne GP L.L.C. serves as the general partner of the company. TransMontaigne Partners L.P. was founded in 2005 and is bas ed in Denver, Colorado.

Advisors' Opinion:

• [By Eric Volkman]

  TransMontaigne Partners (NYSE: TLP  ) is about to ship a bigger load of dividend to its unit holders. The company has declared a new distribution of $0.65 per unit, to be dispensed on Aug. 8 to holders of record as of July 31.That amount is $0.01, or 1.6%, higher than the company's previous payout of $0.64. It had distributed this amount in each of the preceding four quarters.

• [By Seth Jayson]

  Transmontaigne Partners (NYSE: TLP  ) is expected to report Q2 earnings around July 16. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Transmontaigne Partners's revenues will increase 5.5% and EPS will compress -23.9%.

• [By Eric Volkman]

  TransMontaigne Partners (NYSE: TLP  ) is drilling into the market to raise in the neighborhood of $60 million. The company has floated 1.45 million of its common units in an underwritten public offering priced at $43.32 per unit. The company's underwriters have also been granted a 30-day purchase option for up to an additional 217,500 units.

Best Income Companies To Own In Right Now: ARC Document Solutions Inc (ARC)

ARC Document Solutions, Inc., formerly American Reprographics Company, provides specialized document solutions to businesses of all types, with a focus on the non-residential segment of the architecture, engineering and construction (AEC) industry. The Company offers reprographic services, as well as managed print services, digital color printing, and document management technology products and services. It also has operations in Canada, China, India and the United Kingdom. It is a document solutions company serving the AEC industry that provides document management services through a combination of local service facilities in more than 40 states, 12 digital color service centers, online channels, including Web-based applications, and software. The Company conducts its operations through a wholly owned subsidiary, American Reprographics Company, L.L.C. and its subsidiaries.

The Company offers three general categories of service: Reprographics Services, Facilities Management, and Equipment and Supplies. Reprographics Services sales include operational activities, such as document management services, document logistics, large- and small-format print-on-demand services in color and black and white, and digital document management services. Facilities Management sales are primarily composed of onsite services, where it provides document production equipment, technology solutions and sometimes staff to its customers in their offices. These services include both traditional reprographics services focused on large-format printing, as well as managed print services (MPS). Under an MPS contract, it supplies, maintains and manages a customer�� entire print networks, including office printing equipment, on an outsourced basis. Equipment and Supplies sales involve the resale of printing and imaging equipment and supplies from a variety of suppliers.

As of December 31, 2011, the Company operated 220 reprographics service centers, of which 199 were in the United States, seven were in ! Canada, 11 were in China, two were in India and one in London, England. It also occupied a technology center in Silicon Valley, California, a software programming facility in Kolkata, India, as well as other facilities, including its offices located in Walnut Creek, California. The Company�� products and services are available from any of ARC�� 220 service centers worldwide. The Company supplies reprographics services to project architects, engineers, general contractors and others. In addition to the AEC industry, ARS also provides document management and printing services to the retail, aerospace, technology, entertainment, and healthcare industries, among others.

The Company competes with Oce, Xerox, Canon, Konica Minolta, Ricoh and Sharp.

Advisors' Opinion:

• [By Seth Jayson]

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

Best Income Companies To Own In Right Now: National Oxygen Ltd (NOL)

National Oxygen Limited (NOL) is an India-based company, which is a producer and supplier of industrial gases both in liquid and gaseous forms to industries and hospitals. Its products include oxygen, nitrogen and acetylene. The Company operates in two segments: Industrial Gases, which is engaged in the manufacture of industrial gases, and Windmill, which is engaged in the generation of windmill energy. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company produced 51,07,981 cubic meters of oxygen, 52,138 cubic meters of dissolved acetylene, 30,69,610 cubic meters of nitrogen and 26,86,762 kilowatt hours of windmill energy. It has two industrial gas plants in Tamil Nadu and Pondicherry, and one windmill in Maharashtra. During fiscal 2012, NOL had an installed capacity to produce 2,50,00,000 cubic meters of oxygen, 2,00,000 cubic meters of dissolved acetylene and 44,00,000 kilowatt hours of windmill energy. Advisors' Opinion:

• [By John Emerson]

  Another huge benefit which was imbedded in the value of RTEC was the tens of millions of net operating losses (NOL) that the company had accrued as a result of the massive accrual losses it would sustain during the credit crisis. These benefits were not reflected on the balance sheet but they would translate into tens of millions of dollars in income tax savings when the company eventually returned to profitability.

Best Income Companies To Own In Right Now: SPDR Dow Jones Industrial Average ETF Trust (DIA)

Diamonds Trust, Series 1 (the Trust) is a unit investment trust. The Trust was created to provide investors with the opportunity to purchase units of beneficial interest in the Trust representing proportionate undivided interests in the portfolio of securities consisting of substantially all of the component common stocks, which comprise the Dow Jones Industrial Average (the DJIA). The Trust�� objective is to provide investment results that, before expenses, generally correspond to the price and yield performance of the DJIA.

The Trust's holdings consist of the 30 stocks in the DJIA, which is designed to capture the price performance of 30 United States blue-chip stocks. The Trust ended its fiscal year on October 31, 2007, with a 12-month return of 17.72% on net asset value as compared to the DJIA return of 17.94%. As of October 31, 2007, some of the Trust�� investments included 3M Co., Alcoa, Inc., Altria Group, Inc., American Express Co., American International Group, Inc., AT&T, Inc., Boeing Co., Caterpillar, Inc., Citigroup, Inc. and Coca-Cola Co.

Advisors' Opinion:

• [By Jonathan Yates]

  Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

• [By Anders Bylund]

  However, the stock hasn't been a world-beater no matter how you slice the dividend checks. The Dow (DJINDICES: ^DJI  ) has gained 91% over the same period without reinvested dividends, or 103% if you turned on dividend reinvestments for a Dow tracker such as the SPDR Dow Jones ETF (NYSEMKT: DIA  ) , more commonly known as Diamonds. At best, Microsoft's dividends only helped shareholders keep pace with a simple Dow-tracking fund.

• [By Dan Caplinger]

  But if you want to match the market, tailor your investment strategy to use market-tracking ETFs. For instance, the SPDR Dow Jones Industrials ETF (NYSEMKT: DIA  ) , colloquially known as the Diamonds, tracks the popular Dow average. The popular Spiders, officially called the SPDR S&P 500 ETF (NYSEMKT: SPY  ) , moves nearly in lockstep with the S&P 500. You won't get exactly the performance of the indexes, as ETFs have fees involved that will detract somewhat from total returns. But with ETF fees being relatively low, the amount you lose to those costs is much less than you'd pay with an actively managed mutual fund.

Why Stocks Surged Before the Fourth of July

Blue-chip stocks closed higher on the eve of tomorrow's holiday thanks largely to a couple of better-than-expected reports about the state of the labor market. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up by 0.37%, while the S&P 500 (SNPINDEX: ^GSPC  ) was higher by 0.06%.

In the first case, the Labor Department said today that applications for unemployment benefits fell by 5,000 last week compared with the week before. The number of people submitting jobless claims for the week ended June 29 came in at 343,000. In addition to the fact that this beat the consensus estimate, which called for 346,000 claims, it also represents the lowest level in six weeks.

And in the second case, Automatic Data Processing, which provides payroll services to the private sector, said that companies added more workers than economists predicted last month. According to ADP's estimate, a net 188,000 jobs were created in June compared to the average analyst forecast of 160,000. In economist Mark Zandi's opinion, the report showed that the improvement was "broad-based across industries and businesses of all sizes."

The one disappointing piece of news out today related to the mortgage market. Data from the Mortgage Bankers Association suggested that mortgage applications fell by 11.7% last week following the recent and dramatic uptick in mortgage rates. The refinance market was particularly hard hit, with a 16% decline on a sequential basis.

On the heels of the latter news, it should be no surprise that many bank stocks underperformed the broader market today. For instance, Wells Fargo (NYSE: WFC  ) , the nation's largest mortgage lender by far, finished flat compared with an increase on both the Dow and S&P 500. In the first quarter of this year, the mortgage giant underwrote a staggering $109 billion in mortgages, the vast majority of which were to refinance older home loans. Consequently, investors will be watching this line item closely when Wells Fargo reports its second-quarter earnings at the end of next week.

In terms of Dow stocks, the day's best performance came from Boeing (NYSE: BA  ) , which advanced by 1.4%. Earlier today, the aerospace company released data showing that it delivered more planes than its principal competitor, Airbus, during the first half of the year. Through June, Boeing has delivered 306 jetliners. By comparison, Airbus reported only 295 deliveries.

Alternatively, the worst-performing stock on the index today was Alcoa (NYSE: AA  ) , down by 1.2% at close. The aluminum company was the unwitting victim of a downgrade from JPMorgan Chase. Citing a predicted 5% decline in aluminum prices this year and an even steeper drop next year, analysts at the megabank removed their "buy" label on the company in exchange for a "neutral" rating.

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2 Things Investors Should Watch Very Closely This Week

Allow me to make a bold claim. In my opinion, this is the most important week in April for stocks and the economy, as two unusually significant economic reports are scheduled for release on Tuesday and Wednesday, either of which could exert a big impact on the S&P 500 (SNPINDEX: ^GSPC  ) .

The first, which I discussed at length yesterday, is the National Association of Realtors' report on March existing-home sales. The gravity of this can't be overstated, as the housing market is a principal component of the American economy.

Although the pace of existing-home sales has increased consistently since the middle of 2010, everything seemed to change last year. After peaking at a seasonally adjusted annual rate of 5.38 million in July of last year, they've since taken a nosedive. Most recently, the figure dropped to 4.6 million in February.

5 Best Industrial Disributor Stocks To Invest In Right Now

With the spring selling season just around the corner, the question is whether the downturn is a temporary blip, caused perhaps by extreme weather from earlier in the year, or whether it's a genuine correction. If it's the former, there's little reason for concern. If it's the latter, there may very well be.

Along these same lines, the second report will shed light on the homebuilding industry. On Wednesday, the government is scheduled to release its estimate of new home sales for March.

The figure for February, while not as dire as the market for previously owned homes, similarly suggested that the momentum in the housing market may have taken a turn for the worse, as new home sales were down by 3.3% compared to January. Again, the thing to watch is whether the downturn is temporary or here to stay, at least for the time being.

In sum, if you're an investor or are otherwise interested in the economy, then I'd strongly encourage you to keep a close eye on both of these events.

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Total to Develop 200,000 BBPD Nigerian Oil Field

Total (NYSE: TOT  ) announced today that its upstream Nigeria-based joint-venture partnership subsidiary has received regulatory approval to being awarding contracts to develop the offshore Egina field.

The field, which is 120 miles off the coast of Port Harcout, was first discovered in 2003 and is part of the larger "OML 130" block in which Total and other energy companies currently have operations.

Source: Total 

Total Upstream President Yves-Louis Darricarrère in a statement today:

Egina is the second development of the OML 130 license. Following Akpo, which was brought on stream in 2009, it will add significant value to the partnership. With more than 21 million man-hours of local work, the project will make a material contribution to the development of Nigerian economy. After more than 50 years in the country, we are confident that Nigeria will continue to provide a suitable framework to promote investments.

Total's subsidiary has a 24% stake in the field, along with national oil companies from Nigeria, China, and Brazil. First oil is expected by 2018, with output around 200,000 barrels of oil per day.

The announcement comes as several other companies are easing out of Nigeria operations, including Chevron, Shell, ConocoPhillips, and even Total itself.

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10 Basic Rules of Every Estate Plan

Most people still believe that estate planning is all about tax planning. Since the tax law now exempts most estates, they think they don't really need an estate plan. But they do, and many people need an estate plan more than ever.

That's a mistake. An estate plan involves a lot more than tax planning, and for most people the non-tax elements of a plan are more important than the tax issues.

There are basic rules and guidelines that apply to every estate plan, whether it is taxable or not. Draft an effective plan by paying attention to these guidelines, regardless of what the tax law is or might become. You always can make adjustments if the tax law changes.

* Do something. Too many people use uncertainty as an excuse not to have a plan. Some people can't resolve issues such as who should be the executor, trustee, or guardian of their children. Some can't decide how much to leave to charity, or perhaps the estate planner is proposing a strategy they don’t quite understand or aren’t comfortable with yet.

Don’t let these issues leave you with no estate plan or an out-of-date plan. If you can't pull a complete plan together, at least do the minimum necessary, such as a basic will and powers of attorney. You can do an estate plan in installments. Assemble a simple, basic plan now that covers the essentials. Then, work toward a more robust plan as you learn more about the tools available, refine your goals, and resolve disagreements.

* Keep track of your estate. There’s a story that W.C. Fields didn't think banks were safe, so he diversified by stashing his money in relatively small amounts in banks all over the country. He didn’t keep a master list of the banks, and his heirs never were sure they found all the money, though they spent resources trying to track down all the accounts. Fields probably knew how to find everything, but he didn’t give a! nyone else all the information.

Different variations of this story occur remarkably frequently in estates of all sizes. The estate owner doesn't have a master list or file of all the property and debts, and the files aren't in great shape, at least not for someone who doesn't know the system. In those cases, all the property might not be located or the estate spends a lot of time and money trying to locate it. Your estate planner also can't deliver the best advice without an accurate list of your assets and liabilities.

At a minimum, you should update a complete list of your assets and liabilities once a year and share this with the person (or persons) named as executor in your will. And make sure your executor knows where to find all the documents to back up the financial statement. Even better is a complete list of all your key financial items, including online accounts. For help compiling a list, use my report, To My Heirs.

* Estimate cash flow. Many people overlook cash flow when developing an estate plan. But the cash flow and sources of cash are important. Debts must be paid. Lawyer’s fees and other expenses will be incurred. The expenses of running and maintaining the estate’s property must be paid, and the survivors have their regular living expenses to pay. Of course, if taxes are due they must be paid with cash.

Estimate how much cash the estate will need before it is settled and where it will come from. If the estate won’t have enough cash, reconsider the plan. You can sell some assets now, provide that some people will get property instead of cash, buy life insurance, or give the executor instructions on how to sell property. Many estate planners advise limiting specific cash bequests to only a few special cases.

* Choose executors and trustees. Most people spend a lot of time on their plans, then select the executors and trustees as an afterthought, often automatically choosing the estate planning lawyer or oldest child as executor and! the bank! recommended by the lawyer as trustee. Those might or might not be the best choices for you. Unfortunately, a good estate plan can be ruined if the wrong people implement it. Give a lot of thought to who should execute your plan.

* Anticipate conflicts and reduce them. Many estates have built-in conflicts that could have been resolved. For example, if kids don’t get along now, if you are always mediating their disputes, then they aren’t likely to amicably manage assets or decide how to divide them. Perhaps they should be given separate ownership of assets, different voting rights, or someone else should help make decisions about the property.

Other times the roles of an individual create conflicts. A classic conflict is when a spouse is made trustee, receives income from the trust, and the children get the trust property after the spouse dies. Often, the children end up believing that the spouse invested for maximum current income at the expense of earning capital gains for the future. Your estate plan should avoid such built-in conflicts. At best they lead to hard feelings and at worst lead to expensive litigation.

* Don’t search for a perfect solution. An estate plan is a balancing act. It strikes a balance between your goals, the needs of your family, the tax law, and perhaps other factors. You also have to decide whether to leave assets to your heirs directly or with some restrictions, such as through a trust.

A good estate planner will present you with several alternative plans. Each will handle the trade offs in different ways. You choose the alternative that strikes the balance you prefer.

* Don’t be a control freak. Some controls can be a good idea, such as when a beneficiary doesn’t have good judgment or experience handling a meaningful amount of money. In such cases, property should be put in a trust.

But some people go a step further and dictate in detail how wealth is and is not to be invested and distributed. There are trusts! saddled ! with restrictions that require them to be invested in Treasury bills, gold stocks, or the stock of certain companies, to name just a few examples. Trustees, executors, and heirs need to be able to adapt to changing circumstances.

* Make your general plan known. If you don’t tell heirs your plans, they will develop expectations. Feelings tend to be hurt when they are surprised after your death. That can lead to anger or bitterness that will be taken out on others in the family. Also, heirs might plan their finances with certain expectations about your estate plan and be in difficulty when their expectations aren't realized. You should let people know generally how they're affected by your plan. For example, if you aren’t going to treat heirs equally, will leave money to charity, or know that someone is expecting certain property, it is important to let the affected people know ahead of time.

* Don’t circulate your will. While you want the general outline of your plan known among those affected, don’t circulate the will. You likely need to update it every few years, and any change in the details gives someone a reason to be upset. Also, having different versions of a will circulating over the years makes an expensive will contest more likely.

* Things change. Your estate plan never is final. The property you own and the values change. The members of your family change through births, deaths, marriages, and divorces. Your goals might change. You might be inclined to leave more or less to charity or specific heirs over time. You need to meet with your planner at least every two or three years to review changes in your financial picture, family, and goals as well as the tax law.

* Keep it as simple as possible. Some people and their attorneys get so wrapped up with the latest estate planning tools that they overlook simpler strategies that will accomplish their goals. Be sure complications are necessary to meet your goals before putting them in your plan.

Reme! mber that any mistakes in your estate plan will live long after you. Follow these rules and you’ll end up with an estate plan that works well for you and your heirs.

Top 10 China Companies For 2014

Top 10 China Companies For 2014: Changyou.com Limited(CYOU)

Changyou.com Limited develops and operates online games in the People?s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players. The company operates seven MMORPGs that include its in house developed Tian Long Ba Bu; and licensed Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith, and San Jie Qi Yuan. As of December 31, 2010, Changyou?s games in China had approximately 111.4 million aggregate registered accounts; 1.0 million aggregate peak concurrent users; and 2.7 million aggregate active paying accounts. The company was founded in 2003 and is based in Beijing, the People?s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Changyou.com (NASDAQ: CYOU) shares tumbled 11.75percent to $26.02 after the company issued a weak Q1 guidance and announced the resignation of its CFO.

• [By Yiannis Mostrous]

  Changyou.com (CYOU)

  A subsidiary of Internet portal Sohu.com, video game developer Changyou.com specializes in massively multiplayer online role-playing games (MMORPG).

• [By Kevin Chen]

  To be fair, these revenues come from their stake in game company Changyou (NASDAQ: CYOU  ) . Because Sohu owns a majority stake in Changyou, Sohu must consolidate all financials into its statements -- even as Changyou is independently listed on stock exchanges. Whatever the case, Sohu actually created Changyou -- it started as a business unit in 2003, then was spun out in 2007. In any case, Sohu should do some serious soul-searching.

source from Top Stocks Bl! og:http://www.topstocksblog.com/top-10-china-companies-for-2014-2.html

Top 5 Consumer Stocks To Watch For 2015

With shares of J.C. Penney (NYSE:JCP) trading around $5, is JCP an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

J.C. Penney is a retailer operating more than 1,000 department stores in just about every state in the United States and Puerto Rico. Its business consists of selling merchandise and services to consumers through its department stores and website. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora, and home furnishings. The company has not done too well in recent years, but it is doing what it can to be a top provider of apparel and related products.

J.C. Penney, the department-store chain working to reverse more than two years of losses, posted its first quarterly same-store sales gain since 2011 after Chief Executive Officer Mike Ullman increased discounts.�Sales at locations open at least a year rose 2 percent in the fiscal fourth-quarter, which runs through January, the Plano, Texas-based company said today in a statement. Same-store sales climbed 3.1 percent in the nine weeks through November and December, J.C. Penney said.�Ullman has halted the decline in J.C. Penney�� sales by reviving popular private-label brands and bringing back sales events that former CEO Ron Johnson had done away with. Same-store sales plunged 32 percent in the fourth-quarter a year earlier, and revenue by that measure hadn�� gained since the quarter ended in July 2011.

Top 5 Consumer Stocks To Watch For 2015: Tranzbyte Corp (ERBB)

The Tranzbyte Corporation, incorporated on November 12, 1998, is a driving force behind Altitude Organic Corporation, One Bode, The YO! Debit Card, and ProximaRF. Altitude Organic Corporation is a medical marijuana dispensary brand. It has developed retailing, branding, and commercial cultivating strategies in conjunction with its licensed medical marijuana retail dispensaries operating under the Altitude Organic Medicine brand name.

Tranzbyte houses the technology division, which is engaged in the sale of its optical media enhancement products to customers in the United States and Asia. Products in the Tranzbyte division include FLASHAlbum and FlixStix technologies that enable distributors of optical media (compact discs, digital video discs, etc.) to consolidate the features of each medium onto a single content-protected universal serial bus (USB) flash drive. One Bode has created an assortment of products focusing on plant-based nutrients and enzymes. Applied radio frequency identification (RFID) and its operating subsidiaries (www.proximarf.com), have a portfolio of RFID reader, sensor tag and data logging products.

Advisors' Opinion:

• [By Bryan Murphy]

  Though they've been lumped into the same category as Medical Marijuana Inc. (OTCMKTS:MJNA) and Tranzbyte Corp. (OTCMKTS:ERBB), names like Nuvilex Inc. (OTCMKTS:NVLX) and Growlife Inc. (OTCBB:PHOT) aren't actually marijuana stocks. Granted, PHOT and ERBB shareholders will benefit from the advent of legalized marijuana (and hemp) as much as shareholders of ERBB - a grower and dispenser - and MJNA shareholders will. But, in some way they're safer and more stable because they're not directly in the line of fire of potential regulation... or better-enforced regulation at the federal level. Indeed, there are several stocks that are circumventing the risk inherent with marijuana stocks, because they're not marijuana stocks at all. They are, in no particular order....

Top 5 Consumer Stocks To Watch For 2015: Craft Brew Alliance Inc (BREW)

Craft Brew Alliance, Inc., incorporated on May 4, 1981, is an independent craft brewer. The Company is engaged in brewing, marketing and selling of craft beers in the United States. The Company operates two segments: Beer related operations and Pubs and Other. Beer related operations include the brewing and sale of craft beers from its five breweries. Pubs and Other operations primarily include its five pubs, four, of which are located adjacent to its breweries. The Company brews its Widmer Brothers, Redhook and Kona beers in each of its three mainland production breweries, including New Hampshire Brewery, Oregon Brewery and Washington Brewery. The Company also owns and operates a small manual style brewery, primarily used for small batch production at the Rose Quarter in Portland, Oregon. The Company�� beer portfolio is consisted of the Widmer Brothers, Redhook and Kona brand families. On May 2, 2011, the Company sold 42% interest in Fulton Street Brewery, LLC.

The Company�� Widmer Brothers Hefeweizen is a golden, cloudy wheat beer with a pronounced citrus aroma and flavor. This beer is usually served with a lemon slice. Its Drifter Pale Ale is brewed with generous amounts of summit hops. It also includes Drop Top Amber Ale and Rotator India Pale Ale. Initial beers in the series 924 series include the Nelson Imperial IPA and the Pitch Black IPA, which is a Pacific Northwest twist on a traditional IPA, brewed in the style of a Cascadian Dark. Beers in this brand are offered as a draft product and as a four pack for bottles. Widmer Brothers beers include Brothers��Reserve and Alchemy Project. Widmer Brothers seasonal beers are Citra Blonde, Okto, Brrr and W series.

The Redhook family of beers is consisted of sessionable (lower alcohol by volume) and approachable beers. Its Long Hammer IPA is the beer within the brand family and is English pub-style bitter ale with a bold hop aroma and profile that is not overpoweringly bitter. Its

Redhook Pilsner is a crisp, easy-! drinking, golden lager that is modeled after beers originally brewed in Plzen, Czechoslovakia. Redhook ESB is rich, full-bodied amber ale with a smooth flavor profile featuring toasted malts and a pleasant finishing sweetness. Its Copperhook Ale is copper-colored ale with caramel notes and a clean refreshing finish. The Company�� Blueline Series brand is offering from the Redhook brand family for the West Coast beer drinker. These beers are hand crafted by the brewers and are available at its Washington Brewery pub, as well as at select restaurants, bottle shops and public houses in the Seattle, Washington area. Its Brewery Backyard Series is produced at its New Hampshire brewery as a draft product available at the brewery�� pub and at select local establishments. Redhook seasonal beers include Nut Brown Ale, Winterhook Winter Ale and Wit.

The Company�� Kona Beers brand family is consisted of beers that deliver the essence of the Hawaiian Islands that is Always Aloha. The Company�� Longboard Island Lager is a traditionally brewed lager with a delicate, slightly spicy hop aroma that is complimented by a fresh, malt-forward flavor and a smooth, refreshing finish. Its Fire Rock Pale Ale is a crisp, Hawaiian Style pale ale with pronounced citrus and floral hop aromas and flavors that are backed up by a generous malt profile.

Kona seasonal beers include Koko Brown Ale, American brown ale with a deep amber color and rich mahogany hues. This ale has a smoky, roasted nut aroma and flavor, with a coconut twist. Koko Brown Ale is Kona�� spring seasonal. Its Pipeline Porter is smooth and dark, with a roasty aroma and earthy flavor. This ale is brewed with fresh 100% Kona coffee. Its Wailua Wheat is golden, sun-colored ale with a bright, citrusy flavor. This beer is brewed with a touch of tropical passion fruit to impart a slightly tart and crisp finish. Kona offers two variety packs: Island Hopper variety 12-packs and Big Kahuna variety 24-packs. Both packages include the brewe! ry�� Lo! ngboard Island Lager along with Fire Rock Pale Ale and then two of its Aloha series seasonal offerings: Koko Brown, Wailua Wheat and Pipeline Porter.

The Company competes with Heineken, Corona Extra and Guinness.

Advisors' Opinion:

• [By Louis Navellier]

  The fantastic performance and growth of this company was noted by Portfolio Grader back in August and the stock was upgraded to an A. Shares of SAM stock remain a “strong buy” at the current price. When it comes to beer stocks to buy now, this is one of the most tempting.

  Best Booze Stocks to Buy Now -�Craft Brew Alliance (BREW)

  Craft Brew Alliance (BREW) makes craft beers under three very popular brands for beer aficionados. The Widmar Brothers, Redhook and Kona brands of beer have all received rave reviews … and that’s just one reason BREW is one of the best beer stocks to buy now.

5 Best Clean Energy Stocks To Watch Right Now: Zhongpin Inc.(HOGS)

Zhongpin Inc. engages in the processing and distribution of meat and food products primarily in the People?s Republic of China. The company provides pork and pork products, such as chilled pork, frozen pork, hog by-products and variety meats, and prepared meats; and vegetable and fruit products, including asparagus, sweet corn, broccoli, mushrooms, lima beans, strawberries, and capsicums. It sells its products fast food companies, processing factories, school cafeterias, factory canteens, hotels, army bases, and government departments, as well as directly to retail outlets, including supermarkets. The company also exports its products to Europe, Hong Kong, and other countries in Asia. As of December 31, 2010, it operated 157 showcase stores, 1,072 branded stores, and 2,097 supermarket counter locations. The company is headquartered in Changge City, the People?s Republic of China.

Advisors' Opinion:

• [By Dan Caplinger]

  Obviously, the big news for Smithfield during the quarter came from Shuanghui International's offer to buy out the company for $34 per share. The $4.7 billion offer has raised some nationalistic concerns, as the Committee on Foreign Investment in the U.S. will have to approve the merger, but Smithfield CEO Larry Pope said last month when the deal was announced that it believes the deal won't have an effect on the company's operations. In fact, the combination of China's largest meat processor and the world's biggest pork producer could produce a formidable opponent to industry rivals. In particular, Chinese pork producer Zhongpin (NASDAQ: HOGS  ) will inevitably find itself under pressure if the deal goes through, as Shuanghui puts itself in a stronger competitive position in the industry.

Top 5 Consumer Stocks To Watch For 2015: Phillips-Van Heusen Corporation(PVH)

PVH Corp. designs and markets branded dress shirts, neckwear, sportswear, footwear, and other related products worldwide. The company?s Calvin Klein Licensing segment licenses Calvin Klein Collection, ck Calvin Klein, and Calvin Klein brands for sportswear, jeanswear, underwear, fragrances, eyewear, men?s tailored clothing, women?s suits and dresses, hosiery, socks, footwear, swimwear, jewelry, watches, outerwear, handbags, leather goods, home furnishings, and accessories; and to operate retail stores. Its Wholesale Dress Furnishings segment markets dress shirts and neckwear principally under the ARROW, Calvin Klein, ck Calvin Klein, Calvin Klein Collection, IZOD, Eagle, Sean John, Donald J. Trump Signature Collection, Kenneth Cole New York, Kenneth Cole Reaction, JOE Joseph Abboud, DKNY, Tommy Hilfiger, Elie Tahari, J. Garcia, and MICHAEL Michael Kors brands. The company?s Wholesale Sportswear and Related Products segment offers sportswear, including men?s knit and w oven sport shirts, sweaters, bottoms, swimwear, boxers, and outerwear principally under the IZOD, Van Heusen, ARROW, Geoffrey Beene, Timberland, and Calvin Klein brands; and women?s sportswear, including knit and woven sport shirts, sweaters, bottoms, and outerwear under the IZOD brand. Its Retail Apparel and Related Products segment provides men?s dress shirts; neckwear and underwear; men?s and women?s suit separates; men?s and women?s sportswear, including woven and knit shirts, sweaters, bottoms, and outerwear; men?s and women?s accessories; sportswear; and men?s fragrance. The company?s Retail Footwear and Related Products segment offers casual and dress shoes for men, women, and children; and apparel and accessories. The company was formerly known as Phillips-Van Heusen Corporation and changed its name to PVH Corp. in June, 2011. The company was founded in 1881 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Ben Levisohn]

  Stocks have tumbled after a slightly stronger open as Visa (V),�American Express�(AXP),�United Technologies (UTX), Noble Corp (NE) and PVH Corp. (PVH) slide.

Top 5 Consumer Stocks To Watch For 2015: Deckers Outdoor Corporation(DECK)

Deckers Outdoor Corporation engages in the design, manufacture, and marketing of footwear and accessories for outdoor activities and casual lifestyle use to men, women, and children. The company offers luxury footwear and accessories under the UGG brand name; high performance multi-sport shoes, rugged outdoor footwear, and sport sandals under the Teva brand name; casual and sustainable-lifestyle sneakers and accessories under the Simple brand name; casual footwear under the TSUBO brand name; and outdoor performance and lifestyle footwear under the Ahnu brand name. Its accessories include handbags and cold weather outerwear. The company sells its products primarily to specialty retailers, department stores, outdoor retailers, sporting goods retailers, shoe stores, and online retailers. Deckers Outdoor Corporation also sells its products directly to end-user consumers through its Web sites, call centers, retail concept stores, and retail outlet stores, as well as through ret ailers in the United States. In addition, the company distributes its products through independent distributors and retailers in Europe, Canada, Australia, Asia, and Latin America. It has a joint venture with Stella International Holdings Limited for the opening of retail stores and wholesale distribution for the UGG brand in China. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.

Advisors' Opinion:

• [By Monica Gerson]

  Deckers Outdoor (NASDAQ: DECK) is projected to post its Q3 earnings at $0.72 per share on revenue of $385.95 million.

  Colgate-Palmolive Co (NYSE: CL) is expected to report its Q3 earnings at $0.73 per share on revenue of $4.46 billion.

• [By Associated Press]

  Federal prosecutors and the Securities and Exchange Commission on Thursday filed criminal and civil charges against fired KPMG partner Scott London for conspiracy to commit securities fraud through insider trading. The 24-page affidavit filed in support of the criminal complaint alleges that London, 50, of Agoura Hills, Calif., provided confidential information about KPMG clients Herbalife (NYSE: HLF  ) , Skechers USA (NYSE: SKX  ) , Deckers Outdoor (NASDAQ: DECK  ) , RSC Holdings, and Pacific Capital to Bryan Shaw, a close friend, from late 2010 until last month. Prosecutors allege that Shaw made more than $1.2 million in illicit profits by trading in advance of company announcements on earnings results or mergers.

Google, Intel, IBM outlooks to trump earnings results

SAN FRANCISCO (MarketWatch) — For stocks to stem their recent bleeding, outlooks from heavy-hitters such as Google Inc., Intel Corp. and International Business Machines Corp. will need to show the economy is rebounding after a weather-stilted first quarter.

Company forecasts for the second quarter will likely carry more weight than actual first-quarter earnings results this season. Most investors have already accepted that first-quarter earnings results will be unimpressive due to severe winter weather during the quarter, according to strategists.

"You can get a pass on the first quarter, but then the bar on the second quarter goes up," said Brad McMillan, chief investment officer for Commonwealth Financial. "It all keeps on coming down to growth expectations."

/quotes/zigman/12633936/realtime COMP 3,999.73, -54.37, -1.34% Nasdaq Composite Index year-to-date

U.S. stocks got clobbered this past week. The S&P 500 Index (SPX)  and the Nasdaq Composite Index (COMP)  both had their worst weeks since mid-2012, falling 2.7% and 3.1%, respectively. The Dow Jones Industrial Average (DJIA)  fell 2.4% for its worst week since mid-March.

That's just in time for a ramping up of earnings season. During the four-day trading week, which ends Thursday ahead of the Good Friday holiday, nine Dow components report quarterly results. Those Dow components include Coca-Cola Co. (KO) , Johnson & Johnson Inc. (JNJ) , and Intel (INTC)  on Tuesday; IBM (IBM)  and American Express Co. (AXP)  on Wednesday; with UnitedHealth Group Inc. (UNH) , General Electric Co. (GE) , Goldman Sachs Group Inc. (GS) , and DuPont (DD)  on Thursday.

Best Value Stocks To Invest In Right Now

Also 52 S&P 500 components release results with significant reports filling out the tech and financial sectors. Companies include Google (GOOG) (GOOGL) , Yahoo Inc. (YHOO) , Bank of America Corp. (BAC) , Citigroup Inc. (C) , Morgan Stanley (MS) , and BlackRock Inc. (BLK)

Financial results continue after Friday presented a diverging tale of two banks with J.P. Morgan Chase & Co. (JPM)  shares falling on a miss and Wells Fargo & Co. (WFC)  rising on an earnings beat.

Citigroup earnings: here's what investors can expect

Wall Street's outlook for the first quarter is pretty bleak. Then expectations get more optimistic. First-quarter earnings are expected to decline 1.6% from the year-ago period, down from forecasts of 4.3% growth in January, according to FactSet. Analysts expect earnings growth of 7.7%, 11%, and 11% for the second, third, and fourth quarters, respectively.

FactSet

Projected declines, like the one expected for the most recent quarter, usually don't pan out, notes John Butters, senior earnings analyst at FactSet. Over the past 12 quarters, earnings have only declined once in the three other instances where they were forecast to decline, and have always fared better than expected, according to Butters.

Both Dan Greenhaus at BTIG and analysts at Goldman Sachs have forecast that first-quarter earnings are likely to grow more like 2%. In calculating the average "beat" on earnings over the past 12 quarters, Butters estimated earnings would likely grow 1.8% in the first quarter.

"Investors may be willing to look through poor 1Q results brought on by adverse weather conditions if managements offer evidence of improving business activity," said Goldman Sachs in a recent note.

"While guidance always skews negative, guidance provided in recent quarters has been more negative than usual," Goldman Sachs said. "Investors need to see a reversal of this trend in order to dismiss poor 1Q results."

Golf Clap for Patterson Companies

Patterson Companies (Nasdaq: PDCO  ) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 27 (Q4), Patterson Companies met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.

Gross margins increased, operating margins contracted, net margins were steady.

Revenue details
Patterson Companies booked revenue of $964.9 million. The 14 analysts polled by S&P Capital IQ predicted sales of $969.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $0.62. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.62 per share. GAAP EPS of $0.62 for Q4 were 5.1% higher than the prior-year quarter's $0.59 per share.

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

Margin details
For the quarter, gross margin was 33.6%, 10 basis points better than the prior-year quarter. Operating margin was 10.8%, 20 basis points worse than the prior-year quarter. Net margin was 6.6%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $923.4 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $3.80 billion. The average EPS estimate is $2.22.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 97 members out of 112 rating the stock outperform, and 15 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Patterson Companies a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Patterson Companies is outperform, with an average price target of $37.77.

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