Top Construction Companies To Invest In 2015

Top Construction Companies To Invest In 2015: Armstrong World Industries Inc (AWI)

Armstrong World Industries, Inc. (AWI), incorporated on December 30, 1891, is a global producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings. The Company designs, manufactures and sells flooring products (resilient and wood) and ceiling systems (mineral fiber, fiberglass and metal) globally. The Company segments includes: Building Products, Resilient Flooring and Wood Flooring. The Companys Building Products, Resilient Flooring, Wood Flooring and Cabinets segments sell products for use in the home. Its products are used in new home construction and existing home renovation work. Its products, primarily ceilings and Resilient Flooring, are used in commercial and institutional buildings. On September 1, 2012, it sold Patriot Flooring Supply, Inc. to The Belknap White Group. Effective October 31, 2012, the Company sold of its cabinets business to American Industrial Partners.

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Building Products

Building Products produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional and residential settings. In addition, its Building Products segment sources complementary ceiling products. Its products, which are sold globally, are available in colors, performance characteristics and designs, and offer attributes, such as acoustical control, rated fire protection and aesthetic appeal. Commercial ceiling materials and accessories are sold to ceiling systems contractors and to resale distributors. Residential ceiling products are sold in North America to wholesalers and retailers, including home centers. Suspension system (grid) products manufactured by Worthington Armstrong Venture (WAVE) are sold by both the Company and WAVE.

Resilient Flooring

Resilient Flooring produces and sources a range of floor coverings for homes and commerci! al and institutional buildings. Manufactured products in this segment include vinyl sheet, v! inyl tile and linoleum flooring. In addition, its Resilient Flooring segment sources and sells laminate flooring products, vinyl tile products, vinyl sheet products, adhesives, and installation and maintenance materials and accessories. Resilient Flooring products are offered in a range of types, designs, and colors. It sells these products globally to wholesalers, home centers, retailers, contractors and to the manufactured homes industry.

Wood Flooring

The Companys Wood Flooring segment produces and sources wood flooring products for use in new residential construction and renovation, with commercial applications in stores, restaurants and offices. The product offering includes pre-finished solid and engineered wood floors in various wood species, and related accessories. All of its Wood Flooring sales are in North America. Its Wood Flooring products are sold to independent wholesale flooring distributors and home centers.

The Com pany competes with Saint-Gobain, Chicago Metallic Corporation, Georgia-Pacific Corporation, Knauf AMF GmbH & Co. KG, Lafarge SA, Odenwald Faserplattenwerk GmbH, Rockfon A/S, USG Corporation, Amtico International, Inc., Beaulieu International Group, N.V., Boa-Franc, Inc., Congoleum Corporation, Faus, Inc., Forbo Holding AG, Gerflor Group, Interface, Inc., IVC Group, Krono Holding AG, LG Floors, Mannington Mills, Inc., Metroflor Corporation, Mullican Flooring, L.P., Mohawk Industries, Inc., Nora Systems GmbH, Pfleiderer AG, Shaw Industries, Inc., Somerset Hardwood Flooring, Tarkett AG.

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 i! n on Arms! trong World Industries (NYSE: AWI  ) , whose recent revenue and earnings are plotted below.

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

Consumer Sentiment Falls in May, Wages Raise Concern

5 Best High Tech Stocks To Watch For 2015

Nick Ut/AP NEW YORK -- A monthly gauge of U.S. consumer sentiment fell in May as a gloomy view on income growth clouded an otherwise positive economic outlook, a survey released Friday showed. The Thomson Reuters/University of Michigan's final May reading on the overall index on consumer sentiment came in at 81.9, down from 84.1 the month before. It was also below the expectation of 82.5 among economists polled by Reuters. However it did show a slight increase from the preliminary reading issued on May 16. "The slippage in consumer confidence came to a halt in late May," survey director Richard Curtin said in a statement. Curtin said the level may have declined by 2.2 points since April, but when averaging in the first four months of the year, the May figure was slightly above the average of 81.7. "At present, the economy was anticipated to be strong enough in the year ahead to produce the best change in job prospects since 2004," Curtin said, "The main concern expressed by consumers involved dismal prospects for wage growth, which for nearly half of all households meant anticipated declines in inflation-adjusted incomes and living standards during the year ahead," he added. Some 56 percent of consumers reported that the economy had improved, up from 49 percent in April. The survey's barometer of current economic conditions fell to 94.5 from 98.7 in April and below a forecast of 95.8. The gauge of consumer expectations slipped to 73.7 from 74.7 and fell short of an expected 74.0. The survey's one-year inflation expectation rose to 3.3 percent from last month at 3.2 percent, while the survey's five-to-10-year inflation outlook fell to 2.8 percent from 2.9 percent in April.

Top 10 Machinery Stocks To Invest In 2015

Top 10 Machinery Stocks To Invest In 2015: Komatsu Ltd (KMTUY)

Komatsu Ltd. (Komatsu), incorporated in May 13, 1921, is a global company engaged in the manufacturing, development, marketing and sale of a range of industrial-use products and services. The manufacturing operations of Komatsu are conducted primarily at plants located in Japan, the United States, Brazil, the United Kingdom, Germany, Sweden, Italy, Indonesia, China, Thailand and India. Komatsus products are primarily sold under the Komatsu brand name and almost all of its sales and service activities are conducted through its sales subsidiaries and independent distributors who primarily sell products to retail dealers in their respective geographic area. Komatsu operates and competes in the six principal markets, such as Japan, the United States, Europe and Commonwealth of Independent States (CIS), China, Asia (excluding Japan and China) and Oceania and the Middle East and Africa. In May, 2009, Komatsu acquired the additional interest in Komatsu Australia Corporate Fina nce Pty. Ltd.

Construction, Mining and Utility Equipment

The Company offers various types of construction, mining and utility equipment, ranging from super-large machines capable of mining applications to general construction equipment and mini construction equipment for urban use. Komatsus range of products in this operating segment also includes a variety of attachments to be used with its products. Komatsus principal products include excavating equipment, loading equipment, grading and roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines and components, casting products and logistics.

Industrial Machinery and Others

The Companys Industrial Machinery and Others segment products are used by a range of businesses and include industrial machinery, such as forging and sheet metal machinery and other services. ! Kom atsus principal products include metal forging and stampi! ng presses, sheet metal machines, machine tools, defense systems, temperature-control equipment and others.

The Company competes with Caterpillar Inc., Hitachi Construction Machinery Co., Ltd., Volvo Construction Equipment NV, CNH Global N.V., Hyundai Heavy Industries Co., Ltd., Doosan Infracore Co., Ltd. and Toyota Motor Corporation.

Advisors' Opinion:

• [By Dan Carroll]

  Fellow Japanese manufacturer Komatsu's (NASDAQOTH: KMTUY  ) shares have slid more than 3% this past month, but like Kubota, this stock has blown up in 2013 and could be headed higher with a win by Abe and the LDP. However, there's risk in Komatsu's lofty 45% profit growth outlook in 2013: The company's the top manufacturer in China, but given the current slowdown plaguing the second-largest economy on Earth, Komatsu investors could be left disappointed. Komatsu's likely to see a strong uptick for the full year due to the weak yen -- particularly if Abe moves more aggressively after the elections -- but China's slump could make meeting optimistic projections a tall order.

• [By Dan Carroll]

  An up-and-down yen spurs an up-and-down market
  Abe brought about stimulus in response to one of Japan's worst economic problems of the last half-century: more than two decades of a stagnant economy and deflation. Weakening the yen against other leading currencies would be a boon for leading Japanese exporters looking for an edge against overseas competition. Manufacturers such as Komatsu (NASDAQOTH: KMTUY  ) have applauded the moves as they look to use a weak yen to grow profits. Komatsu alone projected 46% full-year profit growth this year thanks to the weak yen.

• [By Dan Carroll]

  Chinese manufacturing and materials stocks may not be the only picks in trouble, however. Leading international manufacturers could see demand in the world's second-largest economy, cutting into! lofty gr! owth expectations that relied upon China's surge to make up for weakness elsewhere around the globe. Japanese industrial power Komatsu (NASDAQOTH: KMTUY  ) , the second-largest industrial machinery manufacturer in the world, is betting ongrowing Chinese demand this fiscal year, in combination with the weak yen, to fuel growth.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-10-machinery-stocks-to-invest-in-2015.html

Top 5 Dividend Stocks To Buy For 2015

Top 5 Dividend Stocks To Buy For 2015: Pacific Gas & Electric Co.(PCG)

PG&E Corporation, through its subsidiaries, operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. The company also involves in the generation, procurement, transmission, and distribution of electricity; and procurement, transportation, storage, and distribution of natural gas. It owns and operates electricity generation facilities, transmission and distribution lines, and substations; and an integrated natural gas transportation, storage, and distribution system, as well as has underground natural gas storage fields in California. The company serves residential, commercial, industrial, agricultural, public street and highway lighting, and other electric utility customers. As of December 31, 2009, it served approximately 5.1 million electricity distribution customers and approximately 4.3 million natural gas distribution customers. The company also operated 18,650 circuit miles of intercon nected transmission lines and 141,213 circuit miles of distribution lines for electricity; and 42,142 miles of distribution pipelines, 6,438 miles of backbone and local transmission pipelines, and 3 storage facilities for natural gas. PG&E Corporation was founded in 1905 and is based in San Francisco, California.

Advisors' Opinion:

• [By Alyce Lomax]

  Even massive conglomerate Honeywell (NYSE: HON  ) has delved into the demand response and energy efficiency arena. In March, Honeywell teamed up with Opower to provide an integrated energy management platform with five utilities, including PG&E (NYSE: PCG  ) , to test-drive the relatively untapped residential market.

• [By Richard Stavros]

  Last August, PG&E Corp (NYSE: PCG), issued a callable 30-year bond (due Aug. 15, 2042) that yielded 3.75 percent at 99 (CUSIP: 694308HA8). But six months later, the bond was tradi! ng at a discount of 86.76 and yielding 4.586 percent, according to the last trade recorded by FINRA-Morningstar.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-5-dividend-stocks-to-buy-for-2015.html

Four steps to build an outperforming portfolio

A disciplined approach towards building an investment portfolio is in itself a very good investment for the investor.

Investors aim to achieve their financial goals through their investments and these goals vary widely across the investor community. There are different types of investors who belong to different age brackets, have contrasting disposable incomes, and have a plethora of different preferences for which they need money during their lifetime.

These factors and motives decide the investment pattern and the portfolio which needs to be built.

Here are four small steps to build an effective investment portfolio which will help the investor achieve their dream run as far as investment yields are concerned:

I. Get the right Asset Allocation for your needs

Assessment of individual's financial status, their investment goals are of prime importance for building a effective investment portfolio. Investor's age decides the term period of the investment.

A 21 year old, starting his career, will have a different investment goal focus than that of a person who is 55 years of age and is in the last leg of his service tenure. The degree of risk the investor is willing to take is also a key factor towards fixing the right investment portfolio.

The combination of current financial situation, investment goals and the risk taking propensity decide how the different investments would be divided among the asset classes. Higher returns are achievable by undertaking greater risks. This is referred to as risk/return trade off.

The 21 year old would obviously be in no great hurry to see his investment yield a return immediately and would thus be prepared to take greater risk in comparison to the 55 year old investor who would probably look at good risk-free returns which are also tax-efficient, after his retirement.

In this context it is relevant to discuss different portfolios which range from the conservative to the aggressive.

• An aggressive portfolio will consist of around 70 to 75 percent of equities and the balance in bonds and fixed income securities.

• A moderately aggressive portfolio will be made up of 50 to 55 percent in equities, Up to 40 percent in bonds and fixed income securities and the rest in cash and equivalents.

• As compared to this a conservative portfolio would not stake more than 20 percent in equities and the bulk of investments would be in fixed income securities.

II. Achieving the defined portfolio

Once the asset allocation has been fixed the amount has to be allocated appropriately into asset classes. However there are some sub-categorizations of the asset classes which the investor might want to get familiar with.

The equities offer an opportunity for investment in different sectors, market caps, domestic and foreign equities in the same way as bonds which can be allocated between short term and  long term, government versus corporate debt and so on.

The basket of investments consists of stocks, bonds, Mutual funds and Exchange-Traded Funds (ETFs). The investor can choose from these basic categories and their numerous variants available in the market which best suit their individual investment needs.

Before picking a stock and/or a bond it is imperative that their inherent traits are examined thoroughly. Short-listing potential picks and carrying out further study on them is always a good practice.

Similar exercise needs to be carried out for Mutual Funds and ETFs' also.

III. Reassessing the Portfolio Mix

Nothing in this world is permanently permanent and so it is with the portfolio of investments. Market movements, change in priorities, needs and current financial situations, guides the portfolio mix.

In order to carry out a well designed re-balancing exercise it is necessary to find out which portions or asset classes are overweight and which are underweight. Pruning the overweight ones and allocating them to the underweight class will set it right for the time.

IV. Rebalancing Strategically

While carrying out the rebalancing exercise as mentioned in step III, it is helpful to keep in mind certain things which have an effect on the investment portfolio.

A particular equity in the portfolio may be doing well, however as a part of the rebalancing exercise it may become necessary to sell the equity and this may attract substantial capital gains tax. In such a situation it would be better to carry out the rebalancing in a different manner, perhaps by contributing more in the non-equity components, thereby bringing down the ratio.

The investor needs to be well informed and conversant about the market interactions on a regular basis.  Analysis and feedback from the market is essential to keep stability to the portfolio.

In the above example it might be so that the equity market is expected to crash heavily and in such a case it is always advisable to sell inspite of the tax implications involved.

Conclusion

A well diversified portfolio is the key for a sustained and healthy long-term growth of the investments. An ideal portfolio is one which will stand the test of time and will be consistent in returns and solid in growth. The small steps recommended will result in your investments to leap.   

The author, Ramalingam K, CFP CM, is the Chief Financial Planner at holisticinvestment.in, a leading Financial Planning and Wealth Management company.

Pilgrim Pride Corp Offers to Acquire Hillshire Brands Co (HSH)

Pilgrim’s Pride Corp. (PPC) announced on Tuesday morning said that it has made an offer to acquire Hillshire Brands Co. (HSH) for $6.4 billion.

Pilgrim’s Pride has offered Hillshire a total of $45 per share in cash, or $6.4 billion. This deal is expected to close during the third quarter. This report comes just two weeks after HSH agreed to acquire Pinnacle Foods Inc (PF).

Bill Lovette, Pilgrim’s CEO commented: “For Hillshire shareholders, our proposal provides a substantial premium, greater certainty and immediate cash value for their shares. We have long respected the Hillshire business and we are confident that Hillshire's board and shareholders will find our all-cash premium proposal to be superior to the pending acquisition of Pinnacle.”

HSH Dividend Snapshot

As market close on May 23, 2014

Click here to see the complete history of HSH dividends.

Hillshire Brands shares were up $8.21, or 22.20% during pre-market trading Tuesday. The stock is up 10.71% YTD.

Dollar General Adjusts Forecast, Sees Gross Profit Slide

Dollar General Corp. (NYSE: DG) reported second-quarter 2013 results before markets opened this morning. The discount retailer reported adjusted diluted earnings per share (EPS) of $0.77 on revenues of $4.39 billion. In the same period a year ago, Dollar General reported EPS of $0.69 on revenue of $3.95 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.74 and $4.36 billion in revenue.

The company said that same-store sales rose 5.1% in the second quarter, driven by increased sales of consumables. The company specifically noted tobacco sales and strong sales of perishables, candy and snacks.

In its outlook statement, Dollar General said it expects full-year sales to rise 10% to 11% above the 2012 total and same-store sales are forecast to rise 4% to 5%. At the beginning of the 2013 fiscal year the top end of these ranges was one point higher.

Gross profit as a percentage of sales fell by 77 basis points in the second quarter, and the company forecasts full-year gross profit down 0.9%. Operating profit, forecast in March in a range of $1.78 billion to $1.845 billion, is now forecast at $1.73 billion to $1.77 billion.

Adjusted full-year EPS is now forecast at $3.15 to $3.22. The current consensus EPS estimate from analysts is $3.21.

The company's CEO said:

We are very pleased with the increase in customer traffic in our stores. We continue to grow our market share and believe that our second quarter results position us well to deliver our financial outlook for the year.

Yearly gross profit was flat, at 31.7% . Positive factors included higher inventory markups and a lower provision for inventory. Weighing on gross profit were higher markdowns, a smaller impact from price increases, and a reduction in shrinkage. Operating profit rose from 10.1% in 2011 to 10.3% in in 2012.

Dollar General repurchased $220 million in its own stock in the first half of 2013. The company now has $424 million remaining for share repurchases.

The company has increased the number of new stores it plans to open in 2013, from 635 to 650. In the first half of the current fiscal year Dollar General opened a net 360 new stores and now claims a total of 10,866 stores in operation.

In our earnings preview yesterday, we noted the now more moderate growth in the discount variety store sector. Dollar General's second-quarter performance and lowered outlook do not change our view of these stores' futures.

Shares are up about 1.7% in premarket trading Wednesday morning at $54.80, in a 52-week range of $39.73 to $56.10. Thomson Reuters had a consensus analyst price target of around $59.50 before today's results were announced.

How Does Toyota Motor Corp. Plan to Build Cars for Future Generations?

The world of cars as its stands today will undergo a sea change in the next 20 years, and only those automakers that are able to turn this change into opportunity will survive. Oil and gas major BP's "Energy Outlook 2035" and other studies throw up some pretty amazing predictions:

Hybrids would rule the market by 2035, constituting 67% of sales. Plug-in-hybrids and electric vehicles, or EVs, will take around 7% of the market share in 2035. Sales of conventional vehicles will decline by around 75%. Low-emission vehicle market will expand by 30.3% between 2012 and 2017. 

These facts indicate that green cars could be the future of the auto industry, and it's difficult to think about eco-freindly cars without thinking of Toyota (NYSE: TM  ) . The Japanese auto major was the first to mass produce a hybrid, the Prius, back in 1997, and is a leader in the field. It has a fleet of electric vehicles, and is pioneering fuel cell vehicle technology. Let's take a look at Toyota's playbook.

Source: Toyota

Hybrids
Toyota is the biggest seller of hybrids; global sales reached more than 6 million by end of 2013. It sold 2,302,000 hybrids in North America since the first-generation Prius was launched here in 2000. Over the years, Toyota has customized the Prius to suit American tastes -- the car has grown bigger in size, offers more features, and is available in several models.

Though there's no doubting Prius' cult status in hybrid circles, its aging looks have faced flak and has put a mild brake on its growth. Honda (NYSE: HMC  ) Accord overtook Prius in the first quarter of this calendar year by a small margin (around 293 units) to get to the top sales position in California, America's green car capital.  

To keep competition at bay, Toyota is constantly revving up things. The company will redesign the Prius for the 2015 model year -- the car will sport better looks and may create some new records with fuel economy. Edmunds.com expects combined mileage to touch 55 miles per gallon.

At the Frankfurt Autoshow in Europe last year, Toyota displayed its hybrid line up, ranging from Yaris, Auris, Auris Touring Sports, to the Prius plug-in hybrid. The company is a leader in hybrid in Europe with Toyota and Lexus brands holding 75% of the market share. 

Source: Toyota

The automaker has an aggressive plan for the future as it looks to launch 15 new or refurbished hybrid models globally. This will add to the 23 hybrid Toyota and Lexus models it boasts of. The company is leveraging on the envious lead it has taken over all other automakers.

EVs
Electric vehicles go one step up on hybrids in reducing CO2 emissions. Toyota has introduced a plug-in Prius 2014, adding to its EV offerings that include the RAV4 EV, and is even testing wireless recharging.

RAV4, Source: Toyota

Though Toyota has its share of electric vehicles, the shortcomings of the battery-enabled powertrains and a lukewarm response from buyers to EVs made the company constrain its future plans. The unpopularity has even led the Obama administration to drift from its plan to have 1 million EVs on the U.S. roads by 2015.

Knowing Toyota, it couldn't have just stopped at the pitfalls -- it has a viable Plan B, which brings us to fuel cells.

FCV
Toyota is betting big on fuel cell technology and has put in extensive research and resources into it. In simple words, a fuel cell is like a power plant where hydrogen and oxygen mix together to produce electricity. The advantages of fuel cell vehicles compensate for the major disadvantages of the battery-run EV:

It can cover a longer range and is competitive with hybrid and conventional models. It can refuel in the same time taken by a gasoline car -- five minutes.

Toyota debuted its FCV Concept in the Tokyo Motor Show in November and at the Consumer Electronics Show in Las Vegas in January. The car can go 300 miles on full tank, catch speed up to 60 miles per hour in 10 seconds, and get refueled in three to five minutes. It will go on sale in 2015. Honda is also ready to launch its own hydrogen car for the masses in 2015, and both Japanese automakers are looking to sell around 1,000 cars each annually according to Japanese news agency, Nikkei.

The hydrogen cars will be launched in the American, European and Japanese markets, with a price tag in the range of $50,000-$100,000. Nikkei has reported that prices could be at the higher end of the range but the carmakers are trying to get it down to a more affordable level with time. If Toyota can do with the FCV Concept what it did with the Prius, it can get a head start over its peers.

Wrapping up
Toyota is quick to identify trends and capitalize on them. The carmaker knows that hybrids are here to stay and so it's going at the segment full bore, to take lead at such a level that leaves competitors gasping. While it's still early to predict the future, Toyota's shift from EVs to FCVs could be another example of its foresight. And all this while it keeps adding to revenues and profits.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000… per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock… and join Buffett in his quest for a veritable landslide of profits!

5 Best Dow Dividend Stocks To Watch Right Now

Our top pick for 2014 was founded in 1910, and has been at the forefront of the constantly changing area of high technology ever since, says Russ Kaplan, editor of the Heartland Advisor.

Our pick is the well-known blue chip company International Business Machines (IBM). Technology has changed drastically since 1910, and IBM has always risen to a challenge, which, over the years, has left many high tech companies in the dust.

I've been following IBM since the early 1980s, and it's gone through periods when Wall Street analysts have been skeptical of its future. Today is one of those times, providing you with an excellent buying opportunity.

The skepticism comes from the supposed inability to react to such developments as the progression from typewriters to computers, and from mainframes to personal computers.

After that, IBM got out of the personal computer business, which had become a commodity with low prices, to a service company. It sold its computer manufacturing business to Lenovo (LNVGF).

5 Best Dow Dividend Stocks To Watch Right Now: SK TELECOM ADR EACH REP 1/9 KRW500(CIT)

SK Telecom Co., Ltd. provides wireless telecommunications services using code division multiple access (CDMA) and wide-band CDMA technologies. It offers cellular voice services, such as wireless voice transmission services; and wireless global roaming services. The company also provides wireless data transmission services, such as wireless Internet access services, which allow subscribers to access online digital contents and services, as well as to send and receive text and multimedia messages. In addition, it offers broadband Internet and fixed-line telephone services, such as video-on-demand and IP TV services; and local, domestic, and international long-distance fixed-line telephone services to residential and commercial subscribers. Further, the company provides wireless entertainment-related contents and services, wireless finance-related contents and m-commerce services, and wireless news and search services; and international calling services, such as direct-dial, pre and post paid card calling services, bundled services for corporate customers, voice services using Internet protocol, Web-to-phone services, and data services. Additionally, it offers satellite digital media broadcasting services; telematics services; and fixed-line and online community portal services. The company also operates 11th Street, an online shopping mall; and T Store, an online open marketplace for mobile applications. As of March 31, 2011, SK Telecom Co. had 26 million wireless subscribers. It has strategic alliances with Bridge Alliance; Orange SA; Telecom Italia Mobile S.p.A.; T-Mobile International AG & Co; and Teliasonera Mobile Networks AB. The company was formerly known as Korea Mobile Telecommunications Co., Ltd. and changed its name to SK Telecom Co., Ltd. in March 1997. SK Telecom Co., Ltd. was founded in 1984 and is based in Seoul, South Korea.

Advisors' Opinion:

• [By Jonas Elmerraji]

   

  CIT Group (CIT) has been stuck in a trading range since the start of July, churning sideways at the same time that the S&P was broadly pushing higher. But with shares testing a key resistance level this week, CIT could be about to make a big directional move again.

  The sideways churn in CIT is caused by a rectangle pattern, a consolidation setup that's formed by a horizontal resistance level above shares at $51 and horizontal support at $47. The rectangle gets its name because it basically "boxes in" shares of a stock -- the break outside of the box is the trade to take. So, if LKQ pushes above $51, then it's time to buy. Upside looks like the more likely outcome from here; since CIT's price action leading up to the rectangle in early 2013 was bullish, it's more likely to break out from the setup to the upside.

  Kraft is committing a cardinal sin when it comes to relative strength. With a market that's correcting in December, relative strength is the single most important technical indicator to use with price -- and KRFT's RS line turned bullish months ago with no signs of strength.

  This food stock is lagging the market big time, and not just because of a shape on a chart.

  Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. Triangles and the other setups we've looked at are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

  That support level at $52 is a price where there had been an excess of demand of shares; in other words, it's a place where buyers were more eager to step in and buy shares at a lower price than sellers were to sell. That's what makes a breakdown below $52 so significant -- the move would indicate that sellers are finally strong enough to absorb all of the excess demand above that price level. Wait for that trigge

• [By Lisa Abramowicz]

  ��here was this maturity wall that people were terrified of,��said Neil Wessan, the group head of New York-based CIT Group Inc. (CIT)�� capital markets unit. ��hat�� been spread out over a much broader period of time.��

• [By Lee Jackson]

  CIT Group Inc. (NYSE: CIT) operates as the holding company for CIT bank, which provides commercial financing and leasing products, as well as deposit products and savings accounts. The company operates through five segments: Corporate Finance, Transportation Finance, Trade Finance, Vendor Finance, and Consumer. The Oppenheimer target for the stock was not listed in the report. The consensus target for the stock is $54.25.

• [By Rich Smith]

  What does it mean to you?
  If you are a shareholder, GE's earnings report contains quite a few good tidings. Already, GE is showing its strongest revenue growth (9% in Q2) in its two most profitable business segments: oil and gas (14% operating profit margin), and aviation (16% margin). New engines to power Boeing (NYSE: BA  ) and Airbus aircraft are (literally) flying off the shelves, as airlines such as AirAsia and United Airlines (NYSE: UAL  ) , and airplane lessors including CIT Group (NYSE: CIT  ) pay up to outfit their new planes.

5 Best Dow Dividend Stocks To Watch Right Now: Petroleo Brasileiro Petrobras SA (PETR3)

Petroleo Brasileiro SA Petrobras (Petrobras) is a Brazil-based integrated oil and gas company. The Company divides its activities into seven segments: Exploration and Production; Refining, Transportation and Marketing; Gas and Power; Biofuel; Distribution and International. Directly or through its subsidiaries, Petrobras is engaged in the research, extraction, refining, processing, trade and transport of oil from wells, shale and other rocks, its derivatives, natural gas and other liquid hydrocarbons, as well as in activities related to energy, development, production, transport, distribution and commercialization of energy. The Company's offering comprises road transportation products such as Automotive Gasoline, Diesel Fuel, Natural Vehicular Gas, Lubrax; agriculture and cattle raising products such as Sunflower Meal, among others; Industrial products such as Solvents and Paraffins, among others. The Company provides its services both for individual and business clients. Advisors' Opinion:

• [By Maria Levitov]

  Brazil�� Ibovespa advanced amid speculation that a three-session slump for Brazil�� benchmark equity index was excessive. Usiminas, as Usinas de Minas Gerais is known, rose 7.5 percent, while oil company Petroleo Brasileiro SA (PETR3) contributed the most to the gauge�� advance.

Hot Freight Companies To Invest In Right Now: Nesscap Energy Inc (NCE)

Nesscap Energy Inc. is engaged in developing, manufacturing and marketing of products (ultracapacitors) that store energy for power delivery systems, which are used in transportation, industrial power, renewable energy and other consumer industries. Ultracapacitors are used as energy storage devices for high power applications and are characterized by high power density, long operational lifetime and quick charging and discharging capability. The Company�� range of products, from single-cell ultracapacitor products to multi-cell modules, is designed for reliable energy storage and power platforms. The Company�� offers multi-cell modules with operating voltages of five volt, 16 volt, 48 volt, 64 volt, 86 volts, and 125 volt. The Company�� small-sized EDLC cells range from 3 frequency-50 frequency in capacitance with operating voltages ranging from 2.3 volt to 2.7 volt. Advisors' Opinion:

• [By John McCamant]

  Phase III trials for NKTR-102 for breast cancer, are due by year-end. NKTR-181 is a new chemical entity (NCE) painkiller developed by NKTR that does not result in the high often associated with addictive and life-threatening chronic opioid use.

5 Best Dow Dividend Stocks To Watch Right Now: Burlington Stores Inc (BURL)

Burlington Stores, Inc., incorporated on February 13, 2013, is a national off-price retailer of branded apparel, operating 503 stores, inclusive of an Internet store, in 44 states and Puerto Rico. The Company offers its merchandise using an Every Day Low Price (EDLP) model with savings up to 60-70% off department and specialty store regular prices. It provides its customers with a selection of fashionable branded product in women�� ready-to-wear apparel, menswear, youth apparel, baby products, footwear, accessories, home goods and coats. The Company merchandise from over 3,500 vendors, with a focus on nationally-recognized brands. This vendor breadth provides its customers with a treasure hunt experience of searching for great brands at great value.

The Company�� average store size is approximately 80,000 square feet, which is two to three times the size of its off-price competitors��stores. Its larger store size has allowed the Company to offer more categories and substantially more breadth in each product category than its off-price competitors and to establish ourselves as a destination for select categories, including coats, youth and baby, special-occasion dresses and men�� tailored apparel.

Advisors' Opinion:

• [By Tom Taulli]

  Competition: While TJX attempts to undercut more traditional retailers, it has plenty of competition in the deep-discount game, Ross Stores (ROST), Kohl’s (KSS) and Burlington Stores (BURL). TJX also must contend with big-box operators like Target (TGT). So far, TJX has been able to dig itself a niche and remain fairly differentiated, but it’s fair to point out the danger in slipping — in retail, customers always have plenty of alternatives.

• [By Paul Ausick]

  Ross Stores Inc. (NASDAQ: ROST) has said that its more than 1,100 stores will remain closed on Thanksgiving, as has The TJX Companies Inc. (NYSE: TJX), owner of the TJ Maxx, Marshall��, and other retail brands. Another off-price retailer, Burlington Stores Inc. (NYSE: BURL), owner of the Burlington Coat Factory stores, will also remain closed on the holiday.

• [By Jake L'Ecuyer]

  Equities Trading UP
  Burlington Stores (NYSE: BURL) shares shot up 15.02 percent to $29.79 on Q4 results. Burlington Stores reported its Q4 earnings of $1.07 per share, versus analysts' estimates of $1.03 per share.

5 Best Dow Dividend Stocks To Watch Right Now: iShares Russell 2000 Value ETF (IWN)

iShares Russell 2000 Value Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Russell 2000 Value Index (the Index). The Index measures the performance of the small-capitalization value sector of the United States equity market. It is a subset of the Russell 2000 Index. The Index is a capitalization-weighted index and consists of those companies or portion of a company, with lower price-to-book ratios and lower forecasted growth within the Russell 2000 Index. The Index represents approximately 50% of the total market capitalization of the Russell 2000 Index.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. iShares Russell 2000 Value Index Fund's investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:

• [By John Udovich]

  Yesterday, Luna Innovations Incorporated (NASDAQ: LUNA), a rather unusual and innovative small cap stock,�soared some 23.26%���meaning its worth taking a closer look at the stock along with its performance verses the performance of small cap benchmarks like the iShares Russell 2000 Index ETF (NYSEARCA: IWM), the�iShares Russell 2000 Value Index ETF (NYSEARCA: IWN) or the iShares Russell 2000 Growth Index ETF (NYSEARCA: IWO).

• [By John Udovich]

  Small cap custom carry and protective solutions stock Forward Industries, Inc (NASDAQ: FORD) jumped 22.51% earlier today as an apparent turnaround continues, meaning its worth taking a closer look at a stock that�� in a decidedly niche area plus look at the performance of potential investment benchmarks like the iShares Russell 2000 Index ETF (NYSEARCA: IWM), iShares Russell 2000 Growth Index ETF (NYSEARCA: IWO) and iShares Russell 2000 Value Index ETF (NYSEARCA: IWN).

Top 5 Asian Companies For 2015

Top 5 Asian Companies For 2015: North American Palladium Ltd (PAL)

North American Palladium Ltd. (NAP) is a precious metals producer that has been operating its flagship Lac des Iles mine (LDI) located in Ontario, Canada. The Company is in the business of exploring and mining palladium, platinum, gold and certain base metals. The Company's 100%-owned subsidiary is the Lac des Iles Mines Ltd. (LDI).

The Company's Lac des Iles (LDI) palladium mine is a palladium producer. The mine is located approximately 85 kilometers northwest of the city of Thunder Bay in Ontario, Canada, and consists of open pit and underground mining operations and a 15,000 ton per day mill.

Advisors' Opinion:

• [By James E. Brumley]

  Are you a gambling man (or gambling woman, as the case may be)? Then now may be the right time to place a bet on North American Palladium Ltd (NYSEMKT:PAL) ... the micro cap precious metals miner that has watched its stock fall from just under $2.00 in early February to a low of 44 cents yesterday. That's a 78% drubbing, for those of you who are counting, with a big chunk of that loss coming yesterday when PAL shares lost 28% of their value on the heels of two... shall we say "less than flattering" articles about the company were posted? Yet, sometimes the very best trades are ideas that never looked good on paper.

• [By Dan Caplinger]

  4. Platinum-group metals
  Platinum and palladium both fell sharply, losing 5% and 6% of their value, respectively. Those losses weren't as extreme as gold's, but they nevertheless represented a drop to levels not seen since late last year. The two major miners producing the white metals, Stillwater Mining (NYSE: SWC  ) and North American Palladium (NYSEMKT: PAL  ) , both lost more than 10% on the day.

source from Top Stocks Blog! :http://www.topstocksblog.com/top-5-asian-companies-for-2015.html

CSX Named Top Dividend Stock of the Dow Transports

CSX Corp. (CSX) has been named as the ”Top Dividend Stock of the Dow Transports”, according to Dividend Channel, which published its most recent ”DividendRank” report.

The report noted that among the components of the Dow Jones Transportation Average, CSX stock displayed both attractive valuation metrics and strong profitability metrics.

For example, the recent CSX share price of $28.29 represents a price-to-book ratio of 2.7 and an annual dividend yield of 2.3% — by comparison, the average dividend-paying stock in the Dow Transports yields 1.6% and trades at a price-to-book ratio of 4.3.

The report also cited the strong quarterly dividend history at CSX Corp., and favorable long-term multiyear growth rates in key fundamental data points.

The report also stated:

Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies that also happen to be trading at an attractive valuation. That’s what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most “interesting” stocks, meant for investors as a source of ideas that merit further research.

The Dow Jones Transportation Average, or ”Dow Transports” for short, actually predates the Dow Jones Industrial Average and is the most widely followed index covering the American transportation sector.

The current annualized dividend paid by CSX Corp. is 64 cents per share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of May 24.

START SLIDESHOW:
10 Top Ranked Dow Transports Components »

Below is a long-term dividend history chart for CSX, which the report stressed as being of key importance. Indeed, studying a company’s past dividend history can be of good help in judging whether the most recent dividend is likely to continue.

3 Stocks Breaking Out on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>4 Huge Stocks on Traders' Radars

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>Sell These 5 Toxic Stocks Before It's Too Late

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Maxim Integrated Products

Maxim Integrated Products (MXIM) designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. This stock closed up 4% to $33.53 in Monday's trading session.

Monday's Volume: 5.42 million

Three-Month Average Volume: 2.55 million

Volume % Change: 125%

From a technical perspective, MXIM soared higher here right off its 50-day moving average of $32.34 with strong upside volume. This move is quickly pushing shares of MXIM within range of triggering a major breakout trade. That trade will hit if MXIM manages to take out some near-term overhead resistance levels at $33.70 to its 52-week high at $33.78 with high volume.

Traders should now look for long-biased trades in MXIM as long as it's trending above its 50-day at $32.34 or above more near-term support at $31.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.55 million shares. If that breakout triggers soon, then MXIM will set up to enter new 52-week-high territory above $33.78, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.

Bluebird Bio

Bluebird Bio (BLUE), a clinical-stage biotechnology company, focuses on developing gene therapies for severe genetic and orphan diseases. This stock closed up 6.1% to $26.73 in Monday's trading session.

Monday's Volume: 485,000

Three-Month Average Volume: 228,857

Volume % Change: 119%

From a technical perspective, BLUE ripped sharply higher here with above-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $17.40 to its intraday high of $27.18. During that uptrend, shares of BLUE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BLUE within range of triggering a major breakout trade. That trade will hit if BLUE manages to take out some key overhead resistance levels at $28.08 to $28.98 with high volume.

Traders should now look for long-biased trades in BLUE as long as it's trending above Monday's low of $24.79 and then once it sustains a move or close above those breakout levels with volume that hits near or above 228,857 shares. If that breakout gets underway soon, then BLUE will set up to re-test or possibly take out its next major overhead resistance levels at $32 to $34.

Grifols

Grifols (GRFS), a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the U.S., Canada, and internationally. This stock closed up 3.2% at $42.12 in Monday's trading session.

Monday's Volume: 1.10 million

Three-Month Average Volume: 622,295

Volume % Change: 89%

From a technical perspective, GRFS spiked notably higher here right off its 50-day moving average of $40.71 with above-average volume. This spike higher on Monday is quickly pushing shares of GRFS within range of triggering a major breakout trade. That trade will hit if GRFS manages to take out some key overhead resistance levels at $42.28 to $42.87 and then once it clears its 52-week high at $43.45 with high volume.

Traders should now look for long-biased trades in GRFS as long as it's trending above its 50-day at $40.71 or above more near-term support at $39.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 622,295 shares. If that breakout materializes soon, then GRFS will set up to enter new 52-week-high territory above $43.45, which is bullish technical price action. Some possible upside targets off that move are $48 to $50.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Set to Soar on Bullish Earnings

>>5 Stocks Ready to Break Out

>>5 Rocket Stocks Ready for Blastoff

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Michael Mauboussin - Frequently Asked Questions About Buybacks and Dividends

Introduction The value of a stock equals the present value of future cash flows. Sooner or later, an investor in a stock must be able to put cash into his or her pocket for a stock to be of value. Ultimately, a company's value boils down to the cash it can disburse during its life. There are three ways a company can transfer cash to its shareholders. First, the company can sell itself for cash. In a cash sale, the acquirer has to worry about generating sufficient cash flows to justify the price, but outgoing shareholders can take the money to the bank. Second, a company can pay a dividend. A dividend is a distribution to shareholders that generally comes from profits. Finally, a company can buy back its shares.

Similar to dividends, buybacks distribute cash to shareholders. But unlike dividends, only shareholders who sell can cash in. The topic of how best to return cash to shareholders, especially through dividends and buybacks, is always relevant but is especially so in today's environment. To see why, consider this simple but foundational equation:Earnings Growth = Return on Equity * (1 – Payout Ratio) This says, in plain words, that a company's growth rate is a function of how much it makes on its investments (which the return on equity, or ROE, determines) and how much it invests (which the payout ratio dictates, with a low payout ratio meaning high reinvestment).

Companies with higher ROEs can grow faster than companies with lower ROEs given the same payout ratio. Likewise, companies with lower payout ratios can grow faster than companies with higher payout ratios given the same ROE. Let's put some numbers to work to make the point. Assume a company has an ROE of 20 percent ($200 of earnings divided by $1,000 of equity), pays out 50 percent of its earnings ($100), and retains 50 percent of its earnings ($100). The company should be able to grow earnings in the next year at the rate of 10 percent, or from $200 to $220 (a 20 percent return on $1,100 of equity). This is consistent with the equation (10% = 20% * [1 - .50]). More accurately, the earnings growth in the equation is the maximum growth rate the company can achieve excluding external financing. If the growth in earnings is less than what the product of the ROE and payout ratio suggests, the company will generate excess cash. Say earnings growth is five percent. This means the company could have paid out 75 percent of its earnings, or $150. But since it only paid out $100, the company generated $50 in excess cash. This formulation is the key to understanding today's situation. In a nutshell, return on capital is high, payout ratios are average, and growth is low. As a result, companies are generating prodigious excess cash. Here is a look at the components. Exhibit 1 shows that asset-weighted cash flow return on investment (CFROI®) for corporate America, currently above 10 percent, is at an all-time high. CFROI is a measure of the cash return on the investments a company makes. As the figure is adjusted for inflation, it is comparable through time.

Continue reading here. 

About the author:Canadian Valuehttp://valueinvestorcanada.blogspot.com/

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Lowe's Companies (LOW) Earning Report: Is Another Breakout Coming? HD & LL

The Q1 2014 earnings report for Lowe's Companies, Inc (NYSE: LOW), a peer of other home improvement retailers like The Home Depot, Inc (NYSE: HD) and Lumber Liquidators Holdings Inc (NYSE: LL), is due out before the market opens on Wednesday. Aside from the Lowe's Companies earnings report, it should be said that Lumber Liquidators Holdings Inc reported Q1 2014 earnings on April 30th while The Home Depot, Inc will report Q1 2014 earnings before the market opens on Tuesday. Analysts will be watching both the Lowe's Companies and The Home Depot, Inc earnings report for any indication of a housing recovery either pushing ahead or stalling with the excuse for the latter no doubt being the bad winter weather we have experienced. 

What Should You Watch Out for With the Lowe's Companies, Inc Earnings Report?

First, here is a quick recap of Lowe's Companies' recent earnings history from Yahoo! Finance:

Earnings HistoryApr 13Jul 13Oct 13Jan 14

EPS Est	0.51	0.79	0.48	0.31
EPS Actual	0.49	0.88	0.47	0.31
Difference	-0.02	0.09	-0.01	0.00
Surprise %	-3.90%	11.40%	-2.10%	0.00%

 

Late last February, Lowe's Companies' broke out of a double-bottom base chart pattern after reporting strong earnings that met Wall Street's expectation. Fourth quarter revenue rose 5.6% to $11.7 billion thanks to renovation spending while net income increased 6% to $306 million plus the company authorized an additional $5 billion share repurchase program. Robin Diedrich, an analyst with Edward Jones & Co., commented in a research note:

"This was a solid quarter. The company's core home-improvement categories posted strong performance, which offset weak seasonal gift sales."

This time around and according to the Yahoo! Finance analyst estimates page, the consensus expects revenues of $13.86B and EPS of $0.60 - slightly down from the EPS consensus of $0.61 from seven days ago, $0.62 from thirty days ago and $0.63 from ninety days ago.

On the news front, it was noticed on Friday that Lowe's Companies' June call option implied volatility is at 25, July is at 23, October is at 20 verses a 26-week average of 22. This suggests a large near term price movement into the expected release of Q1 earnings on May 21. Investors Business Daily also recently pointed out that Lowe's Companies' EPS from 2012 to 2014 have grown 14% on a compounded annual rate while The Home Depot, Inc's grew 24% over the same time plus Lowes' 3% compounded annual sales growth over that period was half that of Home Depot's.

In addition, Lowe's Companies' focuses more on premium goods than The Home Depot, Inc and when consumer confidence and income rise, shoppers often trade up to higher-priced items. Keith Hughes, an analyst at SunTrust Banks, has also commented:

"Lowe's has played at the high end, and Home Depot has played at the low end. That has helped Home Depot, but that advantage should flip to Lowe's."

What do the Lowe's Companies, Inc Charts Say?

The latest technical chart for Lowe's Companies shows some downward trending lines since about the middle of last December:

A look at the long term performance chart shows that The Home Depot's performance has pulled away from the Lowe's Companies while small cap Lumber Liquidators Holdings has been the best performer:

However, The Home Depot's latest technical chart is more bullish looking while Lumber Liquidators Holdings' chart resembles that of Lowe's Companies:

What Should Be Your Next Move?

If you think the income, jobs and consumer confidence picture is improving, then Lowe's Companies could be a good bet, but then again there is the stock's technical chart which seems to indicate less certainty among investors. So maybe we can expect another short term breakout that will benefit traders who are long.  

Wildfires and Climate Change: It's Enough to Make You Sick

NEW YORK (TheStreet) -- This week started off ominously with two independent teams of scientists saying that the West Antarctic Ice Sheet is collapsing as a result of man-made global warming. The melt could put coastal cities under water in the not-too-distant future.

Turned out that was only the start of the week's bad news for the globe. Since then, California wildfires have begun raging again, this time near San Diego. The early start to the season of vicious, destructive infernos is evidence that climate change is already directly affecting individuals in ways predicted by the recently released National Climate Assessment report, or NCAR. Nine fires have been reported to be burning in the San Diego area, one person has been killed and a firefighter injured. More than 20,000 evacuation notices were delivered in Carlsbad alone. A nuclear plant and a university are among those sites abandoned. Local news channels have included warnings about the dangers of exposure to smoke.

In perhaps the most disturbing aspect of the NCAR, released May 6 by the federal government, researchers listed health risks caused by warming temperatures and resulting changes in the environment. These effects constitute an area of immediate and often ignored hazards from global warming, including those from more intense and more frequent wildfires. State governments and the insurance industry are already reacting, shifting in the direction of climate change prediction and adaptation.

The NCAR is the work of the U.S. Global Change Research Program, established by President H.W. Bush in 1989 and mandated by Congress with the Global Change Research Act of 1990. It involves 300 experts, including researchers from 13 federal departments. The program is overseen by a 60-member Federal Advisory Committee and the findings are reviewed by the public and experts, including a panel of the National Academy of Sciences. Among the hazards that affect the health of the U.S. populace, the report includes rising ground-level ozone, pollution and threat to life from increased wildfires, increased allergens, more days of extreme heat, more extreme rainfall and flooding, swelling populations of mosquitos and other disease-carrying insects, a climb in the frequency and severity of drought conditions and heightened stress levels among animals and people. Most of those causes carry the potential for multiple ill effects. An increase in wildfires for instance could affect not only property but also those with respiratory problems or those with any number of stress-related conditions. Drought and fire can also cause damage to the quality of drinking water. As natural environments become compromised, wildlife can relocate to populated areas, threatening locals with the spread of disease and unexpected physical encounters with hungry, agitated wild animals. The Present Evidence California is a test case for many of the problems outlined in the NCAR. According to the California Department of Health (CDPH), the State of California as a matter of policy sees many of the personal health risks outlined in NCAR as related to climate change. Officials there confirmed that they were already seeing dramatic changes in weather patterns that could affect the health of citizens.

In an email, Richard Stapler, Deputy Secretary for Communications for the California Natural Resources Agency noted that the 30-month period from October 2011 to March 2014 was the driest 30-month period, statewide, in the 1895 to 2014 record.

The risk of wildfires increase during dry periods and heavy smoke from wildfires "can cause respiratory distress in even the healthiest of people," Stapler said. Children, the elderly and those with a history of respiratory problems are more at risk and "are asked to shelter in place or avoid the area altogether" during wildfires, he said.

Responding to a question on drought's effect on water quality, Stapler noted that there were many environmental factors that could impact the quality of the water supply, including flooding, drought and wildfires. But rising temperatures put quality of life at risk in other ways, he said. Changes in the timing of snowfall and snowmelt as a result of climate change may make it more difficult to refill reservoir flood control space during late spring and early summer, potentially reducing the amount of surface water available during a dry season. Changes in reservoir levels also affect lake recreation, hydroelectric power production, and fish habitat by altering water temperatures and quality. Higher air temperatures and changes in snowmelt will make it more difficult to manage reservoirs and reservoir releases to maintain temperatures cool enough for salmon and steelhead. Officials from the CDPH were also aware of changes in weather patterns and the adverse effects on citizens. "Increasing temperature and extreme heat events due to climate change and heat islands that concentrate additional heat in our dense urban areas, create health risks," officials from the department said in an email. Those risks "include heat cramps (salt deficiency), heat exhaustion (salt depletion plus water depletion), and most seriously, heatstroke and death (rising body temperature that results in cell damage and neurologic dysfunction)." "We need to be monitoring the health impacts of increasing temperatures and taking steps to reduce heat risks as much as we can and prepare our communities, especially vulnerable populations, for these events," the department said, adding that, among other measures, it is working with other state agencies to deploy "cooler pavements, cooler roofs and buildings, urban greening, and a more resilient energy grid." Insurance Industry Response Nationwide, increased personal risk of health problems from climate change can also be found. Diseases borne by mosquitos and ticks are not as plentiful in the U.S. as in other countries, but a rise in those pests could elevate the risks of Lyme Disease, West Nile Virus and Rocky Mountain Spotted Fever. Cases of dengue fever, a disease that has historically been relegated to more underdeveloped tropical regions, have been turning up in Florida, as reported last year by NPR. As areas north become wetter and warmer, the risk increases that incidence of such cases could continue to spread.

In communities that deal with flooding, diseases from contaminated water are a concern. Once a flood has receded, air quality problems can plague buildings previously exposed to the flooding. Breathing problems, allergies, asthma and respiratory infections are all more common in these water-compromised environments.

On its Web site, the Insurance Information Institute cites a recent report that finds "heavy rainstorms linked to flooding are increasing in frequency in the Midwest . . . . Since 1961, the frequency of the largest of these storms, those that produce rainfall of three or more inches in a single day, increased by 103 percent. The states where the trend is most evident are Wisconsin, Michigan and Indiana. . . " Incidence of loss from severe thunderstorms, which can lead to fatalities even in the absence of tornado activity, are rising dramatically.

That's the kind of data the insurance industry takes seriously, even if companies don't confront global warming head-on. Reactions to flooding in particular have grown more sophisticated as flood intensity and frequency have increased.

According to Steven Weisbart, Senior Vice President and Chief Economist at the Insurance Information Institute, policies now include coverage for mold cleanup that would have been overlooked 20 years ago, responded to changing trends. Policy changes are informed by projections from scientists, but driven by hard data on losses, Weisbart emphasized in a phone interview. "I would have to say that right this minute, all that that report [the NCAR] would do would be to reinforce the data gathering, the alertness to issues that might eventually result in underwriting changes, increased rates and other responses the industry might come up with," he said. The National Association of Insurance Commissioners is pushing back against that conservative tendency within the industry, with a multistate survey of insurers on the topic of climate change preparedness intended to encourage a pro-active role in planning for the damaging effects of a warmer planet. In particular, the Web site of the NAIC lists climate change as one of the more important of several factors influencing a rise of more intense and frequent wildfires and an extension of the wildfire season.  According to statistics cited on the NAIC Web site, nearly 2 million homes in California alone are at high or extreme risk from wildfires, which topped the historic milestone of 9 million acres burned in a year during three years of the last decade. Reinsurance giant Munich Re reports that insured losses from California wildfires in 2007 alone topped $2 billion. The cost of losses is being driven down in recent decades due in large part to increased awareness by the state and federal governments, property owners and the insurance industry. But those loss figures don't necessarily include the full impact on personal health, the extent of which is hard to measure. Meanwhile the wildfires themselves are increasing, with total burned acreage expected to double over the next 50 years, the NAIS says, citing federal projections. Such projections, together with the observable trends in climate change affecting many areas, ensure that the nation as a whole will continue to face global warming's threat to personal health as a permanent, worsening concern. -- Written by Carlton Wilkinson in New York Follow @CarltonTSC

TrueCar shares up 16% after lowball IPO price

Feeling a bit like the car dealers in its car-selling network, auto research and sales outfit TrueCar got horse-traded down to only $9 a share in its IPO, from the $12 to $14 range the company had forecast.

Bloomberg calculates that the initial public offering was 7.78 million shares, raising $70 million for the company to use marketing new products.

Investors decided the stock is more valuable than that, though, and the newly public company's first day of NASDAQ trading opened at $9.75. Mid-day trading had pushed it to $10.44.

TrueCar operates TrueCar.com, an online car-shopping and research site. The site shows a range of good, bad and average prices that others are paying for the car you want in your area. It claims to account for 3.2% of new-car sales in the U.S.

Initially the site was able to give shoppers guaranteed prices from its affiliated dealers. But Honda told dealers in 2012 they couldn't do that if resulted in advertising cars for less than the invoice price, and some states called the arrangement illegal under their dealer-franchise laws. So TrueCar overhauled its approach to focus on what others are paying instead of getting a price gurantee.

That's made it less distinctive, because some competing car sites do the same.

Main rivals include Edmunds.com, Kelley Blue Book's kbb.com and Cars.com, which are not public.

TrueCar founder Scott Painter has been involved with a number of other car-shopping and -buying companies, such as CarsDirect and Auto-By-Tel.

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TrueCar President John Krafcik, late the CEO of Hyundai Motor America, and industry veteran Larry Dominique, head of TrueCar's ALG unit, are well-regarded, seasoned players in the car business.

7 Threats That Can Derail a Client’s Retirement

The American College’s RICP curriculum includes a list of 27 risks that retirees face. Twenty-seven!

I discuss this list regularly with clients to help them understand how important this phase of their planning is, and also to pinpoint a few risks that are incredibly important but often overlooked. Beyond basics like market risk and interest rate risk, here are the seven that you may find valuable:

1. Longevity Risk 

Medical advances are leading to longer lifespans. This is probably no surprise to you, but I would like you to consider a new twist on this growing challenge. When retirees live longer lives, not only do they run a greater risk of depleting their assets, they can lose perspective about time itself. This can have a significant impact in the realm of behavioral economics. Specifically, the decisions they make early in retirement may not have immediate consequences. A bad choice in the first year of retirement may not show its effects in year two. But over many years, the outcomes of their decisions compound, either positively or negatively.

A lifestyle choice can feel good for a few years but cause significant harm as the years pass. Therefore, the risk of living long in retirement needs to be considered in more ways than just asset allocation.

Overspending on a new home in a tennis community hundreds of miles from family feels great until one spouse is confined to a wheelchair without extended family nearby to lend a helping hand.  

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2. Frailty Risk 

Are you a practitioner of the systematic withdrawal income planning strategy? When administered correctly, this requires an annual (or more frequent) adjustment of the client’s spending to reflect the safe withdrawal rate their portfolio can support. What happens when the client ages, slows down, and is unable to respond to phone calls or visit you in your office to make those adjustments? Worse yet, what if they lose their decision-making abilities altogether? Their need for income and care hasn’t diminished, but they’re unable to work closely with you.

This risk of the client’s age-related frailty can have meaningful consequences for your ability to serve their needs if you have chosen a complex income strategy for them. This may warrant a discussion about guaranteed income strategies that will help provide needed income, even when the client isn’t as healthy as they were when they began their income plan.

3. Forced Retirement Risk

Your client plans to work until age 66 in order to reach full retirement age with Social Security benefits. Unfortunately, a personal health issue forces them to retire at 61. Are they financially prepared to support the lifestyle to which they've grown accustomed? How will you adjust their planning to respond to this change? Are their assets positioned in such a way that they have adequate liquidity to meet their needs or will they be forced to tap into assets at a cost to them?

A big emergency fund may not generate attractive yields, but the peace of mind it provides can help turn an unexpected retirement into a blessing.

4. Loss of Spouse Risk

What happens to the family income when a death occurs? Oftentimes, you’ll hear that retirees don’t need life insurance. After all, they have enough assets to retire, so they’re self-insured, right? Not so fast. It is imperative to evaluate survivor benefits in pensions and Social Security.

What may feel like a comfortable retirement can become downright terrifying upon the death of a spouse. Income sources are often halved, yet lifestyle costs for the widow remain very similar to those of a couple.

Widows may need to pay for home maintenance that was once done by their spouse. Travel costs can increase because of trips to visit family located across the country. The last thing a widow needs to be concerned with is where to get income after the death of her spouse. By asking a few simple questions when times are good, we can insure them against a disappointing finish to a race well run.

5. Legacy Risk

Retirement income planning is all about balance. Balancing often competing interests is the name of the game. One example is that of legacy risk. Case-in-point: Your client wants to maximize her retirement income and wishes to leave assets for her children and grandchildren as a legacy. Meanwhile, she would like to avoid all market risk and have abundant flexibility and access to cash for unforeseen emergencies. In this example, building a maximum income plan using guaranteed annuities will most likely eliminate any meaningful financial legacy or bequest for her family.

While the annuities may maximize her income, they will likely be exhausted upon her death, leaving nothing behind. This may be fine if she has a home and other non-financial assets that will become part of her legacy. The risk here is that her wishes are not well-documented and provided for in her planning. 

6. Health Care Expense Risk 

It’s no mystery that health care is on the minds of aspiring retirees. How can we plan for this risk when we cannot accurately quantify the cost? Reduce the variables. As in a mathematical equation, too many unknowns create an unsolvable problem. In retirement planning, too many variables can prevent us and our clients from adequately addressing any particular concern. The result is a swirling storm of questions and partial answers.

Rather than questioning whether your client can afford to pay more for health care during retirement, have them track their spending for a month or two. Learn how much money is going out each month to maintain their chosen lifestyle. Compare that to known income sources like Social Security, pensions, income available from their investment portfolio, etc. Once you know their true lifestyle costs and income, you can discover how much is truly excess or discretionary.

This may provide more wiggle room to account for rising health care costs. By isolating this variable, you can perform true risk assessment for them and move toward greater clarity. 

7. Long-Term Care Risk 

For people age 65 or older, there is a 40 percent chance they will step foot into a nursing home during their lifetime. This risk is not new to most advisors. What’s interesting is how much this risk affects their retirement income later in retirement. Some refer to this retirement spending curve as the “retirement smile.”

The  most damaging inflationary force for the retiree is long-term care expense. We have so many tools at our disposal compared to 10 years ago, that it’s a shame to not be well-versed in this planning area. As longevity continues to increase, more and more of our retired clients will qualify to receive income from a long-term care qualifying financial product. Why not address long-term care risk for your client with leveraged and tax-advantaged dollars in the form of traditional or hybrid long-term care products.

Want to become really valuable to your client? Regularly feature an estate planning attorney at your client events and meetings to provide them with legal and estate planning that complements your insurance and financial-based offerings. Your clients will love the additional options and will thank you down the road, I promise. 

-- Related ThinkAdvisor stories:

Twitter and Tech Stocks Soar, DirecTV Spikes, and Chiquita Looks Slippery

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  rose 112 points and the S&P 500 gained 18 as both stock market indices reached record highs on a quiet start to the week.

1. Tech stocks go nuts despite quiet market
Among the cricket-chirping on the floor of the New York Stock Exchange (no big data releases, no huge earnings releases, and no news of having Facebook do something crazy with its billions of excess cash), tech stocks rebounded from their recent whacking. Twitter (NYSE: TWTR  ) , Facebook, and Amazon.com all rose at least 3.6%. 

What was the cause of the rebound? These stocks rose despite low trading volumes and no big news, prompting analysts to credit hedge funds for the movement. Hedge funds trade for a living, and after the major losses tech stocks have taken over the past month, firms are ready to buy back into the cheaper stock price.

Twitter climbed the most with a 5.9% rise, because it got a stock rating upgrade from Georgia-based SunTrust investment bank. After debating what bulldog was the best ever mascot for the University of Georgia, SunTrust analysts supposed that the recent sell-off of Twitter went too far, and so it recommended to its clients to buy the stock.

2. DirecTV spikes after AT&T acquisition rumors
According to company insiders that leaked rumors to The Wall Street Journal, communications giant AT&T (NYSE: T  )  is adding DirecTV (NASDAQ: DTV  )  to its family plan. The deal could be announced in as soon as two weeks.

Like any wise subject of rumors, both companies declined to comment publicly. But if you're trying to trade stocks based on official announcements only, then you're going to get burned. Savvy traders make moves on rumors like these to snatch the stock at a cheaper price before the rest hear about the big news. DTV is trading up over 5% since the article hit the wire.

AT&T needs video to keep profiting off what people are demanding, and DirecTV needs better broadband Internet infrastructure. So it's a perfect match. The big question is what combination of debt and new stock AT&T needs to issue to raise the necessary cash. Reports say that the deal could value DirecTV at $50 billion, so DTV's stock price is rising in anticipation of the big buyout for shareholders.

3. Chiquita earnings get frozen
Just in time for our favorite part of the year, smoothie season, your favorite childhood banana distributor, Chiquita Brands (NYSE: CQB  ) , reported first-quarter earnings on Friday that investors (figuratively) threw bananas at. Revenue for the first three months of 2014 fell 2% from the same period the previous year, to $762 million.

Frozen bananas are great for the Bluth Frozen Banana Stand in Arrested Development, but not so good for most consumers' banana-related needs (like, say, eating room-temperature bananas). The frigid U.S. winter and drought conditions in Central America forced Chiquita to purchase more expensive fruit to meet contract obligations with its business customers, such as grocery stores.

The takeaway is that investors sold down Chiquita stock Friday but bought shares back up 0.7% Monday because Chiquita's making some big changes. By the end of the year, Chiquita plans to complete a $1.07 billion stock deal to merge with Ireland's fruit distributor Fyffes to better avoid "banana supply volatility." Unfortunately, the new name will boringly just be ChiquitaFyffes.

As originally published on MarketSnacks.com

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What’s Wrong With Twitter’s IPO?

If you want any evidence that Facebook's (ticker: FB ) botched May 2012 initial public offering was a traumatic event, just look at the following headlines regarding the most anticipated IPO since the "Facebook fiasco", which I culled from today's Yahoo! Finance homepage:

Challenges abound for Twitter heading into the IPO (Associated Press)

Success of Twitter's Business Model Questioned Ahead of IPO (Breakout/Yahoo! Finance)

As Twitter IPO prices, poll says it's not worth hype (CNBC.com)

Good News for Twitter IPO: Small Investors Are Skipping It (The Exchange/Yahoo! Finance)

But who, exactly, was traumatized? Investors or financial journalists? One headline tells a different story from those I just cited -- one of enthusiasm, rather than skepticism:

Twitter boosts IPO range amid strong investor demand (Reuters)

Although they maintained the size of the offering at 70 million shares, Twitter and its underwriters have raised the previous $17 to $20 pricing range for the stock to $20 to $25. If the underwriters exercise the overallotment option for an additional 10 million shares, Twitter will end up raising $2 billion at the top end of that range. The final pricing is expected for Wednesday, and the shares will begin trading on Thursday.

The truth is that this is a fantastic time for Twitter to go public: The stock market has had a great run this year and growth-stock IPOs have been making eye-popping debuts (witness the shares of sandwich chain Potbelly, which more than doubled on their first day of trading). Finally, the most highly visible social networking stocks -- Twitter's peer group -- have way outpaced the market, as the following performance graph of Facebook and LinkedIn (NYSE:LNKD ) illustrates:

With those precedents in mind, should investors ignore the skeptical articles regarding Twitter and plow into the stock? My answer: No.

Where Facebook and LinkedIn are solidly profitable, Twitter isn't. In that regard, it's closer to local-bus! iness review site Yelp, which has yet to turn a quarterly profit (although that hasn't stopped the stock from gaining 241% this year.) Twitter is a fascinating platform, and it has already made a massive impact on business and popular culture, but as a business model, it's still finding its feet. Several ad buyers at major advertising firms recently told the Financial Times that the funds they allocate to Twitter come out of their "experimental" budgets.

I think the odds are excellent that Twitter's stock will post muscular gains once the shares begin trading in the secondary market on Tuesday, but whether it will prove an excellent long-term investment looks much more uncertain. Investors who are interested in buying the shares should first ask themselves what they expect to achieve, over what timeframe ... and how much they are prepared to lose in an adverse scenario.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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